Athabasca Oil Announces 2025 Third Quarter Results Highlighted by Consistent Operational Performance, Continued Share Buybacks and a Pristine Financial Position

2025-10-30

TSX - Toronto Stock Exchange · Oil · Bitumen · Natural Gas · Natural Gas Liquids · Canada

CALGARY, Alberta, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or the “Company”) is pleased to report its third quarter results marked by consistent operational performance across all assets, strong financial performance, and delivery on its return of capital commitments. With low corporate break-evens, a portfolio of long-life assets and a pristine balance sheet, the Company is well positioned to advance its strategic priorities.

Q3 2025 Consolidated Corporate Results

Production: Average production of 39,599 boe/d (98% Liquids), representing 2% (11% per share) growth year-over-year. Cash Flow: Adjusted Funds Flow of $129 million ($0.26 per share). Cash Flow from Operating Activities of $157 million. Free Cash Flow of $56 million from Athabasca (Thermal Oil). Capital Program: $96 million total capital expenditures, including $61 million at Leismer to support the progressive growth project to 40,000 bbl/d. Shareholder Returns: Purchased 34 million shares through its buy-back program year-to-date for an aggregate $192 million returned to shareholders. The Company is committed to returning 100% of Free Cash Flow (Thermal Oil) to shareholders in 2025 and has completed ~$675 million in share buybacks since March 31, 2023.

Operations Highlights

Leismer: Consistent production of ~28,000 bbl/d (September 2025) with two sustaining well pairs ramping up and two additional well pairs behind pipe to support productive capacity. The progressive growth project to 40,000 bbl/d remains on time and on budget, with ~50% of the $300 million project capital to be complete by year-end 2025. Leismer is producing at facility capacity and the next growth phase will follow the planned May 2026 facility turnaround. The Company recently spud a six well-pair campaign on Pad L11 in anticipation of future growth. Corner: Development plans are focused on a capital-efficient modular design with 15,000 bbl/d project phases. Development is expected to be self-funded while maintaining a strong balance sheet and a focus on shareholder returns. The Company anticipates the first phase to be sanction ready in 2026, contingent on a favorable macro environment, and development will provide substantial growth in 2029. Hangingstone: Production of ~9,000 bbl/d (September 2025). Hangingstone has delivered ~$300 million in Operating Income to the organization over the last three years. Duvernay Energy Corporation (“DEC”): Strong initial rates from a four well pad (30% working interest) with average IP30s of ~1,050 boe/d (89% Liquids). The wells rank among Alberta’s top Duvernay wells in August. DEC completed a three well pad (100% working interest) in September, which will be on production in the fourth quarter. DEC is positioned for strong operational momentum with an exit target of 5,500 - 6,000 boe/d.

Resilient Producer

Pristine Financial Position: The Company has a Net Cash position of $93 million, Liquidity of $466 million (including $335 million cash) and a long-dated maturity of 2029 on its term debt. Low Break-evens: Long-life, low decline assets afford Athabasca with a sustaining capital advantage. The Company’s five-year Thermal Oil capital program, including Leismer growth initiatives, is fully funded within cash flow at ~US$50/bbl WTI. Long term Thermal Oil sustaining capital investment is estimated at ~C$8/bbl (five‐year annual average) to hold production flat.

