Seplat Energy (SEPL) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational results in FY 2025, driven by the transformational Mobil Producing acquisition, tripling key metrics and expanding the resource base to 2.5 billion boe (2P+2C).

• Working interest production rose 148% year-over-year to 131,500 boe/d, with strong performance in both onshore and offshore segments.

• Integration of Mobil Producing team progressing well, supporting operational and financial scale.

• Significant progress on emissions reduction, asset integrity, and well restoration programs.

• Strengthened balance sheet, improved credit ratings, and increased shareholder returns through higher dividends.

Financial highlights

• Group revenue reached $2.73 billion, up 144% year-over-year; adjusted EBITDA $1.27 billion (47% margin); net income $159 million.

• Operating cash flow was $1.17 billion; net debt reduced to $673 million; leverage ratio improved to 0.53x ND/EBITDA.

• Dividend increased over 50% year-over-year to $0.25/share, with a special dividend paid in Q4.

• S&P, Moody’s, and Fitch upgraded credit ratings; hedged 18 MMbbls through 3Q 2026.

• Free cash flow after working capital nearly $560 million; gross profit up 90% to $904.5 million.

Outlook and guidance

• 2026 production guidance: 135,000–155,000 boe/d; capex planned at $360–$440 million, up from $267 million in 2025.

• Operating cost target: $13.5–$14.5/boe, with ongoing cost reduction initiatives.

• Cash tax guidance: $400–$450 million for 2026, with effective tax rate expected to trend toward 40% over five years.

• Committed to $1 billion in aggregate dividends by 2030, with 40–50% of free cash flow to be paid out.

• Focus on strategic maintenance, 17 new wells, and major gas projects including ANOH ramp-up and Oso-BRT phase 1 first gas targeted for 3Q 2026.