Headwater Exploration Inc. · TSX:HWX
Headwater Exploration — Investor Presentation (September 2025)
30 slides from Headwater Exploration's investor presentation, September 2025
Slide 1: Corporate Presentation
Headwater Exploration Inc. CORPORATE PRESENTATION TSX:HWX September 2025
Slide 2: The Headwater Advantage: Growing and Sustainable Total Shareholder Returns
THE HEADWATER ADVANTAGE Growing and Sustainable Total Shareholder Returns A Clearwater Focused Sustainable Oil Company Asset Scale & Duration Shareholder Returns Scale: Growth: • Oil production growth within cash flow of >600% • Sustainable production growth of 5-10% while since Dec 2020 spending 40
Slide 3: Asset Scale & Duration Drives Increasing Shareholder Returns
ASSET SCALE & DURATION DRIVES INCREASING SHAREHOLDER RETURNS Growing Wall of Free Cash Flow INCREASING DECREASING Earnings Funds Flow Free Cash Flow Decline Rate Maintenance Capital Production Dividends Asset Duration FCF 2026E To 2030E at $65/bbl WTI The Impact of Waterflood Proven Reserve Growth w
Slide 4: Asset Duration - The Waterflood Advantage
ASSET DURATION - THE WATERFLOOD ADVANTAGE Enhanced Oil Recovery Drives Free Cash Marten Hills Core Waterflood The Impact of Waterflood 12,000 300 Waterflood Production 80% Base Decline & Oil Production Supported Primary Production Cumulative Waterflood Cashflow 250 10,000 70% Payout 3 Cumulative Cas
Slide 5: Exploration Creates Production and Reserve Growth
THE HEADWATER ADVANTAGE Exploration Creates Production and Reserve Growth Exploration To Date 800,000 24,000 Cumulative Capital & Net Operated Income ($M) Payout on Full Cycle Capital Significant Clearwater Region Resource 700,000 21,000 Expansion 8,000 NOI to Date 600,000 18,000 7,000 6,000 500,000
Slide 6: Proven Track Record of Disciplined Capital Allocation
ASSET DURATION & SHAREHOLDER RETURNS Proven Track Record of Disciplined Capital Allocation Capital Allocation 2026 Forecasted Capital Allocation at $65/bbl WTI • Balanced growth and declining maintenance capital provide a sustainable foundation for continued shareholder returns • Secondary recovery
Slide 7: Capitalization, Guidance and Business Strategy
CAPITALIZATION, GUIDANCE AND BUSINESS STRATEGY Corporate Overview Outlook Capitalization Average Daily Production 2025 Guidance(1) Annual Daily Production (boe/d) (2) 22,600 Headwater Exploration Inc. TSX HWX Share Price (Sept 5, 2025) $/sh. $6.65 Financial Summary ($millions) (5) Adjusted Funds Flo
Slide 8: The Multi-Zone Benefit
THE MULTI-ZONE BENEFIT One pad producing 1,500 bbl/d from three different zones Multi-Zone Benefit Marten Hills West 07-17-075-01W5 Pad Multiple zones targeted from one pad Clearwater SS Clearwater E Grand Rapids A 1,800 • Tested 2 Clearwater zones and the newly discovered 1,600 Grand Rapids • Multi
Slide 9: Regional Clearwater Area
REGIONAL CLEARWATER AREA Total Land Holdings over 600 net sections Nampa PEACE RIVER OIL SANDS REGION Slave Evi Greater Peavine (Seal, Peavine) Greater Pelican • Multi-zone potential from Falher • Captured over 75 sections of Wabiskaw Seal Walrus and Bluesky horizons and Clearwater development and e
Slide 10: Organic Exploration Success Adding to Inventory
ORGANIC EXPLORATION SUCCESS ADDING TO INVENTORY Over 1 Bbbl of OOIP discovered over the past 2 years with secondary recovery potential Grand Rapids A – West Marten Hills • Discovery well drilled in Q2 2025 GRRP A • Current production from GRRP A: 900 bbl/d (3 producers) • Cumulative oil production:
Slide 11: Greater Pelican
GREATER PELICAN New Prospective Area Targeting Multiple Horizons Greater Pelican Wabiskaw Exploration (BCN Farm-in Block): Newly Captured Land Block • IP120: 480 bbl/d of 16.5 API oil Option Block • Current Production: > 500 bbl/d • Implementing secondary recovery with polymer pilot in Q4 2025 • Fol
Slide 12: West Marten Hills: Grand Rapids A Prospect Delineation
WEST MARTEN HILLS Grand Rapids A - Prospect Delineation Greater Pelican Grand Rapids A Greater Peavine GRRP A Exploration test 107/04-18-075-01W5 (6-leg multi-lateral) GRRP A • IP120: 342 bbl/d (19.5 API) West Marten Hills GRRP A Exploration test 06/12-07-075-01W5 (6-leg multi-lateral) • IP30: 300 b
Slide 13: West Marten Hills: Clearwater E Expanding Secondary Recovery
WEST MARTEN HILLS Clearwater E – Expanding Secondary Recovery Greater Pelican Clearwater E Greater Peavine • The regional extent of the Clearwater E is estimated to be up to GRRP A 52 sections in size West Marten Hills • Identified drilling inventory: >250 • Excellent oil quality: 21-23 API & <100 c
Slide 14: Clearwater Sandstone Step-out Success
WEST MARTEN HILLS Clearwater Sandstone – Step-out Success; Expanding Secondary Recovery Greater Pelican Clearwater Sandstone Greater Peavine GRRP A • Two full sections under secondary recovery West Marten Hills • 3 additional sections under secondary recovery in 2025 • Continued success on step-out
