Kolibri Global Energy Q2 Earnings Call Highlights

Key Points

• Record Q2 performance: Revenue rose 109% year over year to $22.5 million, while production increased 46% to 4,690 BOE per day. Net income reached $8.5 million and adjusted EBITDA climbed 114% to $16.4 million, despite three wells being shut in for part of the quarter.
• Growth expected later in 2026: Kolibri completed drilling three Clifton Mak wells and expects four 2026 program wells to support production, with the third quarter forecast as the low point and the fourth quarter as the high point. The company also expanded its borrowing base 15% to $75 million.
• New False Caney exploration: Kolibri began drilling the Lovina 8-5-1 HF well, its first test of the oil-saturated False Caney formation. A successful two-mile-lateral test could add development locations and reserves across approximately 9,900 prospective acres.

Kolibri Global Energy NASDAQ: KGEI reported record quarterly revenue, production and adjusted EBITDA for the second quarter of 2026, despite having three wells shut in for roughly one-third of the period, according to management on the company’s earnings call.

President and CEO Wolf Regener said the company also completed drilling three Clifton Mak wells and expects to begin completion operations shortly. Separately, Kolibri has started drilling the Lovina 8-5-1 HF well, its first test of the False Caney formation.

Record Quarterly Financial Results

Chief Financial Officer Gary Johnson said second-quarter revenue reached a company record of $22.5 million, up 109% from the prior-year quarter. The increase reflected a 46% rise in production and a 41% increase in average realized prices.

Average production was 4,690 barrels of oil equivalent per day, compared with 3,220 BOE per day a year earlier. Johnson attributed the production increase to wells drilled and completed during the second half of 2025.

• Net income was $8.5 million, or $0.24 per basic share, compared with $2.9 million, or $0.08 per share, in the prior-year quarter.
• Adjusted EBITDA increased 114% to $16.4 million from $7.7 million.
• Operating netback rose 48% to $43.92 per BOE from $29.66 per BOE.
• Production and operating expense averaged $8.90 per BOE, up from $7.15 per BOE a year earlier.

Johnson said the higher operating cost per BOE reflected workover costs for a non-operated well, which added $0.59 per BOE, as well as temporarily elevated water-hauling costs. During the question-and-answer session, management said the non-operated workover expense affected both the first and second quarters but should now stop. Water-hauling costs have declined through the year, although they are expected to remain somewhat above last year’s level.

For the first six months of 2026, net revenue rose 55% to $42.1 million, while average production increased 29% to 4,688 BOE per day. Net income for the period was $12.5 million, or $0.35 per basic share, compared with $8.6 million, or $0.24 per share, a year earlier. Adjusted EBITDA increased 52% to $31.3 million.

Credit Facility Expansion and Development Plans

The company’s borrowing base was increased 15% during the second quarter, to $75 million from $65 million. Johnson said the redetermination provides additional flexibility for working-capital management and reflects the growing value of Kolibri’s properties.

Management expects four wells included in its 2026 drilling program to support further growth, with the wells anticipated to contribute a full quarter of production primarily in the fourth quarter. Regener agreed with an analyst’s characterization that the third quarter is expected to be the company’s lowest-production quarter of 2026, while the fourth quarter is expected to be its highest.

However, Regener said the major variable for the company’s production outlook will be the performance of the four wells as they come online. “Bringing on four wells at a time that have high IPs really moves the needle” for the forecast, he said.

False Caney Test Targets Additional Potential

The Lovina 8-5-1 HF well will be Kolibri’s first test of the False Caney interval. Regener said the formation appears highly oil saturated in whole-core data and has shown favorable characteristics on logs from several wells in the field.

He said the False Caney is thinner than the company’s existing Caney target, but management believes a two-mile lateral could improve the economics of the development. The well is being drilled in what Regener described as a relatively quiet part of the field, with less apparent faulting and sufficient geological control to support the longer lateral.

Kolibri has approximately 11,500 net acres associated with proved reserves in the Caney and sees False Caney prospectivity over roughly 9,900 acres, according to Regener. He said Kolibri has 40 million barrels of proved reserves in the Caney, and a successful, repeatable False Caney development could add locations, reserves and shareholder value.

Management said it will evaluate the False Caney well based on drilling results, flow rates, the 30-day production rate and subsequent decline performance. Regener said the company expects to complete the well unless it encounters a major drilling issue, but he declined to project whether initial production rates would match or exceed those of existing Caney wells.

Clifton Mak Operations and Production Trends

Regener said the three Clifton Mak wells required additional casing strings because the company encountered a shallow lower-pressure interval and higher pressures deeper in the well. The additional casing was used to isolate those conditions before drilling the lateral. He said the wells cost more than normal wells but did not disclose a specific amount.

The company shut in the Alicia Renee wells while drilling nearby Clifton Mak wells because of the proximity of the new wellbores. Regener said management does not expect material performance issues when the Alicia Renee wells return to production. He added that shut-in wells have historically experienced some “flush production” when restarted because Kolibri’s wells produce relatively little water.

On production performance, Regener said wells brought online in 2025 have continued to perform well. He said the company received an additional production boost after bringing gas compression online for gas lift, following an earlier period of decline. He cautioned that production will not remain flat until new wells enter service.

Management also said certain chemical costs have increased, though Regener characterized the escalation as manageable. Kolibri is implementing physical changes intended to reduce those chemical expenses and said it is in the early stages of seeing progress.

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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