Kolibri Global Energy Q1 2025 Earnings Call Transcript

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Provided by Quartr
May 14, 2025

There are 4 speakers on the call.

Operator

Good day, and welcome to the Colibri Global Energy's First Quarter twenty twenty five Financial Conference Call. All participants will be in a listen only mode. Media may monitor this call in a listen only mode. They are free to quote any member of management, but are asked to not quote remarks for any other participants without the participants' permission. If anyone has any trouble and needs assistance, please signal a conference specialist by pressing the star key followed by 0.

Operator

After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press then 1 on your touch tone phone. To withdraw your question, please press then 2. Please note, this event is being recorded. I advise participants that this conference is being recorded today as of 05/14/2025.

Operator

This call will be available on the company's website at www.k0librienergy, colibri energy Com. This call may include forward looking statement, information regarding Colibri's strategic plans, anticipated production, capital expenditures, exit rates, and cash flows, reserves, and other estimate and forecast. Forward looking statements is subject to risk and uncertainties, and actual results will vary from the forward looking statements. This call may include future oriented financial information and financial outlook information, which Colibri disclosed in order to provide readers with a more complete perspective on Colibri's potential future operations, and such information may not be appropriate for other purposes. For a description of assumptions on which such forward looking information is based and the applicable risks and uncertainties and Colibri's policy for updating such statements, we direct you to Colibri's most recent annual information form and management's discussion and analysis for the period under discussion.

Operator

As well as the Colibri's most recent corporate presentation, all of which are available on the Colibri's website. Listeners should not place undue reliance on forward looking information. Collibri undertakes no obligation to update any forward looking future oriented financial or financial outlook information other than as required by applicable law. I would now like to turn the call over to mister Wolf Ragnar, the president and chief executive officer of Colivri Global Energy Inc. Please go ahead, sir.

Speaker 1

Thank you, and thank you everyone for joining us today. With me on today's call is Gary Johnson, our chief financial officer. As I'm sure you're aware, we released our first quarter twenty twenty five results this morning, and we are very pleased with what we've achieved this quarter, which continues to build on our last few years results in multiple ways. Production increases 23% over first quarter of twenty twenty four. Operating expenses remain low with just over $7 a barrel of oil equivalent, leading to really good netbacks.

Speaker 1

We're continuing to deliver even more efficiencies by drilling five wells in the quarter and cutting our drilling times down by a further 25 in this latest one and a half mile lateral wells. This saves money and thus improves our internal rates of return on our new wells even further. You can see from our corporate presentation how even at lower oil prices, we can drill wells and make good rates of return. Our breakeven oil price is quite low. So things are going very well, and we look forward to increasing our production further when we complete these wells later this quarter.

Speaker 1

With that, I'll now turn the call over to Gary to discuss our financial results. Go ahead, Gary.

Speaker 2

Thanks, Will, and thanks, everyone, for being on the call. I'm just gonna go over a few highlights of the first quarter, and then we'll take questions. All amounts are in US dollars unless otherwise stated. As you can see from the earnings release today, we had another good very good quarter with strong increases in net income, production, and adjusted EBITDA. Net income was up 72% to 5,800,000.0 with basic EPS of $0.16 per share compared to $3,300,000 and $09 per share in the prior year quarter.

Speaker 2

The increase was due to an increase in revenues and lower realized and unrealized commodity contract losses compared to the prior year first quarter, which were partially offset by higher income tax expense. Average production was up 23% to 4,077 BOE per day compared to 3,305 BOE per day in the prior year quarter. The increase was due to the wells that were drilled during 2024. Adjusted EBITDA was 12,800,000.0 compared to 10,400,000.0 in the prior year quarter, which was an increase of 24%, mainly due to higher revenues. Net revenue increased by 15% to 16,400,000.0 compared to 14,200,000.0 due to the higher production, which was partially offset by lower average prices, which were down 6%.

