Questerre Energy (QEC) investor relations material

Executive summary

• Completed major acquisitions and asset sales, including Kakwa Central for $23.5 million, reallocating capital to higher-potential assets and expanding operations in Brazil, now the main operation with 900 employees and contractors.

• Achieved net income of $27.8 million for Q2 2026, driven by asset sales and stable production, with record profit at PX Energy and positive cash flow for the second consecutive quarter.

• Advanced proprietary oil shale refining technology, achieving a significant commercial-scale HCCO test in Brazil at a fraction of projected cost.

• Listed preferred shares tied to Quebec assets on Euronext Growth, providing economic rights under settlement or development scenarios.

• Actively pursuing business and political solutions for Quebec gas assets amid favorable policy shifts and legal breakthroughs.

Financial highlights

• Revenue for Q2 2026 was $50.1 million, with year-to-date revenue at $93.1 million; adjusted funds flow from operations was $18.3 million, and net income reached $27.8 million.

• Working capital deficit reduced to $19.1 million at June 30, 2026, from $49.6 million at March 31, 2026, with cash and equivalents of $44.2 million.

• Average production was 5,700 boe/d in Q2 2026, with Brazil accounting for about 70% of volumes.

• Net income recognized from asset sales, sold above book value, improving balance sheet flexibility.

• Capital expenditures for H1 2026 were $4.0 million, primarily in Brazil.

Outlook and guidance

• Targeting EBITDA cash flow from PX of over $30 million per year, with volume increases expected post-turnaround and technology upgrades.

• Plant turnaround in Brazil expected to restore 30% lost production, with payout of lost revenue and costs in 3–6 months.

• Extended HCCO test planned to establish commercial parameters at Petrosix refinery, aiming to reduce internal fuel usage by up to 15%.

• Proceeds from asset sales to fund future development at Kakwa North and Saskatchewan.

• Quebec project positioned for rapid production start pending regulatory approval, with a hearing date targeted for 2027.