Tenaz Energy (TNZ) Q2 2026 earnings summary

Executive summary

• Q2 2026 production averaged 17,125 boe/d, up 6% from Q1 2026 and more than double Q2 2025, reflecting strong operational execution, organic growth, and acquisitions.

• Funds flow from operations (FFO) reached $74.2 million, up 15% sequentially, with operating netback rising 20% to $69.05/boe.

• Net income of $89 million in Q2 2026, reversing a net loss of $111 million in Q1 2026, aided by a $94 million unrealized gain on derivatives.

• Capital expenditures decreased 37% to $58.2 million, and net debt was reduced by 3% to $378 million, now less than one times forecast 2026 FFO.

• Four (1.9 net) wells brought on production in Q2 2026, with significant drilling and maintenance activity in the Netherlands.

Financial highlights

• Petroleum and natural gas sales reached $160 million in Q2 2026, up from $133 million in Q1 2026.

• FFO was $74.2 million ($2.26 per basic share), up from $64.6 million in Q1 2026.

• Operating netback was $69.05/boe, up from $57.48/boe sequentially and 47% higher than Q2 2025.

• Capital investment was $58.2 million, resulting in free cash flow of $16 million for Q2 2026.

• Net debt at quarter-end was $378 million, down $11 million from Q1 2026.

Outlook and guidance

• Expect strong production growth in H2 2026, supported by new wells and completion of turnaround activities.

• Extensive long-term development and exploration inventory to support multi-year drilling campaigns.

• Hedge strategy covers 55% of 2026 production, providing cash flow stability amid commodity price volatility.

• 2026 capital program fully funded within FFO at current commodity strip; risk management program ensures base cash flow and high returns.