Maple Groove Wealth Planners
Designed Securities Ltd.

A plain-cash valuation · Yangarra Resources Ltd. (TSX: YGR)

How much cash does Yangarra really make, and what is a share of it worth?

Yangarra Resources is a small Calgary producer drilling the Cardium and Belly River formations in central Alberta, about two fifths oil and liquids and the rest natural gas. It averaged 10,003 boe a day in 2025 and its 2026 budget of $60 million is set to hold production near 10,000. Its 30 year plus 2P reserve life is unusually long for a company of its size. This page counts only the cash that was actually left over each year, after every bill was paid and every well was drilled, then asks the only question that matters to an owner: what is one share worth, and how does that compare with the price? The rules come from the calculations economists and engineers use to decide whether a project is worth building, applied to a whole company.

figures to FY2025 · price C$1.57 (close of 28 August 2026) · all figures Canadian dollars
Every year of this cash history has been hand-checked against the company's own audited annual filings; the sources are named at the bottom of the page.
Step 1
Count only real cash
10 years of reported accounts, worked down from the "cash flow" in the headlines to the cash that was truly left for owners after every well was drilled.
Step 2
Project it forward
Start from the average of the history, or the latest year. Grow it at the dial you set for ten years, then at a long-run rate for as long as the wells keep producing.
Step 3
Bring it back to today
A dollar arriving in ten years is worth less than a dollar now. Your required return sets how much less.
Step 4
Compare it with the price
Take off the debt and the clean-up cost, add anything the business owns but does not need, divide by the shares. That number against C$1.57 is the whole story.
What one share is worth on your settings: the most you could pay today and still earn your required return
−$1.55per share, C$
Price far above value
Paying far more than it is worthPrice equals value at C$1.57Buying well below value
Today's share price, close of 28 August 2026
C$1.57
105.595M shares · C$166M in total
What you gain or lose buying at C$1.57
−$3.12
value minus price, in today's dollars; a minus sign means you are paying more than the cash is worth
The growth today's price assumes
beyond this model
no growth rate between -30% and +60% a year makes this start worth C$1.57
When you get your money back, with your return
not within the well life
years until the cash you receive repays C$1.57 plus your required return
Your dials
-5%051020%
-4% declining0 flat+3%
6%89 typical1214%
How long the wells keep producing
Well life set to 30 years, the proved plus probable reserves.

What Yangarra really earned, and what you are assuming it will earn

Solid bars are reported history: the real cash left each year after every bill was paid and every well was drilled. Negative years are when the owners put cash in; positive years are when it came back out. Striped bars are your projection.

Owners put cash in (a negative year)Real cash left for ownersYour projectionDividends and buybacks (when shown)
-0.1B-0.1B-0B00B0.1B0.1BC$reportedprojected201620202025203020352040204520502055C$64MC$−2M
Table view: every year, C$ millions
YearStatusReal cash leftPer share
2016reported−8.8−$0.12
2017reported−29.0−$0.34
2018reported−62.7−$0.72
2019reported−33.8−$0.39
2020reported1.5$0.02
2021reported11.7$0.13
2022reported64.1$0.70
2023reported14.7$0.15
2024reported20.8$0.20
2025reported2.3$0.02
2026projected−1.9−$0.02
2027projected−1.9−$0.02
2028projected−1.9−$0.02
2029projected−1.9−$0.02
2030projected−1.9−$0.02
2031projected−1.9−$0.02
2032projected−1.9−$0.02
2033projected−1.9−$0.02
2034projected−1.9−$0.02
2035projected−1.9−$0.02
2036projected−1.9−$0.02
2037projected−1.9−$0.02
2038projected−1.9−$0.02
2039projected−1.9−$0.02
2040projected−1.9−$0.02
2041projected−1.9−$0.02
2042projected−1.9−$0.02
2043projected−1.9−$0.02
2044projected−1.9−$0.02
2045projected−1.9−$0.02
2046projected−1.9−$0.02
2047projected−1.9−$0.02
2048projected−1.9−$0.02
2049projected−1.9−$0.02
2050projected−1.9−$0.02
2051projected−1.9−$0.02
2052projected−1.9−$0.02
2053projected−1.9−$0.02
2054projected−1.9−$0.02
2055projected−1.9−$0.02

If you bought one share today

The red bar is what you pay. Yellow years pay you back, including the return you asked for. Green years are pure profit on top. If there is no green, you paid more than the cash is worth.

What you payPaying you back, with your returnProfit on top
−$2−$2−$1−$1$0$1$1buyyr 5yr 10yr 15yr 20yr 25yr 30−$1.57 paid

At these settings you never get C$1.57 back with a 9.0% return within 30 years. Buying at C$1.57 loses you $3.12 a share in today's dollars.

