Capricorn Energy Update: Pre-close action on the rise

Capricorn Energy PLC is gearing up to share its full year results for 2025 at the end of March, but in the meantime, they’ve given a pre-close update on how things are looking. Randy Neely, the Chief Executive, is optimistic about the company’s momentum going into 2026. They ended 2025 with a strong exit rate of 21,003 barrels of oil equivalent per day (boepd) and a solid financial position, setting them up for success in the coming year.

Throughout 2025, Capricorn focused on maximizing the value of their existing assets while also working on securing an integrated concession agreement with EGPC and partners in Egypt. They were busy drilling 18 development wells across their portfolio, with promising results in key areas like North Um Baraka (NUMB) and South East Horus (SEH). In Egypt alone, they brought in $217 million in revenue, putting them in a healthy financial state with just $86 million in accounts receivable by the end of the year, the lowest it’s been since 2022. This financial stability allowed them to repay the Senior Debt Facility early, leaving them with a manageable Junior Debt Facility balance of $30 million to be paid off over the next three years.

Looking ahead, Capricorn is focused on supporting the Operator of their Egyptian assets by providing guidance on development activities, production enhancement opportunities, and exploration endeavors. They have high hopes for the future in Egypt, especially with the anticipated ratification of their consolidated concession agreement in the first quarter of 2026. This agreement opens up the possibility for expanded operations in Egypt, driven by improved terms that could bring significant value to shareholders. In addition to this, Capricorn is keeping an eye out for potential M&A opportunities that could further add value to their portfolio.

Financially speaking, Capricorn had a successful year in 2025, with revenues hitting $119 million and production costs of $39 million. They ended the year with a healthy cash balance of $103 million and anticipates a net cash inflow of $81 million from their Egypt operations after capital expenditures. With a focus on operational efficiency and financial stability, Capricorn remains committed to delivering value to their shareholders.

Operationally, Capricorn saw strong production performance in 2025, driven by developments in key areas like Badr El Din (BED) and successful waterflood programs in the BED field area. Their exploration efforts in areas like SEH, West El Fayoum (WEF), and NUMB yielded positive results, leading to continued exploration activities in NUMB and SEH while exiting the WEF concession.

Looking at the year ahead, Capricorn is optimistic about their production outlook, with guidance set between 18,000-22,000 boepd. They anticipate challenges such as planned maintenance shutdowns and uncertainties surrounding changes in working interest on the North East Abu Gharadig (NEAG) asset. Despite these challenges, Capricorn is prepared to navigate them and drive continued success in their operations in Egypt and beyond.