Meren Energy raises 2026 cash flow guidance as Agbami production improves

Meren Energy Inc

Meren Energy has raised its 2026 EBITDAX and operating cash flow guidance after stronger production from the Agbami asset supported its first-half results. The company now expects an EBITDAX midpoint of US$410 million for 2026 and an operating cash flow midpoint of US$247.5 million. During the first half of the year, Meren generated EBITDAX of US$219.5 million and operating cash flow of US$139.4 million.

The revised guidance strengthens the near-term cash generation picture and places greater focus on how effectively Meren can use production from its existing African assets to fund its wider commitments.

Second-quarter 2026 sales were US$196.7 million, with net income of US$31.8 million. For the first six months of 2026, sales totalled US$311.0 million, while the company recorded a net loss of US$10.4 million.

The difference between the second-quarter profit and the first-half net loss highlights the importance of continued operating consistency through the remainder of the year. The higher full-year guidance indicates that management expects the underlying business to maintain sufficient momentum to support stronger cash generation.

Agbami production is central to that outlook. Improved output from the asset contributed to the decision to raise guidance and reduces some of the immediate pressure created by a limited number of near-term production additions. That gives Meren more room to manage the period before its longer-term projects can make a larger contribution.

Meren is also balancing cash generation against dividend payments and debt obligations. The company declared its third cash dividend of 2026 at US$0.0371 per share. Maintaining shareholder distributions while meeting debt commitments and funding future projects will continue to influence financial flexibility.

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.

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