Canada's Meren Energy Q3 net income, EBITDAX fall

Overview

• Canada upstream oil and gas producer's Q3 net income dropped sharply yr/yr

• Q3 EBITDAX declined modestly compared to prior year

• Company declared Q4 dividend of $25.1 mln

Outlook

• Meren raises 2026 EBITDAX guidance to $390 mln–$440 mln from $270 mln–$360 mln

• 2026 capital investments now seen at $70 mln–$90 mln, below prior $100 mln–$140 mln range

• Company expects 2026 WI production of 25,000–27,000 boepd and entitlement production of 29,000–31,000 boepd

Result Drivers

• HEDGING LOSSES - Co recorded a $35.3 mln loss on commodity risk management contracts in Q3, including $13.1 mln realized

• HIGHER REALIZED OIL PRICES - Co sold two cargoes at an average realized price of $92.4/bbl, above the average Brent price during the period

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Meren Energy Inc. is C$2.50, about 30.2% above its November 9 closing price of C$1.92

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 9 - Canada's Strathcona Resources Q3 production rises sequentially, raises quarterly dividend

• Nov 9 - Canada's Greenfire Q3 bitumen output more than doubles after Connacher deal

• Nov 9 - Canada's Peyto Exploration Q3 production rises on capital program

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)