Cavvy Energy (CVVY) Q3 2026 earnings summary

Executive summary

• Caroline’s 52-day turnaround and a 33-day Waterton outage reduced Q3 production to 17,482 boe/d; NOI was $38.4 million and funds flow was $29.5 million.

• Major 2026 maintenance is complete, all three major facilities are online, and normalized run-times are expected through Q4 and into 2027.

• Revenue streams include hydrocarbon sales, third-party processing and marketing, and sulphur; sulphur is expected to contribute over 40% of 2026 revenue.

Financial highlights

• Q3 NOI was $38.4 million, up 25% YoY; funds flow from operations was $29.5 million, up 129% YoY.

• Net income was $8.7 million, or $0.03 per share, versus a $10.1 million net loss in Q3 2025; finance expense was $4.7 million, down 32% YoY.

• Capital expenditures were $35.4 million, including $19.7 million for turnarounds and $8.6 million for workovers and optimization; cash provided by operating activities was negative $6.0 million.

• Repaid $2.5 million of senior debt in Q3; outstanding principal was $84.2 million at September 30, 2026.

Outlook and guidance

• 2026 guidance remains unchanged: production of 22,000–23,500 boe/d and sulphur output of 1,000–1,100 mt/d, both expected near the low end; NOI guidance is $170–$180 million, expected at or above the high end.

• 2026 capex guidance is $52–$57 million and year-end debt guidance is $75–$85 million, including normalized working capital.

• Guidance assumes average unhedged 2026 AECO gas of $1.80/GJ, WTI of US$79.54/bbl and Vancouver FOB sulphur of US$743/mt; production assumptions include announced Northern Alberta shut-ins.

• Approximately 800 boe/d of Northeast BC production restarted in October; normalized operations are expected in Q4 and 2027. 2027 corporate guidance and capital allocation plans are expected in early December.