TGS (AO) | Reduce | A disposal to support the balance sheet (A2D)

Research evidence excerpt

TGS (AO) | Reduce | A disposal to support the balance sheet (A2D)

News comment

Release date: 09 July 2026

Kevin Roger

Head of Energy Equipment and Services

+33 1 53 65 36 74

kroger@keplercheuvreux.com

ReduceTGS

Norway | Energy equip. & services Beta Profile: MCap: NOK26.2bn

Target Price: NOK60.00 Bloomberg: TGS NO Reuters: TGS.OL

Current Price: NOK133.50 Free float 100%

Up/downside: -55.1% Avg. daily volume (NOKm) 188.2

YTD abs performance 45.7% Market data: 08 July 2026

52-week high/low (NOK) 159.00/70.05

A disposal to support the balance sheet (A2D)

Key points:

TGS announced the disposal of its North American well data products business (A2D) to Enverus, for a purchase price of USD100m

(payable at the closing) and USD15m additional earn-out. We assume an EV/EBITDA ratio close to 5x. TGS explains this disposal:

"The North American onshore geological business has become less strategic to TGS’s long-term priorities".

The cash will be used to reduce the net debt. TGS underlines that this is " to pursue higher capital returns to shareholders over

time, in line with the company’s financial priorities and capital allocation strategy"

At the end, TGS is selling a non-core business, at a good price: 5x EV/EBITDA, while the company is trading close to 3-3.5x

EV/EBITDA based on consensus and closer to 4x based on our forecast. In our model, the group's 2026 FCF post-lease is limited to

c.USD20m in 2026E, while the dividend amount is close to USD130m. The disposal will allow TGS to keep its net debt stable at the

end of 2026, close to USD440m pre-IFRS16.

We have a Reduce on the name.

Disposal of the A2D US onshore business for USD100m cash (+USD15m earn-out).

TGS announced yesterday evening the disposal of its North American well data products business (A2D) to Enverus, for a