Capricorn Energy PLC

2025 production was just over 20,000 BOE/day on a working interest basis, with 40% liquids weighting. OpEx increased slightly to $540 per BOE. Capricorn invested $77 million in capital during 2025 and recorded $217 million of collections, ending the year with an $86 million receivables balance, $103 million in cash net of facility debt, and year-over-year cash up $80 million. The company said it repaid the senior facility early and had only $30 million outstanding on a ring-fenced junior facility. For 2026, management guided to production of 18,000 to 22,000 BOE/day, liquids weighting of about 43%, OpEx of $5 to $7 per BOE, and capital spending of $85 million to $95 million. Management also said two turnarounds will affect full-year production, and ratification of the merged concession is expected in the near term.

Randy Neely framed 2025 as a pivotal year that showed Capricorn had moved from turnaround toward growth, especially in Egypt. He emphasized that the company is now near debt-free, has stronger relationships with Cheiron and EGPC, and is positioned to grow both organically in Egypt and through opportunities in the U.K. North Sea. His tone was confident but cautious, repeatedly noting that the potential offer process remains uncertain and he could not comment beyond prior statements.

Eddie Ok focused on the improved financial position and the operating bridge into 2026. He said the company generated $217 million of collections in 2025, ended with $103 million in cash net of facility debt, and reduced outstanding debt to $30 million on the junior facility after repaying the senior facility early. He also guided 2026 OpEx to $5 to $7 per BOE, capital to $85 million to $95 million, and production to 18,000 to 22,000 BOE/day, with the lower range reflecting two planned turnarounds.

On M&A, management said it is not changing its long-term oil price assumptions yet and typically starts with a 25% rate of return hurdle. On the merged concession, Geoff Probert said Capricorn is not forecasting cash flow or production uplift precisely, but sees the new terms as giving it room to grow, while key risks remain geological and, more importantly, timely EGPC payments. Eddie Ok said the main financial risk investors may overlook is receivables collection, though he pointed to recent ministry comments as evidence of continued commitment to pay IOC receivables.