HIGHWOOD ASSET MANAGEMENT LTD. ANNOUNCES SECOND QUARTER 2025 RESULTS AND OPERATIONAL UPDATE
/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/
CALGARY, AB, Aug. 14, 2025 /CNW/ - Highwood Asset Management Ltd. ("Highwood" or the "Company") (TSXV:HAM) is pleased to announce financial and operating results for the three and six months ended June 30, 2025. The Company also announces that its unaudited financial statements and associated Management's Discussion and Analysis ("MD&A") for the period ended June 30, 2025, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca.
Highlights
Average corporate production of 5,632 boe/d in Q2 2025, representing an increase of approximately 7% from the first quarter of 2025 (average of 5,264 boe/d).
For the second quarter of 2025, Highwood delivered Adjusted EBITDA of $15.2 million ($1.00 per share) and adjusted funds flow of $13.4 million ($0.88 per share). Highwood also delivered income of $13.4 million ($0.92 per share), an increase of $2.9 million from the comparative period in 2024. (1)
Highwood commenced the 2H2025 drilling program, spudding the 100/13-15-048-14W5 unbooked well on June 12, 2025 in the Basal Belly River sand at Brazeau. The Company anticipates drilling four gross wells (3.4 net) for the second half of 2025, three gross (2.4 net) booked locations in Wilson Creek and one unbooked location near Bonnyville, Alberta.
On July 18, 2025, Highwood spud the 100/02-034-061-09W4 well, its first unbooked multi-lateral openhole well ("MLOH") into our new Stacked Mannville Sands play on a contiguous 11 section unencumbered block, located near Bonnyville, Alberta. The Company anticipates having results from the first well in early Fall.
As a result of significant PDP reserves growth, the Company's borrowing base has been increased from $120 million to $140 million. Furthermore, Highwood was pleased to add Business Development Bank of Canada as a new lender, joining Royal Bank of Canada, ATB Financial, Canadian Imperial Bank of Commerce and Macquarie Bank Limited.
With the continued volatility in commodity prices, Highwood has strategically added hedging. Over the past two weeks, Highwood's hedging program mitigates this volatility with approximately 2,200 bbls/day of oil hedged through the remainder of 2025 at an average contract price of approximately $95.00CAD/bbl (WTI-NYMEX) and 2,050 bbls/day of oil hedged in 2026 at an average contract price of approximately $93.00CAD/bbl (WTI-NYMEX). Further, the Company also has approximately 6,000GJ/day of natural gas hedged at an average contract price of approximately $3.15/GJ (AECO). The market value of Highwood's commodity contracts is approximately $13 million in the money as of August 13, 2025.
The Company is focused on reducing Net Debt / EBITDA to increase flexibility for the Company moving forward.
Notes to Highlights:
(1) See "Caution Respecting Reserves Information" and "Non-GAAP and other Specified Financial Measures".
Summary of Financial & Operating Results
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
%
2025
2024
%
Financial (expressed in thousands)
Petroleum and natural gas sales
$ 24,973
$ 38,729
(36)
$ 52,953
$ 67,818
(22)
Transportation pipeline revenues
577
698
(17)
1,176
1,387
(15)
Total revenues, net of royalties (1)
37,125
34,308
8
58,135
50,277
16
Income (loss)
13,385
10,475
28
15,740
9,931
58
Funds flow from operating activities (5)
13,395
19,821
(32)
25,299
34,548
(27)
Adjusted EBITDA (5)
15,154
22,462
(33)
28,844
39,897
(28)
Capital expenditures
9,016
9,047
-
42,188
34,704
22
Net debt (2)
117,936
98,438
21
Shareholder's equity (end of period)
147,906
114,004
30
Shares outstanding (end of period) (6)
14,461
14,838
(3)
Weighted-average basic shares outstanding
14,564
14,907
(2)
