The following is a summary of the Canacol Energy Ltd. (CNNEF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Canacol Energy reported a Q1 2024 netback of $4.90 per Mcf and an EBITDA of $61 million.

• The gas sales prices increased by 29% compared to the same period in 2023, leading to a record high in gas sales prices.

• The Q1 2024 CapEx was notably lower than the previous quarter as well as the same period in 2023, reported at $36 million.

• Realized gas price stood at $6.66 per Mcf, a significant increase from the previous year, while operating expenses for the quarter were down at $0.45 per Mcf.

• Total revenues increased to $77.7 million and adjusted funds from operations rose 29% to $42.2 million, mainly due to a reduction in current tax expense.

• Canacol reported a net income of $3.7 million for Q1 2024.

Business Progress:

• Canacol Energy successfully increased gas sales due to successful drilling and workover activities.

• The company has plans for further exploration and development, including the drilling of up to 5 development wells and 4 exploration wells.

• The firm is aiming to increase efficiency by focusing on operational improvements to reduce CapEx.

• The company anticipates a 10-15% increase in contract prices in 2025 due to a tight supply.

• The sale of its non-core investment, Arrow, for $13.8 million shows Canacol's focus on its core gas assets.

• The company has highlighted a commitment to integrating ESG strategies into its business model and expects to drill the high-impact Cardomomo-1 exploration well in mid-2024.

• Canacol shared plans for continued exploration in the lower Mag Valley and a high-impact exploration well in Q4.

• The firm's future outlook includes the potential impact on the Colombian market by importing gas from Venezuela.

More details: CANACOL ENERGY LTD IR

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