Kelt provides 2026 financial, production guidance

Executive Summary

• Kelt Exploration Ltd. has released its 2026 financial and operating guidance, setting a capital expenditure budget of $355 million.
• The company forecasts 2026 Adjusted Funds from Operations (AFFO) of $355 million, representing a 27% increase over the 2025 forecast of $280 million.
• Production is expected to average between 50,000 and 52,000 barrels of oil equivalent per day (BOEPD) in 2026, a 26% increase from 2025 forecasts, with a product mix of 38% oil/NGLs and 62% gas.

Key Details

• Capital Expenditure Budget: Total budget of $355 million for 2026, broken down as follows:
  • $252 million (71%) for drilling 33.2 net wells and completing 37.2 net wells.
  • $96 million (27%) for equipping new wells and infrastructure (facilities and pipelines).
  • $7 million (2%) for land purchases and miscellaneous expenses.
• Production Forecasts:
  • Average production: 50,000 – 52,000 BOEPD.
  • Product Mix: 38% Oil and NGLs; 62% Gas.
• Financial Metrics:
  • Forecasted 2026 AFFO: $355 million (vs. $280 million forecasted for 2025).
  • Net Debt Target: $170 million by December 31, 2026, resulting in a net-debt-to-AFFO ratio of 0.5 times.
• Operational Activity by Division:
  • Oak/Flatrock: Drill 9 development wells and 1 exploratory/delineation well; complete 12 wells (including 2 DUCs from 2025).
  • Pouce Coupe/Progress/Spirit River: Drill 7 wells and complete 8 wells (including 1 DUC from 2025).
  • Wembley/Pipestone: Drill 16 Montney wells and complete 17 wells.
• Commodity Price Sensitivities (Impact on 2026 AFFO):
  • A 10% change in oil/NGL prices ($74.62/bbl and $32.4/bbl respectively) affects AFFO by $25.3 million.
  • A 10% change in gas prices ($3.63/Mcf) affects AFFO by $19.4 million.

Notable Quotes

• No direct quotes from management were included in the provided text.