PetroTal Announces Q3 2026 Financial and Operating Results

Higher oil prices did not offset lower sales volumes, while post-quarter loan repayment eliminated $3.9 million of future interest costs.

Rhea-AI Summary

PetroTal (PTALF) reported a $5.5 million net loss for the third quarter of 2026 as commodity derivatives weighed on earnings. Oil revenue was $66.391 million, versus $71.871 million a year earlier. Production averaged 11,797 barrels per day, down from 18,414. Adjusted EBITDA was $33.7 million and free funds flow was $21.2 million; both are non-GAAP measures.

Unrestricted cash rose to $115.6 million from $105.4 million at June-end. After quarter-end, PetroTal repaid its $36.6 million BanBif-COFIDE loan balance, eliminating $3.9 million of future interest costs. Year-to-date production was 3% ahead of budget. The company expects its eight-well drilling campaign to bring Bretaña production to approximately 20,000 barrels per day by the end of Q1 2027. Quarterly capital spending was $11.8 million, bringing year-to-date investment to $27.4 million.

14 points · 0 major

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0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointAdjusted EBITDA of $33.7 million exceeded Q3 2025's $31.568 million but fell from Q2 2026's $43.541 million.
• Moderate pointFree funds flow of $21.2 million exceeded $11.886 million a year earlier but fell from $32.373 million sequentially.
• Moderate pointUnrestricted cash rose to $115.6 million at September-end from $105.4 million at June-end.
• Moderate point$36.6 million loan balance repaid after quarter-end, eliminating $3.9 million of future interest costs. 11% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Eight-well campaign is expected to bring Bretaña production to approximately 20,000 barrels daily by end-Q1 2027.

9 minor points

• Minor pointRealized net sales price of $63.05 per barrel exceeded $43.33 a year earlier, versus $66.87 sequentially.
• Minor pointYear-to-date production of 13,076 barrels per day tracked 3% ahead of budget.
• Minor point. Forward-looking: it has not happened yet and may not happen.Well 25-H began drilling September 21; PetroTal expects target depth in November, then production and well 24-H drilling.
• Minor pointFive-well remediation improved production deliverability and finished on schedule and on budget.
• Minor pointSeptember water injection rose 6% month over month to 187,000 barrels per day following injection-well stimulation.
• Minor point. Forward-looking: it has not happened yet and may not happen.Water injection capacity target is 320,000 barrels per day at Bretaña by the end of 2028.
• Minor pointArea CXVII Technical Evaluation Agreement was awarded after quarter-end.
• Minor pointQ3 general and administrative expenses fell to $6.368 million from $7.271 million a year earlier.
• Minor pointQ3 erosion-control expense fell to $1.480 million from $6.481 million a year earlier.

Negative

• Moderate pointQ3 net loss of $5.5 million compares with $3.599 million net income a year earlier.
• Moderate pointQ3 oil revenue fell to $66.391 million from $71.871 million a year earlier and $72.827 million sequentially.
• Moderate pointQ3 production fell to 11,797 barrels per day from 18,414 a year earlier and 12,557 sequentially.
• Moderate pointQ3 sales fell to 11,446 barrels per day from 18,028 a year earlier and 11,969 sequentially.
• Moderate pointQ3 operating expenses per barrel rose to $12.98 from $8.34 a year earlier and $10.11 sequentially.

9 minor points

• Minor pointCommodity derivative losses totaled $14.9 million; a substantial portion was unrealized and did not affect cash flows.
• Minor pointNine-month oil revenue fell to $205.168 million from $261.932 million in the comparable 2025 period.
• Minor pointNine-month adjusted EBITDA fell to $112.342 million from $147.738 million in the comparable 2025 period.
• Minor pointNine-month net income fell to $14.544 million from $51.964 million in the comparable 2025 period.
• Minor pointNine-month free funds flow fell to $79.322 million from $87.174 million in the comparable 2025 period.
• Minor pointNine-month production fell to 13,076 barrels per day from 20,893 in the comparable 2025 period.
• Minor pointNine-month sales fell to 12,578 barrels per day from 20,611 in the comparable 2025 period.
• Minor pointLoan repayment reduced unrestricted cash by approximately $11 million after quarter-end.
• Minor pointErosion-control construction restart remains under negotiation with service providers.

News Explained

The drilling campaign is underway, while the loan repayment reduced unrestricted cash by about $11 million and hedges extend through 2027.

The first well of the eight-well development campaign, 25-H, spudded on September 21, 2026 and is drilling; PetroTal expects it to reach target depth this month before being placed on production.

As of September 30, 2026, PetroTal had hedges on about 338,000 barrels for the rest of 2026 and 1.7 million barrels through 2027; the three-way collars had a weighted average Brent floor of $60 a barrel, ceiling of $78, and cap of $98.

