Hemisphere Energy Announces 2025 Third Quarter Results, Declares Quarterly Dividend, and Provides Operations Update

Executive Summary

• Hemisphere Energy reported Q3 2025 production of 3,571 boe/d (99% heavy oil) with revenue of C$23.1 M and an operating netback of $41.39/boe.
• The company declared a quarterly cash dividend of $0.025 per share (payable Dec 30, 2025) and noted total shareholder returns of at least C$21.6 M for 2025 including dividends and NCIB repurchases.
• Management provided an operations update highlighting a fall drilling program, facility turnaround completion, and revised 2025 production guidance to 3,600‑3,700 boe/d.

Key Details

• Production & Revenue
• Q3 2025 average production: 3,571 boe/d (99% heavy oil).

• Quarterly petroleum & natural gas revenue: C$23.1 M.

• Financial Performance

• Operating netback for the quarter: $41.39/boe (C$13.6 M total).
• Adjusted funds flow from operations (AFF): C$10.05 M ($30.59/boe).
• Free funds flow: C$4.88 M.
• Net income: C$6.93 M.

• Working capital at quarter‑end: C$10.97 M.

• Capital Expenditure & Cash Flow

• Capital expenditures in Q3 2025: C$5.17 M.

• Initiated fall drilling program with $5.2 M capex.

• Dividends & Shareholder Returns

• Special dividend paid Aug 15, 2025: C$0.03/share (C$2.9 M).
• Quarterly base dividend declared: $0.025/share (C$2.4 M) payable Dec 30, 2025.
• NCIB repurchases: 1.0 M shares for C$1.9 M; program renewed.

• Total anticipated 2025 shareholder return ≥ C$21.6 M (≈10.5% annualized yield).

• Operations Update

• September production rebounded to ~3,800 boe/d; November estimate similar.
• Facility turnaround completed in Oct 2025; short‑term outage expected to depress Q4 output to 3,400‑3,500 boe/d.
• Marsden pilot project ongoing; no production response yet, but data collection continues.

• Fall drilling program encountered drilling challenges at a second oil‑bearing zone; alternatives under review.

• Guidance & Outlook

• Management expects WTI ≈ US$65/bbl in 2025 and anticipates AFF > $40 M at that price.
• Revised full‑year production guidance: 3,600‑3,700 boe/d (down from prior 3,900 boe/d).
• Plans to release 2026 guidance in January 2026.

Notable Quotes

• “Hemisphere is well positioned with a robust balance sheet to pursue potential acquisition opportunities while continuing to deliver shareholder returns.” – Don Simmons, President & CEO

All amounts are expressed in Canadian dollars unless otherwise noted.