CALGARY, Alberta, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Yangarra ResourcesLtd. ("Yangarra" or the "Company") (TSX:YGR) announces its financial and operating results for the three and nine months ended September 30, 2026.

Third Quarter Highlights ¹

• Funds flow from operations of $23.1 million ($0.20 per share – fully diluted), an increase of 75% from the same period in 2025
• Oil and gas revenue of $37.5 million, an increase of 54% from the same period in 2025
• Adjusted EBITDA of $24.5 million ($0.22 per share – fully diluted), an increase of 69% from the same period in 2025
• Net income of $8.3 million ($0.07 per share – fully diluted), an increase of 262% from the same period in 2025  
• Average production of 10,111 boe/d (45% liquids), a 6% increase from the same period in 2025
• Operating costs of $9.57/boe (including $3.36/boe of transportation costs)
• Operating netback of $28.92/boe
• Operating margin of 72% and funds flow from operations margin of 62%
• G&A costs of $1.64/boe
• Royalties at 8% of oil and gas revenue
• All in cash costs of $16.72/boe
• Capital expenditures of $22.7 million
• Adjusted net debt to third quarter annualized funds flow from operations of 1.2 : 1
• Adjusted net debt of $111.2 million
• Retained earnings of $378.1 million
• Decommissioning liabilities of $18.2 million (discounted)

¹ There are references to “funds flow from operations”, “Adjusted EBITDA”, “adjusted net debt”, “Adjusted net debt to annualized funds flow from operations”, “netbacks” and “operating margins” in this press release, which are non-IFRS measures or non-IFRS ratios. Yangarra’s method for calculating non-IFRS measures and non-IFRS ratios may differ from other reporting issuers’ methods and accordingly may not be comparable. See accompanying note under the heading “Non-IFRS Financial Measures and Ratios” for an explanation of the composition of these non-IFRS measures and non-IFRS ratios.

Operations Update

Yangarra drilled seven wells in Q3 2026 and completed four, leaving three wells drilled but uncompleted at quarter-end. Year-to-date, the Company has drilled 19 wells and completed 16. Of these wells, ten were in the Belly River formation and nine were Cardium wells. With the 2026 Cardium drilling program complete, all farm-in commitments have been satisfied, and the Company has earned all rights in the Cardium and Belly River in Chambers.

The Company plans to focus on Belly River development for the winter program. Throughout the year, the Belly River well design has continued to evolve and Yangarra continues to assess the long-term impact on production from different well designs. The fourth quarter program will include three Belly River wells on the same pad utilizing 3 different well designs.

Financial Summary

Company Netbacks ($/boe) 

Business Environment

Operations Summary 

Net petroleum and natural gas production, pricing and revenue are summarized below:

Adjusted Net Debt

The following table summarizes the change in adjusted net debt during the nine months ended September 30, 2026 and year ended December 31, 2025:

Capital Spending 

Capital spending is summarized as follows:

Quarter End Disclosure

The Company's September 30, 2026 unaudited condensed interim consolidated financial statements and management’s discussion and analysis has been filed on SEDAR+ (www.sedarplus.ca) and are available on the Company's website (www.yangarra.ca).

For further information, please contact James Evaskevich, CEO 403-262-9558.

Oil and Gas Advisories

Natural gas has been converted to a barrel of oil equivalent (Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one barrel of oil (6:1), unless otherwise stated. The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore Boe's may be misleading if used in isolation. Figures that are presented on a boe basis herein are calculated as the total aggregate amount for the period divided by boe production volumes for the period. References to natural gas liquids ("NGLs") in this news release include condensate, propane, butane and ethane and one barrel of NGLs is considered to be equivalent to one barrel of crude oil equivalent (Boe). One ("BCF") equals one billion cubic feet of natural gas. One ("Mmcf") equals one million cubic feet of natural gas.

This press release contains metrics commonly used in the oil and natural gas industry which have been prepared by management, such as "operating netback" and "operating margin". These terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies and, therefore, should not be used to make such comparisons. For additional information regarding netbacks and operating margins, see “Non-IFRS Financial Measures and Ratios”.

Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare Yangarra's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from metrics presented in this press release, should not be relied upon for investment or other purposes.

