Q3 2025 Consolidated Corporate Results
Production: Average production of 39,599 boe/d (98% Liquids), representing 2% (11% per share) growth year-over-year.
Cash Flow: Adjusted Funds Flow of $129 million ($0.26 per share). Cash Flow from Operating Activities of $157 million. Free Cash Flow of $56 million from Athabasca (Thermal Oil).
Capital Program: $96 million total capital expenditures, including $61 million at Leismer to support the progressive growth project to 40,000 bbl/d.
Shareholder Returns: Purchased 34 million shares through its buy-back program year-to-date for an aggregate $192 million returned to shareholders. The Company is committed to returning 100% of Free Cash Flow (Thermal Oil) to shareholders in 2025 and has completed ~$675 million in share buybacks since March 31, 2023.
Operations Highlights
Leismer: Consistent production of ~28,000 bbl/d (September 2025) with two sustaining well pairs ramping up and two additional well pairs behind pipe to support productive capacity. The progressive growth project to 40,000 bbl/d remains on time and on budget, with ~50% of the $300 million project capital to be complete by year-end 2025. Leismer is producing at facility capacity and the next growth phase will follow the planned May 2026 facility turnaround. The Company recently spud a six well-pair campaign on Pad L11 in anticipation of future growth.
Corner: Development plans are focused on a capital-efficient modular design with 15,000 bbl/d project phases. Development is expected to be self-funded while maintaining a strong balance sheet and a focus on shareholder returns. The Company anticipates the first phase to be sanction ready in 2026, contingent on a favorable macro environment, and development will provide substantial growth in 2029.
Hangingstone: Production of ~9,000 bbl/d (September 2025). Hangingstone has delivered ~$300 million in Operating Income to the organization over the last three years.
Duvernay Energy Corporation ("DEC"): Strong initial rates from a four well pad (30% working interest) with average IP30s of ~1,050 boe/d (89% Liquids). The wells rank among Alberta's top Duvernay wells in August. DEC completed a three well pad (100% working interest) in September, which will be on production in the fourth quarter. DEC is positioned for strong operational momentum with an exit target of 5,500 - 6,000 boe/d.
Resilient Producer
Pristine Financial Position: The Company has a Net Cash position of $93 million, Liquidity of $466 million (including $335 million cash) and a long-dated maturity of 2029 on its term debt.
Low Break-evens: Long-life, low decline assets afford Athabasca with a sustaining capital advantage. The Company's five-year Thermal Oil capital program, including Leismer growth initiatives, is fully funded within cash flow at ~US$50/bbl WTI. Long term Thermal Oil sustaining capital investment is estimated at ~C$8/bbl (five‐year annual average) to hold production flat.
2025 Corporate Guidance
Consolidated Production Outlook: The Company anticipates production at the upper end of its original guidance of 37,500, 39,500 boe/d. Thermal Oil production is expected to average ~35,500 bbl/d and DEC is expected to average ~3,500 boe/d with an exit target of 5,500 - 6,000 boe/d.
Thermal Oil Capital: The forecast capital budget for Thermal Oil is unchanged at ~$250 million, including sustaining capital and the Leismer expansion project. This $300 million expansion project (over three years) is highly economic (~$25,000/bbl/d capital efficiency) and provides flexibility with interim growth before achieving the regulatory approved 40,000 bbl/d capacity at the end of 2027. Athabasca's Thermal Oil capital projects are flexible, highly economic and have phased optionality on timing based on the macroeconomic environment. The Company anticipates being ~50% complete of total capital exposure for the expansion project by year-end 2025 and being substantially complete by year-end 2026.
Duvernay Energy Capital: The forecast capital budget is unchanged at ~$75 million and will drive production momentum in the fourth quarter of 2025. The capital program in DEC is flexible and designed to be self-funded. The Company has a deep inventory of ~444 gross future drilling locations with no near-term land expiries.
