Yangarra Announces 2026 Third Quarter Financial and Operating Results

Yangarra delivered sharply higher Q3 profits and cash flow on strong production and disciplined costs.

What the company is saying

Yangarra Resources Ltd. reports a 75% year-over-year increase in Q3 2026 funds flow from operations to $23.1 million ($0.20 per share fully diluted), highlighting robust operational and financial performance. The company frames its narrative around substantial growth in oil and gas revenue, which rose 54% to $37.5 million, and a 69% increase in adjusted EBITDA to $24.5 million ($0.22 per share fully diluted). Net income surged 262% to $8.3 million ($0.07 per share fully diluted), with average production up 6% to 10,111 boe/d (45% liquids). The release emphasizes cost discipline, citing operating costs of $9.57/boe (including $3.36/boe transportation), an operating netback of $28.92/boe, and a 72% operating margin. Capital expenditures for the quarter totaled $22.7 million, and adjusted net debt stands at $111.2 million. Operationally, Yangarra drilled seven wells and completed four in Q3, with a continued focus on the Belly River formation for the upcoming winter program. CEO James Evaskevich is named as the key executive contact, reinforcing management’s direct involvement in the operational strategy.

What the data suggests

The disclosed figures show a significant improvement in Yangarra’s financial and operational metrics compared to Q3 2025. Funds flow from operations reached $23.1 million, up 75%, while oil and gas revenue climbed to $37.5 million, a 54% increase. Adjusted EBITDA of $24.5 million and net income of $8.3 million represent year-over-year gains of 69% and 262%, respectively. Average production rose to 10,111 boe/d, with a 45% liquids mix, and operating netback improved to $28.92/boe. Cost control is evident in operating costs of $9.57/boe and all-in cash costs of $16.72/boe, supporting a 72% operating margin. Capital expenditures were $22.7 million, with adjusted net debt at $111.2 million and a debt-to-annualized funds flow ratio of 1.2:1, indicating manageable leverage. The company’s drilling activity—seven wells drilled, four completed, and three DUCs—demonstrates ongoing investment in production growth. All farm-in commitments in the Cardium are satisfied, and the company has earned rights in both Cardium and Belly River in Chambers, positioning it for further development. The numbers are detailed and transparent, with clear period-over-period comparability and no material gaps in disclosure.

Analysis

The announcement is highly factual and supported by detailed, audited financial and operational data for Q3 2026. Key profitability metrics (net income, EBITDA, funds flow from operations) are disclosed alongside revenue, production, and cost figures, all showing substantial year-over-year improvement. The majority of claims are realised and quantified, with only a small portion of the release devoted to forward-looking statements about the upcoming Belly River development program. These forward-looking elements are clearly separated from the realised results and are not exaggerated or presented as certain outcomes. Capital expenditures are disclosed and matched with immediate operational results (wells drilled and completed), so there is no disconnect between spend and realised benefit. The tone is positive but proportionate to the strong operational and financial performance. There is no evidence of narrative inflation or overstatement.

Risk flags

• ●Commodity price volatility remains a core risk, as realised pricing for light crude oil was $115.49/bbl in Q3 2026, but benchmark prices can fluctuate sharply, directly impacting revenue and margins.
• ●Leverage is moderate but material, with adjusted net debt at $111.2 million and a debt-to-annualized funds flow ratio of 1.2:1; any downturn in commodity prices or operational setbacks could pressure balance sheet flexibility.
• ●Operational execution risk persists, particularly as the company shifts focus to Belly River development and tests three different well designs in Q4; unsuccessful results or cost overruns could affect future production and returns.

