REFILE-Canada's Headwater Exploration Q4 net income slumps

Overview

• Canada oil producer's Q4 revenue fell 7% yr/yr

• Net income for Q4 decreased 40% yr/yr

• Company declared a quarterly dividend of C$0.11 per share

Outlook

• Company plans to drill up to 15 additional Grand Rapids wells in 2026

• Company plans to spend C$25 mln on exploration in 2026

Result Drivers

• RECORD PRODUCTION - Headwater achieved record average production of 24,259 boe/d, a 13% increase over the previous year, driven by increased output from heavy crude oil and natural gas

• SECONDARY RECOVERY - Secondary recovery efforts supported significant production levels, particularly in the Grand Rapids and Greater Pelican areas

Company press release: ID:nCNWLj39ba

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "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$11.00, about 11.9% below its March 5 closing price of C$12.48

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 12 three months ago

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