Free Cash Flow Focus: The Company forecasts consolidated Adjusted Funds Flow of $525 - $550 million1, including $475 - $500 million from its Thermal Oil assets. 2025 Thermal Oil Free Cash Flow is forecasted at ~$250 million and is planned to be returned to shareholders through share buybacks. Every +US$1/bbl move in West Texas Intermediate ("WTI") and Western Canadian Select ("WCS") heavy oil impacts annual Adjusted Funds Flow by ~$10 million and ~$17 million, respectively.
Corporate Consolidated Strategy
Value Creation: The Company's Thermal Oil division provides a differentiated liquids weighted growth platform supported by financial resiliency to execute on return of capital initiatives. Athabasca's subsidiary company, Duvernay Energy Corporation, is designed to enhance value for Athabasca's shareholders by providing a clear path for self-funded production and cash flow growth in the Kaybob Duvernay resource play. Athabasca (Thermal Oil) and DEC have independent strategies and capital allocation frameworks.
Steadfast Focus on Cash Flow Per Share Growth: Athabasca's disciplined capital allocation framework is designed to unlock shareholder value by prioritizing multi-year cash flow per share growth. The Company forecasts >20% compounded annual cash flow per share growth between 2025-2029 driven by investing in attractive capital projects and prioritizing share buybacks with 100% of Free Cash Flow. The Company sees significant intrinsic value not reflected in the current share price and intends to remain active with its share buyback strategy.
Athabasca (Thermal Oil) Strategy
Large Resource Base: Athabasca's top-tier assets underpin a strong Free Cash Flow outlook with low sustaining capital requirements. The long life, low decline asset base includes ~1.2 billion barrels of Proved plus Probable reserves and ~1 billion barrels of Contingent Resource.
Leismer Progressive Growth: This $300 million expansion project (over three years) is highly economic (~$25,000/bbl/d capital efficiency) and provides flexibility with interim growth targets to ~32,000 bbl/d in H2 2026 and ~35,000 bbl/d in H1 2027 before achieving the regulatory approved 40,000 bbl/d capacity at the end of 2027. On completion of the expansion project, the Company can maintain Leismer at 40,000 bbl/d for approximately fifty years (Proved plus Probable Reserves).
Sustaining Hangingstone: The asset is competitive and delivers meaningful cash flow contributions to the Company. The objective is to sustain production and maintain competitive netbacks ($39.26/bbl Q3 2025 Operating Netback).
Corner, Future Growth: The Company's Corner asset is a large de-risked oil sands asset adjacent to Leismer with 351 million barrels of Proved plus Probable reserves and 520 million barrels Contingent Resource (Best Estimate Unrisked). The asset has a 40,000 bbl/d regulatory approval. Development plans are focused on a capital-efficient modular design with 15,000 bbl/d project phases. Development is expected to be self-funded while maintaining a strong balance sheet and a focus on shareholder returns. The Company anticipates the first phase to be sanction ready in 2026, contingent on a favorable macro environment, and development will provide substantial growth in 2029.
Significant Multi-Year Free Cash Flow: Inclusive of the progressive growth across its portfolio Athabasca (Thermal Oil) expects to generate ~$1.8 billion of Free Cash Flow1 during the five-year time frame of 2025-29. Free Cash Flow will continue to support the Company's return of capital initiatives.
Sound Heavy Oil Fundamentals: Canadian heavy oil markets remain strong supported by the Trans Mountain Expansion pipeline and sustained global refining demand. This has resulted in tighter and less volatile WCS heavy differentials averaging ~US$11/bbl year to date. Athabasca is a direct beneficiary of structurally tighter differentials that are forecasted to hold in the coming years.
Thermal Oil Royalty Advantage: Athabasca has significant unrecovered capital balances on its Thermal Oil Assets that ensure a low Crown royalty framework (~6%1). Leismer is forecasted to remain pre-payout until late 20271 and Hangingstone is forecasted to remain pre-payout beyond 20301.
Tax Free Horizon Advantage: Athabasca (Thermal Oil) has $2.1 billion of valuable tax pools and does not forecast paying cash taxes this decade.
