Cardinal Energy (CJ) Q2 2026 earnings summary

Executive summary

• Q2 2026 production rose 21% year-over-year to 25,636 boe/d, driven by Reford 1 SAGD project additions.

• Adjusted funds flow reached $123.4 million, up 150% year-over-year, supporting capital expenditures, debt reduction, and dividends.

• Net operating expenses per boe fell 12% to $20.38, reflecting lower-cost production and reduced carbon taxes and power prices.

• Net debt decreased 39% from year-end 2025 to $172.7 million, with a net debt to adjusted funds flow ratio of 0.6x.

• Free cash flow of $64.5 million enabled $32.2 million in dividends, with a total payout ratio of 74%.

Financial highlights

• Petroleum and natural gas revenue grew 82% year-over-year to $231.6 million in Q2 2026.

• Net earnings increased 341% to $68.4 million; basic EPS rose 290% to $0.39.

• Development capital expenditures totaled $58.9 million, up 364% year-over-year.

• Netback per boe nearly doubled to $59.76 from $30.15 year-over-year.

• Adjusted funds flow per share (basic) was $0.70, up 126% year-over-year.

Outlook and guidance

• Enhanced financial flexibility expected to allow organic funding of thermal projects and continued monthly dividends.

• Reford 2 SAGD project on track, with meaningful revenue contribution anticipated in Q4 2027.

• Net debt projected to end 2026 well below original budget despite a $50 million capital budget increase.

• Ongoing stratigraphic drilling to inform future development plans.