Kolibri Global Energy (KGEI) Conference Summary Company Overview - **Company Name**: Kolibri Global Energy - **Ticker Symbols**: KEI (Toronto Stock Exchange), KGEI (NASDAQ) - **Industry**: Oil and Gas Production - **Location**: Oklahoma, specifically the Tishomingo Shale Oil Field - **Market Capitalization**: Approximately $145 million USD with 35.4 million shares outstanding [4][4] - **Debt**: Net debt at the end of the last quarter was $42 million, with a debt to adjusted EBITDA ratio around 1 [4][4] Key Financial Metrics - **Proved Reserves**: Over 40 million barrels of oil equivalent, with a 24% increase in 2024 due to drilling activities [3][3] - **Production Mix**: Oil production increased to 66% of total production, with September's mix reaching 71% [7][7] - **Average Production Guidance for 2025**: Expected to be between 4,000-4,400 BOE per day, representing a 15%-27% increase year-over-year [10][10] - **Adjusted EBITDA**: Expected to grow by 4%-14% despite lower oil prices [10][10] - **Capital Expenditures (CapEx)**: Estimated at $55 million-$58 million for the year [10][10] Operational Highlights - **Drilling Efficiency**: Transitioned from one-mile laterals to mile-and-a-half and two-mile laterals, improving access to reservoirs and potentially increasing production rates [12][12][17][17] - **Production Growth**: Continuous drilling program with new wells expected to come online in December, contributing to production growth [9][9][10][10] - **Operating Expenses**: Positioned at the lower end compared to peers, contributing to better netbacks [19][19][20][20] Strategic Insights - **Hedging Strategy**: Utilizes costless collars and puts to protect cash flow against price declines [35][35] - **Debt Management**: Plans to reduce debt by $8 million-$10 million in the first quarter of 2026, while maintaining flexibility in drilling programs based on oil prices [36][36][38][38] - **Share Buybacks**: Approximately 570,000 shares repurchased, with plans to continue buybacks when advantageous [44][44] Market Outlook - **Oil Price Predictions**: Anticipates oil prices to recover to the high $60s to low $70s in the near future, despite current volatility [40][40] - **Production Sustainability**: Future production growth will depend on the number of wells drilled and performance of existing wells [25][25][27][27] Management and Governance - **Management Team**: Experienced leadership with extensive backgrounds in oil and gas operations, finance, and engineering [20][20][21][21] - **Board of Directors**: Composed of individuals with significant experience in the oil and gas sector, enhancing strategic decision-making [21][21][22][22] Additional Considerations - **Contingent Resources**: Exploration of additional formations such as the Sycamore and T Zone, which are not yet included in the reserve report [12][12][14][14] - **Regulatory Environment**: Company is navigating shareholder concerns regarding recent filings and maintaining compliance with regulatory requirements [41][41][42][42] This summary encapsulates the key points from the Kolibri Global Energy conference, highlighting the company's financial health, operational strategies, and market outlook.

