Canada's Headwater Exploration Q2 net income falls, declares dividend

Overview

• Headwater Q2 total sales, net of blending expense falls 12% yr/yr, net income down 29%

• Company achieves record production of 22,235 boe/d, up 12% yr/yr

• Headwater declares quarterly cash dividend of C$0.11 per share

Outlook

• Company expects having 2,500 bbls/d oil production in Clearwater sandstone supported by year-end

• Headwater to implement polymer flood pilot in Greater Pelican in early 2026

• Company anticipates 25% of Marten Hills West oil volumes will be supported by secondary recovery by year-end

Result Drivers

• NEW POOL DISCOVERIES - Exceptional results from exploration program with new pool discoveries in Grand Rapids formation in West Marten Hills and the Wabiskaw formation in Greater Pelican

• PRODUCTION INCREASE - Record production achieved with 22,235 boe/d, driven by increased drilling and exploration activities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Headwater Exploration Inc is C$8.50, about 14% above its July 23 closing price of C$7.31

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nCNWKJRk4a