Saturn Oil & Gas Announces Q2 2026 Production of 41,447 Boe/d and $359 Million Revenue

Q2 2026 Production Overview and Volume Breakdown

Saturn Oil & Gas reported an average daily production of 41,447 barrels of oil equivalent (boe/d) in Q2 2026, with crude oil and liquids accounting for 81% of the mix. Operations in Saskatchewan and Alberta sustained production levels throughout the quarter. First-half 2026 production averaged 42,277 boe/d, slightly higher than the Q2 figure.

The production mix included 26,614 barrels per day of light and medium crude oil, 3,244 barrels per day of heavy crude oil, 3,858 barrels per day of natural gas liquids, and 46,385 thousand cubic feet per day of conventional natural gas. This aligns with Saturn's strategy as a light oil-focused producer developing premium assets across multiple zones in western Canada.

Revenue and Realized Pricing in Q2 2026

Petroleum and natural gas revenues for Q2 2026 totaled $359 million, supported by an average realized price of $95.11 per barrel of oil equivalent. This pricing environment underpinned the company’s operational and financial results during the period. The realized price reflects prevailing commodity market conditions and Saturn’s product mix.

Management reported an operating netback, net of derivatives, of $39.05 per boe for Q2 2026. The operating netback before derivative adjustments was $60.14 per boe, with realized derivative losses of $21.09 per boe. These netbacks account for royalties, net operating expenses, and transportation costs deducted from petroleum and natural gas sales, serving as key metrics in Saturn’s operational and capital allocation decisions.

Cash Flow and Capital Investment During the Quarter

Adjusted funds flow (AFF) was approximately $122 million in Q2 2026, while adjusted EBITDA reached about $142 million. These non-GAAP metrics help Saturn evaluate financial performance and cash generation. Free funds flow, defined as adjusted funds flow minus capital expenditures, totaled $82 million, representing cash available after investments for debt reduction, acquisitions, and potential shareholder returns.

Capital expenditures, including capitalized general and administrative costs, amounted to $40 million in Q2 2026. This disciplined capital deployment reflects Saturn’s focus on returns-driven development of its operated asset portfolio. The capital budget excludes acquisition and disposition activities and accounting impacts related to certain lease arrangements, as detailed in management’s supplementary disclosures.

Preliminary Financial Data Pending Finalization

Saturn management emphasized that the Q2 2026 figures are preliminary, unaudited, and subject to change as final financial closing procedures are completed. Actual results may differ materially from these initial estimates.

The preliminary data were prepared in good faith consistent with prior periods based on available information as of the announcement date. Investors are cautioned against placing undue reliance on these figures or drawing conclusions about unreported operating or financial data. Saturn notes that preliminary results are not a substitute for full IFRS-compliant financial statements and may not predict future performance due to various factors.

Full Q2 2026 Results and Management Conference Call Details

Saturn Oil & Gas plans to release and file full financial results for the three and six months ended June 30, 2026, on SEDAR+ after market close on Tuesday, July 29, 2026. A conference call and webcast is scheduled for Thursday, July 30, 2026, at 8:00 am Mountain Time (10:00 am Eastern Time) to review the complete Q2 2026 results. The session will feature remarks from Saturn’s leadership followed by a Q&A session.

Investors can access the live webcast via the gowebcasting platform at https://www.gowebcasting.com/14721. Toll-free dial-in for North America is 1-800-715-9871, with international access at 1-647-932-3411. An audio replay will be available one hour after the call and remain accessible for 12 months via the webcast link and Saturn’s corporate website.

Use of Non-GAAP Measures and Supplementary Financial Disclosures

Saturn employs several non-GAAP and supplementary financial measures—including adjusted funds flow, adjusted EBITDA, free funds flow, operating netback, and operating netback net of derivatives—to assess operational and financial performance. These metrics lack standardized IFRS definitions and may not be comparable to similar measures used by other companies. Saturn cautions that non-GAAP measures should not be considered more meaningful than GAAP measures such as net income and cash flows.

Detailed explanations and reconciliations of these measures are provided in Saturn’s management discussion and analysis (MD&A), filed with its financial statements. These disclosures, including the MD&A for the year ended December 31, 2025, and the three months ended March 31, 2026, are incorporated by reference into the preliminary Q2 2026 announcement and available on SEDAR+.

Company Strategy and Asset Portfolio Overview

Saturn Oil & Gas positions itself as a returns-driven Canadian energy firm focused on the efficient, responsible, and innovative development of high-quality, light oil-weighted assets. Its portfolio includes free-cash-flowing, low-decline operated properties in Saskatchewan and Alberta, offering a deep inventory of long-term economic drilling opportunities across multiple zones.

The company aims to grow per-share reserves, production, and cash flow with attractive returns on invested capital, supported by an acquisition strategy targeting accretive and complementary assets. Saturn’s shares trade on the Toronto Venture Exchange under ticker SOIL and on the OTCQX under ticker OILSF. Additional information and the corporate presentation are available at www.saturnoil.com.

Forward-Looking Statements and Associated Risks

Saturn disclosed that certain information in this announcement—including expected timing and content of Q2 2026 financial results and capital allocation plans—constitutes forward-looking information under securities laws. These statements rely on assumptions about commodity prices, drilling success, facility performance, capital availability, regulatory compliance, and acquisition integration.

The company acknowledges that forward-looking statements involve risks and uncertainties, and actual outcomes may differ materially. Key risks include operational challenges, reserve estimate uncertainties, commodity price and currency fluctuations, OPEC and OPEC+ actions, legislative changes impacting the oil and gas sector, and adverse weather. These risks are detailed in Saturn’s Annual Information Form for the year ended December 31, 2025, available on SEDAR+ at sedarplus.ca.

Product Mix and Conversion Methodology

Saturn’s reported average production in boe/d aggregates multiple product types per National Instrument 51-101 standards. The company uses a conversion ratio of 1 barrel to 6 thousand cubic feet (1 Bbl : 6 Mcf) of natural gas. In Q2 2026, light and medium crude oil averaged 26,614 barrels per day, and conventional natural gas averaged 46,385 thousand cubic feet per day (approximately 7,731 barrels per day at the stated conversion).

Saturn cautions that the boe conversion may be misleading if used alone, as the 1 Bbl : 6 Mcf ratio is based on energy equivalency at the burner tip and does not reflect value equivalency at the wellhead. Given significant price differences between oil and natural gas, the boe metric may not accurately represent the relative value of the company’s product mix.