HIGHWOOD ASSET MANAGEMENT LTD. ANNOUNCES THIRD QUARTER 2025 RESULTS AND OPERATIONAL UPDATE

/ NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/

CALGARY, AB, Nov. 14, 2025/ CNW/ – Highwood Possession Management Ltd. (“ Highwood” or the “ Business“) (TSXV: HAM) is happy to reveal monetary and operating outcomes for the 3 and 9 months ended September 30, 2025 The Business likewise reveals that its unaudited monetary declarations and associated Management’s Conversation and Analysis (“ MD&A“) for the duration ended September 30, 2025, are offered on Highwood’s site at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca.

Emphasizes

• Typical business production of 5,253 boe/d in Q3 2025, representing a reduction of roughly 6% from the 2nd quarter of 2025 (average of 5,632 boe/d).
• For the 3rd quarter of 2025, Highwood provided Adjusted EBITDA of $ 13.6 million ($ 0.89 per share) and changed funds circulation of $ 11.9 million ($ 0.79 per share).^{( 1 )}
• Highwood released a various conclusion approach on the 100/13 -15 -048 -14 W5 (the ” 13-15 well”) in the Basal sand at Brazeau which was spud late in the 2nd quarter. This made use of a jet pump which led to the well tidying up roughly 6 weeks much faster than previous Basal sand wells in the Brazeau location. The Business is motivated by the outcomes and will want to release this strategy on future Basal sand drills in Brazeau.
• Subsequent to September 30, 2025, the Business went back to Wilson Creek to finish its organized 2025 capital program by drilling 2 gross (1.8 web) reserved areas in the 4th quarter of 2025. Both wells were drilled at or under budget plan, where tank direct exposure through the horizontal areas surpassed expectations. The 2 Wilson Creek Stomach River wells will be finished in December and on production in early 2026. Market activity in the Stomach River continues to increase with continued strong arise from peers.
• Highwood’s hedging program assists alleviate the volatility in product prices with roughly 2,067 bbls/day of oil hedged through the rest of 2025 at a typical agreement cost of roughly $ 95 75CAD/ bbl (WTI-NYMEX) and 2,050 bbls/day of oil hedged in 2026 at a typical agreement cost of roughly $ 93 00CAD/ bbl (WTI-NYMEX). Even more, for the rest of 2025 the Business has roughly 6,300 GJ/day of gas hedged at a typical agreement cost of roughly $ 3.18/ GJ (AECO) and 6,600 GJ/day of gas hedged in 2026 at a typical agreement cost of roughly $ 3.17/ GJ (AECO). The Business had actually a recognized gain on product agreements of $ 2.4 million throughout the 3rd quarter of 2025, and the marketplace worth of Highwood’s product agreements was roughly $ 8 million at November 13, 2025
• The Business is concentrated on decreasing Net Financial obligation/ EBITDA to increase versatility for the Business moving on. At September 30, 2025, Highwood had roughly $ 325 million in tax swimming pools, consisting of roughly $ 100 million in non-capital losses. Highwood does not expect being money taxable for roughly 2 to 3 years.

Notes to Emphasizes:

Summary of Financial & & Operating Outcomes

Functional Update

Due to the decrease in product costs and concentrate on decreasing utilize to make the most of versatility, Highwood just recently lowered the 2025 capital program by roughly 1 gross (0.7 web) well. The Business drilled 2 gross wells (1.8 web) reserved areas in Wilson Creek in the 4th quarter 2025, concluding the 2025 capital program. These wells are anticipated to come online in the very first quarter of 2026. Market activity continues to increase within the Stomach River at Wilson Creek with numerous active operators balancing out Highwood’s lands. Highwood’s outcomes at Wilson Creek have actually been strong and constant with typical payments of under 12 months on the 8 gross (7.7 web) ran wells drilled to date within the Stomach River. Due to the hold-up and decrease in the rest of the 2025 capital program, unintended 3rd party interruptions in the 3rd quarter of 2025, and underperformance of the Q1 2025 capital program, the Business is repeating its upgraded 2025 yearly assistance of roughly 5,200-5,400 boe/d (roughly 70% oil and liquids).

