Strathcona Resources Ltd. Reports Third Quarter 2026 Financial and Operating Results and Announces Quarterly Dividend

Quarterly royalties rose to $262 million from $128 million a year earlier, while production and operating costs also increased.

Rhea-AI Summary

Strathcona Resources (TSX: SCR) reported third-quarter 2026 results and raised its quarterly dividend to $0.32 per share. Production reached 123,486 barrels of oil equivalent per day, versus 116,201 a year earlier. Income was $298 million, down from $573 million, while non-GAAP operating earnings rose to $371 million from $236 million. Non-GAAP free cash flow reached $286 million versus $97 million. Debt net of marketable securities and cross-currency swaps fell to $1.711 billion from $1.927 billion in June.

The dividend increased 7% and is payable December 14 to holders of record December 4, 2026. Strathcona signed a definitive agreement to acquire Greenfire Resources, with closing expected in late January 2027, subject to shareholder, court and applicable regulatory approvals. Start-up of seven remaining initial Meota Central well pairs was delayed until early 2027 following a change in start-up method.

17 points · 1 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Greenfire Resources acquisition has a definitive agreement, with closing expected in late January 2027.
• Moderate pointProduction reached 123,486 barrels of oil equivalent daily, versus 116,201 in Q3 2025 and 117,022 in Q2 2026.
• Moderate pointNon-GAAP operating earnings reached $371 million, versus $236 million a year earlier and $376 million last quarter.
• Moderate pointNon-GAAP free cash flow reached $286 million, versus $97 million a year earlier and $298 million last quarter.
• Moderate pointNon-GAAP funds from operations reached $534 million, versus $383 million a year earlier and $538 million last quarter.
• Moderate pointOil and gas sales net of blending and other income rose to $1.135 billion from $807 million year-over-year.
• Moderate pointNet debt measure fell to $1.711 billion from $1.927 billion in June; September 2025 showed negative $83 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Lindbergh D05 South first oil is expected by year-end 2026, lifting field production to approximately 22,000 barrels daily.
• Moderate pointQuarterly capital expenditures declined to $239 million from $278 million a year earlier.

8 minor points

• Minor pointQuarterly dividend increased 7% to $0.32 per share, payable December 14, 2026.
• Minor pointCold Lake production improved 3% quarter-over-quarter, driven by Lindbergh's D01 West pad.
• Minor pointMeota Central has nine of 16 initial well pairs producing approximately 4,000 barrels daily, in line with expectations.
• Minor pointBodo-Cosine drilling program includes 11 producers and seven injector wells.
• Minor pointNine-month non-GAAP operating earnings increased to $941 million from $784 million a year earlier.
• Minor pointNine-month non-GAAP free cash flow increased to $633 million from $315 million a year earlier.
• Minor pointNine-month non-GAAP funds from operations increased to $1.436 billion from $1.355 billion a year earlier.
• Minor pointNine-month capital expenditures declined to $766 million from $1.005 billion a year earlier.

Negative

• Moderate pointQuarterly income fell to $298 million from $573 million a year earlier and $333 million last quarter.
• Moderate pointQuarterly royalties increased to $262 million from $128 million a year earlier.
• Moderate pointQuarterly energy operating costs increased to $67 million from $37 million a year earlier.
• Moderate pointQuarterly non-energy operating costs increased to $121 million from $104 million a year earlier.
• Moderate pointQuarterly transportation and processing costs increased to $104 million from $92 million a year earlier.
• Moderate pointNine-month production declined to 119,042 barrels of oil equivalent daily from 163,772 a year earlier.
• Moderate pointNine-month results included $42 million in contingent consideration expense, versus none a year earlier. 3.1% of market cap

4 minor points

• Minor pointGreenfire acquisition remains subject to shareholder, court and applicable regulatory approvals.
• Minor point. Forward-looking: it has not happened yet and may not happen.Meota Central's remaining seven initial well pairs face start-up delayed until early 2027 after a method change.
• Minor pointOther Lloydminster Conventional fields experienced facility downtime, offsetting Cactus Lake performance.
• Minor pointNine-month income declined to $670 million from $1.010 billion a year earlier.

