Q3 2025 Highlights
Production of 116,201 boe/d (99.6% liquids)(1)(2)
Operating Earnings of $235.5 million ($1.10 / share)(1)(3)
Free Cash Flow of $93.8 million ($0.44 / share)(1)(3)
Three Months Ended(1)
Nine Months Ended(1)
($ millions, unless otherwise indicated)
September 30, 2025
September 30, 2024
June 30, 2025
September 30, 2025
September 30, 2024
WTI (US$ / bbl)
64.93
75.10
63.74
66.70
77.54
WCS Hardisty (C$ / bbl)
75.10
83.96
73.96
77.79
84.45
AECO 5A (C$ / gj)
0.60
0.65
1.60
1.42
1.38
Bitumen (bbls/d)
61,157
58,610
56,628
60,919
59,444
Heavy oil (bbls/d)
53,943
50,494
51,528
51,999
51,144
Condensate and light oil (bbls/d)
250
19,520
20,647
13,785
19,639
Total oil production (bbls/d)
115,350
128,624
128,803
126,703
130,227
Other NGLs (bbls/d)
234
11,680
12,302
8,082
11,615
Natural gas (mcf/d)
3,701
227,581
241,578
173,922
239,115
Production (boe/d)
116,201
178,235
181,368
163,772
181,695
Sales (boe/d)
115,852
178,391
183,806
164,558
182,350
% Liquids(2)
99.6 %
78.7 %
77.8 %
82.3 %
78.1 %
Oil and natural gas sales, net of blending costs and other income(3)
807.3
1,041.3
970.8
2,912.0
3,230.4
Royalties
128.1
134.0
104.6
370.9
454.2
Production and operating, Energy
37.4
45.7
58.0
171.1
189.4
Production and operating, Non-energy
104.3
140.2
161.9
421.9
425.1
Transportation and processing
92.0
140.2
150.5
384.9
432.8
General and administrative
22.0
25.5
27.5
74.2
72.7
Depletion, depreciation and amortization
151.3
226.3
177.3
544.3
677.2
Interest and finance costs(4)
36.7
64.0
65.5
161.3
198.5
Operating Earnings(3)
235.5
265.4
225.5
783.4
780.5
Other items(4)
(337.7)
77.4
(5.4)
(226.0)
264.7
Income and comprehensive income
573.2
188.0
230.9
1,009.4
515.8
Operating Earnings(3)
235.5
265.4
225.5
783.4
780.5
Non-cash items(4)
164.8
360.6
197.0
598.2
857.1
(Loss) on risk management and foreign exchange contracts, realized
(17.6)
(97.3)
(8.8)
(27.1)
(105.7)
Funds from Operations(3)
382.7
528.7
413.7
1,354.5
1,531.9
Capital expenditures
(280.5)
(319.6)
(378.4)
(1,010.2)
(903.1)
Decommissioning costs
(8.4)
(8.5)
(3.3)
(35.2)
(23.0)
Free Cash Flow(3)
93.8
200.6
32.0
309.1
605.8
Debt, net of cash and marketable securities(4)
(80.8)
2,449.9
2,247.5
(80.8)
2,449.9
Common shares (millions)
214.2
214.2
214.2
214.2
214.2
(1)
During the nine months ended September 30, 2025 the Company completed, through three separate transactions, the disposition of its Montney assets, which has been presented in the Company's interim financial statements and management's discussion and analysis for the three and nine months ended September 30, 2025 and 2024 as discontinued operations. The financial and operating results for these periods have been presented throughout this press release based on the aggregation of continuing and discontinued operations. The aggregation of continuing and discontinued financial results are non-GAAP measures and do not have a standardized meaning under IFRS® Accounting Standards (the "Accounting Standards"); see "Non-GAAP Measures and Ratios" section of this press release.
(2)
See "Product Type Production Information" section of this press release.
(3)
A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release.
(4)
See "Supplementary Financial Measures" Section of this press release.
