.jpg)
1 hour ago
3
Article content
Record Sulphur Revenues Contribute to a NOI Increase of 87% Year Over Year, $39 Million of Debt Repayment, and Improved Financial Guidance
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Not For Distribution to United States News Wire Services or Dissemination in United States
Article content
Article content
CALGARY, Alberta, Aug. 11, 2026 (GLOBE NEWSWIRE) — Cavvy Energy Ltd. (“Cavvy” or the “Company”) (TSX:CVVY) is pleased to announce its second quarter 2026 financial and operating results. The Company produced 21,497 boe/d of hydrocarbons, 984 mt/d of sulphur, and generated Net Operating Income1 (“NOI”) of $49.6 million in the second quarter of 2026. Management’s discussion and analysis (“MD&A”) and unaudited interim condensed consolidated financial statements and notes for the quarter ended June 30, 2026 are available at www.cavvyenergy.com and on SEDAR+ at www.sedarplus.ca.
Article content
Article content
Q2 2026 HIGHLIGHTS
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
- Generated NOI of $49.6 million ($0.16 per basic and fully diluted share) and Operating Netback1 of $25.38/boe, up 87% and 127% respectively from Q2 2025.
- Funds Flow from Operations1 of $41.9 million ($0.14 per basic and fully diluted share), up 189% from Q2 2025.
- Produced 21,497 boe/d (80% natural gas) and 984 mt/d of sulphur during the quarter, down 18% and 13% respectively from Q2 2025 due to the scheduled Waterton gas plant downtime in June.
- Increased third-party raw gas processing volumes to 151.7 MMcf/d, up 27% compared to Q2 2025, resulting in a 26% increase in third-party gathering, processing and marketing revenue.
- Repaid $39.2 million of senior debt during the quarter, surpassing the previous record quarterly repayment of $37.3 million made in Q1 2026, reducing total debt to $86.8 million at June 30, 2026.
Article content
“I am extremely pleased with the successful outcomes of our business strategy to date. Sulphur pricing has continued its historic rise through 2026, remaining elevated as global demand for sulphur remains high and the conflict in the Middle East persists,” stated Darcy Reding, President and CEO.
Article content
Article content
“With Vancouver FOB sulphur prices reaching all-time highs during the second quarter, Cavvy generated funds flow of $41.9 million and repaid $39.2 million of debt, bringing total debt down to $86.8 million at June 30. This substantially beats our original 2026 year-end total debt guidance target of $110 to $125 million mid-way through the year. In addition, our third-party processing volumes and revenues continue to provide a strong foundation to Company cash flows, growing volumes by 27% and revenues by 26% in the quarter when compared to Q2 2025. In June, Cavvy extended the gas handling and processing agreement for a key customer at Caroline and Jumping Pound to accommodate volumes committed through 2027, representing an incremental $5 million annualized contribution to NOI.”
Article content
_______________
Article content
1 Refer to the “non-GAAP measures” in the Company’s MD&A.
Article content
Selected Q2 2026 Financial and Operating Highlights
Article content
| 2026 | 2025 | 2024 | ||||||||||||||
| ($ 000s unless otherwise noted) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||
| Production | ||||||||||||||||
| Natural gas (mcf/d) | 102,711 | 118,284 | 111,834 | 115,467 | 126,198 | 105,338 | 111,787 | 115,196 | ||||||||
| Condensate (bbl/d) | 1,937 | 2,302 | 2,065 | 2,258 | 2,507 | 2,454 | 2,149 | 2,191 | ||||||||
| NGLs (bbl/d) | 2,442 | 2,639 | 2,299 | 2,454 | 2,524 | 2,574 | 1,788 | 1,726 | ||||||||
| Sulphur (mt/d) | 984 | 1,089 | 989 | 1,120 | 1,128 | 1,076 | 968 | 1,444 | ||||||||
| Total production (boe/d) (1) | 21,497 | 24,655 | 23,003 | 23,956 | 26,064 | 22,584 | 22,568 | 23,116 | ||||||||
| Third-party volumes processed (mcf/d) (2) | 151,734 | 156,825 | 136,579 | 138,544 | 119,761 | 90,926 | 74,650 | 72,654 | ||||||||
| Financial | ||||||||||||||||
| Natural gas price ($/mcf) | ||||||||||||||||
| Realized before hedging (3) | 1.52 | 1.99 | 2.41 | 0.66 | 1.73 | 2.24 | 1.55 | 0.77 | ||||||||
| Realized after hedging (3) | 2.81 | 2.93 | 3.60 | 3.25 | 3.23 | 3.58 | 3.36 | 3.43 | ||||||||
| Benchmark (AECO) | 1.60 | 2.01 | 2.25 | 0.62 | 1.72 | 2.14 | 1.46 | 0.68 | ||||||||
| Condensate price ($/bbl) | ||||||||||||||||
| Realized before hedging (3) | 129.71 | 92.04 | 76.62 | 82.65 | 84.60 | 95.15 | 94.87 | 92.13 | ||||||||
| Realized after hedging (3) | 102.86 | 85.17 | 79.75 | 83.66 | 85.88 | 88.29 | 90.61 | 84.61 | ||||||||
| Benchmark (C5 at Edmonton) | 132.05 | 97.94 | 79.61 | 86.58 | 87.71 | 100.24 | 98.85 | 97.10 | ||||||||
| Sulphur price ($/mt) | ||||||||||||||||
| Realized before hedging (4) | 877.14 | 599.69 | 304.85 | 196.11 | 168.45 | 111.46 | 49.00 | 40.64 | ||||||||
| Realized after hedging (4) | 478.16 | 360.35 | 43.22 | 34.59 | 32.40 | 17.00 | 12.09 | 8.86 | ||||||||
| Benchmark USD (Vancouver FOB) | 963.43 | 508.40 | 414.47 | 268.42 | 271.75 | 184.42 | 135.78 | 97.49 | ||||||||
| Net income (loss) | 16,150 | 3,538 | (1,598) | (10,086) | 4,147 | 2,666 | (20,921) | 7,496 | ||||||||
| Net income (loss) $ per share, basic and diluted | 0.05 | 0.01 | (0.01) | (0.03) | 0.01 | 0.01 | (0.08) | 0.04 | ||||||||
| Net operating income (5) | 49,647 | 41,876 | 20,785 | 30,631 | 26,491 | 32,550 | 13,720 | 19,818 | ||||||||
| Cashflow provided by (used in) operating activities | 72,194 | 45,412 | 7,776 | 4,466 | 1,599 | 22,612 | (592) | 2,260 | ||||||||
| Funds flow from operations (5) | 41,867 | 32,168 | 13,518 | 12,898 | 14,502 | 21,707 | 3,341 | 8,234 | ||||||||
| Operating netback ($/boe) (5) | 25.38 | 18.87 | 9.82 | 13.90 | 11.17 | 16.02 | 6.61 | 9.31 | ||||||||
| Total assets | 560,421 | 537,868 | 539,136 | 536,274 | 553,216 | 571,470 | 612,423 | 615,040 | ||||||||
| Adjusted working capital deficit (5) | (46,289) | (39,490) | (19,769) | (10,631) | (20,144) | (30,540) | (29,777) | (42,658) | ||||||||
| Net debt (5) | (127,626) | (156,613) | (170,617) | (163,697) | (166,878) | (185,438) | (197,564) | (206,779) | ||||||||
| Capital expenditures (6) | 3,787 | 6,302 | 10,404 | 4,022 | 2,391 | 6,538 | 5,800 | 10,002 | ||||||||
English (US)