Kelt Exploration (KEL) Q3 2024 earnings summary

Executive summary

• Q3 2024 average production rose 15% year-over-year to 32,378 BOE/d, with oil output up 23% and gas up 16%.

• Net income for Q3 2024 was $8.9 million, down 56% from Q3 2023; nine-month net income was $31.6 million, down 49%.

• Q3 petroleum and natural gas sales were $107.9 million, an 8% decrease year-over-year.

• Adjusted funds from operations for Q3 2024 were $48.9 million ($0.24/share diluted), down from $58.8 million ($0.30/share diluted) in Q3 2023.

Financial highlights

• Nine-month petroleum and natural gas sales totaled $343.4 million, down 6% year-over-year.

• Q3 2024 capital expenditures were $82.1 million, with $48.5 million on drilling/completions and $32.6 million on facilities.

• Net debt at September 30, 2024 was $95.9 million, or 0.4x trailing twelve months AFFO.

• Year-end 2024 net debt is forecast at $117.0 million, or 0.5x forecasted AFFO.

Outlook and guidance

• 2024 capital expenditure guidance remains at $325 million.

• 2024 average production guidance reduced to 32,000–33,500 BOE/d due to Albright Gas Plant start-up delay.

• 2024 AFFO forecast lowered to $221.5 million (down 18% from prior guidance) due to lower commodity prices and delayed production.

• Exit 2024 production expected at 36,000–38,000 BOE/d; Q1 2025 exit rate forecast at 45,000–50,000 BOE/d with Albright online.

• 2025 capital and operating guidance to be provided in early January 2025.