Meren Energy Inc. (MER.TO, OTCQX:MRNFF) has published its financial and operating results for the three and nine months ended September 30, 2025, and is pleased to declare its fourth quarterly distribution of approximately $25 million under its base dividend policy.
Meren Energy President and CEO, Roger Tucker commented: “The completion of the Prime amalgamation marked a step-change for Meren and we have now honored our enhanced dividend policy with $100 million in 2025 distributions. We have also materially reduced our outstanding RBL debt amount to underpin a stronger, more agile company that is built to deliver sustainable returns and withstand market volatility.”
Highlights*
- Declared the fourth 2025 quarterly dividend of approximately $25.1 million, bringing total distributions year-to-date to approximately $100.3 million.
- During Q3 2025:
- achieved average daily W.I. and entitlement production of 31,100 boepd and 35,600 boepd respectively, in line with expectation;
- sold three cargoes (approximately 3 MMbbl) at an average sales price of $70.8/bbl;
- reduced the RBL by $180.0 million, reducing interest expenses and ending Q3 2025 with a debt balance of $360.0 million;
- distributed the third quarterly cash dividend of approximately $25.1 million ($0.0371 per share) in September 2025; and
- end of Q3 2025 cash balance of $176.7 million, resulting in a net debt position of $183.3 million with a Net Debt/ EBITDAX of 0.4x as at September 30, 2025. RBL facility headroom of $192.3 million at the end of Q3 2025;
- During the first nine months of 2025:
- cashflow from operations before working capital adjustment of $243.1 million;
- EBITDAX of $368.0 million; and
- cash capital investments of $80.4 million.
- Post Q3 2025 reduced the RBL by a further $30.0 million taking the total RBL reduction year-to-date to $420.0 million with a remaining outstanding debt balance of $330.0 million.
* All dollar amounts in this press release are U.S. Dollars unless otherwise indicated.
2025 Third Quarter Results Highlights
| Three months ended | Nine months ended | Years ended | ||||
| Meren Highlights | Unit | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | December 31, 2024 |
| Net income/ (loss) | $’m | 5.2 | (289.2) | 59.2 | (285.3) | (279.1) |
| Net income/ (loss) per share – basic | $/ share | 0.01 (2) | (0.65) | 0.10 (2) | (0.63) | (0.62) |
| Net debt position (3) | $’m | 183.3 | 193.2 | 183.3 | 193.2 | 289.1 |
| WI production (3) | boepd | 31,100 | 35,800 | 31,800 | 33,800 | 34,000 |
| Entitlement production (3) | boepd | 35,600 | 41,200 | 36,300 | 38,800 | 38,800 |
| Cash flow from operations (4, 5) | $’m | 65.6 | n/a | 243.1 | n/a | n/a |
| EBITDAX (4) | $’m | 119.8 | n/a | 368.0 | n/a | n/a |
| Capital investments(4) | $’m | 21.8 | n/a | 80.4 | n/a | n/a |
(1) The table includes non-GAAP measures. Definitions and reconciliations to these non-GAAP measures are provided on pages
13-16 of the Report to Shareholders for the period ended September 30, 2025.
(2) Based on the weighted average number of shares outstanding for the three and nine months ended September 30, 2025, of
675,512,565 and 607,202,542 respectively, which accounts for the newly issued shares to BTG Oil & Gas on March 19, 2025.
(3) Net debt position and production numbers as presented for the comparative periods includes 100 percent of Meren Coop to be
comparable with net debt position and production numbers for the three and nine months period ended September 30, 2025.
(4) Highlights are reported for the year 2025 only, on a constructed financial information basis, see pages 10-11 for further
information.
(5) Cash flow from operations before working capital and interest payments.
Outlook
Shareholder Returns
The Company is pleased to announce that its Board has declared the distribution of the Company’s fourth quarterly cash dividend in 2025 of approximately $25.1 million or $0.0371 per share. This dividend will be payable to shareholders of record at the close of business on November 21, 2025.
This dividend qualifies as an ‘eligible dividend’ for Canadian income tax purposes. Dividends for shares traded on the Toronto Stock Exchange (“TSX”) will be paid in Canadian dollars on December 9, 2025; however, all US and foreign shareholders will receive USD funds. Dividends for shares traded on Nasdaq Stockholm will be paid in Swedish Krona in accordance with Euroclear principles on December 12, 2025.
