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

Core Insights - Lycos Energy Inc. reported a significant decline in financial performance for Q3 2025, with total petroleum and natural gas sales decreasing by 43% year-over-year to CAD 19.4 million, and adjusted funds flow from operations down 44% to CAD 9.6 million [2][4][8] - The company has focused on operational efficiency and cost reduction, resulting in a 30% decrease in net operating expenses per barrel of oil equivalent (boe) [8][6] - Following a recent asset divestiture, Lycos plans to return CAD 47.9 million to shareholders as a capital return, amounting to CAD 0.90 per common share [5][7] Financial Performance - Total petroleum and natural gas sales for Q3 2025 were CAD 19,379 thousand, down from CAD 33,986 thousand in Q3 2024, marking a 43% decrease [2] - Adjusted funds flow from operations for Q3 2025 was CAD 9,558 thousand, compared to CAD 17,005 thousand in Q3 2024, a 44% decline [2] - Net income for Q3 2025 was CAD 2,465 thousand, down 33% from CAD 3,706 thousand in the same quarter of the previous year [2] Production and Costs - Average daily production in Q3 2025 was 2,958 boe/d, a 39% decrease from 4,836 boe/d in Q3 2024 [2][8] - The realized price for crude oil was CAD 72.24 per barrel, down 7% from CAD 77.96 per barrel in Q3 2024 [2] - Net operating expenses per boe decreased by 30% to CAD 15.48 in Q3 2025 from CAD 22.08 in Q3 2024 [8] Strategic Initiatives - The company has paused exploration and development activities to prioritize operational efficiency and has implemented initiatives to improve logistics and streamline field execution [6][8] - Following the divestiture of non-core assets, Lycos is focusing on its retained core areas and plans to resume capital activities in January 2026 [7][6] - The company reported an exit net debt of CAD 11.8 million, representing a low ratio of 0.3 times annualized net debt to adjusted funds flow from operations [8][7]