Major expansions in Bentu PSC, Riau, to support long-term growth. Our recent site visit to ENRG's largest gas asset, Bentu, in Pekanbaru, Riau, provided valuable insights into the company’s ongoing operational expansion and long-term growth objectives. During the visit, we toured key facilities including Segat Gas Plant 1 & 2,  North Segat 16 Well development drilling site, Booster Compressor at Segat Gas Plant, and the under-construction North Segat Deep Condensate Processing Facility—all integral components of ENRG’s growth strategy. In addition to these, ENRG is working on several other facilities, including the CEN field and North Segat Condensate Plant to support not only its long-run expansion plans, but also provide increased short-term production to 86–90 MMscfd in 2026F from the current 78 MMscfd, helped by continued drilling activities (in line with our forecast).

 

New significant gas discovery to boost performance and shareholders value. ENRG recently announced significant gas discovery with AOF (Absolute Open Flow) of 120 MMSCFD in 2027F at Tacipi Formation in East Walanga (EWL-1 exploration well), located within its Sengkang Production Sharing Contract (PSC) in South Sulawesi. The well currently has demonstrated deliverability rate of 25–36 MMSCFD, although the actual production rate will be finalized in collaboration with SKK Migas during POD process. Additional drilling activities are scheduled for 2026 onward to fully assess the field's deliverability with the potential to increase reserves from 0.2 TCF to 0.5 TCF or more. Looking ahead, ENRG plans to allocate USD 30mn in 2026-27F capex for the development of East Walanga gas field, including one appraisal well and three development wells with additional USD 10mn earmarked for pipeline infrastructure connecting to Walanga plant. This gas discovery in Sengkang PSC is expected to significantly enhance ENRG’s financial performance and shareholders value.

 

IDR 4tn bonds issuance in stages to support expansion needs. ENRG is preparing to raise up to IDR 4tn through bond issuances initiated by Shelf Registration Bonds I Phase I/2025 of IDR 500bn: Series A (1-year tenor), Series B (3-year tenor), and Series C (5-year tenor), all of which have received idA+ rating (Single A Plus) from Pefindo. Proceeds will be allocated for early repayment of principal and interest to KCS1 Pte. Ltd, inter-company loan to PT Bangun Sarana Samudra Laut (BSSL) as an obligation settlement to Bank Mandiri, and working capital requirements.

 

BUY with higher 2,300 TP on earnings upgrades & MSCI re-rating. We have upgraded our 2027F net earnings by 54.1% to reflect recent discovery and exploration. This, coupled with potential inclusion in MSCI Big Cap Index, will provide further positive share price momentum. Therefore, we reiterate our BUY rating and raise TP to IDR 2,300 (from IDR 650), reflecting potential upside of 63% from current levels.