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Day, welcome to Kolibri Global Energy's first quarter 2026 financials conference call. All participants will be in a listen-only mode. Media may monitor this call in a listen-only mode. They are free to quote any member of management, are asked to not quote remarks from any other participant without that participant's permission. If anyone has any trouble and needs assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I advise participants that this conference is being recorded today, May 14th, 2026. This call will be available on the company's website at www.kolibrienergy.com. Here is a disclaimer.

This call may include forward-looking information regarding Kolibri's strategic plans, anticipated production, capital expenditures, exit rates and cash flows, reserves and other estimates and forecasts. Actual results will vary from the forward-looking statements. This call may include future-oriented financial information and financial outlook information, which Kolibri discloses in order to provide readers with a more complete perspective on Kolibri's potential future operations, and such information may not be appropriate for other purposes. For a description of the assumptions on which such forward-looking information is based and the applicable risks and uncertainties, and Kolibri's policy for updating such statements, we direct you to Kolibri's most recent annual information form and management's discussion and analysis for the period under discussion, as well as Kolibri's most recent corporate presentation, all of which are available on Kolibri's website.

Listeners should not place undue reliance on forward-looking information. Kolibri undertakes no obligation to update any forward-looking, future-oriented financial or financial outlook information other than as required by applicable law. I would now like to turn the conference over to Mr. Wolf Regener, the President and CEO of Kolibri Global Energy Inc. Please go ahead, sir.

Hi. Thank you for the introduction, thank you everyone for joining us today. With me on today's call is Gary Johnson, our Chief Financial Officer. As I'm sure you're all aware, we released our first quarter 2026 results this morning, and we're very pleased with our quarterly results. Our first quarter resulted in the highest quarterly production, net revenue and EBITDA in the history of the company. This was achieved even though only March had the impact of the oil price increase. Our production in the first quarter of 4,685 BOE per day is up from the fourth quarter 2025 production of 4,493 barrels per day.

Keep in mind that using our 2025 annual production, that calculates us to having a 35% compound annual production growth rate over the last three years. The timing of this oil price increase is fantastic for us. We're looking to further increase our production this year as our drilling program for drilling the Clifton Mac wells is already underway. With that, I'll turn it over to Gary to discuss our financial results.

Thanks, Wolf, thanks to everyone for joining the call. I'm just going to go over a few highlights of the first quarter results, and then we can take questions at the end of the call. All amounts are in US dollars unless otherwise stated. As you can see from the earnings release today, we had an excellent quarter with our highest recorded quarterly revenue and adjusted EBITDA and a strong increase in production. Net revenue increased by 20% to $19.6 million, compared to $16.4 million in the prior quarter due to the higher production. Average production was up 15% to 4,685 BOE per day, compared to 4,077 BOE per day in the prior quarter. The increase was due to the wells that were drilled during 2025.

Adjusted EBITDA was $14.8 million, compared to $12.8 million in the prior quarter, which was an increase of 16%, mainly due to higher revenues. Our net income was $4 million or $0.11 per basic share, compared to $5.8 million or $0.16 per basic share in the same period of 2025. That decrease was due to a large non-cash mark-to-market unrealized loss on commodity contracts of $2.9 million. That was due to the significant increase in oil prices in March of 2026. Operating expense was $8 per BOE for the quarter, compared to $7.07 per BOE in the prior year first quarter, which was an increase of 13%.

The increase was due to workover costs on a non-operated well, reassessed, natural gas and NGL prior year gathering and processing fees, and higher water hauling costs compared to the prior year first quarter. Our netback from operations increased 2% to $38.41 per BOE, compared to $37.55 per BOE in the prior quarter. Netback including commodity contracts for the first quarter was $37.72 per BOE, compared to $37.55 per BOE in the first quarter of 2025. The increases were due to higher average prices. As you may have seen earlier this week, we announced that our credit facility was redetermined and the borrowing capacity was increased from $65 million-$75 million. Even though our borrowing capacity has increased, we have been paying down on our credit facility.

Our net debt at the end of the first quarter was $45 million, which was down from $46 million at the end of the year. Subsequent to the end of the quarter, we made a debt pay down of $4 million, and we plan to make an additional $4 million net pay down later in May. With that, I'll hand it back to Wolf.