Three Months Ended(1)
Nine Months Ended(1)
($/boe, unless otherwise indicated)
September 30, 2025
September 30, 2024
June 30, 2025
September 30, 2025
September 30, 2024
Oil and natural gas sales, net of blending costs and other income(2)
75.74
63.45
58.04
64.82
64.65
Royalties
12.02
8.16
6.25
8.26
9.09
Production and operating, Energy
3.51
2.78
3.47
3.81
3.79
Production and operating, Non-energy
9.79
8.54
9.68
9.39
8.51
Transportation and processing
8.63
8.54
9.00
8.57
8.66
General and administrative
2.06
1.55
1.64
1.65
1.45
Depletion, depreciation and amortization
14.20
13.79
10.60
12.12
13.55
Interest and finance costs
3.44
3.90
3.92
3.59
3.98
Operating Earnings(2)
22.09
16.19
13.48
17.43
15.62
Effective royalty rate (%)(2)
15.9 %
12.9 %
10.8 %
12.7 %
14.1 %
(1)
During the nine months ended September 30, 2025 the Company completed, through three separate transactions, the disposition of its Montney assets, which has been presented in the Company's interim financial statements and management's discussion and analysis for the three and nine months ended September 30, 2025 and 2024 as discontinued operations. The financial and operating results for these periods have been presented throughout this press release based on the aggregation of continuing and discontinued operations. The aggregation of continuing and discontinued financial results are non-GAAP measures and do not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release.
(2)
A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release.
Quarter Review and Near-Term Priorities
Strathcona's third quarter production of 116 Mboe / d reflected a 36% decrease from the second quarter, primarily due to the closing of the Company's disposition of its Montney business segment early in July 2025 (the "Montney Disposition"). Normalizing for the Montney Disposition, production from continuing operations increased 6% quarter-over-quarter, from 109 to 116 Mbbls / d. Beginning in the third quarter, Strathcona has disaggregated its Lloydminster reporting segment into Lloydminster Thermal and Lloydminster Conventional to better reflect the unique operating and financial characteristics of each segment.
In Cold Lake, production increased 8% quarter-over-quarter to 61 Mbbls / d, driven by the completion of a major turnaround at the company's Tucker property in mid-July. Production also benefited from four new lower drainage wells ("LDWs") on the 105 and 108 pads at Orion which were brought online in late September. Early results from the LDWs are encouraging, with current rates of approximately 900 bbls / d per well, contributing to Orion achieving all-time high monthly production in October of approximately 25 Mbbls / d at a steam-oil-ratio of 2.9x. Current capital activity is concentrated on the 8 well pair D01 West pad at Lindbergh, which is targeting first oil in mid-2026 and is expected to ramp to a peak rate of approximately 6,500 bbls / d, at a total cost of approximately $70 million.
In Lloydminster Thermal, production increased 13% quarter-over-quarter to 32 Mbbls / d, driven by continued strong performance at the Company's recent expansion at Meota West 2, exploiting the General Petroleum formation for the first time. Capital activity remains focused on the Company's Meota Central thermal oil project, which is currently 67% complete, on schedule and on budget. With the completion of drilling operations early in the fourth quarter, the vast majority of remaining project expenditures are on fixed price, lump-sum contracts, meaningfully de-risking cost overruns. Meota Central is targeting first oil in the fourth quarter of 2026 and is expected to deliver a peak oil rate of approximately 13 Mbbls / d at a total installed cost of approximately $360 million.
In Lloydminster Conventional, production was steady at approximately 22.5 Mbbls / d, in line with the prior quarter. Capital activity has been focused on Strathcona's Bodo-Cosine polymer flood, where the Company has been executing on a 21 well program since September.
Outlook
Strathcona's 2026 capital budget of $1.0 billion and production guidance of 115, 125 Mbbls / d is unchanged. Strathcona expects to provide a comprehensive update to its 2026 guidance and long-range plan following closing of the previously announced acquisition of the Vawn thermal project and undeveloped lands from Cenovus Energy Inc. ("Cenovus"), currently expected for early December, following completion by Cenovus of its previously announced acquisition of MEG Energy Corp.
