Meren Energy has reported revenue of $114 million and EBITDAX of $100 million for the first quarter of 2026, supported by production from its Nigerian assets and improved gas revenue recognition. The update shows a company generating substantial operating earnings while managing working capital pressure and preparing for future drilling activity.
Working interest production averaged 28.4 thousand barrels of oil equivalent per day during the quarter. Production on an economic entitlement basis averaged 31 thousand barrels of oil equivalent per day. Nigerian output was above plan, helped by recovery after planned maintenance on the Agbami field in the fourth quarter of 2025. This places production at the upper end of full-year guidance and gives the company a stronger operating base ahead of planned drilling campaigns in Nigeria from late 2026.
Revenue for the quarter included $64 million from one oil cargo and $50 million from gas revenue. The gas figure included the impact of an amendment to the PML2.3 gas sales agreement, which added a cash payment of almost $14 million and recognised fair value of $27 million relating to historical pricing differences.
Free cash flow was negative $36 million, mainly because of a $106 million working capital outflow. This was driven by a higher underlift position and increased trade receivables linked to gas revenues. To manage liquidity, Meren drew $40 million under its reserves-based lending facility. Net debt rose to $208 million, but leverage remained low at 0.5 times net debt to EBITDAX.
The company also refinanced its reserves-based lending facility, increasing liquidity to $366 million. This gives Meren more room to handle working capital movements, fund near-term activity and assess future development opportunities. The company declared two quarterly dividends totalling more than $50 million, showing a continued commitment to shareholder returns while still preserving balance sheet flexibility.
Meren’s update also underlined its approach to capital allocation. Management said acquisition decisions must meet high internal return hurdles.
Separately, Meren’s subsidiaries Africa Oil Alpha and Africa Oil Beta completed the renovation and furnishing of a unitary school in Mbaha, Bata, in Equatorial Guinea. The project delivered four classrooms, each with capacity for about 30 pupils, an administrative room and a three-bedroom residence for teaching staff. The residence includes a living room, kitchen, bathroom and terrace.
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.
