Meren Energy raises 2026 guidance and declares $25.1 million distribution

Meren Energy Inc. (MER.TO) has published its financial and operating results for the three and six months ended June 30, 2026, and is pleased to declare its third distribution of $25.1 million for this year. 

Meren President and CEO, Oliver Quinn commented: “Our production assets performed in line with expectations and continue to deliver reliable, low-cost production. At the same time preparations are advanced for a programme of well interventions and drilling activity across our Nigerian assets from Q3 that will support the next phase of value creation. A strong first-half performance and a constructive outlook for the rest of the year has enabled us to tighten production guidance and raise our EBITDAX and CFFO guidance. This demonstrates our strategy in action: a resilient, low-cost production base complemented by a disciplined capital allocation framework that balances investment in growth, financial resilience and shareholder returns.”

Q2 2026 AND H1 2026 AND POST PERIOD HIGHLIGHTS^*

• Financial
  • In H1 2026, recorded EBITDAX of $219.5 million and cash flow from operations before working capital of $139.4 million, tracking ahead of plan and supporting an upward revision of full-year 2026 Management Guidance.
  • New EBITDAX guidance mid-point of $410.0 million compared to the original mid-point of $315.0 million, and CFFO guidance mid-point of $247.5 million compared to the original mid-point of $220.0 million.
  • In H1 2026, recorded a $27.3 million loss on commodity risk management contracts as oil prices rose during the period, comprising the non-cash mark-to-market revaluation of derivatives and an $8.2 million cash settlement on expired derivatives.
  • H1 2026 interest expense on the RBL facility of $13.6 million was ~50% lower than H1 2025 RBL interest expenses and corporate facility fees on an amalgamated basis, benefitting from the March 2026 RBL refinancing at improved terms, effective cash management, and the cancellation of the legacy corporate facility – collectively lowering the Company’s cost of debt and reinforcing the strength of the balance sheet.
  • In H1 2026, capital investments of $23.6 million, mostly spent on the Nigerian operations, with the balance of the full-year programme weighted to H2 2026 as the drilling campaign starts.

• Balance Sheet & Shareholder Returns
  • Cash of $77.7 million and Net Debt/EBITDAX of 0.5x, well below the Company’s internal through-the-cycle leverage target of 1.0x, providing significant financial flexibility to fund the Company’s organic growth and portfolio opportunities.
  • Total liquidity of $319.0 million at period-end, comprising cash and available RBL headroom following the March 2026 RBL refinancing, which upsized the facility to $600 million (with an accordion to $1 billion) and extended final maturity to March 2032.
  • Declared the third 2026 quarterly dividend of $25.1 million ($0.0371/share), bringing YTD distributions to $75.3 million and cumulative shareholder distributions to ~$175 million since the closing of the Amalgamation in March 2025.

• Operational
  • In H1 2026, average daily working interest (“W.I.”) production of 27,700 boepd and entitlement production of 30,500 boepd, on track to achieve full-year guidance, with output from Agbami recovered to its highest level since the 2025 turnaround, underpinned by the continued post-maintenance ramp-up.
  • In H1 2026, unit operating costs of $14.5/boe on an entitlement basis, supporting strong operating margins and cash generation.
  • Nigeria drilling campaign on track to start in Q4 2026, with a well-intervention programme on Akpo and Egina supporting and sustaining production ahead of the broader infill, appraisal and exploration programme around Agbami, Akpo and Egina FPSOs in 2026–2028.

• Commercial
  • In Q2 2026, sold two cargoes (approximately 2 MMbbl) at an all-in sales price of $92.8/bbl, which compares to the average Bloomberg Dated Brent price of $103.8/bbl for Q2 2026, with the difference driven by a legacy 2025 trigger price mechanism that was activated in 2025. There are no trigger price mechanisms on any future cargoes, with hedging now managed through financial derivatives.
  • Announced Impact corporate restructuring further focusing the Company’s associate exposure on the core Namibia Orange Basin opportunity set.

2026 Second Quarter Results Highlights¹

The comparative period numbers as included in this financial summary are no longer presented on a constructed financial information basis. The comparative period numbers are derived from the interim condensed consolidated financial statements for the three and six months ended June 30, 2025, and from the consolidated financial statements for the year ended December 31, 2025. Comparative period numbers will therefore be different compared to those presented in the Management’s Discussion and Analysis for the six months ended June 30, 2025, and for the year ended December 31, 2025.