Gulf Keystone Petroleum reported a 26% year-over-year increase in adjusted EBITDA to $52 million for the first half of 2026, driven by higher realized prices and lower operating costs after a prolonged production shutdown in Iraq’s Kurdistan region.
The London-listed oil producer reduced operating expenses by 25% to $20 million in H1 2026, compared with $41 million in the same period last year. General and administrative expenses also declined 6% to $4.3 million, while free cash outflow was limited to $2 million. Net capital expenditure totaled $18 million, with nearly half spent prior to the February 28 shut-in.
Production averaged 14,600 barrels of oil per day in the first half, down from 44,100 bopd in H1 2025, due to two precautionary shutdowns totaling nearly five months. The first outage ran from February 28 to June 23, followed by a second from July 19 to August 16. Operations resumed in June, reaching over 45,000 bopd within three weeks, and approached 40,000 bopd after the August restart.
Gulf Keystone paid a $12.5 million semi-annual dividend in April and declared an interim dividend of $10 million for September, yielding 6.92% based on current share prices. The company holds an $80 million top-up receivable tied to the differential between cash received at roughly $30 per barrel and international prices reflected in entitlement invoices.
The Shaikan field’s crude discount to Brent narrowed to about $9 per barrel in H1 2026, down from $23–$27 before a September 2025 interim export agreement was extended through January 2027. Gulf Keystone’s net entitlement accounted for approximately 36% of Shaikan sales in the first half.
Management highlighted progress on the PF2 water handling project, slated for full start-up in Q1 2027, which is expected to add 4,000–8,000 bopd of incremental production and expand total field capacity to about 77,000 bopd. A draft field development plan targets more than doubling Jurassic production to roughly 85,000 bopd, testing the Triassic reservoir at up to 10,000 bopd, and eliminating routine gas flaring, with drilling anticipated to begin in H2 2027.
Gulf Keystone’s shares rose 9.6% to $201 following the results, extending gains from the prior close of $183.40. The stock remains 14.9% below its 52-week high of $234.50 but 24.7% above its 52-week low of $161.20.
