Seplat Energy (SEPL) CMD 2025 summary

Strategic Vision and Growth Plans

• Targeting production growth to over 200,000 boe/d by 2030, with a JV target of 500,000 boe/d, representing a 50% uplift from current levels.

• Acquisition of MPNU has transformed the company into a larger, more diversified energy player, supporting strong production growth and operational efficiencies into the next decade.

• Portfolio diversification includes 11 blocks, 5 gas plants, 3 export terminals, and 48 producing fields, with 75% of reserves now offshore.

• New resource report shows 2.3 billion boe in 2P+2C resources, with 75% offshore and a significant uplift in contingent resources.

• Decarbonization strategy aims to end routine flaring onshore by H2 2025 and reduce offshore emissions by 50% by 2030.

Financial Guidance and Capital Allocation

• Projected after-tax operating cash flow of $5–$6 billion over 2026–2030, nearly tripling the previous five-year period.

• Capital expenditure will rise from $0.9 billion (2020–2024) to $2.5–$3 billion (2026–2030), with 120–150 wells to be drilled in the next five years.

• New dividend policy: 40–50% of free cash flow, with a $120 million annual minimum, targeting $1 billion in cumulative dividends over five years.

• CapEx will be prioritized for asset integrity, safety, and growth, with a focus on maintaining a strong balance sheet and low leverage (targeting 0.5–1x net debt/EBITDA).

• Production opex targeted to fall below $10/boe by 2030, with corporate breakeven at ~$40/boe.

Operational Execution and Business Developments

• Offshore assets now deliver 80,000 boe/d, above plan, with a motivated workforce and rapid post-acquisition activity.

• Idle well restoration and infield drilling programs are underway, targeting 60+ wells per year and leveraging existing staff expertise.

• Gas business to double JV production to 1 bcf/d by 2030, with ANOH Gas Processing Plant commissioning in Q4 and expanded LNG export plans.

• Enhanced infrastructure resilience has reduced export losses to below 5% since late 2022.

• All IPO targets have been exceeded, including reserves replacement, production, and major acquisitions.