PetroTal (TAL) Q2 2024 earnings summary

Executive summary

• Q2 2024 production averaged 18,290 bopd, with July 2024 exceeding 20,000 bopd and sales at 18,050 bopd despite a brief river blockade.

• Net income for Q2 2024 was $35.4 million, with robust free cash flow of $36.3 million and EBITDA of $69.5 million.

• Maintained a strong balance sheet with $95.9 million in cash and a net surplus of $50.3 million at quarter-end.

• Continued focus on the Bretaña oil field and expansion through the acquisition of Block 131, with closing expected in Q4 2024.

• Declared a $0.015/share dividend payable September 13, 2024, and repurchased 1.2 million shares, returning ~$15 million to shareholders.

Financial highlights

• Q2 2024 net revenue per barrel was $62.76, up from $56.61 in Q2 2023, with oil revenue at $103.1 million.

• EBITDA for Q2 2024 was $69.5 million, and adjusted EBITDA was $75.2 million.

• Capex increased to $38.9 million in Q2 2024, supporting ongoing drilling activities.

• Free funds flow for Q2 2024 was $36.3 million, down from $45.0 million in Q2 2023.

• Market capitalization at June 30, 2024, was $504 million.

Outlook and guidance

• FY24 production guidance set at 16,500–17,500 bopd, with Brent prices assumed at $77–$83/bbl.

• After-tax adjusted free funds flow for 2024 expected up to $55 million pre return of capital.

• 2024 capital spending guidance increased to $150–$175 million, reflecting accelerated drilling and water handling projects.

• Plans to drill 7 oil wells and 1 water disposal well in 2024, with disposal capacity targeted at 170,000 bwpd by year-end.

• OCP and Yurimaguas export routes anticipated to be active by late 2024, expanding sales capacity.