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In Lloydminster, fourth quarter production was consistent versus the third quarter, with capital activity primarily concentrated in Strathcona's polymer flood at Bodo-Cosine and infill drilling at Winter. Strathcona's thermal assets in Lloydminster continued to benefit from Strathcona's owned and operated Hamlin Rail Terminal, which ships approximately 30 Mbbls per day of undiluted crude oil directly to the US Gulf Coast, earning prices tied to the WCS Houston benchmark. WCS Houston traded at an approximately US$15 per barrel premium to WCS Hardisty in the fourth quarter of 2023, partially insulating Strathcona from wider local heavy oil differentials. Strathcona's realized pricing for its Lloydminster thermal assets is expected to further improve in 2024 due to the commissioning of an expansion to a unit train offloading facility in the US Gulf Coast. The facility was purpose-built for Strathcona to better supply a local US Gulf Coast refiner that has executed a new crude purchase agreement with Strathcona at a premium to WCS Houston.

In the Montney, Strathcona closed the acquisition of Pipestone Energy Corp. ("Pipestone") on October 3, 2023 and brought on production at the 5 well 16-30 pad, which is performing above expectations. Strathcona's development plan for the legacy Pipestone asset reflects a more conservative approach to well configuration and spacing, designed to maximize per well economics. In Kakwa, Strathcona tied in the 5-well 3-24 pad, leading to record production of approximately 40 Mboe per day at the asset. Performance from Kakwa continues to be strong, with Strathcona having drilled five of the top twenty producing wells in Alberta since the start of 2022 per public data, as measured by total condensate / light oil produced.

Strathcona repaid its bank term loan at the end of the fourth quarter of 2023, exiting the year with approximately $2.7 billion in debt. Following strong year-end reserves growth, Strathcona is pleased to announce it has received approval from its lenders for an expanded revolving credit facility of $2.5 billion (from $2.3 billion previously). The new facility is subject to completion of documentation which is anticipated to occur on or about March 28, 2024.

For further details on Strathcona's year end 2023 reserves, please see the news release dated March 11, 2024 and reserves overview highlights, Investors – Strathcona Resources Ltd..

2024 Capital Budget Update

Strathcona's 2024 capital budget continues to progress as planned. In light of weak natural gas prices, Strathcona has elected to defer the tie-in of its 3-well 13-25 pad at Groundbirch, which was spud in early 2024 and previously planned for tie-in mid-year. The Groundbirch wells reflect the only portion of Strathcona's capital program where natural gas prices primarily drive economics. Natural gas prices are expected to meaningfully improve this winter, and Strathcona will act opportunistically to maximize value.

The deferral of the Groundbirch wells is expected to reduce calendar year 2024 production by approximately 15 MMcf per day. Strathcona is therefore reducing its 2024 production guidance to 187.5 to 192.5 Mboe per day (from 190 – 195 Mboe per day previously) and increasing its expected oil weighting to 71% (from 70%) and increasing expected total liquids weighting to 78% (from 77%). Oil and total liquids production guidance is unchanged. Strathcona's capital budget of $1.3 billion is also unchanged.

Production for the first half of 2024 is expected to be roughly flat versus the fourth quarter of 2023, with growth occurring in the back half of the year, coinciding with the expected in-service date of the Trans Mountain Expansion Pipeline, which is expected to meaningfully improve local heavy oil prices.

Conference Call Details

Strathcona will host a conference call on March 27, 2024, starting at 9:00AM MT (11:00AM ET), to review the Company's fourth quarter and year-end 2023 financial and operating results.

Date: Wednesday, March 27, 2024

Time: 11:00AM ET (9:00AM MT)

URL Entry: To join without operator assistance, register here: https://emportal.ink/4a7BzJl up to 15 minutes before the start time. Enter your name and phone number to receive an automated call-back.

Telephone Entry: Alternatively, you can join with operator assistance by dialing 1 (888) 390-0605 (North American Toll Free) and quote conference ID 836882.

Webcast Link: https://app.webinar.net/zBa5QxPQlLY

For those unable to participate in the conference call at the scheduled time, a recording of the conference call will be available for seven days following the call and can be accessed by dialing 1 (888) 390-0541 and entering the conference number 836882.

About Strathcona

Strathcona is one of North America's fastest growing oil and gas producers with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life oil and gas assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX).

For more information about Strathcona, visit www.strathconaresources.com.

Specified Financial Measures

This press release makes reference to certain financial measures and ratios which are not recognized measures under generally accepted accounting principles ("GAAP") and do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). Non-GAAP financial measures and ratios are used internally by management to assess the performance of the Company. They also provide investors with meaningful metrics to assess the Company's performance compared to other companies in the same industry. However, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Investors are cautioned that these measures should not be construed as an alternative to financial measures determined in accordance with GAAP and these measures should not be considered to be more meaningful than GAAP measures in evaluating the Company's performance.

Non-GAAP Measures and Ratios

"Oil and natural gas sales, net of blending and other income" is calculated by deducting purchased product and blending costs from oil and natural gas sales, sales of purchased product and other income. Management uses this metric to isolate the revenue associated with Company production after accounting for the unavoidable cost of blending.

"Operating Earnings" is considered a key financial metric for evaluating the profitability of Strathcona's principal business and is derived from income (loss) and comprehensive income (loss) adjusted for amounts which are considered non-recurring or not directly attributable to the Company's operations.

"Funds from Operations" is used by management to analyze operating performance and provides an indication of the funds generated by Strathcona's principal business to either fund operating activities, re-invest to either maintain or grow the business or make debt repayments. Funds from operations is derived from income (loss) and comprehensive income (loss) adjusted for non-cash items and transaction costs.

