Journey Energy (JOY) investor relations material

Strategic positioning and asset overview

• Holds a world-class Duvernay shale resource, funded by a stable, low-decline conventional production base and complemented by an emerging power generation business.

• Joint venture in the Duvernay with 30% interest, controlling 113 gross sections in a Tier 1 oil window, with highly economic well results and significant derisked inventory.

• Power assets include Countess (4 MW), Gilby (14.2 MW), and Mazeppa (16.2 MW), providing a structural hedge against operating costs and positioned for Alberta power market recovery.

• Expanding polymer flood at Medicine Hat enhances oil recovery, with 8 wells drilled and 34 more locations identified, generating strong free cash flow.

Financial performance and guidance

• 2025 production averaged 11,261 boe/d with 61% oil and NGLs; net debt reduced by 16% and adjusted funds flow increased by 37% despite lower oil prices.

• 2026 production guidance is 11,000–12,000 boe/d, with a capital program of $70–$85 million and a 15% corporate decline rate.

• Net debt projected at $50.6 million by end of 2025, with strong liquidity and 77% undrawn bank facility.

• Sensitivity analysis shows every $1/bbl WTI increase adds $1.5 million to annualized funds flow; every $0.20/mcf AECO increase adds $0.8 million.

Duvernay growth and economics

• Duvernay's share of production rose from 1% in 2024 to 14% in 2025, forecast to exceed 50% by 2030, significantly boosting margins and capital efficiency.

• 2026 Duvernay budget includes $35 million net for 8 new drills and 9 completions, plus $15 million for JV infrastructure.

• Single well Duvernay economics: $12 million DCET capex, 1,150 boe/d IP30, 70% IRR, 1.5-year payout, and $46.55/boe netback.

• Duvernay development plan targets 83 gross (24.9 net) wells through 2030, with asset self-funding by 2027 and a peak of 8,000 boe/d.