• Achieved record production of 43,704 boe/d⁽²⁾, beating Saturn's guidance and analyst expectations⁽⁸⁾ for the ninth consecutive quarter

• Generated cash flow from operating activities of $156 million and record quarterly adjusted funds flow⁽¹⁾ of $150 million ($0.84/share)

• Executed Saturn's highest capital expenditure program in our history, deploying $128 million and drilling a total of 60 gross wells, of which 52 were drilled in Saskatchewan

• Continued executing our blueprint strategy with 'core-up' acquisitions both during and after the quarter, building on our 10% forecast organic growth and driving an increased 2026 exit production target of 54,000 to 56,000 boe/d⁽²⁾

Calgary, Alberta--(Newsfile Corp. - November 4, 2026) - Saturn Oil & Gas Inc. (TSX: SOIL) (OTCQX: OILSF) ("Saturn" or the "Company"), a light oil-weighted producer focused on unlocking value through the development of assets in Saskatchewan, Manitoba and Alberta, is pleased to report our operating and financial results for the three and nine months ended September 30, 2026, featuring record quarterly production that exceeded both guidance and analyst expectations, along with record quarterly adjusted funds flow⁽¹⁾ ("AFF") of $150 million ($0.84/share). We also executed our largest capital program to date, investing $128 million and increasing Q3/26 average production by 6% (15% per share), AFF⁽¹⁾ by 45% (56% per share) and cash flow from operating activities by 24% to $156 million relative to the third quarter of 2025.

Saturn's financial statements ("Financial Statements") and Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2026, are available on our website and filed on SEDAR+ at sedarplus.ca. As previously announced, we have scheduled a conference call and webcast on Thursday, November 5, 2026, at 8:00 am Alberta Time (9:00 am Eastern Standard Time) to discuss the results. Access details for the conference call and webcast are provided below.

"Saturn delivered record production and AFF⁽¹⁾ in the quarter while executing the largest capital program in our history," said John Jeffrey, Chief Executive Officer. "Building on approximately 10% forecast organic production growth in 2026, we continued to execute our blueprint strategy through accretive acquisitions that added approximately 3,700 boe/d⁽²⁾ of light oil-weighted production and expanded our drilling inventory, while strengthening our capital structure through the refinancing of our senior notes. That momentum has carried into the fourth quarter with the Corex acquisition and an increased 2026 exit production target of 54,000 to 56,000 boe/d. We remain focused on disciplined growth, reducing debt and returning capital to shareholders."

Q3 2026 HIGHLIGHTS

• Achieved record quarterly production of 43,704 boe/d⁽²⁾ (82% oil and liquids), reflecting continued outperformance of Saturn's wells, while volumes averaged 42,758 boe/d⁽²⁾ during the first nine months of 2026.

• Generated record AFF⁽¹⁾ of $150 million ($0.84/share) in Q3, bringing AFF for the first nine months of the year to $380 million. Adjusted EBITDA⁽¹⁾ in the quarter also set a new record at $171 million, contributing to the $439 million in adjusted EBITDA⁽¹⁾ generated through September 30, 2026. The quarter's net loss of $48 million ($0.27/share) primarily reflects non-cash unrealized hedge losses and one-time costs associated with refinancing our senior notes.

• Executed Saturn's largest capital expenditure⁽¹⁾⁽⁴⁾ program of $128 million during Q3, resulting in the drilling of 60 gross (54.5 net) wells, including 32 (29.6 net) in southeast Saskatchewan ("SE SK"), 20 (16.9 net) in West Central SK, and 8 (8.0 net) in Central Alberta, with approximately $30 million of Q3/26 capital deferred into Q4/26 due to wet weather in SE SK.

• Generated free funds flow⁽¹⁾ of $22 million ($0.12/share) in the quarter, with $167 million ($0.93/share) generated during the first nine months of 2026. Saturn continues to direct our free funds flow to returning capital through our share buyback program, disciplined core-up acquisition strategy and ongoing net debt reduction.

• Added 3,700 boe/d⁽²⁾ of 96% light oil and liquids through strategic tuck-in acquisitions during the quarter, investing $176.6 million to bring privately-held Burgess Creek Exploration Inc. and Triland Energy Inc. (the "SE SK Acquisitions") into Saturn's SE SK operations at attractive metrics of 1.7 times run-rate net operating income⁽¹⁾ and further enhancing our netbacks.

• Closed the dual-tranche offering of senior unsecured notes due 2031, issuing US$575 million at 8.5% and C$185 million at 7.5% (together, the "New Notes"), with proceeds used to early retire Saturn's outstanding senior secured second lien notes ("2L Notes") due 2029, which had a balance of $706.7 million (US$503.8 million). The New Notes reduce effective interest costs by approximately 2%, extend the tenor by two years, eliminate the mandatory 10% amortization feature, are unsecured and relax certain covenants that were required under the 2L Notes.

• Increased 2026 guidance to reflect continued operational outperformance, the SE SK Acquisitions, and impact of the New Notes, with an expansion of our full-year capital to $355 to $375 million and the first increase to our exit production guidance to 48,000 to 50,000 boe/d⁽²⁾, which was subsequently increased to 54,000 to 56,000 boe/d⁽²⁾ with the Corex Acquisition.

• Ended the quarter with net debt to annualized adjusted EBITDA⁽¹⁾ of 1.5 times on net debt of $1,001 million and approximately $500 million of liquidity on an undrawn credit facility. At current commodity prices, we anticipate the Company will be positioned to exit 2027 with net debt to adjusted EBITDA⁽⁵⁾ of less than one times.

• Renewed our Normal Course Issuer Bid ("NCIB"), having repurchased a total of 12.1 million shares in the open market from August 27, 2025, to July 22, 2026, at a weighted average price of $3.29 per share, bringing total capital returned to Saturn shareholders to $66 million through the repurchase and cancellation of 24.2 million shares since August 2024. The renewed NCIB authorizes the repurchase and cancellation of up to 12.2 million common shares until September 7, 2027, with a daily maximum purchase of 200,855 shares subject to certain exceptions for block repurchases.

• Returned $10.3 million to shareholders during the quarter through the repurchase and cancellation of 1.5 million shares via our NCIB at a weighted average price of $6.69 per share, continuing our steady return of capital to Saturn shareholders.

EVENTS SUBSEQUENT TO QUARTER END

• Announced the accretive acquisition of Corex Resources Ltd. (the "Corex Acquisition") on October 19, 2026, adding approximately 7,000 bbl/d of 100% light oil, high-netback production, expanding our SE SK core area into Manitoba and supporting an increase to our forecast 2026 exit production to 54,000 to 56,000 boe/d⁽²⁾. The $302 million purchase price represents 1.6 times run-rate net operating income⁽¹⁾ and 82% of PDP NPV10 value⁽⁷⁾, reflecting Saturn's continued execution of our blueprint strategy.

FINANCIAL AND OPERATING HIGHLIGHTS

 

OPERATIONAL UPDATE

The third quarter of 2026 marked another strong period of operational execution, with production averaging 43,704 boe/d, a new quarterly volume record that exceeded both our previous guidance and analyst expectations for the ninth consecutive quarter. Saturn executed a record $128 million capital expenditure program during Q3/26, with six rigs running, and recorded zero lost-time injuries despite a 42% increase in person-hours work