Financial Data and Key Metrics Changes - The company reported net revenue for 2024 of $58.5 million, a 60% increase compared to the prior year, attributed to increased production despite a 7% decrease in prices [12] - Adjusted EBITDA for 2024 increased by 28% to $44 million, compared to $39.1 million in 2023, driven by higher revenue but offset by increased operating and G&A expenses [12] - Net income for 2024 was $18.1 million, with basic EPS of $0.51 per share, reflecting a 6% decrease from $19.3 million and $0.54 per share in 2023 [13] - Operating expenses were $7.44 per BOE for the year, up from $6.61 in 2023, including $0.63 of prior year cost true-ups [14] - Netback from operations decreased to $38.54 per BOE compared to $42.97 in the prior year, due to lower average prices and higher operating expenses [15] Business Line Data and Key Metrics Changes - Average production for 2024 increased by 24% to 3,478 BOE per day, compared to 2,796 in the prior year, due to new wells added [12][13] - The company successfully drilled three longer lateral wells, which performed well and improved operational efficiencies [8] Market Data and Key Metrics Changes - The average oil price for 2024 was $74.6 per barrel, while gas prices averaged $1.93 per Mcf [10] - The company’s year-end crude reserves increased by 24% over the 2023 year-end numbers [10] Company Strategy and Development Direction - The company plans to continue its growth trajectory with a forecasted average production of 4,500 to 5,100 BOE per day for 2025, representing a 29% to 47% increase from 2024 [18] - Revenue forecast for 2025 is between $75 million to $89 million, a 28% to 52% increase from 2024 [18] - The company intends to spend between $48 million to $53 million on CapEx in 2025, with plans to bring nine wells into production [19] Management Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the accomplishments in 2024, highlighting production increases and cost efficiencies [7][22] - The company aims to maintain low leverage while continuing to grow revenue and cash flow [22] - Management noted a 58% gain in stock price in 2024 and ongoing efforts to increase shareholder awareness [23] Other Important Information - The company increased its line of credit to $50 million in 2024 [10] - A share buyback program was initiated, with 280,656 shares purchased for about $1.1 million in 2024, with plans to continue in 2025 [20] Q&A Session Summary Question: Inquiry about Lovina wells and net revenue interest - Management confirmed a net revenue interest of approximately 79% in the Lovina wells, with production expected to commence in early June [28][34] Question: Changes in hedging strategy - Management stated there are no significant changes in the hedging strategy, maintaining costless collars to protect lower prices while keeping the upper end open [40][41] Question: Success of growing proved reserves and drilling program focus - The focus for 2025 will be on drilling in proved acreage, with expectations of better performance from longer laterals compared to previous drilling [50][52]
Kolibri Energy Inc(KGEI) - 2024 Q4 - Earnings Call Transcript