Strathcona Resources Ltd. Reports Third Quarter 2025 Financial and Operating Results, Provides Special Distribution Update and Announces Quarterly Dividend

CALGARY, AB, Nov. 5, 2025 /PRNewswire/ – Strathcona Sources Ltd. (“Strathcona” or the “Firm”) (TSX:SCR) immediately reported its third quarter 2025 monetary and working outcomes and supplied an replace on the beforehand introduced particular distribution. The Board of Administrators additionally declared a quarterly dividend of $0.30 per widespread share.

Q3 2025 Highlights

• Manufacturing of 116,201 boe/d (99.6% liquids)⁽¹⁾⁽²⁾
• Working Earnings of $235.5 million ($1.10 / share)⁽¹⁾⁽³⁾
• Free Money Circulation of $93.8 million ($0.44 / share)⁽¹⁾⁽³⁾

 

Quarter Assessment and Close to-Time period Priorities

Strathcona’s third quarter manufacturing of 116 Mboe / d mirrored a 36% lower from the second quarter, primarily because of the closing of the Firm’s disposition of its Montney enterprise phase early in July 2025 (the “Montney Disposition”). Normalizing for the Montney Disposition, manufacturing from persevering with operations elevated 6% quarter-over-quarter, from 109 to 116 Mbbls / d. Starting within the third quarter, Strathcona has disaggregated its Lloydminster reporting phase into Lloydminster Thermal and Lloydminster Standard to raised replicate the distinctive working and monetary traits of every phase.

In Chilly Lake, manufacturing elevated 8% quarter-over-quarter to 61 Mbbls / d, pushed by the completion of a significant turnaround on the firm’s Tucker property in mid-July. Manufacturing additionally benefited from 4 new decrease drainage wells (“LDWs”) on the 105 and 108 pads at Orion which have been introduced on-line in late September. Early outcomes from the LDWs are encouraging, with present charges of roughly 900 bbls / d per properly, contributing to Orion attaining all-time excessive month-to-month manufacturing in October of roughly 25 Mbbls / d at a steam-oil-ratio of two.9x. Present capital exercise is targeting the 8 properly pair D01 West pad at Lindbergh, which is concentrating on first oil in mid-2026 and is anticipated to ramp to a peak fee of roughly 6,500 bbls / d, at a complete value of roughly $70 million.

In Lloydminster Thermal, manufacturing elevated 13% quarter-over-quarter to 32 Mbbls / d, pushed by continued robust efficiency on the Firm’s current growth at Meota West 2, exploiting the Basic Petroleum formation for the primary time. Capital exercise stays targeted on the Firm’s Meota Central thermal oil venture, which is at present 67% full, on schedule and on funds. With the completion of drilling operations early within the fourth quarter, the overwhelming majority of remaining venture expenditures are on fastened value, lump-sum contracts, meaningfully de-risking value overruns. Meota Central is concentrating on first oil within the fourth quarter of 2026 and is anticipated to ship a peak oil fee of roughly 13 Mbbls / d at a complete put in value of roughly $360 million.

In Lloydminster Standard, manufacturing was regular at roughly 22.5 Mbbls / d, in keeping with the prior quarter. Capital exercise has been targeted on Strathcona’s Bodo-Cosine polymer flood, the place the Firm has been executing on a 21 properly program since September.

Outlook

Strathcona’s 2026 capital funds of $1.0 billion and manufacturing steering of 115 – 125 Mbbls / d is unchanged. Strathcona expects to supply a complete replace to its 2026 steering and long-range plan following closing of the beforehand introduced acquisition of the Vawn thermal venture and undeveloped lands from Cenovus Power Inc. (“Cenovus”), at present anticipated for early December, following completion by Cenovus of its beforehand introduced acquisition of MEG Power Corp.

Particular Distribution Replace

On November 6, 2025, Strathcona will file and prepare for supply of the administration data round (the “Round”) and associated supplies for its particular assembly of Strathcona’s shareholders (the “Assembly”) at present scheduled to be held on November 27, 2025 at 9:00 a.m. (MST), on-line by way of reside audio webcast at https://conferences.lumiconnect.com/400-901-799-827. Shareholders of document as of the shut of enterprise on October 17, 2025, are entitled to obtain discover of and to vote on the Assembly.

