CALGARY, Alberta, May 07, 2026 (GLOBE NEWSWIRE) -- Cavvy Energy Ltd. ("Cavvy" or the "Company") (TSX:CVVY) is pleased to announce its first quarter 2026 financial and operating results. The Company produced 24,655 boe/d of hydrocarbons, 1,089 mt/d of sulphur, and generated Net Operating Income1 ("NOI") of $41.9 million in the first quarter of 2026. Management's discussion and analysis ("MD&A") and unaudited interim condensed consolidated financial statements and notes for the quarter ended March 31, 2026 are available at www.cavvyenergy.com and on SEDAR+ at www.sedarplus.ca.
Q1 2026 HIGHLIGHTS
Generated NOI of $41.9 million ($0.14 per basic and fully diluted share) and Funds Flow from Operations1 of $32.2 million ($0.11 per basic and fully diluted share), up 29% and 48% respectively from Q1 2025.
Produced 24,655 boe/d (80% natural gas) and 1,089 mt/d of sulphur during the quarter, up 9% and 1% respectively from Q1 2025.
Increased third-party raw gas processing volumes to 156.8 MMcf/d, up 72% compared to Q1 2025, resulting in a 100% increase in third-party gathering, processing and marketing revenue.
Repaid US$27.0 million of senior debt during the quarter, marking the highest quarterly debt repayment in Company history, reducing total debt to US$88.9 million.
Reduced cash interest expense by 29% from Q1 2025 through material debt reduction, to $3.9 million.
Achieved 100% runtime at all three operated gas processing facilities during the first quarter.
Simplified capital structure following the exercise of all 24.9 million outstanding share purchase warrants for proceeds of $3.5 million, in exchange for issuing approximately 18.2 million common shares.
"Exposure to improved sulphur pricing beginning January 1st has proven transformational for Cavvy, as demonstrated by the strong results in the first quarter of 2026," stated Darcy Reding, President and CEO.
"The Vancouver FOB sulphur price averaged over US$500/mt during the quarter, helping to generate NOI of $41.9 million, with sulphur sales contributing 34% of revenue. We are confident the positive momentum from Q1 supports achieving our 2026 debt repayment target of $50 million.
Cavvy's midstream business continues to grow with a record high 157 MMcf/d of third-party raw gas volumes processed, representing 12% of revenue generated in the quarter, reinforcing Cavvy's identity as a uniquely diversified, premiere energy company. Long-term and sustainable value creation for shareholders remains management's top priority."
Selected Q1 2026 Financial and Operating Highlights
2026
2025
2024
($ 000s unless otherwise noted)
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Production
Natural gas (mcf/d)
118,284
111,834
115,467
126,198
105,338
111,787
115,196
157,077
Condensate (bbl/d)
2,302
2,065
2,258
2,507
2,454
2,149
2,191
2,472
NGLs (bbl/d)
2,639
2,299
2,454
2,524
2,574
1,788
1,726
2,210
Sulphur (mt/d)
1,089
989
1,120
1,128
1,076
968
1,444
1,376
Total production (boe/d) (1)
24,655
23,003
23,956
26,064
22,584
22,568
23,116
30,861
Third-party volumes processed (mcf/d) (2)
156,825
136,579
138,544
121,319
90,926
74,650
72,654
55,688
Financial
Natural gas price ($/mcf)
Realized before Risk Management Contracts (3)
1.99
2.41
0.66
1.73
2.24
1.55
0.77
1.14
Realized after Risk Management Contracts (3)
2.93
3.60
3.25
3.23
3.58
3.36
3.43
2.71
Benchmark natural gas price (AECO)
2.01
2.25
0.62
1.72
2.14
1.46
0.68
1.17
Condensate price ($/bbl)
Realized before Risk Management Contracts (3)
92.04
76.62
82.65
84.60
95.15
94.87
92.13
99.96
Realized after Risk Management Contracts (3)
85.17
79.75
83.66
85.88
88.29
90.61
84.61
87.75
Benchmark condensate price (C5 at Edmonton)
97.94
79.61
86.58
87.71
100.24
98.85
97.10
105.62
Sulphur price ($/mt)
Realized before Risk Management Contracts (4)
599.69
304.85
196.11
168.45
111.46
49.00
40.64
51.94
Realized after Risk Management Contracts (4)
360.35
43.22
34.59
32.40
17.00
12.09
8.86
18.43
Benchmark USD (Vancouver FOB)
508.40
414.47
268.42
271.75
184.42
135.78
97.49
73.82
Net income (loss)
3,538
(1,598
)
(10,086
)
4,147
2,666
(20,921
)
7,496
(19,196
)
Net income (loss) $ per share, basic and diluted
0.01
