Financial Statements and Related Announcement::Second Quarter and/ or Half Yearly 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: 08-Aug-2025 05:57:22
Status: New
Announcement Sub Title: Second Quarter and/ or Half Yearly Results
Announcement Reference: SG250808OTHRH002
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 Net Income of $13.9 Million For The Second Quarter of 2025

CALGARY, ALBERTA - (August 7, 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 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.