Northwire Canada EditionSaturday, October 17, 2026
Sign inSubscribe
Northwire
⌕
GOLD 4181.10 +0.3% SILVER 57.30 +0.3% COPPER 6.57 +0.3% OIL 99.02 +1.1% PALLADIUM 1118.60 −0.9% GBU 0.095 +0.0% ATY 0.225 +4.7% GRDM 0.215 +0.0% PPM 0.300 +0.0% GZD 0.040 −11.1% CAN 0.060 +0.0% BGF 0.025 +0.0% MSV 0.570 +0.0% CCMM 0.485 +0.0% MON 0.385 −6.1% OMI 0.245 −2.0% BUFF 0.800 +2.6% FEO 0.630 −3.1% LIB 0.710 −1.4% NPR 0.620 +0.0% QZM 0.380 +0.0% GOLD 4181.10 +0.3% SILVER 57.30 +0.3% COPPER 6.57 +0.3% OIL 99.02 +1.1% PALLADIUM 1118.60 −0.9% GBU 0.095 +0.0% ATY 0.225 +4.7% GRDM 0.215 +0.0% PPM 0.300 +0.0% GZD 0.040 −11.1% CAN 0.060 +0.0% BGF 0.025 +0.0% MSV 0.570 +0.0% CCMM 0.485 +0.0% MON 0.385 −6.1% OMI 0.245 −2.0% BUFF 0.800 +2.6% FEO 0.630 −3.1% LIB 0.710 −1.4% NPR 0.620 +0.0% QZM 0.380 +0.0%
Earnings

Cavvy Releases Q3 2025 Financial and Operating Results, Executes Forward Price Agreement for 2026 Sulphur Sales, and Increases 2025 Guidance

By The Northwire Desk — AI Analysis Nov 06, 2025 · 18:11 PEA · 0.33 PIERIDAE ENERGY LIMITED
PEA · Price

Executive Summary

  • Cavvy Energy reported Q3 2025 net operating income of $30.6 M and funds flow from operations of $12.9 M, driven by a 105% increase in third‑party gas processing volumes.
  • The company executed a structured forward sulphur pricing agreement for 2026, providing downside protection (minimum $225/mt) while retaining upside participation.
  • Revised 2025 guidance lifts net operating income to $100–110 M and operating netback to $11.50–12.50/boe, without increasing capital spend.

Key Details

  • Production & Processing
  • Produced 23,956 boe/d (80% natural gas), up 4% YoY.
  • Third‑party raw gas processing volumes: 136.1 MMcf/d, a 105% increase vs Q3 2024.

  • Sulphur production: 1,120 mt/d, 85% sold under below‑market contract expiring 31 Dec 2025.

  • Financial Highlights

  • Net operating income (NOI): $30.6 M ($0.11 per share).
  • Funds flow from operations: $12.9 M ($0.04 per share).
  • Net debt reduced to $163.7 M, down $3.2 M QoQ.

  • Operating expenses decreased by $1.8 M (5%) to $36.7 M YoY.

  • Forward Sulphur Pricing Agreement (2026)

  • One‑third of sales at fixed US$225/mt.
  • One‑third under collar: floor US$205/mt, cap US$250/mt.
  • One‑third at spot FOB Vancouver price.

  • Applies to 100% of marketed sulphur; no minimum volume commitment.

  • Revised 2025 Guidance | Metric | Revised Low | Revised High | |--------|-------------|--------------| | Total production (boe/d) | 23,000 | 25,000 | | Net operating income ($000s) | 100,000 | 110,000 | | Operating netback ($/boe) | 11.50 | 12.50 | | Capital expenditures ($000s) | 25,000 | 30,000 |

  • Hedge Position (as of 6 Nov 2025)

  • Natural gas: 110,000 GJ/d hedged at avg $3.32/GJ.
  • Condensate: 1,641 bbl/d hedged with floor $84.67/bbl, ceiling $92.05/bbl.
  • Power purchases: 55 MW hedged at $79.08/MWh.

  • Unrealized hedge gain ≈ $22.5 M.

  • Outlook & Priorities

  • Focus on balance‑sheet strengthening, third‑party volume growth, cost reductions, and non‑core asset dispositions.

  • No new development drilling planned for 2025; low‑interest, non‑operated well to spud in Oct 2025.

  • Conference Call

  • Date: 7 Nov 2025, 8:30 a.m. MDT / 10:30 a.m. EDT.
  • Webcast registration links provided.

Notable Quotes

“We generated over $30 million of net operating income, supported by 14% growth in third‑party processing volumes… we are also very pleased to announce the execution of a structured forward pricing agreement for our 2026 sulphur sales which provides downside revenue protection while preserving meaningful upside participation.” – Darcy Reding, President & CEO.

Read the original news release →

More from PIERIDAE ENERGY LIMITED

Mar 12, 2026 · 17:19

Cavvy Announces Warrant Exercise

Financings Feb 03, 2026 · 16:24

Cavvy Conference Call and Webcast to Discuss Fourth Quarter and Year-End 2025 Results

Earnings Dec 08, 2025 · 07:00

Cavvy Energy Announces 2026 Guidance & Capital Program

Production / Operations