CALGARY, AB, March 5, 2026 /CNW/ – Headwater Exploration Inc. (the “Company” or “Headwater“) (TSX:HWX) announces its operating and financial results for the three months and year ended December 31, 2025. Selected financial and operational information is outlined below and should be read in conjunction with the audited financial statements and the related management’s discussion and analysis (“MD&A”). In addition, readers are also directed to the Company’s Annual Information Form for the year ended December 31, 2025, dated March 5, 2026. These filings will be available on SEDAR+ at www.sedarplus.ca and the Company’s website at www.headwaterexp.com.
Financial and Operating Highlights
|
Three months ended December 31, |
Percent Change |
Year ended December 31, |
Percent Change |
||||
|
2025 |
2024 |
2025 |
2024 |
||||
|
Financial (thousands of dollars except per share and production data) |
|||||||
|
Total sales, net of blending expense (1) (4) |
145,308 |
156,475 |
(7) |
593,815 |
592,638 |
– |
|
|
Adjusted funds flow from operations (2) |
79,254 |
87,903 |
(10) |
326,225 |
336,557 |
(3) |
|
|
Per share – basic (3) |
0.33 |
0.37 |
(11) |
1.37 |
1.42 |
(4) |
|
|
– diluted (3) |
0.33 |
0.37 |
(11) |
1.36 |
1.42 |
(4) |
|
|
Cash flows provided by operating activities |
72,668 |
76,016 |
(4) |
297,137 |
316,737 |
(6) |
|
|
Per share – basic |
0.31 |
0.32 |
(3) |
1.25 |
1.34 |
(7) |
|
|
– diluted |
0.30 |
0.32 |
(6) |
1.24 |
1.34 |
(7) |
|
|
Net income |
29,311 |
48,907 |
(40) |
153,207 |
188,028 |
(19) |
|
|
Per share – basic |
0.12 |
0.21 |
(43) |
0.64 |
0.80 |
(20) |
|
|
– diluted |
0.12 |
0.21 |
(43) |
0.64 |
0.80 |
(20) |
|
|
Capital expenditures (1) |
46,066 |
48,686 |
(5) |
228,288 |
222,866 |
2 |
|
|
Adjusted working capital (2) |
23,581 |
67,578 |
(65) |
||||
|
Shareholders’ equity |
748,155 |
699,459 |
7 |
||||
|
Dividends declared |
26,154 |
23,776 |
10 |
104,728 |
95,037 |
10 |
|
|
Per share |
0.11 |
0.10 |
10 |
0.44 |
0.40 |
10 |
|
|
Weighted average shares (thousands) |
|||||||
|
Basic |
238,142 |
237,512 |
– |
237,877 |
236,386 |
1 |
|
|
Diluted |
240,647 |
237,569 |
1 |
239,882 |
236,447 |
1 |
|
|
Shares outstanding, end of period (thousands) |
|||||||
|
Basic |
237,763 |
237,757 |
– |
||||
|
Diluted (5) |
237,763 |
237,934 |
– |
||||
|
Operating (6:1 boe conversion) |
|||||||
|
Average daily production |
|||||||
|
Heavy crude oil (bbls/d) |
22,091 |
20,304 |
9 |
20,707 |
19,095 |
8 |
|
|
Natural gas (mmcf/d) |
12.1 |
7.2 |
68 |
11.5 |
6.9 |
67 |
|
|
Natural gas liquids (bbls/d) |
143 |
51 |
180 |
160 |
67 |
139 |
|
|
Barrels of oil equivalent (9) (boe/d) |
24,259 |
21,559 |
13 |
22,776 |
20,310 |
12 |
|
|
Average daily sales (6) (boe/d) |
24,166 |
21,543 |
12 |
22,758 |
20,275 |
12 |
|
|
Netbacks ($/boe) (3) (7) |
|||||||
|
Operating |
|||||||
|
Sales, net of blending expense (4) |
65.35 |
78.95 |
(17) |
71.50 |
79.86 |
(10) |
|
|
Royalties |
(10.29) |
(13.81) |
(25) |
(12.52) |
(14.60) |
(14) |
|
|
Transportation |
(5.59) |
(5.26) |
6 |
(5.59) |
(5.51) |
1 |
|
|
Production |
(7.21) |
(7.64) |
(6) |
(7.39) |
(7.35) |
1 |
|
|
Operating netback (3) |
42.26 |
52.24 |
(19) |
46.00 |
52.40 |
(12) |
|
|
Realized gains (losses) on financial derivatives |
(1.12) |
(0.35) |
220 |
(0.78) |
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