Valeura Energy's Q2 cash flow tripled to US$154M as oil sales jumped 56% to US$105.8/bbl. The producer maintains 2026 guidance, eyes Wassana acceleration and a credit facility for M&A.
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Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) reported Q2 2026 adjusted cash flow from operations of US$154.1 million, roughly three times the year-ago level, as higher oil sales volumes and a 56% jump in realised prices to US$105.8/bbl drove revenue to US$259.8 million.
The Gulf of Thailand-focused producer sold 2.454 million bbls during the quarter, well above its 2.030 million bbls of working-interest production. The drawdown reduced crude inventory that had built to an unusually high level at the start of the period, the company said.
Free cash flow reached US$104.7 million, and cash on hand rose to US$316.5 million as of June 30, including US$15.8 million in restricted cash. After the quarter closed, Valeura added a credit facility that can provide up to US$325 million via an uncommitted accordion feature.
"From this position of strength, we are primed and ready to pursue our growth ambitions, both through M&A and also by accelerating select organic investments," the company said in its earnings release.
Operating costs came in at US$58.3 million, or US$28.7/bbl produced, pushed higher by diesel prices tied to the rally in global crude benchmarks. Adjusted opex, a non-IFRS measure that adds back lease costs and inventory capitalisation, was US$58.7 million, or US$28.9/bbl.
Cash tax payments of US$19.2 million related mostly to Special Remuneratory Benefit obligations from 2025 production. Petroleum Income Tax accruals for the Nong Yao, Wassana and Manora fields were fully offset by tax loss carry-forwards. No further PITA or SRB cash payments are expected in 2026, the company said.
Production averaged 22,309 bbls/d across the Jasmine/Ban Yen, Nong Yao, Wassana and Manora fields, in line with guidance. A drilling campaign on Jasmine began in mid-June with three single-bore wells and one two-bore multilateral well. At Nong Yao, an eight-well campaign that ran through Q1 and Q2 included NYA-42ST1H, which set a Gulf of Thailand record for the longest horizontal lateral, and Valeura's first multilateral well in Thailand.
Construction of a new central processing platform for the Wassana field is running ahead of schedule, with mechanical completion now targeted for Oct. 1. The company is working on an option to expedite installation, which could bring first oil forward from the original timeline. It also plans to bring a new drilling rig on contract around Nov. 1 to drill three wells at Nong Yao.
At the Manora field, Valeura is preparing to drill an open-water exploration well in August to evaluate a potential oil accumulation within tie-back distance to the platform.
The company is awaiting government approval for a transfer of interest in Blocks G1/65 and G3/65, which would give it a 40% working interest. Valeura expects to pay PTTEP roughly US$25.3 million in back costs and a carried seismic programme. Technical work continues toward a final investment decision on a two-platform gas development in the Bussabong area of Block G3/65, with FID expected later this year.
In Turkey, farm-in partner Transatlantic Petroleum has equipped the Devepinar-1 well for a long-term test but is still working on downhole conditions to enable continuous gas flow. A two-year appraisal extension was granted for the West Thrace licence, now expiring June 2028. The Banarli licence was extended six months to December 2026 after a commitment well was completed as a gas discovery.
Valeura maintained the midpoint of its full-year 2026 production guidance but narrowed the range. It expects adjusted opex to land at the upper end of its guided range, reflecting diesel costs that have run above budget as global oil and refined product prices have risen. Capital projects remain on budget; any acceleration of the Wassana CPP installation would increase 2026 capex but pull some 2027 spending forward.
Management will host a webcast Thursday at 09:00 Calgary / 16:00 London / 22:00 Bangkok.
Valeura Energy Inc. is a Canadian public company engaged in exploration, development and production of petroleum and natural gas in Thailand and Türkiye.
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