Kelt Reports Financial and Operating Results for the Quarter and Year Ended December 31, 2023

Rhea-AI Summary

Kelt Exploration Ltd. reports financial and operating results for Q4 and full year 2023, showcasing a 15% increase in average daily production, but a decrease in petroleum and natural gas sales. Adjusted funds from operations declined by 28% year-over-year, with a net income drop of 46%. Despite a 19% decrease in sales, Kelt maintains a strong financial position with a net debt to adjusted funds from operations ratio of 0.05 times.

Positive

• 15% increase in average daily production for Q4 2023 compared to Q4 2022
• 16% decrease in petroleum and natural gas sales for Q4 2023 compared to Q4 2022
• Adjusted funds from operations decreased by 28% year-over-year
• Net income dropped by 46% compared to the previous year
• Strong financial position with a net debt to adjusted funds from operations ratio of 0.05 times

Negative

• Decrease in petroleum and natural gas sales
• Significant drop in adjusted funds from operations
• Net income decline of 46%

Calgary, Alberta--(Newsfile Corp. - March 8, 2024) - 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, 2023. 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)		2023			2022			%			2023			2022			%
Petroleum and natural gas sales		129,000			152,720			-16			495,580			613,358			-19
Cash provided by operating activities		62,477			63,742			-2			283,224			306,022			-7
Adjusted funds from operations (1)		66,618			92,851			-28			276,200			326,992			-16
Basic ($/ common share) (1)		0.34			0.48			-29			1.43			1.71			-16
Diluted ($/ common share) (1)		0.33			0.47			-30			1.40			1.67			-16
Net income and comprehensive income		23,729			54,238			-56			85,974			158,758			-46
Basic ($/ common share)		0.12			0.28			-57			0.45			0.83			-46
Diluted ($/ common share)		0.12			0.28			-57			0.44			0.81			-46
Capital expenditures, net of A&D (1)		62,695			68,594			-9			282,646			317,540			-11
Total assets											1,260,292			1,128,104			12
Bank debt											-			11,300			-100
Net debt (1)											12,997			9,789			33
Shareholders' equity											1,003,663			901,424			11
Return on average capital employed (%) (1)(2)											12			25			-52
Weighted average shares outstanding (000s)
Basic		194,359			191,812			1			193,116			191,101			1
Diluted		199,223			195,828			2			197,063			195,456			1
(1) Refer to advisories regarding Non-GAAP and Other Financial Measures. (2) The three-year average ROACE as of December 31, 2023 was 19%. Refer to additional information under "Non-GAAP and Other Financial Measures".

 
Financial Statements

Kelt's audited annual consolidated financial statements and related notes for the year ended December 31, 2023 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 8, 2024.

Kelt's operating results for the fourth quarter and year ended December 31, 2023 are summarized as follows:

OPERATIONAL HIGHLIGHTS		Three months ended December 31									Year ended December 31
(CA$ thousands, except as otherwise indicated)		2023			2022			%			2023			2022			%
Average daily production
Oil (bbls/d) (2)		8,832			6,416			38			7,979			5,640			41
NGLs (bbls/d)		3,422			3,478			-2			3,759			4,049			-7
Gas (mcf/d)		120,541			108,849			11			112,634			105,280			7
Combined (BOE/d)		32,344			28,036			15			30,510			27,236			12
Production per million common shares (BOE/d) (1)		166			146			14			158			143			10
Net realized prices, before financial instruments(1)
Oil ($/bbl) (2)		95.68			107.88			-11			97.90			117.18			-16
NGLs ($/bbl)		49.79			60.54			-18			49.27			67.64			-27
Gas ($/mcf)		2.75			6.52			-58			3.08			6.63			-54
Operating netbacks ($/BOE) (1)
Petroleum and natural gas sales		43.35			59.21			-27			44.51			61.70			-28
Cost of purchases		(1.66	)		(3.30	)		-50			(1.50	)		(2.16	)		-31
Combined net realized price, before financial instruments(1)		41.69			55.91			-25			43.01			59.54			-28
Realized gain (loss) on financial instruments		0.09			1.66			-95			1.35			(5.68	)		124
Combined net realized price, after financial instruments(1)		41.78			57.57			-27			44.36			53.86			-18
Royalties		(6.03	)		(6.15	)		-2			(5.31	)		(6.60	)		-20
Production expense		(8.62	)		(10.90	)		-21			(9.83	)		(10.22	)		-4
Transportation expense

FAQ

What was the percentage change in petroleum and natural gas sales for Kelt Exploration Ltd. in Q4 2023 compared to Q4 2022?

Petroleum and natural gas sales for Q4 2023 decreased by 16% compared to Q4 2022.

How did Kelt Exploration Ltd.'s adjusted funds from operations change year-over-year?

Adjusted funds from operations decreased by 28% year-over-year for Kelt Exploration Ltd.

What was the net income change for Kelt Exploration Ltd. in 2023 compared to the previous year?

Kelt Exploration Ltd.'s net income dropped by 46% compared to the previous year.

What is Kelt Exploration Ltd.'s net debt to adjusted funds from operations ratio?

Kelt Exploration Ltd. maintains a strong financial position with a net debt to adjusted funds from operations ratio of 0.05 times.