MEREN ANNOUNCES 2025 FOURTH QUARTER AND FULL-YEAR RESULTS, ITS YEAR-END 2025 STATEMENT OF RESERVES AND FIRST QUARTERLY DIVIDEND OF 2026

Executive Summary

• Meren Energy Inc. reported its full-year and fourth-quarter 2025 financial results, posting a net loss of $31.6 million ($0.05/share) primarily due to a $105.3 million non-cash impairment of the Agbami CGU.
• The company closed the transformative Prime amalgamation in 2025, doubling its reserves and production, while reducing its revolving credit facility (RBL) by $420 million and ending the year with a net debt position of $155.3 million.
• Meren declared its first quarterly dividend for 2026 of approximately $25.1 million ($0.0371 per share), payable in April 2026, while providing 2026 guidance for production of 23.0–28.0 kboepd (WI) and EBITDAX of $270–360 million.

Key Details

• Financial Performance (Full Year 2025):
  • Net loss: $31.6 million ($0.05/share).
  • EBITDAX: $440.7 million.
  • Cash flow from operations (before working capital): $261.8 million.
  • Capital investments: $100.2 million.
  • Cash balance: $174.7 million; Net debt: $155.3 million (Net Debt/EBITDAX 0.4x).
  • RBL facility headroom: $138.4 million.
• Financial Performance (Q4 2025):
  • Net loss: $90.8 million ($0.13/share).
  • EBITDAX: $72.7 million.
  • Cash flow from operations: $18.7 million.
  • Capital investments: $19.8 million.
• Impairment:
  • Recorded a $105.3 million non-cash impairment on the Agbami CGU due to conservative oil price and cost outlooks.
  • Impairment does not reflect adverse changes in reservoir performance or operational integrity; it relates to planned life-extension activities for the Agbami FPSO.
• Reserves (Year-End 2025):
  • 1P Reserves (WI/Net): 48.8 MMboe / 62.5 MMboe.
  • 2P Reserves (WI/Net): 87.7 MMboe / 107.4 MMboe.
  • 1P NPV(10): $588 million; 2P NPV(10): $1,499 million.
• Production & Sales:
  • 2025 Average Daily WI Production: 30,800 boepd.
  • 2025 Average Daily Entitlement Production: 35,100 boepd.
  • Q4 2025 Average Sales Price: $64.4/bbl.
  • 2025 Average Sales Price: $72.2/bbl.
• Shareholder Returns & Dividends:
  • 2025 Total Distributions: ~$100 million.
  • Share Repurchases: 5.9 million shares for ~$8 million.
  • 2026 Q1 Dividend: ~$25.1 million ($0.0371/share).
  • Record Date: March 20, 2026.
  • Payment Date: April 7, 2026 (CAD); April 10, 2026 (SEK).
• 2026 Guidance:
  • WI Production: 23.0 – 28.0 kboepd.
  • Entitlement Production: 28.0 – 33.0 kboepd.
  • EBITDAX: $270.0 – $360.0 million.
  • Capital Investments: $100.0 – $140.0 million.
  • Expected Sales: 8 cargoes of ~1 million barrels each.
• Operational Updates & Outlook:
  • Nigeria: Akpo/Egina 2026 drilling campaign restart underway; Akpo Far East prospect to be drilled in 2026. Agbami infill drilling expected to commence Q1 2027. Gas sales agreement amended in early 2026 to lock in long-term pricing.
  • Namibia (Venus Field): ESIA completed; ECC application submitted. FEED proceeding with base case of up to 40 subsea wells tied to FPSO (160k bpd). FID targeted for 2026, First Oil 2030. Meren holds 3.8% indirect interest with no upfront funding commitment.
  • South Africa (Block 3B/4B): Environmental Authorization granted; drilling planned once legal appeals regarding Block 5/6/7 are resolved.
  • Equatorial Guinea: License extensions approved for up to two years. Data room exercises completed; partnership discussions ongoing.

Notable Quotes

• "2025 was a strong year of delivery for Meren. We closed the transformational Prime consolidation, delivered strong shareholder returns, and strengthened the balance sheet through disciplined deleveraging. These actions have reshaped the company into a simpler, more resilient business that can deliver value through the cycle." — Oliver Quinn, President and CEO