Saturn Oil & Gas (SOIL) investor relations material

Executive summary

• Q1 2026 production averaged 43,116 BOE/d, surpassing analyst expectations for the seventh consecutive quarter and exceeding guidance by 1,600 BOE/d.

• Adjusted funds flow totaled CAD 107.2 million (CAD 0.59/share diluted), and free funds flow was CAD 62.5 million, both beating analyst consensus.

• Net debt declined 5% from year-end 2025, ending Q1 at approximately CAD 725 million, reflecting ongoing debt repayment.

• Realized oil prices surged to nearly $115/bbl in March due to geopolitical events, significantly boosting financial results.

• The company remains focused on debt reduction, capital discipline, and shareholder value through buybacks and per-share metric improvements.

Financial highlights

• Petroleum and natural gas sales were $270.2 million, up from $233.6 million in Q4 2025 but down from $278.1 million in Q1 2025.

• Adjusted EBITDA was $126.5 million, and operating netback, net of derivatives, was $132.7 million.

• Net income was a loss of $97.3 million, compared to a profit of $31.2 million in Q4 2025 and $37.8 million in Q1 2025.

• Operating costs were CAD 24.9/BOE, at midpoint of guidance but higher than previous quarter due to seasonality.

• Realized hedging loss of CAD 21 million (CAD 5.45/BOE) due to March oil price spike.

Outlook and guidance

• Q2 2026 capital expenditures expected between CAD 35–40 million, with production guidance of 40,000–41,000 BOE/d.

• Approximately CAD 20 million of H2 2026 capital accelerated into Q2 to capitalize on strong oil prices.

• Flexibility to increase full-year 2026 capital budget by up to 50% if oil prices remain elevated.

• Plans to add a fifth rig in West Central Saskatchewan to target high-impact, short cycle-time wells.