Kolibri Global Energy Announces Increases of 118% in Net Income and 100% in EPS for Third Quarter 2024
Kolibri Global Energy reported strong Q3 2024 results with net income increasing 118% to $5.1 million and EPS rising 100% to $0.14/share compared to Q3 2023. Average production grew 11% to 3,032 BOEPD, while Adjusted EBITDA increased 6% to $10.1 million. Revenue rose 2% to $13.0 million despite a 9% decrease in average prices. The company's three new Alicia Renee 1.5-mile lateral wells showed promising initial production rates, with the Alicia 2-11-3H well averaging 1,049 BOEPD. The credit facility maintained its $50 million borrowing base with $19.0 million available capacity.
Kolibri Global Energy ha riportato risultati solidi per il terzo trimestre del 2024, con un incremento dell'utile netto del 118%, raggiungendo 5,1 milioni di dollari, e un aumento del 100% nell'EPS a $0,14 per azione rispetto al terzo trimestre del 2023. La produzione media è cresciuta dell'11% a 3.032 BOEPD, mentre l'EBITDA rettificato è aumentato del 6% a 10,1 milioni di dollari. I ricavi sono aumentati del 2%, arrivando a 13,0 milioni di dollari, nonostante una diminuzione del 9% nei prezzi medi. I tre nuovi pozzi laterali Alicia Renee di 1,5 miglia hanno mostrato tassi di produzione iniziali promettenti, con il pozzo Alicia 2-11-3H che ha registrato una media di 1.049 BOEPD. La linea di credito ha mantenuto una base di prestito di 50 milioni di dollari, con una capacità disponibile di 19,0 milioni di dollari.
Kolibri Global Energy reportó resultados sólidos para el tercer trimestre de 2024, con un incremento del ingreso neto del 118% a 5.1 millones de dólares y un alza del 100% en las ganancias por acción a $0.14 por acción en comparación con el tercer trimestre de 2023. La producción promedio creció un 11% a 3,032 BOEPD, mientras que el EBITDA ajustado aumentó un 6% a 10.1 millones de dólares. Los ingresos subieron un 2% a 13.0 millones de dólares a pesar de una disminución del 9% en los precios promedio. Los tres nuevos pozos laterales Alicia Renee de 1.5 millas mostraron tasas de producción iniciales prometedoras, con el pozo Alicia 2-11-3H promediando 1,049 BOEPD. La línea de crédito mantuvo su base de préstamo de 50 millones de dólares con una capacidad disponible de 19.0 millones de dólares.
Kolibri Global Energy는 2024년 3분기 강력한 실적을 보고했으며, 순이익이 118% 증가하여 510만 달러에 달하고, 주당 순이익이 100% 증가하여 주당 $0.14에 도달했습니다. 평균 생산량은 11% 증가해 3,032 BOEPD에 이르렀으며, 조정된 EBITDA는 6% 증가하여 1,010만 달러에 달했습니다. 수익은 평균 가격이 9% 감소했음에도 불구하고 2% 증가하여 1,300만 달러가 되었습니다. 회사의 세 개의 새로운 알리시아 레네 1.5마일 수평 유정은 유망한 초기 생산률을 보였으며, 알리시아 2-11-3H 유정은 평균 1,049 BOEPD를 기록했습니다. 신용 시설은 5천만 달러의 대출 기준을 유지하며 1,900만 달러의 사용 가능한 용량을 보유하고 있습니다.
Kolibri Global Energy a rapporté de solides résultats pour le troisième trimestre 2024, avec un revenu net augmentant de 118 % à 5,1 millions de dollars et un BPA en hausse de 100 % à 0,14 $ par action par rapport au troisième trimestre 2023. La production moyenne a augmenté de 11 % pour atteindre 3 032 BOEPD, tandis que l'EBITDA ajusté a augmenté de 6 % à 10,1 millions de dollars. Les revenus ont augmenté de 2 % pour atteindre 13,0 millions de dollars malgré une baisse de 9 % des prix moyens. Les trois nouveaux puits latéraux Alicia Renee d'1,5 mile ont montré des taux de production initiaux prometteurs, le puits Alicia 2-11-3H enregistrant une moyenne de 1 049 BOEPD. La ligne de crédit a maintenu sa base de emprunt de 50 millions de dollars, avec une capacité disponible de 19,0 millions de dollars.
