Kolibri Global Energy Announces Net Income of $7M for Second Quarter of 2022
NEWBURY PARK, Calif.–(BUSINESS WIRE)–All amounts are in U.S. Dollars unless otherwise indicated:
SECOND QUARTER HIGHLIGHTS
- Average production for the second quarter of 2022 was 1,928 BOEPD, an increase of 94% compared to the second quarter of 2021 average production of 994 BOEPD due to production from the Barnes 7-3H well which started production in March 2022 and the Barnes 8-4H well which started production at the end of April 2022
- Adjusted funds flow(1) was $8.6 million in the second quarter of 2022 compared to $1.6 million in the second quarter of 2021, an increase of 473%. The increase was due to a 94% increase in production and an 84% increase in average prices
- Revenue, net of royalties was $12.4 million in the second quarter of 2022 compared to $3.5 million for second quarter of 2021, an increase of 251%, as production increased by 94% and prices increased by 84%
- Net income in the second quarter of 2022 was $7.0 million, compared to a net loss of $1.4 million in the second quarter of 2021. The increase was due to higher production and taxes partially offset by higher realized losses on commodity contracts
- Average netback from operations(2) for the second quarter of 2022 was $63.06/boe, an increase of 108% from the prior year second quarter due to higher prices in 2022. Netback including commodity contracts(2) for the second quarter of 2022 was $53.66/boe which was 128% higher than the prior year second quarter
- Interest expense decreased by 6% in the second quarter of 2022 compared to the same period in the prior year due to principal payments on the credit facility during the second half of 2021 and 2022 which reduced the outstanding loan balance
- Production and operating expenses per barrel averaged $7.77 per BOE in the second quarter of 2022 compared to $8.81 per BOE in the second quarter of 2021, a decrease of 12%. The decrease was due to increased production which reduced the per barrel fixed costs partially offset by higher production taxes due to an increase in prices
- In May 2022, the Company completed a share consolidation on the basis of one post-consolidation common share for every ten pre-consolidation common shares. The consolidation reduced the number of common shares issued and outstanding from 356,159,098 common shares to 35,615,921 common shares. All information related to earnings per share, issued and outstanding common shares, stock options and per share amounts in the press release have been retrospectively adjusted to reflect the share consolidation
- In May 2022, the Company amended its credit facility with BOK Financial with an initial borrowing base of $20 million. The credit facility expires in June 2026 and the Company currently has $3.8 million of available borrowing capacity
| (1) | Adjusted funds flow is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. | |
| (2) | Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
Kolibri’s President and Chief Executive Officer, Wolf Regener commented:
“We are extremely pleased with the performance of our first two wells in the 2022 drilling program. Both the Barnes 7-3H and the Barnes 8-4H have exceeded our expected type curve. We generated over $8.6 million of adjusted funds flow(1) in the second quarter and over $7.0 million of net income from the outstanding performance of these two wells along with higher prices. After less than five months, the Barnes 7-3H well has already achieved payoff. We are excited that the drilling rig is scheduled to begin rigging up next week to continue our 2012 five well drilling program. We are planning to drill the next three wells back-to-back with completion activities scheduled to start in September. In order to prevent drilling delays due to potential supply chain issues, the Company had already purchased approximately $3.0 million of tubulars which is enough to supply all three of these wells.
With the continued support of BOK Financial, our credit facility now has an extended maturity of June 2026 with an initial commitment amount of $20 million giving us an available borrowing capacity of $3.8 million which will, along with cash flow from operations, allow us to continue our drilling program.
Average production for the second quarter of 2022 was 1,928 BOEPD, an increase of 94% compared to the second quarter of 2021 average production of 994 BOEPD due to production from the Barnes 7-3H well which started production in March 2022 and the Barnes 8-4H well which started production at the end of April 2022.
Adjusted funds flow(1) was $8.6 million in the second quarter of 2022 compared to $1.6 million in the second quarter of 2021, an increase of 473%. The increase was due to a 94% increase in production and an 84% increase in average prices.
Net revenue increased by 251% to $12.4 million in the second quarter of 2022 compared to $3.5 million for second quarter of 2021 due to the production and price increases.
