Q1 2026 Cavvy Energy Ltd Earnings Call and Annual Shareholders Meeting

May 8, 2026

Operator: Good day, ladies and gentlemen, and welcome to the Cavvy Energy Annual General Meeting and Q1 2026 Financial Results Conference Call. Please be advised that today's proceedings are being recorded. Following the formal business of the meeting and brief management presentation, we will conduct a question and answer session.

Speaker #1: Following the formal business of the meeting and a brief management presentation, we will conduct a question-and-answer session. If you have a question and you are viewing on the webcast, please use the 'Ask a Question' button in the top right-hand corner to type your question at any time during the presentation.

Operator: If you have a question and you are viewing on webcast, please use the Ask a Question button in the top right-hand corner to type your question at any time during the presentation. If you are participating via telephone and would like to ask a question, please dial star one one at any time. You will be in the queue for the question and answer session at the end of the call. I would now like to turn the meeting over to Mr. Dallas McConnell, Vice President, Corporate Finance. Please go ahead, Mr. McConnell.

Speaker #1: If you are participating via telephone and would like to ask a question, please dial *11 at any time. You will then be in the queue for the question-and-answer session at the end of the call.

Speaker #1: I would now like to turn the meeting over to Mr. Dallas McConnell, Vice President, Corporate Finance. Please go ahead, Mr. McConnell. Thank you, DeeDee.

Dee Dee: Please go ahead, Mr. McConnell.

Dallas McConnell: Thank you, Dee Dee. Hello, welcome to the Annual General Meeting of Shareholders of Cavvy Energy Ltd. My name is Dallas McConnell. I am Cavvy's VP of Corporate Finance, and I will be the moderator for today's meeting. I would now like to take this opportunity to review the logistics for today's meeting. In addition to the in-person portion of this meeting at Norton Rose Fulbright, this meeting is being streamed by live audio webcast and telephone. Participants attending via the webcast or telephone may listen to the meeting and ask questions, but will not be able to vote on items of business. Only registered shareholders of record as of 24 March 2026, and duly appointed proxy holders present in person at this meeting are entitled to vote on items of business. The procedure for voting and asking questions will be addressed at the outset of the meeting.

Speaker #1: Hello, and welcome to the Annual General Meeting of Shareholders of Cavvy Energy Limited. My name is Dallas McConnell. I am Cavvy's VP of Corporate Finance, and I will be the moderator for today's meeting.

Speaker #1: I would now like to take this opportunity to review the logistics for today's meeting. In addition to the in-person portion of this meeting at Norton Rose Fulbright, this meeting is being streamed by live audio webcast and telephone.

Speaker #1: Participants attending via the webcast or telephone may listen to the meeting and ask questions, but will not be able to vote on items of business.

Dallas McConnell: Participants attending via the webcast or telephone may listen to the meeting and ask questions, but will not be able to vote on items of business. Only registered shareholders of record as of 24th March, 2026, and duly appointed proxy holders present in person at this meeting are entitled to vote on items of business. The procedure for voting and asking questions will be addressed at the outset of the meeting.

Speaker #1: Only registered shareholders of record as of March 24, 2026, and duly appointed proxy holders present in person at this meeting are entitled to vote on items of business.

Speaker #1: The procedure for voting and asking questions will be addressed at the outset of the meeting. Please note that today's meeting is being recorded. If you participate in the meeting and disclose personal information, you will be deemed to have consented to the recording, transfer, and use of your personal information.

Dallas McConnell: Please note that today's meeting is being recorded. If you participate in the meeting and disclose personal information, you will be deemed to consent to the recording, transfer, and use of your personal information. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant that you first obtained all required consents for the disclosure, recording, transfer, and use of their personal information. It is now my pleasure to turn today's meeting over to Patricia McLeod, Chair of the Board of Directors. Patty.

Speaker #1: If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant that you first obtained all required consents for the disclosure, recording, transfer, and use of their personal information.

Speaker #1: It is now my pleasure to turn today's meeting over to Patricia McLeod, Chair of the Board of Directors. Patty? Thank you, Mr. McConnell. Good afternoon, and once again, welcome to the 2026 Annual General Meeting of Cavvy shareholders.

Patricia McLeod: Thank you, Mr. McConnell. Good afternoon, once again, welcome to the 2026 Annual General Meeting of Cavvy shareholders. My name is Patricia McLeod, I am the Chair of Cavvy's Board of Directors. In accordance with Cavvy's bylaws, as Chair of the Board, I will act as chair of today's meeting. Before we proceed with the formal business of the meeting, I would like to take a moment to introduce the other members of the board who are here today. Darcy Reding, who is our president and chief executive officer, Michael Backus, Harvey Doerr, Doug Dreisinger, Andrew Judson, and Kiren Singh. We also have with us the following members of senior management, John Emery, our chief operating officer, Adam Gray, our chief financial officer, and Paul Kunkel, our chief commercial officer.

Speaker #1: My name is Patricia McLeod, and I am the Chair of Cavvy's Board of Directors. In accordance with Cavvy's bylaws, as Chair of the Board, I will act as Chair of today's meeting.

Speaker #1: Before we proceed with the formal business of the meeting, I would like to take a moment to introduce the other members of the Board who are here today.

Speaker #1: Darcy Reading, who is our President and Chief Executive Officer; Michael Backus; Harvey Dewar; Doug Dreisinger; Andrew Judson; and Kieran Singh. We also have with us the following members of senior management: John Emery, our Chief Operating Officer; Adam Gray, our Chief Financial Officer; and Paul Kunkel, our Chief Commercial Officer.

Patricia McLeod: Darcy Reding, who is our president and chief executive officer, Michael Backus, Harvey Doerr, Doug Dreisinger, Andrew Judson, and Kiren Singh. We also have with us the following members of senior management, John Emery, our chief operating officer, Adam Gray, our chief financial officer, and Paul Kunkel, our chief commercial officer.

Patricia McLeod: Darcy Reding and Adam Gray will provide a corporate presentation and report on Cavvy's 2026 Q1 financial results following the formal portion of today's meeting. I invite you to stay for their presentation. The meeting will now come to order. I appoint the representatives from Norton Rose Fulbright present here to serve as recording secretary for the meeting. Thank you for doing that. I also appoint Paul Bedard of Odyssey Trust Company to serve as scrutineer for the meeting. Thank you to Paul.

Speaker #1: Darcy Reding and Adam Gray will provide a corporate presentation and report on Cavvy's Q1 2026 financial results following the formal portion of today's meeting, and I invite you to stay for their presentation.

Speaker #1: The meeting will now come to order. I appoint the representatives from Norton Rose Fulbright present here to serve as recording secretary for the meeting, and thank you for doing that.

Speaker #1: I also appoint Paul Bedard of Odyssey Trust Company to serve as scrutineer for the meeting, and thank you to Paul. In accordance with the notice and access provisions under applicable securities laws, the notice calling this meeting and the accompanying management information circular were made available on March 24, 2026, to all shareholders of record as of that date.

Patricia McLeod: In accordance with the notice and access provisions under applicable securities laws, the notice calling this meeting and the accompanying management information circular were made available on 24 March 2026 to all shareholders of record as of that date, being the record date for the meeting. A notice and access notification and form of proxy or voting instruction form, as applicable, were also mailed to registered shareholders or delivered to intermediaries in each case as required by applicable securities laws. An affidavit as to the mailing to registered shareholders is available for inspection by any shareholder. I direct that the secretary append the affidavit as a schedule to the meeting, the minutes of the meeting. In accordance with the Alberta Business Corporations Act, the notice calling this meeting was also sent to Cavvy's directors and to our auditors, Ernst & Young LLP.

Speaker #1: Being the record date for the meeting, a notice and access notification and form of proxy or voting instruction form, as applicable, were also mailed to registered shareholders or delivered to intermediaries, in each case as required by applicable securities laws.

Speaker #1: An affidavit as to the mailing to registered shareholders is available for inspection by any shareholder. I direct that the secretary append the affidavit as is scheduled to the meeting minutes of the meeting.

Patricia McLeod: An affidavit as to the mailing to registered shareholders is available for inspection by any shareholder. I direct that the secretary append the affidavit as a schedule to the meeting, the minutes of the meeting. In accordance with the Alberta Business Corporations Act, the notice calling this meeting was also sent to Cavvy's directors and to our auditors, Ernst & Young LLP.

Speaker #1: In accordance with the Alberta Business Corporations Act, the notice calling this meeting was also sent to Cavvy's directors and to our auditors, Ernst & Young LLP.

Speaker #1: Pursuant to Cavvy's bylaws, business may only be transacted at this meeting if two people holding or representing by proxy at least 5% of the shares entitled to vote are present in person or represented by proxy at this meeting.

Patricia McLeod: Pursuant to Cavvy's bylaws, business may only be transacted at this meeting if two people holding or representing by proxy at least 5% of the shares entitled to vote are present in person or represented by proxy at this meeting. Mr. Bedard, do we have quorum?

Speaker #1: Mr. Bedard, do we have quorum? Yes, Madam Chair, we have quorum. Thank you. I direct that the secretary append the scrutineer's report as is scheduled to the minutes of the meeting.

Paul Bedard: Yes, we do, Chair. We have quorum.

Patricia McLeod: Thank you. I direct that the secretary append the scrutineer's report as a schedule to the minutes of the meeting. Notice having been served in accordance with Cavvy's bylaws and a quorum being present, I now declare that this meeting has been duly called and is properly constituted for the transaction of business. The purpose of this meeting is as follows: To receive Cavvy's audited consolidated financial statements for the year ended 31 December 2025, along with the associated auditor's report. To fix the number of directors of Cavvy to be elected as 7. To elect the directors of Cavvy for the ensuing year. To appoint Ernst & Young LLP as Cavvy's auditors for the ensuing year and authorize the board to fix their remuneration. To accept Cavvy's approach to executive compensation, and to transact any other business which we may be properly brought before the meeting.

Speaker #1: Notice having been served in accordance with Cavvy's bylaws, and a quorum being present, I now declare that this meeting has been duly called and is properly constituted for the transaction of business.

Speaker #1: The purpose of this meeting is as follows: to receive Cavvy's audited, consolidated financial statements for the year ended December 31, 2025, along with the associated auditor's report.

Speaker #1: To fix the number of directors of Cavvy to be elected at seven. To elect the directors of Cavvy for the ensuing year. To appoint Ernst & Young LLP as Cavvy's auditors for the ensuing year and authorize the Board to fix their remuneration.

