Touchstone Exploration, the Trinidad-focused oil and gas producer, reported net income of $2.34 million for the second quarter, reversing a $2.38 million loss in the first quarter of 2026.
Funds flow from operations rose to $7.13 million from $1.85 million in the prior quarter, driven by a $4.07 million increase in operating netback, which climbed 77% to $24.37 per barrel of oil equivalent (boe).
Petroleum and natural gas sales totalled $17.47 million, up 39% from $12.54 million, as crude oil realized pricing rose 19% to $70.13 per barrel and combined natural gas pricing climbed to $4.93 per thousand cubic feet from $3.00.
Production fell 5% to 4,433 boe/d from 4,657 boe/d, hit by planned third-party maintenance at Atlantic LNG that constrained gas output.
"Our second quarter financial and operating results demonstrate the strong underlying earning power of our assets when supported by favourable pricing and disciplined execution," said Paul R. Baay, president and chief executive.
Net debt fell 10% sequentially to $68.71 million, aided by $3.55 million in bank debt repayments and a $10.20 million integrated financing.
An $8.4 million debenture issued during the quarter was fully converted into equity after quarter-end through a subscription by Purebond for 89.77 million common shares.
David Mirzai, analyst at SP Angel, in a note said that the Cascadura booster compressor and scheduled 2H26 well interventions underpin an expected recovery in production and funds flow through the rest of 2026. In a note, the analyst highlighted that post‑quarter debt moves and a 10% sequential net debt reduction while flagging scheduled bank principal repayments of about $14.2m and roughly $11.1m of VAT receivables as execution and liquidity considerations.
Mirzai added that covenant coverage on the c.$52m of bank debt remains a watchpoint that will shape comfort around sustained cash‑flow improvements.