Net income in the second quarter of 2022 was $7.0 million, compared to a net loss of $1.4 million in the second quarter of 2021. The increase was due to higher production and taxes partially offset by higher realized losses on commodity contracts
Netback from operations(2) for the second quarter of 2022 was $63.06/boe, an increase of 108% from the prior year second quarter due to higher prices in 2022. Netback including commodity contracts(2) for the second quarter of 2022 was $53.66/boe which was 128% higher than the prior year second quarter amount of $24.14/boe.
Operating expenses per barrel averaged $7.77 per BOE in the second quarter of 2022 compared to $8.81 per BOE in the second quarter of 2021, a decrease of 12%. The decrease was due to increased production which reduced the per barrel fixed costs partially offset by higher production taxes due to an increase in prices.
Interest expense decreased by 6% in the second quarter of 2022 compared to the same period in the prior year due to principal payments on the credit facility during the second half of 2021 and 2022 which reduced the outstanding loan balance.
The Company’s G&A expenses increased by 27% due to increases in payroll costs and director fees in 2022 and additional non-recurring professional costs related to the share consolidation process.”
|
|
Second Quarter |
|
|
First Six Months |
||||||||||||||||||
|
2022 |
|
2021 |
|
% |
2022 |
|
2021 |
|
% |
|||||||||||||
|
Net Income (Loss): |
||||||||||||||||||||||
|
$ Thousands |
$ |
7,007 |
|
$ |
(1,418 |
) |
|
– |
% |
$ |
4,551 |
$ |
(1,946 |
) |
– |
% |
||||||
|
$ per basic common share |
$ |
0.20 |
|
$ |
(0.06 |
) |
|
– |
|
$ |
0.13 |
$ |
(0.08 |
) |
– |
% |
||||||
|
$ per diluted common share |
$ |
0.19 |
|
$ |
(0.06 |
) |
|
– |
|
$ |
0.13 |
$ |
(0.08 |
) |
– |
% |
||||||
|
Capital Expenditures |
$ |
7,572 |
|
$ |
61 |
|
|
– |
|
$ |
14,973 |
$ |
90 |
|
– |
|
||||||
|
Average Production (Boepd) |
|
1,928 |
|
|
994 |
|
|
94 |
% |
|
1,493 |
|
1,007 |
|
48 |
% |
||||||
|
Average Price per Barrel |
$ |
92.02 |
|
$ |
49.97 |
|
|
84 |
% |
$ |
86.06 |
$ |
47.70 |
|
80 |
% |
||||||
|
Average Netback from operations(2) per Barrel |
$ |
63.06 |
|
$ |
30.30 |
|
|
108 |
% |
$ |
58.11 |
$ |
29.30 |
|
98 |
% |
||||||
|
Average Netback including commodity contracts(2) per Barrel |
$ |
53.66 |
|
$ |
23.49 |
|
|
128 |
% |
$ |
47.78 |
$ |
24.14 |
|
98 |
% |
||||||
|
June 2022 |
March 2022 |
December 2021 |
|
|||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
2,889 |
|
$ |
3,058 |
|
$ |
7,316 |
|
|||||||||||||
|
Working Capital |
$ |
(2,030 |
) |
$ |
(3,011 |
) |
$ |
3,823 |
|
|||||||||||||
|
(1) |
Adjusted funds flow is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
|
|
(2) |
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
Second Quarter 2022 versus Second Quarter 2021
Oil and gas gross revenues totaled $14,365,000 in the quarter versus $3,914,000 in the second quarter of 2021. Oil revenues increased $10,451,000 or 267% as average oil prices increased by $31.46 per barrel or 72% and oil production increased 114% to 1,439 boepd. Natural gas revenues increased $519,000 or 225% to $750,000 as average natural gas prices increased by $3.62/mcf or 127% to $6.48/mcf and natural gas production increased by 43% to 1,271 mcfpd. Natural gas liquids (NGLs) revenues increased $654,000 or 174% as average NGL prices increased 70% to $40.82/boe and NGL production increased by 61% to 277 boepd.
Average production for the second quarter of 2022 was 1,928 BOEPD, an increase of 94% compared to the second quarter of 2021 average production of 994 BOEPD due to production from the Barnes 7-3H well which started production in March 2022 and the Barnes 8-4H well which started production at the end of April 2022.
Production and operating expenses increased to $1,364,000 in the second quarter of 2022, an increase of 71%. Operating expenses averaged $7.77 per BOE for the second quarter of 2022 compared to $8.81 per BOE for the same period in 2021. The decrease was due to increased production which reduced the per barrel fixed costs partially offset by higher production taxes due to an increase in prices.
