SEDAR Interim Financial Statements

Interim Condensed Consolidated Financial Statements | 32 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF FINANCIAL POSITION September 30, December 31, (000s) (unaudited) 2025 2024 Assets Current assets: Accounts receivable $ 689,509 $ 792,072 Prepaid expenses and deposits 123,785 83,032 Fair value of financial instruments (note 3) 233,097 437,739 Income tax receivable 45,866 39,919 Total current assets 1,092,257 1,352,762 Long-term asset 18,378 8,527 Fair value of financial instruments (note 3) 700,660 667,359 Exploration and evaluation assets (note 4) 149,360 191,081 Property, plant and equipment (note 5) 21,339,289 19,633,286 Right-of-use asset (note 6) 37,292 30,056 Investment in Topaz (note 9) 406,444 428,472 Total Assets $ 23,743,680 $22,311,543 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 1,383,160 $ 1,329,626 Fair value of financial instruments (note 3) 27,718 122,374 Lease liabilities (note 6) 8,529 8,385 Decommissioning obligations (note 7) 75,000 60,000 Current debt (note 8) 800,000 – Total current liabilities 2,294,407 1,520,385 Fair value of financial instruments (note 3) 31,998 141,538 Lease liabilities (note 6) 30,570 23,004 Decommissioning obligations (note 7) 894,252 950,459 Long-term debt (note 8) 937,623 1,272,775 Deferred taxes 3,179,677 2,859,818 Shareholders' equity: Share capital (note 10) 10,670,726 9,856,122 Contributed surplus 497,755 426,902 Retained earnings 5,206,672 5,260,540 Total shareholders' equity 16,375,153 15,543,564 Total Liabilities and Shareholders' Equity $ 23,743,680 $22,311,543 Commitments (note 13). Subsequent events (notes 3 and 9). See accompanying notes to the interim condensed consolidated financial statements. Interim Condensed Consolidated Financial Statements | 33 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Three Months Ended September 30, Nine Months Ended September 30, (000s) except per-share amounts (unaudited) 2025 2024 2025 2024 Commodity sales from production (note 14) $ 924,974 $ 935,402 $ 3,517,007 $ 3,514,721 Premium on risk management activities (note 14) 427,209 300,705 1,027,464 547,677 Marketing revenue (note 14) 45,917 36,009 96,710 70,155 Royalties (109,271) (105,616) (378,758) (383,553) Other income 8,158 8,454 24,849 33,374 Realized gain on financial instruments 126,814 145,986 332,168 358,556 Unrealized gain (loss) on financial instruments (note 3) (33,558) 144,969 31,819 (61,451) 1,390,243 1,465,909 4,651,259 4,079,479 Expenses: Operating 280,524 249,471 865,652 754,947 Transportation 291,260 270,327 891,260 805,990 Marketing purchases (note 14) 40,521 25,540 84,375 49,412 General and administration 47,272 37,290 140,355 118,419 Share-based payments 17,977 15,680 52,587 47,986 Depletion, depreciation and amortization (notes 4, 5 and 6) 460,075 383,319 1,302,788 1,143,953 Realized foreign exchange (gain) loss (3,318) (5,128) 33,488 (38,846) Unrealized foreign exchange (gain) loss (2,867) 399 (144) (4,046) Income on investment in Topaz (note 9) (2,848) (5,620) (11,029) (13,075) Gain on acquisitions and divestitures (20,356) – (20,356) (4,826) Total expenses 1,108,240 971,278 3,338,976 2,859,914 Income from operations 282,003 494,631 1,312,283 1,219,565 Finance expenses 27,566 28,512 80,014 84,104 Income before taxes 254,437 466,119 1,232,269 1,135,461 Current tax expense (recovery) 27,240 (16,699) 22,189 28,508 Deferred tax expense 36,792 127,625 292,406 250,289 Net inco --- me and comprehensive income $ 190,405 $ 355,193 $ 917,674 $ 856,664 Net income per share (note 11) Basic $ 0.49 $ 1.01 $ 2.42 $ 2.43 Diluted $ 0.49 $ 1.00 $ 2.40 $ 2.41 See accompanying notes to the interim condensed consolidated financial statements. Interim Condensed Consolidated Financial Statements | 34 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (000s) (unaudited) Share Capital Contributed Surplus Retained Earnings Total Equity Balance at December 31, 2024 $ 9,856,122 $ 426,902 $ 5,260,540 $15,543,564 Issue of common shares on corporate and property acquisitions (note 5) 767,186 - - 767,186 Share-based payments - 52,587 - 52,587 Capitalized share-based payments (note 5) - 31,258 - 31,258 Options exercised (note 10) 47,418 (10,809) - 36,609 Restricted share units settled (note 12) - (891) - (891) Share-based payments – other - (1,292) - (1,292) Dividends paid (note 10) - - (971,542) (971,542) Income attributable to common shareholders - - 917,674 917,674 Balance at September 30, 2025 $10,670,726 $ 497,755 $ 5,206,672 $16,375,153 (000s) (unaudited) Share Capital Contributed Surplus Retained Earnings Total Equity Balance at December 31, 2023 $ 8,487,838 $ 345,570 $ 5,182,343 $14,015,751 Share-based payments - 47,986 - 47,986 Capitalized share-based payments (note 5) - 29,363 - 29,363 Options exercised (note 10) 36,943 (8,042) - 28,901 Restricted share units settled (note 12) - (396) - (396) Share-based payments – other - 17,936 - 17,936 Dividends paid (note 10) - - (869,348) (869,348) Income attributable to common shareholders - - 856,664 856,664 Balance at September 30, 2024 $ 8,524,781 $ 432,417 $ 5,169,659 $14,126,857 See accompanying notes to the interim condensed consolidated financial statements. Interim Condensed Consolidated Financial Statements | 35 CONSOLIDATED STATEMENTS OF CASH FLOW Three Months Ended September 30, Nine Months Ended September 30, (000s) (unaudited) 2025 2024 2025 2024 Cash provided by (used in): Operations: Net income $ 190,405 $ 355,193 $ 917,674 $ 856,664 Items not involving cash: Depletion, depreciation, and amortization (notes 4, 5 and 6) 460,075 383,319 1,302,788 1,143,953 Accretion (note 7) 9,462 6,974 25,984 22,106 Lease interest expense (note 6) 482 457 1,418 1,263 Share-based payments (note 12) 17,977 15,680 52,587 47,986 Current tax expense (recovery) 27,240 (16,699) 22,189 28,508 Deferred tax expense 36,792 127,625 292,406 250,289 Unrealized (gain) loss on financial instruments (note 3) 33,558 (144,969) (31,819) 61,451 Amortization on long-term asset 846 551 1,949 1,510 (Gain) on acquisitions and divestitures (20,356) - (20,356) (4,826) Income from investment in Topaz (note 9) (2,848) (5,620) (11,029) (13,075) Unrealized foreign exchange (gain) loss (2,867) 399 (144) (4,046) Decommissioning expenditures (note 7) (14,749) (12,578) (58,171) (38,511) Cash taxes paid (9,204) (39,259) (28,136) (526,802) Cash paid on restricted share units settled (329) (30) (891) (396) Dividends received from Topaz (note 9) 11,128 14,899 33,057 43,793 Changes in non-cash operating working capital 115,935 41,100 187,401 193,803 Total cash flow from operating activities 853,547 727,042 2,686,907 2,063,670 Financing: Issue of common shares 3,382 4,059 36,609 28,901 Lease payments (note 6) (2,950) (2,277) (8,632) (6,319) Dividends paid (note 10) (328,885) (299,606) (971,542) (869,348) Increase in current debt 500,000 – 800,000 – Increase (decrease) in long-term debt (332,720) (13,454) (333,669) 298,171 Total cash flow u --- sed in financing activities (161,173) (311,278) (477,234) (548,595) Investing: Property, plant and equipment (note 5) (841,971) (589,404) (2,161,832) (1,472,398) Property acquisitions (note 5) (5,140) (2,123) (17,283) (25,704) Proceeds from divestitures (note 5) 73,074 609 74,821 56,834 Investment in long-term asset (11,800) – (11,800) – Changes in non-cash investing working capital 93,463 175,154 (93,579) (73,807) Total cash flow used in investing activities (692,374) (415,764) (2,209,673) (1,515,075) Changes in cash – – – – Cash, beginning of period – – – – Cash, end of period $ – $ – $ – $ – Cash is defined as cash and cash equivalents. See accompanying notes to the interim condensed consolidated financial statements. