Kolibri Global Energy (KEI) Sidoti September Small-Cap Virtual Conference summary

Financial position and reserves

• Maintains financial stability with low debt and strong cash flow growth, fully funding 2024 drilling from cash flow and a $50M credit line.

• Holds 32 million BOE in proved reserves and 54 million BOE in proved plus probable reserves, with 76% of proved reserves undeveloped.

• Enterprise value is $148M, while proved reserves are valued at $483M, indicating significant upside.

• Trades at a substantial discount to net asset value compared to peers, with a share price around $3.20 versus a NAV of $13.50 per share for proved reserves.

• Debt to adjusted EBITDA is less than 1, and operating expenses per BOE are among the lowest in the peer group.

Operational strategy and field development

• Focuses on the Tishomingo Shale oil field in Oklahoma, with a shift from gas to 74% oil production.

• Recently drilled and completed two successful Caney wells and three longer one-and-a-half-mile laterals under budget.

• Plans full field development with longer laterals to access 50% more reserves per well, aiming for higher economic returns.

• Forecasts 2024 production of 3,200–3,700 BOE/day, a 14–33% increase over 2023.

• Infrastructure is in place, with oil trucked out and gas sold via Exxon's gathering system.

Growth, efficiency, and shareholder returns

• Adjusted EBITDA projected at $43M–$48M for 2024, with capital expenditures of $33M–$39M.

• Drilling efficiency improved, reducing well costs from $7.2M to $5.5M and drilling time from 30 to 12–14 days.

• Board approved a shareholder return policy, including a share buyback program starting September 23.

• Free cash flow is expected to increase as growth moderates, enabling debt reduction and potential dividends.

• Maintenance CapEx to hold production flat is estimated at $22M for four wells per year.