JX ENERGY (03395) reviews short-term cash flow enhancement strategies and approves the construction of a new 4.7 megawatt natural gas power generation project.

JX ENERGY (03395) announced that at the board meeting held on November 4, 2025 (Calgary time), the board reviewed the short-term cash flow enhancement strategy proposed by the management team. The strategy includes hedging part of the company's natural gas production to improve the stability of cash flow in 2026. The estimated price for AECO 5A (average daily index) in 2025 is approximately 1.62 Canadian dollars per gigajoule, and the price for AECO 5A in 2026 is expected to be higher. The company plans to hedge over 50% of its 2026 production at a price higher than 3.00 Canadian dollars per gigajoule. As of the date of this announcement, the company has hedged approximately 40% of its 2026 production at an average price of 3.06 Canadian dollars per gigajoule. The company disclosed its 9.6 megawatt natural gas power generation project on July 25, 2025 (Hong Kong time), which is undergoing the necessary regulatory approval process as planned. In addition to this project, the board has approved the development of a 4.7 megawatt natural gas power generation project (this project). This project will consist of five 0.94 megawatt generating units - four located at the company's existing well site and one at the Jixing Energy (Canada) site. Upon completion of this project, the company will be able to independently generate electricity for external sale, thereby enhancing the overall value of natural gas production. No additional regulatory approval is required for this project. Based on quotations from independent suppliers in China and past experience of the management team, the board currently estimates the engineering, procurement, and construction (EPC) stage cost to be approximately 3 million Canadian dollars. EPC costs will be paid in stages and may be further adjusted based on subsequent quotations from other independent suppliers and current market conditions. To raise funds for the development of this project, the company plans to raise funds through equity financing (including issuing new shares). Any such fundraising arrangement must be further approved by the board and the Hong Kong Stock Exchange. As of the date of this announcement, the company has not entered into any understanding, arrangement, or agreement with any party regarding the above plans.