What is the expected impact on EPS and cash per share if the projected production levels are achieved and maintained?
Short answer:
The press release youâve quoted does not contain any specific figures or guidance about how the new Lovinaâfield production will translate into earningsâperâshare (EPS) or cashâperâshare. Consequently, we cannot calculate an expected impact on EPS or cash per share from the information that is publicly available in this announcement.
Why the impact canât be quantified from the news release
What the release tells us | What we would need to estimate EPS/cashâperâshare |
---|---|
⢠Four Lovina wells (9â16â1H, 9â16â2H, 9â16â3H, 9â16â4H) have been fractureâstimulated. ⢠They are flowing back âthrough a conservative controlled flowâbackâ and are âin variâŚâ. |
⢠Expected daily/annual production volumes (Barrels of Oil Equivalent â BOE) from those wells. ⢠Forecasted commodity prices (oil, natural gas, liquids) at which those BOE will be sold. ⢠Operating cost structure (lifting costs, royalties, transportation, gathering, etc.). |
⢠The wells are 100âŻ% owned (100âŻ% working interest). | ⢠Companyâwide financials: total share count, existing debt service, tax rate, and any hedges or other nonâoperating items that affect net earnings and cash flow. |
⢠No forwardâlooking statements on revenue, net income, cash flow, or perâshare metrics. | ⢠Managementâs explicit guidance (or a disclosed financial model) that links incremental production to incremental earnings and cash. |
Because none of the above quantitative inputs are disclosed, any attempt to project the EPS or cashâperâshare impact would be purely speculative.
How EPS and cashâperâshare are normally derived from a production increase
- Estimate incremental production (e.g.,âŻXâŻthousand BOE per day).
- Apply commodity price assumptions (e.g.,âŻ$âŻ75âŻ/âŻBOE for oil, $âŻ2.50âŻ/âŻMMBtu for gas).
- Subtract operating expenses (lifting cost per BOE, gathering, royalties, taxes).
- Convert the resulting net earnings to perâshare terms by dividing by the diluted weightedâaverage share count.
- For cash per share, start with operating cash flow (earningsâŻ+âŻnonâcash itemsâŻââŻworkingâcapital changes), then subtract capital expenditures required to maintain the new production, and finally divide by the share count.
Without stepâ1 (production volume) and stepâ2 (price assumptions), stepsâŻ3â5 cannot be performed.
What you can do next
Action | Reason |
---|---|
Check recent quarterly or annual filings (FormâŻ10âQ, 10âK, MD&A) for Kolibri Global Energy. | These documents often contain âproduction guidanceâ and sometimes a âperâshare impactâ table. |
Look for a management commentary or earnings call transcript after the release date (early AugustâŻ2025). | Management may have discussed the expected contribution of the Lovina wells to earnings and cash flow. |
Monitor any subsequent press releases that provide production numbers or financial guidance. | Companies frequently follow an operations update with a âproduction updateâ that includes volume figures. |
Use analyst consensus estimates for commodity prices and operating costs to build a simple model. | Even an approximate model can give a ballâpark figure for EPS/cash per share, provided you have a credible production estimate. |
Bottom line
- The operations update confirms that four Lovina wells are now flowing, but no quantitative production or financial guidance is disclosed.
- Therefore, the expected impact on EPS and cash per share cannot be determined from this announcement alone.
- To answer the question accurately, youâll need additional data (production volumes, price assumptions, cost structure, and share count) from the companyâs more detailed financial disclosures or from management commentary.
Other Questions About This News
Are there any strategic plans for additional drilling or acquisition in the Tishomingo field following these results?
How do the fracture stimulation costs for the Lovina wells compare to the company's historical average and to peer companies in the region?
What is the expected sustainable production rate from these wells after the flowâback period ends?
Is there any impact on the companyâs debt covenants or financing arrangements due to the current capital deployment?
How did the actual drilling and completion costs per foot compare to the company's original budget and to regional benchmarks?
Will the results of the Lovina wells trigger any changes to the company's 2025 production guidance or capital spending plan?
What are the potential regulatory or environmental risks that could affect the future development of the Lovina wells?
How does the performance of these wells compare to recent wells completed in the Tishomingo field or other Oklahoma assets?
What impact will the current well results have on the company's quarterly revenue and cashâflow forecasts?
How might this operational update affect analyst consensus estimates and target price for KGEI?
What is the estimated net present value (NPV) and internal rate of return (IRR) for the Lovina drilling and completion program?
What is the timeline for completing the remaining steps (e.g., postâflowâback testing, production rampâup, and tieâin to the gathering system) for each Lovina well?
Are there any indications of reserve additions or revisions to proven reserves (P90) as a result of this update?
What were the actual production rates (e.g., barrels of oil equivalent per day) achieved in the initial flowâback of the Lovina wells?