Kiwetinohk reports first quarter 2025 results, operational momentum and free cash flow generation drives revised annual guidance

Calgary, Alberta – May 7, 2025 – Kiwetinohk Energy Corp. (TSX: KEC) (Kiwetinohk or the Company) today reported its first quarter 2025 results and updated annual guidance. As companion documents to this news release, please review the Company’s management discussion and analysis (MD&A) and condensed consolidated interim financial statements for the first quarter 2025 (available on kiwetinohk.com or www.sedarplus.ca) for additional details.

“In the first quarter, Kiwetinohk delivered strong operational and financial results in our upstream divisions amidst volatility in the global macroeconomic environment. We are on track to achieve our previously outlined 2025 budget objectives of optimizing multi-year growth, unlocking the free funds flow potential of our asset, proving out the quality and extent of our Duvernay and Montney acreage, enhancing operational flexibility, and divesting the power development portfolio,” said Pat Carlson, Chief Executive Officer.

“Record quarterly production of 32,611 boe/d and efficiencies gained on our controllable costs in the first quarter underpinned our inaugural quarter of positive free funds flow1, generating $29.5 million during the quarter. Complementing our upstream success, the power development portfolio contributed $21 million of proceeds from the sale of our Opal gas-fired power project. These outcomes contributed to a stronger balance sheet and positive revisions to our operational guidance.

“In an effort to realize value for our shareholders, Kiwetinohk has engaged National Bank Financial Inc. and RBC Capital Markets to support the Company in completing a business strategy review and evaluating a range of potential value enhancing opportunities. The initiative has been given a broad mandate including the sale of Kiwetinohk or a portion of its assets, a merger with a complementary entity, sourcing further financing to accelerate development of our large inventory of investment opportunities, and other opportunities as may be identified. All potential outcomes will be reviewed in pursuit of maximizing shareholder value. Any alternatives, if pursued, may be executed within the current year or be longer term in nature. In the interim, we intend to continue to profitably grow our upstream business and opportunistically sell or otherwise monetize our power development projects.”

• Kiwetinohk continues to optimize its development program to maximize returns and profitability:
• Continued success in its Simonette Montney delineation program with the 14-29 Montney well coming on-stream with peak 30-day rates outlined above.
• Kiwetinohk drilled the longest single-leg horizontal well in Canadian history at 9,023 meters, reinforcing the Company’s focus on enhancing productivity and maximizing returns through extended-reach drilling. Drilling longer wells is industry’s most proven method of improving productivity and returns.
• Operating netback3 of $43.52/boe drove strong adjusted funds flow from operations2 of $115.9 million and demonstrated the value of the Company’s high-liquid content production and access to historically higher priced Chicago natural gas markets. During the first quarter Kiwetinohk’s market access generated a significant premium to Alberta based AECO benchmark pricing, realizing $5.93/Mcf on its natural gas production.
• Operating costs of $5.20/boe were ahead of plan through continued strength in asset performance, owned and operated infrastructure, and reduced project spending during the quarter. While higher costs are estimated for the remainder of the year, the Company is reducing annual guidance to $6.75 – $7.25/boe.
• Transportation costs of $5.12/boe were ahead of plan, benefiting from a higher than expected 13th month adjustment received on 2024 transportation rates for natural gas liquids. As a result, the Company is reducing annual guidance to $5.75 – $6.00/boe.
• Generated $29.5 million in free cash flow3 on capital expenditures (before acquisitions/dispositions)3 of $86.4 million. Free cash flow supports the capital development program and debt repayments.

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