Saturn Oil & Gas (SOIL) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly production just under 42,000 boe/d, exceeding guidance by 3% due to new wells outperforming type curve by 20%.

• Adjusted funds flow reached CAD 131 million (CAD 0.66/share), up 3% over Q4/24 per share, with adjusted EBITDA of CAD 158 million, surpassing analyst expectations.

• Net debt reduced by $46.3 million to $813.9 million at March 31, 2025.

• Liquidity stood at approximately CAD 230 million, including CAD 80 million cash and CAD 150 million undrawn credit facility.

• Continued focus on asset optimization, operational efficiencies, and flexible capital allocation to maximize shareholder value.

Financial highlights

• Petroleum and natural gas sales were $278.1 million, up from $268.8 million in Q4/24 and $168.2 million in Q1/24.

• Adjusted funds flow was CAD 131 million (CAD 0.66/share), driven by record production of 41,700 boe/d, up from 41,000 boe/d in Q4 2024.

• Adjusted EBITDA totaled $153.2 million; free funds flow was $57.8 million ($0.29/share), the highest for any first quarter.

• Net income was $37.8 million ($0.19/share), compared to a net loss of $26.3 million in Q4/24.

• Net debt at quarter end was CAD 814 million, with net debt to annualized adjusted EBITDA at 1.3x.

Outlook and guidance

• CapEx guidance: CAD 300–310 million if WTI is above CAD 70; CAD 200 million if WTI averages CAD 60; CAD 100–150 million if WTI is CAD 50–55.

• Q2/25 capital expenditures expected between $15–$20 million due to spring break-up, with flexibility to adjust based on market conditions.

• Q2/25 average production guidance set at 39,000–40,000 boe/d, with free funds flow expected to be strongest in the quarter.

• Capital allocation decisions for H2 2025 will be deferred until July, with flexibility to adjust based on commodity prices.

• No expected impact on 2025 production from delayed drilling, as most activity is scheduled for later in the year.