Saturn Oil & Gas Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Adam Gill - Ventum Financial Corp - Analyst : Hey, good morning, guys. Great job on the quarter. A couple of questions for you. First off, OpEx performance has been pretty solid since closing the Flat Lake, Battrum acquisition in Q2 last year. Is there much more room for reduction? Or are we getting kind of to the optimization of the OpEx structure within the current company?

Question: Adam Gill - Ventum Financial Corp - Analyst : Okay. Great. And then just on production, you have been outperforming over the last couple of quarters here. Any thoughts on potential to reduce CapEx and still hit guidance? Or is the preference to keep CapEx where it is and have volumes come in higher than expected? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 2:00PM, SOIL.TO - Q2 2025 Saturn Oil & Gas Inc Earnings Call

Question: Adam Gill - Ventum Financial Corp - Analyst : Okay. Great. And last question for me. Through Q2 and Q3, you've been buying back shares, did the SIB and also accelerated debt repayment. How are you weighing the 2 in terms of allocating free cash flow into the back half of the year?

Question: Adam Gill - Ventum Financial Corp - Analyst : Hey, great, thanks for the answers. That's all for me, Thank you, sir.

Question: Jamie Summerville - Roth Canada - Analyst : Good morning. Thanks.If it isn't too commercially sensitive, can you provide some thoughts on the service industry cost trends and the competitive landscape for those services coming out of spring breakup and how you're managing your relationships there? You're stressing your flexibility on spending. So I imagine you're not fully contracted and committed to spending your 2025 budget. But it's always an art in terms of how you manage those relationships. And I'm particularly interested to know if you're seeing any differences between Saskatchewan and Alberta in terms of cost trends. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 2:00PM, SOIL.TO - Q2 2025 Saturn Oil & Gas Inc Earnings Call

Question: Jamie Summerville - Roth Canada - Analyst : Very helpful. Thank you.

Question: Abhishek Patwardhan - Sculptor Capital - Analyst : Hey guys, good job on the quarter. Given how well your, how well the wells are performing, how much more evidence do you need before you get credit for a better type curve?

Question: Abhishek Patwardhan - Sculptor Capital - Analyst : Got it. Your guidance for CapEx for the third quarter, how does it track versus your full year CapEx guidance? I think it was $300 million.

Question: Abhishek Patwardhan - Sculptor Capital - Analyst : Right. But following the logic that you just mentioned, 3Q being the highest CapEx quarter, your guidance is $80 million to $90 million. So if I just extrapolate and it's a rough math, but if I extrapolate that, I think you'll end up less than $300 million.

Question: Abhishek Patwardhan - Sculptor Capital - Analyst : Got it. And out of the cost outperformance in second quarter, how much of that from a dollar per BOE perspective came from carbon tax -- carbon tax waiver?

Question: Abhishek Patwardhan - Sculptor Capital - Analyst : And how much visibility do you have on that? Is that -- is the carbon tax waived forever? Is there a deadline?

Question: Abhishek Patwardhan - Sculptor Capital - Analyst : Got it. Thank you. That's it from me.

Question: Michael Zuk - Athena Capital Markets - Analyst : Just a quick question from my side. How should investors view the company's appetite for acquisitions given the current debt load with $300 million in liquidity and your equity currency up 24% month to date?

Question: Michael Zuk - Athena Capital Markets - Analyst : Do you have a bias right now in terms of using more leverage on the acquisition versus your equity capital? Or is it case by case?

Question: Michael Zuk - Athena Capital Markets - Analyst : Last question from my side. Are you seeing better deals in certain areas of your 3 core areas?

Question: Michael Zuk - Athena Capital Markets - Analyst : Yeah, Okay, thanks for your time.