What a share is worth under different assumptions

Your required return down the side, ten-year growth across the top. Your current setting is outlined; the dashed cells are within 10% of today's price. Blue means worth more than C$1.57, red means worth less.

return \ growth
-4%
-2%
0%
+2%
+4%
+6%
+8%
+10%
+12%
6%
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
7%
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
8%
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
9%
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
10%
$-1
$-2
$-2
$-2
$-2
$-2
$-2
$-2
$-2
11%
$-1
$-1
$-2
$-2
$-2
$-2
$-2
$-2
$-2
12%
$-1
$-1
$-2
$-2
$-2
$-2
$-2
$-2
$-2
13%
$-1
$-1
$-1
$-2
$-2
$-2
$-2
$-2
$-2

Growth after year 10, the well life, the starting point and the switches above all carry through. Every cell is the same arithmetic as the big number at the top.

Three honest answers from the same cash

Three answers from the same accounts and the same arithmetic, at your required return, long-run growth and well life. The gap between them is the growth you choose to believe in, and nothing else.

Floor: if it never grows again
The 10-year average of real cash with the growth dial at zero: ten flat years, then your long-run dial. This is the floor if the business never grows again.
✕−$1.55
per share · -198% versus the C$1.57 price
Anything paid above this number is paying for growth that has not been demonstrated yet.
Base: the default settings
The same 10-year average of real cash, grown 0.0% a year for ten years. Yangarra's 2026 capital budget of $60 million is intended to hold production at 10,000 boe a day, flat against 2025's 10,003, so the growth dial starts at 0 per cent.
✕−$1.55
per share · -198% versus the C$1.57 price
To get here you have to believe 0.0% a year holds for a full decade. Move the dials to your own numbers.
The latest year, projected
The most recent year's real cash (2025), grown at the default 0.0% a year. A single year can flatter or punish a producer; the bars above show where it sits in the cycle.
✕−$1.12
per share · -171% versus the C$1.57 price
One year of cash rides on one year's prices; the averages smooth the cycle.

From the reported figures to the cash in the bank, FY2025

Reported profit is an accountant's number, and the "cash flow" companies quote usually leaves the drilling out. Here the reported figures are worked down to the cash that was actually left after every bill and every well. Figures in C$ millions.

FY2025, C$ millions
Profit, as reported (the headline number)15.0
Cash generated by operations, as reported59.1
+ Interest paid, put back8.8
− Rent on leases−1.5
− Every dollar spent on wells and plants−64.1
= Real cash left for owners2.3
Per share (109.282M diluted)$0.02
For comparison: dividends paid in 20250.0
For comparison: assets bought and sold, net0.0

What we take out, and why

  • Depreciation, depletion and every other paper charge: accountants spread the cost of past drilling over years. We ignore that and count the cash actually spent on wells and plants in the year it went out, so nothing is counted twice.
  • Interest paid: put back. Interest is the price of borrowed money, and your required return already charges for the price of money, so every company is judged the same way whether it borrows or not.
  • Rent on leases: small and short leases are treated as a cost of producing, like fuel.
  • Every dollar spent on wells and plants: taken out in full, including the drilling that grows production. That spending buys the future cash the dials project, so it is counted where it happens.

What 10 years of accounts say

Every line the model uses, every year, with the latest year highlighted. Dividends and buybacks are shown as money leaving for owners.

Every year, C$ millions

C$ millions2016201720182019202020212022202320242025
Profit, as reported10.219.533.643.34.850.0106.446.726.215.0
Cash generated by operations, as reported16.751.883.881.244.391.3169.799.071.059.1
+ Interest paid, put back2.22.74.47.211.011.310.411.710.78.8
− Rent on leases0.00.00.0−1.2−2.3−2.3−2.7−1.8−1.2−1.5
− Spent on wells and plants−27.7−83.5−150.8−121.0−51.5−88.5−113.2−94.3−59.6−64.1
= Real cash left for owners−8.8−29.0−62.7−33.81.511.764.114.720.82.3
Real cash per share, C$−$0.12−$0.34−$0.72−$0.39$0.02$0.13$0.70$0.15$0.20$0.02
Assets bought and sold, net1.40.00.00.00.00.00.00.00.00.0
Dividends paid0.00.00.00.00.00.00.00.00.00.0
Debt after cash, year end65.184.9134.5190.3200.3195.4139.4121.1115.8127.7
Shares, millions (diluted average)75.184.286.985.785.889.492.198.4104.2109.3
Production, barrels of oil equivalent a day2,9825,7409,42512,5729,8888,93111,02211,93610,50010,003

How the maths works, and what to be careful about

The words on this page

Real cash (true cash)
What was left in the bank each year after every bill, every tax payment and every well drilled. Not profit, and not "cash flow" as companies usually quote it, which leaves the drilling out. The strictest number there is.
Required return
The yearly return you insist on for taking the risk. A dollar promised in ten years is worth less than a dollar today; this rate says how much less. 9% is a common professional figure for a large Canadian producer; the reserve engineers use 10%.
Well life (reserve life)
How long the wells keep producing. After the life you choose, nothing is counted. At 31 December 2025 Yangarra reported 80.6 million boe of proved reserves and 118.6 million boe of proved plus probable, a stated reserve life index of 23.05 years proved and 33.93 years on 2P against 2025 production of 10,003 boe a day; the model caps the 2P life at 30 years.
What a share is worth
Every future year's cash, shrunk back to today's dollars at your required return, added up, less the debt, less the cost of cleaning up the wells, divided by the number of shares. Pay less than this and you earn more than your required return; pay more and you earn less.
Where the default growth comes from
Yangarra's 2026 capital budget of $60 million is intended to hold production at 10,000 boe a day, flat against 2025's 10,003, so the growth dial starts at 0 per cent.