Financial Data and Key Metrics Changes - APA Corporation reported consolidated net income of $347 million or $0.96 per diluted common share for Q1 2025, with adjusted net income of $385 million or $1.06 per share, reflecting a significant after-tax gain on debt extinguishment and a charge for deferred tax liability in the UK [19][20] - The company generated $126 million of free cash flow in the first quarter, with past due balances in Egypt at their lowest since the end of 2022 [20] Business Line Data and Key Metrics Changes - In the Permian, oil production was within guidance despite a larger-than-expected impact from downtime, with capital expenditures coming in below guidance due to improved drilling performance [6][14] - In Egypt, gas production exceeded guidance due to successful development programs, with an average realized gas price of $3.19, up from $2.97 in the previous quarter [20][28] - The North Sea operations also performed well, with volumes ahead of guidance driven by operational efficiency [7] Market Data and Key Metrics Changes - The company anticipates continued growth in gas volumes in Egypt, expecting to reach approximately 500 million cubic feet per day by year-end [28] - The average realized gas price is expected to increase steadily, reaching $3.8 in Q4 2025 [28] Company Strategy and Development Direction - APA is focused on cost reduction initiatives, targeting $130 million in realized savings for 2025 and an annualized run rate of $225 million by year-end [9][17] - The company is streamlining its portfolio, having signed an agreement to sell New Mexico Permian properties for $68 million, which will primarily be used for debt reduction [13][60] - The strategic shift towards gas drilling in Egypt is seen as economically favorable, especially with the new gas price agreement [16][94] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining free cash flow despite commodity price volatility, with a focus on operational efficiency and cost reductions [6][17] - The company is optimistic about the potential for further drilling efficiencies in the Permian, allowing for reduced rig counts while maintaining production levels [14][39] - Management highlighted the importance of balancing growth with shareholder returns and strengthening the balance sheet [17] Other Important Information - The company has made significant progress in reducing controllable spending, particularly in the Permian, with an average savings of $800,000 per well achieved [23][24] - Changes in upstream capital definitions were made, with cash ARO expenses and leasehold acquisitions now treated as separate line items [31] Q&A Session Summary Question: Cost savings achievements and future targets - Management confirmed that they are ahead of schedule on cost savings, with expectations to potentially raise targets in the future [35][36] Question: Rig count and production maintenance - Management indicated that they can maintain production flat with 6.5 rigs and are confident in further efficiency gains [39] Question: Asset sale motivations - The sale of New Mexico assets was strategic, allowing the company to focus on core Texas operations and reduce debt [60][61] Question: LOE inflationary pressures - Management acknowledged challenges in achieving LOE savings due to inflation but remains optimistic about future reductions [64][65] Question: Gas development in Egypt - Management confirmed a shift towards gas drilling in Egypt, with oil production expected to remain stable due to condensate from gas production [94][95] Question: Buyback strategy amidst market conditions - Management stated that while they are focused on debt reduction, they remain open to opportunistic buybacks if conditions allow [104]

Financial Data and Key Metrics Changes - APA Corporation reported consolidated net income of $347 million or $0.96 per diluted common share for Q1 2025, with adjusted net income of $385 million or $1.06 per share [18] - Free cash flow generated in Q1 was $126 million, with past due balances in Egypt at their lowest since the end of 2022 [19] - The company increased its 2025 savings target from $60 million to $130 million, with an annualized run rate savings target of $225 million by year-end [8][34] Business Line Data and Key Metrics Changes - In the Permian, oil production was within guidance despite a larger-than-expected impact from downtime, with capital expenditures below guidance due to improved drilling performance [5] - In Egypt, gas production exceeded guidance due to successful development programs, with an average realized gas price of $3.19, up from $2.97 in Q4 2024 [19][15] - The North Sea operations saw volumes ahead of guidance, driven by strong operational efficiency [6] Market Data and Key Metrics Changes - The company anticipates gross gas volumes in Egypt to grow to 470 million cubic feet per day in Q2, with expectations to exit the year around 500 million cubic feet per day [14][27] - The average realized gas price is expected to increase to $3.8 in Q4, reflecting a strong performance in the gas market [27] Company Strategy and Development Direction - APA Corporation is focused on cost reduction initiatives, aiming for top quartile operational performance in the Permian and sustainable reductions in controllable spend [8][10] - The company plans to allocate proceeds from the sale of New Mexico Permian properties, which contributed approximately 5,000 