Canada's Cardinal Energy Q4 revenue falls on lower oil prices

Overview

• Canada oil and gas producer's Q4 petroleum and natural gas revenue fell 12% yr/yr on weaker oil prices

• Q4 adjusted funds flow dropped 29% yr/yr as commodity prices declined

• Quarterly production rose 7% yr/yr as Reford SAGD project began production phase

Outlook

• Cardinal Energy maintains 2026 budget with C$160 mln in capital spending

• Company expects 2026 average annual production of 25,000-25,500 boe/d

Result Drivers

• REFORD SAGD RAMP-UP - Record Q4 production driven by Reford SAGD project moving into production phase, with volumes arriving earlier than expected

• WEAKER OIL PRICES - Revenue and adjusted funds flow declined as lower WTI benchmark prices and wider differentials reduced realized pricing

Company press release: ID:nNFC3gvsPN

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "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) is C$9.50, about 9% below its March 12 closing price of C$10.44

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.