Ithaca Energy (ITH) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong operational and financial performance, with average production of 126 kboe/d, despite severe weather early in the quarter and a production mix of 52% liquids and 48% gas.

• Strategic progress included rig sharing agreements, farm-ins, and advancement of key development projects such as Rosebank, Cambo, and Greater Tornado Area.

• Dividend guidance for FY 2026 is trending above $500 million/GBP 500 million, reflecting robust cash flow and elevated commodity prices.

• Safety performance remained excellent, with zero Tier 1 and Tier 2 process safety events and no serious injuries or fatalities.

Financial highlights

• Q1 2026 adjusted EBITDAX was $571 million/GBP 0.6 billion, with profit for the period of $67 million and free cash flow of $151 million.

• Operating costs were $18/boe or GBP 18 per barrel, with high netback capability.

• Adjusted net debt reduced to $1.1 billion/GBP 1.1 billion, with available liquidity of $1.6 billion/GBP 1.6 billion and a leverage ratio of 0.54x.

• Q1 2026 oil revenues averaged $91/bbl before hedging and $78/bbl after; gas revenues were 93p/therm before and 90p/therm after hedging.

Outlook and guidance

• FY 2026 production guidance reaffirmed at 120–130 kboe/d.

• Dividend commitment of 30% post-tax CFFO, with FY 2026 payout expected above $500 million.

• Net operating cost guidance for FY 2026 is $820–860 million; producing asset capex $600–700 million; Rosebank capex $280–320 million.

• Over 200 million boe resources targeted for FID within 24 months, advancing a material pipeline of organic growth.