LOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND CASH FLOW WITH SECOND QUARTER 2025 RESULTS, OPERATIONS UPDATE AND MANAGEMENT UPDATE

Cision Canada

a day ago

CALGARY, AB, Aug. 12, 2025 /CNW/ - Logan Energy Corp. (TSXV: LGN) (" Logan" or the " Company") is pleased to announce its operating and financial results for the three and six months ended June 30, 2025, and to provide an operations update as well as an update on the Company's management team.
Selected financial and operational information set out below should be read in conjunction with the Company's unaudited interim financial statements and related management's discussion and analysis (" MD&A") as at and for the three and six months ended June 30, 2025 and 2024. These documents are filed on SEDAR+ at www.sedarplus.ca and are available on the Company's website at www.loganenergycorp.com. The highlights reported throughout this press release include certain non-GAAP measures and ratios which have been identified using capital letters and are defined herein. The reader is cautioned that these measures may not be directly comparable to other issuers; refer to additional information under the heading "Reader Advisories – Non-GAAP Measures and Ratios".
SECOND QUARTER 2025 HIGHLIGHTS
Logan reported record quarterly average production of 12,013 BOE per day (41% liquids) in the second quarter, up 20% from 9,974 BOE per day (34% liquids) in the first quarter and up 65% from 7,277 BOE per day (36% liquids) in the second quarter of 2024.
Production growth was achieved through successful execution of the Company's organic development program. Capital expenditures were $68.6 million for the three months ended June 30, 2025, or $42.4 million net of proceeds from dispositions.
At Simonette, Logan brought 2 (1.0 net) Lower Montney wells on production in April which were completed in the previous quarter.
At Pouce Coupe, Logan completed and brought on production a 5 (5.0 net) well pad in June. Additionally, the Company drilled and completed a 4 (4.0 net) well pad which was subsequently brought onstream in the third quarter.
During the quarter Logan completed construction of its 40 mmcf/d gas plant, battery and compression facilities at Pouce Coupe (the " 4-19 Facility"), as well as associated gathering and sales pipelines. The Company generated $26.0 million of cash proceeds through the previously announced sale of a 35% non-operated working interest in the 4-19 Facility which closed on May 30, 2025.
Logan realized a significant improvement in its Operating Netback and delivered record Adjusted Funds Flow for the quarter through its oil-weighted production growth together with lower cash costs.
The Company's Operating Netback after hedging averaged $27.86 per BOE in the second quarter, up 32% from $21.03 per BOE in the first quarter and up 81% from $15.38 per BOE in the same quarter of the previous year.
Adjusted Funds Flow was $27.2 million for the quarter ended June 30, 2025, up 70% from $16.0 million in the previous quarter and up 211% from $8.7 million in the comparative quarter ended June 30, 2024.
As of June 30, 2025, Logan had Net Debt of $107.9 million or 1.0 times its annualized Adjusted Funds Flow for the second quarter. The Company's Net Debt to Adjusted Funds Flow ratio is expected to moderate in the second half of 2025 as approximately 80% of Logan's budgeted capital expenditures were incurred in the first half of the year. Logan's credit facility borrowing base was increased to $150.0 million during the quarter.
The following table summarizes selected highlights for the three and six months ended June 30, 2025, and June 30, 2024:
Three months ended June 30
Six months ended June 30
(CA$ thousands, except as otherwise noted)
2025
2024
%
2025
2024
%
FINANCIAL HIGHLIGHTS
Oil and gas sales
41,992
26,544
58
76,677
50,974
50
Net income (loss) and comprehensive income (loss)
17,311
416
nm
16,917
(1,575)
nm
$ per common share, basic and diluted
0.03
0.00
-
0.03
(0.00)
-
Cash provided by operating activities
20,374
3,394
500
36,069
20,194
79
Adjusted Funds Flow (1)
27,170
8,744
211
43,153
18,589
132
$ per common share, basic (1)
0.05
0.02
150
0.07
0.04
75
$ per common share, diluted (1)
0.04
0.02
100
0.07
0.04
75
Capital Expenditures before A&D (1)
68,643
46,104
49
164,928
81,286
103
Acquisitions, net of dispositions
(26,230)
-
-
(41,954)
300
nm
Total assets
517,169
248,390
108