Outlook

The main focus in the near-term is decreasing utilize while continuing to concentrate on investor returns. Corporately, the Business is committed to growing Free Capital, on a per share basis, while utilizing sensible utilize to offer optimal versatility for natural development and/or other tactical M&A chances, with a longer-term objective to offer substantial return of capital to investors. The Business will continue to evaluate and evaluate chances which are accretive to the Business as Highwood looks for to grow its operations. The Business will likewise continue to evaluate land offerings in tactical locations where the Business sees substantial development chances.

Other

The Business has actually approved roughly 136 thousand worth of Efficiency Share Systems (“ PSUs“) to Officers of the Business, reliable November 14, 2025, vesting on the 3rd anniversary of the date of grant. The Business has actually approved 20 thousand Deferred Share Systems (“ DSUs“) to non-management directors, reliable November 14, 2025, vesting on the very first anniversary of the date of grant.

ADVISORIES

Forward-Looking Info

Particular details consisted of in journalism release might make up positive declarations and details (jointly, “positive declarations”) within the significance of suitable securities legislation that include understood and unidentified dangers, presumptions, unpredictabilities and other elements. Positive declarations might be determined by words like “expects”, “price quotes”, “anticipates”, “suggests”, “means”, “might”, “might” “ought to”, “would”, “strategies”, “target”, “set up”, “jobs”, “outlook”, “proposed”, “possible”, “will”, “look for” and comparable expressions. Positive declarations in this news release consist of declarations concerning, to name a few things: prepares to continue the Business’s active capital program while product costs stay strong; Highwood’s service, method, goals, strengths and focus; the Business’s drilling strategies and expectations; and the efficiency and other attributes of the Business’s residential or commercial properties and anticipated arise from its possessions. Such declarations show the existing views of management of the Business with regard to future occasions and go through specific dangers, unpredictabilities and presumptions that might trigger outcomes to vary materially from those revealed in the positive declarations. With regard to positive declarations consisted of in this news release, the Business has actually made presumptions concerning, to name a few things: that product costs will follow the existing projections of its engineers; field netbacks; the precision of reserves price quotes; typical production rates; expenses to drill, total and tie-in wells; supreme healing of reserves; that royalty routines will not go through material adjustment; future exchange and rate of interest; supply of and need for products; inflation; the schedule of capital on satisfying terms; the schedule and cost of labour and products; the effect of increasing competitors; conditions in basic financial and monetary markets; that the Business will have the ability to gain access to capital, consisting of financial obligation, on appropriate terms; the invoice and timing of regulative, exchange and other needed approvals; the capability of the Business to execute its service methods and total future acquisitions; the Business’s long term service method; and impacts of guideline by governmental firms.

Elements that might trigger real outcomes to differ from positive declarations or might impact the operations, efficiency, advancement and outcomes of the Business’s services consist of, to name a few things: presumptions worrying functional dependability; dangers intrinsic in the Business’s future operations; the Business’s capability to create enough capital from operations to satisfy its future responsibilities; boosts in upkeep, running or funding expenses; the awareness of the awaited advantages of future acquisitions, if any; the schedule and cost of labour, devices and products; competitive elements, consisting of competitors from 3rd parties in the locations in which the Business means to run, pricing pressures and supply and need in the oil and gas market; changes in currency and rate of interest; inflation; dangers of war, hostilities, civil insurrection, pandemics, political and financial instability overseas and its impact on product prices and the oil and gas market (consisting of continuous military actions in between Russia and Ukraine and the crisis in Israel and Gaza); serious climate condition and dangers connected to environment modification, such as fire, dry spell and flooding; terrorist risks; dangers related to innovation; modifications in laws and policies, consisting of ecological, regulative and tax laws, and the analysis of such modifications to the management group’s future service; schedule of appropriate levels of insurance coverage; problem in acquiring required regulative approvals and the upkeep of such approvals; basic financial and service conditions and markets; and such other comparable dangers and unpredictabilities. The effect of any one presumption, danger, unpredictability or other aspect on a positive declaration can not be figured out with certainty, as these are synergistic and the Business’s future strategy depends upon the evaluation of all details offered at the appropriate time. For extra danger elements connecting to Highwood, please describe the Business’s yearly details type and management conversation and analysis for the year ended December 31, 2024, in addition to the Business’s management conversation and analysis for the duration ended September 30, 2025, which are offered on the Business’s SEDAR+ profile at www.sedarplus.ca The positive declarations consisted of in this news release are made as of the date hereof and the celebrations do not carry out any commitment to upgrade or modify any positive declarations or details, whether as an outcome of brand-new details, future occasions or otherwise, unless so needed by suitable securities laws.

