Headwater Exploration Inc. · TSX:HWX
Headwater Exploration — Investor Presentation (March 2026)
30 slides from Headwater Exploration's investor presentation, March 2026
Slide 1: Corporate Presentation
Headwater Exploration Inc. CORPORATE PRESENTATION TSX:HWX March 2026
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 >650% • Sustainable production growth of 5-10% while since Dec 2020 spending 35
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 The Impact of Waterflood Proven Reserve Growth with Massive Upside FCF 2026E To 20
Slide 4: Year End 2025 Reserves Summary
YEAR END 2025 RESERVES SUMMARY F&D Year Over Production Heavy Oil Gas NGL Total including Recycle Reserve Category Year Change Replacement FDC (1) Ratio (2) Mbbl MMcf Mbbl Mboe (%) (%) $/boe Proved Producing 40,734 21,754 166 44,526 53% 285% 9.65 4.1 Total Proved 63,458 27,472 242 68,278 59% 403% 11
Slide 5: Asset Duration - The Waterflood Advantage
ASSET DURATION - THE WATERFLOOD ADVANTAGE Secondary Oil Recovery Drives Free Cash Marten Hills Core Waterflood 12,000 350 The Impact of Waterflood Waterflood Production Primary Production Cumulative Waterflood Cashflow 80% Base Decline & Oil Production Supported Payout 4 300 10,000 70% 250 Cumulativ
Slide 6: Exploration Creates Production and Reserve Growth
THE HEADWATER ADVANTAGE Exploration Creates Production and Reserve Growth Exploration To Date Headwater - PAV Lookback $65 US/Bbl WTI 800,000 24,000 Payout on full-cycle capital $20.00 Unrisked PAV 700,000 21,000 $18.00 Risked PAV NOI to date 600,000 18,000 $16.00 Share Price Cumulative Capital ($M)
Slide 7: Asset Duration & Shareholder Returns
ASSET DURATION & SHAREHOLDER RETURNS Proven Track Record of Disciplined Capital Allocation Capital Allocation – Key to Total Shareholder Returns • Balanced growth and declining maintenance capital provide a sustainable foundation for continued shareholder returns • Secondary recovery investment • Mi
Slide 8: Capitalization, Guidance and Business Strategy
CAPITALIZATION, GUIDANCE AND BUSINESS STRATEGY Corporate Overview Outlook Capitalization Average Daily Production 2026 Guidance(1) Annual Daily Production (boe/d) (2) 24,500 Headwater Exploration Inc. TSX HWX th Share Price (March 5 , 2026) $/sh $12.48 Financial Summary ($millions) (5) Adjusted Fund
Slide 9: The Multi-Zone Benefit
THE MULTI-ZONE BENEFIT One pad producing 1,000 bbl/d from three different zones Marten Hills West 07-17-075-01W5 Pad Multi-Zone Benefit Clearwater SS Clearwater E Grand Rapids A 1,800 Multiple zones targeted from one pad 1,600 • Tested 2 Clearwater zones and the newly discovered 1,400 Grand Rapids 1
Slide 10: Regional Clearwater Area
REGIONAL CLEARWATER AREA Total Land Holdings over 650 net sections PEACE RIVER OIL SANDS REGION Greater Peavine (Seal, Peavine) • Multi-zone potential from Falher Greater Pelican Slave and Bluesky horizons • Captured over 94 sections of Wabiskaw and Clearwater development and Seal Walrus exploration
Slide 11: 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: > 2,200 bbl/d • Cumulative oil production: > 370,000
Slide 12: Greater Pelican
GREATER PELICAN Initiated Polymer Pilot; Continued Exploration Program on Expanding Landbase Greater Pelican – 1,400 bbl/d Wabiskaw Exploration (BCN Farm-in Block): HWX 03/14-31-079-22W4 • 104/04-19-079-22W4 Wabiskaw B Earning Block IP90 = 370 bbl/d • IP300: 494 bbl/d of 16.5 API oil Brintnell • Cur
Slide 13: West Marten Hills: Grand Rapids A
WEST MARTEN HILLS Grand Rapids A - Prospect Delineation; Initiating Secondary Recovery Grand Rapids A – >2,200 bbl/d GRRP A Exploration test 107/04-18-075-01W5 (6-leg multi- lateral) GRRP A • IP300: 300 bbl/d (19.5 API) • > 2X payout in 10 months of production GRRP A Step-out 103/13-22-075-02W5 (6-l
Slide 14: West Marten Hills: Clearwater E
WEST MARTEN HILLS Clearwater E – Expanding Secondary Recovery Clearwater E – 2,000 bbl/d Greater Pelican • The regional extent of the Clearwater E is estimated to be up to GRRP A Greater Peavine 52 sections in size • Identified drilling inventory: >250 • Excellent oil quality: 21-23 API & <100 cP of
Slide 15: West Marten Hills: Clearwater Sandstone
WEST MARTEN HILLS Clearwater Sandstone – Step-out Success; Expanding Secondary Recovery Clearwater Sandstone Greater Pelican • Seven sections currently under secondary recovery GRRP A Greater Peavine • Continued success on step-out tests has expanded drilling inventory. West Marten Hills • Further e
Slide 16: Duncan – Lower Mannville
DUNCAN – LOWER MANNVILLE New Exploration Area with Large Contiguous Land Captured Duncan • 68 Sections of Crown land acquired in 2025/2026 • Initial exploration test in Lower Mannville zone spud Feb 24, 2026 Greater Pelican Greater Peavine West Marten Hills 0/12-04-072-15W4 Lower Mannville Explorati
Slide 17: 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 18: Appendix
Headwater Exploration Inc. Appendix TSX:HWX
Slide 19: Marten Hills & Greater Pelican Secondary Recovery
MARTEN HILLS & GREATER PELICAN SECONDARY RECOVERY Secondary Recovery Core Development Areas Greater Pelican Polymer Supported Wells (2 Wells) Secondary Recovery Development Area 1,000 800 Oil (bbl/d) Injection (bbl/d) 900 GOR (scf/bbl) 700 800 600 700 500 Oil Rate (bbl/d) 600 GOR (scf/bbl) 500 400 4
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 2011 2013 2015 2017 2019 2021 2023 2025 HWX Realized Pricing and Strip Pricing (US$/MMBTU) Op
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 Q4 2025 oil production compared to December 2020 oil production. 2. OOIP is management’s internal estimate. Refer to OOIP Advisory and Drilling Inventory Advisory. 3. Reserve life index (RLI) is calculated by dividing reserves by Q4 2025 annualized pro
Slide 23: Slide Notes Continued
SLIDE NOTES CONTINUED Slide 6 (continued) 4. Excess Free Cashflow is calculated as Adjusted Funds Flow from Operations less Capital Expenditures and Dividends. Excess Free Cashlow is a non-GAAP measure. Please refer to Non-GAAP Advisory. 5. Free Cashflow (FCF) is a supplementary financial measure an
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 7) 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, NON-GAAP Non-GAAP Financial Measures RATIOS AND OIL AND GAS METRICS Capital Expenditures This investor presentation contains the terms which do not have standardized meanings prescribed by
Slide 27: Non-GAAP Advisory
ADVISORIES Non-GAAP Advisory Supplementary Financial Measures Non-GAAP Ratios Free Cashflow (FCF) Operating netback FCF for this corporate presentation is defined as AFFO net of Maintenance Capital. Operating netback is defined as sales less royalties, transportation and blending costs and productio
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
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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