Kolibri Global Energy berichtete über starke Ergebnisse für das dritte Quartal 2024, wobei das Nettoeinkommen um 118% auf 5,1 Millionen US-Dollar stieg und der EPS um 100% auf 0,14 US-Dollar/Aktie im Vergleich zum dritten Quartal 2023 zulegte. Die durchschnittliche Produktion stieg um 11% auf 3.032 BOEPD, während das angepasste EBITDA um 6% auf 10,1 Millionen US-Dollar zunahm. Die Einnahmen stiegen um 2% auf 13,0 Millionen US-Dollar, obwohl die durchschnittlichen Preise um 9% zurückgingen. Die drei neuen lateral gebohrten Alicia Renee-Well 1.5-Meilen zeigten vielversprechende Anfangsproduktionsraten, wobei das Alicia 2-11-3H-Well durchschnittlich 1.049 BOEPD aufwies. Die Kreditfazilität behielt ihre Kreditbasis von 50 Millionen US-Dollar mit einer verfügbaren Kapazität von 19,0 Millionen US-Dollar bei.
- Net income increased 118% to $5.1 million in Q3 2024
- Production increased 11% to 3,032 BOEPD
- Adjusted EBITDA grew 6% to $10.1 million
- Operating expenses per barrel decreased 10% to $6.63/BOE
- Strong initial production from new Alicia Renee wells
- Average prices decreased 9% compared to Q3 2023
- Netback from operations decreased 8% to $40.01/BOE
- Working capital deficit increased to $3.97 million from $1.89 million in Q2 2024
- Higher general and administrative expenses, up 14%
Insights
The Q3 2024 results show impressive growth with
The balance sheet remains solid with
The operational metrics are particularly strong, with the three new 1.5-mile lateral Alicia Renee wells showing promising initial production rates. The Alicia 2-11-3H well's performance of 1,049 BOEPD is especially notable. The
The shift to longer laterals represents a strategic evolution that could significantly enhance well economics and field development efficiency. The netback from operations of
THIRD QUARTER 2024 HIGHLIGHTS
-
Net income for the third quarter of 2024 was
and EPS was$5.1 million /share compared to net income of$0.14 and EPS of$2.3 million /share for the third quarter of 2023, an increase of$0.07 118% and100% , respectively. The increase was mainly due to an unrealized gain on commodity contracts of that was recorded in the third quarter of 2024 compared to an unrealized loss on commodity contracts of$1.3 million in the third quarter of 2023. In addition, the third quarter of 2024 had higher production which was offset by lower average prices and higher income tax expense compared to the third quarter of 2023$2.6 million -
Average production for the third quarter of 2024 was 3,032 BOEPD, an increase of
11% compared to the third quarter of 2023, which was 2,737 BOEPD. The increase was due to production from the wells that were drilled and completed in the last three months of 2023 and the first nine months of 2024 -
Adjusted EBITDA(1) was
in the third quarter of 2024 compared to$10.1 million in the third quarter of 2023, an increase of$9.5 million 6% . The increase was primarily due to an increase in production of11% , partially offset by a decrease in average prices of9% -
Revenue, net of royalties was
in the third quarter of 2024 compared to$13.0 million for the third quarter of 2023, which was an increase of$12.7 million 2% , as production increased by11% which was mostly offset by a decrease in average prices of9% -
