Core Viewpoint - Cardinal Energy Ltd. has announced a conservative capital budget of $75 million for 2026, aimed at navigating the volatile crude oil price environment while maintaining shareholder returns through monthly dividends [3][4]. Budget Highlights - The 2026 capital budget is designed to generate approximately $133 million of free cash flow from existing assets, which will support the monthly dividend and other expenditures [4]. - The budget anticipates a maximum draw of approximately 69% on a $240 million credit facility, with net debt expected to remain flat compared to the end of 2025 levels at a WTI price of US$60 [5][7]. Production and Financial Forecast - Average annual production is forecasted to be between 25,000 and 25,500 boe/d for 2026, representing a 15% growth from 2025 levels [7]. - Adjusted funds flow is projected to be $208 million, equating to $1.23 per diluted share at a WTI price of US$60 [7]. - The capital budget includes $68 million for conventional capital expenditures and $7 million for thermal expenditures related to the Reford SAGD project [6][10]. Operational Efficiency - The company plans to drill and complete two net wells to support its low decline conventional asset base, which continues to perform well despite modest reinvestment during the Reford SAGD build-out [7]. - The budget includes $10 million allocated for abandonment and reclamation activities [7]. Recent Performance - In Q4 2025, Cardinal achieved quarterly production volumes of approximately 23,500 boe/d, exceeding expectations due to the Reford SAGD ramp-up being executed ahead of schedule [8]. - The annual average production for 2025 was approximately 21,870 boe/d, surpassing the high end of the guidance range [8]. Product Composition - The budgeted average production for 2026 is expected to consist of 35% light/medium crude oil, 54% heavy oil, 3% NGL, and 7% conventional natural gas [16].

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]