Lycos Energy (LCX) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw average production of 1,729 boe/d (96% crude oil), down from 4,570 boe/d in Q4 2024, mainly due to asset dispositions.

• Adjusted funds flow from operations dropped 72% year-over-year to $4.1 million in Q4 2025.

• Major asset sales in Alberta generated $60 million, with $47.9 million returned to shareholders and $9 million used for debt repayment.

• The business combination with Mahikan Oil Corporation closed in March 2026, strengthening the financial position.

Financial highlights

• Total petroleum and natural gas sales, net of blending, fell 66% in Q4 2025 and 36% for the year compared to 2024.

• Net income for 2025 was a loss of $49.6 million, impacted by a $40.8 million non-cash loss on dispositions and a $23.2 million impairment expense.

• Adjusted funds flow from operations per share (basic) was $0.27 for 2025, down 70% year-over-year.

• Capital expenditures for exploration and development decreased 80% in Q4 and 53% for the year.

• Exited 2025 with positive adjusted working capital after significant debt reduction.

Outlook and guidance

• A comprehensive post-merger capital budget for Q2 2026 and beyond is in development and expected before end of April.

• Current production post-merger is estimated at 1,700 boe/d (99% oil).

• Ongoing evaluation of new wells will inform future development plans.