Cavvy Energy (CVVY) Corporate presentation summary

Corporate overview and strategy

• Operates upstream and midstream assets in the Canadian foothills, focusing on natural gas and sulphur production.

• Strategic pivot completed in 2025, shifting from LNG ambitions to core western Canadian operations.

• Production guidance for 2026 is 22,000–23,500 boe/d, with 1,000–1,100 mt/d sulphur output.

• Owns three deep-cut sour gas plants with significant available processing and sulphur capacity.

• Over 300 high-impact drilling locations identified, supporting long-term reserves growth.

Financial performance and guidance

• Q2 2026 net operating income reached $49.6MM, with $42.8MM from sulphur sales.

• Funds flow from operations was $41.9MM, and net income was $16.2MM in Q2 2026.

• Net debt reduced to $127.6MM, with $150MM total debt reduction since 2021.

• 2026 NOI guidance increased to $170–$180MM, reflecting strong sulphur pricing and third-party revenues.

• Capital expenditures for 2026 revised to $52–$57MM, supporting optimization and maintenance.

Revenue streams and market positioning

• Revenue is diversified: ~50% from hydrocarbons, ~40% from sulphur, ~10% from midstream fees.

• Sulphur production accounts for ~10% of Canada’s total, with pricing at historical highs.

• Third-party processing volumes and revenues grew by over 25% year-over-year in Q2 2026.

• Structured sulphur sales agreements secure pricing for 2026–2027, de-risking future cash flows.

• Available midstream capacity enables further third-party revenue growth.