#Canada #Calgary #Special Distribution #Strathcona Resources #Capital Structure

Strathcona Resources Ltd. Confirms Special Distribution Payment

Strathcona Resources Ltd. ("Strathcona"), a prominent heavy oil producer in North America, has recently finalized the payment of its special distribution, as previously announced, and disclosed important updates regarding its capital structure. The special distribution, amounting to $10.00 per share, is a significant step that reflects the company’s strong financial performance and commitment to returning value to its shareholders.

Details of the Special Distribution

As of December 22, 2025, Strathcona has confirmed the special distribution payment to its registered shareholders. Odyssey Trust Company is tasked with processing these distributions, which are expected to be mailed or wired shortly after the announcement. Shareholders who hold their shares through intermediaries will receive the special distribution based on the respective procedures of those financial institutions, which may vary.

From December 23, 2025, the common shares of Strathcona will be traded on the Toronto Stock Exchange (TSX) under new CUSIP and ISIN numbers. This adjustment means that holders of the common shares will not have any entitlement to the special distribution after the said date. Registered shareholders will receive updated DRS statements reflecting these changes, ensuring a smooth transition and maintaining clarity in their holdings.

Capital Structure Insights

In addition to the special distribution, Strathcona has announced a notice of redemption for its outstanding US$500 million 6.875% Senior Notes due in 2026. The redemption is set for December 30, 2025, allowing shareholders to anticipate changes in the debt structure positively impacting the company's financial standing. The Senior Notes will be redeemed at 100% of their principal, alongside accrued interests, reflecting Strathcona's proactive approach to managing its liabilities.

Making strides in its capital management, Strathcona has also closed an amended credit facility with an increased size totaling approximately $3.490 billion, up from $3.255 billion. Notably, the maturity has been extended to March 2030, providing the company with additional leverage and liquidity for its ongoing and future projects. This facility includes a $265 million accordion feature, enabling Strathcona to expand the facility size to $3.755 billion, should certain criteria be met.

Disposition of Marketable Securities

Reflecting sound market strategies, Strathcona disclosed that it disposed of its complete marketable security portfolio recently, generating cash proceeds amounting to approximately $1.390 billion. This action resulted in a remarkable gain of about $101 million since September 30, 2025, reflecting the company’s astute financial management.

When taking into account the special distribution and these capital changes, Strathcona expects to maintain around $2.1 billion in debt by the end of 2025. This positions the company favorably with approximately $1.4 billion in liquidity stemming from the amended credit facility. With a projected debt to EBITDA ratio of approximately 1.5x at a WTI price of US$60, Strathcona showcases its robust financial metrics.

Conclusion

Strathcona Resources Ltd. continues to display its commitment to financial growth and shareholder returns. The recent announcements regarding the special distribution and capital structure updates greatly enhance investors' confidence in the company's stability and future potential. As Strathcona further solidifies its position in the North American energy landscape, stakeholders are encouraged to stay informed and engaged with ongoing developments.

For more information about Strathcona and its operations, visit www.strathconaresources.com. For investor inquiries, contact [email protected], and for media-related questions, reach out to [email protected].