Meren Energy reported first-half EBITDAX of $219.5 million and cash flow from operations before working capital of $139.4 million.
On the back of that performance, Meren Energy increased the midpoint of its 2026 EBITDAX guidance to $410 million from $315 million. It also raised the midpoint of its cash flow from operations guidance to $247.5 million from $220 million.
Stronger cash flow gives Meren Energy more room to fund drilling, reduce financial risk and continue paying shareholders.
The company declared a third quarterly distribution of $25.1 million for 2026, equal to $0.0371 per share. Total distributions for the year now stand at $75.3 million, while approximately $175 million has been returned to shareholders since the March 2025 amalgamation. The dividend yield has been cited at around 9%, making income a significant part of the investment case.
Meren Energy also carries relatively low debt. Net debt to EBITDAX stood at 0.5 times at the end of the first half, compared with the company’s internal through-the-cycle target of 1.0 times. The company also held $77.7 million in cash and had total liquidity of $319 million.
That balance sheet gives Meren Energy room to invest without taking on excessive financial pressure. The company has also improved its financing position. Its reserve-based lending facility was increased to $600 million, with the potential to expand to $1 billion, while final maturity was extended to March 2032.
Meren Energy’s shares have already risen, but market commentary still considers the company undervalued. That view is based on a simple combination of factors: a dividend yield of around 9%, net debt to EBITDAX of just 0.5 times, higher earnings guidance and a new drilling programme that could support future production.
Meren Energy Inc (MER.TO) is a leading independent, full-cycle E&P with production and development assets in deepwater Nigeria, a leading carried position in the Orange Basin across Namibia and South Africa, and operated licences in Equatorial Guinea.
