All amounts are in U.S. Dollars unless otherwise indicated:
FIRST QUARTER HIGHLIGHTS
- Average production for the first quarter of 2023 was 3,194
BOEPD, an increase of 203% compared to first quarter of 2022
average production of 1,054 BOEPD. The production increase is due
to the additional production from the five wells in the 2022
drilling program.
- Adjusted EBITDA(1) was $11.4 million in the first quarter of
2023 compared to $2.8 million in the first quarter of 2022. The
increase was due to higher production partially offset by lower
average prices.
- Revenue, net of royalties was $14.2 million in the first
quarter of 2023 compared to $5.5 million for the first quarter of
2022, an increase of 158%. The increase was due to higher
production partially offset by lower average prices.
- Net income in the first quarter of 2023 was $7.9 million,
compared to a net loss of $2.5 million in the same period of 2022.
The increase was due to higher production partially offset by lower
average prices. In addition, the Company had an unrealized gain on
commodity contracts in the first quarter of 2023 compared to an
unrealized loss in the first quarter of 2022.
- Average netback from operations(2) for the first quarter of
2023 was $43.67 per BOE, a decrease of 11% from the prior year
first quarter of $48.91 per BOE due to lower average prices.
Netback including commodity contracts(2) for the first quarter of
2023 was $42.23 per BOE compared to $36.88 in the first quarter of
2022, an increase of 15% from the prior year period. The increase
compared to the prior year was due to lower realized losses from
commodity contracts in the first quarter of 2023 compared to the
first quarter of 2022.
- Production and operating expense per barrel averaged $6.04 per
BOE in the first quarter of 2023 compared to $9.56 per BOE in the
first quarter of 2022, a decrease of 37%. The decrease was due to
lower production taxes and increased production which reduced the
per barrel fixed costs.
- At March 31, 2023, the Company had $6.8 million of available
borrowing capacity on the credit facility. The Company is currently
awaiting its next redetermination from the bank which is expected
to occur in the second quarter of 2023.
(1)
Adjusted EBITDA is considered a non-GAAP
measure. Refer to the section entitled “Non-GAAP Measures” of this
earnings release.
(2)
Netback from operations and netback
including commodity contracts are considered non-GAAP ratios. Refer
to the section entitled “Non-GAAP Measures” of this earnings
release.
Kolibri’s President and Chief Executive Officer, Wolf Regener
commented:
“We are pleased with the first quarter performance of the
Company, which included production from the three wells that were
drilled at the end of 2022. Those wells far exceeded our management
type curve, as did all of our wells that were drilled in 2022. We
started our 2023 drilling program with the drilling of the first
three wells, which we expect will further increase our production
and cash flow. Both the Barnes 8-2H (98% working interest) and the
Barnes 8-3H (98% working interest) have been drilled and cased, and
the Barnes 8-1H (98% working interest) is currently being drilled.
We expect to begin fracture stimulation operations in late May
2023, with production expected to begin in June 2023.
“Average production for the first quarter of 2023 was 3,194
BOEPD, an increase of 203% compared to first quarter of 2022
average production of 1,054 BOEPD. The production increase is due
to the additional production from the five wells in the 2022
drilling program.
“In the first quarter of 2023, we generated $11.4 million of
adjusted EBITDA, compared to $2.8 million in the first quarter of
2022, which was an increase of 305%. The increase was due to higher
average production of 203% partially offset by lower average prices
of 16%.
“Net revenue increased by 158% in the first quarter of 2023 due
to higher average production partially offset by lower prices.
“Net income in the first quarter of 2023 was $7.9 million,
compared to a net loss of $2.5 million in the same period of 2022.
The increase was due to higher production, partially offset by
lower average prices. In addition, the Company had an unrealized
gain on commodity contracts in the first quarter of 2023 compared
to an unrealized loss in the first quarter of 2022.