Patricia McLeod: To fix the number of directors of Cavvy to be elected as 7. To elect the directors of Cavvy for the ensuing year. To appoint Ernst & Young LLP as Cavvy's auditors for the ensuing year and authorize the board to fix their remuneration. To accept Cavvy's approach to executive compensation, and to transact any other business which we may be properly brought before the meeting.

Speaker #1: To accept Cavvy's approach to executive compensation, and to transact any other business which may be properly brought before the meeting. All items of business are also outlined in Cavvy's management information circular dated March 24, 2026, which was made available to all shareholders along with the notice calling this meeting.

Patricia McLeod: All items of business are also outlined in Cavvy's Management Information Circular dated 24 March 2026, which was made available to all shareholders along with the notice calling this meeting. I will now briefly review the voting procedures for today's meeting. Each item of business to be covered today will be voted on by shareholders other than the receipt of the financial statements and an associated auditor's report. Every shareholder, as of the record date, is entitled to vote on such items and has 1 vote for each common share they hold. Each item of business requires that the resolution be passed by a majority of the votes cast. As previously mentioned, only registered shareholders and duly appointed proxy holders present in person at this meeting are entitled to vote.

Speaker #1: I will now briefly review the voting procedures for today's meeting. Each item of business to be covered today will be voted on by shareholders, other than the receipt of the financial statements and associated auditor's report.

Speaker #1: Every shareholder as of the record date is entitled to vote on such items and has one vote for each common share they hold. Each item of business requires that the resolution be passed by a majority of the votes cast.

Patricia McLeod: Every shareholder, as of the record date, is entitled to vote on such items and has 1 vote for each common share they hold. Each item of business requires that the resolution be passed by a majority of the votes cast. As previously mentioned, only registered shareholders and duly appointed proxy holders present in person at this meeting are entitled to vote. Pursuant to Cavvy's bylaws and the Alberta Business Corporations Act, all items of business must be decided by a show of hands unless a ballot is required or demanded by a shareholder or proxy holder.

Speaker #1: As previously mentioned, only registered shareholders and duly appointed proxy holders present in person at this meeting are entitled to vote. Pursuant to Cavvy's bylaws and the Alberta Business Corporations Act, all items of business must be decided by a show of hands, unless a ballot is required or demanded by a shareholder or proxy holder.

Patricia McLeod: Pursuant to Cavvy's bylaws and the Alberta Business Corporations Act, all items of business must be decided by a show of hands unless a ballot is required or demanded by a shareholder or proxy holder.

Adam Gray: Madam Chair, my name is Adam Gray, and I am a proxy holder. In the interest of ensuring this meeting is timely and efficient, I demand that voting on all items of business be taken by ballot instead of by a show of hands.

Speaker #1: Madam Chair, my name is Adam Gray, and I am a proxy holder. In the interest of ensuring this meeting is timely and efficient, I demand that voting on all items of business be taken by ballot instead of by a show of hands.

Speaker #1: Thank you, Mr. Gray. All items of business will be voted on by ballot, then. If you are a registered shareholder or proxy holder attending in person, please raise your hand and the scrutineer will provide you with ballots.

Patricia McLeod: Thank you, Mr. Gray. All items of business will be voted on by ballot then. If you are a registered shareholder or proxy holder attending in person, please raise your hand and the scrutineer will provide you with ballots. Okay, if you voted in advance of the meeting, you do not need to take further action today unless you would like to change your vote. If you choose to cast a ballot in person at today's meeting, your previously submitted vote will be disregarded. I will now review the procedure for asking questions at this meeting. We encourage all shareholders to ask questions. However, we ask that questions unrelated to the matters being voted upon be held until after the formal portion of this meeting.

Speaker #1: Okay. If you voted in advance of the meeting, you do not need to take further action today unless you would like to change your vote.

Speaker #1: If you choose to cast a ballot in person at today's meeting, your previously submitted vote will be disregarded. I will now review the procedure for asking questions at this meeting.

Patricia McLeod: If you choose to cast a ballot in person at today's meeting, your previously submitted vote will be disregarded. I will now review the procedure for asking questions at this meeting. We encourage all shareholders to ask questions. However, we ask that questions unrelated to the matters being voted upon be held until after the formal portion of this meeting.

Speaker #1: We encourage all shareholders to ask questions. However, we ask that questions unrelated to the matters being voted upon be held until after the formal portion of this meeting.

Speaker #1: All participants who wish to ask a question are asked to state their name, the entity they represent, if applicable, and whether they are a registered shareholder or a duly appointed proxy holder.

Patricia McLeod: All participants who wish to ask a question are asked to state their name, the entity they represent, if applicable, and whether they are a registered shareholder or a duly appointed proxy holder. Registered shareholders and duly appointed proxy holders attending this meeting in person may ask a question by raising their hand. Participants on the phone can initiate a question by dialing star one one. Participants on the webcast can submit questions by clicking the Ask a Question button on the top right corner of the webcast. Questions received via phone or the webcast will be read or summarized by the moderator, along with the name of the person asking the question and the entity which they represent, if applicable. In each case, the chair of the meeting will respond to the question or direct the question to the appropriate person.

Speaker #1: Registered shareholders and duly appointed proxy holders attending this meeting in person may ask a question by raising their hand. Participants on the phone can initiate a question by dialing star one one.

Patricia McLeod: Participants on the phone can initiate a question by dialing star one one. Participants on the webcast can submit questions by clicking the Ask a Question button on the top right corner of the webcast. Questions received via phone or the webcast will be read or summarized by the moderator, along with the name of the person asking the question and the entity which they represent, if applicable. In each case, the chair of the meeting will respond to the question or direct the question to the appropriate person.

Speaker #1: Participants on the webcast can submit questions by clicking the 'Ask a Question' button on the top right corner of the webcast. Questions received via phone or the webcast will be read or summarized by the moderator, along with the name of the person asking the question and the entity they represent, if applicable.

Speaker #1: In each case, the chair of the meeting will respond to the question or direct the question to the appropriate person. We will now proceed with the formal business of today's meeting.

Patricia McLeod: We will now proceed with the formal business of today's meeting. To facilitate this process, I've asked Adam Gray, Paul Kunkel, and John Emery, who are all proxy holders, to move and second all motions. I will call on them at the appropriate time during the meeting. First, to receive the audited consolidated financial statements. First item of business is this receipt of Cavvy's audited consolidated financial statements for the year ended 31 December 2025 and the associated auditors report. Copies of the financial statements and auditors report have been made available to all shareholders. As is customary, we will not conduct a vote on the financial statements and associated auditors reports. As previously indicated, there'll be a brief corporate presentation following the formal portion of the meeting, and shareholders are invited to ask questions on the financial statements at that time.

Speaker #1: To facilitate this process, I've asked Adam Gray, Paul Kunkel, and John Emery, who are all proxy holders, to move and second all motions. I will call on them at the appropriate time during the meeting.

Speaker #1: First, to receive the audited, consolidated financial statements. The first item of business is this receipt of Cavvy's audited, consolidated financial statements for the year ended December 31, 2025, and the associated auditor's report.

Speaker #1: Copies of the financial statements and auditor's report have been made available to all shareholders. As is customary, we will not conduct a vote on the financial statements and associated auditor's report.

Patricia McLeod: Copies of the financial statements and auditors report have been made available to all shareholders. As is customary, we will not conduct a vote on the financial statements and associated auditors reports. As previously indicated, there'll be a brief corporate presentation following the formal portion of the meeting, and shareholders are invited to ask questions on the financial statements at that time.

Speaker #1: As previously indicated, there will be a brief corporate presentation following the formal portion of the meeting, and shareholders are invited to ask questions on the financial statements at that time.

Speaker #1: I declare that the audited financial statements of Cavvy for the year ended December 31, 2025, and the associated auditor’s report have been received. The next item of business is to fix the number of directors to be elected to the Board.

Patricia McLeod: I declare that the audited financial statements of Cavvy for the year ended 31 December 2025 and the associated auditors' reports have been received. The next item of business is to fix the number of directors to be elected to the board. May I please have a mover and seconder for this item.

Speaker #1: May I please have a mover and seconder for this item? Madam Chair, I move that the number of directors to be elected to the Board be fixed at seven.

Adam Gray: Madam Chair, I move that the number of directors to be elected to the board be fixed at seven.

Speaker #1: Madam Chair, I second the motion. Thank you. Is there any discussion? There are no relevant questions. Thank you. As there are no further questions or discussion, I call for the vote on the motion before the meeting to fix the number of directors of Cavvy at seven.

Paul Kunkel: Madam Chair, I second the motion.

Patricia McLeod: Thank you. Is there any discussion?

Paul Kunkel: There are no relevant questions.

Patricia McLeod: Thank you. As there are no further questions or discussion, I call for the vote on the motion before the meeting to fix the number of directors of Cavvy at 7. I ask all shareholders and proxy holders that have not yet voted to please complete a ballot. Raise your hands if you're once your ballot is complete, and the scrutineer will collect it. We're good. Scrutineer has tabulated the voting results. I am informed that the majority of the votes submitted were in favor of the motion, and therefore, I declare the motion carried. The next item of business is the election of the 7 individuals nominated by management to serve as directors of Cavvy. The names of the 7 director nominees are myself, Patricia McLeod, Michael Backus, Harvey Doerr, Doug Dreisinger, Andrew Judson, Kiren Singh, and Darcy Reding.

Speaker #1: I ask all shareholders and proxy holders that have not yet voted to please complete a ballot. Raise your hands once your ballot is complete, and the scrutineer will collect it.

Speaker #1: We're good. The scrutineer has tabulated the voting results. I'm informed that the majority of the votes submitted were in favor of the motion, and therefore, I declare the motion carried.

Patricia McLeod: Scrutineer has tabulated the voting results. I am informed that the majority of the votes submitted were in favor of the motion, and therefore, I declare the motion carried. The next item of business is the election of the 7 individuals nominated by management to serve as directors of Cavvy. The names of the 7 director nominees are myself, Patricia McLeod, Michael Backus, Harvey Doerr, Doug Dreisinger, Andrew Judson, Kiren Singh, and Darcy Reding.

Speaker #1: The next item of business is the election of the seven individuals nominated by management to serve as directors of Cavvy. The names of the seven director nominees are myself, Patricia McLeod, Michael Backus, Harvey Doer, Doug Dreisinger, Andrew Judson, Kieran Singh, and Darcy Reding.