Thanks, Gary. As Gary laid out, we had a very good quarter with us hitting our highest quarterly revenue and adjusted EBITDA in the company's history. Even though the average oil prices were only $70.31 per barrel, it's nice being able to say only $71 right now, given where current prices are. The company is in solid financial shape, paying down some of our debt from drilling the wells at the end of last year, and we're looking to continue that success we've had over the last few years. I must say that the timing of the oil price increase right now is really great, and it's benefiting our cash flow. Overall, our plan is to continue to execute and build and grow company value for all shareholders. We're looking to continue buying back shares and drilling more wells.

We'll also continue to get the word out about the company to shareholders and potential shareholders. For instance, Gary and I will be attending and having one-on-one meetings at the Louisiana Energy Conference, which is from May 26th to the 28th. I will be on a panel at that conference on the 27th. In addition, we'll also be presenting at the Latham Virtual Spring Conference on May 28th. With that concludes the formal part of our presentation, and we'd be happy to answer any questions that you now may have.

We will now begin a Q&A session. To ask a question you may press star and then one on your touchtone phone. If you are using a speakphone please pick up your handset before pressing any keys. If your question hasn't been addressed and you would like to withdraw your question, please press star and then two. At this time we will pause momentarily to sample the questions. The first question today comes from Steve Ferazani with Sidoti. Please go ahead.

Afternoon, Wolf. Gary, obviously strong production quarter, seeing the benefit of those 2025 wells. You know, Wolf, even since you guided, the Iran conflict seems to be now prolonged. Maybe we get an end shorter term than that longer, but the damage to global production is clear. We see a pretty healthy strip. Obviously, that's gonna be a positive impact to your cash flow as we move through this year. How are you thinking now about capital allocation? You've laid out this three well drilling program. How are you thinking about cash usage as we move through this year? Has it changed?

Thank you, Steve. Good to hear from you. We did just have our AGM and where we have three new board members that came on board, and so we've had a good meeting with them, and we're gonna come up with some proposals and options that we're gonna present to the board here in the coming weeks in order to determine what we do with all this extra cash flow, drilling some more wells, paying down more debt or buying back shares. We'll have some clarity here in the future, and hopefully we'll put out a different forecast in the future with what's going on now. I agree with you, prices are hopefully staying elevated. The back end of the curve has come up a bit. It's not as high as really where I think it should be still.

Yeah.

It does give some guidance, and I'm on the same page with you as far as I think oil prices are staying up longer, the damage has been done, and that the market hasn't really taken that into account yet, on a forward curve basis yet.

All right. Can you give an update on the three well drilling program? Where are you in the drilling process? What's your thoughts on timing on completions and?

Just drilling and then, you know, third quarter, like we put in the press release, that we'll be, you know, hopefully bringing those wells on at that point in time when we get closer. I try to stay away from that because there's some fluctuations when you get exact weeks of having completions equipment out there and things like that. I'd rather be a little vague, no offense, in order to not have anything wrong.

Got it. The higher OpEx this quarter sounds like it was primarily one-timers. Are you starting to see any inflationary pressures?

No, not yet. Not yet, not on the operating side of things. That shouldn't really change. Most of our costs are pretty locked in. Like you said, it's that was out of our control, out of our hands, non-op rework and stuff like that. Then a little bit on the water handling things. It's just from our fracture stimulations that we did last year for the offset wells. That a little higher water handling costs, which will should start coming down again too for the future quarters.

Just to give more color on that. Yeah.

The March cost was the one water hauling cost, the March cost was half of January, so it really was front loaded to the beginning of the quarter, so it should keep coming down. Just giving more color.

Got it. That's helpful. Realized prices came in a little bit better than we were modeling. Wolf, looks like the differentials were narrower. Any color you can provide around that?

No, not really. I mean, our differential still should be around $1.85. It doesn't really fluctuate much per contract itself. It's just a matter of where pricing was and what they must be the fluctuations in mid-month type of thing of, what took care of that, so.

Got it. That's what I got. Thanks, Wolf. Thanks, Gary.

All right. Thank you, Steve.

The next question comes from Poe Fratt with Alliance Global Partners. Please go ahead.

Hi, good morning, Wolf. Can you just give me an idea of sort of how the March production looked versus the January production or maybe a run rate for April? You know, looking at sort of how the wells that came on at the end of last year are doing so far.

You know, we haven't put that out publicly, so I can't really say that on this call either. I mean, they're just going through the natural declines like our like normal shale wells do, and like they do as well. Our wells do as well. The wells overall are performing as expected, I can say. Everything's matching what we have forecasted for the year as well. We're comfortable with our forecast that we've put together for the year, based on just drilling those three wells at a lower percentage rate.

