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The Print
5 days ago
- Business
- The Print
ICAI to review financial statements of IndusInd Bank
'It has been decided in the FRRB Board meeting today that FRRB of ICAI will undertake the review of the financial statements and the statutory auditor's reports of the IndusInd Bank Limited for the financial years 2023–24 and 2024–25,' ICAI President Charanjot Singh Nanda told PTI on Thursday. The institute's Financial Reporting Review Board (FRRB) will carry out the review. New Delhi, May 29 (PTI) The Institute of Chartered Accountants of India (ICAI) will review fraud-hit IndusInd Bank's financial statements for 2023-24 and 2024-25. FRRB conducts the review of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others. Also, FRRB assesses compliance with various guidance notes on accounting and auditing, and master circulars/directions issued by the Reserve Bank of India (RBI). Starting with a March 10 disclosure about a potential hit to the net worth because of incorrect recognition of derivative trades over the last two years, the last two months have been tumultuous for IndusInd Bank. In March, the bank reported a Rs 1,979 crore accounting lapse in its derivative portfolio, followed by its internal audit review finding Rs 674 crore incorrectly recorded as interest from microfinance business, besides a Rs 595 crore 'unsubstantiated balances' in 'other assets' of balance sheet. On Wednesday, markets regulator Sebi barred former CEO of IndusInd Bank, Sumant Kathpalia, and four other senior officials from accessing the securities markets in connection with an alleged insider trading in the bank's shares. PTI RAM NKD BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Mint
5 days ago
- Business
- Mint
IndusInd Bank crisis: ICAI to review financial statements of fraud-hit private lender for FY24, FY25
The Institute of Chartered Accountants of India (ICAI) will review fraud-hit IndusInd Bank's financial statements for 2023-24 and 2024-25. The institute's Financial Reporting Review Board (FRRB) will carry out the review. "It has been decided in the FRRB Board meeting today that FRRB of ICAI will undertake the review of the financial statements and the statutory auditor's reports of the IndusInd Bank Limited for the financial years 2023–24 and 2024–25," ICAI President Charanjot Singh Nanda told PTI on Thursday. FRRB conducts the review of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others. FRRB assesses compliance with guidance notes on accounting and auditing, and master circulars/directions issued by the Reserve Bank of India (RBI). Starting with a March 10 disclosure about a potential hit to the net worth because of incorrect recognition of derivative trades over the last two years, the last two months have been tumultuous for IndusInd Bank. In March, the bank reported a ₹ 1,979 crore accounting lapse in its derivative portfolio, followed by its internal audit review finding ₹ 674 crore incorrectly recorded as interest from microfinance business, besides a ₹ 595 crore 'unsubstantiated balances' in 'other assets' of balance sheet. On Wednesday, markets regulator Sebi barred former CEO of IndusInd Bank, Sumant Kathpalia, and four other senior officials from accessing the securities markets in connection with an alleged insider trading in the bank's shares. IndusInd Bank reported a net loss of ₹ 2,328.9 crore on a consolidated basis for the fourth quarter ended March 31, 2025, mainly on account of higher provisioning and lower income. The private sector bank has been embroiled in accounting lapses, fraud in microfinance portfolio and balance sheet disclosures during the March quarter of FY'25, which triggered an internal audit review, top-level resignations, and a forensics probe. The bank had a consolidated net profit of ₹ 2,349.15 crore in the March quarter of 2023-24. The bank has made provisioning of ₹ 2,522 crore during the March quarter of FY25, up from ₹ 950 crore provisioning made in the corresponding period in FY'24. Bank's interest income during the quarter fell 13 per cent to ₹ 10,634 crore from ₹ 12,199 crore in the March quarter of FY'24. For the full 2024-25 fiscal, IndusInd Bank reported over 71 per cent drop in net profit to ₹ 2,576 crore. In FY'24, the bank had a net profit of ₹ 8,977 crore.
Cision Canada
16-05-2025
- Business
- Cision Canada
Strathcona Resources Ltd. Reports First Quarter 2025 Financial and Operating Results, Announces Quarterly Dividend and Investment in MEG Energy Corp.
CALGARY, AB, May 15, 2025 /CNW/ - Strathcona Resources Ltd. ("Strathcona" or the "Company") (TSX: SCR) today reported its first quarter 2025 financial and operational results and disclosed an investment in MEG Energy Corp. The Board of Directors also declared a quarterly dividend of $0.30 per share Q1 2025 Highlights Production of 194,609 boe/d (70% oil and condensate, 76% liquids) (1) Operating Earnings of $322.4 million ($1.51 / share) Free Cash Flow of $184.0 million ($0.86 / share) (2) Three Months Ended ($ millions, unless otherwise indicated) March 31, 2025 March 31, 2024 December 31, 2024 WTI (US$ / bbl) 71.42 76.96 70.27 WCS Hardisty (C$ / bbl) 84.30 77.77 80.75 AECO 5A (C$ / GJ) 2.05 2.36 1.40 Bitumen (bbls/d) 65,016 60,150 59,732 Heavy oil (bbls/d) 50,488 51,835 50,997 Condensate and light oil (bbls/d) 20,682 19,279 20,763 Total oil production (bbls/d) 136,186 131,264 131,492 Other NGLs (bbls/d) 11,837 11,738 12,980 Natural gas (mcf/d) 279,517 252,720 256,386 Production (boe/d) 194,609 185,122 187,203 Sales (boe/d) 194,884 182,862 184,120 % Oil and condensate 70 % 71 % 70 % % Liquids (1) 76 % 77 % 77 % Oil and natural gas sales, net of blending costs and other income (2) 1,133.7 1,004.3 1,024.6 Royalties 138.2 126.2 208.5 Production and operating – Energy 75.7 78.8 58.7 Production and operating – Non-energy 155.5 135.4 138.5 Transportation and processing 142.4 143.4 144.2 General and administrative 24.7 22.0 28.4 Depletion, depreciation and amortization 215.7 221.8 196.3 Interest and finance costs (3) 59.1 67.7 60.0 Operating Earnings 322.4 209.0 190.0 Other items (3) 117.1 108.4 102.1 Income and comprehensive income 205.3 100.6 87.9 Operating Earnings 322.4 209.0 190.0 Non-cash items (3) 236.4 244.1 217.3 (Loss) gain on risk management and foreign exchange contracts – realized (0.7) 2.5 (1.8) Funds from Operations (2) 558.1 455.6 405.5 Capital expenditures (350.6) (286.1) (392.5) Decommissioning costs (23.5) (11.6) (12.7) Free Cash Flow (2) 184.0 157.9 0.3 Debt, net of cash and marketable securities (3) 2,416.8 2,642.5 2,461.6 Common shares (millions) 214.2 214.2 214.2 (1) See "Presentation of Oil and Gas Information" section of this press release. (2) A non-GAAP financial measure which does not have a standardized meaning under IFRS® Accounting Standards (the "Accounting Standards"); see "Specified Financial Measures" section of this press release. (3) See "Specified Financial Measures" section of this press release. (1) A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Specified Financial Measures" section of this press release. Quarter Review and Near-Term Priorities Production of 195 Mboe / d was up 4% quarter-over-quarter, driven by record production at Cold Lake. Operating earnings of $322 million, also a record, reflected a 70% increase from the prior quarter despite flat WTI prices, driven by higher production, higher realized prices and lower royalties. Capital expenditures were in-line with expectations while decommissioning expenditures of $24 million reflected seasonally high activity levels and are expected to average approximately $5 million per quarter for the remainder of 2025. In Cold Lake, production of approximately 65 Mbbls / d was driven by strong performance at Tucker, with both the new D-East lower drainage wells and C-South well pairs outperforming initial expectations. Taken together, the two pads have added approximately 9 Mbbls / d of production at a combined steam-oil-ratio of 2.3x since late 2024, increasing production and lowering Tucker's operating costs by approximately $5 per barrel versus the first quarter of 2024. In Lloydminster Thermal, activity is focused on the construction of the new Meota Central processing facility, which is currently 22% complete, on schedule and on budget. 