Key Figures

Quarterly dividend: $0.32 per common share Dividend increase: 7% Production: 123,486 boe/d +3 more

Quarterly dividend

$0.32 per common share

Declared for the quarter

Dividend increase

7%

Increase from the prior quarter

Production

123,486 boe/d

Q3 2026

Operating Earnings

$371 million

Q3 2026

Free Cash Flow

$286 million

Q3 2026

Expected acquisition closing

Late January 2027

Greenfire acquisition; subject to shareholder, court and applicable regulatory approvals

Key Terms

free cash flow, non-gaap financial measure, steam-oil ratio, sagd

4 terms

free cash flow financial

"Free Cash Flow of $286 million ($1.34 / share)"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

non-gaap financial measure financial

"A non-GAAP financial measure which does not have a standardized meaning"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

steam-oil ratio technical

"at a steam-oil ratio (SOR) of 1.8x six months after start-up"

Steam-oil ratio (often abbreviated SOR or steam-to-oil ratio) is a measure of how much steam is injected into an oil reservoir to produce a unit of oil. It is calculated as the volume or mass of steam injected divided by the volume of oil produced over the same period (commonly expressed as cubic meters or tonnes of steam per cubic meter or barrel of oil). SOR can be reported as an instantaneous rate or as a cumulative number and is used to describe the thermal efficiency of steam-based recovery methods; it reflects only the steam volume/mass relative to oil produced and does not by itself account for other energy inputs, heat losses, or different measurement bases for oil (e.g., stock-tank vs. reservoir volumes).

sagd technical

"the dominant start-up process used in Alberta SAGD operations"

A steam-assisted gravity drainage (SAGD) is an oil extraction method that uses injected steam to heat thick, heavy crude underground so it becomes flowable and can be pumped to the surface through a second, lower well — think of warming cold honey so it pours more easily. Investors care because SAGD projects can unlock large oil reserves but are capital- and energy-intensive, affecting production costs, profitability, and environmental liabilities such as higher greenhouse gas emissions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CALGARY, AB, Nov. 8, 2026 /PRNewswire/ -- Strathcona Resources Ltd. ("Strathcona" or the "Company") (TSX: SCR) today reported its third quarter 2026 financial and operating results. The Board of Directors also declared a quarterly dividend of $0.32 per common share, a 7% increase from the prior quarter.

Q3 2026 Highlights

• Production of 123,486 boe/d (99.7% liquids)
• Operating Earnings of $371 million ($1.73 / share)
• Free Cash Flow of $286 million ($1.34 / share)⁽¹⁾

(1)	A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release

 

	Three Months Ended(2)			Nine Months Ended(2)
($ millions, unless otherwise indicated)	September 30, 2026	September 30, 2025	June 30, 2026	September 30, 2026	September 30, 2025
WTI (US$/bbl)	85.79	64.93	92.77	83.50	66.70
WCS Hardisty (C$/bbl)	100.56	75.10	107.95	95.91	77.79
AECO 5A (C$/gj)	1.48	0.60	1.55	1.64	1.42
Bitumen (bbls/d)	64,776	61,157	62,782	62,990	60,919
Heavy oil (bbls/d)	58,294	53,943	53,753	55,594	51,999
Condensate and light oil (bbls/d)	61	250	69	69	13,785
Total oil production (bbls/d)	123,131	115,350	116,604	118,653	126,703
Other NGLs (bbls/d)	17	234	12	15	8,082
Natural gas (mcf/d)	2,030	3,701	2,436	2,244	173,922
Production (boe/d)	123,486	116,201	117,022	119,042	163,772
Sales (boe/d)	124,016	115,852	116,130	119,455	164,558
% Liquids	99.7 %	99.6 %	99.7 %	99.7 %	82.3 %
Oil and natural gas sales, net of blending and   other income(1)	1,135	807	1,080	3,039	2,912
Royalties	262	128	232	636	371
Production and operating – Energy	67	37	62	206	171
Production and operating – Non-energy	121	104	109	338	422
Transportation and processing	104	92	96	294	385
General and administrative	23	22	26	77	74
Depletion, depreciation and amortization	150	151	140	432	544
Interest and finance costs(3)	37	37	39	115	161
Operating Earnings(1)	371	236	376	941	784
Other items(3)	73	(337)	43	271	(226)
Income and comprehensive income	298	573	333	670	1,010
Operating Earnings(1)	371	236	376	941	784
Non-cash items(3)	159	165	150	462	598
Gain (loss) on risk management and foreign    exchange contracts – realized, operating	4	(18)	12	33	(27)
Funds from Operations(1)	534	383	538	1,436	1,355
Capital expenditures(4)	(239)	(278)	(231)	(766)	(1,005)
Decommissioning costs	(9)	(8)	(9)	(37)	(35)
Free Cash Flow(1)	286	97	298	633	315
Debt, net of marketable securities and       cross-currency swap asset/liability(3)	1,711	(83)	1,927	1,711	(83)
Common shares (millions)	214	214	214	214	214

