Ithaca Energy PLC (LSE:ITH) delivered solid first-quarter 2026 results, reporting average production of 126 kboe/d and adjusted EBITDAX of $571 million. The performance supported continued strong cash generation and further balance sheet improvement, despite earnings coming in slightly below the prior-year period.
Available liquidity increased to around $1.6 billion, while leverage levels declined, reinforcing the company’s financial position. Ithaca said its dividend framework is now expected to return more than $500 million to shareholders during 2026, following total dividend payments of $500 million for 2025.
North Sea projects move forward
During the quarter, Ithaca Energy continued advancing several major North Sea projects. Development work progressed on both the Rosebank and Cambo fields as the company moved toward either first production or final investment decisions. The Fotla and Greater Tornado Area gas projects also entered more advanced planning and execution phases.
The group additionally secured a long-term rig-sharing arrangement, completed a strategic farm-in to the Tobermory discovery, reduced its interest in Fotla through a farm-down agreement with Harbour Energy plc and expanded its hedging programme.
Management said these initiatives are intended to reduce operational risk, strengthen the company’s gas hub strategy and support sustainable long-term shareholder value creation.
Outlook and market considerations
Ithaca Energy’s outlook continues to be supported by strong technical momentum and resilient cash-flow generation. However, this is partly balanced by elevated earnings volatility following a net loss reported in 2025, while the company’s negative price-to-earnings ratio limits the usefulness of traditional valuation metrics despite its comparatively high dividend yield.
More about Ithaca Energy
Ithaca Energy PLC is an oil and gas producer focused on exploration, development and production activities in the North Sea. The company holds a mix of operated and non-operated assets across the UK continental shelf, with strategic emphasis on gas and liquids production, infrastructure-led developments and regional hub strategies spanning areas including West of Shetland, Greater Britannia and the Greater Cygnus Area.
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