Selected financial and operational information set out below should be read in conjunction with the Company's audited annual financial statements and related management's discussion and analysis ("MD&A") as at and for the years ended December 31, 2025 and 2024. In addition, readers are also directed to the Company's Annual Information Form ("AIF") for the year ended December 31, 2025, dated March 18, 2026. These documents are filed on SEDAR+ at www.sedarplus.ca and are available on the Company's website at www.loganenergycorp.com. The highlights reported throughout this press release include certain non-GAAP measures and ratios which have been identified using capital letters and are defined herein. The reader is cautioned that these measures may not be directly comparable to other issuers; refer to additional information under the heading "Reader Advisories, Non-GAAP Measures and Ratios".
MESSAGE TO SHAREHOLDERS
"In 2025, Logan made meaningful progress executing its business plan. Growing at our current pace during a period of weaker commodity prices is not without challenge, yet we delivered strong operational and financial results. Annual average production increased by 55% or 26% on a per-share basis, while we maintained a disciplined balance sheet. Operating and transportation costs declined by over 20% per BOE, and proved and probable reserves grew by 31%, reinforcing the quality and durability of our asset base.
A key milestone during the year was the successful construction and start‑up of the Pouce Coupe 4‑19 facility. Ownership and operation of this infrastructure is of strategic importance for Logan. It provides the processing capacity required to support our development plans at Pouce Coupe, while structurally improving capital efficiency, operating costs, and netbacks. This investment enhances our ability to grow organically and capture greater value per barrel over the long-term.
Looking ahead to 2026, we see significant opportunity. High‑quality Montney inventory and scalable, infrastructure‑backed platforms are becoming increasingly scarce, and we believe Logan is building one of the few remaining growth‑oriented positions of meaningful scale. Our focus remains on executing our ambitious organic growth plan, while maintaining the flexibility to opportunistically expand our asset base through accretive acquisitions. As our footprint, infrastructure ownership, and inventory depth continue to mature, we believe Logan is creating a platform that will be increasingly strategic and highly coveted by others." commented Richard McHardy, CEO of Logan.
2025 FINANCIAL AND OPERATING HIGHLIGHTS
Logan delivered record quarterly average production of 15,241 BOE per day (39% liquids), up 60% from 9,526 BOE per day (32% liquids) in the fourth quarter of 2024. Annual average production of 13,088 BOE per day (39% liquids) in 2025 increased 55% from 8,447 BOE per day (34% liquids) in the prior year.
The Company nearly doubled its crude oil production and increased its liquids weighting by 22% to average 39% of production in the fourth quarter of 2025 compared to 32% in fourth quarter of 2024. Year-over-year crude oil production increased by 84%, driving the Company's liquids weighting to average 39% in 2025 as compared to 34% in 2024.
The Company achieved a 31% increase in its Operating Netback which averaged $25.12 per BOE (after hedging) in 2025. In addition to realizing a significant reduction of per unit operating, transportation and royalty expenses, the improvement in Operating Netback was achieved through focused growth of the Company's oil/liquids weighted assets, which, together with stronger AECO natural gas benchmark pricing, mitigated the impact of lower crude oil benchmark pricing on Logan's average realized price for 2025 compared to 2024. The Company's Operating Netback averaged $25.09 per BOE (after hedging) in the fourth quarter of 2025, up 21% from 2024.
Year-over-year Adjusted Funds Flow reached a record $105.9 million in 2025, doubling from $52.9 million in 2024. Adjusted Funds Flow was $31.6 million for the quarter ended December 31, 2025, up 89% from $16.7 million in the quarter ended December 31, 2024.
The Company's drilling campaign for 2025 onstream wells included 18 (16.0 net) wells completed and brought on production during the first nine months of 2025. Logan brought onstream 9 (9.0 net) wells at Pouce Coupe, 8 (6.0 net) wells at Simonette, and an evaluation well targeting the Duvernay at Ante Creek. In the fourth quarter, the Company commenced its winter drilling program, drilling 2 (2.0 net) wells at Flatrock and spudding 1 (0.7 net) Simonette Wilrich well. Capital expenditures before A&D were $18.1 million and $208.2 million for the three months and year ended December 31, 2025, respectively. Annual capital expenditures include the construction and commissioning of the Company's 40 mmcf/d gas plant, battery and compression facilities at Pouce Coupe, liquids and water handling infrastructure at Simonette, as well as other facility debottlenecking projects.
Subsequent to year end, on March 10, 2026, Logan closed the acquisition of certain crude oil and natural gas assets located in the Simonette area for a cash purchase price of $62.5 million ($66.3 million after estimated closing adjustments) (the "Acquisition"). Logan previously acquired a 50% operated working interest in the Simonette assets on December 17, 2024. The Acquisition strategically consolidates these Montney-focused joint interest partner lands to a 100% working interest and includes incremental Deep Basin lands offsetting Simonette in the Bilbo and Leland areas of Alberta.
Logan remains committed to maintaining a strong balance sheet:
As of December 31, 2025, Logan had Net Debt of $88.6 million or 0.7 times its annualized Adjusted Funds Flow for the fourth quarter. Subsequent to the quarter the Company expanded its $150.0 million revolving credit facility to $250.0 million concurrent with the Acquisition.
On March 10, 2026, the Company raised $70.0 million of gross proceeds through an upsized bought-deal public offering and private placement of an aggregate 95.9 million common shares at $0.73 per share. Aggregate net proceeds of $66.8 million were used to reduce indebtedness incurred to fund the Acquisition and for working capital.
The following table summarizes selected highlights for the three months and years ended December 31, 2025 and December 31, 2024:
Three months ended December 31
Year ended December 31
(CA$ thousands, except as otherwise noted)
2025
2024
%
2025
2024
%
FINANCIAL HIGHLIGHTS
Oil and gas sales
47,335
29,013
63
171,778
110,536
55
Net income (loss) and comprehensive income (loss)
11,671
(150)
nm
37,778
4,555
729
$ per common share, basic and diluted
0.02
(0.00)
nm
0.06
0.01
500
Cash provided by operating activities
33,487
12,004
179
107,972
50,431
114
Adjusted Funds Flow (1)
31,607
16,689
89
105,939
52,919
100
$ per common share, basic (1)
0.05
0.03
67
0.18
0.11
64
$ per common share, diluted (1)
0.05
0.03
67
0.17
0.10
70
Capital Expenditures before A&D (1)
18,103
38,588
(53)
208,247
151,243
38
Acquisitions, net of dispositions
(370)
60,247
nm
(42,772)
60,597
nm
Total assets
515,882
365,450
41
515,882
365,450
41
Net Debt (1)
88,624
27,815
219
88,624
27,815
219
Shareholders' equity
317,878
275,357
15
317,878
275,357
15
Common shares outstanding (000s), end of period (2)
595,675
595,675
-
595,675
595,675
-
Three months ended December 31
Year ended December 31
(CA$ thousands, except as otherwise noted)
2025
2024
%
2025
2024
%
OPERATING HIGHLIGHTS AND NETBACKS (5)