(1)	A non-GAAP financial measure which does not have a standardized meaning under IFRS® Accounting Standards (the "Accounting Standards"); see "Non-GAAP Measures and Ratios" section of this press release.
(2)	During the year ended December 31, 2025 the Company entered into three separate asset purchase and sale agreements to dispose of its Montney assets which has been presented in the Company's condensed consolidated interim financial statements and management's discussion and analysis for the three and nine months ended September 30, 2026 and 2025 and three months ended June 30, 2026 as discontinued operations. The financial and operating results for these periods have been presented throughout this press release based on the aggregation of continuing and discontinued operations. The aggregation of continuing and discontinued financial results are non-GAAP measures and do not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release.
(3)	See "Supplementary Financial Measures" Section of this press release.
(4)	Comparative periods have been revised to exclude land expenditures.

 

	Three Months Ended(1)			Nine Months Ended(1)
($/boe, unless otherwise indicated)	September 30, 2026	September 30, 2025	June 30, 2026	September 30, 2026	September 30, 2025
Oil and natural gas sales, net of blending      costs and other income(2)	99.47	75.74	102.27	93.20	64.82
Royalties	22.97	12.02	21.92	19.50	8.26
Production and operating – Energy	5.77	3.51	6.03	6.32	3.81
Production and operating – Non-energy	10.56	9.79	10.32	10.36	9.39
Transportation and processing	9.13	8.63	9.08	9.02	8.57
General and administrative	2.03	2.06	2.43	2.36	1.65
Depletion, depreciation and amortization	13.21	14.20	13.22	13.26	12.12
Interest and finance costs	3.30	3.44	3.61	3.53	3.59
Operating Earnings(2)	32.50	22.09	35.66	28.85	17.43
Effective royalty rate (%)(2)	23.1 %	15.9 %	21.4 %	20.9 %	12.7 %

(1)

During the year ended December 31, 2025 the Company entered into three separate asset purchase and sale agreements to dispose of its Montney assets which has been presented in the Company's condensed consolidated interim financial statements and management's discussion and analysis for the three and nine months ended September 30, 2026 and 2025 and three months ended June 30, 2026 as discontinued operations. The financial and operating results for these periods have been presented throughout this press release based on the aggregation of continuing and discontinued operations. The aggregation of continuing and discontinued financial results are non-GAAP measures and do not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release.

(2)

A non-GAAP financial measure which does not have a standardized meaning under the Accounting Standards; see "Non-GAAP Measures and Ratios" section of this press release.

Quarter Review and Near-Term Priorities

Production for the third quarter of 2026 of 123 Mboe / d (99.7% liquids) was up 6% versus the second quarter of 2026. Operating Earnings of $371 million ($1.73 / share) were approximately flat versus the prior quarter, with lower oil prices being offset by higher production. Free Cash Flow of $286 million ($1.34 / share) was also approximately flat versus the prior quarter, the majority of which was used to repay debt to approximately $1.7 billion. 

In Cold Lake, production improved 3% quarter-over-quarter, driven by strong performance at the Company's eight well pair D01 West pad at Lindbergh. Productive capacity from the pad continues to average approximately 7 Mbbls / d at a steam-oil ratio (SOR) of 1.8x six months after start-up, making it the most productive and lowest SOR pad the Company has drilled to date in Cold Lake. Current activity is focused on the follow-up four-well pair D05 South pad at Lindbergh, which is expected to achieve first oil by the end of 2026 and increase Lindbergh's production to approximately 22 Mbbls / d, a record for the field.

In Lloydminster Thermal, the Company remains focused on the start-up of the remaining initial well pairs at its Meota Central project. Nine of the 16 initial well pairs have completed start-up and are currently producing approximately 4,000 bbls / d, in line with expectations. The start-up of the remaining seven well pairs has been delayed until early in 2027, following the Company's decision to change from a "bullhead" start-up process (in which steam is injected directly into the reservoir) to a modified "circulation" start-up (in which steam is circulated within the well and back to surface). Circulation is the dominant start-up process used in Alberta SAGD operations, and while the circulation approach requires more time than the bullhead approach, it is expected to lead to better long-term steam conformance for the remaining well pairs based on their unique reservoir characteristics.

In Lloydminster Conventional, production was steady quarter-over-quarter at approximately 20 Mbbls / d, with strong base performance at the Company's Cactus Lake polymer flood offset by facility downtime during the quarter at other fields. Capital activity has been focused on the company's annual drilling program at Bodo-Cosine, where the company is drilling 11 producers and seven injector wells.

