Logan Energy Corp. press release

LOGAN ENERGY CORP. ANNOUNCES 2025 FINANCIAL RESULTS AND PROVIDES AN OPERATIONS UPDATE

2026-03-18

TSXV - TSX Venture Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada · Corporate Finance

Canada NewsWire

CALGARY, AB, March 18, 2026/CNW/ -Logan Energy Corp. (TSXV: LGN) ("Logan" or the "Company") is pleased to announce its operating and financial results for the fourth quarter and year ended December 31, 2025 and to provide an operations update.

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Selected financial and operational information set out below should be read in conjunction with the Company's audited annual financial statements and related management's discussion and analysis ("MD&A") as at and for the years ended December 31, 2025 and 2024. In addition, readers are also directed to the Company's Annual Information Form ("AIF") for the year ended December 31, 2025, dated March 18, 2026. These documents are filed on SEDAR+ at www.sedarplus.caand 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".

MESSAGE TO SHAREHOLDERS

"In 2025, Logan made meaningful progress executing its business plan. Growing at our current pace during a period of weaker commodity prices is not without challenge, yet we delivered strong operational and financial results. Annual average production increased by 55% or 26% on a per-share basis, while we maintained a disciplined balance sheet. Operating and transportation costs declined by over 20% per BOE, and proved and probable reserves grew by 31%, reinforcing the quality and durability of our asset base.

A key milestone during the year was the successful construction and start‑up of the Pouce Coupe 4‑19 facility. Ownership and operation of this infrastructure is of strategic importance for Logan. It provides the processing capacity required to support our development plans at Pouce Coupe, while structurally improving capital efficiency, operating costs, and netbacks. This investment enhances our ability to grow organically and capture greater value per barrel over the long-term.

_Looking ahead to 2026, we see significant opportunity. High‑quality Montney inventory and scalable, infrastructure‑backed platforms are becoming increasingly scarce, and we believe Logan is building one of the few remaining growth‑oriented positions of meaningful scale. Our focus remains on executing our ambitious organic growth plan, while maintaining the flexibility to opportunistically expand our asset base through accretive acquisitions. As our footprint, infrastructure ownership, and inventory depth continue to mature, we believe Logan is creating a platform that will be increasingly strategic and highly coveted by others."_commented Richard McHardy, CEO of Logan.

2025 FINANCIAL AND OPERATING HIGHLIGHTS

Logan delivered record quarterly average production of 15,241 BOE per day (39% liquids), up 60% from 9,526 BOE per day (32% liquids) in the fourth quarter of 2024. Annual average production of 13,088 BOE per day (39% liquids) in 2025 increased 55% from 8,447 BOE per day (34% liquids) in the prior year. The Company nearly doubled its crude oil production and increased its liquids weighting by 22% to average 39% of production in the fourth quarter of 2025 compared to 32% in fourth quarter of 2024. Year-over-year crude oil production increased by 84%, driving the Company's liquids weighting to average 39% in 2025 as compared to 34% in 2024. The Company achieved a 31% increase in its Operating Netback which averaged $25.12 per BOE (after hedging) in 2025. In addition to realizing a significant reduction of per unit operating, transportation and royalty expenses, the improvement in Operating Netback was achieved through focused growth of the Company's oil/liquids weighted assets, which, together with stronger AECO natural gas benchmark pricing, mitigated the impact of lower crude oil benchmark pricing on Logan's average realized price for 2025 compared to 2024. The Company's Operating Netback averaged $25.09 per BOE (after hedging) in the fourth quarter of 2025, up 21% from 2024. Year-over-year Adjusted Funds Flow reached a record $105.9 million in 2025, doubling from $52.9 million in 2024. Adjusted Funds Flow was $31.6 million for the quarter ended December 31, 2025, up 89% from $16.7 million in the quarter ended December 31, 2024. The Company's drilling campaign for 2025 onstream wells included 18 (16.0 net) wells completed and brought on production during the first nine months of 2025. Logan brought onstream 9 (9.0 net) wells at Pouce Coupe, 8 (6.0 net) wells at Simonette, and an evaluation well targeting the Duvernay at Ante Creek. In the fourth quarter, the Company commenced its winter drilling program, drilling 2 (2.0 net) wells at Flatrock and spudding 1 (0.7 net) Simonette Wilrich well. Capital expenditures before A&D were $18.1 million and $208.2 million for the three months and year ended December 31, 2025, respectively. Annual capital expenditures include the construction and commissioning of the Company's 40 mmcf/d gas plant, battery and compression facilities at Pouce Coupe, liquids and water handling infrastructure at Simonette, as well as other facility debottlenecking projects. Subsequent to year end, on March 10, 2026, Logan closed the acquisition of certain crude oil and natural gas assets located in the Simonette area for a cash purchase price of $62.5 million ($66.3 million after estimated closing adjustments) (the "Acquisition"). Logan previously acquired a 50% operated working interest in the Simonette assets on December 17, 2024. The Acquisition strategically consolidates these Montney-focused joint interest partner lands to a 100% working interest and includes incremental Deep Basin lands offsetting Simonette in the Bilbo and Leland areas of Alberta. Logan remains committed to maintaining a strong balance sheet: As of December 31, 2025, Logan had Net Debt of $88.6 million or 0.7 times its annualized Adjusted Funds Flow for the fourth quarter. Subsequent to the quarter the Company expanded its $150.0 million revolving credit facility to $250.0 million concurrent with the Acquisition. On March 10, 2026, the Company raised $70.0 million of gross proceeds through an upsized bought-deal public offering and private placement of an aggregate 95.9 million common shares at $0.73 per share. Aggregate net proceeds of $66.8 million were used to reduce indebtedness incurred to fund the Acquisition and for working capital.

