Kolibri Global Energy (NASDAQ:KGEI) executives told investors on the company’s fourth-quarter 2025 financial results call that 2025 marked another year of strong production growth and reserve expansion, even as weaker commodity pricing weighed on revenue and earnings.
President and CEO Wolf Regener, joined by Chief Financial Officer Gary Johnson, said the company exited the year with higher output driven by new wells brought online during 2025, and highlighted continued low operating costs. Management also discussed plans to resume drilling in the coming months, a share repurchase program, and an updated hedging position following a recent rise in oil prices.
Production growth and low operating costs
Johnson reported average production of 4,013 BOE/d in 2025, attributing the increase to wells drilled and completed during the year, including four wells brought online late in 2025. Those four wells lifted December production to more than 5,600 BOE/d, Johnson said, adding that the production and cash flow impact from those wells would be “primarily” reflected in 2026 results.
On costs, Regener said operating expenses remained low at just over $7.33 per BOE, below the prior year’s $7.44 per BOE. Johnson echoed that operating expense per BOE fell 1% year over year to $7.33.
2025 financial results reflect lower pricing
Despite higher production, Johnson said net revenue for 2025 totaled $56.9 million, down 3% from the prior year. He said the decline was driven by weaker pricing that more than offset production gains.
Adjusted EBITDA fell 4% to $42.1 million compared with $44.0 million in 2024. Net income was $15.5 million, or $0.44 per basic share, versus $18.1 million, or $0.51 per basic share, in 2024. Johnson attributed the year-over-year decrease to lower revenue and higher operating expenses tied to increased production.
The company’s netback from operations declined to $31.49 per BOE from $38.54 per BOE, an 18% decrease that management also linked to lower prices.
Reserves and valuation metrics
Regener said the company’s drilling program in 2025 increased proved developed producing (PDP) reserves by 30%. He also noted that, even though the oil price assumptions used by reserve evaluators Netherland, Sewell declined substantially, the net present value in the reserve report rose 10%.
As an example of the change in assumptions, Regener said the first-year oil price used in the evaluation fell 18% to $58 per barrel, which he described as “way out of line” with then-current oil prices that had been averaging in the $90s.
Capital allocation: debt reduction and share repurchases
Johnson said net debt at the end of 2025 was $46 million. He told investors the company planned to pay down debt in the first half of the year as production rises from the wells drilled late in 2025, adding that the company also expected to benefit from elevated oil prices.
Johnson also provided an update on Kolibri’s share buyback program, saying the company had repurchased nearly 650,000 shares for a total of $3.2 million. He said management planned to continue repurchasing shares “as our working capital and credit facility allows.”
2026 outlook: cautious optimism on drilling, hedging, and timing
During the Q&A session, management emphasized a cautious approach to expanding drilling plans despite a stronger price environment that developed in recent weeks. Responding to a question from Sidoti’s Steve Ferazani, Regener said the company was “cautiously optimistic,” adding that the recent price move was unexpected and that the industry was still evaluating whether higher prices would persist. He said Kolibri did increase hedging at higher prices.
Regener said the company was building multiple locations—describing them as long lead-time items—to be able to move quickly if it decides to extend its drilling program. He also said the company’s size and governance structure allow it to “start and stop much faster” than larger companies.
On timing, Regener said he wanted to keep “June” as an expected start for the 2026 drilling program until plans were firmed up, while noting the company hoped to begin sooner. When asked about first-quarter production, Regener declined to provide a figure, saying the company had not put that information out.
Alliance Global Partners analyst Poe Fratt asked about 2026 capital spending. Regener said the company had not provided formal guidance, but offered his personal view that keeping production flat to slightly growing “shouldn’t take more than three wells or so.” He said wells cost roughly $7 million each, and added that capital spending would likely be lower than 2025 “by a long shot” unless the company accelerates activity due to higher oil prices.
Johnson outlined hedging details, including:
- For Q1, costless collars covering about 16,000 barrels of oil per day with a range of $58.50 to $77.25.
- For April, a fixed price swap at $94 for 16,000 BOE per day, with additional hedges in May and June “in the 80s.”
- Additional costless collars in the second half, including older collars with a $50.25 low and $66.75 high and newer collars with a $61.50 low and $91 high.
Johnson said the company had hedged as much as permitted under its credit facility for the second quarter, and management indicated that more than 50% of production remained unhedged. They also noted that production from any new wells would be unhedged.
Asked about royalties, management said the royalty percentage varies by location, and Regener stated the company averages “22-ish% burdens,” with the dollar amount moving up or down with commodity prices.
In closing remarks, Regener said the company was looking forward to 2026, citing production levels and pricing as supportive of results early in the year. He also noted the company planned to continue investor outreach, including attending the ROTH Conference and participating in a fireside chat at the Lithium Summit on April 1.
About Kolibri Global Energy (NASDAQ:KGEI)
Kolibri Global Energy Inc engages in the finding and exploiting oil, gas, and clean and sustainable energy in the United States. It sells crude oil, natural gas, and natural gas liquids. The company was formerly known as BNK Petroleum Inc and changed its name to Kolibri Global Energy Inc in November 2020. Kolibri Global Energy Inc was incorporated in 2008 and is headquartered in Thousand Oaks, California.
