PetroTal Corp.

Q2 2026 production averaged 12,557 barrels per day, down 16% from Q1 2026 and down 40% from Q2 2025. Adjusted EBITDA was $43.5 million, up 24% sequentially; free funds flow was $32.4 million, up 26% quarter over quarter and 19% year over year; net income was $4.8 million, impacted by a $10.2 million noncash impairment charge related to the sale of the Amazonia-1 drilling rig. Operating expenses were about $11 million in total, and the company ended the quarter with $137 million of total cash and $37.5 million of total debt. For the first half of 2026, adjusted EBITDA was $78.7 million and capital expenditures were $15.6 million. Full-year 2026 guidance calls for adjusted EBITDA of $110 million to $120 million and capital expenditures of $80 million to $90 million; management also said that based on 12,000 bpd average annual production and an $83.60/bbl Brent assumption, it expects about $180 million of net operating income, about $170 million of EBITDA, about $85 million of capex, and roughly $8 million of after-tax free funds flow, with available cash rising to approximately $120 million by year-end.

Manuel Zuniga framed PetroTal as an early-stage asset with 110 million barrels of remaining 2P reserves and emphasized the company’s long-term field-building opportunity. He said the company is preparing to restart development drilling in early October, with an 8-well campaign aimed at restoring production growth toward more than 20,000 bpd in 2027. His tone was constructive and confident, especially around the quality of the first drill locations and the ability to replicate Bretaña’s success more than once.

Camilo McAllister focused on the financial bridge from lower volumes to stronger margins. He highlighted that Brent rose $15.46/bbl sequentially and $24.56/bbl year over year, lifting net operating income per barrel by $12.78 and $22.59, respectively, while operating expenses stayed essentially flat at $11 million in total. He also noted $137 million of total cash, $105 million of available cash, $78.7 million of first-half adjusted EBITDA, and $15.6 million of first-half capex, and said year-end available cash should increase to about $120 million despite heavier second-half spending.

Analysts asked about optionality beyond the initial 8-well rig program, and management said there are 13 proved locations and 22 locations on a 2P basis, so the rig could be extended if desired. Questions also centered on water handling, erosion control, permitting, and the Petroperu true-up; management said the modified EIA covers the current campaign and additional wells, the riverbank work should be completed by 2027, and the erosion-control tender is still on track for proposals by mid-August and restart in September. On dividends, management said reinstatement remains under review and will be revisited as visibility improves later in the year.