Capricorn Energy PLC

2025 production was just over 20,000 BOE/d on a working-interest basis, with 40% liquids weighting. OpEx increased slightly to $540 per BOE. The company invested $77 million in capital during 2025, collected $217 million, and ended the year with $103 million in cash net of facility debt, up $80 million year over year. Management also said it ended 2025 with an $86 million receivables balance and only $30 million outstanding on a ring-fenced junior facility, after repaying the senior facility early. For 2026, Capricorn guided to production of 18,000 to 22,000 BOE/d, liquids weighting of about 43%, OpEx of $5 to $7 per BOE, and capital spending of $85 million to $95 million. Management said it expects ratification of the new concession terms in the near term and said the ratification is important to unlock further development activity.

Randy Neely framed 2025 as a pivotal year in which Capricorn moved from turnaround toward growth, especially in Egypt. He emphasized the improved balance sheet, the collaborative relationship with Cheiron and EGPC, and the company’s ability to expand organically and through acquisitions in Egypt while also looking to the U.K. North Sea. His tone was confident but measured, repeatedly stressing that the company is now positioned to capitalize on the heavy lifting done over the past three years.

Eddie Ok focused on the financial cleanup and the practical impact on the 2026 plan. He highlighted $217 million of collections, an $86 million receivables balance, $103 million in cash net of debt, and the early repayment of the senior facility, noting that the company entered 2026 with a significantly improved balance sheet. He also tied 2026 spending of $85 million to $95 million to liquids-focused investment, said OpEx should improve to $5 to $7 per BOE, and reiterated that receivables collection with Egypt remains the principal financial risk, though he cited recent Egyptian ministerial commentary as supportive.

On M&A, management said it has not changed long-term assumptions based on recent oil price moves and generally looks for a reasonable return, typically starting at a 25% rate of return. On the merged concession, management declined to give a precise production or cash flow forecast, instead saying it provides running room and that the main risks are geological and the pace of payments/ratification, which management believes are mitigated by improved acreage runway and better EGPC relations. When asked about the biggest financial risk, Eddie Ok pointed to receivables collection from a single customer in Egypt, while stressing that government commentary suggests continued support for payments to IOCs.