How did KGEI's Q1 2024 EPS outperform forecasts?

Kolibri Global Energy Inc. (KGEI) reported a net income of $3.3 million for the first quarter of 2024, which represents a significant decrease from the $7.9 million reported in the same period of the previous year. Despite the decline, the company's performance in Q1 2024 exceeded market expectations, as indicated by the EPS outperformance.

1. **Production Increase and Revenue Stability**: The company's average production for Q1 2024 was 3,305 BOEPD, a 3% increase from the previous year's 3,194 BOEPD. This production increase, despite lower average prices, was a key factor in maintaining revenue stability. The company reported revenue, net of royalties, of $14.2 million for Q1 2024, which was only slightly lower than the $14.3 million reported in the same period of the previous year.
2. **Cost Management**: The operating expense per barrel averaged $8.36 per BOE in Q1 2024, up from $6.04 per BOE in Q1 2023. This increase was primarily due to natural gas and NGL processing costs related to prior years. However, if these fees were excluded, the operating expense per barrel would have been $6.43 per BOE, indicating that the company's cost management efforts were effective in controlling the impact of these expenses on profitability.
3. **EBITDA and Cash Flow**: The company's Adjusted EBITDA for Q1 2024 was $10.4 million, a decrease from the $11.4 million reported in Q1 2023. Despite this decline, the company's cash flow remained positive, which is a testament to its operational efficiency and ability to generate cash from its operations.

In conclusion, KGEI's Q1 2024 EPS outperformed forecasts due to a combination of factors, including increased production, stable revenue, effective cost management, and positive cash flow. These factors, despite some challenges posed by lower average prices and higher operating expenses, demonstrate the company's resilience and potential for continued growth in the coming quarters.