Update shared on14 Sep 2025
Fair value Decreased 8.61%The downward revision in Meren Energy’s price target reflects a marked deterioration in growth expectations alongside a higher valuation multiple, with the consensus fair value now at CA$2.61.
What's in the News
- Merger talks between Tullow Oil and Meren Energy have collapsed after progressing as recently as June 2025; the reasons for the failed discussions remain unclear (Sky News/Key Developments).
- Meren Energy completed the planned buyback, repurchasing a total of 8.4 million shares (1.91% of shares outstanding) for CAD 16.38 million; no shares were repurchased in Q2 2025 (Key Developments).
- The company revised its 2025 production guidance upward, now expecting working interest (WI) production of 30,000–33,000 boepd (previously 28,000–33,000) and entitlement production of 34,500–37,500 boepd (previously 32,000–37,000) (Key Developments).
- Q2 2025 WI production was 30,900 boepd, down from 31,600 boepd in Q2 2024; H1 2025 WI production totaled 32,100 boepd, compared with 33,400 boepd in H1 2024 (Key Developments).
- Tullow Oil has faced ongoing challenges, having lost significant market value since its peak and seen multiple failed merger attempts, including with Kosmos Energy last December; Meren Energy (formerly Africa Oil Corp) is now substantially larger than Tullow by market capitalization (Key Developments/Sky News).
Valuation Changes
Summary of Valuation Changes for Meren Energy
- The Consensus Analyst Price Target has fallen from CA$2.85 to CA$2.61.
- The Future P/E for Meren Energy has significantly risen from 6.79x to 10.37x.
- The Consensus Revenue Growth forecasts for Meren Energy has significantly fallen from 91.5% per annum to 81.9% per annum.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.