Hemisphere Energy Declares Quarterly Dividend, Announces 2026 Guidance, and Provides Corporate Update

Core Viewpoint - Hemisphere Energy Corporation has announced a quarterly dividend, provided guidance for 2026, and shared a corporate update, highlighting its financial health and strategic growth plans. Quarterly Dividend - The Board of Directors has approved a quarterly cash dividend of $0.025 per common share, payable on February 26, 2026, to shareholders of record as of February 12, 2026 [2]. 2026 Corporate Guidance - The approved capital program for 2026 is approximately $12 million, funded entirely by an estimated adjusted funds flow (AFF) of $40 million at a WTI price of US$60 per barrel [3][10]. - After capital expenditures, the expected free funds flow (FFF) for 2026 is $28 million, with about 35% allocated to quarterly base dividends [4]. Financial Highlights - Under different WTI price scenarios, the AFF and FFF projections are as follows: - At US$50 WTI: AFF of $28 million, FFF of $16 million - At US$60 WTI: AFF of $40 million, FFF of $28 million - At US$70 WTI: AFF of $51 million, FFF of $39 million [6]. - The base dividend per share remains consistent at $0.10 across all scenarios [6]. Production and Costs - Average annual production is projected at 3,900 barrels of oil equivalent per day (boe/d), with 99% being heavy oil [7]. - Operating and transportation costs are estimated at $15.00 per boe, with royalties at 16% for US$60 WTI [7]. Corporate Outlook - As of January 2026, corporate production is trending over 3,800 boe/d, supported by enhanced oil recovery (EOR) methods, leading to lower decline rates and higher free cash flows [9]. - The company entered 2026 debt-free with over $7 million in positive working capital, allowing flexibility in capital program adjustments based on market conditions [10]. Shareholder Returns - In 2025, Hemisphere paid a total of $21.8 million in shareholder returns, including base and special dividends, alongside expenditures on its normal course issuer bid (NCIB) program [4].