Meren Energy Inc (TSX:MER, STO:MER, OTCQX:MRNFF) reported strong first-quarter operating cash flow and reaffirmed its 2026 production guidance, positioning itself to benefit from growing demand for non-Middle East crude supplies as geopolitical tensions reshape global energy markets.
The company, which holds deepwater oil and gas assets offshore Nigeria and exposure to Namibia’s emerging Orange Basin, posted EBITDAX of $100.2 million for the three months ended March 31, while cash flow from operations before working capital reached $79 million. Meren also declared its second quarterly dividend of 2026 totaling about $25.1 million, bringing year-to-date shareholder distributions to $50.2 million.
CEO Oliver Quinn said recent disruptions to Middle Eastern oil flows had highlighted the strategic importance of West African offshore production.
“As international buyers seek alternatives to Middle Eastern supply routes, West Africa's deepwater basins are emerging as a strategically vital source of secure and reliable hydrocarbons,” Quinn said in a statement.
The company said it remained on track to meet its full-year production outlook after recovering from planned maintenance work at the Agbami field in late 2025. First-quarter working interest production averaged 28,400 barrels of oil equivalent per day (boepd), while entitlement production reached 31,000 boepd.
Meren also strengthened its financial position during the quarter by refinancing its reserve-based lending facility, increasing commitments to $600 million with an accordion feature of up to $1 billion and extending the maturity to 2032. The company ended the quarter with cash of $161.6 million and a net debt-to-EBITDAX ratio of 0.5 times.
Although the company reported a net loss of $42.2 million, this was largely driven by non-cash derivative revaluations tied to rising oil prices. Excluding hedging and associate-related losses, Meren said its adjusted net loss was limited to $13 million.
Meren Energy Inc. outlined growth plans across Nigeria, Namibia, South Africa and Equatorial Guinea, with drilling activity expected to resume at the Akpo and Egina fields in Nigeria later this year and new production targeted for early 2027. The company also highlighted the Akpo Far East prospect, estimated to hold 143.6 million barrels of oil equivalent.
In Namibia, the Venus offshore project operated by TotalEnergies continued advancing toward a potential final investment decision by late 2026.
The company maintained its full-year 2026 guidance, forecasting working interest production of 23,000 to 28,000 boepd and EBITDAX of between $270 million and $360 million, based on an assumed Brent crude price of $63 per barrel.