Corrected: Canada's Meren Energy Q2 net income rises on low-cost production; raises 2026 EBITDAX outlook

Meren Energy

11/08/2026 22:09

Corrects second overview bullet and second and third result drivers to clarify they pertain to H1, not Q2

Overview
Canada upstream oil and gas producer's Q2 net income rose sharply yr/yr
H1 EBITDAX and cash flow from operations tracked ahead of plan, guidance revised higher
Company declared third quarterly dividend of $25.1 mln for 2026

Outlook
Meren raises 2026 EBITDAX guidance to $390 mln–$430 mln from $270 mln–$360 mln
Company lifts 2026 cash flow from operations guidance to $235 mln–$260 mln from $185 mln–$255 mln
2026 capital investment guidance lowered to $90 mln–$120 mln from $100 mln–$140 mln

Result Drivers
PRODUCTION RECOVERY - Output from Agbami field recovered to highest level since 2025 turnaround, supporting overall production
COST CONTROL - In H1 2026, unit operating costs of $14.5/boe supported operating margins and cash generation
LOWER INTEREST EXPENSE - Co said H1 2026 interest expense on its RBL facility was ~50% lower yr/yr after refinancing and facility changes, reducing cost of debt

Company press release: ID:nCNWVp3qva

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
$31.80 mln
 
Q2 Basic EPS
 
$0.05
 
Q2 EBITDAX
 
$108.40 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "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 Meren Energy Inc. is C$2.56, about 23.4% above its August 10 closing price of C$2.07
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
Aug 10 - HighPeak Energy Q2 net income more than triples on higher crude prices
Aug 10 - Amplify Energy Q2 revenue rises 41%, swings to profit helped by new wells, royalty relief
Aug 11 - Nigeria approves deep-water oil investment framework aimed at unlocking $50 bln

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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.)