Canacol Energy Ltd. Reports Net Income of $13.9 Million For The Second Quarter of 2025

CALGARY, Alberta, Aug. 07, 2025 (GLOBE NEWSWIRE) — Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX:CNE, OTCQX:CNNEF, BVC:CNEC)) is pleased to report its financial and operating results for the three and six months ended June 30, 2025. Dollar amounts are expressed in United States dollars, with the exception of Canadian dollar unit prices (“C$”) where indicated and otherwise noted.

Highlights for the three and six months ended June 30, 2025.

• The Corporation’s natural gas and liquefied natural gas (“LNG”) operating netback decreased 4% to $5.11 per Mcf for the three months ended June 30, 2025, compared to $5.34 per Mcf for the same period in 2024. The decrease is mainly due to an increase in operating expenses on a per Mcf basis as a result of fixed operating expenses over lower sales volume. The Corporation’s natural gas and LNG operating netback increased 4% to $5.30 per Mcf for the six months ended June 30, 2025, compared to $5.12 per Mcf for the same period in 2024. The increase is due to an increase in average sales prices, offset by an increase in operating expenses on a per Mcf basis.
• Adjusted EBITDAX decreased 35% and 23% to $47.4 million and $103.6 million for the three and six months ended June 30, 2025, respectively, compared to $73.2 million and $134.2 million for the same periods in 2024, respectively. The decrease is mainly due to a decrease in realized contractual natural gas and LNG sales volumes.
• Adjusted funds from operations decreased 35% and 23% to $36.9 million and $76.2 million for the three and six months ended June 30, 2025, respectively, compared to $57.1 million and $99.3 million for the same periods in 2024, respectively, mainly due to a decrease in EBITDAX.
• Total revenues, net of royalties and transportation expenses for the three and six months ended June 30, 2025 decreased 27% and 17% to $64.8 million and $137.5 million, respectively, compared to $88.3 million and $166.0 million for the same periods in 2024, respectively, mainly due to a decrease in realized natural gas and LNG sales volumes.
• Realized contractual natural gas sales volume decreased 25% and 20% to 119.0 MMcfpd and 123.8 MMcfpd for the three and six months ended June 30, 2025, respectively, compared to 158.5 MMcfpd and 154.5 MMcfpd for the same periods in 2024, respectively.
• The Corporation realized net income of $13.9 million and $45.7 million for the three and six months ended June 30, 2025, respectively, compared to a net loss of $21.3 million and $17.6 million for the same periods in 2024, respectively. The increase in net income is the result of recognizing a non-cash deferred income tax recovery of $14.1 million and $33.6 million for the three and six months ended June 30, 2025, respectively, compared to a non-cash deferred income tax expense of $42.6 million and $43.1 million for the same periods in 2024, respectively.
• Net cash capital expenditures for the three and six months ended June 30, 2025 were $57.1 million and $107.5 million, respectively, compared to $33.9 million and $69.7 million for the same periods in 2024, respectively. The increase is mainly related to the cost of drilling the Natilla-2 exploration well.
• As at June 30, 2025, the Corporation had $37.0 million in cash and cash equivalents and $20.9 million in working capital deficit.

Outlook

The Corporation remains focused on completing its exploration and development drilling and workover programs, and the installation of additional compression, for the remainder of 2025. One new successful exploration well, Borbon-1, and one new successful appraisal well, Fresa-4, were drilled in June 2025. The Corporation is also completing the drilling of the Palomino-1 exploration well located in the Sucre Norte area as of the date of this release.

At the end of July 2025, the Borbon-1 and Zamia-1 exploration wells, located in the Sucre Norte area, were tied into the permanent production facilities at Jobo, with each currently producing approximately 8 MMcfpd. The successful Fresa-4 appraisal well was also brought onto production at the end of July 2025 and is currently producing at approximately 9 MMcfpd. Once completed, the Palomino-1 exploration well is anticipated to be brought on to production at a rate of between 8 and 10 MMcfpd by mid-August 2025. Current natural gas sales are approximately 138 MMcfpd.

Sustainability

During the quarter ended June 30, 2025, the Corporation presented its 2024 ESG and TCFD Reports. Both reports are available on the Corporation’s website at www.canacolenergy.com.

Executive Management Change

The Corporation announces that Mr. William Satterfield, Senior Vice President of Exploration, tendered his resignation effective August 7, 2025. The Board of Directors of the Corporation wish to thank Mr. Satterfield for his dedication and contributions to Canacol over the past four years, and wish him well in his future personal and professional endeavors.

FINANCIAL & OPERATING HIGHLIGHTS

(in United States dollars (tabular amounts in thousands) except as otherwise noted)