Hemisphere Energy (HME) Corporate presentation summary

Strategic focus and operational highlights

• Emphasizes disciplined growth, reliable returns, and maximizing per-share value through Canadian oil assets with low production decline and enhanced oil recovery via polymer floods.

• Maintains a strong balance sheet, is debt-free, and generates significant free cash flow, supporting sustainable dividends and opportunistic share buybacks.

• Q1 2026 production averaged 3,811 boe/d (99% heavy oil) from 54 wells, with a market capitalization of $269 million and insider ownership of ~16-19%.

Financial performance and guidance

• Q1 2026 revenue was $25.4 million, EBITDAX $15.3 million, AFF $12.7 million, and free funds flow $9.6 million, with working capital at $13.9 million.

• 2026 guidance targets annual production of 3,900 boe/d, AFF between $40–78 million, and free funds flow of $28–66 million, depending on oil prices.

• Capital expenditures for 2026 are set at $12 million, with flexibility to adjust based on market conditions.

Growth, reserves, and enhanced oil recovery

• Achieved a 19% CAGR in production and 38% CAGR in AFF/share over five years.

• Year-end 2025 reserves: 9.3 MMboe PDP, 11.8 MMboe 1P, 15.2 MMboe 2P, with NPV10 before tax of $212M (PDP), $252M (1P), and $316M (2P).

• Reserve life index is 8.9 years (1P) and 11.4 years (2P), with future development costs of $32–43 million.

• Polymer flood EOR in Atlee Buffalo pools results in lower production decline rates and higher free cash flow compared to peers.