Touchstone Exploration swung to a profit in Q2 as Cascadura gas output jumped 17% year-over-year, with operating netbacks improving to $28.50 per boe. Management sees further gains from a new well.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Touchstone Exploration swung to a profit in the second quarter on the back of higher natural gas production from its Cascadura field in Trinidad.
The Calgary-based producer reported net income of $4.7 million, or $0.02 per share, compared with a loss of $1.2 million a year earlier. Revenue rose 47% to $17.8 million as daily output averaged 11,500 barrels of oil equivalent per day, up from 9,800 boe/d in the same period of 2025.
Cascadura, the company's flagship onshore Trinidad asset, accounted for most of the increase. The field produced 7,800 boe/d in the quarter, roughly 68% of total volumes. Touchstone has been ramping Cascadura since it came online in late 2024, and management said the field is still climbing toward plateau rates.
Operating netbacks improved to $28.50 per boe from $24.10 a year earlier, helped by higher gas prices under the company's fixed-price sales agreement with Trinidad's National Gas Company. That contract locks in a portion of Cascadura's gas at a premium to the regional benchmark through 2029.
The company also trimmed capital spending, with first-half capex of $22 million versus $31 million in the same stretch of 2025. Touchstone expects full-year spending at the low end of its $45 million to $55 million guidance range.
Cash flow from operations came in at $12.3 million, up from $8.1 million in the prior-year quarter. The company ended June with $8.5 million in cash and $14 million drawn on its $30 million credit facility.
Production guidance for the full year remains at 11,000 to 12,000 boe/d, with the second half expected to benefit from the completion of a second Cascadura well that began flowing in late June.
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