Speaker #1: Information about each of the director nominees was included in Cavvy's circular. Cavvy did not receive any additional nominations for directors under the advance notice provisions of our Bylaw Number Three, which establishes the procedures for a shareholder to nominate a director for election to the board.

Patricia McLeod: Information about each of the director nominees was included in Cavvy circular. Cavvy did not receive any additional nominations for directors under the advance notice provisions of our bylaw number three, which establishes the procedures for a shareholder to nominate a director for election to the board. Accordingly, no additional nominees will be considered for election at this meeting, and I declare the nominations to be closed. May I please have a mover and seconder regarding the election of the director nominees?

Speaker #1: Accordingly, no additional nominees will be considered for election at this meeting, and I declare the nominations to be closed. May I please have a mover and a seconder regarding the election of the director nominees?

Speaker #1: Madam Chair, I move that each of Patricia McLeod, Michael Backus, Harvey Doer, Doug Dreisinger, Andrew Judson, Kieran Singh, and Darcy Reding be elected as director of Cavvy to hold office until the next annual meeting of shareholders, or until their successor is duly elected or appointed.

Adam Gray: Madam Chair, I move that each of Patricia McLeod, Michael Backus, Harvey Doerr, Doug Dreisinger, Andrew Judson, Kiren Singh, and Darcy Reding be elected as director of Cavvy to hold office until the next annual meeting of shareholders or until their successor is duly elected or appointed.

John Emery: Madam Chair, I second the motion.

Speaker #1: Madam Chair, I second the motion. Thank you. Is there any discussion? There is not. All right. I now call for a vote on the motion before the meeting to elect the nominated individuals as directors of Cavvy, to hold office until the next annual meeting of shareholders, or until their successors are duly elected or appointed.

Patricia McLeod: Thank you. Is there any discussion?

Adam Gray: There is not.

Patricia McLeod: All right. I now call for a vote on the motion before the meeting to elect the nominated individuals as directors of Cavvy to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed. Each director nominee is voted on individually. I ask all shareholders and proxy holders that have not yet voted to please complete a ballot by marking X next to 4 or withhold for each director nominee listed on the ballot. Raise your hand once your ballot is completed, and scrutineer will collect it from you. Scrutineer has tabulated the voting results. I am informed that each of the director nominees has received a majority of the votes submitted in favor of their election.

Speaker #1: Each director nominee is voted on individually. I ask all shareholders and proxy holders that have not yet voted to please complete a ballot by marking an X next to, for, or withhold for each director nominee listed on the ballot.

Speaker #1: Raise your hand once your ballot is completed, and the scrutineer will collect it from you. The scrutineer has tabulated the voting results. I'm informed that each of the director nominees has received a majority of the votes submitted in favor of their election.

Patricia McLeod: Scrutineer has tabulated the voting results. I am informed that each of the director nominees has received a majority of the votes submitted in favor of their election. Therefore, I declare that myself, Patricia McLeod, Michael Backus, Harvey Doerr, Doug Dreisinger, Andrew Judson, Kiren Singh, and Darcy Reding are each duly elected as a director of Cavvy to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed.

Speaker #1: Therefore, I declare that myself, Patricia McLeod, Michael Backus, Harvey Doer, Doug Dreisinger, Andrew Judson, Kieran Singh, and Darcy Reding are each duly elected as director of Cavvy, to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed.

Patricia McLeod: Therefore, I declare that myself, Patricia McLeod, Michael Backus, Harvey Doerr, Doug Dreisinger, Andrew Judson, Kiren Singh, and Darcy Reding are each duly elected as a director of Cavvy to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed. I'd like to congratulate the members of the board, and I thank them for their service. It's truly an honor and a pleasure to serve with you. The next item of business is the appointment of Cavvy's auditors. May I please have a mover and a seconder for this item?

Speaker #1: I'd like to congratulate the members of the Board, and I thank them for their service. It is truly an honor and a pleasure to serve with you.

Patricia McLeod: I'd like to congratulate the members of the board, and I thank them for their service. It's truly an honor and a pleasure to serve with you. The next item of business is the appointment of Cavvy's auditors. May I please have a mover and a seconder for this item?

Speaker #1: The next item of business is the appointment of Cavvy's auditors. May I please have a mover and a seconder for this item? Madam Chair, I move that Ernst & Young LLP be appointed as auditors of Cavvy.

Adam Gray: Madam Chair, I move that Ernst & Young LLP be appointed as auditors of Cavvy to hold office until the next annual meeting of shareholders at such remuneration as may be approved by the Board.

Speaker #1: To hold office until the next annual meeting of shareholders, at such remuneration as may be approved by the Board. Madam Chair, I second the motion.

John Emery: Madam Chair, I second the motion.

Speaker #1: Thank you. Is there any discussion? No, Madam Chair, there is not. Okay. As there's no further discussion, we will now take votes on this motion.

Patricia McLeod: Thank you. Is there any discussion?

Adam Gray: No, Madam Chair, there is not.

Patricia McLeod: Okay, as there is no further discussion, we will now take vote on this motion. I ask again that all shareholders and proxy holders that have not yet voted to please complete a ballot. Scrutineer has tabulated the voting results. I am informed that a majority of the votes submitted were in favor of the motion. I declare that Ernst & Young LLP is appointed as Cavvy's auditors to hold office until the next annual meeting of shareholders at such remuneration as may be approved by the board. The next item of business is the non-binding advisory vote on executive compensation, also known as say on pay. May I have a mover and a seconder for this item?

Speaker #1: I ask again that all shareholders and proxy holders who have not yet voted please complete a ballot. The scrutineer has tabulated the voting results.

Speaker #1: I am informed that a majority of the votes submitted were in favor of the motion. Therefore, I declare that Ernst & Young LLP is appointed as Cavvy's auditors to hold office until the next annual meeting of shareholders at such remuneration as may be approved by the Board.

Patricia McLeod: I declare that Ernst & Young LLP is appointed as Cavvy's auditors to hold office until the next annual meeting of shareholders at such remuneration as may be approved by the board. The next item of business is the non-binding advisory vote on executive compensation, also known as say on pay. May I have a mover and a seconder for this item?

Speaker #1: The next item of business is the non-binding advisory vote on executive compensation, also known as 'say on pay.' May I have a mover and a seconder for this item?

John Emery: Madam Chair, I move that on an advisory basis and not to diminish the role and responsibilities of the board of directors, that the shareholders accept the approach to executive compensation as disclosed in Cavvy's management information circular.

Speaker #1: Madam Chair, I move that, on an advisory basis and not to diminish the role and responsibilities of the Board of Directors, the shareholders accept the approach to executive compensation as disclosed in Cavvy's management information circular.

Speaker #1: Madam Chair, I second the motion. Thank you. Is there any discussion? No, there is not. Okay. As there is no further discussion, I now call for the vote on the motion before the meeting.

Adam Gray: Madam Chair, I second the motion.

Patricia McLeod: Thank you. Is there any discussion?

Adam Gray: No, there is not.

Patricia McLeod: Okay. As there is no further discussion, I now call for the vote on the motion before the meeting. I ask all shareholders and proxy holders that have not yet voted to please complete a ballot. Scrutineer has tabulated the voting results. I am informed that a majority of the votes submitted were in favor of the motion. I declare that Cavvy's approach to executive compensation as disclosed in the circular has been accepted by the shareholders. After this meeting, the voting results will be filed on Cavvy's SEDAR profile and publicly announced by way of news release. This concludes the formal business of the meeting. I now declare the formal portion of this meeting be terminated at I need the time.

Speaker #1: I ask all shareholders and proxy holders that have not yet voted to please complete a ballot. The scrutineer has tabulated the voting results. I'm informed that a majority of the votes submitted were in favor of the motion.

Speaker #1: I declare that Cavvy's approach to executive compensation, as disclosed in the circular, has been accepted by the shareholders. After this meeting, the voting results will be filed on Cavvy's CDAR profile and publicly announced by way of a news release.

Patricia McLeod: I declare that Cavvy's approach to executive compensation as disclosed in the circular has been accepted by the shareholders. After this meeting, the voting results will be filed on Cavvy's SEDAR profile and publicly announced by way of news release. This concludes the formal business of the meeting. I now declare the formal portion of this meeting be terminated at I need the time.

Speaker #1: And this concludes the formal business of the meeting. I now declare the formal portion of this meeting terminated at 1:45.

John Emery: 145.

Patricia McLeod: 1:45. 1:45 PM. Thank you. I will now ask Darcy Reding to provide the corporate presentation. Adam Gray will then present our recently released 2026 Q1 results.

Speaker #1: 1:45 p.m. Thank you. I will now ask Darcy Reding to provide the corporate presentation. Adam Gray will then present our recently released Q1 2026 results.

Speaker #1: Thank you, Patricia. And thank you, everyone, for your interest this afternoon in Cavvy Energy's annual general meeting. At this time, and as Patty mentioned, Adam Gray and I will review the company's first quarter 2026 operating and financial results, and certain other company business.

Darcy Reding: Thank you, Patricia. Thank you everyone for your interest this afternoon in Cavvy Energy's annual general meeting. At this time, and as Patty mentioned, Adam Gray and I will review the company's Q1 2026 operating and financial results and certain other company business. Before doing so, I would like to remind you that our remarks today will include forward-looking statements that are subject to important risks and uncertainties. For more information on these risks and uncertainties, please see the reports filed by Cavvy with Canadian securities regulators on sedarplus.ca. We are extremely pleased with our most recent quarterly results, which continue to deliver shareholder value through the successful execution of our corporate strategy.

Speaker #1: Before doing so, I would like to remind you that our remarks today will include forward-looking statements that are subject to important risks and uncertainties.

Speaker #1: For more information on these risks and uncertainties, please see the reports filed by Cavvy with Canadian securities regulators on CDARplus.ca. We are extremely pleased with our most recent quarterly results, which continue to deliver shareholder value through the successful execution of our corporate strategy.

Darcy Reding: For more information on these risks and uncertainties, please see the reports filed by Cavvy with Canadian securities regulators on sedarplus.ca. We are extremely pleased with our most recent quarterly results, which continue to deliver shareholder value through the successful execution of our corporate strategy.

