Strathcona Resources Ltd. Reports Third Quarter 2026 Financial and Operating Results and Announces Quarterly Dividend

Quarter Review and Near-Term Priorities

Production for the third quarter of 2026 of 123 Mboe / d (99.7% liquids) was up 6% versus the second quarter of 2026. Operating Earnings of $371 million ($1.73 / share) were approximately flat versus the prior quarter, with lower oil prices being offset by higher production. Free Cash Flow of $286 million ($1.34 / share) was also approximately flat versus the prior quarter, the majority of which was used to repay debt to approximately $1.7 billion.

In Cold Lake, production improved 3% quarter-over-quarter, driven by strong performance at the Company's eight well pair D01 West pad at Lindbergh. Productive capacity from the pad continues to average approximately 7 Mbbls / d at a steam-oil ratio (SOR) of 1.8x six months after start-up, making it the most productive and lowest SOR pad the Company has drilled to date in Cold Lake. Current activity is focused on the follow-up four-well pair D05 South pad at Lindbergh, which is expected to achieve first oil by the end of 2026 and increase Lindbergh's production to approximately 22 Mbbls / d, a record for the field.

In Lloydminster Thermal, the Company remains focused on the start-up of the remaining initial well pairs at its Meota Central project. Nine of the 16 initial well pairs have completed start-up and are currently producing approximately 4,000 bbls / d, in line with expectations. The start-up of the remaining seven well pairs has been delayed until early in 2027, following the Company's decision to change from a "bullhead" start-up process (in which steam is injected directly into the reservoir) to a modified "circulation" start-up (in which steam is circulated within the well and back to surface). Circulation is the dominant start-up process used in Alberta SAGD operations, and while the circulation approach requires more time than the bullhead approach, it is expected to lead to better long-term steam conformance for the remaining well pairs based on their unique reservoir characteristics.

In Lloydminster Conventional, production was steady quarter-over-quarter at approximately 20 Mbbls / d, with strong base performance at the Company's Cactus Lake polymer flood offset by facility downtime during the quarter at other fields. Capital activity has been focused on the company's annual drilling program at Bodo-Cosine, where the company is drilling 11 producers and seven injector wells.

Dividend Increase

Strathcona's Board of Directors has declared a quarterly dividend of $0.32 per share to be paid on December 14, 2026 to shareholders of record on December 4, 2026. This represents a 7% increase from the prior quarter, in-line with quarter-over-quarter production growth per share. The Board of Directors will consider future dividend increases in concert with future production growth per share, in keeping with past practice.

Payments to shareholders who are not residents of Canada will be net of any Canadian withholding taxes that may be applicable. Dividends paid by Strathcona are considered "eligible dividends" for Canadian tax purposes.

Agreement to Acquire Greenfire Resources

Today the Company announced it had reached a definitive agreement to acquire Greenfire Resources Ltd. (TSX: GFR, NYSE: GFR). Shareholders are encouraged to review the joint press release between Strathcona and Greenfire for further details.

The proposed acquisition transaction is expected to close in late January 2027 following shareholder, court and applicable regulatory approvals, following which the Company expects to provide pro forma 2027 guidance as well as a detailed update to its pro forma long-range plan.

About Strathcona

Strathcona is one of North America's fastest growing pure play heavy oil producers with operations focused on thermal oil and enhanced oil recovery. Strathcona is built on a strategic approach to growth achieved through the consolidation and development of long-life assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX).

For more information about Strathcona, visit www.strathconaresources.com .

Non-GAAP Measures and Ratios

The financial results for the three and nine months ended September 30, 2026 and 2025 and the three months ended June 30, 2026, are presented below to reconcile continuing and discontinued operations to total results. Total results in a non-GAAP measure used by Management to assess the historical financial performance of the total business and is not intended to be indicative of future results.

"Oil and natural gas sales, net of blending and other income"is calculated by deducting purchased product and blending costs from oil and natural gas sales, sales of purchased product, midstream revenue and other income. Management uses this metric to isolate the revenue associated with the Company's production after accounting for the unavoidable cost of blending. Oil and natural gas sales, net of blending, is also reflected on a per boe basis calculated using sales volumes. This ratio is useful to management when analyzing realized pricing against benchmark commodity prices.

