Core Insights - Journey Energy Inc. reported financial and operational results for Q2 and H1 2025, highlighting a net income of $4.1 million and an Adjusted Funds Flow of $15.9 million, reflecting a significant increase compared to the same period in 2024 [1][25][19] Financial Highlights - Sales revenue for Q2 2025 was $45.2 million, down 11% from $50.5 million in Q2 2024, while H1 2025 revenue totaled $97.2 million, a 5% decrease from $102.6 million in H1 2024 [4] - Net income for Q2 2025 was $4.1 million, compared to a loss of $2.3 million in Q2 2024, and $11.8 million for H1 2025, up from $0.9 million in H1 2024 [4][25] - Adjusted Funds Flow increased by 67% year-over-year to $15.9 million in Q2 2025, and by 30% to $35.5 million for H1 2025 [4][19] - Capital expenditures for Q2 2025 were $25.5 million, significantly higher than $3.3 million in Q2 2024, with a total of $35.0 million for H1 2025 [4][9] Operational Highlights - Daily sales volumes averaged 10,950 boe/d in Q2 2025, a slight decrease from 11,235 boe/d in Q2 2024 [8] - The company reduced field operating costs per boe by 25% compared to Q2 2024, achieving $17.58/boe in Q2 2025 [22] - Journey's liquids weighting increased to 59% of total volumes in Q2 2025, up from 54% in Q2 2024, with crude oil contributing 49% of total boe volumes [19][21] Project Updates - The Gilby power generation project is on track for completion in Q4 2025, with increased capital costs now estimated at $4.25 million [11] - Journey has entered into agreements to divest two minor producing assets for $3.2 million, expected to close in Q3 2025, which will reduce corporate asset retirement obligations by approximately $7.2 million [10] Future Guidance - The company has updated its 2025 capital spending guidance to $54 million, slightly down from previous estimates, while maintaining sales volume guidance of 10,800-11,200 boe/d [27][28] - The Duvernay project remains a key focus, with anticipated significant expansion in spending for 2026 [30]