Centaurus Energy Inc.

Centaurus said second-quarter revenue increased 10% year over year due to the rise in the price of oil. It posted positive EBITDA for the fourth consecutive quarter and positive net income for the first time in a long time. Operating expenses were down 50% year over year, G&A was at all-time lows, and netbacks were the highest since 2018. Management did not provide next-quarter or full-year numeric guidance, but said it is reviewing strategic options to grow production and expects to give more clarity on drilling plans possibly by October, if not before year end.

David Tawil framed the quarter around a stronger oil backdrop, the recovery in Argentina, and the company’s decision to reduce exposure to Vaca Muerta risk. He said Centaurus sold Coiron Amargo Sureste because the Vaca Muerta risk was too high for a company of its size and said the company will now focus mainly on conventional activities in Rio Negro and the North. His tone was cautiously optimistic but pragmatic, emphasizing that capital markets in Argentina remain difficult and that strategic flexibility is needed.

No CFO spoke on the call, and the company noted that Steven Azarbad relinquished his role as interim CFO but remains on the board. Financial commentary came from the CEO: revenue was up 10% year over year, operating expenses were down 50% year over year, G&A was at all-time lows, and netbacks were the best since 2018. The company also highlighted positive EBITDA for four straight quarters and positive net income in Q2.

An analyst pressed management for a concrete production and drilling plan, asking when the company would increase drilling activity and whether commitments at Puesto Morales required drilling to keep the concession. Tawil said Centaurus is in productive dialogue with the province of Rio Negro, has submitted a drilling proposal, and is not under any immediate threat of losing the concession. He added that the proposal is confidential and still evolving because the company is also discussing broader strategic initiatives, including possible partnerships, and said he hopes to provide clarity by October or by year end.