Kolibri Global Energy Inc.

Good day and welcome to the Colibri Global Energy's third quarter 2024 earnings conference call. All participants will be in a listen-only mode. Media may monitor this call in a listen-only mode. They are free to quote any member of management, but are asked not to quote remarks from any other participant without the participant's permission. If anyone has any trouble and needs assistance, please signal a conference specialist 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. To withdraw your question, please press star, then two. I advise participants that this conference is being recorded today, November 13, 2024. This call will be available on the company's website at www.colibrienergy.com. Here is a disclaimer. This call may include forward-looking information 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 risks 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 and the applicable risks and uncertainties in Colibri's policy for updating such statements, we direct you to Colibri's most recent annual information forum and management's discussion and analysis for the period under discussion. as well as the Colibri's most recent corporate presentation, all of which are available on Colibri's website. Listeners should not place undue reliance on forward-looking information. Colibri undertakes no obligation to update any forward-looking, future-oriented financial or financial outlook information other than as required by applicable law. I would now like to turn the conference over to to Mr. Wolf Regener, the president and CEO of Colibri Global Energy Inc. Please go ahead, sir.

Thank you, Megan. And thanks, everyone, for joining us today. With me on today's call is Gary Johnson, our chief financial officer. We released our 2024 third quarter report yesterday, and we'll assume you've had a chance to look over the report. We are very pleased with the accomplishments we've achieved so far. We've had a solid quarter with strong financial results, solid production from the field, successful and under budget drilling of the first three longer lateral wells, Alicia, Renee, 211, 3H, 4H, and 5H. We drilled these wells in 14 days, which was faster than the forecast. As our one-mile laterals, we were drilling in 12 days. That led to our post-quarter results from those same wells, which we put out yesterday morning, where those three wells are making over 2,800 BOE a day currently. So bottom line is things are going very well. And with that, I'll turn the call over to Gary to discuss our financial results.

Thanks, Wolf, and thanks to everyone for joining the call. I'm going to go over a few highlights of the quarter and the September year-to-date results, and then we can take questions at the end. All amounts are in US dollars unless otherwise stated. I'll start with the third quarter results. Average production was up 11% to 3,032 BOE per day compared to 2737 in the prior year quarter. The increase was due to production from the wells that were drilled over the last 12 months. Adjusted EBITDA reached 10.1 million compared to 9.5 million in the prior year quarter, which was an increase of 6%. due to the higher production, partially offset by lower prices, which were down 9%. Revenue was up 2% to 13.9 million in the quarter, again, due to higher production, partially offset by lower prices. That income from the quarter was 5.1 million of basic EPS being 14 cents per share, which was an increase of 118% compared to 2.3 million or 7 cents per share in the prior quarter. The increase was due to higher revenue and a $3.9 million swing in the non-cash, unrealized mark-to-market adjustments in our hedges between Q3 24 and the third quarter of last year. This was partially offset by higher income tax expense. Average prices decreased by about 9 percent for the quarter, and this price decrease led to an 8 percent decline in our net backs and operations to $40.01 per BAOE compared to $43.28 in the prior year quarter. Netbacks, including the impact of hedges, were $39.95 per BOE compared to $41.65, which was a decrease of 4%. Operating expense for the quarter was $6.63 per BOE for the quarter compared to $7.34 per BOE in the prior year third quarter, which was a decrease of 10% due to higher production, which lowered our fixed cost per barrel. Now moving on to the year-to-date September results. Average production was up 13% to 3,154 BLE per day compared to 2,780 in the prior year. Adjusted EBITDA was up 7% to 30.5 million compared to 28.6 million due to the higher production partially offset by lower prices. Net revenue was up 11% to 41.2 million in the year to date 24 compared to 37.2 million in the prior year. due to higher production partially offset by lower prices of 2%. Net income was $12.5 million with basic EPS of $0.35 per share, which compares to $14.5 million and an EPS of $0.41 per share last year. And that says higher income tax, operating and G&A expense offset the increase in revenue. Net vaccine operations decreased 6% to $39.78 per BOE compared to $42.48 last year. due to lower average prices and higher op-ex. Net backs, including the impact of hedges, were $39.09 per BOE, compared to $41, which was a decrease of 5%. Operating expense was $7.84 per BOE for the year to date September, compared to $6.47 in the prior year period, which was an increase of 21%. This was due to adjustment true-ups and higher water hauling costs in the first half of the year. I'd also like to mention in October, our credit facility was redetermined at the same $50 million borrowing base, and our net debt at the end of the quarter was $29.1 million, and we had $19 million of available borrowing capacity. And you probably saw in the press yesterday, starting in October, we started repurchasing shares under our normal course issuer bid share buyback program. So far, we have repurchased about 104,000 shares, and our plan is to continue to repurchase additional shares to enhance shareholder value. And as you also saw in the newsroom yesterday, the three Alicia Renee roles are performing very well in the early stages. So we're expecting a significant increase in our cash flow as we head into the fourth quarter. And with that, I'll hand it back to Wolf.