/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/
CALGARY, AB, Nov. 10, 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 nine months ended September 30, 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 September 30, 2026, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca.
Highlights
-- Average corporate production was 2,494 boe/d for the third quarter of
2026, which was impacted by scheduled turnarounds in September at
Highwood's Brazeau 6-27 facility and a third-party's turnaround on the
gas plant that services the Brazeau area. As a result, oil production was
shut in for approximately 8 days, while gas and NGLs were shut in and/or
re-injected for approximately 23 days. The Brazeau 6-27 facility was
anticipated to take 8-10 days while the third-party turnaround was
originally anticipated to take approximately 18 days.
-- For the third quarter of 2026 and post the disposition of Wilson Creek,
Highwood delivered EBITDA of $3.8 million ($0.25 per share) and adjusted
funds flow of $3.5 million ($0.23 per share).(1)(2)
-- Highwood plans to advance a balanced capital program focused on continued
drilling activity, enhanced recovery initiatives and the delineation of
longer-dated growth opportunities. Highwood recently finished the
drilling of its first well within the Twining area of Alberta in the
Pekisko formation. Further, the Company recently spud one well within
the Mannville stack in eastern Alberta and plans to spud an additional
well within the next 30 days. At the same time, Highwood continues to
increase waterflood activity at Brazeau, ultimately reducing sustaining
capital by reducing corporate base declines.
-- Furthermore, Highwood intends to further evaluate its lands in the Spruce
Lake Area of Saskatchewan, including the potential application of
steam-assisted gravity drainage ("SAGD") development, and expects to
pursue delineation work, strategic financing and partnership discussions
over the coming months to advance these opportunities in a disciplined
manner. Highwood plans to shoot 3D seismic over its Spruce Lake block
late in the fourth quarter of 2026 and is evaluating financing
alternatives to advance a first SAGD phase.
-- Highwood has purchased and cancelled 170,054 common shares under its
normal course issuer bid ("NCIB") since the first purchase on July 14,
2026 to October 31, 2026.
-- Highwood's hedging program helps mitigate volatility in commodity pricing
with approximately 1,100 bbls/day and 1,500 bbls/day of oil hedged
throughout 2026 and 2027, respectively, at an average contract price of
approximately $93.50CAD/bbl and $94.00CAD/bbl (WTI-NYMEX). In addition,
the Company has approximately 3,000GJ/day of natural gas hedged in 2026
at an average contract price of approximately $3.17/GJ (AECO). (3)
-- The Company is focused on maintaining a strong financial position to
maintain flexibility to provide returns to shareholders. At September 30,
2026, Highwood had approximately $230 million in tax pools, including
roughly $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 common shares at September 30, 2026 are 15,095,873
which includes shares held in trust.
(3) CAD amounts include USD denominated commodity contracts
converted into CAD at a rate of approximately 1.41
USD/CAD
Summary of Financial & Operating Results
Three Months Ended September Nine Months Ended September
30, 30,
2026 2025 % 2026 2025 %
Financial
(expressed in
thousands)
Petroleum and
natural gas
sales $ 15,469 $ 23,753 (35) $ 80,029 $ 76,706 4
Transportation
pipeline
revenues 195 462 (58) 905 1,638 (45)
Total revenues,
net of royalties
and commodity
contracts
(1) (5,908) 18,326 (132) 29,718 76,461 (61)
Income (loss) (11,432) 248 (4,710) 4,783 15,988 (70)
Funds flow from
operating
activities (5) 5,218 11,605 (55) 29,339 36,904 (20)
EBITDA (5) 3,843 13,896 (72) 31,884 42,829 (26)
Capital
expenditures,
net of
dispositions 6,518 7,459 (13) (72,073) 49,647 (245)
Net Debt (2) 19,077 116,723 (84)
Shareholders'
equity (end of
period) 158,933 148,206 7
Shares
outstanding (end
of period) (6) 13,814 14,328 (4)
Weighted-average
basic shares
outstanding 14,012 14,504 (3)
Operations (3)
Production
Crude oil
(bbls/d) 1,325 2,787 (52) 2,348 2,824 (17)
NGLs (boe/d) 310 841 (63) 714 885 (19)
Natural gas
(mcf/d) 5,158 9,749 (47) 8,704 10,046 (13)
Total (boe/d) 2,494 5,253 (53) 4,513 5,383 (16)
Average realized
prices (4)
Crude oil
(Cdn$/bbl) 111.70 82.52 35 107.37 84.60 27
NGL (Cdn$/boe) 40.28 27.07 49 35.72 30.52 17
Natural gas
(Cdn$/mcf) 1.49 0.56 167 1.78 1.50 18
Operating netback
(per BOE) (5) 29.77 25.12 19 35.83 27.46 30
(1) Includes realized and unrealized gain and losses on
commodity contracts.
(2) Net Debt consists of bank debt and working capital
deficit excluding commodity contract assets and/or
liabilities, current portion of decommissioning liabilities
and lease liabilities.
(3) For a description of the boe conversion ratio, see
"Basis of Barrel of Oil Equivalent".
(4) Before hedging.
(5) See "Non-GAAP and Other Specified Financial Measures".
(6) Shares outstanding are adjusted for treasury shares
purchased and held in trust.
The three month period ended September 30, 2026 is the first period after the disposition of Wilson Creek which accounted for approximately 40% of the production in the comparative three month period.
Operational Update
Third quarter 2026 production averaged approximately 2,500 boe/d, reflecting Highwood's planned Brazeau turnaround and the third-party Keyera Brazeau gas plant turnaround in September 2026. Both turnarounds are complete, and there is no major planned maintenance for the remainder of 2026.
Drilling Update
Pekisko -- Highwood recently drilled its first Pekisko horizontal in the Twining area of central Alberta in approximately 10 days, encountering good reservoir quality throughout the lateral. Completion is planned within the next 30 days.
Bonnyville Mannville -- Highwood recently spud one well within the Mannville stack in the Bonnyville area of eastern Alberta and plans to spud a second well in the next 30 days, including the Company's first circulating string ("circ string") horizontal.
Spruce Lake SAGD Opportunity
Highwood plans to shoot a 3D seismic program over its Spruce Lake block late in the fourth quarter of 2026 to map the extent of the Colony channel and support the design of a first SAGD phase. Consistent with its prior disclosure, Highwood intends to leverage its longstanding industry relationships and energy infrastructure experience to fund its first SAGD phase with project-level capital financed alongside strategic industry partnerships and/or marketing off-take agreements; all structured to limit equity dilution to existing Highwood shareholders. There can be no assurance that definitive agreements will be entered into or that the project will be financed on acceptable terms.
Outlook
The primary focus in the near-term is maintaining flexibility with lower leverage and continuing to focus on shareholder returns. Corporately, the Company is dedicated to growing Free Cash Flow, on a per share basis, while using prudent leverage to provide maximum flexibility for organic growth and/or other strategic M&A opportunities, with a longer-term goal to provide significant returns of capital to shareholders. Highwood will continue to review and assess opportunities which are accretive to the Company as Highwood seeks to grow its operations. The Company will also continue to assess land offerings in strategic areas where the Company sees significant growth opportunities.
Long Term Incentive Plan Grants
The Company has granted 160 thousand Performance Share Units ("PSUs") to Officers of the Company and 18 thousand Deferred Share Units ("DSUs") to non-management directors. All PSUs and DSUs were granted effective November 10, 2026 and pursuant to the Company's share based compensation plan and are subject to the terms of the applicable grant agreements and the requirements of the TSX Venture Exchange ("TSXV").
The PSUs granted vest on the third anniversary of the date of grant.
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