Karachi: Pakistan's Exploration and Production (E&P) sector closed FY26 with record-breaking earnings and cash flow, driven by higher oil prices, increased production, and super tax reversals.

According to AKD Securities Limited, the sector experienced a significant recovery in production volumes in the fourth quarter of FY26. Oil and gas output increased by 22% and 12% year-on-year, respectively, reversing a three-year decline in production. The resolution of gas circular debt is set to benefit listed E&P companies significantly. AKD Securities reiterated its buy recommendation for OGDC, PPL, MARI, and POL, with target prices set for December 2026 at PKR 522, 412, 935, and 850 per share, respectively.