Tenaz Energy (TNZ) Q1 2025 earnings summary

Executive summary

• Q1 2025 production averaged 2,814–2,893 boe/d, up 3% from Q4 2024, driven by reduced downtime in the Netherlands and new Canadian wells.

• Closed NOBV (now Tenaz Energy Netherlands) acquisition ahead of schedule, adding 55.7–56 million boe in reserves and €15 million in cash at completion.

• Net loss of $5.3 million in Q1 2025, mainly due to higher interest and transaction costs; FFO was $1.0 million, down sharply from Q4 2024.

• Ended Q1 2025 with $135.7–$136 million unrestricted cash and net debt of $0.5 million; strong liquidity post-acquisition.

• 62,000 shares retired in Q1 2025 at $13.42/share; 2.1 million shares retired since 2022 at $3.11/share average.

Financial highlights

• Q1 2025 petroleum and natural gas sales: $17.7 million; operating netback: $34.51/boe, up from $25.77/boe in Q4 2024.

• Capital expenditures in Q1 2025: $8–$9.3 million, mainly for Canadian drilling.

• Free cash flow was negative $8.4 million in Q1 2025 due to high capex and transaction costs.

• Working capital at quarter-end was nearly neutral at negative $0.5 million.

• Unrestricted cash post-acquisition is approximately $151 million, with a $20 million undrawn credit facility.

Outlook and guidance

• 2025 production guidance: 9,000–9,500 boe/d, reflecting 6,100–6,400 boe/d annualized contribution from Dutch assets.

• Planned 2025 capital expenditures: $85–$95 million, with $55–$61 million allocated to Dutch assets; program expected to be self-funded.

• Multi-well drilling campaign in the Dutch North Sea planned for Q4 2025, targeting production growth in 2026.

• Approximately 50–52% of 2025 TTF gas exposure hedged at €35.45/MWh ($16.30/Mcf).

• Major turnaround activity in Q2 will temporarily lower production, with recovery expected in Q3 and Q4.