Kolibri Global Energy, Inc. Q4 FY2024 earnings call

• Production increased 24% in 2024 with capital spend below guidance. - Drilled first three longer lateral wells (1.5 mile Alicia Renee) efficiently, accessing 50% more reservoir with only 15% more drilling time. - Operating expenses in 2024 averaged $7.44 per BOE, with unhedged netbacks at $38.54 per BOE. - Year-end crude reserves increased 24% from 2023. - Line of credit increased to $50 million in 2024. - 2024 had highest annual revenue and adjusted EBITDA. - Fourth quarter 2024 saw 56% production increase, 28% adjusted EBITDA increase. - 2025 forecast includes production of 4,500-5,100 BOE per day, revenue of $75M-$89M, adjusted EBITDA of $58M-$71M, CapEx of $48M-$53M, and continuing share buybacks. - Emphasis on execution, cost efficiencies in drilling and completion, and strong operational performance relative to peers.

In 2024, net revenue was $58.5 million, a 60% increase from the prior year, with adjusted EBITDA at $44 million, a 28% increase. Average production in 2024 was 3,478 BOE per day, a 24% increase from 2023. CapEx in 2024 was $31.3 million, a 41% decrease from 2023. For the fourth quarter of 2024, average production was 4,440 BOE per day, a 56% increase from the prior year quarter, with adjusted EBITDA at $13.5 million, a 28% increase. Net revenue in the fourth quarter was $17.4 million, a 29% increase from the prior year quarter. Revenue contribution: Net revenue for 2024 was 100% of total revenue, with adjusted EBITDA contributing significantly to the financial performance.

• 2025 average production forecast: 4,500 to 5,100 BOE per day (29% to 47% increase from 2024 actual). - Revenue forecast: $75 million to $89 million (28% to 52% increase from 2024). - Adjusted EBITDA forecast: $58 million to $71 million (32% to 61% increase from 2024). - CapEx forecast: $48 million to $53 million. - Expected net debt at end of 2025: $25 million to $30 million, with leverage ratio well below one. - Continue share buybacks to return capital to shareholders.

• Potential impacts of oil price fluctuations on revenue and netbacks. - Weather-related delays in drilling, fracking, and production. - Uncertainties in hedging strategy execution and effectiveness. - Market uncertainties affecting overall business performance.

Q: Good morning and congratulations on the strong results especially your LOE per BOE very impressive operating cost number. And so you're drilling the Lovina wells right now 100% working interest. Remind me again, what is your net revenue interest in the Lovina wells?

A: In the Lovina wells, it's around 79% roughly.

Q: And those are going to finish up. Those are going to be fracked in May. So would we expect production press release in June?

A: Yes, depending on weather and timing for the frac crews when they finish up their previous job. Right now we're scheduled about mid-May and then we'll be bringing those -- we intend to bring those wells on production sometime in early June.

Q: Could you talk a little bit about any changes in your hedging strategy? I could see that the release they showed your hedging into 2026. Any reason to shift it given some concerns over oil prices?

A: No, not really. We tried to protect the lower end of it. We want to keep the upper end open as much as we can. We've been going with the costless collars. And we're required to hedge 50% of our next 12 months and 35% of the two quarters after that. Our cost less collars are pretty wide bandwidth. They are currently at $60 to $94.

Q: I noticed that the Forguson well has a 46% working interest instead of the 100%. And am I correct that that's the one Exxon is participating with you in?

A: Yes, I don't really say who the company is. They don't -- I just I refer to it as a large integrated oil company that bought out everyone around us. So they don't like their name in print. It's more along the lines of what the acreage that they had out there as well. We have some joint acreage together with them. So kind of suspected a section and they elected to participate in the past. They haven't always participated I will say, so.