Journey Posts $25.9 Million of Net Income and $71.0 Million of Adjusted Funds Flow for 2025

Core Viewpoint - Journey Energy Inc. reported strong financial and operational results for the year ending December 31, 2025, highlighting a significant increase in net income and adjusted funds flow, despite a slight decline in sales revenue compared to the previous year [1][2]. Financial Highlights - Sales revenue for Q4 2025 was $45.7 million, down 4% from $47.5 million in Q4 2024; for the full year, revenue was $194.5 million, a 1% decrease from $197.1 million in 2024 [3]. - Net income surged to $9.7 million in Q4 2025, a 167% increase from $3.6 million in Q4 2024; for the year, net income reached $25.9 million, up 404% from $5.1 million in 2024 [3][21]. - Adjusted funds flow for Q4 2025 was $15.0 million, totaling $71.0 million for the year, reflecting a 37% increase from $51.7 million in 2024 [3][16]. - Basic earnings per share for Q4 2025 were $0.14, compared to $0.06 in Q4 2024; for the year, it was $0.39, up from $0.08 in 2024 [3][21]. - Capital expenditures for 2025 were $49.4 million, with a focus on Duvernay development [12][22]. Operational Highlights - Journey's daily sales volumes were 11,226 boe/d in Q4 2025, a 4% increase from 10,815 boe/d in Q4 2024; however, there was a 5% decrease from 11,862 boe/d in Q3 2025 due to asset dispositions and natural declines [11][16]. - The company drilled 8 (2.4 net) wells in the Duvernay play in 2025, contributing approximately 1,570 boe/d (79% liquids) to corporate sales volumes [5][7]. - Journey's net debt decreased by 16% from $60.3 million at the end of 2024 to $50.6 million at the end of 2025 [5][22]. Future Outlook - For 2026, Journey forecasts annual average daily sales volumes of 10,800-11,200 boe/d and capital spending of $70-85 million, with a focus on Duvernay development [25][23]. - The company plans to invest $50-65 million in Duvernay development in 2026, with significant infrastructure investments aimed at improving operational efficiency [8][10]. - Journey's future development costs for the Duvernay are estimated at $238 million, with 80% expected to be spent between 2026 and 2030 [7].