Q4 2025 Kolibri Global Energy Inc Earnings Call

March 19, 2026

Speaker #3: Good day and welcome to the Kolibri Global Energy's fourth quarter 2025 financials conference call. All participants will be in a listen-only mode. Media may monitor this call in a listen-only mode.

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Speaker #3: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your touch-tone phone.

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Speaker #3: This call will be available on the company's website at www.kolibrienergy.com. Here is a disclaimer: this call may include forward-looking information regarding Kolibri's strategic plans, anticipated production, capital expenditures, exit rates and cash flow, reserves, and other estimates and forecasts.

Operator: This call may include forward-looking information regarding Kolibri's strategic plans, anticipated production, capital expenditures, exit rates, and cash flow, reserves, and other estimates and forecasts. Forward-looking information is subject to risks and uncertainties, and actual results will vary from the forward-looking statements. This call may include forward future-oriented financial information and financial outlook information, which Kolibri discloses in order to provide readers with a more complete perspective on Kolibri's potential future operations, and such information may not be appropriate for other purposes. For a description of the assumptions on which such forward-looking information is based and the applicable risks and uncertainties and Kolibri's policy for updating such statements, we direct you to Kolibri's most recent annual information form and management's discussion and analysis for the period under discussion, as well as Kolibri's most recent corporate presentation, all of which are unavailable on Kolibri's website.

Speaker #3: Forward-looking information is subject to risks and uncertainties, and actual results will vary from the forward-looking statements. This call may include forward, future-oriented financial information and financial outlook information, which Kolibri discloses in order to provide readers with a more complete perspective on Kolibri's potential future operations, and such information may not be appropriate for other purposes.

Speaker #3: For a description of the assumptions on which such forward-looking information is based, and the applicable risks and uncertainties, and Kolibri's policy for updating such statements, we direct you to Kolibri's most recent annual information form and management's discussion and analysis for the period under discussion.

Speaker #3: As well as Kolibri's most recent corporate presentation, all of which are available on Kolibri's website. Listeners should not place undue reliance on forward-looking information. Kolibri undertakes no obligation to update any forward-looking, future-oriented financial or financial outlook information, other than as required by applicable law.

Operator: Listeners should not place undue reliance on forward-looking information. Kolibri undertakes no obligation to update any forward-looking, future-oriented financial or financial outlook information other than as required by applicable law. I would now like to turn the call over to Mr. Wolf Regener, the President and CEO of Kolibri Global Energy Inc. Please go ahead, sir.

Speaker #3: I would now like to turn the call over to Mr. Wolf Reginer, the President and CEO of Kolibri Global Energy Inc. Please go ahead, sir.

Speaker #4: Hi. Thank you, and thank you everyone for joining us today. With me on today's call is Gary Johnson, our Chief Financial Officer. As I'm sure you're all aware, we released our fourth quarter 2025 results this morning.

Wolf Regener: Hi. Thank you, Dave, and thank you everyone for joining us today. With me on today's call is Gary Johnson, our Chief Financial Officer. As I'm sure you're all aware, we released our Q4 2025 results this morning and had released our reserve report two days ago. We're very pleased with what we achieved this last year, which continues to build on our last few years and results in multiple ways. Production from the field has been going well, with our production over 4,000 BOE a day, which is up 15% over 2024. This production rate calculates us to having a 35% compound annual production growth rate over the last three years, which is great.

Speaker #4: And had released our reserve report two days ago. And we're very pleased with what we've achieved this last year, which continues to build on our last few years and results in multiple ways.

Speaker #4: Production from the field has been going well, with our production over 4,000 DOE a day, which is up 15% over 2024. This production rate calculates us to having a 35% compound annual production growth rate over the last three years, which is great.

Speaker #4: Our operating expenses remain low, at just over $7.33 per BOE, which is even lower than last year's $7.44 per BOE. Our drilling program last year resulted in our approved developed producing reserves increasing by 30%.

Wolf Regener: Our operating expenses remain low, with just over $7.33 per BOE, which is even lower than last year's $7.44 per BOE. Our drilling program last year resulted in our approved developed producing reserves increasing by 30%. Even though the oil price used by our reserve evaluators, Netherland, Sewell & Associates, is down substantially this year, our net present value is up 10%. The example of how significant the drop is, the first year's price used in the valuation is down 18% to $58 a barrel. It is obviously way out of line with the current oil prices that have been averaging in the 90s right now. Things are going well for us. With that, I will turn the call over to Gary to discuss our financial results.

