Alvopetro Energy Ltd. press release
Alvopetro Announces Q3 2025 Financial Results and an Operational Update Including Record October Sales
TSXV - TSX Venture Exchange · Natural Gas · Natural Gas Liquids · Oil · Canada
Canada NewsWire
CALGARY, AB, Nov. 5, 2025/CNW/ - Alvopetro Energy Ltd. (TSXV:ALV) (OTCQX: ALVOF) announces an operational update and financial results for the three and nine months ended September 30, 2025.
All references herein to $ refer to United Statesdollars, unless otherwise stated and all tabular amounts are in thousands of United Statesdollars, except as otherwise noted.
President & CEO, Corey C. Ruttancommented:
"Our sales in Brazilin October averaged 2,766 boepd, a 34% increase from September. Our Western Canadian assets added an additional 157 bopd bringing our company average up to 2,923 boepd, a new record for Alvopetro. On our 100% owned Murucututu project in Brazil, our 183-D4 well achieved IP30 rates of 1,071 boepd, significantly above our pre-drill estimates. This result helps strengthen our longer-term growth plans in Brazil. Our success in Brazilis being complimented by our Western Canadian capital program and our recently expanded partnership covering virtually all of the Saskatchewanportion of the Mannville Stack Heavy Oil play fairway. We are in a strong position to continue our disciplined capital allocation model, balancing returns to stakeholders and investing in high rate of return growth opportunities in Braziland the Western Canadian Sedimentary Basin."
Operational Update
October Sales Volumes
| Natural gas, NGLs and crude oil sales: | October
2025 | September
2025 | Q3 2025 | | Brazil: | | | | | Natural gas (Mcfpd), by field: | | | | | Caburé | 9,136 | 5,463 | 8,735 | | Murucututu | 6,115 | 5,812 | 3,558 | | Total natural gas (Mcfpd) | 15,251 | 11,275 | 12,293 | | NGLs (bopd) | 206 | 180 | 147 | | Oil (bopd)(1) | 18 | 9 | 9 | | Total (boepd) – Brazil | 2,766 | 2,069 | 2,205 | | Canada: | | | | | Oil (bopd) – Canada | 157 | 163 | 138 | | Total Company – boepd(2) | 2,923 | 2,232 | 2,343 |
| (1) | Oil sale volumes in Brazil relate to the Bom Lugar and Mãe da lua fields. Alvopetro has entered into an assignment agreement to dispose of the fields, the closing of which is subject to standard regulatory approvals, including approval of the ANP. | | (2) | Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
October sales volumes increased to 2,923 boepd, including 2,766 boepd from Brazil(with natural gas sales of 15.3 MMcfpd, associated natural gas liquids sales from condensate of 206 bopd, and oil sales of 18 bopd) and 157 bopd from oil sales in Canada, based on field estimates, setting a new record for sales volumes at Alvopetro. In Brazil, sales volumes increased 34% over September and 25% over Q3 2025 following Alvopetro and Bahiagas agreeing to a spot contract with discounted pricing for volumes above our firm contract reference volumes of 400 e3m3/d (14.1 MMcfpd).
Quarterly Natural Gas Pricing Update
As previously announced, effective November 1, 2025, our natural gas price under our long-term gas sales agreement was adjusted to BRL1.81/m3and will apply to firm natural gas sales (up to 400,000 m3/d) from November 1, 2025to January 31, 2026. Based on our average heat content to date and the October 31, 2025BRL/USD exchange rate of 5.38, our expected realized price at the new contracted price is $10.15/Mcf, net of applicable sales taxes, a decrease of 8% from the Q3 2025 realized price of $11.04/Mcf due mainly to lower Henry Hub prices in the third quarter. Amounts ultimately received in equivalent USD will be impacted by exchange rates in effect during the period November 1, 2025to January 31, 2026. Natural gas sales above 400,000 m3/d are currently being sold on a flexible basis under spot contracts at discounts to our firm contracted price.
