Water Tower Research Publishes Initiation of Coverage Report on Meren Energy, Inc., “West Africa Asset Base Supports Cash Returns with Funded Upside Exposure”

February 10, 2026, ST. PETERSBURG, FL – Water Tower Research (www.watertowerresearch.com) has published an Initiation of Coverage Report on Meren Energy, Inc. (TSX: MER) titled, “West Africa Asset Base Supports Cash Returns with Funded Upside Exposure”. The report can be accessed here.

Meren Energy, Inc. is a Canadian oil & gas exploration and production company whose assets are located offshore West Africa. The company’s primary listing is on the TSX under the ticker symbol ‘MER’. Meren also trades on the Nasdaq Stockholm exchange under the ‘MER’ ticker symbol. On November 3, 2025, the shares began in the US on the OTCQX Best Market under the ticker symbol ‘MRNFF’. Meren’s business model exposes stakeholders to three of Nigeria’s top five offshore producing oilfields and fully funded long-term reserve and production growth potential in the Orange Basin in deepwater offshore Namibia and South Africa. The Nigeria assets are operated by Chevron and TotalEnergies, while the Orange Basin assets are operated by TotalEnergies.

Management’s business model exposes shareholders to an asset base underpinned by cash flow generating oilfields in Nigeria with further development potential and fully funded long- term production/reserve growth potential through the development of the Venus light-oil discovery in the Orange Basin offshore Namibia. The current cash flow profile and balance sheet liquidity allow management to execute dual goals of returning cash to shareholders and capitalizing on organic and inorganic as they arise.

Free cash flow generated by producing assets in Nigeria supports management’s policy of returning cash to shareholders through common stock dividends and share repurchases and its efforts to capitalize on incremental organic and inorganic growth opportunities. Meren’s balance sheet and liquidity provides significant flexibility to execute management’s model. As of September 30, 2025, Meren had total liquidity of $369 million, including $177 million in cash and $193 million of availability under its RBC credit facility. Through Meren’s November 13, 2025, earnings release, the company had reduced long-term debt by ~$420 million since year-end 2024. Meren is currently valued at 2.9x our 2026 adjusted EBITDA estimate and, according to FactSet consensus estimates, at a discount to the average multiple for a group of international E&P comparable companies.

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