Kolibri Global Energy NASDAQ: KGEI reported what management described as the strongest quarter in the company’s history for several operating and financial metrics, with President and CEO Wolf E. Regener saying first-quarter 2026 results included record quarterly production, net revenue and adjusted EBITDA.
Regener said first-quarter production averaged 4,685 barrels of oil equivalent per day, up from 4,493 BOE per day in the fourth quarter of 2025. He said the company achieved that production level even though “only March had the impact of the oil price increase.” Regener also noted that, based on 2025 annual production, Kolibri has generated a 35% compound annual production growth rate over the past three years.
Revenue and EBITDA reach company highs
Chief Financial Officer Gary Johnson said net revenue rose 20% to $19.6 million, compared with $16.4 million in the prior quarter, driven by higher production. Johnson said average production increased 15% to 4,685 BOE per day from 4,077 BOE per day in the prior quarter, reflecting the contribution from wells drilled during 2025.
Adjusted EBITDA increased 16% to $14.8 million, compared with $12.8 million in the prior quarter, primarily due to higher revenue. Net income was $4 million, or $0.11 per basic share, compared with $5.8 million, or $0.16 per basic share, in the same period of 2025.
Johnson attributed the decline in net income to a $2.9 million non-cash mark-to-market unrealized loss on commodity contracts tied to the significant increase in oil prices in March 2026.
Operating expense was $8 per BOE in the quarter, compared with $7.07 per BOE in the first quarter of the prior year, a 13% increase. Johnson said the increase reflected workover costs on a non-operated well, reassessed prior-year natural gas and NGL gathering and processing fees, and higher water hauling costs.
Kolibri’s netback from operations increased 2% to $38.41 per BOE, compared with $37.55 per BOE in the prior quarter. Netback including commodity contracts was $37.72 per BOE, compared with $37.55 per BOE in the first quarter of 2025, with Johnson citing higher average prices.
Debt reduction and expanded credit facility
Johnson said Kolibri’s credit facility was redetermined and borrowing capacity increased to $75 million from $65 million. Despite the higher borrowing capacity, he said the company has continued to reduce debt.
Net debt at the end of the first quarter was $45 million, down from $46 million at year-end. Johnson said that after quarter-end Kolibri made a $4 million debt repayment and planned to make an additional $4 million net paydown later in May.
Regener said the company is in “solid financial shape” and is benefiting from stronger oil prices, with improved cash flow supporting future decisions on drilling, debt reduction and share repurchases.
Capital allocation under review after board changes
During the question-and-answer session, Regener said Kolibri recently held its annual general meeting and added three new board members. He said management is preparing proposals and options for the board to consider in the coming weeks regarding use of additional cash flow.
Regener said potential uses include drilling more wells, paying down additional debt or buying back shares. He also said the company expects to provide more clarity in the future and may issue an updated forecast depending on market conditions.
Regener said Kolibri plans to continue buying back shares and drilling wells while also increasing outreach to shareholders and potential investors. He and Johnson are scheduled to attend the Louisiana Energy Conference from May 26 to May 28, where Regener said he will participate in a panel on May 27. The company also plans to present at the Latham Virtual Spring Conference on May 28.
Three-well drilling program underway
Regener said Kolibri’s drilling program for the Clifton Mac wells is already underway. In response to questions, he said the company is drilling now and expects to bring the wells on in the third quarter, though he declined to provide exact timing because of potential variation in completion schedules and equipment availability.
Regener said the company budgeted roughly 20 days per well, including moves and other operational steps, or about two months of drilling in total. He described the process from drilling through preparation for fracture stimulation as generally taking about three months.
He also said the working interest in the three wells has increased from the level first announced. Regener said the working interest is now about 88%, compared with a previously announced level of roughly 67%.
On completion design, Regener said Kolibri is evaluating new ideas with its updated board and may make “some tweaks” to completion designs on the wells. He said the impact of those changes will depend on well performance.
Oil prices, hedging and operating outlook
Regener said the recent rise in oil prices is benefiting Kolibri’s cash flow. He said the company’s first-quarter average oil price was $70.31 per barrel, while current market prices are higher.
Discussing hedging, Regener said his general view is that if the company can lock in $90 to $100 oil prices for a longer period, it should likely hedge a portion of production. Johnson said Kolibri met its bank hedging requirements by the end of March and did not add hedges after March 31.
Regener said about 50% of projected production, excluding the new wells, was hedged based on prior forecasts. He said some hedges are structured as costless collars, allowing the company to capture some upside above prices at the time the hedges were placed, while the rest of production remains floating.
Regener said Kolibri previously estimated that every $5 increase in oil prices relative to its forecast would add about $2.8 million to annual EBITDA, net of hedges, a figure Johnson confirmed on the call.
Asked about operating costs, Regener said Kolibri is not yet seeing inflationary pressure on the operating side and that most costs are “pretty locked in.” Johnson said higher water hauling costs were front-loaded early in the quarter and should continue to decline.
Regener also said the company does not have takeaway issues. He said Kolibri handles its own oil takeaway, while Exxon handles gas and NGL takeaway.
About Kolibri Global Energy NASDAQ: KGEI
Kolibri Global Energy Inc engages in the finding and exploiting oil, gas, and clean and sustainable energy in the United States. It sells crude oil, natural gas, and natural gas liquids. The company was formerly known as BNK Petroleum Inc and changed its name to Kolibri Global Energy Inc in November 2020. Kolibri Global Energy Inc was incorporated in 2008 and is headquartered in Thousand Oaks, California.
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