Jefferies upgraded Energean from "underperform" to "hold" and increased its price target for the London‑listed shares by 18% to 800 pence. For the Tel Aviv‑listed shares, the target was raised to 32 Israeli shekels from 27.30 shekels. The firm also lifted its net asset value estimate by 52% to 910 pence per share.
In its May trading update, Energean revised its 2026 group production guidance down by 10,000 barrels of oil equivalent per day to a range of 130,000–140,000 boepd. The cut was mainly due to a 41‑day suspension at the Karish field in April and May caused by geopolitical tensions. The company estimates that 63% of its projected 134,000 boepd output in 2026 will be tied to fixed‑price gas for domestic use in Israel.
The second oil train on the Karish floating production, storage and offloading vessel was commissioned in July 2026, raising total liquids processing capacity from 18,000 barrels per day to 31,000 barrels per day. Jefferies expects production to grow year‑on‑year after this commissioning and anticipates a material fall in capital expenditure in 2027 once the Katlan development is completed.
Capital expenditure guidance was revised upward by $60 million to a range of $800 million to $860 million. Jefferies projects year‑end 2026 net debt of $3.5 billion, which is slightly above consensus ($3.4 billion) and the company’s own guidance range of $3.25–$3.35 billion, driven by continued investment in the next phase of the Karish gas field. Consequently, the EV/EBITDA‑implied target fell 9% due to the higher debt, while the EV/EBITDA multiple remained unchanged at 4.75 times. Energean is scheduled to report interim results on September 9.
