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)