Ithaca Energy (ITH) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong operational and financial performance, with average production of 126,000 bbl/day (126 kboe/d), a 52% liquids mix, and robust cash flow despite adverse weather early in the quarter.

• 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, reflecting strong cash flow and elevated commodity prices.

• Focus remains on optimizing production, accelerating organic investment, and delivering attractive shareholder returns.

• Maintained a strong safety record with zero Tier 1 or 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 at $67 million and free cash flow of $151 million.

• Operating costs were $18/boe (GBP 18 per barrel), with adjusted net debt reduced to $1.1 billion and available liquidity at $1.6 billion.

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

• EBITDA for the quarter was GBP 0.6 billion; cash from operations GBP 0.4 billion.

• Adjusted net debt/pro forma leverage ratio improved to 0.54x.

Outlook and guidance

• FY 2026 production guidance reaffirmed at 120,000–130,000 bbl/day (120–130 kboe/d).

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

• Net decommissioning cost guidance $170–210 million; cash tax $290–340 million.

• Dividend commitment of 30% post-tax CFFO, trending above $500 million for FY 2026.

• Over 200 million bbl of oil equivalent resources targeted for FID within 24 months.