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Strathcona Resources Ltd (SCR) investor relations material

Strathcona Resources Ltd Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary8 Aug, 2025

Executive summary

  • Focus remains on organic growth to 195,000 bbl/d over five years, with MEG acquisition as a strategic opportunity rather than a generic M&A approach.

  • Q2 2025 production averaged 181,368 boe/d, with 71% oil and condensate and 78% liquids.

  • Completed divestiture of Montney assets, transitioning to a pure play heavy oil business.

  • If MEG acquisition is unsuccessful, plan is to return ~$10/share to investors rather than pursue alternative acquisitions.

  • Recent acquisition of the Hardisty Rail Terminal provides a natural hedge and generates stable free cash flow, with upside if WCS spreads widen.

Financial highlights

  • Operating earnings for Q2 2025 were $225.5 million ($1.05/share), and free cash flow was $32.0 million ($0.15/share).

  • Oil and natural gas sales were $970.8 million in Q2 2025, down from $1,184.8 million in Q2 2024.

  • Q2 2025 net income was $230.9 million, up from $227.2 million in Q2 2024.

  • Funds from operations totaled $413.7 million in Q2 2025.

  • Net debt at quarter-end was $2,247.5 million.

Outlook and guidance

  • Organic production growth target from 120,000 to 195,000 bbl/d over five years, representing an ~8% CAGR, considered among the fastest for peers in North America.

  • 2025 production guidance revised to 152–158 Mboe/d, mid-point unchanged.

  • 2025 capital budget remains at $1.2 billion.

  • No plans to accelerate growth beyond current targets if MEG bid fails; focus remains on disciplined execution.

  • Carbon capture partnership with Canada Growth Fund progressing, with project sanctioning expected in a few quarters pending further clarity on carbon pricing.

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Q3 202512 Nov, 2025
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Frequently asked questions

Strathcona Resources Ltd. is a prominent oil and gas producer in North America, recognized for its rapid growth and innovative approach to consolidating and developing long-life oil and gas assets. The company operates primarily in three core areas: Lloydminster Heavy Oil, Cold Lake Thermal Oil, and Montney Gas, spanning from northeast British Columbia to southwest Saskatchewan. These areas are known for their long reserve life, low breakeven costs, and robust cash flow profiles. Strathcona Resources has a strategic focus on acquiring high-quality, high-performing assets and has the capability for organic growth leveraging existing infrastructure. Strathcona Resources Ltd. is headquartered in Calgary, Alberta, and its shares are listed on the TSX.

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