08:47 AM EST, 12/16/2024 (MT Newswires) -- Kiwetinohk Energy Corp. ( KWTEF ) on Monday provided its 2025 budget, 2026 outlook and a fourth quarter operational update.

"In 2024 Kiwetinohk is expected to deliver almost 20% production growth while maintaining one of the strongest operating netbacks in our peer group. Looking ahead to 2025, we're encouraged by delineation and testing of our emerging Simonette Montney play. Our 2025 budget and plan aims for continued growth, enhanced operational flexibility in response to market conditions, and the generation and return of free funds flow with an initial focus on debt repayment," said Pat Carlson, Chief Executive Officer in a summary message.

In a fourth quarter operations and corporate update, KEC said production is expected to achieve near the midpoint of 2024 annual guidance. In late November, it noted, the 8-23 pad in Simonette was brought on stream, including two Duvernay wells and one Simonette Montney well. Although still in the early days, the company said a second result from the Simonette Montney in 2024 has strengthened its confidence to advance additional delineation drilling. In September the 1-27 pad was brought on-stream as reported in the third quarter results. KEC added these wells (1 Duvernay/1 Montney) continue to flow at steady rates now more than two months into production. This pad also includes the first Simonette Montney well drilled by the company.

Kiwetinohk said it will continue to develop the Simonette Montney, with a third Montney well currently underway, and three additional wells included in the 2025 drilling program. "These delineation wells are crucial for de-risking the significant production potential of this underdeveloped resource play, which overlays and complements Kiwetinohk's leading Duvernay asset base," it added.

On 2025 budget objectives, KEC said in its Power Division, it remains focused on the sale and financing efforts for the most advanced projects within its development portfolio. "Given the continued regulatory uncertainty, aside from expenditures directly supporting these processes, we have not committed additional funds to development projects at this time. We will share updates as they become available," said Fareen Sunderji, President of Power.

On 2026 outlook and capital allocation guidance, it said: "With consistently top-performing wells in the Duvernay, owned infrastructure, key egress access, and robust operating netbacks in a moderating commodity price environment, Kiwetinohk is well positioned for the future. The operating plans underlying the 2026 outlook allows Kiwetinohk to remain nimble and flexible to adapt to market conditions, optimize operations and generate free funds flow as the xompany moves towards our 40,000 boe/d production target."

Under a range of commodity price outlooks, the company added it expects to generate free funds flow in 2025 and 2026 to allow for a return of capital to shareholders.

KEC edged down $0.05 to $15.85 on Friday.