Speaker #1: We believe Cavvy offers an attractive investment opportunity for our shareholders given our mix of prolific upstream production and its associated development upside, our material midstream business, and our unique identity as a significant producer and seller of sulfur, which is recovered through processing of our sour gas production.

Darcy Reding: We believe Cavvy offers an attractive investment opportunity for our shareholders, given our mix of prolific upstream production and its associated development upside, our material midstream business, and our unique identity as a significant producer and seller of sulfur, which is recovered through processing of our sour gas production. Our industry-leading upstream base decline of approximately 6% per annum contributes to a healthy reserve life index that exceeds 25 years. This in turn complements our ability to grow our business through development of our extensive identified drilling inventory, with the potential to grow the upstream business to 50,000 BOEs per day.

Speaker #1: Our industry-leading, upstream-based decline of approximately 6% per annum contributes to a healthy reserve life index that exceeds 25 years. This, in turn, complements our ability to grow our business through development of our extensive identified drilling inventory, with the potential to grow the upstream business to 50,000 BOEs per day.

Darcy Reding: Our industry-leading upstream base decline of approximately 6% per annum contributes to a healthy reserve life index that exceeds 25 years. This in turn complements our ability to grow our business through development of our extensive identified drilling inventory, with the potential to grow the upstream business to 50,000 BOEs per day.

Speaker #1: Our first quarter results, to be discussed in more detail in a few minutes, show how our ownership and operatorship in our three large deep-cut gas processing facilities support a significant midstream business that is projected to deliver in excess of $40 million of revenue in 2026.

Darcy Reding: Our Q1 results, to be discussed in more details in a few minutes, show how our ownership and operatorship in our three large deep-cut gas processing facilities support a significant midstream business that is projected to deliver in excess of CAD 40 million of revenue in 2026. This midstream revenue has grown significantly in the past several years and provides a revenue stream largely independent of natural gas pricing, providing the company with another layer of cash flow certainty during times of weak AECO natural gas pricing. Cavvy sulfur production, in excess of 1,000 metric tons per day, is benefiting from exposure to much higher pricing as of January 2026, now reflected in our expectations that sulfur sales will generate approximately one-third of the company's gross revenue in calendar year 2026.

Speaker #1: This midstream revenue has grown significantly in the past several years, and provides a revenue stream largely independent of natural gas pricing, providing the company with another layer of cash flow certainty during times of weak eco-natural gas pricing.

Darcy Reding: Cavvy sulfur production, in excess of 1,000 metric tons per day, is benefiting from exposure to much higher pricing as of January 2026, now reflected in our expectations that sulfur sales will generate approximately one-third of the company's gross revenue in calendar year 2026.

Speaker #1: Cavvy's sulfur production in excess of 1,000 metric tons per day is benefiting from exposure to much higher pricing as of January 2026, now reflected in our expectations that sulfur sales will generate approximately one-third of the company's gross revenue in calendar year 2026.

Speaker #1: In essence, Cavvy provides our shareholders with the opportunity to invest in attractive upstream hydrocarbon assets that are long-life and prolific, with deep development drilling inventory.

Darcy Reding: In essence, Cavvy provides our shareholders with the opportunity to invest in attractive upstream hydrocarbon assets that are long life and prolific with deep development drilling inventory. However, our midstream assets and growing revenue stream corresponding to these assets provide supplemental revenue well protected from natural gas price volatility. In addition, our substantial sulfur production, traditionally considered a byproduct of natural gas, provides an extremely robust revenue stream uncorrelated to the price of natural gas. We believe this diversity yields an attractive opportunity for investors, given it is unique for energy companies Cavvy's size. This diversity has helped support corporate performance, and we are excited to speak specifically to our latest quarterly results over the next few minutes.

Speaker #1: However, our midstream assets and growing revenue stream corresponding to these assets provide supplemental revenue well-protected from natural gas price volatility. In addition, our substantial sulfur production, traditionally considered a byproduct of natural gas, provides an extremely robust revenue stream uncorrelated to the price of natural gas.

Darcy Reding: In addition, our substantial sulfur production, traditionally considered a byproduct of natural gas, provides an extremely robust revenue stream uncorrelated to the price of natural gas. We believe this diversity yields an attractive opportunity for investors, given it is unique for energy companies Cavvy's size. This diversity has helped support corporate performance, and we are excited to speak specifically to our latest quarterly results over the next few minutes.

Speaker #1: We believe this diversity yields an attractive opportunity for investors, given it is unique for energy companies Cavvy's size. This diversity has helped support corporate performance, and we are excited to speak specifically to our latest quarterly results over the next few minutes.

Speaker #1: Taking a moment to further expand on our revenue diversity—focusing on the far right of the bar chart on this slide—we show our Q1 2026 revenue broken down by category and commodity type.

Darcy Reding: Taking a moment to further expand on our revenue diversity, focusing on the far right of the bar chart on this slide, we show our Q1 2026 revenue broken down by category and commodity type. Readily apparent is the substantial growth in sulfur revenue in the quarter, accounting for approximately 1/3 of our total revenue. Frankly, dwarfing the contribution made previously by sulfur sales. Revenue from our midstream business was stable in the quarter on an absolute dollar basis. Its contribution on a percentage basis was reduced to 12% as the larger portion of the revenue pie, so to speak, was contributed by our sulfur sales.

Speaker #1: Readily apparent is the substantial growth in sulfur revenue in the quarter, accounting for approximately one-third of our total revenue and, frankly, dwarfing the contribution made previously by sulfur sales.

Darcy Reding: Frankly, dwarfing the contribution made previously by sulfur sales. Revenue from our midstream business was stable in the quarter on an absolute dollar basis. Its contribution on a percentage basis was reduced to 12% as the larger portion of the revenue pie, so to speak, was contributed by our sulfur sales.

Speaker #1: Revenue from our midstream business was stable in the quarter on an absolute dollar basis, but its contribution on a percentage basis was reduced to 12%, as the larger portion of the revenue pie, so to speak, was contributed by our sulfur sales.

Speaker #1: Similarly, strong natural gas liquids pricing and relatively stable natural gas sales revenue, supported by our attractive existing gas hedges, saw their contributions to the total corporate revenue stream diminish on a percentage basis this quarter due to the growth of sulfur revenue.

Darcy Reding: Similarly, strong natural gas liquids pricing and relatively stable natural gas sales revenue, supported by our attractive existing gas hedges, saw their contributions to the total corporate revenue stream diminish on a percentage basis this quarter due to the growth of sulfur revenue. Distilled down, our key message is simply this. The importance of sulfur to our business was materially amplified in Q1 2026. Sulfur will continue to be key to our business, and we are strategically and uniquely positioned to take advantage of the many opportunities sulfur provides. Our upstream assets provide the feedstock, and our midstream assets are designed to extract sulfur from the raw gas production. In essence, a perfect combination, particularly given the record high sulfur pricing significantly aided by the current Middle East conflict. Cavvy represents a rare and unique vehicle for investors to participate in sulfur pricing upside.

Speaker #1: Distilled down, our key message is simply this: the importance of sulfur to our business was materially amplified in the first quarter of 2026. Sulfur will continue to be key to our business, and we are strategically and uniquely positioned to take advantage of the many opportunities sulfur provides.

Darcy Reding: Sulfur will continue to be key to our business, and we are strategically and uniquely positioned to take advantage of the many opportunities sulfur provides. Our upstream assets provide the feedstock, and our midstream assets are designed to extract sulfur from the raw gas production. In essence, a perfect combination, particularly given the record high sulfur pricing significantly aided by the current Middle East conflict. Cavvy represents a rare and unique vehicle for investors to participate in sulfur pricing upside.

Speaker #1: Our upstream assets provide the feedstock, and our midstream assets are designed to extract sulfur from the raw gas production. In essence, a perfect combination—particularly given the record-high sulfur pricing, significantly aided by the current Middle East conflict.

Speaker #1: Cavvy represents a rare and unique vehicle for investors to participate in sulfur pricing upside. Given the current sulfur market, I will lastly note that we may consider committing a portion of our forecasted 2027 calendar year sulfur production to a fixed price contract, particularly as our existing natural gas hedges wind down by the end of May 2027.

Darcy Reding: Given the current sulfur market, I will lastly note that we may consider committing a portion of our forecasted 2027 calendar year sulfur production to a fixed price contract, particularly as our existing natural gas hedges wind down by the end of May 2027. Prudent management of cash flow and cash flow certainty remains a key focus for the company to ensure our critical turnarounds and other preventative maintenance activity can be appropriately funded. Adam will be speaking to our corporate commodity prices and hedge programs in a few moments, so I'll defer further details on that at this time. Shifting now to our Q1 results highlights, we are pleased that our previously detailed sulfur revenue growth supported a very substantial $27 million debt reduction, which was a new company record for single quarter deleveraging.

Speaker #1: Prudent management of cash flow and cash flow certainty remains a key focus for the company, to ensure our critical turnarounds and other preventative maintenance activity can be appropriately funded.

Speaker #1: Adam will be speaking to our corporate commodity prices and hedge programs in a few moments, so I'll defer further details on that at this time.

Darcy Reding: Adam will be speaking to our corporate commodity prices and hedge programs in a few moments, so I'll defer further details on that at this time. Shifting now to our Q1 results highlights, we are pleased that our previously detailed sulfur revenue growth supported a very substantial $27 million debt reduction, which was a new company record for single quarter deleveraging.

Speaker #1: Shifting now to our first quarter result highlights, we are pleased that our previously detailed sulfur revenue growth supported a very substantial $27 million debt reduction.

Speaker #1: This was a new company record for single-quarter deleveraging. Our major gas processing facilities located at Waterton, Jumping Pound, and Caroline all achieved 100% runtime in the quarter, helping to support both our commodity sales and third-party processing revenue in the quarter.

Darcy Reding: Our major gas processing facilities located at Waterton, Jumping Pound, and Caroline all achieved 100% runtime in the quarter, helping to support both our commodity sales and third-party processing revenue in the quarter. Additionally, our strong runtime performance contributed to a new record volume of third-party raw gas processing that averaged nearly 157 million cubic feet per day in the quarter. I want to briefly note that we continue to forecast a June outage at Waterton with an expected duration of approximately 3 weeks, a result of the scheduled maintenance outage by the owner of the sales gas pipeline infrastructure. We also maintain our forecast for the approximate 6-week outage at Caroline to accommodate our maintenance turnaround at the Caroline gas plant.