Speaker #4: And even though the oil price used by our reserve evaluators in the Netherlands soil is down substantially this year, our net present value is up 10%.

Speaker #4: To give an example of how significant the drop is, the first year's price used in the evaluation is down 18% to $58 a barrel. This is obviously way out of line with the current oil prices, which have been averaging in the $90s right now.

Speaker #4: So, things are going well for us. And with that, I will turn the call over to Gary to discuss our financial results.

Speaker #5: Thanks, Wolf, and thanks everyone for joining the call. I'm just going to go over a few highlights of our annual results for 2025, and then we can take questions at the end of the call.

Gary Johnson: Thanks, Wolf, and thanks everyone for joining the call. I'm just gonna go over a few highlights of our annual results for 2025, and then we can take questions at the end of the call. All amounts are in US dollars, unless otherwise stated. As we mentioned in our earnings release this morning, we reported a 15% increase in our production to 4,013 BOE per day in 2025. The increase was due to the new wells we drilled that completed during 2025, including four at the end of the year, which increased our December production to over 5,600 BOE per day. The production and cash flow impact of the last four wells will primarily be reflected in our 2026 results.

Speaker #5: All amounts are in US dollars unless otherwise stated. As we mentioned in our earnings release this morning, we reported a 50% increase in our production to 4,013 BOE per day in 2025.

Speaker #5: The increase was due to the new wells we drilled that completed during 2025, including four at the end of the year, which increased our December production to over 5,600 BOE per day.

Speaker #5: The production and cash flow impact of the last four wells were primarily reflected in our 2026 results. Our net revenue for 2025 was $56.9 million, which was a decrease of 3% compared to the prior year.

Gary Johnson: Our net revenue for 2025 was $56.9 million, which was a decrease of 3% compared to the prior year, as prices declined by 16% in 2025, which more than offset the increase in production. Adjusted EBITDA decreased 4% to $42.1 million compared to $44 million last year due to the decrease in revenue. Net income was $15.5 million and basic EPS was $0.44 per share in 2025, compared to $18.1 million with basic EPS of $0.51 per share in 2024. The decrease was due to the lower revenue and higher operating expenses due to the production increase. Our operating expense per BOE was $7.33 for 2025, compared to $7.44 per BOE in 2024, a decrease of 1%.

Speaker #5: As prices declined by 60% in 2025, which more than offset the increase in production, adjusted EBITDA decreased 4% to $42.1 million compared to $44 million.

Speaker #5: Last year, due to the decrease in revenue, net income was $15.5 million and basic EPS was $44 per share in 2025, compared to $18.1 million, with basic EPS of $51 per share in 2024.

Speaker #5: The decrease was due to the lower revenue and higher operating expenses due to the production increase. Our operating expense per BOE was $7.33 for 2025, compared to $7.44 per BOE in 2024, a decrease of 1%.

Speaker #5: Our netback from operations decreased to $31.49 per BOE, compared to $38.54 per BOE in the prior year, a decrease of 18% due to the lower prices.

Gary Johnson: Our netback from operations decreased to $31.49 per BOE compared to $38.54 per BOE in the prior year, a decrease of 18% due to the lower prices. Net debt at the end of 2025 was $46 million. We plan to pay down on this debt level in the first half of the year as we achieve higher production from the wells drilled at the end of the year. We also benefit from the recently elevated oil prices. The last thing I wanted to mention was our share buyback program. We have purchased almost 650,000 shares since we started buying back shares for a total of $3.2 million. We will continue to repurchase additional shares to enhance shareholder value as our working capital and credit facility allows.

Speaker #5: Net debt at the end of 2025 was $46 million. We plan to pay down this debt level in the first half of the year, as we achieve higher production from the wells drilled at the end of the year.

Speaker #5: And we're also benefiting from the recently elevated oil prices. And then, the last item I wanted to mention was our share buyback program.

Speaker #5: We have purchased almost 650,000 shares since we started buying back shares, for a total of $3.2 million. And we will continue to repurchase additional shares to enhance shareholder value, as our working capital and credit facility allow.

Speaker #5: And with that, I'll hand it back to Wolf. Thanks, Gary. As Gary laid out, we had a good year, though oil prices were obviously challenging.

Gary Johnson: With that, I'll hand it back to Wolf.

