(MENAFN- Newsfile Corp) Calgary, Alberta--(Newsfile Corp. - November 5, 2025) - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) (" Journey " or the " Company ") is pleased to announce its financial and operating results for the three and nine month periods ending September 30, 2025. The complete set of financial statements and management discussion and analysis are posted on and on the Company's website .

Highlights for the third quarter:

• Generated sales volumes of 11,862 boe/d in the third quarter (50% crude oil; 11% NGL's; 39% natural gas).

• Realized Adjusted Funds Flow of $20.5 million or $0.30 per basic and diluted share.

• Continued with the construction of the Gilby power generation asset. The initial start date (" ISD ") of this project is currently scheduled for the first quarter of 2025.

• Reduced Net Debt to $55.4 million, representing an 8% decrease from year-end 2024. $38 million of net debt is in the form of a Convertible Debenture (March 20, 2024) and is not due until March 2029.

• Closed two divestments of non-core assets yielding proceeds of $3.2 million. Production from both these divestments was approximately 275 boe/d (85% natural gas) at the time of their disposition.

Subsequent to the end of the quarter:

• Closed two minor asset dispositions with proceeds of $0.2 million and reduced the asset retirement obligations by approximately $9 million (undiscounted). These assets collectively were producing approximately 170 boe/d (75% natural gas) at the time of their disposition.

Financial & Operating Highlights

		Three months ended September 30,			Nine months ended September 30,
Financial ($000's except per share amounts)		2025			2024			% change			2025			2024			% change
Sales revenue		51,554			47,046			10			148,782			149,669			(1	)
Net income		4,439			598			642			16,232			1,518			969
Basic ($/share)		0.06			0.01			500			0.24			0.02			1,100
Diluted ($/share)		0.06			0.01			500			0.24			0.02			1,100
Adjusted Funds Flow (1)		20,454			13,552			51			55,962			40,779			37
Basic ($/share)		0.30			0.22			36			0.83			0.66			26
Diluted ($/share)		0.30			0.20			50			0.83			0.61			36
Cash flow provided by operating activities		12,778			6,249			104			37,552			22,501			67
Basic ($/share)		0.19			0.10			87			0.56			0.37			53
Diluted ($/share)		0.19			0.09			99			0.56			0.34			65
Capital expenditures, including A&D (1)		8,049			8,126			(1	)		43,092			25,762			67
Net debt (1)		55,358			52,676			10			55,358			52,676			10
Share Capital (000's)
Basic, weighted average		67,107			61,350			9			67,107			61,350			9
Basic, end of period		67,107			61,350			9			67,107			61,350			9
Fully diluted (1)		69,497			68,346			2			69,497			68,346			2
Daily Sales Volumes
Natural gas (Mcf/d)
Conventional		19,735			24,826			(21	)		21,648			26,001			(17	)
Shale		4,124			-			-			1,690			-			-
Coal bed methane		3,791			4,319			(12	)		3,781			4,309			(12	)
Total natural gas volumes		27,650			29,145			(5	)		27,119			30,310			(11	)
Crude oil (bbl/d)
Light/medium		1,695			3,097			(45	)		2,588			3,082			(16	)
Tight		2,173			-			-			877			-			-
Heavy		2,053			2,149			(4	)		2,063			2,201			(6	)
Total crude oil volumes		5,921			5,246			13			5,528			5,283			5
Natural gas liquids (bbl/d)		1,333			1,048			27			1,225			1,095			12
Barrels of oil equivalent (boe/d)		11,862			11,152			6			11,273			11,430			(1	)
Average Realized Prices (including hedging)
Natural gas ($/mcf)		1.31			0.51			157			1.80			1.30			38
Crude Oil ($/bbl)		78.70			85.45			(8	)		79.81			86.31			(8	)
Natural gas liquids ($/bbl)		43.57			46.10			(5	)		44.97			46.36			(3	)
Barrels of oil equivalent ($/boe)		47.24			45.86			3			48.35			47.79			1
Operating Netback ($/boe)
Realized prices (excl. hedging)		47.24			45.86			3			48.34			47.79			1
Royalties		(7.75	)		(7.79	)		(1	)		(8.06	)		(9.08	)		(11	)
Operating expenses		(17.24	)		(19.74	)		(13	)		(17.93	)		(20.55	)		(13	)
Transportation expenses		(1.57	)		(1.15	)		37			(1.19	)		(1.20	)		(1	)
Operating netback (1)		20.68			17.18			20			21.16			16.96			25

Notes:
⁽¹⁾ See appendix for reconciliation of Non-IFRS measures.

