Energean Plc · LSE:ENOG
Energean — Investec Best Ideas Conference 2022
19 slides from Energean's conference presentation, November 2022
Slide 1: Energean – Investec Best Ideas Conference 2022
Energean Investec Best Ideas Conference 2022 November 2022
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Energean believes the expectations reflected herein to be reasonable considering the infor
Slide 3: Our investment case
Our investment case ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 4: Energean – our investment case
Energean– our investment case The leading independent, gas and ESG-focused E&P in the Mediterranean Project Flagship Karish project brought onstream in October 2022 delivery Cash flow Fixed-price and long-term gas contracts ensure cash flow predictability predictability Medium-term 200 kboed gas-foc
Slide 5: Created through four successful value-accretive acquisitions in the Mediterranean
Created through four successful value-accretive acquisitions in the Mediterranean Transaction Consideration Consideration Geographic Year MMboe details $ million $/boe location 2007 Prinos 2 1.5 0.75 2016 Karish & Tanin 196 148 0.76 (+ Royalties) 2020 Edison E&P 287 203 0.71 30% Minority 405 2021 18
Slide 6: Karish, Karish North & Tanin – flagship assets
Karish, Karish North & Tanin – flagship assets Karish brought onstream in October 2022, production ramping up Material reserve Long-term gas contracts Fully owned Growing production capacity base with floor prices infrastructure (100% W.I.) Reduces commodity price risk; 744 mmboe1 (86% gas) Initial
Slide 7: Karish – the core driver of our medium-term targets
Karish – the core driver of our medium-term targets Karish brought onstream in October 2022, production ramping up Gas production ramp-up Production All three Karish Commercial ramp-up following 3-5 Karish North production well wells production wells online online and growth projects months onstream
Slide 8: Revenues underpinned by long-term gas contracts with floor pricing
Revenues underpinned by long-term gas contracts with floor pricing Delivering competition, security of supply and driving coal phase out 7.2 bcm/yr gas sales agreements in Israel1 Commercialisation update bcm H2 2023 Full capacity – 8.0 bcm/yr • Karish onstream. Production level depends on the rate
Slide 9: Growth – Four key development projects
Growth – Four key development projects Delivering over 820 MMboe across the East Med, with a focus on gas Overview of key development assets Israel: Karish North & Egypt: NEA / NI Tanin (100%) (100%) • Karish North (end-2023) & • NEA / NI first gas on track for Tanin (2027) year-end 2022 • Conventio
Slide 10: Growth – Israel 2022 drilling campaign
Growth – Israel 2022 drilling campaign 5/5 successful wells; one exploration well remaining Discovery (3) Karish North-01 Completed (1) Athena-01 Drilling (5) Zeus-01 (2) Karish Main-04 (6) Hercules-01 (4) Hermes-01 Well no. Well name Operator / share Pre-drill estimate Status 8 bcm discovery, upgra
Slide 11: Growth – The Olympus Area following Athena & Zeus success
Growth – The Olympus Area following Athena & Zeus success Working towards a Final Investment Decision in 2023 Olympus area – 67 bcm discovered & de-risked Volumes Name Commercial (bcm) 11.75 Athena (Audited 2C) 13.3 Zeus (Unaudited 2C)1 Remaining c. 422 Olympus (Unrisked P50) Area 1 Unaudited manage
Slide 12: Solid predictable cashflow, underpinned by long term contracts
Solid predictable cashflow, underpinned by long term contracts Underpinning a recurring and reliable dividend Sanctioned portfolio – resilient to commodity price downturns Medium-term target >200 kboed 200 Access to market price Group liquids (Brent, Italian PSV) Israel gas Italy gas 150 Egypt gas c
Slide 13: Beyond the mid-term – our capital allocation strategy
Beyond the mid-term – our capital allocation strategy Strong capital allocation framework focused on maximising shareholder returns Maximise shareholder value • Committed to returning > $1bn by end-2025 Dividends • Initially $50m/quarter, increasing to at least $100m/quarter once medium-term targets
Slide 14: Top-tier ESG credentials with a focus on reducing carbon emissions
Top-tier ESG credentials with a focus on reducing carbon emissions Actual emissions reduction1 Highlights 80 Emissions intensity reduced • c. 5.5% reduction in emissions intensity in H1 2022 70 66.8 versus FY 2021 Carbon intensity scope 1 & 2 (kgCO2e/boe) • 2022 emissions intensity guidance 15 kgCO2
Slide 15: Key upcoming operational catalysts
Key upcoming operational catalysts 1 Ramp-up of Karish production to 6.5 bcma 2 Results from Hercules well 3 First gas from NEA/NI 4 Progression of dividend payment Delivery of Israel growth projects (second oil train and riser) – 8 bcma 5 production 6 Further commercialisation of resources, includi
Slide 16: Appendix – overview
Appendix — overview ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 17: Egypt – update
Egypt – update H1 2022 – key statistics Egypt production outlook1 Abu Qir NEA/NI Improved gas 24.8 86% gas pricing 45 kboed production at Abu Qir Growing production to c.40 kboed 40 Working interest production (kboed) Asset highlights 35 Abu Qir 30 • NAQ-PII#6 infill well online • PSC amendment lift
Slide 18: Italy – update
Italy – update H1 2022 – key statistics Italy production outlook2 25 Other Italy Cassiopea 9.3 43% gas $95 million kboed production OCF H1 2022 Growing production to c.20 kboed 20 Asset highlights Working interest production (kboed) 15 Enhanced operating cash flow • c. 80% of Group’s $147 million H1
Slide 19: Greece – Conversion of Prinos to CCUS
Greece – Conversion of Prinos to CCUS The first CO2 storage in the East Med. designed to service Greek industry & regional emitters Key Investment Highlights Prinos CO2 Storage Key Highlight The East Med’s Only CCS Project Under Evaluation • Preliminary results from subsurface study indicate that th