Kelt Reports Financial and Operating Results for the Quarter and Year Ended December 31, 2024
Kelt Exploration has released its Q4 and full-year 2024 financial results. Q4 production averaged 36,450 BOE per day, up 13% from Q4 2023, while full-year production increased 9% to 33,115 BOE per day. Q4 production mix was 39% oil/NGLs and 61% gas.
Q4 2024 petroleum and natural gas sales decreased 3% to $125.1 million, with full-year sales down 5% to $468.4 million. Net realized prices declined across all products: oil (-3% to $92.53/barrel), NGLs (-23% to $38.50/barrel), and gas (-27% to $2.02/Mcf).
The company reported Q4 adjusted funds from operations of $69.4 million ($0.35 per share), compared to $66.6 million in Q4 2023. Full-year net income was $45.4 million ($0.23 per share), down from $86.0 million in 2023. Net debt increased to $124.9 million from $13.0 million year-over-year.
Proved plus Probable reserves increased to 435.2 million BOE, with oil and NGL reserves up 16% year-over-year. The company's 2025 capital expenditure guidance remains at $328.0 million, with production expected between 44,000-48,000 BOE per day.
Kelt Exploration ha pubblicato i risultati finanziari del quarto trimestre e dell'intero anno 2024. La produzione media nel Q4 è stata di 36.450 BOE al giorno, con un aumento del 13% rispetto al Q4 2023, mentre la produzione annuale è aumentata del 9% a 33.115 BOE al giorno. La composizione della produzione nel Q4 era del 39% di petrolio/NGL e del 61% di gas.
Le vendite di petrolio e gas naturale per il Q4 2024 sono diminuite del 3% a 125,1 milioni di dollari, con vendite annuali in calo del 5% a 468,4 milioni di dollari. I prezzi netti realizzati sono diminuiti per tutti i prodotti: petrolio (-3% a 92,53 dollari/barile), NGL (-23% a 38,50 dollari/barile) e gas (-27% a 2,02 dollari/Mcf).
L'azienda ha riportato fondi rettificati dalle operazioni per il Q4 di 69,4 milioni di dollari (0,35 dollari per azione), rispetto a 66,6 milioni di dollari nel Q4 2023. Il reddito netto annuale è stato di 45,4 milioni di dollari (0,23 dollari per azione), in calo rispetto a 86,0 milioni di dollari nel 2023. Il debito netto è aumentato a 124,9 milioni di dollari rispetto a 13,0 milioni di dollari anno su anno.
Le riserve provate più probabili sono aumentate a 435,2 milioni di BOE, con riserve di petrolio e NGL in aumento del 16% rispetto all'anno precedente. Le indicazioni per le spese in conto capitale dell'azienda per il 2025 rimangono a 328,0 milioni di dollari, con una produzione prevista tra 44.000 e 48.000 BOE al giorno.
Kelt Exploration ha publicado sus resultados financieros del cuarto trimestre y del año completo 2024. La producción promedio en el Q4 fue de 36,450 BOE por día, un aumento del 13% en comparación con el Q4 de 2023, mientras que la producción anual aumentó un 9% a 33,115 BOE por día. La mezcla de producción del Q4 fue del 39% de petróleo/NGL y del 61% de gas.
Las ventas de petróleo y gas natural del Q4 2024 disminuyeron un 3% a 125.1 millones de dólares, con ventas anuales en descenso del 5% a 468.4 millones de dólares. Los precios netos realizados cayeron en todos los productos: petróleo (-3% a 92.53 dólares/barrel), NGL (-23% a 38.50 dólares/barrel) y gas (-27% a 2.02 dólares/Mcf).
La compañía reportó fondos ajustados de operaciones del Q4 de 69.4 millones de dólares (0.35 dólares por acción), en comparación con 66.6 millones de dólares en el Q4 de 2023. El ingreso neto anual fue de 45.4 millones de dólares (0.23 dólares por acción), en comparación con 86.0 millones de dólares en 2023. La deuda neta aumentó a 124.9 millones de dólares desde 13.0 millones de dólares año tras año.
Las reservas probadas más probables aumentaron a 435.2 millones de BOE, con reservas de petróleo y NGL en aumento del 16% interanual. La guía de gastos de capital de la compañía para 2025 se mantiene en 328.0 millones de dólares, con una producción esperada entre 44,000 y 48,000 BOE por día.
Kelt Exploration은 2024년 4분기 및 연간 재무 결과를 발표했습니다. 4분기 생산량은 하루 평균 36,450 BOE로, 2023년 4분기 대비 13% 증가했으며, 연간 생산량은 9% 증가하여 하루 33,115 BOE에 달했습니다. 4분기 생산 믹스는 39%의 원유/NGL과 61%의 가스로 구성되었습니다.
2024년 4분기 석유 및 천연가스 판매는 3% 감소한 1억 2,510만 달러였으며, 연간 판매는 5% 감소하여 4억 6,840만 달러에 달했습니다. 모든 제품의 순 실현 가격이 하락했습니다: 원유(-3%로 배럴당 92.53달러), NGL(-23%로 배럴당 38.50달러), 가스(-27%로 Mcf당 2.02달러).
회사는 4분기 조정 운영 자금이 6,940만 달러(주당 0.35달러)라고 보고했으며, 이는 2023년 4분기의 6,660만 달러와 비교됩니다. 연간 순이익은 4,540만 달러(주당 0.23달러)로, 2023년의 8,600만 달러에서 감소했습니다. 순부채는 전년 대비 1,249만 달러에서 1억 2,490만 달러로 증가했습니다.
확정 및 예상 매장량은 4억 3,520만 BOE로 증가했으며, 원유 및 NGL 매장량은 전년 대비 16% 증가했습니다. 회사의 2025년 자본 지출 가이드는 3억 2,800만 달러로 유지되며, 하루 44,000에서 48,000 BOE의 생산이 예상됩니다.
