Canada's Cavvy Energy Q3 net operating income rises 25%
XLE•Cavvy Energy's third-quarter net operating income rose 25% year over year despite a 27% production drop. The company maintained its 2026 production guidance and expects net operating income of C$170 million to C$180 million.
1. Quarterly results
Cavvy Energy said third-quarter net operating income rose 25% year over year despite production falling 27%, as scheduled maintenance at the Caroline gas plant and an unscheduled Waterton outage reduced output. Record sulphur prices supported higher operating netbacks and funds flow from operations, which more than doubled year over year. The company reported C$8.67 million in net income and C$35.43 million in capital expenditures.
2. 2026 outlook
Cavvy maintained its 2026 production guidance of 22,000 to 23,500 boe/d and 1,000 to 1,100 metric tons per day of sulphur. It expects 2026 net operating income of C$170 million to C$180 million and normal, sustained run-times at major facilities through the fourth quarter and into 2027.
