Arrow Exploration (AXL) Q4 2025 earnings summary

Executive summary

• Achieved net income of $1.4 million for FY 2025, including a $7.6 million impairment loss, compared to $13.1 million in FY 2024.

• Total oil and gas revenue was $70.5 million, down from $73.7 million in 2024.

• Annual average production increased 13% to 4,012 boe/d, driven by successful drilling in the Tapir block.

• Maintained a strong balance sheet with $11 million in cash and no debt at year-end.

• All operations were conducted safely, with no accidents or environmental incidents.

Financial highlights

• Adjusted EBITDA for FY 2025 was $35 million, down from $48 million in FY 2024; Q4 2025 EBITDA was $6.3 million versus $13.3 million in Q4 2024.

• Funds flow from operations totaled $32 million for FY 2025, compared to $36 million in FY 2024.

• Capital expenditures reached $43 million in 2025, primarily for drilling 16 wells in the Tapir Block and one in Canada.

• Cash and cash equivalents at year-end were $11.2 million, down from $18.8 million in 2024.

• Operating netbacks declined due to lower oil prices and higher operating costs in Colombia.

Outlook and guidance

• Fully funded 2026 work program of $24 million targeting up to nine new wells in the Tapir block.

• 2026 capital operations expected to be funded by cash flow and cash on hand.

• Confident in securing Tapir block contract extension; constructive discussions ongoing.

• Focus remains on disciplined capital allocation, production growth, and maintaining positive cash flow.