Business
Meren Energy : First Quarter 2026 Results - 13 May 2026
Meren Energy : First Quarter 2026 Results - 13 May
About this update from Meren Energy Inc.
Meren Energy Inc . Delivering Value Through Every Cycle First Quarter 2026 Results 13 May 2026 https://www.mereninc.com Speakers Oliver Quinn CEO Aldo Perracini CFO Shahin Amini Head of IR and Comms Agenda Introduction Business Highlights Q1 Financial and Operational Results Business Outlook Q&A Forward-Looking Statements This presentation contains certain statements and information that constitute "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements relating to future production, capital expenditures, cash flows, dividends and shareholder returns, liquidity, debt levels, business strategy, farm-downs, development, exploration and appraisal activities, project timing, and management guidance. Forward-looking statements are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied. These risks include, among others, changes in commodity prices, operating and technical risks, regulatory approvals, availability of financing, and general economic and market conditions. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this presentation, and the Company undertakes no obligation to update or revise such statements except as required by applicable law. For a discussion of material risk factors and assumptions, please refer to the Company's most recent Management's Discussion and Analysis and Annual Information Form available on SEDAR+ and on our website ( https://www.mereninc.com ). Q1 2026: Operational Stability and Financial Strength Increased financial flexibility via RBL refinancing Disciplined capital returns Core asset performance on track, achieving higher gas pricing Well-positioned for growth and returns through market cycles Capital Returns Dividends / Share Buybacks $50m Balance Sheet Strength Net Debt to EBITDAX 0.5x Liquidity Cash / RBL Headroom $366m Quarterly Production Performance Average daily production (kboepd) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 W.I Entitlement Q1 2026 W.I. Production 28.4 kboepd FY'26 Guidance: 23-28 kboepd Q1 2026 Entitlement Production 31.0 kboepd FY'26 Guidance: 28-33 kboepd Akpo and Egina performed in line with expectations during the period. Agbami production back to expected levels going into Q2 following planned maintenance. Oil Sales Premium Dated Brent Pricing Conflict in the Middle East drove a sharp increase in Dated Brent 90 80 70 60 50 40 30 20 10 0 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Sales Price Dated Brent 1 February cargo sold at $64/bbl Q1 Average Dated Brent: $81/bbl Dated Brent for February 2026: $71bbl Q1 Financial Highlights EBITDAX 1 / CFFO 1,2 / Capex / FCF 2 ($ Million) FY'26 GUIDANCE $270-360 FY'26 GUIDANCE $185-255 FY'26 GUIDANCE $100-140 180 160 140 120 100 80 60 40 20 0 -20 -40 79 9 100 -36 EBITDAX CFFO 2 CAPEX FCF Q1 2026 EBITDAX/CFFO/FCF are not generally accepted IFRS term. Refer to Reader Advisory Section (slide 14) of this document for important information on non-IFRS measures. CFFO is cash flow from operations before working capital of -$106.4m and interest expenses. Q1 Cash Movements 1 Cash Balances & Q1'26 Movements ($ Million) 40 162 -9 -27 -6 -10 175 200 180 160 140 120 100 80 60 40 20 Net cash generated in operating activities Q1'26 Cash Balance 0 FY'25 Cash Balance Investments in O&G properties RBL drawdown RBL modification fees Interest expense and other items Refer to Q1 2026 Shareholder Report for more information Liquidity Management 1200 Debt, net debt and borrowing base amounts (US$M) 1200 Borrowing base redetermination and headroom (US$M) 1000 1000 800 800 600 400 600 400 US$204m liquidity headroom 200 200 0 YE 2023 YE 2024 YE 2025 Q1 2026 Combined Debt (1) Combined Net Debt (1) RBL Availability 0 End Q4'25 BB Amount End Q1'25 BB Amount - Post-refinancing End Q1'25 RBL Drawn Amount Combined Meren cash and Prime net debt for YE 2023/2024 prior to Prime Amalgamation in March 2025; Meren reported numbers for YE 2025/Q1 2026 RBL Drawdown Q1'26 $40m RBL Drawn Amount Q1'26 $370m Net Debt Position Q1'26 Net Debt $208m (YE'25: $155m) Net Debt / EBITDAX Q1'26 0.5x Portfolio Updates Nigeria Akpo/Egina: Rig mobilisation is expected in H2 2026, starting with Akpo Far East before moving to Akpo and Egina infill wells, with first production from these wells anticipated in 2027 Agbami: Rig contracting is on schedule ahead of infill drilling commencing in Q4 2026, starting with