Kolibri Global Energy Inc. Provides 2025 Guidance With a Forecasted Increase of More Than 35 Percent to Adjusted EBITDA and More Than 38 Percent to Average Production Over 2024 Guidance
THOUSAND OAKS, Calif.--(BUSINESS WIRE)--January 14, 2025--
Kolibri Global Energy Inc. (the "Company" or "Kolibri") (TSX: KEI, NASDAQ: KGEI) is providing 2025 guidance for its Tishomingo field in Oklahoma.
The Company is providing its forecasted guidance for 2025 as follows:
% Increase from 2025 Forecast 2024 Guidance Range -------------------------- -------------------- Average production 4,500 to 5,100 boepd 38% to 40% US$75 million to US$89 Revenue(1) million 32% to 44% US$58 million to US$71 Adjusted EBITDA(2) million 35% to 48% Capital expenditures US$48 million to US$53 million Net Debt at year end US$25 million to US$30 million Debt to EBITDA Ratio Below 1.0 (1) Assumptions include forecasted pricing for 2025 of WTI US$70/bbl, US$2.60 Henry Hub, and NGL pricing of US$28/boe and includes the impact of the Company's existing hedges. (2) Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled "Non-GAAP Measures" of this news release
The strategy of the Company for 2025 is to further build on the success we have had for the last few years. This includes continuing cash flow growth, developing the Company's reserves, returning capital to shareholders, and testing the economics of nonproven areas.
Based on the successful results of our first three 1.5-mile laterals, we have designed a new full field development plan consisting mainly of 1.5 and 2-mile laterals. The Company's current plan anticipates bringing nine wells on production this year. Kolibri plans to drill and complete four 1.5-mile lateral wells (100 percent working interest) from one pad in the second quarter, drill two additional 1.5-mile lateral wells in the second half of the year (99.9 percent working interest), and then fracture stimulate these wells together with the two 1-mile lateral Velin wells (96.7 percent working interest) that the Company had previously drilled.
The ninth planned well, the Forguson 17-20-3H well, will be drilled to test the economics of the Caney Formation on the Company's eastern acreage. Kolibri will operate and have a 46% working interest in this well, as a large integrated oil company has elected to participate and is expected to be drilled late in the 2(nd) quarter. The Caney target on the eastern side has similar characteristics and thickness as in the heart of Kolibri's proved acreage in the main part of the field, except that it is shallower.
Kolibri has approximately 3,000 net acres on its east side acreage. All of the eastern acreage is currently classified as contingent resources by Kolibri's independent reservoir engineering firm, as no well has been completed in the Caney on this acreage. If the Forguson well proves to be economic, in addition to adding cash flow, it can lead to many additional development locations for the Company.
Wolf Regener, President and CEO, commented, "We are excited to forecast another strong year of growth in 2025, which builds upon the tremendous growth we have already experienced in the last three years. The average production, revenue, and adjusted EBITDA guidance for 2025 again show significant growth from the 2024 forecast numbers, even with a US$70 WTI price assumption. The Company intends to continue repurchasing shares and has, to date, repurchased approximately 280,000 shares.
"The Company's strong balance sheet and our conservative price forecast allows us the ability to adjust the timing of the wells planned for the second half of 2025 based on the price of oil and the performance of the wells.
"I am also looking forward to testing the economics of our east side acreage as a successful Forguson well would add additional drilling locations and reserves. A successful drilling campaign on the east side acreage could add significant additional shareholder value.
"I'm very proud of our team's execution this past year. Our 1.5-mile lateral wells were drilled safely and quickly with an estimated all-in well cost averaging less than US$6.3 million per well. In addition, the wells we drilled in 2024 were almost all classified as possible locations by our independent reservoir engineering firm on our year end 2023 reserve report. We are looking forward to the new reserve report, which will incorporate the wells we drilled, including the longer laterals, and which we anticipate will lead to increases in our reserves value."
NON-GAAP MEASURES
Adjusted EBITDA is not a measure recognized under Canadian Generally Accepted Accounting Principles ("GAAP") and does not have any standardized meaning prescribed by IFRS. Management of the Company believes that Adjusted EBITDA is relevant for evaluating returns on the Company's project as well as the performance of the enterprise as a whole. Adjusted EBITDA may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to similar non-GAAP measures as reported by such organizations. Adjusted EBITDA should not be construed as an alternative to net income, cash flows related to operating activities, working capital, or other financial measures determined in accordance with IFRS as an indicator of the Company's performance.
An explanation of how Adjusted EBITDA provides useful information to an investor and the purposes for which the Company's management uses Adjusted EBITDA 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 news release.
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:
Three months ended Nine months ended (US $000) September 30, 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 ========= ====== ======== =======
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 and gas. 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.
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: The references to barrels of oil equivalent ("Boes") reflect natural gas, natural gas liquids and oil. 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. 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.
(MORE TO FOLLOW) Dow Jones Newswires
January 14, 2025 06:45 ET (11:45 GMT)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.