Kelt Exploration (KEL) Q2 2025 earnings summary

Executive summary

• Q2 2025 petroleum and natural gas sales rose 7% year-over-year to CA$116.4 million; adjusted funds from operations increased 46% to CA$61.8 million.

• Net income for Q2 2025 was CA$32.5 million, up 198% compared to Q2 2024; diluted EPS was CA$0.16, a 220% increase year-over-year.

• Average daily production in Q2 2025 was 38,734 BOE/d, up 26% year-over-year, with 36% oil/NGLs and 64% gas.

• Realized oil and NGL prices declined 20% and 34% respectively, while realized gas price increased 41% year-over-year.

Financial highlights

• Six-month 2025 petroleum and natural gas sales totaled CA$258.9 million, up 10% year-over-year.

• Adjusted funds from operations for the first half of 2025 reached CA$140.1 million, a 35% increase year-over-year.

• Net capital expenditures for Q2 2025 were CA$91.0 million, with significant investment in drilling, completions, and facilities.

• Net debt at June 30, 2025 was CA$178.2 million, representing 0.5x forecasted 2025 adjusted funds from operations.

Outlook and guidance

• 2025 production forecast revised to 42,000–45,000 BOE/d due to delayed Albright Gas Plant start-up; previous guidance was 44,000–47,000 BOE/d.

• Adjusted funds from operations for 2025 expected at CA$325.0 million, unchanged from prior guidance.

• Net debt at year-end 2025 projected at CA$126.0 million, or 0.4x forecasted adjusted funds from operations.

• Company entered into commodity hedges to support a CA$325.0 million capital program for 2025.

• Sulphur sales from Albright Plant expected to add up to CA$8.0 million in annual revenue.