Ikija, with six wells planned across 2027 and 2028 Namibia FDP submitted by TotalEnergies, under review by Namibian authorities FEED finalised, capital costs firmed through competitive EPC bidding Final investment decision planned for around mid-2026, with first oil targeting 2030 Equatorial Guinea Licence extensions approved (up to 2 years on first exploration sub-period for each block) Forward plan advancing with partnership discussions underway Meren's Capital Allocation Priorities 1. Balance sheet strength 3. Shareholder returns Balance Sheet Strength Underpins Organic Growth 4. Inorganic growth Maintain minimum liquidity US$150m Net Debt/EBITDAX 1 < 1.0x Nigerian deepwater short-cycle and high IRR investments Nigerian Infrastructure-led exploration limited to a small percent of total annual capex and funded from CFFO Appraisal and development in EG and latter development phases in Namibia Base dividend policy (with the target of US$100m/year) anchors shareholder returns Pursue new growth opportunities with a focus on producing assets adhering to strict strategic, financial and operational criteria 1) Non-IFRS measure. Refer to slide 14 for important information. Differentiated Independent E&P Investment Case Demonstrated track record of shareholder returns Positioned to deliver sustainable long-term value through every cycle Robust balance sheet with low debt and material liquidity headroom Funded organic growth opportunities underpin long-term production outlook High netback production from core producing assets Q&A First Quarter 2026 Results Presentation | May 2026 Reader Advisory Non-IFRS Measures References are made to "Earnings Before Interest, Tax, Depreciation, Amortization and Exploration Expenses ("EBITDAX"), cash flow from operations ("CFFO") and free cash flow to firm ("FCF"). These are not generally accepted accounting measures under International Financial Reporting Standards (IFRS) and do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with definitions of EBITDAX, CFFO and FCF that may be used by other public companies. Non-IFRS measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Management believes that non-IFRS measures are useful supplemental measures that may assist shareholders and investors in assessing the cash generated by and the financial performance and position of the Company. Management also uses non-IFRS measures internally in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess the Company's ability to meet its future capital expenditure and working capital requirements. EBITDAX is a non-GAAP measure. This is used as a performance measure to understand the financial performance from the Company's business operations without including the effects of the capital structure, tax rates, DD&A and impairment expenses. Cash flow from operations before working capital is a non-GAAP measure. This represents cash generated by removing the impact from working capital from cash generated by operating activities and is a measure commonly used to better understand cash flow from operations across periods on a consistent basis and when viewed in combination with the Company's results provides a more complete understanding of the factors and trends affecting the Company's performance. Free cash flow is a non-GAAP measure. This measure represents cash generated after costs, and is a measure commonly used to assess the Company's profitability. Refer to Q1 2026 Report to Shareholders for a reconciliation of non-IFRS measures to the reported accounts. Oil and Gas Information Aggregate oil equivalent production data are comprised of light and medium crude oil and conventional natural gas. These production rates only include sold gas volumes and not those volumes used for fuel, reinjected or flared. Net entitlement production is calculated using the economic interest methodology and includes cost recovery oil, tax oil and profit oil and is different from working interest production that is calculated based on project volumes multiplied by Prime's effective working interest in each license. The terms BOE (barrel of oil equivalent) is used throughout this press release. Such terms may be misleading, particularly if used in isolation. Production data are based on a conversion ratio of six thousand cubic feet per barrel (6 Mcf: 1bbl). This conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. All dollar amounts are in United States dollars unless otherwise indicated. First Quarter 2026 Results Presentation | May 2026 14