Kolibri Global Energy's Q2 2025: Navigating Contradictions in Production Guidance and Capital Allocation

Production guidance and oil price environment, capital allocation and completion schedule are the key contradictions discussed in Kolibri Global Energy Inc.'s latest 2025Q2 earnings call.



Production and Operational Performance:
- Kolibri Global Energy reported an average production of 3,220 BOE per day in Q2 2025, up 3% from the previous year's quarter, while the year-to-date June production was up 13% to 3,646 BOE per day.
- The increase in production was due to new wells drilled and completed in the last 6 months of 2024, although temporarily reduced by wells shut in for Lovina completion operations.

Financial Results and Revenue Decline:
- Net revenue decreased by 22% to $10.8 million in Q2 due to a 24% decrease in average prices and lower oil production from shut-in wells.
- The decline in revenue was mainly attributed to lower oil prices and temporarily reduced production.

Increased Borrowing Base and Financial Flexibility:
- Kolibri's credit facility was redetermined in Q2, with the borrowing base increased by 30% from $50 million to $65 million.
- This increase provides greater flexibility in managing working capital and reflects the growing value of the field.

Future Growth and Expansion Plans:
- The company plans to bring on 9 new wells in the second half of the year, expecting significant increases in both production and cash flow.
- Expansion is driven by the company's strategic focus on growing value for shareholders and continuing operational success.