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Serica Energy (SQZ · LSE)

Gas-weighted — HQ United Kingdom. Oil & gas valuation, proved reserves, production, break-even, net-asset-value and jurisdiction-risk screen.
Category Gas-weightedRegion EuropeCEO Chris Cox (2024)Jurisdiction risk Low (18)

Overview

Serica Energy is a gas-weighted upstream independent focused on the UK North Sea, operating around 10% of the UK's gas production. Its core is the operated Bruce Hub (Bruce, Keith and Rhum), supplemented by the Triton oil-and-gas hub and Columbus (acquired with Tailwind Energy in 2023) and a growth pipeline led by the Greater Buchan Area redevelopment. The company is known for a high dividend and a strong balance sheet, and has pursued acquisitions to offset natural North Sea decline.

FY2025 was a transitional year: reported revenue of roughly US$0.6bn on average production near 28 kboe/d, with results depressed by field outages and the UK windfall tax, keeping net income only marginally positive. Serica reshaped the portfolio through the Prax Upstream acquisition (completed Dec-2025) and the ONE-Dyas asset acquisition (completed Jun-2026, adding Dutch/German North Sea gas), targeting an enlarged run-rate above 65 kboe/d and a step-up in 2026 revenue. Net debt remains modest (~US$0.2bn) and a new reserves-based lending facility (Jul-2026) underpins the enlarged group.

Valuation snapshot (FY2025)

Market cap
$1.2bn
Enterprise value
$1.4bn
EV / EBITDA
6.6x
P / E
n/m
FCF yield
-2.1%
Dividend yield
6.7%
ROACE
9%
Debt / equity
34%
Net debt / EBITDA
0.9x
EV / reserves
$11.79/boe
EV / flowing
$50k/boe/d
Free cash flow
$-0.0bn

Its EV/EBITDA of 6.6x is above the 5.9x median across the 142-company universe, the free-cash-flow yield of -2.1% is lower than the 6.5% median, and at $11.79/boe of proved reserves it is cheaper than the $13.51/boe median.

On a balanced screen across the universe, Serica Energy scores 50/100, strongest on safety (64/100). Sub-scores: value 47, quality 39, growth 59, risk 36 (higher = riskier).

Reserves & production

Serica Energy holds approximately 0.12 billion boe of proved (1P) reserves with FY2025 production of about 28 thousand boe/d (36% liquids), a reserve life of roughly 11.6 years. Break-even: ~$40 (Brent FCF breakeven) — Cash-generative UK North Sea portfolio with free-cash-flow breakeven around US$40/bbl Brent; low corporate breakeven supports a high dividend, but the UK Energy Profits Levy sharply reduces post-tax cash retention.

Net asset value (public-source)

For Serica Energy, no SEC standardized measure is disclosed (non-US filer or listed NOC), so a public-source proved-NAV floor is not computable from US filings. See the interactive screener's NAV tab for peers where an SEC figure exists.

Jurisdiction risk · production-weighted country risk

18 /100
Low jurisdiction risk
Production-weighted average of the country scores below (0 = safest, 100 = riskiest).
Country / regionProd. shareCountry riskKey jurisdiction risk
United Kingdom92%19Stable but EPL windfall tax raised North Sea fiscal burden.
Netherlands8%9Stable; Groningen shut-in, phase-down policy.
How this is scored. Each country's risk (0–100) is anchored to two named public indices — the OECD Country Risk Classification (0–7 official export-credit country risk) and the World Bank Worldwide Governance Indicators (Political Stability & Absence of Violence percentile) — blended 55/45 and rescaled to 0–100. A company's jurisdiction risk is the production-weighted average across the countries where it operates. This is a pure country measure, kept separate from company & financial risk (leverage, governance). Source: OECD Country Risk Classification (CRC) as of 24 July 2025, sourced via the German Federal Export Credit Guarantees (exportkreditgarantien.de) which applies the OECD consensus country risk category directly (values 0-7; 0 = lowest risk). High-income OECD members are not individually rated by the OECD and are set to crc=0 per the model spec (US, UK, Norway, Canada, Australia, Japan, NZ, and most of Europe incl. OECD members Israel, Poland, Hungary, Czechia, Lithuania, Ireland). 'ps' = World Bank Worldwide Governance Indicators (WGI) 'Political Stability and Absence of Violence/Terrorism' percentile rank, latest available (2023 vintage), 0-100 with higher = more stable; ps values are best sourced estimates rounded to the WGI percentile scale. Yemen not on OECD list ('./.') so crc estimated at 7. Iraq-Kurdistan and Falklands are non-standard model rows using judgment, not official OECD entries..

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Key assets & projects

AssetLocationTypeNotes
Bruce Hub (Bruce, Keith, Rhum)United KingdomUpstream gas & oilCore operated hub; ~5% of UK gas; long-life gas with high-value Rhum field
Triton Hub (Bittern, Gannet, Guillemot, Evelyn)United KingdomUpstream oil & gasFPSO-based oil-weighted hub added via Tailwind (2023); reliability/uptime a key swing factor
ColumbusUnited KingdomUpstream gasGas-condensate tied back via the Shearwater/Arundel system
Greater Buchan Area (Buchan, J2, Verbier)United KingdomDevelopmentFlagship growth project; redevelopment of the Buchan oil field and satellites
Prax Upstream assetsUnited KingdomUpstream oil & gasAcquired Dec-2025; adds UK North Sea production and scale
ONE-Dyas assets (N05-A and satellites)NetherlandsUpstream gasAcquired Jun-2026; Serica's first international assets — Dutch/German North Sea gas
West of Shetland interestsUnited KingdomUpstream oil & gasNon-operated interests offering longer-dated production and growth optionality
RhumUnited KingdomUpstream gasHigh-value gas field within the Bruce Hub; historically a Serica cash engine

Five-year trend (FY2021–FY2025)

Metric20212022202320242025
Production (mboe/d)2326403528
Proved reserves (bnboe)0.050.060.070.070.12
Revenue ($bn)0.40.80.70.60.6
EBITDA ($bn)0.20.60.50.30.2
Net income ($bn)0.10.20.1-0.0-0.1
Free cash flow ($bn)0.10.30.20.1-0.0

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Peer companies — Gas-weighted

NVTK · NovatekEQT · EQT CorporationEXE · Expand EnergyTOU · Tourmaline OilARX · ARC ResourcesAR · Antero ResourcesRRC · Range ResourcesENEV3 · Eneva S.A.NWMD · NewMed EnergyCNX · CNX Resources CorporationCRK · Comstock Resources, Inc.PEY · Peyto Exploration & Development Corp.BKV · BKV CorporationGPOR · Gulfport Energy Corporation

Sources

✓ FY2025 figures verified against primary sources:

↗ Compare SQZ against 141 peers in the interactive screener

Disclaimer. Screening research only — a starting point, not investment or transactional advice. Figures are drawn from public sources (~mid-2026), may contain errors, and require independent due diligence before any decision.
Enerquill Advisory. Data compiled from company FY2025 filings and results releases; market data ~mid-2026. Larger names are verified against primary sources (shown on each page); smaller names are best-estimates pending verification. © Enerquill Advisory. enerquilladvisory.com