Meren Energy (MER) Q3 2026 earnings summary

Executive summary

• Q3 production averaged 25,300 boepd working interest and 28,300 boepd entitlement, with FY26 production remaining within revised guidance.

• Net debt was $185.2m, leverage was 0.5x and period-end liquidity was $327.9m.

• A fourth 2026 dividend of $25.1m brought declared 2026 distributions to $100.3m; cumulative distributions since the March 2025 amalgamation were ~$200m.

• Nigerian drilling and interventions are restarting after a planned pause for 4D seismic reinterpretation and well optimization.

Financial highlights

• Q3 EBITDAX was $112.8m, cash flow from operations before working capital and interest was $73.6m, and free cash flow was $59.1m.

• 9M26 EBITDAX was $332.3m and cash flow from operations before working capital and interest was $213.0m, versus $238.5m and $159.9m a year earlier.

• Q3 loss on commodity risk-management contracts was $35.3m, including $13.1m realized; the balance was a non-cash mark-to-market revaluation.

• Two Q3 oil cargoes averaged $92.4/bbl, a $5.5/bbl premium to Dated Brent during the July and August lifting period.

• Q3 net income was $1.3m versus $5.2m a year earlier; 9M net loss was $9.1m versus net income of $59.2m.

Outlook and guidance

• Revised FY26 guidance: working-interest production 25,000–27,000 boepd, entitlement production 29,000–31,000 boepd, EBITDAX $390–440m and cash flow from operations $250–280m.

• FY26 capital investment guidance fell to $70–90m from $100–140m as some drilling shifted to 2027; the full-year Brent assumption rose to ~$98/bbl from ~$86/bbl.

• Akpo Far East drilling was planned for November 2026; a successful result could support first oil in 2027, with the first producer potentially yielding ~10,000 b/d gross.

• Agbami rig arrival is expected in Q1 2027 for three infill wells and Ikija appraisal; the delay reflects the rig's extended work elsewhere.

• Preowei is being optimized ahead of FEED in 2027, with late-2027 FID a target; Egina South appraisal is planned for 2027.