Meren Energy (MER) Q3 2025 earnings summary

Executive summary

• Delivered strong shareholder returns through dividends and share buybacks, with $100.3 million in 2025 distributions and total capital returns of $109 million, supported by substantial deleveraging and a robust balance sheet.

• Completed the Prime amalgamation, consolidating core Nigerian assets and enhancing financial strength and asset quality.

• Achieved average daily working interest production of 31,100 boepd and entitlement production of 35,600 boepd in Q3 2025.

• Maintained significant liquidity with $176.7 million cash and RBL headroom at Q3 2025 end.

• High netback production from offshore assets and funded organic growth opportunities underpin long-term outlook.

Financial highlights

• Q3 2025 EBITDAX reached $120 million; nine-month EBITDAX totaled $400 million.

• Q3 2025 net income was $5.2 million, compared to a loss of $289.2 million in Q3 2024.

• Free cash flow for the first nine months was $228.7 million; Q3 2025 free cash flow was $22 million.

• Realized oil price averaged $70.8/bbl in Q3 2025, above the Dated Brent average.

• Total revenues for Q3 2025 were $216.7 million, with gross profit of $55.7 million.

Outlook and guidance

• 2025 management guidance unchanged: WI production 30.0–33.0 kboepd, entitlement production 34.5–37.5 kboepd.

• EBITDAX guidance for 2025 is $450–500 million; cash flow from operations $260–310 million; capex $100–140 million.

• Anticipates natural production decline in Nigeria through 2026, with infill drilling expected to boost output in 2027.

• Prudent hedging strategy in place for 2025 and 2026 to manage price volatility.

• Board maintains a prudent base annual distribution policy, prioritizing balance sheet strength.