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, the company's annual drilling program has yielded strong results at Winter, which reached a 10-year high production level of over 4,000 bbls / d in April. In the Montney, activity was focused on the tie-in of the 5-well 5-21 pad at Kakwa and 4-well 11-05 pad at Grande Prairie. Both pads are performing in-line with expectations. As detailed in Strathcona's May 14, 2025 press release, subsequent to quarter end Strathcona entered into definitive agreements to sell substantially all of its Montney assets to three purchasers for approximately $2.84 billion. Subsequent to quarter-end, Strathcona received approval for an expanded credit facility of approximately $3.255 billion (up from approximately $2.75 billion at March 31, 2025). The amended and restated credit agreement includes a $250 million accordion feature, allowing the credit facility to expand to up to approximately $3.555 billion subject to certain conditions. Upon closing the Montney dispositions, Strathcona expects to have positive net cash (net of marketable securities) and more than $3.0 billion in available liquidity. Dividend Increase Strathcona's board of directors has declared a quarterly dividend of $0.30 per share to be paid on June 23, 2025 to shareholders of record on June 13, 2025, reflecting a 15% increase compared to the first quarter of 2025 (20% cumulative since the beginning of 2025). The increase reflects a combination of the 4% revision to annual oil production guidance and the reduction in operating costs per barrel at Tucker (detailed in Strathcona's May 14, 2025 press release) each of which have served to lower Strathcona's full-cycle breakeven price. Future dividend increases may be considered based on further growth in production and / or reductions in full-cycle breakeven prices. Payments to shareholders who are not residents of Canada will be net of any Canadian withholding taxes that may be applicable. Dividends paid by Strathcona are considered "eligible dividends" for Canadian tax purposes. Investment in MEG Energy Corp. During the first and second quarters of 2025 Strathcona acquired 23.4 million shares in MEG Energy Corp. (TSX: MEG, " MEG") through open-market purchases, equating to 9.20% of the current shares outstanding or 9.98% of the shares outstanding after giving effect to MEG's current normal course issuer bid. Conference Call Details Strathcona will host a conference call on Friday May 16, 2025 starting at 9:00AM MT (11:00ET), to review the Company's first quarter 2025 results. Date: Friday, May 16, 2025 Time: 11:00AM ET (9:00AM MT) URL Entry: To join without operator assistance, register here: up to 15 minutes before the start time. Enter your name and phone number to receive an automated call-back. Telephone Entry: Alternatively, you can join with operator assistance by dialing 1 (888) 510-2154 (North American Toll Free) and quote conference ID 05133 Webcast Link: For those unable to participate in the conference call at the scheduled time, a recording of the conference call will be available for seven days following the call and can be accessed by dialing 1 (888) 660-6345 and entering the conference number 05133. About Strathcona Strathcona is one of North America's fastest growing oil and gas producers with operations focused on thermal oil and enhanced oil recovery. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life oil and gas assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX). For more information about Strathcona, visit SPECIFIED FINANICAL MEASURES Non-GAAP Financial Measures and Ratios Non-GAAP financial measures and ratios are used internally by management to assess the performance of the Company. They also provide investors with meaningful metrics to assess the Company's performance compared to other companies in the same industry. However, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Investors are cautioned that these measures should not be construed as an alternative to financial measures determined in accordance with GAAP and these measures should not be considered to be more meaningful than GAAP measures in evaluating the Company's performance. The term " Oil and natural gas sales, net of blending" is calculated by deducting purchased product and blending costs from oil and natural gas sales and sales of purchased product. Management uses this metric to isolate the revenue associated with the Company's production after accounting for the unavoidable cost of blending. Oil and natural gas sales, net of blending, is also reflected on a per boe basis calculated using sales volumes. Management also calculates " Bitumen blend per bbl" and " Heavy oil, blended and raw per bbl" by deducting the associated purchased product and blending cost from oil and natural gas sales and sales of purchased product and dividing by the respective sales volume. This ratio is useful to management when analyzing realized pricing against benchmark commodity prices. The term " Effective royalty rate" is calculated by dividing royalties by oil and natural gas sales and sales of purchased product, net of blending costs and purchased product. This metric allows management to analyze the movement of royalty expenses in relation to realized and benchmark commodity prices. " Funds from Operations" is used by management to analyze operating performance and provides an indication of the funds generated by Strathcona's principal business to either fund operating activities, re-invest to either maintain or grow the business or make debt repayments. Funds from Operations is derived from Operating Earnings and adjusted for depletion, depreciation and amortization, finance costs, (loss) gain on risk management contracts - realized and realized gain (loss) - foreign exchange. " Free Cash Flow" indicates funds available for deleveraging, funding future growth, or shareholder returns. Free Cash Flow is derived from Operating Earnings and adjusted for DD&A, finance costs, (loss) gain on risk management contracts - realized and realized gain (loss) – foreign exchange, capital expenditures and decommissioning costs. A quantitative reconciliation of Funds from Operations and Free Cash Flow to the most directly comparable GAAP financial measure, Operating Earnings, is set forth below. Supplementary Financial Measures "Interest and finance costs" is an aggregation of interest and finance costs, as derived under IFRS Accounting Standards. " Other items" is comprised of loss (gain) on risk management contracts, foreign exchange (gain) loss, transaction related costs, unrealized loss on Sable remediation fund, unrealized (gain) on marketable securities, and deferred tax expense, as derived under IFRS Accounting Standards. Three Months Ended ($ millions, unless otherwise indicated) March 31, 2025 March 31, 2024 December 31, 2024 Loss (gain) on risk management contracts 78.0 39.7 (10.2) Foreign exchange (gain) loss (1.0) 20.4 47.7 Transaction related costs 0.6 0.1 0.3 Unrealized loss on Sable remediation fund — 0.1 — Unrealized (gain) on marketable securities (22.7) — — Deferred tax expense 62.2 48.1 64.3 Other items 117.1 108.4 102.1 " Non-cash items" is comprised of depletion, depreciation and amortization, and finance costs, as derived under IFRS Accounting Standards. "Debt, net of cash and marketable securities" is comprised of debt less cash and marketable securities, as derived under IFRS Accounting Standards" Presentation of Oil and Gas Information This press release contains various references to the abbreviation "boe" which means barrels of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ("mcf") of natural gas to one barrel ("bbl") of crude oil. Boe may be misleading, particularly if used in isolation. A boe conversion rate of 1 bbl : 6 mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 bbl : 6 mcf, utilizing a conversion ratio of 1 bbl : 6 mcf may be misleading as an indication of value. References in this press release to initial production rates and other short-term production rates and test results are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating aggregate production for the Company or the assets for which such rates are provided. