Meren Energy Inc (TSX:MER, STO:MER, OTCQX:MRNFF) announced that it has raised its 2026 financial guidance after reporting $219.5 million in first-half EBITDAX and $139.4 million in cash flow from operations before working capital.
The company increased its full-year EBITDAX guidance midpoint to $410 million from $315 million, while raising its cash flow from operations midpoint to $247.5 million from $220 million.
Meren reported second quarter net income of $31.8 million, compared with $3.1 million a year earlier.
First-half working-interest production averaged 27,700 barrels of oil equivalent per day, while entitlement production averaged 30,500 boepd. Unit operating costs were $14.50 per barrel of oil equivalent on an entitlement basis.
The company said production from Agbami recovered to its highest level since its 2025 turnaround, supported by the continued post-maintenance ramp-up.
Meren also declared its third quarterly dividend of $25.1 million, or $0.0371 per share, bringing year-to-date distributions to $75.3 million.
The company ended the first half with $77.7 million in cash and net debt to EBITDAX of 0.5 times. Total liquidity stood at $319 million.
First-half capital investments totaled $23.6 million, with most spending directed toward Nigerian operations. The company said the remainder of its full-year capital programme is weighted toward the second half as drilling activity begins.
In Namibia, Meren said TotalEnergies continued to advance the Venus development in Block 2913B, in which the company has an effective interest of approximately 3.8% through its shareholding in Impact Oil & Gas. Front-end engineering and design has been completed and a final investment decision remains targeted for 2026, subject to ongoing discussions with the Namibian government on fiscal terms.
Meren CEO Oliver Quinn said the company's production assets performed in line with expectations and continued to deliver reliable, low-cost production.
"A strong first-half performance and a constructive outlook for the rest of the year has enabled us to tighten production guidance and raise our EBITDAX and CFFO guidance," Quinn said in a statement.
“This demonstrates our strategy in action: a resilient, low-cost production base complemented by a disciplined capital allocation framework that balances investment in growth, financial resilience and shareholder returns."
Meren said its Nigeria drilling campaign is expected to begin in the fourth quarter of 2026, with well interventions on the Akpo and Egina fields planned to support and sustain production ahead of the broader drilling programme.
Shares of Meren gained over 7% on Wednedsay morning.