Alvopetro Energy (ALVOF) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 production of 3,128 BOE/d, up 28% year-over-year and 9% sequentially, driven by disciplined capital allocation and high-return opportunities in Brazil and Canada.

• Integrated onshore natural gas production model with balanced reinvestment and stakeholder returns.

• Funds flow from operations reached $12.5M, up 36% year-over-year, and net income was $8.1M, up 33% year-over-year.

• Amended gas sales agreements increased firm gas sales by 25% for 2026 and 2027.

• Maintained 56.2% working interest in Caburé field after favorable arbitration.

Financial highlights

• Q1 2026 revenue was $17.4M, with realized sales price at $61.77/BOE and natural gas at $10.14/Mcf.

• Operating netback margin reached 84%, with netback of $52.12/BOE.

• Funds flow from operations was $12.5M, up $1.9M from Q4 and 18% sequentially.

• Net income for Q1 2026 was $8.1M, up $2.5M from Q4, aided by higher FX gains and lower G&A.

• Working capital net of debt was $4.9M as of March 31, 2026.

Outlook and guidance

• Capital budget for Brazil in 2026 is approximately $21M, with $19M remaining as of Q1; $7M allocated to facilities and pipeline.

• Near-term growth plan includes optimizing Caburé and Murucututu facilities to expand capacity to 21.2 MMcfpd.

• Weighted average realized gas price for May–July 2026 expected to be $11.31/Mcf, with August–October forecast at $13.06/Mcf.

• Production growth potential for 2027 projected at 20%+ year-over-year.

• Ongoing drilling and development in both Brazil and Canada to support organic growth.