Overview

* Touchstone Q3 petroleum and natural gas sales down 4% yr/yr

* Company reports Q3 net loss of $2.06 mln, driven by lower funds flow and increased expenses

* Company issued convertible debenture to support Cascadura development activities

Outlook

* Company revises 2025 average daily production to 4,700 boe/d, down 6% from prior guidance

* Touchstone expects 2025 funds flow from operations to be $4 mln, down from $6 mln

* Company anticipates 2025 net debt of $69 mln, up 6% from previous forecast

Result Drivers

* CASCADE-5 WELL - Initial production rates from Cascadura-5 below expectations, impacting overall output

* CAPITAL INVESTMENTS - Focused on Cascadura drilling and compression equipment procurement

* PRODUCTION DECLINE - Q3 production affected by increased operating expenses and lower sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $12.70

Petroleu mln

m and

Natural

gas

sales

Q3 Net -$2.06

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for Touchstone Exploration Inc ( PBEGF ) is C$0.50, about 57% above its November 12 closing price of C$0.22

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)