2025 Corporate Guidance

Consolidated Production Outlook: The Company anticipates production at the upper end of its original guidance of 37,500 – 39,500 boe/d. Thermal Oil production is expected to average ~35,500 bbl/d and DEC is expected to average ~3,500 boe/d with an exit target of 5,500 - 6,000 boe/d. Thermal Oil Capital: The forecast capital budget for Thermal Oil is unchanged at ~$250 million, including sustaining capital and the Leismer expansion project. This $300 million expansion project (over three years) is highly economic (~$25,000/bbl/d capital efficiency) and provides flexibility with interim growth before achieving the regulatory approved 40,000 bbl/d capacity at the end of 2027. Athabasca’s Thermal Oil capital projects are flexible, highly economic and have phased optionality on timing based on the macroeconomic environment. The Company anticipates being ~50% complete of total capital exposure for the expansion project by year-end 2025 and being substantially complete by year-end 2026. Duvernay Energy Capital: The forecast capital budget is unchanged at ~$75 million and will drive production momentum in the fourth quarter of 2025. The capital program in DEC is flexible and designed to be self-funded. The Company has a deep inventory of ~444 gross future drilling locations with no near-term land expiries. Free Cash Flow Focus: The Company forecasts consolidated Adjusted Funds Flow of $525 - $550 million 1 , including $475 - $500 million from its Thermal Oil assets. 2025 Thermal Oil Free Cash Flow is forecasted at ~$250 million and is planned to be returned to shareholders through share buybacks. Every +US$1/bbl move in West Texas Intermediate (“WTI”) and Western Canadian Select (“WCS”) heavy oil impacts annual Adjusted Funds Flow by ~$10 million and ~$17 million, respectively.

Corporate Consolidated Strategy

Value Creation: The Company’s Thermal Oil division provides a differentiated liquids weighted growth platform supported by financial resiliency to execute on return of capital initiatives. Athabasca’s subsidiary company, Duvernay Energy Corporation, is designed to enhance value for Athabasca’s shareholders by providing a clear path for self-funded production and cash flow growth in the Kaybob Duvernay resource play. Athabasca (Thermal Oil) and DEC have independent strategies and capital allocation frameworks. Steadfast Focus on Cash Flow Per Share Growth: Athabasca’s disciplined capital allocation framework is designed to unlock shareholder value by prioritizing multi-year cash flow per share growth. The Company forecasts >20% compounded annual cash flow per share growth between 2025-2029 driven by investing in attractive capital projects and prioritizing share buybacks with 100% of Free Cash Flow. The Company sees significant intrinsic value not reflected in the current share price and intends to remain active with its share buyback strategy.

Athabasca (Thermal Oil) Strategy

Large Resource Base: Athabasca’s top-tier assets underpin a strong Free Cash Flow outlook with low sustaining capital requirements. The long life, low decline asset base includes ~1.2 billion barrels of Proved plus Probable reserves and ~1 billion barrels of Contingent Resource. Leismer Progressive Growth: This $300 million expansion project (over three years) is highly economic (~$25,000/bbl/d capital efficiency) and provides flexibility with interim growth targets to ~32,000 bbl/d in H2 2026 and ~35,000 bbl/d in H1 2027 before achieving the regulatory approved 40,000 bbl/d capacity at the end of 2027. On completion of the expansion project, the Company can maintain Leismer at 40,000 bbl/d for approximately fifty years (Proved plus Probable Reserves). Sustaining Hangingstone : The asset is competitive and delivers meaningful cash flow contributions to the Company. The objective is to sustain production and maintain competitive netbacks ($39.26/bbl Q3 2025 Operating Netback). Corner – Future Growth: The Company’s Corner asset is a large de-risked oil sands asset adjacent to Leismer with 351 million barrels of Proved plus Probable reserves and 520 million barrels Contingent Resource (Best Estimate Unrisked). The asset has a 40,000 bbl/d regulatory approval. Development plans are focused on a capital-efficient modular design with 15,000 bbl/d project phases. Development is expected to be self-funded while maintaining a strong balance sheet and a focus on shareholder returns. The Company anticipates the first phase to be sanction ready in 2026, contingent on a favorable macro environment, and development will provide substantial growth in 2029. Significant Multi-Year Free Cash Flow: Inclusive of the progressive growth across its portfolio Athabasca (Thermal Oil) expects to generate ~$1.8 billion of Free Cash Flow 1 during the five-year time frame of 2025-29. Free Cash Flow will continue to support the Company’s return of capital initiatives. Sound Heavy Oil Fundamentals: Canadian heavy oil markets remain strong supported by the Trans Mountain Expansion pipeline and sustained global refining demand. This has resulted in tighter and less volatile WCS heavy differentials averaging ~US$11/bbl year to date. Athabasca is a direct beneficiary of structurally tighter differentials that are forecasted to hold in the coming years. Thermal Oil Royalty Advantage: Athabasca has significant unrecovered capital balances on its Thermal Oil Assets that ensure a low Crown royalty framework (~6% 1 ). Leismer is forecasted to remain pre-payout until late 2027 1 and Hangingstone is forecasted to remain pre-payout beyond 2030 1 . Tax Free Horizon Advantage: Athabasca (Thermal Oil) has $2.1 billion of valuable tax pools and does not forecast paying cash taxes this decade.

