PRIO Straight from the Call

Research evidence excerpt

J P M O R G A N

Latin America Equity Research

05 August 2026

PRIO

Straight from the Call

Overweight

PRIO3.SA, PRIO3 BZ

Price (04 Aug 26):R$58.45

Latam Oil, Gas & Petrochemicals

PRIO just hosted its 2Q26 conference call. Overall, discussions centered on

portfolio execution, continued deleveraging, shareholder remuneration, and

upcoming milestones across the company's development projects. For more details

on the reported figures, refer to PRIO: 2Q26 Results: Strong FCF Anchors a Solid

Quarter as Expected. See details below.

Milene Clifford Carvalho AC

Rodolfo Angele, CFA

Operational update: Production was supported by the continued rampup of Wahoo, despite lower operational efficiency across most assets.

(a) Cluster Valente (Frade + Wahoo): Operational efficiency remained

high at 90.9%, but below the 98.6% reported in 1Q26. As previously

disclosed, Frade was impacted by a gas lift line failure in early May, which

temporarily interrupted production from three wells. The replacement was

completed in July and production has since normalized. The main highlight

for the cluster was the continued ramp-up of Wahoo, with the third and

fourth wells brought onstream in April and June, respectively.

Management also highlighted that the fourth well connection was delayed

by vessel availability issues, but was ultimately completed using PRIO's

own vessel. Looking ahead, management highlighted positive results from

two reservoir data acquisition (RDA) wells at Frade, supporting the drilling

of two additional production wells in 2H26.

(b) Bravo Cluster (Polvo + Tubarão Martelo): Operational efficiency

declined to 95.2% (from 98.3% in 1Q26). Production during the quarter

was impacted by the temporary shutdown of well OGX-44HP following a

BCS failure at the end of March, with the workover completed in May.

Management noted that production resumed in mid-May following the

completion of the intervention, after temporarily relocating the rig that had

been operating at Frade.

(c) Albacora Leste: Operational efficiency declined to 85.9% (from

95.4% in 1Q26). Performance was impacted by the shutdown of well

ABL-68 following hydrate formation in April, with operations normalized

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