Strathcona Resources Ltd. Reports Fourth Quarter and Full Year 2025 Financial and Operating Results, Year End Reserves, Announces Quarterly Dividend and Board Approval to Commence Normal Course Issuer Bid

Core Insights - Strathcona Resources Ltd. reported strong financial and operational results for Q4 and FY 2025, with significant free cash flow and operating earnings, alongside a quarterly dividend declaration and share repurchase program [1] Financial Performance - Q4 2025 free cash flow was $53 million ($0.25 per share) and operating earnings were $146 million ($0.68 per share) [1] - FY 2025 free cash flow totaled $364 million ($1.70 per share) and operating earnings reached $930 million ($4.34 per share) [1] - Production for Q4 2025 was 117,715 boe/d (100% liquids), while FY 2025 production averaged 152,163 boe/d (86% liquids) [1] Reserves and Resource Growth - Year-end 2025 proved developed producing (PDP), proved (1P), and proved plus probable (2P) reserves were 241 MMboe, 1,226 MMboe, and 2,166 MMboe, reflecting growth of 2%, 5%, and 7% respectively [1] - The company achieved a 297% organic 2P reserves replacement and a 51-year 2P reserves life index [1] - The PDP finding and development costs were $21.24 per boe, with a recycle ratio of 1.8x, improving to 3.1x when excluding certain capital expenditures [1] Production and Operational Highlights - Q4 production was in line with expectations, with a 1% increase quarter-over-quarter [1] - Non-energy production and operating costs decreased by 15% to $8.30 per boe due to successful cost improvement initiatives [1] - In Cold Lake, production increased by 2% quarter-over-quarter, driven by the ramp-up of Lower Drainage Wells [1] Strategic Acquisitions and Future Plans - The company acquired a 50% operated working interest in the Selina Project for $23 million, increasing its working interest to 100% [1] - Strathcona expects to develop Selina in a capital-efficient manner, estimating approximately 160 MMbbls of recoverable oil [1] - The 2026 production guidance remains at 120 to 130 Mbbls/d, with a capital budget of $1.0 billion [1] Shareholder Returns - The Board declared a quarterly dividend of $0.30 per share, payable on March 27, 2026 [1] - A normal course issuer bid was approved to repurchase up to 5% of outstanding shares, aiming to buy back shares viewed as undervalued [1]