Saturn Oil & Gas Inc. Announces Third Quarter 2025 Results, Highlighted by Production Ahead of Guidance and Continued Execution of Our Blueprint Strategy

Executive Summary

• Saturn Oil & Gas reported Q3 2025 production of 41,142 boe/d, 10% above the midpoint of its guidance and higher than the prior quarter.
• Adjusted funds flow (AFF) reached $103 million ($0.54 per share), with free funds flow of $16 million, supporting continued debt reduction and a $12 million share‑repurchase program.
• Capital spending was $87 million, split between drilling 29 gross wells and two tuck‑in acquisitions (SE SK and Central AB) adding ~5,400 boe/d of production. Quarterly debt repayments totaled US$16.3 million; senior notes balance fell to US$553 million.

Key Details

• Production
• Q3 2025 average: 41,142 boe/d (up 10% vs. guidance midpoint of 37‑38 k boe/d).

• SE SK tuck‑in added ~4,100 boe/d; Central AB tuck‑in added ~1,300 boe/d.

• Financial Performance

• Adjusted EBITDA: $124 million.
• AFF: $103 million ($0.54/share basic).
• Free funds flow: $16 million.

• Net operating expense: $19.24/boe, 3% below guidance.

• Capital Expenditures

• Total capex: $87 million (includes $58.1 M for drilling 29 gross wells, $18.2 M land spend in SE SK).

• Shift of capital from drilling to higher‑return acquisitions.

• Acquisitions & Assets

• Closed SE SK tuck‑in on July 31 2025 – ~4,100 boe/d, 255 gross OHML locations.

• Closed Central AB tuck‑in on Oct 20 2025 – ~1,300 boe/d, 83 gross OHML locations.

• Debt & Liquidity

• Quarterly debt repayments: US$16.3 M (C$22.6 M).
• Senior notes balance at quarter‑end: US$553 M (C$783 M total net debt).

• Cash on hand: $34 million; undrawn credit facility $150 million with optional expansion up to $250 million.

• Share Repurchases

• $12 M returned via NCIB (3.3 M shares) and substantial issuer bid (1.6 M shares).

• Additional $4.6 M spent post‑quarter to buy back 1.7 M shares on open market.

• Outlook

• Q4 2025 capex forecast: $60‑70 million; focus on Mississippian development and OHML drilling.
• Expected Q4 production: 42,000‑43,000 boe/d; FY‑end 2025 exit production: 43,000‑44,000 boe/d.

• Full‑year 2026 guidance to be released mid‑December 2025.

• Conference Call

• Thursday, Nov 6 2025 at 8:00 am MT (10:00 am ET). Webcast link provided.

Notable Quotes

“Saturn's Q3/25 results demonstrate the continued execution of our Blueprint strategy…the announcement of two separate tuck‑in acquisitions … further extend the long‑term sustainability of Saturn and contribute to robust AFF.” – John Jeffrey, CEO

Materiality Assessment: Material – Positive (significant production beat, strong cash flow, debt reduction, and strategic acquisitions).