Kolibri Global Energy Inc. Q3 FY2025 earnings call

• Production: Third quarter production over 4,250 BOE per day, up from prior quarters; 4 new wells in fracture stimulation, expected to come online in early December, aiming for record high production at year-end.
• Financials: Revenue and cash flow increasing despite lower oil prices; adjusted EBITDA showing growth; net debt at end of September was $42.8 million with $18.5 million available borrowing capacity.
• Share Buybacks: Started repurchasing about 568,000 shares since September last year, plan to continue repurchasing as working capital allows.

Third quarter 2025: Average production was 4,254 BOE per day, up 40% from the prior year quarter. Revenue was $15 million, up 15% but partially offset by lower prices (down 18%). Adjusted EBITDA was $11.1 million, up 9%. Net income was $3.6 million. Year-to-date September: Average production was 3,851 BOE per day, up 22% from the prior year period. Revenue was $42.1 million, up 2% but partially offset by lower prices (down 16%). Adjusted EBITDA was $31.6 million, up 3%. Net income was $12.2 million. Operating expenses: Third quarter operating expense was $7.37 per BOE, with a one-time production tax adjustment adding $0.80 per BOE. Year-to-date September operating expense was $7.20 per BOE, a 8% decrease from prior year.

• Expect to pay down $8 million to $10 million in the first quarter due to spending on bringing wells online.
• Net leverage expected to be around 1x year-end.

• Oil price volatility: Affects production levels and financial performance.
• Uncertainty with Ferguson well: Production has been flat, and impact on future drilling in the Eastside depends on further fracture stimulation and oil price trends.

Q: If I want to ask about the timing of the 4 new wells, when are you expecting production this year?

A: We're in the middle of fracture stimulating the wells and expect production to come on in early December.

Q: Any changes to the expectations regarding 1x leverage year-end?

A: We should be right in that number, and expecting to pay down $8 million to $10 million in the first quarter.

Q: Update on the Ferguson well and its impact on future drilling?

A: Production has been fairly flat; won't be drilling another well there soon without higher oil prices.

Q: Color on 2026 drilling program?

A: Recommendations to the Board will depend on oil prices in December or early January, likely keeping production flat or slightly growing.

Q: Explanation of higher OpEx tax adjustment?

A: It's a one-time true-up of production taxes by the purchaser, not a recurring thing.

Q: General trend on OpEx per barrel if production is up?

A: Should typically trend flat in the current range over the long term