Cardinal Energy (CJ) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly production of 25,948 boe/d in Q1 2026, up 18% year-over-year, driven by full quarter of Reford 1 SAGD project volumes exceeding nameplate capacity.

• Adjusted funds flow reached $60.5 million ($0.36 per basic share), 31% higher than the prior quarter, supporting capital expenditures and dividends.

• Net operating expenses per boe decreased 13% year-over-year to $21.27, aided by lower Reford costs, carbon taxes, and power prices.

• Announced final investment decision and initial deposits for Reford 2 SAGD project; began facility construction and well pad development.

• Completed an upsized $104.7 million equity offering, reducing bank debt by 53% to $64.7 million and increasing undrawn credit capacity.

Financial highlights

• Petroleum and natural gas revenue rose 11% year-over-year to $166.6 million.

• Adjusted funds flow was $60.5 million, down 3% year-over-year but up 31% sequentially.

• Net income declined 50% year-over-year to $10.7 million ($0.06 per share).

• Capital expenditures totaled $38.6 million, up 179% year-over-year, focused on Reford 2 and conventional drilling.

• Dividends declared increased 8% to $31.1 million.

Outlook and guidance

• 2026 capital budget increased to $205 million (from $160 million), with $15 million allocated to abandonment and reclamation.

• Forecasts WTI oil prices at US$75/bbl for the remainder of 2026.

• Plans to drill 19 (18.1 net) conventional wells and 14 (14.0 net) stratigraphic wells in 2026.

• Expects to add over 1,000 boe/d to Q4 2026 production, targeting the high end of 25,000–25,500 boe/d annual guidance.

• Anticipates being nearly or completely undrawn on $275 million credit facility by year-end, enabling flexibility for a potential third thermal project in 2027.