Canacol Energy (CNE) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted EBITDAX of $296.1 million in 2024, up 25% year-over-year, with strong operational margins and cost efficiencies.

• Largest independent natural gas producer in Colombia with ~16% market share and 10x production growth since 2013.

• Realized natural gas prices averaged $6.99 per 1,000 scf, with netbacks up 32% to $5.41 per 1,000 scf and operational margin at 77%.

• Strategic expansion into Bolivia, targeting rapid commercialization and high export prices, with four contracts pending ratification.

• Strong ESG performance, ranked fourth globally in sector, with GHG emissions 75% lower than oil peers and robust governance.

Financial highlights

• Q4 2024 realized natural gas price net of transportation was $7.81 per MCF, with operating expenses at $0.45 per MCF, down 26% year-over-year.

• Q4 2024 operating netbacks reached $6.12 per MCF, up 39% year-over-year, the highest in company history.

• Q4 2024 revenues net of royalties and transportation were $98.3 million, up 23% year-over-year.

• Adjusted funds from operations for Q4 were $52.1 million, up 68% year-over-year; adjusted EBITDAX was $76.1 million, up 43%.

• Cash and equivalents of $79 million at year-end 2024, with a working capital surplus of $45.5 million.

Outlook and guidance

• 2025 focus: maintain/grow EBITDA and reserves, high-impact exploration, debt reduction, Bolivia entry, and ESG strategy.

• 2025 capital program guidance: $143 million-$160 million, with plans to drill up to 11 exploration and 3 development wells.

• Expected 2025 average gas sales: 140-153 MMscfd at $7.33-$7.65/Mcf, with 111 MMscfd under firm take-or-pay contracts.

• EBITDA forecast for 2025: $264-$312 million; netbacks $5.81-$6.19 per 1,000 scf.

• Strategic entry into Bolivia with initial production targeted for 2026.