Seplat Energy (SEPL.L): 2Q SEPNU Farm-Down Supports Dividend Boost

Research evidence excerpt

Seplat Energy (SEPL.L): 2Q SEPNU Farm-Down Supports Dividend Boost

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30 Jul 2026 09:18:28 ET │ 11 pages

Seplat Energy (SEPL.L)

2Q SEPNU Farm-Down Supports Dividend Boost

CITI'S TAKE

Buy / High Risk SEPLAT's 2Q EBITDA ($567M) benefited from robust price realizations

alongside an improved operational performance qoq. These financial Price (29 Jul 26 16:30) £5.52

tailwinds see another special dividend and a targeted full year distribution Target price £6.65

of $270M (6% DY). This will be topped up using proceeds from the SEPNU Expected share price return 20.5%

farm-down to a 9% DY which, in our view, reflects the underlying Expected dividend yield 9.4%

confidence in the growth capacity of this business. Expected total return 29.9%

Market Cap £3,312M

2Q Summary — EBITDA of $567M was supported by higher oil price realizations in US$4,428M

the quarter ($102.6/b), alongside better uptime in onshore (particularly West, East

and Elcrest) as well as offshore (continued idle well strength). Healthy cash

generation allows for a $200M early repayment of the APF (balance is now $100M)

with ND/CFFO TTM falling to 0.3x and supporting the significant raise in Oliver G ConnorAC

distributions yoy.

+44-20-7986-4043

oliver.connor@citi.com

SEPNU Deal — The much awaited farm-down of 10% SEPNU to NNPC, sees

$281.6M proceeds on completion (expected in 2H26). This will see Seplat's 2030 Alastair R Syme

volume target adjusted to 170 kboepd (vs 200 kboepd previously) and net 2P alastair.syme@citi.com

reserves reduced by 13%. Whilst the headline value is in-line with what Seplat paid

Tianhong Bi, CFAfor the assets (i.e EV/2P of c$2/boe), the proceeds accelerate the company's

distribution plans with 50% earmarked for the dividend top up and the remainder to tianhong.bi@citi.com