Production and operating expenses per barrel averaged
per BOE in the third quarter of 2024 compared to$6.63 per BOE in the third quarter of 2023, a decrease of$7.34 10% . The decrease was due to increased production which reduced the per barrel fixed costs -
Average netback from operations(2) for the third quarter of 2024 was
/boe, a decrease of$40.01 8% from the prior year third quarter due to lower prices in 2024. Average netback including commodity contracts(2) for the third quarter of 2024 was per boe, a decrease of$39.95 4% from the prior year third quarter -
In October 2024, the credit facility was redetermined with the same
borrowing base. At September 30, 2024, the Company had$50 million of available borrowing capacity on its credit agreement and its net debt outstanding was$19.0 million $29.1 million
(1) |
|
Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
(2) |
|
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
KEI’s President and Chief Executive Officer, Wolf Regener commented:
“We are pleased that the Company continues to increase production, adjusted EBITDA and net income as we continue our 2024 drilling program to demonstrate the growth potential of our field. Our production increased by
|
Third Quarter |
|
First Nine Months |
|
||||||||||||
|
2024 |
|
|
2023 |
|
% |
|
2024 |
|
|
2023 |
|
% |
|||
Net Income: |
||||||||||||||||
$ Thousands |
$ |
5,066 |
|
$ |
2,319 |
|
$ |
12,472 |
$ |
14,396 |
|
(14)% |
||||
$ per basic common share |
$ |
0.14 |
|
$ |
0.07 |
|
|
$ |
0.35 |
|
$ |
0.41 |
|
(15)% |
||
$ per diluted shares |
$ |
0.14 |
|
$ |
0.06 |
|
|
$ |
0.35 |
|
$ |
0.40 |
|
(13)% |
||
|
|
|||||||||||||||
Capital Expenditures |
$ |
9,798 |
|
$ |
17,247 |
|
(43)% |
$ |
21,545 |
|
$ |
37,177 |
|
(42)% |
||
|
|
|||||||||||||||
Average Production (Boepd) |
|
3,032 |
|
|
2,737 |
|
|
|
3,154 |
|
|
2,780 |
|
|
||
Average Price per BOE |
$ |
59.09 |
|
$ |
65.04 |
|
(9)% |
$ |
60.64 |
|
$ |
62.19 |
|
(2)% |
||
Average Netback from operations(2) per Barrel |
$ |
40.01 |
|
$ |
43.28 |
|
(8)% |
$ |
39.78 |
|
$ |
42.48 |
|
(6)% |
||
Average Netback including commodity contracts(2) per Barrel |
$ |
39.95 |
|
$ |
41.65 |
|
(4)% |
$ |
39.09 |
|
$ |
41.00 |
|
(5)% |
||
September 2024 |
June 2024 |
December
|
|
|||||||||||||
Cash and Cash Equivalents |
$ |
1,619 |
|
$ |
549 |
|
$ |
598 |
|
|||||||
Working Capital |
$ |
(3,965 |
) |
$ |
(1,885 |
) |
$ |
(11,916 |
) |
|||||||
Borrowing capacity |
$ |
19,042 |
|
|
$ |
16,042 |
|
|
$ |
10,042 |
|
|
(1) |
|
Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
(2) |
|
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
Third Quarter 2024 versus Third Quarter 2023
Oil and gas gross revenues totaled
Average third quarter 2024 production per day increased 295 boepd or
Production and operating expenses decreased to
General and administrative expenses increased
Finance income increased by
Finance expense decreased by
FIRST NINE MONTHS 2024 HIGHLIGHTS
-
Average production for the nine months ended September 30, 2024 was 3,154 BOEPD, an increase of
