Glauc Program Expansion and Successful Execution
Increased Glauconite inventory to 22 net locations; recently drilled the 4-23 Glauc well that was executed ahead of schedule and with costs essentially on budget. Well has been on production for ~2 weeks and early results are encouraging (still in cleanup and not yet stabilized). Infrastructure (sales pipeline and site work) installed to support this and future wells.
Hedging and Cash Protection
Significant hedging in place for 2026: ~37% of gross natural gas production hedged at an average of ~$3.19/Mcf and ~31% of crude oil production hedged at ~USD 63.45/bbl. Management emphasizes continued hedging to protect near-term cash flows.
Strong Shareholder Returns
Paid over $100 million of dividends (~$0.30 per share) since the dividend program began in summer 2022, demonstrating commitment to returning capital to shareholders.
Operational Discipline and Capital Allocation
Management intends to continue allocating capital toward debt reduction and selective drilling on high-return locations; drilling and infrastructure costs reported as in-line with expectations, indicating disciplined execution.
Commercial Development Opportunities (Data Centers / Power)
Announced arrangement to supply gas to a data center project in Central Alberta (customer nearing financing); substantial interest from other groups for data centers and power generation on company land, supported by provincial objective to attract ~$100 billion of data center development.
Favorable Market Levers and Oil Price Sensitivity
AECO prices showing recent strengthening. WTI trading around $78–$79/bbl; management notes each $1 increase in WTI approximates $1.4 million of annual cash flow benefit to the company. Company mix is ~80% gas, but oil price moves have a material cash impact.