- As the global energy supply grows more uncertain, the case for investing in oil and gas stocks in conflict-resistant nations is at a generational peak
- A small-cap name increasingly earning its place on investors’ radars is Kolibri Global Energy (TSX:KEI)
- The company’s falling stock price is at odds with its history of profitable production growth
As the global energy supply grows more uncertain, under threat from the war between US-Israel and Iran, and the latter’s ongoing attacks on Western-allied nations across the Gulf Region, the case for investing in oil and gas stocks in conflict-resistant nations is at a generational peak.
A small-cap stock increasingly earning its place on investors’ radars is Kolibri Global Energy (TSX:KEI), market capitalization C$242 million, tracking a US-based oil and gas operation focused on the Tishomingo shale oil field in Oklahoma.
Kolibri hosts proved reserves of 40.8 million barrels of oil equivalent (BOE), valued at US$441 million, more than twice its market cap, offering investors an initial sign of undervaluation.
The company backs up this value thesis with high netback production, including US$31.49 per BOE in 2025, US$38.54 per BOE in 2024 and US$42.97 per BOE in 2023, which has allowed it to build a track record of profitable growth, as detailed in the January 2026 investor deck. Here’s a breakdown:
- Production growth from 1,000 BOE in 2021 to 4,500 BOE in Q4 2025.
- Production and operating expenses of only US$7.33 per BOE in 2025 and US$7.44 per BOE in 2024.
- Net revenue of US$56.9 million in 2025, up from less than US$20 million in 2021.
- Annual general and administrative expenses per BOE falling from US$9.86 in 2016 to US$3.89 in 2025.
- Consistent net income of US$19.2 million in 2023, US$18.1 million in 2024 and US$15.5 million in 2025.
- Adjusted EBITDA of US$39 million in 2023, US$44 million in 2024 and US$42 million in 2025.
With Kolibri focused on drilling more wells at Tishomingo in 2026 funded by internal cash flow, while paying down debt and continuing to buy back shares, the company is keeping its growth path squarely aligned with shareholder value, vying to close the gap between market cap and asset value through disciplined development.
Nevertheless, Kolibri Energy stock (TSX:KEI) has veered away from its underlying company’s financial strength, giving back almost 40 per cent year-over-year, arguably overreacting to Middle East tensions, offering investors an underpriced entry point to diversify their energy portfolios away from the region without compromising on operational quality.
Look for cash flow from four wells that started production in Q4 to improve 2026 financial results and jumpstart investor momentum, which will only be compounded by the efficiencies afforded by higher oil prices.
Management commentary
“We are pleased with the continued production growth of the company in 2025 to 4,013 BOEPD, which was within our guidance. Over the last three years, we have achieved a fantastic 35 per cent compound annual production growth rate. During 2025, we generated US$56.9 million of net revenue and US$42.1 of adjusted EBITDA but they were below our guidance due to fourth quarter oil prices that were 10 per cent below our forecast price as well as delays in new wells coming online due to the drill pipe failure on the Barnes well. The four wells that started production at the end of the year increased our December production to over 5,600 BOE per day. The production and cash flow impact of these wells will now be reflected primarily in our 2026 results. The significant increase in oil prices in March 2026 should further improve our 2026 results,” Wolf Regener, president and chief executive officer of Kolibri Global Energy, said in Thursday’s news release.
“We look forward to continuing our success with our 2026 drilling program, which we are currently finalizing with an expected start date in June. We are preparing multiple pad locations to be able to quickly increase our planned drilling if oil prices remain elevated through 2026, but we expect our capital expenditures to be significantly lower than 2025 levels,” Regener concluded.
About Kolibri Global Energy
Kolibri Global Energy is a North American energy company focused on oil and gas opportunities in the United States.
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