RUBELLITE ENERGY CORP. REPORTS FOURTH QUARTER 2025 FINANCIAL AND OPERATING RESULTS, 2025 YEAR-END RESERVES, AND PROVIDES OPERATIONS UPDATE AND FIRST QUARTER 2026 GUIDANCE
Executive Summary
- Rubellite Energy reported record fourth‑quarter 2025 production (13,042 boe/d) and a record annual average of 12,494 boe/d, exceeding its 2025 guidance.
- Adjusted funds flow rose 52% YoY to $142.1 M ($1.52 per share); net income rebounded to $32.6 M ($0.35 per share).
- The company provided a detailed operations update and Q1 2026 outlook, forecasting total production of 13,300‑13,400 boe/d and capital spending of $30‑$32 M.
Key Details
Production & Sales
- Heavy oil average Q4 2025: 8,295 bbl/d (+7% YoY); record annual heavy oil sales 8,402 bbl/d (+48%).
- Total sales production Q4 2025: 13,042 boe/d (+26% YoY); record annual average 12,494 boe/d (+97%).
- Figure Lake gas plant processing capacity reached 6.4 MMcf/d by Q4 2025; natural‑gas sales averaged 5.6 MMcf/d in Q4 and 3.4 MMcf/d for the year.
Capital Expenditures & Drilling
- Exploration & development spend: $34.8 M in Q4, $114.6 M for 2025 (within $110‑115 M guidance).
- Total 2025 drilling activity: 53 wells (43.8 net) – includes 14 heavy‑oil wells at Figure Lake/Frog Lake and multiple horizontal Clearwater, Sparky, Waseca and East Edson wells.
- Figure Lake gas plant construction cost: $0.7 M Q4, $4.1 M for the year.
- Land acquisition cost: $0.3 M Q4; disposed of 7 sections of non‑producing land for $2.3 M, total land disposition proceeds $7.8 M in 2025.
Financial Performance
- Adjusted funds flow (non‑GAAP): $33.2 M ($0.35/sh) Q4 2025; $142.1 M ($1.52/sh) for 2025, up 5% and 52% respectively YoY.
- Cash costs: $15.41/boe Q4 2025 (21% lower YoY); $17.24/boe for 2025 (20% lower YoY).
- Net income: $9.7 M ($0.10/sh) Q4 2025 vs. $26.7 M loss in Q4 2024; $32.6 M ($0.35/sh) for 2025 vs. $50.0 M in 2024.
- Net debt: $143.1 M at year‑end, down 7% YoY; available liquidity $46.0 M under a $140 M credit facility.
Reserves (Year‑End 2025)
- Total proved + probable reserves: 53.1 MMboe, up 0.1 MMboe YoY (0.1% growth).
- Heavy oil portion: 55 % of total reserves (up from 51%).
- Reserve additions: 6.1 MMboe added via drilling; net addition after revisions 4.6 MMboe.
- Finding & development cost: $32.73/boe (2P basis); recycle ratio ≈1.0.
Q1 2026 Outlook & Guidance
- Expected exploration & development spend: $30‑$32 M.
- Anticipated production: 13,300‑13,400 boe/d, with heavy oil 8,300‑8,400 bbl/d (≈2% Q4 2025 growth).
- Capital projects include additional Clearwater wells, water‑flood and polymer‑flood pilots at Figure Lake, new wells at Frog Lake, and a single exploration well on a new venture prospect.
- Operating cost guidance: $6.50‑$7.25/boe; transportation cost $4.50‑$5.00/boe; heavy‑oil wellhead differential $3.50‑$4.00/bbl.
- ARO spending planned at ~$0.8 M in Q1 2026 (total 2026 requirement $1.4 M).
Notable Quotes
“Our record production and strong cash flow generation underscore the success of our drilling program and position us well to fund continued growth while further reducing net debt,” – Susan L. Riddell Rose, President & CEO.