Dividend Increase

Strathcona's Board of Directors has declared a quarterly dividend of $0.32 per share to be paid on December 14, 2026 to shareholders of record on December 4, 2026. This represents a 7% increase from the prior quarter, in-line with quarter-over-quarter production growth per share. The Board of Directors will consider future dividend increases in concert with future production growth per share, in keeping with past practice.

Payments to shareholders who are not residents of Canada will be net of any Canadian withholding taxes that may be applicable. Dividends paid by Strathcona are considered "eligible dividends" for Canadian tax purposes.

Agreement to Acquire Greenfire Resources

Today the Company announced it had reached a definitive agreement to acquire Greenfire Resources Ltd. (TSX: GFR, NYSE: GFR). Shareholders are encouraged to review the joint press release between Strathcona and Greenfire for further details.

The proposed acquisition transaction is expected to close in late January 2027 following shareholder, court and applicable regulatory approvals, following which the Company expects to provide pro forma 2027 guidance as well as a detailed update to its pro forma long-range plan.

About Strathcona

Strathcona is one of North America's fastest growing pure play heavy oil producers with operations focused on thermal oil and enhanced oil recovery. Strathcona is built on a strategic approach to growth achieved through the consolidation and development of long-life assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX).

For more information about Strathcona, visit www.strathconaresources.com.

Non-GAAP Measures and Ratios

The financial results for the three and nine months ended September 30, 2026 and 2025 and the three months ended June 30, 2026, are presented below to reconcile continuing and discontinued operations to total results. Total results in a non-GAAP measure used by Management to assess the historical financial performance of the total business and is not intended to be indicative of future results.

	Three Months Ended September 30, 2026			Three Months Ended September 30, 2025			Three Months Ended June 30, 2026
($ millions, unless otherwise indicated)	Cont.	Disc.	Total	Cont.	Disc.	Total	Cont.	Disc.	Total
Revenues and other income
Oil and natural gas sales	1,459	—	1,459	1,009	3	1,012	1,486	—	1,486
Sale of purchased product	21	—	21	31	—	31	82	—	82
Royalties	(262)	—	(262)	(128)	—	(128)	(232)	—	(232)
Oil and natural gas revenues	1,218	—	1,218	912	3	915	1,336	—	1,336
Gain (loss) on risk management contracts	34	—	34	(27)	—	(27)	52	—	52
Midstream revenue	7	—	7	9	—	9	9	—	9
Other income	1	—	1	8	—	8	—	—	—
	1,260	—	1,260	902	3	905	1,397	—	1,397
Expenses
Purchased product	21	—	21	31	—	31	80	—	80
Blending costs	332	—	332	222	—	222	417	—	417
Production and operating	188	—	188	145	(4)	141	171	—	171
Transportation and processing	104	—	104	92	—	92	96	—	96
General and administrative	23	—	23	24	(2)	22	26	—	26
Interest	28	—	28	23	—	23	29	—	29
Transaction related costs	2	—	2	4	15	19	1	—	1
Finance costs	9	—	9	14	—	14	10	—	10
Depletion, depreciation and amortization	150	—	150	151	—	151	140	—	140
Foreign exchange loss (gain)	2	—	2	17	—	17	(2)	—	(2)
Change in decommissioning liabilities	6	—	6	—	—	—	1	—	1
	865	—	865	723	9	732	969	—	969
Gain on marketable securities	—	—	—	22	—	22	—	—	—
Gain on sale of assets, net	—	—	—	—	616	616	—	—	—
Income before income taxes	395	—	395	201	610	811	428	—	428
Income tax expense	97	—	97	57	181	238	95	—	95
Income and comprehensive    income	298	—	298	144	429	573	333	—	333

 