Depletion and depreciation expense increased $1,191,000 or 133% due to increased production and a higher PP&E balance after the reversal of previous impairment in the fourth quarter of 2021.
G&A expense increased $182,000 or 27% due to increases in payroll costs and director fees in 2022 and additional non-recurring professional costs related to the share consolidation process.
Share based compensation for the second quarter of 2022 was $32,000 compared to zero in the second quarter of 2021. The share based compensation was due to stock options awarded in January 2022.
Finance income increased $0.7 million in the second quarter of 2022 compared to the prior year quarter due to unrealized gains on commodity contracts in the second quarter of 2022.
Finance expense decreased $1.0 million in the second quarter of 2022 compared to the prior year quarter primarily due to unrealized losses on commodity contracts in 2021 partially offset by higher realized losses on commodity contracts in 2022.
FIRST SIX MONTHS 2022 HIGHLIGHTS
- Average production for the first six months of 2022 was 1,493 BOEPD, an increase of 48% compared to the first six months 2021 average production of 1,007 BOEPD due to production from the Barnes 7-3H well which started production in March 2022 and the Barnes 8-4H well which started production at the end of April 2022
- Adjusted funds flow(1) was $11.4 million in the first six months of 2022 compared to $3.0 million in the first six months of 2021, an increase of 280%. The increase was due to a 48% increase in production and an 80% increase in average prices partially offset by higher realized losses on commodity contracts
- Revenue, net of royalties was $18.0 million in the first six months of 2022 compared to $6.8 million for first six months of 2021, an increase of 164%, as prices increased by 80% and production increased by 48%
- Net income in the first six months of 2022 was $4.6 million, compared to a net loss of $1.9 million in the first six months of 2021. The increase was due to higher production and taxes partially offset by higher realized losses on commodity contracts
- Average netback from operations(2) for the first six months of 2022 was $58.11/boe, an increase of 98% from the prior year period due to higher prices in 2022. Netback including commodity contracts(2) for the first six months of 2022 was $47.78/boe which was 98% higher than the prior year period
- Production and operating expenses per barrel averaged $8.40 per BOE in the first six months of 2022 compared to $8.05 per BOE in the first six months of 2021, an increase of 4%. The increase was due to higher production taxes in the first six months of 2022 which were $4.16 per BOE compared to $2.46 per BOE in the prior year first six months. Operating expense per boe excluding production taxes for the first six months of 2022 decreased by 24% compared to the prior year period due to one-time field maintenance costs in 2021
- Interest expense decreased by 6% in the first six months of 2022 compared to the same period in the prior year due to principal payments on the credit facility during the second half of 2021 and 2022 which reduced the outstanding loan balance
|
(1) |
Adjusted funds flow is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
|
|
(2) |
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
First Six Months of 2022 versus First Six Months of 2021
Oil and gas gross revenues totaled $20,544,000 in the first six months of 2022 versus $7,424,000 in the first six months of 2021. Oil revenues increased $13,120,000 or 177% as average oil prices increased by $45.47 per barrel or 76% and oil production increased by 57% to 1,078 boepd. Natural gas revenues increased $619,000 or 119% to $1,141,000 as average natural gas prices increased by $2.51/mcf or 78% to $5.74/mcf and natural gas production increased by 23% to 1,097 mcfpd. Natural gas liquids (NGLs) revenues increased $820,000 or 109% as average NGL prices increased 55% to $37.40/boe and NGL production increased by 35% to 232 boepd.
Average production for the first six months of 2022 was 1,493 boepd, an increase of 48% from the average production of 1,007 boepd in the same period of 2021. The increase was due to production from the Barnes 7-3H well which started production in March 2022 and the Barnes 8-4H well which started production at the end of April 2022.
Production and operating expenses per barrel averaged $8.40 per BOE in the first six months of 2022 compared to $8.05 per BOE in the first six months of 2021, an increase of 4%. The increase was due to higher production taxes in the first six months of 2022 which were $4.16 per BOE compared to $2.46 per BOE in the prior year first six months. Operating expense per boe excluding production taxes for the first six months of 2022 decreased by 24% compared to the prior year period due to one-time field maintenance costs in 2021.
Depletion and depreciation expense increased $1,421,000 or 79% due to increased production and a higher PP&E balance after the reversal of previous impairment in the fourth quarter of 2021.