OPERATIONS

In the spring of 2024, with the announcement of our Duvernay Joint Venture (" JV "), Journey began its transition from a lower margin conventional producer to a higher margin more sustainable growth company. Although Journey is still at the early stages of this transformation, a solid framework is in place. Journey has achieved a number of milestones toward its goals of increasing operating income per share while reducing asset retirement obligations (" ARO ") as a percentage of proved, developed, producing value. With 9 new Duvernay wells (2.7 net) now on-production, the potential for the Duvernay to add significant operating income is well established. Although time consuming and labor intensive, the non-core asset rationalization is beginning to play a meaningful role in this transformation. Asset sales of non-core, higher operating cost assets will likely continue, and possibly accelerate, into 2026. The proceeds from these sales will provide Journey the capital to fund its world class opportunity in the Duvernay, while maintaining both financial flexibility and a pristine balance sheet.

Uncertainty surrounding both divestments and the timing and magnitude of non-operated Duvernay expenditures creates challenges for stakeholders with respect to near-term guidance, but the influence of the Duvernay to Journey's business model in this quarter provides a window into its bright future. This is evidenced by the results of the most recent four well pad which came on-production during the quarter.

• 02-22-042-03W5 pad. Production results from 4.0 (2.8 net) wells have averaged IP30 rates of 1,627 boe/d and 80% liquids per well (920 bbl/d of crude oil, 389 bbl/d of NGLs, and 1.9 mmcf/d of natural gas) and IP90 rates of 1,312 boe/d and 79% liquids per well (699 bbl/d of crude oil, 337 bbl/d of NGLs, and 1.7 mmcf/d of natural gas).

Sales volumes in the third quarter of 2025 averaged 11,862 boe/d as compared to 11,152 boe/d in the third quarter of 2024. The additional volumes realized from Journey's Duvernay drilling program more than offset the loss of volumes from divestments. During the third quarter Journey sold approximately 285 boe/d of production having an approximately 70 boe/d impact on third quarter volumes.

Total capital spending for the third quarter of 2025 was $11.2 million, the majority of which was spent in Gilby, including over $4.25 million for the Gilby grid connection. The Gilby power project has entered into Stage 5 of the grid connection process and is nearing the end of this process. Construction on the Gilby power project is nearing completion and the commissioning is forecast to begin at the end of the year. The ISD date for the project has been moved to March 6, 2026. Minimal capital expenditures are currently forecast for Gilby in 2026. Journey also spent $2.9 million in respect of abandonment and reclamation work during the quarter, a key part of our ongoing program to increase sustainability.

The Mazeppa project is in Stage 3 of the grid connection process. In the third quarter Journey began mechanical inspection of the units. The ISD date for Mazeppa remains in the summer of 2026.

Subsequent to the end of the third quarter, Journey entered into purchase and sale agreements to divest two minor producing assets in the central Alberta core area for combined proceeds of $0.2 million. These dispositions reduced the asset retirement obligations by approximately $9 million (undiscounted). The related assets were producing approximately 170 boe/d (75% natural gas) at the time of closing. To date in 2025, Journey has sold assets producing approximately 770 boe/d (39% liquids) for proceeds totaling $6.5 million. The assets carried with them approximately $23 million in end-of-life costs (undiscounted). Journey continues to look at future sales with a view to reducing asset retirement obligations, improving netbacks and sustainability, and streamlining operations.