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 36 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT SEPTEMBER 30, 2025 AND FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (tabular amounts in thousands of dollars, unless otherwise noted) (unaudited) Corporate Information: Tourmaline Oil Corp. (the "Company") was incorporated under the laws of the Province of Alberta on July 21, 2008. The Company’s registered office is located at Suite 2400, 525 – 8th Avenue S.W., Calgary, Alberta, Canada T2P 1G1. The Company is engaged in the acquisition, exploration, development and production of petroleum and natural gas properties. These unaudited interim condensed consolidated financial statements reflect only the Company's proportionate interest in such activities. The unaudited interim condensed consolidated financial statements were authorized for issue by the Board of Directors on November 5, 2025. OPERATING ENVIRONMENT Numerous factors beyond the Company's control affect the marketability and price of crude oil, condensate, NGL and natural gas which may be volatile for a number of reasons including uncertainties over the supply and demand of these commodities due to government policies (including trade policy), the current state of the world economies, sanctions or import bans, the imposition of tariffs, reshuffling of global trade flows, global macro-economic concerns, actions of OPEC+, political and geopolitical uncertainties and conditions and legal and regulatory changes and uncertainties, ongoing wars and hostilities or other adverse economic or political development in the United States, Europe, Asia or the Middle East. Further, weakening global economic activity, inflation and corresponding higher interest rates, and the potential for a recession remain a risk to the pace of economic growth. Weather will continue to be a key driver of demand and impact natural gas prices. Due to the uncertainty surrounding the magnitude, duration and potential outcomes of the above noted factors, the Company is unable, at this time, to predict its long-term impact on its operations, liquidity, financial condition and results, but the impact may be material. CLIMATE CHANGE AND ENVIRONMENTAL REGULATION Climate-related considerations are integrated into key business planning and risk management processes throughout the Company. Sustainability Reporting The Company publishes an annual Sustainability Report containing comprehensive information relating to ESG performance which can be found on the Company’s website at https://sustainability.tourmaline.com/. The Sustainability Report was developed by integrating guidance from the Greenhouse Gas Protocol, the Sustainability Accoun --- ting Standards Board Oil & Gas – Exploration & Production Standard and the Global Reporting Initiative. The Company has also included recommendations from the Task Force on Climate Related Disclosures and incorporated discussion points and metrics outlined by the ISSB. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 37 1. BASIS OF PREPARATION These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting". These unaudited interim condensed consolidated financial statements do not include all of the information and disclosure required in the annual financial statements and should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2024. These unaudited interim condensed consolidated financial statements are presented in Canadian dollars and include the accounts of Tourmaline Oil Corp. and its 100% owned subsidiary Tourmaline Oil Marketing Corp., which has a functional currency of US dollars. On January 1, 2025, the Company's subsidiaries, Crew Energy Inc. ("Crew") and Todd Energy Canada Limited ("Todd"), were amalgamated with Tourmaline. On June 6, 2025, the Company’s newly acquired subsidiary, Saguaro Resources Ltd. ("Saguaro"), was amalgamated with Tourmaline. The accounting policies and significant accounting judgments, estimates, and assumptions used in these unaudited interim condensed consolidated financial statements are consistent with those described in notes 1 and 2 of the Company's consolidated financial statements for the year ended December 31, 2024. 2. DETERMINATION OF FAIR VALUE A number of the Company's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. Tourmaline classifies the fair value of financial instruments according to the following hierarchy based on the amount of observable inputs used to value the instrument. Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1. Prices are either directly or indirectly observable as of the reporting date. Level 2 valuations are based on inputs, including quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the marketplace. Level 3 – Valuations in this level are those with inputs for the asset or liability that are not based on observable market data. The fair value of accounts receivable, deposits, income tax receivable, accounts payable and accrued liabilities, and current debt approximate their carrying amounts due to their short-term nature. Borrowings under the Company’s credit facilities, a component of long-term debt, bear interest at a floating market rate with applicable variable margins, and accordingly the fair market value approximates the carrying amount. The senior --- unsecured notes, a component of long-term debt, are carried at amortized cost. The Company's derivative financial instruments have been assessed on the fair value hierarchy described above and classified as Level 2. The Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 38 Company's natural gas embedded derivatives have been assessed on the fair value hierarchy described above and classified as Level 3. 