13% from the average production of 2,780 BOEPD in the same period of 2023. The increase is due to production from the wells that were drilled and completed in the last three months of 2023 and the first nine months of 2024. -
Adjusted EBITDA(1) was
for the nine months ended September 30, 2024 compared to$30.5 million for the prior year period, an increase of$28.6 million 7% . The increase was due to a13% increase in production partially offset by a decrease in average prices of2% compared to the same period in 2023. -
Revenue, net of royalties was
in the first nine months of 2024 compared to$41.2 million for the first nine months of 2023, which was an increase of$37.2 million 11% , as production increased by13% partially offset by a decrease in average prices of2% -
Net income for the first nine months of 2023 was
and Basic EPS was$12.5 million /share compared to net income of$0.35 and Basic EPS of$14.5 million /share for the first nine months of 2023 primarily due to an increase in income tax expense, partially offset by higher revenues and an unrealized gain on commodity contracts in 2024$0.41 -
Average netback from operations(2) for the first nine months of 2024 was
/boe, a decrease of$39.78 6% from the prior year period due to lower prices and higher operating expenses in 2024, mainly due to reassessed prior year costs. Netback including commodity contracts(2) for the first nine months of 2024 was /boe which was$39.09 5% lower than the prior year period
(1) |
|
Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
(2) |
|
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
First Nine Months of 2024 versus First Nine Months of 2023
Oil and gas gross revenues totaled
Average production per day for the first nine months of 2024 increased
Production and operating expenses increased to
General and administrative expenses increased
Finance income increased by
Finance expense increased
KOLIBRI GLOBAL ENERGY INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited, Expressed in Thousands of United States Dollars) |
|||||||
( |
|||||||
September 30 |
December 31 |
||||||
|
2024 |
|
|
2023 |
|
||
Current Assets |
|
|
|||||
Cash |
$ |
1,619 |
|
$ |
598 |
|
|
Accounts receivable and other receivables |
|
5,623 |
|
|
5,492 |
|
|
Deposits and prepaid expenses |
|
880 |
|
|
838 |
|
|
Fair value of commodity contracts |
|
697 |
|
|
- |
|
|
|
|
8,819 |
|
|
6,928 |
|
|
Non-current assets |
|
|
|||||
Property, plant and equipment |
|
227,685 |
|
|
216,161 |
|
|
Right of use assets |
|
813 |
|
|
1,190 |
|
|
Fair value of commodity contracts |
|
121 |
|
|
78 |
|
|
|
|
228,619 |
|
|
217,429 |
|
|
Total Assets |
$ |
237,438 |
|
$ |
224,357 |
|
|
Current Liabilities |
|
|
|||||
Accounts payables and other payables |
$ |
12,444 |
|
$ |
12,596 |
|
|
Lease liabilities |
|
675 |
|
|
32 |
|
|
Fair value of commodity contracts |
|
- |
|
|
1,421 |
|
|
|
|
13,119 |
|
|
14,049 |
|
|
|
|
|
|||||
Non-current liabilities |
|
|
|||||
Loans and borrowings |
|
30,711 |
|
|
29,612 |
|
|
Asset retirement obligations |
|
2,238 |
|
|
1,966 |
|
|
Deferred income taxes |
|
7,339 |
|
|
3,359 |
|
|
Lease liabilities |
|
171 |
|
|
162 |
|
|
Fair value of commodity contracts |
|
- |
|
|
- |
|
|
|
|
40,459 |
|
|
35,099 |
|
|
|
|
|
|||||
Equity |
|||||||
