Hemisphere Energy Announces 2025 Second Quarter Results, Declares Quarterly Dividend, and Provides Operations Update

Core Viewpoint - Hemisphere Energy Corporation reported its financial and operational results for Q2 2025, declared a quarterly dividend, and provided an operations update, highlighting a focus on shareholder returns and balance sheet strength amid market volatility [1][10]. Financial Highlights - Quarterly production reached 3,826 boe/d, with 99% being heavy oil [5]. - Revenue generated was $24.4 million, equating to $70.06/boe [5]. - Total operating and transportation costs were $14.18/boe, resulting in an operating field netback of $14.9 million or $42.77/boe [5]. - Adjusted funds flow from operations (AFF) was $10.3 million, or $29.47/boe [5]. - Free funds flow amounted to $8.1 million, translating to $0.07/share [5]. - The company distributed $2.4 million in base dividends ($0.025/share) and $2.9 million in special dividends ($0.03/share) during the quarter [5][9]. - Capital expenditures for the quarter were $2.2 million, with a focus on preparatory spending for upcoming drilling [5]. Operational Update - The company deferred most capital spending to the latter part of the year due to economic and oil market volatility, focusing on balance sheet strength and shareholder returns [10]. - The drilling program is scheduled to commence late in Q3 2025, including development wells in Atlee Buffalo and a new well in Marsden [11]. - Hemisphere has nearly $14 million in working capital and an undrawn credit line, positioning it to act on acquisition opportunities and continue shareholder returns [12]. Share Capital - As of August 13, 2025, the company had 95,168,202 common shares outstanding, with total fully diluted shares at 100,281,802 [8]. Dividend Declaration - The Board of Directors approved a quarterly base cash dividend of $0.025 per common share, payable on September 12, 2025, to shareholders of record as of August 29, 2025 [9]. Market Position - Hemisphere Energy is focused on maximizing value-per-share growth through sustainable development of its high netback, ultra-low decline conventional heavy oil assets [14].