3. FINANCIAL RISK MANAGEMENT The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The Board has implemented and monitors compliance with risk management policies. The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Company's activities. The Company's financial risks are consistent with those discussed in note 4 of the Company's consolidated financial statements for the year ended December 31, 2024. Market Risk: As at September 30, 2025, the Company has entered into certain financial derivative contracts in order to manage commodity price and foreign exchange risk. These instruments are not used for trading or speculative purposes. The Company has not designated its financial derivative contracts as effective accounting hedges, even though the Company considers all commodity contracts to be effective economic hedges. As a result, all such contracts are recorded on the interim consolidated statement of financial position at fair value, with changes in the fair value being recognized as an unrealized gain or loss on the interim consolidated statement of income and comprehensive income. The Company has the following financial derivative contracts in place as at September 30, 2025 (1): 2025 2026 2027 2028 2029 Fair Value (000s) Gas AECO swaps (2) mmbtu/d 7,109 – – – – $ 1,250 CAD$/mmbtu $ 3.64 NYMEX swaps mmbtu/d 70,000 60,000 20,000 – – $ 17,767 USD$/mmbtu $ 4.12 $ 4.14 $ 4.36 International swaps (3) mmbtu/d 56,793 30,000 35,863 30,000 – $ 139,793 USD$/mmbtu $ 14.47 $ 11.08 $ 10.83 $ 10.30 Station 2 swaps mmbtu/d – 16,587 – – – $ 1,407 CAD$/mmbtu $ 2.73 Swaps - other mmbtu/d – 10,000 – – – $ 3,071 USD$/mmbtu $ 4.25 AECO financial collars mmbtu/d 14,217 – – – – $ 1,030 CAD$/mmbtu $2.94-3.46 NYMEX financial collars mmbtu/d 9,946 3,699 – – – $ 1,691 USD$/mmbtu $4.00-7.55 $4.00-7.55 AECO call options (4) mmbtu/d – 15,165 – – – $ (243) CAD$/mmbtu $ 3.59 NYMEX call options (5) mmbtu/d 73,261 74,932 80,000 62,500 52,500 $ (16,269) USD$/mmbtu $ 5.95 $ 8.07 $ 8.25 $ 8.56 $ 8.86 Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 39 Oil Oil financial swaps bbls/d 17,000 13,734 – – – $ 54,367 USD$/bbl $ 69.60 $ 66.43 Oil financial swaps bbls/d 1,500 – – – – $ 1,607 CAD$/bbl $ 95.29 NYMEX call options bbls/d 5,000 4,247 – – – $ (7,108) USD$/bbl $ 72.91 $ 68.20 Condensate financial swaps bbls/d 250 – – – – $ 474 CAD$/bbl $ 100.00 Oil differential swaps bbls/d 2,000 – – – – $ 5 USD$/bbl $ (4.28) Propane financial swaps (6) bbls/d 10,000 4,986 – – – $ 10,225 USD$/bbl $ 34.96 $ 32.18 Total fair value $ 209,067 (1) The volumes and prices reported are the weighted average volumes and prices for the period. (2) These deals are 5A underlying. (3) Includes international swaps (JKM and TTF). (4) These are European calls whereby the counterparty can exercise the option to e --- xtend a gas swaption into the period subsequent to the calls date. These are one-time European swaptions. (5) These are European calls whereby the counterparty can exercise the option monthly on a particular day to purchase NYMEX at a specified price. (6) Propane financial swaps include OPIS Conway, Argus FEI, and Baltic LPG Freight financial swap transactions. The Company has not entered into any financial commodity derivative contracts subsequent to September 30, 2025. The Company has the following financial foreign currency derivative contracts in place at September 30, 2025: Type of Contract (1) 2025 2026 Fair Value (000s) Costless collar (2) USD$(000s)/month $ 47,500 $ 62,500 $ (17,438) CAD$/USD$ $1.34 - 1.43 $1.36 - 1.41 Call options sold (3) USD$(000s)/month $ 7,500 $ 7,500 $ 223 CAD$/USD$ $ 1.44 $ 1.44 Average rate forward USD$(000s)/month $ 5,000 – $ (129) CAD$/USD$ $ 1.37 Total fair value $ (17,344) (1) All foreign currency derivative contracts are denominated in US dollars and represent a monthly transacted amount. Total fair value is translated into Canadian dollars for financial statement purposes. (2) A portion of these financial collars have a European call writer option that, if called, would result in an average rate forward in the following amounts: USD$30.0 million/month at CAD$/USD$ 1.434 for 2026 and USD$90.0 million/month at CAD$/USD$ 1.414 for 2027. (3) If the spot rate exceeds CAD$/USD$ 1.440, the Company will be required to settle the monthly amount at a rate of CAD$/USD$ 1.440. If the spot exchange rate is less than or equal to CAD$/USD$ 1.440, the Company will settle the monthly amount at the spot rate and receive $75,000. The Company has not entered into any foreign currency derivative contracts subsequent to September 30, 2025. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 40 The Company has a 15-year natural gas supply agreement, under which Tourmaline will deliver 140,000 mmbtu/d, which commenced in January 2023. Under the terms of the agreement, Tourmaline will deliver natural gas to its counterparty at a delivery point in Louisiana, USA and receive a Japan Korea Marker ("JKM") index price less deductions for transport and liquefication. Due to the fact that the volumes are delivered to a counterparty in the United States but Tourmaline ultimately receives a JKM index price, it was determined that the agreement also contained an embedded derivative as a result of the pricing spread between JKM and NYMEX. The Company defined the host contract as a natural gas sales contract with an underlying natural gas price of NYMEX. The Company determines the fair value of the natural gas embedded derivative, at the end of each period, through the use of internal models which incorporate significant unobservable inputs (Level 3 inputs). In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks, such as future prices of energy for unobservable periods, volatility, foreign exchange and contract duration. When determining fair value estimates the Company attempts to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company will have unrealized gains (losses) on the natural gas embedded derivative based on the movements in the JKM and NYMEX price forecasts. For the three and nine months ended September 30, 20 --- 25, the natural gas embedded derivative resulted in an unrealized loss of $46.6 million and $270.1 million, respectively, as a result of the weakening of the forecast JKM price relative to the forecast NYMEX price. The following table includes quantitative information for the unobservable inputs for the Level 3 natural gas embedded derivative as at September 30, 2025. Net fair value asset (millions) Valuation Approach Significant unobservable input Range of significant unobservable inputs/weighted average ($USD/mmbtu) Natural gas embedded derivative $586.8 Market approach incorporating present value techniques JKM index pricing spread relative to NYMEX $7.01 – $8.63 / $7.89 The Level 3 fair value measurements of the natural gas embedded derivative could be materially impacted by a change in the discount rate and significant price movements in natural gas, including international LNG prices. At September 30, 2025, a change in the discount rate or a change in the price of the JKM index over the remainder of the contract would have the following impact on the fair value of the embedded derivative: (000s) Discount rate JKM Price 1% Increase 1% decrease 5% Increase 5% decrease Fair value – increase (decrease) $ (16,988) $ 18,017 $ 138,240 $ (137,989) The Company has a 34-month physical netback agreement, under which Tourmaline will deliver 50,000 mmbtu/d of natural gas at AB-NIT and receive a Dutch TTF index price (less associated deductions) which commenced in March 2024. Due to the fact that the volumes are delivered to a counterparty in Alberta, but Tourmaline ultimately receives a Dutch TTF index price, it was determined that the agreement contained an embedded derivative as a result of the pricing spread between Dutch TTF and AECO. The Company defined the host contract as a natural gas sales contract with an underlying natural gas price of AECO. The fair value liability of the contract at September 30, 2025 was $11.2 million (December 31, 2024 - $23.4 million fair value asset). Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 41 In June 2025, the Company entered into an 8-year natural gas supply agreement, under which Tourmaline will deliver 80,000 mmbtu/d of natural gas to its counterparty at a delivery point in Louisiana, USA and receive a Dutch TTF index price less deductions for transport and liquefication which will commence in November 2028. Due to the fact that the volumes are delivered to a counterparty in the United States, but Tourmaline ultimately receives a Dutch TTF index price, it was determined that the agreement contained an embedded derivative as a result of the pricing spread between Dutch TTF and NYMEX. The Company defined the host contract as a natural gas sales contract with an underlying natural gas price of NYMEX. The fair value of the contract at September 30, 2025 was $73.7 million (December 31, 2024 - nil). In August 2025, the Company entered into a 19-month natural gas supply agreement, under which Tourmaline will deliver 50,000 mmbtu/d of natural gas to its counterparty at a delivery point in Louisiana, USA and receive a Dutch TTF index price less associated deductions which will commence in April 2027. Due to the fact that the volumes are delivered to a counterparty in the United States, but Tourmaline ultimately receives a Dutch TTF index price, it was determined that the agreement contained an embedded derivative as a result of the pricing spread between Dutch TTF and NYMEX. The --- Company defined the host contract as a natural gas sales contract with an underlying natural gas price of NYMEX. The fair value of the contract at September 30, 2025 was $19.4 million (December 31, 2024 - nil). On October 2, 2025, the Company entered into a 1-year natural gas supply agreement, commencing in April 2026, under which Tourmaline will deliver 30,000 mmbtu/d and receive a Dutch TTF index price less associated deductions. On October 24, 2025, the Company entered into a 10-year natural gas supply agreement, commencing in April 2028, under which Tourmaline will deliver 50,000 mmbtu/d and receive a Dutch TTF index price less associated deductions. The following table is a summary of the fair value of financial instruments as at September 30, 2025: (000s) Financial derivative contracts Foreign currency derivative contracts Natural gas embedded derivatives (1) Total Current asset $ 99,368 $ 416 $ 133,313 $ 233,097 Long-term asset 139,036 612 561,012 700,660 Current liability (10,041) (5,670) (12,007) (27,718) Long-term liability (19,296) (12,702) – (31,998) Total fair value of financial instruments $ 209,067 $ (17,344) $ 682,318 $ 874,041 (1) Includes natural gas supply agreement embedded derivatives and natural gas to power supply agreement embedded derivatives. The following table provides a summary of the unrealized gains (losses) on financial instruments recorded in the interim condensed consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2025 and 2024: Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 42 Three Months Ended September 30, Nine Months Ended September 30, (000s) 2025 2024 2025 2024 Unrealized gain (loss) on financial instruments – commodity contracts $ 42,032 $ 52,467 $ 66,199 $ (49,752) Unrealized gain (loss) on financial instruments – foreign currency (16,076) 16,634 168,503 10,244 Unrealized gain (loss) on financial instruments – natural gas embedded derivative (1) (59,514) 75,868 (202,883) (21,943) Total unrealized gain (loss) on financial instruments $ (33,558) $ 144,969 $ 31,819 $ (61,451) (1) Includes natural gas supply agreement embedded derivatives and natural gas to power supply agreement embedded derivatives. In addition to the financial commodity contracts discussed above, the Company has entered into physical delivery sales contracts to manage commodity risk. These contracts are considered normal sales contracts and are not recorded at fair value in the unaudited interim condensed consolidated financial statements. The Company has the following physical commodity contracts in place at September 30, 2025 (1)(5): 2025 2026 2027 2028 2029 Gas Fixed price (2) mmbtu/d 1,057,597 505,282 144,782 77,391 48,956 CAD$/mmbtu $ 3.57 $ 3.93 $ 4.34 $ 4.03 $ 4.52 Basis differentials - AECO mmbtu/d 76,739 103,452 70,000 62,500 52,500 USD$/mmbtu $ (0.67) $ (0.64) $ (0.64) $ (0.64) $ (0.63) Basis differentials - Dawn mmbtu/d 13,315 12,041 8,329 – – USD$/mmbtu $ (0.04) $ (0.03) $ (0.04) Basis differentials – Other (3) mmbtu/d 35,000 – – – – USD$/mmbtu $ (0.24) Geographic spreads (4) mmbtu/d 30,000 24,986 – – – USD$/mmbtu $ 1.81 $ 1.81 Monthly calls mmbtu/d 6,387 – – – – CAD$/mmbtu $ 2.16 European calls mmbtu/d – 9,478 – – – CAD$/mmbtu $ 3.61 Oil Basis differentials - Oil bbls/d 2,052 – – – – USD$/bbl $ (2.75) Basis differentials - Condensate bbls/d 2,052 – – – – USD$/bbl $ (3.93) (1) The volumes and prices reported are the weighted avera --- ge volumes and prices for the period. (2) These include AECO, Stn 2, PG&E, and Malin. (3) These are basis differentials for non-AECO markets. (4) These are the locked-in spread between two markets. (5) Tourmaline has third-party natural gas netback arrangements in the following markets: Chicago, Ventura Dawn, and Henry Hub. The average for 2025 - 2029 is 99 mmcf/d. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 43 The Company has entered into the following physical contracts subsequent to September 30, 2025: Type of Contract Quantity Time Period Contract Price Fixed price - Gas 30,000 GJ/d October 2025 $0.725 CAD/GJ Fixed price - Gas 20,000 GJ/d October 2025 – November 2025 $1.500 CAD/GJ Fixed price - Gas 5,000 GJ/d November 2025 $2.440 CAD/GJ Fixed price - Gas 35,000 GJ/d April 2026 – October 2026 $2.633 CAD/GJ Capital Management: The Company's policy is to maintain a strong capital base to preserve investor, creditor and market confidence and to sustain the future development of the business. The Company considers its capital structure to include shareholders' equity, long term-debt and working capital. In order to maintain or adjust the capital structure, the Company may from time-to-time issue or buyback shares, issue debt, adjust its dividend policy and adjust its capital spending to manage current and projected debt levels. The annual and updated budgets are approved by the Board of Directors. The key measure that the Company utilizes in evaluating its capital structure is net debt to annualized cash flow, which is defined as long-term debt (including credit facilities and senior unsecured notes) and working capital (deficit) (adjusted for the fair value of short-term financial instruments, short-term lease liabilities, short-term decommissioning obligations and unrealized foreign exchange), to annualized cash flow (based on the most recent quarter), defined as cash flow from operating activities before changes in non-cash working capital (adjusted for current tax expense (recovery) and cash taxes paid). Net debt to annualized cash flow represents