Cavvy Energy (CVVY) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 results with record sulfur revenues, driving an 87% year-over-year increase in Net Operating Income to $49.6 million and validating the strategy for shareholder value.

• Funds Flow from Operations rose 189% year-over-year to $41.9 million.

• Production averaged 21,497 BOE/day (80% natural gas) and 984 tons/day of sulfur, both down due to scheduled plant downtime.

• Repaid $39.2 million in senior debt, reducing total debt to $86.8 million at June 30, 2026.

• Extended key third-party processing agreements, supporting future NOI growth.

Financial highlights

• Net operating income for Q2 was $49.6 million, up 87% year-over-year.

• Funds flow from operations reached $41.9 million, up 189% year-over-year.

• Sulfur revenue for Q2 was $43 million pre-royalty, with average realized price of $478/ton.

• Operating Netback increased 127% year-over-year to $25.38/BOE.

• Net income for Q2 2026 was $16.2 million, up from $3.5 million in Q1 2026.

Outlook and guidance

• 2026 net operating income guidance raised to $170–180 million, up by $45 million, assuming strong sulfur and liquids pricing.

• Capital guidance increased to $52–57 million, reflecting higher investment in optimization and maintenance.

• Debt retirement guidance revised to year-end total debt of $75–85 million, a 32% reduction from original guidance.

• 2027 sulfur production hedged at $525/ton for 200,000 tons (~50% of expected output), locking in over $100 million net revenue.

• Production guidance for 2026 set at 22,000–23,500 BOE/day and 1,000–1,100 tons/day sulfur.