Strathcona Resources (SCR) Q1 2026 earnings summary

Executive summary

• Q1 2026 production averaged 116,542 boe/d, with 99.7% liquids, maintaining high liquids weighting.

• Operating earnings reached $194 million ($0.91/share), up 33% from the previous quarter, driven by higher oil prices.

• Free cash flow was $47 million ($0.22/share), stable versus the prior quarter due to increased capital expenditures.

• Quarterly dividend of $0.30 per share declared, payable June 17, 2026.

Financial highlights

• Oil and natural gas sales, net of blending and other income, totaled $824 million in Q1 2026.

• Operating earnings were $194 million, with funds from operations at $364 million.

• Capital expenditures were $298 million, reflecting a front-loaded annual capital program.

• Net income for the quarter was $39 million.

• Effective royalty rate increased to 17.2% from 12.2% in the prior quarter.

Outlook and guidance

• 2026 production guidance remains 120–130 Mbbls/d, with a capital budget of $1.0 billion.

• First half 2026 production guidance is 115–120 Mbbls/d; year-end exit rate targeted at 135 Mbbls/d (15% growth rate).

• Free cash flow for 2026 expected to reach approximately $1.0 billion at current strip prices.

• Free cash flow will be prioritized for debt repayment, with share buybacks, M&A, and additional dividends considered opportunistically.