Journey Energy (TSX: JOY, OTCQX: JRNGF):

• Shares O/S FD – FD 69.5MM

• Market Cap ~$279.16MM

• Net debt - ~$47.2MM

• EV ~ $326.36MM

• AVG daily trading volume 110k/shares

• $38M of convertible debentures with a strike price of $5.00

Key Highlights:

📌 Journey came out of the downturn with excessive leverage, but a great low decline asset base of 13%.

📌 The company made a key acquisition in Medicine Hat of low decline assets with 34 undrilled locations with an active polymer flood, and has recently drilled eight successful wells.

📌 Q3 was a solid beat, reducing net debt and increasing cash flow and production (see new guidance below)

📌 JV with Spartan Delta on 128 sections in the Duvernay.  JOY 30% and SDE 70%. These 128 sections have a pay thickness between 30-40M, the sweet spot of the Duvernay 9 wells drilled and completed, ahead of schedule, producing above expectations.

📌 JOY recently secured an a RBL from a major bank of $55M (undrawn) to support their portion of Duvernay drilling, which should be self-funding by 2027.

📌 The company has 1BBOIP booked only at 5% recovery factor with 254 net locations identified and a PDP NPV10 value of $350M. Most of their peers trade above PDP value. Including nothing for the Duvernay.

📌 Significant insider buying by the CEO and board of directors of> 1.5MM shares

📌 Ownership is between is > than 30% by insiders, Aimco and other institutions.

📌 Tax pools of $675M.

Forecast for 2025:

▫️ Production -11,200 BOEPD

▫️ Capex $ 54M

▫️ CFPS $1.04 per share

▫️ Main Catalyst will be Duvernay wells and Gilby power plant coming online in Q1 2026.