barrels per day, primarily towards debt reduction [12][60] - The strategic shift towards gas drilling in Egypt is seen as economically favorable, especially with the new gas price agreement [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining production levels in the Permian with reduced rig counts, citing improved drilling efficiencies [13][38] - The company is positioned to respond to oil price fluctuations, with a threshold for significant cuts set at WTI prices dropping into the low fifties [98] - Management highlighted the importance of balancing growth with shareholder returns and strengthening the balance sheet [16] Other Important Information - The company has made significant strides in cost reduction, particularly in the Permian, capturing $800,000 in cost savings per well [21] - A new CFO, Ben Rogers, was appointed, emphasizing a continued focus on managing the cost structure [11] Q&A Session Summary Question: Insights on cost savings achieved - Management confirmed that they are ahead of schedule on cost savings, with expectations to potentially raise targets in the future [32][34] Question: Rig count and production levels in the Permian - Management indicated that they can maintain production flat with 6.5 rigs and are confident in further efficiency gains [38] Question: Clarification on capital delivery pace and original assumptions - Management acknowledged that original targets were aggressive, but cost savings are being realized faster than anticipated [44] Question: Plans for Alaska and funding considerations - Management discussed the quality of reservoir sands in Alaska and the strategy for appraisal and development [46][50] Question: Asset sale motivations and implications - The sale of New Mexico assets was strategic, allowing the company to focus on core Texas operations and debt reduction [56][60] Question: LOE inflation and initiatives - Management noted that while some cost reductions are slower than expected, they are exploring various options to manage LOE costs [62][64] Question: Gas development attractiveness in Egypt - Management confirmed that gas development is currently more attractive than oil, with plans to shift focus accordingly [90][92]

Financial Data and Key Metrics Changes - In Q1 2025, natural gas and oil sales increased to $405 million, a 21% increase compared to the previous year [8][11] - Operating cash flow was $239 million, or $0.81 per diluted share [8] - Adjusted EBITDAX for the quarter was $293 million, with adjusted net income reported at $53.8 million, or $0.18 per diluted share [9][11] - Production averaged 1.28 Bcfe per day, reflecting a 17% decrease from Q1 2024 due to reduced rig activity [10] Business Line Data and Key Metrics Changes - The company turned 14 wells to sales since the last update, with an average initial production rate of 25 million cubic feet per day [9] - The Elijah One well, turned to sales with an initial production rate of 41 million cubic feet per day, represents a significant step in delineating the Western Haynesville [7][25] Market Data and Key Metrics Changes - The average NYMEX settlement price for natural gas was $3.65, while the average Henry Hub spot price was $4.27 [11] - Realized gas price in Q1 was $3.58, reflecting a $0.07 differential from the NYMEX price [12] Company Strategy and Development Direction - The company is focused on building assets in the Western Haynesville to capitalize on growing natural gas demand [40] - Plans to drill 20 wells and turn 15 wells to sales in the Western Haynesville in 2025, while also maintaining production in the legacy Haynesville [41] - The partnership with BKV Corporation aims to develop carbon capture projects, enhancing the company's low-carbon footprint strategy [39][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth in natural gas demand, particularly for power generation and AI applications [6][40] - The company anticipates improved leverage ratios and financial performance due to higher natural gas prices and a strong hedge position [15] Other Important Information - The company has invested over $1 billion in developing the 520,000 net acres in the Western Haynesville [6] - The company reported a greenhouse gas intensity improvement of 28% compared to 2023, with significant reductions in CO2 and methane emissions [36][38] Q&A Session Summary Question: Can you discuss the reservoir quality of the Elajawan well compared to previous wells? - Management indicated that the reservoir quality of the Elajawan well appears as good as those drilled in the core area, with good thickness and geological support [48][51] Question: What is the structure and value of the BKV partnership? - The partnership aims to develop carbon capture projects, enhancing the attractiveness of the company's gas resources for potential power generation facilities [56][60] Question: When can we expect more results from the Western Haynesville area? - The next well is planned to be spud in Q4 2025, with additional wells planned for 2026 [63][65] Question: How many rigs can the Western Haynesville support in the future? - Management indicated that they will prudently develop the area, ensuring they do not oversupply the market while meeting increasing demand [90][92] Question: What is the capital allocation strategy for 2026? - The focus will remain on drilling wells to hold acreage while balancing the need for delineation and appraisal wells [102]