Financial Data and Key Metrics Changes - In 2025, the company generated CAD 1.5 billion in adjusted funds flow and CAD 275 million in free cash flow, with CAD 262 million of adjusted funds flow and CAD 76 million in free cash flow in Q4 2025 [11][12] - The net loss for 2025 was CAD 604 million, primarily due to non-recurring losses related to the Eagle Ford disposition and a CAD 148 million impairment on Viking assets [12] - The company exited 2025 with CAD 857 million in cash and no net debt, marking the strongest financial position in its history [12] Business Line Data and Key Metrics Changes - The Canadian portfolio delivered annual production of 65,500 BOE per day, representing 6% organic growth year-over-year [6] - Duvernay production grew to 10,600 BOE per day in Q4 2025, a 46% increase over Q4 2024, with plans to bring 12 wells on stream in 2026 [9] - Heavy oil assets support 12 years of drilling at the current pace, with 91 heavy oil wells expected to be brought on stream in 2026 [10] Market Data and Key Metrics Changes - WTI averaged US $59 per barrel during Q4 2025, impacting the overall financial performance [11] - The company is monitoring the macroeconomic environment and has the flexibility to adjust growth plans based on commodity prices [28] Company Strategy and Development Direction - The company has repositioned itself as a focused high-return Canadian oil producer following the Eagle Ford sale [4] - Future growth will prioritize heavy oil and Duvernay assets, with a commitment to technical leadership and disciplined capital allocation [6] - The company plans to return a significant portion of the Eagle Ford proceeds to shareholders through a normal course issuer bid (NCIB) program [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial flexibility and ability to navigate market environments [4] - The company is optimistic about its production growth potential and has significant inventory depth to support future plans [14] - Management emphasized the importance of capital efficiency and ongoing improvements in production costs [29] Other Important Information - The company has initiated a buyback program, repurchasing 30 million shares for CAD 141 million since late December [12] - The company is advancing two waterflood pilots to enhance recovery rates and reduce decline rates in its heavy oil production [10][22] Q&A Session Summary Question: Growth outlook and potential for exceeding guidance - Management indicated that while the current guidance is for 3% to 5% growth, there is potential for exceeding this if oil prices remain elevated [19][20] Question: Materiality of waterflood opportunities - Management discussed deploying two pilot projects for waterfloods, emphasizing the importance of understanding the rock characteristics before scaling up [21][22] Question: Breakeven prices and growth scenarios - Management stated that the budget is centered around $60 oil, with flexibility to adjust growth plans if prices fall below this level [28] Question: Capital efficiencies and production costs - Management highlighted ongoing efforts to improve capital efficiency through targeted investments in infrastructure and exploration [29][30] Question: Allocation of net cash balance - Management confirmed that a significant portion of the net cash will be returned to shareholders through buybacks, while also considering land acquisitions [33]

Core Viewpoint - Athabasca Oil Corporation reported strong operational and financial performance for the year-end 2025, highlighting its focus on maximizing cash flow per share and returning capital to shareholders through share buybacks [1]. Year-end 2025 Consolidated Corporate Results - Average annual production reached 39,375 boe/d (98% Liquids), marking a 7% growth year-over-year [5]. - Adjusted Funds Flow was $504 million ($1.01 per share), with cash flow from operating activities at $520 million [5]. - Free Cash Flow from Athabasca (Thermal Oil) was $217 million, demonstrating the resilience of its asset base [5]. - Total capital expenditures were $323 million, including significant investments in Leismer and Duvernay [5]. - The company repurchased 39 million shares for $230 million, committing to return 100% of Free Cash Flow to shareholders in 2025 [5]. 2025 Year-end Consolidated Reserves - Athabasca holds 1.3 billion boe of Proved Plus Probable (2P) reserves, with a net present value (NPV10) of $5.8 billion ($12.13 per share) [5][30]. - The Thermal Oil division has a 2P NPV10 of $5.2 billion, supporting growth to over 60,000 bbl/d by 2030 [5][30]. - Duvernay Energy Corporation (DEC) saw a 9% increase in 2P reserves to 79 mmboe, with a NPV10 value of $592 million [5][31]. 2026 Guidance Maintained - The company plans capital expenditures of approximately $310 million, with average production expected between 37,000 – 39,000 boe/d [5]. - Consolidated Adjusted Funds Flow is forecasted between $425 – $450 million for 2026, with significant growth anticipated in subsequent years [5]. Operations Update - The Leismer expansion project is on track, with production expected to reach 40,000 bbl/d by late 2027 [9][20]. - The Corner asset is set for development with a modular design, aiming for self-funding while maintaining a strong balance sheet [23][24]. - DEC's production growth is projected to exceed 15,000 boe/d by 2030, supported by a robust drilling inventory [28][29]. Financial Resilience - Athabasca maintains a strong balance sheet with a $59 million net cash position, providing flexibility for capital allocation [6]. - The company has $2.1 billion in tax pools, including $1.6 billion of immediately deductible non-capital losses, sheltering cash taxes beyond 2030 [6].