Meren Energy (MER) investor relations material

Executive summary

• Achieved robust operational and financial results in Q1 2026, with Nigerian assets outperforming expectations, production on track, and successful refinancing of the reserves-based lending facility, enhancing financial flexibility.

• Declared two quarterly dividends totaling just over $50 million year-to-date, continuing the shareholder returns program.

• Benefited from global oil market disruptions, positioning West Africa as a key alternative supply region.

• Well-positioned for growth and returns through market cycles, supported by a robust balance sheet and liquidity.

Financial highlights

• Q1 2026 EBITDA/EBITDAX reached $100.2 million, with cash flow from operations before working capital at $79 million and capex at $9 million.

• Free cash flow was negative $36 million, mainly due to underlift, trade receivables build-up, and investments.

• Net debt at quarter-end was $208 million, up from $155 million at year-end, with a net debt to EBITDA/EBITDAX ratio of 0.5x.

• Liquidity headroom stood at $204 million, with cash and RBL headroom totaling $366 million.

• Total revenue was $114 million: $64 million from one oil cargo and $50 million from gas, with $41 million of gas revenue from the amended sales agreement.

Outlook and guidance

• Full-year 2026 production guidance unchanged: working interest production of 23–28 kboepd and entitlement production of 28–33 kboepd.

• Drilling campaigns in Nigeria (Akpo, Egina, Agbami) set to begin late 2026, with first production from new wells expected in 2027.

• Venus project in Namibia targets FID in July 2026 and first oil by 2030; company remains fully carried through to first production.

• 2026 oil liftings expected to total 7-8 cargoes, subject to oil price movements.

• South Africa: Environmental authorization process for Block 3B/4B resumed; first exploration well planned once confirmed.