“Netback from operations(2) decreased to $43.67 per BOE in the
first quarter of 2023 compared to $48.91 per BOE in the same period
of 2022, a decrease of 11% due to lower average prices. Netback
including commodity contracts(2) for the first quarter of 2023 was
$42.23 per BOE compared to $36.88 in 2022, an increase of 15% from
the prior year period. The increase compared to the prior year was
due to lower realized losses from commodity contracts in the first
quarter of 2023 compared to the first quarter of 2022.
“Production and operating expense per barrel averaged $6.04 per
BOE in the first quarter of 2023 compared to $9.56 per BOE in the
first quarter of 2022, a decrease of 37%. The decrease was due to
lower production taxes and increased production which reduced the
per barrel fixed costs.”
1st Qtr 2023
1st Qtr 2022
%
Net income (loss):
$ Thousands
$
7,896
$
(2,456
)
-
$ per common share assuming dilution
$
0.22
$
(0.07
)
-
Capital Expenditures
$
4,188
$
7,401
(43
)%
Adjusted EBITDA(1)
$
11,396
$
2,812
305
%
Average production per day (Boepd)
3,194
1,054
203
%
Average price per boe
$
62.87
$
74.97
(16
)%
Netback from operations(2)
$
43.67
$
48.91
(11
)%
Netback including commodity
contracts(2)
$
42.23
$
36.88
15
%
3/31/2023
12/31/2022
Cash and Cash Equivalents
$
3,771
$
1,037
Working Capital
$
113
$
(6,569
)
(1)
Adjusted EBITDA is considered a non-GAAP
measure. Refer to the section entitled “Non-GAAP Measures” of this
earnings release.
(2)
Netback from operations and netback
including commodity contracts are considered non-GAAP ratios. Refer
to the section entitled “Non-GAAP Measures” of this earnings
release.
First Quarter 2023 versus First Quarter
2022
Oil and gas gross revenues totaled $16,278,000 in the first
quarter of 2023 versus $6,179,000 in the first quarter of 2022. Oil
revenues increased $10,099,000 or 163% as oil production increased
by 240% to 2,431 bopd partially offset by an oil price decrease of
$21.77 per barrel or 23% to $74.40 per barrel. Natural gas revenues
increased $424,000, or 108%, to $815,000 as natural gas production
increased by 132% to 2,138 mcfpd partially offset by a price
decrease of 10% to $4.24/mcf. Natural gas liquids (NGLs) revenues
increased $440,000, or 81%, as NGL production increased by 119% to
407 boepd partially offset by a price decrease of 17 to $26.77 per
BOE.
Average production for the first quarter of 2023 was 3,194
BOEPD, an increase of 203% compared to first quarter of 2022
average production of 1,054 BOEPD. The production increase is due
to the additional production from the five wells in the 2022
drilling program.
Production and operating expenses for the first quarter of 2023
was $1.6 million compared to $0.9 million in the prior year period,
an increase of 77%. The increase is due to the increase in
production of 203% partially offset by lower production taxes and
compressor costs which are accounted for as leases under IFRS 16
and therefore not included in the first quarter of 2023 production
and operating expenses. Production and operating expenses including
these compressor costs would have been $1.7 million for the first
quarter of 2023.
Depletion and depreciation expense for the first quarter of 2023
was $4.3 million compared to $1.1 million in the same period of
2022. The increase of 290% is due to increased production and a
higher PP&E balance.
General and administrative expenses for the first quarter of
2023 was $0.9 million compared to $0.7 million for the same period
of 2022, an increase of 29%. The increase is due to increases in
both payroll costs and director fees in 2023 and an increase in
investor relations and marketing costs in 2023.
Finance income increased $1.3 million in the first quarter of
2023 compared to the prior year quarter due to an unrealized gain
on commodity contracts in 2023.
Finance expense decreased $4.2 million in the first quarter of
2023 compared to the prior year quarter due primarily to an
unrealized loss on commodity contracts in the first quarter of 2022
of $3.8 million.
