Petroreconcavo S A : Dados Econômico-Financeiros

EARNINGS RELEASE

Second Quarter 2023

2Q23 Results Conference Call

Friday, august 11th, 2023

11h00 (Brasilia Time)

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2Q23 Highlights

Message from the Administration

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Asset Portfolio and Reserves

Operational Performance

Consolidated Financial Performance

Other balance sheet highlights

HS&E and ESG

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Mata de São João, August 10, 2023. (PetroReconcavo S.A. ("PetroReconcavo" or "Company") (B3: RECV3) today announces its results for the second quarter of 2023(2Q23). The following information is presented in a consolidated manner, in thousands of Brazilian Reais (R$), in accordance with International Financial Statements Standards (IFRS) and with the accounting standards adopted in Brazil, unless otherwise stated.

2Q23 Highlights

• Average gross working interest production was 26.0 thousand barrels of oil equivalent per day (BOEPD) in 2Q23, representing a 7% growth vs. the 1Q23, and 28.5 thousand BOEPD in July;
• Net revenue of R$658 million in 2Q23, a drop of 8% when compared to 1Q23, impacted by the 4% negative variation in the Brent Oil price, 5% depreciation of the U.S. dollar x the Brazilian real and 33% reduction in the sales volume of natural gas in the Potiguar Asset, partially offset by the 12% increase in the oil production in both assets;
• EBITDA of R$ 319 million in 2Q23, a 5% reduction vs. 1Q23;
• Net income of R$ 178 million in 2Q23, a 11% reduction when compared to 1Q23;
• In May, there was the payment of dividends to shareholders in relation to 2022 in the amount of R$ 130 million. Profit distribution for 2022 totaled R$ 310 million;
• Signing of contracts with 3R Petroleum as a result of the Potiguar Cluster transaction closing, among which the new contractual instruments for the sale of 100% of
  the oil production from the Potiguar Asset under more beneficial conditions than the previous contracts signed with Petrobras, as well as the signing of contractual assignment instruments for the use of essential infrastructures for the outflow and processing of natural gas from the Potiguar Asset, and for the commercialization of the C5+ stream;
• After the closing of the quarter, signing of a contract for the supply of natural gas with Companhia Pernambucana de Gás - Copergás valid for 10 years, with a total estimated value of R$ 1.6 billion (Molecule Portion, not including pass through of transportation costs provided in the Contract);
• As a subsequent event, signing and draw of a syndicated loan agreement, in the amount of US$ 60 million, with a 36-month maturity and an interest rate corresponding to the Term SOFR reference rate for 3 months, plus 3.80% per year;
• Disclosure of the second sustainability report base year 2022, according to the Global Reporting Initiative (GRI) methodology.

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2Q23 Highlights

Earnings Release | 20 Quarter 2023

Key indicators (in thousands of Brazilian Reais (R$), unless otherwise stated)

Net Revenue

Net income in the period

Net margin1

EBITDA2

EBITDA Margin3

Hedge adjusted EBITDA4

Adjusted EBITDA Margin5

Net debt6

Net debt/ EBITDA last 12 months7 Average gross production (BOEPD)8 Gross production (in BOE)8 Average lifting cost per BOE in R$9 Average foreign exchange rate R$/US$10 Average lifting cost per BOE in US$11 Average Brent Oil Spot price ($/bbl)12 Average oil realization price ($/bbl)13

2Q23	1Q23	∆%	2Q22	∆%	1H23	1H22	∆%
658,314	719,212	-8%	691,009	-5%	1,377,526	1,394,485	-1%
177,641	199,513	-11%	131,031	36%	377,154	532,869	-29%
27.0%	27.7%	-0.8 p.p.	19.0%	8.0 p.p.	27.4%	38.2%	-10.8 p.p.
319,238	334,836	-5%	379,871	-16%	654,074	794,610	-18%
48.5%	46.6%	1.9 p.p.	55.0%	-6.5 p.p.	47.5%	57.0%	-9.5 p.p.
379,525	406,304	-7%	510,232	-26%	785,829	1,010,201	-22%
52.8%	51.4%	1.4 p.p.	62.1%	-9.3 p.p.	52.1%	62.7%	-10.7 p.p.
781,626	711,234	10%	6,355	n.m.	781,626	6,355	n.m.
0.53 x	0.47 x	0.07x	0.01 x	0.52 x	0.53 x	0.01 x	0.52x
26,045	24.415	7%	20,528	27%	25,235	19,994	26%
2,370,095	2,197,378	8%	1,867,964	27%	4,567,473	3,618,914	26%
R$ 67.03	R$ 67.11	0%	R$ 68.29	-2%	R$ 67.07	R$ 66.40	1%
R$ 4.95	R$ 5.19	-5%	R$ 4.92	1%	R$ 5.07	R$ 5.08	0%
$13.54	$12.92	5%	$13.88	-2%	$13.22	$13.08	1%
$78.39	$81.27	-4%	$111.40	-30%	$79.83	$106.40	-25%
$61.71	$62.90	-2%	$77.06	-20%	$62.20	$77.11	-19%