G&A expense increased $105,000 or 7% due to increases in payroll costs and director fees in 2022 and additional non-recurring professional costs related to the share consolidation process.
Share based compensation for the first six months of 2022 was $157,000 compared to zero in the first six months of 2021. The share based compensation was due to stock options awarded in January 2022.
Finance expense increased $1.9 million in the first six months of 2022 compared to the prior year period primarily due to higher realized losses on commodity contracts in 2022.
|
KOLIBRI GLOBAL ENERGY INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited, Expressed in Thousands of United States Dollars) |
||||||||
|
($000 except as noted) |
||||||||
|
June 30 |
|
December 31 |
||||||
|
2022 |
|
2021 |
||||||
|
Current Assets |
||||||||
|
Cash |
$ |
2,889 |
|
$ |
7,316 |
|
||
|
Trade and other receivables |
|
6,342 |
|
|
1,999 |
|
||
|
Other current assets |
|
1,022 |
|
|
587 |
|
||
|
|
|
10,253 |
|
|
9,902 |
|
||
|
Non-current assets |
||||||||
|
Property, plant and equipment |
|
158,940 |
|
|
147,114 |
|
||
|
Total Assets |
$ |
169,193 |
|
$ |
157,016 |
|
||
|
Current Liabilities |
||||||||
|
Trade and other payables |
$ |
8,310 |
|
$ |
3,145 |
|
||
|
Current portion of loans and borrowings |
|
– |
|
|
1,000 |
|
||
|
Lease payable |
|
6 |
|
|
43 |
|
||
|
Fair value of commodity contracts |
|
3,967 |
|
|
1,891 |
|
||
|
|
|
12,283 |
|
|
6,079 |
|
||
|
Non-current liabilities |
|
|
||||||
|
Loans and borrowings |
|
15,907 |
|
|
15,866 |
|
||
|
Asset retirement obligations |
|
1,475 |
|
|
1,398 |
|
||
|
Fair value of commodity contracts |
|
1,550 |
|
|
585 |
|
||
|
|
|
18,932 |
|
|
17,849 |
|
||
|
|
|
|
||||||
|
Equity |
||||||||
|
Share capital |
|
296,221 |
|
|
296,060 |
|
||
|
Contributed surplus |
|
23,126 |
|
|
22,948 |
|
||
|
Deficit |
|
(181,369 |
) |
|
(185,920 |
) |
||
|
Total Equity |
|
137,978 |
|
|
133,088 |
|
||
|
Total Equity and Liabilities |
$ |
169,193 |
|
$ |
157,016 |
|
||
|
KOLIBRI GLOBAL ENERGY INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
|||||||||||||
|
(Unaudited, expressed in Thousands of United States dollars, except per share amounts) |
|||||||||||||
|
($000 except as noted) |
|||||||||||||
|
|
|
Second Quarter |
|
First Six Months |
|||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||
|
|
|
|
|
|
|
||||||||
|
Oil and natural gas revenue, net |
$ |
12,428 |
|
3,539 |
|
17,975 |
|
6,808 |
|
||||
|
Other income |
|
28 |
|
– |
|
29 |
|
1 |
|
||||
|
|
|
12,456 |
|
3,539 |
|
18,004 |
|
6,809 |
|
||||
|
|
|
|
|
|
|
||||||||
|
Production and operating expenses |
|
1,364 |
|
797 |
|
2,271 |
|
1,467 |
|
||||
|
Depletion and depreciation expense |
|
2,087 |
|
896 |
|
3,226 |
|
1,805 |
|
||||
|
General and administrative expenses |
|
844 |
|
662 |
|
1,530 |
|
1,425 |
|
||||
|
Stock based compensation |
|
32 |
|
– |
|
157 |
|
– |
|
||||
|
Gain on forgiven loan |
|
– |
|
(303 |
) |
– |
|
(303 |
) |
||||
|
|
|
4,327 |
|
2,052 |
|
7,184 |
|
4,394 |
|
||||
|
|
|
|
|
|
|
||||||||
|
Finance income |
|
747 |
