Saturn Oil & Gas Inc.

Good morning, ladies and gentlemen. Welcome to Saturn's second quarter 2025 results conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After management's remarks, there will be an opportunity to ask questions. During the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then 0. I will now turn the meeting over to Ms. Cindy Gray, Vice President, Investor Relations. Please go ahead, Cindy.

Thank you, Operator. Good morning, everyone, and thank you for joining us for Saturn's second quarter 2025 earnings conference call. Please note that our financial statements, MD&A, and press release have been filed on CDR Plus and are available on Saturn's website. Some of the statements on today's call may contain forward-looking information, references to non-IFRS and other financial measures, And as such, listeners are encouraged to review the disclaimers outlined in our most recent MD&A. Listeners are also cautioned not to place undue reliance on these forward-looking statements, since a number of factors could cause the actual future results to differ materially from the targets and expectations expressed. The company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, unless expressly required by applicable securities law. For further information on risk factors, please see the company's AIS file on CDAR Plus and on our website. Also note, all amounts today are Canadian dollars unless otherwise stated. Today's call will include comments from John Jeffrey, Saturn's CEO, Grant Patente, our Chief Legal Officer, and Scott Van Boren, our CFO. Over to you, John.

Thank you, Cindy, and good morning, everyone. We appreciate you joining us today. I am pleased to provide an update on Saturn's second quarter. in which we once again delivered results that met or beat our guidance. For the third consecutive quarter, production was above the high end of our guidance range at just over 40,400 BOE a day, while operating costs were under the low end of our guidance. We also surpassed analysts' forecasts across numerous measures in the quarter, including adjusted funds flow of 109 million and record free funds flow of 93 million. However, the standout number in this quarter is our net debt, which was at $695 million on June 30th, a reduction of nearly $120 million over the prior quarter. This exceeds the $100 million net debt reduction that we forecasted during the first quarter's earnings conference call, and it also came in lower than consensus expectations. As a result, our net debt to annualized adjusted EBITDA fell to 1.3 times a quarter end. Saturn continues to prioritize net debt reduction as one of the components of our blueprint strategy. This is demonstrated by an opportunistic open market purchase of our senior secured notes when they traded below par during Q2 and supplemented with a schedule of 2.5% quarterly principal repayments made on the notes. In April, the company purchased 16.3 million U.S. base value notes of our senior notes in the open market, which represented an additional full quarter payment. This equals $20 million Canadian of hard debt reduction. At the end of June, we completed the schedule of 2.5% of debt advertised payments. These principal repayments, combined with our strong quarterly free cash flow and the impact of a stronger Canadian dollar, all contributed to our significant debt reduction in Q2. With the second quarter being the lowest capital expenditure period due to spring breakup, we generated record-free funds for the second quarter. The nature of our oil-weighted mid-life cycle asset base means we can pivot if needed and shift capital quickly and seamlessly. All of Saturn's earnings locations are adjacent to offsetting production, where we have existing infrastructure and operations. This allows us to wrap activity up or down very quickly. Our well licensing, surface prep, and drilling cycle times are very short. In some areas, we can even go from licensing to bringing on volumes in a matter of weeks. In light of this, we prudently took some extra time during Q2 to monitor commodity prices and the broader economic environment before starting to execute our Q3 capital program in July. Another component of our blueprint strategy is to identify M&A opportunities to acquire low-cost, high-quality barrels that are established operations. We aim to transact on assets that can be acquired for a two times cash flow or less, or a value that approximates the asset's PDP. This allows us to enhance the upside by capturing synergies, reducing costs, and optimizing the performance of the assets. During the quarter, we closed a $5 million corporate token acquisition in Southeast Saskatchewan, which is complementary to our existing operations provides drilling locations and future upside, and is estimated to contribute over 100% of the purchase price to the capital of the company over