KOLIBRI GLOBAL ENERGY
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
(Unaudited, Expressed in
Thousands of United States Dollars)
($000 except as noted)
March 31
December 31
2023
2022
Current Assets
Cash
$
3,771
$
1,037
Trade and other receivables
5,536
5,773
Deposits and prepaid expenses
774
670
10,081
7,480
Non-current assets
Property, plant and equipment
176,727
176,554
Right of use assets
1,215
48
177,942
176,602
Total Assets
$
188,023
$
184,082
Current Liabilities
Trade and other payables
$
8,642
$
12,596
Lease payable
742
32
Fair value of commodity contracts
584
1,421
9,968
14,049
Non-current liabilities
Loans and borrowings
17,819
17,799
Asset retirement obligations
1,589
1,425
Lease payable
488
17
Fair value of commodity contracts
41
594
19,937
19,835
Equity
Share capital
296,227
296,221
Contributed surplus
23,272
23,254
Deficit
(161,381
)
(169,277
)
Total Equity
158,118
150,198
Total Equity and Liabilities
$
188,023
$
184,082
KOLIBRI GLOBAL ENERGY
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited, expressed in
Thousands of United States dollars, except per share
amounts)
($000 except as noted)
Three months ended March
31,
($000’s)
2023
2022
Oil and gas revenue net of royalties
$
14,293
$
5,547
Other income
1
1
14,294
5,548
Production and operating expenses
1,553
907
Depletion and depreciation
4,338
1,139
General and administrative expenses
930
686
Share based compensation
18
125
$
6,839
$
2,857
Finance Income
1,390
12
Finance Expense
(949
)
(5,159
)
Net income (loss)
7,896
(2,456
)
Net income (loss) per share
$
0.22
$
(0.07
)
KOLIBRI GLOBAL ENERGY
INC.
FIRST QUARTER 2023
(Unaudited, expressed in
Thousands of United States dollars, except as noted)
Quarter Ending March
31,
2023
2022
Oil revenue before royalties
$
16,278
$
6,179
Natural gas revenue before royalties
815
391
NGL revenue before royalties
981
541
Oil and Gas revenue before royalties
18,074
7,111
Adjusted EBITDA(1)
11,396
2,812
Capital expenditures
4,188
7,401
Statistics:
Average oil production (Bopd)
2,431
714
Average natural gas production (mcf/d)
2,138
922
Average NGL production (Boepd)
407
186
Average production (Boepd)
3,194
1,054
Average oil price ($/bbl)
$
74.40
$
96.17
Average natural gas price ($/mcf)
4.24
4.71
Average NGL price ($/bbl)
26.77
32.25
Average price per barrel
$
62.87
$
74.97
Royalties per barrel
13.16
16.50
Operating expenses per barrel(3)
6.04
9.56
Netback from operations(2)
43.67
48.91
Price adjustment from commodity contracts
(Boe)
(1.44
)
(12.03
)
Netback including commodity contracts
(Boe)(2)
$
42.23
$
36.88
(1)
Adjusted EBITDA is considered a non-GAAP
measure. Refer to the section entitled “Non-GAAP Measures” of this
earnings release.
(2)
Netback from operations and netback
including commodity contracts are considered non-GAAP ratios. Refer
to the section entitled “Non-GAAP Measures” of this earnings
release.
(3)
Operating expenses in the first quarter of
2023 include $182,625 of compressor costs that are accounted for as
a lease under IFRS 16 as of January 1, 2023.
The information outlined above is extracted from and should be
read in conjunction with the Company's unaudited financial
statements for the three months ended March 31, 2023 and the
related management's discussion and analysis thereof, copies of
which are available under the Company's profile at
www.sedar.com.
NON-GAAP MEASURES
Netback from operations, netback including commodity contracts
and adjusted EBITDA (collectively, the "Company’s Non-GAAP
Measures") are not measures or ratios recognized under Canadian
generally accepted accounting principles ("GAAP") and do not have
any standardized meanings prescribed by IFRS. Management of the
Company believes that such measures and ratios are relevant for
evaluating returns on each of the Company's projects as well as the
performance of the enterprise as a whole. The Company's Non-GAAP
Measures may differ from similar computations as reported by other
similar organizations and, accordingly, may not be comparable to
similar non-GAAP measures and ratios as reported by such
organizations. The Company’s Non-GAAP Measures should not be
construed as alternatives to net income, cash flows related to
operating activities, working capital or other financial measures
and ratios determined in accordance with IFRS, as an indicator of
the Company's performance.
