Kolibri Global Energy Inc. Reports Strong Q1 Earnings

Kolibri Global Energy Inc. ((TSE:KEI)) has held its Q1 earnings call. Read on for the main highlights of the call.

Kolibri Global Energy Inc. recently held its earnings call, revealing a robust performance marked by significant production increases, income growth, and operational efficiencies. Despite slight declines in netback due to lower average prices, the company’s strategic focus on drilling efficiency and shareholder returns underscores a positive outlook for the future.

Production Increase

Kolibri Global Energy reported a remarkable 23% increase in production over the first quarter of 2024, reaching 4,077 barrels of oil equivalent (BOE) per day compared to 3,305 BOE per day in the prior year. This substantial growth highlights the company’s successful operational strategies and ability to enhance output.

Net Income Growth

The company achieved a 72% increase in net income, totaling $5.8 million, with basic earnings per share (EPS) of $0.16. This is a significant rise from $3.3 million and $0.09 per share in the prior year quarter, reflecting strong financial performance and effective cost management.

Adjusted EBITDA Increase

Adjusted EBITDA saw a 24% increase, reaching $12.8 million from $10.4 million in the prior year quarter. This growth was driven by higher revenues, showcasing the company’s ability to leverage increased production for financial gain.

Operating Expense Reduction

Operating expenses were reduced by 15% to $7.07 per BOE, down from $8.36 per BOE in the prior year first quarter. This reduction in costs underscores Kolibri’s focus on operational efficiency and cost control.

Drilling Efficiency Improvements

Kolibri achieved a 25% reduction in drilling times for its latest 1.5-mile lateral wells, resulting in cost savings and improved internal rates of return. These improvements in drilling efficiency are expected to yield further financial benefits.

Capital Return to Shareholders

The company plans to continue returning capital to shareholders through share buybacks, demonstrating its commitment to delivering value to its investors.

Netback Decline

Netback from operations experienced a slight decline to $37.55 per BOE compared to $38.94 per BOE in the prior year quarter, primarily due to lower average prices. Despite this, the company maintained strong overall financial performance.

Lower Average Prices

Average prices were down by 6%, which partially offset the revenue gains from increased production. However, the company’s strategic initiatives helped mitigate the impact of this decline.

Forward-Looking Guidance

Kolibri Global Energy’s guidance for the future remains optimistic, with expectations for further production increases upon the completion of new wells later in the quarter. The company continues to focus on reducing operating expenses and improving drilling efficiencies, which are anticipated to drive additional financial savings and enhance shareholder value.

In conclusion, Kolibri Global Energy Inc.’s earnings call highlighted a strong quarter with impressive production and income growth, alongside operational efficiencies. Despite challenges from lower average prices, the company’s strategic focus on drilling efficiency and shareholder returns positions it well for continued success.