Tenaz Energy (TNZ) Q4 2025 earnings summary

Executive summary

• Completed two major acquisitions in 2025, expanding the Netherlands business unit and North Sea operations, including the GEMS project and NAM Offshore B.V. assets.

• Achieved record production and financial results, with total shareholder return of 89% in 2025 and significant increases in reserves and resources.

• Raised $179 million via Senior Unsecured Notes and established $115 million syndicated credit facilities, later upsized to $150 million, supporting acquisitions and development.

• Continued share repurchases, retiring 336,000 shares in 2025 and 2.5 million since August 2022; insider ownership increased to 16.3% after warrant and option exercises.

• Initiated multi-year organic growth programs and advanced drilling and workover campaigns in both operated and non-operated assets.

Financial highlights

• Q4 2025 production averaged 15,556 boe/d, up 32% from Q3; full-year 2025 averaged 9,609 boe/d, up 257% year-over-year.

• Q4 2025 FFO was $62.1 million ($2.12/share), up 54% from Q3; full-year FFO was $120.4 million, nearly 5x 2024.

• Q4 2025 net income was $107.6 million ($3.67/share), up 333% from Q3; full-year net income was $315.6 million ($11.18/share), driven by acquisition gains and contingent consideration remeasurement.

• Year-end 2025 net debt was $345.2 million, up from $55.0 million in Q3, mainly due to the GEMS acquisition; net debt ratio for Q4-25 annualized FFO was 1.4x.

• Operating netback for Q4 2025 was $48.43/boe, up from $25.77/boe in Q4 2024.

Outlook and guidance

• 2026 capital expenditures guided at $250–$275 million, with active drilling programs in Canada and the Netherlands.

• 2026 average production expected between 19,500–22,500 boe/d, with 89% from TTF gas, 7% WCS oil, and 4% AECO gas.

• Netherlands: plan to drill three operated and four non-operated wells; Canada: three operated wells planned.

• Capital program positions for multi-year organic growth in Netherlands gas and moderate growth in Canadian oil.

• Commodity price hedging covers 51% of 2026 production, providing downside protection.