By the way, if you noticed that our percentage rate on those wells was, I think we said 67% or something like that, and when we first announced them, and we're up to, in the 1980s now on, working interest in those wells.

Great. Then what will the working interest be on the next wells that you drill?

You mean these three that we're drilling, you mean?

Yeah.

Right now they're about 88% now.

Okay, great. If you could, I scanned your 10-Q, and I didn't see any subsequent event discussing hedging. Have you done any hedging since the end of the first quarter? Would you discuss, sort of given your posture, your comments earlier on prices, are you going to, you know, wait to hedge a little bit more or sort of what's your strategy on the hedging front?

The hedging, I mean, I'll give you kind of my overall thoughts on hedging in general, or what it's always been is like, you know, if you can hedge in, you know, $90-$100 longer term, you should probably do that for a portion of your production. Like I said, the back end of the curve really hasn't come up. It's come up, but not as much as I would like to see it come up. I think we're gonna be in for a bit stronger till then. Gary, I think we put all of our hedges in by March thirty-first, right?

Yeah. We didn't have anything subsequent to March 31st because we met the bank requirements by the end of March.

As soon as the prices spiked up, we added some hedges right away. We were a little patient on some of them by adding some more longer term. It was all done before the end of the first quarter.

Yeah. It seems like you're using more collars than you are swaps, at least, you know, beyond this second quarter. Okay.

That's correct. We also have some deferred puts in there as well. You know, as we go out farther just to protect them.

Yeah. No, I'm just looking at page.

Not having any ceiling.

Yeah, I'm looking at page six on the, on the queue. Great.

Got it.

Thanks for your time.

Absolutely. Thanks for the questions.

Thank you.

The next question comes from Leigh Curry with Curry Partners. Please go ahead.

Thank you. Congratulations, Wolf, on your continued progress here with the company. Very eager to see how things go with your new board members when that gradually shakes out. The question I have today is how and when or if does this dramatic decline in oil inventories here in the U.S. affect you? Is all of your oil sold on the spot market? Is any of it contracted on a longer-term basis? Are there any takeaway concerns? I know Exxon is in charge of that, but are there any kinda concerns or problems that the lower inventories and maybe even some rationing, you know, of distillate that may not be too far away here in the U.S.? Any impact on you?

It'll just be extremely along the lines of just what the price is of WTI for us for on the oil side of things.

All right.

WTI is up, we're making more money. We do have some hedges in place that we just talked about. It was about 50% of what our projected production is not including the new wells. Whatever our projected production was here a few months ago. We have about 50% of that hedged. Some of that, you know, as we were talking about before with costless collars, we can capture some of that upside that was above where the prices were at the time. The rest of it is all free floating still. We will definitely take advantage or have the advantage of, I should say, because not anything we're doing of having the higher prices affect our bottom line.

We had said for every $5 increase on our forecast, I think it was adding about $2.8 million, if I'm correct, Gary.

Yeah, that's correct. That's net of the hedges we have in place.

Yeah. To our EBITDA for the year. As far as takeaway, no, there's no issues. We actually handle our own oil takeaways, but gas and NGLs are handled through Exxon.

Oh, all right. Thank you very much, and I look forward to hearing the details of y'all's presentation that you work with the new board. Again, congratulations, Wolf.

Thank you very much. Appreciate your calling in. Good to hear from you.

As a reminder if you would like to ask a question please press star then one to join the question queue. The next question comes from Richard Dearnley with Longport Partners. Please go ahead.

Good morning. Sorry, I got a cold, so I'm a little croaky.

Not a problem at all.

I realize the board is new, very new.

Yep.

Are the initial indications that you will complete these three wells differently than you would have planned them before the board arrived?

We are doing our completion designs right now. New ideas are definitely being taken into account, and those are being attributed to that. We will potentially do some tweaks to our completion designs on those wells.

Would you characterize the design changes as substantial or minimal or in the middle?

You know, that'll be the end result as far as how they perform.

Oh. Well.

So sometimes-

That's the truth.

Sometimes a small tweak could make a big difference. Sometimes a larger tweak doesn't make that much of a difference. The truth will be in the pudding, so to speak. We're hoping that some of these tweaks do make a substantial difference.

Right.

We'll see.

When should you finish drilling?

Generally, I mean, we budgeted about 20 days per each well, you know, between moves and everything else that happens. It's about two months worth of drilling and then, you know, waiting for the rig out of the way, getting everything cleaned up, and getting ready for the frack crews. In general.

Right

It's about three months from start to finish.

Okay. Thank you.

Thank you.

