Financial Data and Key Metrics Changes - Average production increased by 3% to 3,220 BOE per day compared to 3,128 in the prior year quarter, attributed to wells drilled and completed in the last six months of 2024 [7] - Net revenue decreased by 22% to $10.8 million compared to the prior year quarter due to a 24% decrease in average prices and lower oil production from shut-in wells [8] - Adjusted EBITDA was $7.7 million, a decrease of 23% from $10 million in the prior year quarter, primarily due to lower prices [8] - Net income was $2.9 million with basic EPS of $0.08 per share, down from $4.1 million or $0.11 per share in the prior year quarter [9] - Year-to-date average production increased by 13% to 3,646 BOE per day compared to 3,216 in the prior year period [10] - Year-to-date net income was $8.6 million with basic EPS of $0.24 per share, up from $7.4 million and $0.21 per share in the prior year period [10] Business Line Data and Key Metrics Changes - Production from the field was strong, with over 3,200 BOE per day despite temporarily shutting in about 540 BOE per day for well completions [5] - Operating expenses remained low at approximately $7.15 per BOE [5] - The company brought on four Lovina wells with high oil percentages, which are still cleaning up fracture stimulation fluid [5] Market Data and Key Metrics Changes - The company experienced a 24% decrease in average prices, impacting net revenue significantly [8] - The net back from operations decreased to $29.66 per BOE compared to $40.40 in the prior year quarter due to lower average prices [9] Company Strategy and Development Direction - The company plans to bring on nine new wells in the second half of the year, anticipating significant increases in production and cash flow [12] - There is an ongoing strategy to return capital to shareholders through share buybacks, with approximately 130,000 shares purchased in July [14] - The company aims to continue building and growing value for shareholders while actively participating in conferences and presentations to enhance visibility [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate good returns even in a $60 oil price environment, indicating a commitment to proceed with drilling plans [17][18] - The management is optimistic about the performance of the new wells and their impact on cash flow, especially following the completion of the last wells in December 2024 [13] Other Important Information - The company's credit facility was redetermined, increasing the borrowing base by 30% from $50 million to $65 million, providing more flexibility in managing working capital [11] Q&A Session Summary Question: Thoughts on original production guidance for the year given the timing of the Laveena wells - Management will monitor production and adjust guidance if necessary, depending on well performance and price conditions [16] Question: Any changes to near-term capital allocation plans due to oil price environment - Currently, the company plans to proceed with drilling as the economics of the wells remain favorable, but they have the option to delay completions if prices drop significantly [17][18] Question: Insights on the higher liquids content from the Laveena wells - The higher liquids content was encouraging and slightly better than anticipated, which may influence future drilling and completion strategies [19][21] Question: Status on the Fortis and East Side acreage - It is too early to provide insights, but initial completions went well, and the company is awaiting flowback results [23]
Kolibri Energy Inc(KGEI) - 2025 Q2 - Earnings Call Transcript