PRIO3 after 2Q26: Record production and US$879m EBITDA as Wahoo scales — and export tax bites the price bridge
How to read PRIO's second-quarter package — 172,000 bpd output (+72% YoY), 15.3 mn bbl sales, adjusted EBITDA US$879m at a 72% margin, lifting cost US$8.90/bbl, Brazil's 12% crude export tax, net debt US$4.05bn at 1.5x leverage, and what Wahoo and Peregrino contributed.
PRIO3 after 2Q26: Record production and US$879m EBITDA as Wahoo scales — and export tax bites the price bridge
In early August 2026, PRIO S.A. (B3: PRIO3) reported 2Q26 results (reference 30 June 2026). The quarter set company records on three operating lines management highlighted: average production of 172,000 barrels per day, oil sales of 15.3 million barrels, and adjusted EBITDA of about US$ 879 million — up 218% year on year in the last metric.
The story is not only higher Brent (benchmark average US$ 94.60/bbl in the quarter, per the release narrative). Wahoo reached phased production on the Frade FPSO, Peregrino reflects PRIO's 80% stake after the late-2025 acquisition, and lifting cost fell to US$ 8.90/bbl (−36% YoY). At the same time, Brazil's 12% crude export tax (effective 12 March 2026) and a wider commercial loss show why revenue and EBITDA can surge while the path from oil price to net income still has friction.
What the earnings package shows
Figures below follow PRIO's 2Q26 earnings release and investor materials (US dollars where the company reports operationally; statutory accounts also filed in reais):
| Metric (2Q26) | Result | vs 2Q25 / note |
|---|---|---|
| Average production | 172,000 bpd | +72% YoY; +11% vs 1Q26 |
| Oil sales | 15.3 mn bbl | Record; +87% YoY |
| Total revenue | US$ 1.44 bn | +184% |
| Net revenue | US$ 1.22 bn | +160% |
| Adjusted EBITDA (ex IFRS 16) | US$ 878.6 m | Margin 72% (59% in 2Q25) |
| Adjusted net income (ex IFRS 16) | US$ 413.3 m | +169% |
| Statutory net income | R$ 1.96 bn | +188% YoY |
| Lifting cost | US$ 8.90/bbl | −36% YoY; −5% vs 1Q26 |
| Realized FOB price | US$ 87.69/bbl | Discount to Brent US$ 6.91 (vs US$ 8.15 in 1Q26) |
| Net debt (30 Jun) | US$ 4.05 bn | Net leverage 1.5× adj. EBITDA (2.0× in 1Q26) |
First-half 2026 adjusted EBITDA exceeded US$ 1.73 billion on management's tally — useful context because PRIO's year is increasingly shaped by field ramps rather than a single steady-state asset.
Volume bridge — Wahoo, Valente, and Peregrino
Production growth was concentrated in two clusters:
| Area | 2Q26 avg (PRIO share) | YoY | Revenue share (approx.) |
|---|---|---|---|
| Valente (Frade + Wahoo) | 61,100 bpd | +165% | 35.2% |
| Peregrino | 74,500 bpd | +90% | 37.5% |
| Albacora Leste | 22,100 bpd | −18% | (balance) |
Wahoo was the structural change: PRIO completed the first development phase during the quarter, tying back wells to Frade and stepping output through the period (management cited roughly 20k → 30k → 40k bpd as additional wells came online). It was the first field development executed entirely by PRIO.
Peregrino benefited from the larger economic interest (80% after buying an additional 40% from Equinor in November 2025). Operations were not linear: an ESP failure at well C-26 weighed on sequential output, while well A-15 (Isolado) returned gross field production above 100,000 bpd late in the quarter. Management also flagged completion of repairs on the gas-import pipeline, with gas-fired generation intended to replace diesel once recommissioned — a cost and emissions lever for later quarters.
Albacora Leste declined after hydrate issues on ABL-68; operations were restored in early July, so part of the weakness is timing rather than a permanent loss of capacity.
Price, tax, and the commercial line
Higher Brent helped, but not every dollar reached EBITDA:
- Benchmark Brent averaged US$ 94.60/bbl; FOB realization was US$ 87.69/bbl.
