Kelt Exploration (KEL) Q4 2024 earnings summary

Executive summary

• 2024 petroleum and natural gas sales were $468.4M, down 5% year-over-year; Q4 sales were $125.1M, down 3% compared to Q4 2023.

• Net income for 2024 was $45.4M, a 47% decrease from $86.0M in 2023; Q4 net income was $13.8M, down 42% year-over-year.

• Average daily production in 2024 rose 9% to 33,115 BOE/d; Q4 production increased 13% to 36,450 BOE/d.

• Proved plus probable reserves increased 5% to 435.2M BOE; oil and NGL reserves up 17% year-over-year.

Financial highlights

• Adjusted funds from operations for 2024 were $222.0M ($1.11/share, diluted), down 20% year-over-year; Q4 was $69.4M ($0.35/share, diluted), up 6% from Q4 2023.

• Capital expenditures, net of A&D, were $333.1M in 2024, up 18% from 2023; Q4 capex was $97.0M, up 55% year-over-year.

• Net debt at year-end was $124.9M, up from $13.0M at the end of 2023; net debt to adjusted funds from operations ratio was 0.6x.

• Return on average capital employed (ROACE) for 2024 was 6%; three-year average ROACE was 14%.

Outlook and guidance

• 2025 capital expenditure program set at $328.0M; production guidance unchanged at 44,000–48,000 BOE/d.

• Two new third-party gas plants expected to start up in Q2 2025, enabling significant production ramp-up into Q3.