- Valeura Energy (TSX:VLE) is profitable and has further growth in its sights through 2026 and beyond, making it an attractive name to harvest leverage on top of elevated oil prices
- Valeura Energy is an oil and gas exploration, development and production company active in Thailand and Turkey
- The oil and gas stock last traded at C$13.47, adding 77 per cent year-over-year and 2,441 per cent since 2021
Valeura Energy (TSX:VLE) is profitable and has further growth in its sights through 2026 and beyond, making it an attractive name to harvest leverage on top of elevated oil prices.
As a tenuous ceasefire between US-Israel and Iran opens the possibility for a peace deal, oil remains expensive, holding steady around US$100 per barrel, incentivizing producers in safer jurisdictions to step in and fill demand while Middle Eastern supply remains too risky to contend with.
Valeura presents itself as a high-potential partner, producing 22,300 barrels per day (bbls/d) in Q1 2026, in line with 2024 and 2025 averages, selling 1.394 million barrels in January and February alone at an average of US$66.20 per barrel. This represents US$92.3 million in revenue, marking a strong start to the year, given that the company pulled in US$594 million in revenue in all of 2025.
The company managed to sell more than half of its oil inventory of 1.225 million barrels since March 31, setting it up for a stronger Q2, complemented by ongoing drilling and the redevelopment of its Wassana field, which hosts gross proved and probable (2P) reserves of 19.7 million barrels as of December 31, 2025, and is expected to deliver increased production rates as soon as Q2 2027.
Given elevated oil prices, Valeura is also keen to expedite development across its portfolio, recently sanctioning a US$7 million expansion project at its Nong Yao A platform to add four wells, which will be ready to contribute to production by Q4 2026, as well as advancing discussions with contractors to expand drilling beyond the eight months of activity originally planned for 2026.
These development plans coincide with Valeura posting record-high 2P reserves of 57.8 million barrels in February, achieving an approximately 200 per cent 2P reserves replacement ratio for the third consecutive year, while maintaining net income profitability and ending Q1 with no debt and a considerable cash reserve of US$261.6 million, all of which speaks highly of the company’s ability to foster portfolio longevity while pursuing aggressive production as oil demand hits a generational peak.
Leadership commentary
“During Q1 2026, we delivered oil production exactly in line with our plan for the quarter. Much of that production contributed to an increase in oil held in inventory, meaning sales are deferred into Q2 2026, for which we stand to benefit from stronger oil prices,” Sean Guest, president and chief executive officer of Valeura Energy, said in Thursday’s news release.
“We are capitalizing on the opportunity to invest into our portfolio. In addition to ongoing drilling activity and our Wassana redevelopment project, we are pursuing options to accelerate various projects. Even after a heavy quarter of investing, the acquisition of the Manora Princess FSO, and revenue coming only from the first two months of the year, our balance sheet remains strong, with US$261.6 million in cash, and no debt as of 31 March 2026,” Guest concluded.
About Valeura Energy
Valeura Energy is an oil and natural gas exploration, development and production company active in Thailand and Turkey.
The oil and gas stock (TSX:VLE) last traded at C$13.47, adding 77 per cent year-over-year and 2,441 per cent since 2021.
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