Canacol Energy Ltd. Reports Net Income of $13.9 Million For The Second Quarter of 2025

Core Viewpoint - Canacol Energy Ltd. reported its financial and operational results for the three and six months ended June 30, 2025, highlighting a decrease in revenues and production volumes, but an increase in net income due to a non-cash deferred income tax recovery [1][6][9]. Financial Highlights - Total revenues for the three months ended June 30, 2025, decreased by 27% to $64.8 million, and for the six months, it decreased by 17% to $137.5 million compared to the same periods in 2024 [6][9]. - Adjusted EBITDAX fell by 35% to $47.4 million for the three months and by 23% to $103.6 million for the six months ended June 30, 2025 [6][9]. - Adjusted funds from operations also decreased by 35% to $36.9 million for the three months and by 23% to $76.2 million for the six months [6][9]. - Net income for the three months was $13.9 million, compared to a net loss of $21.3 million in 2024, and for the six months, it was $45.7 million compared to a loss of $17.6 million in 2024 [6][9]. - Net cash capital expenditures increased by 69% to $57.1 million for the three months and by 54% to $107.5 million for the six months [6][9]. Operational Highlights - Natural gas and LNG production for the three months ended June 30, 2025, decreased by 24% to 124,345 Mcfpd, and for the six months, it decreased by 19% to 129,033 Mcfpd [10]. - Realized contractual natural gas sales volume decreased by 25% to 119.0 MMcfpd for the three months and by 20% to 123.8 MMcfpd for the six months [6][10]. - The Corporation's current natural gas sales are approximately 138 MMcfpd, with new exploration wells Borbon-1 and Zamia-1 producing around 8 MMcfpd each, and Fresa-4 producing approximately 9 MMcfpd [4][6]. Management Changes - The Corporation announced the resignation of Mr. William Satterfield, Senior Vice President of Exploration, effective August 7, 2025 [8].