Financial Data and Key Metrics Changes - Average production increased by 11% to 3,032 BOE per day compared to 2,737 in the prior year quarter [7] - Adjusted EBITDA rose by 6% to $10.1 million from $9.5 million in the prior year quarter [7] - Revenue increased by 2% to $13.9 million, driven by higher production but partially offset by lower prices [8] - Net income for the quarter was $5.1 million, with basic EPS of $0.14, an increase of 118% compared to $2.3 million or $0.07 per share in the prior year quarter [8] - Year-to-date average production was up 13% to 3,154 BOE per day compared to 2,780 in the prior year [10] - Year-to-date net revenue increased by 11% to $41.2 million compared to $37.2 million in the prior year [10] Business Line Data and Key Metrics Changes - The company successfully drilled three longer lateral wells, achieving production of over 2,800 BOE per day from these wells [6] - Operating expenses decreased by 10% to $6.63 per BOE compared to $7.34 per BOE in the prior year quarter due to higher production [9] Market Data and Key Metrics Changes - Average prices decreased by about 9% for the quarter, leading to an 8% decline in netbacks to $40.01 per BOE compared to $43.28 in the prior year quarter [9] - Netbacks including the impact of hedges decreased by 4% to $39.95 per BOE compared to $41.65 [9] Company Strategy and Development Direction - The company aims to continue returning capital to shareholders through share buybacks while also focusing on growth [15][24] - The management is optimistic about increasing proved reserves due to the successful drilling of longer lateral wells [14][15] Management Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the operational improvements and cost efficiencies achieved in drilling [14] - The company anticipates a significant increase in cash flow as the new wells continue to perform well [12] Other Important Information - The company has a credit facility with a borrowing base of $50 million and a net debt of $29.1 million, with $90 million of available borrowing capacity [12] - Share repurchase program initiated, with approximately 104,000 shares repurchased so far [12] Q&A Session Summary Question: Has the success of the Rene wells altered drilling plans for Q4? - Management confirmed there will be no additional drilling in Q4, focusing instead on preparing for 2025 [18] Question: Any notable learnings from the 1.5-mile lateral wells? - Management noted that the cost of drilling these wells was better than anticipated, with only a slight increase in drilling time [21][22] Question: Will the buyback come from cash flow or additional leverage? - Management stated that buybacks will come from cash flow, not additional leverage [25] Question: What are the estimated cost savings for field development? - Management indicated significant cost savings due to the efficiency of drilling longer laterals, though specific numbers are not yet available [27][28] Question: Expectations for EUR on the new laterals? - Management anticipates similar EUR on a per foot basis, with potential improvements due to enhanced completions [30]
Kolibri Energy Inc(KGEI) - 2024 Q3 - Earnings Call Transcript