Audio Note | Seplat Energy: Update, succession

We recently attended a scheduled update for analysts hosted by Seplat CFO, Eleanor Adaralegbe which addressed the recently announced Board succession plans as well as providing a more general update of operations and strategy implementation. Current 2026 targets and the 2030 strategy targets were reiterated. While the company remains highly disciplined in its management of operations and cash, the strength of current cash generation means Seplat is exploring the potential to accelerate opportunities in its portfolio, while the free cash flow linked dividend policy indicates a path to further increases in the dividend, in addition to the hike in the 1Q26 total dividend.  Despite the vigorous share price performance, Seplat continues to trade below peers based on enterprise value to reserves and now offers easily the highest prospective dividend of UK listed peers with significant emerging markets exposure while still generating significant growth. Seplat offers 21% and 51% upside to our calculated net asset values of 668p and 834p at discount rates of 15% and 10%, respectively.