- Domestic and export sales taxes were US$ 114 million in the quarter versus US$ 7 million a year earlier, reflecting the 12% export tax on crude exports from 12 March 2026 (statutory accounts also recognized roughly R$ 562.9 million related to the export tax, per the release narrative).
- The commercial result was a US$ 103.7 million loss (versus US$ 30.6 million in 2Q25), consistent with higher volumes delivered under arrangements where PRIO hands crude to counterparties.
On the earnings call, management also noted a jump in royalties and special participation as the reference price used for those charges rose (they cited an average reference price around US$ 60/bbl in 1Q26 versus about US$ 89/bbl in 2Q26). That is a reminder that Brazilian upstream cash economics track official reference mechanics, not only screen Brent.
Costs, EBITDA margin, and below-EBITDA lines
Lifting cost at US$ 8.90/bbl reflects dilution from Wahoo volumes and operational work at Peregrino, partially offset by one-off operational downtime (for example, a gas-lift line failure at Frade in May 2026, repaired in July).
Adjusted EBITDA margin widened to 72% from 59% — a combination of volume, cost per barrel, and price. Reported/adjusted net income still faces:
| Below-EBITDA item (2Q26) | Direction |
|---|---|
| Financial result | US$ 120 m loss (vs US$ 55 m loss YoY) — interest and hedging |
| Commercial result | US$ 103.7 m loss — volume-linked delivery structures |
Readers comparing PRIO to integrated majors should separate operating leverage to oil from financing and commercial policy; the quarter improved the former while the latter remained a drag.
Balance sheet — leverage down despite buybacks and capex
PRIO ended June with net debt of US$ 4.05 billion, down US$ 326 million from 1Q26, and net leverage of 1.5× adjusted EBITDA (from 2.0×). That reduction came alongside:
- Investment in Wahoo wells and Peregrino workovers/new ties;
- Share repurchases of 9.3 million shares in the quarter;
- Debt actions including repayment of the remaining US$ 168.7 million on a 2021 bond and refinancing US$ 354.1 million of bilateral debt (2027 maturities extended to 2028–2029).
Average cost of debt was 6.4% with 2.7 years average duration — short compared with the field inventory, so refinancing and rate paths matter for equity holders even when oil is strong.
After quarter-end (context only)
Management reported July 2026 production at 196,260 boepd, up 10.2% from June — the highest monthly average of 2026 in their disclosure. That is operational momentum, not part of the 30 June accounting period, but it explains why the market debate quickly shifted from "did 2Q26 beat?" to "can PRIO hold plateau into year-end?"
Limits of this reading
- Adjusted EBITDA and net income exclude items PRIO management deems non-recurring; always reconcile to statutory CVM filings for tax and dividend mechanics in reais.
- USD operating KPIs and BRL statutory profit are not interchangeable without FX and accounting bridges.
- Export tax and royalties/special participation can move faster than Brent when reference prices re-rate.
- July production and well schedules (Frade, Peregrino) are forward-looking; delays or downtime would change the volume story.
- Record EBITDA in a high-price quarter does not, by itself, imply the same margin at US$ 60/bbl oil — management has publicly framed leverage targets with oil-price scenarios on the call.
Where to view in the explorer
Sources
- PRIO S.A., 04/08/2026 — 2Q26 earnings release (production, sales, revenue, adjusted EBITDA, lifting cost, taxes, debt, buybacks)
- PRIO S.A. earnings call transcript, 05/08/2026 — royalties/special participation reference price, H1 2026 EBITDA, leverage commentary
- Brazil Stock Guide, 04/08/2026 — consolidated summary of Wahoo/Peregrino/Albacora events and July production
- PRIO3 on the explorer — CVM filings and company page
Disclaimer
This article is for informational and educational purposes only. It is not investment advice. Adjusted versus statutory figures, USD operational metrics versus BRL filings, and post-quarter production updates are different layers; when in doubt, official CVM documents prevail. Refer to those filings and, if needed, a licensed professional.
Work with filings via API
Need programmatic access to DFP, ITR, FRE and more? Use the apicvm API.