Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Cardinal recorded adjusted funds flow of CAD 49.4 million in Q2FY25, down from CAD 62.2 million in Q1.
  • Net debt rose to CAD 227.1 million as the Reford SAGD thermal project advanced into commissioning.
  • Quarterly average production reached 21,184 boe/d, exceeding budget despite limited drilling activity.

Cardinal Energy Ltd. (TSX:CJ) released its financial and operational results for the second quarter ended June 30, 2025. The company reported adjusted funds flow of CAD 49.4 million or CAD 0.31 per basic and diluted share, a decrease from CAD 62.2 million in the previous quarter. The decline was attributed to a 13 percent drop in realized commodity prices and lower production, partly offset by improved net operating and transportation costs.

During the quarter, average production was 21,184 barrels of oil equivalent per day, slightly above forecast despite the drilling of only one (1.0 net) oil well. Production benefited from optimization at Midale and Nipisi, which helped mitigate disruptions from forest fires and unplanned third-party outages.

Net operating expenses decreased 5 percent quarter-over-quarter to CAD 23.04 per boe, supported by reduced workover activity, lower infrastructure maintenance, and moderated electricity prices.

At the end of Q2 2025, net debt stood at CAD 227.1 million. The company had drawn CAD 94.6 million, or 39 percent, on its CAD 240 million credit facilities. Cardinal also completed CAD 12.7 million in conventional capital expenditures and allocated CAD 32.3 million to its thermal project at Reford, Saskatchewan. The Reford project has now entered the testing and commissioning stage, with first steam expected later in Q3.

The company paid CAD 28.9 million in dividends during the quarter, maintaining a payout ratio of 84 percent.

Cardinal plans to drill four additional conventional oil wells in the second half of 2025. While 98.5 percent of Reford-related capital has already been deployed, the company expects to begin reducing related debt by Q4 2025. For full-year 2025, Cardinal will continue to evaluate its capital strategy based on commodity price movements, with increased conventional development intensity anticipated in 2026.