Kolibri Global Energy Q3 Earnings Call Highlights

Key Points

• Higher commodity prices lifted Q3 results despite lower output: Revenue rose 22% year over year to $18.3 million and adjusted EBITDA increased 20% to $13.3 million, while average production fell 9% to 3,876 BOE per day. Net income was unchanged at $3.6 million.
• New wells have boosted production, and False Caney could offer growth potential: Production was approximately 5,700 BOE per day after new wells came online. Kolibri reported strong early performance from its first False Caney test, but said it is too early to assess the well’s long-term results.
• Management expects full-year production guidance to land within the range, likely near its lower end because new wells started later than planned. The company ended Q3 with $15.4 million in net debt and $19.5 million of available borrowing capacity, and is preparing drilling options for 2027.

Kolibri Global Energy NASDAQ: KGEI reported higher third-quarter revenue and adjusted earnings as stronger commodity prices offset a decline in production. Management said output has since risen with new wells coming online and pointed to early results from its first test of the False Caney formation as a potential source of future growth.

Revenue rose 22% from a year earlier to $18.3 million, while adjusted EBITDA increased 20% to $13.3 million, Chief Financial Officer Gary Johnson said on the company’s November 13 earnings call. Net income was unchanged at $3.6 million, or $0.10 per basic share.

Average production fell 9% to 3,876 barrels of oil equivalent per day, or BOE per day, as wells were shut in during the quarter and existing wells experienced normal declines. President and CEO Wolf Regener said current production is approximately 5,700 BOE per day following the start-up of new wells, excluding a few wells undergoing work.

New Wells Boost Production

Kolibri completed three Clifton Mack wells during the third quarter and began flowback near the end of the period. Regener said production from those wells effectively began in the fourth quarter.

The company also finished drilling the Lovina 8-5-1HF well, its first test of the False Caney formation, during the third quarter and completed it in October. Regener said the well has performed strongly so far, though he cautioned that it remains early in its production life.

The False Caney interval is present across most of Kolibri’s property, Regener said, but the company’s reserve report currently includes no reserves from the formation. He said a successful development could eventually increase reserves, although the company would not receive reserve-report credit immediately.

Regener said Kolibri plans to continue developing the Caney formation while incorporating other intervals, including the False Caney and the T-zone, into future drilling. He said the company believes the initial False Caney result could open up additional drilling locations across a large section of its acreage.

Some new wells are producing relatively high proportions of gas and are still flowing back hydraulic fracturing fluid, Regener said. He said oil percentages could rise as more fluid is recovered, but that remains to be seen. He added that the higher gas rates are isolated to the field’s southwest corner.

Higher Prices Support Quarterly Results

Johnson said prices rose 34% from the prior-year quarter, helping lift revenue despite lower production. Operating netback increased 41% to $43.48 per BOE; including commodity contracts, netback rose 31% to $40.55 per BOE.

Quarterly operating expenses rose 14% to $8.39 per BOE. Johnson attributed the increase primarily to higher severance taxes resulting from higher prices, workover costs on a non-operated well and increased chemical costs. He said higher revenue was offset in net income by a $2.4 million non-cash mark-to-market adjustment on commodity contracts.

For the first nine months of 2026, revenue rose 43% to $60.4 million and adjusted EBITDA increased 41% to $44.6 million. Net income climbed to $16.1 million, or $0.45 per basic share, from $12.2 million, or $0.34 per share, a year earlier. Average production increased 15% to 4,412 BOE per day, helped by wells drilled and completed at the end of 2025.

Guidance and 2027 Planning

Asked about the company’s previously issued production guidance, Regener said he expects results to be within the range, probably toward its lower end because the new wells came online later than anticipated. The guidance range itself was not specified on the call.

For 2027, Regener said management plans to discuss drilling options with the board and prepare alternatives for higher or lower oil prices. He said the company can adjust its activity relatively quickly and expects to establish a minimum drilling plan.

Johnson said Kolibri’s credit facility borrowing base was reaffirmed at $75 million in October. At the end of the third quarter, the company had $15.4 million in net debt and $19.5 million in available borrowing capacity. Regener said taking on additional debt was not the current plan, although the company has the ability to do so.

About Kolibri Global Energy (NASDAQ:KGEI)

Kolibri Global Energy Inc. is an energy company focused on exploring for, developing and producing oil and natural gas. Its principal operations are in the Tishomingo Field in Oklahoma, where it develops resources in the Anadarko Basin. The company was formerly known as BNK Petroleum Inc. and adopted the Kolibri Global Energy name in 2023. Its business is centered on its U.S. oil and gas operations.

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