Slide 15: The Headwater Advantage: Total Shareholder Returns
THE HEADWATER ADVANTAGE Growing and Sustainable Total Shareholder Returns Total Shareholder Returns Asset Scale Capital Allocation Top decile netback with a large resource in Capital allocation and discipline maximize free place and an exploration program allowing for cash flow and financial flexibi
Slide 16: Appendix
Headwater Exploration Inc. Appendix TSX:HWX
Slide 17: Marten Hills Secondary Recovery
MARTEN HILLS SECONDARY RECOVERY Waterflood Support in Both Core Development Areas Marten Hills Core 14,000 1,400 Oil (bbl/d) Injection (bbl/d) GOR (scf/bbl) 12,000 1,200 10,000 1,000 GOR (scf/bbl) Rate (bbl/d) Secondary Recovery Development Area 8,000 800 6,000 600 4,000 400 2H 2025 Marten Hills Wes
Slide 18: Greater Nipisi / Peavine
GREATER NIPISI / PEAVINE – OVER 200 SECTIONS Multiple Productive Zones in the Falher, Clearwater, and Bluesky PEACE RIVER OIL SANDS REGION Greater Pelican Greater Peavine SEAL West Marten Hills Bluesky and multiple Falher producing zones Seal Harmon Valley Dawson WEST NIPISI Several discovered Clear
Slide 19: SW Saskatchewan
SW SASKATCHEWAN W3/W4 Mannville – SAGD and Conventional Heavy Oil Exploration Handel Large contiguous land block accumulated: • 57.75 Sections Reford 3D Seismic Acquisition: • 39 sections of 3D seismic acquired – covering 29.6 sections of HWX lands Cardinal – Reford Waseca SAGD Project • Multiple Ma
Slide 20: McCully Producing Asset
MCCULLY PRODUCING ASSET Dry Gas with 100% owned infrastructure and limited liability McCully Asset Daily Production 25.0 20.0 New Brunswick MNP pipeline Production mmscf/d 15.0 10.0 Nova Scotia 5.0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 HWX Realized
Slide 21: Experienced Team – Management and Directors
EXPERIENCED TEAM – MANAGEMENT AND DIRECTORS Headwater Exploration Inc. Management Team Neil Roszell, P. Eng. ▪ Former President, CEO and/or Executive Chairman and founder of Raging River Exploration Inc., Wild Stream Exploration Inc. and Wild River Resources Ltd. Executive Chairman Jason Jaskela, P.
Slide 22: Slide Notes
SLIDE NOTES Slide 1 1. Oil production growth is Q2 2025 oil production compared to December 2020 oil production. 2. Cashflow is equivalent to Adjusted Funds Flow from Operations which is a capital management measure. Please refer to Non-GAAP Advisory. 3. Maintenance Capital is a supplementary financ
Slide 23: Slide Notes Continued
SLIDE NOTES CONTINUED Slide 6 1. Assumptions used in the updated 2025 guidance include: annual average production of 22,600 boe/d, WTI of US$66.50/bbl, WCS of Cdn$76.60/bbl, AGT US$9.00/mmbtu, AECO of $1.65 CAD/GJ, foreign exchange rate of US$/Cdn$ of 0.72, blending expense of WCS less $1.90, royalt
Slide 24: Forward Looking Statements Advisory
ADVISORIES Forward Looking Statements Advisory This investor presentation of Headwater Exploration Inc. ("Headwater" or the "Company") contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of Canadian securities laws. All
Slide 25: Development Strategy Advisory
ADVISORIES Development Strategy Advisory Advisory Relating to Development Strategy and Long-Term Potential Outcomes (Slide 6) The Company has presented various information, metrics and potential outcomes relating to its strategy, operations and development plans through to 2028 (and in certain insta
Slide 26: Non-GAAP Advisory
ADVISORIES Non-GAAP Advisory CAPITAL MANAGEMENT MEASURES, NON-GAAP MEASURES, SUPPLEMENTARY FINANACIAL MEASURES AND NON- Non-GAAP Financial Measures GAAP RATIOS Capital Expenditures This investor presentation contains the terms which do not have standardized meanings prescribed by International Finan
Slide 27: Non-GAAP Advisory
ADVISORIES Non-GAAP Advisory Supplementary Financial Measures Free Cashflow (FCF) FCF for this corporate presentation is defined as AFFO net of Maintenance Capital. Maintenance Capital Maintenance Capital includes all Capital Expenditures required to support development to offset declines and hold p
Slide 28: Certain Oil and Gas Advisories
ADVISORIES Certain Oil and Gas Advisories CERTAIN ECONOMICS AND WATERFLOOD PERFORMANCE Headwater has presented certain projected operational and economic performance and waterflood performance for certain development, exploration and waterflood activities in Headwater's areas of operations. The proj
Slide 29: Certain Oil and Gas Advisories
ADVISORIES Certain Oil and Gas Advisories BARRELS OF OIL EQUIVALENT The term "boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy
Slide 30: Certain Oil and Gas Advisories: Dividend Advisory
ADVISORIES Certain Oil and Gas Advisories DIVIDEND ADVISORY The amount of future cash dividends paid by the Company, if any, will be subject to the discretion of the Board and may vary depending on a variety of factors and conditions existing from time to time, including, among other things, adjuste
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