The following table summarizes selected highlights for the three months and years ended December 31, 2025 and December 31, 2024:

| | Three months ended December 31 | Year ended December 31 | | | | | | (CA$ thousands, except as otherwise noted) | 2025 | 2024 | % | 2025 | 2024 | % | | FINANCIAL HIGHLIGHTS | | | | | | | | Oil and gas sales | 47,335 | 29,013 | 63 | 171,778 | 110,536 | 55 | | Net income (loss) and comprehensive income (loss) | 11,671 | (150) | nm | 37,778 | 4,555 | 729 | | $ per common share, basic and diluted | 0.02 | (0.00) | nm | 0.06 | 0.01 | 500 | | Cash provided by operating activities | 33,487 | 12,004 | 179 | 107,972 | 50,431 | 114 | | Adjusted Funds Flow (1) | 31,607 | 16,689 | 89 | 105,939 | 52,919 | 100 | | $ per common share, basic (1) | 0.05 | 0.03 | 67 | 0.18 | 0.11 | 64 | | $ per common share, diluted (1) | 0.05 | 0.03 | 67 | 0.17 | 0.10 | 70 | | Capital Expenditures before A&D (1) | 18,103 | 38,588 | (53) | 208,247 | 151,243 | 38 | | Acquisitions, net of dispositions | (370) | 60,247 | nm | (42,772) | 60,597 | nm | | Total assets | 515,882 | 365,450 | 41 | 515,882 | 365,450 | 41 | | Net Debt (1) | 88,624 | 27,815 | 219 | 88,624 | 27,815 | 219 | | Shareholders' equity | 317,878 | 275,357 | 15 | 317,878 | 275,357 | 15 | | Common shares outstanding (000s), end of period (2) | 595,675 | 595,675 | - | 595,675 | 595,675 | - |

| | Three months ended December 31 | Year ended December 31 | | | | | | (CA$ thousands, except as otherwise noted) | 2025 | 2024 | % | 2025 | 2024 | % | | OPERATING HIGHLIGHTS AND NETBACKS (5) | | | | | | | | Average daily production | | | | | | | | Crude oil (bbls/d) | 4,653 | 2,373 | 96 | 4,216 | 2,296 | 84 | | Condensate (bbls/d) (3) | 136 | 146 | (7) | 235 | 189 | 24 | | Natural gas liquids (bbls/d) (3) | 1,120 | 510 | 120 | 716 | 384 | 86 | | Natural gas (mcf/d) | 55,993 | 38,982 | 44 | 47,526 | 33,470 | 42 | | BOE/d | 15,241 | 9,526 | 60 | 13,088 | 8,447 | 55 | | % Liquids(4) | 39 % | 32 % | 22 | 39 % | 34 % | 15 | | Average realized prices, before financial instruments | | | | | | | | Crude oil ($/bbl) | 70.92 | 89.19 | (20) | 79.55 | 92.86 | (14) | | Condensate ($/bbl) (3) | 68.72 | 87.42 | (21) | 80.13 | 91.79 | (13) | | Natural gas liquids ($/bbl) (3) | 37.30 | 54.67 | (32) | 40.93 | 53.37 | (23) | | Natural gas ($/mcf) | 2.38 | 1.62 | 47 | 1.83 | 1.52 | 20 | | Combined average ($/BOE) | 33.76 | 33.11 | 2 | 35.96 | 35.75 | 1 | | Netbacks ($/BOE) (5) | | | | | | | | Oil and gas sales | 33.76 | 33.11 | 2 | 35.96 | 35.75 | 1 | | Processing and other revenue | 0.87 | 1.00 | (13) | 0.90 | 1.07 | (16) | | Royalties | (2.45) | (2.61) | (6) | (2.59) | (3.11) | (17) | | Operating expenses | (8.51) | (9.41) | (10) | (9.68) | (12.26) | (21) | | Transportation expenses | (1.76) | (2.15) | (18) | (1.91) | (2.87) | (33) | | Operating Netback, before hedging (5) | 21.91 | 19.94 | 10 | 22.68 | 18.58 | 22 | | Realized gain on financial instruments | 3.18 | 0.85 | 274 | 2.44 | 0.55 | 344 | | Operating Netback, after hedging (5) | 25.09 | 20.79 | 21 | 25.12 | 19.13 | 31 | | General and administrative expenses | (1.31) | (1.31) | - | (1.44) | (1.81) | (20) | | Financing income (expenses) (6) | (1.22) | (0.33) | nm | (1.31) | 0.03 | nm | | Realized foreign exchange loss | (0.01) | - | - | - | - | - | | Settlement of decommissioning obligations | (0.01) | (0.11) | (91) | (0.19) | (0.23) | (17) | | Adjusted Funds Flow Netback (5) | 22.54 | 19.04 | 18 | 22.18 | 17.12 | 30 |

