Headwater Exploration (HWX) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 production of 22,066 boe/d, up 13% year-over-year.

• Net income rose 33% to $50.0 million ($0.21 per share basic) compared to Q1 2024.

• Adjusted funds flow from operations reached $92.4 million, up 21% year-over-year.

• Declared a quarterly dividend of $0.11 per share, totaling $26.2 million.

• TSX approved a normal course issuer bid (NCIB) for up to 10% of public float.

Financial highlights

• Total sales, net of blending, increased 28% to $163.2 million year-over-year.

• Cash flows from operations were $69.9 million, up 27% year-over-year.

• Free cash flow for Q1 2025 was $29.5 million.

• Adjusted working capital stood at $63.6 million with no outstanding bank debt.

• Shareholders’ equity increased 16% to $723.4 million.

Outlook and guidance

• Strong balance sheet and flexible capital budget support strategic capital allocation.

• Focus remains on shareholder returns via organic growth, enhanced recovery, dividends, and buybacks.

• Plans to expand secondary recovery in Marten Hills West, targeting 2,000 bbls/d supported by year-end.