FINANCIAL

Journey generated a solid $20.5 million of Adjusted Funds Flow during the third quarter of 2025 on the back of favorable Duvernay drilling results. Journey achieved 11,862 boe/d of sales volumes as compared to 11,152 boe/d in the same quarter of 2024. Sales volumes were 6% higher, mainly as a result of flush new Duvernay well volumes commencing in July. In addition, the commodity mix shifted again towards oil and NGL's ("liquids") and continues to grow. Liquids volumes increased to 61% of total volumes in the third quarter of 2025 as compared to 56% in the same quarter of 2024. For the year to date liquids volumes accounted for 60% of total sales volumes, while for 2024 it was 56%. Also contributing to the increase in Adjusted Funds Flow was a 3% increase in average corporate realized commodity prices with natural gas prices being 157% higher, crude oil prices were 8% lower and NGL prices were 5% lower.

Journey continued to achieve efficiencies in its field operations during the quarter. For the third quarter of 2025 aggregate operating expenses were $18.8 million, which was 7% lower than the $20.3 million from the third quarter of 2024. For 2025 the per boe rate was $17.24 as compared to $19.74 in 2024. A significant portion of the decrease from the prior quarter is related to reduced spending on workovers and facility turnarounds, and the disposition of higher operating cost assets that occurred both in the first and third quarters of 2025. Royalty expense was 6% higher at $7.75/boe in the third quarter as compared to $7.79/boe in the third quarter of 2024. Higher natural gas prices caused some of the increase but was offset by favorable Crown royalty rates on the new Duvernay wells during the third quarter of 2025.

Journey's general and administrative ("G&A") costs in the third quarter of 2025 were $2.1 million as compared to the $2.7 million in the third quarter of 2024 and the $2.5 million in the second quarter of 2025. On a per boe basis, Journey's G&A costs were $1.95/boe for the third quarter of 2025 as compared to $2.62/boe in the third quarter of 2024.

Interest expense decreased 14% to $1.5 million in the third quarter of 2025 from $1.8 million in the third quarter of 2024. The reduction in interest costs for the third quarter of 2025 was mainly attributable to the lower outstanding balances on term debt due to principal repayments throughout 2024 and the first quarter of 2025 as well as lower interest rates from Journey's new operating line of credit.

Journey generated net income of $4.4 million in the third quarter of 2025 or $0.06 per basic and diluted share as compared to $0.6 million ($0.01 per basic and diluted share) of net income in the third quarter of 2024 or $0.12 per basic and diluted share.

Journey exited the third quarter of 2025 with net debt of $55.4 million, which was 14% lower than the $64.5 million at the end of the second quarter of 2025 and 8% lower than the $60.3 million of net debt at the beginning of 2025. The net debt to annualized third quarter Adjusted Funds Flow ratio was 0.7 times. Net debt in the third quarter of 2025 decreased mainly due to Journey's Adjusted Funds Flow exceeding its capital expenditures (net of disposition proceeds). Most of the capital from the 2025 Duvernay drilling program was expended by the end of the second quarter while $6.8 million of the $8.0 million in net capital expenditures in the third quarter was devoted to the ongoing construction of power generation assets.

OUTLOOK & GUIDANCE

There is no change to the guidance last updated on August 7, 2025. The Company is still planning to spend approximately $54 million in capital, net of dispositions and inclusive of asset retirement obligation spending. Sales volumes are still projected to be in the 10,800 - 11,200 boe/d (60% crude oil and NGL's) range with current estimates being closer to the top end.

This guidance incorporates many material underlying assumptions including but not limited to:

• Forecasted commodity prices by month;
• Forecasted operating costs, including forecasted prices for power;
• Forecasted costs for the capital program and the timing of the spending; and
• Forecasted results and phasing of production additions from the capital program;

Notes:

The weighting of the corporate sales boe volumes guidance for 2025 is as follows:

Heavy crude oil: 19%

Light/medium crude oil: 24%

Tight oil: 6%

NGL's: 10%

Coal-bed methane natural gas: 6%

Conventional natural gas: 33%

Shale gas: 2%

About the Company

Journey is a Canadian exploration and production company focused on oil-weighted operations in Alberta, Canada. Journey's strategy is to grow its production base by drilling on its existing core lands, implementing secondary and tertiary flood projects on its existing lands, and by executing on accretive acquisitions. In conjunction with its joint venture partner, the Company has recently begun development of its Duvernay light oil resource play. In addition, Journey is continuing with its plans to grow its power generation business through its projects at Gilby and Mazeppa.

For further information contact:

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