Questerre reports third quarter 2026 results

Michael Binnion, President and Chief Executive Officer of Questerre

“One year ago, we acquired PX Energy to build a business that generates free cash flow and to prove our Homogeneous Charged Continuous Oxidation (“HCCO”) technology. We are on track for $11 million in cost savings this year and successfully tested HCCO at commercial scale. In the third quarter, a furnace failure shut the plant from late July until August 18. The team completed the repairs on schedule and on budget with no recordable safety incidents, and the retort is back above 90% efficiency.”

Michael Binnion, President and Chief Executive Officer of Questerre

“Since then, a minor gas release and the failure of a silo in October have shown how much maintenance the previous owners of the facility deferred. We are sharpening our focus on maintenance and corrective action. Next year’s scheduled turnaround will go further than a routine overhaul, with the aim of running the plant longer between turnarounds. A solid base is also a financial one. PX Energy’s bonds are ring-fenced: Questerre has not guaranteed them and is not required to repay them. But ring-fenced is not the same as right-sized. With a larger turnaround and a prudent contingency for unexpected maintenance next year, we believe PX Energy’s debt should be restructured to fit its cash flow and investment cycle. We will support a restructuring only if we believe it is in the interests of Questerre’s shareholders.”

Michael Binnion, President and Chief Executive Officer of Questerre

“Restructuring PX Energy matters well beyond next year. Twenty years ago, shale gas and tight oil were thought too costly to produce, until technology changed that and revolutionized North American production. We believe oil shale could be next, and PX Energy is where we are proving the technology. We plan to run an extended test of HCCO in 2027.”

Michael Binnion, President and Chief Executive Officer of Questerre

“In Quebec, the debate on local natural gas has reopened as the province weighs how to meet its energy needs while imported and renewable gas become more expensive. Public opinion is moving too. In an October poll by Ipsos for the Montreal Economic Institute, more than two-thirds of Quebecers supported developing the province’s own natural gas. During the quarter, the Government approved our carbon storage pilot near Bécancour. We also signed a mediation protocol with the Attorney General of Quebec and the Ministry of the Economy, Innovation and Energy. In Nova Scotia, we were the successful bidder in the province’s first bid round and are negotiating a Petroleum Exploration Agreement for lands in the onshore Cumberland Basin. In Western Canada, we are building our conventional production base with a four-well drilling program.”