Speaker 2

Operating expense was $7.07 per BOE for the quarter compared to $8.36 per BOE per BOE in the prior year first quarter, which was a decrease of 15%. Operating expense in the first quarter of last year did include $600,000 of prior period gathering and processing cost adjustments. Our netback from operations decreased slightly to $37.55 per BOE compared to $38.94 per BOE in the prior year quarter due to lower average prices. And if you include the impact of hedges on our netbacks, they were only down about 1% from the prior year quarter. And with that, I'll have to go back to Wolf.

Speaker 1

Thanks, Gary. As Gary laid out, we had a great first quarter, which has continued success we've had over the last few years. Company has had quite the growth. Revenue and cash flow have grown a lot, all while keeping our leverage low, and our team has been executing extremely well. Our striving for constant improvement continues to pay off.

Speaker 1

Drilling times and cost improvements for our new wells have been huge. We've also had numerous completion improvements that have led to improved economics, and our operating expenses and netbacks are, from what I can see, among the best among our peers. In addition, we are intending to continue returning capital to shareholders in the form of share buybacks. Overall, our plan is to continue to execute and build and grow company value for all shareholders. And we'll continue to get the word out about the company, the shareholders, and potential shareholders as we have a number of conferences and presentations lined up, which you can see, excuse me, which you can see listed on our website.

Speaker 1

This concludes the formal part of our presentation, and we would be pleased to answer any questions that you may now have.

Operator

They will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time a question has been addressed and you would like to withdraw your question, please press then 2. At this time, we will pause momentarily to assemble our roster.

Operator

The first question comes from Steve Ferratani with Sidoti. Please go ahead.

Speaker 3

Good morning, Wolf. Good morning, Gary. I appreciate the detail on the presentation. Wolf, can you give any sense on the financial savings from those faster wells drilled? And what you learned from drilling the four wells on the pad?

Speaker 3

Is that going to be transferable when I believe you still have two more wells you're going to drill on a pad in the second half?

Speaker 1

Yeah. So I don't like quoting what we have from our field estimates until we get our actual expenses in. So I'm not quoting this quoting anything. So it was nice amount of savings. I'll leave it at that, and we'll put some numbers out once I get all the firm numbers in.

Speaker 1

I'd prefer to do that once we have all of our cost in since it's really hand completion that counts in the end. But, yeah, it it it will save us both time and money on what we've just done. Transferable? Yes. Absolutely.

Speaker 1

You know, over the years, we've learned what works the best, what drill bits work the best, what systems, and we keep refining that, and we keep getting better and better at that. And our geological team is steering in intervals that drill faster, but are still in our primary target. And so all those things together have just been led together to plus good equipment. Don't get me wrong. Not on the contract constructions that we're using.

Speaker 1

So let down time always helps too. But yeah. So it's just kind of a combination of not one thing. A lot of different things coming to attend. Yeah.

Speaker 1

We expect that to very clear to all of our drilling that we do from here on out. So I'm hoping that it's our Excellent. F I e cost will continue to come down in the future.

Speaker 3

Excellent. Any update on the timing on the on the second half drilling plans?

Speaker 1

No. Not right now. We just leave it at the second half. We've got locations that are almost ready to go and built, and then we'll take it from there, but we'll announce when we get a little closer.

Speaker 3

Okay. And then the the the plans for getting the the the Laguna wells to production, you're saying, per quarter? Will that be simultaneous with the East Side, or will it be how can we think about that?

Speaker 1

We'll finish pressure stimulating the Laveena wells, and then what we also do is drill out the plugs, right, and then start clawback. And but but when we're done completing those and fracture signaling, those the crew will move directly over to Laveena. So as we're drilling out the plugs on Laveena excuse me, on the Ferguson. As we're drilling out the plugs on the Laveena, the crew should be fracture stimulating the Ferguson. So they won't be far behind, but Laveena will come on first.

Speaker 3

Yeah. Excellent. Thanks so much, Will.

Speaker 1

Thank you.

Operator

Thank you. Again, if you have a question, please press star then 1. This concludes our question and answer session. I would like to turn the conference back over to the management for any closing remarks.

Speaker 1

Thank you everyone for joining us today and for those that listen to the replay as well. So I appreciate everyone's support, and I hope everyone has a great day. Thank you very much.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

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Earnings Conference Call
Kolibri Global Energy Q1 2025
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