The arithmetic, step by step

  1. Count the real cash each past year: cash generated by operations as reported, plus interest paid put back, minus rent on leases, minus every dollar spent on wells and plants. Buying and selling assets is shown separately.
  2. Project it. The starting cash you choose (an average of the history, or the latest year) grows at your growth dial for ten years, then at the long-run rate for as long as the wells keep producing. Nothing is counted after the well life ends.
  3. Bring it back to today. Each year's cash is shrunk by your required return, counted at mid-year because cash arrives through the year rather than on 31 December.
  4. Turn it into a share value. Add up the shrunk cash; take off net debt of C$125M; take off the C$18M cost of cleaning up the wells if that switch is on; divide by 105.595M shares.
  5. Work it backwards. "The growth today's price assumes" is the ten-year growth rate at which this start is worth exactly the share price.

Where the numbers come from

  • The ten year average is dragged below zero by the 2017 to 2019 Cardium build out, when Yangarra spent roughly twice its operating cash flow growing production from 3,000 to 12,600 boe a day. The five year average shows the steadier current business; the start selector lets you choose.
  • Interest for 2018 to 2025 is the cash interest and finance costs paid disclosed in the audited statements; the 2018 figure of $4.35 million comes from the supplemental disclosure in the 2019 statements, since the 2018 statements themselves disclose no cash interest figure. For 2016 and 2017 the statements disclose only the accrued interest and finance cost expense ($2.19 and $2.73 million), which is used as the cash figure.
  • Net debt is the bank debt on the audited balance sheets; Yangarra carries no cash (its accounts sweep to the credit facility), so bank debt is net debt. It excludes lease obligations of roughly $2 to $6 million and the working capital deficit. Yangarra's own adjusted net debt measure, which adds net working capital, was $110.4 million at 30 June 2026 versus the $124.6 million of bank debt used here.
  • The 2016 bank debt of $65.1 million was classified entirely as current at that year end because the facility was up for renewal, not because it was called.
  • Lease payments are zero before 2019 because IFRS 16 took effect that year; from 2020 they are the lease principal plus the lease interest paid in financing activities, and for 2019 the audited statement presents only the $1.23 million principal repayment there.
  • Yangarra has never paid a dividend or bought back shares; the zeros are real. Acquisitions are also zero apart from a $1.4 million property purchase in 2016; small land purchases sit inside capital spending.
  • The 105.6 million share count is common shares issued at 30 June 2026. Weighted diluted shares for the first half of 2026 were 112.5 million, with about 8 million restricted share units driving the difference.
  • 2025 production of 10,003 boe a day was 42 per cent oil and liquids; only 60 per cent of 2025 capital produced 2025 volumes because drilling paused five months on weak prices.

For the technically minded

The method is the one used to evaluate capital projects, from Ted Lawrence, The Business Guide to Economic Evaluations: Projects, Leases, Tariffs and Acquisitions (2017). "Real cash" is the book's project cash flow (chapter 3) with depreciation, debt servicing and debt-like leases restructured out (chapters 4, 5 and 19); short operating leases stay in as a cost of producing, a chapter 19 judgment. The value per share follows the share-purchase evaluation of chapter 20: present value of the company's cash flows at the cost of capital (chapter 10), mid-year discounting (chapter 12), plus non-required assets, less net debt and the decommissioning liability. "What you gain or lose" is the bid-curve NPV of chapter 20; "when you get your money back" is the discounted payout of chapter 13; the bars follow the project profile of chapter 6. The reverse solve on growth is a plain reverse DCF.

Discount-rate anchors: 9% is a common cost-of-equity figure for a large Canadian producer and 10% is the reserve-report convention (PV10). The long-run rate defaults to 0% here: a depleting resource should not be assumed to grow forever, so anything above zero is a judgment you make with the dial.

Maple Groove Wealth Planners · prepared by Trevor Lawrence, Financial Advisor · every number on this page traces to the sources listed above or a dial you can see. For education, not investment advice.

This page illustrates a research process and is provided for general information only. It is not investment advice and not a recommendation to buy or sell any security. Figures are as at the dates shown and will change. Shares carry risk, including the possible loss of capital. Please speak with a qualified advisor about your own circumstances.