Highwood Asset Management Ltd. delivered EBITDA of $11.8 million and adjusted funds flow of $9.9 million for the second quarter of 2026, backed by average corporate production of 5,079 barrels of oil equivalent per day.

Production decreased from 6,005 barrels of oil equivalent per day in the first quarter of 2026, following the completed disposition of the Wilson Creek oil and natural gas properties. Highwood closed the sale during the second quarter for total consideration of up to $112 million, comprising $105 million in cash proceeds and up to $7 million in contingent consideration.

The company originally acquired the Wilson Creek assets in August 2023 for approximately $35 million. The transaction generated a pre-tax return on invested capital exceeding 200 percent, supported by approximately $26 million in asset-level free cash flow generated up to the effective date of April 1, 2026.

Net proceeds from the divestment were applied to reduce net debt from $114 million at March 31, 2026, to $16.4 million at June 30, 2026. Following the sale, Highwood retains approximately 2,900 barrels of oil equivalent per day from remaining assets, with operational focus shifting toward drilling activity in the Basal Belly River at Brazeau and waterflood implementation.

For the third quarter of 2026, the company anticipates drilling two to three gross and net wells in Eastern Alberta, with the next drill scheduled for late in the quarter. Operations during the third quarter will be impacted by planned facility turnarounds at the Brazeau 6-27 facility and a third-party plant workover in September, resulting in an expected oil shut-in of eight to ten days and approximately 18 days for gas and natural gas liquids.

Subsequent to the quarter ended June 30, 2026, Highwood implemented a normal course issuer bid, purchasing and cancelling 28,638 common shares through July 31, 2026.

Read the full announcement: HIGHWOOD ASSET MANAGEMENT LTD. ANNOUNCES SECOND QUARTER 2026 RESULTS AND OPERATIONAL UPDATE