Strathcona Assets Ltd. Stories Third Quarter 2025 Monetary and Working Outcomes, Gives Particular Distribution Replace and Publicizes Quarterly Dividend

 Strathcona Assets Ltd. (“Strathcona” or the “Firm”) (TSX: SCR) at present reported its third quarter 2025 monetary and working outcomes and offered an replace on the beforehand introduced particular distribution. The Board of Administrators additionally declared a quarterly dividend of $0.30 per frequent share.

Q3 2025 Highlights

• Manufacturing of 116,201 boe/d (99.6% liquids)⁽¹⁾⁽²⁾
• Working Earnings of $235.5 million ($1.10 / share)⁽¹⁾⁽³⁾
• Free Money Circulation of $93.8 million ($0.44 / share)⁽¹⁾⁽³⁾

 

Quarter Assessment and Close to-Time period Priorities

Strathcona’s third quarter manufacturing of 116 Mboe / d mirrored a 36% lower from the second quarter, primarily as a result of closing of the Firm’s disposition of its Montney enterprise phase early in July 2025 (the “Montney Disposition”). Normalizing for the Montney Disposition, manufacturing from persevering with operations elevated 6% quarter-over-quarter, from 109 to 116 Mbbls / d. Starting within the third quarter, Strathcona has disaggregated its Lloydminster reporting phase into Lloydminster Thermal and Lloydminster Typical to raised mirror the distinctive working and monetary traits of every phase.

In Chilly Lake, manufacturing elevated 8% quarter-over-quarter to 61 Mbbls / d, pushed by the completion of a serious turnaround on the firm’s Tucker property in mid-July. Manufacturing additionally benefited from 4 new decrease drainage wells (“LDWs”) on the 105 and 108 pads at Orion which had been introduced on-line in late September. Early outcomes from the LDWs are encouraging, with present charges of roughly 900 bbls / d per properly, contributing to Orion attaining all-time excessive month-to-month manufacturing in October of roughly 25 Mbbls / d at a steam-oil-ratio of two.9x. Present capital exercise is focused on the 8 properly pair D01 West pad at Lindbergh, which is focusing on first oil in mid-2026 and is predicted to ramp to a peak charge of roughly 6,500 bbls / d, at a complete value of roughly $70 million.

In Lloydminster Thermal, manufacturing elevated 13% quarter-over-quarter to 32 Mbbls / d, pushed by continued robust efficiency on the Firm’s current growth at Meota West 2, exploiting the Common Petroleum formation for the primary time. Capital exercise stays centered on the Firm’s Meota Central thermal oil venture, which is at the moment 67% full, on schedule and on funds. With the completion of drilling operations early within the fourth quarter, the overwhelming majority of remaining venture expenditures are on fastened value, lump-sum contracts, meaningfully de-risking value overruns. Meota Central is focusing on first oil within the fourth quarter of 2026 and is predicted to ship a peak oil charge of roughly 13 Mbbls / d at a complete put in value of roughly $360 million.

In Lloydminster Typical, manufacturing was regular at roughly 22.5 Mbbls / d, in keeping with the prior quarter. Capital exercise has been centered on Strathcona’s Bodo-Cosine polymer flood, the place the Firm has been executing on a 21 properly program since September.

Outlook

Strathcona’s 2026 capital funds of $1.0 billion and manufacturing steering of 115 – 125 Mbbls / d is unchanged. Strathcona expects to supply a complete replace to its 2026 steering and long-range plan following closing of the beforehand introduced acquisition of the Vawn thermal venture and undeveloped lands from Cenovus Power Inc. (“Cenovus”), at the moment anticipated for early December, following completion by Cenovus of its beforehand introduced acquisition of MEG Power Corp.

Particular Distribution Replace

On November 6, 2025, Strathcona will file and prepare for supply of the administration data round (the “Round”) and associated supplies for its particular assembly of Strathcona’s shareholders (the “Assembly”) at the moment scheduled to be held on November 27, 2025 at 9:00 a.m. (MST), on-line through reside audio webcast at https://conferences.lumiconnect.com/400-901-799-827. Shareholders of report as of the shut of enterprise on October 17, 2025, are entitled to obtain discover of and to vote on the Assembly.

