CALGARY, AB, May 14, 2026 /CNW/ - Highwood Asset Management Ltd. ("Highwood" or the "Company") (TSXV:HAM) is pleased to announce its financial and operating results for the three months ended March 31, 2026 and to provide an operational update. The Company also announces that its unaudited interim consolidated financial statements and associated Management's Discussion and Analysis ("MD&A") for the period ended March 31, 2026, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca.
Highlights
Average corporate production of 6,005 boe/d in Q1 2026, representing an increase of approximately 20% from Q4 2025.
For the first quarter of 2026, Highwood delivered Adjusted EBITDA of $16.2 million ($1.07 per share) and adjusted funds flow of $14.3 million ($0.94 per share).(1)(2)
Highwood is extremely pleased with 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. As previously disclosed, 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 in January 2026, based on production, with both wells exceeding 25,000 bbl of gross oil production in January 2026. In addition, both wells paid out in approximately 3.5 months and are expected to payout two times in less than 12 months. In addition, the 13-02 well is expected to payout three times in less than 16 months. Highwood was unable to follow up these drills in the first quarter of 2026 due to infrastructure constraints and land use restrictions. However, Highwood is planning to upgrade infrastructure in Wilson Creek in the summer to alleviate the constraints. Furthermore, Highwood has worked with third parties to allow access to drill 2-3 wells in the Wilson Creek area commencing late in the second quarter.(3)
During the first quarter of 2026, Highwood drilled the 100/13-02-048-14W5 (the "Braz 13-02 well") which was brought onstream late in the first quarter. Current gross and net production is in excess of 300 bbls/d light oil and continuing to clean up. The Company is encouraged by these early results of the well which are at or above type curve expectations.
Highwood's hedging program helps mitigate volatility in commodity pricing with approximately 2,450 bbls/day and 1,800 bbls/day of oil hedged throughout 2026 and 2027, respectively, at an average contract price of approximately $94.50CAD/bbl and $93.50CAD/bbl (WTI-NYMEX). 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 is focused on reducing Net Debt / EBITDA to increase flexibility for the Company moving forward. At March 31, 2026, 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 March 31, 2026 is 15,186,818 which includes shares held in trust.
(3)
Based on Management's projections (not Independent Qualified Reserves Evaluators' forecasts) and applying the following pricing assumptions: Actual pricing up to April 30, 2026 and thereafter, WTI: US$85.00/bbl; MSW Diff: US$3.50/bbl; AECO: C$1.75/GJ; 0.735 CAD/USD. Management projections are used in place of Independent Qualified Reserves Evaluators' forecasts as Management believes it provides investors with valuable information concerning the liquidity of the Company.
Summary of Financial & Operating Results
Three Months Ended March 31,
2026
2025
%
Financial (in thousands)
Petroleum and natural gas sales
$
29,974
$
27,980
7
Transportation pipeline revenues
$
365
$
599
(39)
Total revenues, net of royalties(1)
$
951
$
21,010
(95)
Income (loss)
$
(14,503)
$
2,355
(716)
Funds flow from operations(5)
$
14,254
$
11,904
20
EBITDA(5)
$
16,229
$
13,770
18
Adjusted EBITDA(5)
$
16,213
$
13,690
18
Capital expenditures
$
10,414
$
33,172
(69)
Net debt (2)
$
113,985
$
121,209
(6)
Shareholders equity (end of period)
139,771
134,436
4
Shares outstanding (end of period)(6)
15,186
15,154
0
Weighted-average basic shares outstanding
14,118