Special Distribution Update
On November 6, 2025, Strathcona will file and arrange for delivery of the management information circular (the "Circular") and related materials for its special meeting of Strathcona's shareholders (the "Meeting") currently scheduled to be held on November 27, 2025 at 9:00 a.m. (MST), online via live audio webcast at https://meetings.lumiconnect.com/400-901-799-827. Shareholders of record as of the close of business on October 17, 2025, are entitled to receive notice of and to vote at the Meeting.
The purpose of the Meeting is to consider a special resolution to approve a statutory plan of arrangement (the "Plan of Arrangement") that would entitle shareholders to receive Strathcona's previously announced special distribution of $10.00 per share, or approximately $2.142 billion in the aggregate (the "Special Distribution"), as a dividend or, at their election, a return of capital. The details of the transaction will be described in the Circular and related materials, including an election form to be completed by registered shareholders wishing to receive the Special Distribution as a return of capital (as further described below). Shareholders are strongly urged to read these documents carefully, and to consult with their financial, tax and legal advisors prior to making, or determining not to make, any election with respect to the Special Distribution. These documents will also be available under Strathcona's profile on SEDAR+ at www.sedarplus.ca and on Strathcona's website at www.strathconaresources.com.
Making an Election for a Return of Capital
A registered shareholder may elect to receive the Special Distribution as a return of capital by depositing with Odyssey Trust Company, prior to the election deadline (as further described below), a duly completed and executed election form indicating such holder's election and, in the case of a registered shareholder whose common shares are represented by one or more certificates, a duly completed and executed letter of transmittal, the certificate(s) representing such shareholder's common shares and any such additional documents and instruments as Odyssey Trust Company or Strathcona may reasonably require.
Beneficial shareholders who wish to elect to receive the Special Distribution as a return of capital should follow any instructions provided to them by their intermediary (or should contact their intermediary if they did not receive any such instructions). Beneficial shareholders should note that their intermediaries may have earlier deadlines for making an election. Accordingly, such shareholders are urged to contact their intermediaries promptly to learn of the intermediary's applicable deadlines.
The deadline to make an election is currently scheduled as 5:00 p.m. (Calgary time) on December 16, 2025. The election deadline will be confirmed by press release following the Meeting and is expected to be at least five business days following such confirmation and at least three business days prior to the effective date of the Plan of Arrangement. Shareholders are encouraged to consult their brokers and financial advisors regarding the consequences of trading common shares on or immediately prior to the election deadline.
Timing of Special Distribution
If shareholder and court approval are obtained, Strathcona currently expects to effect the Special Distribution on or about December 22, 2025 (the "Effective Date"). As stated above, the Special Distribution is being completed as a Plan of Arrangement and it is not an ordinary course quarterly dividend. Strathcona's common shares will trade under its existing CUSIP and ISIN numbers until the close of business on the Effective Date, representing the entitlement of holders to the Special Distribution. Commencing at the open of markets on the next trading day, Strathcona's common shares will trade under a new CUSIP and ISIN, representing no entitlement to the Special Distribution. Shareholders are encouraged to consult their brokers and financial advisors regarding the consequences of trading common shares on or immediately prior to the effective date. Odyssey Trust Company shall deliver payment to each registered shareholder as soon as practicable after the effective date of the Special Distribution.
Impact of Canada Post Strike
Due to the ongoing Canada Post labour strike, it is possible that shareholders may experience a delay in receiving the Circular and related materials, including the election form, in respect of the Meeting. Shareholders are encouraged to access these documents electronically, as noted above. Registered shareholders experiencing a delay in receiving their documents may contact Odyssey Trust Company at 1-888-290-1175 (within North America) or 1-587-885-0960 (outside ...
