Journey Announces Third Quarter 2025 Financial and Operating Results

Executive Summary

• Journey Energy reported a strong Q3 2025 performance with Adjusted Funds Flow of $20.5 M ($0.30 per share), up 51% year‑over‑year, and net income of $4.44 M ($0.06 per share).
• Sales volumes increased 6% to 11,862 boe/d, driven by new Duvernay well production that offset divestment volume losses.
• Net debt fell to $55.4 M (‑8% YoY) and the net‑debt‑to‑Adjusted‑Funds‑Flow ratio improved to 0.7×; capital spending was $11.2 M, primarily on the Gilby power project.

Key Details

• Financial Highlights – Q3 2025 vs. Q3 2024
• Sales revenue: $51.6 M vs. $47.0 M (+10%).
• Net income: $4.44 M vs. $0.60 M (+642%).
• Adjusted Funds Flow: $20.45 M vs. $13.55 M (+51%).
• Cash flow from operations: $12.78 M vs. $6.25 M (+104%).

• Capital expenditures (incl. A&D): $8.05 M vs. $8.13 M (‑1%).

• Operating Highlights

• Average sales volume Q3 2025: 11,862 boe/d (50% crude oil, 11% NGLs, 39% natural gas).
• Duvernay JV contributed 9 new wells (2.7 net) with IP30 average of 1,627 boe/d and 80% liquids per well.

• Production from divested assets at time of sale: ~275 boe/d; subsequent minor disposals added ~170 boe/d.

• Asset Dispositions

• Two non‑core asset sales (pre‑quarter) generated $3.2 M proceeds; assets produced ≈275 boe/d.
• Post‑quarter sale of two minor assets for $0.2 M reduced ARO by ~$9 M (undiscounted); assets produced ≈170 boe/d.

• Total 2025 disposals to date: ~770 boe/d sold, $6.5 M proceeds, removing $23 M of end‑of‑life costs.

• Power Generation Projects

• Gilby power project entered Stage 5 of grid connection; ISD moved to March 6 2026; Q3 spend $4.25 M on grid connection, total Q3 capital $11.2 M.

• Mazeppa project in Stage 3; mechanical inspection started; ISD remains summer 2026.

• Cost & Expense Metrics

• Operating expenses: $18.8 M (‑7% YoY); per‑boe $17.24 vs. $19.74 prior year.
• Royalties: $7.75/boe (↑6% YoY).
• G&A expense: $2.1 M (↓22% YoY); $1.95/boe vs. $2.62/boe prior year.

• Interest expense: $1.5 M (‑14%).

• Liquidity & Debt

• Net debt: $55.4 M (‑8% YoY).
• Convertible debenture $38 M due 2029 remains unchanged.

• Net‑debt/Adjusted‑Funds‑Flow ratio: 0.7×.

• Guidance

• No change to August 7 2025 guidance.
• Expected 2025 capital spend ≈$54 M (net of dispositions).
• Projected sales volumes 10,800–11,200 boe/d (≈60% crude oil & NGLs).

Notable Quotes

• “Our Duvernay drilling program is delivering the higher‑margin production needed to transform Journey into a sustainable growth company while we continue to streamline our asset base.” – Alex G. Verge, President & CEO
• “The progress on Gilby and Mazeppa power projects positions us well for diversified cash flow generation beyond oil and gas.” – Gerry Gilewicz, CFO