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]

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][13] 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 [7] - Production from the Duvernay increased 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 comprise 750,000 net acres and 1,100 drilling locations, with expectations to bring 91 heavy oil wells on stream in 2026 [9] Market Data and Key Metrics Changes - The average WTI price during Q4 2025 was US $59 per barrel, impacting the company's financial performance [11] - The company is monitoring the macroeconomic environment and has flexibility in its capital program to adjust based on commodity prices [19][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][8] - The company plans to continue share buybacks and maintain its annual dividend of CAD 0.09 per share [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and financial flexibility to navigate market conditions [4][14] - The 2026 production guidance remains at 67,000-69,000 BOE per day, indicating 3%-5% organic growth year-over-year [14][15] - Management is optimistic about the potential of the Duvernay and heavy oil assets, with significant inventory depth to support growth [9][15] Other Important Information - The company has initiated a buyback program, repurchasing 30 million shares for CAD 141 million since late December 2025 [13] - The company is advancing two waterflood pilots at Peavine to enhance recovery and reduce decline rates [10][25] Q&A Session Summary Question: Growth outlook and potential for exceeding guidance - Management indicated that while the current guidance is for 3%-5% growth, there is potential for exceeding this if oil prices remain elevated [19] Question: Materiality of Peavine waterflood opportunity - Management is deploying two pilot projects to assess the effectiveness of waterflooding, with expectations for potential future benefits [21][23] Question: Breakeven prices and growth scenarios - The company has set its budget around $60 oil, with flexibility to adjust growth plans based on market conditions [28] Question: Capital efficiencies and cost of production - Management discussed the budget allocation aimed at improving capital efficiency, particularly in the Duvernay and heavy oil programs [29][31] Question: Allocation of net cash balance - A significant portion of the net cash will be returned to shareholders through buybacks, with some funds allocated for strategic acquisitions [33]

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 from 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][13] 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 [7] - Production from the Duvernay increased 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 [9][10] Market Data and Key Metrics Changes - WTI averaged US $59 per barrel during Q4 2025, impacting the company's 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 share buybacks and maintain an annual dividend of CAD 0.09 per share [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and financial flexibility to navigate market environments [4][14] - The 2026 production guidance remains unchanged at 67,000-69,000 BOE per day, representing 3%-5% organic growth year-over-year [14] - Management is optimistic about the potential of the Duvernay and heavy oil assets, with significant inventory depth and optionality [14] Other Important Information - The company has initiated a share buyback program, repurchasing 30 million shares for CAD 141 million since late December [13] - The company is advancing two waterflood pilots to enhance recovery and reduce decline rates in its heavy oil production [10][25] Q&A Session Summary Question: Growth outlook and potential for exceeding guidance - Management indicated that while the current guidance is for 3%-5% growth, there is potential for increased growth if oil prices remain elevated, with decisions to be made during breakup [19][20] Question: Materiality of waterflood opportunities - Management is deploying two pilot projects for waterfloods, aiming to understand their impact on production and potential for future development [21][23] Question: Breakeven prices and growth scenarios - The company has set its budget around CAD 60 oil, with flexibility to adjust growth plans based on market conditions [28] Question: Capital efficiencies and cost of production - Management discussed the budget allocation aimed at improving capital efficiency, particularly in the Duvernay and heavy oil programs [29][31] Question: Allocation of net cash balance - A significant portion of the net cash will be returned to shareholders through buybacks, with some funds allocated for strategic acquisitions [33] Question: Existing hedges and future hedging policy - The company is currently hedged on WTI and WCS, but does not expect to be active in hedging WTI contracts in the future due to its strong balance sheet [36][37]

Obsidian Energy Ltd. Corporate Presentation February 2026 OVERVIEW Focused asset base with experienced team delivering value P E A C E R I V E R 13,741 boe/d Cold flow heavy oil V I K I N G 1,025 boe/d Light oil conventional development W I L L E S D E N G R E E N & P C U # 1 1 Q4 2025 27,971 boe/d 12,968 boe/d Light oil conventional development | Q4 2025 Production | 27,971 boe/d | | --- | --- | | Q4 2025 Annualized Funds Flow from Operations (FFO) | $226 million | | Q4 2025 Annualized Net Debt to FFO | 1. ...