To execute the payment of the dividend, a temporary administrative cross border transfer closure will be applied by Euroclear from November 19, 2025, up to and including November 21, 2025, during which period shares of the Company cannot be transferred between the TSX and Nasdaq Stockholm.
Payment to shareholders who are not residents of Canada will be net of any Canadian withholding taxes that may be applicable. For further details, please visit: https://mereninc.com/investor-summary/total-shareholder-returns/.
The Company’s Board views the base annual distribution policy to be prudent with due consideration for its capital allocation options and the priority of maintaining a strong balance sheet in a range of market scenarios. Future dividend declarations are subject to customary Board approval and consents.
Nigeria
In partnership with its JV partners, the Company is focused on enhancing production performance across its three producing fields, Akpo, Egina and Agbami.
Following the break to the Akpo/Egina (PPL 2/3) drilling campaign in Q3 2025, efforts are underway to recommence the campaign. As previously communicated, this break will allow for the interpretation of 4D seismic data to enhance the maturation of future infill well opportunities. Accordingly, the aim is to secure a deepwater drilling rig within the gap and start with the drilling of the Akpo Far East near-field prospect, followed by the drilling of further development wells on Akpo and Egina fields.
Akpo Far East is an infrastructure-led exploration opportunity that in case of commercial exploration success, presents an attractive short cycle, high return investment opportunity that would utilise the existing Akpo facilities. Akpo Far East prospect has an unrisked, best estimate, gross field prospective resource volume of 143.6 MMboe. The targeted hydrocarbons are predicted to be light, high gas-oil ratio (“GOR”) oil equivalent to those found in the Akpo field. If successful, initial production could be achieved from existing production manifolds with the potential to add significant reserves.
The JV partners are continuing the project optimization work for the Preowei field with the aim of completing the studies to provide the necessary results to move the project further along towards FID. A Q3 workshop, during which the operator presented findings from the ongoing re-assessment of the Preowei seismic data, indicated an increase in recoverable resources and delivered encouraging results. This optimization exercise will continue through early 2026 with additional work to validate these resources and optimize the project.
For the Agbami field, in addition to the ongoing 2024 4D seismic interpretation, rig and long lead items contracting activities are progressing for the 2027 infill drilling campaign. Separately, the Ikija appraisal well is being matured to enable its inclusion as part of the upcoming Agbami Infill drilling campaign.
Namibia Orange Basin Development and Exploration, Blocks 2912 and 2913B
The Venus Field in Block 2913B remains the most advanced deepwater discovery in the Orange Basin and is expected to anchor Namibia’s first large-scale offshore oil development. The project is being progressed by TotalEnergies (Operator, 50.5%) together with QatarEnergy (30.0%), NAMCOR (10.0%) and Impact Oil & Gas (9.5%). Through its shareholding in Impact, Meren holds an effective 3.8 percent indirect interest in the Venus development. Under Impact’s carried-interest arrangement with TotalEnergies, Meren’s exposure to all development and exploration costs on Blocks 2912 and 2913B remains fully funded through to first commercial production, without any financial cap.
During the third quarter, the joint-venture partners continued to progress the Environmental and Social Impact Assessment (ESIA) and associated stakeholder-engagement program, marking an important milestone toward regulatory approvals. Front-End Engineering Design (“FEED”) work is proceeding on the base-case concept of up to 40 subsea wells tied back to a single FPSO with a nameplate capacity of approximately 160,000 barrels per day of oil, with reinjection of associated gas offshore. Contractor bids have been received and are within expectation. The project schedule remains consistent with the current planning framework:
-
- FEED and ESIA completion by the end of 2025;
- Final Investment Decision (“FID”): Targeted for 2026;
- First Oil: 2030.
- FEED and ESIA completion by the end of 2025;
The Venus development is regarded by the Namibian government as a strategic national project with the potential to establish Namibia as a new deepwater oil producer. Appraisal and exploration activities continue across the broader Orange Basin and additional prospects are being evaluated using newly acquired 3D seismic data on Blocks 2192 and 2913B.
Namibia’s oil and gas sector remains active and supportive, with strong investment from international operators, rollout of a Local Content Policy, and infrastructure upgrades at Walvis Bay and Lüderitz. Execution and infrastructure challenges, including marine services capacity, environmental approvals, and gas monetization, present both risks and opportunities as the country positions itself to attract capital and expand its deepwater supply chain.
Meren’s indirect exposure to Venus represents a material long-term growth opportunity within a fully carried structure, offering potential for future cash-flow generation with no near-term funding commitments.
