Headwater Exploration (HWX) Corporate presentation summary

Asset scale and duration

• Oil production has grown approximately 700% since December 2020, with current recovery of less than 1% of OOIP and significant upside from new discoveries in the Grand Rapids and Wabiskaw formations.

• 2026 production is forecast to grow 10% with $110MM in development capital, representing less than 30% of cash flow at US$75/bbl WTI.

• Maintenance capital has decreased by 30% since 2022 while production has doubled, with visibility of maintenance capital below 20% of cash flow at US$70/bbl WTI.

• Decline rates are forecasted to fall below 20% by year-end 2026 and to approximately 15% by 2028, driven by secondary recovery investments.

• Reserve life index stands at 5 years PDP and 11.7 years TPP, with only 3% of prospective OOIP booked at YE2025.

Shareholder returns and capital allocation

• Quarterly dividend increased to $0.12/share in Q2 2026, up 20% since inception in 2023, with cumulative dividends paid of $1.57/share.

• Opportunistic NCIB initiated in Q2 2025, with 1 million shares bought back at an average price of $7.30/share.

• No equity raised or debt incurred since Q1 2020; $372MM returned to shareholders to date.

• 2026 capital allocation: 29% to base dividend, 23% to maintenance, 17% to secondary recovery, 13% to land/exploration, 7% to pipeline, 6% to excess FCF, and 5% to growth.

• Balanced growth and declining maintenance capital underpin sustainable shareholder returns, with a forward-looking production growth target of 5-10% using ~30% of cash flow at US$70 WTI.

Free cash flow and financial outlook

• Approximately 55% of current enterprise value is expected to be returned in cumulative free cash flow by 2030 at US$70 WTI.

• Breakeven price for 2026 is US$47 WTI, including maintenance capital and dividend.

• Adjusted funds flow from operations for 2026 is guided at $385MM, with capital expenditures of $250MM and annual dividends of $112MM.

• Market capitalization as of July 2026 is $3.16B, with 237.8MM shares outstanding and a share price of $13.30.

• Maintenance capital is forecast to remain below 20% of cash flow at US$70 WTI, supporting a sustainable dividend and buybacks.