Kelt Exploration (KEL) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly production of 50,388 BOE/d in Q2 2026, up 30% year-over-year, with 39% oil/NGLs and 61% gas.

• Realized oil prices rose 60% to $131.65/bbl, NGLs up 57% to $57.75/bbl, while gas prices declined 8% to $2.14/Mcf.

• Sulphur sales contributed $9.2 million to funds from operations amid global supply shortages and rising prices.

• Net income for Q2 2026 was $44.7 million, up 38% year-over-year.

Financial highlights

• Petroleum and natural gas sales for Q2 2026 were $222.2 million, up 91% year-over-year.

• Adjusted funds from operations reached $108.7 million, a 76% increase year-over-year.

• Basic EPS for Q2 2026 was $0.22, up 38% from Q2 2025.

• Net debt at June 30, 2026 was $242.1 million, equating to 0.6x forecasted 2026 adjusted funds from operations.

• Capital expenditures for Q2 2026 were $137.9 million, up 52% year-over-year.

Outlook and guidance

• 2026 production forecast remains 50,000–52,000 BOE/d, unchanged despite planned and unplanned facility downtime.

• Adjusted funds from operations for 2026 forecasted at $410 million, up 3% from prior guidance.

• Year-end 2026 net debt expected at $153 million, or 0.4x forecasted adjusted funds from operations.

• Capital expenditure budget for 2026 remains $375 million, with potential for increase if strong performance continues.

• Commodity price assumptions for 2026: WTI $79.50/bbl, AECO $1.75/GJ.