Kiwetinohk Energy Reports Strong 2024 Results and Reserve Growth

Kiwetinohk Energy Corp. (TSX: KEC) recently reported its 2024 financial and operational results, highlighting a successful year marked by strong upstream performance and strategic power division developments. The company's upstream segment delivered robust financial and operational results, meeting or exceeding annual guidance expectations. In the power division, Kiwetinohk successfully positioned its development projects for sale or third-party financing, culminating in the sale of the Opal gas-fired power project in the first quarter of 2025.

Upstream Segment Performance
Kiwetinohk's upstream operations performed exceptionally well in 2024, with key achievements including:

1. A 19% annual production increase to 26,875 boe/d, the largest capital program in the company's history.
2. A 10% growth in total proved plus probable (2P) reserves, capable of sustaining current production for nearly 25 years.
3. A 17% reduction in per barrel annual operating costs while growing both production and reserves.
4. An annual adjusted operating netback of $31.62/boe, which remains strong and consistent, averaging $30.52/boe over the last eight quarters.

These impressive results demonstrate Kiwetinohk's ability to efficiently manage its upstream operations, driving profitability and growth. The company's asset continues to deliver top-tier production rates in the Duvernay, while its underdeveloped Simonette Montney resource has shown strong potential, now representing approximately 14% of its total 2P reserves.

Power Division Developments
In the power division, Kiwetinohk focused on the sale and/or financing efforts for the projects within its development portfolio. This strategic approach resulted in the successful sale of the Opal gas-fired power project, which closed in the first quarter of 2025. The company's cautious approach to spending, given ongoing financial uncertainties arising from political and regulatory dynamics, has allowed it to adapt to the evolving energy market and regulatory landscape. Kiwetinohk's power development projects remain viable and attractive to potential buyers, as evidenced by the Opal project sale.

Future Outlook
Looking ahead, Kiwetinohk plans to continue its profitable growth in the upstream business and opportunistically monetize its power development projects. The company is also considering exploring the sale of all or part of one or both businesses to address its funding capacity challenge and ensure a thorough evaluation of all potential alternatives. Kiwetinohk's strong foundation of high-quality producing assets and its continued focus on profitable growth position the company well for future success.

In conclusion, Kiwetinohk Energy Corp. reported a successful 2024, with strong upstream performance and strategic power division developments. The company's upstream segment delivered robust financial and operational results, while its power division successfully positioned development projects for sale or third-party financing. Kiwetinohk's strong foundation of high-quality producing assets and its continued focus on profitable growth position the company well for future success.