South Africa Orange Basin, Block 3B/4B
Following the granting of an Environmental Authorization for exploration activities (drilling of up to 5 exploration wells) by the Department of Mineral Resources and Energy for the Republic of South Africa on September 16, 2024, the legislative notification and appeals process is currently suspended pending a Supreme Court of Appeal judgement in respect of Block 5/6/7. The operator has stated that the current plan is to drill the first exploration well on Block 3B/4B as soon as the Environmental Authorisation is confirmed and has identified Nayla, a prospect that lies in the north of the license area as the potential drilling target.
The Company completed a strategic farm down agreement with TotalEnergies and QatarEnergy during Q3 2024 that provide it with exploration carry. Transaction highlights are:
- Maximum transaction value of up to $46.8 million to the Company.
- The Company will receive, subject to achieving certain milestones defined in the farm down agreement, staged payments for a total cash amount of $10.0 million, of which $3.3 million was received at completion with the remaining balance to be received in two successive payments conditional upon achieving key operational and regulatory milestones.
- The Company will also receive a full carry of its retained share of all JV costs, up to a cap, that is repayable to TotalEnergies and QatarEnergy from production, and which is expected to be adequate to fund the Company’s share of drilling for 1-2 wells on the license.
Equatorial Guinea, EG-18 and EG-31
Following the active data room exercise, the next phase of activity will focus on progressing potential partnership discussions, beginning with the evaluation of potential farm-in offers, and engaging with the government to define the forward plan for both blocks.
If the Company is successful in attracting farm-in partner(s) for these blocks, subject to customary consents and approvals including governmental and regulatory permissions, the Company anticipates that newly formed JVs could plan for exploration drilling in late 2026 or 2027. However, there is no guarantee that the Company can secure farm-in partners on acceptable terms.
2025 Management Guidance and Actuals
The revised 2025 Management Guidance as included in the Q2 2025 MD&A is unchanged and a summary is presented below for completeness.
| Original 2025 Guidance | Revised 2025 Guidance | First nine months of 2025 actuals | |
| WI production (kboepd) (1) | 28.0 – 33.0 | 30.0 – 33.0 | 31.8 |
| Entitlement production (kboepd) (2) | 32.0 – 37.0 | 34.5 – 37.5 | 36.3 |
| EBITDAX ($ million) (3) | 500 – 600 | 450 – 500 | 368.0 |
| Cash flow from operations ($ million) (3) | 320 – 370 | 260 – 310 | 243.1 |
| Capital investments ($ million) | 150 – 190 | 100 – 140 | 80.4 |
(1) Aggregate oil equivalent production data comprised of light and medium crude oil and conventional natural gas
production net to the Company’s W.I. in Agbami, Akpo and Egina fields. These production rates only include sold gas
volumes and not those volumes used for fuel, reinjected or flared.
(2) Entitlement production is calculated using the economic interest methodology and includes cost recovery oil, royalty
oil and profit oil and is different from working interest production that is calculated based on project volumes multiplied
by the Company’s effective working interest in each license.
(3) This table includes non-GAAP measures that do not have a standardized meaning prescribed by IFRS Accounting
Standards and, therefore, may not be comparable with the calculation of similar measures by other companies. The
Company believes that the presentation of these non-GAAP figures provides useful information to investors and
shareholders as the measures provide increased transparency. EBITDAX is a non-GAAP measure. This is used as a
performance measure to understand the financial performance from the Company’s business operations without
including the effects of the capital structure, tax rates, depreciation, depletion, amortization, impairment and exploration
expenses.
Cash flow from operations before working capital and interest payments is a non-GAAP measure. This represents cash
generated by removing the impact of working capital movements from cash generated by operating activities. It is a
measure commonly used to better understand cash flow from operations across periods on a consistent basis, and
when viewed in combination with the Company’s results provides a more complete understanding of the factors and
trends affecting the Company’s performance.
Meren Energy Management Conference Call
Senior management will hold a conference call to discuss the results on Monday, November 17, 2025, at 09:00 (ET) / 14:00 (GMT) / 15:00 (CET). The conference call may be accessed via webcast.
Participants should use the following link to register for the live webcast:
https://meren-energy-third-quarter-results-nov-2025.open-exchange.net/registration
- Click on the link and complete the online registration form.
- Upon registering you will receive a confirmation email with a sign in link and access code.