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the test results should be considered to be preliminary. Forward-Looking Information Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. The forward-looking information in this press release is based on Strathcona's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Strathcona believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon. The use of any of the words "expect", "target", "anticipate", "intend", "estimate", "objective", "ongoing", "may", "will", "project", "believe", "depends", "could" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: Strathcona's business strategy and future plans; expected operating strategy; the construction of the new Meota Central processing facility, including budget, production and timing expectations; the expected sale of substantially all of Strathcona's Montney assets, including expected future cost savings and impacts on net cash and liquidity; the declaration of future dividends, including any increases thereto. All forward-looking information reflects Strathcona's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of Strathcona's current expectations with respect to such things as: the success of Strathcona's operations and growth and expansion projects; expectations regarding production growth, future well production rates and reserve volumes; expectations regarding Strathcona's capital program; the completion of transactions to dispose of substantially all of Strathcona's Montney assets; the availability of Strathcona's tax pools; Strathcona's ability to generate sufficient cash flow to fund debt repayment and declare and pay dividends; expectations regarding the impact of tariffs on Strathcona's operations and its ability to effectively mitigate the impact thereof; the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; the availability of third party services; prevailing and future royalty regimes and tax laws; future well production rates and reserve volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Strathcona's assets; decommissioning obligations; Strathcona's ability to comply with its financial covenants; and the governmental, regulatory and legal environment, including expectations regarding the current and future carbon tax regime and regulations. In addition, certain forward-looking information with respect to Strathcona's 2025 guidance assumes commodity prices and exchange rates of: US$70 / bbl WTI, US$13 / bbl WCS-WTI differential, 1.38 USD-CAD and C$3 / GJ AECO. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct. The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, without limitation: changes in commodity prices; changes in the demand for or supply of Strathcona's products; the continued impact, or further deterioration in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing Russia/Ukraine conflict, the conflict in the Middle East, and other heightened geopolitical risks, including the imposition of tariffs or other trade barriers, and the ability of Strathcona to carry on operations as contemplated in light of the foregoing; determinations by the Organization of the Petroleum Exporting Countries and other countries as to production levels; unanticipated operating results or production declines; changes in tax or environmental laws, climate change, royalty rates or other regulatory matters; changes in Strathcona's development plans or by third party operators of Strathcona's properties; failure to achieve anticipated results of its operations; competition from other producers; inability to retain drilling rigs and other services; failure to complete or realize the anticipated benefits of Strathcona's acquisitions, dispositions or corporate reorganizations, including disposition of substantially all of Strathcona's Montney assets and the acquisition of HRT; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Strathcona's oil and gas reserve and contingent resource volumes; limited, unfavorable or a lack of access to capital markets or other sources of capital; increased costs; a lack of adequate insurance coverage; the impact of competitors; and the other factors discussed under the "Risk Factors" section in Strathcona's Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2024 and from time to time in Strathcona's public disclosure documents, which are available under Strathcona's profile on SEDAR+ at Declaration of dividends is at the sole discretion of the board of directors of Strathcona and will continue to be evaluated on an ongoing basis. There are risks that may result in Strathcona changing, suspending or discontinuing its quarterly dividends, including changes to its free cash flow, operating results, capital requirements, financial position, debt levels, market conditions or corporate strategy and the need to comply with requirements under its credit agreement and applicable laws respecting the declaration and payment of dividends. There are no assurances as to the continuing declaration and payment of future dividends or the amount or timing of any such dividends. This earnings release contains information that may constitute future-oriented financial information or financial outlook information (collectively, "FOFI") about Strathcona's prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. Strathcona's actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. Strathcona has included FOFI in order to provide readers with a more complete perspective on Strathcona's future operations and management's current expectations relating to Strathcona's future performance. Readers are cautioned that such information may not be appropriate for other purposes. The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Strathcona does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement. Product Type Production Information National Instruments 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") includes condensate within the natural gas liquids product type. The Company has disclosed condensate as combined with light oil and separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this presentation provides a more accurate description of its operations and results therefrom. References to "oil and condensate" in this press release refer to, collectively, light and medium crude oil, heavy crude oil, bitumen and natural gas liquids. References to "natural gas" in this press release refer to conventional natural gas. References to "liquids" in this press release refer to, collectively, bitumen, heavy oil, condensate and light oil (comprised of condensate and light oil) and other natural gas liquids (comprised of ethane, propane and butane only). The Company's quarterly and annual average daily production volumes, and the references to "natural gas", "crude oil" and "condensate", reported in this press release consist of the following product types, as defined in NI 51-101 and using a conversion ratio of 6 mcf : 1 bbl where applicable: SOURCE Strathcona Resources Ltd.
Yahoo
15-05-2025
- Business
- Yahoo
Strathcona Resources Ltd. Announces Sale of Montney Business for $2.84 Billion and Acquisition of Hardisty Rail Terminal
CALGARY, AB, May 14, 2025 /PRNewswire/ - Strathcona Resources Ltd. ("Strathcona" or the "Company") (TSX: SCR) is pleased to announce that it has entered into definitive agreements to sell substantially all of its Montney assets for approximately $2.84 billion, pursuant to three separate transactions: The sale of its Kakwa asset (the "Kakwa Sale") to ARC Resources Ltd. for approximately $1,695 million in total value ($1,650 million in cash and approximately $45 million in assumed lease obligations) The sale of its Grande Prairie asset (the "Grande Prairie Sale") for approximately $850 million in total value ($750 million in cash and approximately $100 million in assumed lease obligations) The sale of its Groundbirch asset (the "Groundbirch Sale") to Tourmaline Oil Corp. ("Tourmaline") for $291.5 million in common shares of Tourmaline Taken together, the disposed assets generated $149 million of operating earnings in 2024 (12% of total Strathcona YE 2024 operating earnings, excluding interest and other corporate items) and had a YE 2024 proved PV-10 before-tax of approximately $2.3 billion (15% of total Strathcona YE 2024 proved PV-10), while the combined sale price represents approximately 33% of Strathcona's current enterprise value. The table below shows Strathcona's consolidated results for the year ended December 31, 2024, less the Montney at and for the year ended December 31, 2024(1)Consolidated Montney Dispositions Consolidated excl. Montney Dispositions Production (Mboe / d) 183 72 111 % Oil and Condensate 71 % 28 % 100 % Operating Earnings ($ millions)Field Operating Income(2) 2,203.5 482.9 1,720.6 General and administrative (101.1) (25.0) (76.1) Depletion, depreciation and amortization (856.7) (278.5) (578.2) Finance costs (38.2) (30.5) (7.7) Operating Earnings, excluding Corporate 1,207.5 148.9 1,058.6 Interest Expense and Other Corporate Items (237.0) - (237.0) Operating Earnings $970.5 148.9 821.6 Reserves (MMboe)PDP 367 131 236 Reserve Life Index (Years)(3) 5 5 6 1P 1,534 365 1,169 Reserve Life Index (Years)(4) 23 14 29 2P 2,655 635 2,020 Reserve Life Index (Years)(5) 40 24 50 Before-Tax PV-10 ($ millions)PDP 6,113 1,159 4,954 1P 14,971 2,322 12,649 2P 