	Nine Months Ended September 30, 2026			Nine Months Ended September 30, 2025
($ millions, unless otherwise indicated)	Cont.	Disc.	Total	Cont.	Disc.	Total
Revenues and other income
Oil and natural gas sales	4,066	—	4,066	3,159	521	3,680
Sale of purchased product	107	—	107	53	—	53
Royalties	(636)	—	(636)	(336)	(35)	(371)
Oil and natural gas revenues	3,537	—	3,537	2,876	486	3,362
Gain (loss) on risk management contracts	15	—	15	(85)	—	(85)
Midstream revenue	25	—	25	16	—	16
Other income	1	—	1	14	—	14
	3,578	—	3,578	2,821	486	3,307
Expenses
Purchased product	105	—	105	53	—	53
Blending costs	1,055	—	1,055	798	—	798
Production and operating	544	—	544	509	84	593
Transportation and processing	294	—	294	274	111	385
General and administrative	77	—	77	64	10	74
Interest	85	—	85	107	—	107
Transaction related costs	3	—	3	19	19	38
Finance costs	30	—	30	41	13	54
Depletion, depreciation and amortization	432	—	432	454	90	544
Foreign exchange loss (gain)	4	—	4	(23)	—	(23)
Changes in decommissioning    liabilities	20	—	20	—	—	—
Contingent consideration	42	—	42	—	—	—
	2,691	—	2,691	2,296	327	2,623
Gain on marketable securities	—	—	—	69	—	69
Gain on sale of assets, net	—	—	—	—	621	621
Loss on settlement of other    obligations	—	—	—		(1)	(1)
Income before income taxes	887	—	887	594	779	1,373
Income tax expense	217	—	217	138	225	363
Income and comprehensive    income	670	—	670	456	554	1,010

 

	Three Months Ended September 30, 2026			Three Months Ended September 30, 2025			Three Months Ended June 30, 2026
($ millions, unless otherwise indicated)	Cont.	Disc.	Total	Cont.	Disc.	Total	Cont.	Disc.	Total
Revenues
Oil and natural gas sales	1,459	—	1,459	1,009	3	1,012	1,486	—	1,486
Sale of purchased product	21	—	21	31	—	31	82	—	82
Blending costs	(332)	—	(332)	(222)	—	(222)	(417)	—	(417)
Purchased product	(21)	—	(21)	(31)	—	(31)	(80)	—	(80)
Midstream revenue	7	—	7	9	—	9	9	—	9
Oil and natural gas sales, net of    blending	1,134	—	1,134	796	3	799	1,080	—	1,080
Expenses
Royalties	262	—	262	128	—	128	232	—	232
Production and operating	188	—	188	145	(4)	141	171	—	171
Transportation and processing	104	—	104	92	—	92	96	—	96
Field operating income	580	—	580	431	7	438	581	—	581
Depletion, depreciation and    amortization	150	—	150	151	—	151	140	—	140
General and administrative	23	—	23	24	(2)	22	26	—	26
Finance costs	9	—	9	14	—	14	10	—	10
Other income	(1)	—	(1)	(8)	—	(8)	—	—	—
Interest	28	—	28	23	—	23	29	—	29
Operating Earnings	371	—	371	227	9	236	376	—	376

 

	Nine Months Ended September 30, 2026			Nine Months Ended September 30, 2025
($ millions, unless otherwise indicated)	Cont.	Disc.	Total	Cont.	Disc.	Total
Revenues
Oil and natural gas sales	4,066	—	4,066	3,159	521	3,680
Sale of purchased product	107	—	107	53	—	53
Blending costs	(1,055)	—	(1,055)	(798)	—	(798)
Purchased product	(105)	—	(105)	(53)	—	(53)
Midstream revenue	25	—	25	16	—	16
Oil and natural gas sales, net of    blending	3,038	—	3,038	2,377	521	2,898
Expenses
Royalties	636	—	636	336	35	371
Production and operating	544	—	544	509	84	593
Transportation and processing	294	—	294	274	111	385
Field operating income	1,564	—	1,564	1,258	291	1,549
Depletion, depreciation and    amortization	432	—	432	454	90	544
General and administrative	77	—	77	64	10	74
Finance costs	30	—	30	41	13	54
Other income	(1)	—	(1)	(14)	—	(14)
Interest	85	—	85	107	—	107
Operating Earnings	941	—	941	606	178	784

"Oil and natural gas sales, net of blending and other income" is calculated by deducting purchased product and blending costs from oil and natural gas sales, sales of purchased product, midstream revenue and other income. Management uses this metric to isolate the revenue associated with the Company's production after accounting for the unavoidable cost of blending. Oil and natural gas sales, net of blending, is also reflected on a per boe basis calculated using sales volumes. This ratio is useful to management when analyzing realized pricing against benchmark commodity prices.

