Raine WarrenKolibri Global Energy is poised for revenue and adjusted earnings growth in 2024 as it focuses on bringing undeveloped wells into production at its Tishomingo Shale oil property in Oklahoma.
On Guidance
The company plans to complete six or seven wells this year, with two wells scheduled for drilling and completion in the second quarter and up to three more later in the year.
Kolibri aims to achieve an average daily production of 3,500 to 4,000 barrels of oil equivalent in 2024, marking a 25% to 33% increase from its 2023 guidance.
Anticipated revenue growth is projected to be between 18% and 23%, reaching $60 million to $65 million.
Adjusted EBITDA is expected to experience substantial growth, reaching $46 million to $51 million, which represents an 18% to 24% increase over the previous year's guidance.
Development Strategy for 2024
The company's strategy for 2024 centers around developing the field by converting a significant number of proved undeveloped wells into productive wells that generate cash flow.
Despite assuming a $72 WTI price, the average production, revenue, and Adjusted EBITDA guidance for 2024 show noteworthy growth compared to the latest 2023 forecast numbers.
Additionally, there has been a significant reduction in well costs, with last year's forecasted well costs at $7.2 million. The cost for the last two Emery wells was approximately $5.4 million, reflecting a 25% decrease in expenses.
Shareholder Returns
As Kolibri Global Energy continues executing its strategy, it plans to consider implementing a shareholder return policy in 2024.
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