Cavvy Releases Q2 2025 Financial and Operating Results

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

CALGARY, Alberta, Aug. 12, 2025 (GLOBE NEWSWIRE) — Cavvy Energy Ltd. (“Cavvy” or the “Company”) (TSX:CVVY) is pleased to announce the release of its second quarter 2025 financial and operating results. The Company produced 26,064 boe/d and generated Net Operating Income¹ (“NOI”) of $26.5 million during the second quarter of 2025. Management’s discussion and analysis (“MD&A”) and unaudited interim condensed consolidated financial statements and notes for the quarter ended June 30, 2025 are available at www.cavvyenergy.com and on SEDAR+ at www.sedarplus.ca.

Darcy Reding, President and CEO stated, “Growing shareholder value remains the top priority for our team. Compared to the second quarter of 2024, and aligned with our strategic objectives, we grew third party processing volumes and revenue by over 120% and continued to optimize our business, including by keeping certain dry gas producing areas shut-in because they are uneconomic at current natural gas prices. Our continuing focus on lowering our debt resulted in net debt reduction of $18.6 million, to $166.9 million. As we head towards the end of 2025 our team remains focused on debt reduction, continuous improvement to our cost structure, filling our gas processing facilities, preparing for the expiration of a long-term fixed price sulphur marketing agreement on December 31, 2025, and evaluating opportunities for growth.”

Q2 2025 HIGHLIGHTS

• Generated NOI of $26.5 million ($0.09 per basic and fully diluted share) and Funds Flow from Operations¹ of $14.5 million ($0.05 per basic and fully diluted share).
• Reduced Net Debt¹ by $18.6 million from Q1 2025 to $166.9 million.
• Reduced operating expenses by $12.6 million (24%) compared to Q2 2024 to $40.4 million, reflecting both the shut-in of uneconomic production and the continued reduction of operating cost structure.
• Increased third-party processing volumes by 66.0 MMcf/d (123%) compared to Q2 2024 to 119.8 MMcf/d. This yielded higher third-party processing and marketing revenue of $9.6 million, an increase of $5.4 million (129%) to compared to Q2 2024.
• Produced 26,064 boe/d (81% natural gas), down 16% from Q2 2024 mainly due to the voluntary shut-in of approximately 9,000 boe/d of uneconomic dry gas production from Q3 2024 through Q2 2025.
• Completed corporate rebranding to Cavvy Energy Ltd. on May 12, 2025, capping our strategic pivot to affirm our identity as a western Canadian based energy company.

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^{1 Refer to the “non-GAAP measures” section of the Company’s MD&A.}