Genel Energy (GENL) investor relations material

Executive summary

• Strategic focus on geographic diversification and asset acquisition, highlighted by the proposed all-cash acquisition of Capricorn Energy, which will expand operations into Egypt and is expected to double production and reserves, pending shareholder approval.

• H1 2026 performance was significantly impacted by a near four-month suspension of Tawke production in Kurdistan due to regional hostilities, with production resuming late in the period.

• Maintained a resilient, cash-generative platform with disciplined capital allocation and a strong balance sheet.

• Continued progress in Oman (Block 54) and Somaliland (SL10B13), with drilling and exploration advancing and targeted for 2027.

Financial highlights

• H1 2026 working interest production averaged 6,600 barrels per day, one-third of the expected 20,000 barrels due to the suspension; gross production was 26,400 barrels per day.

• Revenue for H1 2026 was $13.4 million, down from $35.8 million in H1 2025, reflecting lower production and sales.

• EBITDAX was negative $4.2 million (H1 2025: $25.3 million); operating loss was $15.3 million (H1 2025: $2.5 million loss).

• Free cash outflow for H1 2026 was $25.4 million; closing cash at period end was $199 million, net cash $108 million.

• Cash at end of July increased to $240 million after a $35 million bond tap, raising total bond debt to $127 million.

Outlook and guidance

• Completion of the Capricorn acquisition is the near-term priority, expected to double production and reserves and deliver significant near-term cash generation.

• Focus on maximizing cash generation, disciplined investment in new cash flows, and establishing a regular dividend.

• Up to $15 million will be invested in pre-production assets in 2026, with continued focus on Oman and Somaliland exploration and drilling targeted for 2027.

• Free cash flow from domestic sales at current levels is expected to cover organizational costs, with potential upside if exports and international pricing resume.