Financial Data and Key Metrics Changes - The company reported Q4 operating EPS of $7.75 per share, marking the second consecutive record quarter in earnings [6] - Adjusted operating return on equity (ROE) for the trailing 12 months was 15.7%, exceeding the intermediate-term target range of 13%-15% [6][17] - For the full year 2025, the company achieved record operating EPS and increased the value of Inforce business margins by 18% [6][10] Business Line Data and Key Metrics Changes - The U.S. market showed favorable results driven by management actions and variable investment income, with individual life mortality in line with expectations [8] - EMEA results reflected strong volume growth and favorable experience, with full-year pre-tax earnings up 35% [11] - APAC continued to see growth momentum, with pre-tax operating income up 18% for the year [10][11] Market Data and Key Metrics Changes - Premium growth was 7.4% year-to-date on a constant currency basis, benefiting from strong growth across North America, EMEA, and APAC [18] - The U.S. healthcare business has approximately $400 million of annual premium, generating about $25 million of pre-tax run rate earnings [39] Company Strategy and Development Direction - The company is focused on a proactive business approach, optimizing its balance sheet, operational scaling, and capital stewardship to generate long-term shareholder value [14][15] - A strategic review led to the decision to exit the group healthcare lines of business, with a focus on deploying capital in strategically aligned businesses [12][39] - The company aims to maintain a balanced approach to capital deployment, targeting a total payout ratio of 20%-30% for buybacks and dividends [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate attractive shareholder value going forward, supported by a strong pipeline of opportunities across various regions [16][77] - The company anticipates a more limited financial impact from Inforce management actions in 2026 compared to recent years [22][83] - Higher interest rates are viewed positively for overall earnings, with modest exposure to disintermediation risk from higher rates [89] Other Important Information - The company successfully repurchased $50 million of shares in Q4, totaling $125 million since reinstating buybacks [10][18] - The effective tax rate for Q4 was 23.8%, with expectations for 2026 in the range of 22%-23% [18] Q&A Session Summary Question: Capital allocation and payout ratio - Management confirmed the target of a 20%-30% total payout ratio while maintaining flexibility for capital deployment [32] Question: Group health rate actions and exit strategy - Significant rate actions were taken, including a 40% average increase, and the decision to exit the group healthcare business was driven by strategic alignment [38][39] Question: Performance of the Equitable block - The Equitable transaction is expected to generate earnings of $160-$170 million in 2026, with various drivers of economic upside identified [45][46] Question: Long-term care risk transfer deal performance - Management expressed satisfaction with the long-term care business performance, aligning with risk appetite and return expectations [57] Question: Exposure to software-related companies and AI disruption - The company has modest exposure to software lending and actively assesses the impact of AI on the investment portfolio [62] Question: Regulatory changes in Europe and competition - Management noted no significant competitive threats arising from regulatory changes in Europe, focusing on opportunities with both asset and biometric risks [72][73]

Financial Data and Key Metrics Changes - The fourth quarter of 2025 saw upstream production reach 909,000 barrels per day, the highest quarterly production in company history, exceeding the previous best by 34,000 barrels per day [5][6] - Full-year upstream production was 860,000 barrels per day, also a record, surpassing the previous year by 32,000 barrels per day and exceeding original guidance by 20,000 barrels per day [6][9] - Refining throughput for Q4 was 504,000 barrels per day, marking the best quarter ever, and full-year throughput was 480,000 barrels per day, also a record [7][8] - Capital expenditures for the full year were CAD 5.66 billion, down CAD 510 million from 2024, and CAD 540 million below original guidance, achieved through rigorous cost management [10][12] - The company reported a net debt of CAD 6.3 billion, the lowest in over a decade, and a significant reduction in WTI breakeven costs [14][18] Business Line Data and Key Metrics Changes - Upstream production increased by 114,000 barrels per day over two years without major acquisitions or capital-intensive projects, demonstrating growth from within [6][12] - Refining utilization was reported at 108% for Q4 and 103% for the full year, both record levels, with all refineries operating at 100% or higher for two consecutive quarters [8][9] - Product sales reached 640,000 barrels per day in Q4, the best fourth quarter ever, and full-year sales were 623,000 barrels per day, also a record [9] Market Data and Key Metrics Changes - The company noted a year-on-year decrease in WTI prices by 15%, with adjusted AFFO down 8% and free funds flow down 6% [14][15] - Despite lower oil prices, the company maintained a strong performance in share buybacks, repurchasing over CAD 3 billion worth of shares in 2025 [15][16] Company Strategy and Development Direction - The company aims to continue its growth trajectory with a focus