Short-term Outcomes. Recommendations in this news release to production test rates, preliminary test production rates, 7-day preliminary production rates, 30-day preliminary production rates and other short-term production rates that work in validating the existence of hydrocarbons; nevertheless, such rates are not determinative of the rates at which such wells will start production and decrease afterwards and are not a sign of long term efficiency or of supreme healing. While motivating, readers are warned not to position dependence on such rates in determining the aggregate production for Highwood. A pressure short-term analysis or well-test analysis has actually not been performed in regard of all wells. Appropriately, the Business warns that the test results ought to be thought about to be initial.

FOFI Disclosure. This news release consists of future-oriented monetary details and monetary outlook details (jointly, “ FOFI“) about Highwood’s potential outcomes of operations and production, and parts thereof, all of which go through the exact same presumptions, danger elements, restrictions and credentials as stated in the above paragraphs. FOFI consisted of in this news release was made since the date of this news release and was offered the function of offering additional details about Highwood’s awaited future service operations. The Business disclaims any intent or commitment to upgrade or modify any FOFI consisted of in this news release, whether as an outcome of brand-new details, future occasions or otherwise, unless needed pursuant to suitable law. Readers are warned that the FOFI consisted of in this news release ought to not be utilized for functions besides for which it is divulged herein. All FOFI consisted of in this news release abides by the requirements of Canadian securities legislation, consisting of Canadian Securities Administrators’ National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities. Modifications in projection product costs, distinctions in the timing of capital investment and differences in typical production price quotes can have a substantial effect on the crucial efficiency metrics consisted of in the Business’s assistance for the complete year 2025 consisted of in this press release. The Business’s real outcomes might vary materially from such price quotes.

Currency. All quantities in this news release are specified in Canadian dollars unless otherwise defined.

Abbreviations.

Neither the TSXV nor its Policy Solutions Supplier (as that term is specified in the policies of the TSXV) accepts duty for the adequacy or precision of this news release.

Care Appreciating Reserves Info

Readers ought to see the “Selected Technical Terms” in the Business’s Yearly Info Type dated March 21, 2025 that is offered on the Business’s SEDAR+ profile at www.sedarplus.ca for the meaning of specific oil and gas terms.

Disclosure in this press release of oil and gas details exists in accordance with usually accepted market practices in Canada and National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities (“ NI 51-101“). Particularly, besides as kept in mind herein, the oil and gas details concerning the Business provided in this press release is based upon the report prepared by GLJ Ltd., independent petroleum specialists of Calgary, Alberta and dated March 7, 2025 examining the light and medium petroleum, traditional gas, shale gas, and gas liquids reserves attributable to Highwood’s residential or commercial properties at December 31, 2024 (the “ Reserves Report“).

This press release might reveal possible future drilling areas in 2 classifications: (a) reserved areas; and (b) unbooked areas. Scheduled areas are proposed drilling areas determined in the Reserves Report that have actually shown and/or likely reserves, as suitable, credited to them in the Reserves Report. Unbooked areas are internal price quotes based upon potential acreage and a presumption regarding the variety of wells that can be drilled per area based upon market practice and internal technical analysis evaluation. Unbooked areas have actually been determined by members of management. Unbooked areas do not have actually shown or likely reserves credited to them in the Reserves Report. Highwood’s capability to drill and establish these areas and the drilling areas on which Highwood really drills wells depends upon a variety of recognized and unidentified dangers and unpredictabilities. As an outcome of these dangers and unpredictabilities, there can be no guarantee that the possible future drilling areas determined in this press release will ever be drilled or if Highwood will have the ability to produce petroleum, gas and gas liquids from these or any other possible drilling areas.

The net present worth of future net earnings attributable to reserves and resources consisted of in this press release do not represent the reasonable market price of such reserves and resources. There is no guarantee that the projection costs and expenses presumptions will be achieved, and differences might be product. The healing and reserve price quotes of reserves and resources offered in this press release are approximates just and there is no warranty that the approximated reserves or resources will be recuperated. Real reserves and resources might be higher or less than the price quotes offered in this press release. The price quotes of reserves and future net earnings for private residential or commercial properties in this press release might not show the exact same self-confidence level as price quotes of reserves and future net earnings for all residential or commercial properties, due to the impacts of aggregation.