The aim of the Assembly is to think about a particular decision to approve a statutory plan of association (the “Plan of Association”) that will entitle shareholders to obtain Strathcona’s beforehand introduced particular distribution of $10.00 per share, or roughly $2.142 billion within the mixture (the “Particular Distribution”), as a dividend or, at their election, a return of capital. The main points of the transaction can be described within the Round and associated supplies, together with an election type to be accomplished by registered shareholders wishing to obtain the Particular Distribution as a return of capital (as additional described under). Shareholders are strongly urged to learn these paperwork fastidiously, and to seek the advice of with their monetary, tax and authorized advisors prior to creating, or figuring out to not make, any election with respect to the Particular Distribution. These paperwork may also be obtainable beneath Strathcona’s profile on SEDAR+ at www.sedarplus.ca and on Strathcona’s web site at www.strathconaresources.com.

Making an Election for a Return of Capital

A registered shareholder might elect to obtain the Particular Distribution as a return of capital by depositing with Odyssey Belief Firm, previous to the election deadline (as additional described under), a duly accomplished and executed election type indicating such holder’s election and, within the case of a registered shareholder whose frequent shares are represented by a number of certificates, a duly accomplished and executed letter of transmittal, the certificates(s) representing such shareholder’s frequent shares and any such extra paperwork and devices as Odyssey Belief Firm or Strathcona might moderately require.

Useful shareholders who want to elect to obtain the Particular Distribution as a return of capital ought to observe any directions offered to them by their middleman (or ought to contact their middleman if they didn’t obtain any such directions). Useful shareholders ought to word that their intermediaries might have earlier deadlines for making an election. Accordingly, such shareholders are urged to contact their intermediaries promptly to study of the middleman’s relevant deadlines.

The deadline to make an election is at the moment scheduled as 5:00 p.m. (Calgary time) on December 16, 2025. The election deadline can be confirmed by press launch following the Assembly and is predicted to be not less than 5 enterprise days following such affirmation and not less than three enterprise days previous to the efficient date of the Plan of Association. Shareholders are inspired to seek the advice of their brokers and monetary advisors concerning the results of buying and selling frequent shares on or instantly previous to the election deadline.

Timing of Particular Distribution

If shareholder and courtroom approval are obtained, Strathcona at the moment expects to impact the Particular Distribution on or about December 22, 2025 (the “Efficient Date”). As acknowledged above, the Particular Distribution is being accomplished as a Plan of Association and it isn’t an extraordinary course quarterly dividend. Strathcona’s frequent shares will commerce beneath its current CUSIP and ISIN numbers till the shut of enterprise on the Efficient Date, representing the entitlement of holders to the Particular Distribution. Commencing on the open of markets on the following buying and selling day, Strathcona’s frequent shares will commerce beneath a brand new CUSIP and ISIN, representing no entitlement to the Particular Distribution. Shareholders are inspired to seek the advice of their brokers and monetary advisors concerning the results of buying and selling frequent shares on or instantly previous to the efficient date. Odyssey Belief Firm shall ship cost to every registered shareholder as quickly as practicable after the efficient date of the Particular Distribution.

Affect of Canada Put up Strike

Because of the ongoing Canada Put up labour strike, it’s potential that shareholders might expertise a delay in receiving the Round and associated supplies, together with the election type, in respect of the Assembly. Shareholders are inspired to entry these paperwork electronically, as famous above. Registered shareholders experiencing a delay in receiving their paperwork might contact Odyssey Belief Firm at 1-888-290-1175 (inside North America) or 1-587-885-0960 (exterior North America) to acquire their particular person management numbers in an effort to vote their shares. Registered shareholders are inspired to vote their shares (i) through e-mail to proxy@odysseytrust.com or (ii) through the web at https://vote.odysseytrust.com. Useful shareholders are inspired to vote their shares through the web at www.proxyvote.com or through phone at 1- 800-474-7493 (English) or 1-800-474-7501 (French). It is suggested that any bodily types of proxy or voting instruction kinds be delivered through courier to make sure that they’re acquired in a well timed method. Besides as in any other case set forth within the directions to the election type, registered shareholders who want to make an election to obtain the Particular Distribution as a return of capital are inspired to finish and return their election type by e-mail at corp.actions@odysseytrust.com the place potential.

Quarterly Dividend

Strathcona’s board of administrators has declared a quarterly dividend of $0.30 per share to be paid on December 15, 2025 to shareholders of report on December 5, 2025. Funds to shareholders who are usually not residents of Canada can be web of any Canadian withholding taxes which may be relevant. Dividends paid by Strathcona are thought-about “eligible dividends” for Canadian tax functions.

Convention Name Particulars

Strathcona will host a convention name on November 6, 2025, beginning at 8:00AM MT (10:00AM ET), to overview the Firm’s third quarter 2025 outcomes.

