Canacol Energy Ltd
TSX:CNE
Canacol Energy Ltd
Canacol Energy Ltd. engages in the exploration and development of petroleum and natural gas. The company is headquartered in Calgary, Alberta and currently employs 406 full-time employees. The firm is primarily engaged in natural gas exploration and development activities in Colombia. Its production primarily consists of natural gas from the Nelson, Palmer and Nispero fields in the Esperanza block, the Clarinete and Pandereta fields in the VIM-5 block and the Toronja, Arandala and Breva fields in the VIM-21 block, located in the Lower Magdalena Basin in Colombia. The Company’s production also includes crude oil from its Rancho Hermoso property in Colombia (Colombia oil). The firm either sells its natural gas at its Jobo gas plant gate or delivers its natural gas to the off-takers’ locations.
Canacol Energy Ltd. engages in the exploration and development of petroleum and natural gas. The company is headquartered in Calgary, Alberta and currently employs 406 full-time employees. The firm is primarily engaged in natural gas exploration and development activities in Colombia. Its production primarily consists of natural gas from the Nelson, Palmer and Nispero fields in the Esperanza block, the Clarinete and Pandereta fields in the VIM-5 block and the Toronja, Arandala and Breva fields in the VIM-21 block, located in the Lower Magdalena Basin in Colombia. The Company’s production also includes crude oil from its Rancho Hermoso property in Colombia (Colombia oil). The firm either sells its natural gas at its Jobo gas plant gate or delivers its natural gas to the off-takers’ locations.
Profit & Margins: Canacol posted another profitable quarter with strong operating margins of about 75% and net income of $13.9 million, marking a sharp turnaround from a loss last year.
Production Impacted: Quarterly average production was lower than Q1 due to delays in bringing new wells online, mainly from local unrest affecting drilling sites.
Financial Metrics: Revenue was $76.2 million with robust EBITDAX of $47.4 million and adjusted funds from operations of $36.9 million, though several metrics softened versus prior quarters.
Capital Spending: Capital expenditures were $57 million in Q2, with annual CapEx expected to reach the upper end of guidance at $160 million, front-loaded in the year.
Loan Repayment Triggered: Lower sales volumes triggered accelerated amortization of a $50 million loan, now scheduled for six monthly payments starting in September unless a waiver is obtained.
Drilling & Exploration: Multiple successful wells were drilled; several are now online, and a high-impact Valiente-1 exploration well is planned for Q4.
Bolivia Expansion: Progress continues towards entry into Bolivia in 2026, pending contract ratification and environmental permits.
