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Strathcona Resources Ltd. Reports Second Quarter 2025 Financial and Operating Results, and Announces Quarterly Dividend
CALGARY, AB, Aug. 7, 2025 /CNW/ - Strathcona Resources Ltd. ("Strathcona" or the "Company") (TSX: SCR) today reported its second quarter 2025 financial and operating results. The Board of Directors also declared a quarterly dividend of $0.30 per common share. During the three months ended June 30, 2025 the Company entered into three separate asset purchase and sale agreements to dispose of its Montney assets, the results from which have been presented in the Company's interim financial statements and management's discussion and analysis for the three and six months ended June 30, 2025 and 2024 as discontinued operations. Unless otherwise noted, all figures in this press release reflect the combined results of continuing and discontinued operations. Q2 2025 Highlights: Production of 181,368 boe/d (71% oil and condensate, 78% liquids) (1)(2) Operating Earnings of $225.5 million ($1.05 / share) (1)(3) Free Cash Flow of $32.0 million ($0.15 / share) (1)(3) Three Months Ended (1) Six Months Ended (1) ($ millions, unless otherwise indicated) June 30, 2025 June 30, 2024 March 31, 2025 June 30, 2025 June 30, 2024 WTI (US$ / bbl) 63.74 80.57 71.42 67.58 78.76 WCS Hardisty (C$ / bbl) 73.96 91.63 84.30 79.13 84.70 AECO 5A (C$ / gj) 1.60 1.12 2.05 1.83 1.74 Bitumen (bbls/d) 56,628 59,581 65,016 60,799 59,865 Heavy oil (bbls/d) 51,528 51,111 50,488 51,011 51,473 Condensate and light oil (bbls/d) 20,647 20,120 20,682 20,665 19,700 Total oil production (bbls/d) 128,803 130,812 136,186 132,475 131,038 Other NGLs (bbls/d) 12,302 11,426 11,837 12,070 11,582 Natural gas (mcf/d) 241,578 237,170 279,517 260,443 244,945 Production (boe/d) 181,368 181,766 194,609 187,952 183,444 Sales (boe/d) 183,806 185,841 194,884 189,314 184,351 % Oil and condensate 71.0 % 72.0 % 70.0 % 70.5 % 71.4 % % Liquids (2) 77.8 % 78.3 % 76.1 % 76.9 % 77.7 % Oil and natural gas sales, net of blending costs and other income (3) 970.8 1,184.8 1,133.7 2,104.5 2,189.1 Royalties 104.6 194.0 138.2 242.8 320.2 Production and operating – Energy 58.0 64.9 75.7 133.7 143.7 Production and operating – Non-energy 161.9 149.5 155.5 317.4 284.9 Transportation and processing 150.5 149.2 142.4 292.9 292.6 General and administrative 27.5 25.2 24.7 52.2 47.2 Depletion, depreciation and amortization 177.3 229.1 215.7 393.0 450.9 Interest and finance costs (4) 65.5 66.8 59.1 124.6 134.5 Operating Earnings (3) 225.5 306.1 322.4 547.9 515.1 Other items (4) (5.4) 78.9 117.1 111.7 187.3 Income and comprehensive income 230.9 227.2 205.3 436.2 327.8 Operating Earnings (3) 225.5 306.1 322.4 547.9 515.1 Non-cash items (4) 197.0 252.4 236.4 433.4 496.5 (Loss) on risk management and foreign exchange contracts – realized (8.8) (10.9) (0.7) (9.5) (8.4) Funds from Operations (3) 413.7 547.6 558.1 971.8 1,003.2 Capital expenditures (378.4) (297.4) (350.6) (729.0) (583.5) Decommissioning costs (3.3) (2.9) (23.5) (26.8) (14.5) Free Cash Flow (3) 32.0 247.3 184.0 216.0 405.2 Debt, net of cash and marketable securities (4) 2,247.5 2,435.6 2,416.8 2,247.5 2,435.6 Common shares (millions) 214.2 214.2 214.2 214.2 214.2 (1) During the three months ended June 30, 2025 the Company entered into three separate asset purchase and sale agreements to dispose of its Montney assets which has been presented in the Company's interim financial statements and management's discussion and analysis for the three and six months ended June 30, 2025 and 2024 as discontinued operations. The financial and operating results for these periods have been presented throughout this press release based on the aggregation of continuing and discontinued operations. The aggregation of continuing and discontinued financial results are non-GAAP measures and do not have a standardized meaning under IFRS® Accounting Standards (the "Accounting Standards"); see "Non-GAAP Measures and Ratios" section of this press release. (2) See "Presentation of Oil and Gas Information" section of this press release. (3) A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release. (4) See "Supplementary Financial Measures" Section of this press release. Three Months Ended (1) Six Months Ended (1) ($/boe, unless otherwise indicated) June 30, 2025 June 30, 2024 March 31, 2025 June 30, 2025 June 30, 2024 Oil and natural gas sales, net of blending costs and other income (2) 58.04 70.06 64.65 61.42 65.24 Royalties 6.25 11.47 7.88 7.09 