Yangarra Announces 2025 Second Quarter Financial & Operating Results and Increased Banking Facility

Executive Summary

• Yangarra Resources Ltd. reported financial and operating results for the second quarter and first half of 2025, showing significant declines in production, revenue, and profitability compared to the same period in 2024.
• The company announced an increase in its syndicated senior credit facility from $130 million to $140 million, with the syndicate now consisting of ATB Financial and ICBC Standard Bank following CIBC's exit.
• Production guidance for 2025 was reduced to an annual average of 10,300 – 10,800 boe/d due to a third-party facility turnaround and weak commodity pricing, which also led to a pause in drilling activities until early August.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Funds flow from operations: $15.5 million ($0.14/share diluted), down 28%.
  • Oil and gas sales: $29.5 million, down 17%.
  • Adjusted EBITDA: $16.5 million ($0.15/share diluted), down 26%.
  • Net income: $6.8 million ($0.06/share diluted), down 28%.
• Production Metrics:
  • Average production: 10,560 boe/d (42% liquids), a 7% decrease year-over-year.
  • Natural Gas: 36,940 mcf/d.
  • Light Crude Oil: 1,958 bbl/d.
  • NGLs: 2,445 bbl/d.
• Operational Costs & Margins:
  • Operating costs: $8.87/boe (including $3.49/boe transportation).
  • Operating netback: $19.54/boe.
  • Operating margin: 64%; Funds flow from operations margin: 53%.
  • G&A costs: $1.26/boe.
  • Royalties: 7% of oil and gas revenue.
  • All-in cash costs: $14.60/boe.
• Balance Sheet & Liquidity:
  • Adjusted net debt: $100.7 million.
  • Adjusted net debt to Q2 annualized FFO ratio: 1.62:1.
  • Retained earnings: $350.1 million.
  • Decommissioning liabilities: $17.1 million (discounted).
• Capital Expenditures:
  • Q2 CapEx: $15.0 million.
  • H1 2025 CapEx: $32.4 million (Drilling & completion: $22.9M; Equipment: $8.1M).
• Banking Facility Update:
  • Credit facility increased from $130 million to $140 million.
  • New syndicate: ATB Financial and ICBC Standard Bank (CIBC exited).
  • Term out extended to May 29, 2026; Maturity extended to May 29, 2027.
  • Hedging requirement period extended to June 2026.
• Operations & Guidance:
  • No new wells drilled in Q2 due to weak AECO and volatile WTI pricing.
  • Drill program expected to recommence in early August.
  • 2025 Production Guidance reduced to 10,300 – 10,800 boe/d (annual average) due to a third-party facility turnaround affecting Q3.
  • H2 2025 drill program may include up to 10 wells, contingent on pricing and maintaining the $60 million capital budget.
  • Strategic pipeline connection of south Chambers to north Chambers completed (6.7 km pipeline).
• Commodity Pricing (Realized):
  • Light Crude Oil: $84.76/bbl (Q2 2025) vs $101.65/bbl (Q2 2024).
  • NGLs: $37.29/bbl (Q2 2025) vs $41.82/bbl (Q2 2024).
  • Natural Gas: $1.77/mcf (Q2 2025) vs $1.23/mcf (Q2 2024).