Shareholders’ capital |
|
296,458 |
|
|
296,232 |
|
|
Contributed surplus |
|
24,927 |
|
|
24,179 |
|
|
Accumulated deficit |
|
(137,525 |
) |
|
(149,997 |
) |
|
|
183,860 |
|
|
170,414 |
|
||
Total Equity and Liabilities |
$ |
237,438 |
|
$ |
224,357 |
|
KOLIBRI GLOBAL ENERGY INC. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
|||||||||||||||
(Unaudited, expressed in Thousands of |
|||||||||||||||
( |
|||||||||||||||
|
|
|
|||||||||||||
|
Third Quarter |
First Nine Months |
|||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
|
|
|
|||||||||||
Oil and natural gas revenue, net |
$ |
13,009 |
|
$ |
12,746 |
|
$ |
41,150 |
|
$ |
37,153 |
|
|||
Other income |
|
- |
|
|
1 |
|
|
60 |
|
|
2 |
|
|||
|
|
13,009 |
|
|
12,747 |
|
|
41,210 |
|
|
37,155 |
|
|||
|
|
|
|
|
|||||||||||
Production and operating expenses |
|
1,524 |
|
|
1,628 |
|
|
5,879 |
|
|
4,328 |
|
|||
Depletion and depreciation expense |
|
3,611 |
|
|
3,790 |
|
|
11,205 |
|
|
11,503 |
|
|||
General and administrative expenses |
|
1,333 |
|
|
1,170 |
|
|
4,126 |
|
|
3,121 |
|
|||
Stock based compensation |
|
268 |
|
|
157 |
|
|
807 |
|
|
531 |
|
|||
|
|
6,736 |
|
|
6,745 |
|
|
22,017 |
|
|
19,483 |
|
|||
|
|
|
|
|
|||||||||||
Finance income |
|
1,341 |
|
|
- |
|
|
871 |
|
|
- |
|
|||
Finance expense |
|
(902 |
) |
|
(3,683 |
) |
|
(3,304 |
) |
|
(3,189 |
) |
|||
Income tax expense |
|
(1,646 |
) |
|
- |
|
|
(4,288 |
) |
|
- |
|
|||
Net income |
|
5,066 |
|
|
2,319 |
|
|
12,472 |
|
|
14,483 |
|
|||
|
|
|
|
|
|||||||||||
Basic net income per share |
$ |
0.14 |
|
$ |
0.07 |
|
$ |
0.35 |
|
$ |
0.41 |
|
|||
Diluted net income per share |
$ |
0.14 |
|
$ |
0.06 |
|
$ |
0.35 |
|
$ |
0.40 |
|
KOLIBRI GLOBAL ENERGY INC. |
|||||||||||||
THIRD QUARTER 2024 |
|||||||||||||
(Unaudited, expressed in Thousands of |
|||||||||||||
|
|
|
|||||||||||
|
Third Quarter |
|
First Nine Months |
||||||||||
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Oil revenue before royalties |
$ |
15,398 |
|
$ |
15,270 |
|
$ |
48,647 |
|
$ |
43,537 |
|
|
Gas revenue before royalties |
|
216 |
|
|
390 |
|
|
808 |
|
|
1,437 |
|
|
NGL revenue before royalties |
|
871 |
|
|
718 |
|
|
2,952 |
|
|
2,224 |
|
|
Oil and Gas gross revenue |
|
16,485 |
|
|
16,378 |
|
|
52,407 |
|
|
47,198 |
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA(1) |
|
10,136 |
|
|
9,536 |
|
|
30,546 |
|
|
28,578 |
|
|
Capital expenditures |
|
9,798 |
|
|
17,247 |
|
|
21,545 |
|
|
37,177 |
|
|
|
|
|
|
|
|||||||||
Average oil production (Bopd) |
|
2,247 |
|
|
2,083 |
|
|
2,326 |
|
|
2,110 |
|
|
Average natural gas production (mcf/d) |
|
1,948 |
|
|
1,565 |
|
|
2,078 |
|
|
1,698 |
|
|
Average NGL production (Boepd) |
|
460 |
|
|
393 |
|
|
482 |
|
|
387 |
|
|
Average production (Boepd) |
|
3,032 |
|
|
2,737 |
|
|
3,154 |
|
|
2,780 |
|
|
Average oil price ($/bbl) |
$ |
74.48 |
|
$ |
79.70 |
|
$ |
76.32 |
|
$ |
75.57 |
|
|
Average natural gas price ($/mcf) |
$ |
1.21 |
|
$ |
2.71 |
|
$ |
1.42 |
|
$ |
3.10 |
|
|
Average NGL price ($/bbl) |
$ |
20.60 |
|
$ |
19.84 |
|
$ |
22.35 |
|
$ |
21.04 |
|
|
|
|
|
|
|
|||||||||
Average price (Boe) |
$ |
59.09 |
|
$ |
65.04 |
|
$ |
60.64 |
|
$ |
62.19 |
|
|
Royalties (Boe) |
|
12.45 |
|
|
14.42 |
|
|
13.02 |
|
|
