KGEI · Kolibri Global Energy Inc.

Kolibri Global Energy Inc. delivered its strongest quarterly performance in company history for Q1 2026, with oil and natural gas revenue net of royalties reaching $19.6 million, up 20% from $16.4 million in Q1 2025. This growth stemmed from a 15% increase in average daily production to 4,685 BOEPD from 4,077 BOEPD, primarily driven by new wells drilled and completed in 2025 contributing to higher oil output at 3,452 BOPD (up 21%). Average realized prices rose modestly 2% to $58.49 per BOE, supported by a 24% jump in natural gas prices to $4.79 per MCF, though offset by lower NGL prices. Netback from operations improved slightly to $38.41 per BOE from $37.55 per BOE, reflecting better royalty rates at 20.7% versus 22.1%. Production expenses rose to $8.00 per BOE from $7.07 per BOE due to workover costs on a non-operated well, reassessed gathering fees totaling $0.2 million, and higher water hauling. Despite record revenue, net income fell 30% to $4.0 million ($0.11 per share) from $5.8 million ($0.16 per share), pressured by a $2.9 million unrealized loss on commodity contracts amid rising oil prices, alongside higher finance expenses. Adjusted EBITDA, a key non-GAAP metric, climbed 16% to $14.8 million, highlighting robust cash generation with operating cash flow at $11.1 million. Balance sheet strengthened with working capital improving to $(5.1) million from $(12.6) million, cash at $2.7 million, and debt reduced to $47.8 million. Available liquidity expanded with credit facility borrowing base increased to $75 million in May 2026 (from $65 million), providing $16.5 million capacity at quarter-end. Operationally, the company is advancing three 1.5-mile lateral wells (88.1% working interest) in Tishomingo Field, Ardmore Basin, Oklahoma, with fracture stimulation planned post-drilling and first production targeted for Q3 2026. Management emphasized disciplined capital spending at $1.9 million (down 81% YoY) and plans further debt reduction to $25-30 million by year-end.