Logan Energy's Path to Production Growth and Shareholder Value

Logan Energy Corp. (TSXV:LGN) has emerged as a standout performer in the Canadian oil and gas sector, driven by a combination of operational execution, strategic capital allocation, and favorable market dynamics. In Q2 2025, the company reported record production of 12,013 BOE per day (41% liquids), a 20% sequential increase and a 65% year-over-year surgeLOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND …^[1]. This momentum, fueled by the successful completion of the Pouce Coupe 4-19 Facility and aggressive drilling in the Lower Montney play, positions Logan to deliver sustained growth and enhanced shareholder value in the near term.

Operational Momentum: A Catalyst for Growth

Logan's production surge in Q2 2025 was anchored by the Pouce Coupe asset, where the 4-19 Facility enabled the company to bring nine wells online. The 7-12 pad alone averaged 650 barrels of oil per day (bbls/d), 20 bbls/d of NGLs, and 2.2 million cubic feet per day (mmcf/d) of natural gasLOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND …^[1]. This infrastructure-driven expansion allowed Logan to approach a peak of ~10,000 BOE/day at Pouce Coupe, with full-year 2025 production guidance now targeting ~16,000 BOE/dayLOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND …^[1].

The company's operational discipline is further underscored by its resumption of drilling in the Lower Montney oil play at Simonette. With two wells slated for completion in Q4 2025, Logan is diversifying its production base and extending its inventory of high-margin opportunitiesLOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND …^[1]. Such strategic moves not only bolster near-term output but also de-risk long-term cash flow visibility—a critical factor for investors evaluating energy stocks in a volatile macro environment.

Financial Performance: Efficiency and Debt Reduction

Logan's operational success has translated into robust financial metrics. In Q1 2025, the company achieved an Operating Netback of $21.03 per BOE, a 20% improvement from $17.54 per BOE in Q1 2024Logan Energy Corp. announces first quarter 2025 …^[2]. This was supported by higher liquids production (34% of total output) and effective cost management, despite elevated capital expenditures of $96.3 million for the quarterLogan Energy Corp. announces first quarter 2025 …^[2].

Notably, Logan's net debt stood at $92.5 million as of March 31, 2025, or 1.4 times its annualized Adjusted Funds FlowLogan Energy Corp. announces first quarter 2025 …^[2]. The company expects this leverage ratio to decline in H2 2025 as capital spending shifts to the back half of the year. Additionally, Logan upsized its credit facility to $150 million, providing flexibility to fund growth while maintaining a conservative balance sheetLogan Energy Corp. announces first quarter 2025 …^[2].

Valuation Metrics: Attractive Multiples Amid Growth Prospects

From a valuation perspective, Logan Energy appears undervalued relative to its growth trajectory. The stock trades at a forward P/E ratio of 9.70Logan Energy (TSXV:LGN) Statistics & Valuation Metrics - Stock Analysis^[3], significantly below the Canadian oil and gas industry average. Analysts project revenue growth of 50% annually over the next two yearsLOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND …^[1], outpacing the sector's 3.2% forecast. This optimism is reflected in the company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 8.02Logan Energy (TSXV:LGN) Statistics & Valuation Metrics - Stock Analysis^[3], which suggests the market is not yet fully pricing in Logan's upside potential.

A key tailwind for valuation is the company's hedging strategy. Logan has secured 34% of its 2025 crude oil production at an average price of CA$102.05 per barrelLOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND …^[1], insulating cash flows from near-term commodity price volatility. This risk mitigation enhances predictability for investors and supports consistent dividend growth or reinvestment in high-return projects.

Implications for Shareholders

Logan Energy's dual focus on production growth and financial prudence creates a compelling case for long-term shareholders. With Q2 2025 earnings per share (EPS) at CA$0.03—up from CA$0.001 in Q2 2024LOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND …^[1]—the company is demonstrating its ability to convert operational gains into profitability. The projected H2 2025 production average of ~16,000 BOE/dayLOGAN ENERGY CORP. ANNOUNCES RECORD PRODUCTION AND …^[1] could further accelerate earnings, potentially driving a re-rating of the stock as the market recognizes its momentum.

Moreover, Logan's strategic use of debt and hedging positions it to navigate macroeconomic headwinds while maintaining growth. For investors, this translates to a high-conviction opportunity in a sector where disciplined operators like Logan are increasingly scarce.

Conclusion

Logan Energy's near-term operational momentum—marked by record production, infrastructure expansion, and disciplined capital allocation—provides a strong foundation for sustained shareholder value creation. With favorable valuation metrics, a robust balance sheet, and a clear path to production growth, the company is well-positioned to outperform peers in the coming year. For investors seeking exposure to a high-growth Canadian energy play, Logan Energy offers an attractive and well-justified opportunity.