Kelt Exploration Ltd

Latest Results (21.04.2026):

Kelt Exploration Ltd — third quarter of 2025: Kelt reported Q3 2025 average production of 37,710 BOE/d (up 16% year-over-year, 36% liquids), petroleum and natural gas sales of $110.4 million, adjusted funds from operations of $44.6 million ($0.22 per diluted share, down 9% YoY), and a net loss of $7.4 million for the quarter. Capital spending in Q3 was $89.8 million and the company ended the quarter with net debt of $223.7 million. Kelt expects significant production growth in Q4 2025 following the start-up of the Albright Sulphur Recovery Gas Plant and targets year-end net debt of about $170 million.

Production

Q3 2025 production averaged 37,710 BOE/d (16% increase vs Q3 2024). The product mix was ~36% oil & NGLs and 64% gas. Some gas and oil were temporarily shut-in during the quarter (Pouce Coupe, Grande Cache and Wembley) but all shut-ins were returned to service; deliveries to the new Albright plant began in Q4.

Sales and cash flow

Petroleum & natural gas sales were $110.4 million (up 2% YoY). Adjusted funds from operations were $44.6 million for the quarter (down 9% YoY) and cash provided by operating activities was $53.8 million (up 3% YoY).

Profitability and netback

Operating netback was $14.69/BOE (down 18% YoY), driven by lower realized oil and NGL prices. Net loss for Q3 was $7.4 million (versus net income of $8.9 million in Q3 2024).

Realized commodity prices & hedging

Realized prices in Q3 2025: oil $84.91/bbl (-10% YoY), NGLs $33.70/bbl (-31% YoY), gas $1.71/Mcf (+37% YoY). The company recorded a small net loss on derivatives in Q3 (~$0.2 million) and continues to use hedges and fixed contracts to protect cash flows.

Capital spending and operations

Net capital expenditures in Q3 were $89.8 million (drill & complete ~$56.6M; facilities/pipelines/equipment ~$32.0M). Q3 activity included 5.0 net wells drilled and 10.0 net wells completed. Kelt expects Q4 capex to be lower than forecasted funds from operations.

Balance sheet and liquidity

Bank debt drawn was $186.0 million at quarter end; net debt was $223.7 million (about 0.9x trailing AFFO). Subsequent to quarter end the credit facility capacity was increased to $300 million (from $250 million).

Outlook and guidance

Kelt reaffirmed a 2025 production forecast of 40,000–41,000 BOE/d (reduced from prior guidance), and trimmed 2025 adjusted funds from operations guidance to $280 million. Management expects meaningful production and cash flow growth into 2026 and aims for year-end 2025 net debt of approximately $170 million (≈0.6x forecasted 2025 AFFO).

Costs and other operating metrics

Q3 production expense was $37.1 million ($10.70/BOE), transportation expense $13.1 million ($3.78/BOE), and royalties averaged 9.8% (down from 12.4% in Q3 2024), reflecting provincial royalty relief on eligible wells.