Yangarra Announces 2025 Second Quarter Financial & Operating Results and Increased Banking Facility

CALGARY, AB, July 30, 2025 /CNW/ - Yangarra Resources Ltd. ("Yangarra" or the "Company") (TSX:YGR) announces its financial and operating results for the three and six months ended June 30, 2025.

Second Quarter Highlights

Funds flow from operations of $15.5 million ($0.14 per share, fully diluted), a decrease of 28% from the same period in 2024

Oil and gas sales of $29.5 million, a decrease of 17% from the same period in 2024

Adjusted EBITDA of $16.5 million ($0.15 per share, fully diluted), a decrease of 26% from the same period in 2024

Net income of $6.8 million ($0.06 per share, fully diluted), a decrease of 28% from the same period in 2024 

Average production of 10,560 boe/d (42% liquids), a 7% decrease from the same period in 2024

Operating costs of $8.87/boe (including $3.49/boe of transportation costs)

Operating netback of $19.54/boe

Operating margin of 64% and funds flow from operations margin of 53% 

G&A costs of $1.26/boe

Royalties at 7% of oil and gas revenue

All in cash costs of $14.60/boe

Capital expenditures of $15.0 million

Adjusted net debt to second quarter annualized funds flow from operations of 1.62: 1

Adjusted net debt was $100.7 million

Retained earnings of $350.1 million

Decommissioning liabilities of $17.1 million (discounted)

Operations Update

The four wells drilled in the first quarter were completed in April and were put on production in early May. Yangarra elected to not drill any new wells in the second quarter due to weak AECO pricing and volatile WTI pricing. The drill program is expected to recommence in early August.

Q3 production will be negatively affected by a turn-around at a third-party facility.  As a result, guidance is reduced to an annual average of 10,300, 10,800 boe/d for 2025.  

The drill program in the second half of 2025 may include drilling up to 10 wells but will be dependent on commodity pricing and maintaining the $60 million capital budget.

The strategic connection of south Chambers to north Chambers was completed by the Yangarra OFS group in the quarter via a 6.7 km pipeline tying in the farm-in lands in south Chambers to Yangarra's facility at 3-11-40-10W5, including a bore under the North Saskatchewan River.

Banking update

The Company completed its semi-annual banking review, and the syndicated senior credit facility was increased from $130 million to $140 million. The updated syndicate now consists of ATB Financial and ICBC Standard Bank, reflecting the exit of CIBC from the syndicate.

The Company's senior credit facility's term out and maturity dates were each extended by one year to May 29, 2026, and May 29, 2027, respectively. The hedging requirement period has been extended from December 2025 to June 2026. All other terms and covenants remain the same. The Company's next banking review is scheduled for November 30, 2025.

Financial Summary

2025

2024

Six Months Ended

Q2

Q1

Q2

2025

2024

Statements of Income and Comprehensive Income

Petroleum & natural gas sales

$        29,507

$        34,147

$        35,718

$        63,654

$        76,143

Income before tax

$          9,106

$          7,317

$        12,514

$        16,423

$        24,606

Net income

$          6,773

$          5,388

$          9,350

$        12,161

$        18,380

Net income per share - basic

$            0.07

$            0.05

$            0.09

$            0.12

$            0.19

Net income per share - diluted

$            0.06

$            0.05

$            0.09

$            0.11

$            0.18

Statements of Cash Flow

Funds flow from operations

$        15,499

$        20,002

$        21,411

$        35,501

$        45,671

Funds flow from operations per share - basic

$            0.15

$            0.20

$            0.22

$            0.35

$            0.47

Funds flow from operations per share - diluted

$            0.14

$            0.18

$            0.20

$            0.32

$            0.44

Cash flow from operating activities

$        13,907

$        19,713

$        19,315

$        33,620

$        41,439

Weighted average number of shares - basic

101,193

100,641

98,734

100,918

97,452

Weighted average number of shares - diluted

109,605

109,386

105,269

109,363

103,993

June 30, 2025

December 31, 2024

Statements of Financial Position

Property and equipment

$                 800,447

$             786,521

Total assets

$                 875,181

$             860,383

Working capital surplus (deficit)

$               (102,100)

$                 8,897

Adjusted net debt

$                 100,669

$             103,147

Shareholders equity

$                 584,652

$             569,628

Company Netbacks ($/boe)

2025

2024

Six Months Ended

Q2

Q1

Q2

2025

2024

Sales price

$           30.71

$          36.73

$           34.53

$           33.67

$           37.11

   Royalty expense

(2.07)

(2.29)

(1.90)

(2.17)

(2.24)

   Production costs

(5.37)

(5.15)

(6.65)

(5.26)

(6.45)

   Transportation costs

(3.49)

(3.21)

(1.89)

(3.35)

(1.80)

Field operating netback

19.78

26.08

24.09

22.89

26.62

  Realized gain (loss) on commodity contract settlement

(0.23)

(0.72)

(0.31)

(0.47)

(0.48)

Operating netback

19.55

25.37

23.78

22.41

26.14

   G&A

(1.26)

(1.32)

(1.22)

(1.29)

(1.54)

   Cash finance expenses

(2.17)

(2.56)

(1.86)

(2.37)

(2.60)

   Depletion and depreciation

(10.02)

(10.07)

(8.58)

(10.04)

(9.05)

   Non Cash - finance expenses

(0.35)

(0.39)

(0.47)

(0.36)

(0.32)