a measure of the time it is expected to take to pay off the debt if no further capital expenditures were incurred and if cash flow in the next year were equal to the amount in the most recent quarter annualized. As shown below, as at September 30, 2025, the Company's ratio of net debt to annualized cash flow was 0.79 to 1.00 (December 31, 2024 – 0.50 to 1.00). (000s) As at September 30, 2025 As at December 31, 2024 Net debt: Working capital (deficit) $(1,202,150) $ (167,623) Fair value of financial instruments – short-term (asset) (205,379) (315,365) Lease liabilities – short-term 8,529 8,385 Decommissioning obligations – short-term 75,000 60,000 Unrealized foreign exchange in working capital – (asset) (144) (15,354) Adjusted working capital (deficit) $(1,324,144) $ (429,957) Long-term debt (937,623) (1,272,775) Net debt $(2,261,767) $(1,702,732) Annualized cash flow: Cash flow from operating activities for the quarter $ 853,547 $ 666,110 Current income tax (27,240) (36,665) Current taxes paid (recovered) 9,204 (34) Change in non-cash working capital (115,935) 220,919 Cash flow $ 719,576 $ 850,330 Annualized cash flow (based on most recent quarter annualized) $ 2,878,304 $ 3,401,320 Net debt to annualized cash flow 0.79 0.50 Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 44 For the nine months ended September 30, 2025, the Compa --- ny maintained its quarterly base dividend at $0.50 per share, totaling a $1.50 per share and paid three special dividends of $0.35 per share, totaling a $1.05 per share. 4. EXPLORATION AND EVALUATION ASSETS (000s) As at January 1, 2024 $ 231,904 Transfers to property, plant and equipment (note 5) (23,190) Divestitures (6,922) Expired mineral leases (10,711) As at December 31, 2024 $ 191,081 Transfers to property, plant and equipment (note 5) (17,393) Divestitures (3,627) Expired mineral leases (20,701) As at September 30, 2025 $ 149,360 Exploration and evaluation ("E&E") assets consist of the Company's exploration projects which are pending the determination of proved and/or probable reserves. Expired mineral lease expenses have been included in the "Depletion, Depreciation and Amortization" line item on the interim statements of income and comprehensive income. Impairment Assessment At September 30, 2025, and December 31, 2024, the Company determined that no internal or external indicators of impairment existed on its E&E assets; therefore, an impairment test was not performed. 5. PROPERTY, PLANT AND EQUIPMENT ("PP&E") Cost (000s) As at January 1, 2024 $ 25,562,139 Capital expenditures 2,264,688 Transfers from exploration and evaluation (note 4) 23,190 Change in decommissioning liabilities (note 7) 44,306 Corporate acquisitions 1,859,267 Property acquisitions 42,108 Divestitures (287,470) As at December 31, 2024 $ 29,508,228 Capital expenditures 2,193,090 Transfers from exploration and evaluation (note 4) 17,393 Change in decommissioning liabilities (note 7) (23,430) Corporate acquisitions 531,126 Property acquisitions 316,214 Divestitures (54,353) As at September 30, 2025 $ 32,488,268 Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 45 Accumulated Depletion, Depreciation, Amortization and Impairment (000s) As at January 1, 2024 $ 8,347,507 Depletion, depreciation and amortization 1,533,038 Divestitures (5,603) As at December 31, 2024 $ 9,874,942 Depletion, depreciation and amortization 1,274,399 Divestitures (362) As at September 30, 2025 $ 11,148,979 Net Book Value (000s) As at December 31, 2024 $ 19,633,286 As at September 30, 2025 $ 21,339,289 Future development costs of $20.2 billion were included in the depletion calculation at September 30, 2025 (December 31, 2024 – $18.4 billion). Capitalization of G&A and Share-Based Payments A total of $40.0 million in G&A expenditures have been capitalized and included in PP&E for the nine months ended September 30, 2025 (December 31, 2024 – $45.2 million). Also included in PP&E are non-cash share-based payments of $31.3 million (December 31, 2024 - $38.6 million). Impairment Assessment At September 30, 2025, and December 31, 2024, the Company did not identify indicators of impairment on any of its CGUs and therefore, an impairment test was not performed. The Company has no CGUs with historical impairment that have not been fully reversed. Corporate Acquisition On June 6, 2025, the Company acquired all the issued and outstanding shares of Saguaro. The Company issued 7,546,785 Tourmaline common shares at a price of $63.80 per share for share consideration of $481.5 million. Total transaction costs incurred by the Company of $0.8 million associated with this acquisition were expensed in the unaudited interim consolidated statement of income and comprehensive income. The acquisition represents an important component of the Company’s continuing NEBC consolidation stra --- tegy that builds on its long-term organic growth plan. Prior to the acquisition, Tourmaline was a 50% owner in the Saguaro assets and the acquisition consolidates this ownership and provides for an increase in drilling inventory, developed lands, production and infrastructure. This transaction has been accounted for as a business combination and results from operations for Saguaro are included in the Company’s unaudited interim consolidated financial statements from the closing date of the transaction. The estimated acquisition date fair value attributed to the PP&E was derived from the estimate of proved and probable oil and gas reserves and the related cash flows prepared at December 31, 2024 by independent third-party reserve evaluators and updated by internal reserve evaluators to reflect activity up to June 6, 2025. The estimated proved and probable oil and gas reserves and the related cash flows were discounted at a rate based on what a market participant would have paid, as well as market metrics in the prevailing area at that time. The acquisition has been accounted for using the purchase method based on estimated fair values as follows: Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 46 (000s) Saguaro Fair value of net assets acquired: Cash $ 21,483 Working capital (deficit) (21,666) Property, plant and equipment 531,126 Financial instruments (net) 1,036 Bank debt (20,000) Decommissioning obligations (4,333) Deferred income taxes (26,161) Total $ 481,485 Consideration: Shares issued $ 481,485 Property Acquisition On June 1, 2025, the Company acquired assets in the Groundbirch area from Strathcona Resources Ltd. (“Strathcona”). The Company issued 4,578,542 common shares at a price of $62.40 for share consideration of $285.7 million. Total transaction costs incurred by the Company of $0.5 million associated with this acquisition were expensed in the unaudited interim consolidated statement of income and comprehensive income. This acquisition provides for an increase in drilling inventory, developed lands, production and infrastructure. This transaction has been accounted for as a business combination and the results from operations for Strathcona are included in the Company’s unaudited interim consolidated financial statements from the