Financial Data and Key Metrics Changes - Production increased by 15% to 4,013 BOE per day in 2025, with a compound annual growth rate of 35% over the last three years [4][7] - Net revenue decreased by 3% to $56.9 million due to a 60% decline in prices, which offset the production increase [8] - Adjusted EBITDA decreased by 4% to $42.1 million compared to $44 million in 2024 [8] - Net income was $15.5 million with basic EPS of $0.44 per share, down from $18.1 million and $0.51 per share in 2024 [8] - Operating expenses per BOE decreased by 1% to $7.33 from $7.44 in 2024 [8] - Netback from operations decreased by 18% to $31.49 per BOE compared to $38.54 in the prior year [9] Business Line Data and Key Metrics Changes - The drilling program led to a 30% increase in approved developed producing reserves [5] - Production from new wells drilled in 2025, including four completed at the end of the year, increased December production to over 5,600 BOE per day [7] Market Data and Key Metrics Changes - The first year's price used in reserve evaluations dropped by 18% to $58 per barrel, while current oil prices are averaging in the 90s [5] Company Strategy and Development Direction - The company plans to continue drilling additional wells in the coming months to maintain growth [10] - The strategy includes a share buyback program, with nearly 650,000 shares repurchased for $3.2 million [9] - The company aims to enhance shareholder value while navigating the current oil price environment [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the drilling program for 2026, indicating a potential increase in wells drilled compared to previous plans [19] - The company is prepared to pivot quickly in response to market conditions due to its flexible operational structure [21] - Management noted that the timing of the recent oil price increase is benefiting cash flow [10] Other Important Information - The company has implemented a hedging program, with costless collars in place for 16,000 barrels of oil per day [60] - Approximately 50% of production remains unhedged, allowing for potential upside in pricing [64] Q&A Session Summary Question: How is the drilling program for this year being adjusted in light of recent price changes? - Management is cautiously optimistic and plans to start drilling additional wells, with flexibility to adjust based on market conditions [19][20] Question: What is the expected timeline for starting the drilling program? - The target is to start drilling around June, but management hopes to begin sooner if conditions allow [22] Question: Can you provide insight into the realized natural gas prices? - Management indicated that natural gas prices fluctuate and are difficult to forecast due to reliance on Exxon for pricing [26][30] Question: What is the expected capital expenditure for 2026? - Management anticipates a lower capital expenditure than in 2025, with plans to drill around three wells unless higher oil prices prompt additional drilling [55][57] Question: Can you summarize the hedging program for the first quarter and the full year? - The company has costless collars in place for the first quarter and has hedged a portion of production for the second half of the year [60][68]
Kolibri Energy Inc(KGEI) - 2025 Q4 - Earnings Call Transcript