After quarter-end repayment of the BanBif-COFIDE loan, unrestricted cash decreased by approximately $11 million.

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Calgary, Alberta and Houston, Texas--(Newsfile Corp. - November 9, 2026) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to report its operating and financial results for the three and nine months ended September 30, 2026. All amounts herein are in United States dollars unless stated otherwise.

Selected financial and operational information outlined below should be read in conjunction with the Company's unaudited consolidated financial statements and management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2026, which are available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.petrotalcorp.com.

Key Highlights

• Average Q3 2026 sales and production of 11,446 and 11,797 barrels of oil per day ("bopd"), respectively;

• Year to date production averaged 13,076 bopd, tracking 3% ahead of budget;

• Q3 Adjusted EBITDA⁽¹⁾ and Free Funds Flow^(1} of $33.7 million ($31.96/bbl) and $21.2 million ($20.15/bbl) respectively;

• Net loss of $5.5 million ($5.27/bbl), due to a total commodity price derivative loss of $14.9 million. A significant portion of this relates to unrealized fair value adjustments on the Company's commodity hedging program, with no impact on cash flows;

• Capital expenditures of $11.8 million, bringing 2026 YTD capital investment to $27.4 million, and;

• Unrestricted cash of $115.6 million, an increase of 9.6% in the quarter.

• Commencement of the drilling of development well 25-H

• Post quarter end events:

  • Repayment of $36.6 million balance of BanBif-COFIDE syndicated facility from existing resources

  • Award of Area CXVII Technical Evaluation Agreement (TEA).

(1) Non-GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See "Selected Financial Highlights" section.

Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:

"PetroTal delivered a solid third quarter, with Adjusted EBITDA of $33.7 million and Free Funds Flow of $21.2 million reflecting higher year on year pricing and continued cost discipline. Year to date production averaged 13,076 bopd, slightly ahead of our internal plan, putting us in an encouraging position to meet our annual production guidance. The first development well of our production growth campaign, 25-H, is drilling ahead safely and we look forward to sharing the results once it has completed. We are also pleased to have voluntarily prepaid in full the outstanding balance of our BanBif-COFIDE syndicated loan facility, and to have been awarded a TEA in Area CXVII. Looking ahead, we remain focused on disciplined capital allocation and advancing our drilling campaign, returning to production growth."

Selected Financial Highlights

		Three Months Ended																		Nine Months Ended
		Q3-2026						Q2 2026						Q3 2025						Q3-2026						Q3 2025
		$/bbl			$(000's)			$/bbl			$(000's)			$/bbl			$(000's)			$/bbl			$(000's)			$/bbl			$(000's)
Average Production (bopd)					11,797						12,557						18,414						13,076						20,893
Average Sales (bopd)					11,446						11,969						18,028						12,578						20,611
Total Sales (bbls)1					1,053,046						1,089,145						1,658,621						3,433,663						5,626,937
Average Brent Price	$	86.45					$	90.11					$	66.96					$	83.82					$	68.80
Contracted Sales Price, Gross	$	86.49					$	90.36					$	66.95					$	83.25					$	69.06
Tariffs, Fees and Differentials	$	23.44					$	23.49					$	23.62					$	23.50					$	22.51
Realized Sales Price, Net	$	63.05					$	66.87					$	43.33					$	59.75					$	46.55
Oil Revenue	$	63.05		$	66,391		$	66.87		$	72,827		$	43.33		$	71,871		$	59.75		$	205,168		$	46.55		$	261,932
Royalties2	$	5.85		$	6,158		$	7.36		$	8,016		$	4.80		$	7,961		$	5.98		$	20,525		$	5.24		$	29,478
Operating Expenses	$	12.98		$	13,668		$	10.11		$	11,013		$	8.34		$	13,834		$	10.37		$	35,609		$	7.92		$	44,549
Direct Transportation
Barging	$	1.56		$	1,647		$	(0.60	)	$	(651	)	$	0.60		$	1,003		$	0.47		$	1,622		$	0.74		$	4,149
Storage	$	-		$	-		$	-		$	-		$	2.76		$	4,579		$	-		$	-		$	1.03		$	5,785
Total Transportation	$	1.56		$	1,647		$	(0.60	)	$	(651	)	$	3.36		$	5,582		$	0.47		$	1,622		$	1.77		$	9,934
Net Operating Income3,4	$	42.66		$	44,918		$	49.99		$	54,449		$	26.83		$	44,494		$	42.93		$	147,412		$	31.63		$	177,971
Erosion Control	$	1.41		$	1,480		$	0.30		$	332		$	3.91		$	6,481		$	1.71		$	5,882		$	1.60		$	9,002
G&A	$	6.05		$	6,368		$	6.29		$	6,854		$	4.38		$	7,271		$	6.39		$	21,934		$	4.38		$	24,625
EBITDA3	$	33.79		$	35,581		$	31.56		$	34,377		$	18.53		$	30,741		$	30.66		$	105,271		$	25.65		$	144,344
Adjusted EBITDA3,5	$	31.96		$	33,653		$	39.98		$	43,541		$	19.03		$	31,568		$	32.72		$	112,342		$	26.26		$	147,738
Net (loss) Income	$	(5.27	)	$	(5,549	)	$	4.40		$	4,796		$	2.17		$	3,599		$	4.24		$	14,544		$	9.23		$	51,964
Basic Shares Outstanding ('000)					920,328						920,328						913,372						920,328						913,372
Net Income/Share ($/sh)				$	(0.01	)				$	0.01					$	-					$	0.02					$	0.06
Capex				$	11,769					$	7,967					$	19,682					$	27,358					$	60,352
Free Funds Flow3,6	$	20.15		$	21,221		$	29.72		$	32,373		$	7.17		$	11,886		$	23.10		$	79,322		$	15.49		$	87,174
Total Cash7				$	151,423					$	136,893					$	141,488					$	151,423					$	141,488
Available Cash				$	115,552					$	105,388					$	108,809					$	115,552					$	108,809
Approximately 98% of Q3 2026 sales were through the Brazilian route vs 99% in Q3 2025. Royalties include the impact of the 2.5% community social trust. Non-GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See "Selected Financial Measures" section. Net operating income represents revenues less royalties, operating expenses, and direct transportation. Adjusted EBITDA is net operating income less general and administrative ("G&A") and plus/minus realized derivative impacts. Free funds flow is defined as adjusted EBITDA less cash capital expenditures. Includes restricted cash balances.

