Logan is a Canadian oil and gas producer focused mainly on the Montney in northwest Alberta and northeast BC, with additional Duvernay acreage. It is a growth producer rather than an exploration-stage company. Q2 production was 17,239 BOE/d, up 44% year over year, with 40% liquids.
MRQ EPS was $0.04 CAD, up from $0.03 in Q2 2025. Adjusted funds flow per diluted share was $0.07 in Q2 versus $0.04, and $0.10 for six months versus $0.07. So the underlying cash-generation trend is stronger than the EPS trend suggests.
There are some accounting items, including $1.3M of Q2 share-based compensation and derivative/hedging effects. I would put more weight on adjusted funds flow and operating cash flow for this company. Q2 operating cash flow was $37.7M and adjusted funds flow was $47.8M.
The pipeline is primarily drilling and development. Logan increased 2026 production guidance to 17,000–18,000 BOE/d, with 19,000–20,000 BOE/d targeted for the second half. The larger capital program is intended to establish a higher 2027 production base.
Reserves are substantial. Year-end 2025 proved reserves were 80.3 MMBOE and proved plus probable were 139.2 MMBOE. PDP reserves were 17.8 MMBOE. Proved plus probable reserves increased 31% from 2024. The independent reserves report gives a before-tax NPV10 of $983M for proved plus probable reserves.
Logan is already profitable and generating substantial cash, so runway is not a survival issue.
Debt is the main balance-sheet issue. Bank debt was $120.2M at June 30 and net debt was $139.0M. That was up from $88.6M at year-end 2025, primarily because capital spending exceeded operating cash flow. The company has a $250M committed borrowing base.
Assets were $694.2M at June 30, including $584.8M of PP&E and $63.1M of exploration/evaluation assets. Cash was only $83,000, with $28.9M of receivables.
Logan has used equity financing heavily in 2026. In March it raised approximately $70M, issuing 52.1M shares through a public offering and 43.8M through a private placement. The money was used to finance the $66.3M Simonette acquisition.
Dilution has therefore been significant. Shares increased from 595.7M at the end of 2025 to 691.6M by June 30, a 16% increase. There are also 64.2M warrants at $0.35 and 42.5M options averaging $0.78, plus 6.8M restricted share awards. Fully diluted securities were about 805.2M in August.
The share price was about $1.19 on September 21, giving a market cap of about $844M and enterprise value of about $992M. Trailing P/E was about 20 and EV/EBITDA about 6.9.
Disclosure: 400 at $1.20 CAD