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NewMed Energy (TASE:NWMD) Stock Can Strong Gas Growth Justify A 24.4x P E

Simply Wall St · 2d ago

NewMed Energy closed yesterday at ₪16.65 after a modestly positive week, yet the emotional center of gravity today sits squarely on one thing. Q2 2026 earnings from continuing operations of US$110.1m on revenue of US$250.1m, powered by strong gas volumes and pricing, point to a business that just had a very solid quarter even as the stock trades on a 24.4x P/E.

The market now has to decide whether that valuation multiple properly reflects a partnership throwing off US$270.6m in trailing twelve month earnings from continuing operations, or if short term sentiment is still lagging the fundamentals.

Impressed by NewMed Energy earnings but unsure if a 24.4x P/E offers the balance you want between quality and valuation? Compare it with 256 high quality undervalued stocks.

Q2 2026 Earnings Summary

  • Revenue, Q2 2026 vs. Q2 2025: US$250.1m vs. US$164.0m (up about 52%)
  • Net Income from Continuing Operations, Q2 2026 vs. Q2 2025: US$110.1m vs. US$81.2m (up about 36%)
  • Basic EPS, Q2 2026 vs. Q2 2025: US$0.0938 vs. US$0.0692 (up about 36%)
  • Total Oil Equivalent Production, Q4 2025: 16.48 MMboe (million barrels of oil equivalent) reported, providing the latest disclosed production base ahead of Q2 2026 volume gains

Prefer clear charts over a dense wall of earnings tables and raw figures? See NewMed Energy - Limited Partnership’s full financial picture in one visual dashboard, with valuation front and center, in our company report for NewMed Energy - Limited Partnership.

TASE:NWMD Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
TASE:NWMD Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

NewMed Energy earnings story, testing the bull case

Bulls argue NewMed Energy is turning high quality gas reserves and long term contracts into dependable earnings and rising cash returns. Q2 backs up part of that story. Production reached 2.7 Bcm with growth across Israel, Egypt and Jordan, and average realized pricing of about US$6.5/MMBtu versus US$5.6 a year earlier, which supports the view that Brent linked contracts and volume growth are working together. Revenue of about US$293m and net profit of about US$117m to US$118m, plus a US$60m dividend, point to a business that is currently converting gas volumes into cash. Progress on Leviathan Phase 1b, now about 23% complete with long lead items ordered and the third pipeline and INGL looping finished, also lines up with the thesis that capacity growth and new routes into Egypt can support future volumes.

NewMed Energy results, pressure testing the bear case

Bears focus on capital intensity, geopolitical exposure and earnings quality. Q2 does not remove those concerns. Net debt of about US$1.4b alongside a US$2.4b Leviathan expansion budget keeps leverage and funding risk in focus, even with US$550m of committed bank facilities. Higher operating costs and depreciation and about US$26m of extra finance expenses, mainly from royalty revaluation, show that more complex assets and balance sheet items are already eating into some of the profit uplift. The sharp Q1 earnings drop after a 33 day Leviathan shutdown, and the need to exclude a Bulgaria write off to reach US$74m of adjusted profit, underline that geopolitical events and exploration outcomes can quickly affect earnings. The Q2 contribution from one off items such as the Iran economic rights settlement also reminds you that part of this quarter’s profit is not purely recurring.

Reveal where the surface looks calm but the models start to disagree on NewMed Energy, and see exactly where the consensus breaks over the next few years. Access the full multi year revenue, earnings and dividend timeline in the analyst estimates for NewMed Energy - Limited Partnership.

Take Control Of Your Next Move

If NewMed Energy - Limited Partnership’s Q2 earnings profile and 24.4x P/E have caught your eye but you are still waiting for the right entry, register free with Simply Wall St and add it to a Watchlist to track price against fair value and new data points in one place. Once you hold the stock, use the Portfolio Command Center to cut through noise and focus on the updates that actually matter for your thesis. For a longer term view, tap into thousands of investor viewpoints through the Community to see how others are interpreting the same numbers. Spot potential catalysts and emerging risks early so you can act with confidence while many investors are still reacting.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.