517,169
248,390
108
Net Debt (1)
107,865
19,604
450
107,865
19,604
450
Shareholders' equity
294,387
175,122
68
294,387
175,122
68
Common shares outstanding (000s), end of period (2)
595,675
465,537
28
595,675
465,537
28
OPERATING HIGHLIGHTS AND NETBACKS (5)
Average daily production
Crude oil (bbls/d)
4,255
2,148
98
3,521
1,965
79
Condensate (bbls/d) (3)
255
223
14
277
244
14
Natural gas liquids (bbls/d) (3)
360
250
44
333
270
23
Natural gas (mcf/d)
42,857
27,934
53
41,208
28,006
47
BOE/d
12,013
7,277
65
10,999
7,147
54
% Liquids (4)
41 %
36 %
14
38 %
35 %
9
Average realized prices, before financial instruments
Crude oil ($/bbl)
80.65
100.54
(20)
84.30
95.73
(12)
Condensate ($/bbl) (3)
77.41
99.44
(22)
82.12
93.68
(12)
Natural gas liquids ($/bbl) (3)
43.21
53.68
(20)
47.20
52.76
(11)
Natural gas ($/mcf)
1.94
1.44
35
2.14
1.96
9
Combined average ($/BOE)
38.41
40.09
(4)
38.52
39.19
(2)
Netbacks ($/BOE) (5)
Oil and gas sales
38.41
40.09
(4)
38.52
39.19
(2)
Processing and other revenue
0.65
1.04
(38)
0.66
1.20
(45)
Royalties
(2.01)
(4.35)
(54)
(2.80)
(3.77)
(26)
Operating expenses
(9.29)
(17.46)
(47)
(10.80)
(16.08)
(33)
Transportation expenses
(2.05)
(3.57)
(43)
(2.06)
(3.75)
(45)
Operating Netback, before hedging (5)
25.71
15.75
63
23.52
16.79
40
Realized gain (loss) on financial instruments
2.15
(0.37)
nm
1.26
(0.35)
nm
Operating Netback, after hedging (5)
27.86
15.38
81
24.78
16.44
51
General and administrative expenses
(1.56)
(2.33)
(33)
(1.62)
(2.35)
(31)
Financing income (expenses) (6)
(1.40)
0.35
nm
(1.08)
0.60
nm
Realized foreign exchange gain (loss)
(0.01)
0.01
nm
-
-
-
Settlement of decommissioning obligations
(0.04)
(0.20)
(80)
(0.40)
(0.39)
3
Adjusted Funds Flow Netback (5)
24.85
13.21
88
21.68
14.30
52
(1)
"Adjusted Funds Flow", "Capital Expenditures before A&D", and "Net Debt" do not have standardized meanings under IFRS Accounting Standards, refer to "Non-GAAP Measures and Ratios" section of this press release.
(2)
Refer to "Share Capital" section of this press release.
(3)
Condensate is a natural gas liquid (" NGL") as defined by NI 51-101. See "Other Measurements".
(4)
"Liquids" includes crude oil, condensate and NGLs.
(5)
"Netbacks" are non-GAAP financial ratios calculated per unit of production. "Operating Netback", and "Adjusted Funds Flow Netback" do not have standardized meanings under IFRS, refer to "Non-GAAP Measures and Ratios" section of this press release.
(6)
Excludes non-cash accretion of decommissioning obligations.
OPERATIONS UPDATE
The second quarter of 2025 was a very significant and successful operational quarter for Logan.
At Pouce Coupe, Logan completed construction and commissioning of its 4-19 Facility (Gordondale) and has since ramped asset production by bringing onstream 9 wells. The 4-19 Facility serves as a gas plant, oil battery and compression station capable of handling 40,000 mcf/d of gross raw natural gas, 7,000 bbls/d of oil and 11,000 bbls/d of water (~10,000 BOE per day of total asset throughput). This project was completed on an industry leading timeline and cost metrics of approximately nine months from final investment decision and $37 million of capital. Having this facility completed brings the Company's Pouce Coupe asset to full development whereby it is now a free cash flow engine for Logan capable of sustaining 8,000 to 10,000 BOE per day for 11 years with oil weighted inventory and over 20 years inclusive of the gas weighted inventory. The Company would like to thank its operations and engineering teams for the successful execution of this transformational project for Logan.
The 4-19 Facility was commissioned on May 30th and the five well "7-12" pad came onstream in June, after which volumes through the plant were ramped and have since reached over 8,000 BOE per day. With the fine tuning of the compressors and other minor facility components ongoing as well as the ramping volumes from the four well "14-17" pad, which is currently cleaning up, Logan expects to hit a peak of ~10,000 BOE per day at Pouce Coupe in the coming weeks contributing to an H2 2025 average forecast of ~16,000 BOE per day corporately.
Performance of the 7-12 pad has been very strong, averaging 650 bbls/d of oil, 20 bbls/d of NGLs and 2.2 mmcf/d of natural gas (1,030 BOE/d, 65% liquids) per well for the first 30 days on production. The 14-17 pad is currently cleaning up with less than 30 days of production to-date.
