Kolibri Global Energy (KEI & KGEIF in US) Q1 Results - May 11

[dan_s]

Kolibri is hosting our next Houston luncheon on Tuesday, May 16.
They reported Q1 results that beat my forecast and I believe this small-cap has lots of upside for us.

FIRST QUARTER HIGHLIGHTS

> Average production for the first quarter of 2023 was 3,194 BOEPD, an increase of 203%
compared to first quarter of 2022 average production of 1,054 BOEPD. The production increase
is due to the additional production from the five wells in the 2022 drilling program. < Beat my forecast of 3,000 Boepd for Q1.

> Adjusted EBITDA was $11.4 million in the first quarter of 2023 compared to $2.8 million in the
first quarter of 2022. The increase was due to higher production partially offset by lower
average prices.

> Revenue, net of royalties was $14.2 million in the first quarter of 2023 compared to $5.5 million
for the first quarter of 2022, an increase of 158%. The increase was due to higher production
partially offset by lower average prices. < Beat my revenue forecast net of royalties of $11.6 million.

> Net income in the first quarter of 2023 was $7.9 million, compared to a net loss of $2.5 million
in the same period of 2022. The increase was due to higher production partially offset by lower
average prices. In addition, the Company had an unrealized gain on commodity contracts in the
first quarter of 2023 compared to an unrealized loss in the first quarter of 2022. < Beat my net income forecast of $3.8 million.

> Average netback from operations for the first quarter of 2023 was $43.67 per BOE, a decrease
of 11% from the prior year first quarter of $48.91 per BOE due to lower average prices. Netback
including commodity contracts for the first quarter of 2023 was $42.23 per BOE compared to
$36.88 in the first quarter of 2022, an increase of 15% from the prior year period. The increase
compared to the prior year was due to lower realized losses from commodity contracts in the
first quarter of 2023 compared to the first quarter of 2022.

> Production and operating expense per barrel averaged $6.04 per BOE in the first quarter of 2023
compared to $9.56 per BOE in the first quarter of 2022, a decrease of 37%. The decrease was
due to lower production taxes and increased production which reduced the per barrel fixed
costs. < My forecast for production and operating expenses was $8.00/boe.

> At March 31, 2023, the Company had $6.8 million of available borrowing capacity on the credit
facility. The Company is currently awaiting its next redetermination from the bank which is
expected to occur in the second quarter of 2023.

Kolibri’s President and Chief Executive Officer, Wolf Regener commented:
“We are pleased with the first quarter performance of the Company, which included production from
the three wells that were drilled at the end of 2022. Those wells far exceeded our management type
curve, as did all of our wells that were drilled in 2022. We started our 2023 drilling program with the
drilling of the first three wells, which we expect will further increase our production and cash flow. Both
the Barnes 8-2H (98% working interest) and the Barnes 8-3H (98% working interest) have been drilled
and cased, and the Barnes 8-1H (98% working interest) is currently being drilled. We expect to begin
fracture stimulation operations in late May 2023, with production expected to begin in June 2023.

“Average production for the first quarter of 2023 was 3,194 BOEPD, an increase of 203% compared to
first quarter of 2022 average production of 1,054 BOEPD. The production increase is due to the
additional production from the five wells in the 2022 drilling program.

“In the first quarter of 2023, we generated $11.4 million of adjusted EBITDA, compared to $2.8 million in
the first quarter of 2022, which was an increase of 305%. The increase was due to higher average
production of 203% partially offset by lower average prices of 16%.

“Net revenue increased by 158% in the first quarter of 2023 due to higher average production partially
offset by lower prices.

“Net income in the first quarter of 2023 was $7.9 million, compared to a net loss of $2.5 million in the
same period of 2022. The increase was due to higher production, partially offset by lower average
prices. In addition, the Company had an unrealized gain on commodity contracts in the first quarter of
2023 compared to an unrealized loss in the first quarter of 2022.

“Netback from operations(2) decreased to $43.67 per BOE in the first quarter of 2023 compared to
$48.91 per BOE in in the same period of 2022, a decrease of 11% due to lower average prices. Netback
including commodity contracts(2) for the first quarter of 2023 was $42.23 per BOE compared to $36.88 in
2022, an increase of 15% from the prior year period. The increase compared to the prior year was due
to lower realized losses from commodity contracts in the first quarter of 2023 compared to the first
quarter of 2022.

“Production and operating expense per barrel averaged $6.04 per BOE in the first quarter of 2023
compared to $9.56 per BOE in the first quarter of 2022, a decrease of 37%. The decrease was due to
lower production taxes and increased production which reduced the per barrel fixed costs.”
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You pay BIG BUCKS for your EPG membership so that I can find outstanding small-caps like this. If you live in the Houston area, I highly recommend that you attend next week's luncheon to meet the CEO, Wolf Regener.