Kanye West's Yeezy Site Now Has ‘Stores Coming Soon' Message
The 24-time Grammy winner has been criticized over the past week, after making antisemitic remarks on social media. That controversy intensified after West ran a commercial during Sunday's Super Bowl LIX that aired in select markets including Los Angeles and directed viewers to the Yeezy site. Instead of the assortment of products that had been previously featured on the site, there was only a T-shirt with the swastika imprinted on it. The item was described as 'HH-01' with no further information.
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A spokesperson for the Anti-Defamation League said Thursday, 'Millions of Super Bowl viewers were shown an ad of Ye promoting his clothing website. Before the website was taken down, the only item for sale was a plain white T-shirt with a black swastika. And if that isn't enough, the T-shirt was labeled as 'HH-01' which is code for Heil Hitler.'
The ADL statement continued, 'We cannot become numb, desensitized to Nazi symbols and rhetoric. We appreciate that Shopify and Apple Pay took action, and that Fox News has condemned antisemitism and apologized for airing this ad. We urge Nexstar to do the same. Ye's words have offended several communities and it's time to stop excusing this kind of behavior.'
Shopify stopped processing orders of Yeezy merchandise on Tuesday and the talent agency 33 & West stopped representing West, who is legally known now as 'Ye.'
A media request to Yeezy was not acknowledged Thursday afternoon, nor was one to his attorney Manoj Shah of the Brand Counsel. Representatives at Shopify and 33 & West also did not respond immediately to requests for comment Thursday.
On Thursday afternoon the Yeezy e-commerce site and the @Yeezysupplyofficial account on Instagram posted a handwritten note, which read 'YEEZY STORES COMING SOON❤️'
Susan Scafidi, founder of the Fashion Law Institute at Fordham University, said that while unlike in Germany, 'it is legal in the U.S. to sell items that use the swastika to advocate Nazism, the T-shirts may have violated Shopify's 'Acceptable Use Policy,' which prohibits actions that 'breach the social contract of commerce,' including advocating violence against specific groups.'
She said, 'Shopify reserves the right to terminate any account that violates its AUP, and arguably Ye's T-shirts coupled with his public statements did just that.'
Scafidi said the 'Coming Soon' message on the Yeezy site could 'simply be due to the lack of having back-end merchant services to keep it running. It could also be that Ye is more interested in provocation than commerce at the moment. One thing is for sure: his followers will keep hitting 'refresh' until the next drama emerges.'
In 2021, New York Gov. Kathy Hochul signed legislation to ban the selling or displaying of hate symbols on public property and taxpayer-funded equipment.
Considering that Shopify isn't 'just an anonymous back-end merchant service provider, but a company with a brand name in its own right,' the company has a strong interest in protecting its reputation, according to Scafidi. She speculated that 'the outcry over Ye's T-shirts likely caused internal concern and led Shopify to use contractual means to protect its reputation.'
Scafidi added, 'Like other companies before it, Shopify chose to distance from Ye before being blamed for his statements,' an apparent reference to Adidas and other brands that have parted ways with the musician.
Although Ye still has 'a significant following, apparently including fans ready to buy whatever he puts on a T-shirt,' Scafidi said it may be increasingly difficult for him to find fashion business partners, who are 'willing to risk working with him, even if they're providing something as general as e-commerce services.'
Another offshoot of the situation was falsely created by an AI-generated video featuring the likenesses of Scarlett Johansson, Steven Spielberg, Jerry Seinfeld, Woody Allen, Adam Driver and other Jewish celebrities wearing T-shirts imprinted with a middle finger with a Star of David inside of it and 'Kanye' imprinted below. The footage was reportedly created by Ori Bejerano and Guy Bar. In response to that, Johansson is urging U.S. lawmakers to place limits on AI, describing it as 'a bipartisan issue.'
Ye also caused a stir on Feb. 7 by announcing plans to collaborate with Sean Combs' Sean John clothing label, and sharing sales of Yeezy products 50-50. Combs is being held in the Metropolitan Detention Center in Brooklyn, as he awaits his trial for sex trafficking and racketeering charges. Combs has denied any wrongdoing.
