The quarter is a record. The flood target is a year-end estimate
Headwater (TSX: HWX) reported second-quarter 2026 results on July 23. Production averaged 24,567 boe/d, up 10 percent: 23,046 barrels of heavy oil, 8.2 million cubic feet a day of gas, and 148 barrels of NGLs. Sales, net of blending, were $227.7 million. Adjusted funds flow was $117.7 million, or $0.50 a basic share and $0.49 diluted. Operating cash was $134.6 million. The board declared $0.12 a share, payable October 15 to holders of record September 30. Cumulative dividends to date are $372.3 million, or $1.57 a share.
Second-quarter drilling sat at Marten Hills West: 14 producers and 25 injectors across Grand Rapids, Clearwater sandstone, and Clearwater E. The company said current Marten Hills West production is a new record above 18,000 boe/d, with more than 8,500 barrels a day on secondary recovery. Year-end talk for that area is more than 9,000 barrels a day supported, 53 percent of area oil. Grand Rapids in the area grew from 2,200 barrels a day to more than 4,000. Seven multi-lateral Grand Rapids wells averaged 260 barrels a day IP30. Ten Grand Rapids injectors went in. Supported Grand Rapids volume is 2,500 barrels a day.
Pelican and Seal are tests, not the corporate print
Headwater moved a rig into Greater Pelican for the second-half program. A polymer-flood expansion at 12-30-079-22W4 is four more producers and seven more injectors, aimed at early fourth quarter. Since the April 2025 discovery well the company cites more than 350,000 barrels from three producers. Seal got two multi-lateral producers and two strat tests late in the quarter. Corporate secondary-recovery talk is about 16,000 barrels a day supported by year-end, 64 percent of oil, from about 30 sections, against a $65 million 2026 flood budget. That is a forecast. It is not the 24,567 print.
Neutral read
HWX is on the listed producer list. Banks were skipped. 24,567 boe/d and $117.7 million of funds flow are the facts. Write 18,000 at Marten Hills West as a current area rate, not as corporate guidance. Watch whether 16,000 supported barrels show up, whether Pelican actually adds a pool, and whether $0.12 holds if WCS comes in.