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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.
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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