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CALGARY, AB, July 23, 2025 /CNW/ - Headwater Exploration Inc. (the "Company" or "Headwater") (TSX: HWX) is pleased to announce its operating and financial results for the three and six months ended June 30, 2025. Selected financial and operational information is outlined below and should be read in conjunction with the unaudited condensed interim financial statements and the related management's discussion and analysis ("MD&A"). These filings will be available at and the Company's website at Financial and Operating Highlights Three months ended June 30, PercentChange Six months ended June 30, PercentChange2025 2024 2025 2024 Financial (thousands of dollars except share data) Total sales, net of blending expense (1) (4) 138,808 157,057 (12) 301,996 284,423 6 Adjusted funds flow from operations (2) 74,218 88,023 (16) 166,577 164,469 1 Per share - basic 0.31 0.37 (16) 0.70 0.70 - - diluted 0.31 0.37 (16) 0.70 0.69 1 Cash flow provided by operating activities 68,673 90,402 (24) 138,608 145,449 (5) Per share - basic 0.29 0.38 (24) 0.58 0.62 (6) - diluted 0.29 0.38 (24) 0.58 0.61 (5) Net income 38,023 53,868 (29) 88,027 91,487 (4) Per share - basic 0.16 0.23 (30) 0.37 0.39 (5) - diluted 0.16 0.22 (27) 0.37 0.38 (3) Capital expenditures (1) 50,704 50,717 - 113,551 115,984 (2) Adjusted working capital (2)58,472 62,381 (6) Shareholders' equity735,055 658,448 12 Dividends declared 26,155 23,765 10 52,310 47,494 10 Per share 0.11 0.10 10 0.22 0.20 10 Weighted average shares (thousands) Basic 237,763 237,275 - 237,767 236,096 1 Diluted 239,471 239,452 - 239,469 238,026 1 Shares outstanding, end of period (thousands) Basic237,763 237,654 - Diluted (5)237,763 241,075 (1) Operating (6:1 boe conversion) Average daily production Heavy crude oil (bbls/d) 20,249 18,825 8 19,882 18,168 9 Natural gas (mmcf/d) 10.8 5.5 96 12.6 8.5 48 Natural gas liquids (bbl/d) 185 67 176 164 77 113 Barrels of oil equivalent (9) (boe/d) 22,235 19,805 12 22,151 19,661 13Average daily sales (6) (boe/d) 22,123 19,754 12 22,071 19,607 13Netbacks ($/boe) (7) Operating Sales, net of blending (4) 68.95 87.37 (21) 75.61 79.70 (5) Royalties (12.84) (16.49) (22) (13.65) (14.43) (5) Transportation (5.65) (5.54) 2 (5.53) (5.44) 2 Production (7.44) (7.24) 3 (7.68) (7.14) 8 Operating netback (3) 43.02 58.10 (26) 48.75 52.69 (7) Realized gains (losses) on financial derivatives (0.36) (0.44) (18) (0.97) 1.49 (165) Operating netback, including financial derivatives (3) 42.66 57.66 (26) 47.78 54.18 (12) General and administrative expense (1.44) (1.50) (4) (1.44) (1.49) (3) Interest income and other expense (8) 0.45 0.81 (44) 0.51 0.89 (43) Current income tax expense (4.81) (8.01) (40) (5.12) (7.46) (31) Settlement of decommissioning liability - - - (0.03) (0.03) - Adjusted funds flow netback (3) 36.86 48.96 (25) 41.70 46.09 (10) (1) Non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" within this press release. (2) Capital management measure. Refer to "Non-GAAP and Other Financial Measures" within this press release. (3) Non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures" within this press release. (4) Heavy oil sales are netted with blending expense to compare the realized price to benchmark pricing while transportation expense is shown separately. In the interim financial statements blending expense is recorded within blending and transportation expense. (5) Performance share units and restricted share units are cash settled. (6) Includes sales of unblended heavy crude oil, natural gas and natural gas liquids. The Company's heavy crude oil sales volumes and production volumes differ due to changes in inventory. (7) Netbacks are calculated using average sales volumes. For the three months ended June 30, 2025, sales volumes comprised of 20,136 bbs/d of heavy oil, 10.8 mmcf/d of natural gas and 185 bbls/d of natural gas liquids (three months ended June 30, 2024 – 18,774 bbls/d heavy oil, 5.5 mmcf/d natural gas and 67 bbls/d natural gas liquids). For the six months ended June 30, 2025, sales volumes comprised of 19,802 bbls/d of heavy oil, 12.6 mmcf/d of natural gas and 164 bbls/d of natural gas liquids (six months ended June 30, 2024 – 18,114 bbls/d heavy oil, 8.5 mmcf/d natural gas and 77 bbls/d natural gas liquids). (8) Excludes unrealized foreign exchange gains/losses, accretion on decommissioning liabilities, interest on lease liability and interest on repayable contribution. (9) See '"Barrels of Oil and Cubic Feet of Natural Gas Equivalent." SECOND QUARTER 2025 HIGHLIGHTS Achieved record production of 22,235 boe/d representing an increase of 12% from the second quarter of 2024. Realized adjusted funds flow from operations (1) of $74.2 million ($0.31 per share basic (2)), cash flows from operations of $68.7 million ($0.29 per share basic) and free cash flow (3) of $23.5 million. Achieved an operating