on operational excellence, cost management, and shareholder returns, including a commitment to share buybacks and dividends [12][20] - A new value improvement plan is set to be detailed on March 31, focusing on both short-term and long-term strategies, including bitumen supply and development options [17][68] - The company has shifted to a low-cost producer model, significantly improving its balance sheet and operational efficiency [14][18] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of leadership development and succession planning as key to sustaining performance improvements [26][27] - The company expressed confidence in its ability to navigate market fluctuations, leveraging its integrated business model to maintain profitability [56][77] - Management highlighted the resilience of the company in the face of external market pressures, indicating a strong position to capitalize on opportunities during downturns [77] Other Important Information - The company reported a 12% increase in total material movement in mining operations year-over-year, achieving 1.4 billion tons moved at essentially the same cost base [30] - The implementation of technology in mining operations, such as the Autonomous Haul System, has contributed to improved efficiency and performance [30] Q&A Session Summary Question: Changes in company culture and succession planning - Management discussed the importance of continuous leadership development and succession planning, emphasizing a focus on functional excellence [25][26] Question: Performance of mining operations - Management noted improvements in mining performance due to better maintenance of haul roads and the implementation of new technologies [28][30] Question: Field-driven optimization opportunities - Management indicated a proactive approach to field-driven optimizations, focusing on immediate opportunities rather than a backlog [35][36] Question: Refining market sustainability - Management expressed confidence in the Canadian refining market's structural advantages and the company's ability to capture margins effectively [55][56] Question: M&A opportunities - Management stated that the company has earned credibility and trust to pursue M&A if it aligns with shareholder value creation [61][63] Question: CapEx guidance beyond 2026 - Management indicated a focus on maintaining capital expenditures around CAD 6 billion while continuing to return capital to shareholders [66][68]

Financial Data and Key Metrics Changes - Quarterly revenues reached $5 million, with gross profits of approximately $3.2 million, reflecting a gross margin of about 63% [7] - Net income for the quarter was over $2 million, translating to earnings per share of $0.09, while year-to-date net income stood at $7 million, or $0.29 per share [9][15] - Revenue trends showed a slight decline from previous quarters, primarily due to weighted deliveries of lots, particularly from the largest homebuilder, D.R. Horton [9][10] Business Line Data and Key Metrics Changes - The water utility segment is driven by annual customer growth and strong tap fees, with a noted decrease in industrial customer demand due to permitting issues [16][17] - The oil and gas segment is expected to normalize in fiscal 2026 after a weaker performance in 2025 due to permitting concentration [19][20] - The land development segment is on track to deliver all lots for Phase 2C in the fourth quarter, with ongoing activities in Phase 2D [21][22] Market Data and Key Metrics Changes - The company operates in a low inventory environment for entry-level homes in the Denver area, which is beneficial for its market positioning [55] - The housing market faces headwinds from consumer confidence and affordability issues, but the company remains one of the few entry-level master plan communities available [53][54] Company Strategy and Development Direction - The company focuses on maintaining liquidity to invest in business segments and capitalize on market opportunities, particularly in land acquisition and water rights [52][53] - The strategic emphasis is on delivering finished lots in real-time to meet builder demands, thereby enhancing partnerships with homebuilders [39][40] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of consumer confidence in the housing market and noted that mortgage rates are less of a headwind than in previous years [54][55] - The company anticipates strong growth in the single-family rental segment over the next 18 months, with plans to reach close to 100 units [51][52] Other Important Information - The company has a robust balance sheet with high liquidity, allowing it to navigate volatile markets effectively [52] - A groundbreaking for a new high school project was announced, which is expected to enhance community appeal and support home sales [44][45] Q&A Session Summary Question: Is there any development on the reservoir sites? - Management indicated that while there are no immediate developments, there are ongoing discussions regarding water rights and potential partnerships for future projects [69][70] Question: Where will the water for the new parcel development be sourced? - The water will be sourced from the city of Aurora, as the property has been annexed to the city for over twenty years [71][72] Question: What is the status of the water rights application mentioned in the 10-K filing? - Management explained that the application for new water rights was complicated and did not prevail, but they are working on finding a resolution with opposing groups [74][75]