Seplat Energy (SEPL) Q4 2024 earnings summary

Executive summary

• Completed transformational acquisition of MPNU (renamed SEPNU), tripling oil production and doubling reserves year-over-year, with integration progressing smoothly and a motivated workforce.

• 2024 production averaged 52,947 boe/d, up 11% year-over-year, with onshore assets at 48,618 boe/d; reserves increased 85% to 886 MMboe, and organic reserve replacement ratio reached 176%.

• Adjusted EBITDA rose 20% to $539 million, with $440 million from onshore and $100 million from SEPNU in 19 days; revenue exceeded $1.1 billion.

• Dividend increased 10% to $0.165/share, including a special dividend, reflecting strong balance sheet and outlook.

• Board refreshed with new Chairman, CFO, and independent directors to support growth ambitions.

Financial highlights

• Adjusted revenues rose 17% to $1,127 million; reported revenue $1,116 million; adjusted EBITDA margin 48.3%.

• Pre-tax profit nearly doubled to $379.4 million; net income up 17% to $144.8 million.

• Realized oil price averaged $80.04/bbl; gas price $3.06/Mscf, up 6% year-over-year.

• Year-end cash at $470 million; net debt rose to $897.7 million due to acquisition financing.

• Net debt/EBITDA at 0.66x pro forma, maintaining a strong balance sheet.

Outlook and guidance

• 2025 group production guidance: 120,000–140,000 boe/d (75–80% liquids, 20–25% gas); onshore: 48,000–56,000 boe/d; SEPNU: 72,000–84,000 boe/d.

• Capex guidance for 2025: $260–$320 million, with 13 new wells planned and major gas projects advancing.

• Unit opex expected at $14–$15/boe, with reductions anticipated from 2026 as investments shift to capex.

• Focus on ending routine flaring by H2 2025 and progressing ANOH gas plant commissioning.

• Effective tax rate expected to decline in 2025 due to increased investment and PIA conversion efforts.