Saturn Oil & Gas (SOIL) investor relations material

Executive summary

• Achieved record Q4 2025 production of 43,657 boe/d, with annual volumes up 22% year-over-year and production per debt-adjusted share up 46%.

• Exceeded guidance and analyst expectations across production, net debt reduction, adjusted funds flow, and operating costs per BOE.

• Returned over $33 million to shareholders in 2025 via share buybacks, with total capital returned since August 2024 reaching $53.6 million.

• Maintained a disciplined focus on debt reduction, share buybacks, and value-accretive tuck-in acquisitions.

• Achieved zero lost time injuries for the second consecutive year, despite increased man-hours.

Financial highlights

• Generated record adjusted funds flow of $464 million ($2.40/share) in 2025, up 22% year-over-year, with Q4 at $121 million.

• Free funds flow totaled $223 million ($1.15/share) for the year, with Q4 at $56 million and a 50% yield at year-end.

• Net income for 2025 was $168 million ($0.87/share), with Q4 net income of $31 million ($0.17/share).

• Net debt at year-end was $761.5 million, with a net debt to adjusted EBITDA ratio of 1.35x.

• Operating netback for 2025 was $36.18/boe; net operating expenses averaged $19.09/boe, both below guidance.

Outlook and guidance

• Q1 2026 capital expenditures forecasted at $40–$50 million, with production guidance of 41,000–42,000 boe/d.

• Approximately 70% of the 2026 capital budget is allocated to the second half, allowing flexibility to adjust spending based on market conditions.

• Each $5/bbl increase in WTI above $60 impacts adjusted funds flow by $45–50 million.