Seplat Energy (SEPL) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational results in FY 2025, driven by the transformational Mobil Producing acquisition, tripling key metrics and expanding the resource base to 2.5 billion boe (2P+2C).

• Working interest production rose 148% year-over-year to 131,500 boe/d, with strong contributions from both onshore and offshore assets.

• Integration of Mobil Producing team completed, with operational and financial synergies realized.

• Significant progress on emissions reduction, asset integrity, and well restoration programs.

• Strengthened balance sheet, improved credit ratings, and increased shareholder returns through higher dividends.

Financial highlights

• Group revenue rose 144% year-over-year to $2.73 billion, despite a 12% drop in oil prices.

• Adjusted EBITDA reached $1.27 billion (47% margin); net income was $159 million, up 13% year-over-year.

• Operating cash flow was $1.17 billion; net debt reduced to $673 million, a 25% reduction.

• Year-end cash balance stood at $332 million after significant CapEx and debt repayment.

• Dividend increased over 50% year-over-year to $0.25 per share, with a special dividend paid in Q4.

Outlook and guidance

• 2026 production guidance: 135,000–155,000 boe/d; CapEx guidance: $360–$440 million, up from $267 million in 2025.

• Focus on strategic maintenance, 17 new wells, and further emissions reduction.

• ANOH gas ramp-up and Oso-BRT phase 1 first gas targeted for 3Q 2026.

• Cash tax guidance for 2026: $400–$450 million, with effective tax rate expected to trend toward 40% over five years.

• Committed to at least $1 billion in dividends over the next five years.