Cardinal Energy Ltd. Announces Fourth Quarter 2025 and Year-End Financial Results

Executive Summary

• Cardinal Energy reported record Q4 production of 23,514 boe/d (up 7% YoY) driven by the Reford SAGD project entering production.
• Adjusted funds flow fell to $46.1 M ($0.28 per diluted share) in Q4 and $205.1 M ($1.27 per diluted share) for FY 2025, reflecting lower commodity prices and reduced capital spending.
• Capital expenditures were $77.7 M for the year (down 25% YoY), focused on drilling/completing eight wells, one disposal well, and CO₂ purchases for EOR; the company also drew $138.6 M (58%) of its $240 M credit facility.

Key Details

• Production Highlights
• Q4 2025 average: 23,514 boe/d (record); FY 2025 average: 21,870 boe/d (flat YoY).

• Light oil 7,092 bbl/d; medium/heavy oil 13,538 bbl/d; NGL 834 bbl/d; natural gas 12,297 mcf/d.

• Financial Performance

• Petroleum & natural gas revenue: Q4 $129.5 M (‑12% YoY); FY $533.7 M (‑12%).
• Adjusted funds flow: Q4 $46.1 M (‑29% YoY); FY $205.1 M (‑23%).
• Net loss (loss) / earnings: Q4 $(29.9 M) vs. $25.8 M profit prior year; FY loss $(20.8 M) vs. $108.3 M profit prior year.

• Total payout ratio increased to 117% in Q4 (vs. 69% prior year).

• Capital & Debt Activity

• Year‑end capital expenditures: $77.7 M (down 25%).
  • Development capex: $76.5 M (‑24%).
  • Other capex: $1.9 M (‑21%).
• Dispositions generated $0.6 M proceeds.

• Debt: Bank debt $138.6 M; Debentures $100.0 M; Net debt $281.9 M (up 104%).

• Operational Updates

• Reford SAGD project achieved name‑plate production of 6,000 bbl/d in Dec 2025; Q1 2026 average > 6,500 bbl/d with steam‑oil ratio < 2.5×.
• Conventional assets contributed ~96% of total production; low‑decline assets supported by CO₂ EOR (≈226 k tonnes sequestered in 2025).

• Drilled two Clearwater wells at Buffalo, each > 200 bbl/d after six months on‑stream.

• Future Outlook & Projects

• Reford 2 SAGD project sanctioned Jan 28 2026; fixed‑price contract with Propak for ~60% of projected costs, pad location leased, long‑lead items ordered, water pipeline route surveyed.
• Planned 2026 capital budget: $160 M; target average production 25,000–25,500 boe/d.

• Anticipated equity financing of $104.7 M closed Q1 2026; two unsecured debentures totalling $105 M closed early 2025.

• ESG & Asset Retirement

• CO₂ sequestration: ~226,000 t CO₂e in 2025 (total 6.1 Mt).
• Asset retirement spending: $10.0 M; decommissioned > 40 wells, 158 km pipeline, 1 facility, 21 reclaimed sites; received 42 reclamation certificates.

Notable Quotes

• “2025 was a transformational year… the successful completion of our Reford 1 project has generated a step change in production, increased adjusted funds flow, lower costs and a meaningful improvement to the long‑term sustainability characteristics of the Company.” – Management (press release).