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Kolibri Global Energy Announces Increases of 118% in Net Income and 100% in EPS for Third Quarter 2024

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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.

Positive
  • 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
Negative
  • 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 $5.1 million net income, up 118% year-over-year and EPS of $0.14. Key highlights include production growth of 11% to 3,032 BOEPD and Adjusted EBITDA of $10.1 million. The company's operational efficiency is evident in the 10% reduction in per-barrel operating expenses to $6.63.

The balance sheet remains solid with $19.0 million available borrowing capacity and stable $50 million borrowing base. The company's transition to longer lateral wells, particularly the promising Alicia Renee wells, suggests potential for continued production growth and operational efficiency improvements.

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 11% production increase and 10% decrease in operating costs per barrel demonstrate successful execution of the company's development strategy.

The shift to longer laterals represents a strategic evolution that could significantly enhance well economics and field development efficiency. The netback from operations of $40.01/boe, despite lower commodity prices, indicates robust operational efficiency.

THOUSAND OAKS, Calif.--(BUSINESS WIRE)-- All amounts are in U.S. Dollars unless otherwise indicated:

THIRD QUARTER 2024 HIGHLIGHTS

  • Net income for the third quarter of 2024 was $5.1 million and EPS was $0.14/share compared to net income of $2.3 million and EPS of $0.07/share for the third quarter of 2023, an increase of 118% and 100%, respectively. The increase was mainly due to an unrealized gain on commodity contracts of $1.3 million that was recorded in the third quarter of 2024 compared to an unrealized loss on commodity contracts of $2.6 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
  • 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 $10.1 million in the third quarter of 2024 compared to $9.5 million in the third quarter of 2023, an increase of 6%. The increase was primarily due to an increase in production of 11%, partially offset by a decrease in average prices of 9%
  • Revenue, net of royalties was $13.0 million in the third quarter of 2024 compared to $12.7 million for the third quarter of 2023, which was an increase of 2%, as production increased by 11% which was mostly offset by a decrease in average prices of 9%
  • Production and operating expenses per barrel averaged $6.63 per BOE in the third quarter of 2024 compared to $7.34 per BOE in the third quarter of 2023, a decrease of 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 $40.01/boe, a decrease of 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 $39.95 per boe, a decrease of 4% from the prior year third quarter
  • In October 2024, the credit facility was redetermined with the same $50 million borrowing base. At September 30, 2024, the Company had $19.0 million of available borrowing capacity on its credit agreement and its net debt outstanding was $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 11% during the quarter and our net income more than doubled. We expect continued growth in the fourth quarter as we enter into a new phase of the Company’s development where we believe the most economic strategy is to drill longer laterals. The three Alicia Renee wells, our first 1.5-mile lateral wells, are still flowing back the fracture stimulation fluid. The wells are still cleaning up, but over the last five days, the Alicia 2-11-3H well has averaged 1,049 Barrels of oil equivalent per day (“BOEPD”) (720 barrels of oil per day (“BOPD”)), the Alicia 2-11-4H well has averaged 845 BOEPD (590 BOPD) and the Alicia 2-11-5H well has averaged 630 BOEPD (435 BOPD).”

 

Third Quarter

 

First Nine Months

 

 

2024

 

 

2023

 

%

 

2024

 

 

2023

 

%

 

Net Income:

$ Thousands

$

5,066

 

$

2,319

118%

$

12,472

$

14,396

 

(14)%

$ per basic common share

$

0.14

 

$

0.07

 

100%

$

0.35

 

$

0.41

 

(15)%

$ per diluted shares

$

0.14

 

$

0.06

 

133%

$

0.35

 

$

0.40

 

(13)%

 

 

Capital Expenditures

$

9,798

 

$

17,247

 

(43)%

$

21,545

 

$

37,177

 

(42)%

 

 

Average Production (Boepd)

 

3,032

 

 

2,737

 

11%

 

3,154

 

 

2,780

 

13%

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
2023

 

 

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 $16.5 million in the third quarter of 2024 versus $16.4 million in the third quarter of 2023. Oil gross revenues totaled $15.4 million in the third quarter of 2024 versus $15.3 million in the third quarter of 2023. Oil revenues increased 1% as oil production increases of 8% were offset by average oil price decreases of 7%. Natural gas revenues decreased by $0.2 million or 45% as natural gas prices decreased 55% partially offset by production increases of 24%. Natural gas liquids (NGLs) revenues increased $0.2 million or 21% as NGL prices increased 4% and production increased 17%.

Average third quarter 2024 production per day increased 295 boepd or 11% from the third quarter 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.

Production and operating expenses decreased to $1.5 million in the third quarter of 2024, a decrease of 6%. Operating expenses averaged $6.63 per BOE for the third quarter of 2024 compared to $7.34 per BOE for the third quarter of 2023. The decrease was due to increased production which reduced the per barrel fixed costs.

