Kolibri Global Energy (KGEI) Q1 Results - May 14

[dan_s]

FIRST QUARTER HIGHLIGHTS

Average production for the first quarter of 2025 was 4,077 BOEPD, an increase of 23% compared to first quarter of 2024 average production of 3,305 BOEPD. The production increase is due to the additional production from the wells that were drilled and completed in 2024 < Lower than my forecast of 4,200 Boepd, but still very good.

Net income for the first quarter of 2025 was $5.8 million, an increase of 72% compared to the first quarter of 2024 net income of $3.3 million. The increase was due to higher revenue from the increase in production and lower realized and unrealized commodity contract losses compared to the prior year first quarter partially offset by higher income tax expense < Net income compares to my forecast of $4.9 million. It also beat First Call EPS forecast.

Revenue, net of royalties was $16.4 million in the first quarter of 2025 compared to $14.3 million for the first quarter of 2024 due to higher production partially offset by lower average prices

Adjusted EBITDA was $12.8 million in the first quarter of 2025 compared to $10.4 million in the first quarter of 2024, an increase of 24% due to primarily to higher revenue

Production and operating expense per barrel averaged $7.07 per BOE in the first quarter of 2025 compared to $8.36 per BOE in the first quarter of 2024. The decrease was due to natural gas and NGL processing costs of $0.6 million in the first quarter of 2024 that related to prior years as the gas purchaser reassessed prior year gathering and processing costs

Average netback from operations for the first quarter of 2025 was $37.55 per BOE, a decrease of 4% from the prior year first quarter of $38.94 per BOE. Netback including commodity contracts for the first quarter of 2025 was $37.55 per BOE compared to $37.81 per BOE in the first quarter of 2024, a decrease of 1% from the prior year period. The decreases were due to lower average prices

At March 31, 2025, the Company had $22.5 million of available borrowing capacity on the credit facility.

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

“We are very happy with the first quarter performance of the Company as our net income increased by 72% to $5.8 million ($0.16 per basic share) in the first quarter of 2025. We generated adjusted EBITDA of $12.8 million in the first quarter of 2025, which was a 24% increase from the prior year first quarter. Production in the first quarter of 2025 continued to grow, increasing 23% to 4,077 BOEPD due to the wells we drilled in 2024.

Our field operations team are drilling the longer lateral wells very quickly, reducing our costs per well, which further improves our internal rates of return. We are now drilling 1.5-mile lateral wells in less time than we were drilling 1-mile lateral wells last year.

“Our four Lovina wells (100% working interest) have already been drilled, and completion operations are expected to start in late May, with production anticipated at the start of the third quarter. As previously announced, we were able to reduce the average drilling time on the four 1.5 mile lateral Lovina wells by 25% from the previous 1.5 mile laterals that were drilled last year.

The Forguson 17-20-3H well (46% working interest), where we are testing the economics of our east side acreage, was successfully drilled even faster than our Lovina 1.5 mile laterals and is also expected to begin production in the third quarter.” < The JV partner is ExxonMobil. If successful, this well should significantly increase Kolibri's proved reserves making it even more of Screaming Takeover Target.
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Kolibri is a prime example of (a) why you pay me the Big Bucks to tell you about small-caps with significant upside potential before the Wall Street Gang figures them out and (b) why good well results can significantly increase the value of a small-cap. Kolibri has SIGNIFICANT "Running Room" in their Tishomingo Field and (more important to shareholders) Exxon knows it. Exxon holds the deep rights within the Tishomingo Field and they market all of Kolibri's production.

I will update my forecast/valuation model this evening and post it to the EPG website. My previous valuation was $11.00 per share.