Development Activities - Brazil
On our 100% owned Murucututu field, the 183-D4 well was completed in seven intervals in the third quarter. With this well on production from the field since late August, third quarter natural gas sales from Murucututu increased to 3.6 MMcfpd (+199% from Q2 2025) and October natural gas sales increased further to 6.1 MMcfpd.
Our joint development on the unitized area ("the Unit"), which includes our Caburé field, continued in the third quarter and four wells (2.2 net) were drilled. Three of the wells have now been completed and brought on production. We are planning a sidetrack of the fourth well due to challenges encountered while executing the final phase of the well. The timing of drilling the fifth planned development well (0.6 net) is subject to the receipt of all necessary regulatory approvals.
Development Activities – Western Canada
In the third quarter, two additional wells were drilled (1.0 net to Alvopetro) and commenced production in September. As previously announced, we entered into an expanded area of mutual interest ("Expanded AMI") with our existing partner. Under the terms of the Expanded AMI, we have agreed to fund 100% of two earning wells to earn a 50% working interest in an additional 46.9 sections of land (15,010 net acres). The two earning wells are expected to commence drilling in late 2025. After drilling, Alvopetro will have a 50% interest in 74.4 sections of land (23,900 net acres).
Financial and Operating Highlights – Third Quarter of 2025
Average daily sales in Q3 2025 were 2,343 boepd(1)(+11% from Q3 2024 and -4% from Q2 2025). In Brazil, daily sales averaged 2,205 boepd (+5% compared to Q3 2024 and -4% from Q2 2025) and in Canada, oil sales averaged 138 bopd in the quarter (consistent with Q2 2025). Our average realized natural gas price was $11.04/Mcf (+1% from Q3 2024 and +4% from Q2 2025). Our overall averaged realized sales price per boe was $65.76/boe (-1% from Q3 2024 and +4% from Q2 2025). Our natural gas, oil and condensate revenue increased to $14.2 million(+10% from Q3 2024 and +1% from Q2 2025). Compared to Q3 2024, the increase was driven by higher overall sales volumes, partially offset by lower realized prices. Compared to Q2 2025, the increase was as a result of higher realized prices, partially offset by lower sales volumes. Our operating netback(2)in the quarter was $55.90per boe, a decrease of $3.29per boe compared to Q3 2024 due mainly to addition of lower overall netbacks from Canadian operations. Compared to Q2 2025, our operating netback increased $1.18per boe with higher realized prices, partially offset by higher royalties, production expenses and transportation expenses. We generated funds flows from operations(2)of $10.4 million($0.28per basic and per diluted share), increases of $0.6 millioncompared to Q3 2024 and $0.1 millioncompared to Q2 2025. We reported net income of $4.6 million($0.12per basic and diluted share), a decrease of $2.5 millioncompared to Q3 2024 due mainly to impairment losses and higher depletion and depreciation expenses recognized in Q3 2025, partially offset by higher revenues with increased sales volumes, and lower tax expenses. Capital expenditures totaled $11.2 million, including completion costs for the 183-D4 well on Alvopetro's 100% Murucututu field, Alvopetro's share of unit development costs on the Cabure field and Alvopetro's share of costs to drill and equip an additional two wells (1.0 net) in Saskatchewan. Our working capital(2)surplus was $2.2 millionas of September 30, 2025, decreasing $4.6 millionfrom June 30, 2025.
| (1) | Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. | | (2) | See "_Non-GAAP and Other Financial Measures_" section within this news release. |
The following table provides a summary of Alvopetro's financial and operating results for the periods noted. The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.alvopetro.comand will be available on the SEDAR+ website at www.sedarplus.ca.
