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Cavvy Energy (CVVY) AI Stock Analysis
Cavvy Energy
(TSX:CVVY)
The overall score reflects strengthening financial performance and cash generation, supported by a clear price uptrend and very constructive earnings-call guidance and balance-sheet improvement. These strengths are meaningfully offset by a demanding valuation with a high P/E ratio and no dividend, alongside a history of volatile results and ongoing operational and commodity-cycle risks.
Cavvy Energy (CVVY) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 779.59M
- Dividend Yield
- ―
- Average Volume (3M)
- 544.98K
- Price to Earnings (P/E)
- 87.5
- Beta (1Y)
- 0.73
- Revenue Growth
- 42.92%
- EPS Growth
- ―
- Country
- Canada
- Employees
- 257
- Sector
- Energy
- Sector Strength
- 65
- Industry
- Oil & Gas Exploration & Production
Cavvy Energy Business Overview & Revenue Model
Company Description
Cavvy Energy Ltd., an integrated energy company based in Calgary, Canada, operates across both upstream and midstream sectors. The firm focuses on the development, production, and processing of natural gas, natural gas liquids, condensate, and sulphu...
Cavvy Energy Earnings Call Summary
The call presented strong positive operational and financial momentum: record operating netback, materially higher cash flow, rapid debt reduction, midstream volume/revenue growth, and a secured sulfur hedge that provides significant 2027 cash‑flow certainty. Challenges were operational (Waterton unplanned outage, upcoming turnarounds), several shut‑in volumes that remain inactive, some realized-price timing/lag effects and higher royalties, and a planned moderation of debt paydown in H2 to fund productive capital. On balance the favorable cash‑flow and balance sheet progress, plus the meaningful sulfur hedging and midstream growth, outweigh the operational and price‑timing negatives.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Cavvy raised 2026 net operating income guidance to $170–$180M (from $125–$140M) and increased 2026 capital to $52–$57M (from $35–$40M) — adding ~$7M for optimization, ~$6M for maintenance and ~$4M for other initiatives — while revising year‑end total debt to $75–$85M after repaying $76.5M YTD (including ~$39M in Q2) and leaving $86.8M principal at quarter end; Q2 operating metrics included ~21.5k BOE/d production (80% gas / 20% liquids), 984 tpd sulfur, ~152 MMcf/d third‑party processing (volumes +27% YoY, revenues +26% YoY) and >$40M expected midstream revenue for 2026, with Q2 net operating income ~ $50M, funds flow ~ $42M, record operating netback $25.38/BOE, realized gas $2.81/GJ (market $1.52), condensate CAD102.86/bbl (market CAD129.70), and realized sulfur CAD478/t (market CAD877/t) — hedges include 66.7k GJ/d gas at $3.40/GJ and ~1.48k bbl/d condensate at CAD85.71/bbl (~53% of midpoint hydrocarbon production), plus a 2027 sulfur fixed sale of 200k t (~50% of production) at US$525/t (locking >$100M of 2027 net revenue); debt maturities are $39M Mar‑2027 (no penalty) and $48M Sep‑2027 (make‑whole), current debt costs are SOFR+6.75% and 13% sub‑debt, management is pursuing refinancing to sub‑10% rates and greater revolver flexibility, expects Waterton outage to last ~4 weeks and Caroline turnaround in early September, and will modestly slow H2 debt repayment to fund higher 2026 capital but plans to reaccelerate repayments in Q1‑2027.
Cavvy Energy Financial Statement Overview
Summary
Financial results show a return to modest profitability, materially lower leverage, and strong operating and free cash flow in the TTM period. Margins remain thin and multi-year volatility in revenue, returns, and cash generation, including past negative equity and weak ROE, still tempers overall financial quality.
