CALGARY, AB — Valeura Energy Inc. has announced significant advancements in its operational and financial performance for the second quarter of 2026, reporting record oil production and revenues. The company achieved adjusted EBITDAX of approximately US$162.8 million and free cash flow of US$104.7 million, driven by a substantial increase in oil sales and average price realisations.
During Q2 2026, Valeura recorded oil production of 2.030 million barrels, averaging 22,309 barrels per day, which reflects a 4% increase compared to the same quarter last year. Revenue for the quarter reached US$259.8 million, bolstered by an average realized price of US$105.8 per barrel, marking a 56% increase year-over-year.
As of June 30, 2026, the company's net cash position rose to US$316.5 million with no outstanding debt. This enhancement in liquidity comes alongside a formal reduction in the decommissioning liabilities of the Manora field, allowing for a 31% decrease in restricted cash.
Valeura's operations across its Gulf of Thailand fields showed strong performance, with ongoing production at Jasmine, Manora, Nong Yao, and Wassana. Notably, the company successfully drilled the longest horizontal lateral in the Gulf of Thailand and completed its first complex multi-lateral development well during this quarter.
Additionally, Valeura continues to expand its drilling capabilities, planning to mobilize a new rig contract to drill three new wells at the Nong Yao field later this year, ahead of original timelines. Construction on a new central processing platform at the Wassana field is progressing ahead of schedule, with potential implications for accelerating future production timelines.
Looking ahead, Valeura aims to maintain production targets while navigating the challenges posed by rising operational costs, particularly due to increased diesel prices. The company has entered into a revolving credit facility with up to US$75 million and an additional accordion feature providing up to $250 million, aimed at supporting both organic growth and potential mergers and acquisitions.
Management confirmed that operational costs may rise, and the final capital expenditures will be closely monitored, ensuring alignment with production and cash flow expectations for the remainder of 2026.
In Q2 2026, Valeura Energy Inc. reported oil production of 2.030 million barrels, averaging 22,309 barrels per day. This marks a 4% increase over the same period in 2025.
Valeura's financial performance in Q2 2026 included adjusted EBITDAX of US$162.8 million and adjusted cash flow from operations of US$154.1 million, which represent a significant improvement from Q1 2025. However, the increased costs of operations, influenced by rising diesel prices, must be considered against this improved financial backdrop.
The company's revenue for Q2 2026 was US$259.8 million, driven by average price realisations of US$105.8 per barrel. This represents approximately double the revenue of Q2 2025, although it is crucial to note that market conditions can be volatile and may affect future revenues.
As of 30 June 2026, Valeura reported net cash of US$316.5 million, with US$15.8 million classified as restricted cash. The absence of debt provides a positive aspect to the balance sheets, yet the nature of cash restrictions should be understood by investors.
Valeura intends to fund its adjusted operating and capital expenditures from ongoing cash flow while also considering funds from a revolving credit facility of up to US$75 million and a potential uncommitted accordion feature of up to US$250 million. Future obligations and market conditions can influence cash flow availability.
Operational highlights included drilling the longest horizontal lateral in the Gulf of Thailand and the first complex multi-lateral well. These achievements represent significant advancements in operational capabilities, but they also come with inherent technical and regulatory risks.
Valeura secured a formal reduction of the Manora field's decommissioning liability, leading to a 31% reduction in restricted cash. While this improves liquidity, it is essential to consider the cautions associated with future liabilities and compliance with regulatory expectations.
Investors can access Valeura Energy's complete quarterly reporting package, including unaudited financial statements and management's discussion and analysis, on SEDAR+ at www.sedarplus.ca and on the Company's website at www.valeuraenergy.com.