PetroTal Reports Strong Q2 2024 Results and Plans Expansion

In the recent Q2 2024 earnings call, PetroTal (ticker: PTAL), the largest oil producer in Peru, shared substantial financial and operational achievements. The company reported an unprecedented net operating income of $80 million and a net income of $35.4 million. CEO Manolo Zuniga and CFO Camilo McAllister highlighted average sales and production volumes of 18,050 barrels and 18,290 barrels of oil per day, respectively.

Despite a dip in global oil prices, PetroTal maintains a positive financial outlook, projecting an EBITDA range of $200 million to $240 million for the entirety of 2024. The company emphasized its robust balance sheet, boasting $95.9 million in total cash, along with a commitment to returning value to shareholders through $89 million in dividends and share repurchases.

### Key Takeaways:
– PetroTal achieved record net operating income for Q2 2024 and is set to meet its annual EBITDA guidance.
– Average sales and production quantities exceeded 18,000 barrels of oil daily.
– The company is expanding its Bretaña oil field and pursuing the acquisition of CEPSA Block 131.
– With no long-term debt, PetroTal maintains a strong balance sheet and continues its shareholder return initiatives, though the buyback program is on hold for now.
– PetroTal is actively exploring mergers and acquisitions and plans to enhance its transportation capacity.

### Company Outlook:
PetroTal anticipates reaching an evacuation capacity of 50,000 barrels per day by 2025, though unit costs may rise in the latter half of 2024 due to typical seasonal impacts on sales volumes.

### Highlights:
– Free funds flow decreased to $36.3 million, attributed to a larger capital program.
– The buyback initiative has been paused to ensure sustainable capital expenditures and dividends.
– The Bretaña oil field has been expanded, now featuring 20 oil wells and four water disposal wells.
– Production growth is planned, with three additional production wells included in the 2024 budget.
– Discussions are ongoing with Petroperú regarding transportation operations.

### Misses:
– Seismic work on Block 95 has been postponed until next year, pending permits.

### Q&A Highlights:
During the Q&A session, the executives discussed ongoing engagement with Petroperú regarding transportation optimization and highlighted future production potential in Block 95 and Block 131. They noted significant capital expenditures, focusing on expanding production capabilities while maintaining careful financial management.

### Closing Remarks:
PetroTal’s Q2 2024 results reveal the company’s resilience despite fluctuating oil prices, alongside a clear commitment to growth and shareholder value. With ambitious plans for production expansion and strategic acquisitions, PetroTal is positioning itself for future success in the oil sector while being responsive to the environmental challenges surrounding its operations.