Core Viewpoint - Trio Petroleum (TPET) has acquired heavy oil assets from NovaCor Exploration, which includes producing wells and infrastructure, aiming to enhance production and operational efficiency [1] Group 1: Acquisition Details - The acquired assets are located in west-central Saskatchewan and consist of four producing heavy oil wells and a water disposal facility [1] - Three wells are currently producing approximately 30 barrels per day, while the fourth well is expected to produce around 20 barrels per day upon resumption [1] - The acquisition price is $1,000,000 CAD, paid through the issuance of 912,875 shares of common stock [1] Group 2: Production and Operational Potential - The assets target established heavy oil intervals within the Mannville Group, including Waseca, McLaren, Sparky, and GP [1] - Trio Petroleum believes the asset base offers a combination of existing production and potential operational upside through disciplined field execution [1] - The acquisition includes necessary infrastructure and equipment to support ongoing production and field operations [1]

Core Viewpoint - Trio Petroleum Corp has acquired heavy oil assets in Saskatchewan from NovaCor Exploration Ltd, which includes producing wells and infrastructure, aimed at enhancing production and operational efficiency [1][2][7]. Acquisition Details - The acquisition includes four producing wells and a water disposal facility, with current production of approximately 30 barrels per day from three wells and an expected 20 barrels per day from the fourth well [2][5]. - The assets are located in established heavy oil intervals within the Mannville Group, targeting zones such as Waseca, McLaren, Sparky, and GP, with potential for operational improvements [2][3][4]. Production and Optimization Potential - The Section 3-48-24W3 area is viewed as an optimization opportunity, with potential to add another 15 barrels per day through low-cost workovers and recompletions [3]. - The Section 5-49-24W3 area is also identified for near-term optimization, with a practical path to improve production rates by an additional 25 barrels per day [4]. Infrastructure and Revenue Generation - The acquisition includes a produced-water disposal facility expected to generate recurring revenues, with potential monthly earnings of upwards of $100,000 from water disposal and skim oil recovery [5][7]. - The facility is designed to support third-party service arrangements, enhancing revenue streams for the company [5]. Management Insights - The CEO emphasized the acquisition's immediate contribution to oil production and the potential for significant operational improvements, highlighting the strategic importance of the Maidstone position for future drilling opportunities [6][7]. - The company aims to leverage its technical expertise and operational capabilities to maximize shareholder value through disciplined growth [7]. Financial Aspects - The purchase price for the acquisition is $1,000,000 CAD, paid through the issuance of 912,875 shares of common stock, which includes certain registration rights [7].

Core Viewpoint - As oil and energy investors look towards 2026, balance-sheet strength, capital discipline, and earnings visibility are becoming increasingly important alongside production growth. Baytex Energy and Canadian Natural Resources are diverging in their strategies and risk profiles, with Baytex emerging from a major reset while CNQ focuses on scale and stability [1]. Baytex Energy (BTE) Case - Baytex is transforming into a different company by 2026, having simplified its business through the sale of Eagle Ford assets, which has significantly reduced financial risk and improved its balance sheet [2]. - The company is now focused on high-return Canadian assets, with heavy oil production from Clearwater, Peace River, and Lloydminster forming the backbone of its cash flow, which remains positive even in softer oil price environments [3]. - With over 80% of its 2025 capital spending already completed, Baytex is positioned for better free cash flow visibility heading into 2026, allowing for increased shareholder returns through dividends and buybacks [4]. - Challenges include a heavier weighting towards heavy oil, which increases exposure to price discounts during downturns, and recent reductions in free cash flow expectations due to weaker oil prices [5]. Canadian Natural Resources (CNQ) Case - CNQ represents stability and consistency, with a C$6.3 billion capital program aimed at sustaining low-cost, long-life production while delivering steady returns to shareholders, expecting a modest production growth of about 3% [6]. - The company's asset base features low decline rates and long reserve life, reducing the need for heavy reinvestment and supporting predictable cash flow across commodity cycles [7]. - CNQ's operational efficiency is enhanced by its scale and technology, allowing for steady output and flexibility in response to price changes, although its size limits rapid growth potential [8]. - Looking towards 2026, CNQ is characterized by reliability rather than rapid growth, offering dependable cash flow but limited near-term upside compared to smaller companies like Baytex [9]. Price Performance - Baytex shares have outperformed recently, gaining 65.3% over the past six months, while CNQ shares have decreased by 0.6%, indicating market confidence in Baytex's post-divestment strategy [11]. Valuation - On a forward 12-month price-to-sales basis, CNQ trades at 2.54X and Baytex at 2.45X, suggesting that Baytex may have more room for valuation expansion if its execution continues to improve [12]. EPS Outlook - Baytex is projected to see a 9.5% year-over-year EPS growth in 2025, while CNQ is expected to experience a modest 0.8% decline, indicating stronger earnings leverage for Baytex heading into 2026 [14][16]. Conclusion - Both companies have their merits, but they cater to different investor needs. CNQ is a dependable operator with a proven capital-return model, while Baytex's cleaner balance sheet and improving cash flow profile give it a competitive edge at this time [17].

