Saturn Oil & Gas Inc. Announces 2026 Capital Budget and Guidance Designed to Optimize Free Funds Flow, Continue Debt Repayment and Preserve Long-Term Value

Core Viewpoint - Saturn Oil & Gas Inc. announces its 2026 capital budget and production guidance, focusing on prudent capital allocation and flexibility in response to commodity price fluctuations [1][2]. Capital Budget and Production Guidance - The company plans a development capital budget of CAD 180 to 190 million, targeting average production of 39,000 to 41,000 boe/d, with approximately 81% weighted to oil and liquids [2][8]. - The budget is designed to prioritize high-return drilling targets and optimize free funds flow generation, allowing for quick adjustments based on market conditions [2][3]. Financial Expectations - Adjusted Funds Flow (AFF) is projected to be between CAD 325 million and 375 million, with a per-share estimate of CAD 1.75 to 2.00 [8]. - Free Funds Flow is expected to range from CAD 120 million to 170 million, translating to a yield of 25% to 35% [8][9]. Production Strategy - The 2026 budget is expected to be weighted towards the second half of the year, with over 40% of capital deployed in Q3 and nearly 30% in Q4, reflecting seasonal impacts [5][6]. - The company plans to drill 105 wells, focusing on high-return locations in Southeast Saskatchewan and Central Alberta [10][19]. Operational Efficiency - The company aims to reduce net operating expenses through the integration of recently acquired assets and ongoing efficiency improvements [6][19]. - Minimal infrastructure spending is required due to the mid-life cycle asset base, which has lower decline rates [3][19]. Sensitivity to Commodity Prices - Each additional USD 5 per barrel increase in WTI oil prices is estimated to add approximately CAD 50 million to AFF [9][10]. - The disciplined capital budget retains flexibility to target quick payback opportunities in response to price changes [9][10].