Kolibri Global Energy Inc. (ticker not provided) has reported its first quarter financial results for 2024, revealing a mixed performance with strong production and a slight dip in adjusted EBITDA. The company’s average production increased by 3% to 3,305 barrels of oil equivalent (BOE) per day, up from 3,194 BOE per day in the previous year’s quarter. Despite a 9% decrease in adjusted EBITDA due to lower prices and higher operating expenses, the company has demonstrated growth in production and continued development in its operations. Additionally, Kolibri announced an increase in their line of credit from Bank of Oklahoma, which reflects the value of the company’s field and provides more financial flexibility.
Key Takeaways
- Kolibri Global Energy reported an increase in average production to 3,305 BOE per day, a 3% rise from the previous year.
- Adjusted EBITDA for Q1 2024 was $10.4 million, a 9% decrease due to lower prices and higher OpEx.
- Net revenue remained stable at $14.2 million, while net income saw a drop to $3.3 million.
- Operating expenses increased to $8.36 per BOE, up from $6.04 per BOE in the prior year’s quarter.
- The company’s borrowing base was increased from $40 million to $50 million by Bank of Oklahoma.
Company Outlook
- Production is tracking above year-end forecasts by third-party reservoir engineering firms.
- New production from the Nickel Hill’s wells is expected by the end of the month.
- The oil mix is anticipated to trend in the mid- to high 70s percentage-wise for the remainder of the year.
Bearish Highlights
- Lower prices and higher operating expenses contributed to a 9% decrease in adjusted EBITDA.
- Net income decreased significantly due to noncash unrealized mark-to-market adjustments on hedges and deferred income tax expenses.
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Bullish Highlights
- Production increased due to new wells added in 2023.
- The borrowing base increase to $50 million indicates strong asset value and provides greater capital flexibility.
- Efficiency improvements have led to reduced well costs, from a budgeted $7.2 million to around $5.6 million.
Misses
- Adjusted EBITDA and net income were lower compared to the same quarter in the previous year.
Q&A Highlights
- The company expects the oil cut to return to the mid- to high 70s percentage range in subsequent quarters.
- Operating expenses came in lower than analyst estimates, which was attributed to efficient operations and reduced water…
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