Kelt Reports Financial and Operating Results for the Quarter and Year Ended December 31, 2025

Executive Summary

• Kelt Exploration reported a record net income of C$63.1 M for FY 2025, up 39% YoY, with adjusted funds from operations (AFFO) of C$261.5 M (+18%).
• Average production increased to 45,102 BOE/d in Q4 2025 (+24% QoQ) and 40,397 BOE/d for the full year (+22% YoY).
• The company raised its 2026 AFFO guidance by C$20 M to C$375.0 M and lifted its WTI price forecast to US$69.40/bbl (+18%).

Key Details

• Financial Highlights (Q4 2025 vs Q4 2024)
• Petroleum & natural gas sales: C$143.8 M (+15%)
• Cash provided by operating activities: C$62.8 M (+31%)
• Adjusted funds from operations: C$76.8 M (0.38 $/diluted share) (+11%)
• Net income: C$19.1 M (0.09 $/diluted share) (+38%)
• Annual Highlights (2025 vs 2024)
• Total sales: C$513.1 M (+10%)
• AFFO: C$261.5 M (1.29 $/diluted share) (+18%)
• Net income: C$63.1 M (0.31 $/diluted share) (+39%)
• Bank debt increased to C$179.9 M; net debt C$189.7 M (0.7× AFFO).
• Production
• Q4 average production: 45,102 BOE/d (Oil 11,024 bbl/d, NGLs 5,790 bbl/d, Gas 169,725 mcf/d)
• FY average production: 40,397 BOE/d (Oil 9,316 bbl/d, NGLs 5,545 bbl/d, Gas 153,214 mcf/d)
• Forecast Q1‑2026 production: 46,000–47,000 BOE/d.
• Pricing
• Oil price (Q4): US$74.29/bbl, down 20% YoY.
• NGLs price (Q4): US$32.49/bbl, down 16% YoY.
• Gas price (Q4): C$2.96/mcf, up 47% YoY.
• Capital Expenditures
• Q4 2025 capex: C$42.8 M (down 56% QoQ).
• FY 2025 capex: C$328.3 M (net of A&D).
• 2026 capital program unchanged at C$355.0 M, now forecast AFFO C$375.0 M.
• Operations Update
• Wembley/Pipestone: plan to drill 16 wells and complete 17 in 2026; 12 wells already drilled/completed by Q2‑2026.
• Pouce Coupe West: two Montney wells now producing.
• Oak: completed 3‑D seismic over ~110 sections, improving lateral drilling efficiency.
• Reserves (as of Dec 31 2025)
• Proved Developed Producing (PDP): 83.5 M BOE (+6% YoY).
• Proved: 265.1 M BOE (‑0.7%).
• Proved + Probable (P+P): 448.3 M BOE (+3%).
• Reserve Valuation
• NPV10% (PDP) = C$887.3 M (↑1%).
• NPV10% (Proved) = C$1,961.8 M (‑9%).
• NPV10% (P+P) = C$3,311.3 M (‑5%).
• Future Development Capital (FDC)
• Total FDC for P+P reserves: C$3.12 B covering 422 wells (Alberta Montney 276, BC Montney 91, Charlie Lake 47).
• Net Asset Value
• NAV per share at Dec 31 2025: C$15.62, ~104% above the closing price of C$7.67.

Notable Quotes

“We remain on track to deliver strong production growth in 2026, supported by our revised capital program and higher commodity price assumptions,” – David J. Wilson, President & CEO.

Materiality Assessment: Material – Positive (significant earnings increase, production growth, upgraded guidance).