closing date of the transaction. The estimated acquisition date fair value attributed to the PP&E was derived from the estimate of proved and probable oil and gas reserves and the related cash flows prepared by internal reserve evaluators as at June 1, 2025. The estimated proved and probable oil and gas reserves and the related cash flows were discounted at a rate based on what a market participant would have paid, as well as market metrics in the prevailing area at that time. The acquisition has been accounted for using the purchase method based on estimated fair values as follows: (000s) Strathcona Fair value of net assets acquired: Property, plant and equipment $ 288,169 Decommissioning obligations (2,468) Total $ 285,701 Consideration: Shares issued $ 285,701 Disposition of Oil and Natural Gas Properties On September 30, 2025, the Company sold a royalty interest on the acquired Saguaro and Strathcona lands to Topaz Energy Corp. (“Topaz”) for cash consideration of $71.7 million, before customary adjustments. The transaction resulted in a gain on disposition of $20.4 million which was recorded in the Company’s consolidated income statement for the period ended Septemb --- er 30, 2025. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 47 Total Acquisitions and Dispositions of Oil and Natural Gas Properties In total, for the nine months ended September 30, 2025, the Company completed property acquisitions for cash consideration of $17.3 million (December 31, 2024 – $33.1 million) and $290.8 million in property acquisitions (including Strathcona) for non-cash consideration (December 31, 2024 - $7.8 million). The Company assumed $10.6 million in decommissioning liabilities as a result of these acquisitions (December 31, 2024 – $1.2 million). For the nine months ended September 30, 2025, the Company also completed property dispositions for total cash consideration of $74.8 million (including the royalty interest sale) (December 31, 2024 – $357.7 million) and non- cash consideration of $2.7 million (December 31, 2024 – $7.8 million). The Company disposed of $0.5 million in decommissioning liabilities as a result of these dispositions (December 31, 2024 – $1.5 million). 6. LEASES Right-of-Use Assets (000s) As at September 30, 2025 As at December 31, 2024 Balance, beginning of period $ 30,056 $ 25,760 Additions 15,116 11,533 Modifications (192) (396) Right-of-use assets acquired from corporate acquisitions – 1,373 Depreciation (7,688) (8,214) Balance, end of period $ 37,292 $ 30,056 Lease Liabilities (000s) As at September 30, 2025 As at December 31, 2024 Balance, beginning of period $ 31,389 $ 26,305 Additions 15,116 11,533 Modifications (192) (396) Lease liabilities acquired from corporate acquisitions – 1,373 Lease interest expense 1,418 1,766 Lease payments (8,632) (9,192) Balance, end of period $ 39,099 $ 31,389 Current lease liabilities $ 8,529 $ 8,385 Long-term lease liabilities $ 30,570 $ 23,004 The Company leases office space, vehicles and IT equipment. The lease payments are discounted using the Company's incremental borrowing rate at the inception of the lease to calculate the lease liability. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 48 7. DECOMMISSIONING OBLIGATIONS The Company's decommissioning obligations result from net ownership interests in petroleum and natural gas assets including well sites, gathering systems and processing facilities. The Company estimates the total inflated but undiscounted amount of cash flow required to settle its decommissioning obligations is approximately $2.9 billion (December 31, 2024 – $2.8 billion). A risk-free rate of 3.61% (December 31, 2024 – 3.33%) and an inflation rate of 1.95% (December 31, 2024 – 1.82%) were used to calculate the decommissioning obligations. The decommissioning obligations at September 30, 2025 have been reduced by approximately $44.2 million predominantly related to an increase in the risk-free rate. (000s) As at September 30, 2025 As at December 31, 2024 Balance, beginning of period $1,010,459 $ 967,041 Obligation incurred 20,802 23,559 Obligation incurred on corporate acquisition 4,333 24,884 Obligation incurred on property acquisitions (note 5) 10,570 1,237 Obligation divested (note 5) (493) (1,504) Obligation settled (58,171) (55,476) Accretion expense 25,984 29,971 Change in future estimated cash outlays (44,232) 20,747 Balance, end of period $ 969,252 $ 1,010,459 Current decommissioning obligations $ 75,000 $ 60,000 Long-term decommissioning obligation $ 894,252 $ 950,459 8. DEBT (000s) As at September 30, 2025 As at December 31, 2024 Commercial paper $ 800,000 $ - Revolvi --- ng credit facility 239,980 534,646 Operating credit facility - 40,731 Senior unsecured notes 700,000 700,000 Debt issue costs (2,357) (2,602) Total debt $1,737,623 $ 1,272,775 Current debt $ 800,000 $ - Long-term debt $ 937,623 $ 1,272,775 Commercial paper During the second quarter of 2025, the Company established a commercial paper (“CP”) program, authorizing the Company to borrow up to $800.0 million of CP at any given time. As at September 30, 2025, the Company had $800.0 million of CP outstanding with an average term of 31 days and an average interest rate of 3.05%. The CP program is supported by the Company’s revolving credit facility and the Company reserves capacity under its revolving credit facility for any CP amounts outstanding. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 49 Credit facilities The Company has a covenant-based, unsecured, five-year extendible revolving credit facility in place with a syndicate of banks in the amount of $2.55 billion. In June 2025, the Company extended the maturity date of the revolving credit facility to June 2030. With the exception of the change in maturity date and the expansion feature ("accordion"), the revolving credit facility was renewed under the same key terms and conditions as those described in note 9 of the Company's consolidated financial statements for the year ended December 31, 2024. The maturity date may, at the request of the Company and with consent of the lenders, be extended on an annual basis. The revolving credit facility includes an accordion feature, which increased from $500.0 million to $1.0 billion during the second quarter of 2025. The accordion allows the Company, upon approval from the lenders, to increase the facility amount by up to $1.0 billion by adding a new financial institution or by increasing the commitment of its existing lenders. The revolving credit facility can be drawn in either Canadian or U.S. funds and bears interest at the agent bank's prime lending rate, CORRA or SOFR (for U.S. borrowings), plus applicable margins. The Company also has a covenant-based, unsecured, operating credit facility with a Canadian bank. On February 3, 2025, the Company increased the operating credit facility from $50.0 million to $75.0 million. In June 2025, the Company extended the maturity date of the operating credit facility to June 2027. With the exception of the change in amount and maturity date, the operating credit facility was renewed under the same key terms