| | As at and Three Months Ended
September 30, | As at and Nine Months Ended
September 30, | | | | | | | 2025 | 2024 | Change (%) | 2025 | 2024 | Change (%) | | Financial | | | | | | | | ($000s, except where noted) | | | | | | | | Natural gas, oil and condensate sales | 14,175 | 12,879 | 10 | 42,198 | 35,303 | 20 | | Net income | 4,613 | 7,152 | (36) | 17,513 | 14,052 | 25 | | Per share – basic ($)(1) | 0.12 | 0.19 | (37) | 0.47 | 0.38 | 24 | | Per share – diluted ($)(1) | 0.12 | 0.19 | (37) | 0.46 | 0.37 | 24 | | Cash flows from operating activities | 12,153 | 10,714 | 13 | 31,443 | 27,787 | 13 | | Per share – basic ($)(1) | 0.33 | 0.29 | 14 | 0.84 | 0.75 | 12 | | Per share – diluted ($)(1) | 0.32 | 0.28 | 14 | 0.83 | 0.74 | 12 | | Funds flow from operations(2) | 10,448 | 9,886 | 6 | 30,036 | 26,309 | 14 | | Per share – basic ($)(1) | 0.28 | 0.27 | 4 | 0.81 | 0.71 | 14 | | Per share – diluted ($)(1) | 0.28 | 0.26 | 8 | 0.79 | 0.70 | 13 | | Dividends declared | 3,673 | 3,295 | 11 | 10,976 | 9,887 | 11 | | Per share(1)(2) | 0.10 | 0.09 | 11 | 0.30 | 0.27 | 11 | | Capital expenditures | 11,249 | 4,747 | 137 | 28,610 | 10,623 | 169 | | Cash and cash equivalents | 12,081 | 24,515 | (51) | 12,081 | 24,515 | (51) | | Net working capital(2) | 2,209 | 15,848 | (86) | 2,209 | 15,848 | (86) | | Weighted average shares outstanding | | | | | | | | Basic (000s)(1) | 37,263 | 37,300 | - | 37,273 | 37,286 | - | | Diluted (000s)(1) | 37,851 | 37,662 | 1 | 37,801 | 37,671 | - | | Operations | | | | | | | | Average daily sales volumes(3): | | | | | | | | Brazil: | | | | | | | | Natural gas (Mcfpd), by field: | | | | | | | | Caburé (Mcfpd) | 8,735 | 11,378 | (23) | 10,741 | 9,817 | 9 | | Murucututu (Mcfpd) | 3,558 | 616 | 478 | 2,286 | 490 | 367 | | Total natural gas (Mcfpd) | 12,293 | 11,994 | 2 | 13,027 | 10,307 | 26 | | NGLs – condensate (bopd) | 147 | 95 | 55 | 137 | 83 | 65 | | Oil (bopd) | 9 | 12 | (25) | 8 | 12 | (33) | | Total (boepd) - Brazil | 2,205 | 2,106 | 5 | 2,315 | 1,813 | 28 | | | | | | | | | | Canada: | | | | | | | | Oil (bopd) - Canada | 138 | - | - | 93 | - | - | | | | | | | | | | Total Company (boepd) | 2,343 | 2,106 | 11 | 2,408 | 1,813 | 33 |
| | As at and Three Months Ended
September 30, | As at and Three Months Ended
September 30, | | | | | | | 2025 | 2024 | Change (%) | 2025 | 2024 | Change (%) | | Average realized prices(2): | | | | | | | | Natural gas ($/Mcf) | 11.04 | 10.92 | 1 | 10.69 | 11.70 | (9) | | NGLs – condensate ($/bbl) | 74.16 | 86.70 | (14) | 75.83 | 88.77 | (15) | | Oil ($/bbl) | 50.42 | 68.36 | (26) | 49.36 | 68.48 | (28) | | Total ($/boe) | 65.76 | 66.46 | (1) | 64.19 | 71.06 | (10) | | | | | | | | | | Operating netback ($/boe)(2) | | | | | | | | Realized sales price | 65.76 | 66.46 | (1) | 64.19 | 71.06 | (10) | | Royalties | (3.54) | (1.89) | 87 | (4.71) | (1.94) | 143 | | Production expenses | (6.10) | (5.38) | 13 | (5.58) | (6.23) | (10) | | Transportation expenses | (0.22) | - | - | (0.12) | - | - | | Operating netback | 55.90 | 59.19 | (6) | 53.78 | 62.89 | (14) | | Operating netback margin(2) | 85 % | 89 % | (4) | 84 % | 89 % | (6) |
| Notes: | | | (1) | Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share. | | (2) | See "Non-GAAP and Other Financial Measures" section within this news release. | | (3) | Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
Q3 2025 Results Webcast
Alvopetro will host a live webcast to discuss our Q3 2025 financial results at 8:00 am Mountain time on ThursdayNovember 6, 2025. Details for joining the event are as follows:
DATE: November 6, 2025 TIME: 8:00 AMMountain/10:00 AMEastern LINK:https://us06web.zoom.us/j/87150507093 DIAL-IN NUMBERS: https://us06web.zoom.us/u/kdLidYPIoO WEBINAR ID: 871 5050 7093
The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com.
