Energean, a gas producer focused on the Eastern Mediterranean, has reduced its 2026 production forecast and dividend following a 41-day shutdown of its Israeli operations that significantly impacted its first-quarter results. The company's production in the first quarter fell 21% year-on-year to 114 thousand barrels of oil equivalent per day (boed), leading to a 65% drop in net profit. As a result, Energean declared a dividend of $0.10 per share for the quarter, down from $0.30 in the previous quarter. The company now anticipates full-year output to be between 130 and 140 thousand boed, a reduction from its earlier forecast of 140 to 150 thousand boed. The Israeli production outlook was specifically lowered to 98 to 104 thousand boed from 108 to 114 thousand boed.
The shutdown, which occurred between February 28 and April 9, 2026, was mandated by Israel's Ministry of Energy and Infrastructure due to geopolitical escalations. Energean's power floating production vessel resumed operations on April 9 and reached full capacity within 48 hours. The company reported first-quarter revenue and other income from production activities of $288 million, down from $407 million in Q1 2025, and adjusted EBITDAX of $184 million, a decrease from $278 million in Q1 2025.
Despite the immediate challenges, Energean CEO Mathios Rigas emphasized the company's compelling organic growth outlook, mentioning two near-term exploration catalysts in Greece and Egypt. Development projects in Israel and Croatia are still on schedule for first gas in the first half of 2027. Energean is also partnering with ExxonMobil and Helleniq Energy for natural gas exploration in Greece's Ionian Sea. Peel Hunt analysts noted that Energean's operational recovery, stable balance sheet, and advancing growth projects underpin its positive outlook. While the Israel shutdown resulted in an estimated $10 million per month expenditure to keep operations on standby, the company reported robust liquidity, with cash and cash equivalents reaching $307 million by April 30, 2026, following a $125 million payment from Egypt for receivables. Energean aims to optimize its Egyptian portfolio by merging three concessions by late June and has secured a drilling rig for 2027 to support future growth drilling.
The company has also diversified its portfolio by acquiring a stake in a Chevron-operated Angolan offshore oilfield, while cautiously avoiding aggressive expansion through mergers and acquisitions amid high commodity prices. Energean's strategic moves include plans to supply 1 billion cubic meters of gas annually from Israel to Egypt via a planned pipeline, viewing Egypt as central to its growth despite past payment challenges that are now largely resolved. The company's net debt was $3.325 billion with a leverage of 3.2x as of Q1 2026, which decreased to $3.275 billion by April 30, 2026.
