Kolibri Global Energy Inc.

Good day and welcome to the Colibri Global Energy second quarter 2024 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. Also, this call may contain forward-looking statements regarding Colibri's strategic plans, anticipated production, capital expenditures, exit rates and cash flows, reserves, and other estimates and forecasts. Forward-looking information is subject to risk and uncertainties, and actual results will vary from the forward-looking statements. This call may include future-oriented financial information and financial outlook information, which Colibri discloses in order to provide readers with a more complete perspective on Colibri's potential future operations and such information may not be appropriate for other purposes. For a description of the assumptions on which such forward-looking information is based on and the applicable risk of uncertainties in Colibri's policy for updating such statements. we direct you to Calibri's most recent annual information form and management discussion and analysis from the period under discussion, as well as Calibri's most recent corporate presentation, all of which are available under Calibri's website. I would now like to turn the conference over to Mr. Wolf Regener. Please go ahead, sir.

Thank you. And thank you, everyone, for joining us today. With me on today's call is Gary Johnson, our Chief Financial Officer. We released our 2024 second quarter report yesterday, and we'll assume you've had a chance to look over the report. We're very pleased with the accomplishments we've achieved this quarter, strong financial results, continued progress on development program, solid production from the field. Our line of credit was increased to 50 million with Bank of Oklahoma. Earlier this month, we also announced that drilling began on the first of our three longer lateral wells, the Alicia Renee, 2-11-3H will be followed by the 4H and the 5H. I want to take this opportunity to thank everyone in the company who has worked so hard to grow the company. And with that, I'd like to turn the call over to Gary to discuss our financial results.

Gary Genslerman Thanks, Wolf, and thanks, everyone, for turning the call. I'm just going to go over a few highlights of the second quarter and intraday results, and then we can take questions at the end of the call. All amounts are in U.S. dollars unless otherwise stated. As Will mentioned, the earnings release went out yesterday, and we were very pleased with the results. We had significant increases in production, revenue, and adjusted EBITDA compared to the prior year. So, I'll start by going over the second quarter. Average production was up 30 percent to 3,128 BLE per day compared to 2415 in the prior year quarter. The increase is due to production from the wells that were drilled and completed over the past 12 months. The production mix for the second quarter was 74% oil, which was slightly below the 75% oil mix from the prior quarter, which shows that our field isn't getting significantly more gassy over time. Adjusted EBITDA was $10 million compared to $7.6 million in the prior year quarter, which was an increase of 31% due to the higher production and higher prices, which were up about 7%. Net revenue increased 38 percent to 13.9 million compared to 10.1 million in the prior quarter due to higher production and prices. Our net back from operations increased slightly to $40.40 per BOE compared to $39.56 per BOE in the prior quarter. And this was due to higher average prices for the quarter which were mostly offset by higher operating expenses for BOE due to adjustment true-ups, reworks, and higher water hauling costs. Net income was $4.1 million, and basic EPS was 11 cents per share in the second quarter, compared to $4.3 million and 12 cents per share in the prior second quarter. The slight decrease was due to $1.5 million of deferred income tax expense in the second quarter of 2024, as well as higher operating and G&A costs, which offset the higher production and prices for the quarter. But I'll move on to the year-to-date June results. Average production for year-to-date June was up 15% to 3,216 BOE per day, compared to 2,803 in the prior year period. And again, the increase was due to production from the wells that were drilled over the last 12 months. The production mix for the first six months of 24 was 74 percent oil compared to 76 percent in the prior year period. Adjusted EBITDA was 20.4 million compared to 19 million in the prior year period, which was an increase of 7 percent due to the higher production and higher prices, which were slightly up 1 percent. Net revenue increased 15 percent to 28.1 million compared to $24.4 million in the prior year period due to higher production and prices. Net back from operations decreased to $39.66 per BOE compared to $42.07 per BOE in the prior year period. This was due to higher operating expenses per BOE due to adjusted true-ups as well as reworks and water hauling costs. Net income was $7.4 million and basic EPS was $0.21 per share in near-to-date June 24 period compared to $12.2 million or $0.34 per basic share in the prior year period. The decrease was due to $2.5 million of deferred income tax expense that was recorded in 24 and an unrealized gain of $2.1 million from commodity contracts that was recognized in the prior year period. And I'd also just want to point out, like we mentioned, our credit facility was redetermined in the second quarter, and our borrowing base was increased from $40 million to $50 million, which was a 25 percent increase. This gives us more flexibility in managing our working capital going forward, and it also demonstrates the value of the field. And with that, I'll hand it back to Wolf.