Kelt Exploration a publié ses résultats financiers du quatrième trimestre et de l'année complète 2024. La production moyenne au quatrième trimestre était de 36 450 BOE par jour, en hausse de 13 % par rapport au quatrième trimestre 2023, tandis que la production annuelle a augmenté de 9 % pour atteindre 33 115 BOE par jour. Le mélange de production du quatrième trimestre était composé de 39 % de pétrole/NGL et de 61 % de gaz.
Les ventes de pétrole et de gaz naturel au quatrième trimestre 2024 ont diminué de 3 % pour atteindre 125,1 millions de dollars, avec des ventes annuelles en baisse de 5 % pour atteindre 468,4 millions de dollars. Les prix nets réalisés ont diminué pour tous les produits : pétrole (-3 % à 92,53 dollars/baril), NGL (-23 % à 38,50 dollars/baril) et gaz (-27 % à 2,02 dollars/Mcf).
L'entreprise a rapporté des fonds ajustés provenant des opérations pour le quatrième trimestre de 69,4 millions de dollars (0,35 dollar par action), contre 66,6 millions de dollars au quatrième trimestre 2023. Le bénéfice net annuel s'élevait à 45,4 millions de dollars (0,23 dollar par action), en baisse par rapport à 86,0 millions de dollars en 2023. La dette nette a augmenté à 124,9 millions de dollars, contre 13,0 millions de dollars d'une année sur l'autre.
Les réserves prouvées et probables ont augmenté à 435,2 millions de BOE, avec des réserves de pétrole et de NGL en hausse de 16 % par rapport à l'année précédente. Les prévisions de dépenses en capital de l'entreprise pour 2025 restent à 328,0 millions de dollars, avec une production attendue entre 44 000 et 48 000 BOE par jour.
Kelt Exploration hat seine finanziellen Ergebnisse für das 4. Quartal und das Gesamtjahr 2024 veröffentlicht. Die durchschnittliche Produktion im Q4 betrug 36.450 BOE pro Tag, was einem Anstieg von 13% im Vergleich zum Q4 2023 entspricht, während die Jahresproduktion um 9% auf 33.115 BOE pro Tag gestiegen ist. Die Produktionsmischung im Q4 bestand aus 39% Öl/NGL und 61% Gas.
Die Verkäufe von Erdöl und Erdgas im Q4 2024 gingen um 3% auf 125,1 Millionen Dollar zurück, während die Jahresverkäufe um 5% auf 468,4 Millionen Dollar sanken. Die netto realisierten Preise fielen bei allen Produkten: Öl (-3% auf 92,53 Dollar pro Barrel), NGL (-23% auf 38,50 Dollar pro Barrel) und Gas (-27% auf 2,02 Dollar pro Mcf).
Das Unternehmen berichtete von bereinigten Mitteln aus dem operativen Geschäft im Q4 in Höhe von 69,4 Millionen Dollar (0,35 Dollar pro Aktie), verglichen mit 66,6 Millionen Dollar im Q4 2023. Der Nettogewinn für das Gesamtjahr betrug 45,4 Millionen Dollar (0,23 Dollar pro Aktie), ein Rückgang gegenüber 86,0 Millionen Dollar im Jahr 2023. Die Nettoverschuldung stieg von 13,0 Millionen Dollar im Vorjahr auf 124,9 Millionen Dollar.
Die nachgewiesenen und wahrscheinlichen Reserven stiegen auf 435,2 Millionen BOE, wobei die Öl- und NGL-Reserven im Jahresvergleich um 16% zunahmen. Die Investitionsausgabenprognose des Unternehmens für 2025 bleibt bei 328,0 Millionen Dollar, wobei eine Produktion zwischen 44.000 und 48.000 BOE pro Tag erwartet wird.
- Production growth: Q4 production up 13% YoY to 36,450 BOE/day
- Proved plus Probable reserves increased with oil and NGL reserves up 16% YoY
- Strong financial position with net debt to adjusted funds ratio of 0.6x
- Q4 adjusted funds from operations increased to $69.4M from $66.6M YoY
- Net debt increased significantly to $124.9M from $13.0M YoY
- Full-year revenue declined 5% to $468.4M
- Net income decreased to $45.4M from $86.0M YoY
- Realized commodity prices declined across all products (oil -3%, NGLs -23%, gas -27%)
Calgary, Alberta--(Newsfile Corp. - March 13, 2025) - Kelt Exploration Ltd. (TSX: KEL) ("Kelt" or the "Company") has released its financial and operating results for the fourth quarter and year ended December 31, 2024. The Company's financial results are summarized as follows:
| FINANCIAL HIGHLIGHTS | Three months ended December 31 | Year ended December 31 | ||||||||||||||||
| (CA$ thousands, except as otherwise indicated) | 2024 | 2023 | % | 2024 | 2023 | % | ||||||||||||
| Petroleum and natural gas sales | 125,064 | 129,000 | -3 | 468,432 | 495,580 | -5 | ||||||||||||
| Cash provided by operating activities | 48,067 | 62,477 | -23 | 209,145 | 283,224 | -26 | ||||||||||||
| Adjusted funds from operations (1) | 69,406 | 66,618 | 4 | 221,978 | 276,200 | -20 | ||||||||||||
| Basic ($/ common share) (1) | 0.35 | 0.34 | 3 | 1.13 | 1.43 | -21 | ||||||||||||
| Diluted ($/ common share) (1) | 0.35 | 0.33 | 6 | 1.11 | 1.40 | -21 | ||||||||||||
| Net income and comprehensive income | 13,800 | 23,729 | -42 | 45,423 | 85,974 | -47 | ||||||||||||
| Basic ($/ common share) | 0.07 | 0.12 | -42 | 0.23 | 0.45 | -49 | ||||||||||||
| Diluted ($/ common share) | 0.07 | 0.12 | -42 | 0.23 | 0.44 | -48 | ||||||||||||
| Capital expenditures, net of A&D (1) | 97,046 | 62,695 | 55 | 333,147 | 282,646 | 18 | ||||||||||||
| Total assets | 1,450,679 | 1,260,292 | 15 | 1,450,679 | 1,260,292 | 15 | ||||||||||||
| Bank debt | 108,993 | - | - | 108,993 | - | - | ||||||||||||
| Net debt (1) | 124,883 | 12,997 | 861 | 124,883 | 12,997 | 861 | ||||||||||||
| Shareholders' equity | 1,063,004 | 1,003,663 | 6 | 1,063,004 | 1,003,663 | 6 | ||||||||||||
| Return on average capital employed (%) (1)(2) | 6 | 12 | -50 | |||||||||||||||
| Weighted average shares outstanding (000s) | ||||||||||||||||||
| Basic | 196,557 | 194,359 | 1 | 195,719 | 193,116 | 1 | ||||||||||||
| Diluted | 200,801 | 199,223 | 1 | 199,631 | 197,063 | 1 | ||||||||||||
(1) Refer to advisories regarding Non-GAAP and Other Financial Measures.
