Cavvy Energy (CVVY) Corporate presentation summary

Corporate overview and strategy

• TSX-listed energy company with upstream and midstream assets in the Canadian foothills, focusing on natural gas and sulphur production, with a 2026 production guidance of 22,000–24,500 boe/d and 1,000–1,150 mt/d sulphur.

• Strategic pivot completed from LNG to western Canadian upstream and midstream operations, including a rebrand and sale of legacy LNG assets.

• Simplified business model prioritizes facility reliability, cost reduction, and debt deleveraging, with a focus on growing midstream and third-party processing revenues.

• Executive team and board bring over 130 years of combined energy sector experience, with backgrounds in operations, finance, and corporate governance.

Financial performance and guidance

• FY 2025 production averaged 23,904 boe/d (80% gas) and 1,078 mt/d sulphur, with operating costs reduced to $18.88/boe and net operating income of $110.5MM.

• Funds flow from operations rose to $60.9MM in 2025, with net debt reduced to $170.6MM, down $26.9MM year-over-year.

• 2026 guidance targets NOI of $125–$140MM, capital expenditures of $35–$40MM, and further debt reduction to $110–$125MM.

• Majority of 2026 free cash flow will be directed to debt repayment, supported by strong sulphur and third-party processing revenues.

Asset base and operations

• Operates three deep-cut sour gas plants with over 400 MMcf/d capacity and 110 MMcf/d excess capacity, enabling growth in third-party processing.

• Holds 196 MMboe proved reserves and 396,000 net undeveloped acres, with a long reserve life index of 25.8 years and a low base decline rate of 5.9%.

• Over 300 high-impact drilling locations identified, providing a runway for organic growth and reserves expansion.

• Third-party processing volumes and revenues have grown for five consecutive quarters, enhancing plant efficiency and diversifying income.