Energean PLC presented first-half 2026 results on September 9, 2026. Free cash flow rose 35% year over year to $250 million, while profit after tax increased 45% to $160 million. Total revenue from production fell 8% to $743 million, and adjusted EBITDAX was $478 million. Adjusted cash flow from operating activities rose 22% to $558 million. Gas sales revenues declined 21% to $429 million, while liquids revenues increased 14% to $286 million. Operating cash inflow was $501 million, cash capital expenditure was $250 million, and finance costs were $129 million. The company ended the period with $315 million in cash, up from $227 million at the start of the year, and declared a second-quarter dividend of $0.10 per share.
Consolidated net debt fell by $97 million in the second quarter to $3,227 million at June 30, 2026, from $3,255 million at year-end 2025. Leverage, measured as net debt to trailing-12-month adjusted EBITDAX, declined to 3.0 times from 3.2 times in the first quarter. The weighted average cost of debt was about 7%, and the weighted average debt maturity was approximately five years. Contracted revenues were approximately $22 billion, supported by an 18-year reserves life.
Production was affected by a 41-day shutdown in Israel ordered by the ministry in Israel. Average first-half production was 124,000 barrels of oil equivalent per day, down 10% from 138,000 barrels in the same period last year. August production exceeded 180,000 barrels per day. Full-year 2026 guidance is 130,000 to 140,000 barrels per day, with Israel contributing 98,000 to 104,000 barrels per day and the rest of the portfolio contributing 32,000 to 36,000 barrels per day. Gas sales volumes fell 12% to 16,779,000 barrels of oil equivalent, and liquids sales volumes declined 11% to 3,391,000 barrels of oil equivalent. The realized weighted average liquids price rose 29% to $79.6 per barrel; in Israel during the second quarter, the realized liquids price reached $88.4 per barrel. Cash cost of production, including royalties, fell 5% to $259 million, with operating costs decreasing from $175 million to $162 million and royalties remaining stable at $97 million. FPSO liquids capacity increased from 18,000 barrels per day to 31,000 barrels per day after the second oil train was completed, with tested liquids production at 25,000 barrels per day. The M01 and M09 FPSO installations were completed in August.
In September, the company said Athena and Zeus development wells were drilled and completed, and it was prequalified as operator for the OBR5 bid round, with submissions due in November. First gas from Athena and Zeus is expected in the first half of 2027, while Apollo and Hera development wells are scheduled for drilling in 2027. Athena and Zeus hold 26 billion cubic meters of resources, and Apollo and Hera hold 11 billion cubic meters. In Greece, Block 2 has 9.5 trillion cubic feet of unrisked gross gas initially in place, equivalent to 1.64 billion barrels of oil equivalent. ExxonMobil holds a 60% working interest, Energean holds 30% with operational control, and HELLENIQ Energy holds 10%. A deepwater exploration well is scheduled for the second quarter of 2027. In Egypt, concession merger terms are effective from January 1, 2027, with parliamentary ratification expected by mid-2027. The company committed an initial $150 million investment over four years after the merger, targeting about 50 million barrels of oil equivalent, and cited more than 4 trillion cubic feet of total exploration potential, including about 3 trillion cubic feet in the deep horizon. The Epsilon development project is a 27 million barrel oil equivalent 2P oil project. In the United Kingdom, removal of the Garrow and Kilmar platforms generated tax losses of £715 million. The company also reported a gas sales and purchase agreement with Sorek worth approximately $1.4 billion for its new H-class power station.
For full-year 2026, cash cost of production is guided at $510 million to $550 million, including $200 million to $220 million in royalties. Total development and production capital expenditure is guided at $800 million to $860 million. Exploration expenditure was reduced to $5 million to $10 million from $10 million to $15 million, and decommissioning spend was reduced to $40 million to $50 million from $50 million to $60 million. Year-end consolidated net debt is expected to be $3,250 million to $3,350 million. Management also indicated higher free cash flow from the second quarter of 2027 onward and said it expects to refinance the 2028 notes.
Safety and environmental metrics improved. Lost time injury frequency fell to zero in the first half from 0.408 in the prior-year period, a 100% reduction. The total recordable injury rate decreased 41% to 0.242 from 0.408. Emissions intensity improved 2% to 8.1 kilograms of carbon dioxide equivalent per barrel of oil equivalent, from 8.3 in the prior-year period.
After the presentation, the shares were quoted at 820.50, up 3.66% from the previous close of 791.50. The 52-week trading range was 674.50 to 1,042.
