Cavvy Energy (CVVY) Q2 2026 earnings summary

Executive summary

• Achieved significant progress on corporate objectives, validating the current strategy for shareholder value.

• Achieved record sulphur revenues, driving an 87% year-over-year increase in Net Operating Income (NOI) to $49.6 million in Q2 2026.

• Diversified revenue streams from upstream, midstream, and sulfur businesses provided resilience and growth.

• Institutional ownership remains strong, with AIMCo holding 44% and continued investor support.

• Transitioning to phase II of strategy, emphasizing value-accretive growth while maintaining operational excellence.

Financial highlights

• Net operating income for Q2 was nearly CAD 50 million, up 87% year-over-year.

• Funds flow from operations reached just under CAD 42 million, up 189% year-over-year.

• Sulfur revenue contributed CAD 43 million pre-royalty in Q2, with pricing exceeding $1,000/ton.

• Third-party midstream revenue expected to exceed CAD 40 million in 2026, with volumes up 27% year-over-year and related revenues up 26%.

• Total debt reduced by nearly CAD 40 million in Q2, ending at CAD 87 million at June 30, 2026.

Outlook and guidance

• 2026 net operating income guidance raised to CAD 170–180 million, up ~30% from prior guidance.

• Capital guidance increased to CAD 52–57 million to fund high-IRR optimization and maintenance projects.

• Year-end debt expected at CAD 75–85 million, down 32% from original guidance.

• 2027 sulfur production hedged at $525/ton for 200,000 tons, locking in over CAD 100 million net revenue.

• Production guidance for 2026 set at 22,000–23,500 boe/d and 1,000–1,100 mt/d sulphur.