Seplat Energy (SEPL) CMD 2025 summary

Strategic Vision and Growth Plans

• Targeting production growth to over 200,000 boe/d by 2030, with a JV target of 500,000 boe/d, representing a 50% uplift from current levels.

• Acquisition of MPNU has transformed the company into a larger, more diversified energy player, supporting strong production growth and operational efficiencies into the next decade.

• Portfolio diversification includes 11 blocks, 5 gas plants, 3 export terminals, and 48 producing fields, with 75% of reserves now offshore.

• Major focus on ramping up gas production, aiming to double JV gas output to 1 bcf/d by 2030, leveraging both onshore and newly acquired offshore assets.

• Decarbonization agenda includes ending routine flaring onshore by 2024 and reducing offshore emissions by 50% by 2030.

Financial Guidance and Capital Allocation

• Projected after-tax operating cash flow of $5–$6 billion over five years, nearly tripling the previous period.

• New dividend policy guarantees a minimum $120 million per year ($0.20/share), with payouts set at 40–50% of free cash flow, targeting $1 billion in dividends over five years.

• Capital expenditure will rise from $0.9 billion (2020–2024) to $2.5–$3 billion (2026–2030), with 120–150 wells planned over five years.

• Conservative leverage maintained, with net debt/EBITDA expected to remain between 0.5–1.5x, and strong liquidity supported by recent credit rating upgrades.

• Surplus cash will be used for balance sheet strength, potential buybacks, further CapEx, and inorganic growth opportunities.

Operational Execution and Resource Base

• Acquisition of MPNU has tripled contingent resources and significantly increased reserves, with 2.3 billion boe (2P+2C) now reported.

• Idle well restoration and infield drilling programs are underway, targeting 60+ wells per year, with rapid production gains already realized.

• Enhanced infrastructure resilience has reduced export losses to below 5% since late 2022, improving reliability and cash flow.

• Gas business expansion includes ANOH Gas Processing Plant commissioning, increased LNG exports, and new LPG/CNG offerings for domestic and export markets.

• Offshore CPR update increased 2P reserves by 40% and 2C resources by 377% vs. prior estimates.