21,997 4,092 17,905 Total Enterprise Value ("TEV") ($ millions)Market Capitalization as of 5/14/2025 5,811.25,811.2 Debt(6) 2,461.6 2,579.1 (117.5) Lease and Other Obligations(7) 347.0 257.4 89.6 TEV(2) 8,619.8 2,836.5 5,783.3 TEV / Operating Earnings, excluding Corporate 7.1x 19.0x 5.5x TEV / 1P Before-Tax PV-10 0.58x 1.22x 0.46x (1) See "2024 Segment Information" section of this press release. (2) A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Specified Financial Measures" section of this press release. (3) Calculated by dividing gross PDP reserves by 2024 production. (4) Calculated by dividing gross 1P reserves by 2024 production. (5) Calculated by dividing gross 2P reserves by 2024 production. (6) Assumes cash and share disposition proceeds of $2,691.5 million are used to repay $2,579.1 of Debt and $112.4 million of Other Obligations pertaining to an asset-backed financing agreement on certain facility processing interests. (7) As at December 31, 2024 approximately $145.0 of lease liabilities were outstanding relating to the Montney segment. These liabilities transfer to the purchasers on close of each of the transactions; Strathcona will also repay $112.4 million of Other Obligations pertaining to an asset-backed financing agreement on certain facility processing interests. The Kakwa Sale is expected to occur early in the third quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. The Grande Prairie Sale is expected to occur early in the third quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. The Groundbirch sale is expected to occur in the second quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. The share consideration is not subject to any lock-up periods beyond a four-month statutory hold period. Strathcona is delighted to be a shareholder of Tourmaline and has no plans to dispose of the shares at this time. Strathcona has $5.5 billion of tax pools at March 31, 2025 and does not expect any cash taxes to result from the Montney dispositions. Strathcona would like to thank its entire Montney team, led by President Al Grabas, for their invaluable contributions in growing the Montney business from just 5 Mboe / d in January 2017 to 72 Mboe / d in 2024. Strathcona would also like to congratulate each of the purchasers, each of whom are well positioned to maximize value for the assets going forward given the hand-in-glove fit with each of their existing operations and their long track records of first-class operations in the surrounding areas. Updated Guidance and Long-Range Plan Upon completion of the Montney dispositions, Strathcona will be a pure-play heavy oil company producing approximately 120 Mbbls / d (100% oil, 95 Mbbls / d thermal, 25 Mbbls / d conventional) with a 50-year 2P reserve life index and positive net cash (including marketable securities). Updated 2025 Guidance Strathcona expects Q2 2025 production of 180 Mboe / d, which includes an approximately 7 Mbbls / d impact from a major turnaround (5-year cycle) at Tucker. Full year 2025 production is expected to average 150 – 160 Mboe / d, with 120 to 125 Mbbls / d expected in the third and fourth quarters post the Montney dispositions. The full year range includes an approximately 5 Mbbls / d increase compared to original 2025 guidance, normalized for the Montney dispositions, driven by outperformance at Cold Lake. Full year capital expenditures are estimated at $1.2 billion (from $1.35 billion previously), which reflects the removal of Montney capital from the second half of 2025. Updated Long-Range Plan Pro forma for the Montney dispositions, Strathcona's current long-range plans sees growth to 195 Mbbls / d by 2031, reflecting an 8% 7-year CAGR versus 2024. Upon reaching this plateau level, Strathcona's 2P Reserve Life Index is expected to still be approximately 25 years based on current 2P reserves (assuming no reserve additions between year-end 2024 and 2031). Substantially all production growth is expected to come from Strathcona's thermal properties, with thermal production in Cold Lake and Lloydminster reaching approximately 170 Mbbls / d in 2031. Strathcona's current long-range plan only reflects the development of existing projects and brownfield expansions, and does not include greenfield projects. Capital expenditures are expected to average $0.9 - $1.0 billion in 2026 and $1.1 - $1.2 billion in 2027 – 2029, before returning to sustaining expected capital of $0.8 and $0.85 billion in 2030 and 2031. In light of low current oil prices, Strathcona's updated long-range plan reflects a deferral of the sanction of the Lindbergh Phase 2 expansion project from 2026 to 2027 to prioritize near-term free cash flow generation. Strathcona will remain nimble in allocating capital and will update its plans over time based on its view of risk-adjusted returns, bearing in mind commodity prices and capital market dynamics. A full reconciliation of Strathcona's current long-range plan to the plan presented by the Company at its 2024 Investor Day is shown below. Production (Full-Year Annualized) (Mboe / d)2024 Investor Day Montney Dispositions Revisions Lindbergh Phase 2 Deferral Long-Range Plan 2025 190 (75) 5.0 - 120.0 2026 200 (80) 5.0 - 125.0 2027 220 (80) 2.5 - 142.5 2028 240 (90) - - 150.0 2029 265 (95) - (10) 160.0 2030 290 (95) - (10) 185.0 2031 195.0 Capital Expenditures (Full-Year Annualized) (C$mm)2024 Investor Day MontneyDispositions Revisions Lindbergh Phase 2 Deferral Long-Range Plan 2025 $1,350 ($380) - - $970 2026 $1,500 - $1,600 ($450) - ($150) $900 - $1,000 2027 $1,500 - $1,600 ($500) - $100 $1,100 - $1,200 2028 $1,500 - $1,600 ($400) - - $1,100 - $1,200 2029 $1,500 - $1,600 ($450) - $50 $1,100 - $1,200 2030 $1,250 ($450) - - $800 2031 $850 Hardisty Rail Terminal Acquisition Also in the first quarter of 2025, Strathcona signed a definitive agreement to acquire the Hardisty Rail Terminal ("HRT") for cash consideration of approximately $45 million and closed on the acquisition early in the second quarter. HRT, located in Hardisty, Alberta, is the largest crude-by-rail terminal in Western Canada with capacity of 262 Mbbls / d and year-to-date throughput of approximately 50 Mbbls / d. HRT is directly connected to the Hardisty Diluent Recovery Unit, an innovative facility which separates diluent from raw bitumen prior to rail transportation, allowing for a competitive netback for upstream producers versus pipeline alternatives. HRT has an estimated replacement cost of approximately $200 million and free cash flow over the past twelve months of approximately $12 million, 80% of which is underpinned by long-term take-or-pay contracts with an investment grade counterparty. Together with Strathcona's Hamlin Terminal, Strathcona now owns and operates rail terminals servicing approximately 80% of the total current crude-by-rail volumes in western Canada, allowing for meaningful economies of scale. The HRT acquisition is a continuation of Strathcona's countercyclical acquisition strategy focused on core area consolidation. While HRT is only 19% utilized today, it has been up to 82% utilized historically during periods of tight pipeline egress, providing Strathcona with a natural hedge against future egress bottlenecks. First Quarter Earnings Release and Conference Call Strathcona will release its first quarter earnings after market on May 15, 2025, with a conference call to follow the morning of May 16, 2025. Advisors BMO Capital Markets acted as lead financial advisor, and CIBC Capital Markets and Jefferies acted as financial advisors to Strathcona on the Kakwa Sale. BMO Capital Markets acted as exclusive financial advisor and RBC Capital Markets acted as strategic advisor to Strathcona on the Grande Prairie Sale. Scotiabank acted as lead financial advisor and RBC Capital Markets and ATB Capital Markets acted as financial advisors on the Groundbirch Sale. National Bank Financial acted as financial advisor to Strathcona on the Hardisty Rail Terminal acquisition. Blake, Cassels & Graydon LLP acted as legal advisor to Strathcona in respect of each of the transactions. About Strathcona Strathcona is one of North America's fastest growing oil and gas producers with operations focused on thermal oil and enhanced oil recovery. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life oil and gas assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX). For more information about Strathcona, visit 2024 Segment Information The following table presents financial performance by reportable segment for the year ended December 31, 2024. Certain information related to general and administrative and finance costs has been represented to allocate by segment to conform with presentation as at March 31, 2025. Operating earnings is the metric used by the Company's Chief Operating Decision Makers to evaluate segment profit or loss. For the Year Ended ($ millions, unless otherwise indicated) Cold Lake Segment Lloydminster Segment Montney Segment Corporate Consolidated December 31, 2024 December 31,2024 December 31, 2024 December 31, 2024 December 31, 2024 Production volumesBitumen (bbl/d) 59,516 — — — 59,516 Heavy oil (bbl/d) — 51,107 — — 51,107 Condensate and light oil (bbl/d) — 42 19,880 — 19,922 Other NGLs (bbl/d) — 2 11,956 — 11,958 Natural gas (mcf/d) — 1,232 242,224 — 243,456 Production volumes (boe/d) 59,516 51,357 72,207 — 183,080 Sales volumes (boe/d) 59,491 51,097 72,206 — 182,794 Segment revenues Oil and natural gas sales 2,576.0 1,797.1 963.0 0.3 5,336.4 Sales of purchased product 18.3 26.0 — 30.7 75.0 Blending costs (929.9) (151.6) — — (1,081.5) Purchased product (18.2) (25.8) — (31.0) (75.0) Oil and natural gas sales, net of blending(1) 1,646.2 1,645.7 963.0 — 4,254.9 Segment expensesRoyalties 385.3 181.7 95.7 — 662.7 Production and operating – Energy 127.9 112.8 7.4 — 248.1 Production and operating – Non-energy 196.0 203.7 163.9 — 563.6 Transportation and processing 87.7 276.2 213.1 — 577.0 Field Operating Income(1) 849.3 871.3 482.9 — 2,203.5 Depletion, depreciation and amortization 167.1 411.1 278.5 16.8 873.5 General and administrative 27.8 48.3 25.0 — 101.1 Finance costs 3.4 4.3 30.5 50.1 88.3 Other income — — — (0.1) (0.1) Interest expense — — — 170.2 170.2 Current income tax (recovery) — — — — — Operating Earnings 651.0 407.6 148.9 (237.0) 970.5 Loss (gain) on risk management contracts - realized — — — 107.0 107.0 (Gain) loss on risk management contracts - unrealized — — — (63.0) (63.0) Foreign exchange loss (gain) - realized — — — 0.5 0.5 Foreign exchange loss (gain) - unrealized — — — 67.7 67.7 Transaction related costs — — — 1.0 1.0 Unrealized (gain) loss on Sable remediation fund — — — (0.1) (0.1) Loss on settlement of other obligations — — — 4.4 4.4 Deferred tax expense — — — 249.3 249.3 Income and comprehensive income 603.7 (1) A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Specified Financial Measures" section of this press release. SPECIFIED FINANICAL MEASURES Non-GAAP Financial Measures and Ratios This press release makes reference to certain financial measures and ratios, including field operating income and oil and natural gas sales, net of blending, which are not standardized financial measures under IFRS® Accounting Standards (the "Accounting Standards") and might not be comparable to similar financial measures disclosed by other issuers. Non-GAAP financial measures and ratios are used internally by management to assess the performance of the Company. They also provide investors with meaningful metrics to assess the Company's performance compared to other companies in the same industry. Investors are cautioned that these measures should not be construed as an alternative to financial measures determined in accordance with generally accepted accounting principles ("GAAP") and these measures should not be considered to be more meaningful than GAAP measures in evaluating the Company's performance. The term "Oil and natural gas sales, net of blending" is calculated by deducting purchased product and blending costs from oil and natural gas sales and sales of purchased product. Management uses this metric to isolate the revenue associated with the Company's production after accounting for the unavoidable cost of blending. A quantitative reconciliation of Oil and natural gas sales, net of blending to the most directly comparable GAAP financial measure, Oil and natural gas sales, is contained under the heading "2024 Segment Information" of this press release. "Field Operating Income" is a common metric used in the oil and natural gas industry to assess the profitability and efficiency of the Company's field operations. The following table reconciles "Field Operating Income" to the nearest GAAP Ended ($ millions, unless otherwise indicated) December 31, 2024 Oil and natural gas sales 5,336.4 Sales of purchased products 75.0 Purchased product (75.0) Blending costs (1,081.5) Oil and natural gas sales, net of blending 4,254.9 Royalties 662.7 Production and operating 811.7 Transportation and processing 577.0 Field Operating Income 2,203.5 Supplementary Financial Measures "TEV" is an aggregation of the Company's market capitalization, debt and lease and other obligations. Market capitalization is determined by multiplying outstanding common shares by the common share price. Debt and other obligations are as derived under IFRS Accounting Standards. Presentation of Oil and Gas Information In respect of 2024 year-end reserves information contained in this press release, Strathcona's reserves have been evaluated in accordance with Canadian reserve evaluation standards under National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). McDaniel & Associates Consultants Ltd., an independent petroleum consulting firm based in Calgary, Alberta, has evaluated the petroleum and natural gas reserves associated with Strathcona's interests in Alberta, British Columbia and Saskatchewan. Such estimates constitute forward-looking information, which are based on values that Strathcona's management believes to be reasonable and are subject to the same limitations discussed under "Forward-Looking Information" below. A complete filing of our oil and gas reserves and other oil and gas information presented in accordance with NI 51-101 are included in Strathcona's Annual Information Form for the year ended December 31, 2024, which can be found at and This press release contains various references to the abbreviation "boe" which means barrels of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ("mcf") of natural gas to one barrel ("bbl") of crude oil. Boe may be misleading, particularly if used in isolation. A boe conversion rate of 1 bbl : 6 mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 bbl : 6 mcf, utilizing a conversion ratio of 1 bbl : 6 mcf may be misleading as an indication of value. References in this press release to initial production rates and other short-term production rates and test results are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating aggregate production for the Company or the assets for which such rates are provided. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the test results should be considered to be preliminary. Forward-Looking Information Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. The forward-looking information in this press release is based on Strathcona's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Strathcona believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon. The use of any of the words "expect", "target", "anticipate", "intend", "estimate", "objective", "ongoing", "may", "will", "project", "believe", "depends", "could" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: Strathcona's business strategy and future plans; expected operating strategy; the expected sale of substantially all of Strathcona's Montney assets, including the expected timing and pro forma effects; Strathcona's plans for its shareholdings in Tourmaline; the expected tax treatment of Strathcona's disposition of the Montney assets, including the use and availability of tax pools; in respect of HRT, the estimated replacement cost and expected free cash flow over the next twelve months; the expected benefits of the HRT acquisition, including HRT"s ability to provide Strathcona with a natural hedge against future egress bottlenecks; Strathcona's 2025 production, reserves, liquidity and capital spending guidance; the impact of the major turnaround at Tucker ; Strathcona's long-range plan, including production growth to 195 Mbbls / d by 2031, capital expenditures averaging $0.9 - $1.0 billion in 2026 and $1.1 to 1.2 billion in 2027-2029, before returning to sustaining expected capital of $0.8 and $0.85 billion in 2030 and 2031; the deferral of the sanction of the Lindbergh Phase 2 expansion project to 2027; and the full reconciliation of Strathcona's long-range plan showing expectations in respect of production and capital expenditures. All forward-looking information reflects Strathcona's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of Strathcona's current expectations with respect to such things as: the success of Strathcona's operations and growth and expansion projects; expectations regarding production growth, future well production rates and reserve volumes; expectations regarding Strathcona's capital program; the completion of transactions to dispose of Strathcona's Montney assets; the availability of Strathcona's tax pools; expectations regarding the benefits of the HRT acquisition; Strathcona's ability to generate sufficient cash flow to fund debt repayment and declare and pay dividends; expectations regarding the impact of tariffs on Strathcona's operations and its ability to effectively mitigate the impact thereof; the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; the availability of third party services; prevailing and future royalty regimes and tax laws; future well production rates and reserve volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Strathcona's assets; decommissioning obligations; Strathcona's ability to comply with its financial covenants; and the governmental, regulatory and legal environment, including expectations regarding the current and future carbon tax regime and regulations. In addition, certain forward-looking information with respect to Strathcona's 2025 guidance assumes commodity prices and exchange rates of: US$70 / bbl WTI, US$13 / bbl WCS-WTI differential, 1.38 USD-CAD and C$3 / GJ AECO. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct. The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, without limitation: changes in commodity prices; changes in the demand for or supply of Strathcona's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing Russia/Ukraine conflict, the conflict in the Middle East, and other heightened geopolitical risks, including the imposition of tariffs or other trade barriers, and the ability of Strathcona to carry on operations as contemplated in light of the foregoing; determinations by the Organization of the Petroleum Exporting Countries and other countries as to production levels; unanticipated operating results or production declines; changes in tax or environmental laws, climate change, royalty rates or other regulatory matters; changes in Strathcona's development plans or by third party operators of Strathcona's properties; failure to achieve anticipated results of its operations; competition from other producers; inability to retain drilling rigs and other services; failure to complete or realize the anticipated benefits of Strathcona's acquisitions, dispositions or corporate reorganizations, including disposition of substantially all of Strathcona's Montney assets and the acquisition of HRT; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Strathcona's oil and gas reserve and contingent resource volumes; limited, unfavorable or a lack of access to capital markets or other sources of capital; increased costs; a lack of adequate insurance coverage; the impact of competitors; and the other factors discussed under the "Risk Factors" section in Strathcona's Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2024 and from time to time in Strathcona's public disclosure documents, which are available under Strathcona's profile on SEDAR+ at Management approved the capital expenditure and production guidance and long-range plan contained herein as of the date of this press release. The purpose of the capital expenditure and production guidance and long-range plan is to assist readers in understanding Strathcona's expected and targeted financial position and performance, and this information may not be appropriate for other purposes. This release contains information that may constitute future-oriented financial information or financial outlook information (collectively, "FOFI") about Strathcona's prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. Strathcona's actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. Strathcona has included FOFI in order to provide readers with a more complete perspective on Strathcona's future operations and management's current expectations relating to Strathcona's future performance. Readers are cautioned that such information may not be appropriate for other purposes. The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Strathcona does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement. View original content to download multimedia: SOURCE Strathcona Resources Ltd. 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Cision Canada
15-05-2025
- Business
- Cision Canada
Strathcona Resources Ltd. Announces Sale of Montney Business for $2.84 Billion and Acquisition of Hardisty Rail Terminal
CALGARY, AB, May 14, 2025 /CNW/ - Strathcona Resources Ltd. ("Strathcona" or the "Company") (TSX: SCR) is pleased to announce that it has entered into definitive agreements to sell substantially all of its Montney assets for approximately $2.84 billion, pursuant to three separate transactions: The sale of its Kakwa asset (the "Kakwa Sale") to ARC Resources Ltd. for approximately $1,695 million in total value ($1,650 million in cash and approximately $45 million in assumed lease obligations) The sale of its Grande Prairie asset (the "Grande Prairie Sale") for approximately $850 million in total value ($750 million in cash and approximately $100 million in assumed lease obligations) The sale of its Groundbirch asset (the "Groundbirch Sale") to Tourmaline Oil Corp. ("Tourmaline") for $291.5 million in common shares of Tourmaline Taken together, the disposed assets generated $149 million of operating earnings in 2024 (12% of total Strathcona YE 2024 operating earnings, excluding interest and other corporate items) and had a YE 2024 proved PV-10 before-tax of approximately $2.3 billion (15% of total Strathcona YE 2024 proved PV-10), while the combined sale price represents approximately 33% of Strathcona's current enterprise value. The table below shows Strathcona's consolidated results for the year ended December 31, 2024, less the Montney dispositions. (1) See "2024 Segment Information" section of this press release. (2) A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Specified Financial Measures" section of this press release. (3) Calculated by dividing gross PDP reserves by 2024 production. (4) Calculated by dividing gross 1P reserves by 2024 production. (5) Calculated by dividing gross 2P reserves by 2024 production. (6) Assumes cash and share disposition proceeds of $2,691.5 million are used to repay $2,579.1 of Debt and $112.4 million of Other Obligations pertaining to an asset-backed financing agreement on certain facility processing interests. (7) As at December 31, 2024 approximately $145.0 of lease liabilities were outstanding relating to the Montney segment. These liabilities transfer to the purchasers on close of each of the transactions; Strathcona will also repay $112.4 million of Other Obligations pertaining to an asset-backed financing agreement on certain facility processing interests. The Kakwa Sale is expected to occur early in the third quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. The Grande Prairie Sale is expected to occur early in the third quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. The Groundbirch sale is expected to occur in the second quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. The share consideration is not subject to any lock-up periods beyond a four-month statutory hold period. Strathcona is delighted to be a shareholder of Tourmaline and has no plans to dispose of the shares at this time. Strathcona has $5.5 billion of tax pools at March 31, 2025 and does not expect any cash taxes to result from the Montney dispositions. Strathcona would like to thank its entire Montney team, led by President Al Grabas, for their invaluable contributions in growing the Montney business from just 5 Mboe / d in January 2017 to 72 Mboe / d in 2024. Strathcona would also like to congratulate each of the purchasers, each of whom are well positioned to maximize value for the assets going forward given the hand-in-glove fit with each of their existing operations and their long track records of first-class operations in the surrounding areas. Updated Guidance and Long-Range Plan Upon completion of the Montney dispositions, Strathcona will be a pure-play heavy oil company producing approximately 120 Mbbls / d (100% oil, 95 Mbbls / d thermal, 25 Mbbls / d conventional) with a 50-year 2P reserve life index and positive net cash (including marketable securities). Strathcona expects Q2 2025 production of 180 Mboe / d, which includes an approximately 7 Mbbls / d impact from a major turnaround (5-year cycle) at Tucker. Full year 2025 production is expected to average 150 – 160 Mboe / d, with 120 to 125 Mbbls / d expected in the third and fourth quarters post the Montney dispositions. The full year