Galp Energia: 2Q TS - Quarter in line; Downstream merger moving forward...remains part of an active 2H pipeline

Research evidence excerpt

Galp Energia: 2Q TS - Quarter in line; Downstream merger moving forward...remains part of an active 2H pipeline

J P M O R G A N Europe Equity Research

14 July 2026

Galp Energia Overweight

GALP.LS, GALP PL

2Q TS - Quarter in line; Downstream merger moving Price (13 Jul 26):€19.86

forward...remains part of an active 2H pipeline Price Target (Jun-27):€22.00

Our Take – Still well placed for 2H. Galp’s trading statement outlines in line with European Oil & Gas

ACJPMe 2Q operational data and updates on downstream merger discussions with Matthew Lofting, CFA

Moeve. On the latter, the parties appear well aligned. Time to a potential agreement (44-20) 7134-6301

has modestly shifted right (2H vs. around mid-year) but this appears due process matthew.lofting@jpmorgan.com

rather than red flag led and Galp cites potential for significant value creation. This Tianyu Wu

suggests fruition of a transaction and associated organisational restructuring (44-20) 3493-1281

remains part of an attractive and non-oil price dependent 2H catalyst pipeline tianyu.wu@jpmorgan.com

J.P. Morgan Securities plc

which is core to our OW rating. On 2Q, the update screens as supportive of a €1.2bn

EBITDA pre-TS; 1) upstream production 127kboe/d meets our estimate and puts Specialist Sales contact details:

1H volumes firmly in the upper half of a 125-130 FY guidance range, with

Ian Mitchell - Specialist Sales -

Bacalhau (Brazil) ramping strongly into 2H; 2) downstream - refining indicators European Energy

are solid, midstream strong and we continue to anticipate a partial reversal of (44-20) 7134-1356

adverse prior quarter pricing lags (1Q: >€100m). This continues to setup FY O&G ian.e.mitchell@jpmorgan.com

production, EBITDA guidance to be raised with 1H results late July (JPM: top/