Energi Mega Target Raised to Rp 2,140 as Drilling Momentum Builds

JAKARTA, Investortrust.id — Listed oil and gas company PT Energi Mega Persada Tbk or ENRG sees its share price target raised to Rp 2,140 on Tuesday, Feb 24, 2026 in Jakarta as Verdhana Sekuritas Indonesia cited stronger production growth, fresh gas discoveries and higher-margin condensate flows, a move expected to reinforce earnings momentum into 2027.

The new valuation reflected EV/EBITDA assumptions of 9.5x for 2026 and 8.0x for 2027, with the brokerage maintaining a buy recommendation.

Verdhana analysts Nizam Syafik and Michael Wildon NG said ENRG stood at the early stage of a multiyear earnings upcycle, driven by rising output at the Bentu gas field and new discoveries in Sengkang.

They also pointed to incremental condensate production from the CEN and North Segat Deep facilities starting in the first half of 2026, which would lift revenue quality given higher liquid margins.

Bentu, the company’s largest asset, was projected to increase production toward 86 to 90 million standard cubic feet per day in 2026, supported by new wells and compression upgrades.

At Sengkang, recent discoveries recorded test production of 25 to 36 million standard cubic feet per day, with an absolute open flow potential reaching 120 million standard cubic feet per day, according to the research note.

Aggressive Drilling Campaign

The brokerage highlighted ENRG’s plan to drill nearly 30 exploration wells and around 130 development wells between 2025 and 2030 to expand reserves and sustain double-digit production growth.

After posting a 100 percent success rate from four exploration wells in 2025, the company planned to add nine more exploration wells in 2026.

Capital expenditure was set at $200 million to $230 million for 2026, above its five-year historical average of about $170 million.

Vice President Director Edoardus Ardianto said in Jakarta on Monday, Dec 1, 2025 that the company had budgeted roughly $200 million in 2026 as part of a longer-term $1.4 billion investment plan through 2030.

“We have budgeted around $200 million. From 2025 to 2030, we plan to spend $1.4 billion, drilling nearly 30 exploration wells and about 130 development wells,” he said.

As of the third quarter of 2025, ENRG had absorbed between $150 million and $160 million of its annual capex, while continuing to complete additional exploration and development wells.

The company’s exploration drive recently yielded a new oil discovery in the Malacca Strait through its subsidiary PT Imbang Tata Alam.

Initial evaluation indicated a productive Upper Sihapas formation with about 80 feet of net pay and an initial flow rate of 350 barrels of oil per day.

Edoardus estimated the Original Oil in Place at around 31 million barrels, with potential incremental production of 1,000 to 1,500 barrels per day from a six-well development plan.

Verdhana said ENRG remained on track to deliver around 10 percent organic production growth annually through 2030, prompting the firm to raise its earnings forecasts by 5 percent for 2026 and 4 percent for 2027.

The revision also incorporated updated oil price assumptions of $68 per barrel for 2026 and $67 per barrel for 2027, alongside expectations of lifting costs falling below $12 per barrel of oil equivalent at projects such as Siak and Kampar.