range includes an approximately 5 Mbbls / d increase compared to original 2025 guidance, normalized for the Montney dispositions, driven by outperformance at Cold Lake. Full year capital expenditures are estimated at $1.2 billion (from $1.35 billion previously), which reflects the removal of Montney capital from the second half of 2025. Updated Long-Range Plan Pro forma for the Montney dispositions, Strathcona's current long-range plans sees growth to 195 Mbbls / d by 2031, reflecting an 8% 7-year CAGR versus 2024. Upon reaching this plateau level, Strathcona's 2P Reserve Life Index is expected to still be approximately 25 years based on current 2P reserves (assuming no reserve additions between year-end 2024 and 2031). Substantially all production growth is expected to come from Strathcona's thermal properties, with thermal production in Cold Lake and Lloydminster reaching approximately 170 Mbbls / d in 2031. Strathcona's current long-range plan only reflects the development of existing projects and brownfield expansions, and does not include greenfield projects. Capital expenditures are expected to average $0.9 - $1.0 billion in 2026 and $1.1 - $1.2 billion in 2027 – 2029, before returning to sustaining expected capital of $0.8 and $0.85 billion in 2030 and 2031. In light of low current oil prices, Strathcona's updated long-range plan reflects a deferral of the sanction of the Lindbergh Phase 2 expansion project from 2026 to 2027 to prioritize near-term free cash flow generation. Strathcona will remain nimble in allocating capital and will update its plans over time based on its view of risk-adjusted returns, bearing in mind commodity prices and capital market dynamics. A full reconciliation of Strathcona's current long-range plan to the plan presented by the Company at its 2024 Investor Day is shown below. Production (Full-Year Annualized) (Mboe / d) Capital Expenditures (Full-Year Annualized) (C$mm) Hardisty Rail Terminal Acquisition Also in the first quarter of 2025, Strathcona signed a definitive agreement to acquire the Hardisty Rail Terminal ("HRT") for cash consideration of approximately $45 million and closed on the acquisition early in the second quarter. HRT, located in Hardisty, Alberta, is the largest crude-by-rail terminal in Western Canada with capacity of 262 Mbbls / d and year-to-date throughput of approximately 50 Mbbls / d. HRT is directly connected to the Hardisty Diluent Recovery Unit, an innovative facility which separates diluent from raw bitumen prior to rail transportation, allowing for a competitive netback for upstream producers versus pipeline alternatives. HRT has an estimated replacement cost of approximately $200 million and free cash flow over the past twelve months of approximately $12 million, 80% of which is underpinned by long-term take-or-pay contracts with an investment grade counterparty. Together with Strathcona's Hamlin Terminal, Strathcona now owns and operates rail terminals servicing approximately 80% of the total current crude-by-rail volumes in western Canada, allowing for meaningful economies of scale. The HRT acquisition is a continuation of Strathcona's countercyclical acquisition strategy focused on core area consolidation. While HRT is only 19% utilized today, it has been up to 82% utilized historically during periods of tight pipeline egress, providing Strathcona with a natural hedge against future egress bottlenecks. First Quarter Earnings Release and Conference Call Strathcona will release its first quarter earnings after market on May 15, 2025, with a conference call to follow the morning of May 16, 2025. Advisors BMO Capital Markets acted as lead financial advisor, and CIBC Capital Markets and Jefferies acted as financial advisors to Strathcona on the Kakwa Sale. BMO Capital Markets acted as exclusive financial advisor and RBC Capital Markets acted as strategic advisor to Strathcona on the Grande Prairie Sale. Scotiabank acted as lead financial advisor and RBC Capital Markets and ATB Capital Markets acted as financial advisors on the Groundbirch Sale. National Bank Financial acted as financial advisor to Strathcona on the Hardisty Rail Terminal acquisition. Blake, Cassels & Graydon LLP acted as legal advisor to Strathcona in respect of each of the transactions. About Strathcona Strathcona is one of North America's fastest growing oil and gas producers with operations focused on thermal oil and enhanced oil recovery. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life oil and gas assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX). For more information about Strathcona, visit 2024 Segment Information The following table presents financial performance by reportable segment for the year ended December 31, 2024. Certain information related to general and administrative and finance costs has been represented to allocate by segment to conform with presentation as at March 31, 2025. Operating earnings is the metric used by the Company's Chief Operating Decision Makers to evaluate segment profit or loss. For the Year Ended ($ millions, unless otherwise indicated) Cold Lake Segment Lloydminster Segment Montney Segment Corporate Consolidated December 31, 2024 December 31, 2024 December 31, 2024 December 31, 2024 December 31, 2024 Production volumes Bitumen (bbl/d) 59,516 — — — 59,516 Heavy oil (bbl/d) — 51,107 — — 51,107 Condensate and light oil (bbl/d) — 42 19,880 — 19,922 Other NGLs (bbl/d) — 2 11,956 — 11,958 Natural gas (mcf/d) — 1,232 242,224 — 243,456 Production volumes (boe/d) 59,516 51,357 72,207 — 183,080 Sales volumes (boe/d) 59,491 51,097 72,206 — 182,794 Segment revenues Oil and natural gas sales 2,576.0 1,797.1 963.0 0.3 5,336.4 Sales of purchased product 18.3 26.0 — 30.7 75.0 Blending costs (929.9) (151.6) — — (1,081.5) Purchased product (18.2) (25.8) — (31.0) (75.0) Oil and natural gas sales, net of blending (1) 1,646.2 1,645.7 963.0 — 4,254.9 Segment expenses Royalties 385.3 181.7 95.7 — 662.7 Production and operating – Energy 127.9 112.8 7.4 — 248.1 Production and operating – Non-energy 196.0 203.7 163.9 — 563.6 Transportation and processing 87.7 276.2 213.1 — 577.0 Field Operating Income (1) 849.3 871.3 482.9 — 2,203.5 Depletion, depreciation and amortization 167.1 411.1 278.5 16.8 873.5 General and administrative 27.8 48.3 25.0 — 101.1 Finance costs 3.4 4.3 30.5 50.1 88.3 Other income — — — (0.1) (0.1) Interest expense — — — 170.2 170.2 Current income tax (recovery) — — — — — Operating Earnings 651.0 407.6 148.9 (237.0) 970.5 Loss (gain) on risk management contracts - realized — — — 107.0 107.0 (Gain) loss on risk management contracts - unrealized — — — (63.0) (63.0) Foreign exchange loss (gain) - realized — — — 0.5 0.5 Foreign exchange loss (gain) - unrealized — — — 67.7 67.7 Transaction related costs — — — 1.0 1.0 Unrealized (gain) loss on Sable remediation fund — — — (0.1) (0.1) Loss on settlement of other obligations — — — 4.4 4.4 Deferred tax expense — — — 249.3 249.3 Income and comprehensive income 603.7 (1) A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Specified Financial Measures" section of this press release. SPECIFIED FINANICAL MEASURES Non-GAAP Financial Measures and Ratios This press release makes reference to certain financial measures and ratios, including field operating income and oil and natural gas sales, net of blending, which are not standardized financial measures under IFRS® Accounting Standards (the "Accounting Standards") and might not be comparable to similar financial measures disclosed by other issuers. Non-GAAP financial measures and ratios are used internally by management to assess the performance of the Company. They also provide investors with meaningful metrics to assess the Company's performance compared to other companies in the same industry. Investors are cautioned that these measures should not be construed as an alternative to financial measures determined in accordance with generally accepted accounting principles ("GAAP") and these measures should not be considered to be more meaningful than GAAP measures in evaluating the Company's performance. The term " Oil and natural gas sales, net of blending" is calculated by deducting purchased product and blending costs from oil and natural gas sales and sales of purchased product. Management uses this metric to isolate the revenue associated with the Company's production after accounting for the unavoidable cost of blending. A quantitative reconciliation of Oil and natural gas sales, net of blending to the most directly comparable GAAP financial measure, Oil and natural gas sales, is contained under the heading "2024 Segment Information" of