Kolibri Global Energy Inc.

Good day and welcome to the Calibre Global Energy's fourth quarter 2025 financials 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 to not quote remarks from any other participant without that participant's permission. If anyone has 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 touchstone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I advise participants that this conference is being recorded today, March 19th, 2026, 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 flow, 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 forward future oriented financial information and financial outlook information which Calibri discloses in order to provide readers with a more complete perspective on Calibri'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 Calibri's policy for updating such statements, we direct you to Calibri's most recent annual information form. and management's discussion and analysis for the period under discussion, as well as Calibri's most recent corporate presentation, all of which are available on Calibri's website. Listeners should not place undue reliance on forward-looking information. Calibri 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 call over to Mr. Wolf Regener, the President and CEO of Cleabring Global Energy Inc. Please go ahead, sir.

Hi, thank you, Dave, and thank you, everyone, for joining us today. With me on today's call is Gary Johnson, our Chief Financial Officer. I'm sure you're all aware we released our fourth quarter 25 results this morning and have released our reserve report two days ago and we're very pleased with what we achieved this last year which continues to build on our last few years and results in multiple ways. Production from the field has been going well with our production over 4,000 DOE a day which is up 15% over 2024. This production rate calculates up to having a 35% compound annual production growth rate over the last three years, which is great. Our operating expenses remain low, with just over $7.33 of DOE, which is even lower than last year's $7.44 of DOE. Our drilling program last year resulted in our approved adults producing reserves increasing by 30%. And even though the oil price used by our reserve evaluators is down substantially this year, our net present value is up 10%. The example of how significant the drop is, the first year's price used in the evaluation is down 18% to $58 a barrel. This is obviously way out of line with the current oil prices, which have been averaging in the 90s right now. Things are going well for us, and with that, I will turn the company, the call over to Gary to discuss our financial results.

Thanks, Wolf, and thanks, everyone, for joining the call. I'm just going to go over a few highlights of our annual results for 2025, and then you can take questions at the end of the call. All amounts are U.S. dollars, unless otherwise stated. As we mentioned in our earnings release this morning, we reported a 50% increase in our production to 4,013 BOE per day in 2025. The increase was due to the new wells we drilled that completed during 2025, including four at the end of the year, which increased our December production to over 5,600 BOE per day. The production and cash flow impact of the last four wells will primarily be reflected in our 2026 results. Our net revenue for 2025 was $56.9 million, which was a decrease of 3% compared to the prior year, as prices declined by 60% in 2025, which more than offset the increase in production. Adjusted EBITDA decreased 4% to $42.1 million compared to $44 million last year due to the decrease in revenue. Net income of $15.5 million in basic EPS was $0.44 per share in 2025. compared to 18.1 million with basic EPS of 51 cents per share in 2024. The decrease was due to the lower revenue and higher operating expenses due to the production increase. Our operating expense per BOE was $7.33 for 2025 compared to $7.44 for BOE in 2024, a decrease of 1%. Our net back from operations decreased to $31.49 for BOE compared to $38.54 in the prior year, a decrease of 18% due to the lower prices. Net debt at the end of 2025 was $46 million. We've tried to pay down on the set level in the first half of the year as we achieve higher production from the wells grown at the end of the year. And we also benefit from the recently elevated oil prices. And then the last time I want to mention was our share buyback program. We have purchased almost 650,000 shares since we started buying back shares for a total of 3.2 million. And we will continue to repurchase additional shares to enhance shareholder value as our working capital and credit disability allows.

And with that, I'll hand it back to Wolf. Thanks, Gary.

That was very laid out. We had a good year. Well, prices were obviously challenging. And we were lower this last year than previous years. But we still performed well. The company is in solid financial shape, and we announced our intention to start drilling additional wells in the coming months. We're looking to continue the success we've had over the last year. That 35% compound annual growth rate for our production over the last three years has been great. The wells we brought on production in late and fourth quarter, as Gary indicated, are really having the biggest impact in 2026. And the timing of the oil price increase right now is really benefiting our cash flow. Overall, our plan is to continue to execute and build and grow company value for all shareholders. As Gary said, continue to buy back shares and we'll grow more wealth. We'll continue to get the word out about the company to shareholders and potential shareholders, including we'll be attending the Wealth Conference next week and we're doing a fireside chat at the Life and Summit on April 1st as well. And we'll continue to do other things throughout the year. This concludes the formal part of our presentation.

