Hemisphere Energy (HME) investor relations material

Strategic focus and operational highlights

• Emphasizes disciplined growth, reliable returns, and maximizing per-share value through Canadian oil assets with long-life, high-value reserves and low production decline rates via enhanced oil recovery (polymer floods).

• Maintains a strong balance sheet with no debt, building cash, and low asset retirement obligations, supporting sustainable quarterly dividends, opportunistic share buybacks, and special dividends.

• Current production is approximately 3,800 boe/d (99% heavy oil) from 54 producing wells, with a market capitalization of $234.5 million and enterprise value of $223.5 million as of March 2026.

Financial performance and guidance

• Q3 2025 average production was 3,571 boe/d, generating $23.1 million in revenue, $12.3 million EBITDA, and $5.2 million in free funds flow.

• 2026 guidance targets 3,900 boe/d production, with adjusted funds flow ranging from $28–$51 million depending on oil prices, and $12 million in capital expenditures.

• Free funds flow for 2026 is projected between $16–$39 million, supporting a base dividend of $0.10 per share and flexibility for further growth or shareholder returns.

Growth, reserves, and enhanced oil recovery

• Achieved a 19% compound annual growth rate in production per fully diluted share and 36% CAGR in adjusted funds flow per share over five years.

• Year-end 2025 reserves include 9.3 MMboe PDP, 11.8 MMboe 1P, and 15.2 MMboe 2P, with NPV10 before tax of $212 million (PDP), $252 million (1P), and $316 million (2P).

• Reserve life index is 8.9 years (1P) and 11.4 years (2P), with future development costs of $32–$43 million.

• Polymer flood technology in Atlee Buffalo pools enables lower production decline rates, higher recovery, and increased free cash flow compared to industry averages.