Cavvy Energy (CVVY) Investor Presentation summary

Company overview and strategy

• Operates as a public E&P company with upstream and midstream assets in the Canadian Foothills, producing 35,000 boe/d (80% natural gas) and controlling significant infrastructure capacity.

• Strategic focus on responsible, affordable natural gas and sulphur production, optimizing infrastructure, and maintaining strong stakeholder relations.

• Transitioned through asset divestitures, debt reduction, and rebranding, with a focus on deleveraging and maximizing gas plant utilization.

• Pursues growth through optimization, third-party processing, marketing, acquisitions, and future drilling.

• Executive team brings extensive experience in operations, finance, and corporate development.

Operational performance and assets

• Q1 2025 production averaged 22,584 boe/d (78% gas), with 1,800 boe/d of previously shut-in production partially restarted.

• Operates three major deep cut sour gas plants (Waterton, Caroline, Jumping Pound) with significant excess capacity and growing third-party processing volumes.

• Third-party processing volumes reached 81.8 MMcf/d in Q1 2025, up 40% year-over-year, driving increased revenue and reduced operating costs.

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

• Sulphur production is a key differentiator, with significant market upside expected after fixed-price contracts expire at the end of 2025.

Financial results and guidance

• Q1 2025 net operating income was $32.6 million ($16.02/boe), with $21.7 million funds flow from operations and $2.7 million net income.

• Operating costs were $44.0 million ($21.64/boe), with higher per-unit costs due to lower production.

• Total debt reduced to $166.9 million, net debt at $185.4 million, and available liquidity of $24.3 million.

• 2025 guidance: production of 23,000–25,000 boe/d, net operating income of $75–95 million, and capital expenditures of $25–30 million.

• Hedge portfolio provides price protection through 2028, with $40 million unrealized mark-to-market gain as of May 2025.