Wolf Regener: Thanks, Gary. As Gary laid out, we had a good year. While oil prices were obviously challenging, and were lower this last year than previous years, we still performed well. The company is in solid financial shape, and we announced our intention to start drilling additional wells in the coming months. We're looking to continue the success we've had over the last years, that 35% compound annual growth rate for our production over the last three years has been great. The wells we brought on production late in Q4, as Gary indicated, are really having the biggest impact in 2026. The timing of the oil price increase right now is really benefiting our cash flow. Overall, our plan is to continue to execute and build and grow company value for all shareholders. As Gary said, continue to buy back shares and we'll drill more wells.

Speaker #5: And we were lower this last year than previous years, but we still performed well. The company is in solid financial shape, and we announced our intention to start drilling additional wells in the coming months.

Speaker #5: We're looking to continue the success we've had over the last few years; that 35% compound annual growth rate for our production over the last three years has been great.

Speaker #5: The wells we brought on production late in the fourth quarter, as Gary indicated, are really having the biggest impact in 2026. And the timing of the oil price increase right now is really benefiting our cash flow.

Speaker #5: Overall, our plan is to continue to execute, build, and grow company value for all shareholders. As Gary said, we'll continue to buy back shares.

Speaker #5: And we'll drill more wells. We'll continue to get the word out about the company to shareholders and potential shareholders. Including, we'll be attending the Roth Conference next week.

Wolf Regener: We'll continue to get the word out about the company to shareholders and potential shareholders, including we'll be attending the ROTH Conference next week, and we're doing a fireside chat at the LD Micro Summit on 1 April as well, and we'll continue to do other things throughout the year. This concludes the formal part of our presentation. We'll be pleased to answer any questions you now may have.

Speaker #5: And we're doing a fireside chat at the Lithium Summit on April 1st as well. And we'll continue to do other things throughout the year.

Speaker #5: This concludes the formal part of our presentation. I would be pleased to answer any questions you may have at this time.

Speaker #6: We will now begin the question and answer session. To ask a question, you may press star, then one, on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.

Operator: We will now begin the question and answer session. To ask a question, you may press Star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star and then two. Our first question comes from Steve Ferazani with Sidoti & Company. Please go ahead.

Speaker #6: If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. Our first question comes from Steve here in Zeni with Sadoti.

Speaker #6: Please go ahead.

Speaker #7: Good afternoon, Wolf. Afternoon, Gary. Appreciate the color on the call this afternoon. Wolf, how are you thinking about—obviously, a lot has changed in terms of the price environment over the last three weeks or so.

Steve Ferazani: Afternoon, Wolf. Afternoon, Gary. Appreciate the color on the call this afternoon.

Wolf Regener: Hi, Steve.

Steve Ferazani: Wolf, how are you thinking about, obviously, a lot has changed in terms of the price environment over the last three weeks or so. How are you now thinking about the drilling program for this year as opposed to maybe how you were thinking about it pre-conflict or even what you were talking about late last year? I'm assuming that the thought is maybe to drill more wells this year than maybe previously thought.

Speaker #7: How are you now thinking about the drilling program for this year, as opposed to maybe how you were thinking about it pre-conflict or even what you were talking about late last year?

Speaker #7: I'm assuming that the thought is maybe to drill more wells this year than maybe previously thought.

Speaker #5: Yeah, cautiously optimistic is what I'll say. I don't know if the industry believes that these prices are staying up. If they don't, we'll see how this all unfolds.

Wolf Regener: Yeah. Cautiously optimistic is what I'll say.

Steve Ferazani: Okay. Fair.

Wolf Regener: I don't know if the industry believes that these prices are staying up. We don't, you know, it's. We'll see how this all unfolds. As for most people, this is quite unexpected. We did take advantage of that bit. We did a bit more hedging at the higher prices, so that helps too. As we are going forward right now, we're just planning on seeing how everything unfolds. I mentioned that we'll start drilling some wells here over the next coming months, and once we have firm dates on that, we'll announce that as well. We're building multiple locations out here, so that's always a longer lead time. This way we can quickly move if we decide to extend the drilling program, drill more wells.

Speaker #5: As for most people, this is quite unexpected. We did take advantage of that bit, so we did a bit more hedging at the higher prices.

Speaker #5: So that helps too. But as we are going forward right now, we're just planning on seeing how everything unfolds. I mentioned that we'll start drilling some wells here over the next few months.

