Kelt Exploration (KEL) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly production of 48,098 BOE/d in Q1 2026, up 20% year-over-year and above guidance.

• Q1 2026 petroleum and natural gas sales were $168.1 million, an 18% increase from Q1 2025.

• Adjusted funds from operations rose 8% year-over-year to $84.6 million ($0.42/share diluted).

• Net income dropped sharply to $0.7 million from $19.0 million in Q1 2025.

Financial highlights

• Q1 2026 cash provided by operating activities was $89.7 million, up 3% year-over-year.

• Net debt at March 31, 2026 was $215.1 million, or 0.5x forecasted 2026 adjusted funds from operations.

• Capital expenditures in Q1 2026 totaled $114.3 million, up 9% year-over-year.

• Realized oil price averaged $92.73/bbl (down 1%), NGLs $42.74/bbl (up 4%), gas $2.95/Mcf (up 1%).

• Combined net realized price before derivatives was $38.04/BOE, down 2% year-over-year.

Outlook and guidance

• 2026 production forecast remains 50,000–52,000 BOE/d, unchanged from prior guidance.

• Adjusted funds from operations for 2026 forecasted at $400 million, up 7% from previous estimate.

• 2026 capital expenditure budget increased to $375 million, with $279 million for drilling/completions.

• Net debt expected to decrease to $165 million by year-end 2026 (0.4x AFFO).

• Oil and NGLs weighting in production expected to rise to 40% in H2 2026.