We would be pleased to answer any questions you now may have. We will now begin the question and answer session.

To ask a question, you may press star then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, Please press start and then two. Our first question comes from Steve here in Zini with Sedoti. Please go ahead.

Good afternoon, Wolf. Good afternoon, Gary. I appreciate the caller on the call this afternoon. Wolf, how are you thinking about obviously a lot has changed in terms of the price environment of the last three weeks or so. How are you now thinking about the drilling program for this year as opposed to maybe how you were thinking about it pre-conflict or even what you were talking about late last year. I'm assuming the thought is maybe to drill more wells this year than maybe previously thought.

Yeah, cautious or optimistic is what I'll say. I don't know what the instructions are saying. We'll see how this all unfolds. For most people, this is quite unexpected. We did take advantage of that a bit, so we did a bit more hedging at the higher prices, so that helps too. But as we are going forward right now, we're just planning on Seeing how everything unfolds, I mentioned that we'll start drilling some wells here over the next coming months. And once we have firm faith on that, we'll announce that as well. We're building multiple locations out here. So that's how we have a longer lead time. And this way we can quickly move if we decide to extend the drilling program, drill more wells. But like I said, we're cautious in everything we do in general. So I do think prices are going to stay higher than they were before, no matter what happens, even if this ended tomorrow. I mean, we know what the strip is for the end of the year.

Right, we know what the strip is for the end of the year. It would be very easy for you to, and your balance sheet enables you to pivot pretty quickly if you did want to ramp up a little bit, right? Right.

right exactly so that's that's why we're doing the long lead items making sure we have everything in place so we could quickly do things and that's the big advantage we have being the size we have right we can right start and stop much faster than uh some of the bigger guys that are more rigid in their financial structure where we have a small board where we can quickly make changes uh to where we have composed for the year got it um and then in terms of

I know it changes in availability of crews, but it sounded like you indicated in the release June would be when you might start this year's drilling program. Is that fair right now? And would mean production probably early to mid-30s? Is that sort of the target?

Yeah, I mean, hopefully, we'll see how things go. Hopefully, we can get started a little sooner than that. But, yeah, I'd like to keep the tune out there until we have everything firmed up. So, I'd rather under-promise.

Yes, understood, and things change faster. Yeah. A couple of numbers surprised me in the quarter. It's the realized natural gas price. I know that moves quarter to quarter. Again, the differential can move. Seems a little bit lower than I would have expected.

Yeah, that's really hard for us as well because we sell all of our gas, our wet gas, which is our gas, natural gas liquids, and Exxon handles that. And so where that goes and as far as how much gas is sold out versus how much NGLs and things like that are all on their hands. And we're always assuming that we get the best price that is available because they're doing the same thing for their own account. Yep. It's hard for us to forecast that as it is for you.

I understand.

And then the slightly higher... It's not a big part of our stream, thank goodness.

Right, absolutely. And then the higher production operating expense, I think you noted, the four-quarter. the work over, so that should be one time in nature, right? Okay.

Correct.

That's exactly right.

And for the year, you know, we were still looking great, and we do have budgeted, you know, we work throughout the year. It just depends on when they come in, and if it's multiple and a quarter, then our walls are really low maintenance. We're lucky on that. So we need maintenance from time to time.

Understood. In terms of, you noted a lot of the there were oil-rich wells you brought online mostly in the second half of 2025. You previously noted the much slower decline rates. Is that playing out over the last few months?

Yeah, I mean, yes. I mean, we haven't seen a change. We're happy with how those wells are performing. I think metal and fuel over the years has been increasing what our decline rates, or decreasing the decline rates, I should say. Over the years. And so on the newer wells, they usually hit those a little bit harder. And then in the following years, they kind of bring it up a little bit because they do form well. We expect the same thing out of wells with drugs after.