netback, including financial derivatives (2) of $42.66/boe and an adjusted funds flow netback (2) of $36.86/boe. Achieved net income of $38.0 million ($0.16 per share basic) equating to $18.89/boe. Exceptional results from our exploration program with new pool discoveries in the Grand Rapids formation in West Marten Hills and the Wabiskaw formation in Greater Pelican. Executed a $50.7 million capital expenditure (3) program inclusive of development, exploration and secondary recovery implementation. Declared a cash dividend of $26.2 million, or $0.11 per common share. To date, Headwater has paid out a cumulative dividend of $265.2 million to shareholders ($1.12 per common share). As at June 30, 2025, Headwater had adjusted working capital (1) of $58.5 million, working capital of $64.8 million, and no outstanding bank debt. (1) Capital management measure. Refer to "Non-GAAP and Other Financial Measures" within this press release. (2) Non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures" within this press release. (3) Non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" within this press release. OPERATIONS UPDATE New Pool Discoveries Grand Rapids Formation in Marten Hills West The Company is excited to report a new pool discovery in the Grand Rapids formation within the heart of Marten Hills West. Our discovery well 07/04-18-075-01W5, a 6-leg multi-lateral well achieved a 60-day initial production rate of 345 bbls/d of 19.5 API oil. The well continues to produce at rates in excess of 300 bbls/d and is on track to achieve its first payout by the end of August. This exceptional result has setup further drilling on a pool estimated to be approximately 15 sections in size. In addition, the oil quality and reservoir characteristics of this zone are highly favorable for secondary recovery development. Headwater will follow up this discovery well with 3 - 4 additional wells and 2 secondary recovery pilots in the second half of 2025. Wabiskaw Formation in Greater Pelican The Greater Pelican discovery well, an 8-leg multi-lateral drilled at 04/04-19-079-22W4 in the Wabiskaw formation was brought on production late April and has achieved a 90-day initial production rate of 475 bbls/d of 16.5 API oil. Inflow remains strong with current producing rates in excess of 500 bbls/d. The oil quality and exceptional inflow characteristics have greatly exceeded our expectations, and we are excited to continue delineation drilling and evaluation of secondary recovery implementation. During the balance of 2025 we intend to drill two follow up delineation wells in addition to procuring equipment to implement a polymer flood pilot in early 2026. Marten Hills West Development Headwater's other second quarter activity was focused in Marten Hills West with continued drilling along the southeastern edges of the Clearwater sandstone, further step out drilling on the Clearwater E formation, in addition to further implementation of secondary recovery across both formations. Throughout the second quarter, Headwater continued to delineate the southeastern edges of the Clearwater sandstone with exceptional results. Seven wells were drilled and placed on production providing average 30-day initial production rates exceeding 225 bbls/d. Results from the seven wells have expanded the southeastern Clearwater sandstone pool boundaries and provided confirmation that the southeastern area is ideal for implementation of secondary recovery. To date, in the Clearwater sandstone we have implemented secondary recovery across two sections with stabilized oil volumes from the initial secondary recovery efforts now exceeding 1,100 bbls/d. We have recently commissioned a third full section and by year end, plan to have a total of 5 sections under secondary recovery. With the planned development, Headwater anticipates having approximately 2,500 bbls/d of oil production in the Clearwater sandstone supported by year-end. As we look to 2026 and beyond, Headwater will continue secondary recovery development in the Clearwater sandstone. It is currently estimated that an additional 25-30 sections in the Clearwater sandstone are amenable to secondary recovery. Pool boundary expansion of the Clearwater E was a focus in the second quarter with step out tests to the northwest at 00/15-23-075-02W5 and 06/16-27-075-02W5. The 00/15-23-075-02W5 well achieved a 60-day initial production rate of 184 bbls/d of 23.5 API oil and the 06/16-27-075-02W5 achieved a 30-day initial production rate of 99 bbls/d of 22.5 API oil. During the balance of 2025 Headwater has eight additional wells planned for drilling in the Clearwater E formation including three step out tests on our most northern acreage in Marten Hills West. We recently commissioned our first full section of Clearwater E secondary recovery with encouraging initial results and have plans to commission a second section of secondary