PetroTal (TAL) Q1 2026 earnings summary

Executive summary

• Q1 2026 average production was 14,907 barrels per day, with output at Bretana maintained and growth initiatives underway.

• Adjusted EBITDA rose 90% sequentially to $35.1 million, driven by stronger realized oil prices and disciplined operations.

• Water injection capacity increased to 180,000-185,000 barrels per day after stimulation, supporting future production growth.

• Free funds flow reached $25.7 million in Q1 2026, reflecting improved operational leverage.

• 2026 strategy centers on protecting liquidity, resetting cost base, and positioning for future growth.

Financial highlights

• Q1 2026 oil revenue was $65.95 million, with a realized sales price of $51.07/bbl, up from $39.67/bbl in Q4 2025.

• Adjusted EBITDA for Q1 2026 was $35.1 million ($27.22/bbl), up 90% from the prior quarter.

• Updated 2026 Adjusted EBITDA guidance raised to $110-120 million, up from $30-40 million, reflecting higher oil prices.

• Net income was $15.3 million, reversing a net loss of $7.8 million in the prior quarter.

• Q1 cost savings of $2.5 million versus Q1 2025 and $9 million versus Q4 2025, mainly due to reduced workover activity.

Outlook and guidance

• 2026 production guidance is 12,000-12,500 barrels per day, with no material changes to operating cost or capex assumptions.

• Capital program of $80-$90 million will be fully funded by operations if oil prices remain strong.

• Drilling to resume in October 2026, targeting >20,000 bopd production in 2027.

• Opex and G&A expenses targeted for 20–25% reduction.

• No special dividend planned; priority is capital program execution, debt reduction, and potential future capital returns after production stabilizes.