Basis of Barrels of Oil Equivalent– In this press release, the abbreviation boe indicates a barrel of oil equivalent on the basis of 1 boe to 6 Mcf of gas when transforming gas to boes. Boes might be deceptive, especially if utilized in seclusion. A boe conversion ratio of 6 Mcf to 1 boe is based upon an energy equivalency conversion approach mostly suitable at the burner pointer and does not represent a worth equivalency at the wellhead. In addition, provided the worth ratio based upon the existing cost of petroleum as compared to gas is substantially various from the energy equivalency of 6:1, using a conversion ratio at 6:1 might be deceptive.

Recommendations to “liquids” in this press release describe, jointly, heavy petroleum, light petroleum and medium petroleum integrated, and gas liquids.

Non-GAAP and other Specified Financial Procedures

This press release consists of monetary steps typically utilized in the oil and gas market, consisting of “Net Financial obligation” and “Net Financial Obligation/ 2025 Exit EBITDA”. These monetary steps do not have any standardized significance under IFRS and for that reason might not be similar to comparable steps provided by other business. Readers are warned that these non-IFRS step needs to not be interpreted as an option to other steps of monetary efficiency computed in accordance with IFRS. These non-IFRS steps supplies extra details that Management thinks is significant in explaining the Business’s functional efficiency, liquidity and capability to money capital investment and other activities. Management thinks that the discussion of these non-IFRS steps offer helpful details to financiers and investors as the steps offer increased openness and the capability to much better examine efficiency versus previous durations on a similar basis.

” Changed EBITDA” is computed as capital from (utilized in) operating activities, including back modifications in non-cash operating capital, decommissioning commitment expenses, deal expenses and interest cost. The Business thinks about Adjusted EBITDA to be a crucial capital management step as it is both utilized within specific monetary covenants expected to be recommended under its credit centers and shows Highwood’s standalone success, operating and monetary efficiency in regards to capital generation, changing for interest associated to its capital structure. The most straight similar GAAP step is capital from (utilized in) operating activities.

” Adjusted funds circulation” The Business thinks about changed funds circulation to be a crucial capital management step as it shows the Business’s capability to create needed funds to handle production levels and fund future capital expense. The Business determines changed funds circulation as changed EBITDA less net interest and changing for decommissioning expenses sustained.

” EBITDA” is a non-GAAP monetary step and might not be similar with comparable steps provided by other business. EBITDA is utilized as an alternative step of success and tries to represent the money earnings produced by the Business’s operations. The most straight similar GAAP step is capital from (utilized in) operating activities. EBITDA is computed as capital from (utilized in) operating activities, including back modifications in non-cash operating capital, decommissioning commitment expenses and interest cost.

” Free Capital” is utilized as an indication of the performance and liquidity of the Business’s service, determining its funds after capital investment offered to handle financial obligation levels, pursue acquisitions and evaluate the optionality to pay dividends and/or return capital to investors though activities such as share repurchases. The most straight similar GAAP step is capital from (utilized in) operating activities. Free Capital is computed as capital from (utilized in) operating activities, less interest, workplace lease costs, money taxes and capital investment.

” funds circulation from operations” is computed as capital from (utilized in) operating activities before modifications in working capital and long term accounts payable.

” Net Financial obligation” represents the bring worth of the Business’s financial obligation instruments, consisting of impressive deferred acquisition payments, web of Adjusted working capital. The Business utilizes Net Financial obligation as an option to amount to arrearage as Management thinks it supplies a more precise step in evaluating the liquidity of the Business. The Business thinks that Net Financial obligation can offer helpful details to financiers and investors in comprehending the total liquidity of the Business.

“ Net Financial Obligation/ EBITDA“ is computed as net financial obligation at the ending duration of each monetary quarter divided by the EBITDA for that duration. The Business thinks that Net Financial obligation/ EBITDA works details to financiers and investors in comprehending the time frame, in years, it would require to remove Net Financial obligation based upon existing duration Exit EBITDA.

SOURCE Highwood Possession Management Ltd.