13.24 |
|
|
Operating expenses (Boe) |
|
6.63 |
|
|
7.34 |
|
|
7.84 |
|
|
6.47 |
|
|
Netback from operations(2) (Boe) |
$ |
40.01 |
|
$ |
43.28 |
|
$ |
39.78 |
|
$ |
42.48 |
|
|
Price impact from commodity contracts(3) (Boe) |
|
(0.06 |
) |
|
(1.63 |
) |
|
(0.69 |
) |
|
(1.48 |
) |
|
Netback including commodity contracts(2) (Boe) |
$ |
39.95 |
|
$ |
41.65 |
|
$ |
39.09 |
|
$ |
41.00 |
|
(1) |
|
Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
(2) |
|
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
(3) |
|
Price impact from commodity contracts includes the positive or negative adjustment to the average price per barrel that the Company realized from its commodity contracts. |
The information outlined above is extracted from and should be read in conjunction with the Company's unaudited financial statements for the three and nine months ended September 30, 2024 and the related management's discussion and analysis thereof, copies of which are available under the Company's profile at www.sedarplus.ca.
NON-GAAP MEASURES
Netback from operations, netback including commodity contracts and adjusted EBITDA (collectively, the "Company’s Non-GAAP Measures") are not measures or ratios recognized under Canadian generally accepted accounting principles ("GAAP") and do not have any standardized meanings prescribed by IFRS. Management of the Company believes that such measures and ratios are relevant for evaluating returns on each of the Company's projects as well as the performance of the enterprise as a whole. The Company's Non-GAAP Measures may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to similar non-GAAP measures and ratios as reported by such organizations. The Company’s Non-GAAP Measures should not be construed as alternatives to net income, cash flows related to operating activities, working capital or other financial measures and ratios determined in accordance with IFRS, as an indicator of the Company's performance.
An explanation of how the Company’s Non-GAAP Measures provide useful information to an investor and the purposes for which the Company’s management uses the Non-GAAP Measures is set out in the management's discussion and analysis under the heading “Non-GAAP Measures” which is available under the Company's profile at www.sedarplus.ca and is incorporated by reference into this earnings release.
Netback from operations per barrel and its components are calculated by dividing revenue, less royalties and operating expenses by the Company’s sales volume during the period. Netback including commodity contracts is calculated by adjusting netback from operations by the realized gains or losses received from commodity contracts during the period. Netback is a non-GAAP ratio but it is commonly used by oil and gas companies to illustrate the unit contribution of each barrel produced. The Company believes that the netback is a useful supplemental measure of the cash flow generated on each barrel of oil equivalent that is produced in its operations. However, non-GAAP measures and non-GAAP ratios do not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures or ratios used by other companies and should not be used to make comparisons.
