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Hemisphere Energy declares three-cent special dividend

HME · Price
Executive Summary
- Hemisphere Energy Corp. declared a special dividend of $0.03 per common share, payable on April 28, 2026, in addition to its existing quarterly base dividend of $0.025 per share.
- The company released its 2025 year-end independent reserves evaluation by McDaniel & Associates, highlighting strong organic replacement rates and significant reserve values across 1P, 2P, and PDP categories.
- The release includes detailed financial metrics, including Net Asset Value (NAV) per share, Net Present Value (NPV10 BT), and Reserve Life Index (RLI), alongside updated commodity price forecasts reflecting a decline in WCS pricing.
Key Details
- Special Dividend:
- Amount: $0.03 per common share.
- Payment Date: April 28, 2026.
- Record Date: April 15, 2026.
- Designation: Eligible dividend for Canadian income tax purposes.
- Context: In addition to the quarterly base dividend of $0.025 per share.
- 2025 Operational Highlights:
- Capital Expenditures: $16 million executed in 2025.
- Production Growth: 6% annual growth.
- Working Capital: Over $8.5 million at year-end.
- Shareholder Returns: $21.8 million returned via base dividends, two special dividends, and NCIB buybacks.
- Current Corporate Production: ~3,800 boe/d (99% heavy oil), based on Jan 1, 2026, to Feb 28, 2026 estimates.
- Pricing Assumptions (Jan 1, 2026 Forecast):
- WTI Price (5-year avg 2026-2030): $68.12 USD/bbl.
- WCS Price: $74.29 CAD/bbl.
- WCS Outlook: Down ~23% in 2026, ~16% in 2027, and ~10% over the subsequent 15-year period compared to the prior year.
- Corporate Discount: Historically averages ~$4.40 discount to WCS pricing.
- Proved Developed Producing (PDP) Reserves:
- NPV10 BT: $212 million ($2.24 per basic share).
- Reserve Volumes: 9.3 mmboe (99.7% heavy crude oil).
- Replacement Rate: 101% of 2025 production via organic development.
- Reserve Life Index (RLI): 7.0 years.
- NAV: $2.31 per fully diluted share.
- Proved (1P) Reserves:
- NPV10 BT: $252 million ($2.67 per basic share).
- Reserve Volumes: 11.8 mmboe (99.7% heavy crude oil).
- Replacement Rate: 128% of 2025 production via organic development.
- Reserve Life Index (RLI): 8.9 years.
- NAV: $2.71 per fully diluted share.
- Proved Plus Probable (2P) Reserves:
- NPV10 BT: $316 million ($3.35 per basic share).
- Reserve Volumes: 15.2 mmboe (99.7% heavy crude oil).
- Replacement Rate: 149% of 2025 production via organic development.
- Reserve Life Index (RLI): 11.4 years.
- NAV: $3.35 per fully diluted share.
- Abandonment, Decommissioning, and Reclamation (ADR) Costs:
- Total Undiscounted/Uninflated ADR: $7.9 million.
- NPV10 BT of ADR: $2.1 million (costs inflated at 2% per year).
- Scope: Includes all ADR for active/inactive wells, pipelines, and facilities, regardless of attributed reserves.
- Regulatory Filing:
- Annual Information Form (AIF) to be filed on SEDAR+ on or before April 30, 2026.
- Evaluation prepared by McDaniel & Associates Consultants Ltd., effective Dec 31, 2025, dated March 10, 2026.
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