Notes:

1. Net margin corresponds to net income (loss) for the period divided by the net revenue for the period.
2. EBITDA is calculated in accordance with the Brazilian Securities and Exchange Commission ("CVM") instruction 527, of October 4, 2012, as amended ("CVM Instruction 527") and consists of adjusted net income (loss) (plus) net financial income, income tax and social contribution on net income and depreciation, amortization and depletion ("EBITDA").
   EBITDA is not an accounting measure recognized by the Accounting Practices adopted in Brazil ("BRGAAP") or by International Financial Reporting Standards (IFRS) issued by the
   International Accounting Standards Board ("IASB"), it is not audited or reviewed by the Company's independent auditors, and does not represent cash flow for the period presented and should not be considered as substitute for net profit (loss) as indicators of the Company's operating performance and, therefore, is not a substitute for cash flow, indicator
   or liquidity or as a basis for the distribution of dividends. The EBITDA has no standardized meaning and our definition of EBITDA may not be comparable to that used by other companies.
3. EBITDA margin corresponds to EBITDA for the period divided by net revenue for the period. The EBITDA Margin is not a measure of financial performance according to the
   Accounting Practices Adopted in Brazil or the International Financial Reporting Standards (IFRS) nor should it be considered in isolation, as a measure of operating performance, or an alternative to operating cash flows as a measure of liquidity or as an indicator of financial returns.
4. The hedge adjusted EBITDA is calculated from the EBITDA, excluding the effects of the derivative financial instruments settled in the period. The hedge adjusted EBITDA is not a measure of financial performance according to the Accounting Practices Adopted in Brazil or the International Financial Reporting Standards (IFRS) nor should it be considered separately, or as an alternative to net profit, or as a measure of operating performance, or an alternative to operating cash flows as a measure of liquidity. Other companies may calculate the hedge adjusted EBITDA in a different manner to that used by the Company. The adjusted EBITDA is used by the Company as an additional measure of its operating performance.
5. The adjusted EBITDA margin corresponds to the EBITDA adjusted by the hedge of the period divided by net income, excluding the effects of the results of the derivative financial instruments settled in the period. Adjusted EBITDA margin is not a measure of financial performance according to the Accounting Practices Adopted in Brazil or the International Financial Reporting Standards (IFRS) nor should it be considered separately, or as an alternative to net profit, or as a measure of operating performance, or an alternative to operating cash flows as a measure of liquidity or as an indicator of financial returns.
6. Represents total bank indebtedness, represented by loan and financing balances in current and noncurrent liabilities, summed to the amounts payable from acquisition of assets, minus cash balances and cash equivalents and financial investments present in current and noncurrent assets.
7. Represents the net debt balance at the end of the year divided by the accrued EBITDA of the last twelve months in each period. The net debt/EBITDA is not a measure of financial performance according to the Accounting Practices Adopted in Brazil ("BRGAAP") or the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), is not audited or reviewed by independent auditors of the Company. Net debt/EBITDA has no standardized meaning and other companies may calculate in a different manner to that used by the Company.
8. Volumes of natural gas were converted considering that 1,000 m³ of gas is equivalent to 6.2897 barrels of oil equivalent (BOE).

Index

1. Represents the total costs of the services provided and sales, excluding costs with acquisition, processing and transportation of gas, royalties, depreciation, amortization and depletion, divided by total gross production in BOE in the period.
2. The average foreign exchange rate for the period corresponds to the average foreign exchange rate on each business day in the periods presented, disclosed by the Brazilian Central Bank (Banco Central do Brasil).
3. Represents the total costs of the services provided and sales, excluding costs with acquisition, processing and transportation of gas, royalties, depreciation, amortization and depletion, divided by total gross production in BOE in the period, divided by the average foreign exchange rate of the period.
4. Brent is quoted in dollar per barrel. Source: U.S. Energy Information Administration (EIA). .
5. Represents net income from oil, discounting the effects of derivative instruments, divided by total gross production in BOE in the period, divided by average foreign exchange rate in the period.

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Message from

Management

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