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Saturn Oil & Gas Inc. Announces 2026 Capital Budget and Guidance Designed to Optimize Free Funds Flow, Continue Debt Repayment and Preserve Long-Term Value
Disciplined $180 to $190 million development capital budget retains flexibility and targets quick...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces 2026 Capital Budget and Guidance Designed to Optimize Free Funds Flow, Continue Debt Repayment and Preserve Long-Term ValueDisciplined $180 to $190 million development capital budget retains flexibility and targets quick payback opportunitiesForecast average production of 39,000 to 41,000 boe/d, with ability to quickly ramp up capital and volumes should prices strengthenFree funds flow allocated to debt repayment and share buybacks, with forecast free funds flow yield of 25% to 35%Up to 1/3 of total development capital allocated to high-return, rapid payback open hole multi-lateral (\"OHML\") drilling Calgary, Alberta--(Newsfile Corp. - December 17, 2025) - Saturn Oil & Gas Inc. (TSX: SOIL) (OTCQX: OILSF) (\"Saturn\" or the \"Company\"), a light oil-weighted producer focused on unlocking value through the development of our extensive inventory of assets in Saskatchewan and Alberta, today announces our 2026 capital budget and guidance. The Company intends to continue allocating capital prudently through 2026, with a development capital budget range of $180 to $190 million assuming US$60 per barrel WTI, positioning Saturn to deliver 2026 average production between 39,000 and 41,000 boe/d(2), weighted approximately 81% to oil and liquids (the \"2026 Budget\"). In light of the prevailing commodity price environment, the 2026 Budget is structured to prioritize drilling targets with the highest potential returns, preserve the value of our asset base through disciplined capital allocation and optimize free funds flow generation. Our program in 2026 can be scaled up or down quickly should commodity prices fluctuate, enabling the Company to retain significant flexibility across a variety of price scenarios. Consistent with our Blueprint strategy, we intend to utilize incremental free funds flow for ongoing debt repayment, share buybacks or potential accretive tuck-in acquisitions at attractive metrics should opportunities arise.\"In response to the near-term WTI price outlook, we are taking a prudent approach to our 2026 capital spending profile, which is 27% lower than our revised September 2025 guidance, while our production is anticipated to average only 5% below that revised guidance. This is due to the Company's track record of exceeding type curves, reducing costs, and protecting margins through ...