#Canada #Oil and Gas #Calgary #Strathcona Resources #2024 Year-End

Strathcona Resources Ltd. Year-End 2024 Review

On March 4, 2025, Strathcona Resources Ltd. disclosed its year-end reserves and financial results for the year 2024, signaling strong operational performance and strategic growth. The Board of Directors, reflecting confidence in the company's direction, declared a quarterly dividend of $0.26 per common share, payable to shareholders on March 31, 2025. This is a 4% increase over the previous quarter, aligning with the expected growth in production.

2024 Reserves Growth Highlights

Strathcona announced its reserves as follows:

• - Proved Developed Producing (PDP) reserves reached 367 million barrels of oil equivalent (MMboe), marking an 8% increase over 2023.
• - Proved reserves (1P) were reported at 1,534 MMboe, reflecting a 3% growth.
• - Proved Plus Probable (2P) reserves saw a rise to 2,655 MMboe, a 2% increase.

This growth highlights Strathcona's commitment to enhancing its operational efficiencies and resource management, with a PDP finding and development cost of $13.49 per boe, yielding a 2024 PDP recycle ratio of 2.4x and an impressive 165% organic 2P reserve replacement.

Financial Performance Overview

In terms of production, Strathcona achieved significant milestones in Q4 2024:

• - Daily production averaged 187,203 boe, comprised of 70% oil and condensate and 77% liquids.
• - The company reported operating earnings of $190 million for the quarter and $970.5 million for the full year, translating to $0.89 per share for the quarter and $4.53 per share for the year.
• - Strathcona generated $606.1 million in free cash flow, equating to $2.83 per share for 2024, reflecting its capability to balance production and expenditure efficiently.

Q4 Highlights

The fourth quarter continued the momentum with:

• - Increased daily production to 187,203 boe, gradually improving from previous quarters.
• - Continued operational optimization by focusing on activities in Cold Lake and Lloydminster, where significant enhancements were recorded.
• - Noteworthy developments in the Montney region, where previous shut-in volumes returned due to favorable pricing.

Key Operational Updates

Strathcona's Cold Lake operations saw the successful tie-in of eight new lower drainage wells, leading to enhanced production rates with averages exceeding 28 Mbbls/day at a steam-oil ratio significantly reduced compared to previous measurements. Similarly, significant strides in the Lloydminster region, particularly at Druid, demonstrated record outputs that exceeded previous projections, with a remarkable 35% increase in production quarter-over-quarter.

Strategic Movements and Future Outlook

Looking ahead, Strathcona is poised for growth in 2025, with anticipated average daily production outperforming expectations at approximately 195 Mboe. The company's capital budget remains at $1.35 billion, signaling a stable investment strategy rooted in optimizing current assets and future projects. The Board plans to review production guidance mid-year, potentially revisiting targets based on performance metrics.

In terms of external factors, Strathcona is actively monitoring U.S. tariff developments, projecting that current hedging strategies and market dynamics will mitigate impacts on operations. With around 85 Mbbls per day sold in local markets and significant hedging in place, the financial outlook remains cautiously optimistic.

Conference Call Announcement

Strathcona will hold a conference call on March 5, 2025, to delve deeper into the results and future outlook, welcoming shareholders and analysts to discuss the reports further.

In conclusion, Strathcona Resources Ltd. continues to demonstrate robust growth in reserves and production capabilities, effectively positioning itself as a leader in the North American oil and gas sector. The announced dividend and quarterly results further affirm the company's ongoing commitment to shareholder value and sustainable operational excellence.

For more details, visit Strathcona Resources.