Rubellite Energy Shares Up on Higher 2Q Production, Profit

By Adriano Marchese

Shares of Rubellite Energy rose after the company said that stronger-than-expected second-quarter production and higher commodity prices supported a surge in profit.

Shares traded 4.7% higher at 4.43 Canadian dollars ($3.18).

The Calgary, Alberta-based company on Monday reported a net income of C$34.1 million, or C$0.35 a share, up from C$16.1 million or C$0.17 a share a year earlier.

The company credits an unrealized gain on risk-management contracts, reflecting a change in their mark-to-market values on the back of fluctuating forward commodity prices.

Sales production averaged 13,406 barrels of oil equivalent a day, of which 67% was heavy oil and natural gas liquids. This was above the company's outlook range of 13,300 to 13,400 barrels a day.

Still, relative to the previous quarter, production represented a 3% decrease due to natural declines in the West Central area and lower heavy oil sales production, it said.

For the year, Rubellite expects to spend about C$125 million to C$130 million toward exploration and development, as well as to support longer-term strategic initiatives, it said.

The company is targeting total production to average about 13,200 to 13,800 barrels of oil equivalent a day, representing 6% to 10% growth over 2025 levels.

Write to Adriano Marchese at adriano.marchese@wsj.com