Hemisphere Energy Corp · TSXV:HME
Hemisphere Energy — Investor Presentation (August 2025)
24 slides from Hemisphere Energy's investor presentation, Aug 15, 2025
Slide 1: Oil Resource, Enhanced Recovery, Shareholder Return
August 2025 www.hemisphereenergy.ca Oil Resource Enhanced Recovery Shareholder Return TSX-V: HME OTCQX: HMENF TSX.V: HME | OTCQX: HMENF 1
Slide 2: The Hemisphere Strategy: Per Share Growth & Shareholder Return
The Hemisphere Strategy: Per Share Growth & Shareholder Return Focused Strong Profitable Unique › Long life, high › Debt free, building › High margin oil › Enhanced Oil value Canadian oil cash, minimal barrel & low capital Recovery (EOR) – assets liabilities requirements Polymer Flood Years of susta
Slide 3: Canadian oil company: Management Team Aligned with Shareholders
Canadian oil company: Management Team Aligned with Shareholders TSX Venture (Canada) HME OTCQX (USA) HMENF Share Price (TSX-V) (August 14, 2025) $1.94 ALBERTA SASKATCHEWAN Basic Shares Outstanding 95.2 million Fully Diluted Shares Outstanding 100.3 million Marsden Insider Ownership (Basic / Fully Di
Slide 4: Track Record and Compound Annual Growth Rate
The timeline: Track Record and Compound Annual Growth Rate (1) Production boe/d / million FD(3) shares Reserve Value(2) / FD(3) share PDP TP TPP 35 30 4.5 25 4.0 3.5 20 3.0 15 2.5 2.0 10 1.5 1.0 5 0.5 - - 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 Adjusted Funds Flow, Debt
Slide 5: Q2 2025 Financial Highlights
The Bottom Line: Q2 2025 Financial Highlights Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Average Production 3,826 boe/d (99% heavy oil) 3,830 boe/d (99% heavy oil) Revenue $24.4 million / $70.06/boe $51.7 million / $74.64/boe EBITDA(1) $12.7 million / $36.39/boe $28.3 million /
Slide 6: 2025 Guidance: Balancing Growth with Return to Shareholders
2025 Guidance(1-5) : Balancing Growth with Return to Shareholders Price Sensitivity (WTI in $US) $ / bbl $65 WTI $75 WTI $85 WTI Average Annual Production boe/d 3,900 3,900 3,900 Adjusted Funds Flow (AFF) $ million 40 51 61 AFF per Basic Share $/share 0.41 0.52 0.63 Capital Expenditures & ARO(6) $ m
Slide 7: The Underlying Value is in our Ultra-Low Decline Reserves
The Underlying Value is in our Ultra-Low Decline Reserves: Third-Party Evaluated Estimate of Future Cash Flow 2024 Year End Reserves(1) Reserves NPV10 BT Proved Developed Producing (PDP) 9.3 MMboe $273 million Total Proved (1P) 11.4 MMboe $317 million Total Proved + Probable (2P) 14.5 MMboe $393 mil
Slide 8: Atlee Buffalo, Alberta - EOR - Polymer Floods
Heart of the company: Atlee Buffalo, Alberta - EOR - Polymer Floods Conventional Oil + EOR = Cash Flow Engine › 97% of corporate production is from Atlee Buffalo › 100% owned and operated › High-quality reservoirs (porosity and permeability) › Both pools are under EOR polymer flood › Maximize resour
Slide 9: Polymer Flooding – Proven Method of Enhanced Oil Recovery
How does polymer work? Polymer Flooding – Proven Method of Enhanced Oil Recovery Polymer flooding has been successfully used by oil companies all around the world since the 1950’s › Polymer is added to injection water to increase its viscosity (similar to olive oil) and reduce its ability to easily
Slide 10: Polymer Flooding EOR = More Oil → Faster
How does polymer Respond? Polymer Flooding EOR = More Oil → Faster Polymer flooding works with the right rock, oil quality, and play type Atlee Buffalo G Pool Polymer Injection Infrastructure Typical Reservoir Response › Increase in oil production › Decrease in production decline rate › Increase in
Slide 11: EOR = Lower Decline = More Free Cash Flow
What REALLY makes us unique? EOR = Lower Decline = More Free Cash Flow(1) ‘Typical’ Oil & Gas Co: Treadmill style drilling Well Count with corporate production Boe/d decline rates of 20% - 30% Average of estimated 2024 Canadian corporate decline rates(2): Large – 16% Intermediate – 29% Junior – 30%
