Management's Discussion & Analysis — Q1 2026
1.Date
This Management's Discussion and Analysis ("MD&A") of Quorant Energy Corp. (the "Company") is dated May 7, 2026 and should be read in conjunction with the Company's financial statements for the period ended March 31, 2026, together with the notes thereto.
2.Cautionary Note Regarding Forward-Looking Information
Certain statements in this MD&A constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information reflects the Company's current expectations regarding future events and operating performance and speaks only as of the date of this MD&A. Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking information except as required by applicable securities laws.
3.Overall Performance
Throughput on the Cardinal pipeline averaged 318 Mboe/d during the quarter.
Distributable cash flow per share rose 6% year over year on stable tolls and lower interest expense.
4.Selected Quarterly Information
| Quarter | Revenue | Op. exp. | G&A | Net income (loss) | Cash on hand |
|---|---|---|---|---|---|
| Q1 2026 | $20,326,483 | $11,375,296 | $2,604,216 | $5,346,971 | $8,178,517 |
| Q4 2025 | $19,534,627 | $14,276,959 | $3,580,682 | $676,986 | $7,526,489 |
| Q4 2025 | $17,020,299 | $11,925,593 | $3,312,703 | $782,003 | $7,712,437 |
| Q3 2025 | $16,325,213 | $11,317,470 | $2,834,693 | $1,173,050 | $6,159,061 |
| Q1 2025 | $14,738,295 | $10,307,086 | $2,803,052 | $628,158 | $15,489,615 |
| Q4 2024 | $13,216,554 | $8,125,809 | $1,980,639 | $2,110,106 | $13,991,990 |
5.Results of Operations
Revenue for the period was $20,326,483, compared with $19,534,627 in the immediately preceding quarter and $14,738,295 in the comparative quarter of the prior year. Operating expenses were $11,375,296, reflecting the mix of activities described under "Overall Performance" above. General and administrative expenses of $2,604,216 include professional fees, salaries and public-company costs. The Company reported a net result of $5,346,971 for the period.
6.Liquidity
As at March 31, 2026, the Company had cash and cash equivalents of $8,178,517. Management continues to monitor working capital requirements and expects existing cash resources, together with cash generated from operations and access to committed credit facilities, to be sufficient to fund planned activities for the twelve months following the date of this MD&A.
7.Capital Resources
The Company's capital structure consists of common shares, stock options and any drawings under its credit facilities. There have been no material changes to the Company's capital resources during the period other than as disclosed elsewhere in this MD&A. The Company is not subject to any externally imposed capital requirements.
8.Off-Balance-Sheet Arrangements
The Company has no off-balance-sheet arrangements that have or are reasonably likely to have a current or future material effect on its financial condition, results of operations, liquidity or capital resources.
9.Transactions with Related Parties
Related-party transactions during the period were undertaken in the normal course of business and are measured at the exchange amount agreed to by the parties. Compensation of key management personnel is disclosed in the notes to the financial statements.
10.Critical Accounting Estimates and Risk Factors
The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from those estimates. The Company's business is subject to risks and uncertainties that are described in the Company's most recent Annual Information Form under "Risk Factors".
11.Approval
The board of directors of Quorant Energy Corp. has approved the disclosure contained in this MD&A. A copy of this MD&A and the related financial statements will be provided to any shareholder who requests it.