Slide 1: 2023 Half Year Results
2023 Half Year Results Ithaca Energy plc 23 August 2023
Slide 2: H1 2023 Highlights
H1 2023 Highlights Ithaca Energy plc 2 HY 2023 Results – August 2023
Slide 3: Strong cash flow in H1 2023, delivering against strategy and capital allocation policy
H1 2023 Highlights Operational Overview Financial Overview Outlook Strong cash flow in H1 2023, delivering against strategy and capital allocation policy Financial Highlights: • Declaring second interim 2023 dividend of $133m payable in September 2023, taking the total 2023 Strong cash flow generati
Slide 4: Operational Overview
Operational Overview Ithaca Energy plc 4 HY 2023 Results – August 2023
Slide 5: Continuous focus on safe and environmentally responsible operations
H1 2023 Highlights Operational Overview Financial Overview Outlook Continuous focus on safe and environmentally responsible operations • Strengthening process safety defences with a focus on major accident hazard prevention • Meaningful decarbonisation activity across operated portfolio with key foc
Slide 6: Strong production performance in H1 2023
H1 2023 Highlights Operational Overview Financial Overview Outlook Strong production performance in H1 2023 Production kboe/d Turnaround 90 activity in Operated production efficiency of 93% in Q2 2023 Q3 2023 demonstrating operational excellence and quality 80 of diverse production portfolio 68 - 74
Slide 7: Captain EOR Phase II construction activities progressing as planned
H1 2023 Highlights Operational Overview Financial Overview Outlook Captain EOR Phase II construction activities progressing as planned Material progress across multiple EOR Phase II work scopes in H1 2023 • Successful installation of polymer injection pumps, subsea umbilical distribution structure a
Slide 8: Captain EOR Phase I continues to exceed expectations
H1 2023 Highlights Operational Overview Financial Overview Outlook Captain EOR Phase I continues to exceed expectations Estimated incremental recover from Stage 1 FDPa Actuals EOR Phase I performing well, exceeding initial expectations with over 11 mmbbl recovered to date History matching of latest
Slide 9: Maintaining optionality and progressing projects based on returns
H1 2023 Highlights Operational Overview Financial Overview Outlook Maintaining optionality and progressing projects based on returns Rosebank Cambo Focus remains on Shell marketing finalising agreement represents development plans Announced acquisition of remaining 40% stake to take control of FID t
Slide 10: Financial Overview
Financial Overview Ithaca Energy plc 10 HY 2023 Results – August 2023
Slide 11: Strong H1 2023 performance, increase in adjusted EBITDAX and adjusted Net Income
H1 2023 Highlights Operational Overview Financial Overview Outlook Strong H1 2023 performance, increase in adjusted EBITDAX and adjusted Net Income H1 2023 performance at a glance AVERAGE GROUP UNIT OPERATING COST PRODUCTION 75.8 kboe/d $19.8/boe GROUP ADJUSTED EBITDAX GROUP ADJUSTED NET INCOME SECO
Slide 12: EBITDAX contribution of $71/boe in H1 2023
H1 2023 Highlights Operational Overview Financial Overview Outlook EBITDAX contribution of $71/boe in H1 2023 Production Realised Commodity Price Unit Operating Adjusted EBITDAX (kboe/d) After Hedging Expenditure ($/boe)2 ($/boe) Oil ($/boe)1 Gas 137 125 76 71 73 71 91 83 -9% -9% 6% 19.1 19.8 -3% +4
Slide 13: Adjusted EBITDAX analysis
H1 2023 Highlights Operational Overview Financial Overview Outlook H1 2023 Adjusted EBITDAX analysis • Adjusted EBITDAX per barrel of $71/boe reflects reduction in realised commodity prices • Continued focus on managing unit operating cost in an inflationary environment with opex per boe remaining r
Slide 14: Financial framework underpinned by low leverage and robust liquidity position
H1 2023 Highlights Operational Overview Financial Overview Outlook Financial framework underpinned by low leverage and robust liquidity position • Strong cash flow generation supporting the continued deleveraging of the balance sheet with net debt falling to $699 million • Semi-annual RBL redetermin
Slide 15: In Focus: Capital Allocation Policy PROTECT
H1 2023 Highlights Operational Overview Financial Overview Outlook In Focus: Capital Allocation Policy PROTECT Effective hedging strategy driving results and protecting returns Clear hedging targets and a proactive approach to hedging, placing hedges at peaks in commodity markets, supports an attrac
Slide 16: Actively managed hedge programme to protect revenue while accessing upside exposure
H1 2023 Highlights Operational Overview Financial Overview Outlook Actively managed hedge programme to protect revenue while accessing upside exposure Attractive hedge book with 9.9 mmboe (62% oil) hedged from Q3 2023 into 2025 Hedging gain in H1 2023 of $172 million 30 Oil hedging Gas hedging 25 10
Slide 17: Outlook and Energy Profits Levy (EPL) update
Outlook and Energy Profits Levy (EPL) update Ithaca Energy plc 17 HY 2023 Results – August 2023
Slide 18: Revised 2023 guidance reflects focus on cost control and targeted capital investment
H1 2023 Highlights Operational Overview Financial Overview Outlook Revised 2023 guidance reflects focus on cost control and targeted capital investment FY 2023 FY 2023 H1 2023 2023 production guidance Guidance Guidance Actual remains unchanged based March 2023 August 2023 on strong H1 production Pro
Slide 19: Energy Profits Levy continues to impact UK investment
H1 2023 Highlights Operational Overview Financial Overview Outlook Energy Profits Levy continues to impact UK investment Energy Profits Levy (EPL) Recent EPL Changes Direct impact to investment across the UK North Sea as • Energy Security Investment Mechanism (ESIM) a result of the EPL changes in Au
Slide 20: Energy Profits Levy has resulted in deferral or cancellation of near-term projects
H1 2023 Highlights Operational Overview Financial Overview Outlook Energy Profits Levy has resulted in deferral or cancellation of near-term projects Unintended consequences of Energy Profits Levy Impact to Ithaca Energy’s portfolio includes: EPL has resulted in the deferral or Greater Stella Area:
Slide 21: Closing remarks
Closing remarks 1. Strong H1 2023 results with ~$1B adjusted EBITDAX and $0.8bn liquidity at end June 2023 2. Delivering against capital allocation policy with $133 million interim dividend declared, year to date 2023 dividend payment of $266 million 3. Energy Profits Levy slowing pace of growth wit
Slide 22: Q&A
Q&A Gilad Myerson Alan Bruce Iain Lewis Executive Chief Executive Chief Financial Chairman Officer Officer Ithaca Energy plc HY 2023 Results – August 2023
Slide 23: Appendix – Cautionary Statement
Appendix 1 – Cautionary Statement Ithaca Energy plc 23 HY 2023 Results – August 2023
Slide 24: Cautionary Statement
Cautionary Statement This proprietary presentation (including any accompanying oral presentation, question and answer session and any other document or materials distributed at or in connection with this presentation) (collectively, the “Presentation”) is supplied for your information only and has b
Slide 25: Thank you.
Thank you. Ithaca Energy plc HY 2023 Results – August 2023