Date: Thursday, November 6, 2025

Time: 10:00AM ET (8:00AM MT) 

URL Entry: To hitch with out operator help, register right here as much as quarter-hour earlier than the beginning time. Enter your identify and cellphone quantity to obtain an automatic call-back. 

Phone Entry: Alternatively, you’ll be able to be part of with operator help by dialing 1 (888) 510-2154 (North American Toll Free) and quote convention ID 37446.    

Webcast Hyperlink: https://app.webinar.web/WX2ODaeD5P3

For these unable to take part within the convention name on the scheduled time, a recording of the convention name can be obtainable for seven days following the decision and might be accessed by dialing 1 (888) 660-6345 and getting into the convention quantity 37446.

About Strathcona

Strathcona is one among North America’s quickest rising pure play heavy oil producers with operations centered on thermal oil and enhanced oil restoration. Strathcona is constructed on an modern method to progress achieved by means of the consolidation and improvement of long-life belongings. Strathcona’s frequent shares (image SCR) are listed on the Toronto Inventory Alternate (TSX).

For extra details about Strathcona, go to www.strathconaresources.com.

Non-GAAP Measures and Ratios

The monetary outcomes for the three and 9 months ended September 30, 2025 and September 30, 2024, are introduced under to reconcile persevering with and discontinued operations to complete outcomes. Whole ends in a non-GAAP measure utilized by Administration to evaluate the historic monetary efficiency of the full enterprise and isn’t supposed to be indicative of future outcomes.

 

“Oil and pure gasoline gross sales, web of mixing and different earnings” is calculated by deducting bought product and mixing prices from oil and pure gasoline gross sales, gross sales of bought product, midstream income and different earnings. Administration makes use of this metric to isolate the income related to the Firm’s manufacturing after accounting for the unavoidable value of mixing.

Oil and pure gasoline gross sales, web of mixing, can be mirrored on a per boe foundation calculated utilizing gross sales volumes.

“Efficient royalty charge” is calculated by dividing royalties by oil and pure gasoline gross sales and sale of bought product, web of mixing prices and bought product. This metric permits administration to research the motion of royalty bills in relation to realized and benchmark commodity costs.

“Working Earnings – Discontinued” is taken into account a key monetary metric for evaluating the profitability of Strathcona’s discontinued operations. “Working Earnings – Persevering with” is a GAAP monetary measure as it’s utilized by the Chief Working Determination Makers to judge revenue or loss and is introduced within the condensed consolidated interim monetary statements for the three and 9 months ended September 30, 2025 and 2024. A quantitative reconciliation of Working Earnings – Discontinued to essentially the most instantly comparable GAAP monetary measure, Oil and pure gasoline gross sales, is introduced under.

“Funds from Operations” is utilized by administration to research working efficiency and offers a sign of the funds generated by Strathcona’s principal enterprise to both fund working actions, re-invest to both preserve or develop the enterprise or make debt repayments. Funds from Operations is derived from Working Earnings and adjusted for DD&A, finance prices, good points and losses on threat administration contracts – realized and good points and losses on overseas alternate – realized.

“Free Money Circulation” signifies funds obtainable for deleveraging, funding future progress, or shareholder returns. Free Money Circulation is derived from Working Earnings and adjusted for DD&A, finance prices, good points and losses on threat administration contracts – realized, good points and losses on overseas alternate – realized, capital expenditures and decommissioning prices.

Quantitative reconciliations of Funds from Operations and Free Money Circulation for each persevering with and discontinued operations to essentially the most instantly comparable GAAP monetary measure, Working Earnings, are set forth under.

 

The next desk reconciles working earnings, funds from operations and free money movement from persevering with and discontinued operations:

Supplementary Monetary Measures

“Curiosity and finance prices” is an aggregation of curiosity and finance prices. Administration makes use of this metric to acquire a fulsome understanding of all curiosity and accretion prices the Firm is topic to.

“Different gadgets” is an aggregation of threat administration contracts, overseas alternate, transaction associated prices, unrealized (acquire) on Sable remediation fund, (acquire) on sale of belongings, loss on settlement of different obligations, and deferred tax expense from each persevering with and discontinued operations. They’re introduced in such a fashion to yield prominence to key monetary metrics resembling earnings and complete earnings, Funds from Operations and Free Money Circulation.

“Non-cash gadgets” is an aggregation of depletion, depreciation and amortization, finance prices, and different earnings – decommissioning authorities grant.

“Debt, web of money and marketable securities” is comprised of debt much less money and marketable securities, as derived beneath the Accounting Requirements.