9.54 Production and operating – Energy 3.47 3.84 4.32 3.90 4.28 Production and operating – Non-energy 9.68 8.84 8.87 9.26 8.49 Transportation and processing 9.00 8.82 8.12 8.55 8.72 General and administrative 1.64 1.49 1.41 1.52 1.40 Depletion, depreciation and amortization 10.60 13.55 12.30 11.47 13.44 Interest and finance costs 3.92 3.95 3.37 3.64 4.01 Operating Earnings (2) 13.48 18.10 18.38 15.99 15.36 Effective royalty rate (%) (2) 10.8 % 16.4 % 12.2 % 11.5 % 14.6 % (1) During the three months ended June 30, 2025 the Company entered into three separate asset purchase and sale agreements to dispose of its Montney assets which has been presented in the Company's interim financial statements and management's discussion and analysis for the three and six months ended June 30, 2025 and 2024 as discontinued operations. The financial and operating results for these periods have been presented throughout this press release based on the aggregation of continuing and discontinued operations. The aggregation of continuing and discontinued financial results are non-GAAP measures and do not have a standardized meaning under IFRS® Accounting Standards (the "Accounting Standards"); see "Non-GAAP Measures and Ratios" section of this press release. (2) A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release. Quarter Review and Near-Term Priorities Strathcona's second quarter production of 181 Mboe / d reflected a 7% decrease from the first quarter, largely due to the planned major turnaround at the company's Tucker property (7 Mboe / d impact) and the divestiture of its Groundbirch Montney property (3 Mboe / d impact). Shortly after the second quarter, Strathcona completed the sale of its Kakwa and Grande Prairie Montney properties, completing its transition to a pure play heavy oil business. Based on preliminary accounting, the total gain on sale of Strathcona's Montney business (expected to be recorded in the third quarter) is approximately $760 million, before final closing adjustments. In Cold Lake, the major turnaround at Tucker was completed safely, with the field returning to full capacity in mid-July. Production from Tucker continues to exceed expectations, due to strong performance from eight lower drainage wells (LDWs) brought on stream at the end of 2024. The LDWs at Tucker reflect an innovative approach to SAGD development first developed by Strathcona at Orion, wherein a new producer is placed directly below a legacy well pair to recover pre-heated oil with minimal incremental steam. At Tucker this has resulted in substantially lower steam-oil-ratios (SORs), with the field averaging a 2.8x SOR in July, a record low in the asset's 20-year history and an approximately 45% decrease compared to when Strathcona acquired the asset in late 2021. Strathcona has identified approximately 75 additional LDWs at Tucker, Orion and Lindbergh to be drilled over the next 5 years. In Lloydminster Thermal, capital activity remains focused at the Company's Meota Central project, which is currently approximately 50% 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. Meota Central is the Company's second major brownfield Lloydminster SAGD expansion, following the success of its Meota West 2 expansion which it completed earlier this year at a total installed cost of $93 million and which reached a peak rate of over 5 Mbbls / d in the second quarter. In Lloydminster Conventional, Strathcona is currently focused on its annual drilling programs at Bodo-Cosine and Druid, the latter of which includes several multi-lateral horizontal locations following the success from Druid's initial 2024 pilot program. Outlook Strathcona's 2025 production guidance is unchanged at the mid-point but has been revised to 152 – 158 Mboe / d, from 150 – 160 Mboe / d previously. The Company's 2025 capital budget of $1.2 billion remains unchanged. Strathcona's offer for MEG Energy remains outstanding until September 15, 2025. Strathcona remains ready and willing to engage with the MEG board of directors. MEG shareholders are encouraged to refer to the Offer to Purchase and accompanying Take-Over Bid Circular of the Company dated May 30, 2025, available on Strathcona's website and under the Company's profile on SEDAR+ at In the event that Strathcona's offer for MEG is unsuccessful, Strathcona currently intends to return approximately $10 per share to its shareholders. Any such distribution will be at the sole discretion of the board of directors of Strathcona and subject to numerous factors. Quarterly Dividend Strathcona's board of directors has declared a quarterly dividend of $0.30 per share to be paid on September 22, 2025 to shareholders of record on September 12, 2025. 