(2) The three-year average ROACE as of December 31, 2024 was
Financial Statements
Kelt's audited annual consolidated financial statements and related notes for the year ended December 31, 2024 will be available to the public on SEDAR+ at www.sedarplus.ca and will also be posted on the Company's website at www.keltexploration.com on March 13, 2025.
Kelt's operating results for the fourth quarter and year ended December 31, 2024 are summarized as follows:
| OPERATIONAL HIGHLIGHTS | Three months ended December 31 | Year ended December 31 | ||||||||||||||||
| (CA$ thousands, except as otherwise indicated) | 2024 | 2023 | % | 2024 | 2023 | % | ||||||||||||
| Average daily production | ||||||||||||||||||
| Oil (bbls/d) | 9,297 | 8,832 | 5 | 8,623 | 7,979 | 8 | ||||||||||||
| NGLs (bbls/d) | 5,052 | 3,422 | 48 | 3,675 | 3,759 | -2 | ||||||||||||
| Gas (mcf/d) | 132,608 | 120,541 | 10 | 124,902 | 112,634 | 11 | ||||||||||||
| Combined (BOE/d) | 36,450 | 32,344 | 13 | 33,115 | 30,510 | 9 | ||||||||||||
| Production per million common shares (BOE/d) (1) | 185 | 166 | 11 | 169 | 158 | 7 | ||||||||||||
| Net realized prices, before derivative financial instruments(1) | ||||||||||||||||||
| Oil ($/bbl) | 92.53 | 95.68 | -3 | 94.46 | 97.90 | -4 | ||||||||||||
| NGLs ($/bbl) | 38.50 | 49.79 | -23 | 47.56 | 49.27 | -3 | ||||||||||||
| Gas ($/mcf) | 2.02 | 2.75 | -27 | 1.97 | 3.08 | -36 | ||||||||||||
| Operating netbacks ($/BOE) (1) | ||||||||||||||||||
| Petroleum and natural gas sales | 37.30 | 43.35 | -14 | 38.66 | 44.51 | -13 | ||||||||||||
| Cost of purchases | (0.99 | ) | (1.66 | ) | -40 | (1.35 | ) | (1.50 | ) | -10 | ||||||||
| Combined net realized price, before derivative financial instruments (1) | 36.31 | 41.69 | -13 | 37.31 | 43.01 | -13 | ||||||||||||
| Realized gain on derivative financial instruments | 0.70 | 0.09 | 678 | 0.35 | 1.35 | -74 | ||||||||||||
| Combined net realized price, after derivative financial instruments(1) | 37.01 | 41.78 | -11 | 37.66 | 44.36 | -15 | ||||||||||||
| Royalties | (2.85 | ) | (6.03 | ) | -53 | (4.52 | ) | (5.31 | ) | -15 | ||||||||
| Production expense | (8.72 | ) | (8.62 | ) | 1 | (10.01 | ) | (9.83 | ) | 2 | ||||||||
| Transportation expense | (3.64 | ) | (3.64 | ) | - | (3.52 | ) | (3.48 | ) | 1 | ||||||||
| Operating netback (1) | 21.80 | 23.49 | -7 | 19.61 | 25.74 | -24 | ||||||||||||
| Land holdings | ||||||||||||||||||
| Gross acres | 790,918 | 796,519 | -1 | 790,918 | 796,519 | -1 | ||||||||||||
| Net acres | 588,527 | 581,553 | 1 | 588,527 | 581,553 | 1 | ||||||||||||
(1) Refer to advisories regarding Non-GAAP and Other Financial Measures.
Message to Shareholders
Average production for the three months ended December 31, 2024 was 36,450 BOE per day, up
Petroleum and natural gas sales during the fourth quarter of 2024 decreased
For the three months ended December 31, 2024, adjusted funds from operations was
Kelt's three-year average ROACE is
At December 31, 2024, Kelt had net debt of
Capital expenditures, net of A&D incurred during the three months ended December 31, 2024 were
Operations Update
Kelt's planned 2025 capital expenditure program remains unchanged at
At Wembley/Pipestone, in January 2025, Kelt completed a 3-well Montney pad (14-2 surface). These three wells were brought forward and drilled in the fourth quarter of 2024.
At Wembley/Pipestone, during January and February, the Company drilled a 4-well Montney pad (9-17 surface). These four wells are expected to be completed in April 2025.
Also, at Wembley/Pipestone, Kelt drilled and completed two Charlie Lake wells (
62% working interest).Kelt continues to have significant production volumes shut-in at Wembley/Pipestone as it awaits construction completion of a new third-party gas plant where the Company has 50 MMcf per day of raw gas firm processing service. Start-up of the new gas plant, after facing unexpected additional repairs to certain equipment, is still expected to commence in the second quarter of 2025.
At Progress, the Company is currently drilling four Charlie Lake wells (
50% working interest). These four wells are expected to be completed during May 2025.At Pouce Coupe West, Kelt is currently drilling two Montney wells and it expects to complete these wells by the end of the first quarter.