The following is the reconciliation of the non-GAAP ratio netback from operations to net income, which the Company considers to be the most directly comparable financial measure that is disclosed in the Company’s financial statements:
(US |
Three months ended
|
Nine months ended
|
||||||||
2024 |
2023 |
|
2024 |
2023 |
||||||
Net income |
5,066 |
|
2,319 |
|
12,472 |
|
14,483 |
|
||
Adjustments: |
||||||||||
Income tax expense |
|
1,646 |
|
- |
|
|
4,288 |
|
- |
|
Finance income |
(1,341 |
) |
1 |
|
(871 |
) |
- |
|
||
Finance expense |
902 |
|
3,682 |
|
3,304 |
|
3,189 |
|
||
Share based compensation |
268 |
|
157 |
|
807 |
|
531 |
|
||
General and administrative expenses |
1,333 |
|
1,170 |
|
4,126 |
|
3,121 |
|
||
Depletion, depreciation and amortization |
3,611 |
|
3,790 |
|
11,205 |
|
11,503 |
|
||
Other income |
- |
|
(1 |
) |
(60 |
) |
(2 |
) |
||
Operating netback |
11,485 |
|
11,118 |
|
35,271 |
|
32,825 |
|
||
Netback from operations per BOE |
40.01 |
|
43.28 |
|
42.48 |
|
42.48 |
|
Adjusted EBITDA is calculated as net income before interest, taxes, depletion and depreciation and other non-cash and non-operating gains and losses. The Company considers this a key measure as it demonstrates its ability to generate cash from operations necessary for future growth excluding non-cash items, gains and losses that are not part of the normal operations of the Company and financing costs. The following is the reconciliation of the non-GAAP measure adjusted EBITDA:
(US |
Three months ended
|
Nine months ended
|
|||||||
2024 |
2023 |
2024 |
2023 |
||||||
Net income |
5,066 |
|
2,319 |
|
|
12,472 |
|
14,483 |
|
Income tax expense |
1,646 |
|
- |
|
|
4,288 |
|
- |
|
Depletion and depreciation expense |
3,611 |
|
3,790 |
|
|
11,205 |
|
11,503 |
|
Accretion expense |
46 |
|
40 |
|
|
135 |
|
129 |
|
Interest expense |
839 |
|
651 |
|
|
2,567 |
|
1,511 |
|
Unrealized (gain) loss on commodity contracts |
(1,341 |
) |
2,579 |
|
|
(871 |
) |
412 |
|
Stock based compensation |
268 |
|
157 |
|
|
807 |
|
531 |
|
Other income |
- |
|
(1 |
) |
(60 |
) |
(2 |
) |
|
Foreign currency (gain) loss |
1 |
|
1 |
|
3 |
|
11 |
|
|
Adjusted EBITDA |
10,136 |
|
9,536 |
|
30,546 |
|
28,578 |
|
PRODUCT TYPE DISCLOSURE
This news release includes references to sales volumes of "oil", "natural gas", and “barrels of oil equivalent” or “BOEs”. “Oil” refers to light crude oil and medium crude oil combined, and "natural gas" refers to shale gas, in each case as defined by NI 51-101. Production from our wells, primarily disclosed in this news release in BOEs, consists of mainly oil and associated wet gas. The wet gas is delivered via gathering system and then pipelines to processing plants where it is treated and sold as natural gas and NGLs.
CAUTIONARY STATEMENTS
In this news release and the Company’s other public disclosure:
(a) |
|
The Company's natural gas production is reported in thousands of cubic feet ("Mcfs"). The Company also uses references to barrels ("Bbls") and barrels of oil equivalent ("Boes") to reflect natural gas liquids and oil production and sales. Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 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. 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 on a 6:1 basis may be misleading as an indication of value. |
(b) |
|
Discounted and undiscounted net present value of future net revenues attributable to reserves do not represent fair market value. |
(c) |
|
Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a |
(d) |
|
The Company discloses peak and 30-day initial production rates and other short-term production rates. Readers are cautioned that such production rates are preliminary in nature and are not necessarily indicative of long-term performance or of ultimate recovery. |
Caution Regarding Forward-Looking Information
This release contains forward-looking information including information regarding the proposed timing and expected results of exploratory and development work including production from the Company's
Such forward-looking information is based on management’s expectations and assumptions, including that the Company's geologic and reservoir models and analysis will be validated, that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, that previous exploration results are indicative of future results and success, that expected production from future wells can be achieved as modeled and that declines will match the modeling, that future well production rates will be improved over existing wells, that rates of return as modeled can be achieved, that recoveries are consistent with management’s expectations, that additional wells are actually drilled and completed, that design and performance improvements will reduce development time and expense and improve productivity, that discoveries will prove to be economic, that anticipated results and estimated costs will be consistent with management’s expectations, that all required permits and approvals and the necessary labor and equipment will be obtained, provided or available, as applicable, on terms that are acceptable to the Company, when required, that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays or labor or contract disputes are encountered, that the development plans of the Company and its co-venturers will not change, that the demand for oil and gas will be sustained, that the Company will continue to be able to access sufficient capital through financings, credit facilities, farm-ins or other participation arrangements to maintain its projects, that the Company will continue in compliance with the covenants under its reserves-based loan facility and that the borrowing base will not be reduced, that funds will be available from the Company’s reserves based loan facility when required to fund planned operations, that the Company will not be adversely affected by changing government policies and regulations, social instability or other political, economic or diplomatic developments in the countries in which it operates and that global economic conditions will not deteriorate in a manner that has an adverse impact on the Company's business and its ability to advance its business strategy.