"Free Cash Flow" indicates funds available for deleveraging, funding future growth, or, at some point in the future, shareholder returns. Free Cash Flow is derived from income (loss) and comprehensive income (loss) adjusted for non-cash items, transaction costs, capital expenditures and decommissioning costs.

A quantitative reconciliation of Operating Earnings, Funds from Operations, Free Cash Flow and Adjusted Free Cash Flow to the most directly comparable GAAP financial measure, income (loss) and comprehensive income (loss), is set forth below.

"Effective royalty rate" is calculated by dividing royalties by oil and natural gas sales, net of blending. This metric allows management to analyze the movement of royalty expense in relation to realized and benchmark commodity prices.

Supplementary Financial Measures

Readers are referred to "Specified Financial Measures" in Strathcona's fourth quarter and year-end 2023 MD&A for supplementary financial measures, which information is incorporated by reference to this new release.

"Interest and finance costs" is an aggregation of interest and finance costs. Management uses this metric to obtain a fulsome understanding of all interest and accretion costs the Company is subject to.

"Other (income) expenses" is an aggregation of risk management contracts, foreign exchange, transaction related costs, unrealized (gain) loss on Sable remediation fund, share of equity investment income, gain on step acquisitions of equity method investee, loss on termination of lease liability and deferred tax expense (recovery). They are presented in such a manner to yield prominence to key financial metrics such as income (loss) and comprehensive income (loss), Funds from Operations and Free Cash Flow.

"Non-cash items" is an aggregation of depletion, depreciation and amortization, finance costs, other income - ARO government grant and loss on termination of lease liability. They are presented in such a manner to yield prominence to key financial metrics such as income (loss) and comprehensive income (loss), Funds from Operations and Free Cash Flow.

Presentation of Oil and Gas Information

This press release contains various references to the abbreviation "boe" which means barrels of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ("mcf") of natural gas to one barrel ("bbl") of crude oil. Boe may be misleading, particularly if used in isolation. A boe conversion rate of 1 bbl : 6 mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 bbl : 6 mcf, utilizing a conversion ratio of 1 bbl : 6 mcf may be misleading as an indication of value.

References to "liquids" in this press release refer to, collectively, bitumen, heavy oil, condensate and light oil (comprised of condensate and light oil) and other natural gas liquids ("NGL") (comprised of ethane, propane and butane only). References to "oil and condensate" in this press release refer to, collectively, light and medium crude oil, heavy crude oil, bitumen and natural gas liquids. References to "natural gas" in this press release refer to conventional natural gas.

References to initial production rates and other short-term production rates 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. While encouraging, readers are cautioned not to place reliance on such rates in calculating aggregate production for us or the assets for which such rates are provided. Accordingly, we caution that the initial production rates should be considered to be preliminary.

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. The forward-looking information in this press release is based on Strathcona's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking information. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon.

The use of any of the words "expect", "anticipate", "estimate", "objective", "ongoing", "may", "will", "project", "believe", "depends", "could" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: the Company's business strategy and future plans, including plans to grow production; expected operating strategy; the Company's production and capital spending guidance for 2024; expectations regarding Strathcona's realized pricing for its Lloydminster Heavy Oil thermal assets in 2024; expected improvement of natural gas prices and the actions of Strathcona as a result thereof; the Company's 2024 capital budget, including the anticipated composition, timing, benefits thereof, including increased production capacity and capital efficiencies, and cash flow to be generated therefrom; Strathcona's debt repayment plans; and the expected in-service date of the Trans Mountain Expansion Pipeline and the impact thereof on local heavy oil prices.

All forward-looking information reflects Strathcona's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of the Company's current expectations with respect to such things as: Strathcona's ability to generate sufficient cash flow to fund debt repayment; the success of Strathcona's operations and growth and expansion projects; expectations regarding production growth, future well production rates and reserve volumes; expectations regarding Strathcona's capital program, including the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; the availability of third party services; prevailing and future royalty regimes and tax laws; future well production rates and reserve volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Strathcona's assets; decommissioning obligations; Strathcona's ability to comply with its financial covenants; and the governmental, regulatory and legal environment. In addition, certain forward-looking information with respect to the Company's 2024 capital budget assumes commodity prices and exchange rates of: US$80 / bbl WTI, assuming a US$15 / bbl WCS-WTI differential, 0.73 USD-CAD, and C$3 / Mcf AECO. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct.

The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking information, including, without limitation: changes in commodity prices; changes in the demand for or supply of Strathcona's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing Russia/Ukraine conflict and the conflict in the Middle East, and other heightened geopolitical risks and the ability of the Company to carry on operations as contemplated in light of the foregoing; determinations by the Organization of the Petroleum Exporting Countries and other countries as to production levels; unanticipated operating results or production declines; changes in tax or environmental laws, climate change, royalty rates or other regulatory matters; changes in Strathcona's development plans or by third party operators of Strathcona's properties; competition from other producers; inability to retain drilling rigs and other services; failure to realize the anticipated benefits of the Company's acquisitions; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Strathcona's oil and gas reserve and contingent resource volumes; limited, unfavourable or a lack of access to capital markets or other sources of capital; increased costs; a lack of adequate insurance coverage; the impact of competitors; and the other factors discussed under the "Risk Factors" section in Strathcona's Management's Discussion & Analysis and Annual Information Form, each for the year ended December 31, 2023, and from time to time in Strathcona's public disclosure documents, which are available at www.sedarplus.ca.

Management approved the capital budget and production guidance contained herein as of the date of this press release. The purpose of the capital budget and production guidance is to assist readers in understanding Strathcona's expected and targeted financial position and performance, and this information may not be appropriate for other purposes.

The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Strathcona does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

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SOURCE Strathcona Resources Ltd.

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