Questerre Energy (QEC) Q4 2025 earnings summary

Executive summary

• Completed acquisition of PX Energy, transforming into an oil shale operator with production, infrastructure, and technical expertise in Brazil.

• Consolidated ownership of Red Leaf Resources, securing full control of proprietary HCCO® technology for oil shale processing.

• Quebec asset value spun out into Series 2 Preferred Shares, with plans for a separate public listing.

• Fourth quarter production rose to 7,000 boe/d; annual revenue doubled to $77.1 million, with $45.4 million from Canada and $31.7 million from Brazil.

• Net loss for the year was $78.9 million, mainly due to impairment charges and higher expenses.

Financial highlights

• Petroleum and natural gas revenue increased to $77.1 million from $36.9 million year-over-year.

• Adjusted funds flow from operations was $15.7 million, up from $14.6 million last year.

• Net loss widened to $78.9 million from $7.3 million, driven by $49.8 million in impairment expenses.

• Working capital deficit of $52 million at year-end, compared to a surplus of $23 million last year.

• Total assets increased to $395.3 million from $170.7 million, reflecting acquisitions.

Outlook and guidance

• Near-term priorities: stabilize and grow cash flow from Brazil, prove HCCO® technology at scale, and pursue legal/political pathways in Quebec.

• Anticipates production volumes to decline nominally in 2026 with no new wells at Kakwa, offset by stable Brazil output.

• Plans to restructure PX Energy into a sustainable, cash-flowing business.