Speaker #5: And once we have firm dates on that, we'll announce that as well. We're building multiple locations out here, so that's always a longer lead time.

Speaker #5: And this way, we can quickly move if we decide to extend the drilling program or drill more wells. But like I said, we're cautious in everything we do in general.

Wolf Regener: Like I said, we're cautious in everything we do in general, and so it's very different this year. I do think prices are gonna stay higher than they were before, no matter what happens, even if this ended tomorrow.

Speaker #5: And so, it's kind of different this year. So, I do think prices are going to stay higher than they were before, no matter what happens—even if this ended tomorrow.

Steve Ferazani: I mean, we know what the strip is through the end of the year.

Speaker #7: I mean, we know what the strip is. The end of the year, right? We know what the strip is to the end of the year.

Wolf Regener: Right.

Steve Ferazani: I mean, we know what the strip is to the end of the year. Your balance sheet enables you to pivot pretty quickly if you did wanna ramp up a little bit, right?

Speaker #7: It would be very easy for you, too, and your balance sheet enables you to pivot pretty quickly if you did want to ramp up a little bit, right?

Speaker #5: Right. Exactly. So that's why we're doing the long-lead items, making sure we have everything in place so we could quickly do things. And that's the big advantage we have, being the size we are, right?

Wolf Regener: Right. Exactly. That's why we're doing the long lead items, making sure we have everything in place so we could quickly do things. That's the big advantage we have, being the size we have, right?

Speaker #5: We can start and stop much faster than some of the bigger guys that are more rigid in their financial structure, where we have a small board, where we can quickly make changes.

Steve Ferazani: Right.

Wolf Regener: We can start and stop much faster than some of the bigger guys that are more rigid in their financial structure, where we have a small board where we can quickly make changes to what we have proposed for the year.

Speaker #5: To what we have proposed for the year.

Speaker #7: Got it. And then in terms of when you—I know it changes with the availability of crews—but it sounded like you indicated in the release that June would be when you might start this year's drilling program.

Steve Ferazani: Got it. In terms of, I know it changes when availability of crews, but it sounded like you indicated at least in June would be when you might start this year's drilling programs. Is that fair right now, and would mean production probably early to mid Q3?

Speaker #7: Is that fair right now? And would that mean production probably early to mid-third quarter? Is that sort of the target?

Wolf Regener: Yeah.

Steve Ferazani: Is that sort of the target?

Speaker #5: Yeah, I mean, hopefully—we'll see how things go. Hopefully, we can get started a little sooner than that. But, yeah, I'd like to keep the June out there until we have everything firmed up.

Wolf Regener: Yeah. I mean, hopefully, we'll see how things go. Hopefully, we can get started a little sooner than that. Yeah, I'd like to keep the June out there until we have everything firmed up.

Speaker #5: So I'd rather underpromise.

Steve Ferazani: Yeah. Understood.

Wolf Regener: I'd rather under-promise.

Speaker #7: Yeah, understood. Understood. And things change fast, right?

Steve Ferazani: Yeah. Understood. Things change faster.

Speaker #5: Yeah.

Wolf Regener: Yeah.

Steve Ferazani: A couple of numbers surprised me in the quarter. The realized natural gas price, I know that moves quarter to quarter. Again, the differential can move. Seems a little bit lower than I would have expected.

Speaker #7: A couple of numbers surprised me in the quarter. The realized natural gas price—I know that moves quarter to quarter. The differential can move.

Speaker #7: Seemed a little bit lower than I would have expected.

Speaker #5: Yeah, that's really hard for us as well because we sell all of our gas and our wet gas, which is our gas and natural gas liquids.

Wolf Regener: Yeah. That's really hard for us as well because,

Steve Ferazani: Yeah

Wolf Regener: We sell all of our gas and our wet gas, which is our gas and natural gas liquids, and Exxon handles that. Where that goes, and as far as how much gas is pulled out versus how much NGLs and things like that are all on their hands. We're always assuming that we get the best price that is available because they're doing the same thing for their own account.

Speaker #5: And Exxon handles that. And so, where that goes, and as far as how much gas was pulled out versus how much NGLs and things like that, are all in their hands.

Speaker #5: And we're always assuming that we get the best price that is available because they're doing the same thing for their own account. But it does fluctuate.

Steve Ferazani: Yep.

