Hemisphere Energy (HME) Q2 2025 earnings summary

Executive summary

• Achieved Q2 2025 production of 3,826 boe/d (99% heavy oil), with revenue of $24.4 million ($70.06/boe).

• Adjusted funds flow from operations (AFF) was $10.3 million ($29.47/boe), and free funds flow was $8.1 million ($0.07/share).

• Distributed $2.4 million in base dividends and $2.9 million in special dividends; repurchased 1.3 million shares for $2.3 million.

• Renewed $35 million credit facility and exited Q2 with $13.9 million in positive working capital.

Financial highlights

• Q2 2025 petroleum and natural gas revenue was $24.4 million, down from $28.9 million in Q2 2024.

• Operating field netback was $14.9 million ($42.77/boe), and operating netback was $14.0 million ($40.18/boe).

• Cash flow from operating activities was $11.8 million, and net income was $7.1 million.

• Capital expenditures totaled $2.2 million for the quarter.

Outlook and guidance

• Drilling program scheduled to commence late Q3, including several development wells in Atlee Buffalo and at least one new well in Marsden.

• Capital spending will be adjusted in response to oil market volatility.

• Focus remains on balance sheet strength, shareholder returns, and potential acquisition opportunities.