Speaker #1: Additionally, our strong runtime performance contributed to a new record volume of third-party raw gas processing that averaged nearly 157 million cubic feet per day in the quarter.

Speaker #1: I want to briefly note that we continue to forecast a June outage at Waterton, with an expected duration of approximately three weeks, a result of the scheduled maintenance outage by the owner of the sales gas pipeline infrastructure.

Darcy Reding: I want to briefly note that we continue to forecast a June outage at Waterton with an expected duration of approximately 3 weeks, a result of the scheduled maintenance outage by the owner of the sales gas pipeline infrastructure. We also maintain our forecast for the approximate 6-week outage at Caroline to accommodate our maintenance turnaround at the Caroline gas plant.

Speaker #1: We also maintain our forecast for the approximate six-week outage at Caroline. To accommodate our maintenance turnaround at the Caroline gas plant, both the Waterton and Caroline outages were expected and scheduled, and their impacts are included in our corporate guidance.

Darcy Reding: Both the Waterton and Caroline outages were expected and scheduled, and their impacts are included in our corporate guidance. Nevertheless, the outages will have a disproportionate impact on revenue and cash flow utilization in those quarters as compared to Q1, and their impacts should be appropriately considered. Reviewing our specific quarterly operating results, production of over 24,600 Boe per day and nearly 1,100 metric tons per day of sulfur generated nearly CAD 42 million in net operating income, a netback of CAD 18.87 per Boe. Operating costs in the quarter of CAD 47.8 million were slightly higher than originally anticipated, in part due to robust production volumes, including higher production at non-operated facilities, where the fee burden on Cavvy Gas is higher than the marginal cost of processing at our owned facilities.

Speaker #1: Nevertheless, the outages will have a disproportionate impact on revenue and cash flow utilization in those quarters, as compared to the first quarter, and their impacts should be appropriately considered.

Speaker #1: Reviewing our specific quarterly operating results, production of over 24,600 BOE per day and nearly 1,100 metric tons per day of sulfur generated nearly $42 million in net operating income, a netback of $18.87 per BOE.

Darcy Reding: Reviewing our specific quarterly operating results, production of over 24,600 Boe per day and nearly 1,100 metric tons per day of sulfur generated nearly CAD 42 million in net operating income, a netback of CAD 18.87 per Boe. Operating costs in the quarter of CAD 47.8 million were slightly higher than originally anticipated, in part due to robust production volumes, including higher production at non-operated facilities, where the fee burden on Cavvy Gas is higher than the marginal cost of processing at our owned facilities.

Speaker #1: Operating costs in the quarter of $47.8 million were slightly higher than originally anticipated, in part due to robust production volumes, including higher production at non-operated facilities where the fee burden on Cavvy Gas is higher than the marginal cost of processing at our owned facilities.

Speaker #1: Of note, and consistent with our usual communications, our facilities are strategic components of revenue generation from our midstreaming business and from sulfur sales. Accordingly, we draw your attention to our adjusted operating expense, which is shown as the brown line in the operating expense chart in the lower right corner of this supporting slide.

Darcy Reding: Of note and consistent with our usual communications, our facilities are strategic components of revenue generation from our midstream business and from sulfur sales. Accordingly, we draw your attention to our adjusted operating expense, which is shown as the brown line in the operating expense chart in the lower right corner of this supporting slide. Our CAD 21.55 per BOE operating cost in the quarter, if third-party revenues of CAD 12.4 million are taken into account as an offset, can be quantified as approximately CAD 16 per BOE in the quarter. As has been customary in our communications, if our sulfur revenue, derived primarily from our ownership in our sour gas processing facilities, is also utilized to offset operating expense, our adjusted operating cost in the quarter is only CAD 0.09 per BOE.

Speaker #1: Our $21.55 per BOE operating cost in the quarter, if third-party revenues of $12.4 million are taken into account as an offset, can be quantified as approximately $16 per BOE in the quarter.

Darcy Reding: Our CAD 21.55 per BOE operating cost in the quarter, if third-party revenues of CAD 12.4 million are taken into account as an offset, can be quantified as approximately CAD 16 per BOE in the quarter. As has been customary in our communications, if our sulfur revenue, derived primarily from our ownership in our sour gas processing facilities, is also utilized to offset operating expense, our adjusted operating cost in the quarter is only CAD 0.09 per BOE.

Speaker #1: As has been customary in our communications, if our sulfur revenue derived primarily from our ownership in our sour gas processing facilities is also utilized to offset operating expense, our adjusted operating cost in the quarter is only $0.09 per BOE.

Speaker #1: Although we realize this calculation and the $0.09 operating cost is not an industry standard, we do believe it is a parameter to consider with appropriate context, given our uniqueness as an upstream producer with the material midstream business.

Darcy Reding: Although we realize this calculation and the CAD 0.09 operating cost is not an industry standard, we do believe it is a parameter to consider with appropriate context, given our uniqueness as an upstream producer with the material midstream business. I'd like to now hand things off to Adam Gray, who will provide details on our quarterly financial results, hedging positions, and forward-looking business for the remainder of the year.

Speaker #1: I'd like to now hand things off to Adam Gray, who will provide details on our quarterly financial results, hedging positions, and forward-looking business for the remainder of the year.

Speaker #2: Thanks, Darcy. Good afternoon, and thanks again for joining. I'm Adam Gray, Chief Financial Officer. The financial results headline for Q1 is pretty straightforward and aligned to Darcy's previous comments.

Adam Gray: Thanks, Darcy. Good afternoon, and thanks again for joining. I'm Adam Gray, Chief Financial Officer. The financial results headline for Q1 is pretty straightforward and aligned to Darcy's previous comments. The sulfur contract expiry delivered exactly as promised. Our revenue diversification initiatives are bearing fruit, and our quarterly results demonstrate what this business is capable of, even in an exceptionally weak AECO natural gas pricing environment. Net operating income was just under CAD 42 million or CAD 0.14 per share, up 29% from Q1 2025. Funds flow from operations came in at CAD 32.2 million or CAD 0.11 per share, up 48% year-over-year. Our operating netback of CAD 18.87 per BOE is nearly double where we were just 1 year ago.

Speaker #2: The sulfur contract expiry delivered exactly as promised. Our revenue diversification initiatives are bearing fruit. And our quarterly results demonstrate what this business is capable of, even in an exceptionally weak ACO natural gas pricing environment.

Speaker #2: Net operating income was just under $42 million, or $0.14 per share, up 29% from the first quarter of 2025, and funds flow from operations came in at $32.2 million, or $0.11 per share, up 48% year over year.

Adam Gray: Net operating income was just under CAD 42 million or CAD 0.14 per share, up 29% from Q1 2025. Funds flow from operations came in at CAD 32.2 million or CAD 0.11 per share, up 48% year-over-year. Our operating netback of CAD 18.87 per BOE is nearly double where we were just 1 year ago.

Speaker #2: Our operating netback of $18.87 per BOE is nearly double where we were just one year ago. We recognized $35 million in sulfur revenue this quarter, compared to $1.6 million in the first quarter of 2025.

Adam Gray: We recognized CAD 35 million in sulfur revenue this quarter compared to CAD 1.6 million in Q1 2025. Vancouver FOB sulfur price averaged over $500 per ton during the quarter. While the structured pricing agreement means two-thirds of our volumes are fixed or collared, the unhedged remaining third participated fully in that market, which continues to be exceptionally strong. We recognized a net loss on revenue hedging activities during the quarter of CAD 14.8 million, which accounts for hedging on gas, liquids, and sulfur combined, versus a CAD 21 million gain in Q1 2025, primarily on gas. Those figures demonstrate the intended shift in our revenue profile. We are less reliant on hedging to support our operations and debt repayment precisely because sulfur and midstream revenues have stepped up in gas instead.

Speaker #2: Vancouver FOB sulfur price averaged over US$500 per ton during the quarter, and while the structured pricing agreement means two-thirds of our volumes are fixed or collared, the unhedged remaining third participated fully in that market, which continues to be exceptionally strong.

Speaker #2: We recognize the net loss on revenue hedging activities during the quarter of $14.8 million, which accounts for hedging on gas, liquids, and sulfur combined.

Adam Gray: We recognized a net loss on revenue hedging activities during the quarter of CAD 14.8 million, which accounts for hedging on gas, liquids, and sulfur combined, versus a CAD 21 million gain in Q1 2025, primarily on gas. Those figures demonstrate the intended shift in our revenue profile. We are less reliant on hedging to support our operations and debt repayment precisely because sulfur and midstream revenues have stepped up in gas instead.

Speaker #2: Versus a $21 million gain in Q1 2025, primarily on gas. Those figures demonstrate the intended shift in our revenue profile—we are less reliant on hedging to support our operations and debt repayment, precisely because sulfur and midstream revenues have stepped up in gas instead.

Speaker #2: We also saw an expected increase in royalty burden, primarily as a result of higher sulfur prices, but also due to higher liquids prices. In case there are lingering concerns, I believe it's important to point out that we pay sulfur royalties based on our realized or hedged price, not based on Vancouver FOB price, so there is no disconnect between sulfur revenues and sulfur royalties.

Adam Gray: We also saw an expected increase in royalty burden, primarily as a result of higher sulfur prices, but also due to higher liquids prices. In case there are lingering concerns, I believe it's important to point out that we pay sulfur royalties based on our realized or hedged price, not based on Vancouver FOB price. There is no disconnect between sulfur revenues and sulfur royalties. I also want to acknowledge, as Darcy Reding did, that OpEx was slightly above our expectations at CAD 47.8 million. While flat on a per BOE basis, we did experience higher than expected processing fees, which resulted in higher expected volumes on non-operated Central Alberta volumes, which were reactivated by the operator, plus some minor cost to escalations in maintenance and chemical categories. We are working very hard to bring annual 2026 OpEx back in line with our expectations.

Speaker #2: I also want to acknowledge, as Darcy did, that operating expense was slightly above our expectations at $47.8 million. While flat on a per BOE basis, we did experience higher-than-expected processing fees, which resulted from higher-than-expected volumes on non-operated central Alberta volumes, which were reactivated by the operator, plus some minor cost escalations in maintenance and chemical categories.

Adam Gray: I also want to acknowledge, as Darcy Reding did, that OpEx was slightly above our expectations at CAD 47.8 million. While flat on a per BOE basis, we did experience higher than expected processing fees, which resulted in higher expected volumes on non-operated Central Alberta volumes, which were reactivated by the operator, plus some minor cost to escalations in maintenance and chemical categories. We are working very hard to bring annual 2026 OpEx back in line with our expectations.

