Strathcona Resources Ltd. Confirms Payment of Special Distribution and Provides Capital Structure Update

Core Viewpoint - Strathcona Resources Ltd. has confirmed the payment of a special distribution of $10.00 per share and provided updates on its capital structure, including debt management and liquidity enhancements [1][2][4][5]. Special Distribution - The special distribution of $10.00 per share has been completed and will be distributed to registered shareholders by Odyssey Trust Company after December 22, 2025 [2]. - Beneficial shareholders will receive the distribution through their intermediaries, which may vary in timing based on their procedures [2][3]. Capital Structure Update - Strathcona has issued a notice of redemption for all outstanding US$500 million 6.875% Senior Notes due 2026, with a redemption date set for December 30, 2025 [4]. - The company has closed an upsized and extended bank credit facility, increasing the total facility size to approximately $3.490 billion from $3.255 billion, with a maturity extension to March 2030 [5]. - Strathcona disposed of its entire marketable security portfolio for approximately $1.390 billion, resulting in a gain of about $101 million compared to September 30, 2025 [6]. Financial Projections - Pro forma for the special distribution, Senior Notes redemption, and the disposition of public securities, Strathcona expects approximately $2.1 billion in outstanding debt as of December 31, 2025, with about $1.4 billion of liquidity available [7]. - The company anticipates a debt to EBITDA ratio of approximately 1.5x at a WTI price of US$60, with a projected weighted average interest rate of around 5% in 2026, down from approximately 6% in 2025 [7]. Company Overview - Strathcona is recognized as one of North America's fastest-growing pure play heavy oil producers, focusing on thermal oil and enhanced oil recovery [8].