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Highlights

  • Journey Energy reported Q2 2025 sales volumes of 10,950 boe/d with 59% liquids.
  • Adjusted Funds Flow rose 67% year over year to CAD 15.9 million in Q2 2025.
  • Operating expenses fell 25% from the prior year to CAD 17.58 per boe in the quarter.

Journey Energy Inc. (TSX:JOY) reported financial and operating results for the second quarter ended June 30, 2025, with higher year-over-year cash flow and lower operating costs despite commodity price declines.

Sales volumes in the quarter averaged 10,950 boe/d, compared to 11,235 boe/d in the same period of 2024. Liquids accounted for 59% of total production, up from 54% a year earlier, as new Duvernay wells increased oil and NGL output. Crude oil represented 49% of volumes but contributed 81% of corporate revenue in the quarter.

Adjusted Funds Flow was CAD 15.9 million, a 67% increase from CAD 9.5 million in the second quarter of 2024. On a per-share basis, this was CAD 0.24 basic and diluted. Average realized commodity prices were 8% lower year over year, with oil down 19% and NGLs down 14%, while natural gas prices rose 92%.

Operating expenses averaged CAD 17.58 per boe, down from CAD 23.48 per boe in the same period of 2024, reflecting reduced workover and turnaround spending, and the disposition of higher-cost assets earlier in the year. Royalty expenses fell to CAD 7.24 per boe from CAD 10.05 per boe a year earlier, aided by lower prices and favorable Crown royalty rates on new Duvernay wells. General and administrative costs were CAD 2.5 million, down from CAD 3.7 million in the prior-year quarter.

Net income for the quarter was CAD 4.1 million, compared to a net loss of CAD 2.3 million in Q2 2024. Interest expense declined to CAD 1.4 million from CAD 1.9 million a year earlier, due to lower outstanding debt balances.

Capital spending in the quarter totaled CAD 26.8 million, with CAD 21.7 million directed to the Duvernay program and CAD 2.1 million for power projects at Gilby and Mazeppa. Three Duvernay wells were brought on production during the quarter, with initial 30-day production rates averaging over 1,200 boe/d per well, weighted about 86% to liquids.

Subsequent to quarter-end, Journey agreed to sell two minor producing assets for CAD 3.2 million, expected to close in the third quarter, reducing asset retirement obligations by approximately CAD 7.2 million. The company exited the quarter with net debt of CAD 64.5 million and a net debt to annualized Adjusted Funds Flow ratio of 1.0 times.