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.
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.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".
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, 2025 2024 % 2025 2024 %
except as
otherwise noted)
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 Year ended December 31
31
(CA$ thousands, 2025 2024 % 2025 2024 %
except as otherwise
noted)
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.
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, initial production (including IP30), 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 December 31, 2025, there were 595.7 million common shares outstanding (691.6 million as of the date hereof). 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; 6.8 million RSAs; and 42.7 million stock options with an exercise price of $0.78 per share and an average remaining term of 3.3 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; production growth and liquids weighting; the ability to improve capital efficiencies, operating costs and netbacks; infrastructure benefits and value capture; the strategic importance and scarcity of Montney inventory; the success of the Company's 2026 drilling program based on initial results, including drilling and completion costs, the onstream timing of wells, expected production rates and the impact to economics of utilizing existing owned infrastructure; the success of the Company's growth plan including organic growth and opportunistic expansion of the Company's asset base through accretive acquisitions; management's expectations in respect of recently completed drilling operations; facility construction and commissioning timing; 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 (including pursuant to the Acquisition), 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 and volatility 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), 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 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 Iran, Lebanon and elsewhere in the Middle East and Russia's invasion of 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 weather and severe weather events and natural disasters, such as fire, drought, flooding and extreme hot or cold temperatures, 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
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