the next 12 to 18 months. Whether small or large, our strategy is to acquire and integrate these assets that have rapid paybacks and identify opportunities for enhancements. We'll continue to look for complementary packages that can further enhance Saturn's portfolio and drive ongoing value creation. With a discount market valuation relative to our net asset value, the company has continued to allocate free punch flow to the purchase of Saturn stock through the normal course issue bid, or the NCIB, and we lost our inaugural standard issuer bid, or the SIP, in early June. Buying back our own shares reflects our view that Saturn's barrels are the highest quality and most undervalued available in the marketplace today. Therefore, we continue to maximize daily purchases shareholders and casting around 2 million common shares. Since Saturn's share price steadily increased following the SIV announcement, including a few days trading above the $2.50 offer price, we only seen 1.6 million shares tendered out of a total of 7 million shares offered, returning 3.5 million to shareholders. The SIV proved beneficial to all shareholders. Since its announcement, our market cap has increased by over $100 million with significant expansion of our trading liquidity. Under both the SIP and the NCIP, Saturn has bought back over 11.2 million shares for cancellation since August of 2024, returning approximately 24 million to shareholders and further enhancing our per share metrics. Over the past several quarters, Saturn has maintained a steady, stable execution of our strategy. We continue to fulfill our promise that the market remain disciplined and optimistic and transparent. Our asset base and innovations from our team provide an ideal blueprint for creating lasting value for our shareholders. I'll now pass it over to Grant to talk through a few development highlights in a quarter. Thanks, John. In the second quarter, Saturn's volumes averaged 40,417 DOE per day, which is above our quarterly guidance and higher than our analysts' expectations. It reflects our ongoing well of performance and our tight curve. salt state of our DPL 50 and 21 well. It is a two-mile, eight-leg, open-hole, multi-land well that was among the top three best-performing Saskatchewan liquid wells in May. In addition, three of Saturn's blockhead-extended reach horizontal cardium wells were ranked in the top 15 wells in the Alberta Cardium. Since those wells have fully paid up, we're seeing reverse declines with production volumes increasing after 30 days. One of these wells has had the longest carting well ever drilled, over 7,570 meters, which successfully utilized an innovative hybrid completion technique that the Saturn team developed. We intend to apply this hybrid completion technique in our other areas, including our cave-off bonding, where we are drilling the first ever three-mile lateral in the area. Being able to drill longer laterals while still maintaining the ability to effectively stimulate the and conventional Saskatchewan assets. We are also very excited about the progress made in the company's first dupil-bottom water flood project at Creelman, where we have just commenced water injection. We're modeling an estimated 12 to 18 months in order to pressure up the reservoir before we start to see results, with the offsets providing pressure support for new walk-in development wells that we're planning in 2026. The Creolin Water Flood Project includes a new water source well, area infrastructure, and five ejector conversions to date. This is the first stage of a larger, multi-year water flood program over a greater detailed area, targeting the flattening of the decline curve to support a material increase in the ultimate recovery of future flood preserves. Investing in water flood projects today can meaningfully improve our long-term sustainability by increasing recoverable volumes and boosting reserve value. Using simple math, if Saturn had a field with 100 million barrels of oil in place, and we increased the recovery factor of the field from 6 to 20%, it would represent an incremental 14 million reusable barrels. Applying our Q2-25 netback of $36 per VOE translates into an incremental capital of over $500 million. This magnitude of impact from water flood provides significant and lastly durable benefit and value creation. With that, I'll hand things over to Scott for an overview of our financial results. Thanks, Grant. Good morning, everybody. Saturn posted another robust quarter with cash flow of $109,456 per share, record free funds flow of $93,048 per share, against the backdrop of an 11% decline in the WTI prices quarter-by-quarter and a Canadian dollar strengthening relative to the U.S. dollar. Operating net back per VOE was $35.84 after derivatives, supported by lower operating costs at $18.28 per VOE, and reduced royalty expenses $7.68 per VOE.