Speaker #2: We are working very hard to bring annual 2026 operating expense back in line with our expectations. On an adjusted OPEX basis, as Darcy mentioned, our core facilities collectively operate at or near zero adjusted operating expense.

Adam Gray: On an adjusted OpEx basis, as Darcy mentioned, our core facilities collectively operate at or near zero adjusted operating expense. We may look to modify this measure going forward, but I think the moral of the story, or at least one way to look at it, is that third-party processing and sulfur revenues are fully funding our operating costs with actual hydrocarbon production revenues delivering free cash flow. On capital, we spent CAD 6.3 million in the quarter, consistent with guidance. Some of those expenditures were associated with procurement of parts associated with the upcoming Caroline turnaround in Q3. We also accelerated CAD 6.8 million of planned reclamation and abandonment spend into Q1. This was intentional, proactive planning of our ARO obligations, primarily getting into winter access-only facilities in Northeast BC.

Speaker #2: We may look to modify this measure going forward, but I think the moral of the story—or at least one way to look at it—is that third-party processing and sulfur revenues are fully funding our operating costs, with actual hydrocarbon production revenues delivering free cash flow.

Speaker #2: On capital, we spent $6.3 million in the quarter, consistent with guidance. Some of those expenditures were associated with procurement of parts associated with the upcoming Caroline turnaround in Q3.

Adam Gray: Some of those expenditures were associated with procurement of parts associated with the upcoming Caroline turnaround in Q3. We also accelerated CAD 6.8 million of planned reclamation and abandonment spend into Q1. This was intentional, proactive planning of our ARO obligations, primarily getting into winter access-only facilities in Northeast BC.

Speaker #2: We also accelerated $6.8 million of planned reclamation and abandonment spend into the first quarter. This was intentional, proactive planning of our ARO obligations, primarily getting into winter access-only facilities in northeast B.C.

Speaker #2: Finally, on this slide, a brief note that we saw 100% of our outstanding warrants exercised during the quarter, resulting in 18.2 million new shares issued and $3.5 million of cash proceeds.

Adam Gray: Finally, on this slide, a brief note that we saw 100% of our outstanding warrants exercised during the quarter, resulting in 18.2 million new shares issued and CAD 3.5 million of cash proceeds. These warrants were exercised at a weighted average exercise price of CAD 0.50. While this did cause some dilution in the quarter, it cleans up our capital structure, provided a bit of cash, and removed some mark-to-market complexity, which we've seen in our P&L, and we will not see anymore. All right. Turning to the balance sheet. As previously mentioned, we repaid $27 million of senior debt in Q1, the single largest quarter repayment in the company's history, reducing our total principal outstanding to $88.9 million.

Speaker #2: These warrants were exercised at a weighted average exercise price of $0.50, and while this did cause some dilution in the quarter, it cleans up our capital structure, provided a bit of cash, and removed some mark-to-market complexity, which we've seen in our P&L—and we will not see anymore.

Speaker #2: All right, turning to the balance sheet. As previously mentioned, we repaid US$27 million of senior debt in Q1, the single largest quarterly repayment in the company's history, reducing our total principal outstanding to US$88.9 million.

Adam Gray: All right. Turning to the balance sheet. As previously mentioned, we repaid $27 million of senior debt in Q1, the single largest quarter repayment in the company's history, reducing our total principal outstanding to $88.9 million.

Speaker #2: In Canadian dollars, total debt ended the quarter at $123.9 million, and net debt at just over $156 million. Since the first quarter of 2022, we've repaid total debt by $121 million.

Adam Gray: In Canadian dollars, total debt ended the quarter at CAD 123.9 million, and net debt at just over CAD 156 million. Since Q1 2022, we've repaid total debt by CAD 121 million. Cash interest expense is down 29% year-over-year, which reflects the compounding effect of disciplined debt repayment. Liquidity also improved significantly. We ended the quarter with CAD 9.5 million in cash and a fully undrawn US$22 million revolver, giving us total available liquidity of just over CAD 40 million, up from CAD 11 million at year-end. That liquidity capacity is an important buffer heading into Q2 and Q3, which include the two turnarounds and outages that Darcy mentioned. Our senior term notes and revolver mature in March 2027, and our subordinated notes mature in September 2027.

Speaker #2: Cash interest expense is down 29% year over year, which reflects the compounding effect of disciplined debt repayment. Liquidity also improved significantly. We ended the quarter with $9.5 million in cash and a fully undrawn US$22 million revolver, giving us total available liquidity of just over $40 million, up from $11 million at year-end.

Adam Gray: We ended the quarter with CAD 9.5 million in cash and a fully undrawn US$22 million revolver, giving us total available liquidity of just over CAD 40 million, up from CAD 11 million at year-end. That liquidity capacity is an important buffer heading into Q2 and Q3, which include the two turnarounds and outages that Darcy mentioned. Our senior term notes and revolver mature in March 2027, and our subordinated notes mature in September 2027.

Speaker #2: That liquidity capacity is an important buffer heading into Q2 and Q3, which include the two turnarounds and outages that Darcy mentioned. Our senior term notes and revolver mature in March of 2027, and our subordinated notes mature in September of 2027.

Speaker #2: You will see on our balance sheet that the term notes, totaling $74 million Canadian dollars, are classified as a current liability now. I have been clear that refinancing in 2026 is a priority, to provide certainty to our shareholders, to add flexibility to our balance sheet, to support future growth initiatives, and to reduce our cost of capital.

Adam Gray: You will see on our balance sheet that the term notes totaling CAD 74 million are classified as a current liability now. I have been clear that refinancing in 2026 is a priority to provide certainty to our shareholders, to add flexibility to our balance sheet, to support future growth initiatives, and to reduce our cost of capital. Those activities are ongoing, I'll continue to provide updates to the market as and when I have them. For context, absolute debt reduction is both strategically aligned and increases our competitive position in a refinancing initiative. In Q1, our actual debt repayment represented 30% of the remaining debt, which matures in March of next year. It wouldn't take very many similarly strong quarters to repay that balance in full. Finally, on this slide, I will make a quick comment on working capital deficit.

Speaker #2: Those activities are ongoing, and I'll continue to provide updates to the market as and when I have them. For context, absolute debt reduction is both strategically aligned and increases our competitive position in a refinancing initiative.

Adam Gray: Those activities are ongoing, I'll continue to provide updates to the market as and when I have them. For context, absolute debt reduction is both strategically aligned and increases our competitive position in a refinancing initiative. In Q1, our actual debt repayment represented 30% of the remaining debt, which matures in March of next year. It wouldn't take very many similarly strong quarters to repay that balance in full. Finally, on this slide, I will make a quick comment on working capital deficit.

Speaker #2: In Q1, our actual debt repayment represented 30% of the remaining debt, which matures in March of next year. It wouldn't take very many similarly strong quarters to repay that balance in full.

Speaker #2: Finally, on this slide, I will make a quick comment on working capital deficit. The primary driver of the increase in our working capital deficit is the addition of a deferred revenue liability on our balance sheet.

Adam Gray: The primary driver of the increase in our working capital deficit is the addition of a deferred revenue liability on our balance sheet. That liability comes from the sulfur prepayment we received in January. The amount of sulfur prepaid, but not yet delivered, is classified as a current liability and is worked down over the months as sulfur deliveries occur. The same will happen at Q2, as I expect to receive the H2 of the two-thirds prepayment in late June. This liability skews our non-cash working capital deficit number, but of course, is overall very positive to our cash management. Okay, turning to hedging.

Speaker #2: That liability comes from the sulfur prepayment we received in January. The amount of sulfur prepaid, but not yet delivered, is classified as a current liability and is worked down over the months as sulfur deliveries occur.

Speaker #2: The same will happen at Q2, as I expect to receive the second half of the two-thirds prepayment in late June. This liability skews our non-cash working capital deficit number, but of course is overall very positive to our cash management.

Speaker #2: Okay, turning to hedging, we have approximately 53% of remaining 2026 hydrocarbon production hedged, based on the midpoint guidance production range, with natural gas swapped at a weighted average price of $3.38 per GJ, and condensate protected through collars and swaps out to 2029.

Adam Gray: We have approximately 53% of remaining 2026 hydrocarbon production hedged based on midpoint guidance production range, with natural gas swapped at a weighted average price of CAD 3.38 per GJ, and condensate protected through collars and swaps out to 2029. We continue to monitor the forward market for opportunities to add gas hedging coverage above CAD 3 per GJ when pricing allows, which unfortunately it does not at the moment. March was quite a busy month on the hedging front, though not particularly impactful to 2026. We added 10 MW of power hedge in 2027 and 5 MW in 2028, as we view the current Alberta power market to be conducive to long-term hedging.

Speaker #2: We continue to monitor the forward market for opportunities to add gas hedging coverage above $3 per GJ when pricing allows, which, unfortunately, it does not at the moment.

Speaker #2: March was quite a busy month on the hedging front, though not particularly impactful to 2026. We added 10 megawatts of power hedge in 2027 and 5 megawatts in 2028, as we view the current Alberta power market to be conducive to long-term hedging.

Adam Gray: We added 10 MW of power hedge in 2027 and 5 MW in 2028, as we view the current Alberta power market to be conducive to long-term hedging. We also added a number of WTI hedges ranging from Q4 of 2026 into Q4 of 2029 at prices that increase our weighted average hedge prices across the board. As Darcy mentioned earlier, we have and will consider hedging a component of our 2027 sulfur production, especially considering that our remaining gas hedges roll off in May 2027.

Speaker #2: We also added a number of WTI hedges ranging from Q4 of 2026 into Q4 of 2029 at prices that increase our weighted average hedge prices across the board.

Adam Gray: We also added a number of WTI hedges ranging from Q4 of 2026 into Q4 of 2029 at prices that increase our weighted average hedge prices across the board. As Darcy mentioned earlier, we have and will consider hedging a component of our 2027 sulfur production, especially considering that our remaining gas hedges roll off in May 2027. The sulfur market is distinctly different than other markets we risk manage into due to the lack of forward price transparency. We plan risk management activities in the context of cash flow volatility reduction across our business, as opposed to simply targeting a specific percentage of production. More detail on these efforts will be made available as and if we have them. Okay. Finally, I'll discuss guidance a bit, starting by saying that we are not making any adjustments to our guidance today.

