By Brazil Stock Guide – Brava Energia (B3: BRAV3) is entering 2026 with an unusual balance of discipline and expansion. After cutting its net leverage to 2.3x EBITDA in the third quarter — down from 3.4x at the start of the year — the company is now preparing for a new investment cycle led by offshore campaigns at Atlanta and Papa-Terra, while keeping onshore spending at minimum levels.
Lean onshore, expanding offshore
For next year, Brava plans a low onshore CAPEX, with no new development wells to be drilled. The focus will remain on asset integrity, regulatory compliance, and enhanced oil recovery projects, such as polymer injection and water flooding in Salina Cristal and other mature fields. These initiatives are part of a broader efficiency program that has already reduced lifting costs to US$13.3 per barrel, the lowest since the company’s merger phase.
Growth capex, not maintenance
While total investments will rise in 2026, the company stresses that this is growth-oriented spending — not maintenance. The expansion phase includes the second stage of the Atlanta project, already receiving about US$46 million this year, and the upcoming offshore drilling campaign that integrates both Papa-Terra and Atlanta assets. Brava notes that much of the groundwork from Atlanta’s first phase enables a faster rollout of the new wells, accelerating production gains expected from 2026 onward.
Cash generation remains the driver
Even with higher investments, management reaffirmed its deleveraging plan based primarily on free cash flow generation, not asset sales. The company ended the third quarter with US$1.09 billion in cash and US$96 million in free cash flow, maintaining one of the strongest liquidity positions among Brazilian independents. CEO Décio Oddone reiterated that portfolio reviews are ongoing, but no significant divestments are planned at this stage — signaling confidence in organic growth and cash discipline.
Positioned for a resilient 2026
With offshore production at record levels and onshore operations stabilized, Brava enters 2026 in a position to grow while strengthening its balance sheet. Oddone summed it up: the next year will not bring a sharp drop in leverage, but it will mark a transition toward “cash-backed expansion” — setting the stage for stronger returns in 2027.
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