Presentation of Oil and Gasoline Data

This press launch incorporates numerous references to the abbreviation “boe” which implies barrels of oil equal. All boe conversions on this press launch are derived by changing gasoline to grease on the ratio of six thousand cubic toes (“mcf”) of pure gasoline to 1 barrel (“bbl”) of crude oil. Boe could also be deceptive, significantly if utilized in isolation. A boe conversion charge of 1 bbl : 6 mcf is predicated on an vitality equivalency conversion methodology primarily relevant on the burner tip and doesn’t characterize a worth equivalency on the wellhead. Provided that the worth ratio of oil in comparison with pure gasoline primarily based on at the moment prevailing costs is considerably completely different than the vitality equivalency ratio of 1 bbl : 6 mcf, using a conversion ratio of 1 bbl : 6 mcf could also be deceptive as a sign of worth.

References on this press launch to preliminary manufacturing charges and different short-term manufacturing charges and check outcomes are helpful in confirming the presence of hydrocarbons, nevertheless, such charges are usually not determinative of the charges at which such wells will start manufacturing and decline thereafter and are usually not indicative of long-term efficiency or of final restoration. Whereas encouraging, readers are cautioned to not place reliance on such charges in calculating mixture manufacturing for the Firm or the belongings for which such charges are offered. A strain transient evaluation or well-test interpretation has not been carried out in respect of all wells. Accordingly, the check outcomes must be thought-about to be preliminary.

Product Sort Manufacturing Data

The Firm’s quarterly and year-to-date common day by day manufacturing volumes, and the references to “pure gasoline”, “crude oil” and “condensate”, reported on this press launch include the next product sorts, as outlined in NI 51-101 and utilizing a conversion ratio of 6 mcf : 1 bbl the place relevant:

Ahead-Trying Data

Sure statements contained on this press launch represent forward-looking data inside the which means of relevant securities legal guidelines. The forward-looking data on this press launch is predicated on Strathcona’s present inside expectations, estimates, projections, assumptions and beliefs. Such forward-looking data is just not a assure of future efficiency and entails identified and unknown dangers, uncertainties and different elements which will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking data. The Firm believes the fabric elements, expectations and assumptions mirrored within the forward-looking data are cheap as of the time of such data, however no assurance might be on condition that these elements, expectations and assumptions will show to be right, and such forward-looking data included on this press launch shouldn’t be unduly relied upon.

The usage of any of the phrases “anticipate”, “goal”, “anticipate”, “intend”, “estimate”, “goal”, “ongoing”, “might”, “will”, “venture”, “consider”, “relies upon”, “may” and comparable expressions are supposed to establish forward-looking data. Specifically, however with out limiting the generality of the foregoing, this press launch incorporates forward-looking data pertaining to the next: the Firm’s enterprise technique and future plans; the expectation that the 8 properly pair D01 West pad at Lindbergh will ramp to a peak charge of roughly 6,500 bbls / d starting in mid-2026, at a complete value of roughly $71 million; the expectation that the Meota Central venture will obtain first oil within the fourth quarter of 2026 and ship a peak oil charge of roughly 13 Mbbls / d at a complete put in value of roughly $360 million; our 2026 outlook together with our anticipated capital funds of $1.0 billion and manufacturing steering of 115 – 125 Mbbls / d; the anticipated timing of updates to our 2026 steering and long-range plan; the anticipated timing of completion of our acquisition of the Vawn thermal venture and undeveloped lands from Cenovus; the anticipated timing for submitting and supply of the Round; the anticipated timing of the Particular Distribution and all deadlines in respect thereof.

All forward-looking data displays Strathcona’s beliefs and assumptions primarily based on data obtainable on the time the relevant forward-looking data is disclosed and in mild of the Firm’s present expectations with respect to things like: Strathcona’s capability to generate adequate money movement to fund debt reimbursement and dividend funds; Strathcona’s capability to declare and pay dividends; the success of Strathcona’s operations and progress and growth initiatives; expectations concerning manufacturing progress, future properly manufacturing charges and reserve volumes; expectations concerning Strathcona’s capital program, together with the outlook for basic financial tendencies, trade tendencies, prevailing and future commodity costs, overseas alternate charges and rates of interest; the flexibility of Strathcona to pursue, full and fund the Particular Distribution, together with the anticipated sources of funding therefor and the anticipated impression thereof on Strathcona’s monetary place; the flexibility of Strathcona to acquire all approvals required to finish the Particular Distribution in a well timed method and on the timeline set forth on this press launch; the completion of Cenovus’ beforehand introduced acquisition of MEG Power Corp.; the provision of third occasion providers; prevailing and future royalty regimes and tax legal guidelines; future properly manufacturing charges and reserve volumes; fluctuations in vitality costs primarily based on worldwide demand and geopolitical occasions; expectations concerning the impression of tariffs on Strathcona’s operations and its capability to successfully mitigate the impression thereof; the impression of inflation; the integrity and reliability of Strathcona’s belongings; decommissioning obligations; Strathcona’s capability to adjust to its monetary covenants; and the governmental, regulatory and authorized atmosphere. Administration believes that its assumptions and expectations mirrored within the forward-looking data contained herein are cheap primarily based on the data obtainable on the date such data is offered and the method used to arrange the data. Nonetheless, it can not guarantee readers that these expectations will show to be right.

