Saturn Oil & Gas Inc. Announces Third Quarter 2025 Results, Highlighted by Production Ahead of Guidance and Continued Execution of Our Blueprint Strategy

Core Insights - Saturn Oil & Gas Inc. reported strong Q3 2025 results, with production exceeding guidance and analyst estimates, alongside robust adjusted funds flow despite a challenging commodity price environment [2][3][5] Financial Highlights - Q3 2025 production averaged 41,142 boe/d, which is 10% above the midpoint of the previous guidance of 37,000 to 38,000 boe/d [5][6] - Adjusted funds flow totaled $103 million ($0.54/share), with free funds flow of $16 million [5][6] - The company executed an $87 million capital program, focusing on acquisition opportunities rather than drilling due to current oil price conditions [5][9] - Net operating expenses were 3% below guidance at $19.24/boe, reflecting ongoing cost reduction efforts [5][16] Operational Highlights - The company drilled 29 gross (24.7 net) wells during the quarter, with significant capital directed towards land expenditures in Saskatchewan [9][12] - The SE SK Tuck-in acquisition added approximately 4,100 boe/d and expanded development potential [9][12] - Saturn's net debt at quarter-end was $783 million, with a net debt to annualized proforma adjusted funds flow ratio of 1.6x [9][10] Strategic Initiatives - The company announced two tuck-in acquisitions with attractive metrics of under $16,000 per flowing boe, enhancing long-term sustainability [3][9] - A focus on increasing free funds flow generation supports ongoing debt repayment and share buybacks, aimed at improving per share metrics [3][9] Outlook - For Q4 2025, capital expenditures are anticipated to range between $60 million and $70 million, with production expected to average between 42,000 to 43,000 boe/d [17][18] - The company plans to release full-year 2026 guidance in mid-December [18]