recovery prior to year end. Our two original injection pilots have now been on injection for 10 months, with oil rates from these pilots stabilized at approximately 300 bbls/d for 5 months. To date we have identified 15-20 sections of Clearwater E that are amenable to secondary recovery with full scale implementation to continue in 2026 and beyond. By year end 2025 it is anticipated that approximately 25% of Marten Hills West oil volumes and 50% of Headwater's corporate oil production will be supported by secondary recovery. Marten Hills Core The core area remains our flagship commercial secondary recovery asset demonstrating the value proposition of lower declines and increasing recovery factors. Production has been flat at approximately 7,000 bbls/d for more than 18 months, which has reduced our corporate decline rate by more than 5%. Handel Saskatchewan Headwater recently started drilling our 5 well stratigraphic exploration program. The exploration program is designed to evaluate numerous conventional Mannville heavy oil prospects in addition to zones prospective for steam assisted gravity drainage. THIRD QUARTER DIVIDEND The Board of Directors of Headwater has declared a quarterly cash dividend to shareholders of $0.11 per common share payable on October 15, 2025, to shareholders of record at the close of business on September 29, 2025. This dividend is an eligible dividend for the purposes of the Income Tax Act (Canada). AUTOMATIC SHARE PURCHASE PLAN In connection with the previously announced normal course issuer bid ("NCIB"), the Company has established an automatic securities purchase plan with a designated broker whereby the Company's common shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the automatic securities purchase plan and before entering into a self-imposed blackout period, the Company may, but is not required to, request that the designated broker make purchases under the NCIB. Such purchases will be made at the discretion of the designated broker, within parameters established by the Company prior to the blackout periods. Outside of the blackout periods, purchases are made at the discretion of the Company's management. The automatic securities purchase plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been accepted by the Toronto Stock Exchange. BOARD OF DIRECTORS Headwater would like to welcome Cheree Stephenson and Karen Nielsen as new members of Headwater's Board of Directors. Ms. Stephenson was elected at Headwater's annual meeting of shareholders held on May 8, 2025. Cheree is currently Vice President Finance & Chief Financial Officer at Topaz Energy Corp. Ms. Nielsen was appointed to Headwater's Board of Directors effective today. Karen was previously the Executive Vice President and Chief Commercial Officer at ATCO EnPower. OUTLOOK Positive working capital in conjunction with a highly flexible capital budget allows timely capital allocation adjustments to appropriately align with market conditions. Headwater remains focused on maximizing total shareholder returns through organic expansion, enhanced oil recovery, dividends and strategic buy backs under its ongoing normal course issuer bid. Additional corporate information can be found in the Company's corporate presentation and on Headwater's website at FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. The use of any of the words "guidance", "initial, "anticipate", "scheduled", "can", "will", "prior to", "estimate", "believe", "potential", "should", "unaudited", "forecast", "future", "continue", "may", "expect", "project", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein, include, without limitation: that the Marten Hills West discovery well will achieve its first payout and the timing thereof; the estimated size of certain of the Company's pools; the expectation to follow up the Grand Rapids discovery well with 3 - 4 additional wells and 2 secondary recovery pilots in the second half of 2025; the expectation to drill two follow up delineation wells in Greater Pelican in addition to procuring equipment to implement a polymer flood pilot in early 2026; that Headwater anticipates having a total of 5 sections under secondary recovery and approximately 2,500 bbls/d of oil production in the Clearwater sandstone supported by year-end and expectations and timing of further secondary recovery plans; the expectation to drill eight wells in the Clearwater E formation; the planned implementation of a second section of secondary recovery in the Clearwater E formation before year end and full scale implementation to occur in 2026 and beyond; the expectation that by year end 2025 it is anticipated that approximately 25% of Marten Hills West oil volumes and 50% of Headwater's corporate oil production will be supported by secondary recovery; well results in Handel; and the anticipated terms of the Company's quarterly dividend, including