Overview

* Cavvy Q3 2025 net operating income rises to $30.6 mln, but reports net loss of $10.1 mln

* Company increased third-party gas processing volumes by 105% from Q3 2024

* Cavvy announces 2026 sulphur pricing agreement with downside protection

Outlook

* Cavvy raises 2025 NOI guidance to $100 mln-$110 mln from $75 mln-$95 mln

* Company maintains 2025 production guidance at 23,000-25,000 boe/d

* Cavvy not planning new development drilling in 2025 due to gas prices

Result Drivers

* THIRD-PARTY PROCESSING - Cavvy increased third-party raw gas processing volumes by 105% compared to Q3 2024, boosting revenue

* HEDGING GAINS - Hedging gains offset challenges in the AECO market, supporting net operating income

* SULPHUR PRICING AGREEMENT - New agreement provides downside protection and upside potential for 2026 sulphur sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS -C$0.03

Q3 Net -C$10.09

Income mln

Q3 Capex C$4.02

mln

Q3 Net -C$163.7

Debt 0 mln

Q3 C$30.63

Operatin mln

g Income

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)