Non-IFRS Financial Measures and Ratios

This press release contains various specified financial measures that do not have standardized meanings as prescribed by International Financial Reporting Standards (“IFRS”). These reported amounts and their underlying calculations are not necessarily comparable or calculated in an identical manner to a similarly titled measure of other companies where similar terminology is used. Readers are cautioned that such financial measures should not be construed as alternatives to or more meaningful than the most directly comparable IFRS measures as indicators of the Company’s performance. These measures have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding the Company’s liquidity and its ability to generate funds to finance its operations and should not be considered in isolation.

Funds flow from operations

Funds flow from operations (“FFO”) should not be considered an alternative to, or more meaningful than, cash provided by operating, investing and financing activities or net income as determined in accordance with IFRS, as an indicator of Yangarra's performance or liquidity. Management uses FFO to analyze operating performance and leverage and considers FFO to be a key measure as it demonstrates the Company’s ability to generate cash flow necessary to fund future capital investments and to repay debt, if applicable. FFO is calculated using cash flow from operating activities before changes in non-cash working capital and decommissioning costs incurred.

The following table reconciles FFO to cash flow from operating activities, which is the most directly comparable measure calculated in accordance with IFRS:

Yangarra presents FFO per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of net income per share. 

Adjusted EBITDA

Yangarra defines Adjusted EBITDA as earnings before interest, taxes, depletion and depreciation, which represents EBITDA, excluding changes in the fair value of commodity contracts. Management believes that Adjusted EBITDA is a useful measure, which provides an indication of the results generated by the Yangarra's primary business activities prior to consideration of how those activities are financed, amortized or taxed. The most directly comparable IFRS financial measure to Adjusted EBITDA is net income (loss). The following table provides a reconciliation of Adjusted EBITDA to net income (loss).

Adjusted Net Debt 

Yangarra defines Adjusted net debt as the sum of our existing credit facilities and accounts payable and accrued liabilities less accounts receivable, prepaid expenses and inventory. Yangarra uses Adjusted net debt to assess efficiency, liquidity and the general financial strength of the Company. The most directly comparable IFRS financial measure to Adjusted net debt is Bank Debt. The following table provides a calculation of adjusted net debt.

Adjusted net debt to the relevant quarter annualized FFO

Adjusted net debt to third quarter annualized FFO is a non-IFRS financial ratio calculated as adjusted net debt divided by the relevant quarter annualized FFO.

Netbacks

The Company considers corporate netbacks to be a key measure that demonstrates Yangarra’s profitability relative to current commodity prices. Corporate netbacks are comprised of operating, field operating and net income (loss) netbacks. 

Yangarra calculates Field Operating netback as the average sales price of its commodities less royalties, operating costs and transportation expenses. Operating netback starts with Field Operating netback and subtracts realized gains (losses) on commodity contract settlements. To calculate the Net Income (Loss) netback, Yangarra takes the Operating netback and deducts general and administrative costs, cash and non-cash finance expenses, share-based compensation expense as well as depletion and depreciation charges, accretion expense, unrealized gains (losses) on financial instruments, any impairment or exploration and evaluation expense and deferred income taxes.

All in cash costs

All in cash costs is calculated as royalties, operating, transportation, general and administrative and cash finance expenses, per boe.

FFO margin and operating margin

FFO margin is calculated as the ratio of FFO per boe to sales price and operating margin is calculated as the ratio of operating netback to sales price.

Please refer to the management discussion and analysis for the three and nine months ended September 30, 2026, for further discussion on the Non-IFRS financial measures presented in this press release.

Forward Looking Information

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company’s plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results and business opportunities. Forward-looking information typically uses words such as "anticipate", "believe", “continue”, “sustain”, "project", "expect", “forecast”, “budget”, "goal", “guidance”, "plan", “objective”, “strategy”, “target”, "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, including, but not limited to, statements on potential completion techniques being considered. Statements relating to "reserves" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.   Forward-looking information in this release includes information relating to, among other things, the Company’s drilling and completion plans; the timing of wells being brought onstream; anticipated production levels, expected well performance and payback;and the Company’s future drilling, completion, development and capital expenditure plans.

The forward-looking information is based on certain key expectations and assumptions made by our management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; benefits to shareholders of our programs and initiatives, the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; ability to efficiently integrate assets and employees acquired through acquisitions, ability to market oil and natural gas successfully and our ability to access capital.

Although we believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Yangarra can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. Our actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on our future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).

These forward-looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

All reference to $ (funds) are in Canadian dollars.

Neither the TSX nor its Regulation Service Provider (as that term is defined in the Policies of the TSX) accepts responsibility for the adequacy and accuracy of this release.