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][8]. Financial Highlights - Total revenues for the three months ended June 30, 2025, decreased by 27% to $64.8 million compared to $88.3 million in 2024, and for the six months, revenues decreased by 17% to $137.5 million from $166.0 million [6][8]. - Adjusted EBITDAX fell by 35% to $47.4 million for the three months and by 23% to $103.6 million for the six months compared to the same periods in 2024 [6][8]. - Adjusted funds from operations decreased by 35% to $36.9 million for the three months and by 23% to $76.2 million for the six months compared to 2024 [6][8]. - Net income for the three months ended June 30, 2025, was $13.9 million, a recovery from a net loss of $21.3 million in 2024, and for the six months, net income was $45.7 million compared to a loss of $17.6 million in 2024 [6][8]. Operational Highlights - Natural gas sales volumes decreased by 25% to 119.0 MMcfpd for the three months and by 20% to 123.8 MMcfpd for the six months compared to 2024 [6][9]. - The company successfully drilled one exploration well (Borbon-1) and one appraisal well (Fresa-4) in June 2025, with both wells tied into production facilities by the end of July 2025 [3][4]. - Current natural gas sales are approximately 138 MMcfpd, with new wells expected to contribute additional production by mid-August 2025 [4]. Sustainability and ESG Reporting - Canacol presented its 2024 ESG and TCFD Reports during the quarter ended June 30, 2025, which are available on the company's website [5]. Management Changes - The company announced the resignation of Mr. William Satterfield, Senior Vice President of Exploration, effective August 7, 2025 [7].