This concludes our Q&A session. I would like to turn the conference back over for any closing remarks.

Thank you very much, and thank you everyone for joining, listening, and all the questions. Hope everyone has a great rest of your day, and we thank everyone for your support in the company.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good day, welcome to the Kolibri Global Energy's Q4 2025 financials conference call. All participants will be in a listen-only mode. Media may monitor this call in a listen-only mode. They are free to quote any member of management, but are asked to not quote remarks from any other participant without that participant's permission. If anyone has trouble and needs assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I advise participants that this conference is being recorded today, March 19th 2026. This call will be available on the company's website at www.kolibrienergy.com. Here is a disclaimer.

This call may include forward-looking information regarding Kolibri's strategic plans, anticipated production, capital expenditures, exit rates and cash flow, reserves and other estimates and forecasts. Forward-looking information is subject to risks and uncertainties, and actual results will vary from the forward-looking statements. This call may include forward, future-oriented financial information and financial outlook information, which Kolibri discloses in order to provide readers with a more complete perspective on Kolibri's potential future operations, and such information may not be appropriate for other purposes. For a description of the assumptions on which such forward-looking information is based and the applicable risks and uncertainties and Kolibri's policy for updating such statements, we direct you to Kolibri's most recent annual information form and management's discussion and analysis for the period under discussion. As well as Kolibri's most recent corporate presentation, all of which are available on Kolibri's website.

Listeners should not place undue reliance on forward-looking information. Kolibri undertakes no obligation to update any forward-looking, future-oriented financial or financial outlook information other than as required by applicable law. I would now like to turn the call over to Mr. Wolf Regener, the President and CEO of Kolibri Global Energy Inc. Please go ahead, sir.

Hi. Thank you, Dave, and thank you everyone for joining us today. With me on today's call is Gary Johnson, our Chief Financial Officer. As I'm sure you're all aware, we released our Q4 2025 results this morning and had released our reserve report two days ago. We're very pleased with what we achieved this last year, which continues to build on our last few years and results in multiple ways. Production from the field has been going well, with our production over 4,000 BOE a day, which is up 15% over 2024. This production rate calculates us to having a 35% compound annual production growth rate over the last three years, which is great.

Our operating expenses remain low with just over $7.33 a BOE, which is even lower than last year's $7.44 per BOE. Our drilling program last year resulted in our approved developed producing reserves increasing by 30%. Even though the oil price used by our reserve evaluators in Netherland, Sewell is down substantially this year, our net present value is up 10%. The example of how significant the drop is, the first year's price used in the evaluation is down 18% to $58 a barrel. This is obviously way out of line with the current oil prices that have been averaging in the 90s right now. Things are going well for us. With that, I will turn the call over to Gary to discuss our financial results.

Thanks, Wolf, and thanks everyone for joining the call. I'm just gonna go over a few highlights of our annual results for 2025, and then we can take questions at the end of the call. All amounts are in U.S. dollars, unless otherwise stated. As we mentioned in our earnings release this morning, we reported a 15% increase in our production to 4,013 BOE per day in 2025. The increase was due to the new wells we drilled that completed during 2025, including four at the end of the year, which increased our December production to over 5,600 BOE per day. The production and cash flow impact of the last four wells will primarily be reflected in our 2026 results.

Our net revenue for 2025 was $56.9 million, which was a decrease of 3% compared to the prior year. Prices declined by 60% in 2025, which more than offset the increase in production. Adjusted EBITDA decreased 4% to $42.1 million compared to $44 million last year due to the decrease in revenue. Net income was $15.5 million and basic EPS was $0.44 per share in 2025 compared to $18.1 million with basic EPS of $0.51 per share in 2024. The decrease was due to the lower revenue and higher operating expenses due to the production increase. Our operating expense per BOE was $7.33 for 2025 compared to $7.44 per BOE in 2024, a decrease of 1%.

Our netback from operations decreased to $31.49 per BOE compared to $38.54 per BOE in the prior year, a decrease of 18% due to the lower prices. Net debt at the end of 2025 was $46 million. We plan to pay down on this debt level in the first half of the year as we achieve higher production from the wells drilled at the end of the year. We also benefit from the recently elevated oil prices. Then the last item I wanted to mention was our share buyback program. We have purchased almost 650,000 shares since we started buying back shares for a total of $3.2 million. We will continue to repurchase additional shares to enhance shareholder value as our working capital and credit facility allows. With that, I'll hand it back to Wolf.

