Hemisphere Energy (HME) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 production of 3,571 boe/d (99% heavy oil), with revenue of $23.1 million and operating netback of $13.6 million ($41.39/boe).

• Adjusted funds flow from operations (AFF) was $10.1 million ($30.59/boe), and free funds flow was $4.9 million.

• Paid $5.2 million in dividends and repurchased 1 million shares for $1.9 million under NCIB.

• Exited Q3 with $11.0 million in positive working capital.

Financial highlights

• Q3 2025 net income was $6.9 million ($0.07/share basic), down from $8.6 million ($0.09/share) in Q3 2024.

• Nine-month net income was $22.9 million ($0.24/share basic), compared to $25.8 million ($0.26/share) in 2024.

• Q3 2025 revenue was $23.1 million, with operating netback of $13.6 million.

• Operating and transportation costs were $15.50/boe.

• Q3 2025 free funds flow was $4.9 million, up from $1.8 million in Q3 2024.

Outlook and guidance

• Management expects 2025 WTI oil prices to average US$65/bbl and to exceed AFF guidance of $40 million.

• 2025 average annual production now estimated at 3,600–3,700 boe/d (99% heavy oil), below original guidance of 3,900 boe/d due to deferred drilling and downtime.

• Fourth quarter production expected at 3,400–3,500 boe/d after facility turnaround and system issues.

• 2026 guidance to be released in January.