Cavvy Energy (CVVY) Corporate presentation summary

Corporate overview and strategy

• Focuses on upstream and midstream assets in the Canadian foothills, with a production capability of 33,000 boe/d, 85% natural gas and 15% NGLs and condensate.

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

• Owns three deep-cut sour gas plants with over 400 MMcf/d capacity and significant third-party processing business.

• Sulphur production is a key differentiator, representing ~10% of Canada’s output and ~25% of forecasted 2026 revenue.

• Institutional and insider ownership is high, with AIMCO holding 44% of shares.

Financial performance and guidance

• FY 2025 production averaged 23,904 boe/d (80% gas), with $110.5MM net operating income and $62.6MM funds flow from operations.

• Net debt reduced to $170.6MM by year-end 2025, down $26.9MM year-over-year.

• 2026 guidance targets 22,000–24,500 boe/d, $125–$140MM NOI, $35–$40MM capex, and YE debt of $110–$125MM.

• Sulphur sales expected to drive significant cash flow growth in 2026 due to new pricing agreements.

• Third-party processing revenues grew 92% in 2025, supporting diversified income streams.

Asset base and growth opportunities

• Holds 396,000 net undeveloped acres and 196 MMboe proved reserves with a 25.8-year reserve life index.

• Over 300 high-impact drilling locations identified, providing a long runway for reserves and value growth.

• Core areas include Waterton, Caroline, Jumping Pound, and Northern Alberta, each with significant development and exploration upside.

• Facility utilization improvements and cost structure optimization are key to maximizing cash flow.

• Peer valuation analysis shows trading at a discount to gas-weighted peers, with potential for multiple expansion.