Headwater Exploration Q3 Net Income Climbs 86% as Output Hits Record

Headwater Exploration Inc.'s third-quarter net income climbed 86% to C$66.7 million from a year earlier, as production reached a company record and sales grew.

Sales, net of blending expense, climbed 55% to $227.7 million. Production averaged 25,555 barrels of oil equivalent per day, up 13% year over year.

Adjusted funds flow from operations rose 47% to $117.9 million. On a diluted per-share basis, the figure increased 48% to $0.49 from $0.33 a year earlier. Cash flow from operating activities gained 44% to $123.4 million.

Headwater recorded an operating netback of $60.14 per barrel of oil equivalent, including financial derivatives, and an adjusted funds flow netback of $50.31 per barrel of oil equivalent. The company declared a dividend of 12 cents per common share.

Headwater and Tamarack Valley Energy Ltd. shareholders are scheduled to vote Wednesday, Nov. 18, on a proposed $10 billion all-stock combination. The deal is expected to close Thursday, Nov. 19, subject to approvals.