Energean
plc
("Energean" or the
"Company")
Trading Statement &
Operational Update
London, 23 May 2024 - Energean
plc (LSE: ENOG, TASE: אנאג) is pleased to provide the following
update on recent operations and the Group's trading performance in
the 3-months to 31 March 2024. The numbers contained herein are
unaudited and may be subject to further review and
amendment.
Mathios Rigas, Chief Executive Officer of Energean,
commented:
"We continue
to achieve strong operational and financial results, with
production, revenue and adjusted EBITDAX all increased
year-on-year. In Israel, our operations remain unimpacted by the
ongoing geopolitical developments, with peak gas demand expected
during summer driving maximum gas output. In addition,
we are pleased to announce success at our
Abu Qir infill drilling campaign in Egypt, where we have discovered
270 ft of net pay, which is around two times initial
expectations.
"In line with our dividend policy,
we have declared our Q1 2024 dividend of 30 US$ cents/share and
continue to focus on our key business drivers (paying a reliable
dividend, deleveraging, growth, and our commitment to Net Zero). We
continue to remain alert to opportunities that fit our key business
drivers and can move quickly to take advantage when they
arise.
"Looking forward, we have several
milestones on the horizon across the portfolio: Cassiopea, which is
the largest gas development in Italy, is expected to come onstream
this summer; the Anchois appraisal well in Morocco is planned to
spud in August; in Egypt, we look forward to the start-up of the
new well; in Greece, the carbon storage permit application will be
submitted at the end of June and; in Israel, we will start the
supply to our new gas contracts signed earlier this
year."
Operational Highlights
· Production for the period was 142 kboed (82% gas), a 49%
increase versus Q1 2023 (95 kboed). Group 2024 production guidance
is reiterated at 155 - 175 kboed, which is weighted towards the
second half of the year.
o In
Israel, FPSO uptime during Q1 2024 was 98%. In April 2024, the
wells were successfully tested at 720 mmscfd. Day-to-day production
was and continues to be unimpacted as a result of the ongoing
geopolitical developments.
o In
mid-May, the FPSO successfully completed a scheduled 5-day
turnaround for routine maintenance.
o The
new wells brought online in Egypt in the Abu Qir, NEA and NI
concessions continue to perform above expectations.
· Success at the Abu Qir infill well drilling campaign in Egypt,
encountering around 270 feet of net pay across the BKES-1 formation
and Abu Madi formations, around two times initial
expectations.
o Preliminary analysis indicates gas-initially-in-place ("GIIP")
volumes of approximately 87-129 Bcf[1]
based on the P90 to P10 range. The well also encountered a possible
liquids column of around 55 feet of net pay that requires further
analysis.
o The
well was drilled from the existing North Abu Qir PII platform.
First production is expected in Q3 2024.
· Drilling operations continue on Cassiopea (Italy) with the
second and third well (out of four).
· Morocco farm-in completed and rig contract signed for the
Anchois appraisal well.
· Long-lead items ordered for the Katlan development (Israel) to
maintain project schedule ahead of Final Investment
Decision.
· Energean has taken over operatorship of the Tors and Wenlock
(UK) fields to manage the decommissioning work plan.
· The
Group's Scope 1 and 2 emissions intensity in Q1 2024 was estimated
to be approximately 9.0 kgCO2e/boe, a 19% reduction versus Q1
2023.
Financial and Corporate Highlights
· Revenues for the period were $413 million, a 43% increase
versus Q1 2023 ($289 million).
· Adjusted EBITDAX for the period was $259 million, a 60%
increase versus Q1 2023 ($162 million).
· Group
cash as of 31 March 2024 was $220 million (including restricted
amounts of $4 million) and total liquidity was $424
million.
·
Q1 2024 dividend of 30 US$ cents/share declared
today, scheduled to be paid on 28 June 2024.
Outlook
· Peak
gas demand in Israel during the summer, driving maximum gas
output.
· Cassiopea (Italy) first gas on track for summer of 2024.
Near-field Gemini exploration well to be drilled after completion
of the Cassiopea production wells.
· Anchois (Morocco) appraisal well spud planned for August
2024.
· Final
Investment Decision on Katlan (Israel).
· The
second oil train (Israel) to be installed as soon as
feasible.
· Storage permit application for the Prinos Carbon Storage
Project is expected to be submitted by end-June 2024.
·
Quarterly dividend payments intended to be
declared in line with the previously communicated dividend
policy.
