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Hemisphere Energy Declares Quarterly Dividend, Announces 2026 Guidance, and Provides Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - January 28, 2026) - Hemisphere Energy Corporation&...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Declares Quarterly Dividend, Announces 2026 Guidance, and Provides Corporate UpdateVancouver, British Columbia--(Newsfile Corp. - January 28, 2026) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (\"Hemisphere\" or the \"Company\") is pleased to declare a quarterly dividend to shareholders, deliver guidance for 2026, and provide a corporate update. Quarterly DividendHemisphere is pleased to announce that its Board of Directors has approved a quarterly cash dividend of $0.025 per common share in accordance with the Company's dividend policy. The dividend will be paid on February 26, 2026 to shareholders of record as of the close of business on February 12, 2026. The dividend is designated as an eligible dividend for income tax purposes.2026 Corporate GuidanceHemisphere's Board of Directors has approved a 2026 capital program of approximately $12 million, which provides the Company disciplined year-over-year growth, while protecting the balance sheet and maintaining shareholder returns. The budget will be entirely funded by Hemisphere's estimated 2026 adjusted funds flow1 (\"AFF\") of $40 million.After all capital expenditures1, 2026 free funds flow1 (\"FFF\") is expected to be $28 million, of which approximately 35% will be allocated to quarterly base dividends. The balance of cash will be used for discretionary purposes, which may include potential acceleration of development or exploration projects, acquisitions, and additional return of capital to shareholders through Hemisphere's normal course issuer bid (\"NCIB\") program and/or special dividends. In 2025, two special dividends totaling $5.8 million ($0.06/share) were paid to shareholders in addition to Hemisphere's base quarterly dividends of $9.6 million ($0.10/share). Coupled with $6.4 million ($0.04/share) spent on the Company's NCIB, total shareholder returns for 2025 amounted to $21.8 million ($0.23/share).Highlights and assumptions of Hemisphere's guidance at US$60/bbl WTI are as follows:Average annual production of 3,900 boe/d (99% heavy oil)Average WTI price of US$60/bbl, with sensitivities shown at US$50/bbl and US$70/bblWCS differential of US$12.50/bbl and quality adjustment of $4.00/bblCdn$ to US$ exchange rate of 0.72 Operating and transportation costs of $15.00/boeRoyalties of 16% at US$60/bbl WTI, 14% at US$50/bbl WTI, an...