Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Touchstone Exploration ( (TSE:TXP) ) has shared an update.
Touchstone Exploration reported weaker 2025 operating results, with average production down 18% to 4,686 boe/d and petroleum and natural gas sales falling 20% to $45.8 million, as natural declines at Cascadura and legacy oil fields outweighed gains from the newly acquired Central Block. Operating netbacks and funds flow from operations contracted sharply despite higher net income driven largely by non‑cash tax recoveries and gains on asset sales, while capital spending shifted toward drilling and the company exited the non-core Fyzabad asset.
The group materially increased leverage to fund growth, adding a $30 million term loan, issuing a $12.5 million convertible debenture and raising $13.6 million in equity, which lifted year-end net debt to $72.9 million and left a $15.4 million working capital deficit. Its auditors flagged material uncertainty about going concern as management projects potential covenant breaches by end-2026, prompting a focus on boosting operational cash flow from recent drilling and the Central Block’s LNG-linked gas volumes to stabilise liquidity and support long-term development plans.
More about Touchstone Exploration
Touchstone Exploration Inc. is a Calgary-based oil and gas producer listed in Toronto and London, with operations focused on Trinidad and Tobago. The company’s portfolio is weighted to natural gas with associated liquids, and recent strategy has centred on expanding liquids-rich gas exposure, notably through the Central Block acquisition, while rationalising non-core, mature oil assets.
For an in-depth examination of TXP stock, go to TipRanks’ Overview page.