Kelt Exploration (KEL) Q1 2025 earnings summary

Executive summary

• Achieved record average quarterly production of 40,015 BOE/d in Q1 2025, up 22% year-over-year, with 38% oil/NGLs and 62% gas weighting.

• Petroleum and natural gas sales rose 13% to $142.5 million compared to Q1 2024.

• Net income increased 60% to $19.0 million, with diluted EPS of $0.09, up from $0.06 in Q1 2024.

Financial highlights

• Adjusted funds from operations grew 28% to $78.2 million ($0.39/share diluted) year-over-year.

• Net debt at March 31, 2025 was $150.0 million, or 0.5x annualized Q1 adjusted funds from operations.

• Net capital expenditures were $104.7 million, with $48.6 million on drilling/completions and $45.1 million on facilities.

• Realized $6.4 million in derivative gains, adding $1.77/BOE to netback.

Outlook and guidance

• 2025 capital program set at $325.0 million, down 1% from prior forecast, with 33 wells to be drilled.

• 2025 production guidance raised to 44,000–47,000 BOE/d, up 33–42% from 2024 average.

• Adjusted funds from operations for 2025 forecasted at $325.0 million, 6% below previous guidance.

• 2025 average WTI oil price assumption reduced by 9% to US$63.00/bbl.

• Year-end 2025 net debt expected at $126.0 million, or 0.4x forecasted adjusted funds from operations.