BofA: Adnoc Gas Poised to Gain from Higher Oil, Gas Prices; EBITDA Estimates Up

05:48 AM EDT, 09/10/2026 (MT Newswires) -- BofA Global Research is optimistic on Adnoc Gas' (ADX:ADNOCGAS) long-term growth story amid expectations of higher oil and gas prices over the near term, according to its MENA Oil and Gas & Utilities report published Wednesday. "ADNOC Gas stands to benefit from a stronger commodity backdrop, with our commodities team raising its Brent assumptions to US$83/bbl for 2026 (fromUS$76/bbl) and US$75/bbl for 2027 (from US$70/bbl previously)," analysts wrote. "Spot LNG prices have also moved higher and, with around 20% of LNG volumes exposed to spot markets, ADNOC Gas offers additional leverage to improving gas fundamentals. We estimate that a US$5/bbl change in oil prices impacts EBITDA by c.4.6%, assuming a corresponding move in LPG and LNG prices." The research firm increased its 2026 and 2027 EBITDA forecasts by 3% and 10.1%, respectively, as it took into account the company's results for the second quarter of 2026, higher oil price assumptions for 2027, and management's updated guidance on volumes and margins. "The company is also supported by an attractive 5.5% dividend yield. Despite elevated capex and ongoing shipping disruptions, we see no risk to dividend sustainability, with operating cash flow expected to comfortably fund distributions. Higher oil prices and stronger volumes through the remainder of 2026 should support a meaningful recovery in earnings," BofA added. The buy rating on the stock was maintained, with a price objective 4.1 Emirati dirhams.