Selected financial and operational information set out below should be read in conjunction with the Company's unaudited condensed interim financial statements and related management's discussion and analysis ("MD&A") as at and for the three months ended March 31, 2026 and 2025. 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".
FIRST QUARTER 2026 HIGHLIGHTS
Logan reported quarterly average production of 14,237 BOE per day (36% liquids) during the first quarter of 2026, up 43% from 9,974 BOE per day (34% liquids) in the same quarter of 2025. Production for the quarter was in line with Logan's internal forecast and the Company is on track to deliver on its guidance for average production in excess of 18,000 BOE per day for the second half of 2026.
The Company's Operating Netback before hedging averaged $22.92 per BOE in the three months ended March 31, 2026, an increase of 10% from $20.85 per BOE in the first quarter of 2025. With average realized pricing 4% lower than the same time last year, the improvement in Operating Netbacks resulted from lower per unit cash costs.
Logan generated Adjusted Funds Flow of $24.9 million ($0.04 per share, diluted) in the first quarter, up 56% from $16.0 million ($0.03 per share, diluted) reported in the comparative quarter of 2025.
The Company executed an active capital program during the quarter, progressing its organic growth initiatives and core infrastructure projects. Capital expenditures before A&D were $54.6 million for the three months ended March 31, 2026, including $38.0 million directed to drilling and completions, $16.2 million on facilities, pipelines and equipment and $0.4 million on land.
At Simonette, Logan drilled 4 (2.7 net) wells, of which 1 (0.7 net) well in the Spirit River (Wilrich) was completed and brought on production.
At Pouce Coupe, Logan drilled 6 (6.0 net) wells, of which 1 (1.0 net) well at North Pouce was completed and 1 (1.0 net) well was completed and brought onstream.
Logan commenced an expansion project at its Pouce 4-19 facility along with equipment procurement for its South Simonette oil battery construction project.
On March 10, 2026, Logan closed the acquisition of certain crude oil and natural gas assets located in the Simonette area for total cash consideration of $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 oil-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.
Concurrent with the Acquisition, Logan raised aggregate gross proceeds of $70.0 million pursuant to bought-deal equity financings, including the exercise of the overallotment option in full. Logan issued an aggregate of 95.9 million common shares at an issue price of $0.73 per common share. Net proceeds were used to fund the Acquisition.
Logan exited the first quarter with Net Debt of $118.6 million or 1.2 times its annualized Adjusted Funds Flow for the first quarter. Effective March 10, 2026, the lenders upsized the borrowing base under the Company's credit facilities from $150.0 million to $250.0 million. The Company is well positioned financially to execute on its 2026 capital expenditure program and strategic growth plans.
The following table summarizes selected highlights for the three months ended March 31, 2026 and March 31, 2025:
Three months ended March 31
(CA$ thousands, except as otherwise noted)
2026
2025
%
FINANCIAL HIGHLIGHTS
Oil and gas sales
47,549
34,685
37
Net income loss and comprehensive loss
(9,560)
(394)
nm
$ per common share, basic and diluted
(0.02)
(0.00)
-
Cash provided by operating activities
25,364
15,695
62
Adjusted Funds Flow (1)
24,939
15,983
56
$ per common share, basic and diluted (1)
0.04
0.03
33
Capital Expenditures before A&D (1)
54,645
96,285
(43)
Acquisitions, net of dispositions
66,278
(15,724)
nm
Total assets
641,271
461,755
39
Net Debt (1)
118,644
92,513
28
Shareholders' equity
376,811
275,744
37
Common shares outstanding (000s), end of period (2)
691,576
595,675
16
OPERATING HIGHLIGHTS AND NETBACKS (5)
Average daily production
Crude oil (bbls/d)
3,911
2,779
41
Condensate (bbls/d) (3)
225
299
(25)
Natural gas liquids (bbls/d) (3)
958
306
213
Natural gas (mcf/d)
54,855
39,540
39
BOE/d
14,237
9,974
43
% Liquids (4)
36 %
34 %
6
Average realized prices, before financial instruments