this press release. " Field Operating Income" is a common metric used in the oil and natural gas industry to assess the profitability and efficiency of the Company's field operations. The following table reconciles "Field Operating Income" to the nearest GAAP measure. Supplementary Financial Measures "TEV" is an aggregation of the Company's market capitalization, debt and lease and other obligations. Market capitalization is determined by multiplying outstanding common shares by the common share price. Debt and other obligations are as derived under IFRS Accounting Standards. Presentation of Oil and Gas Information In respect of 2024 year-end reserves information contained in this press release, Strathcona's reserves have been evaluated in accordance with Canadian reserve evaluation standards under National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). McDaniel & Associates Consultants Ltd., an independent petroleum consulting firm based in Calgary, Alberta, has evaluated the petroleum and natural gas reserves associated with Strathcona's interests in Alberta, British Columbia and Saskatchewan. Such estimates constitute forward-looking information, which are based on values that Strathcona's management believes to be reasonable and are subject to the same limitations discussed under "Forward-Looking Information" below. A complete filing of our oil and gas reserves and other oil and gas information presented in accordance with NI 51-101 are included in Strathcona's Annual Information Form for the year ended December 31, 2024, which can be found at and This press release contains various references to the abbreviation "boe" which means barrels of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ("mcf") of natural gas to one barrel ("bbl") of crude oil. Boe may be misleading, particularly if used in isolation. A boe conversion rate of 1 bbl : 6 mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 bbl : 6 mcf, utilizing a conversion ratio of 1 bbl : 6 mcf may be misleading as an indication of value. References in this press release to initial production rates and other short-term production rates and test results are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating aggregate production for the Company or the assets for which such rates are provided. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the test results should be considered to be preliminary. Forward-Looking Information Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. The forward-looking information in this press release is based on Strathcona's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Strathcona believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon. The use of any of the words "expect", "target", "anticipate", "intend", "estimate", "objective", "ongoing", "may", "will", "project", "believe", "depends", "could" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: Strathcona's business strategy and future plans; expected operating strategy; the expected sale of substantially all of Strathcona's Montney assets, including the expected timing and pro forma effects; Strathcona's plans for its shareholdings in Tourmaline; the expected tax treatment of Strathcona's disposition of the Montney assets, including the use and availability of tax pools; in respect of HRT, the estimated replacement cost and expected free cash flow over the next twelve months; the expected benefits of the HRT acquisition, including HRT"s ability to provide Strathcona with a natural hedge against future egress bottlenecks; Strathcona's 2025 production, reserves, liquidity and capital spending guidance; the impact of the major turnaround at Tucker ; Strathcona's long-range plan, including production growth to 195 Mbbls / d by 2031, capital expenditures averaging $0.9 - $1.0 billion in 2026 and $1.1 to 1.2 billion in 2027-2029, before returning to sustaining expected capital of $0.8 and $0.85 billion in 2030 and 2031; the deferral of the sanction of the Lindbergh Phase 2 expansion project to 2027; and the full reconciliation of Strathcona's long-range plan showing expectations in respect of production and capital expenditures. All forward-looking information reflects Strathcona's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of Strathcona's current expectations with respect to such things as: the success of Strathcona's operations and growth and expansion projects; expectations regarding production growth, future well production rates and reserve volumes; expectations regarding Strathcona's capital program; the completion of transactions to dispose of Strathcona's Montney assets; the availability of Strathcona's tax pools; expectations regarding the benefits of the HRT acquisition; Strathcona's ability to generate sufficient cash flow to fund debt repayment and declare and pay dividends; expectations regarding the impact of tariffs on Strathcona's operations and its ability to effectively mitigate the impact thereof; the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; the availability of third party services; prevailing and future royalty regimes and tax laws; future well production rates and reserve volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Strathcona's assets; decommissioning obligations; Strathcona's ability to comply with its financial covenants; and the governmental, regulatory and legal environment, including expectations regarding the current and future carbon tax regime and regulations. In addition, certain forward-looking information with respect to Strathcona's 2025 guidance assumes commodity prices and exchange rates of: US$70 / bbl WTI, US$13 / bbl WCS-WTI differential, 1.38 USD-CAD and C$3 / GJ AECO. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct. The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, without limitation: changes in commodity prices; changes in the demand for or supply of Strathcona's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing Russia/Ukraine conflict, the conflict in the Middle East, and other heightened geopolitical risks, including the imposition of tariffs or other trade barriers, and the ability of Strathcona to carry on operations as contemplated in light of the foregoing; determinations by the Organization of the Petroleum Exporting Countries and other countries as to production levels; unanticipated operating results or production declines; changes in tax or environmental laws, climate change, royalty rates or other regulatory matters; changes in Strathcona's development plans or by third party operators of Strathcona's properties; failure to achieve anticipated results of its operations; competition from other producers; inability to retain drilling rigs and other services; failure to complete or realize the anticipated benefits of Strathcona's acquisitions, dispositions or corporate reorganizations, including disposition of substantially all of Strathcona's Montney assets and the acquisition of HRT; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Strathcona's oil and gas reserve and contingent resource volumes; limited, unfavorable or a lack of access to capital markets or other sources of capital; increased costs; a lack of adequate insurance coverage; the impact of competitors; and the other factors discussed under the "Risk Factors" section in Strathcona's Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2024 and from time to time in Strathcona's public disclosure documents, which are available under Strathcona's profile on SEDAR+ at Management approved the capital expenditure and production guidance and long-range plan contained herein as of the date of this press release. The purpose of the capital expenditure and production guidance and long-range plan is to assist readers in understanding Strathcona's expected and targeted financial position and performance, and this information may not be appropriate for other purposes. This release contains information that may constitute future-oriented financial information or financial outlook information (collectively, "FOFI") about Strathcona's prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. Strathcona's actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. Strathcona has included FOFI in order to provide readers with a more complete perspective on Strathcona's future operations and management's current expectations relating to Strathcona's future performance. Readers are cautioned that such information may not be appropriate for other purposes. The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Strathcona does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