Speaker #2: As Darcy mentioned earlier, we have, and will, consider hedging a component of our 2027 sulfur production—especially considering that our remaining gas hedges roll off in May 2027.

Speaker #2: The sulfur market is distinctly different than other markets we risk manage into, due to the lack of forward price transparency. We plan risk management activities in the context of cash flow volatility reduction across our business, as opposed to simply targeting a specific percentage of production.

Adam Gray: The sulfur market is distinctly different than other markets we risk manage into due to the lack of forward price transparency. We plan risk management activities in the context of cash flow volatility reduction across our business, as opposed to simply targeting a specific percentage of production. More detail on these efforts will be made available as and if we have them. Okay. Finally, I'll discuss guidance a bit, starting by saying that we are not making any adjustments to our guidance today.

Speaker #2: More detail on these efforts will be made available as, and if, we have them. Okay, finally, I'll discuss guidance a bit, starting by saying that we are not making any adjustments to our guidance today.

Speaker #2: Certainly, Q1 has front-loaded cash generation, and we are feeling confident about our NOI and debt reduction targets. I also recognize that, as compared to the current sulfur spot price, our guided pricing assumption of US $237.50 for the second half of the year appears very conservative.

Adam Gray: Certainly, Q1 has front-loaded cash generation, we are feeling confident about our NOI and debt reduction targets. I also recognize that as compared to the current sulfur spot price, our guided pricing assumption of USD 237.50 for the H2 of the year appears very conservative. However, as we've previously discussed, gas prices remain sharply below our 2026 guidance range. We have a chart in our MD&A this quarter, which sensitizes 2026 NOI to various inputs. From that chart, a 10% move in sulfur price is worth nearly 3 times the cash flow impact to our business of a 10% move in AECO on a hedged basis. Overall, I believe our revenue diversification is functioning as designed.

Speaker #2: However, as we've previously discussed, gas prices remain sharply below our 2026 guidance range. We have a chart in our MD&A this quarter, which sensitizes 2026 NOI to various inputs.

Adam Gray: We have a chart in our MD&A this quarter, which sensitizes 2026 NOI to various inputs. From that chart, a 10% move in sulfur price is worth nearly 3 times the cash flow impact to our business of a 10% move in AECO on a hedged basis. Overall, I believe our revenue diversification is functioning as designed.

Speaker #2: From that chart, a 10% move in sulfur price is worth nearly three times the cash flow impact to our business of a 10% move in ACO on a hedged basis.

Speaker #2: Overall, I believe our revenue diversification is functioning as designed. Q2 will absorb the impact of the water and outage in June, which was previously discussed.

Adam Gray: Q2 will absorb the impact of the Waterton outage in June, which was previously discussed with some opportunistic capital spending planned during that time, both to meet regulatory requirements and hopefully to defer a planned major turnaround at that facility from 2028 to 2029. Q3 will be impacted by the 6-week planned Caroline turnaround.

Speaker #2: With some opportunistic capital spending planned during that time, both to meet regulatory requirements and, hopefully, to defer a planned major turnaround at that facility from 2028 to 2029.

Speaker #2: Q3 will be impacted by the six-week planned Caroline turnaround. The Q2 sulfur prepayment, which is expected to be repaid at the end of June, will provide ongoing debt repayment and working capital, and these outages are expected to be funded from operating cash flows.

Adam Gray: The Q2 sulfur prepayment, which is expected to repay at the end of June, will provide ongoing debt repayment and working capital, and these outages are expected to be funded from operating cash flows. Overall, we are very pleased with the quarter and with the evolving cash flow profile of our business, and very optimistic about delivering strong results throughout the remainder of the year. That concludes my prepared remarks, and I'll turn things back over to Dallas to manage our Q&A.

Speaker #2: Overall, we are very pleased with the quarter, and with the evolving cash flow profile of our business, and very optimistic about delivering strong results throughout the remainder of the year.

Speaker #2: That concludes my prepared remarks, and I'll turn things back over to Dallas to manage our Q&A.

Speaker #1: Thanks, Adam. Thanks, Darcy. What we're going to do for questions is I'll turn it back over to the operator to deal with any questions over the telephone.

Paul Kunkel: Thanks, Adam. Thanks, Darcy. what we're gonna do for the questions is I'll turn it back over to the operator, to deal with any questions over the telephone. Then, she'll turn it back to me, and we'll deal with any questions on the webcast or in the room. Go ahead, Dee Dee.

Dallas McConnell: Thanks, Adam. Thanks, Darcy. what we're gonna do for the questions is I'll turn it back over to the operator, to deal with any questions over the telephone. Then, she'll turn it back to me, and we'll deal with any questions on the webcast or in the room. Go ahead, Dee Dee.

Speaker #1: And then she'll turn it back to me, and we'll deal with any questions on the webcast or in the room. So, go ahead, DeeDee.

Speaker #3: Thank you. We will now take questions. If you have a question and you're viewing on webcast, please use the Ask a Question button in the top right-hand corner to type your question.

Dee Dee: Thank you. We will now take questions. If you have a question and you're viewing on webcast, please use the Ask a Question button in the top right-hand corner to type your question. If you have a question and you're participating via telephone, please press star 11 on your telephone keypad. There will be a brief pause while the participants register. Thank you for your patience. Our first question is from Adam Gill of Ventum Financial. Please proceed.

Operator: Thank you. We will now take questions. If you have a question and you're viewing on webcast, please use the Ask a Question button in the top right-hand corner to type your question. If you have a question and you're participating via telephone, please press star 11 on your telephone keypad. There will be a brief pause while the participants register. Thank you for your patience. Our first question is from Adam Gill of Ventum Financial. Please proceed.

Speaker #3: If you have a question and you're participating via telephone, please press star 1-1 on your telephone keypad. There will be a brief pause while the participants register.

Speaker #3: Thank you for your patience. Our first question is from Adam Gill of Ventum Financial. Please proceed.

Adam Gill: Hey, good afternoon, guys. Two questions from me. First off, on the Caroline plant, there's been, you know, increasing third-party volumes from the guys developing the glauconite play in the area. Do you have an idea based on your conversations with them and activity levels you're seeing, when you expect that to top out? Do you think, you know, how full will the plant end up being when that play reaches its peak?

Speaker #4: Hey, good afternoon, guys. So, two questions for me. First off, on the Caroline plant, there's been increasing third-party volumes from the guys developing the Guacamole plant in the area.

Speaker #4: Do you have an idea, based on your conversations with them and activity levels you're seeing, when do you expect that to top out? And do you think—how full will the plant end up being when that play reaches its peak?

Paul Kunkel: Paul Kunkel, Chief Commercial Officer. We believe in talking to the customers in the area that there's at least 5 years of development and drilling in the area. Because of the egress issues in the area, they're not drilling and developing as fast as they would like. We believe there's quite a bit of room there remaining. Ultimately, by the end of 2027, without any additional debottlenecking in the facility, we would consider Caroline full.

Speaker #1: Paul Kunkel, Chief Commercial Officer. We believe in talking to the customers in the area that there's at least five years of development and drilling in the area.

Speaker #1: Because of the egress issues in the area, they're not drilling and developing as fast as they would like, so we believe there's quite a bit of room there remaining. Ultimately, by the end of 2027, without any additional debottlenecking in the facility, we would consider Caroline full.

Speaker #4: Okay, sounds good. Second question, just on sulfur revenues and marketing. Obviously, some stability in the longer-term price realizations, I think, would be helpful for the stock.

Adam Gill: Okay. Sounds good. Second question, just on sulfur revenues and marketing. You know, obviously some stability in the longer term price realizations I think would be helpful for the stock. Can you give us any color on potential marketing arrangements that are out there? Is there an ability to hedge out 2027 this early in the year?

Speaker #4: Can you give us any color on potential marketing arrangements that are out there? Is there an ability to hedge out 2027 this early in the year?

Speaker #1: Yeah, we are in conversations with regards to 2027 hedging. We believe there is an opportunity to do that. It will depend on price, obviously, and we'll make a decision on the amount that we hedge based on price.

Paul Kunkel: We are in conversations with regards to 2027 hedging. We believe there is an opportunity to do that. It will depend on price obviously, and we'll make a decision on the amount that we hedge based on price. We believe there's appetite for at least 2027. Anything else further than that seems to be a little bit difficult at this time, certainly, 2027 is possible.

Speaker #1: But we believe there's appetite for at least 2027. Anything further than that seems to be a little bit difficult at this time, but certainly 2027 is possible.

Speaker #4: Okay, sounds good. Thank you for answering the questions.

Adam Gill: Okay. Sounds good. Thank you for answering questions.

Speaker #3: Thank you. And our next question comes from Maxmo of Emmy Joel. Please proceed.

Dee Dee: Thank you. Our next question comes from Maximo of EMIDEL. Please proceed.

Operator: Thank you. Our next question comes from Maximo of EMIDEL. Please proceed.

Speaker #4: Yes, hi, good afternoon. I wanted to get back to sulfur again. In the past, all of the sulfur was sold to Shell. I'd like to know who's buying it now.

Maximo: Yes. Hi, good afternoon. I wanted to get back to sulfur again. In the past, all of the sulfur was sold to Shell. I'd like to know who's buying it now. I'd also like to know from your chart where you indicate capacity of 1,500 tons a day in that faded blue line on the table, what we're doing to try and get to that maximum 1,500 tons a day, because clearly sulfur is the most profitable cash flow-wise product that we're selling right now. Why aren't we trying to maximize that?

[Analyst] (EMIDEL): Yes. Hi, good afternoon. I wanted to get back to sulfur again. In the past, all of the sulfur was sold to Shell. I'd like to know who's buying it now. I'd also like to know from your chart where you indicate capacity of 1,500 tons a day in that faded blue line on the table, what we're doing to try and get to that maximum 1,500 tons a day, because clearly sulfur is the most profitable cash flow-wise product that we're selling right now. Why aren't we trying to maximize that?

Speaker #4: And I'd also like to know from your chart, where you indicate capacity of 1,500 tons a day in that faded blue line on the table.

Speaker #4: What we're doing to try and get to that maximum 1,500 tons a day, because clearly sulfur is the most profitable, cash flow-wise, product that we're selling right now.

Speaker #4: So why aren't we trying to maximize that?

