UK's Ithaca Energy posts record Q2 production, raises FY dividend outlook
UK's Ithaca Energy posts record Q2 production, raises FY dividend outlook
Overview
UK oil and gas producer posted record Q2 production, reaffirming full-year output guidance
Adjusted EBITDAX and adjusted net income for H1 2026 were stable year-over-year
Company declared $255 mln interim dividend, upgraded FY 2026 dividend guidance to $500-530 mln
Outlook
Ithaca Energy reaffirms FY 2026 production guidance at 120-130 kboe/d
Company cuts FY 2026 net operating cost guidance to $800-840 mln from $820-860 mln
Ithaca Energy raises FY 2026 dividend guidance to $500-530 mln from $470-520 mln
Result Drivers
RECORD PRODUCTION - Co said Q2 production rebounded from weather-related challenges in Q1, achieving a record 131 kboe/d and supporting robust H1 output
DISCIPLINED COST MANAGEMENT - Co said unit operating expenditure of $18/boe remained well below basin average, reflecting asset quality and cost discipline
PORTFOLIO EVOLUTION - Co said increased gas-weighted production from Cygnus and Seagull fields shifted production mix to 52% oil and 48% gas
Company press release: ID:nRSS2222Ra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Adjusted Net Income |
| $127.70 mln |
|
H1 Adjusted EBITDAX |
| $1.12 bln |
|
H1 Adjusted Free Cash Flow |
| $954.60 mln |
|
H1 Pretax Profit |
| $493.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Ithaca Energy PLC is GBp272.50, about 8.3% above its August 18 closing price of GBp251.60
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)