Ithaca Energy raises 2026 dividend guidance after record Q2 production

Ithaca Energy plc (LON:ITH) has announced its unaudited financial results for the six months ended 30 June 2026.

H1 2026 key highlights

·   Record quarterly production achieved in Q2 of 131 kboe/d, strengthening confidence in full year production outlook of 120-130 kboe/d, with management guidance reaffirmed

·   Continued strong operational performance, with improved cost outlook and opex per barrel trending to stronger full year outcome of ~$18/boe at mid-point of guidance

·   Robust cash flow generation supports capital allocation flexibility, underpinning long-term growth with adjusted H1 2026 EBITDAX over $1.1bn

·   Rosebank entering final execution phase with the Operator narrowing the first production window to H1 2027, with ramp up to production plateau through the summer of 2027

·   Material pipeline of organic growth opportunities with over 200 mmboe of resources being actively advanced through to FID corridor in 2026 and 2027

·   Significant available liquidity of $1.9 billion, bolstered by successful private placement of a further €155 million 5.5% senior notes, due 2031, with strong investor demand and low leverage of 0.49x to adjusted EBITDAX

·    Upgraded dividend guidance to $500-530 million for FY 2026, with first interim dividend of $255 million declared today

Executive Chairman, Yaniv Friedman, commented: “Ithaca Energy delivered another strong quarter and first half performance in 2026, demonstrating the strength of our business. Record quarterly production in Q2, continued safe and efficient operations, robust cash generation and disciplined capital allocation have enabled us to reaffirm full year production guidance, reduce operating cost guidance and increase our dividend outlook for the year. We have also continued to execute against our strategy, strengthening our balance sheet, extending our hedge position and advancing a material pipeline of organic growth opportunities across our portfolio. With Rosebank progressing towards first production, Cambo advancing through key development milestones and continued investment in high-return, short-cycle opportunities across our producing assets, we remain focused on maximising long-term value creation and delivering attractive, sustainable returns for our shareholders.”

¹ Non-GAAP measure as set out on pages 39 to 41

² Reflects one-off, non-cash deferred tax charge in Q1 2025 of $327.6 million due to the two-year extension of EPL to 31 March 2030

H1 2026 Strategic and operational highlights

The Group has made material progress in advancing its value-orientated organic and inorganic growth strategy, driving long-term value creation and enhancing returns through disciplined capital allocation and strong strategic execution.

Inorganic growth: M&A as an enabler of the Group’s organic growth strategy

·    M&A activity in H1 has been closely aligned with supporting the Group’s organic growth strategy, helping to unlock material long-term organic growth opportunities across the Group’s development portfolio. Through the completion of the farm-in to the Tobermory discovery and the farm-down of the Fotla discovery, the Group has established commercial partnerships that will facilitate the progression of key projects towards final investment decisions, while strengthening its position in core West of Shetland gas hub

·    The Group continues to maintain an active but patient pursuit of M&A opportunities both in the UKCS and internationally, in line with its focused international expansion strategy

Strong operational momentum throughout H1 2026

·    Maintaining strong HSE record into H1 2026

o  Zero Tier 1 or Tier 2 events

o  Total Recordable Injury Rate (TRIR) of 1.2 cases per million hours and TTM June 2026 TRIR of 1.7 (H1 2025: 1.14), meaningfully below the industry average TRIR of 3.95

o  Gross operated emissions intensity of 16.4 kgCO₂e/boe in H1 2026 (H1 2025: 16.9 kgCO₂e/boe), substantially below the latest basin average of approximately 25 kgCO₂e/boe

·    Record quarterly production performance achieved in Q2 of 131 kboe/d, supporting a robust H1 2026 average production of 128 kboe/d (H1 2025: 124 kboe/d)

·    The Group’s operated assets achieved a record average production efficiency of 90% in Q2, reflecting the operational momentum achieved from the ‘perfect day’ philosophy

·    Production mix comprised 52% liquids and 48% gas, with 40% operated and 60% non‑operated