In its Pouce Coupe/Progress/Spirit River division, a new third-party gas plant located at Gordondale West where Kelt will initially have 25 MMcf per day of raw gas firm processing service, is expected to finish construction and start-up in May 2025. This will provide Kelt with the opportunity to bring its newly drilled wells in the area on-stream.
At Oak, the Company is currently conducting a 3-D seismic shoot covering approximately 110 sections of land.
With the start-up of the two new third-party gas processing plants in the second quarter, Kelt expects to ramp up production significantly leading into the third quarter of 2025.
Reserves
Kelt Exploration Ltd. ("Kelt" or the "Company") reports on its oil & gas reserves and production for the year ended December 31, 2024. Kelt retained McDaniel & Associates Consultants Ltd. ("McDaniel"), an independent qualified reserve evaluator, to prepare a report on its oil and gas reserves. The comparative report for the previous year ended December 31, 2023, was prepared by Sproule Associates Limited ("Sproule").
The Company has a Reserves Committee which oversees the selection, qualifications and reporting procedures of the independent qualified reserves evaluator. Reserves effective December 31, 2024 and effective December 31, 2023 were determined using the guidelines and definitions set out under National Instrument 51-101 ("NI 51-101"). Additional reserves disclosure as required under NI 51-101 will be included in Kelt's Annual Information Form which is expected to be filed on SEDAR on March 13, 2025.
Kelt continues to remain active operationally in its three main divisions, resulting in increases in all categories of reserves on a barrel of oil equivalent basis compared to the previous year. Kelt was successful in increasing its oil and NGL reserves by
| Summary of Reserves | |||||
| December 31, 2024 | December 31, 2023 | Change | |||
| % Weight | Amount | % Weight | Amount | ||
| Proved Developed Producing Reserves | |||||
| Oil & NGLs (Mbbls) | 29,741 | 24,700 | |||
| Gas (MMcf) | 294,727 | 278,283 | |||
| Combined (MBOE) | 78,862 | 71,081 | |||
| Proved Reserves | |||||
| Oil & NGLs (Mbbls) | 105,347 | 97,155 | |||
| Gas (MMcf) | 965,789 | 956,575 | |||
| Combined (MBOE) | 266,312 | 256,584 | |||
| Proved plus Probable Reserves | |||||
| Oil & NGLs (Mbbls) | 173,779 | 149,163 | |||
| Gas (MMcf) | 1,568,229 | 1,583,515 | ( | ||
| Combined (MBOE) | 435,151 | 413,082 | |||
Proved Developed Producing ("PDP") reserves at December 31, 2024 were 78.9 million BOE, an increase of
As previously disclosed, Kelt retained McDaniel as its independent qualified reserves evaluator for the year ended December 31, 2024. The change in evaluators provides Kelt with an opportunity to be better aligned and comparable to other Montney producers in Western Canada, the majority of whom retain McDaniel to evaluate their reserves. In performing well decline analysis, McDaniel used a higher final decline value than was assumed in Kelt's previous evaluations (by constraining the "b" value to not exceed one). This change results in little impact on the early life production of a well but results in a reduction to late life reserves. On average, previously evaluated oil and NGL reserves per well were relatively unchanged, however estimated gas recoveries per well were lower. It is Kelt's belief that both buyers and sellers of Montney assets across numerous transactions have accessed McDaniel's extensive experience in evaluating Montney assets and Kelt looks forward to working closely with McDaniel to refine its development plans across Kelt's three main divisions.
Proved plus Probable Oil and NGL reserves increased by
| Oil & NGLs Mix | |||||
| December 31, 2024 | December 31, 2023 | Change | |||
| % Weight | Mbbls | % Weight | Mbbls | ||
| Proved plus Probable Reserves | |||||
| Light Oil, Condensate and Pentane Plus (C5+) | 117,548 | 107,610 | |||
| Butane (C4) | 18,990 | 14,538 | |||
| Propane (C3) | 24,391 | 17,647 | |||
| Ethane (C2) | 12,850 | 9,368 | |||
| Total Oil & NGLs | 173,779 | 149,163 | |||
| Note: Refer to advisories regarding Measurements and Abbreviations. | |||||
Future commodity prices forecasted for both oil and gas used in the December 31, 2024 evaluation were lower than the forecasts used in the previous year's evaluation (see "Commodity Prices" table included below).
The WTI crude oil price during 2024 averaged USD
The NYMEX Henry Hub natural gas price during 2024 averaged USD
The following table outlines forecasted future prices used in the evaluation of the Company's reserves:
| Commodity Prices | ||||||||||
| December 31, 2024 Evaluation | December 31, 2023 Evaluation | |||||||||
| WTI Cushing Crude Oil (USD/bbl) | NYMEX Henry Hub Natural Gas (USD/MMBtu) | CAD/USD Exchange (CAD) | WTI Cushing Crude Oil (USD/bbl) | NYMEX Henry Hub Natural Gas (USD/MMBtu) | CAD/ USD Exchange (CAD) | |||||
| Calendar Year | Price | Change | Price | Change | Rate | Change | Price | Price | Rate | |
| 2020 (historical) | 39.24 | 2.08 | 1.340 | 39.24 | 2.08 | 1.340 | ||||
| 2021 (historical) | 68.03 | 3.74 | 1.253 | 68.03 | 3.74 | 1.253 | ||||
| 2022 (historical) | 94.80 | 6.56 | 1.302 | 94.80 | 6.56 | 1.302 | ||||
| 2023 (historical) | 77.63 | 2.53 | 1.350 | 77.63 | 2.53 | 1.350 | ||||
| 2024 (historical/future) | 76.56 | 2.25 | ( | 1.370 | 76.00 | 2.75 | 1.333 | |||
| 2025 (future) | 71.58 | ( | 3.31 | ( | 1.404 | 76.00 | 3.75 | 1.333 | ||
| 2026 (future) | 74.48 | ( | 3.73 | ( | 1.374 | 76.00 | 4.00 | 1.333 | ||
| 2027 (future) | 75.81 | ( | 3.85 | ( | 1.346 | 77.52 | 4.08 | 1.333 | ||
| 2028 (future) | 77.66 | ( | 3.93 | ( | 1.346 | 79.07 | 4.16 | 1.333 | ||
| 2029 (future) | 79.22 | ( | 4.01 | ( | 1.346 | 80.65 | 4.24 | 1.333 | ||
| Note: Percent change in the above table shows the change in price used in the December 31, 2024 evaluation compared to the price used in the December 31, 2023 evaluation for the respective calendar years from 2024 to 2029. | ||||||||||
The following table outlines a summary of the net present value of the Company's reserves by category as at December 31, 2024 and at December 31, 2023:
| Value of Reserves | ||||||
| December 31, 2024 | December 31, 2023 | Change in NPV | ||||
| NPV | ($M) | ($/BOE) | ($M) | ($/BOE) | ||
| Proved Developed Producing | 882,520 | 11.19 | 948,144 | 13.34 | ( | |
| Proved | 2,154,375 | 8.09 | 2,827,673 | 11.02 | ( | |
| Proved plus Probable | 3,471,756 | 7.98 | 4,515,374 | 10.93 | ( | |
At December 31, 2024, Kelt had 196.8 million common shares issued and outstanding. The net present value of reserves, discounted at
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During the year, Kelt replaced 2024 production in each of its reserve categories. The Company replaced total 2024 production 1.6 times on a PDP basis, 1.8 times on a Proved basis and 2.8 times on a P+P basis.
