Canada's Cavvy Energy Q4 net operating income rises

Overview

• Canada energy producer's Q4 production rose 2% yr/yr to 23,003 boe/d

• Q4 net operating income was C$20.8 mln, vs C$13.7 mln yr ago

• Annual production fell 14% due to voluntary shut-ins at third-party gas facilities

Outlook

• Cavvy sees 2026 production at 22,000-24,500 boe/d and sulphur output at 1,000-1,150 mt/d

• Company expects 2026 net operating income of C$125 mln to C$140 mln

• Cavvy targets year-end 2026 total debt of C$110 mln to C$125 mln

Result Drivers

• THIRD-PARTY PROCESSING - Higher third-party raw gas processing volumes and new contracts drove a 135% increase in related revenue in Q4

• NATURAL GAS PRODUCTION RESTARTS - Restarted 2,770 mcf/d of natural gas in Northeast BC as AECO pricing rose above break even

Company press release: ID:nGNX4ZT9x2

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the integrated oil & gas peer group is "buy"

• Wall Street's median 12-month price target for Cavvy Energy Ltd is C$1.50, about 20% above its March 18 closing price of C$1.25

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