Saturn Oil & Gas announces a net debt reduction of $86mn in the second quarter of 2025, bringing total debt down to $500mn. This progress is based on regular repayments, discounted bond buybacks on the market, and favourable exchange rate effects on US dollar borrowings. These combined actions strengthen the company’s financial flexibility and improve its capital structure.
Strong production and rising profitability
In the second quarter, average production reached 40,417 barrels of oil equivalent per day, surpassing the upper range of Saturn Oil & Gas’s own forecasts. Adjusted funds flow stood at $78mn, up 23% year-on-year, while free cash flow reached a record $67mn. Adjusted EBITDA came to $95mn, representing a 24% increase compared to the previous year. Net profit for the period totalled $68mn, supported by controlled operating costs at $13.15 per barrel.
Investments for the period were limited to $11mn, with the company focusing on operational optimisation and financial discipline.
Active capital management and share buybacks
Saturn Oil & Gas continued its capital return programme, buying back $2.4mn in shares during the quarter, equal to two million shares. Since August 2024, the company has returned around $17mn to shareholders through buybacks, reducing the number of shares outstanding to 193 million. Several multi-lateral wells operated by Saturn Oil & Gas in Saskatchewan and Alberta have been identified among the best performers on the market, contributing to stable operating results.
Regulatory changes, including the removal of the carbon tax in Saskatchewan, allow the company to anticipate up to $14mn in annual savings, which may be reinvested in production optimisation and new strategic projects.
Strategic outlook and upcoming investments
Saturn Oil & Gas is planning investments between $58mn and $65mn in the third quarter of 2025, with the implementation of twenty-one new drillings and the launch of a pilot water injection project at the Creelman Bakken site. The share buyback programme is ongoing, with management considering this strategy essential for financial agility and shareholder value creation.
The strategic focus on debt reduction, disciplined investment, and cost control remains at the core of Saturn Oil & Gas’s roadmap. The company believes the stability of its production and its ability to adjust capital allocation are key assets for future developments in the North American oil market.