At Simonette, Logan has resumed drilling operations in the Lower Montney oil play. Logan has now drilled 2 (1.0 net) wells and expects to complete and bring these wells onstream in the fourth quarter of 2025.
Logan is pleased to report that it has successfully fracked its Duvernay appraisal well at Ante Creek. The frac placed well and according to design. Logan expects to bring the well onstream at the beginning of the fourth quarter. Ante Creek represents a high potential area of additional long term oil growth for Logan that is not currently included in Logan's growth plan.
MANAGEMENT UPDATE
Logan is pleased to announce the appointment of Ms. Linda Brown to the position of Interim Vice President, Finance and Chief Financial Officer to be effective November 1, 2025. Ms. Brown is assuming the role while Ashley Hohm, the Company's current Vice President, Finance and Chief Financial Officer, is expected to be on maternity leave starting on or about November 1, 2025. Ms. Brown is a Chartered Professional Accountant and has been the Controller of Logan since June 2023.
ABOUT LOGAN ENERGY CORP.
Logan is a growth-oriented exploration, development and production company formed through the spin-out of the early stage Montney assets of Spartan Delta Corp. Logan has three high quality and opportunity rich Montney assets located in the Simonette and Pouce Coupe areas of northwest Alberta and the Flatrock area of northeastern British Columbia. Additionally, the Company has recently established a position within the greater Kaybob Duvernay oil play with assets in the North Simonette, Ante Creek and Two Creeks areas. The management team brings proven leadership and a track record of generating excess returns in various business cycles.
Logan's corporate presentation has been updated as of August 2025 and can be accessed on the Company's website at www.loganenergycorp.com.
Non-GAAP Measures and Ratios
This press release contains certain financial measures and ratios which do not have standardized meanings prescribed by International Financial Reporting Standards as issued by the International Accounting Standards Board (" IFRS Accounting Standards"), also known as Canadian Generally Accepted Accounting Principles (" GAAP"). As these non-GAAP financial measures and ratios are commonly used in the oil and gas industry, Logan believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.
The non-GAAP measures and ratios used in this press release, represented by the capitalized and defined terms outlined below, are used by Logan as key measures of financial performance and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS.
The definitions below should be read in conjunction with the "Non-GAAP and Other Financial Measures" section of the Company's MD&A dated August 12, 2025, which includes discussion of the purpose and composition of the specified financial measures and detailed reconciliations to the most directly comparable GAAP financial measures.
Operating Income and Operating Netback
Operating Income, a non-GAAP financial measure, is a useful supplemental measure that provides an indication of the Company's ability to generate cash from field operations, prior to administrative overhead, financing and other business expenses. " Operating Income, before hedging" is calculated by Logan as oil and gas sales, net of royalties, plus processing and other revenue, less operating and transportation expenses. " Operating Income, after hedging" is calculated by adjusting Operating Income, before hedging for realized gains or losses on derivative financial instruments.
The Company refers to Operating Income expressed per unit of production as an " Operating Netback" and reports the Operating Netback before and after hedging, both of which are non-GAAP financial ratios. Logan considers Operating Netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices.
Adjusted Funds Flow
Cash provided by operating activities is the most directly comparable measure to Adjusted Funds Flow. " Adjusted Funds Flow" is reconciled to cash provided by operating activities by excluding changes in non-cash working capital, adding back transaction costs on acquisitions (if applicable). Logan utilizes Adjusted Funds Flow as a key performance measure in the Company's annual financial forecasts and public guidance.
The Company refers to Adjusted Funds Flow expressed per unit of production as an " Adjusted Funds Flow Netback".
Adjusted Funds Flow per share (" AFF per share")
AFF per share is a non-GAAP financial ratio used by the Logan as a key performance indicator. The basic and/or diluted weighted average common shares outstanding used in the calculation of AFF per share is calculated using the same methodology as net income per share.
Capital Expenditures before A&D
" Capital Expenditures before A&D" is used by Logan to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic drilling program. It includes capital expenditures on exploration and evaluation assets and property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities.
Net Debt (Surplus)
Throughout this press release, references to " Net Debt" or " Net Surplus" includes bank debt, net of " Adjusted Working Capital". Net Debt and Adjusted Working Capital are both non-GAAP financial measures. Adjusted Working Capital is calculated as current liabilities less current assets, excluding derivative financial instrument assets and liabilities and provisions and other liabilities. As at June 30, 2025, Adjusted Working Capital includes cash and cash equivalents, accounts receivable, prepaids and deposits, and accounts payable and accrued liabilities.
Net Debt to Adjusted Funds Flow Ratio
The Company monitors its capital structure and short-term financing requirements using a " Net Debt to Adjusted Funds Flow Ratio", which is a non-GAAP financial ratio calculated as the Company's Net Debt relative to its Adjusted Funds Flow, monitored on both a twelve month trailing basis for fiscal year, and annualized basis for the most recently completed quarter multiplied by a factor of 4. Management believes that this ratio provides investors with information to understand the Company's liquidity risk and its ability to repay bank debt and fund future capital expenditures.
