Canacol Energy Ltd. Reports Net lncome of $18.7 Million For The Third Quarter of 2025

Core Viewpoint - Canacol Energy Ltd. reported its financial and operational results for the three and nine months ended September 30, 2025, highlighting a decrease in revenues and production volumes, but an increase in net income due to a deferred income tax recovery [1][5]. Financial Highlights - Total revenues for the three months ended September 30, 2025, decreased by 21% to $69.5 million, and for the nine months, it decreased by 18% to $207.0 million compared to the same periods in 2024 [5][6]. - Adjusted EBITDAX decreased by 43% to $49.1 million for the three months and by 31% to $152.7 million for the nine months compared to 2024 [5][6]. - Adjusted funds from operations decreased by 20% to $46.1 million for the three months and by 22% to $122.2 million for the nine months compared to 2024 [5][6]. - Net income increased to $18.7 million for the three months and $64.3 million for the nine months, compared to $10.3 million and a net loss of $7.3 million in 2024, respectively [5][6]. - Net cash capital expenditures increased by 63% to $39.1 million for the three months and by 57% to $146.6 million for the nine months compared to 2024 [5][6]. Operational Highlights - Natural gas and LNG production decreased by 23% to 127.5 Mcfpd for the three months and by 20% to 128.5 Mcfpd for the nine months compared to 2024 [6][7]. - Realized contractual natural gas sales volume decreased by 24% to 121.7 Mcfpd for the three months and by 21% to 123.1 Mcfpd for the nine months compared to 2024 [5][6]. - The Corporation abandoned the Corno-1 and Ramsay-1 exploration wells due to non-commercial quantities of gas, with plans to drill the Kantana-2 development well and the Monstera-1 exploration well by year-end 2025 [3]. Liquidity and Capital Resources - The Corporation is in discussions with various banking groups to address ongoing liquidity issues and will communicate any material developments [4]. - As of September 30, 2025, the Corporation had $36.5 million in cash and cash equivalents and a working capital deficit of $29.9 million [5][6].