Questerre Energy (QEC) Q3 2025 earnings summary

Executive summary

• Closed acquisition of PX Energy, adding over 4,000 boe/d of oil shale production and downstream refining assets, making the company vertically integrated across the oil shale value chain.

• Formed a 50/50 joint venture with Nimofast's subsidiary in Brazil to manage PX Energy, leveraging local expertise for improved margins and profitability.

• Initiated a Quebec asset spinout, planning to distribute tracking shares to existing shareholders.

• Ongoing legal and regulatory efforts in Quebec, including carbon storage pilot project and litigation regarding Bill 21.

Financial highlights

• Q3 2025 petroleum and natural gas sales were $11.8 million, up from $9.5 million in Q3 2024, driven by higher production volumes.

• Net loss of $5.3 million in Q3 2025 compared to a net loss of $0.3 million in Q3 2024; YTD net loss of $6.0 million versus net income of $0.8 million last year.

• Adjusted funds flow from operations was $2.8 million in Q3 2025, down from $3.4 million in Q3 2024, reflecting lower commodity prices and higher costs.

• Working capital deficit of $40.3 million at quarter-end, mainly due to PX Energy acquisition.

• Capital expenditures totaled $2.2 million for the quarter and $21.2 million YTD, primarily for Kakwa North wells.

Outlook and guidance

• Focused on integrating PX Energy and concluding the joint venture with Nimofast for the remainder of 2025.

• Anticipates adding approximately 2,000 boe/d from PX Energy assets for the rest of the year, subject to JV execution.

• Expects Western Canada production to decline in Q4 2025, excluding new Saskatchewan well.