Saturn Oil & Gas (SOIL) Q3 2025 earnings summary

Executive summary

• Q3 2025 production averaged over 41,100 BOE/day, surpassing guidance and prior year levels, driven by strong operational execution and new well additions.

• Capital was reallocated from drilling to two tuck-in acquisitions, adding 5,400 BOE/day at attractive capital efficiencies and expanding the drilling inventory.

• Share buybacks continued, with nearly 16 million shares repurchased since August 2024, returning CAD 36 million to shareholders and increasing production per share by 22%.

• Adjusted funds flow reached CAD 103 million (CAD 0.54/share), with free funds flow of CAD 16 million, supporting ongoing capital returns and debt reduction.

• Strategic focus shifted capital to acquisitions with higher returns, including the SE SK Tuck-in, adding 4,100 BOE/day and expanding drilling inventory.

Financial highlights

• Q3 revenue exceeded CAD 235 million, with adjusted funds flow of CAD 103 million (CAD 0.54/share), up 17% per share year-over-year.

• Adjusted EBITDA was CAD 124 million; net income was CAD 3.5 million, down from CAD 101.6 million in Q3 2024.

• Net operating expense per BOE was CAD 19.24 for Q3, below the annual target and reflecting cost reduction initiatives.

• Net debt at September 30 was CAD 783 million, with CAD 135 million of principal repaid over the past five quarters.

• Returned CAD 12 million to shareholders via share repurchases during the quarter.

Outlook and guidance

• Year-end 2025 production is targeted at 43,000–44,000 BOE/day, a new record, with Q4 capex expected between CAD 60–70 million.

• Q4 production guidance set at 42,000–43,000 BOE/day.

• 2026 guidance will focus on maintaining flat production, with flexibility to shift capital between drilling, M&A, and buybacks based on returns.

• If oil prices weaken, more capital may be allocated to high-return open-hole multilateral drilling.

• Full year 2026 guidance to be released mid-December.