Cardinal Energy Ltd. Announces Third Quarter 2025 Operating and Financial Results

Executive Summary

• Cardinal Energy reported Q3 2025 production of 20,772 boe/d and adjusted funds flow of $47.3 M, down 28% year‑over‑year, reflecting lower commodity prices and modest production decline.
• The Reford SAGD thermal project entered the warm‑up phase; construction stayed on budget and ahead of schedule, positioning the asset for full production in Q4 2025 and beyond.
• Net debt rose to $262.3 M (1.2× adjusted funds flow) after drawing $111 M from its $240 M credit facility; dividend payout remained $0.06 per share/month ($29.5 M paid).

Key Details

• Production: Average 20,772 boe/d in Q3 2025 (‑2% vs Q3 2024); light oil 7,216 bbl/d (+6%), medium/heavy oil 10,410 bbl/d (‑9%).
• Adjusted Funds Flow: $47.3 M ($0.29 per basic and diluted share), a 28% decline YoY driven by a 13% drop in realized commodity pricing.
• Net Operating Expenses: $24.05/boe, down 1% YoY due to reduced work‑over activity and lower power costs.
• Capital Expenditures: $26.7 M total (‑21% YoY); $14.4 M invested in Reford thermal project, $6.4 M in other E&E, $4.0 net conventional oil wells drilled/completed.
• Debt & Liquidity: Drew $111 M (46%) of $240 M credit facility; bank debt $111 M, debentures $99.8 M; net debt $262.3 M; net‑debt‑to‑adjusted‑funds‑flow ratio 1.2×.
• Dividends: Consistent $0.06 per share/month dividend; $29.5 M paid in Q3 2025 (total payout ratio 118%).
• Reford SAGD Update: Warm‑up phase completed for all six well pairs; “Semi SAGD” trial confirmed CPF performance; moving to production phase with electric submersible pumps installation; project ahead of schedule and on budget.
• Conventional Operations: Four (4.0 net) oil wells drilled/completed; conventional capex $26.3 M (‑21% YoY).
• ESG – CO₂ Sequestration: 52,000 t CO₂ sequestered in Q3 2025 at Reford; 6 M t total at Midale EOR project, contributing ~10% production uplift.
• Outlook Highlights: Anticipate additional $100 M adjusted funds flow from Reford SAGD in 2026 (assuming $65 WTI); expect lower cash breakeven and stronger dividend sustainability; second thermal project sanction targeted early 2026 pending market conditions; 2026 budget to be set after price clarity.

Notable Quotes

• “Our first thermal oil facility is now operational ahead of schedule, and the early warm‑up results exceed our models, positioning Cardinal for a significant cash flow boost in 2026.” – CFO Shawn Van Spankeren
• “Despite a challenging pricing environment, we remain committed to delivering shareholder value through disciplined capital spending and a sustainable dividend.” – President & CEO Laurence Broos