its expectation that it will be designated as an "eligible dividend". The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including but not limited to expectations and assumptions concerning the success of optimization and efficiency improvement projects, the availability of capital, current legislation, receipt of required regulatory approvals, the success of future drilling, development and secondary recovery activities, the performance of existing wells, the performance of new wells, Headwater's growth strategy, general economic conditions, availability of required equipment and services, prevailing equipment and services costs, prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; risks associated with wildfires in areas in which the Company operates including safety of personnel, asset integrity and potential disruption of operations which could affect the Company's results, business, financial conditions or liquidity; the impact of tariffs and other trade retaliatory measure imposed by the United States, Canada and other countries; disruptions to the Canadian and global economy resulting from major public health events, the Russian-Ukrainian war and the conflict in the Middle-East and the impact on the global economy and commodity prices; the impacts of inflation and supply chain issues and steps taken by central banks to curb inflation; pandemics, war, terrorist events, political upheavals and other similar events; events impacting the supply and demand for oil and gas including actions taken by the OPEC + group; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks); commodity price and exchange rate fluctuations; changes in legislation affecting the oil and gas industry; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures and the risk that the Company's pools may be smaller than anticipated. Refer to Headwater's most recent Annual Information Form dated March 13, 2025, on SEDAR+ at and the risk factors contained therein. DIVIDEND POLICY: The amount of future cash dividends paid by the Company, if any, will be subject to the discretion of the Board and may vary depending on a variety of factors and conditions existing from time to time, including, among other things, adjusted funds flow from operations, fluctuations in commodity prices, production levels, capital expenditure requirements, acquisitions, debt service requirements and debt levels, operating costs, royalty burdens, foreign exchange rates and the satisfaction of the liquidity and solvency tests imposed by applicable corporate law for the declaration and payment of dividends. Depending on these and various other factors, many of which will be beyond the control of the Company, the Board will adjust the Company's dividend policy from time to time and, as a result, future cash dividends could be reduced or suspended entirely. BARRELS OF OIL AND CUBIC FEET OF NATURAL GAS EQUIVALENT: The term "boe" (or barrels of oil equivalent) and "Mcf" (or thousand cubic feet of natural gas equivalent) may be misleading, particularly if used in isolation. A boe and Mcf conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value. INITIAL PRODUCTION RATES: References in this press release to initial production ("IP") rates, other short-term production rates or initial performance measures relating to new wells are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. All IP rates presented herein represent the results from wells after all "load" fluids (used in well completion stimulation) have been recovered. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Accordingly, the Company cautions that the test results should be considered to be preliminary. NON-GAAP AND OTHER FINANCIAL MEASURES:In this press release, we use various non-GAAP and other financial measures to analyze operating performance and financial position. These non-GAAP and other financial measures do not have standardized meanings prescribed under IFRS and therefore may not be comparable to similar measures presented by other issuers. The term cash flow in this press release is equivalent to adjusted funds flow from operations. Non-GAAP Financial Measures Free cash flow Management utilizes free cash flow to assess the amount of funds available for future capital allocation decisions. It is calculated as adjusted funds flow from operations net of capital expenditures. Three months ended June 30, Six months ended June 30,2025 2024 2025 2024(thousands of dollars) (thousands of dollars) Adjusted funds flow from operations 74,218 88,023 166,577 164,469 Capital expenditures (50,704) (50,717) (113,551) (115,984) Free cash flow 23,514 37,306 53,026 48,485 Total sales, net of blending expense Management utilizes total sales, net of blending expense to compare realized pricing to benchmark pricing. It is calculated by deducting the Company's blending expense from total sales. In the interim