Overview

* Cardinal Energy Q2 adjusted funds flow falls 40% yr/yr, driven by lower commodity prices

* Net operating expenses per boe decreased 5% due to reduced maintenance costs

* Company's net debt rises to C$227.1 million at the end of thesecond quarter

Outlook

* Cardinal expects first steam at Reford later in Q3

* Company plans 6,000 bbl/d production in early Q1 2026

* Cardinal to drill five stratigraphic test wells in 2025

Result Drivers

* PRODUCTION OPTIMIZATION - Production exceeded budget due to optimization at Midale and Nipisi despite forest fires and outages

* REFORD SAGD INVESTMENT - Significant capital directed to Reford SAGD project, now in testing phase, on budget and schedule

* COST MANAGEMENT - Net operating expenses decreased 5% due to reduced maintenance and lower electricity costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$127.38

Petroleu mln

m and

Natural

Gas

Revenue

Q2 Cash C$43.59

Flow mln

from

Operatin

g

Activiti

es

Q2 -C$23,04

Operatin 0

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

* Wall Street's median 12-month price target for Cardinal Energy Ltd (Alberta) ( CRLFF ) is C$7.00, about 6.6% below its July 30 closing price of C$7.46

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(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.)