Kelt Exploration (KEL) Q3 2025 earnings summary

Executive summary

• Petroleum and natural gas sales for Q3 2025 were CA$110.4 million, up 2% year-over-year; nine-month sales reached CA$369.3 million, up 8% year-over-year.

• Average daily production in Q3 2025 was 37,710 BOE/d, a 16% increase from Q3 2024, with a 36% oil and NGLs weighting.

• Q3 2025 net income was a loss of CA$7.4 million, compared to a profit of CA$8.9 million in Q3 2024; nine-month net income was CA$44.0 million, up 39% year-over-year.

• Production was impacted by temporary shut-ins due to low AECO prices and plant maintenance, but all shut-in volumes have returned online.

Financial highlights

• Adjusted funds from operations for Q3 2025 were CA$44.6 million (CA$0.22/share diluted), down 9% year-over-year; nine-month adjusted funds from operations were CA$184.7 million, up 21%.

• Net debt at September 30, 2025 was CA$223.7 million.

• Capital expenditures in Q3 2025 were CA$89.8 million, with CA$56.6 million on drilling/completions and CA$32.0 million on facilities.

• Realized oil price in Q3 2025 was CA$84.91/bbl (down 10% year-over-year); NGLs CA$33.70/bbl (down 31%); gas CA$1.71/Mcf (up 37%).

Outlook and guidance

• 2025 production forecast revised to 40,000–41,000 BOE/d, a 22% increase from 2024, but below previous guidance due to plant delays and shut-ins.

• Adjusted funds from operations for 2025 forecasted at CA$280 million, down from prior CA$325 million guidance.

• Net debt expected to decrease to CA$170 million by year-end 2025, or 0.6x forecasted adjusted funds from operations.

• Capital expenditures for 2025 expected at CA$325 million.