Cavvy Releases Q3 2025 Financial and Operating Results, Executes Forward Price Agreement for 2026 Sulphur Sales, and Increases 2025 Guidance

November 7, 2025

Record Third Party Processing, Robust Hedging Gains Drive Strong Cash Flow and Net Debt Reduction

CALGARY, ALBERTA –– Cavvy Energy Ltd. (“Cavvy” or the “Company”) (TSX:CVVY) is pleased to announce the release of its third quarter 2025 financial and operating results. The Company produced 23,956 boe/d and generated Net Operating Income1 (“NOI”) of $30.6 million during the third quarter of 2025.
Management’s discussion and analysis (“MD&A”) and unaudited interim condensed consolidated financial statements and notes for the quarter ended September 30, 2025 are available at www.cavvyenergy.com and on SEDAR+ at www.sedarplus.ca.

“Cavvy delivered another very strong quarter” stated Darcy Reding, President and CEO. “We generated over $30 million of net operating income, supported by 14% growth in third party processing volumes compared to Q2, while hedging gains helped to offset a very challenging summer AECO market. We are also very pleased to announce the execution of a structured forward pricing agreement for our 2026 sulphur sales which provides downside revenue protection while preserving meaningful upside participation in the market if the current strong spot sulphur price persists into 2026.”

Q3 2025 HIGHLIGHTS

• Generated NOI of $30.6 million ($0.11 per basic and fully diluted share) and Funds Flow from Operations1
  of $12.9 million ($0.04 per basic and fully diluted share)
• Increased third-party raw gas processing volumes to 136.1 MMcf/d, a 69.6 MMcf/d (105%) increase
  compared to Q3 2024. This resulted in an increase of $4.8 million (87%) in third-party processing and
  marketing revenue for the quarter compared to Q3 2024
• Reduced Net Debt1 by $3.2 million from Q2 2025 to $163.7 million
• Reduced operating expenses by $1.8 million (5%) to $36.7 million compared to Q3 2024
• Produced 23,956 boe/d (80% natural gas), up 4% from Q3 2024
• Produced 1,120 mt/d of sulphur during Q3 2025, 85% of which was sold under the below-market contract
  that expires December 31, 2025

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