Thanks, Gary. As Gary laid out, we had a good year. Well, oil prices were obviously challenging, and were lower this last year than previous years, but we still performed well. Company is in solid financial shape, and we announced our intention to start drilling additional wells in the coming months. We're looking to continue the success we've had over the last years, that 35% compound annual growth rate for our production over the last three years has been great. The wells we brought on production late in the Q4, as Gary indicated, are really having the biggest impact in 2026. The timing of the oil price increase right now is really benefiting our cash flow. Overall, our plan is to continue to execute and build and grow company value for all shareholders.

As Gary said, continue to buy back shares and we'll drill more wells. We'll continue to get the word out about the company to shareholders and potential shareholders, including, we'll be attending the ROTH Conference next week, and we're doing a fireside chat at the Lithium Summit on April 1st as well. We'll continue to do other things throughout the year. This concludes the formal part of our presentation. We'll be pleased to answer any questions you now may have.

We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. Our first question comes from Steve Ferazani with Sidoti. Please go ahead.

Good afternoon, Wolf. Afternoon, Gary. I appreciate the color on the call this afternoon.

Hi, Steve.

Wolf, how are you, how are you thinking about, obviously a lot has changed in terms of the price environment over the last three weeks or so. How are you now thinking about the drilling program for this year as opposed to maybe how you were thinking about it pre-conflict or even what you were talking about late last year? I'm assuming that the thought is maybe to drill more wells this year than maybe previously thought.

Yeah. Cautiously optimistic is what I'll say.

Okay. Fair.

I don't know if the industry believes that these prices are staying up. We don't, you know, it's, we'll see how this all unfolds. As for most people, this is quite unexpected. We did take advantage of that a bit. We did a bit more hedging at the higher prices, so that helps too. As we are going forward right now, we're just planning on seeing how everything unfolds. I mentioned that we'll start drilling some wells here over the next coming months, and once we have firm dates on that, we'll announce that as well. We're building multiple locations out here, so that's always a longer lead time. This way we can quickly move if we decide to extend the drilling program, drill more wells. Like I said, we're cautious in everything we do in general, and so it's probably different this year. I do think prices are going to stay higher than they were before, no matter what happens, even if this ended tomorrow.

I mean, we know what the strip is to the end of the year, right? Your balance sheet enables you to pivot pretty quickly if you did want to ramp up a little bit, right?

Right. Exactly. That's why we're doing the long lead items, making sure we have everything in place so we could quickly do things. That's the big advantage we have, being the size we have, right? We can-

Right.

Start and stop much faster than some of the bigger guys that are more rigid in their financial structure, where we have a small board where we can quickly make changes to what we have proposed for the year.

Got it. In terms of, I know it changes when availability of crews, but it sounded like you indicated in the release June would be when you might start this year's drilling programs. Is that fair right now? Would mean production probably early to mid-Q3. Is that sort of the target?

Yeah, I mean, hopefully. We'll see how things go. Hopefully, we can get started a little sooner than that. Yeah, I'd like to keep the June out there until we have everything firmed up.

Yeah.

I'd rather underpromise.

Yeah. Understood. Things change fast, right?

Yeah.

A couple of numbers surprised me in the quarter. The realized natural gas price. I know that moves quarter-to-quarter. Again, the differential can move. Seems a little bit lower than I would have expected.

Yeah. That's really hard for us as well because-

Yeah.

We sell all of our gas and our wet gas, which is our gas and natural gas liquids, and Exxon handles that. Where that goes and as far as how much gas is pulled out versus how much NGLs and things like that are all on their hands. We're always assuming that we get the best price that is available because they're doing the same thing for their own account.

Yep.

It does fluctuate, and it's hard for us to forecast that, as it is for you, unfortunately.

I understand.

Luckily, it's not a big part of our stream, thank goodness.

Right. Absolutely. The higher production operating expense, I think you noted the Q4.

Yes.

The workover [crosstalk]. That should be one-time engagement, right? Okay.

Correct [crosstalk].

Okay.

That's exactly right. For the year, you know, we were still looking great, and we do have-

Oh, yeah.

Budgeted, you know, reworks throughout the year. It just depends on when they come in, and if it's multiple in a quarter, then our wells are really low maintenance. We're lucky on that.

Right.

They do need maintenance from time to time.

Understood. In terms of, you noted a lot of the there were oil-rich wells you brought online, mostly.

Mm-hmm.

In the second half of 2025. You'd previously noted the much slower decline rates. Is that playing out over the last few months?

Yeah. I mean, we haven't seen a change. We're happy with how those wells performing. I think, Netherland, Sewell over the years has been increasing what our decline rates or decreasing the decline rates-

Right.