" Effective royalty rate" is calculated by dividing royalties by oil and natural gas sales, sale of purchased product and midstream revenue, net of blending and purchased product. This metric allows management to analyze the movement of royalty expenses in relation to realized and benchmark commodity prices.

" Operating Earnings – Discontinued" is considered a key financial metric for evaluating the profitability of Strathcona's discontinued operations. " Operating Earnings - Continuing" is a GAAP financial measure as it is used by the Chief Operating Decision Makers to evaluate profit or loss and is presented in the condensed consolidated interim financial statements for three and nine months ended September 30, 2026 and 2025. A quantitative reconciliation of Operating Earnings – Discontinued to the most directly comparable GAAP financial measure, Oil and natural gas sales, is presented above.

" Funds from Operations" is used by management to analyze operating performance and provides an indication of the funds generated by Strathcona's principal business to either fund operating activities, re-invest to either maintain or grow the business or make debt repayments. Funds from Operations is derived from Operating Earnings and adjusted for depletion, depreciation and amortization (" DD&A"), finance costs, gains and losses on risk management contracts – realized and gains and losses on foreign exchange - realized.

"Free Cash Flow" is a key financial metric for evaluating Strathcona's liquidity as it indicates the funds available for deleveraging, funding future growth, or shareholder returns. Free Cash Flow is derived from Operating Earnings and adjusted for DD&A, finance costs, gains and losses on risk management contracts – realized and gains and losses on foreign exchange - realized, capital expenditures and decommissioning costs.

Quantitative reconciliations of Funds from Operations and Free Cash Flow for both continuing and discontinued operations to the most directly comparable GAAP financial measure, Operating Earnings, are set forth below.

The following table reconciles Operating Earnings, Funds from Operations and Free Cash Flow from continuing and discontinued operations:

Supplementary Financial Measures

"Interest and finance costs" is an aggregation of interest and finance costs. Management uses this metric to obtain a fulsome understanding of all interest and accretion costs the Company is subject to.

" Other items" is an aggregation of risk management contracts, foreign exchange, transaction related costs, gain on marketable securities, gain on sale of assets, deferred tax expense, change in decommissioning liabilities, loss on contingent consideration and loss on settlement of other obligations from both continuing and discontinued operations. They are presented in such a manner to yield prominence to key financial metrics such as income and comprehensive income, Operating Earnings, Funds from Operations and Free Cash Flow.

" Non-cash items" is an aggregation of depletion, depreciation and amortization, and finance costs.

" Debt, net of marketable securities and cross-currency swap asset/liability" is comprised of debt less marketable securities and cross-currency swap asset/liability, as derived under the Accounting Standards.

Presentation of Oil and Gas Information

This press release contains various references to the abbreviation "boe" which means barrels of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ("mcf") of natural gas to one barrel ("bbl") of crude oil. Boe may be misleading, particularly if used in isolation. A boe conversion rate of 1 bbl : 6 mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 bbl : 6 mcf, utilizing a conversion ratio of 1 bbl : 6 mcf may be misleading as an indication of value.

References in this press release to initial production rates and other short-term production rates and test results are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating aggregate production for the Company or the assets for which such rates are provided. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the test results should be considered to be preliminary.

Product Type Production Information

National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities includes condensate within the natural gas liquids product type. The Company has disclosed condensate as combined with light oil and separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this presentation provides a more accurate description of its operations and results therefrom. References to "oil and condensate" in this press release refer to, collectively, light and medium crude oil, heavy crude oil, bitumen and natural gas liquids. References to "natural gas" in this press release refer to conventional natural gas. References to "liquids" in this press release refer to, collectively, bitumen, heavy oil, condensate and light oil (comprised of condensate and light oil) and other natural gas liquids (comprised of ethane, propane and butane only).

The Company's quarterly average daily production volumes for three and nine months ended 2026 and 2025, and the references to "natural gas", "crude oil" and "condensate", reported in this press release consist of the following product types, as defined in NI 51-101 and using a conversion ratio of 6 mcf : 1 bbl where applicable:

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. The forward-looking information in this press release is based on Strathcona's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon.

