Introduction

Seplat Energy has made a significant financial move, clearing the last installment of debt tied to its major acquisition of ExxonMobil's Nigerian oil and gas assets. The repayment marks the end of all borrowing linked to the $1.28 billion deal that reshaped the company's offshore portfolio.

What Happened

The company announced on October 29, 2026, that it had paid off the final $100 million balance of the advance payment facility used to finance the ExxonMobil transaction. This followed an earlier $200 million repayment in the second quarter of 2026, leaving only $100 million outstanding. Seplat confirmed that on October 27, 2026, the remaining balance was settled just two days before publishing its nine-month financial results. The full debt clearance comes roughly two years after the transaction closed in December 2024, when Seplat acquired Mobil Producing Nigeria Unlimited from ExxonMobil, gaining interests in four oil mining leases, the Qua Iboe export terminal, and a 51% stake in the Bonny River natural gas liquids recovery plant.

Why This Matters

Eliminating this debt significantly strengthens Seplat's balance sheet. The company reported net debt of $234.9 million at the end of September 2026, a 65% decrease from $673.3 million at the end of 2025. Its net debt-to-EBITDA ratio also improved to 0.14 times from 0.53 times, indicating a much lighter debt burden relative to earnings. Beyond the balance sheet, the repayment coincides with strong operational results, including 27% revenue growth to $2.76 billion, a 38% rise in adjusted EBITDA to $1.53 billion, and a jump in profit after tax to $260.2 million. The milestone also underscores Seplat's growing momentum, highlighted by a new oil and gas discovery at the Aku-01 well and a declared third-quarter dividend of 19 cents per share.

Key Takeaways

  • Seplat has fully repaid the $100 million advance payment facility, ending all acquisition-related debt from the ExxonMobil deal.
  • Net debt dropped 65% year-over-year, and the net debt-to-EBITDA ratio improved sharply to 0.14 times.
  • The repayment follows the December 2024 completion of the $1.28 billion acquisition of Mobil Producing Nigeria Unlimited.
  • Strong nine-month financial results include 27% revenue growth, 38% EBITDA growth, and higher profit after tax.
  • The company declared a Q3 dividend of 19 cents per share and maintained full-year dividend guidance of $270 million.
  • A recent oil discovery at the Aku-01 well adds 157 billion cubic feet of gas-in-place and 19 million barrels of oil-in-place, supporting future production.

Conclusion

With the final debt payment complete, Seplat Energy is now free of the borrowing that funded its ExxonMobil Nigerian assets acquisition, marking a clean financial slate as it moves into the latter half of 2026. The significant improvement in debt metrics, combined with robust operational performance and new asset discoveries, positions the company for continued growth. Investors and industry watchers will be watching closely as Seplat potentially proceeds with the planned 10% NNPCL-SEPNU joint venture sale and the associated $140 million transaction dividend, which could push total shareholder distributions for the year toward $410 million.