Kolibri Global Energy (KEI & KGEIF) Q2 Results - Aug 4

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KOLIBRI GLOBAL ENERGY ANNOUNCES NET INCOME OF $4.3 MILLION AND EPS OF $0.12 PER SHARE FOR SECOND QUARTER OF 2023

THOUSAND OAKS, CALIFORNIA, August 3, 2023 -
All amounts are in U.S. Dollars unless otherwise indicated:


SECOND QUARTER HIGHLIGHTS

Average production for the second quarter of 2023 was 2,415 BOEPD, an increase of 25% compared to the second quarter of 2022 average production of 1,928 BOEPD. This increase is due to production from the Emery 17-2H, the Brock 9-3H and the Glenn 16-3H wells which started production at the end of 2022 and the Barnes 8-1H, Barnes 8-2H and Barnes 8-3H wells which started production in the last week of June 2023.

The production increases were partially offset by existing wells that were shut-in for two to four weeks of the quarter while completion operations were underway. Approximately 800 BOEPD was shut-in for two weeks and 300 BOEPD was shut-in for four weeks during the second quarter

Adjusted EBITDA was $7.6 million in the second quarter of 2023 compared to $8.6 million in the second quarter of 2022, a decrease of 12%. The decrease was due to a decrease in average prices of 37% partially offset by a 25% increase in production

Revenue, net of royalties was $10.1 million in the second quarter of 2023 compared to $12.4 million for second quarter of 2022, a decrease of 19%, due to lower average prices partially offset by higher production

Net income in the second quarter of 2023 was $4.3 million and EPS was $0.12/share compared to $7.0 million and EPS of $0.20/share in the second quarter of 2022. The decrease was due to lower average prices and higher depletion and depreciation expense partially offset by higher production and lower realized losses on commodity contracts compared to the prior year second quarter

Average netback from operations for the second quarter of 2023 was $39.97/boe, a decrease of 37% from the prior year second quarter due to higher average prices in 2022. Netback including commodity contracts(2) for the second quarter of 2023 was $38.60/boe which was 28% lower than the prior year second quarter

Production and operating expenses per barrel averaged $6.04 per BOE in the second quarter of 2023 compared to $7.77 per BOE in the second quarter of 2022, a decrease of 22%. The decrease was due to increased production which reduced the per barrel fixed costs and lower production taxes due to a decrease in prices

At June 30, 2023, the Company had $21.8 million of available borrowing capacity on its credit agreement and its net debt outstanding was $16.8 million

Kolibri’s President and Chief Executive Officer, Wolf Regener commented:

“We are extremely excited about the execution of our 2023 drilling program as we continue to make progress in maximizing the development of our Tishomingo field. The early performance of the Barnes 8-1H and Barnes 8-2H wells is on track to confirm that we can economically downspace to six Caney wells per section and the early results of the Barnes 8-3H T-zone well indicate that T-zone wells are also likely to be economic.

“We are now accelerating our development plans by drilling five continuous wells to close out our 2023 drilling program. We are currently drilling the Barnes 7-5H well, to be followed immediately by the Barnes 7-4H well, which are both located in the lower Caney. We will then begin drilling the next three well pad, consisting of two lower Caney wells and one T-zone well, while we simultaneously fracture stimulate the Barnes 7-5H and Barnes 7-4H wells. We will continue to fund our drilling program primarily from operating cash flow but expect our net debt to increase slightly at year-end as we manage our working capital from the accelerated drilling schedule.

“Average production for the second quarter of 2023 was 2,415 BOEPD, an increase of 25% compared to the second quarter of 2022 average production of 1,928 BOEPD due to the five wells that were drilled in the prior year partially offset by the shut-in wells during completion operations. At the end of the second quarter, our exit rate production was about 3,400 BOEPD. This does not include about 300 BOEPD of production that was either shut-in or was in the process of dewatering after being impacted by the completion operations.

“Adjusted EBITDA was $7.6 million in the second quarter of 2023 compared to $8.6 million in the second quarter of 2022, a decrease of 10%. The decrease was due to a 37% decrease in average prices, partially offset by a 25% increase in production.

“Net revenue decreased by 19% to $10.1 million in the second quarter of 2023 compared to $12.4 million for the second quarter of 2022 due to the average price decline partially offset by higher production. We expect revenue to increase in the third quarter due to production from the three recently completed wells in addition to production from the Barnes 7-4H and Barnes 7-5H wells which we anticipate beginning before the end of the third quarter.

“Net income in the second quarter of 2023 was $4.3 million with EPS of $0.12/share compared to $7.0 million with EPS of $0.20/share in the second quarter of 2022. The decrease was due to lower average prices and higher depletion and depreciation expense partially offset by higher production and lower realized losses on commodity contracts compared to the prior year second quarter.

“Netback from operations for the second quarter of 2023 was $39.97/boe, a decrease of 37% from the prior year second quarter due to higher average prices in 2022. Netback including commodity contracts(2) for the second quarter of 2023 was $38.60/boe, which was 28% lower than the prior year second quarter.

“Operating expenses per barrel averaged $6.04 per BOE in the second quarter of 2023 compared to $7.77 per BOE in the second quarter of 2022, a decrease of 22%. The decrease was due to increased production which reduced the per barrel fixed costs and lower production taxes due to a decrease in prices.”