and conditions as those described in note 9 of the Company's consolidated financial statements for the year ended December 31, 2024. The maturity date may, at the request of the Company and with consent of the lender, be extended on an annual basis. The covenants are the same as the revolving credit facility. Additionally, the Company has an unsecured demand letter of credit facility with a Canadian bank. On February 3, 2025, the Company increased the demand letter of credit facility from $50.0 million to $75.0 million. At September 30, 2025 and December 31, 2024, the demand letter of credit facility was undrawn. Tourmaline has outstanding letters of credit in the amount of $62.0 million at September 30, 2025 (December 31, 2024 - $64.9 million) which are secured by the operating credit facility and the demand facility. Senior unsecured notes As at September 30, 2025, the Company has issued $700.0 million of senior unsecured notes, which are summarized below: Issue Date Mat --- urity Date Interest Rate Principal January 25, 2021 January 25, 2028 2.077% $250.0 million August 9, 2021 February 12, 2029 2.529% $200.0 million May 28, 2024 May 30, 2027 4.856% $250.0 million The unsecured notes rank equally with all other present unsecured and subordinated debt of the Company. There are no financial covenants on these senior unsecured notes. The Company's aggregate borrowing capacity is $3.4 billion at September 30, 2025 including the credit facilities and senior unsecured notes. As at, and for the quarter ending September 30, 2025, the Company is in compliance with all debt covenants. The effective interest rate for the nine months ended September 30, 2025 was 4.01% (nine months ended September 30, 2024 – 4.82%). Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 50 9. INVESTMENT IN TOPAZ At September 30, 2025, the Company owned 21.3% of the outstanding common shares of its associate, Topaz. A reconciliation of the investment in Topaz is provided below: (000s) As at September 30, 2025 As at December 31, 2024 Balance, beginning of period $ 428,472 $ 608,028 Income from investment in Topaz 11,029 14,315 Dividends received from Topaz (33,057) (54,594) Divestitures of Topaz common shares - (166,611) Gain on dilution of Investment in Topaz - 27,334 Balance, end of period $ 406,444 $ 428,472 For the nine months ended September 30, 2025, Topaz paid cash dividends totalling $1.01 per common share and Tourmaline received $33.1 million, which was recorded as a reduction to the investment in Topaz. On October 28, 2025, Tourmaline sold a portion of its investment in Topaz through a secondary offering of Topaz common shares for gross consideration of $230.9 million which resulted in the Company selling 9.2 million Topaz common shares. Following the closing of the offering, Tourmaline’s ownership interest in Topaz has been reduced from 21.3% to 15.3%. 10. SHARE CAPITAL (a) Authorized Unlimited number of Common Shares without par value. Unlimited number of non-voting Preferred Shares, issuable in series. (b) Common Shares Issued As at September 30, 2025 As at December 31, 2024 (000s) except share amounts Number of Shares Amount Number of Shares Amount Balance, beginning of period 373,684,018 $ 9,856,122 351,350,749 $ 8,487,838 Issued on corporate and property acquisitions 12,125,327 767,186 20,707,008 1,315,552 For cash on exercise of stock options 1,169,345 36,609 1,626,261 41,185 Contributed surplus on exercise of stock options - 10,809 - 11,547 Balance, end of period 386,978,690 $10,670,726 373,684,018 $ 9,856,122 Normal course issuer bid The Company has a normal course issuer bid ("NCIB") in place. On August 6, 2025, the Company renewed its NCIB allowing up to 19,342,343 common shares, representing 5% of its common shares outstanding at July 31, 2025, to be purchased over a period of twelve months commencing on August 8, 2025 and expiring on August 7, 2026. Under the NCIB, common shares may be repurchased at prevailing market prices and any common shares that are purchased under the NCIB will be cancelled upon their purchase by the Company. For the three and nine months ended September 30, 2025, the Company did not purchase any common shares for cancellation. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 51 Dividends During the three and nine months ended September 30, 2025, the Company paid base quarterly cash dividends of $0.50 and $1.50 per common share totalling $193 --- .5 million and $574.0 million, respectively, compared to $0.35 and $0.97 per common share totalling $123.4 million and $341.5 million, respectively, for the same periods of the prior year. On March 25, 2025, the Company paid a special dividend of $0.35 per common share totalling $131.0 million (March 21, 2024 - $0.50 per common share totalling $175.7 million). On May 26, 2025, the Company paid a special dividend of $0.35 per common share totalling $131.1 million (May 16, 2024 - $0.50 per common share totalling $175.9 million). On August 20, 2025, the Company paid a special dividend of $0.35 per common share totalling $135.4 million (August 21, 2024 - $0.50 per common share totalling $176.2 million). 11. EARNINGS PER SHARE Basic earnings-per-share attributed to common shareholders was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income and comprehensive income for the period (000s) $ 190,405 $ 355,193 $ 917,674 $ 856,664 Weighted average number of common shares – basic 386,898,078 352,473,716 379,773,686 351,926,798 Earnings per share – basic $ 0.49 $ 1.01 $ 2.42 $ 2.43 Diluted earnings-per-share attributed to common shareholders was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income and comprehensive income for the period (000s) $ 190,405 $ 355,193 $ 917,674 $ 856,664 Weighted average number of common shares – diluted 389,037,495 355,401,435 382,176,389 355,246,760 Earnings per share – diluted $ 0.49 $ 1.00 $ 2.40 $ 2.41 There were 13,353,335 and 12,385,479 options excluded from the weighted-average share calculations for the three and nine months ended September 30, 2025 because they were anti-dilutive (three and nine months ended September 30, 2024 – 8,808,543 and 8,344,029 options, respectively, were anti-dilutive). 12. SHARE-BASED PAYMENTS STOCK OPTION PLAN The Company has a rolling stock option plan. Under the employee stock option plan, the Company may grant options to its employees up to 29,023,402 shares of common stock, which represents 7.5% of the current outstanding common shares. The exercise price of each option equals the volume-weighted average market price for the five days preceding the issue date of the Company's stock on the date of grant and the option's maximum term is seven years. Options are granted throughout the year and vest 1/3 on each of the first, second and third anniversaries from the date of grant. