Slide 1: Q1 2023 Results
Q1 2023 Results Ithaca Energy plc 31 May 2023
Slide 2: Q1 2023 Highlights
Q1 2023 Highlights Ithaca Energy plc 2 Q1 2023 Results – May 2023
Slide 3: Q1 2023 highlights
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Q1 2023 highlights Strong cash flow generation in Q1 supporting capital allocation policy Operational Strong Group production of 75.3 kboe/d highlights Operational issues at Captain/FPF-1 resolved swiftly with a positive end to
Slide 4: Energy Profit Levy - unintended consequences
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Energy Profit Levy - unintended consequences Ithaca Energy looking to accelerate …though EPL creating unintended developments… hurdles Ithaca Energy’s development Attractive and significant JV partner confidence: portfolio (Camb
Slide 5: Operational Overview
Operational Overview Ithaca Energy plc 5 Q1 2023 Results – May 2023
Slide 6: Safety and environmental responsibility at the core of our operations
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Safety and environmental responsibility at the core of our operations Focus on process safety and serious events 3.6 million hours worked in 2022 • No serious injuries or spills in the quarter Significant continued activity acro
Slide 7: Q1 2023 Production of 75.3 kboe/d
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Q1 2023 Production of 75.3 kboe/d Production kboe/d Confident in meeting INVEST 100 Diverse portfolio of assets with stakes in six of FY 2023 production TO SUSTAIN the top ten producing fields in the UKCS 90 guidance • On track
Slide 8: Strategy in action: Rosebank
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Strategy in action: Pursuing high potential and low-carbon intensity projects to BUILD a robust long-life portfolio Rosebank 20% Rosebank development nearing Final Investment Decision WI • Single largest undeveloped discovery in
Slide 9: Strategy in action: Cambo
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Strategy in action: Pursuing high potential and low-carbon intensity projects to BUILD a robust long-life portfolio Cambo 70% Second largest undeveloped discovery in the UK North Sea WI • Signed Cambo marketing agreement with Sh
Slide 10: Strategy in action: Investing close to existing infrastructure
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Strategy in action: Investing in opportunities close to existing infrastructure Fast-track development close to existing K2 High potential drilling targeting advantaged-barrels at Fotla K2 infrastructure 50% WI 60% WI • Situated
Slide 11: Strategy in action: Pioneering Enhanced Oil Recovery Phase I
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Strategy in action: Pioneering Enhanced Oil Recovery (EOR) Phase I First stage of polymer recovery (EOR I) has produced over 10 MMBBL c.40% 16 5 of current Captain mmboe EUR (1) polymer patterns online • Polymer increases viscos
Slide 12: Continued development of Captain field (EOR Phase II)
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Strategy in action: Continued development of Captain field (EOR Phase II ) Enhancing oil recovery through the use of proven polymer flood technology • EOR Phase II commenced in 2021 with additional polymer injector wells and pro
Slide 13: Clear focus on decarbonisation across our portfolio
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Strategy in action: Clear focus on decarbonisation across our portfolio Captain: Electrification Overview Electrification Benefits • Electrification options being explored at flagship Captain asset • Over 70% of Captain’s GHG em
Slide 14: Financial Overview
Financial Overview Ithaca Energy plc 14 Q1 2023 Results – May 2023
Slide 15: Strong Q1 2023 performance
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Strong Q1 2023 performance Q1 2023 performance at a glance AVERAGE GROUP UNIT OPERATING COST PRODUCTION 75.3 kboe/d $20/boe GROUP ADJUSTED EBITDAX GROUP ADJUSTED NET INCOME $518.1m $158.4m GROUP NET CASH FLOW NET DEBT FROM OPERA
Slide 16: Increased EBITDAX contribution by barrel
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Increased EBITDAX contribution by barrel in Q1 2023 Production Realised Commodity Price Unit Operating Adjusted EBITDAX (kboe/d) ($/boe)1 Expenditure ($/boe)2 ($/boe) Oil 149 Gas 101 75 100 76 71 73 83 -32% -17% +5% 19 20 +4% +7
Slide 17: Q1 2023 Adjusted EBITDAX analysis
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Q1 2023 Adjusted EBITDAX analysis • Increase in adjusted EBITDAX per barrel of $76/boe despite reduction in realised commodity prices • Continued focus on managing unit operating cost in an inflationary environment • Hedging pos
Slide 18: Robust financial framework underpinned by low leverage
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Robust financial framework underpinned by low leverage and capital discipline • Strong cash flow generation in the quarter supporting the delivery of our capital allocation policy with RBL reduction and interim dividend payment
Slide 19: Actively managed hedge programme
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Actively managed hedge programme to protect revenue while accessing upside exposure Attractive hedge book with 10.7 mmboe (68% oil) hedged from Q2 2023 into 2025 Hedging gain in Q1 2023 of $77 million 30 Oil hedging Gas hedging
Slide 20: Balanced capital allocation framework
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook Balanced capital allocation framework supports strong sustainable returns Our robust and balanced capital allocation framework maximises growth while • Deliver committed organic capex that protecting the business from risks and
Slide 21: 2023 Outlook
2023 Outlook Ithaca Energy plc 21 Q1 2023 Results – May 2023
Slide 22: 2023 Guidance reaffirmed
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook 2023 Guidance reaffirmed Q1 2023 Q1 2023 FY 2023 Guidance Actual Guidance Production 70 - 72 75.3 68 – 74 Kboe/d Kboe/d Kboe/d Net Opex1 $130 – 150m $137m $560 – 630m Net Producing Asset Capex2 $90 – 110m $90m $400 – 460m Ithaca
Slide 23: 2023 Outlook
Q1 2023 Highlights Operational Overview Financial Overview 2023 Outlook 2023 Outlook FOCUS ON MAXIMISING VALUE TO SHAREHOLDERS THROUGH TARGETED INVESTMENT ACROSS OUR DIVERSE PORTFOLIO WITH SIGNIFICANT OPTIONALITY OVER CAPITAL ALLOCATION Buy Build Boost Capital Assets Assets Assets Allocation Targete
Slide 24: Q&A
Q&A Gilad Myerson Alan Bruce Iain Lewis Executive Chairman Chief Executive Officer Chief Financial Officer Ithaca Energy plc Q1 2023 Results – May 2023
Slide 25: Appendix
Appendix Cautionary Statement Ithaca Energy plc 25 Q1 2023 Results – May 2023
Slide 26: 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 27: Thank you
Thank you. Ithaca Energy plc Q1 2023 Results – May 2023