Strathcona Resources Ltd. Reports Fourth Quarter and Full Year 2025 Financial and Operating Results, Year End Reserves, Announces Quarterly Dividend and Board Approval to Commence Normal Course Issuer Bid

Executive Summary

• Strathcona Resources reported FY 2025 operating earnings of $930 M ($4.34/share) and free cash flow of $364 M ($1.70/share), with Q4 2025 operating earnings of $146 M ($0.68/share).
• The Board declared a quarterly dividend of $0.30 per common share (payable 27 Mar 2026) and approved a normal‑course issuer bid to repurchase up to 5% of outstanding shares (~10.7 M shares).
• Completed acquisition of a 50% working interest in the Selina Project for $23 M cash, bringing total ownership to 100% and operatorship; announced ongoing capital projects (Meota Central, Vawn, Cold Lake LDWs) with 2026 production guidance of 120‑130 Mbbl/d.

Key Details

• Financial Highlights – FY 2025
• Production: 152,163 boe/d (86% liquids).
• Operating earnings: $930 M ($4.34/share).
• Free cash flow: $364 M ($1.70/share).

• Net debt (end‑2025): $2.095 B.

• Q4 2025 Highlights

• Production: 117,715 boe/d (100% liquids).
• Operating earnings: $146 M ($0.68/share).

• Free cash flow: $53 M ($0.25/share).

• Reserves – Year‑end 2025

• Proved Developed Producing (PDP) reserves: 241 MMboe.
• 1P reserves: 1,226 MMboe; 2P reserves: 2,166 MMboe.
• PDP recycle ratio (including capital): 1.8× (excluding $400 M capex on Meota Central & Cold Lake: 3.1×).

• Organic 2P replacement: 297%; Reserves life index: 51 years (2P).

• Dividend

• Quarterly dividend of $0.30 per share, payable 27 Mar 2026 to shareholders of record 20 Mar 2026.

• Share Repurchase (NCIB)

• Board authorized filing for a normal‑course issuer bid to repurchase up to 5% of issued shares (≈10.7 M shares) over the next twelve months, subject to TSX approval.

• Selina Project Acquisition

• Purchased remaining 50% working interest for $23 M cash; total ownership now 100%; operatorship transferred to Strathcona.
• Approved production capacity: 12,500 bbl/d (AER‑approved).

• Estimated recoverable oil: ~160 MMbbl (not previously booked in reserves).

• Capital Projects & Outlook

• Meota Central project: 85% complete; first oil targeted Q4 2026; peak rate ≈13 Mbbl/d; total capex $360 M.
• Cold Lake LDWs: recent ramp‑up delivering >750 bbl/d per well; D01 West pad (8‑well pair) steaming early 2026, target peak ≈6,500 bbl/d.
• Vawn thermal project integrated with Edam operations; aim to exceed historic 5 Mbbl/d production by year‑end 2026.

• 2026 guidance: production 120–130 Mbbl/d; capital budget $1.0 B (unchanged).

• Financial Ratios & Metrics

• PDP F&D cost (including organic capex): $21.24/boe (overall); $12.25/boe excluding $400 M non‑PDP capex.

• After‑tax PV‑10 per share: $32.05 (1P) and $49.46 (2P).

• Risk & Forward‑Looking Statements

• Company highlighted exposure to commodity price volatility, regulatory approvals for NCIB, and execution risk on capital projects.

Notable Quotes

“Our strong operating earnings and free cash flow underscore the resilience of our portfolio and provide a solid foundation for returning value to shareholders through dividends and share repurchases while we continue to invest in high‑impact growth projects.” – CEO (paraphrased from shareholder letter)