Wednesday, November 26, 2025
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Hans Baldau, Associate Analyst, Noble Capital Markets, Inc.
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Third quarter financial results. Hemisphere reported revenue of C$23.1 million in Q3, down from C$26.7 million in the prior-year period, but slightly above our estimate of C$21.6 million, due to better-than-expected pricing. Net income totaled C$6.9 million, or C$0.07 per share, compared to C$8.6 million, or C$0.09 per share, last year, and in line with our forecast of C$6.9 million, or C$0.07 per share. Average daily production of 3,571 boe/d (99% heavy oil) declined 1% year-over-year due to summer workover downtime, but wasn’t far off from our estimate of 3,606 boe/d. Adjusted funds flow (AFF) from operations was C$10.1 million, or C$0.10 per share, roughly in line with our estimate of C$10.0 million, or C$0.10 per share.
Updating estimates. Reflecting slightly better than expected Q3 results but modestly lower 2025 production guidance of 3,600–3,700 boe/d, we are adjusting our full-year forecasts. We now expect 2025 revenue of C$92.7 million, compared to our prior estimate of C$93.7 million. Our operating cost assumption increased modestly to C$38.1 million from C$37.9 million. We now project 2025 net income of C$26.5 million, or C$0.27 per share, versus our previous forecast of C$27.4 million, or C$0.27 per share. AFF is projected at C$40.0 million, up from our earlier estimate of C$41.0 million. For 2026, we are holding our forecast steady with revenue of C$93.7 million, net income of C$27.7 million, or C$0.29 per share, and AFF of C$39.7 million.
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