Supplementary Financial Measures
The supplementary financial measures used in this press release (primarily average sales price per product type and certain per BOE and per share figures) are either a per unit disclosure of a corresponding GAAP measure, or a component of a corresponding GAAP measure, presented in the financial statements. Supplementary financial measures that are disclosed on a per unit basis are calculated by dividing the aggregate GAAP measure (or component thereof) by the applicable unit for the period. Supplementary financial measures that are disclosed on a component basis of a corresponding GAAP measure are a granular representation of a financial statement line item and are determined in accordance with GAAP.
Other Measurements
All dollar figures included herein are presented in Canadian dollars, unless otherwise noted. This press release contains various references to the abbreviation "BOE" which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (mcf) per barrel (bbl). The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices. Such abbreviation may be misleading, particularly if used in isolation.
References to "oil" or "crude oil" in this press release include light crude oil, medium crude oil, heavy oil and tight oil combined. NI 51-101 includes condensate within the product type of "natural gas liquids". References to "natural gas liquids" or "NGLs" include pentane, butane, propane and ethane. References to "gas" or "natural gas" relates to conventional natural gas. References to "liquids" includes crude oil, condensate and NGLs. The Company has disclosed "condensate" separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this presentation provides a more accurate description of its operations and results.
References in this press release to peak rates, first 30 days of production, producing day rates and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Logan.
Share Capital
Common shares of Logan trade on the TSX Venture Exchange (" TSXV") under the symbol "LGN".
As of June 30, 2025 and as of the date hereof, there were 595.7 million common shares outstanding. There are no preferred shares or special shares outstanding. Logan's convertible securities outstanding as of the date of this press release include: 64.3 million common share purchase warrants with an exercise price of $0.35 per share expiring July 12, 2028; and 41.0 million stock options with an exercise price of $0.78 per share and an average remaining term of 3.9 years.
Forward-Looking and Cautionary Statements
Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "outlook", "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (or grammatical variations or negatives thereof). Logan believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the business plan, objectives and strategy of Logan; the Company's opportunity rich assets; the success of the Company's 2025 drilling program based on initial results; the amount and timing of budgeted capital expenditures; the expectation that the Company's Net Debt to Adjusted Funds Flow ratio will moderate for the remainder of 2025; the 4-19 Facility, including the Company's expectations regarding production capacity, lifespan and anticipated cash flows; expected completions in the Lower Montney and timing thereof; the Company's intention to bring its Duvernay appraisal well onstream and timing thereof; and commodity hedging.
The forward-looking statements and information are based on certain key expectations and assumptions made by Logan, including, but not limited to, expectations and assumptions concerning the business plan of Logan, the timing and success of future drilling, development and completion activities and infrastructure projects, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Logan's properties, the successful integration of the recently acquired assets into Logan's operations, the successful application of drilling, completion and seismic technology, the Company's ability to secure sufficient amounts of water, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, future commodity prices, price differentials and the actual prices received for the Company's products, anticipated fluctuations in foreign exchange and interest rates, impact of inflation on costs, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners, general economic conditions, and the ability to source and complete acquisitions.
Although Logan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Logan can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations in commodity prices (including pursuant to determinations by the Organization of Petroleum Exporting Countries and other countries (collectively referred to as OPEC+) regarding production levels) and the risk of an extended period of low oil and natural gas prices; changes in industry regulations and legislation (including, but not limited to, tax laws, royalties, and environmental regulations); the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the demand and/or market price for the Company's products and/or otherwise adversely affects the Company; changes in the political landscape both domestically and abroad, wars (including ongoing military actions in the Middle East and between Russia and Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), risks associated with the oil and gas industry in general, stock market and financial system volatility, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to inclement and severe weather events and natural disasters, such as fire, drought and flooding, including in respect of safety, asset integrity and shutting-in production. The foregoing list is not exhaustive. Please refer to the MD&A and AIF for discussion of additional risk factors relating to Logan, which can be accessed on its SEDAR+ profile at www.sedarplus.ca. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Logan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
This press release contains future-oriented financial information and financial outlook information (collectively, " FOFI") about Logan's prospective results of operations and production and growth, Logan's H2 2025 average production forecast, the Company's H2 2025 Net Debt to Adjusted Funds Flow expectations, and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Logan's proposed business activities in 2025. Logan and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Logan disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, exchange rates, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the Company's key performance measures. The Company's actual results may differ materially from these estimates.
Abbreviations
SOURCE Logan Energy Corp.