Income Statement
63PositiveBalance Sheet
69PositiveCash Flow
77Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 282.24M | 217.91M | 222.77M | 368.14M | 443.58M | 321.81M |
| Gross Profit | 96.83M | -9.63M | 141.54M | 60.98M | 143.54M | 79.33M |
| EBITDA | 61.19M | -1.66M | 34.49M | 103.96M | 175.24M | 52.96M |
| Net Income | 8.00M | -4.87M | -38.91M | 8.98M | 146.58M | -39.68M |
Balance Sheet | ||||||
| Total Assets | 560.42M | 569.39M | 612.42M | 638.54M | 615.48M | 622.54M |
| Cash, Cash Equivalents and Short-Term Investments | 40.19M | 5.80M | 8.58M | 18.33M | 22.27M | 26.22M |
| Total Debt | 85.60M | 155.35M | 172.51M | 175.73M | 206.94M | 234.31M |
| Total Liabilities | 390.62M | 430.85M | 444.00M | 464.13M | 500.72M | 655.75M |
| Stockholders Equity | 169.80M | 138.55M | 168.43M | 174.75M | 115.10M | -32.83M |
Cash Flow | ||||||
| Free Cash Flow | 105.33M | 13.12M | -18.57M | 48.66M | 48.64M | 16.20M |
| Operating Cash Flow | 129.85M | 36.45M | 7.13M | 104.20M | 88.17M | 51.12M |
| Investing Cash Flow | -22.98M | -22.39M | -18.15M | -58.90M | -28.86M | -33.51M |
| Financing Cash Flow | -73.39M | -16.84M | 1.26M | -49.25M | -63.10M | -2.80M |
Cavvy Energy Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CVVY, the sentiment is Neutral. The current price of 2.52 is below the 20-day moving average (MA) of 2.53, above the 50-day MA of 2.31, and above the 200-day MA of 1.62, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 48.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CVVY.
Cavvy Energy Peers Comparison
Overall Rating
TSE:ALV85.3Outperform- TSE:CVVY71Outperform
TSE:PRQ67Neutral
TSE:GASX60Neutral
TSE:RBY56Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:ALV | 85Outperform | CAD 355.17M | 9.21 | 27.62% | 7.05% | 28.63% | 24.06% |
| TSE:CVVY | 71Outperform | CAD 747.51M | 87.50 | 5.33% | ― | 42.92% | ― |
| TSE:PRQ | 67Neutral | CAD 262.00M | -112.90 | -0.66% | 6.86% | 25.52% | -126.16% |
| Sector * | 65Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
| TSE:GASX | 60Neutral | CAD 273.07M | 6.23 | 57.31% | ― | 39.79% | ― |
| TSE:RBY | 56Neutral | CAD 426.31M | 16.81 | 7.79% | ― | 15.04% | -61.00% |
* Energy Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:CVVY | Cavvy Energy Ltd | 2.52 | 1.60 | 173.91% | |
| TSE:ALV | Alvopetro Energy | 9.52 | 3.43 | 56.22% | |
| TSE:GASX | NG Energy International Corp. | 1.00 | -0.04 | -3.85% | |
| TSE:PRQ | Petrus Resources | 1.75 | 0.09 | 5.68% | |
| TSE:RBY | Rubellite Energy Inc | 4.54 | 1.90 | 71.97% |
Cavvy Energy Corporate Events
Cavvy Energy to Present Q3 Results and Boost Investor Outreach at Sector Conference
PositiveCavvy Energy Ltd. will release its third-quarter 2026 financial and operating results after markets close on November 5, 2026, followed by an investor conference call and webcast on November 6 led by President and CEO Darcy Reding and CFO Adam Gray....
Cavvy Energy Leverages Record Sulphur Prices to Boost Q2 Earnings and Accelerate Debt Reduction
PositiveCavvy Energy reported strong second-quarter 2026 results, driven by record sulphur revenues and robust third-party gas processing activity, despite lower production volumes caused by scheduled plant downtime. Net operating income rose 87% year over y...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 28, 2026