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. Conference Call Details Strathcona will host a conference call on August 8, 2025, starting at 7:00AM MT (9:00AM ET), to review the Company's second quarter 2025 financial and operating results. Date: Friday, August 8, 2025 Time: 9:00AM ET (7:00AM 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 20959. 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 pure play heavy oil 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 assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX). For more information about Strathcona, visit [email protected] Media inquiries: [email protected] Non-GAAP Measures and Ratios The financial results for the three and six months ended June 30, 2025 and June 30 2024, are presented below to reconcile continuing and discontinued operations to total results. Total results is a non-GAAP measure which does not have a standardized meaning under the Accounting Standards and may not be comparable to similar financial measures disclosed by other issuers. Total results is used by Management to assess the historical financial performance of the total business and is not intended to be indicative of future results of the Company. Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 (1) ($ millions, unless otherwise indicated) Continuing Discontinued Total Continuing Discontinued Total Revenues and other income Oil and natural gas sales 974.7 234.7 1,209.4 1,231.1 241.2 1,472.3 Sale of purchased product 14.4 — 14.4 13.0 — 13.0 Royalties (95.9) (8.7) (104.6) (168.2) (25.8) (194.0) Oil and natural gas revenues 893.2 226.0 1,119.2 1,075.9 215.4 1,291.3 Gain (loss) on risk management contracts 19.4 — 19.4 2.1 — 2.1 Midstream revenue 6.6 — 6.6 — — — Other income (loss) 4.9 — 4.9 (0.1) — (0.1) 924.1 226.0 1,150.1 1,077.9 215.4 1,293.3 Expenses Purchased product 14.4 — 14.4 13.0 — 13.0 Blending costs 250.1 — 250.1 287.4 — 287.4 Production and operating 180.7 39.2 219.9 172.9 41.5 214.4 Transportation and processing 94.2 56.3 150.5 98.3 50.9 149.2 General and administrative 21.1 6.4 27.5 19.0 6.2 25.2 Interest 45.8 — 45.8 43.7 — 43.7 Transaction related costs 14.2 4.6 18.8 0.3 — 0.3 Finance costs 14.8 4.9 19.7 12.5 10.6 23.1 Depletion, depreciation and amortization 155.7 21.6 177.3 157.2 71.9 229.1 Foreign exchange (gain) loss (39.5) — (39.5) 6.9 — 6.9 751.5 133.0 884.5 811.2 181.1 992.3 Gain on marketable securities 24.6 — 24.6 — — — Gain on assets held for sale, net — 5.3 5.3 — — — (Loss) on settlement of other obligations — (1.3) (1.3) — — — Income before income taxes 197.2 97.0 294.2 266.7 34.3 301.0 Income tax expense 38.9 24.4 63.3 63.9 9.9 73.8 Income and comprehensive income 158.3 72.6 230.9 202.8 24.4 227.2 (1) Comparative periods have been revised to reflect current period presentation. Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 (1) ($ millions, unless otherwise indicated) Continuing Discontinued Total Continuing Discontinued Total Revenues and other income Oil and natural gas sales 2,151.0 517.4 2,668.4 2,271.9 499.2 2,771.1 Sale of purchased product 21.7 — 21.7 15.0 — 15.0 Royalties (208.3) (34.5) (242.8) (268.1) (52.1) (320.2) Oil and natural gas revenues 1,964.4 482.9 2,447.3 2,018.8 447.1 2,465.9 Loss on risk management contracts (58.6) — (58.6) (37.6) — (37.6) Midstream revenue 6.6 — 6.6 — — — Other income 6.1 — 6.1 — — — 1,918.5 482.9 2,401.4 1,981.2 447.1 2,428.3 Expenses Purchased product 22.0 — 22.0 15.0 — 15.0 Blending costs 576.3 — 576.3 582.0 — 582.0 Production and operating 363.1 88.0 451.1 344.0 84.6 428.6 Transportation and processing 182.2 110.7 292.9 185.1 107.5 292.6 General and administrative 40.3 11.9 52.2 35.8 11.4 47.2 Interest 84.2 — 84.2 89.1 — 89.1 Transaction related costs 14.8 4.6 19.4 0.4 — 0.4 Finance costs 27.1 13.3 40.4 23.9 21.5 45.4 Depletion, depreciation and amortization 303.3 89.7 393.0 303.0 147.9 450.9 Foreign exchange (gain) loss (40.5) — (40.5) 27.3 — 27.3 Unrealized loss on Sable remediation fund — — — 0.1 — 0.1 1,572.8 318.2 1,891.0 1,605.7 372.9 1,978.6 Gain on marketable securities 47.3 — 47.3 — — — Gain on assets held for sale, net — 5.3 5.3 — — — (Loss) on settlement of other obligations — (1.3) (1.3) — — — Income before income taxes 393.0 168.7 561.7 375.5 74.2 449.7 Income tax expense 81.9 43.6 125.5 100.5 21.4 121.9 Income and comprehensive income 