CALGARY, AB, Nov. 14, 2025 /CNW/ - Highwood Asset Management Ltd. ("Highwood" or the "Company") (TSXV:HAM) is pleased to announce financial and operating results for the three and nine months ended September 30, 2025. The Company also announces that its unaudited financial statements and associated Management's Discussion and Analysis ("MD&A") for the period ended September 30, 2025, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca.
Highlights
Average corporate production of 5,253 boe/d in Q3 2025, representing a decrease of approximately 6% from the second quarter of 2025 (average of 5,632 boe/d).
For the third quarter of 2025, Highwood delivered Adjusted EBITDA of $13.6 million ($0.89 per share) and adjusted funds flow of $11.9 million ($0.79 per share).(1)
Highwood deployed a different completion method on the 100/13-15-048-14W5 (the "13-15 well") in the Basal sand at Brazeau which was spud late in the second quarter. This utilized a jet pump which resulted in the well cleaning up approximately six weeks faster than previous Basal sand wells in the Brazeau area. The Company is encouraged by the results and will look to deploy this technique on future Basal sand drills in Brazeau.
Subsequent to September 30, 2025, the Company returned to Wilson Creek to complete its planned 2025 capital program by drilling 2 gross (1.8 net) booked locations in the fourth quarter of 2025. Both wells were drilled at or under budget, where reservoir exposure through the horizontal sections exceeded expectations. The two Wilson Creek Belly River wells will be completed in December and on production in early 2026. Industry activity in the Belly River continues to increase with continued strong results from peers.
Highwood's hedging program helps mitigate the volatility in commodity pricing with approximately 2,067 bbls/day of oil hedged through the remainder of 2025 at an average contract price of approximately $95.75CAD/bbl (WTI-NYMEX) and 2,050 bbls/day of oil hedged in 2026 at an average contract price of approximately $93.00CAD/bbl (WTI-NYMEX). Further, for the remainder of 2025 the Company has approximately 6,300GJ/day of natural gas hedged at an average contract price of approximately $3.18/GJ (AECO) and 6,600GJ/day of natural gas hedged in 2026 at an average contract price of approximately $3.17/GJ (AECO). The Company had a realized gain on commodity contracts of $2.4 million during the third quarter of 2025, and the market value of Highwood's commodity contracts was approximately $8 million at November 13, 2025.
The Company is focused on reducing Net Debt / EBITDA to increase flexibility for the Company moving forward. At September 30, 2025, Highwood had approximately $325 million in tax pools, including approximately $100 million in non-capital losses. Highwood does not anticipate being cash taxable for approximately two to three years.
Notes to Highlights:
(1)
See "Caution Respecting Reserves Information" and "Non-GAAP and other Specified Financial Measures".
Summary of Financial & Operating Results
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
%
2025
2024
%
Financial (expressed in thousands)
Petroleum and natural gas sales
$ 23,753
$ 34,201
(31)
$ 76,706
$ 102,019
(25)
Transportation pipeline revenues
462
662
(30)
1,638
2,049
(20)
Total revenues, net of royalties(1)
18,326
38,054
(52)
76,461
88,331
(13)
Income
248
16,105
(98)
15,988
26,036
(39)
Funds flow from operating activities (5)
11,605
17,795
(35)
36,904
52,343
(29)
Adjusted EBITDA (5)
13,559
20,252
(33)
42,403
60,149
(30)
Capital expenditures
7,459
20,748
(64)
49,647
55,452
(10)
Net debt (2)
114,832
102,080
12
Shareholder's equity (end of period)
148,206
130,285
14
Shares outstanding (end of period) (6)
14,504
14,871
(2)
Weighted-average basic shares outstanding
14,912
15,117
(1)
