Seplat Energy Plc, a Nigerian independent energy company is targeting output of 200,000 barrels of oil equivalents (boe) a day by 2030, and pledges to pay investors a minimum of $120 million per annum in dividend, over the next 5-years.
Seplat disclosed this today as part of its Capital Markets Day, to update investors on its medium term vision for the business following the acquisition of Mobil Producing Nigeria Unlimited – MPNU (now known as Seplat Energy Producing Nigeria Unlimited – SEPNU), which was completed on 12 December 2024.
Seplat Energy is listed on both the Nigerian Exchange (NGX) and the London Stock Exchange (LSE).
The Company’s newly established 5-year targets, for the period 2026-2030, include:
- Target working interest production volume growth to ~200kboepd by 2030, an increase of approximately 50% on 6M 2025 reported production.
- Generate cumulative cash flow from operations (CFFO’) of approximately US$5.0 billion – $6.0 billion, a 2.5-3.0x increase on the prior 5-year period (2020-2024).
These targets will be delivered through increased expenditure and continued focus on operational and financial efficiencies, with the Company guiding to:
- Capex: US$2.5 billion – $3.0 billion capital expenditure representing approximately 50% operating cash flow reinvestment, including drilling 120-150 new wells and sanctioning up to three new gas projects.
- Opex: Target reducing operating costs to $10/boe by the end of the plan period (6M 2025: $12.5/boe). Achieved by implementation of cost efficiencies alongside production growth.
- Net leverage is expected to remain between 0.5x to 1.5x throughout the cycle, subject to the oil price averaging more than $50/bbl.
All targets are based on Seplat’s long-term business plan assumptions. The plan assumes the following product prices: Crude and Condensate $65/bbl, NGL/LPG $39/bbl, Gas $2.75/mcf.
New Dividend Policy
Seplat Energy new dividend policy, commits to return between 40% to 50% of Free Cash Flow (FCF) through the next cycle (2026-2030) to investors.
On its five-year base case forecast to 2030, the new policy targets returning a cumulative cash dividend to shareholders of $1.0 billion.
This is underpinned by a dividend commitment to return at least $120 million per annum (equivalent to 20c/shr per annum, or 5c/shr per quarter), as long as Brent averages over $50/bbl during a calendar year.
Additionally, the planned 3Q 2025 dividend will be raised by c.10% to 5.0 c/shr, reflecting the new base dividend commitment.
Roger Brown, Chief Executive Officer, said:
“Over the past decade we have successfully built expertise and a formula for value creation in Nigeria’s Energy sector. Since our IPO in 2014, this has delivered growth of approximately four times the reserves and operated production while returning over $700 million in dividends to shareholders. The performance of our new offshore assets in the first nine months that we have operated them, provides a clear indication that we have acquired a fantastic group of assets along with a highly competent and skilled workforce.
“Today we set out our roadmap to 2030, our vision for the medium term which will see us materially grow production and cashflow to drive significantly enhanced shareholder returns.
“The cornerstone of our ambition is the prolific reserves and resources in the ground. Alongside the CMD, we provide an updated CPR, which reflects more closely our view of asset potential. At our current equity holding in the offshore, the Company’s 2P reserves grow by 18% to 1.04 billion boe, while 2P+2C increases 90% to 2.3 billion boe. This provides Seplat Energy with a fantastic foundation from which we can create meaningful value for our shareholders and further contribute to Nigeria’s future prosperity.
“Nigeria is truly a land of opportunity with a young and fast-growing population, a vibrant economy and blessed with one of the world’s premier hydrocarbon provinces. Today is a launchpad for the future of Seplat; our vision, that we will deliver in partnership with our JV partner and other stakeholders, will see the Company continue to grow and play an increasingly important role in Nigeria’s energy sector well into the next decade.”
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