Hemisphere Energy (HME) Corporate Presentation summary

Strategic focus and business model

• Concentrates on long-life, high-value Canadian oil assets with enhanced oil recovery (EOR) as a core differentiator.

• Maintains a debt-free balance sheet, building cash and maximizing free cash flow.

• Delivers shareholder returns through base and special dividends, as well as share buybacks.

• Ultra-low production decline rates support sustainable cash flow and capital flexibility.

Financial and operational performance

• Q1 2025 average production was 3,833 boe/d (99% heavy oil), generating $27.3 million in revenue and $15.7 million EBITDA.

• Adjusted funds flow (AFF) for Q1 2025 reached $12.7 million, with $1.2 million in capital expenditures and $11.5 million in free funds flow.

• Working capital stood at $14.1 million as of March 31, 2025; enterprise value was $154.6 million on June 2, 2025.

• Trades at 2.5x EV/EBITDA based on annualized Q1 2025 results.

Growth, guidance, and capital allocation

• 2025 guidance targets 3,900 boe/d average production and $17 million in capital expenditures.

• AFF forecast ranges from $40–$61 million depending on WTI price, with free funds flow of $24–$44 million.

• Base dividend of $0.10/share annually, fully funded by free cash flow, with potential for special dividends and buybacks.

• Capital program focused on drilling, optimization, and facilities, with flexibility for acquisitions or accelerated spending.