Lycos Energy Inc. Announces Second Quarter Financial Results and Operations Update

Core Insights - Lycos Energy Inc. reported its financial and operational results for Q2 and the first half of 2025, highlighting significant declines in sales and adjusted funds flow from operations compared to the previous year [1][2][6] Financial Performance - Total petroleum and natural gas sales for Q2 2025 were $23.1 million, a decrease of 35% from $35.6 million in Q2 2024 [2] - Adjusted funds flow from operations fell by 47% to $9.6 million in Q2 2025, down from $18.0 million in Q2 2024 [2] - Net income for Q2 2025 was a loss of $54.6 million, compared to a profit of $10.2 million in Q2 2024, marking a 633% decline [2][5] - Average daily production was 3,940 boe/d, a decrease of 15% from 4,648 boe/d in Q2 2024 [2][12] Operational Highlights - The company completed the disposition of non-core assets in Saskatchewan for $2.5 million, which is expected to streamline operations and reduce liabilities [7][10] - The average realized price for crude oil in Q2 2025 was $66.77 per barrel, down 21% from $84.85 per barrel in Q2 2024 [2] - Natural gas realized prices increased significantly by 552% to $1.37 per mcf in Q2 2025, compared to $0.21 per mcf in Q2 2024 [2] Capital Expenditures and Debt - Capital expenditures for exploration and development in Q2 2025 were $5.4 million, a 75% decrease from $21.3 million in Q2 2024 [2] - The company reported an exit net debt of $19.5 million, representing a ratio of 0.5X annualized net debt to adjusted funds flow from operations [12] Strategic Outlook - Lycos plans to resume its capital expenditures program in Q3 2025, focusing on high-return areas in the Bonnyville region [10] - The company retains rights to drill on undeveloped lands acquired through the recent asset disposition, which is expected to enhance future operational flexibility [8][9]