Headwater Exploration Inc. Announces Second Quarter Results and Declares Dividend

On July 23, 2025, Headwater Exploration Inc., a Calgary-based energy producer operating in Canada, announced its second quarter operating and financial results. The company, which focuses on exploring oil and natural gas assets, also declared a quarterly dividend. This announcement was reported by multiple sources, including Newswire.ca, CEO.ca, and Finanzen.net.

Financial Highlights

For the three months ended June 30, 2025, Headwater reported total sales of CAD 138.8 million, a 12% decrease from CAD 157.1 million in the same period in 2024. Over the six months ended June 30, 2025, total sales increased by 6% to CAD 302.0 million from CAD 284.4 million in 2024.

Adjusted funds flow from operations for the three months ended June 30, 2025, was CAD 74.2 million, down 16% from CAD 88.0 million in 2024. For the six months ended June 30, 2025, adjusted funds flow from operations increased by 1% to CAD 166.6 million from CAD 164.5 million in 2024.

Cash Flow and Net Income

Cash flow provided by operating activities for the three months ended June 30, 2025, was CAD 68.7 million, a 24% decrease from CAD 90.4 million in 2024. For the six months ended June 30, 2025, cash flow from operations decreased by 5% to CAD 138.6 million from CAD 145.4 million in 2024.

Net income for the three months ended June 30, 2025, was CAD 38.0 million, a 29% decrease from CAD 53.9 million in 2024. For the six months ended June 30, 2025, net income decreased by 4% to CAD 88.0 million from CAD 91.5 million in 2024.

Per Share Data

Basic earnings per share for the three months ended June 30, 2025, were CAD 0.31, down 16% from CAD 0.37 in 2024. Diluted earnings per share were also CAD 0.31, down 16% from CAD 0.37 in 2024. For the six months ended June 30, 2025, basic and diluted earnings per share were both CAD 0.37, unchanged from 2024.

Capital Expenditures

Capital expenditures for the three months ended June 30, 2025, were CAD 50.7 million, virtually unchanged from CAD 50.7 million in 2024. For the six months ended June 30, 2025, capital expenditures decreased by 2% to CAD 113.6 million from CAD 115.9 million in 2024.

Market Information

Headwater Exploration Inc. is listed on the Toronto Stock Exchange with a market capitalization of CAD 1.65 billion. The company’s stock closed at CAD 7.24 on July 21, 2025. The 52-week high was CAD 7.65 on January 9, 2025, and the 52-week low was CAD 4.75 on April 8, 2025. The price-to-earnings ratio stands at 8.2.

For more detailed financial information, the unaudited condensed interim financial statements and the related management’s discussion and analysis will be available on SEDARplus and the company’s website.