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 long-life, high-value reserves and low production decline rates via enhanced oil recovery (polymer floods).

• Maintains a strong, debt-free balance sheet, building cash and keeping low asset retirement obligations.

• Q2 2026 production averaged 3,576 boe/d (99% heavy oil) from 54 producing wells, with a market capitalization of $252.6 million and insider ownership of 16-19%.

Financial performance and shareholder returns

• Q2 2026 revenue was $33.6 million, with EBITDAX of $20.5 million and adjusted funds flow (AFF) of $16.7 million.

• Free funds flow for the quarter was $14.2 million, with working capital at $19.5 million as of June 30, 2026.

• Delivers sustainable quarterly base dividends, opportunistic share buybacks, and special dividends, totaling $84.2 million in shareholder returns since September 2019.

Growth, reserves, and enhanced oil recovery

• Achieved a 19% compound annual growth rate (CAGR) in production and 38% CAGR in AFF per share over five years.

• Year-end 2025 proved plus probable reserves (2P) were 15.2 MMboe with a before-tax NPV10 of $316 million and a reserve life index of up to 11.4 years.

• Polymer flood technology in Atlee Buffalo pools enables lower decline rates, higher recovery, and increased free cash flow compared to industry averages.