MEREN ANNOUNCES SECOND QUARTER 2025 RESULTS AND DECLARES THIRD QUARTERLY DIVIDEND

Executive Summary

• Meren Energy Inc. reported its financial and operating results for the three and six months ended June 30, 2025, alongside the declaration of its third quarterly dividend for 2025.
• The company achieved strong operational performance in H1 2025, with EBITDAX of $248.2 million and cash flow from operations of $177.5 million, while proactively reducing its debt balance.
• Management revised its full-year 2025 guidance downward, citing lower average Dated Brent oil price estimates ($69/bbl vs. original $75/bbl), though production guidance mid-points increased slightly.

Key Details

• Dividend Declaration: Declared the third 2025 quarterly dividend of approximately $25.0 million ($0.0371 per share), bringing total distributions year-to-date to approximately $75.1 million.
• Q2 2025 Financials:
  • Net income: $3.1 million (Q2) vs $0.4 million (Q2 2024).
  • Net income per share (basic): $0.00 (Q2).
  • Net debt position: $273.4 million as of June 30, 2025.
  • Cash balance: $266.6 million.
  • Net Debt/EBITDAX: 0.6x.
  • RBL facility headroom: $94.1 million.
• H1 2025 Financials:
  • Cash flow from operations (before working capital adjustment): $177.5 million.
  • EBITDAX: $248.2 million.
  • Cash capital investments: $58.6 million.
• Operational Performance (Q2 2025):
  • Average daily Working Interest (W.I.) production: 30,900 boepd.
  • Average daily Entitlement production: 35,700 boepd.
  • Two new Egina wells brought on stream in May; successful well intervention at Akpo.
  • Sold one cargo (approx. 1 MMbbl) at $64.2/bbl.
• Debt Management:
  • Pro-actively reduced RBL by $80.0 million during Q2, ending Q2 with a debt balance of $540.0 million.
  • Post-period (July 2025), further reduced RBL debt by $60.0 million, resulting in a debt balance of $480.0 million as of the release date.
  • Cancelled $65.0m standby Corporate Facility; security released.
• Revised 2025 Management Guidance:
  • WI Production: Revised to 30.0–33.0 kboepd (Original: 28.0–33.0 kboepd).
  • Entitlement Production: Revised to 34.5–37.5 kboepd (Original: 32.0–37.0 kboepd).
  • EBITDAX: Revised to $450–500 million (Original: $500–600 million).
  • Cash Flow from Operations: Revised to $260–310 million (Original: $320–370 million).
  • Capital Investments: Revised to $100–140 million (Original: $150–190 million).
  • Oil Price Assumption: Revised to $69/bbl (Original: $75/bbl).
• Project Updates:
  • Nigeria: Drilling campaign break brought forward to Q3 2025; drilling expected to resume in 2026. Akpo Far East prospect has an unrisked, best estimate gross field prospective resource volume of 143.6 MMboe. Preowei seismic re-assessment indicates increased recoverable resources. Agbami LLIs to be ordered in Q3 2025 for 2027 infill drilling.
  • Namibia (Venus Field): FEED scheduled Q2–Q4 2025; ESIA submission Q4 2025; FID expected H1 2026. Meren holds 3.8% effective interest, fully funded through first commercial production.
  • South Africa (Block 3B/4B): Environmental authorization granted; first exploration well planned for 2026. Strategic farm-down with TotalEnergies and QatarEnergy provides up to $46.8M value, including $10.0M in staged cash payments and a full carry of JV costs.
  • Equatorial Guinea: Active dialogue for farm-in parties; data room exercise to complete by end Q3 2025.

Notable Quotes

• "Against a backdrop of increased oil price volatility and global economic uncertainty, we continue to deliver material shareholder returns whilst maintaining a strong balance sheet and significant liquidity headroom. We have a resilient business and are confident of continuing to deliver growth and returns through the business cycle, supported by our high-quality, high netback assets and funded growth catalysts." — Roger Tucker, President and CEO