Cavvy Releases Q3 2025 Financial and Operating Results, Executes Forward Price Agreement for 2026 Sulphur Sales, and Increases 2025 Guidance

Not For Distribution to United States News Wire Services or Dissemination in United States

CALGARY, Alberta, Nov. 06, 2025 (GLOBE NEWSWIRE) — Cavvy Energy Ltd. (“Cavvy” or the “Company”) (TSX:CVVY) is pleased to announce the release of its third quarter 2025 financial and operating results. The Company produced 23,956 boe/d and generated Net Operating Income1 (“NOI”) of $30.6 million during the third quarter of 2025. Management’s discussion and analysis (“MD&A”) and unaudited interim condensed consolidated financial statements and notes for the quarter ended September 30, 2025 are available at www.cavvyenergy.com and on SEDAR+ at www.sedarplus.ca.

“Cavvy delivered another very strong quarter” stated Darcy Reding, President and CEO. “We generated over $30 million of net operating income, supported by 14% growth in third party processing volumes compared to Q2, while hedging gains helped to offset a very challenging summer AECO market. We are also very pleased to announce the execution of a structured forward pricing agreement for our 2026 sulphur sales which provides downside revenue protection while preserving meaningful upside participation in the market if the current strong spot sulphur price persists into 2026.”

Q3 2025 HIGHLIGHTS

Generated NOI of $30.6 million ($0.11 per basic and fully diluted share) and Funds Flow from Operations1 of $12.9 million ($0.04 per basic and fully diluted share)
Increased third-party raw gas processing volumes to 136.1 MMcf/d, a 69.6 MMcf/d (105%) increase compared to Q3 2024. This resulted in an increase of $4.8 million (87%) in third-party processing and marketing revenue for the quarter compared to Q3 2024
Reduced Net Debt1 by $3.2 million from Q2 2025 to $163.7 million
Reduced operating expenses by $1.8 million (5%) to $36.7 million compared to Q3 2024
Produced 23,956 boe/d (80% natural gas), up 4% from Q3 2024
Produced 1,120 mt/d of sulphur during Q3 2025, 85% of which was sold under the below-market contract that expires December 31, 2025

Select Quarterly Figures
2025
2024
2023

($ 000s unless otherwise noted)
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4

Production
 
 
 
 
 
 
 
 

Natural gas (Mcf/d)
115,467
 
126,198
 
105,338
 
111,787
 
115,196
 
157,077
 
175,356
 
174,211
 

Condensate (bbl/d)
2,258
 
2,507
 
2,454
 
2,149
 
2,191
 
2,472
 
2,781
 
2,384
 

NGLs (bbl/d)
2,454
 
2,524
 
2,574
 
1,788
 
1,726
 
2,210
 
2,613
 
1,921
 

Sulphur (mt/d)
1,120
 
1,128
 
1,076
 
968
 
1,444
 
1,376
 
1,491
 
1,284
 

Total production (boe/d) (1)
23,956
 
26,064
 
22,584
 
22,568
 
23,116
 
30,861
 
34,620
 
33,340
 

Third-party volumes processed (Mcf/d) (2)
136,134
 
119,761
 
81,777
 
71,497
 
66,518
 
53,763
 
58,423
 
67,350
 

Financial
 
 
 
 
 
 
 
 

Natural gas price ($/Mcf)
 
 
 
 
 
 
 
 

Realized before Risk Management Contracts (3)
0.66
 
1.73
 
2.24
 
1.55
 
0.77
 
1.14
 
2.53
 
2.32
 

Realized after Risk Management Contracts (3)
3.25
 
3.23
 
3.58
 
3.36
 
3.43
 
2.71
 
3.21
 
3.12
 

Benchmark natural gas price (AECO)
0.62
 
1.72
 
2.14
 
1.46
 
0.68
 
1.17
 
2.48
 
2.29
 

Condensate price ($/bbl)
 
 
 
 
 
 
 
 

Realized before Risk Management Contracts (3)
82.65
 
84.60
 
95.15
 
94.87
 
92.13
 
99.96
 
91.18
 
97.15
 

Realized after Risk Management Contracts (3)
83.66
 
85.88
 
88.29
 
90.61
 
84.61
 
87.75
 
84.49
 
86.34
 

Benchmark condensate price (C5 at Edmonton)
86.58
 
87.71