Gulf Keystone Petroleum Limited

Adjusted EBITDA increased 26% to $52 million in H1 2026 versus $41 million in H1 2025. Operating costs fell 25% to $20 million and other G&A expenses were 6% lower at $4.3 million. Free cash outflow was $2 million, net CapEx was $18 million, and the company paid a $12.5 million dividend in April while announcing a further $10 million interim semiannual dividend for September 2026. Gross average production was 14,600 bpd in H1 2026 versus 44,100 bpd in H1 2025. Management said the Shaikan discount to Brent was around $9/bbl in H1, and that the top-up receivable on the balance sheet is around $80 million net to GKP. No formal next-quarter or full-year financial guidance was reinstated; management said it was too early to give long-term guidance on discounts and CapEx remained discretionary depending on production and international pricing.

Jon Harris framed the quarter as a resilience story, emphasizing safety, balance sheet protection and the ability to restart quickly after shutdowns. He said the company’s priority is to get back to full production, unlock full PSC entitlement at international prices, and use that to support cash flow growth and a return to production growth in 2027. His tone was cautiously optimistic but conditional on the regional security environment remaining stable.

Gabriel Papineau-Legris highlighted that lower spending and costs helped offset the production disruption, with adjusted EBITDA up to $52 million, operating costs down to $20 million, and free cash outflow held to $2 million. He said the working capital outflow mainly reflects the gap between cash received at about $30/bbl and the international prices in entitlement invoices, creating a top-up receivable of about $80 million net to GKP. He also said the board is maintaining financial flexibility, pointing to the $10 million September dividend, the prior $12.5 million dividend, and the ability to reduce CapEx further if needed.

Analysts pressed on reserves, restart timing, receivables recovery and 2027 drilling plans. Management said the 2P reserve life of 27 years assumes a production ramp-up within the license period, and they do not expect the temporary shutdowns to materially change reserves. On receivables, Gabriel said the Q4 2025 true-up is now validated and the priority is to recover it through additional September liftings, while historical 2022-2023 receivables remain part of ongoing discussions with the MNR. On drilling, Jon said the company is tendering for a rig now and expects a possible start in H2 next year, with strong preference to have the FDP agreed first but drilling potentially possible without it.