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 52 Nine Months Ended September 30, 2025 2024 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Stock options outstanding, beginning of period 17,417,581 $ 57.14 14,224,264 $ 50.69 Granted 1,598,000 63.80 1,428,600 62.78 Exercised (1,169,345) 31.31 (1,191,412) 24.26 Forfeited (193,066) 67.30 (273,856) 68.96 Stock options outstanding, end of period 17,653,170 $ 59.34 14,187,596 $ 53.78 The average trading price of the Company's common shares was $63.68 during the nine months ended September 30, 2025 (nine months ended September 30, 2024 – $61.81). The following table summarizes stock options outstanding and exercisable at September 30, 2025: Range of Exercise Price Number Outstanding at Period End Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at Period End Weighted Average Exercise Price $12.57 – 42.59 3,528 --- ,021 2.27 $ 25.94 3,528,021 $ 25.94 $42.60 – 65.95 3,474,469 5.55 60.43 1,078,550 57.09 $65.96 – 66.82 3,394,005 5.08 66.15 1,121,769 66.15 $66.83 – 68.37 3,530,800 5.96 67.19 145,000 68.19 $68.38 – 80.06 3,725,875 4.12 76.32 3,248,145 77.32 17,653,170 4.59 $ 59.34 9,121,485 $ 53.53 The fair value of options granted during the nine-month period ended September 30, 2025 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and resulting values: Nine months ended September 30, 2025 2024 Fair value of options granted (weighted average) $ 15.03 $ 18.96 Risk-free interest rate 2.77% 3.62% Estimated hold period prior to exercise 4.2 Years 4.1 Years Expected volatility 34% 38% Forfeiture rate 1.9% 1.8% Dividend per share $ 1.88 $ 1.25 RESTRICTED SHARE UNIT ("RSU") PLAN The Company has a non-treasury based RSU plan whereby the Company may grant RSUs to officers, employees, and consultants of the Company. The RSUs can be granted throughout the year and vest 1/3 on each of the first, second and third anniversaries from the date of grant. The RSUs will be settled on the vesting date in common shares purchased by an independent third-party service provider in the open market. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 53 The following table summarizes the RSUs outstanding at September 30, 2025: Nine months ended September 30, 2025 2024 RSUs outstanding, beginning of period 728,321 502,548 Granted 4,780 3,490 Settled (14,250) (5,345) Forfeited (15,428) (22,614) Dividends reinvested 28,840 19,641 RSUs outstanding, end of period 732,263 497,720 The expense related to RSUs is calculated using the fair value method based on the Company's share price at the grant date and is recorded in share-based payments with a portion being capitalized. 13. COMMITMENTS In the normal course of business, the Company is obligated to make future payments. These obligations represent contracts and other commitments that are known and non-cancellable. PAYMENTS DUE BY YEAR (000s) 1 Year 2-3 Years 4-5 Years >5 Years Total Operating commitments (1) $ 6,196 $ 11,696 $ 11,190 $ 19,325 $ 48,407 Firm transportation agreements 1,209,053 1,948,836 1,516,715 6,427,042 11,101,646 Processing commitments (2) 251,296 397,708 259,134 420,329 1,328,467 Capital commitments (3) 11,721 19,993 6,417 - 38,131 Commercial paper (4) 800,000 - - - 800,000 Bank debt (5) - - 291,656 - 291,656 Senior unsecured notes (6) 22,391 526,067 201,860 - 750,318 $ 2,300,657 $ 2,904,300 $ 2,286,972 $ 6,866,696 $14,358,625 (1) Operating commitments includes variable operating costs related to the Company's office leases. (2) Includes processing and power commitments. (3) Includes drilling commitments. (4) Includes interest expense at 3.05% being the rate applicable to outstanding CP at September 30, 2025. (5) Includes interest expense at 4.18% being the rate applicable to outstanding bank debt at September 30, 2025 and interest paid at the maturity of the facility. (6) Includes interest expense at 3.20% being the average rate applicable on the senior unsecured notes at September 30, 2025 with interest payments made semi- annually. 14. REVENUE The Company sells its production pursuant to fixed and variable priced contracts. The transaction price for variable priced contracts is based on the commodity price, adjusted for quality, location or other factors, whereby each component of the pricing formula can be --- either fixed or variable, depending on the contract terms. Under the contracts, the Company is required to deliver a fixed volume of crude oil, NGLs or natural gas to the contract counterparty. Revenue is recognized when a unit of production is delivered to the contract counterparty. The amount of revenue recognized is based on the agreed transaction price, whereby any variability in revenue related specifically to the Company's efforts to deliver production, and therefore the resulting revenue is allocated to the production delivered in the period during which the variability occurs. As a result, none of the variable revenue is considered constrained. Notes to the Unaudited Interim Condensed Consolidated Financial Statements | 54 The sales of produced commodities are under contracts of varying terms of up to twelve years. Revenues are typically collected on the 25th day of the month following production. The following table presents the Company's oil, gas and NGL sales disaggregated by revenue source: Three Months Ended September 30, Nine Months Ended September 30, (000s) 2025 2024 2025 2024 Natural gas Sales from production $ 283,419 $ 298,433 $ 1,517,864 $ 1,461,689 Premium on risk management activities 434,544 309,677 1,033,532 543,129 717,963 608,110 2,551,396 2,004,818 Oil Sales from production 103,104 88,069 303,204 318,210 Premium on risk management activities 2,070 3,598 5,089 11,764 105,174 91,667 308,293 329,974 Condensate Sales from production 310,931 294,716 962,664 917,387 (Loss) on risk management activities (559) (119) (792) (742) 310,372 294,597 961,872 916,645 NGL Sales from production 227,520 254,184 733,275 817,435 (Loss) on risk management activities (8,846) (12,451) (10,365) (6,474) 218,674 241,733 722,910 810,961 Marketing revenue (1) 45,917 36,009 96,710 70,155 Total Commodity sales from production 924,974 935,402 3,517,007 3,514,721 Premium on risk management activities 427,209 300,705 1,027,464 547,677 Marketing revenue 45,917 36,009 96,710 70,155 Revenue from contracts with customers $ 1,398,100 $ 1,272,116 $ 4,641,181 $ 4,132,553 (1) Marketing revenue represents the sale of commodities purchased from third parties. For the three and nine months ended September 30, 2025, the Company had marketing purchases from third parties of $40.5 million and $84.4 million, respectively (three and nine months ended September 30, 2024 - $25.5 million and $49.4 million, respectively). 15. RELATED PARTY The Company has entered into a number of agreements with Topaz, relating to both royalty and infrastructure assets. From January 1, 2025, to September 30, 2025, gross overriding royalties of $69.9 million and processing fees of $29.3 million were payable to Topaz and are included in the Company's consolidated statement of income and comprehensive income as royalties and operating expenses. At September 30, 2025, $18.6 million of the Company's accounts payable balance was due to Topaz. The Company’s accounts receivable as at September 30, 2025, includes $71.7 million due from Topaz in respect of the September 30, 2025 royalty acquisition (note 9), which was paid on October 1, 2025.