NewMed Energy - Limited Partnership

NewMed Energy reported Q2 2026 revenue of about $293 million, net profit of about $117 million, and production of about 2.7 Bcm, versus Q2 2025 revenue of $191 million, net profit of $81 million, and production of around 2 Bcm. Management said the average gas price was $6.5 versus $5.6 in Q2 2025. Net revenues increased by $86 million year over year, including $59 million from higher production, $25 million from a higher average gas price per MMBtu, and $2.1 million from higher condensate sales, partly offset by $21 million of higher costs and expenses and $26 million of higher net finance expenses. Liquidity commentary included total net debt of approximately $1.4 billion and $550 million of available credit facilities from Israeli banks; the company also said it has bought back about $95 million under its bond buyback program. For forward outlook, management said gas prices should remain high in the next few months because Brent-linked pricing lags by about three months, Leviathan expansion Phase 1b is expected in the second half of 2029, and the FAJR+ compression project is expected toward year-end with the Nitzana pipeline ahead of Leviathan Phase 2.

The CEO’s message was that the quarter showed strong operating momentum, with higher production, strong pricing, and infrastructure projects moving ahead. He emphasized that the third pipeline and Ashdod-Ashkelon looping improve delivery capacity, and said the company is on track with Leviathan expansion and seeing good momentum at Aphrodite. His tone was upbeat and confident, especially around new capacity, project execution, and the upcoming seismic surveys at Zone I and Leviathan.

The CFO focused on the year-over-year bridge: revenue and profit improved because of higher gas volumes and prices, while higher operating costs, depreciation, and finance expenses reduced some of the upside. He cited $86 million of net revenue growth, $21 million of higher costs and expenses, and $26 million of higher net finance expenses tied mainly to the revaluation of Karish and Tanin royalties. He also noted $6.8 million of other revenues from a settlement related to the Iran license and $7.7 million of income from discontinued operations related to Tamar, plus total net debt of about $1.4 billion, $550 million of available bank credit, and about $95 million repurchased under the bond buyback program.

Analysts asked what milestones remain for an Aphrodite FID, and management said the key items are the commercial agreements, host-government agreements, midstream infrastructure, and completion of Chevron’s front-end engineering work. They also asked whether regional tensions could affect Leviathan expansion timing; management said Chevron is moving ahead with no hurdles or delays, long-lead items are ordered, and the drilling rig is expected on time or slightly early.