Highwood Asset Management Delivers Impressive Quarterly Results
Highwood Asset Management Ltd. (TSXV: HAM) recently announced its financial and operational results for the second quarter of 2025, showcasing a remarkable performance and strategic advancements. The company expressed satisfaction with its outcomes as it continues to execute its capital programs and drives shareholder value.
Financial Highlights of Q2 2025
For the second quarter of 2025, Highwood reported an average corporate production of 5,632 barrels of oil equivalent per day (boe/d), up by approximately 7% compared to the previous quarter's average of 5,264 boe/d. This improvement reflects the company’s commitment to increasing production efficiency and strategic growth.
Financial Figures Released
During this period, Highwood posted an Adjusted EBITDA of $15.2 million, which translates to $1.00 per share alongside adjusted funds flow of $13.4 million, or $0.88 per share. Moreover, the company's reported income was $13.4 million, marking a significant increase of $2.9 million from the same period last year.
Operational Developments
Highlighting its operational focus, Highwood kicked off its drilling program for the latter half of the year, spudding the well at 100/13-15-048-14W5 in the Basal Belly River sand formation. The company plans to drill four gross wells, which includes three booked locations in Wilson Creek and another near Bonnyville, Alberta.
Future Drilling Plans
Additions to the drilling slate include the recently started 100/02-034-061-09W4 well, marking Highwood’s first unbooked multi-lateral openhole well into its new play. The anticipated results from this well are expected to come in early fall, proving an exciting milestone for the company.
Financial Strategies and Liquidity
In response to the positive growth in its proved developed producing (PDP) reserves, Highwood's borrowing base was raised from $120 million to $140 million. The addition of the Business Development Bank of Canada as a new lender further diversifies their capital access amid ongoing industry volatility.
Hedging Initiatives
To navigate market fluctuations, Highwood has implemented a strategic hedging program, protecting approximately 2,200 barrels per day for the remainder of 2025 at an average price of about $95 per barrel, in addition to hedging around 6,000 GJ/day of natural gas.
Looking Forward
The company's outlook emphasizes maintaining robust cash flow, with a notable portfolio of tax pools totaling approximately $325 million. This includes a strategic focus on maintaining the flexibility to capitalize on potential mergers and acquisitions.
Commitment to Shareholder Value
Highwood aims to enhance its Free Cash Flow on a per-share basis, ensuring they are well-positioned to provide significant returns to shareholders over time.
Frequently Asked Questions
What were Highwood's production levels for Q2 2025?
The average production for Q2 2025 was 5,632 boe/d, which is a 7% increase from the previous quarter.
How much was Highwood's Adjusted EBITDA for the second quarter?
Highwood reported an Adjusted EBITDA of $15.2 million for the second quarter of 2025.
Where is Highwood's new drilling activity taking place?
The new drilling activity includes locations in Wilson Creek and near Bonnyville, Alberta.
What steps is Highwood taking to mitigate market risks?
Highwood employs a hedging strategy that covers significant amounts of oil and natural gas to manage market volatility.
What is the company's outlook for the coming months?
Highwood is focused on executing its capital program while targeting increased Free Cash Flow and enhancing shareholder returns.
