Saturn Oil & Gas (SOIL) Q2 2026 earnings summary

Executive summary

• Q2 2026 production averaged 41,447 BOE/d, surpassing guidance for the eighth consecutive quarter, with 81% oil and liquids weighting.

• Cash flow exceeded CAD 123 million, with free funds flow over CAD 82 million, despite weather-related downtime.

• Record quarterly revenue of $359 million and net income of $108 million ($0.60/share basic) were achieved, driven by strong production and favorable oil prices.

• Strategic tuck-in and accretive acquisitions, including Burgess Creek, Triland Energy, and SE Saskatchewan assets, expanded scale and drilling inventory.

• Enhanced capital structure with new unsecured notes, reducing interest rates and extending maturities.

Financial highlights

• Q2 2026 petroleum and natural gas sales were $358.7 million, up from $236.7 million in Q2 2025.

• Adjusted funds flow of CAD 123 million (CAD 0.68/share); free funds flow over CAD 82 million (CAD 0.46/share).

• Net income for Q2 was $108.1 million, compared to $95.1 million in Q2 2025.

• Net debt at June 30, 2026 was $762 million, with a net debt to annualized adjusted EBITDA ratio of 1.3x.

• Shareholder returns of nearly CAD 66 million since 2024 via buybacks.

Outlook and guidance

• 2026 guidance increased, reflecting higher activity, recent acquisitions, and improved financial flexibility.

• Full-year 2026 capital expenditure budget increased to $355–$375 million, targeting 10% organic production growth.

• Expected 2026 exit production: 48,000–50,000 BOE/d, with 84% oil/liquids.

• Annualized adjusted funds flow forecasted at CAD 535–570 million; free cash flow CAD 150–200 million.

• Year-end 2026 net debt to Adjusted EBITDA expected to improve to ~1.4x (from 1.6x prior guidance).