Story
Capricorn Energy Lifts Output Forecast Amid Competing Takeover Bids
Summary
Capricorn Energy raised its full-year production forecast, citing strong performance from its Egyptian assets, as it continues to evaluate competing takeover offers from DNO and Genel Energy.
Capricorn Energy (LON:CNE) on Thursday raised its full-year production guidance, citing stronger-than-expected output from its Egyptian assets, as the company continues to navigate competing takeover offers.
Upgraded Production Outlook
The energy firm announced its annual production will now exceed the mid-point of its previous guidance range of 18,000 to 22,000 barrels of oil equivalent per day (boepd). Capricorn attributed the improved forecast to expanded operations in Egypt, noting that production remained robust through July and August with solid contributions from new wells.
Working interest production for the first half of the year averaged 19,337 boepd, according to the company's report.
Financial Performance Strengthens
The operational strength was reflected in the company's first-half financial results, where it reversed a prior-year loss. For the six months ended June 30, Capricorn reported an operating profit of $56.3 million, a significant turnaround from a $2 million loss in the same period a year earlier.
AdThis performance was supported by higher commodity prices, with the company achieving an average realized oil price of $89.5 per barrel, up from $73.6 per barrel year-over-year. Revenue from its Egyptian operations reached $100 million in the first half.
Takeover Battle Continues
The positive operational update comes as Capricorn remains the subject of a takeover battle. Earlier this month, the company accepted a revised $396 million offer from Norwegian oil firm DNO (OSE:DNO), which topped a rival proposal from Genel Energy (LON:GENL).
According to Capricorn's statement, both offers currently remain active, leaving the company's ownership structure a key focus for investors.
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