Overview

* Canacol Q2 revenue falls 27% due to lower natural gas and LNG sales volumes

* Adjusted EBITDAX and funds from operations both decrease 35% yr/yr

* Net income of $13.9 mln, up from a net loss last year due to tax recovery

Outlook

* Company expects Palomino-1 well to produce 8-10 MMcfpd by mid-August 2025

* Canacol focused on exploration and development drilling for remainder of 2025

Result Drivers

* SALES VOLUME DECLINE - Decrease in realized contractual natural gas and LNG sales volumes impacted revenue and EBITDAX

* OPERATING EXPENSES - Higher operating expenses per Mcf due to fixed costs over lower sales volume

* TAX RECOVERY - Net income boosted by non-cash deferred income tax recovery

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net $13.86

Income mln

Q2 $47.35

Adjusted mln

EBITDAX

Q2 $36.86

Adjusted mln

FFO

Q2 Cash $57.05

Capex mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

* Wall Street's median 12-month price target for Canacol Energy Ltd (Alberta) ( CNNEF ) is C$3.50, about 42.6% above its August 7 closing price of C$2.01

* The stock recently traded at 1 times the next 12-month earnings vs. a P/E of 1 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)