General and administrative expenses increased $0.2 million or 14% in the third quarter of 2024 due to higher accounting fees and public company costs that resulted from listing on the NASDAQ stock market as well as higher payroll and director costs and higher investor relations and marketing costs in 2024.

Finance income increased by $1.3 million in the third quarter of 2024 compared to the prior year third quarter due to realized gains on commodity contracts in the third quarter of 2024.

Finance expense decreased by $2.8 million in the third quarter of 2024 due to unrealized losses on commodity contracts of $2.5 million in the prior year third quarter.

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 $30.5 million for the nine months ended September 30, 2024 compared to $28.6 million for the prior year period, an increase of 7%. The increase was due to a 13% increase in production partially offset by a decrease in average prices of 2% compared to the same period in 2023.
  • Revenue, net of royalties was $41.2 million in the first nine months of 2024 compared to $37.2 million for the first nine months of 2023, which was an increase of 11%, as production increased by 13% partially offset by a decrease in average prices of 2%
  • Net income for the first nine months of 2023 was $12.5 million and Basic EPS was $0.35/share compared to net income of $14.5 million and Basic EPS of $0.41/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
  • Average netback from operations(2) for the first nine months of 2024 was $39.78/boe, a decrease of 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 $39.09/boe which was 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 $52.4 million in the first nine months of 2024 versus $47.2 million in the first nine months of 2023, an increase of 11%. Oil revenues were $48.6 million in the first nine months of 2024 versus $43.5 million in the same period of 2023, an increase of 12%, as average production increased by 10% and average in oil prices increased by 1%. Natural gas revenues decreased $0.6 million or 44% due to an average natural gas price decrease of 54% partially offset by a 22% increase in natural gas production. NGL revenue increased $0.7 million or 33% due to an increase in NGL production of 25% and an average NGL price increase of 6% in the first nine months of 2024 compared to the comparable prior year period.

Average production per day for the first nine months of 2024 increased 13% to 3,154 boepd from the prior year comparable period. 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.

Production and operating expenses increased to $5.9 million or 38% in the first nine months of 2024 compared to the prior year period. Production and operating expenses per barrel averaged $7.84 per BOE in the first nine months of 2024 compared to $6.47 per BOE in the first nine months of 2023. The increase was mainly due to natural gas and NGL processing costs of $0.8 million related to prior years as the purchaser reassessed prior year gathering and processing costs in 2024. Under the terms of the Company’s contract with the purchaser, adjustments to fee billings over the last 24 months are permissible. The adjustments received to date cover 2022 and 2023. The increase is also due to having more wells on production and an increase in water hauling costs in 2024 compared to the prior year.

General and administrative expenses increased $1.0 million or 32% in the first nine months of 2024 due to higher accounting fees and public company costs that resulted from listing on the NASDAQ stock market as well as higher payroll and director costs and higher investor relations and marketing costs in 2024.

Finance income increased by $0.9 million in the first nine months of 2024 due to unrealized gains on financial commodity contracts recorded in 2024.

Finance expense increased $0.1 million in the first nine months of 2024 due to higher interest expense partially offset by lower realized losses on commodity contracts.

KOLIBRI GLOBAL ENERGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited, Expressed in Thousands of United States Dollars)

($000 except as noted)

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 United States dollars, except per share amounts)

($000 except as noted)

 

 

 

 

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 United States dollars, except as noted)

 

 

 

 

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 $000)

Three months ended
September 30,

Nine months ended
September 30,

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 $000)

Three months ended
September 30,

Nine months ended
September 30,

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 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

(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 Tishomingo field, Oklahoma acreage, expectations regarding cash flow and continued growth in the fourth quarter, the Company’s reserves based loan facility, including scheduled repayments, expected hedging levels and the Company’s strategy and objectives. The use of any of the words “target”, “plans”, "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements.

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 the United States. The Company continues to utilize its technical and operational expertise to identify and acquire additional projects in oil, gas and clean and sustainable energy. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol KEI and on the NASDAQ under the stock symbol KGEI.

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.

FAQ

What was Kolibri Global Energy's (KGEI) net income in Q3 2024?

Kolibri Global Energy reported net income of $5.1 million in Q3 2024, representing a 118% increase from $2.3 million in Q3 2023.

What was KGEI's average production in Q3 2024?

KGEI's average production in Q3 2024 was 3,032 BOEPD, an 11% increase from 2,737 BOEPD in Q3 2023.

How much available borrowing capacity did KGEI have as of September 30, 2024?

As of September 30, 2024, KGEI had $19.0 million of available borrowing capacity on its credit agreement.

What was KGEI's Adjusted EBITDA for Q3 2024?

KGEI's Adjusted EBITDA was $10.1 million in Q3 2024, a 6% increase from $9.5 million in Q3 2023.

Kolibri Global Energy Inc.

NASDAQ:KGEI

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Oil & Gas E&P
Energy
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United States of America
Thousand Oaks