CALGARY, AB, May 9, 2024 /CNW/ - Headwater Exploration Inc. (the "Company" or "Headwater") (TSX:HWX) is pleased to announce its financial results for the three months ended March 31, 2024, operations update, update to 2024 guidance and declaration of quarterly dividend.  Selected financial and operational information is outlined below and should be read in conjunction with the unaudited interim condensed financial statements and the related management's discussion and analysis ("MD&A"). These filings will be available at www.sedarplus.ca and the Company's website at www.headwaterexp.com. Financial and Operating Highlights Three months ended March 31,   Percent Change 2024 2023 Financial (thousands of dollars except share data) Total sales, net of blending (1) (4) 127,366 94,570 35 Adjusted funds flow from operations (2) 76,446 59,157 29      Per share - basic (3) 0.32 0.25 28                      - diluted (3) 0.32 0.25 28 Cash flows provided by operating activities  55,047 60,201 (9)      Per share - basic 0.23 0.26 (12)                      - diluted 0.23 0.25 (8) Net income 37,619 29,979 25      Per share - basic 0.16 0.13 23                      - diluted 0.16 0.13 23 Capital expenditures (1) 65,267 69,494 (6) Adjusted working capital (2) 48,841 70,467 (31) Shareholders' equity 625,675 551,160 14 Dividends declared 23,729 23,539 1 Weighted average shares (thousands)       Basic 235,742 234,069 1      Diluted 237,552 236,279 1 Shares outstanding, end of period (thousands)      Basic 237,290 235,386 1      Diluted (5) 241,356 241,368 - Operating (6:1 boe conversion) Average daily production   Heavy crude oil (bbls/d) 17,512 14,777 19   Natural gas (mmcf/d) 11.5 12.8 (10)   Natural gas liquids (bbls/d) 87 91 (4)   Barrels of oil equivalent (9) (boe/d) 19,517 17,004 15 Average daily sales (6) (boe/d) 19,459 16,968 15 Netbacks ($/boe) (7)   Operating      Sales, net of blending (4) 71.93 61.93 16      Royalties (12.34) (10.04) 23      Transportation (5.35) (5.50) (3)      Production expenses (7.04) (6.53) 8 Operating netback (3) 47.20 39.86 18      Realized gains on financial derivatives  3.45 4.74 (27)   Operating netback, including financial derivatives (3) 50.65 44.60 14      General and administrative expense (1.47) (1.35) 9      Interest income and other expense (8) 0.95 1.11 (14)      Current tax expense (6.91) (5.61) 23      Settlement of decommissioning liability (0.05) - 100  Adjusted funds flow netback (3) 43.17 38.75 11 (1) Non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" within this press release.