Duvernay Energy Strategy

Accelerating Value: DEC is an operated, private subsidiary of Athabasca (owned 70% by Athabasca and 30% by Cenovus Energy). DEC accelerates value realization for Athabasca’s shareholders by providing a clear path for self-funded production and cash flow growth without compromising Athabasca’s capacity to fund its Thermal Oil assets or its return of capital strategy. Kaybob Duvernay Focused: Exposure to ~200,000 gross acres in the liquids rich and oil windows with ~444 gross future well locations, including ~46,000 gross acres with 100% working interest. Self-Funded Growth: Near-term activity will be funded within Adjusted Funds Flow and DEC’s credit facility. The Company has growth potential to ~20,000 boe/d (75% Liquids) by the late 2020s 1 .

_Footnote: Refer to the “Reader Advisory” section within this news release for additional information on Non‐GAAP Financial Measures (e.g. Adjusted Funds Flow, Free Cash Flow, Net Cash, Liquidity) and production disclosure. 1 P ricing assumptions : 2025 year to date actualized and US$60 WTI, US$12.50 WCS heavy differential, C$2 AECO, and 0.725 C$/US$ FX for balance of the year. 2026+ US$70 WTI, US$12.50 WCS heavy differential, C$3 AECO, and 0.725 C$/US$ FX . _

