Kiwetinohk reports third quarter 2025 results and provides updated annual guidance

Executive Summary

• Kiwetinohk Energy Corp. reported strong Q3 2025 results – production up to 31,814 boe/d, adjusted funds flow from operations of $98.8 M, and free cash flow of $28.0 M for the quarter (YTD $94.6 M).
• Net debt fell to $178.6 M, giving a net‑debt/adjusted‑funds‑flow ratio of 0.48×, and the company generated $2.3 M of share buybacks in the first nine months.
• The Board recommended shareholder approval of a Plan of Arrangement under which Cygnet Energy Ltd. will acquire all outstanding shares; a special meeting is slated for ~December 16 2025.
• Updated 2025 guidance reflects higher production (33‑34 Mboe/d), lower royalty rates (5‑6 %), reduced operating costs ($6.00‑$6.25/boe) and transportation costs, and lowered upstream capital spend ($280‑$288 M).

Key Details

• Production: Q3 average 31,814 boe/d (53% gas, 47% liquids); record weekly 37,571 boe/d and daily 39,100 boe/d in October.
• Prices & Netbacks: Realized total price $45.09/boe; operating netback $31.37/boe; adjusted operating netback $33.56/boe.
• Financials (Quarter):
• Commodity sales from production: C$131.972 M
• Adjusted funds flow from operations: C$98.782 M
• Free cash flow (ex‑capex): C$28.0 M
• Capital expenditures (pre‑disposition): C$70.815 M; net dispositions –C$5.55 M → total capex/net disposition $65.265 M.
• Balance Sheet: Total assets C$1,244.4 M; long‑term liabilities C$327.6 M; net debt C$178.6 M; working capital surplus C$17.3 M.
• Operational Milestones:
• Completed 9,500 m single‑leg horizontal well (record length).
• Expanded Simonette 5‑31 gas plant to 45 MMcf/d (total processing capacity 135 MMcf/d).
• Added 3‑well pad at Simonette (01‑27) and two new wells at Placid.
• Pipeline & Pricing: Extended Alliance Pipeline commitment through 2035; toll reduced 22% to C$0.99/MMcf, with potential revenue sharing. Realized gas price $3.93/MMcf – a premium to AECO 7A benchmark.
• Power Business Exit: Six of seven power projects sold/cancelled for ~C$27 M; intent to exit remaining projects by year‑end.
• Shareholder Returns: $2.3 M returned via share repurchases (first nine months).
• Plan of Arrangement: Cygnet Energy Ltd. to acquire all Kiwetinohk shares pending shareholder, court and regulatory approvals; special meeting scheduled ~Dec 16 2025.
• Guidance Updates (2025):

• Sensitivity (Adjusted Funds Flow):
• Base case strip: $61/bbl WTI, $3.75/MMBtu HH → $395‑$410 M.
• +/- $1.00/bbl WTI changes AFoF by ±$0.8 M; +/- $0.10/MMBtu Chicago changes AFoF by ±$1.0 M.

Notable Quotes

• “Operationally, we achieved major milestones…drilling Canada’s longest single‑leg horizontal well…expanding the 5‑31 gas plant…extending our Alliance Pipeline commitment through 2035.” – Pat Carlson, CEO
• “Corporate financial performance remained strong despite weaker commodity prices…about $95 M of free cash flows in the first nine months…driving reduced debt levels and positive revisions to our full‑year guidance.” – Pat Carlson, CEO

Conference call scheduled for 2025‑11‑06 at 8:00 AM MT (10:00 AM ET).