The aim of the Assembly is to think about a particular decision to approve a statutory plan of association (the “Plan of Association”) that may entitle shareholders to obtain Strathcona’s beforehand introduced particular distribution of $10.00 per share, or roughly $2.142 billion within the mixture (the “Particular Distribution”), as a dividend or, at their election, a return of capital. The small print of the transaction can be described within the Round and associated supplies, together with an election type to be accomplished by registered shareholders wishing to obtain the Particular Distribution as a return of capital (as additional described beneath). Shareholders are strongly urged to learn these paperwork fastidiously, and to seek the advice of with their monetary, tax and authorized advisors prior to creating, or figuring out to not make, any election with respect to the Particular Distribution. These paperwork may also be obtainable underneath Strathcona’s profile on SEDAR+ at www.sedarplus.ca and on Strathcona’s web site at www.strathconaresources.com.

Making an Election for a Return of Capital

A registered shareholder might elect to obtain the Particular Distribution as a return of capital by depositing with Odyssey Belief Firm, previous to the election deadline (as additional described beneath), a duly accomplished and executed election type indicating such holder’s election and, within the case of a registered shareholder whose widespread shares are represented by a number of certificates, a duly accomplished and executed letter of transmittal, the certificates(s) representing such shareholder’s widespread shares and any such further paperwork and devices as Odyssey Belief Firm or Strathcona might fairly require.

Helpful shareholders who want to elect to obtain the Particular Distribution as a return of capital ought to comply with any directions supplied to them by their middleman (or ought to contact their middleman if they didn’t obtain any such directions). Helpful shareholders ought to notice that their intermediaries might have earlier deadlines for making an election. Accordingly, such shareholders are urged to contact their intermediaries promptly to study of the middleman’s relevant deadlines.

The deadline to make an election is at present scheduled as 5:00 p.m. (Calgary time) on December 16, 2025. The election deadline can be confirmed by press launch following the Assembly and is anticipated to be a minimum of 5 enterprise days following such affirmation and a minimum of three enterprise days previous to the efficient date of the Plan of Association. Shareholders are inspired to seek the advice of their brokers and monetary advisors concerning the implications of buying and selling widespread shares on or instantly previous to the election deadline.

Timing of Particular Distribution

If shareholder and court docket approval are obtained, Strathcona at present expects to impact the Particular Distribution on or about December 22, 2025 (the “Efficient Date”). As said above, the Particular Distribution is being accomplished as a Plan of Association and it’s not an odd course quarterly dividend. Strathcona’s widespread shares will commerce underneath its present CUSIP and ISIN numbers till the shut of enterprise on the Efficient Date, representing the entitlement of holders to the Particular Distribution. Commencing on the open of markets on the following buying and selling day, Strathcona’s widespread shares will commerce underneath a brand new CUSIP and ISIN, representing no entitlement to the Particular Distribution. Shareholders are inspired to seek the advice of their brokers and monetary advisors concerning the implications of buying and selling widespread shares on or instantly previous to the efficient date. Odyssey Belief Firm shall ship cost to every registered shareholder as quickly as practicable after the efficient date of the Particular Distribution.

Affect of Canada Put up Strike

Because of the ongoing Canada Put up labour strike, it’s attainable that shareholders might expertise a delay in receiving the Round and associated supplies, together with the election type, in respect of the Assembly. Shareholders are inspired to entry these paperwork electronically, as famous above. Registered shareholders experiencing a delay in receiving their paperwork might contact Odyssey Belief Firm at 1-888-290-1175 (inside North America) or 1-587-885-0960 (exterior North America) to acquire their particular person management numbers with a view to vote their shares. Registered shareholders are inspired to vote their shares (i) by way of e mail to proxy@odysseytrust.com or (ii) by way of the web at https://vote.odysseytrust.com. Helpful shareholders are inspired to vote their shares by way of the web at www.proxyvote.com or by way of phone at 1- 800-474-7493 (English) or 1-800-474-7501 (French). It is strongly recommended that any bodily types of proxy or voting instruction types be delivered by way of courier to make sure that they’re acquired in a well timed method. Besides as in any other case set forth within the directions to the election type, registered shareholders who want to make an election to obtain the Particular Distribution as a return of capital are inspired to finish and return their election type by e-mail at corp.actions@odysseytrust.com the place attainable.

Quarterly Dividend

Strathcona’s board of administrators has declared a quarterly dividend of $0.30 per share to be paid on December 15, 2025 to shareholders of document on December 5, 2025. Funds to shareholders who are usually not residents of Canada can be web of any Canadian withholding taxes that could be relevant. Dividends paid by Strathcona are thought of “eligible dividends” for Canadian tax functions.

Convention Name Particulars

Strathcona will host a convention name on November 6, 2025, beginning at 8:00AM MT (10:00AM ET), to overview the Firm’s third quarter 2025 outcomes.