The forward-looking data included on this press launch is just not a assure of future efficiency and entails identified and unknown dangers, uncertainties and different elements which will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking data, together with, with out limitation: adjustments in commodity costs; adjustments within the demand for or provide of Strathcona’s merchandise; the shortcoming of Strathcona to acquire the approvals required to finish the Particular Distribution, in a well timed method or in any respect; the continued impression, or additional deterioration, in international financial and market circumstances, together with from inflation and/or sure geopolitical conflicts, resembling the continuing Russia/Ukraine battle and the battle within the Center East, and different heightened geopolitical dangers, together with the imposition of tariffs or different commerce limitations, and the flexibility of the Firm to hold on operations as contemplated in mild of the foregoing; determinations by the Group of the Petroleum Exporting Nations and different nations as to manufacturing ranges; unanticipated working outcomes or manufacturing declines; adjustments in tax or environmental legal guidelines, local weather change, royalty charges or different regulatory issues; adjustments in Strathcona’s improvement plans or by third occasion operators of Strathcona’s properties; competitors from different producers; lack of ability to retain drilling rigs and different providers; failure to appreciate the anticipated advantages of the Firm’s acquisitions; incorrect evaluation of the worth of acquisitions; delays ensuing from or lack of ability to acquire required regulatory approvals; elevated debt ranges or debt service necessities; inflation; adjustments in overseas alternate charges; inaccurate estimation of Strathcona’s oil and gasoline reserve and contingent useful resource volumes; restricted, unfavourable or an absence of entry to capital markets or different sources of capital; elevated prices; an absence of satisfactory insurance coverage protection; the impression of opponents; and the opposite elements mentioned beneath the “Danger Elements” part in Strathcona’s Administration’s Dialogue & Evaluation and Annual Data Kind, every for the yr ended December 31, 2024, and now and again in Strathcona’s public disclosure paperwork, which can be found at www.sedarplus.ca.

Declaration of dividends is on the sole discretion of the board of administrators of Strathcona and can proceed to be evaluated on an ongoing foundation. There are dangers which will lead to Strathcona altering, suspending or discontinuing its quarterly dividends, together with adjustments to its free money movement, working outcomes, capital necessities, monetary place, debt ranges, market circumstances or company technique and the necessity to adjust to necessities beneath its credit score settlement and relevant legal guidelines respecting the declaration and cost of dividends. There aren’t any assurances as to the persevering with declaration and cost of future dividends or the quantity or timing of any such dividends.

Administration authorised the capital funds and manufacturing steering contained herein as of the date of this press launch. The aim of the capital funds and manufacturing steering is to help readers in understanding Strathcona’s anticipated and focused monetary place and efficiency, and this data might not be applicable for different functions.

This earnings launch incorporates data which will represent future-oriented monetary data or monetary outlook data (collectively, “FOFI”) about Strathcona’s potential monetary efficiency, monetary place or money flows, all of which is topic to the identical assumptions, threat elements, limitations and {qualifications} as set forth above. Readers are cautioned that the assumptions used within the preparation of such data, though thought-about cheap on the time of preparation, might show to be imprecise or inaccurate and, as such, undue reliance shouldn’t be positioned on FOFI. Strathcona’s precise outcomes, efficiency and achievements may differ materially from these expressed in, or implied by, FOFI. Strathcona has included FOFI in an effort to present readers with a extra full perspective on Strathcona’s future operations and administration’s present expectations regarding Strathcona’s future efficiency. Readers are cautioned that such data might not be applicable for different functions.

The foregoing dangers shouldn’t be construed as exhaustive. The forward-looking data contained on this press launch speaks solely as of the date of this press launch and Strathcona doesn’t assume any obligation to publicly replace or revise such forward-looking data to mirror new occasions or circumstances, besides as could also be required pursuant to relevant legal guidelines. Any forward-looking data contained herein is expressly certified by this cautionary assertion.

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