Loading...
01/11 11:31
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A reveal a positive outlook: reduced CapEx, cost savings, increased production, and strategic hedging. Despite some operational issues, management's proactive measures to address debt and optimize costs are well-received. The market strategy and shareholder return plans are promising, with potential for increased cash flow and production gains. The market cap indicates moderate volatility, supporting a positive sentiment prediction.
Gross production at Jubilee Around 10,000 barrels of oil per day from the first producer well of the 2025/26 drilling campaign, which came online in July.
Gross oil production at Jubilee 62,500 barrels of oil per day in the third quarter, a 13% increase quarter-over-quarter due to the new well coming online.
Gross gas production at Jubilee 15,000 barrels of oil equivalent per day in the third quarter, lower sequentially due to extended scheduled maintenance of the onshore gas processing plant.
Gross LNG cargos lifted at GTA 6.8 cargos during the third quarter, with production ramping up to 2.6 million tonnes per annum equivalent.
Net production at GTA 11,400 barrels of oil equivalent per day in the third quarter, a 60% increase from the previous quarter.
Net production in the Gulf of America 16,600 barrels of oil equivalent per day in the third quarter, driven by strong performance from Odd Job and Kodiak.
Net production in Equatorial Guinea 6,200 barrels of oil per day in the third quarter, down quarter-over-quarter due to subsea pump issues.
CapEx $67 million in the third quarter, lower than guidance, with year-to-date CapEx under $240 million. Full-year CapEx is expected to be below the $350 million forecast, a year-over-year reduction of $500 million.
Operating costs Down almost 40% quarter-over-quarter, with improvements across all business units.
Overhead savings On track to deliver $25 million in targeted savings by the end of the year, with full benefits seen in 2026 and beyond.
Jubilee Producer Well: The first producer well of the 2025/26 drilling campaign came online in July, delivering 10,000 barrels of oil per day. A second producer well is expected online by year-end. The campaign has been expanded to include 5 wells in 2026 while staying within the original budget.
GTA Production: Production ramped up with 13.5 gross LNG cargos lifted by October and the first condensate cargo added as a new revenue source. Production is targeted to reach the FLNG nameplate capacity of 2.7 million tonnes per annum by year-end.
Gulf of America Developments: Progress on Tiberius and Gettysburg developments continues, with Tiberius expected to take FID in 2026.
GTA LNG and Condensate Market: The first condensate cargo was lifted and priced at a small discount to Brent, adding a new revenue stream. LNG production is expected to nearly double in 2026.
Cost Reductions: CapEx is expected to be below the $350 million forecast for the year, reflecting a $500 million year-on-year reduction. Overhead savings of $25 million are on track, and operating costs are decreasing across all businesses.
Operational Efficiencies in GTA: Unit costs are improving as production ramps up, with a targeted 50% reduction in unit costs by 2026.
Balance Sheet Resilience: A $250 million term loan from Shell was secured to address debt maturities, and additional hedges were added for 2026 to protect against commodity price volatility.
Jubilee License Extension: The license extension is expected to be completed by year-end, enabling long-term investment and a material uplift in 2P reserves.
Commodity Price Volatility: The company is navigating ongoing commodity price volatility, which could impact revenue and profitability.
Debt Maturities: Upcoming debt maturities, including the 2026 bond maturities, require proactive management to avoid liquidity issues.
Operational Costs: While costs are being reduced, there is still a need to further lower operating costs, particularly in the GTA project.
Production Challenges: Production in some areas, such as Equatorial Guinea, has been impacted by subsea pump issues, and there are risks associated with maintaining production levels.
Winterfell-4 Well Abandonment: The abandonment of the Winterfell-4 well due to production casing collapse highlights operational risks and potential resource underutilization.
Regulatory Approvals: The Jubilee license extension requires government approval, which could delay long-term investment plans.
Maintenance and Downtime: Scheduled and unscheduled maintenance activities have caused production downtime in various regions, impacting output.
Hedging Limitations: While hedging strategies are in place, they may not fully protect against significant commodity price drops.
Economic Uncertainty: Global economic conditions and market uncertainties could impact demand and pricing for oil and gas.
Production Growth: Production is expected to increase significantly through 2026, with Jubilee production materially higher due to the addition of new wells and improved water injection. GTA production is targeting nameplate capacity of 2.7 million tonnes per annum by the end of 2025, with potential for cargo count in 2026 to nearly double compared to 2025.
Cost Reductions: CapEx for 2025 is expected to be below $350 million, with further reductions in operating costs and overhead anticipated into 2026. GTA unit costs are projected to fall by over 50% in 2026 due to rising production and a lower-cost operating model.
Capital Expenditures: The capital program for 2026 will focus on Jubilee drilling, with plans to stay within or below the 2025 budget to maximize cash generation and reduce leverage.
Balance Sheet and Liquidity: The company has secured a $250 million term loan from Shell to address upcoming debt maturities and is actively working on additional liquidity solutions. Leverage is expected to improve significantly in 2026 as production and cargo sales increase.
Future Developments: FID and farm-down for the Tiberius project are planned for 2026, with Gettysburg development also progressing. Phase 1+ expansion of GTA is targeting online in 2029, which will materially increase production volumes.
The selected topic was not discussed during the call.
The earnings call summary and Q&A reveal a positive outlook: reduced CapEx, cost savings, increased production, and strategic hedging. Despite some operational issues, management's proactive measures to address debt and optimize costs are well-received. The market strategy and shareholder return plans are promising, with potential for increased cash flow and production gains. The market cap indicates moderate volatility, supporting a positive sentiment prediction.
The earnings call highlights strong financial metrics, production growth, and cost reduction initiatives, which are positive indicators. The Q&A session addressed concerns about decline rates and cost reduction strategies, with management providing satisfactory responses. Despite some lack of clarity on specific financial details, the overall sentiment is positive due to the optimistic guidance and strategic plans for production and cost management. The market cap suggests a moderate reaction, leading to a positive prediction for the stock price over the next two weeks.
The earnings call presents a mixed outlook: significant CapEx reduction and production growth plans are positive, but missing EPS expectations and heightened market volatility pose risks. The absence of a share buyback or dividend plan further limits positive sentiment. The Q&A section reveals potential in production capacity but lacks clarity on CapEx guidance and timelines, adding uncertainty. Given the company's mid-sized market cap, the stock price is likely to remain neutral, with minor fluctuations as investors weigh positive production capacity developments against financial and market risks.
The earnings call reflects mixed signals: positive aspects include reduced CapEx, increased production guidance, and hedged oil production. However, challenges like production issues, higher OpEx, and lack of shareholder returns are concerning. The Q&A reveals management's focus on debt reduction and free cash flow, but unclear responses on regulatory impacts and growth CapEx create uncertainty. The market cap suggests moderate reaction, leading to a neutral outlook.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