 

Additional financial and operational updates during and subsequent to the quarter ending September 30, 2026:

Block 95 Update

PetroTal produced an average of 11,465 bopd from the Bretaña field (Block 95; PetroTal 100% WI) in Q3 2026. Bretana production declined by approximately 725 bopd relative to the prior quarter, mainly due to natural declines, and in-line with expectations. In the first nine months of 2026, PetroTal's total production averaged 13,076 bopd, approximately 3% ahead of budget expectations.

During the quarter, PetroTal concluded a pulling campaign at the Bretaña field, replacing production tubing and electric submersible pumps in five wells. Remediation work in the wells improved production deliverability and was completed on schedule and on budget. Subsequently, PetroTal conducted stimulations over two water injection wells, with a view to increasing water injection capacity at the field. Following the completion of this work, PetroTal injected an average of 187,000 barrels of water per day in the month of September, a 6% increase compared with the prior month. These efforts are part of a larger, ongoing initiative to increase the Bretaña field's water injection capacity to a total of 320,000 barrels per day by the end of 2028.

PetroTal's development drilling campaign continues, with well 25-H having spud on September 21, 2026. The well is drilling ahead safely and is expected to reach target depth this month. It will then be placed on production, and the next well in our eight well campaign, 24-H, will spud shortly thereafter. This drilling campaign is expected to result in Bretaña field production of approximately 20,000 bopd by the end of the first quarter of 2027. PetroTal will update the market as appropriate.

Erosion Control Project

PetroTal has secured a significant proportion of the equipment and resource required to complete this key project and is negotiating with service providers to recommence the remainder of the construction work.

Financial Update

PetroTal ended Q3 2026 with a total cash position of $151.4 million, of which $115.6 million was unrestricted. This compares to $136.9 million total cash ($105.4 million unrestricted) at the end of Q2 2026.

Post period end PetroTal repaid the $36.6 million outstanding balance of the BanBif-COFIDE syndicated loan, resulting in unrestricted cash decreasing by approximately $11 million. The early repayment of this loan eliminates $3.9 million of future interest costs.

PetroTal reported a net loss of $5.5 million ($5.27/bbl) for Q3 2026 due to a total commodity price derivative loss of $14.9 million reflecting unrealized fair value losses on hedging of $10.6 million and realized losses of $4.8 million, partially offset by a $0.5 million gain on outstanding embedded derivatives. These unrealized losses do not affect operating cash flows, liquidity, covenant compliance or free funds flow generation and will fluctuate with changes in forward oil prices until settlement.

PetroTal initiated new hedges on approximately 0.9 million barrels of oil in Q3 2026. As at September 30, 2026, the Company maintains hedges on approximately 338,000 barrels over the remainder of 2026 and a total of 1.7 million barrels through 2027. The three way collars have a weighted average Brent floor price of $60/bbl and a ceiling of $78/bbl, with a cap of $98/bbl.

