Investor Update
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Keo Capital (KEOC) Investor Update summary

Event summary combining transcript, slides, and related documents.

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Investor Update summary

30 Jun, 2026

Transformation and Strategic Portfolio

  • Completed a major transformation by divesting challenging assets in Brazil and Oman, converting them into cash and focusing on more promising opportunities.

  • Acquired accretive assets and initiated consolidation in Brazil, becoming the 4th largest shareholder in 3R Petroleum and establishing a leading position among smaller E&P companies.

  • Holds a 4.76% stake in 3R Petroleum, a major Brazilian E&P company, and exclusivity rights to acquire up to 24% of PetroUrdaneta in Venezuela, both with significant reserves and production potential.

  • 3R and Enauta merger created one of Latin America's largest E&P companies, with over 100,000 boed expected by year-end 2024 and strong free cash flow generation.

  • Significantly reduced costs and simplified the organization, relocating headquarters to Rio and halving the cost of debt.

Financial Position and Capital Allocation

  • Enhanced capital structure with $141.8M in cash and investments, full repayment of old debt, and new $15M debt at a reduced interest rate of 6.9%.

  • Market cap of $140 million USD, closely matched by cash and short-term investments, mainly shares in 3R Petroleum.

  • Ongoing share buyback program with authority to repurchase up to 10% of outstanding shares; over 750,000 shares already bought.

  • More than $40 million in earn-outs expected from previous divestments, providing additional financial flexibility.

Operational Updates and Growth Initiatives

  • Illinois Basin assets show growing production and decreasing cost per barrel, with recent drilling ramping up output by 53% year-on-year.

  • Illinois Basin operations continue to grow, with new wells drilled and production ramp-up expected in Q3 and Q4 2024.

  • Significant value created from DBO acquisition and roll-in to 3R, with further upside anticipated from operational synergies and increased production.

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