Canacol Energy (CNE) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $18.7 million, up 80% year-over-year; nine-month net income reached $64.3 million, reversing a prior year loss.

• Total revenues for Q3 2025 fell 21% year-over-year to $69.5 million; nine-month revenues dropped 18% to $207.0 million.

• Adjusted EBITDAX declined 43% in Q3 and 31% for the nine months, mainly due to lower natural gas and LNG sales volumes.

• Operating netbacks for natural gas and LNG improved slightly to $5.34/Mcf in Q3, driven by higher average sales prices.

Financial highlights

• Adjusted funds from operations decreased 20% in Q3 and 22% for the nine months, reflecting lower EBITDAX.

• Cash flows from operating activities rose 121% in Q3 to $48.0 million; nine-month cash flows increased 8%.

• Net cash capital expenditures increased 63% in Q3 and 57% for the nine months, mainly for drilling and compression facilities.

• Cash and cash equivalents stood at $36.5 million as of September 30, 2025, with a working capital deficit of $29.9 million.

Outlook and guidance

• Focus remains on completing drilling, workover programs, and installing additional compression for the rest of 2025.

• Two exploration wells were abandoned due to non-commercial gas; new development and exploration wells planned before year-end.

• Ongoing discussions with banking groups to address liquidity concerns.