Meren Energy (MER) Q2 2025 earnings summary

Executive summary

• Maintained strong operational and financial performance in Q2 2025, with robust liquidity and balance sheet strength, and completed the Prime/BTG Oil & Gas amalgamation, consolidating 100% of Meren Coop.

• Advanced high-impact growth projects in Namibia, Nigeria, South Africa, and Equatorial Guinea.

• Continued disciplined capital allocation, supporting shareholder returns and future growth, with $75 million in dividends distributed by end of Q3.

• Proactively reduced RBL debt by $270 million since amalgamation, with net debt at $273.4 million at Q2 2025 end.

• Achieved average daily WI production of 30,900–31,000 boepd and entitlement production of 35,700 boepd in Q2 2025.

Financial highlights

• Q2 2025 EBITDA/EBITDAX of $106.6–$107 million; H1 2025 EBITDA/EBITDAX at $248 million.

• Q2 2025 cash flow from operations before working capital: $77.7–$78 million; H1 2025 CFFO: $177.5–$178 million.

• Q2 2025 free cash flow: -$19 million to $59 million; H1 2025 FCF: $59–$103 million.

• Ended Q2 2025 with $266.6–$267 million cash, down from $428 million in Q1, mainly due to RBL repayments and dividends.

• Net debt at $273–$273.4 million; net debt-to-EBITDA/EBITDAX ratio of 0.6x.

Outlook and guidance

• 2025 WI production guidance: 30,000–33,000 boepd; entitlement: 34,500–37,500 boepd.

• Full-year 2025 EBITDA/EBITDAX guidance: $450–500 million; CFFO: $260–310 million; CapEx: $100–140 million.

• Guidance revised lower due to Brent price assumption of $68.5–$69/bbl (prior $75/bbl).

• Three of six remaining 2025 oil cargos hedged at $64.5–$64.6/bbl, de-risking price volatility.

• Venus project FID expected H1 2026; South Africa Block 3B/4B drilling planned for 2026.