The following table shows the 2024 production replacement by reserve category:
| Reserves Replacement | |||
| (MBOE) | Proved Developed Producing | Proved | Proved plus Probable |
| Reserve Additions, net | 19,882 | 21,829 | 34,170 |
| 2024 Production | 12,101 | 12,101 | 12,101 |
| Reserves Replacement | |||
Future Development Capital Expenditures
Future development capital ("FDC") expenditures of
The following table outlines FDC expenditures and future wells to be drilled in the P+P category, by province, in the Company's main horizons, included in the December 31, 2024 reserve evaluation with comparatives from the December 31, 2023 report:
| Future Development Capital Expenditures | ||||||
| P+P Reserves | December 31, 2024 | December 31, 2023 | ||||
| FDC ($MM) | Net Wells | FDC/well ($MM) | FDC ($MM) | Net Wells | FDC/well ($MM) | |
| Alberta Montney wells | 1,888 | 265 | 7.1 | 1,676 | 215 | 7.8 |
| British Columbia Montney wells | 585 | 81 | 7.2 | 397 | 50 | 7.9 |
| Alberta Charlie Lake wells | 267 | 50 | 5.3 | 251 | 45 | 5.5 |
| Other expenditures, includes completing DUCs | 97 | 8 | 143 | 28 | ||
| Total FDC Expenditures | 2,837 | 404 | 2,467 | 338 | ||
Finding, Development, Acquisition & Disposition Costs
Capital expenditures, including property acquisitions and after dispositions, in 2024 were
During 2024, the Company's total capital costs resulted in net P+P reserve additions of 34.2 million BOE; net Proved reserve additions of 21.8 million BOE; and net PDP reserve additions of 19.9 million BOE.
The recycle ratio is a measure for evaluating the effectiveness of a company's re-investment program. The ratio measures the efficiency of capital investment (or divestment). It accomplishes this by comparing the operating netback per BOE to the same period's reserve FDA&D cost per BOE. With significant costs related to construction of facilities and infrastructure that may be incurred in any given year, Kelt believes finding and development costs and recycle ratios using a three year rolling average is a more representative measure when evaluating historical results.
For the three year period ended on December 31, 2024, the Company has achieved favourable recycle ratios for all three of its major reserve categories. The P+P recycle ratio was 2.4 times; the Proved recycle ratio was 2.1 times; and the PDP recycle ratio was 1.9 times.
The following tables provide detailed calculations relating to FDA&D costs and recycle ratios for 2024:
| FDA&D Costs and Recycle Ratios - Proved Developed Producing Reserves | ||
| Three Years ended December 31, 2024 | Year ended December 31, 2024 | |
| Capital expenditures, net of dispositions ($M) | 933,333 | 333,147 |
| Change in FDC costs required to develop reserves ($M) | (1,427) | ─ |
| Total capital costs ($M) | 931,906 | 333,147 |
| Reserve additions, net of dispositions (MBOE) | 68,162 | 19,882 |
| FDA&D cost, including FDC ($/BOE) | 13.67 | 16.76 |
| Operating netback ($/BOE) | 25.97 | 19.61 |
| PDP recycle ratio | 1.9 x | 1.2 x |
| FDA&D Costs and Recycle Ratios - Proved Reserves | ||
| Three Years ended December 31, 2024 | Year ended December 31, 2024 | |
| Capital expenditures, net of dispositions ($M) | 933,333 | 333,147 |
| Change in FDC costs required to develop reserves ($M) | 1,085,531 | 71,498 |
| Total capital costs ($M) | 2,018,864 | 404,645 |
| Reserve additions, net of dispositions (MBOE) | 165,374 | 21,829 |
| FDA&D cost, including FDC ($/BOE) | 12.21 | 18.54 |
| Operating netback ($/BOE) | 25.97 | 19.61 |
| Proved recycle ratio | 2.1 x | 1.1 x |
| FDA&D Costs and Recycle Ratios - Proved plus Probable Reserves | ||
| Three Years ended December 31, 2024 | Year ended December 31, 2024 | |
| Capital expenditures, net of dispositions ($M) | 933,333 | 333,147 |
| Change in FDC costs required to develop reserves ($M) | 1,416,501 | 370,232 |
| Total capital costs ($M) | 2,349,834 | 703,379 |
| Reserve additions, net of dispositions (MBOE) | 214,156 | 34,170 |
| FDA&D cost, including FDC ($/BOE) | 10.97 | 20.58 |
| Operating netback ($/BOE) | 25.97 | 19.61 |
| P+P recycle ratio | 2.4 x | 1.0 x |
Reserves Reconciliation
Kelt's 2024 capital investment program, resulted in PDP reserve additions of 19.9 million BOE, that replaced 2024 production by a factor of 1.6 times.