An explanation of how the Company’s Non-GAAP Measures provide
useful information to an investor and the purposes for which the
Company’s management uses the Non-GAAP Measures is set out in the
management's discussion and analysis under the heading “Non-GAAP
Measures” which is available under the Company's profile at
www.sedar.com and is incorporated by reference into this earnings
release.
The following is the reconciliation of the non-GAAP ratio
netback from operations to net income (loss) from continuing
operations, which the Company considers to be the most directly
comparable financial measure that is disclosed in the Company’s
financial statements:
(US $000)
For the three months ended
March 31,
2023
2022
Net income (loss)
7,896
(2,456
)
Adjustments:
Finance income
(1,390
)
(12
)
Finance expense
949
5,159
Share based compensation
18
125
General and administrative expenses
930
686
Depletion, depreciation and
amortization
4,338
1,139
Other income
(1
)
(1
)
Operating netback
12,740
4,640
Netback from operations
$
43.67
$
48.91
The following is the reconciliation of the non-GAAP measure
adjusted EBITDA to the comparable financial measures disclosed in
the Company’s financial statements:
(US $000)
Three months ended March
31,
2023
2022
Net income (loss)
7,896
(2,456
)
Depletion and depreciation
4,338
1,139
Accretion
45
6
Interest expense
485
225
Unrealized (gain) loss on commodity
contracts
(1,390
)
3,786
Share based compensation
18
125
Interest income
-
(2
)
Other income
(1
)
(1
)
Foreign currency loss (gain)
5
(10
)
Adjusted EBITDA
11,396
2,812
CAUTIONARY STATEMENTS
In this news release and the Company’s other public
disclosure:
(a)
The Company's natural gas production is
reported in thousands of cubic feet ("Mcfs"). The Company
also uses references to barrels ("Bbls") and barrels of oil
equivalent ("Boes") to reflect natural gas liquids and oil
production and sales. Boes may be misleading, particularly if used
in isolation. A Boe conversion ratio of 6 Mcf:1 Bbl is based on an
energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead. Given that the value ratio based on the current price of
crude oil as compared to natural gas is significantly different
from the energy equivalency of 6:1, utilizing a conversion on a 6:1
basis may be misleading as an indication of value.
(b)
Discounted and undiscounted net present
value of future net revenues attributable to reserves do not
represent fair market value.
(c)
Possible reserves are those additional
reserves that are less certain to be recovered than probable
reserves. There is a 10% probability that the quantities actually
recovered will equal or exceed the sum of proved plus probable plus
possible reserves.
(d)
The Company discloses peak and 30-day
initial production rates and other short-term production rates.
Readers are cautioned that such production rates are preliminary in
nature and are not necessarily indicative of long-term performance
or of ultimate recovery.
Caution Regarding Forward-Looking Information
This release contains forward-looking information including
information regarding the proposed timing and expected results of
exploratory and development work including production from the
Company's Tishomingo field, Oklahoma acreage, projected increases
in production and cash flow, the Company’s reserves based loan
facility, expected hedging levels and the Company’s strategy and
objectives. The use of any of the words “target”, “plans”,
"anticipate", "continue", "estimate", "expect", "may", "will",
"project", "should", "believe" and similar expressions are intended
to identify forward-looking statements.
