Cardinal Energy Ltd. posted a GAAP net loss of $0.18 per diluted share for the fourth quarter of 2025, alongside revenue of $129.5 million. The results reflect challenges from lower commodity prices, offset by record production levels.
Financial Highlights
Adjusted funds flow totaled $46.1 million ($0.28 per diluted share) in Q4, down 29% from the previous year. For the full year 2025, adjusted funds flow stood at $205.1 million ($1.27 per diluted share), a 23% decline year-over-year.
Cash flow from operating activities reached $43.5 million in the quarter and $206.8 million for the year. Capital expenditures amounted to $77.7 million in Q4, primarily for drilling and development, while full-year development capex was $76.5 million.
Net operating costs per boe improved slightly, decreasing 1% in Q4 and 3% annually. The company declared dividends of $116.5 million for 2025 ($0.72 per share), maintaining its payout strategy with a full-year ratio of 94%.
Production and Operations
Q4 production averaged a record 23,514 boe/d, up 7% from Q4 2024, driven by the Reford SAGD project entering its production phase. Full-year output held steady at 21,870 boe/d.
Netback per boe fell 27% to $25.87 in the quarter and 18% to $29.92 annually. Bank debt rose to $138.6 million by year-end, with net debt at $281.9 million.
Strategic Developments
Exploration and evaluation expenditures surged 64% to $136.5 million, focused on Reford SAGD completion and future thermal projects in Saskatchewan.
2026 Outlook
Management described 2025 as a transformational year, noting the Reford project’s impact on production growth, cost reductions, and long-term sustainability. The company plans to advance a second SAGD project in 2026, balancing shareholder returns via dividends with expansion opportunities.