Bottom line

Yangarra’s Q3 2026 results show strong year-over-year growth in cash flow, revenue, and profit, driven by higher production and disciplined cost management. The company’s financial position is solid, with manageable debt and robust operating margins, supporting ongoing capital investment in Alberta. All farm-in commitments are now satisfied, and the company is positioned to advance Belly River development in the near term. While commodity price swings and execution on new well designs remain key risks, the realised results provide a credible foundation for further growth. Investors should focus on the outcome of the upcoming Belly River wells and any changes in leverage or cost structure as the next catalysts. The most important takeaway is that Yangarra is currently delivering on both operational and financial fronts, with realised gains and a clear plan for continued development.

Announcement summary

(TSX:YGR) Yangarra Resources Ltd. announced its financial and operating results for the three and nine months ended September 30, 2026. Funds flow from operations for Q3 2026 was $23.1 million, or $0.20 per share fully diluted, representing a 75% increase from Q3 2025. Oil and gas revenue for the quarter was $37.5 million, up 54% from the same period in 2025. Adjusted EBITDA was $24.5 million ($0.22 per share fully diluted), a 69% increase year-over-year. Net income for Q3 2026 was $8.3 million ($0.07 per share fully diluted), up 262% from Q3 2025. Average production was 10,111 boe/d (45% liquids), a 6% increase from Q3 2025. Operating costs were $9.57/boe, including $3.36/boe of transportation costs. The operating netback was $28.92/boe, with an operating margin of 72% and funds flow from operations margin of 62%. G&A costs were $1.64/boe, and royalties were 8% of oil and gas revenue. All-in cash costs were $16.72/boe. Capital expenditures for the quarter totaled $22.7 million. Adjusted net debt to third quarter annualized funds flow from operations was 1.2:1, with adjusted net debt at $111.2 million. Retained earnings stood at $378.1 million, and decommissioning liabilities were $18.2 million (discounted). Yangarra drilled seven wells in Q3 2026 and completed four, leaving three wells drilled but uncompleted at quarter-end. Year-to-date, the company drilled 19 wells and completed 16, with ten in the Belly River formation and nine in the Cardium. The 2026 Cardium drilling program is complete, and all farm-in commitments have been satisfied, earning all rights in the Cardium and Belly River in Chambers. The company plans to focus on Belly River development for the winter program, with the Q4 program including three Belly River wells on the same pad using three different well designs. For Q3 2026, petroleum and natural gas sales were $37,479,000, income before tax was $11,058,000, and net income was $8,303,000. Net income per share was $0.08 basic and $0.07 diluted. Funds flow from operations was $23,060,000, with cash flow from operating activities at $20,868,000. Weighted average shares outstanding were 105,595,000 basic and 112,499,000 diluted. As of September 30, 2026, property and equipment totaled $849,968,000, total assets were $940,741,000, working capital surplus was $16,708,000, adjusted net debt was $111,235,000, and shareholders' equity was $618,286,000. The company reported a sales price of $40.29/boe, royalty expense of $3.18/boe, production costs of $6.21/boe, and transportation costs of $3.36/boe for Q3 2026. The field operating netback was $27.54/boe, and the operating netback was $28.92/boe. Net income netback was $8.92/boe. Realized pricing for Q3 2026 was $115.49/bbl for light crude oil, $43.94/bbl for NGLs, and $2.19/mcf for natural gas. Daily production volumes for Q3 2026 were 33,475 mcf/d natural gas, 2,085 bbl/d light crude oil, and 2,447 bbl/d NGLs, for a combined 10,111 boe/d. Petroleum and natural gas sales for Q3 2026 were $37,479,000, with a realized gain on commodity contract settlement of $1,285,000, total sales of $38,764,000, royalty expense of $2,958,000, and total revenue net of royalties of $35,806,000. Capital spending for Q3 2026 included $20,091,000 for drilling and completion, $2,509,000 for equipment, and $174,000 for other asset additions, totaling $22,747,000. The company’s credit facility limit was $160,000,000 as of September 30, 2026. The company’s unaudited condensed interim consolidated financial statements and management’s discussion and analysis have been filed on SEDAR+ and are available on the company’s website. James Evaskevich is the CEO of Yangarra Resources Ltd.

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