A reconciliation of Kelt's PDP reserves is provided in the table below:
| Proved Developed Producing Reserves Reconciliation | |||
| Oil & NGLs (Mbbls) | Gas (MMcf) | Combined (MBOE) | |
| Balance, December 31, 2023 | 24,700 | 278,283 | 71,081 |
| Extensions and improved recovery | 2,320 | 16,650 | 5,095 |
| Technical revisions | 7,227 | 48,567 | 15,321 |
| Economic factors | (170) | (4,604) | (937) |
| Acquisitions | 165 | 1,428 | 403 |
| Additions, net | 9,542 | 62,041 | 19,882 |
| Less: 2024 Production [1] | (4,501) | (45,597) | (12,101) |
| Balance, December 31, 2024 | 29,741 | 294,727 | 78,862 |
| Note: [1] Sulphur production has been excluded from production in the above table. | |||
Net Asset Value
Kelt's calculated net asset value per share at December 31, 2024 was
Details of the net asset value calculation are shown in the table below:
| Net Asset Value per Share | ||||
| December 31, 2024 | December 31, 2023 | Change | ||
| $ M | $/share | $/share | ||
| Proved reserves, NPV10% BT [1] | 2,154,375 | 10.34 | 13.75 | ( |
| Probable reserves, NPV10% BT [1] | 1,317,381 | 6.32 | 8.21 | ( |
| Undeveloped land [2] | 121,273 | 0.58 | 0.68 | ( |
| Net debt [3] | (124,883) | (0.60) | (0.06) | |
| Proceeds from exercise of stock options [4] | 42,605 | 0.20 | 0.16 | |
| Net asset value | 3,510,751 | 16.85 | 22.75 | ( |
| Diluted common shares outstanding (thousands) [4] | 208,358 | |||
| Notes: [1] As estimated by McDaniel. [2] The undeveloped land value is based on internal estimates of Kelt's undeveloped lands which do not have reserves assigned. [3] Based on the Company's net debt at December 31, 2024. Refer to advisories regarding "Non-GAAP and Other Financial Measures". [4] The calculation of proceeds from exercise of stock options and the diluted number of common shares outstanding only include stock options that are "in-the-money" based on the closing price of KEL of | ||||
Management looks forward to updating shareholders with 2025 first quarter results on or about May 8, 2025.
For further information, please contact:
Kelt Exploration Ltd., Suite 300, 311 - 6th Avenue SW, Calgary, Alberta, Canada T2P 3H2
David J. Wilson, President and Chief Executive Officer (403) 201-5340, or
Sadiq H. Lalani, Vice President and Chief Financial Officer (403) 215-5310.
Or visit our website at www.keltexploration.com.
Changes in forecasted commodity prices and variances in production estimates can have a significant impact on estimated funds from operations and profit. Please refer to the advisories regarding forward-looking statements and to the cautionary statement below.
Advisory Regarding Forward-Looking Statements
The information set out herein is "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Kelt's reasonable expectations as to the anticipated results of its proposed business activities for the calendar year 2025. Readers are cautioned that this financial outlook may not be appropriate for other purposes.
Certain information with respect to Kelt contained herein, including management's assessment of future plans and operations, contains forward-looking statements. These forward-looking statements are based on assumptions and are subject to numerous risks and uncertainties, many of which are beyond Kelt's control, including the impact of general economic conditions, the scope and duration of export tariffs, export restrictions, or import tariffs on commodities that Kelt sells, or products that Kelt uses in its supply chains, industry conditions, volatility of commodity prices, currency exchange rate fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers, stock market volatility and ability to access sufficient capital.
Any forward-looking information or financial outlook set out herein does not include any potential impact of tariffs or trade-related regulations that have been announced by the U.S. and Canada, including the tariffs announced by the U.S. on Canada in 2025, the retaliatory tariffs announced by Canada, and the risk that there is an increase in the rate or scope of potential tariffs or new tariffs or levies that could restrict the import or export of products.
As a result, Kelt's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur.
In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements contained herein are made as of the date hereof and the Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.
There are numerous uncertainties inherent in estimating quantities of oil, natural gas and NGL reserves, and the future net revenue attributed to such reserves, including many factors beyond the control of Kelt. The reserves and associated future net revenue information set forth in this press release are estimates only. In general, estimates of economically recoverable oil, natural gas and NGLs reserves and the future net revenue therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserves recovery, the timing and amount of capital expenditures, marketability of oil, natural gas and NGLs, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially from actual results. For these reasons, estimates of the economically recoverable oil, natural gas and NGLs reserves attributable to any particular group of properties, the classification of such reserves based on risk of recovery and estimates of future net revenue associated with reserves prepared by different engineers, or by the same engineer at different times, may vary.
Kelt's actual production, revenue, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Corporation's reserves estimated by the Corporation's independent qualified reserves evaluators represent the fair market value of those reserves. There is no assurance that the forecast prices and costs assumptions will be attained, and variances could be material. Actual oil, natural gas and NGLs reserves may be greater than or less than the estimates provided herein, and variances could be material.
With respect to the disclosure of reserves contained herein relating to portions of Kelt's properties, the estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. Unless otherwise stated all references to "reserves" are to Kelt's gross company reserves before deduction of royalties and without including and royalty interests of Kelt. It should not be assumed that the undiscounted or discounted net present value of the Company's reserves, as determined by McDaniel, represents the fair value of those reserve estimates.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of and of the words "will", "expects", "believe", "plans", potential", "forecasts" and similar expressions are intended to identify forward-looking statements. In particular, this press release contains forward-looking statements pertaining to the following: Kelt's expected price realizations and future commodity prices; its expected oil and NGLs weighting; the cost and timing of future capital expenditures and expected results; the expected timing of wells brought on-production; the expected timing of production additions from capital expenditures; the ability to show significant production growth; the expected timing for well completions; the expected timing and processing capacity from the start-up of a new third party facility at Wembley/Pipestone and from the start-up of a new third party facility at Gordondale West; the ability to access sufficient capital from internal sources and bank and equity markets, the performance of existing wells, the effect of regulatory agencies including environmental regulations, taxes and royalties, and the Company's expected future financial position and operating results.
