Canacol Energy Q2 revenue drops 27% as sales volume declines

Canacol Energy (Alberta)

07/08/2025 23:13

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/Miss
Actual
Consensus Estimate
Q2 Net Income
$13.86 mln
Q2 Adjusted EBITDAX
$47.35 mln
Q2 Adjusted FFO
$36.86 mln
Q2 Cash Capex
$57.05 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) 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: ID:nGNX8fZKhd

(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.)