Pearl Petroleum-Production restarted and KM250 fully online-05/14/2026

Research evidence excerpt

Pearl Petroleum-Production restarted and KM250 fully online-05/14/2026

Pearl Petroleum

CREDIT NEWSFLASH | 14 MAY 2026

Production restarted and KM250 fully online

Pearl delivered Q1 production of 125 kbd, close to last year’s 126 kbd despite production being suspended for a month due

to the Iran war. This implies production levels of ~190 kbd in the first two months, supported by the incremental production

from KM250. Positive to see production restarted in April. Q1 EBITDA of USD 266m was significantly above expectations,

largely driven by USD 137m of additional gas billing to the KRG following the reconciliation of historical gas sales during

2018–2024. Excluding this, EBITDA was broadly in line with Q1’25 despite the production shutdown. Free cash flow of USD

71m in the quarter (not including gas billing revenue). With KM250 fully operational, Pearl is set for significant production

uplift vs. last year, with strong cash conversion due to lower capex. Overall, a positive report from Pearl this morning with

the key takeaways being production restart and strong production figures with KM250 online.

Q1 2026 in detail

• Pearl delivered Q1 production of 125 kbd, broadly in line with Q1’25 at 126 kbd, despite production being suspended from 28 February,

with force majeure declared due to the Iran war. This implies impressive production levels of around 190 kbd for the first two months,

highlighting the uplift with KM250 fully online. Positive to see that Khor Mor production resumed in April

• KM250 is now fully in commercial operations, with Q1 marking the first full quarter (excl. production shutdown) after GSA2 sales started

in October 2025. During the quarter, KM250 delivered 17.1 bscf of gas under GSA2 and generated USD 72m of revenue, demonstrating