	Three Months Ended			Nine Months Ended
($ millions, unless otherwise indicated)	September 30, 2026	September 30, 2025	June 30, 2026	September 30, 2026	September 30, 2025
Oil and natural gas sales	1,459	1,012	1,486	4,066	3,680
Sales of purchased products	21	31	82	107	53
Other income	1	8	—	1	14
Purchased product	(21)	(31)	(80)	(105)	(53)
Blending costs	(332)	(222)	(417)	(1,055)	(798)
Midstream revenue	7	9	9	25	16
Oil and natural gas sales, net of    blending and other income	1,135	807	1,080	3,039	2,912

"Effective royalty rate" is calculated by dividing royalties by oil and natural gas sales, sale of purchased product and midstream revenue, net of blending and purchased product. This metric allows management to analyze the movement of royalty expenses in relation to realized and benchmark commodity prices.

"Operating Earnings – Discontinued" is considered a key financial metric for evaluating the profitability of Strathcona's discontinued operations. "Operating Earnings - Continuing" is a GAAP financial measure as it is used by the Chief Operating Decision Makers to evaluate profit or loss and is presented in the condensed consolidated interim financial statements for three and nine months ended September 30, 2026 and 2025. A quantitative reconciliation of Operating Earnings – Discontinued to the most directly comparable GAAP financial measure, Oil and natural gas sales, is presented above.

"Funds from Operations" is used by management to analyze operating performance and provides an indication of the funds generated by Strathcona's principal business to either fund operating activities, re-invest to either maintain or grow the business or make debt repayments. Funds from Operations is derived from Operating Earnings and adjusted for depletion, depreciation and amortization ("DD&A"), finance costs, gains and losses on risk management contracts – realized and gains and losses on foreign exchange - realized.

"Free Cash Flow" is a key financial metric for evaluating Strathcona's liquidity as it indicates the funds available for deleveraging, funding future growth, or shareholder returns. Free Cash Flow is derived from Operating Earnings and adjusted for DD&A, finance costs, gains and losses on risk management contracts – realized and gains and losses on foreign exchange - realized, capital expenditures and decommissioning costs.

Quantitative reconciliations of Funds from Operations and Free Cash Flow for both continuing and discontinued operations to the most directly comparable GAAP financial measure, Operating Earnings, are set forth below.

	Three Months Ended			Nine Months Ended
($ millions, unless otherwise indicated)	September 30, 2026	September 30, 2025	June 30, 2026	September 30, 2026	September 30, 2025
Operating Earnings - Continuing	371	227	376	941	606
Depletion, depreciation and amortization	150	151	140	432	454
Finance costs	9	14	10	30	41
Gain (loss) on risk management contracts -      realized	7	(20)	12	35	(25)
Foreign exchange (loss) gain - realized	(3)	2	—	(2)	(2)
Funds from Operations - Continuing	534	374	538	1,436	1,074
Capital expenditures(1)	(239)	(278)	(231)	(766)	(755)
Decommissioning costs	(9)	(8)	(9)	(37)	(33)
Free Cash Flow - Continuing	286	88	298	633	286
	Three Months Ended			Nine Months Ended
($ millions, unless otherwise indicated)	September 30, 2026	September 30, 2025	June 30, 2026	September 30, 2026	September 30, 2025
Operating Earnings - Discontinued	—	9	—	—	178
Depletion, depreciation and amortization	—	—	—	—	90
Finance costs	—	—	—	—	13
Funds from Operations - Discontinued	—	9	—	—	281
Capital expenditures(1)	—	—	—	—	(250)
Decommissioning costs	—	—	—	—	(2)
Free Cash Flow - Discontinued	—	9	—	—	29

The following table reconciles Operating Earnings, Funds from Operations and Free Cash Flow from continuing and discontinued operations:

	Three Months Ended			Nine Months Ended
($ millions, unless otherwise indicated)	September 30, 2026	September 30, 2025	June 30, 2026	September 30, 2026	September 30, 2025
Operating Earnings	371	236	376	941	784
Depletion, depreciation and amortization	150	151	140	432	544
Finance costs	9	14	10	30	54
Gain (loss) on risk management contracts -      realized	7	(20)	12	35	(25)
Foreign exchange (loss) gain - realized	(3)	2	—	(2)	(2)
Funds from Operations	534	383	538	1,436	1,355
Capital expenditures(1)	(239)	(278)	(231)	(766)	(1,005)
Decommissioning costs	(9)	(8)	(9)	(37)	(35)
Free Cash Flow	286	97	298	633	315

(1) Comparative periods have been revised to exclude land expenditures.

Supplementary Financial Measures

"Interest and finance costs" is an aggregation of interest and finance costs. Management uses this metric to obtain a fulsome understanding of all interest and accretion costs the Company is subject to.

