Saturn Oil & Gas (SOIL) Guidance summary

Opening remarks and agenda

• Conference call introduced to discuss the 2026 capital budget and guidance, with management remarks followed by Q&A.

• Announced a 2026 capital budget and guidance focused on optimizing free funds flow, debt repayment, and long-term value preservation.

• Provided details on a conference call and webcast scheduled for December 18, 2025, to discuss the 2026 capital budget and development program.

Guidance on key objectives

• 2026 capital expenditure budget set at $180–$190 million, with 80–85% allocated to drilling, completion, equipping, and tie-in activities, targeting 105 gross (78 net) wells.

• Forecast average production of 39,000–41,000 boe/d in 2026, weighted ~81% to oil and liquids.

• Free funds flow yield forecasted at 25%–35% for 2026, with a focus on debt repayment and potential share buybacks or opportunistic acquisitions.

• Capital program reduced by 27% from September guidance, with only a 5% decrease in average production forecast for 2026 compared to 2025.

• Net debt at 2026 exit projected at $645–$695 million, with a net debt to adjusted EBITDA ratio of 1.4x–1.7x.

Market trends and strategic opportunities

• Budget structured to minimize capital spending and preserve asset value amid a discounted commodity price environment.

• Flexible asset base and capital program allow rapid scaling in response to commodity price movements.

• Hedge book provides downside protection, with 50–55% of production hedged for the next 12 months at $60–$63 per barrel.

• Over 80% of assets weighted to high-value light oil and liquids, with type curve outperformance of 22% in 2024 and 16% in H1 2025.

• Each US$5/bbl increase in WTI oil price estimated to add ~$50 million in adjusted funds flow.