Cardinal Energy (CJ) investor relations material

Financial and operational highlights

• Market capitalization stands at $2.0 billion with 176 million shares outstanding and an annual dividend of $0.72 per share.

• 2026 production guidance is 25,000–25,500 boe/d, with 93% oil and liquids weighting and a low estimated annual production decline of -10%.

• 2026 capital expenditures are budgeted at $205 million, with $20 million allocated to asset retirement obligations, more than double regulatory requirements.

• Over $690 million has been returned to shareholders via dividends since inception, reflecting a strong return of capital focus.

• Insider ownership is 22%, and tax pools total $1.2 billion, supporting future financial flexibility.

Asset base and growth strategy

• Portfolio includes long-life, low-decline conventional oil assets and a growing suite of thermal projects, notably the Reford SAGD trend in Saskatchewan.

• Reford 1 SAGD project is fully online, exceeding nameplate capacity at over 6,500 bbl/d, and Reford 2 is under construction with first steam expected in summer 2027.

• Multiple development targets across Saskatchewan, North, Central, and South Alberta, with enhanced recovery schemes and horizontal multi-lateral drilling.

• Thermal project pipeline includes Kelfield and additional SAGD projects, with potential to double corporate production.

• Asset retirement and environmental stewardship are prioritized, with 702 wells abandoned and 59 facilities decommissioned since 2020.

Capital allocation and project economics

• 2026 capital budget increased to $225 million, with expanded drilling (18.1 net wells vs. 6.1 in 2025) and a focus on both conventional and thermal assets.

• Reford 1 delivered two months ahead of schedule and on budget, with 60% of costs under fixed-price contracts and a best-in-class steam-oil ratio below 2.5x.

• Economics for a 6,000 bbl/d SAGD project show NPV10 up to $900 million and IRR up to 60% at higher oil prices, with payout periods as short as 18 months.

• Adjusted funds flow is highly sensitive to oil prices, increasing by $10 million for every $1/bbl change in WTI; significant free cash flow is expected at current prices.

• Free cash flow priorities include debt repayment, funding Reford 2, accelerating future project delineation, and increasing ARO spending.