"Other items" is an aggregation of risk management contracts, foreign exchange, transaction related costs, gain on marketable securities, gain on sale of assets, deferred tax expense, change in decommissioning liabilities, loss on contingent consideration and loss on settlement of other obligations from both continuing and discontinued operations. They are presented in such a manner to yield prominence to key financial metrics such as income and comprehensive income, Operating Earnings, Funds from Operations and Free Cash Flow.

	Three Months Ended			Nine Months Ended
($ millions, unless otherwise indicated)	September 30, 2026	September 30, 2025	June 30, 2026	September 30, 2026	September 30, 2025
(Gain) loss on risk management contracts	(34)	27	(52)	(15)	85
Foreign exchange loss (gain)	2	17	(2)	4	(23)
Transaction related costs	2	19	1	3	38
Gain on marketable securities	—	(22)	—	—	(69)
Gain on sale of assets	—	(616)	—	—	(621)
Deferred tax expense	97	238	95	217	363
Change in decommissioning liabilities	6	—	1	20	—
Loss on contingent consideration	—	—	—	42	—
Loss on settlement of other obligations	—	—	—	—	1
Other items	73	(337)	43	271	(226)

"Non-cash items" is an aggregation of depletion, depreciation and amortization, and finance costs.

"Debt, net of marketable securities and cross-currency swap asset/liability" is comprised of debt less marketable securities and cross-currency swap asset/liability, as derived under the Accounting Standards.

Presentation of Oil and Gas Information

This press release contains various references to the abbreviation "boe" which means barrels of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ("mcf") of natural gas to one barrel ("bbl") of crude oil. Boe may be misleading, particularly if used in isolation. A boe conversion rate of 1 bbl : 6 mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 bbl : 6 mcf, utilizing a conversion ratio of 1 bbl : 6 mcf may be misleading as an indication of value.

References in this press release to initial production rates and other short-term production rates and test results are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating aggregate production for the Company or the assets for which such rates are provided. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the test results should be considered to be preliminary.

Product Type Production Information

National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities includes condensate within the natural gas liquids product type. The Company has disclosed condensate as combined with light oil and separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this presentation provides a more accurate description of its operations and results therefrom. References to "oil and condensate" in this press release refer to, collectively, light and medium crude oil, heavy crude oil, bitumen and natural gas liquids. References to "natural gas" in this press release refer to conventional natural gas. References to "liquids" in this press release refer to, collectively, bitumen, heavy oil, condensate and light oil (comprised of condensate and light oil) and other natural gas liquids (comprised of ethane, propane and butane only).

The Company's quarterly average daily production volumes for three and nine months ended 2026 and 2025, and the references to "natural gas", "crude oil" and "condensate", reported in this press release consist of the following product types, as defined in NI 51-101 and using a conversion ratio of 6 mcf : 1 bbl where applicable:

	Three Months Ended			Nine Months Ended
	September 30, 2026	September 30, 2025	June 30, 2026	September 30, 2026	September 30, 2025
Heavy crude oil (bbl/d)	58,294	53,943	53,753	55,594	51,999
Light and medium crude oil (bbl/d)	48	18	56	58	314
Total crude oil (bbl/d)	58,342	53,961	53,809	55,652	52,313
Bitumen (bbl/d)	64,776	61,157	62,782	62,990	60,919
NGLs (bbl/d)	30	466	25	26	21,553
Total liquids (bbl/d)	123,148	115,584	116,616	118,668	134,785
Conventional natural gas (mcf/d)	2,030	3,701	2,436	2,244	173,922
Total (boe/d)	123,486	116,201	117,022	119,042	163,772

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. The forward-looking information in this press release is based on Strathcona's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon.

The use of any of the words "expect", "target", "anticipate", "intend", "estimate", "objective", "ongoing", "may", "will", "project", "believe", "depends", "could" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: the Company's business strategy and future plans; expected operating strategy; the Company's capital program, including the anticipated productive capacity and steam-oil ratio of the D01 West pad at Lindbergh, the expected timing of first oil from the four-well pair D05 South pad at Lindbergh and the anticipated increase in production at Lindbergh to approximately 22 Mbbls / d, the expected timing of start-up of the remaining seven initial well pairs at the Meota Central project and the anticipated benefits of the circulation start-up process, including better long-term steam conformance, and the Company's drilling program at Bodo-Cosine; the declaration and payment of the Company's quarterly dividend, including the amount and timing thereof, and the consideration of future dividend increases in concert with future production growth; the proposed acquisition of Greenfire Resources Ltd., including the expected timing of closing and the receipt of shareholder, court and applicable regulatory approvals; the expected timing of the Company's 2027 guidance and update to its long-range plan; and the Company's future allocation of free cash flow, including debt repayment.