Wolf Regener: It does fluctuate, and it's hard for us to forecast that, as it is for you, unfortunately.

Speaker #5: And it's as hard for us to forecast that as it is for you, unfortunately.

Speaker #7: I see. I understand. And then the slightly higher price.

Steve Ferazani: I understand. The slightly higher

Wolf Regener: Luckily, it's not a big part of our stream, thank goodness.

Speaker #5: And that's not a big part of our stream, thank goodness.

Speaker #7: Right. Absolutely. Absolutely. And then the higher production operating expense—I think you noted the fourth quarter, the workover. So that should be one-time in nature, right?

Steve Ferazani: Right. Absolutely. The higher production operating expense, I think you noted the Q4.

Wolf Regener: Yes

Steve Ferazani: ... the work over. That should be one time in nature, right?

Speaker #7: Okay.

Wolf Regener: Exactly.

Steve Ferazani: Okay.

Speaker #5: Correct. That's exactly right. And for the year, we were still looking great. And we do have.

Wolf Regener: Correct.

Steve Ferazani: Okay.

Wolf Regener: That's exactly right. For the year, you know, we were still looking great, and we do have-

Speaker #7: Oh, yeah.

Steve Ferazani: Oh, yeah.

Speaker #5: Budgeted reworks throughout the year. It just depends on when they come in. And if it's multiple in a quarter, then our wells are really low maintenance.

Wolf Regener: Budgeted, you know, reworks throughout the year. It just depends on when they come in, and if it's multiple in a quarter then. Our wells are really low maintenance. We're lucky on that. But they do need maintenance from time to time.

Speaker #5: We're lucky on that, but they do need maintenance from time to time.

Speaker #7: Understood. In terms of—you noted a lot of the oil-rich wells you brought online, mostly in the second half of '25. You'd previously noted the much slower decline rates.

Steve Ferazani: Understood. In terms of, you noted there were oil-rich wells you brought online, mostly in the second half of 2025. You'd previously noted the much lower decline rates. Is that playing out over the last few months?

Speaker #7: Is that playing out over the last few months?

Speaker #5: Yeah. I mean, yes. I mean, we haven't seen a change. We're happy with how those wells are performing, I think. Netherlands Soil, over the years, has been increasing what our decline rates—or decreasing the decline rates, I should say.

Wolf Regener: Yeah, I mean, yes. I mean, we haven't seen a change. We're happy with how those wells performing. I think, Netherland Sewell over the years has been increasing what our decline rates, decreasing the decline rates I should say, over the years. On the newer wells, they usually hit those a little bit harder, and then in the following years, they kinda bring it up a little bit, because they do perform well. We expect the same thing out of the wells we drilled last year.

Speaker #5: Over the years, and so on the new wells, they usually hit those a little bit harder. And then in the following years, they kind of bring it up a little bit because they do perform well.

Speaker #5: And we expect the same thing out of wells we drilled last year.

Speaker #7: Got it. And last one for me. You may choose not to answer it, but given that it's March 19th, can you give any sense of what Q1 production might look like?

Steve Ferazani: Got it. Last one for me, you may choose not to answer it, but given that it's 19 March, can you give any sense of what Q1 production might look like?

Speaker #5: Yeah, no, we haven't put it out there, so I can't really speak to that on this call, unfortunately. Yeah.

Wolf Regener: Yeah, no, we haven't put that out there, so I can't really-

Steve Ferazani: Okay

Wolf Regener: Speak to that on this call, unfortunately.

Speaker #7: I understand. I understand. Thanks so much, Will. Thanks, Gary.

Steve Ferazani: I understand. Thanks so much, Wolf. Thanks, Gary.

Speaker #5: Oh, absolutely.

Wolf Regener: Absolutely.

Speaker #1: And the next question comes from Poe Frat with Alliance Global Partners. Please go ahead.

Operator: The next question comes from Poe Fratt with Alliance Global Partners. Please go ahead.

Speaker #8: Hi. Good morning, Will.

Poe Fratt: Hi. Good morning, Wolf.

Wolf Regener: Hi, Po.

Speaker #5: Hi, Will.

Poe Fratt: Can you give me at least a ballpark on your CapEx, you know, for 2026?

Speaker #8: Can you give me at least a ballpark on your CapEx for 2026?

Poe Fratt: Can you give me at least a ballpark on your CapEx, you know, for 2026?