| (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 and amortization of upfront issue costs on bank debt. |

OPERATIONS UPDATE

Logan's 2026 capital program is well underway with two active drilling rigs, one at Pouce Coupe and the other at Simonette.

In Pouce Coupe:

The 3-15 Pad North Pouce (1.0 net):The well has been successfully drilled and completed targeting Lower Middle Montney (D1) gas. Installation of a compressor is nearly complete and the well is expected to be brought on production prior to the end of March. 6-18 Pad Upper Montney (1.0 net well): This well is Logan's first test of the Upper Montney zone at Pouce Coupe, a secondary gas target on the asset. The well was drilled, completed and equipped with a 2,600m horizontal at a cost of approximately $5.4 million. Production averaged approximately 4.2 MMcf/d of natural gas, 95 bbls/d of NGLs, and 60 bbls/d of condensate (850 boe/d, 18% liquids) over the first 30 days (IP30). These early results support the economic potential of the Upper Montney when developed utilizing Logan's existing owned infrastructure and the relatively low capital costs. There are 20 identified follow up locations which have been added to Logan's inventory. 7-12 Pad (3.0 net wells):Three wells targeting Lower Middle Montney (D1) oil have been drilled and are awaiting completion later this spring. First production from the pad is expected near the end of the second quarter of 2026. 15-15 Pad (3.0 net wells): The drilling rig is currently drilling the first of three planned Lower Middle Montney (D1) oil wells on this pad. Completion operations are scheduled for this spring, with first production expected near the end of the second quarter of 2026.

In Simonette:

16-17 Pad Wilrich (0.7 net well):Beginning in December 2025, Logan drilled its first well into the Simonette Spirit River (Wilrich) play. Completion of the well was delayed into February and the well was brought online in early March. 6-9 Pad (3.0 net wells):Three wells targeting the Lower Montney oil play have been drilled. Completions are planned for the spring with first production at the end of the third quarter once the Simonette South Battery is onstream. 16-13 Pad (2.0 net wells):The rig will move to 16-13 next to drill this pad through the summer. Simonette South Battery (11-22):Equipment procurement for the South Simonette Oil Battery is substantially complete, with construction planned for this summer.

In Flatrock, Logan is preparing to complete and test its first well this summer.

SUBSEQUENT EVENTS

On March 18, 2026, the Company's Board of Directors approved the grant of an aggregate of approximately 6.8 million restricted share awards ("RSAs"), of which 5.4 million were granted to officers and directors of the Company. RSAs granted to officers and directors cliff vest on the third anniversary of the grant date. RSAs granted to non-executive employees vest as to one-third on each of the first, second and third anniversaries of the grant date.

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 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 March 2026 and can be accessed on the Company's website at www.loganenergycorp.com.

READER ADVISORIES

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 March 18, 2026, 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 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

Throughout this press release, references to "Net Debt" 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 assets less current liabilities, excluding derivative financial instrument assets and liabilities and provisions and other liabilities. As at December 31, 2025, Adjusted Working Capital includes cash and cash equivalents, accounts receivable, prepaids and deposits, and accounts payable and accrued liabilities.

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.