Strathcona Resources Ltd. saw a drop in production in the third quarter, primarily due to the disposition of its Montney business, the company says.
Read more: Strathcona sells Montney business
Third-quarter production of 116 Mboe/d (thousand barrels of oil equivalent per day) reflected a 36 per cent decrease from the second quarter. The disposition of the Montney business segment closed in July.
Overall, the company reported a net income of $573.2 million with revenue of $903 million. Strathcona’s existing assets saw steady or increased production in the third quarter.
Cold Lake reported an 8 per cent increase in production, quarter-over-quarter, to 61 Mbbls/d (thousand barrels per day), driven by the completion of a major turnaround at the company’s Tucker property. Four new lower drainage wells were brought online in September on the 105 and 108 pads in Orion. Strathcona says early results from the wells is encouraging, with current rates of 900 Bbls/d (barrels per day).
In Lloydminster Thermal, production increased 13 per cent quarter-over-quarter to 32 Mbbls/d, driven by continued strong performance at Strathcona’s recent expansion at Meota West 2. Most of the capital activity remains focused on the Meota Central thermal oil project. Strathcona says the project is 67 per cent complete, on schedule and on budget. Meota Central is targeting first oil in the fourth quarter of 2026 and is expected to deliver a peak oil rate of about 13 Mbbls/d.
Lloydminster Conventional is seeing continued steady production at about 22.5 Mbbls/d, in line with the prior quarter.
Strathcona’s capital budget of $1 billion and production guidance of 115-125 Mbbls/d is unchanged. A more comprehensive update to its 2026 guidance and long-range plan will be provided following the closure of the previously-announced acquisition of the Vawn thermal project and undeveloped lands from Cenovus Energy Inc. That’s expected in early December following the completion by Cenovus of its acquisition of MEG Energy Corp.
Strathcona will hold a special shareholders’ meeting on Nov. 27 to vote on a statutory plan of arrangement that would provide a special dividend of $10 per share, totalling about $2.1 billion.
Read more: Cenovus announces Strathcona support for MEG deal
