Arrow Exploration (AXL) Q1 2025 earnings summary

Executive summary

• Achieved $19.5 million in oil and natural gas revenue, up 36% year-over-year for Q1 2025.

• Adjusted EBITDA rose 15% to $11.5 million compared to Q1 2024.

• Net income for Q1 2025 was $2.7 million.

• Average production reached 4,085 boe/d, a 50% increase year-over-year but 14% lower sequentially due to water handling constraints.

• Operational focus included drilling new wells, expanding seismic data, and enhancing water disposal infrastructure.

Financial highlights

• Operating cash flow was $14.4 million, up from $8.6 million in Q1 2024.

• Cash and cash equivalents stood at $24.9 million at quarter-end.

• Capital expenditures totaled $11.4 million in Q1 2025.

• Realized corporate oil operating netbacks were $38.66/bbl, down from $50.10/bbl in Q1 2024 due to lower prices and higher water cuts.

• Funds flow from operations was $9.7 million, up from $7.2 million year-over-year.

Outlook and guidance

• 2025 capital expenditure budget is $50 million, with production expected to rise significantly as new wells come online.

• Additional horizontal and development wells planned for Alberta Llanos and Rio Cravo Este fields.

• New water disposal infrastructure expected to restore and increase production capacity.

• Prepayment agreement provides up to $20 million in financial flexibility for growth and acquisitions.