Financial and Operational Highlights

| | Three months ended September 30, | | Nine months ended September 30, | | | | | | | | | | | | | | ($ Thousands, unless otherwise noted) | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | | | CORPORATE CONSOLIDATED ( 1) | | | | | | | | | | | | | | | | | Petroleum and natural gas production (boe/d) ( 2) | | 39,599 | | | | 38,909 | | | | 38,807 | | | | 36,675 | | | Petroleum, natural gas and midstream sales | $ | 333,397 | | | $ | 376,781 | | | $ | 1,061,311 | | | $ | 1,089,635 | | | Operating Income ( 2) | $ | 151,835 | | | $ | 180,184 | | | $ | 439,132 | | | $ | 465,070 | | | Operating Income Net of Realized Hedging ( 2)(3) | $ | 144,650 | | | $ | 175,755 | | | $ | 430,698 | | | $ | 460,511 | | | Operating Netback ($/boe) ( 2) | $ | 42.50 | | | $ | 49.12 | | | $ | 41.71 | | | $ | 46.36 | | | Operating Netback Net of Realized Hedging ($/boe) ( 2)(3) | $ | 40.49 | | | $ | 47.91 | | | $ | 40.91 | | | $ | 45.91 | | | Capital expenditures | $ | 96,190 | | | $ | 50,634 | | | $ | 232,589 | | | $ | 175,098 | | | Cash flow from operating activities | $ | 157,414 | | | $ | 187,143 | | | $ | 382,199 | | | $ | 398,864 | | | per share - basic | $ | 0.32 | | | $ | 0.35 | | | $ | 0.76 | | | $ | 0.72 | | | Adjusted Funds Flow ( 2) | $ | 129,197 | | | $ | 163,680 | | | $ | 386,463 | | | $ | 417,198 | | | per share - basic | $ | 0.26 | | | $ | 0.30 | | | $ | 0.77 | | | $ | 0.75 | | | ATHABASCA (THERMAL OIL) | | | | | | | | | | | | | | | | | Bitumen production (bbl/d) ( 2) | | 36,590 | | | | 34,853 | | | | 35,942 | | | | 33,390 | | | Petroleum, natural gas and midstream sales | $ | 329,542 | | | $ | 372,634 | | | $ | 1,047,077 | | | $ | 1,072,954 | | | Operating Income ( 2) | $ | 142,631 | | | $ | 163,694 | | | $ | 413,750 | | | $ | 425,837 | | | Operating Netback ($/bbl) ( 2) | $ | 43.28 | | | $ | 49.68 | | | $ | 42.46 | | | $ | 46.64 | | | Capital expenditures | $ | 64,965 | | | $ | 44,431 | | | $ | 171,451 | | | $ | 120,634 | | | Adjusted Funds Flow ( 2) | $ | 121,131 | | | $ | 150,088 | | | $ | 364,581 | | | $ | 383,214 | | | Free Cash Flow ( 2) | $ | 56,166 | | | $ | 105,657 | | | $ | 193,130 | | | $ | 262,580 | | | DUVERNAY ENERGY ( 1) | | | | | | | | | | | | | | | | | Petroleum and natural gas production (boe/d) ( 2) | | 3,009 | | | | 4,056 | | | | 2,865 | | | | 3,285 | | | Percentage Liquids (%) ( 2) | 75% | | | 77% | | | 73% | | | 77% | | | | | | | Petroleum, natural gas and midstream sales | $ | 15,840 | | | $ | 24,728 | | | $ | 46,985 | | | $ | 63,015 | | | Operating Income ( 2) | $ | 9,204 | | | $ | 16,490 | | | $ | 25,382 | | | $ | 39,233 | | | Operating Netback ($/boe) ( 2) | $ | 33.25 | | | $ | 44.20 | | | $ | 32.45 | | | $ | 43.59 | | | Capital expenditures | $ | 31,225 | | | $ | 6,203 | | | $ | 61,138 | | | $ | 54,464 | | | Adjusted Funds Flow ( 2) | $ | 8,066 | | | $ | 13,592 | | | $ | 21,882 | | | $ | 33,984 | | | Free Cash Flow ( 2) | $ | (23,159) | | | $ | 7,389 | | | $ | (39,256) | | | $ | (20,480) | | | NET INCOME AND COMPREHENSIVE INCOME | | | | | | | | | | | | | | | | | Net income and comprehensive income ( 4) | $ | 69,640 | | | $ | 68,722 | | | $ | 198,514 | | | $ | 203,407 | | | per share - basic ( 4) | $ | 0.14 | | | $ | 0.13 | | | $ | 0.39 | | | $ | 0.37 | | | per share - diluted ( 4) | $ | 0.14 | | | $ | 0.12 | | | $ | 0.39 | | | $ | 0.36 | | | COMMON SHARES OUTSTANDING | | | | | | | | | | | | | | | | | Weighted average shares outstanding - basic | | 494,509,594 | | | | 540,884,257 | | | | 503,714,495 | | | | 555,035,218 | | | Weighted average shares outstanding - diluted | | 497,929,426 | | | | 550,712,443 | | | | 507,263,981 | | | | 559,203,568 | |

| | September 30, | | December 31, | | | | | As at ($ Thousands) | 2025 | | 2024 | | | | | LIQUIDITY AND BALANCE SHEET (CONSOLIDATED) | | | | | | | | Cash and cash equivalents | $ | 334,550 | | $ | 344,836 | | | Available credit facilities ( 5) | $ | 131,408 | | $ | 136,324 | | | Face value of long-term debt | $ | 201,666 | | $ | 200,000 | |

(1) Corporate Consolidated and Duvernay Energy reflect gross production and financial metrics before taking into consideration Athabasca's 70% equity interest in Duvernay Energy. (2) Refer to the “Reader Advisory” section within this News Release for additional information on Non-GAAP Financial Measures and production disclosure. (3) Includes realized commodity risk management loss of $7.2 million and $8.4 million for the three and nine months ended September 30, 2025 (three and nine months ended September 30, 2024 – loss of $4.4 million and $4.6 million). (4) Net income and comprehensive income per share amounts are based on net income and comprehensive income attributable to shareholders of the Parent Company. In the calculation of diluted net income per share for the three months ended September 30, 2024 net income was reduced by $2.6 million, to account for the impact to net income had the outstanding warrants been converted to equity. (5) Includes available credit under Athabasca's and Duvernay Energy's Credit Facilities and Athabasca's Unsecured Letter of Credit Facility.

