Journey Energy: 2025 Guidance and Debt Repayment Amendment Signal Strong Growth Potential

Journey Energy Inc. (TSX: JOY, OTCQX: JRNGF) has provided preliminary guidance for 2025 and announced an amendment to its term debt repayment terms, signaling a strong growth trajectory for the company. The strategic moves align with Journey's long-term growth strategy and position the company for future success.

2025 Capital Program and Guidance

Journey Energy's 2025 capital program focuses on advancing development activities within the Duvernay Joint Venture. The company announced a cap on joint venture drill, complete, equip, and tie-in expenditures at $100 million gross dollars for 2025. Journey currently forecasts participating in all wells and spending approximately $30 million net dollars for drilling, completing, equipping, and tieing-in 7 (2.1 net) wells. The majority of these locations will be drilled from two-three well pads to maximize operational efficiencies and minimize costs.

Total capital expenditures for Journey in 2025 are forecast to be $50 million. Capital for 2025 includes $30 million for the Duvernay program; $10 million of capital toward the completion of ongoing power projects; with the remainder allocated to end-of-life, polymer, land, seismic acquisition, and miscellaneous other expenditures.

The company's preliminary guidance for 2025 includes:

* Annual average daily sales volumes of 10,800-11,200 boe/d (58% crude oil & NGLs)
* Adjusted Funds Flow of $68 - $70 million
* Adjusted Funds Flow per weighted average share of $1.01 - $1.05
* Capital spending of $50 million
* Year-end Net Debt to Adjusted Funds Flow ratio of $41 - $43 million (0.6x)

Term Debt Repayment Amendment

Journey Energy and its long-term capital provider and largest shareholder, Alberta Investment Management Corporation ("AIMCo"), have reached an agreement to amend the repayment terms of the remaining outstanding balance as at February 28, 2025 of approximately $12.4 million. Under the new repayment terms, payments of principal and interest from March 31, 2025 to August 31, 2025 will be paused. On September 30, 2025, equal principal payments of approximately $2.1 million, plus accrued interest, will resume and continue until a final payment on February 27, 2026.

The deferral of the balance of approximately $12.4 million of near-term payments, coupled with the cash flows from the new Duvernay wells as well as Journey's existing operations, is intended to assist the Company with funding the Duvernay development program. Journey continues to look at funding alternatives to simplify its capital structure and to accelerate Duvernay expenditures in 2026.

Implications and Outlook

Journey Energy's 2025 guidance and term debt repayment amendment signal a strong growth trajectory for the company. The focus on the Duvernay Joint Venture, coupled with the amendment to the term debt repayment terms, positions Journey for future success. The company's strategy of growing its production base by drilling on its existing core lands, implementing secondary and tertiary flood projects on its existing lands, and executing on accretive acquisitions, further supports its long-term growth potential.




In conclusion, Journey Energy's 2025 guidance and term debt repayment amendment demonstrate the company's commitment to growth and long-term success. The strategic moves align with the company's long-term growth strategy and position Journey for future prosperity.