Kelt Exploration Reports Mixed Q3 2024 Results

Kelt Exploration ( (KELTF) ) has released its Q3 earnings. Here is a breakdown of the information Kelt Exploration presented to its investors.

Kelt Exploration Ltd. is a Canadian oil and gas company engaged in the exploration, development, and production of petroleum and natural gas resources, primarily operating in Alberta and British Columbia.

Kelt Exploration Ltd. has released its financial and operational results for the third quarter of 2024, reflecting a mixed performance amid fluctuating commodity prices and operational challenges. The company experienced a decline in revenues and adjusted funds from operations compared to the previous year, as well as a notable increase in production volumes.

During the third quarter, Kelt’s petroleum and natural gas sales decreased by 8% to $107.9 million, while adjusted funds from operations fell by 17% to $48.9 million. The company’s average daily production rose by 15% to 32,378 BOE per day, driven by increased oil production from new wells at Wembley/Pipestone, which offset declines in natural gas liquids production. Kelt’s net income also saw a significant drop, decreasing by 56% to $8.9 million, as commodity prices for oil and gas faced downward pressure.

Kelt has maintained its capital expenditure forecast for 2024 at $325 million, shifting some projects to 2025 due to logistical challenges affecting the Albright Gas Plant start-up. The company anticipates a substantial increase in production once the plant is operational, expecting to exit 2024 with production between 36,000 and 38,000 BOE per day and further growth in 2025.

Looking ahead, Kelt remains focused on operational efficiency and production growth despite the current market conditions. The company plans to continue its exploration and development activities, with management expecting to provide further guidance on its 2025 capital expenditure budget and operational objectives early next year.