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Ithaca Energy has increased its forecast for dividend payments in 2026 following a record Q2 production run. The company now anticipates paying between $500 million and $530 million in dividends, up from the previous range of $470 million to $520 million. This comes after the group reported a strong first-half net profit of $127 million.

Jefferies analysts noted that the Q2 earnings imply a dividend of approximately $60 million, falling short of a modest consensus estimate of $109 million for the period. Shares of Ithaca Energy surged roughly 5% in early London trading following the news.

The company's first-half EBITDAX reached $1.12 billion, driven by record production of 131,000 barrels of oil equivalent (boed) in the second quarter, a 4% increase from the previous quarter and a 48% gas-weighted rise. Ithaca's total production for the first half of the year totaled 128,000 boed per day, up from 124,000 boed the previous year.

Net debt has been reduced to $1.02 billion, with leverage now at 0.49 times. The firm also reported substantial cash reserves of $1.9 billion as of June 30, an increase from $1.6 billion at the end of the first quarter, primarily due to lower net debt and a €155 million bond issuance in the second quarter.

Ithaca has reaffirmed its production guidance for 2026, aiming for 120,000 to 130,000 boed, slightly below the consensus estimate of 126,000 boed. The company lowered its operating expense guidance to a range of $800 million to $840 million from the previous $820 million to $860 million, citing improved operating expenses per barrel to $17 to $19.

Net capital expenditure, excluding the Rosebank project, remains stable at $600 million to $700 million, although some Rosebank spending has been moved to 2027, reducing the full-year 2026 Rosebank capex to $250 million to $280 million. Decommissioning costs are still expected to range between $170 million and $210 million, while cash tax guidance remains consistent at $290 million to $340 million.

Looking forward, Ithaca Energy remains committed to an active but cautious approach to mergers and acquisitions (M&A), both domestically in the UK Continental Shelf (UKCS) and internationally, as part of its strategic expansion plan.