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at: http://www.alvopetro.com/corporate-presentation.
SocialMedia
Follow Alvopetro on our social media channels at the following links:
X -https://x.com/AlvopetroEnergy Instagram - https://www.instagram.com/alvopetro/ LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
_Alvopetro Energy Ltd. __is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canadaand Brazilwhere we arebuilding off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure._
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Abbreviations:
| $000s | = | thousands of U.S. dollars | | boepd | = | barrels of oil equivalent ("boe") per day | | bopd | = | barrels of oil and/or natural gas liquids (condensate) per day | | BRL | = | Brazilian Real | | e3m3/d | = | thousand cubic metre per day | | m3 | = | cubic metre | | m3/d | = | cubic metre per day | | Mcf | = | thousand cubic feet | | Mcfpd | = | thousand cubic feet per day | | MMcf | = | million cubic feet | | MMcfpd | = | million cubic feet per day | | NGLs | = | natural gas liquids (condensate) | | Q1 2025 | = | three months ended March 31, 2025 | | Q3 2024 | = | three months ended September 30, 2024 | | Q2 2025 | = | three months ended June 30, 2025 | | Q3 2025 | = | three months ended September 30, 2025 | | USD | = | United States dollars | | GAAP or IFRS | = | IFRS Accounting Standards |
Non-GAAP and Other Financial Measures
This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are used by management in assessing the Company's financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "_Non-GAAP Measures and Other Financial Measures_" section of the Company's MD&A which may be accessed through the SEDAR+ website atwww.sedarplus.ca.
Non-GAAP Financial Measures
Operating Netback
Operating netback is calculated as natural gas, oil and condensate revenues less royalties, production expenses, and transportation expenses. This calculation is provided in the "_Operating Netback_" section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.
Non-GAAP Financial Ratios
Operating Netback per boe
Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent ("boe"). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company's producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in note 3 of the interim condensed consolidated financial statements and in the "_Operating Netback_" section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per boe basis.
Operating netback margin
Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:
| | Three Months Ended
September 30, | Nine Months Ended
September 30, | | | | | 2025 | 2024 | 2025 | 2024 | | Operating netback - $ per boe | 55.90 | 59.19 | 53.78 | 62.89 | | Average realized price - $ per boe | 65.76 | 66.46 | 64.19 | 71.06 | | Operating netback margin | 85 % | 89 % | 84 % | 89 % |
Funds Flow from Operations Per Share
Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:
| | Three Months Ended
September 30, | Nine Months Ended
September 30, | | | | $ per share | 2025 | 2024 | 2025 | 2024 | | Per basic share: | | | | | | Cash flows from operating activities | 0.33 | 0.29 | 0.84 | 0.75 | | Funds flow from operations | 0.28 | 0.27 | 0.81 | 0.71 | | | | | | | | Per diluted share: | | | | | | Cash flows from operating activities | 0.32 | 0.28 | 0.83 | 0.74 | | Funds flow from operations | 0.28 | 0.26 | 0.79 | 0.70 |
Capital Management Measures
Funds Flow from Operations
Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company's ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:
| | Three Months Ended
September 30, | Nine Months Ended
September 30, | | | | | 2025 | 2024 | 2025 | 2024 | | Cash flows from operating activities | 12,153 | 10,714 | 31,443 | 27,787 | | Changes in non-cash working capital | (1,705) | (828) | (1,407) | (1,478) | | Funds flow from operations | 10,448 | 9,886 | 30,036 | 26,309 |