Hemisphere Energy Declares Special Dividend and Announces 2025 Year-end Reserves
Executive Summary
- Hemisphere Energy’s Board approved a special dividend of $0.03 per common share, payable April 28, 2026 (in addition to the regular quarterly dividend).
- The company released its independent 2025 reserve evaluation showing NPV10 BT of $212 M for PDP reserves and $316 M for 2P reserves, with NAV per fully diluted share ranging from $2.31 to $3.35.
- Production in early 2026 is approximately 3,800 boe/d (99% heavy oil), with a 6% annual production growth achieved on a $16 M capital program in 2025.
Key Details
- Special Dividend
- $0.03 per common share, payable 28‑Apr‑2026 to shareholders of record 15‑Apr‑2026.
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Designated as an eligible dividend for Canadian tax purposes; adds to the quarterly base dividend of $0.025 per share.
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2025 Capital & Working Capital
- Measured capital expenditures: $16 M (2025).
- Year‑end working capital: >$8.5 M.
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Total shareholder returns in 2025: $21.8 M via base dividends, two special dividends, and NCIB share buyback.
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Production Profile
- Current corporate production: ≈3,800 boe/d (99% heavy oil) – data from Jan‑Feb 2026.
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Annual production growth in 2025: +6%.
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Reserve Highlights (effective 31‑Dec‑2025)
- Proved Developed Producing (PDP)
- NPV10 BT: $212 M ($2.24 per basic share).
- Reserve volume: 9.3 MMboe (99.7% heavy crude).
- Replacement ratio: 101% of 2025 production.
- RLI: 7.0 years, NAV: $2.31 per fully diluted share.
- Proved (1P)
- NPV10 BT: $252 M ($2.67 per basic share).
- Reserve volume: 11.8 MMboe.
- Replacement ratio: 128%, RLI: 8.9 years, NAV: $2.71.
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Proved + Probable (2P)
- NPV10 BT: $316 M ($3.35 per basic share).
- Reserve volume: 15.2 MMboe.
- Replacement ratio: 149%, RLI: 11.4 years, NAV: $3.35.
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Pricing Assumptions
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Based on 3‑Consultant Average Price Forecast (Jan 1 2026):
- WTI $68.12/bbl, WCS Cdn$74.29/bbl.
- Forecast shows WCS price down ~23% in 2026 vs prior year.
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Future Development Costs (FDC) – Discounted at 10%
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1P total discounted cost: $31.7 M; 2P total discounted cost: $43.4 M.
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Abandonment, Decommissioning & Reclamation (ADR)
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Estimated undiscounted ADR: $7.9 M (incl. active/inactive wells, pipelines, facilities).
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Net Asset Value (NAV) – Fully Diluted
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PDP NAV per share: $2.31, 1P: $2.71, 2P: $3.35.
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Reserve Summary Tables
- Total gross reserves: 15,185 MMboe (11,780 MMboe proved + 3,405 MMboe probable).
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NPV BT at 0%, 5% and 10% discount rates provided for each reserve category.
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Additional Notes
- All reserve figures are gross (pre‑royalty) and include corporate ADR.
- The Reserve Report will be incorporated into Hemisphere’s Annual Information Form due by 30‑Apr‑2026 on SEDAR+.
Notable Quotes
- Don Simmons, President & CEO: “The special dividend reflects our strong balance sheet and confidence in continued cash flow generation as we deliver value‑per‑share growth through disciplined capital investment and robust reserve replacement.”