|
1 |
|
10 |
|
– |
|
||||
|
Finance expense |
|
(1,869 |
) |
(2,906 |
) |
(6,279 |
) |
(4,361 |
) |
||||
|
|
|
|
|
|
|
||||||||
|
Net income (loss) |
|
7,007 |
|
(1,418 |
) |
4,551 |
|
(1,946 |
) |
||||
|
Net income (loss) per basic share |
$ |
0.20 |
|
(0.06 |
) |
0.13 |
|
(0.08 |
) |
||||
|
Net income (loss) per diluted share |
$ |
0.19 |
|
(0.06 |
) |
0.13 |
|
(0.08 |
) |
||||
|
KOLIBRI GLOBAL ENERGY |
||||||||||||||||
|
SECOND QUARTER 2022 |
||||||||||||||||
|
(Unaudited, expressed in Thousands of United States dollars, except as noted) |
||||||||||||||||
|
|
||||||||||||||||
|
|
Second Quarter |
First Six Months |
||||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Oil revenue before royalties |
$ |
|
14,365 |
|
|
3,914 |
|
|
20,544 |
|
|
7,424 |
|
|||
|
Gas revenue before royalties |
|
|
750 |
|
|
231 |
|
|
1,141 |
|
|
522 |
|
|||
|
NGL revenue before royalties |
|
|
1,029 |
|
|
375 |
|
|
1,570 |
|
|
750 |
|
|||
|
Oil and Gas revenue |
|
|
16,144 |
|
|
4,520 |
|
|
23,255 |
|
|
8,696 |
|
|||
|
|
|
|
|
|
|
|||||||||||
|
Adjusted funds flow(1) |
|
8,614 |
|
|
1,465 |
|
|
11,436 |
|
|
2,974 |
|
||||
|
Additions to property, plant & equipment |
|
7,572 |
|
|
61 |
|
|
14,973 |
|
|
90 |
|
||||
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||
|
Statistics: |
|
2nd Quarter |
First Six Months |
|||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Average oil production (Bopd) |
|
|
1,439 |
|
|
674 |
|
|
1,078 |
|
|
686 |
|
|||
|
Average natural gas production (mcf/d) |
|
|
1,271 |
|
|
889 |
|
|
1,097 |
|
|
893 |
|
|||
|
Average NGL production (Boepd) |
|
|
277 |
|
|
172 |
|
|
232 |
|
|
172 |
|
|||
|
Average production (Boepd) |
|
|
1,928 |
|
|
994 |
|
|
1,493 |
|
|
1,007 |
|
|||
|
Average oil price ($/bbl) |
|
$ |
109.74 |
|
$ |
63.77 |
|
$ |
105.27 |
|
$ |
59.80 |
|
|||
|
Average natural gas price ($/mcf) |
|
$ |
6.48 |
|
$ |
2.86 |
|
$ |
5.74 |
|
$ |
3.23 |
|
|||
|
Average NGL price ($/bbl) |
|
$ |
40.82 |
|
$ |
23.96 |
|
$ |
37.40 |
|
$ |
24.06 |
|
|||
|
|
|
|
|
|
|
|||||||||||
|
Average price (Boe) |
|
$ |
92.02 |
|
$ |
49.97 |
|
$ |
86.06 |
|
$ |
47.70 |
|
|||
|
Less: Royalties (Boe) |
|
|
21.19 |
|
|
10.86 |
|
|
19.55 |
|
|
10.35 |
|
|||
|
Less: Operating expenses (Boe) |
|
|
7.77 |
|
|
8.81 |
|
|
8.40 |
|
|
8.05 |
|
|||
|
Netback from operations(2) (Boe) |
|
$ |
63.06 |
|
$ |
30.30 |
|
$ |
58.11 |
|
$ |
29.30 |
|
|||
|
Price adjustment from commodity contracts (Boe) |
|
|
(9.40 |
) |
|
(6.81 |
) |
|
(10.33 |
) |
|
(5.16 |
) |
|||
|
Netback including commodity contracts(2) (Boe) |
|
$ |
53.66 |
|
$ |
23.49 |
|
$ |
47.78 |
|
$ |
24.14 |
|
|||
|
(1) |
Adjusted funds flow is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
|
|
(2) |
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
The information outlined above is extracted from and should be read in conjunction with the Company’s unaudited financial statements for the three and six months ended June 30, 2022 and the related management’s discussion and analysis thereof, copies of which are available under the Company’s profile at www.sedar.com.
