Lycos Energy (LCX) Q1 2026 earnings summary

Executive summary

• Q1 2026 average production was 1,653 boe/d (95% crude oil), down 59% year-over-year due to prior asset dispositions and lower capital spending.

• Adjusted funds flow from operations was $4.6 million, a 63% decrease from Q1 2025.

• Net income swung to a loss of $2.0 million from a profit of $2.4 million in Q1 2025.

• Business combination with Mahikan Oil Corporation closed on March 30, 2026, with 29.8 million shares issued and Mahikan debt assumed.

• $30 million raised via non-brokered private placement at $1.20 per share concurrent with the Mahikan transaction.

Financial highlights

• Total petroleum and natural gas sales were $10.8 million, down 60% year-over-year.

• Cash flow from operating activities was $6.8 million, down 46% year-over-year.

• Capital expenditures were $2.0 million, a 91% decrease from Q1 2025.

• Net operating expenses improved to $21.22/boe from $22.96/boe year-over-year.

• Exited Q1 2026 with positive adjusted working capital of $13.9 million.

Outlook and guidance

• Production remained stable sequentially from Q4 2025, with new wells expected to contribute in Q2 2026.

• Strong early results from HVSM drilling program may lead to enhanced H2 2026 capital plans.

• Ongoing evaluation of new GP formation wells and further updates anticipated.