Statements relating to "reserves" or "resources" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Actual reserves may be greater than or less than the estimates provided herein.
Although Kelt 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 Kelt cannot give any 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, the risks associated with the oil and gas industry in general, operational risks in development, exploration and production; 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; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; as well as general economic conditions, stock market volatility; the ability to access sufficient water or other fluids needed for completion operations; and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive.
Non-GAAP and Other Key Financial Measures
This press release contains certain non-GAAP financial measures and other specified financial measures, as described below, which do not have standardized meanings prescribed by GAAP and do not have standardized meanings under the applicable securities legislation. As these non-GAAP, and other specified financial measures are commonly used in the oil and gas industry, the Company believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.
Non-GAAP Financial Measures
Net realized price
Net realized price is a non-GAAP measure and is calculated by dividing the Company's P&NG sales after cost of purchases by the Company's production and reflects Kelt's realized selling prices plus the net benefit of oil blending and third-party natural gas sales. In addition to using its own production, the Company may purchase butane and crude oil from third parties for use in its blending operations, with the objective of selling the blended oil product at a premium. Marketing revenue from the sale of third-party volumes is included in P&NG sales as reported in the Consolidated Statement of Net Income and Comprehensive Income in accordance with GAAP. Given the Company's per unit operating statistics disclosed throughout this press release are calculated based on Kelt's production volumes, and excludes the sale of third-party marketing volumes, management believes that disclosing its net realized prices based on P&NG sales after cost of purchases is more appropriate and useful, because the cost of third-party volumes purchased to generate the incremental marketing revenue has been deducted.
Combined net realized prices referenced throughout this press release are before derivative financial instruments, except as otherwise indicated as being after derivative financial instruments.
See the "Petroleum and Natural Gas Sales" section of Kelt's Management's Discussion and Analysis as at and for the year ended December 31, 2024, which provides a reconciliation of the net realized price to P&NG sales, which is a GAAP measure.
Operating income and operating netback
Operating income is a non-GAAP measure calculated by deducting royalties, production expenses and transportation expenses from petroleum and natural gas sales, net of the cost of purchases and after realized gains or losses on derivative financial instruments. The Company also presents operating income on a per BOE basis, referred to as "operating netback" or "operating income per BOE", which allows management to better analyze performance against prior periods, on a comparable basis, and is a key industry performance measure of operational efficiency.
See the "Adjusted Funds from Operations" section of Kelt's Management's Discussion and Analysis as at and for the year ended December 31, 2024, which provides a reconciliation of the operating netback from P&NG sales, which is a GAAP measure.
Capital expenditures
"Capital expenditures, before A&D" and "Capital expenditures, net of A&D" are measures the Company uses to monitor its investment in exploration and evaluation, investment in property plant and equipment, and net investment in acquisition and disposition activities. The most directly comparable GAAP measure is Cash used in investing activities, and is calculated as follows:
| Three months ended December 31 | Year ended December 31 | |||||||||||
| (CA$ thousands, except as otherwise indicated) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash used in investing activities | 112,062 | 82,324 | 336,569 | 265,485 | ||||||||
| Change in non-cash investing working capital | (15,016 | ) | (19,629 | ) | (3,422 | ) | 17,161 | |||||
| Capital expenditures, net of A&D | 97,046 | 62,695 | 333,147 | 282,646 | ||||||||
| Property acquisitions (1) | (3,400 | ) | (10 | ) | (4,173 | ) | (102 | ) | ||||
| Property dispositions (1) | - | 50 | - | 50 | ||||||||
| Capital expenditures, before A&D | 93,646 | 62,735 | 328,974 | 282,594 | ||||||||
(1) Property acquisitions and property dispositions for the year ended December 31, 2024 includes
Average capital employed
Kelt calculates average capital employed as the total of net debt plus the short and long term lease obligations and shareholders equity. Kelt uses average capital employed as a measure of long-term capital management and operating performance, and as a component in the calculation for ROACE. The table below provides a reconciliation of average capital employed to the most directly comparable GAAP measures of shareholders equity.
| (CA$ thousands, except as otherwise indicated) | December 31, 2024 | December 31, 2023 | December 31, 2022 | ||||||
| Net debt - beginning of period | 12,997 | 9,789 | 28,220 | ||||||
| Current portion of lease obligations | 1,125 | 505 | 609 | ||||||
| Long-term portion of lease obligations | 332 | 543 | 399 | ||||||
| Shareholders' equity - beginning of period | 1,003,663 | 901,424 | 722,724 | ||||||
| Opening capital employed (A) | 1,018,117 | 912,261 | 751,952 |
| (CA$ thousands, except as otherwise indicated) | December 31, 2024 | December 31, 2023 | December 31, 2022 | ||||||
| Net debt - end of period | 124,883 | 12,997 | 9,789 | ||||||
| Current portion of lease obligations | 1,655 | 1,125 | 505 | ||||||
| Long-term portion of lease obligations | 419 | 332 | 543 | ||||||
| Shareholders' equity - end of period | 1,063,004 | 1,003,663 | 901,424 | ||||||
| Closing capital employed (B) | 1,189,961 | 1,018,117 | 912,261 | ||||||
| Average capital employed (A+B)/2 | 1,104,039 | 965,189 | 832,107 |
Return on average capital employed
Kelt calculates ROACE, expressed as a percentage, as adjusted EBIT divided by the average capital employed. The components adjusted EBIT and average capital employed are non-GAAP financial measures. Kelt uses ROACE as a measure of long-term financial performance.