Date: Thursday, November 6, 2025

Time: 10:00AM ET (8:00AM MT) 

URL Entry: To hitch with out operator help, register right here as much as quarter-hour earlier than the beginning time. Enter your identify and cellphone quantity to obtain an automatic call-back. 

Phone Entry: Alternatively, you possibly can be part of with operator help by dialing 1 (888) 510-2154 (North American Toll Free) and quote convention ID 37446.    

Webcast Hyperlink: https://app.webinar.web/WX2ODaeD5P3

For these unable to take part within the convention name on the scheduled time, a recording of the convention name can be obtainable for seven days following the decision and will be accessed by dialing 1 (888) 660-6345 and getting into the convention quantity 37446.

About Strathcona

Strathcona is considered one of North America’s quickest rising pure play heavy oil producers with operations targeted on thermal oil and enhanced oil restoration. Strathcona is constructed on an progressive strategy to progress achieved via the consolidation and growth of long-life belongings. Strathcona’s widespread shares (image SCR) are listed on the Toronto Inventory Trade (TSX).

For extra details about Strathcona, go to www.strathconaresources.com.

Non-GAAP Measures and Ratios

The monetary outcomes for the three and 9 months ended September 30, 2025 and September 30, 2024, are offered beneath to reconcile persevering with and discontinued operations to whole outcomes. Complete ends in a non-GAAP measure utilized by Administration to evaluate the historic monetary efficiency of the full enterprise and isn’t meant to be indicative of future outcomes.

 

“Oil and pure gasoline gross sales, web of mixing and different earnings” is calculated by deducting bought product and mixing prices from oil and pure gasoline gross sales, gross sales of bought product, midstream income and different earnings. Administration makes use of this metric to isolate the income related to the Firm’s manufacturing after accounting for the unavoidable value of mixing.

Oil and pure gasoline gross sales, web of mixing, can be mirrored on a per boe foundation calculated utilizing gross sales volumes.

“Efficient royalty fee” is calculated by dividing royalties by oil and pure gasoline gross sales and sale of bought product, web of mixing prices and bought product. This metric permits administration to research the motion of royalty bills in relation to realized and benchmark commodity costs.

“Working Earnings – Discontinued” is taken into account a key monetary metric for evaluating the profitability of Strathcona’s discontinued operations. “Working Earnings – Persevering with” is a GAAP monetary measure as it’s utilized by the Chief Working Resolution Makers to judge revenue or loss and is offered within the condensed consolidated interim monetary statements for the three and 9 months ended September 30, 2025 and 2024. A quantitative reconciliation of Working Earnings – Discontinued to probably the most instantly comparable GAAP monetary measure, Oil and pure gasoline gross sales, is offered beneath.

“Funds from Operations” is utilized by administration to research working efficiency and supplies a sign of the funds generated by Strathcona’s principal enterprise to both fund working actions, re-invest to both preserve or develop the enterprise or make debt repayments. Funds from Operations is derived from Working Earnings and adjusted for DD&A, finance prices, beneficial properties and losses on threat administration contracts – realized and beneficial properties and losses on overseas trade – realized.

“Free Money Circulation” signifies funds obtainable for deleveraging, funding future progress, or shareholder returns. Free Money Circulation is derived from Working Earnings and adjusted for DD&A, finance prices, beneficial properties and losses on threat administration contracts – realized, beneficial properties and losses on overseas trade – realized, capital expenditures and decommissioning prices.

Quantitative reconciliations of Funds from Operations and Free Money Circulation for each persevering with and discontinued operations to probably the most instantly comparable GAAP monetary measure, Working Earnings, are set forth beneath.

 

The next desk reconciles working earnings, funds from operations and free money stream from persevering with and discontinued operations:

Supplementary Monetary Measures

“Curiosity and finance prices” is an aggregation of curiosity and finance prices. Administration makes use of this metric to acquire a fulsome understanding of all curiosity and accretion prices the Firm is topic to.

“Different objects” is an aggregation of threat administration contracts, overseas trade, transaction associated prices, unrealized (achieve) on Sable remediation fund, (achieve) on sale of belongings, loss on settlement of different obligations, and deferred tax expense from each persevering with and discontinued operations. They’re offered in such a way to yield prominence to key monetary metrics similar to earnings and complete earnings, Funds from Operations and Free Money Circulation.

“Non-cash objects” is an aggregation of depletion, depreciation and amortization, finance prices, and different earnings – decommissioning authorities grant.

“Debt, web of money and marketable securities” is comprised of debt much less money and marketable securities, as derived underneath the Accounting Requirements.

