On Thursday, September 18, 2025, Seplat Energy Plc held its Capital Markets Day to brief investors on its medium-term vision following the landmark acquisition of Mobil Producing Nigeria Unlimited (now Seplat Energy Producing Nigeria Unlimited – SEPNU), completed on December 12, 2024.
At the event, the Company outlined ambitious five-year targets (2026–2030):
- Production Growth: Increase working-interest production to ~200 kboepd by 2030, representing ~50% growth over H1 2025 production.
- Cash Flow: Generate cumulative operating cash flow (CFFO) of US$5.0–6.0 billion, a 2.5–3.0x increase compared to the 2020–2024 period.
Delivery Strategy
Seplat Energy plans to achieve these targets through disciplined investment and operational efficiencies:
- Capex: US$2.5–3.0 billion (approx. 50% of operating cash flow), including 120–150 new wells and up to three new gas projects.
- Opex: Reduce operating costs to US$10/boe by 2030 (from US$12.5/boe in H1 2025), driven by efficiency initiatives and production growth.
- Balance Sheet: Maintain net leverage between 0.5x and 1.5x, assuming Brent crude averages above US$50/bbl.
Key Assumptions
- Crude/Condensate: US$65/bbl
- NGL/LPG: US$39/bbl
- Gas: US$2.75/mcf
New Dividend Policy
Seplat introduced a revised dividend policy, committing to return 40–50% of Free Cash Flow (FCF) to shareholders during 2026–2030. Based on its base case projections, the Company targets cumulative dividends of US$1.0 billion over the period.
The new framework guarantees a minimum dividend of US$120 million annually (20c/shr or 5c/shr quarterly), provided Brent crude averages above US$50/bbl. In line with this, the Q3 2025 dividend will rise ~10% to 5.0c/shr.
CEO’s Remarks
Roger Brown, Chief Executive Officer of Seplat Energy, said:
“Over the past decade, Seplat has built a proven track record of value creation in Nigeria’s energy sector. Since our 2014 IPO, we have quadrupled reserves and operated production while distributing over US$700 million in dividends. The performance of our new offshore assets in just nine months highlights the strength of this acquisition and the quality of our workforce.
Today, we outline our roadmap to 2030—a vision anchored on Nigeria’s prolific reserves and resources. With our updated CPR, our offshore equity holding increases 2P reserves by 18% to 1.04 billion boe and 2P+2C by 90% to 2.3 billion boe. This positions Seplat to deliver long-term value for shareholders while contributing significantly to Nigeria’s energy future.
Nigeria remains a land of immense opportunity, with its young population, vibrant economy, and world-class hydrocarbon resources. This strategy launch marks a new chapter for Seplat Energy as we strengthen our role in Nigeria’s energy sector for the next decade and beyond.”
Source: Fundvine Capital & Securities