NON-GAAP MEASURES
Netback from operations, netback including commodity contracts and adjusted funds flow (collectively, the “Company’s Non-GAAP Measures“) are not measures or ratios recognized under Canadian generally accepted accounting principles (“GAAP“) and do not have any standardized meanings prescribed by IFRS. Management of the Company believes that such measures and ratios are relevant for evaluating returns on each of the Company’s projects as well as the performance of the enterprise as a whole. The Company’s Non-GAAP Measures may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to similar non-GAAP measures and ratios as reported by such organizations. The Company’s Non-GAAP Measures should not be construed as alternatives to net income, cash flows related to operating activities, working capital or other financial measures and ratios determined in accordance with IFRS, as an indicator of the Company’s performance.
An explanation of how the Company’s Non-GAAP Measures provide useful information to an investor and the purposes for which the Company’s management uses the Non-GAAP Measures is set out in the management’s discussion and analysis under the heading “Non-GAAP Measures” which is available under the Company’s profile at www.sedar.com and is incorporated by reference into this earnings release.
Netback from operations per barrel and its components are calculated by dividing revenue, less royalties and operating expenses by the Company’s sales volume during the period. Netback including commodity contracts is calculated by adjusting netback from operations by the realized gains or losses received from commodity contracts during the period. Netback is a non-GAAP ratio but it is commonly used by oil and gas companies to illustrate the unit contribution of each barrel produced. The Company believes that the netback is a useful supplemental measure of the cash flow generated on each barrel of oil equivalent that is produced in its operations. However, non-GAAP measures and non-GAAP ratios do not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures or ratios used by other companies and should not be used to make comparisons.
The following is the reconciliation of the non-GAAP ratio netback from operations to net income (loss) from continuing operations, which the Company considers to be the most directly comparable financial measure that is disclosed in the Company’s financial statements:
|
(US $000) |
Three months ended June 30, |
Six months ended June 30, |
||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|||||
|
Net income (loss) |
7,006 |
|
(1,418 |
) |
4,551 |
|
(1,946 |
) |
||||
|
Adjustments: |
||||||||||||
|
Finance income |
(746 |
) |
(1 |
) |
(10 |
) |
– |
|
||||
|
Finance expense |
1,869 |
|
2,906 |
|
6,279 |
|
4,361 |
|
||||
|
Share based compensation |
32 |
|
– |
|
157 |
|
– |
|
||||
|
General and administrative expenses |
844 |
|
662 |
|
1,530 |
|
1,425 |
|
||||
|
Depletion, depreciation and amortization |
2,087 |
|
896 |
|
3,226 |
|
1,805 |
|
||||
|
Impairment of PP&E |
– |
|
– |
|
– |
|
– |
|
||||
|
Other income |
(28 |
) |
(303 |
) |
(29 |
) |
(304 |
) |
||||
|
Operating netback |
11,064 |
|
2,742 |
|
15,704 |
|
5,341 |
|
||||
|
Netback from operations per BOE |
63.06 |
|
30.30 |
|
58.11 |
|
29.30 |
|
||||
Adjusted funds flow is calculated as cash from operating activities excluding changes in non-cash operating working capital and interest expense. The Company considers this a key measure as it demonstrates its ability to generate funds from operations necessary for future growth excluding the impact from short-term fluctuations in the collection of accounts receivable and the payment of accounts payable and financing costs. The following is the reconciliation of the non-GAAP measure adjusted funds flow to the comparable financial measures disclosed in the Company’s financial statements:
|
(US $000) |
Three months ended June 30, |
Six months ended June 30, |
||||||||
|
2022 |
2021 |
|
2022 |
2021 |
|
|||||
|
Cash flow from continuing operations |
8,314 |
1,649 |
|
9,557 |
3,013 |
|
||||
|
Change in non-cash working capital |
113 |
(379 |
) |
1494 |
(443 |
) |
||||
|
Interest expense(a) |
187 |
195 |
|
385 |
404 |
|
||||
|
Adjusted funds flow |
8,614 |
1,465 |
|
11,436 |
2,974 |
|
||||
- Interest expense on long-term debt excluding the amortization of debt issuance costs
CAUTIONARY STATEMENTS
In this news release and the Company’s other public disclosure:
- The Company’s natural gas production is reported in thousands of cubic feet (“Mcfs“). The Company also uses references to barrels (“Bbls“) and barrels of oil equivalent (“Boes“) to reflect natural gas liquids and oil production and sales. Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Contacts
Wolf E. Regener, President and Chief Executive Officer +1 (805) 484-3613
Email: investorrelations@kolibrienergy.com
Website: www.kolibrienergy.com
