Core Insights - Cardinal Energy Ltd. reported its third quarter 2025 operating and financial results, highlighting a decrease in revenue and cash flow compared to the same period in 2024 [1][2]. Financial Highlights - Petroleum and natural gas revenue for Q3 2025 was $127.0 million, down 14% from $148.0 million in Q3 2024 [3]. - Cash flow from operating activities decreased by 34% to $55.5 million compared to $83.6 million in the previous year [3]. - Adjusted funds flow was $47.3 million, a 28% decline from $65.7 million in Q3 2024, with a per share value of $0.29 [3][7]. - Earnings fell by 45% to $13.8 million from $25.1 million in Q3 2024 [3]. Production and Operating Metrics - Average daily production was 20,772 boe/d, a slight decrease of 2% from 21,128 boe/d in Q3 2024 [6][8]. - Net operating expenses per boe decreased by 1% to $24.05/boe compared to $24.40/boe in Q3 2024 [9]. - The company drilled four conventional oil wells during the quarter, focusing capital expenditures on the completion of the Reford SAGD project [8][14]. Capital Expenditures and Debt - Total capital expenditures for Q3 2025 were $26.7 million, down 21% from $33.9 million in Q3 2024 [6]. - The company drew $111 million, or 46%, from its $240 million credit facility, resulting in a net debt to adjusted funds flow ratio of 1.2x [10][36]. Project Updates - Cardinal invested approximately $14.4 million in the Reford thermal project, which has moved into the warm-up phase of initial operations [12][19]. - The project construction and initial commissioning were completed on budget and ahead of schedule, with expectations for higher production rates in Q4 2025 [17][21]. Environmental, Social, and Governance (ESG) Initiatives - The company sequestered approximately 52,000 tonnes of CO2 during Q3 2025, contributing to enhanced oil recovery operations [15]. - Cardinal's safety record and regulatory compliance remain among the top tier in the industry [16]. Outlook - The company anticipates that the Reford thermal asset will significantly improve production and adjusted funds flow in 2026, estimating an additional $100 million at a WTI price of US$65 [21]. - Cardinal plans to reinvest in its conventional business units in 2026 to address modest production declines experienced in 2025 [18].