Cardinal Energy (CJ) Q3 2025 earnings summary

Executive summary

• Q3 2025 production averaged 20,772 boe/d, reflecting a focus on completing the Reford SAGD project.

• Adjusted funds flow was $47.3 million, down 28% year-over-year, mainly due to lower commodity prices and slightly reduced production.

• Net operating expenses per boe decreased 1% to $24.05/boe compared to Q3 2024.

• $29.5 million was returned to shareholders via dividends in Q3 2025.

Financial highlights

• Petroleum and natural gas revenue was $127.0 million, down 14% year-over-year.

• Net income for Q3 2025 was $13.8 million, a 45% decrease from Q3 2024.

• Cash flow from operating activities was $55.5 million, down 34% year-over-year.

• Development capital expenditures were $26.3 million, a 21% reduction from Q3 2024.

• Total payout ratio increased to 118% from 94% in Q3 2024.

Outlook and guidance

• Reford SAGD project is expected to drive higher production in Q4 2025 and into 2026.

• Additional Reford production at US$65 WTI is projected to add ~$100 million in adjusted funds flow in 2026.

• 2026 budget announcement is deferred pending greater clarity on commodity prices.

• Plans to reinvest in conventional business units in 2026 to offset 2025 production declines.

• Second thermal project could be sanctioned in early 2026, subject to market conditions.