Presentation of Oil and Gasoline Data

This press launch accommodates varied references to the abbreviation “boe” which implies barrels of oil equal. All boe conversions on this press launch are derived by changing gasoline to grease on the ratio of six thousand cubic toes (“mcf”) of pure gasoline to 1 barrel (“bbl”) of crude oil. Boe could also be deceptive, notably if utilized in isolation. A boe conversion fee of 1 bbl : 6 mcf relies on an power equivalency conversion technique primarily relevant on the burner tip and doesn’t signify a price equivalency on the wellhead. Provided that the worth ratio of oil in comparison with pure gasoline based mostly on at present prevailing costs is considerably totally different than the power equivalency ratio of 1 bbl : 6 mcf, using a conversion ratio of 1 bbl : 6 mcf could also be deceptive as a sign of worth.

References on this press launch to preliminary manufacturing charges and different short-term manufacturing charges and check outcomes are helpful in confirming the presence of hydrocarbons, nevertheless, such charges are usually not determinative of the charges at which such wells will begin manufacturing and decline thereafter and are usually not indicative of long-term efficiency or of final restoration. Whereas encouraging, readers are cautioned to not place reliance on such charges in calculating mixture manufacturing for the Firm or the belongings for which such charges are supplied. A strain transient evaluation or well-test interpretation has not been carried out in respect of all wells. Accordingly, the check outcomes must be thought of to be preliminary.

Product Sort Manufacturing Data

The Firm’s quarterly and year-to-date common every day manufacturing volumes, and the references to “pure gasoline”, “crude oil” and “condensate”, reported on this press launch include the next product varieties, as outlined in NI 51-101 and utilizing a conversion ratio of 6 mcf : 1 bbl the place relevant:

Ahead-Wanting Data

Sure statements contained on this press launch represent forward-looking data inside the which means of relevant securities legal guidelines. The forward-looking data on this press launch relies on Strathcona’s present inner expectations, estimates, projections, assumptions and beliefs. Such forward-looking data shouldn’t be a assure of future efficiency and includes recognized and unknown dangers, uncertainties and different elements that will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking data. The Firm believes the fabric elements, expectations and assumptions mirrored within the forward-looking data are affordable as of the time of such data, however no assurance will be on condition that these elements, expectations and assumptions will show to be appropriate, and such forward-looking data included on this press launch shouldn’t be unduly relied upon.

The usage of any of the phrases “count on”, “goal”, “anticipate”, “intend”, “estimate”, “goal”, “ongoing”, “might”, “will”, “venture”, “consider”, “relies upon”, “might” and related expressions are meant to determine forward-looking data. Particularly, however with out limiting the generality of the foregoing, this press launch accommodates forward-looking data pertaining to the next: the Firm’s enterprise technique and future plans; the expectation that the 8 properly pair D01 West pad at Lindbergh will ramp to a peak fee of roughly 6,500 bbls / d starting in mid-2026, at a complete value of roughly $71 million; the expectation that the Meota Central venture will obtain first oil within the fourth quarter of 2026 and ship a peak oil fee of roughly 13 Mbbls / d at a complete put in value of roughly $360 million; our 2026 outlook together with our anticipated capital funds of $1.0 billion and manufacturing steering of 115 – 125 Mbbls / d; the anticipated timing of updates to our 2026 steering and long-range plan; the anticipated timing of completion of our acquisition of the Vawn thermal venture and undeveloped lands from Cenovus; the anticipated timing for submitting and supply of the Round; the anticipated timing of the Particular Distribution and all deadlines in respect thereof.

All forward-looking data displays Strathcona’s beliefs and assumptions based mostly on data obtainable on the time the relevant forward-looking data is disclosed and in gentle of the Firm’s present expectations with respect to things like: Strathcona’s potential to generate adequate money stream to fund debt compensation and dividend funds; Strathcona’s potential to declare and pay dividends; the success of Strathcona’s operations and progress and growth initiatives; expectations concerning manufacturing progress, future properly manufacturing charges and reserve volumes; expectations concerning Strathcona’s capital program, together with the outlook for basic financial traits, business traits, prevailing and future commodity costs, overseas trade charges and rates of interest; the flexibility of Strathcona to pursue, full and fund the Particular Distribution, together with the anticipated sources of funding therefor and the anticipated impression thereof on Strathcona’s monetary place; the flexibility of Strathcona to acquire all approvals required to finish the Particular Distribution in a well timed method and on the timeline set forth on this press launch; the completion of Cenovus’ beforehand introduced acquisition of MEG Power Corp.; the supply of third occasion companies; prevailing and future royalty regimes and tax legal guidelines; future properly manufacturing charges and reserve volumes; fluctuations in power costs based mostly on worldwide demand and geopolitical occasions; expectations concerning the impression of tariffs on Strathcona’s operations and its potential to successfully mitigate the impression thereof; the impression of inflation; the integrity and reliability of Strathcona’s belongings; decommissioning obligations; Strathcona’s potential to adjust to its monetary covenants; and the governmental, regulatory and authorized surroundings. Administration believes that its assumptions and expectations mirrored within the forward-looking data contained herein are affordable based mostly on the knowledge obtainable on the date such data is supplied and the method used to arrange the knowledge. Nevertheless, it can’t guarantee readers that these expectations will show to be appropriate.

