Jul 31, 2026 earnings call — Production growth and Duvernay well success
Raised full-year production guidance to 71 thousand BOE per day and exited the quarter with net cash of $566 million.
Key quotes
"At Peavine, 6 of the wells brought on stream during the quarter have established average IP30 rates of 478 barrels per day per well results in Peavine continue to outperform internal expectations as development expands from the core."
"3 of the 4 wells delivered average IP30 rates of 46 BOE per day per well with 88% liquids."
"We repurchased 22 million shares for $139 million and exited the quarter with net cash of $566 million"
Analyst Q&A 3
buybacks and Gilby well results
Q (Phillips Johnston · Capital 1): Asked how opportunistic buybacks will be and whether an SIB is still possible. Also asked if the strong Gilby well results change development plans or inventory assumptions.
A: Management said they prefer steady dollar-cost averaging for buybacks and plan to keep about $2.5 million a day through the back half of the year. They have ruled out an SIB and expect to meet the $650 million target through the NCIB. On Gilby, they said results confirm expectations but it is too early to count any upside, and there is no change to plans.
"In fact, yeah, we have basically ruled out an SIB today." — Chad L. Kalmakoff (CFO)
Duvernay completions, pilots, Pekisko, hedging
Q (Amir Arif · ATB Capital): Asked whether the strong Duvernay results came from different completion methods. Asked what patterns will be tested in the Peavine injection pilots. Asked timing and cost for Pekisko tests. Asked the plan for hedging going forward.
A: They said Duvernay work is evolving from near-wellbore to far-field designs with cluster and BIRF tweaks, tests of tonnage and water loading, and the Gilby pads tested higher tonnage; results are promising but need more time. For Peavine, the two new pilots are new injectors and producers on a different pad with slightly different rock and will test injecting at the same time as production. Pekisko tests are being permitted for Q1 2027 and they estimated about $2.5 million per test well. On hedging, with the current balance sheet they are not adding WTI hedges and will let commodity prices flow.
"Where the balance sheet is at today, we are not looking to do any more WTI hedges, we will just let it flow with the commodity." — Chad L. Kalmakoff (CFO)
Duvernay cost gains and Gemini FID work
Q (Dennis Fong · CIBCWM): Asked whether further cost or technical improvements are coming in Duvernay as development scales. Also asked what work remains before a final investment decision on Gemini.
A: They said Duvernay costs have steadily improved: this year is $10 per foot and the target is $9 per foot, with more efficiency work ongoing on drilling, completions, surface water and infrastructure. For Gemini, they said three main areas remain: subsurface characterization, surface facility and capital-cost assessment, and regulatory clarity; the team has been expanded and they are working through those items toward a late-2027 decision horizon.
"This year, $10 per foot and our target is $9 per foot." — Kendall D. Arthur (COO)