CALGARY, AB, July 30, 2025 /CNW/ – Kiwetinohk Energy Corp. (“Kiwetinohk” or, the “Company”) (TSX:KEC) today reported its second quarter 2025 results and updated annual guidance. As companion documents to this news release, please review Kiwetinohk’s management discussion and analysis (MD&A) and condensed consolidated interim financial statements for the second quarter of 2025 (available on kiwetinohk.com or www.sedarplus.ca) for additional details.
Second quarter 2025 highlights include:
- Record production of 33,217 boe/d; low end of annual guidance raised by 1,000 boe/d.
- Operating costs of $6.02/boe; annual guidance lowered by $0.50/boe.
- Transportation expenses of $5.73/boe; annual guidance lowered by $0.25/boe.
- Upstream capital of $51.1 million; high end of annual guidance reduced by $10 million.
- Chicago gas sales priced at 164% premium to AECO for the six month period ending June 30, 2025; 23% toll reduction on Alliance effective Nov 1, 2025.
- Continued Montney outperformance confirms turbidite deposit overlying Simonette Duvernay with 69 high return locations mapped.
- New pacesetting drill and completion costs executed in Tony Creek Duvernay and Placid Montney.
- Adjusted funds flow from operations of $88.4 million, targeting a full-year 2025 range of $380 – $405 million at current strip pricing.
- Free free funds flow from operations of $37.2 million, targeting a full-year 2025 range of $80 – $110 million at current strip pricing.
- Restarted NCIB program.
“It has been a very strong first half of the year with the business performance at or ahead of budget on almost all fronts. Our Duvernay and Montney platform is delivering exciting results with strong production, lowering operating and capital costs, peer leading product realizations with critical contracted access to key markets and significant free funds flow generation. These results have supported our decision to begin buying Kiwetinohk shares as our debt reduction is ahead of schedule. We look forward to a more fulsome return of capital framework in the coming quarters,” said Pat Carlson, Chief Executive Officer.
Kiwetinohk’s previously announced launch of a formal business strategy review to evaluate a range of potential value enhancing opportunities with a focus on its upstream assets and an orderly exit from its power business continues with no developments to report at this time.
Financial and operating results
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For the three months ended |
For the six months ended June 30, |
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|
2025 |
2024 |
2025 |
2024 |
|
|
Production |
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|
Oil & condensate (bbl/d) |
10,462 |
7,598 |
10,546 |
8,025 |
|
NGLs (bbl/d) |
4,477 |
3,817 |
4,458 |
3,922 |
|
Natural gas (Mcf/d) |
109,667 |
89,259 |
107,472 |
89,859 |
|
Total (boe/d) |
33,217 |
26,292 |
32,916 |
26,924 |
|
Oil and condensate % of production |
32 % |
29 % |
32 % |
30 % |
|
NGL % of production |
13 % |
15 % |
14 % |
15 % |
|
Natural gas % of production |
55 % |
56 % |
54 % |
55 % |
|
Realized prices |
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|
Oil & condensate ($/bbl) |
84.98 |
102.71 |
90.95 |
97.25 |
|
NGLs ($/bbl) |
36.60 |
42.21 |
42.62 |
44.49 |
|
Natural gas ($/Mcf) |
4.27 |
2.39 |
5.08 |
3.11 |
|
Total ($/boe) |
45.79 |
43.91 |
51.50 |
45.86 |
|
Royalty expense ($/boe) |
(2.10) |
(3.96) |
(2.81) |
(3.78) |
|
Operating expenses ($/boe) |
(6.02) |
(6.17) |
(5.61) |
(6.61) |
|
Transportation expenses ($/boe) |
(5.73) |
(5.97) |
(5.44) |
(5.27) |
|
Operating netback ($/boe) 1 |
31.94 |
27.81 |
37.64 |
30.20 |
|
Realized gain (loss) on risk management ($/boe) 2 |
0.59 |
0.70 |
(0.44) |
0.76 |
|
Realized gain (loss) on risk management – purchases ($/boe) 2 |
(0.28) |
0.79 |
(0.73) |
0.61 |
|
Net commodity sales from purchases ($/boe) 1 |
0.67 |
0.03 |
1.40 |
0.12 |
|
Adjusted operating netback ($/boe) 1 |
32.92 |
29.33 |
37.87 |
31.69 |
|
Financial results ($000s, except per share amounts) |
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|
Commodity sales from production |
138,419 |
105,049 |
306,811 |
224,711 |
|
Net commodity sales from purchases 1 |
2,033 |
87 |
8,360 |
597 |
|
Cash flow from operating activities |
79,839 |
61,232 |
190,156 |
136,415 |
|
Adjusted funds flow from operations 1 |
88,378 |
60,637 |
204,260 |
135,661 |
|
Per share basic |
2.02 |
1.39 |
4.66 |
3.11 |
|
Per share diluted |
1.97 |
1.37 |
4.55 |
3.08 |
|
Net debt to trailing 12-month adjusted funds flow from operations 1 |
0.60 |
0.81 |
0.60 |
0.81 |
|
Free funds flow (deficiency) from operations (excluding acquisitions/dispositions) 1 |
37,150 |
(9,802) |
66,656 |
(10,567) |
|
Net income (loss) |
59,300 |
(26,538) |
114,219 |
(15,446) |
|
Per share basic |
1.35 |
(0.61) |
2.61 |
(0.35) |
|
Per share diluted |
1.32 |
(0.61) |
2.55 |
(0.35) |
|
Capital expenditures prior to acquisitions (dispositions) 1 |
51,228 |
70,439 |
137,604 |
146,228 |
|
Net acquisitions (dispositions) |
— |
— |
(21,050) |
(21) |
|
Capital expenditures and net acquisitions (dispositions) 1 |
51,228 |
70,439 |
116,554 |
146,207 |
|
June 30, 2025 |
December 31, 2024 |
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|
Balance sheet ($000s, except share amounts) |
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|
Total assets |
1,264,028 |
1,215,575 |
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|
Long-term liabilities |
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