Turner Pope Research Note, 11 June 2026
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Zephyr has provided an update on its non-operated production assets. During Q1 2026, this portfolio delivered strong cash flow to the Group due to higher-than-expected production levels plus improved commodity prices compared to the previous quarter. Today’s news follows Tuesday’s confirmation that the regulatory, in-line inspection process (the ‘ILI’) covering the pipeline that will export gas from the Paradox project to the Northwest Pipeline operated by Williams Companies, Inc., had been successfully completed. This was a major milestone that permits Zephyr to finalise negotiated offtake agreements, while also being expected to have a positive impact on Zephyr’s farm-out and hydrocarbon marketing efforts (which have advanced significantly over the last few months). Being an obvious beneficiary of expected booming demand for long term gas supplies from a regional matrix of hyper-scale data centres in advanced planning/development stages while, against a background of higher oil prices, also having just c.14% of Q1 non-operated oil production hedged, the Board is monitoring both local and global events closely in order to be responsive to prospective offtake agreements/further portfolio management activity as opportunities arise. Based on this, recent opportunistic undeveloped acreage disposals plus recovery of bad debt from a working interest owner, each of which can be recycled back into the Paradox project, 2026 looks set to deliver Zephyr’s next significant phase of growth. We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Zephyr Energy plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination. The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient. |