Kolibri Global Energy Trims FY23 Outlook Amid Operational Challenges
Portfolio Pulse from Lekha Gupta
Kolibri Global Energy Inc (NASDAQ:KGEI) has revised its FY23 outlook downwards due to operational challenges, including delays in new well production, lower-than-expected oil prices, and shut-in wells impacting production. The company now anticipates average production of 2,800 to 3,000 boepd, adjusted EBITDA of $39 million-$41 million, and revenue of $51 million-$53 million. Capital expenditures are also expected to be lower at $47 million-$49 million. Despite these setbacks, KGEI reported successful drilling and stimulation of three Emery wells, although the process affected surrounding wells, with recovery expected to take a few months. The Velin 12-9H well is nearing completion, and the next well is scheduled to begin in early January. KGEI shares closed at $3.70 on Thursday.
December 22, 2023 | 1:41 pm
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NEGATIVE IMPACT
Kolibri Global Energy has lowered its FY23 production and financial forecasts due to operational challenges and market conditions, with a negative impact on its short-term outlook.
The reduction in Kolibri Global Energy's FY23 outlook is a direct result of operational challenges and lower-than-expected oil prices, which are likely to negatively affect investor sentiment and the stock price in the short term. The impact on surrounding wells and the delay in production start for new wells add to the negative outlook, despite the progress in drilling activities.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100