CALGARY, AB, March 17, 2026 /CNW/ - Highwood Asset Management Ltd. ("Highwood" or the "Company") (TSXV:HAM) is pleased to announce its financial and operating results for the three and twelve months ended December 31, 2025 and to provide the results of its independent oil and gas reserves evaluation as of December 31, 2025, prepared by GLJ Ltd. ("GLJ"). The Company also announces that its audited consolidated financial statements and associated Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2025, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca.
Highlights
Average corporate production of 5,040 boe/d in Q4 2025. Highwood expects Q1 2026 production to be approximately 6,000 boe/d, representing an increase of approximately 20% from Q4 2025.
For the fourth quarter of 2025, Highwood delivered Adjusted EBITDA of $10.9 million ($0.72 per share) and adjusted funds flow of $10.6 million ($0.70 per share).(1)(2)
Highwood continues to be encouraged by the results of the 102/13-02-043-06W5 (the "13-02 well") and the 100/11-33-042-05W5 (the "11-33 well") that were drilled and brought online in mid December. For the month of January 2026, both the 13-02 well and 11-33 well were recognized by multiple third parties as two of the top net oil wells in Alberta, based on production, with both wells exceeding 25,000 bbl of gross oil production. The 13-02 well and 11-33 well combined, averaged gross production of approximately 1,650 bbls/d light oil and 2,500 boe/d (80% liquids) including associated gas and natural gas liquids (1,450 bbls/d and 2,225 boe/d net). Both wells have remained strong in February averaging gross total production of approximately 2,100 boe/d (76% liquids, 1,860 boe/d net). In aggregate, the Company expects the wells to pay out in less than 3 months at current strip pricing.(1)(3)
Highwood's top priority remains shareholder value, and the Company achieved growth in all reserve categories, including the addition of 3,371 Mboe of new Proved Developed Producing ("PDP") reserves. Overall PDP reserves increased 7% to 19,594 Mboe, Total Proved ("1P") reserves increased 7% to 39,600 Mboe and Total Proved plus Probable ("2P") reserves increased 9% to 66,441 Mboe. As a result of the increase in reserves, Highwood realized a PDP NAV of $7.96/share, 1P NAV of $22.39/share and 2P NAV of $41.23/share. (2)
Highwood's hedging program helps mitigate volatility in commodity pricing with approximately 2,400 bbls/day and 1,400 bbls/day of oil hedged throughout 2026 and 2027, respectively, at an average contract price of approximately $94.00CAD/bbl and $91.00CAD/bbl (WTI-NYMEX). With the recent conflict in the Middle East and the resulting increase in oil prices, Highwood layered in approximately 350 bbls/day and 1,300 bbls/day of oil throughout 2026 and 2027, respectively, which is included in the volumes noted above. In addition, the Company has approximately 6,975GJ/day of natural gas hedged in 2026 at an average contract price of approximately $3.15/GJ (AECO). The Company realized a gain on commodity contracts of $3.1 million during the fourth quarter of 2025.
The Company is focused on reducing Net Debt / EBITDA to increase flexibility for the Company moving forward. At December 31, 2025, Highwood had approximately $325 million in tax pools, including more than $100 million in non-capital losses. Highwood does not anticipate being cash taxable for approximately three years or more.
Notes to Highlights:
(1)
See "Caution Respecting Reserves Information" and "Non-GAAP and other Specified Financial Measures".
(2)
Basic shares at December 31, 2025 is 15,171,169 which includes shares held in trust. Fully diluted shares at December 31, 2025 is 15,599,131.
(3)
Based on Management's projections (not Independent Qualified Reserves Evaluators' forecasts) and applying the following pricing assumptions: Actualpricing up to February 28, 2026 and thereafter, WTI: US$70.00/bbl; MSW Diff: US$3.50/bbl; AECO: C$1.75/GJ; 0.735 CAD/USD. Managementprojections are used in place of Independent Qualified Reserves Evaluators' forecasts as Management believes it provides investors with valuableinformation concerning the liquidity of the Company.
Summary of Financial & Operating Results
Three months ended December 31,
Year ended December 31,
2025
2024
%
2025
2024
%
Financial (in thousands)
Petroleum and natural gas sales
$ 21,463
$
$ 33,775
(36)
$ 98,169
$ 135,794
(28)
Transportation pipeline revenues
$ 534
$ 621
(14)
$ 2,172
$ 2,670
(19)
Total revenues, net of royalties(1)
$ 25,392
$ 21,167
20
$ 101,853
$ 109,498
(7)
Income
$ 5,719
$ 1,914
199
$ 21,707
$ 27,950
(22)
Funds flow from operations(5)
$ 8,973
$ 16,791
(47)
$ 45,877
$ 68,876
(33)
EBITDA(5)
$ 12,511
$ 20,365
(39)
$ 55,340
$ 80,760
(31)
Adjusted EBITDA(5)
$ 10,883
$ 18,995
(43)
$ 53,286
$ 79,144
(33)
Capital expenditures
$ 9,931
$ 10,999
(10)
$ 59,578
$ 66,451
(10)
Net debt (2)
$ 116,723
$ 97,832
19
Shareholder's equity (end of year)
$ 154,063
$ 132,087
17
Shares outstanding (end of year) (6)
14,186
14,671
(3)
Weighted-average basic shares
14,443
14,837
(3)
outstanding
Operations (3)
Production
Crude oil (bbls/d)
2,623
3,638
(28)
2,773
3,580
(23)
NGLs (boe/d)
759
775
(2)
853
752
13
Natural gas (mcf/d)
9,943
9,319
7
10,020
8,965
15
Total (boe/d)
5,040
5,966
(16)
5,296
5,781
(9)
Average realized prices (4)
Crude oil (Cdn$/bbl)
72.71
91.63
(21)
81.76
93.82
(13)
NGL (Cdn$/boe)
26.88
29.51
(9)
29.70
