Kistos, an independent energy company focused on unlocking value within its existing portfolio and through value-accretive M&A, has provided an operational and unaudited financial update for the nine-month period ended 30 September 2026.
Highlights
Production
- Year-to-date pro forma production(1) to 30 September 2026 of approximately 20,000 boepd (H1 2026: 20,800 boepd), with third quarter (Q3) 2026 pro forma production of approximately 18,500 boepd reflecting the planned turnaround of the Jotun FPSO
- Guidance for FY26 pro forma production(1) is maintained at 19,000-21,000 boepd
Operational and corporate
- High operational uptime across the UK and Dutch portfolios, with year-to-date production efficiency of approximately 95% in the Greater Laggan Area (GLA) and 93% at the Q10-A platform
- In Norway, the Jotun FPSO completed a 26-day planned turnaround in July 2026
- Start-up of the final two Balder Phase V wells was completed in July 2026, and the King well, drilled from the Ringhorne platform, came on stream in August 2026, ahead of schedule
- Post period end, announced the signing of an agreement with Vår Energi on 14 October 2026 to acquire a 10% working interest in PL 169E, PL 956 and PL 956B for upfront consideration of $12.9 million (effective date 1 January 2026), adding 4.3 MMboe net (2P reserves and 2C resources combined) and aligning Kistos's interests across the Balder Area. Completion is subject to Norwegian Ministry of Energy approval
- In the Netherlands, the planned annual turnaround on the Q10-A platform was completed on schedule and below budget, together with a successful jacket integrity inspection campaign
- In the GLA, now operated by Serica Energy, production has continued according to plan with no major planned turnarounds scheduled during 2026. The Adura-owned and operated Victory field continues to produce as expected, increasing throughput at the Shetland Gas Plant and reducing GLA unit operating costs
Oman Acquisition Update
- Completion of the acquisition of Blocks 3 & 4 occurred on 14 September 2026, with the interest to be consolidated in the Group's results from 1 October 2026. Production is close to plan, supported by new oil from the Safi and AGW areas
- Completion of Block 9, which is under a different EPSA framework, is anticipated in Q4 2026. The operator is increasing activity, having added a fifth drilling rig following the revised EPSA terms which became effective 1 July 2026
- Both Blocks 3 & 4 and Block 9 transactions have a 1 January 2025 effective date
Financial Update
As at, and for the nine months ended 30 September 2026 (unaudited):
- Estimated pro forma EBITDA(2) of c.$280 million, including c.$75 million from Oman
- Q3 2026 pro forma EBITDA was lower than Q2 2026, reflecting a build-up of oil and gas inventories and lower production during planned summer turnarounds
- Average realised prices (excluding Oman) of $95/bbl for oil and 113p/therm for gas, reflecting the Group's unhedged exposure to currently elevated oil and gas prices
- Capital expenditure of c.$120 million, excluding Oman, with Q3 2026 reflecting peak activity during the summer offshore campaign, including the completion and start-up of the final Balder Phase V wells and the King well
- Cash and near cash(3) of $165 million (30 June 2026: $259 million), as strong cash generation was offset by the completion payment for the Oman Blocks 3 & 4 acquisition (which remains subject to final completion adjustments), significant capital expenditure and c.$32 million of debt repayment
- Adjusted net debt(4) as at 30 September 2026 of $101 million (30 June 2026: $23 million)
Andrew Austin, Executive Chairman of Kistos, commented:
'The third quarter marked an important step in our growth strategy, with the completion of our acquisition of Blocks 3 & 4 in Oman and completion of Block 9 expected by the end of the year. Production in the quarter was impacted by the planned turnaround on the Jotun FPSO but, with the final Balder Phase V wells and the King well now on stream, we remain on track to deliver production within our 2026 pro forma guidance range of 19,000-21,000 boepd. The structure of the Omani offtake agreement means that in the event that oil prices fall, we will continue to benefit from higher prices for at least two to three months, further enhancing EBITDA. We remain focused on evaluating a range of value-accretive M&A opportunities across our core geographies.'
(1) Pro forma production figures for the nine months ended 30 September 2026 include production from the Oman acquisitions as if the acquisitions of Blocks 3 & 4 and Block 9 had completed on 1 January 2026.
(2) Pro forma EBITDA is a non-IFRS measure and an unaudited estimate, defined as Group results as if the Oman Blocks 3 & 4 and Block 9 acquisitions had completed on 1 January 2026, based on draft financial information provided by the seller. It includes accruals of expected values and remains subject to finalisation of information from operators.
(3) Cash and near cash is a non-IFRS measure, comprising $109 million of unrestricted cash (30 June 2026: $128 million) and near cash of $56 million (30 June 2026: $131 million), being $20 million of bond proceeds held in escrow pending completion of the Block 9 acquisition (30 June 2026: $95 million deposit held in escrow for the Oman acquisition) and the $36 million Norwegian tax receivable expected in December 2026 (30 June 2026: $36 million).
(4) Adjusted net debt is a non-IFRS measure, comprising the $300 million face value of interest-bearing debt, less $165 million of cash and near cash, c.$17 million of other restricted funds, a $15 million refundable State Profit Share receivable and a $2.5 million prepayment for the Oman Block 9 acquisition.
Source: Kistos
