Cardinal Energy (CJ) Q3 2026 earnings summary

Executive summary

• Q3 production rose 21% YoY to 25,127 boe/d, while adjusted funds flow climbed 149% to $117.8 million, supported by Reford 1 volumes and stronger oil prices.

• Free cash flow was $57.9 million; net debt fell 10% QoQ to $154.9 million, with a 0.4x trailing net debt to adjusted funds flow ratio.

• Reford 2’s expanded 6,000 bbl/d capacity and forecast production growth into late 2026 and 2027 underpin the development outlook.

Financial highlights

• Q3 petroleum and natural gas revenue was $215.6 million, up 70% YoY; earnings were $58.3 million, up 323%.

• Adjusted funds flow was $117.8 million ($0.67/basic share), up 149% YoY; free cash flow was $57.9 million, up 176%.

• Q3 cash flow from operating activities was $99.0 million, up 78% YoY; capital expenditures totaled $60.4 million, up 126%.

• Nine-month revenue was $613.9 million, up 52% YoY; adjusted funds flow was $301.6 million, up 90%, and earnings were $137.5 million, up 171%.

Outlook and guidance

• Conventional production is forecast to grow through late 2026 and into 2027; an anticipated production step-change is expected within the next 12 months.

• Reford 2 first steam remains on track for summer 2027; Reford 1 sustaining well pairs are expected to reach first steam in mid-2027.

• The 2027 budget is expected after greater clarity on crude pricing; high-return projects could be accelerated in a supportive oil-price environment.