Cardinal Energy Ltd. Announces the 2026 Budget

Executive Summary

• Cardinal Energy released its 2026 budget forecasting average production of 25,000‑25,500 boe/d – a ~15% increase versus 2025.
• The company projects adjusted funds flow of $208 million ($1.23 per diluted share) and free cash flow of ~$133 million, supporting a continued monthly dividend of $0.06 per share.
• Capital spending is capped at $75 million (≈$68 M conventional, $7 M thermal/Reford), with an anticipated draw of ~69% on its $240 million credit facility and net debt expected to remain flat.

Key Details

• Production Outlook – 2026 average production: 25,000‑25,500 boe/d (15% growth YoY).
• Capital Budget – Total $75 M; $68 M allocated to conventional assets, $7 M to thermal/Reford and exploration. Minimal additional spend required at Reford SAGD due to prior 2024/2025 investments.
• Drilling Plan – Two (2.0 net) conventional wells to be drilled/completed; further drilling contingent on crude oil price.
• Financial Metrics – Adjusted funds flow: $208 M ($1.23 per diluted share). Free cash flow: ~$133 M. Net operating expenses: $22‑$23/boe. Transportation costs: $1.90‑$2.10/boe. G&A: $2.50‑$2.75/boe. Interest expense: $2.15‑$2.40/boe.
• Debt & Liquidity – Credit facility: $240 M; expected maximum draw ~69% in 2026. Net debt projected to remain flat at year‑end 2025 levels.
• Dividend Policy – Monthly dividend maintained at $0.06 per share.
• Abandonment & Reclamation (ARO) – $10 M earmarked for ARO activities in 2026.
• Pricing Assumptions – WTI price assumed at US$60/bbl; USD/CAD exchange rate 0.72; basis differentials applied (WTI‑WCS: -$12.50, WTI‑MSW: -$3.50).

Notable Quotes

“Our modest 2026 capital budget takes advantage of our low corporate decline rate and minor required spending at Reford to generate approximately $133 million of free cash flow, which will assist in funding our monthly dividend, abandonment and reclamation expenditures as well as advancing our thermal exploration initiatives.” – Cardinal Energy Management

All forward‑looking statements are subject to risks and uncertainties detailed in the release.