The use of any of the words "expect", "target", "anticipate", "intend", "estimate", "objective", "ongoing", "may", "will", "project", "believe", "depends", "could" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: the Company's business strategy and future plans; expected operating strategy; the Company's capital program, including the anticipated productive capacity and steam-oil ratio of the D01 West pad at Lindbergh, the expected timing of first oil from the four-well pair D05 South pad at Lindbergh and the anticipated increase in production at Lindbergh to approximately 22 Mbbls / d, the expected timing of start-up of the remaining seven initial well pairs at the Meota Central project and the anticipated benefits of the circulation start-up process, including better long-term steam conformance, and the Company's drilling program at Bodo-Cosine; the declaration and payment of the Company's quarterly dividend, including the amount and timing thereof, and the consideration of future dividend increases in concert with future production growth; the proposed acquisition of Greenfire Resources Ltd., including the expected timing of closing and the receipt of shareholder, court and applicable regulatory approvals; the expected timing of the Company's 2027 guidance and update to its long-range plan; and the Company's future allocation of free cash flow, including debt repayment.

All forward-looking information reflects Strathcona's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of the Company's current expectations with respect to such things as: Strathcona's ability to generate sufficient cash flow to fund debt repayment and dividend payments; Strathcona's ability to declare and pay dividends; the success of Strathcona's operations and growth and expansion projects, including the start-up of the remaining well pairs at the Meota Central project and first oil from the D05 South pad at Lindbergh on the anticipated timelines; expectations regarding production growth, future well production rates and reserve volumes; expectations regarding Strathcona's capital program, including the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; the satisfaction of the conditions to closing of the proposed acquisition of Greenfire Resources Ltd., including the receipt of required shareholder, court and regulatory approvals, in a timely manner; the availability of third party services; prevailing and future royalty regimes and tax laws; future well production rates and reserve volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Strathcona's assets; decommissioning obligations; Strathcona's ability to comply with its financial covenants; and the governmental, regulatory and legal environment. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct.

The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, without limitation: changes in commodity prices; changes in the demand for or supply of Strathcona's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing Russia/Ukraine conflict and the conflict in the Middle East, and other heightened geopolitical risks and the ability of the Company to carry on operations as contemplated in light of the foregoing; determinations by the Organization of the Petroleum Exporting Countries and other countries as to production levels; unanticipated operating results or production declines; delays in, or unsuccessful, start-up of new well pairs and pads; changes in tax or environmental laws, climate change, royalty rates or other regulatory matters; changes in Strathcona's development plans or by third party operators of Strathcona's properties; competition from other producers; inability to retain drilling rigs and other services; the failure to obtain the required shareholder, court and regulatory approvals for, or to satisfy the other conditions to, the proposed acquisition of Greenfire Resources, or delays in or the failure to complete such acquisition; failure to realize the anticipated benefits of the Company's acquisitions; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Strathcona's oil and gas reserve and contingent resource volumes; limited, unfavourable or a lack of access to capital markets or other sources of capital; increased costs; a lack of adequate insurance coverage; the impact of competitors; and the other factors discussed under the "Risk Factors" section in Strathcona's Management's Discussion & Analysis and Annual Information Form, each for the year ended December 31, 2025, and from time to time in Strathcona's public disclosure documents, which are available at www.sedarplus.ca.

Declaration of dividends is at the sole discretion of the board of directors of Strathcona and will continue to be evaluated on an ongoing basis. There are risks that may result in Strathcona changing, suspending or discontinuing its quarterly dividends, including changes to its free cash flow, operating results, capital requirements, financial position, debt levels, market conditions or corporate strategy and the need to comply with requirements under its credit agreement and applicable laws respecting the declaration and payment of dividends. There are no assurances as to the continuing declaration and payment of future dividends or the amount or timing of any such dividends.

This earnings release contains information that may constitute future-oriented financial information or financial outlook information (collectively, "FOFI") about Strathcona's prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. Strathcona's actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. Strathcona has included FOFI in order to provide readers with a more complete perspective on Strathcona's future operations and management's current expectations relating to Strathcona's future performance. Readers are cautioned that such information may not be appropriate for other purposes.

The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Strathcona does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

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