Cavvy Energy (CVVY) Corporate presentation summary

Asset base and positioning

• TSX-listed western Canadian foothills producer with upstream assets and three deep-cut sour gas plants; production capability of 33,000 boe/d, including ~9,200 boe/d currently shut in for economic or commercial reasons.

• Q2 2026 production was 21,497 boe/d, 80% gas, plus 984 mt/d of sulphur; PDP base decline is 5.9%.

• 2025 proved reserves were 196 MMboe; TPP reserve life index was 25.8 years, and undeveloped drilling inventory includes over 300 identified high-impact locations.

Midstream and sulphur

• Operated plants have over 80 MMcf/d of excess raw-gas processing capacity and total sulphur processing capacity of ~4,600 mt/d.

• Q2 2026 third-party raw-gas processing averaged 151.7 MMcf/d; processing revenue was $12.3 MM, up 26% YoY, and volumes grew 27% YoY.

• 2027 pricing agreement covers 200,000 mt of sulphur at US$525/mt; remaining volumes receive Vancouver FOB spot pricing.

• 2026 sulphur pricing terms cover one-third at US$225/mt, one-third within a US$205–250/mt collar, and one-third at Vancouver FOB spot.

• Forecast 2026 gross revenue mix: ~50% hydrocarbons, ~40% sulphur, and ~10% third-party processing; commodity streams have historically shown low price correlation.

Financial performance and outlook

• Q2 2026 net operating income was $49.6 MM and funds flow from operations was $41.9 MM; realized sulphur revenue was $42.8 MM.

• Q2 net debt was $127.6 MM after $39.2 MM of long-term debt repayment during the quarter; total liquidity was $71.5 MM.

• Revised 2026 guidance: production 22,000–23,500 boe/d, sulphur 1,000–1,100 mt/d, NOI $170–180 MM, capex $52–57 MM, and year-end debt $75–85 MM.

• Revised NOI midpoint is ~32% above prior guidance; the 2026 outlook assumes Vancouver FOB sulphur of US$743/mt and includes hedge and structured pricing impacts.