Operator
Good morning, ladies and gentlemen. Welcome to the Saturn Oil and Gas 2026 Guidance and Budget Conference Call. [Operator Instructions] And the conference is being recorded. [Operator Instructions]
I will now turn the meeting over to Mr. John Jeffrey, CEO of Saturn. Please go ahead, John.
John Jeffrey
CEO, President & Non-Independent Director
Thank you, and good morning, everyone. We appreciate you joining us to hear more about Saturn’s disciplined 2026 budget and guidance released yesterday afternoon. In addition, we have posted a guidance presentation on our website that is intended to provide further context around our development program for the coming year.
Given the current commodity price environment, Saturn’s ’26 budget is structured to minimize capital spending and preserve the value of our asset base, so we don’t produce excessive reserves into a discounted market. This has resulted in Saturn setting a ’26 capital expenditure budget between $180 million and $190 million, with over 80% of that being directed to drilling, completion, equipment tie-in activities with anticipated 105 gross or 78 net wells to be drilled.
The budget is also designed to optimize free funds flow generation. With a ’26 free funds so yield forecast between 25% and 35%. Consistent with our Blueprint strategy, we intend to direct free funds flow towards ongoing debt repayment with incremental amounts allocated to share buybacks or opportunistic tuck-ins at attractive metrics. $185 million capital program represents a 27% decrease from the
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