Duvernay Energy Strategy
Accelerating Value: DEC is an operated, private subsidiary of Athabasca (owned 70% by Athabasca and 30% by Cenovus Energy). DEC accelerates value realization for Athabasca's shareholders by providing a clear path for self-funded production and cash flow growth without compromising Athabasca's capacity to fund its Thermal Oil assets or its return of capital strategy.
Kaybob Duvernay Focused: Exposure to ~200,000 gross acres in the liquids rich and oil windows with ~444 gross future well locations, including ~46,000 gross acres with 100% working interest.
Self-Funded Growth: Near-term activity will be funded within Adjusted Funds Flow and DEC's credit facility. The Company has growth potential to ~20,000 boe/d (75% Liquids) by the late 2020s1.
Footnote: Refer to the "Reader Advisory" section within this news release for additional information on Non‐GAAP Financial Measures (e.g. Adjusted Funds Flow, Free Cash Flow, Net Cash, Liquidity) and production disclosure.1 Pricing assumptions: 2025 year to date actualized and US$60 WTI, US$12.50 WCS heavy differential, C$2 AECO, and 0.725 C$/US$ FX for balance of the year. 2026+ US$70 WTI, US$12.50 WCS heavy differential, C$3 AECO, and 0.725 C$/US$ FX.
Financial and Operational Highlights
Three months endedSeptember 30,
Nine months endedSeptember 30,
($ Thousands, unless otherwise noted)
2025
2024
2025
2024
CORPORATE CONSOLIDATED(1)
Petroleum and natural gas production (boe/d)(2)
39,599
38,909
38,807
36,675
Petroleum, natural gas and midstream sales
$
333,397
$
376,781
$
1,061,311
$
1,089,635
Operating Income(2)
$
151,835
$
180,184
$
439,132
$
465,070
Operating Income Net of Realized Hedging(2)(3)
$
144,650
$
175,755
$
430,698
$
460,511
Operating Netback ($/boe)(2)
$
42.50
$
49.12
$
41.71
$
46.36
Operating Netback Net of Realized Hedging ($/boe)(2)(3)
$
40.49
$
47.91
$
40.91
$
45.91
Capital expenditures
$
96,190
$
50,634
$
232,589
$
175,098
Cash flow from operating activities
$
157,414
$
187,143
$
382,199
$
398,864
per share - basic
$
0.32
$
0.35
$
0.76
$
0.72
Adjusted Funds Flow(2)
$
129,197
$
163,680
$
386,463
$
417,198
per share - basic
$
0.26
$
0.30
$
0.77
$
0.75
ATHABASCA (THERMAL OIL)
Bitumen production (bbl/d)(2)
36,590
34,853
35,942
33,390
Petroleum, natural gas and midstream sales
$
329,542
$
372,634
$
1,047,077
$
1,072,954
Operating Income(2)
$
142,631
$
163,694
$
413,750
$
425,837
Operating Netback ($/bbl)(2)
$
43.28
$
49.68
$
42.46
$
46.64
Capital expenditures
$
64,965
$
44,431
$
171,451
$
120,634
Adjusted Funds Flow(2)
$
121,131
$
150,088
$
364,581
$
383,214
Free Cash Flow(2)
$
56,166
$
105,657
$
193,130
$
262,580
DUVERNAY ENERGY(1)
Petroleum and natural gas production (boe/d)(2)
3,009
4,056
2,865
3,285
Percentage Liquids (%)(2)
75%
77%
73%
77%
Petroleum, natural gas and midstream sales
$
15,840
$
24,728
$
46,985
$
63,015
Operating Income(2)
$
9,204
$
16,490
$
25,382
$
39,233
Operating Netback ($/boe)(2)
$
33.25
$
44.20
$
32.45
$
43.59
Capital expenditures
$
31,225
$
6,203
$
61,138
$
54,464
Adjusted Funds Flow(2)
$
8,066