Delivering value through industry collaboration

·    In May, the Group entered a rig sharing agreement with Harbour Energy, designed to unlock operational synergies through the shared use of the high-performing Paul B. Loyd Junior (PBLJ) drilling rig through to 2030, enabling activity from development wells to execution of well P&A

·    Immediate value creation demonstrated by the PBLJ’s deployment to the Captain field, where a three-month re-drill programme of well B15 is expected to deliver production from Q4

Organic growth: Optimising investment plans to sustain and optimise production

·    The Captain 13^th well campaign remains on track, with the C75 well brought onstream in Q2. Recertification of the platform rig is currently underway, ahead of the planned resumption of well operations towards the end of Q3

·    Cygnus infill drilling campaign continues to progress strongly, with the C13 well outperforming expectations and first production from well C14 expected in November, before moving to the C15 well. Potential to unlock further investment activity in 2027, with the rig expected to move to the Bravo area subject to further wells FID

·    Two well programme sanctioned at Elgin Franklin in H1, scheduled to commence in Q4 with incremental production expected in 2028

Organic growth: Advancing over 200 mmboe of resources to FID corridor in 2026 and 2027, unlocking the Group’s material organic growth opportunities

·    The Rosebank development project continues to progress towards the final stages of execution, with the Operator narrowing the first production window to H1 2027, with ramp-up to production plateau from summer 2027 in line with project delivery expectations, subject to regulatory approval

–      FPSO Rosebank arrived and moored on station in June 2026, in line with the project schedule, with remaining scopes to hook-up and commissioning, on the critical path to first production

–      Following a rig contractor equipment handling incident in April, which resulted in the rig coming off-hire, the rig has returned to service in July and has restarted well activities. The campaign is expected to deliver the minimum well stock to support production ramp-up in 2027

–      Capital spend in 2026 is expected to be lower than previously guided, reflecting the rephasing of drilling activity and associated costs from 2026 into 2027. At the midpoint, this represents a deferral of approximately $35 million

–      As the project enters its final stages of execution with increased certainty on the cost outlook, management expects the total post-tax project capex per project reserves to be less than $4/boe³. With the anticipated addition of a high value 8th well on the drilling campaign reducing the total overall post-tax development cost per boe to less than $3.5/boe, representing attractive project metrics and a cost performance well within the project’s delivery contingency envelope

–      The joint venture partnership continues to anticipate receipt of the required regulatory approvals by the end of 2026, supporting the first oil schedule, enabling well testing activities and optimising the drilling programme to achieve the planned production ramp-up

·    Significant progression towards unlocking material organic growth opportunities in H1, with key projects being actively advanced through to FID corridors in 2026 and 2027, subject to regulatory approval

–      Cambo has now entered the value engineering and pre-execution phase moving the project towards sanction in 2027

–      Fotla continues to progress towards the execution phase in 2026, with critical long-lead items secured, including the installation vessel and PBLJ drilling rig

–      Tornado advancing towards FID, supported by the successful 18-month license extension to March 2028

–      Continued maturation of West of Shetland tie-in opportunities, around Tornado and Tobermory, including Suilven and Spitfire

·    Reviewing potential Transitional Energy Certificate (TEC) targets for Infrastructure-led exploration (ILX) and Production-led exploration (PLX) opportunities around existing infrastructure to build further optionality above the currently licensed 1bn BOE resource potential

Enhanced shareholder returns with increase in dividend guidance for FY 2026

·    First interim 2026 dividend of $255 million declared today and payable in September, representing a dividend per share of $0.1542, and reflecting the Group’s transition to an equal dividend payment schedule with 50% following half year results and 50% following full year results

·    Reaffirming dividend commitment of 30% post-tax CFFO, with an upgraded guidance range of $500-530 million from $470-520 million for FY 2026, reflecting the Group’s strong financial performance, robust cash flow generation and confidence in the outlook for the remainder of the financial year