Kolibri Global Energy (KEI) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $22.5 million in Q2 2026, up 109% year-over-year, driven by a 46% increase in production and a 41% rise in average prices, despite three wells being shut in for one-third of the quarter.

• Net income rose 197% to $8.5 million, with basic EPS of $0.24, reflecting higher revenues partially offset by increased operating and depletion expenses and realized losses on commodity contracts.

• Adjusted EBITDA grew 114% to $16.4 million, supported by higher revenues and partially offset by higher expenses.

• Drilled three Clifton Mack wells and began drilling the Lovina well, the first test of the False Caney formation.

• Continued execution of strategy to grow production by converting reserves into producing wells, with new wells contributing significantly to output.

Financial highlights

• Oil and gas gross revenues reached $28.4 million in Q2 2026, up 106% from Q2 2025; oil revenues increased 117% due to a 53% rise in prices and 42% higher production.

• Year-to-date net revenue rose 55% to $42.1 million, with net income of $12.5 million and basic EPS of $0.35.

• Adjusted EBITDA for the first half was $31.3 million, up 52% year-over-year.

• Production and operating expenses were $3.4 million, up from $1.7 million, mainly due to higher production and workover costs.

• General and administrative expenses increased 12% to $1.6 million, driven by higher consulting and legal costs.

Outlook and guidance

• Four new wells from the 2026 drilling program are expected to drive further growth, primarily impacting Q4 production.

• Completion of three Clifton Mack wells expected to begin fracture stimulation in Q3 2026, with production anticipated by quarter-end.

• Q3 is anticipated to be the lowest production quarter, with Q4 expected to be the highest for the year.

• Guidance remains unchanged; performance will depend on the results from new wells.

• Strategy revised to target additional benches, including the False Caney bench, with the first 2-mile lateral well planned.