Wolf Regener: You know, we haven't put anything out there, so I have to be careful. What I've said in the past is kind of my goal, and speaking just for myself, not from our board approved or anything else, is to keep the production flat to growing a little bit in general sense, but that shouldn't take more than three wells or so. That's kind of as close as I can get. From my own opinion as far as what we should do, at least do for the year. Now that oil prices are higher, we'll probably be higher than that. You know, if we add more wells, it adds a lot. Our wells are, you know, in the roughly $7 million range each. It just depends on how many we end up drilling for the year.

Speaker #5: We haven't put anything out there, so I have to be careful. What I've said in the past is kind of my goal, and I'm speaking just for myself—not from our board-approved or anything else.

Speaker #5: It's to keep the production flat to growing a little bit. In general, that shouldn't take more than three wells or so. So that's kind of as close as I can get for that from my own opinion as far as what we should do for at least the year, now that oil prices are higher.

Speaker #5: We'll probably be higher than that. But if we had more wells, it adds a lot. And so our wells are in the roughly $7 million range each.

Speaker #5: It just depends on how many we end up drilling for the year. But once we have that pinned down, we'll put that out precisely.

Wolf Regener: Once we have that pinned down, we'll put that out precisely. Our CapEx, you know, will be lower this year than it was last year by a long shot, unless we really accelerate what we're doing out there.

Speaker #5: But our CapEx will be lower this year than it was last year by a long shot, unless we really accelerate what we're doing out there.

Speaker #8: Yeah, and I guess, closer to 2024, the full-year CapEx for 2024 may be even lower than that?

Poe Fratt: Yeah. I guess closer to 2024, the full year CapEx for 2024, maybe even lower than that?

Speaker #5: Yeah, I mean, going—yeah, as we talked about earlier, it's like we were going into this kind of talking about what we were doing with oil prices being a lot lower than where they are.

Wolf Regener: Yeah. As we talked about earlier, it's like we were going into this kinda talking about what we're doing with oil prices being a lot lower than they are. With that lower oil price number in mind, you know, I think from my point of view, I think it'll end up being reasonable to drill, you know, 3 wells or so at least. That's in the low $20s. Then if oil prices stay higher, I anticipate that, you know, we would recommend and the board would agree that we should drill some more wells. That would increase the CapEx quite a bit.

Speaker #5: And with that lower oil price number in mind, I think, from my point of view, it'll end up being reasonable to drill three wells or so, at least.

Speaker #5: So that's in the low 20s. And then, if oil prices stay higher, I anticipate that we would recommend, and the Board would agree, that we should drill some more wells.

Speaker #5: So that would increase the CapEx quite a bit.

Speaker #8: That's helpful, and I apologize. I couldn't find any info on your hedging program. Can you just summarize your hedging program for the first quarter and then the full year?

Poe Fratt: That's helpful. I apologize, I couldn't find any info on your hedging program. Can you just summarize, you know, your hedging program for, you know, Q1 and then the full year?

Speaker #5: Hi, Gary. Do you want to take that? You probably have it, hopefully.

Wolf Regener: Gary, do you wanna take that? You probably have that in front of you.

Speaker #8: Yeah. Well, the first quarter, we didn't really hedge much recently because it was already in March when the prices went up. So for the first quarter, we have costless collars in place.

Gary Johnson: Yeah. Well, Q1, we didn't really hedge much recently because it was already in March when the prices went up. For Q1, we have costless collars in place, we're about 16,000 barrels of oil per day. The costless collar range is $58.50 to $77.25. We have hedged in April, we have a fixed price swap at $94 for 16,000 BOE per day. Then we've also hedged the next May and June as well in the 80s. We've basically done as much hedging as we're allowed to do on our credit facility right now for Q2.

Speaker #8: We're at about 16,000 barrels of oil per day, and the cost of the collar range is $58.50 to $77.25. But we have hedged in April; we have a fixed-price swap at $94 for 16,000.

Speaker #8: BOE per day. And then we've also hedged the next May and June as well in the $80s. We've basically done as much hedging as we're allowed to do on our credit facility right now for the second quarter.

Speaker #5: Yeah, and those hedges were about 500 barrels a day, weren't they, roughly?

Wolf Regener: Yeah. Those hedges were about 500 barrels a day, wasn't it, roughly?

Gary Johnson: Yeah.

Speaker #8: Yeah.