Got it. Last one for me. You may choose not to answer it, but given that it's March 19th, can you give any sense of what 1Q production might look like?

Yeah, no, we haven't put it out there, so I can't really speak to that on this call.

I understand. I understand.

Thanks so much, Wolf. Thanks, Eric. Absolutely. And the next question comes from Bo Bratt with Alliance Global Partners. Please go ahead. Hi. Good morning, Wolf.

Can you give me at least a ballpark on your CapEx for 2026?

um you know we haven't put anything out there so i have to be careful what i've said in the past is kind of my goal and speaking just for myself not from our board that we're doing anything else is uh to keep the production flat to growing a little bit that shouldn't take more than uh three wells or so so that's kind of as close as I can get without from my own opinion as far as what we should do for at least do for the year now that our prices are higher we'll probably be higher than that but you know if we have more wells it adds a lot and so our wells are you know in the roughly seven million dollar range each uh it just depends on how many we end up drilling for the year so but once we have that pinned down we'll put that out and precisely but our topics you know, will be lower this year than it was last year by a long shot unless we really accelerate what we're doing out there.

Yeah, and I guess closer to 2024, the four-year cap tax for 2024 may be even lower than that.

Yeah, I mean, it's going... Yeah, as we talked about earlier, it's like we were going into this kind of talking about what we're doing with oil prices being a lot lower than we are. And with that lower oil price number in mind, you know, I think from my point of view, I think it will end up being reasonable to drill, you know, three wells or so at least. So that's in the lower 20s. And then if oil prices stay higher, I would anticipate that, you know, we would recommend and the board would agree that we should drill some more wells. So that would increase the topics quite a bit.

That's helpful. And I apologize, I couldn't find any info on your hedging program. Can you just summarize, you know, your hedging program for, you know, the first quarter and then the full year?

Gary, do you want to take that?

Yeah, well, the first quarter, we didn't really hedge much recently because it was already in March when the prices went up. So for the first quarter, we have cost of college in place. um we're about 60 000 uh barrels of oil per day the cost of colorings is 58.50 to 77.25 but we have hedged um in april we have a fixed price swap of that at ninety four dollars for sixty thousand weekly per day and then we've lots of heads like next may and june as well in the in the 80s We've basically done as much headings as we're allowed to do in our credit facility right now for the second quarter. And those headings were about 500 girls a day, wasn't it, roughly?

Yeah.

That's rough numbers. Yeah, rough numbers, yeah. We have a substantial amount of our production that's not hedged. I'd say over 50%. That's pretty floating still.

So is the second half production pretty much open right now?

No, we still have hedges there. We still have some old hedges from the costless callers, right? And then we added some other costless callers. Go ahead, Gary.

Yeah, so we put in some more costless callers for the second half of the year. So we have about half or these were entered into obviously before the price subject or $50.25 is the low and $66.75 is the high and then we just do new ones where the low is $61.50 and the high is $91 those are coffee collars and those take place across the rest of the year right and that's again that's 50% roughly of our current pdp so anything new that we drill yeah okay great

And then when you look at your cost structure, you know, for 2026, any changes that you could highlight? I'm wondering about the royalty per barrel. It looks like it was, you know, pretty low in the fourth quarter. Is that sensitive to prices, or just can you help me understand how that might improve in 2026?

So the royalty percentage changes a little bit depending on where the majority of our production is coming from, because each square mile out here has a different royalty structure. But in general, you know, we're averaging 22-ish percent burdens on everything. And then the dollar amount would float up and down with pricing.

Yes, so that's the royalty percentage.

Great. Thank you so much.

Absolutely. Thanks for the question.

Good job to you. This concludes our question and answer session. I would like to turn the conference back over to Wolf Regener for any closing remarks.

I just want to say thank you everyone for participating and both of you that will be listening to this later as well. And we're looking forward to having a really good 2026 year. I think we're off to a really good start between production levels and the pricing which is helping out so thank you everyone very much have a great day the conference is now concluded thank you for attending today's presentation you may now disconnect