311.1 125.1 436.2 275.0 52.8 327.8 (1) Comparative periods have been revised to reflect current period presentation. "Oil and natural gas sales, net of blending and other income" is calculated by deducting purchased product and blending costs from oil and natural gas sales, sales of purchased product, midstream revenue and other income, for both continuing and discontinued operations. Management uses this metric to isolate the revenue associated with the Company's operations after accounting for the unavoidable cost of blending. Oil and natural gas sales, net of blending and other income, is also reflected on a per boe basis calculated using sales volumes. " 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, for both continuing and discontinued operations. This metric allows management to analyze the movement of royalty expenses in relation to realized and benchmark commodity prices. " Operating Earnings - Discontinued" is considered a key financial metric for evaluating the profitability of Strathcona's discontinued operations. A quantitative reconciliation of Operating Earnings - Discontinued to the most directly comparable GAAP financial measure, Oil and natural gas sales, is presented below. (1) Comparative periods have been revised to reflect current period presentation. " 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, gains and losses on risk management contracts – realized and gains and losses on foreign exchange – realized. "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, gains and losses on risk management contracts – realized and gains and losses on foreign exchange - realized, capital expenditures and decommissioning costs. Quantitative reconciliations of Funds from Operations and Free Cash Flow for both continuing and discontinued operations to the most directly comparable GAAP financial measure, Operating Earnings, are set forth below. (1) Comparative periods have been revised to reflect current period presentation. Three Months Ended Six Months Ended ($ millions, unless otherwise indicated) June 30, 2025 June 30, 2024 (1) March 31, 2025 (1) June 30, 2025 June 30, 2024 (1) Operating Earnings - Discontinued 97.6 34.3 71.7 169.3 74.2 Depletion, depreciation and amortization 21.6 71.9 68.1 89.7 147.9 Finance costs 4.9 10.6 8.4 13.3 21.5 Funds from Operations - Discontinued 124.1 116.8 148.2 272.3 243.6 Capital expenditures (133.7) (115.2) (116.5) (250.2) (242.9) Decommissioning costs (1.9) (1.5) (16.5) (18.4) (10.0) Free Cash Flow - Discontinued (11.5) 0.1 15.2 3.7 (9.3) (1) Comparative periods have been revised to reflect current period presentation. The following table reconciles operating earnings, funds from operations and free cash flow from continuing and discontinued operations: (1) Comparative periods have been revised to reflect current period presentation. Supplementary Financial Measures "Interest and finance costs" is an aggregation of interest and finance costs from both continuing and discontinued operations. " Other items" is an aggregation of risk management contracts, foreign exchange, transaction related costs, unrealized loss (gain) on Sable remediation fund, loss on settlement of other obligations, and deferred tax expense from both continuing and discontinued operations. Three Months Ended Six Months Ended ($ millions, unless otherwise indicated) June 30, 2025 June 30, 2024 March 31, 2025 June 30, 2025 June 30, 2024 (Gain) loss on risk management contracts (19.4) (2.1) 78.0 58.6 37.6 Foreign exchange (gain) loss (39.5) 6.9 (1.0) (40.5) 27.3 Transaction related costs 18.8 0.3 0.6 19.4 0.4 Unrealized (gain) loss on Sable remediation fund — — — — 0.1 (Gain) on marketable securities (24.6) — (22.7) (47.3) — (Gain) on assets held for sale (5.3) — — (5.3) — Loss on settlements of other obligations 1.3 — — 1.3 — Deferred tax expense 63.3 73.8 62.2 125.5 121.9 Other items (5.4) 78.9 117.1 111.7 187.3 " Non-cash items" is an aggregation of depletion, depreciation and amortization, finance costs, and other income – decommissioning government grant from both continuing and discontinued operations. " Debt, net of cash and marketable securities" is comprised of debt less cash and marketable securities, as derived under the 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. The Company's three and six month average daily production volumes for 2025 and 2024, 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: 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. The Company 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: the Company's business strategy and future plans; the estimated gain on the sale of Strathcona's Montney assets; expected operating strategy and drilling program; the construction of Meota Central processing facility, including expected production rate and costs thereof; the use of proceeds from the sale of the Company's Montney assets, including Strathcona's current intention to return the majority of the proceeds from the sale of its Montney business to its shareholders; Strathcona's 2025 production guidance and capital budget; the declaration and payment of dividends, including the amount and timing thereof; the Company's use of hedging arrangements; the Company's ability to meet current and future obligations, including making scheduled principal and interest payments, to fund planned capital expenditures and to fund the other needs of the business; expectations regarding future distributions to shareholders; future liquidity and financial capacity; anticipated proceeds from financial instruments, including commodity contracts; and sources of funding for the Company's capital program, the terms of Strathcona's future contractual obligations, including its obligations under the Credit Agreement and Senior Notes and oil and natural gas prices and differentials. 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 the Company'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; Strathcona's ability to 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; 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 the Company'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 in respect of the MEG Offer and any anticipated benefits thereof is based on information currently available to the Company about itself and MEG and the businesses in which they operate. Information used in developing such forward-looking information has been acquired from various sources, including third party consultants, suppliers and regulators, among others. The material assumptions used to develop such forward-looking information includes, but are not limited to: the conditions of the MEG Offer will be satisfied on a timely basis in accordance with their terms; the ability of the Company to complete the combination of the Company and MEG, pursuant to the MEG Offer or otherwise, and to integrate the Company's and MEG's respective businesses and operations and realize the anticipated strategic, operational and financial benefits synergies from the acquisition of MEG by the Company; the anticipated synergies and other anticipated benefits of the MEG Offer will be realized in a manner consistent with the Company's expectations; future production rates and estimates of capital and operating costs of the combined company; the combined company's reserves volumes and the net present values thereof; anticipated timing and results of capital expenditures of the combined company; MEG's public disclosure is accurate and that MEG has not failed to publicly disclose any material information respecting MEG, its business, operations, assets, material agreements, or otherwise; there will be no material changes to laws adversely affecting the Company's or MEG's operations; and the impact of the current economic climate and financial, political and industry conditions on the Company's and MEG's operations, including its financial condition and asset value, will remain consistent with the Company's current expectations. 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 the Company 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 realize the anticipated benefits of the Company's acquisitions, dispositions or corporate reorganizations; 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, unfavourable 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; the risk of failure to satisfy the conditions to the MEG Offer; the risk that the anticipated synergies and other benefits of the MEG Offer may not be realized; and the other factors discussed under the "Risk Factors" section in the Company's Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2024, a copy of each of which is available under the Company's profile on SEDAR+ at Declaration of dividends or any other distributions 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 or not declaring any other distributions, 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 other distributions or the amount or timing of any such dividends or other distributions. This press 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.