PetroTal continues to refine the 2027 budget plan and will provide additional details in due course.

Q3 2026 Webcast Link for November 9, 2026

PetroTal's management team will host a webcast to discuss Q3 2026 results on November 9, 2026 at 9am CT (Houston) and 3pm GMT (London). Please see the link below to register.

https://brrmedia.news/PTAL_Q3_26

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSX: TAL, AIM: PTAL and OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in the Bretaña Norte oil field in Peru's Block 95, where oil production was initiated in June 2018. In early 2022, PetroTal became the largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.

For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedarplus.ca, or below:

Camilo McAllister
Executive Vice President and Chief Financial Officer
Cmcallister@PetroTal-Corp.com

Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com

Emily Morris
Head of Investor Relations
InvestorRelations@PetroTal-Corp.com

Celicourt Communications
Mark Antelme / Sophie Brand
petrotal@celicourt.uk
T: +44 (0) 20 7770 6424

Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Edward Foulkes
T: +44 (0) 207 409 3494

Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
T: +44 (0) 20 7710 7600

Peel Hunt LLP (Joint Broker)
Richard Crichton / David McKeown / Georgia Langoulant
T: +44 (0) 20 7418 8900

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: oil production levels and production capacity; PetroTal's drilling, completions and other activities; well 25H drilling and timing; the sequencing and timing of the eight-well development drilling campaign; timing to restore Bretana production to approximately 20,000 bopd; water injection capacity targets; Area CXVII evaluation plans; plans and expectations with respect to the erosion control project; and expected interest savings from the repayment of the BanBif-COFIDE loan. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective", "intend" and similar expressions. The forward-looking statements provided in this press release are based on management's current belief, based on currently available information, as to the outcome and timing of future events. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, the ability to obtain and maintain necessary permits and licenses, the ability of government groups to effectively achieve objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, including pursuant to hedging arrangements, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the impact of inflation on costs, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, future river water levels, the Company's growth strategy, general economic conditions and availability of required equipment and services. PetroTal cautions that forward-looking statements relating to PetroTal are subject to all of the risks, uncertainties and other factors, which may cause the actual results, performance, capital expenditures or achievements of the Company to differ materially from anticipated future results, performance, capital expenditures or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), business performance, legal and legislative developments including changes in tax laws and legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures, credit ratings and risks, fluctuations in interest rates and currency values, changes in the financial landscape both domestically and abroad, including volatility in the stock market and financial system, wars (including Russia's war in Ukraine and the Israeli-Hamas conflict), regulatory developments, commodity price volatility, price differentials and the actual prices received for products, exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry, changes in the financial landscape both domestically and abroad (including volatility in the stock market and financial system) and the occurrence of weather-related and other natural catastrophes. Readers are cautioned that the foregoing list of factors is not exhaustive. Please refer to the annual information form for the year ended December 31, 2025 and the management's discussion and analysis for the three months and nine months ended September 30, 2026 for additional risk factors relating to PetroTal, which can be accessed either on PetroTal's website at www.petrotal-corp.com or under the Company's profile on www.sedarplus.ca. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

SHORT TERM RESULTS: References in this press release to peak rates, initial production rates, current production rates, 30-day production rates and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of PetroTal. The Company cautions that such results should be considered to be preliminary.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations and production results, cash position, liquidity and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was approved by management as of the date of this press release and was included for the purpose of providing further information about PetroTal's anticipated future business operations. PetroTal and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in PetroTal's guidance. The Company's actual results may differ materially from these estimates.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323019

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were PetroTal's Q3 2026 earnings and cash flow results?

PetroTal recorded a $5.5 million net loss, adjusted EBITDA of $33.7 million and free funds flow of $21.2 million. Adjusted EBITDA and free funds flow are non-GAAP measures without standardized meanings and may not be comparable with other companies' measures.

What production does PetroTal expect from its Bretaña drilling campaign?

PetroTal expects its eight-well campaign to bring Bretaña field production to approximately 20,000 barrels per day by the end of the first quarter of 2027. Well 25-H began drilling on September 21, 2026, with target depth expected in November before production starts and well 24-H follows.

What oil hedges did PetroTal hold at September 30, 2026?

PetroTal held hedges on approximately 338,000 barrels over the remainder of 2026 and a total of 1.7 million barrels through 2027. The three-way collars had a weighted average Brent floor of $60 per barrel and a ceiling of $78 per barrel, with a cap of $98 per barrel.

How did unrealized hedging losses affect PetroTal's Q3 2026 liquidity?

The unrealized hedging losses did not affect operating cash flows, liquidity, covenant compliance or free funds flow generation. Unrealized fair-value losses on hedging were $10.6 million. Their value will fluctuate with forward oil prices until settlement.