2026 Budget & Guidance - Development capital expenditures are budgeted between $180 million and $190 million[10] - The company forecasts average production between 39,000 and 41,000 barrels of oil equivalent per day (boe/d)[10] - Oil and liquids are expected to comprise approximately 81% of the production mix[10] - Adjusted Funds Flow (AFF) is projected to be between $325 million and $375 million, or $1.75 to $2.00 per share[10] - Free Funds Flow (FFF) is forecasted between $120 million and $170 million, or $0.65 to $0.95 per share, resulting in a free funds flow yield of 25% to 35%[10] - Net debt at the end of 2026 is estimated to be between $645 million and $695 million, with a net debt to adjusted EBITDA ratio of 1.4x to 1.7x[10] Sensitivity Analysis - A $5.00 change in WTI oil price is expected to impact AFF by approximately $50 million[13] - A 1,000 barrel per day change in oil production is projected to impact AFF by approximately $25 million[13] - A $0.01 change in the CAD/USD exchange rate is expected to impact AFF by approximately $8 million[13] - A $0.50 change in AECO gas price is projected to impact AFF by approximately $3 million[13] Development Program Highlights - Approximately 33% of the 2026 development capital is allocated to Open Hole Multi-Lateral (OHML) locations in Southeast Saskatchewan (SE SK)[9, 15] - The company plans for 32 OHML locations in 2026 and has identified over 300 OHML locations in SE SK[15] - The company plans for 23 conventional wells[19]

Core Viewpoint - Baytex Energy Corp. has announced the sale of its U.S. Eagle Ford assets for US$2.305 billion to focus on its higher-return Canadian operations, enhancing its financial position and shareholder returns [1][2][5]. Transaction Details - The transaction is valued at approximately $3.25 billion in cash and is expected to close in late 2025 or early 2026, pending regulatory approvals [1][5]. - A US$200 million deposit will be made by the buyer, which may be forfeited under certain conditions [5]. Strategic Focus - The divestiture allows Baytex to concentrate on its Canadian assets, particularly in heavy oil development and the Pembina Duvernay, which are expected to drive long-term value creation [6][8]. - The company aims to maintain a disciplined growth strategy with an annual production growth target of 3-5% at WTI prices of US$60-65 per barrel [11]. Financial Position - Post-transaction, Baytex will have a net cash position and plans to repay outstanding credit facilities and senior notes, resulting in an industry-leading financial position [6][8]. - The company intends to return a significant portion of the proceeds to shareholders, potentially through share buybacks and maintaining its current dividend of $0.09 per share [6][8]. Production and Reserves - The Canadian portfolio produced 65,000 boe/d in the first nine months of 2025, reflecting a 5% growth compared to 2024 [9]. - The Eagle Ford assets being sold had proved plus probable reserves of 401 million boe as of December 31, 2024, with Q3 2025 production averaging 82,765 boe/d [13]. Future Outlook - Baytex plans to provide detailed guidance for 2026 and a three-year outlook following the transaction's completion, highlighting its streamlined Canadian asset base [12]. - The company has identified approximately 212 drilling locations in the Pembina Duvernay and expects to transition to a one-rig drilling program targeting production of 20,000-25,000 boe/d by 2029-2030 [10].

Core Points - Cardinal Energy Ltd. has announced a monthly dividend of $0.06 per common share, payable on December 15, 2025, to shareholders of record on November 28, 2025 [1] - The production from the Reford Central Production Facility has averaged approximately 4,000 bbl/d of heavy oil, exceeding initial forecasts during the ramp-up phase [2] - The company emphasizes disciplined reservoir management to maximize value and long-term recovery from its thermal project in Reford, Saskatchewan [2][6] Dividend Information - The November dividend of $0.06 per common share is designated as an "eligible dividend" for Canadian income tax purposes [1] - The dividend payment reflects the company's commitment to returning value to shareholders [1] Production Update - Initial production rates from the Reford facility are encouraging, with an average of 4,000 bbl/d, indicating strong early performance [2] - The company is focused on sustainable oil production with low decline rates in Western Canada [6] Company Overview - Cardinal Energy Ltd. operates in the oil and natural gas sector, with a focus on low decline sustainable oil production [6] - The company has completed its first thermal project in Reford and has transitioned to the production phase [6]