Cision Canada
21-07-2025
- Business
- Cision Canada
Strathcona Announces Q2 2025 Conference Call
CALGARY, AB, July 21, 2025 /CNW/ - Strathcona Resources Ltd. (" Strathcona" or the " Company") (TSX: SCR) will release its second quarter 2025 financial and operating results after market close on August 7, 2025. Strathcona will host a conference call on August 8, 2025, starting at 9:00AM MT (11:00AM ET), to review the Company's second quarter 2025 results. 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 20959. Strathcona Resources Ltd. Strathcona Resources is one of North America's fastest growing oil and gas producers with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. 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 Resources, visit
Winnipeg Free Press
20-06-2025
- Business
- Winnipeg Free Press
Strathcona defends unsolicited takeover offer for oilsands peer MEG Energy
CALGARY – Strathcona Resources Ltd. says MEG Energy Corp. has made errors and misleading statements in its justifications for rejecting its unsolicited takeover bid. Last month, Strathcona made a cash-and-stock offer to buy all of the MEG shares it does not already own, and MEG shares have consistently been trading higher than the implied offer price. Earlier this week, MEG urged shareholders to reject the bid, in part because it says combining with Strathcona would expose shareholders to inferior assets and capital market risk. Strathcona has published a new presentation taking aim at the 'Fact vs. Fiction' in MEG's director's circular outlining its rationale for opposing the offer. In the presentation, Strathcona says its oilsands assets are comparable to or sometimes better than MEG's. It adds that Waterous Energy Fund, led by Strathcona executive chairman Adam Waterous, has no intention of selling its stake in Strathcona post-takeover, which MEG contends is a risk. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published June 20, 2025. Companies in this story: (TSX: MEG) (TSX: SCR)
Calgary Herald
16-05-2025
- Business
- Calgary Herald
Waterous' Strathcona to make $4 billion bid for MEG Energy
Article content Canadian oil tycoon Adam Waterous' Strathcona Resources Ltd. announced plans for takeover bid of MEG Energy Corp. that values the oil sands company at about C$6 billion ($4 billion), advancing a push to become a major heavy crude producer. Article content The cash-and-stock offer, which will be formally filed in the next two weeks, will be for about C$23.27 per MEG Share, Calgary-based Strathcona said in a statement. That would value MEG's equity at about C$5.93 billion, based on the company's roughly 255 million shares outstanding. Article content Article content Taking over MEG would be the biggest acquisition yet for Strathcona, which former investment banker Waterous built through a flurry of deals over the past decade. The announcement comes the same day Strathcona said it agreed to sell its assets in the Montney shale formation in western Canada in a C$2.8 billion deal, a shift that makes the company a pure heavy oil producer. Article content Article content MEG Energy is a pure oil sands producer that pumps more than 100,000 barrels a day of heavy crude from its Christina Lake asset. The company's market capitalization of C$5.4 billion is slightly smaller than Strathcona's C$6.6 billion. Waterous' company is more diversified, with both oil sands operations and more conventional heavy oil production in Alberta and Saskatchewan. Article content In a statement Friday, MEG said it will consider and evaluate Strathcona's offer. The company has enlisted BMO Capital Markets as its financial adviser and Burnet, Duckworth & Palmer as its legal adviser. Article content Strathcona said it acquired about 9.2% of MEG's shares through open market purchases in the first and second quarters of this year. The company sent a takeover offer to MEG's board in late April, and the company's chairman responded about two weeks later that MEG wasn't interested. Article content MEG's Christina Lake operation would the largest single oil-producing asset for Strathcona, which had forecast production of about 120,000 barrels a day once its Montney deals close. While oil sands well operations are costly to build, once operating, they can continue producing crude for decades at $15 a barrel or less, without the need to regularly drill new wells, as is the case in shale formations such as the Permian basin of Texas. Article content Already, the deeper push into heavy oil from Strathcona's Montney deals was expected to help extend the company's reserve life to 50 years from 40 years and lower its breakeven oil price, TD Cowen analysts said in a note. Article content Strathcona said it has identified C$175 million in cost savings opportunities from combining with MEG, including overhead reductions, interest savings and operating synergies.
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.
