Tenaz Energy (TNZ) Q2 2025 earnings summary

Executive summary

• Closed acquisition of NAM Offshore B.V. (NOBV), integrating staff and assets into Dutch operations, positioning for long-term growth in the Netherlands.

• Q2 2025 marks first reporting period including two months of TEN (Netherlands) operations, with production and financials reflecting the acquisition.

• Major turnarounds at key Dutch gas facilities completed safely and on schedule, with all assets now fully operational.

• Appointed new VP of Human Resources and Sustainability, reinforcing organizational capabilities.

Financial highlights

• Q2 2025 production averaged 7,998 boe/d, up 176% from Q1 2025, driven by TEN acquisition.

• Funds flow from operations (FFO) was $17.2 million ($0.61/share) in Q2 2025, up from $1.0 million ($0.03/share) in Q1 2025.

• Net income reached $188.6 million ($6.73/share) in Q2 2025, compared to $1.3 million ($0.05/share) in Q2 2024, due to a $192.2 million gain on acquisition.

• Capital expenditures totaled $10.8 million in Q2 2025, with free cash flow of $6.4 million.

• Ended Q2 2025 with net debt of $100.2 million, reflecting contingent earn-out obligations from the acquisition.

Outlook and guidance

• 2025 capital plan includes workovers, well optimizations, infrastructure maintenance, and new drilling in the Netherlands.

• Targeting uninterrupted activity in Q4 2025, with permitting and tendering underway for barge and jack-up rig campaigns.

• Approximately 50% of 2025 Netherlands gas production hedged at €35.45/MWh ($16.65/Mcf); 21% of WTI exposure hedged for H2 2025.

• Focus remains on expanding the asset portfolio, primarily in Europe and Latin America, with a preference for international gas projects.