Canada's Cardinal Energy Q2 adjusted funds flow jumps 150% on higher output

Cardinal Energy (Alberta)

28/07/2026 23:16

Overview
Canada oil and gas producer's Q2 revenue rose 82% yr/yr, driven by Reford 1 SAGD project
Adjusted funds flow for Q2 jumped 150% yr/yr, supported by higher oil prices and lower costs
Company reduced net debt by 39% from December 2025, increasing financial flexibility

Outlook
Cardinal expects to exit 2026 with net debt well below original projections
Company plans to expand its abandonment and reclamation budget to C$20 mln for 2026
Reford 2 SAGD project expected to begin contributing to revenues in Q4 2027

Result Drivers
REFORD 1 PRODUCTION - Co said Q2 production rose 21% yr/yr, mainly due to crude oil output from the Reford 1 SAGD project, which exceeded nameplate capacity
LOWER OPERATING COSTS - Co said net operating expenses per boe fell 12% yr/yr, reflecting lower cost Reford production and decreased carbon taxes and power prices
HIGHER OIL PRICES - Co said strong quarter for light, medium, and heavy crude oil prices contributed to higher adjusted funds flow

Company press release: ID:nNFC2ftVVt

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Petroleum and Natural Gas Revenue
 
C$231.64 mln
 
Q2 Cash Flow from Operating Activities
 
C$114.9 mln
 
Q2 Operating Expenses
 
-C$20,38
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "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$13.25, about 18.3% above its July 27 closing price of C$11.20
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 36 three months ago

Reuters Recommended Reads
July 28 - Canada's Tamarack Valley Q2 revenue rises on higher oil prices
July 27 - Canada's Topaz Energy raises 2026 production outlook after royalty revenue jumps
July 27 - Baker Hughes flags lower spending by oil and gas producers in 2026

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

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)