The forward-looking data included on this press launch shouldn’t be a assure of future efficiency and includes recognized and unknown dangers, uncertainties and different elements that will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking data, together with, with out limitation: modifications in commodity costs; modifications within the demand for or provide of Strathcona’s merchandise; the lack of Strathcona to obtain the approvals required to finish the Particular Distribution, in a well timed method or in any respect; the continued impression, or additional deterioration, in international financial and market situations, together with from inflation and/or sure geopolitical conflicts, similar to the continuing Russia/Ukraine battle and the battle within the Center East, and different heightened geopolitical dangers, together with the imposition of tariffs or different commerce boundaries, and the flexibility of the Firm to hold on operations as contemplated in gentle of the foregoing; determinations by the Group of the Petroleum Exporting International locations and different international locations as to manufacturing ranges; unanticipated working outcomes or manufacturing declines; modifications in tax or environmental legal guidelines, local weather change, royalty charges or different regulatory issues; modifications in Strathcona’s growth plans or by third occasion operators of Strathcona’s properties; competitors from different producers; incapability to retain drilling rigs and different companies; failure to comprehend the anticipated advantages of the Firm’s acquisitions; incorrect evaluation of the worth of acquisitions; delays ensuing from or incapability to acquire required regulatory approvals; elevated debt ranges or debt service necessities; inflation; modifications in overseas trade charges; inaccurate estimation of Strathcona’s oil and gasoline reserve and contingent useful resource volumes; restricted, unfavourable or a scarcity of entry to capital markets or different sources of capital; elevated prices; a scarcity of ample insurance coverage protection; the impression of opponents; and the opposite elements mentioned underneath the “Danger Elements” part in Strathcona’s Administration’s Dialogue & Evaluation and Annual Data Type, every for the yr ended December 31, 2024, and every so often in Strathcona’s public disclosure paperwork, which can be found at www.sedarplus.ca.

Declaration of dividends is on the sole discretion of the board of administrators of Strathcona and can proceed to be evaluated on an ongoing foundation. There are dangers that will end in Strathcona altering, suspending or discontinuing its quarterly dividends, together with modifications to its free money stream, working outcomes, capital necessities, monetary place, debt ranges, market situations or company technique and the necessity to adjust to necessities underneath its credit score settlement and relevant legal guidelines respecting the declaration and cost of dividends. There aren’t any assurances as to the persevering with declaration and cost of future dividends or the quantity or timing of any such dividends.

Administration authorised the capital funds and manufacturing steering contained herein as of the date of this press launch. The aim of the capital funds and manufacturing steering is to help readers in understanding Strathcona’s anticipated and focused monetary place and efficiency, and this data might not be applicable for different functions.

This earnings launch accommodates data that will represent future-oriented monetary data or monetary outlook data (collectively, “FOFI”) about Strathcona’s potential monetary efficiency, monetary place or money flows, all of which is topic to the identical assumptions, threat elements, limitations and {qualifications} as set forth above. Readers are cautioned that the assumptions used within the preparation of such data, though thought of affordable on the time of preparation, might show to be imprecise or inaccurate and, as such, undue reliance shouldn’t be positioned on FOFI. Strathcona’s precise outcomes, efficiency and achievements might differ materially from these expressed in, or implied by, FOFI. Strathcona has included FOFI with a view to present readers with a extra full perspective on Strathcona’s future operations and administration’s present expectations referring to Strathcona’s future efficiency. Readers are cautioned that such data might not be applicable for different functions.

The foregoing dangers shouldn’t be construed as exhaustive. The forward-looking data contained on this press launch speaks solely as of the date of this press launch and Strathcona doesn’t assume any obligation to publicly replace or revise such forward-looking data to replicate new occasions or circumstances, besides as could also be required pursuant to relevant legal guidelines. Any forward-looking data contained herein is expressly certified by this cautionary assertion.

SOURCE Strathcona Sources Ltd.