Production
|
|
Three-months to 31 March
2024
Kboed
|
Three-months to 31 March
2023
Kboed
|
Three months to 31 March
2023-24 % change
|
Four-months to 30 April
2024
Kboed
|
|
Israel
|
99
(inc. 1.2
bcm of sales gas)
|
59
(inc. 0.7
bcm of sales gas)
|
68%
|
100
(inc. 1.6 bcm
of sales gas)
|
|
Egypt
|
32
|
25
|
28%
|
32
|
|
Rest of
portfolio
|
11
|
11
|
0%
|
11
|
|
Total
production
|
142
|
95
|
49%
|
143
|
Financials
|
|
|
Three months to 31 March
2024
|
Three months to 31 March
2023
|
% change
|
|
Sales and other revenue
|
$ million
|
413
|
289
|
43%
|
|
Cash cost of production
|
$ million
|
131
(includes 51 of royalties)
|
117
(includes 35 of royalties)
|
12%
|
|
Cash cost of production
|
$/boe
|
10
(includes 4 of royalties)
|
14
(includes 4 of royalties)
|
-29%
|
|
Cash SG&A
|
$ million
|
10
|
12
|
-17%
|
|
Adjusted EBITDAX
|
$ million
|
259
|
162
|
60%
|
|
|
|
|
|
|
|
Development and production
expenditure
|
$ million
|
111
|
95
|
-17%
|
|
Exploration expenditure
|
$ million
|
41
|
13
|
215%
|
|
Decommissioning
expenditure
|
$ million
|
6
|
1
|
500%
|
|
|
|
|
|
|
|
|
|
31 March
2024
|
31 December
2023
|
% change
|
|
Cash (including restricted
amounts)[2]
|
$ million
|
220
|
372
|
-41%
|
|
Net debt - consolidated
|
$ million
|
2,989
|
2,849
|
5%
|
|
Leverage (Net Debt / Adjusted
EBITDAX)
|
|
3x[3]
|
3x
|
0%
|
2024 Guidance
|
|
FY 2024
|
|
Production
|
|
|
Israel (kboed)
|
115-130
|
|
Egypt (kboed)
|
29-31
|
|
Rest of portfolio (kboed)
|
11-14
|
|
Total production (kboed)
|
155-175
|
|
|
|
|
Consolidated net debt ($ million)
|
2,800-2,900
|
|
|
|
|
Cash Cost of Production (operating costs plus
royalties)
|
|
|
Israel ($ million)
|
350-380
|
|
Egypt ($ million)
|
30-40
|
|
Rest of portfolio ($
million)
|
190-210
|
|
Total Cash Cost of Production ($ million)
|
570-630
|
|
|
|
|
Development and production capital
expenditure
|
|
|
Israel ($ million)
|
240-290
(from 150-200)
|
|
Egypt ($ million)
|
40-60
(from
30-50)
|
|
Rest of portfolio ($
million)
|
220-250[4]
|
|
Total development & production capital expenditure ($
million)
|
500-600 (from 400-500)
|
|
|
|
|
Exploration expenditure ($ million)
|
120-155 (from 130-170[5])
|
|
|
|
|
Decommissioning expenditure ($ million)
|
40-50
|
Enquiries
|
For capital
markets: ir@energean.com
|
|
|
Kyrah McKenzie, Investor Relations
Manager
|
Tel: +44 (0) 7921 210 862
|
|
|
|
|
For media: pblewer@energean.com
|
|
|
Paddy Blewer, Director of Corporate
Communications & Head of CSR
|
Tel: +44 (0) 7765 250 857
|
Forward looking
statements
This announcement contains
statements that are, or are deemed to be, forward-looking
statements. In some instances, forward-looking statements can be
identified by the use of terms such as "projects", "forecasts", "on
track", "anticipates", "expects", "believes", "intends", "may",
"will", or "should" or, in each case, their negative or other
variations or comparable terminology. Forward-looking statements
are subject to a number of known and unknown risks and
uncertainties that may cause actual results and events to differ
materially from those expressed in or implied by such
forward-looking statements, including, but not limited to: general
economic and business conditions; demand for the Company's products
and services; competitive factors in the industries in which the
Company operates; exchange rate fluctuations; legislative, fiscal
and regulatory developments; political risks; terrorism, acts of
war and pandemics; changes in law and legal interpretations; and
the impact of technological change. Forward-looking statements
speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise. The
information contained in this announcement is subject to change
without notice.