Hemisphere Energy (HME) Q4 2025 earnings summary

Executive summary

• Declared a special dividend of $0.03 per share, payable May 28, 2026, supported by strong oil prices and stable Q1 2026 production of 3,800 boe/d (99% heavy oil).

• Achieved record annual production of 3,645 boe/d in 2025, up 6% year-over-year.

• Distributed $9.6 million in base dividends and $5.8 million in special dividends during 2025.

• Repurchased and cancelled 3.5 million shares for $6.5 million under NCIB.

Financial highlights

• 2025 revenue totaled $93.9 million, down from $99.9 million in 2024.

• Adjusted funds flow from operations (AFF) was $42.9 million, compared to $45.8 million in 2024.

• Free funds flow (FFF) reached $26.6 million, up 11% year-over-year.

• Operating and transportation costs averaged $15.14/boe.

• Net income for 2025 was $28.0 million, or $0.29 per basic share.

• Capital expenditures were $16.3 million, focused on long-life, low-decline assets.

• Exited 2025 with positive working capital of $8.6 million, up from $6.4 million at year-end 2024.

Outlook and guidance

• Special dividend reflects confidence in ongoing production and oil price strength.

• Forward-looking statements highlight reliance on stable oil prices, continued operational consistency, and regulatory environment.