Forward-looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: any of the assumptions on which such forward-looking information is based vary or prove to be invalid, including that the Company’s geologic and reservoir models or analysis are not validated, anticipated results and estimated costs will not be consistent with management’s expectations, the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration and development projects or capital expenditures; the uncertainty of reserve and resource estimates and projections relating to production, costs and expenses, and health, safety and environmental risks including flooding and extended interruptions due to inclement or hazardous weather), the risk of commodity price and foreign exchange rate fluctuations, risks and uncertainties associated with securing the necessary regulatory approvals and financing to proceed with continued development of the Tishomingo Field, the Company or its subsidiaries is not able for any reason to obtain and provide the information necessary to secure required approvals or that required regulatory approvals are otherwise not available when required, that unexpected geological results are encountered, that completion techniques require further optimization, that production rates do not match the Company’s assumptions, that very low or no production rates are achieved, that the Company will cease to be in compliance with the covenants under its reserves-based loan facility and be required to repay outstanding amounts or that the borrowing base will be reduced pursuant to a borrowing base re-determination and the Company will be required to repay the resulting shortfall, that the Company is unable to access required capital, that funding is not available from the Company’s reserves based loan facility at the times or in the amounts required for planned operations, that occurrences such as those that are assumed will not occur, do in fact occur, and those conditions that are assumed will continue or improve, do not continue or improve and the other risks identified in the Company’s most recent Annual Information Form under the “Risk Factors” section, the Company’s most recent management's discussion and analysis and the Company’s other public disclosure, available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
With respect to estimated reserves, the evaluation of the Company’s reserves is based on a limited number of wells with limited production history and includes a number of assumptions relating to factors such as availability of capital to fund required infrastructure, commodity prices, production performance of the wells drilled, successful drilling of infill wells, the assumed effects of regulation by government agencies and future capital and operating costs. All of these estimates will vary from actual results. Estimates of the recoverable oil and natural gas reserves attributable to any particular group of properties, classifications of such reserves based on risk of recovery and estimates of future net revenues expected therefrom, may vary. The Company's actual production, revenues, taxes, development and operating expenditures with respect to its reserves will vary from such estimates, and such variances could be material. In addition to the foregoing, other significant factors or uncertainties that may affect either the Company’s reserves or the future net revenue associated with such reserves include material changes to existing taxation or royalty rates and/or regulations, and changes to environmental laws and regulations.
Although the Company has attempted to take into account important factors that could cause actual costs or results to differ materially, there may be other factors that cause actual results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The forward-looking information included in this release is expressly qualified in its entirety by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
About Kolibri Global Energy Inc.
Kolibri Global Energy Inc. is a North American energy company focused on finding and exploiting energy projects in oil and gas. Through various subsidiaries, the Company owns and operates energy properties in
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112226323/en/
For further information, contact:
Wolf E. Regener, President and Chief Executive Officer +1 (805) 484-3613
Email: investorrelations@kolibrienergy.com
Website: www.kolibrienergy.com
Source: Kolibri Global Energy Inc.
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