Speaker #5: Just in rough numbers. Yeah.

Wolf Regener: Just in rough numbers. Yeah.

Speaker #8: Yeah. Rough numbers. Yeah.

Gary Johnson: Yeah, rough numbers, yeah.

Speaker #5: So, we have a substantial amount of our production that's not hedged—I'd say over 50%. That's free-floating still.

Wolf Regener: We have a substantial amount of our production that's not hedged. I'd say over 50% that's free floating still.

Speaker #8: So is the second-half production pretty much open right now?

Poe Fratt: Is the second half production pretty much open right now?

Wolf Regener: No, we still have hedges there.

Speaker #5: No, we still have hedges there. We still have some old hedges from the cost of collars, right? And then we added some other cost of collars.

Wolf Regener: No, we still have hedges there.

Gary Johnson: Yeah.

Wolf Regener: Some old hedges from the costless collars. Right. We added some other costless collars. Go ahead, Gary.

Speaker #5: Go ahead, Gary.

Speaker #8: Yeah. So we've put in some more cost of collars for the second half of the year. So we have about half of these were entered into, obviously, before the price uptick. $50.25 is the low and $66.75 is the high.

Gary Johnson: Yeah. We put in some more costless collars for the second half of the year. We have about half or these were entered into obviously before the price uptick. $50.25 is the low and $66.75 is the high. Then we just did new ones where the low is $61.50 and the high is $91. Those are costless collars, and those take place across the rest of the year.

Speaker #8: And then we just did new ones where the low is $61.50 and the high is $91. Those are the cost of collars. And those take place across the rest of the year.

Speaker #5: All right. And that's, again, that's roughly 50% of our current PDP. So anything new that we drill is completely unhedged.

Wolf Regener: Right. That's again 50% roughly of our current PDP. Anything new that we drill-

Gary Johnson: Yeah.

Wolf Regener: Is completely unhedged.

Speaker #8: Correct. Okay, great. And then, when you look at your cost structure for 2026, are there any changes that you could highlight? I'm wondering about the royalty per barrel.

Gary Johnson: Correct.

Poe Fratt: Okay, great. When you look at your cost structure, you know, for 2026, any changes that you could highlight? I'm wondering about the royalty per barrel. Looked like it was, you know, pretty low in Q4. Is that a sense of the prices or just can you help me understand how that might move in 2026?

Speaker #8: It looked like it was pretty low in the fourth quarter. Is that sensitive to prices, or—can you help me understand how that might move in '26?

Speaker #5: So the royalty percentage changes a little bit depending on where the majority of our production is coming from, because each square mile out here has a different royalty structure.

Wolf Regener: The royalty percentage changes a little bit depending on where the majority of our production coming from, because each square mile out here has a different royalty structure. In general, you know, we're averaging 22-ish% burdens on everything. The dollar amount would float up and down with pricing.

Speaker #5: But in general, we're averaging 22-ish percent burdens on everything. And then the dollar amount would float up and down with pricing.

Speaker #8: Yeah, so that's a little sensitive percentage.

Poe Fratt: Yes. That's all.

Wolf Regener: Percentage.

Speaker #5: Yeah, because it is a percentage, right?

Poe Fratt: Yeah.

Wolf Regener: Because it is a percentage. Right.

Poe Fratt: Great. Thank you so much.

Speaker #8: Great. Thank you so much.

Poe Fratt: Great. Thank you so much.

Speaker #5: Absolutely. Thanks for the questions. Good talking to you.

Wolf Regener: Absolutely. Thanks for the questions. Good talking to you.

Speaker #1: This concludes our question-and-answer session. I would like to turn the conference back over to Wolf Regener for any closing remarks.

Poe Fratt: Thank you.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Wolf Regener for any closing remarks.

Speaker #5: I just wanted to say thank you, everyone, for participating. And to those of you that will hopefully listen to this later as well—we're looking forward to having a really good 2026 year, and I think we're off to a really good start between our production levels and the pricing, which is helping out.

Wolf Regener: I just wanted to say thank you everyone for participating and those of you that will hopefully listen to this later as well. We're looking forward to having a really good 2026 year. I think we're off to a really good start between our production levels and the pricing, which is helping out. Thank you everyone very much. Have a great day.

Speaker #5: So, thank you, everyone, very much. Have a great day.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Q4 2025 Kolibri Global Energy Inc Earnings Call

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