Kolibri Global Energy (KEI & KGEIF in US) Update

[dan_s]

I hope all of you took the time to read the profile on Kolibri Global Energy that we sent out on Wednesday morning.

I believe it has the "running room" to be a big winner for us this year, which is why I added it to our Small-Cap Growth Portfolio.

The stock is trading this morning at $3.74Cdn, which compares to my CURRENT VALUATION of $6.20Cdn.

Ignore the fact that it trades on the TSX. KEI is a 100% American company. If their Q4 results and guidance for 2023 confirm my forecast model assumptions, there is a lot more upside than my $6.20 valuation. It trades in the U.S. as KGEIF.

They had 200 BOPD hedged at an average price of $102.88US/bbl in Q4, so their Q4 results will include a big gain on their hedge book.

KEI is way off the Wall Street Gang's radar screen. You pay me the Big Bucks to find small-caps like this.
In U.S. dollars:
> 2022 results should be Revenues of $44.7 million, Net Income of $0.59/share, Operating Cash Flow of $0.75/share.
> My 2023 forecast: Revenues of $81 million, Net Income of $1.07/share, Operating Cash Flow of $1.70/share. < Based on production of 3,500 Boepd, which now looks extremely conservative based on their recent well results.

[ChuckGeb]

How much running room does Kolibri have? You indicate they have 17,000 acres. Do you know what WI and NRI is? Net locations?

[dan_s]

The answers are in the profile we sent out on Wednesday.

I forgot to post the new profile and forecast model for KEI to the EPG website (my bad). I just posted them, so you can find them under the Small-Cap tab.

What I like the most about this company is their significant "running room" in the SCOOP play. Central Oklahoma has outstanding market access with ample pipeline capacity that takes their oil directly to the Cushing Hub.