Financial Statements and Related Announcement::First Quarter Results

Issuer & Securities

Issuer/ Manager: CANACOL ENERGY LTD.
Securities: CANACOLENE US$500M5.75%281124A - US134808AD63 - PNTB
CANACOLENE US$500M5.75%281124R - USU13518AC64 - YW0B
Stapled Security: No

Announcement Details

Announcement Title: Financial Statements and Related Announcement
Date &Time of Broadcast: 09-May-2025 05:59:46
Status: New
Announcement Sub Title: First Quarter Results
Announcement Reference: SG250509OTHRFHY9
Submitted By (Co./ Ind. Name): Canacol Energy Ltd.
Designation: SGX-SE
Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format): Canacol Energy Ltd. Reports a 12% Increase in Natural Gas Netback in Q1 2025

CALGARY, ALBERTA - (May 8, 2025) - 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 months ended March 31, 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 months ended March 31, 2025

The Corporation s natural gas and liquefied natural gas ( LNG ) operating netback increased 12% to $5.48 per Mcf for the three months ended March 31, 2025 compared to $4.90 per Mcf for the same period in 2024. The increase is due to an increase in average sales prices, net of transportation expenses.

Adjusted EBITDAX decreased 8% to $56.3 million for the three months ended March 31, 2025, compared to
$61.0 million for the same period in 2024. The decrease is mainly due to a decrease in realized contractual natural gas and LNG sales volumes, offset by an increase of natural gas and LNG operating netback.

Adjusted funds from operations decreased 7% to $39.3 million for the three months ended March 31, 2025, compared to $42.2 million for the same period in 2024 mainly due to a decrease in EBITDAX.

Total revenues, net of royalties and transportation expenses for the three months ended March 31, 2025 decreased 6% to $72.7 million compared to $77.7 million for the same period in 2024, mainly due to a decrease in realized natural gas and LNG sales volumes, offset by an increase in average sales price, net of transportation expenses of $7.23 per Mcf for the three months ended March 31, 2025, compared to $6.60 per Mcf for the same period in 2024.

Realized contractual natural gas sales volume decreased 14% to 128.7 MMcfpd for the three months ended March 31, 2025, compared to 150.4 MMcfpd for the same period in 2024.

The Corporation realized net income of $31.8 million for the three months ended March 31, 2025 , compared to net income of $3.7 million for the same period in 2024. The increase in net income for the three months ended March 31, 2025 is the result of recognizing a non-cash deferred income tax recovery of $19.5 million for the three months ended March 31, 2025 as compared to a non-cash deferred income tax expense of $0.5 million in 2024, offset by a decrease in EBITDAX.

Net cash capital expenditures for the three months ended March 31, 2025 were $50.5 million compared to
$35.9 million for the same period in 2024. The increase is due to increased spending on drilling, completion, testing, and workover.

As at March 31, 2025, the Corporation had $79.1 million in cash and cash equivalents and $14.2 million in working capital.