Hemisphere Energy (HME) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 production of 3,833 boe/d (99% heavy oil), up 21% year-over-year.

• Revenue rose 30% to $27.3 million compared to Q1 2024.

• Adjusted funds flow from operations (AFF) increased 26% to $12.7 million ($0.13/share).

• Distributed $2.4 million in dividends and repurchased 709,700 shares for $1.3 million.

• Exited Q1 with $14.1 million in working capital, up from $4.2 million a year ago.

Financial highlights

• Operating netback reached $17.0 million ($49.27/boe); free funds flow was $11.5 million ($0.12/share).

• Operating and transportation costs were $14.63/boe.

• Net income for Q1 was $8.9 million ($0.09/share), up from $6.8 million ($0.07/share) in Q1 2024.

• Heavy oil realized price averaged $79.58/bbl; combined realized price was $79.26/boe.

• Capital expenditures totaled $1.2 million in Q1 2025.

Outlook and guidance

• Majority of 2025 capital spending planned for the second half of the year.

• Marsden pilot polymer flood project response expected by late 2025, with further development decisions pending.

• Management will adjust capital spending in response to oil market volatility, prioritizing shareholder returns and potential acquisitions.

• Quarterly dividend of $0.025/share approved for June 2025; $0.08/share paid in dividends in H1 2025 including special dividend.