Energean PLC reported first-half 2026 free cash flow of $350 million, a 36% increase from the same period a year earlier, according to the company's earnings call transcript. The free cash flow figure was described as including cash flow from operations and investing. Profit after tax rose 45% to $160 million, while operating cash flow reached $550 million. Revenue fell 8% to $715 million and six-month EBITDA declined 5%, with adjusted earnings per share reported at $0.643. Chief Executive Mathios Rigas said the results showed higher free cash flow, higher profit after tax and lower net debt while the company was at the peak of its investment program for the Katlan project.
Capital spending in the first half was $350 million, within guidance and directed to development work including Katlan. Abandonment and decommissioning expenditure was $4 million. Net debt fell by about $50 million during the period, and management said it expects net debt to peak at around $3.3 billion. The company said leverage is expected to be around 2.5 times to 3.0 times during the capital-intensive phase, with a medium-term target of 2.0 times. Chief Financial Officer Panos said the target is to reduce leverage to two times after Katlan is completed.
In Egypt, receivables from EGPC were reduced from $215 million at the start of the year to $75 million. Energean also announced a new gas sales and purchase agreement with Sorek, adding $1.4 billion of secured revenue. The company said the agreement brings total contracted revenue to $22 billion over the next two decades.
Production was affected by a 41-day shutdown at the Karish field due to security issues in Israel. Total production declined 12% year over year because of the outage, although the company maintained full-year 2026 guidance of 130,000 to 140,000 barrels of oil equivalent per day. August production reached 182,000 boe/d after the shutdown ended. Oil represented 32% of revenues in Israel, and the second oil train expanded oil production capacity to 31,000 barrels per day, with testing up to 25,000 barrels per day. The average oil price realized in Israel in the second quarter was $88.40 per barrel.
Katlan remains the company's main growth project and is on budget and on schedule for first gas from the Athena and Zeus wells in the first half of 2027. Other plans include an expanded Egyptian investment program of $150 million over five years, a planned exploration well in Greece's Block 2 in early the second quarter of 2027, and a future exploration bid round in Israel. The transcript also referenced assets and projects including Dalia, Kesek, Leviathan, Tamar, Cassiopea in Italy, and the Nitzana pipeline, along with Katlan wells Apollo, Hera and Tanin.
For full-year 2026, Energean guided operating costs to around $300 million, royalties to around $200 million and general and administrative expenses to around $35 million. Development capital expenditure is expected to be $800 million to $850 million, with net debt around $3.3 billion at peak.
The stock rose 0.32% to $778.5 immediately after the report and later traded at $818, up 3.35% from the previous close of $791.5. The 52-week range was $674.5 to $1,042. InvestingPro data showed a dividend yield of 3.73%, a market capitalization of $2.05 billion and trailing twelve-month EBITDA of $1.11 billion.