Slide 12: Marsden, Saskatchewan – Polymer Flood Pilot Project
We now have a new area: Marsden, Saskatchewan – Polymer Flood Pilot Project Looking for oil in an old field with a new idea Large delineated oil-in-place development resource › Where better to find oil than where it has already been found! › Historical vertical wellbores help define the oil reservoi
Slide 13: Returning Free Cash Flow to Shareholders
Share buybacks & dividends: Returning Free Cash Flow to Shareholders Base Dividends › Quarterly dividend of $0.025/share is fully funded by free cash flow › Implied annual yield of ~5.2% at current market cap › Paid out $32.4 million ($0.325/share) over 13 quarters since inception in June 2022 › Nex
Slide 14: A Truly Niche Story in the Oil Space
Why invest in Hemisphere? A Truly Niche Story in the Oil Space High free cash flow yield › HME has one of the best free funds flow yields in the industry due to: ▪ Ultra-low production declines ▪ Low operating and capital costs ▪ Long life, high netback reserves No debt, positive cash position, and
Slide 15: Think 'small, but MIGHTY'
The Hemisphere Story: Think ‘small, but MIGHTY’ RESOURCE RECOVERY RETURN Think Ultra-low Declines Think Long Life Reserves Think Dividends and NCIB Independent Analyst Coverage Amir Arif, ATB Capital Markets Mark Reichman, Noble Capital Markets TSX-V: HME OTCQX: HMENF Disclaimer: Opinions, estimates
Slide 16: Contact
TSX-V: HME OTCQX: HMENF www.hemisphereenergy.ca Ashley Ramsden-Wood, Chief Development Officer (604) 282-6028 ramsden-wood@hemisphereenergy.ca Don Simmons, President & Chief Executive Officer (604) 638-6213 simmons@hemisphereenergy.ca TSX-V: HME OTCQX: HMENF 16
Slide 17: Leadership
Appendix: Leadership MANAGEMENT BOARD OF DIRECTORS Don Simmons, P.Geol. Charlie O’Sullivan, B.Sc. Chairman President & Chief Executive Officer Over 25 years of experience technical, operational and management experience (Alberta Energy Company, Encana (Ovintiv), Sebring) Don Simmons, P.Geol. Ian Dun
Slide 18: Risk Management and Protecting Cash Flow
Appendix: Risk Management and Protecting Cash Flow Hedging Considerations › Continually monitor WTI Oil and WCS Differential hedge pricing › Layer in protection for up to 12 months › Look for near-term wellhead price protection and longer-term floor protection Product Type Volume Price Index Term Cr
Slide 19: Peters & Co. Limited - Overview Table Corporate Declines
Appendix: Peters & Co. Limited - Overview Table Corporate Declines (1) Source: Peters & Co. Limited September 2023. Overview table with each of their coverage company’s estimated 2024 corporate decline rates. Note integrated companies and Canadian TSX-V: HME large producers assume an oilsands produc
Slide 20: Advisory Statements
Advisory Statements Forward-Looking Information and Statements This presentation contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should
Slide 21: Advisory Statements
Advisory Statements Non-IFRS Ratios "Reserve life index" is calculated as total company interest reserves divided by annual production, for the year indicated. “Adjusted funds flow” (”AFF”) The Company considers AFF to be a key measure that indicates the Company’s ability to generate the funds neces
Slide 22: Advisory Statements
Advisory Statements Information Regarding Disclosure on Oil and Gas Reserves, Resources and Metrics Unless otherwise specified, all reserve and resource estimates disclosed in this presentation are derived from the Company's independent reserve evaluations (the "Reserve Evaluation"). The reserve and
Slide 23: Our Playground
Our Playground TSX-V: HME OTCQX: HMENF 23
Slide 24: Contact
TSX-V: HME OTCQX: HMENF www.hemisphereenergy.ca Ashley Ramsden-Wood, Chief Development Officer (604) 282-6028 ramsden-wood@hemisphereenergy.ca Don Simmons, President & Chief Executive Officer (604) 638-6213 simmons@hemisphereenergy.ca TSX-V: HME OTCQX: HMENF 24
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