I should say over the years. On the newer wells, they usually hit those a little bit harder, and then in the following years, they kinda bring it up a little bit because they do perform well. We expect the same thing out of wells we drilled last year.

Got it. Last one for me. You may choose not to answer, but given that it's March 19th, can you give any sense of what 1Q production might look like?

Yeah. No, we haven't put it out there, so I can't really.

Okay.

Speak to that on this call, unfortunately. Yeah.

I understand. Thanks so much, Wolf. Thanks, Gary.

Oh, absolutely.

The next question comes from Poe Fratt with Alliance Global Partners. Please go ahead.

Hi. Good morning, Wolf. Can you

Hi, Poe.

Can you give me at least a ballpark on your CapEx, you know, for 2026?

You know, we haven't put anything out there, so I have to be careful. What I've said in the past is kind of my goal, and speaking just for myself, not from our board-approved or anything else, is to keep the production flat to growing a little bit in general. That shouldn't take more than three wells or so. That's kind of as close as I can get, from my own opinion, as far as what we should do for the year. Now that oil prices are higher, we'll probably be higher than that. You know, if we add more wells, it adds a lot. Our wells are, you know, in the roughly $7 million range each. It just depends on how many we end up drilling for the year, so. Once we have that pinned down, we'll put that out precisely. Our CapEx, you know, will be lower this year than it was last year by a long shot, unless we really accelerate what we're doing out there.

Yeah. I guess closer to 2024, the full year CapEx for 2024, maybe even lower than that.

Yeah. I mean, yeah. As we talked about earlier, it's like with we were going into this kinda talking about what we were doing with oil prices being a lot lower than they are. With that lower oil price number in mind, you know, I think from my point of view, I think it'll end up being reasonable to drill, you know, three wells or so at least. That's in the low 20s. Then if oil prices stay higher, I anticipate that, you know, we would recommend and the board would agree that we should drill some more wells. That would increase the CapEx quite a bit.

That's helpful. I apologize, I couldn't find any info on your hedging program. Can you just summarize, you know, your hedging program for, you know, the Q1 and then the full year?

Gary, do you wanna take that? You probably have that in front of you.

Yeah. Well, the Q1, we didn't really hedge much recently 'cause it was already in March when the prices went up. For the Q1, we have costless collars in place. We're about 16,000 barrels of oil per day. The costless collar range is $58.50-$77.25. But we have hedged in April, we have a fixed price swap at $94 for 16,000 BOE per day. And then we've also hedged, like, next May and June as well in the 80s. We've basically done as much hedging as we're allowed to do on our credit facility right now for the Q2.

Yeah. Those hedges were about 500 barrels a day, wasn't it, roughly?

Yeah.

Just in rough numbers. Yeah.

Yeah, rough numbers. Yeah.

We have a substantial amount of our production that's not hedged. I'd say over 50% that's free floating still.

Is the second half production pretty much open right now?

No, we still have hedges there.

Yes.

We still have some old hedges from the costless collars, right? We added some other costless collars. Go ahead, Gary.

Yeah. We put in some more costless collars for the second half of the year. We have about half of these were entered into obviously before the price uptick. $50.25 is the low and $66.75 is the high. We just did new ones where the low is $61.50 and the high is $91. Those are our costless collars, and those take place across the rest of the year.

Right. That's 50% roughly of our current PDP. Anything new that we drill.

Yeah.

Is completely unhedged.

Correct.

Okay. Great. Then when you look at your cost structure, you know, for 2026, any changes that you could highlight? I'm wondering about the royalty per barrel. Looked like it was, you know, pretty low in the Q4. Is that just because of the prices or just can you help me understand how that might move in 2026?

The royalty percentage changes a little bit depending on where the majority of our production coming from, because each square mile out here has a different royalty structure. In general, you know, we're averaging 22-ish% burdens on everything. Then the dollar amount would float up and down with pricing.

Yes. That's all [crosstalk].

Because it is a percentage.

Yeah.

Because it is a percentage. Right. So.

Great. Thank you so much.

Absolutely. Thanks for the questions. Good talking to you.

This concludes our question and answer session. I would like to turn the conference back over to Wolf Regener for any closing remarks.

I just wanted to say thank you, everyone, for participating and those of you that will hopefully listen to this later as well. We're looking forward to having a really good 2026 year, and I think we're off to a really good start between our production levels and the pricing, which is helping out. Thank you everyone very much. Have a great day.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.