Lycos Energy (LCX) investor relations material

Executive summary

• Q2 2026 production averaged 1,887 boe/d (96% crude oil), up 14% sequentially from Q1 2026, but down 52% year-over-year due to 2025 asset dispositions and natural declines, partially offset by Mahikan asset contributions.

• Adjusted funds flow from operations was $7.3 million, a 60% increase from Q1 2026, driven by higher realized pricing and production volumes.

• Seven wells were drilled and completed in the Moonshine area, with most brought on stream late in Q2; full production impact expected in Q3 2026.

• Exited Q2 2026 with positive adjusted working capital of $8.4 million.

Financial highlights

• Total petroleum and natural gas sales for Q2 2026 were $16.8 million, down 28% year-over-year; six-month sales were $27.6 million, down 45% year-over-year.

• Cash flow from operating activities for Q2 2026 was $16.7 million, up 99% year-over-year; six-month cash flow was $23.5 million, up 12%.

• Adjusted funds flow from operations for Q2 2026 was $7.3 million, down 24% year-over-year; six-month adjusted funds flow was $11.9 million, down 46%.

• Net income for Q2 2026 was $3.5 million, compared to a net loss of $54.6 million in Q2 2025, which included significant non-cash losses.

• Capital expenditures for Q2 2026 were $13.9 million, up 160% year-over-year.

Outlook and guidance

• Full benefit of Moonshine Q2 drilling program expected in Q3 2026.

• Current production is approximately 3,600 boe/d (96% crude oil) following the Provost Acquisition and Moonshine program.

• Ongoing focus on capital efficiency and operational improvements in Moonshine and new assets.