Headwater Exploration posted strong Q2 2026 results, reporting net income of CAD 85.4 million and basic earnings of CAD 0.36 per share, with revenue of about CAD 227.7 million. The company achieved record production of 24,567 boe/d, driven by higher volumes and development activity at Marten Hills West, supported by secondary recovery in the Grand Rapids and Clearwater formations. Operating metrics showed an adjusted funds flow from operations of CAD 117.7 million and an operating netback of CAD 59.88/boe (adjusted funds flow netback CAD 52.54/boe). Capital expenditure for the quarter totaled CAD 81.6 million, and Headwater declared a quarterly dividend of CAD 0.12 per share (CAD 28.5 million in total), with cumulative dividends to date of CAD 372.3 million. The company reported a healthy balance sheet, with working capital of CAD 10.2 million and no outstanding bank debt, while current production surpassed 18,000 boe/d and more than 8,500 bbl/d were supported by secondary recovery. These results reinforce Headwater’s position in the energy sector and set the stage for ongoing production growth and capital allocation in 2026.