All forward-looking information reflects Strathcona's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of the Company's current expectations with respect to such things as: Strathcona's ability to generate sufficient cash flow to fund debt repayment and dividend payments; Strathcona's ability to declare and pay dividends; the success of Strathcona's operations and growth and expansion projects, including the start-up of the remaining well pairs at the Meota Central project and first oil from the D05 South pad at Lindbergh on the anticipated timelines; expectations regarding production growth, future well production rates and reserve volumes; expectations regarding Strathcona's capital program, including the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; the satisfaction of the conditions to closing of the proposed acquisition of Greenfire Resources Ltd., including the receipt of required shareholder, court and regulatory approvals, in a timely manner; the availability of third party services; prevailing and future royalty regimes and tax laws; future well production rates and reserve volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Strathcona's assets; decommissioning obligations; Strathcona's ability to comply with its financial covenants; and the governmental, regulatory and legal environment. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct.

The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, without limitation: changes in commodity prices; changes in the demand for or supply of Strathcona's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing Russia/Ukraine conflict and the conflict in the Middle East, and other heightened geopolitical risks and the ability of the Company to carry on operations as contemplated in light of the foregoing; determinations by the Organization of the Petroleum Exporting Countries and other countries as to production levels; unanticipated operating results or production declines; delays in, or unsuccessful, start-up of new well pairs and pads; changes in tax or environmental laws, climate change, royalty rates or other regulatory matters; changes in Strathcona's development plans or by third party operators of Strathcona's properties; competition from other producers; inability to retain drilling rigs and other services; the failure to obtain the required shareholder, court and regulatory approvals for, or to satisfy the other conditions to, the proposed acquisition of Greenfire Resources, or delays in or the failure to complete such acquisition; failure to realize the anticipated benefits of the Company's acquisitions; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Strathcona's oil and gas reserve and contingent resource volumes; limited, unfavourable or a lack of access to capital markets or other sources of capital; increased costs; a lack of adequate insurance coverage; the impact of competitors; and the other factors discussed under the "Risk Factors" section in Strathcona's Management's Discussion & Analysis and Annual Information Form, each for the year ended December 31, 2025, and from time to time in Strathcona's public disclosure documents, which are available at www.sedarplus.ca.

Declaration of dividends is at the sole discretion of the board of directors of Strathcona and will continue to be evaluated on an ongoing basis. There are risks that may result in Strathcona changing, suspending or discontinuing its quarterly dividends, including changes to its free cash flow, operating results, capital requirements, financial position, debt levels, market conditions or corporate strategy and the need to comply with requirements under its credit agreement and applicable laws respecting the declaration and payment of dividends. There are no assurances as to the continuing declaration and payment of future dividends or the amount or timing of any such dividends.

This earnings release contains information that may constitute future-oriented financial information or financial outlook information (collectively, "FOFI") about Strathcona's prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. Strathcona's actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. Strathcona has included FOFI in order to provide readers with a more complete perspective on Strathcona's future operations and management's current expectations relating to Strathcona's future performance. Readers are cautioned that such information may not be appropriate for other purposes.

The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Strathcona does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

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SOURCE Strathcona Resources Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will Strathcona pay its increased third-quarter 2026 dividend?

Strathcona will pay $0.32 per common share on December 14, 2026, to shareholders of record on December 4, 2026. The quarterly dividend is 7% higher than the prior quarter.

When is Strathcona's acquisition of Greenfire Resources expected to close?

The acquisition is expected to close in late January 2027, following shareholder, court and applicable regulatory approvals. Strathcona has signed a definitive agreement to acquire Greenfire Resources.

Why did Strathcona delay the remaining Meota Central well start-ups?

Strathcona delayed the remaining seven initial well-pair start-ups until early 2027 after switching from direct steam injection into the reservoir to circulation within the well and back to the surface. The company expects the slower circulation method to improve long-term steam distribution for those wells' reservoir characteristics.

How is Strathcona's quarterly dividend treated for Canadian tax purposes?

Strathcona's dividends are eligible dividends for Canadian tax purposes. Payments to shareholders who are not Canadian residents will be net of any applicable Canadian withholding taxes.

When will Strathcona provide 2027 guidance after the Greenfire acquisition?

Strathcona expects to provide pro forma 2027 guidance and a detailed update to its combined long-range plan after the proposed Greenfire acquisition closes. Closing is expected in late January 2027, following shareholder, court and applicable regulatory approvals.