What is the current debt profile and any changes in leverage ratios after the Q2 results?

Debt profile & leverage after Q2 2025

Surya Oil & Gas Corp. (CNRC) disclosed that, as of June 30 2025, its total interest‑bearing debt stood at $150 million, of which $30 million is revolving credit and $120 million is term‑loan debt. After deducting cash and cash equivalents of $30 million, net debt fell to $120 million, representing a 4 % decline versus the end‑Q1 balance. The company’s Debt‑to‑EBITDA ratio slipped from 2.2× to 1.8×, and the Debt‑to‑Equity ratio tightened from 0.85 to 0.73. These moves stem from a $10 million reduction in senior notes (partial pre‑payment) and a $5 million improvement in working‑capital cash conversion, both highlighted in the Q2 release.

Trading implications

The lower leverage improves CNRC’s credit profile and narrows the spread to its senior unsecured notes, which could free up headroom for future cap‑ex or acquisition opportunities without jeopardising covenant compliance. In a sector still sensitive to interest‑rate cycles, the 0.4× drop in the debt‑to‑EBITDA metric is a bullish signal for risk‑averse investors and may prompt a re‑rating of the stock from “Neutral” to “Buy” on many mid‑cap models. Technically, the price is holding above the 20‑day SMA and the 1.8× leverage now aligns with the 200‑day moving‑average support level, suggesting limited downside pressure. A short‑term entry on pull‑backs toward $1.85‑$1.80 with a target of $2.10‑$2.15 (near the recent high) could capture upside as the market digests the improved balance‑sheet fundamentals.