financial statements blending expense is recorded within blending and transportation expense. Three months ended June 30, Six months ended June 30,2025 2024 2025 2024(thousands of dollars) (thousands of dollars) Total sales 144,944 164,281 315,099 298,315 Blending expense (6,136) (7,224) (13,103) (13,892) Total sales, net of blending expense 138,808 157,057 301,996 284,423 Capital expenditures Management utilizes capital expenditures to measure total cash capital expenditures incurred in the period. Capital expenditures represents capital expenditures – exploration and evaluation and capital expenditures – property, plant and equipment in the statement of cash flows in the Company's interim financial statements. Three months ended June 30, Six months ended June 30,2025 2024 2025 2024(thousands of dollars) (thousands of dollars) Cash flows used in investing activities 40,781 66,204 103,884 117,784 Proceeds from government grant - 177 - 354 Change in non-cash working capital 9,923 (15,664) 9,667 (2,154) Capital expenditures 50,704 50,717 113,551 115,984 Capital Management Measures Adjusted Funds Flow from Operations Management considers adjusted funds flow from operations to be a key measure to assess the Company's management of capital. In addition to being a capital management measure, adjusted funds flow from operations is used by management to assess the performance of the Company's oil and gas properties. Adjusted funds flow from operations is an indicator of operating performance as it varies in response to production levels and management of production and transportation costs. Management believes that by eliminating changes in non-cash working capital and restricted cash and adjusting for current income taxes in the period, adjusted funds flow from operations is a useful measure of operating performance. Three months ended June 30, Six months ended June 30,2025 2024 2025 2024(thousands of dollars) (thousands of dollars) Cash flows provided by operating activities 68,673 90,402 138,608 145,449 Changes in non–cash working capital 4,122 1,786 11,010 (6,414) Current income taxes (9,683) (14,392) (20,453) (26,625) Current income taxes paid 9,106 10,227 35,412 39,231 Change in restricted cash 2,000 - 2,000 - Adjusted funds flow from operations 74,218 88,023 166,577 164,469 Adjusted Working Capital Adjusted working capital is a capital management measure which management uses to assess the Company's liquidity. Financial derivative receivable/liability have been excluded as these contracts are subject to a high degree of volatility prior to settlement and relate to future production periods. Financial derivative receivable/liability are included in adjusted funds flow from operations when the contracts are ultimately realized. Management has included the effects of the repayable contribution to provide a better indication of Headwater's net financing obligations. As at June 30, 2025 As at December 31, 2024(thousands of dollars) Working capital 64,836 78,735 Repayable contribution (6,937) (10,916) Financial derivative receivable (975) (3,088) Financial derivative liability 1,548 2,847 Adjusted working capital 58,472 67,578 Non-GAAP Ratios Adjusted funds flow netback, operating netback and operating netback, including financial derivatives Adjusted funds flow netback, operating netback and operating netback, including financial derivatives are non-GAAP ratios and are used by management to better analyze the Company's performance against prior periods on a more comparable basis. Adjusted funds flow netback is defined as adjusted funds flow from operations divided by sales volumes in the period. Operating netback is defined as sales less royalties, transportation and blending costs and production expense divided by sales volumes in the period. Sales volumes exclude the impact of purchased condensate and butane. Operating netback, including financial derivatives is defined as operating netback plus realized gains (losses) on financial derivatives. Adjusted funds flow from operations per share Adjusted funds flow from operations per share is a non-GAAP ratio and is used by management to better analyze the Company's performance against prior periods on a more comparable basis. Adjusted funds flow per share is calculated as adjusted funds flow from operations divided by weighted average shares outstanding on a basic or diluted basis. Supplementary Financial Measures Per boe numbers This press release represents various results on a per boe basis including Headwater's net of blending expense, realized gains (losses) on financial derivatives per boe, general and administrative expenses per boe, interest income and other expense per boe, current income tax expense per boe and settlement of decommissioning liability expense per boe. These figures are calculated using sales volumes. 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