Canada’s Top Growing Companies 2023: Saturn Oil & Gas Inc.

Saturn Oil & Gas Inc.

2800, 525 8th Ave SW
Calgary, AB T2P 1G1

2022 REVENUE

$250M - $500M CAD

3-YEAR REVENUE GROWTH %

1,929%

NUMBER of Employees

282

Year on Ranking (inc. 2023)

1

Saturn Oil & Gas Inc. is taking a unique strategy to growing a Canadian energy company, focused on generating positive shareholder returns through the responsible development of light oil weighted assets in Western Canada.

The crude oil price crash in 2020 created severe challenges to oil producers, but also created tremendous opportunity for aggressive-minded junior companies looking to acquire high-quality assets at low valuations. Saturn entered 2021 with oil production of only 233 barrels a day. By June 2023, Saturn reached daily production of over 27,000 barrels of oil equivalent, weighted approximately 80 per cent to oil and natural gas liquid (NGL). Saturn’s rapid growth resulted from a series of strategic acquisitions, successful drilling programs, and an unwavering focus on developing high-quality light oil assets.

Saturn has cultivated strategic relationships with its financial partners. Saturn’s lender, a private family office, has supported each of its four acquisitions over the past two years, starting with an $87-million loan for the acquisition of the Oxbow Asset, a light oil producing property in Southeast Saskatchewan, in 2021. An additional $375-million supported the January 2023 acquisition of a private company, which overlaps the Oxbow Asset, expanding oil and gas production by 140 per cent in Saskatchewan and Alberta. Saturn’s strategy of targeting undervalued light oil producing assets and companies creates significant free cash flow to rapidly repay acquisition debt.

Saturn’s asset base offers significant opportunity for organic enhancement and growth of oil and gas production. Saturn undertook an ambitious capital program in 2022, drilling 57 horizontal wells across its newly acquired properties. Some of Saturn’s best drilling results have come in the Viking Asset of West Central Saskatchewan where two acquisitions closed in 2022. Saturn controls most of the critical infrastructure and pipeline gathering systems in its core operating areas. This allowed approximately 80 per cent of its $89-million capital budget in 2022 to be directed to the drill bit, and less funds required for new facilities.

Saturn is focused on low-risk development drilling. The company achieved a 100 per cent success rate drilling last year and is well on its way to replicating that achievement in 2023 with an even larger budget. Looking forward, the company has ample drilling opportunities on its existing lands to sustain over 15 years of drilling activity.

Saturn has been fortunate to attract several institutional investors, which now make up most of its shareholder base, including Atlanta-based GMT Capital Corp., a private investment company with approximately $5-billion of assets under management. GMT has continued to increase its ownership position, reporting holdings of 24.9 per cent of Saturn’s outstanding common shares as of May 2023.

Saturn has emerged as a fast-growing energy producer with a dedicated team working to efficiently develop oil and gas in Western Canada. With an unwavering commitment to building an ESG-focused culture, Saturn’s goal is to continue increasing reserves, production and cash flows at an attractive return on invested capital.

Saturn’s shares are listed for trading on the Toronto Stock Exchange under ticker ‘SOIL,’ on the Frankfurt Stock Exchange under symbol ‘SMKA’ and on the OTCQX under the ticker ‘OILSF.’

Advertising feature provided by Saturn Oil & Gas Inc. The Globe and Mail’s editorial department was not involved.