PTT Exploration: Cashing in

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PTT Exploration

Cashing in

Maintain Rating: BUY | PO: 155.00 THB | Price: 149.00 THB

2Q26 is PTTEP’s quarterly record-high

03 August 2026

PTTEP printed a quarterly record-high in 2Q26. A confluence of high oil prices and solid

volume more than offset higher unit cost, pushing core 2Q26 NPAT to Bt24.3bn (against

our estimate of Bt23.5bn and 1Q26’s Bt19.8bn). A net non-recurring item of Bt2.8bn

(comprising a reversal of unrealized hedging loss of Bt3.1bn and a forex loss of

Bt228mn) further boosted reported 2Q26 NPAT to Bt27.2bn (versus our estimate of

Bt26.8bn), which is PTTEP’s quarterly record-high. This brought core 1H26 NPAT to

Bt44.1bn (56% and 58% of our 2026 earnings estimate and the consensus forecast).

Equity

Solid volume, still-low unit cost, and higher pricing

Stock Data

Sales volume was 556,882bbl/d (+3.6% QoQ, +10.3% YoY), which excludes sales volume

of projects (Tuat and SK408) which are equity-accounted. Stronger-than-expected

demand for Gulf of Thailand (GoT) gas to fill in an imported LNG gap continued from 1Q

into 2Q. This along with higher sales volume from S1 and Algeria projects were the

booster. Realized price in 2Q was strong at US$52.9/bbl against 1Q26’s US$46/bbl.

Liquid price was US$99.5/bbl against Dubai price of US$95.9/bbl, implying a premium of

US$3.4/bbl. Realized liquid prices are usually at a discount (US$2-3/bbl). Liquid premium

was abnormal, caused by a sharp oil price swing and a pricing lag impact. The gas price

has been more resilient against oil price volatility and came in at US$5.96/mmbtu in

2Q26 against 1Q26’s US$5.8/mmbtu. Total E&P unit cost increased QoQ to

US$29.8/bbl on a GoT 5 exploration dry well write-off (US$43mn) and higher unit

depreciation cost due to additional asset completion.

Solid financial footing

PTTEP posted free cash flow of US$598mn, and sits on cash of Bt86.4bn (US$2.5bn).

The net debt to equity ratio remained low at 0.1x at end-2Q26. PTTEP declared 1H26

DPS of Bt4.5 (Bt4.1 in 1H25). In the past five years, 2H DPS has been higher than 1H

DPS. We maintain Buy on high prospective dividend yield and the net positive impact

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