Saturn Oil & Gas (SOIL) Q2 2025 earnings summary

Executive summary

• Q2 2025 production averaged 40,417 BOE/d, exceeding guidance and analyst expectations for the third consecutive quarter.

• Adjusted funds flow reached CAD 109 million, with record free funds flow of CAD 93 million ($0.48/share), despite an 11% decline in WTI prices and a stronger Canadian dollar.

• Net debt reduced to CAD 695 million, a decrease of nearly CAD 120 million from the prior quarter, surpassing the forecasted reduction.

• Over CAD 24 million returned to shareholders through buybacks since August 2024, canceling 11.2 million shares.

• Strategic focus on debt reduction, opportunistic share buybacks, and targeted tuck-in acquisitions to enhance value.

Financial highlights

• Adjusted EBITDA reached $131.7 million, up 24% year-over-year.

• Net income for Q2/25 was $95.1 million, more than double Q2/24.

• Petroleum and natural gas sales were $236.7 million, up from $208.9 million in Q2/24.

• Operating netback per BOE was CAD 35.84 after derivatives, with operating costs at CAD 18.28 per BOE and royalty expenses at CAD 7.58 per BOE.

• Capital expenditures were $15.8 million, focused on turnarounds and facilities, supporting record free funds flow.

Outlook and guidance

• Q3 2025 CapEx expected between CAD 80–90 million, with average volumes of 37,000–38,000 BOE/d.

• Full-year CapEx tracking toward CAD 290–295 million, slightly below original guidance due to cost savings.

• Anticipates annual operating cost savings up to $20 million from Saskatchewan's carbon tax elimination.

• Capital allocation remains flexible, with adjustments based on commodity prices and market conditions.