Speaker #1: It's Darcy here. I can answer that question. Thanks for the question. First of all, maybe I'll answer the second question first. The 1,500 metric ton per day number is obviously associated with all of our production capability being online.

Darcy Reding: It's Darcy here, I can answer that question. Thanks for the question. First of all, maybe I'll answer the second question first. The 1,500 metric tons per day number is obviously associated with all of our production capability being online. We currently have around 260 to 300 metric tons per day of sulfur production associated with the voluntarily shut-in production. The shut-in production will remain that way until we can come to an agreement with the third-party facility owner and operator that makes that production stream economic, sufficiently economic for us. Despite the fact that sulfur is obviously at a very high price right now, gas prices are still extremely low. The cost structure associated with that third-party facility is extremely high.

Speaker #1: We currently have around 260 to 300 metric tons per day of sulfur production associated with the voluntarily shut-in production. The shut-in production will remain that way until we can come to an agreement with the third-party facility owner and operator that makes that production stream economic, sufficiently economic for us.

Darcy Reding: The shut-in production will remain that way until we can come to an agreement with the third-party facility owner and operator that makes that production stream economic, sufficiently economic for us. Despite the fact that sulfur is obviously at a very high price right now, gas prices are still extremely low. The cost structure associated with that third-party facility is extremely high.

Speaker #1: Despite the fact that sulfur is obviously at a very high price right now, gas prices are still extremely low. The cost structure associated with that third-party facility is extremely high.

Speaker #1: And as a result, the economics of producing that stream is not that attractive, particularly for a depleting resource—every molecule you take out of the ground, you can't get it back to produce at a higher price.

Darcy Reding: As a result, the economics of producing that stream is not that attractive, particularly for a depleting resource that every molecule you take out of the ground, you can't get it back to produce at a higher price at a later time. Could you just repeat your first question again? I'm sorry. Oh, marketing. Who the buyer is, I think was your key question.

Speaker #1: At a later time. And could you just repeat your first question again? I'm sorry. Oh, marketing. Who the buyer is, I think, was your key question.

Maximo: Yeah.

[Analyst] (EMIDEL): Yeah.

Darcy Reding: We've been asked by the buyer not to disclose who it is. We don't believe that's a material fact or a piece of information. We have fully disclosed the terms of the arrangement, and that's what we're comfortable with disclosing.

Speaker #1: We've been asked by—yeah, we've been asked by the buyer not to disclose who it is. We don't believe that's a material fact or a piece of information.

Speaker #1: We have fully disclosed the terms of the disclosing.

Speaker #4: Can you confirm that it's not Shell?

Maximo: Can you confirm that it's not Shell?

[Analyst] (EMIDEL): Can you confirm that it's not Shell?

Darcy Reding: I can't confirm anything. I've provided the information that we're readily able to provide.

Speaker #1: I can't confirm anything. I've provided the information that we're readily able to provide.

Maximo: Okay.

[Analyst] (EMIDEL): Okay.

Speaker #4: Okay.

Speaker #3: Thank you. There are no further telephone questions at this time. I'd like to turn it back over to Mr. McConnell to manage the webcast question-and-answer portion of the call.

Dee Dee: Thank you. There are no further telephone questions at this time. I'd like to turn it back over to Mr. McConnell to manage the webcast question and answer portion of the call.

Operator: Thank you. There are no further telephone questions at this time. I'd like to turn it back over to Mr. McConnell to manage the webcast question and answer portion of the call.

Speaker #1: Thanks, DeeDee. We've had a couple of questions come in—a couple have been answered already, so we won't waste folks' time. First question: great quarter, everyone.

Dallas McConnell: Thanks, Dee Dee. We've had a couple questions come in. A couple have been answered already, so we won't waste folks' time. First question. Great quarter, everyone. Can you please shed some light on your approach to M&A? Particularly, would you favor acquisitions that skew sour to increase your sulfur throughput, especially considering your spare sulfur processing capacity and your unique capacity as a sulfur producer?

Speaker #1: Can you please shed some light on your approach to M&A? Particularly, would you favor acquisitions that skew sour to increase your sulfur throughput, especially considering your spare sulfur processing capacity and your unique capacity as a sulfur producer?

Speaker #5: Yeah, I think I can take that question. It's Darcy again. We would absolutely be very keen on making acquisitions of sour gas, particularly if it's sour gas that's in very close geographic proximity to our existing production, and even more particularly if we could bring that gas into our gas plant—if it wasn't already at our gas plant.

Darcy Reding: Yeah, I think I can take that question. It's Darcy again. We would absolutely be very keen on making acquisitions of sour gas, particularly if it's sour gas that's in very close geographic proximity to our existing production, and even more particularly if we could bring that gas into our gas plant if it wasn't already at our gas plant. We're somewhat agnostic in terms of what we would look at beyond that. Of course, the key driver for us would be any acquisition must be accretive to our current business. That's, that's a key consideration for us. Not only accretive on existing operating and financial metrics, but we would be looking at, acquiring upside that can be developed and brought online to enhance our business.

Darcy Reding: We're somewhat agnostic in terms of what we would look at beyond that. Of course, the key driver for us would be any acquisition must be accretive to our current business. That's, that's a key consideration for us. Not only accretive on existing operating and financial metrics, but we would be looking at, acquiring upside that can be developed and brought online to enhance our business.

Speaker #5: We're somewhat agnostic in terms of what we would look at beyond that. Of course, the key driver for us would be any acquisition must be accretive to our current business.

Speaker #5: That's a key consideration for us. Not only accretive on existing operating and financial metrics, but we would be looking at acquiring upside that can be developed and brought online.

Speaker #5: To enhance our business.

Speaker #1: Thank you, Darcy. Can you please provide the recent price at Vancouver FOB that sulfur is receiving?

Dallas McConnell: Thank you, Darcy. Can you please provide the recent price at Vancouver FOB that sulfur is receiving?

Speaker #6: Sure. Sure, I can take that. Paul Kunkel here. Currently, FOB Vancouver is receiving a price between $950 and $1,000 US dollars per metric ton.

Paul Kunkel: Sure. Sure, I can take that. Paul Kunkel here. Currently, FOB Vancouver is receiving a price between $950 and 1,000 US dollars per metric ton, which averages out to $975 per metric ton.

Speaker #6: Which averages out to $975 per metric ton.

Speaker #1: So I'd just add to that, that one-third of our 2026 production is capturing that Vancouver FOB price, less deductions to our Plant Gate of around $80 per US ton.

Darcy Reding: I'd just add to that's one third of our 2026 production is capturing that Vancouver FOB price, less deductions to our plant gate ARO of around $80 per US ton.

Paul Kunkel: Yeah.

Dallas McConnell: Go ahead.

Speaker #7: Should I go build with the FC capital? With regards to the voluntarily shut-in production, the third-party producer indicated that they're willing to start that facility.

Thiago Villa: Thiago Villa with AFC Capital. With regards to the voluntarily shut-in production, third-party producer indicated that they're willing to restart that facility if production comes back. Does Cavvy have any intention of restarting the production? Can you guys provide any more color in terms of that production and any sort of restoration timeline for the?

Speaker #7: If production comes back, does Cavvy have any intention of restarting the production? Or can you guys provide any more color in terms of that production, or any sort of commercial arrangements that might be happening?

Speaker #5: Yeah, I can answer that. It's Darcy again. For those online, we would very much like to restart that production, but it has to be at terms that are mutually beneficial.

Darcy Reding: Yeah, I can answer that. It's Darcy again, for those online. We would very much like to restart that production, but it has to be at terms that are mutually beneficial. So far, we have not reached that. We continue to work on that. At this point in time, that gas is contracted to that third party facility through to the end of calendar 2027. If we can get something on stream prior to that would be great. We're working on it. We don't have anything of substance to speak to on that at this point in time.

Speaker #5: And so far, we have not reached that. We continue to work on that. At this point in time, that gas is contracted to that third-party facility through to the end of calendar 2027.

Speaker #5: If we can get something on stream prior to that, that would be great. We're working on it. We don't have anything of substance to speak to on that at this point in time.

Thiago Villa: Just a quick follow-up on that. In 2027 when that contract expires, if there's no follow-up, is there an option to reactivate that pipeline down the shoreline?

Speaker #1: Just a quick follow-up on that. So in 2027, when that contract expires, if there's no follow-up, is there an option to reactivate that pipeline down to Caroline?

Speaker #5: Our intent is all of that gas production that is shut in right now, by the end of 2027, would be split and put back on production to both our own operated and owned facilities and also to another third-party facility in the area, which the production is jointly owned on a working interest basis between us and that facility operator.

Darcy Reding: Our intent is, all of that gas production that is shut in right now by the end of 2027 would be split and put back on production to both our own operated and owned facilities and also to another third-party facility in the area, which, the production is jointly owned on a working interest basis between us and that facility operator.

Thiago Villa: Thank you.

Speaker #1: Thank you.

Speaker #5: You're welcome.

Darcy Reding: Welcome.

Speaker #1: Thank you. Another question from the webcast: There was talk of adding power plants in the past. Is that still going to be an option in the future?

Dallas McConnell: Thank you. Another question from the webcast. There was talk of adding power plants in the past. Is that still going to be an option in the future?

Paul Kunkel: Paul Kunkel again. Yes, we continue to work on opportunities for both power plants and data centers. We are putting quite a bit of resource to identifying and screening opportunities. We have nothing to report on that right now, but certainly will when we are ready to do so.

Speaker #6: Paul Kunkel again. Yes, we continue to work on opportunities for both power plants and data centers. We are putting quite a bit of resource into identifying and screening opportunities.

Speaker #6: We have nothing to report on that right now, but certainly will when we are ready to do so.

Speaker #1: Great. That concludes the questions. We appreciate everyone for your time and for your participation today. We appreciate your interest in Cavvy. If you have further questions, please call us at 403-261-5900 or email the company at investors@cavvyenergy.com.

Dallas McConnell: Great. That concludes the questions. Appreciate everyone for your time and for your participation today. We appreciate your interest in Cavvy. If you have further questions, please call us at 403-261-5900 or email the company at investors@cavvyenergy.com. Thanks again. We look forward to speaking to you soon.

Speaker #1: Thanks again, and we look forward to speaking to you soon.

Dee Dee: Thank you. The conference call has now ended. Please disconnect your lines at this time, and we thank you for your participation.

Operator: Thank you. The conference call has now ended. Please disconnect your lines at this time, and we thank you for your participation.