Hemisphere Energy (HME) investor relations material

Executive summary

• Declared a quarterly base cash dividend of $0.025 per share, payable September 11, 2026 to shareholders of record as of August 28, 2026.

• Achieved record quarterly revenue, operating netback, adjusted funds flow from operations (AFF), and free funds flow in Q2 2026.

• Exited the quarter with no bank debt and positive working capital of $19.5 million.

• Renewed a $35 million two-year extendible credit facility.

Financial highlights

• Q2 2026 revenue reached $33.6 million, up from $24.4 million in Q2 2025.

• Operating netback was $22.1 million ($67.94/boe), compared to $14.0 million ($40.18/boe) in Q2 2025.

• Adjusted funds flow from operations was $16.7 million ($0.18/share basic), up from $10.3 million ($0.11/share basic) year-over-year.

• Free funds flow totaled $14.2 million ($0.15/share), compared to $8.1 million ($0.08/share) in Q2 2025.

• Distributed $2.4 million in base dividends and $5.7 million in special dividends during the quarter.

Outlook and guidance

• Plans to continue prioritizing per-share growth and shareholder returns, leveraging a strong balance sheet and unhedged oil production.

• Anticipates new wells and injector conversions in Atlee Buffalo to be on production throughout September and October.

• Ongoing pilot polymer flood in the Sparky Formation at Marsden, with continued testing through year-end.