Kolibri Global Energy Inc.

Second quarter revenue was $22.5 million, up 109% year over year, and the company said it was the highest quarterly revenue in its history. Average production rose 46% to 4,690 BOE per day from 3,220 BOE per day, while net income increased to $8.5 million and basic EPS to $0.24 per share from $2.9 million and $0.08 per share. Adjusted EBITDA was $16.4 million, up 114% from $7.7 million, and netback from operations increased to $43.92 per BOE from $29.66 per BOE. Production and operating expense averaged $8.90 per BOE, up from $7.15 per BOE in the prior quarter. For the first half of 2026, net revenue increased 55% to $42.1 million, net income was $12.5 million, basic EPS was $0.35, adjusted EBITDA was $31.3 million, and netback from operations was $41.18 per BOE. Management said the credit facility borrowing base was redetermined upward by 15% to $75 million from $65 million. Looking ahead, the company said the four wells in the 2026 drilling program are expected to add growth, mainly in the fourth quarter when they should contribute a full quarter of production; management also said third quarter is expected to be the low production quarter and fourth quarter the high production quarter for the year.

Wolf Regener struck an upbeat tone, saying the quarter was not just good but the best in company history for revenue, production, and adjusted EBITDA. He attributed the upside to strong well performance, noted that three wells were shut in for one-third of the quarter, and emphasized the start of completion work on the Clifton Mack wells. He also framed the first False Caney test as a potential step-change opportunity that could open more locations, reserves, and shareholder value if successful.

Gary Johnson walked through the financial outperformance with specific comparisons: revenue of $22.5 million, net income of $8.5 million, basic EPS of $0.24, and adjusted EBITDA of $16.4 million in Q2. He said the 109% revenue increase was driven by a 46% production increase and 41% higher average prices, and that netback rose to $43.92 per BOE. On the cost side, production and operating expense averaged $8.90 per BOE, up 24% from the prior quarter due to a non-operated well workover and temporarily higher water hauling costs. He also highlighted the 15% borrowing base increase to $75 million as a sign of greater flexibility and stronger property value.

Analysts focused on why production held up so well despite shut-ins, with management explaining that well performance was strong and that bringing wells onto gas lift helped offset declines. Questions also centered on the gas purchaser volume adjustment, which management said related to several past periods going back to 2024 and skewed realized prices and gas/oil mix. On the new Lovina False Caney well, management said the main unknowns are flow rates, 30-day performance, and decline rates, but they are hopeful the 2-mile lateral and improved steering tools will make the economics work. Management also said the Alicia Renee shut-ins were due to drilling close to existing wellbores and should not materially harm either the Clifton Mack or Alicia Renee wells, and they expect some flush production when those wells return.