| (CA$ thousands, except as otherwise indicated) | Three-year Average | December 31, 2024 | December 31, 2023 | December 31, 2022 | ||||||||
| Adjusted EBIT | 66,830 | 115,787 | 211,659 | |||||||||
| Average capital employed | 1,104,039 | 965,189 | 832,107 | |||||||||
| ROACE (%) |
Capital Management Measures:
Funds from operations and adjusted funds from operations
Management considers funds from operations and adjusted funds from operations as a key capital management measure as it demonstrates the Company's ability to meet its financial obligations and cash flow available to fund its capital program. Funds from operations and adjusted funds from operations are not standardized measures and therefore may not be comparable with the calculation of similar measures by other entities. The most comparable GAAP measure is "Cash provided by operating activities". Funds from operations and adjusted funds from operations are calculated as follows:
| Three months ended December 31 | Year ended December 31 | |||||||||||
| (CA$ thousands, except as otherwise indicated) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash provided by operating activities | 48,067 | 62,477 | 209,145 | 283,224 | ||||||||
| Change in non-cash working capital | 19,471 | 1,697 | 7,797 | (11,562 | ) | |||||||
| Funds from operations | 67,538 | 64,174 | 216,942 | 271,662 | ||||||||
| Settlement of decommissioning obligations | 1,868 | 2,444 | 5,036 | 4,538 | ||||||||
| Adjusted funds from operations | 69,406 | 66,618 | 221,978 | 276,200 | ||||||||
Net debt (surplus) and net debt (surplus) to adjusted funds from operations ratio
Management considers net debt (surplus) and net debt (surplus) to adjusted funds from operations ratio as key capital management measures to assess the Company's liquidity at a point in time and to monitor its capital structure and short-term financing requirements. The "net debt (surplus) to adjusted funds from operations ratio" is also indicative of the "net debt to cash flow ratio" calculation used to determine the applicable margin for a quarter under the Company's Credit Facility agreement (though the calculation may not always be a precise match, it is representative).
"Net debt (surplus)" is equal to bank debt, accounts payable and accrued liabilities, net of cash and cash equivalents, accounts receivables and accrued sales and prepaid expenses and deposits. The Company believes that using a "Net debt (surplus)" non-GAAP measure, which excludes non-cash derivative financial instruments, non-cash lease liabilities, and non-cash decommissioning obligations, provides investors with more useful information to understand the Company's cash liquidity risk.
Net debt is calculated as follows:
| December 31, 2024 | December 31, 2023 | |||||
| Bank debt | 108,993 | - | ||||
| Accounts payable and accrued liabilities | 80,463 | 85,171 | ||||
| Cash and cash equivalents | (228 | ) | (14,340 | ) | ||
| Accounts receivable and accrued sales | (60,236 | ) | (52,646 | ) | ||
| Prepaid expenses and deposits | (4,109 | ) | (5,188 | ) | ||
| Net debt | 124,883 | 12,997 |
Supplementary Financial Measures
"Production per common share" is calculated by dividing total production by the basic weighted average number of common shares outstanding, as determined in accordance with GAAP.
P&NG sales, cost of purchases, gain (loss) on derivative financial instruments, royalties, revenue after royalties and derivative financial instruments, production expenses, transportation expenses, financing expenses, gross and net G&A expenses, realized gain (loss) on foreign exchange, other income (expense), share based compensation expense and depletion and depreciation on a $/BOE basis is calculated by dividing the amounts by the Company's total production over the period.
Adjusted funds from operations per share (basic and diluted), and net income and comprehensive income per share (basic and diluted) is calculated by dividing the amounts by the basic weighted average common shares outstanding.
"Net asset value" is calculated by adding the present value of proved plus probable petroleum and natural gas reserves discounted at
"Finding, development, acquisition and disposition" ("FDA&D") cost is the sum of capital expenditures incurred in the period, less proceeds from the disposition of assets during the period and the change in future development capital ("FDC") required to develop reserves. FDA&D cost per BOE is determined by dividing current period net reserve additions into the corresponding period's FDA&D cost. Readers are cautioned that the aggregate of capital expenditures incurred in the year, comprised of exploration and development costs and acquisition costs, and proceeds from the disposition of assets, and the change in estimated FDC generally will not reflect total FDA&D costs related to net reserve additions in the year.
"Reserves Replacement" is calculated by dividing the current year's reserve additions by the current year's production. Management believes this ratio provides useful information in comparing the rate of reserve growth to the Company's most recent annual production.
"Recycle ratio" is a measure for evaluating the effectiveness of a company's re-investment program. The ratio measures the efficiency of capital investment by comparing the operating netback per BOE to FDA&D cost per BOE.
Measurements
All dollar amounts are referenced in thousands of Canadian dollars, except when noted otherwise. This press release contains various references to the abbreviation BOE which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel and sulphur volumes have been converted to oil equivalence at 0.6 long tons per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices. Such abbreviation may be misleading, particularly if used in isolation. References to "oil" in this press release include crude oil and field condensate. References to "natural gas liquids" or "NGLs" include pentane, butane, propane, and ethane. References to "liquids" include field condensate and NGLs. References to "gas" in this discussion include natural gas and sulphur.
Abbreviations
| A&D | Acquisitions and Dispositions |
| P&NG | Petroleum and Natural Gas |
| MD&A | Management's Discussion and Analysis |
| TSX | the Toronto Stock Exchange |
| KEL | trading symbol for Kelt Exploration Ltd. on the TSX |
| GAAP | Generally Accepted Accounting Principles |
| SEDAR+ | the System for Electronic Document Analysis and Retrieval |
| bbls | barrels |
| bbls/d | barrels per day |
| Mcf | thousand cubic feet |
| Mcf/d | thousand cubic feet per day |
| MMcf | million cubic feet |
| MMcf/d | million cubic feet per day |
| Oil | includes crude oil and field condensate combined |
| BOE | barrel of oil equivalent |
| BOE/d | barrel of oil equivalent per day |
| NGLs | natural gas liquids |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/244419
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