Such forward-looking information is based on management’s
expectations and assumptions, including that the Company's geologic
and reservoir models and analysis will be validated, that
indications of early results are reasonably accurate predictors of
the prospectiveness of the shale intervals, that previous
exploration results are indicative of future results and success,
that expected production from future wells can be achieved as
modeled, that declines will match the modeling, that future well
production rates will be improved over existing wells, that rates
of return as modeled can be achieved, that recoveries are
consistent with management’s expectations, that additional wells
are actually drilled and completed, that design and performance
improvements will reduce development time and expense and improve
productivity, that discoveries will prove to be economic, that
anticipated results and estimated costs will be consistent with
management’s expectations, that all required permits and approvals
and the necessary labor and equipment will be obtained, provided or
available, as applicable, on terms that are acceptable to the
Company, when required, that no unforeseen delays, unexpected
geological or other effects, equipment failures, permitting delays
or labor or contract disputes are encountered, that the development
plans of the Company and its co-venturers will not change, that the
demand for oil and gas will be sustained or increase, that the
Company will continue to be able to access sufficient capital
through financings, credit facilities, farm-ins or other
participation arrangements to maintain its projects, that the
Company will continue in compliance with the covenants under its
reserves-based loan facility and that the borrowing base will not
be reduced, that funds will be available from the Company’s
reserves based loan facility when required to fund planned
operations, that the Company will not be adversely affected by
changing government policies and regulations, social instability or
other political, economic or diplomatic developments in the
countries in which it operates and that global economic conditions
will not deteriorate in a manner that has an adverse impact on the
Company's business and its ability to advance its business
strategy.
Forward looking information involves significant known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated. These risks include,
but are not limited to: the risk that any of the assumptions on
which such forward looking information is based vary or prove to be
invalid, including that the Company’s geologic and reservoir models
or analysis are not validated, that anticipated results and
estimated costs will not be consistent with management’s
expectations, the risks associated with the oil and gas industry
(e.g. operational risks in development, exploration and production;
delays or changes in plans with respect to exploration and
development projects or capital expenditures; the uncertainty of
reserve and resource estimates and projections relating to
production, costs and expenses, and health, safety and
environmental risks including flooding and extended interruptions
due to inclement or hazardous weather), the risk of commodity price
and foreign exchange rate fluctuations, risks and uncertainties
associated with securing the necessary regulatory approvals and
financing to proceed with continued development of the Tishomingo
Field, the risk that the Company or its subsidiaries is not able
for any reason to obtain and provide the information necessary to
secure required approvals or that required regulatory approvals are
otherwise not available when required, that unexpected geological
results are encountered, that completion techniques require further
optimization, that production rates do not match the Company’s
assumptions, that very low or no production rates are achieved,
that the Company will cease to be in compliance with the covenants
under its reserves-based loan facility and be required to repay
outstanding amounts or that the borrowing base will be reduced
pursuant to a borrowing base re-determination and the Company will
be required to repay the resulting shortfall, that the Company is
unable to access required capital, that funding is not available
from the Company’s reserves based loan facility at the times or in
the amounts required for planned operations, that occurrences such
as those that are assumed will not occur, do in fact occur, and
those conditions that are assumed will continue or improve, do not
continue or improve and the other risks identified in the Company’s
most recent Annual Information Form under the “Risk Factors”
section, the Company’s most recent management's discussion and
analysis and the Company’s other public disclosure, available under
the Company’s profile on SEDAR at www.sedar.com.
Although the Company has attempted to take into account
important factors that could cause actual costs or results to
differ materially, there may be other factors that cause actual
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. The forward-looking information
included in this release is expressly qualified in its entirety by
this cautionary statement. Accordingly, readers should not place
undue reliance on forward-looking information. The Company
undertakes no obligation to update these forward-looking
statements, other than as required by applicable law.
About Kolibri Global Energy Inc.
KEI is an North American energy company focused on finding and
exploiting energy projects in oil, gas and clean and sustainable
energy. Through various subsidiaries, the Company owns and operates
energy properties in the United States. The Company continues to
utilize its technical and operational expertise to identify and
acquire additional projects. The common shares of the Company trade
on the Toronto Stock Exchange (“TSX”) under the symbol “KEI” and on
the Over the Counter QX (“OTCQX”) under the symbol “KGEIF”.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504006098/en/
Wolf E. Regener, President and Chief Executive Officer +1 (805)
484-3613 Email: investorrelations@kolibrienergy.com Website:
www.kolibrienergy.com
Kolibri Global Energy (TSX:KEI)
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