Athabasca (Thermal Oil) Q3 2025 Highlights and Operations Update

Production: 36,590 bbl/d (27,763 bbl/d at Leismer and 8,827 bbl/d at Hangingstone). Cash Flow: Operating Income of $142.6 million with an Operating Netback of $43.28/bbl. Adjusted Funds Flow of $121.1 million. Capital: $65.0 million of capital expenditures in Q3, with $61.5 million at Leismer. Free Cash Flow: $56.2 million of Free Cash Flow supporting corporate return of capital commitment.

Leismer

Earlier this year, the Company brought six extended redrills on Pad 1 on production and recently two well pairs on Pad L10 have been brought on production supporting current production of ~28,000 bbl/d (September 2025). Two additional well pairs on Pad L10 have commenced steaming and will support productive capacity in 2026. In anticipation of the next growth phase, Athabasca recently spud a six well-pair campaign on Pad L11.

Activity at Leismer remains focused on advancing progressive growth to 40,000 bbl/d by the end of 2027. The main areas of focus in the third quarter were field construction, which included completing pilings and foundation work for the expansion equipment and setting the degasser, heat exchangers, and a new treater. The $300 million will be spent between 2025 and 2027 and includes an estimated $190 million for facility capital and an estimated $110 million for growth wells. By year-end 2025, the Company anticipates being ~50% complete of total capital exposure for the expansion project, with capital being substantially complete by year-end 2026. The project remains on budget and on schedule with the original sanction plans announced in July 2024. The progressive build provides flexibility with growth capacity increasing to ~32,000 bbl/d in H2 2026, ~35,000 bbl/d in H1 2027 and 40,000 bbl/d capacity at the end of 2027.

The Company is preparing for a three-week facility turnaround to be completed in May 2026. Activities include recurring maintenance on a four-year frequency with additional scope for the Company’s growth initiatives. Key turnaround deliverables associated with the expansion project include completing the tie-points for the progressive build, landing all of the Phase 1 equipment, adding steam generation and tank construction.

Hangingstone

At Hangingstone, two extended reach sustaining well pairs (~1,400 meter average laterals) were placed on production in March supporting current production of ~9,000 bbl/d (September 2025). The well pairs ramped up faster than anticipated, benefiting from favorable reservoir temperatures and pressure supported by offsetting wells. Current well pair performance between 800 – 1,000 bbl/d per well has exceeded management’s expectations. Hangingstone continues to deliver meaningful cash flow contributions and the Company expects minimal capital activity next year given strong current production performance. The Company has a planned two-week turnaround that will be completed in April 2026.

Corner

The Corner asset is a large de-risked oil sands asset adjacent to Leismer with 351 million barrels of Proved plus Probable reserves and 520 million barrels Contingent Resource (Best Estimate Unrisked). The asset has regulatory approval for 40,000 bbl/d with over 300 delineation wells and ~80% seismic coverage. Reservoir quality is similar to or better than Leismer, and comparable to other top-quality assets in the McMurray Formation fairway, with an expected steam-oil ratio of less than 3x. Development plans are focused on a capital-efficient modular design with 15,000 bbl/d project phases. Development is expected to be self-funded while maintaining a strong balance sheet and a focus on shareholder returns. The Company anticipates the first phase to be sanction ready in 2026, contingent on a favorable macro environment, and development will provide substantial growth in 2029.

Duvernay Energy Corporation Q3 2025 Highlights and Operations Update

Production: Production of 3,009 boe/d (75% Liquids). Cash Flow: Operating Income of $9.2 million with an Operating Netback of $33.25/boe. Adjusted Funds Flow of $8.1 million. Capital: $31.2 million of capital expenditures including completions on two multi-well pads.

During the quarter, DEC brought a four-well pad (30% working interest) with average laterals of approximately 5,000 meters on production in early August. The four wells placed on production have average IP30’s of ~1,050 boe/d per well (89% Liquids). In September, DEC completed a three well pad (100% working interest) which is expected to be on production in the fourth quarter supporting an exit rate of 5,500 – 6,000 boe/d.