Ithaca Energy Plc · LSE:ITH
Ithaca Energy — H1 2024 Earnings Presentation
40 slides from Ithaca Energy's earnings presentation, Aug 22, 2024
Slide 1: 2024 Half Year Results
ITHACA ENERGY 2024 Half Year Results Ithaca Energy plc 22 August 2024
Slide 2: Today's presenters
Today’s presenters Yaniv Friedman Executive Chairman lain Lewis Interim Chief Executive Officer Chief Financial Officer
Slide 3: Agenda
Agenda 1 H1 2024 Highlights 2 Transformational Combination with Eni UK 3 Operational Overview 4 Financial Overview 5 Closing Remarks 6 Q&A
Slide 4: H1 2024 Highlights
H1 2024 Highlights ITHACA ENERGY
Slide 5: Continued execution of 2024 strategic objectives
Continued execution of 2024 strategic objectives across transformational Business Combination, achieving major project milestones and driving robust cash flow generation and strategy, announcing Transformational Business Combination, implementing Eni’s regional satellite model Captain EOR Phase II p
Slide 6: Transformational Business Combination with Eni UK
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Slide 7: Transformational Business Combination with Eni UK
Transformational Business Combination with Eni UK creating a dynamic UKCS and International growth player 1. Creates a platform for value-driven growth 2. Establishes a diverse and high-value portfolio at scale 3. Enhances the Group’s capabilities via Eni partnership 4. Supports attractive and susta
Slide 8: Compelling combination creating a large, diversified and long-life portfolio
Compelling combination creating a large, diversified and long-life portfolio sa eni (UK Assets) 3 =) Working Interest: 21.9% (Elgin Franklin) 8% (Glenelg) Highly cash-generative UKCS production portfolio Material 2P Reserves base of 101 mmboe! Leading operational and technical capabilities Strong co
Slide 9: Creates a strategic platform for value-driven growth
Creates a strategic platform for value-driven growth Dynamic growth player with significant organic and inorganic growth optionality Largest resource base in the UKCS, with potential to be largest producer by 2030, offers significant organic growth optionality via highly complementary and diversifie
Slide 10: Rosebank Mariner Cambo Cygnus
Rosebank Mariner Cambo Cygnus Schiehallion Elgin / Franklin Captain J Area Gas Liquids
Slide 11: Combined Entity 2P and 2C production profile
200 Combined Entity 2P Combined Entity 2C 180 160 • 140 120 100 • 80 60 40 • 20 0 H2 2024 2025 2026 2027 2028 2029 2030 2031 2032 • • 2P 2C Greenfield Brownfield Operated Non-operated
Slide 12: Eni partnership enhances the Group's capabilities
Eni partnership enhances the Group’s capabilities Combining the agility of an independent with the capabilities of a major Seeks to replicate the success of Eni’s strategic satellite model in mature basins AZULE ~O- —_|+-o SPAR enitive ee tude ccus ITHACA Source: Eni Company Information, Wood Macken
Slide 13: Ithaca Energy Combined Group
Ithaca Energy Combined Group Ithaca Energy Combined Group Ithaca Energy Combined Group
Slide 14: Disciplined and balanced capital allocation framework
Disciplined and balanced capital allocation framework Capital allocation framework supporting long-term growth and attractive sustainable shareholder returns 1. INVEST Illustrative posttax CFFO Sustaining capex Includes all post-FID projects (including Rosebank) expected to maintain combined product
Slide 15: Enhanced balance sheet and financial strength
Enhanced balance sheet and financial strength Addition of Eni’s unlevered assets provides greater debt Increased scale capacity and access to more diverse pools and lower-cost sources of capital The Combined Group has a combined utilisable $6.0 bn of RFCT losses and c. $5.0 bn of SCT losses as of 31
Slide 16: Combination supports responsible operations with decarbonisation focus
Combination supports responsible operations with decarbonisation focus Delivering critical energy security while fundamentally transitioning the portfolio over the medium to long-term through investment in low carbon intensity assets Focus on portfolio optimisation and Significant shift to lower emi
Slide 17: Strengthened Leadership Team and operational capabilities
Strengthened Leadership Team and operational capabilities Strengthened executive and operational teams, augmented by Eni, reflects the ambition, experience and operational rigour required to deliver the next phase of transformational growth Executive Board Directors: Yaniv Freidman < iano Vasques Ex
Slide 18: Eni and Delek as long-term supportive shareholders
Eni and Delek as long-term supportive shareholders Fully aligned partnership between Eni and Delek in support of Ithaca Energy’s long-term growth strategy with shared ambition to enhance liquidity in shares through increased breadth and depth of institutional investors Lead value in the sector via n
Slide 19: Targeted timeline to completion
Targeted timeline to completion On track for early Q@4 2024 completion Early Q4 April 2024 Today Sep 2024 Q3 2024 2024 Combination announced Shareholder Regulatory and Targeted meeting government completion approvals 19 ITHACA ENERGY PLC H1 2024 RESULTS - AUGUST 2024
Slide 20: Operational Overview
Operational Overview ITHACA ENERGY
Slide 21: Production by quarter and pro forma 2024
• 120 • • 100 • 80 • 60 • 40 • 20 • • 0 Q1 2024 Q2 2024 H2 2024 Pro forma 2024 Combined Business •
Slide 22: EOR Phase II project successfully executed, with continued high activity levels
22 EOR Phase II project successfully executed, with continued high activity levels Build and Boost Assets Project successfully Rig recertification in Front End Engineering executed with first polymer support of Q3 platform Design (FEED) study for injection in subsea area drilling campaign partial el
Slide 23: Project activity progressing materially towards first production timeline of 2026/27
Project activity progressing materially towards first production timeline of 2026/27 Activity progressing along multi-year Key milestone achieved with execution Preparation in H2 will focus on rig development timeline including upgrade of major subsea campaign ahead of readiness in support of drilli
Slide 24: Financial Overview
lew Overv ENERGY
Slide 25: H1 2024 financial performance
25 H1 2024 financial performance a INTERIM 2024 DIVIDEND DECLARED $100m AMBITION FOR 2024 DIVIDEND! 3 well as Combined Grou H1 2024 Performance at a glance AVERAGE PRODUCTION UNIT OPERATING COST 53.0 kboe/d $27.3/boe NET CASH FLOW FROM OPS $559.8m ADJUSTED EBITDAX STATUTORY NET INCOME $533.0m $105.7
Slide 26: Adjusted EBITDAX analysis
Adjusted EBITDAX analysis H1 2024 H1 2023 FY 2023 Production kboe/d mmboe kboe/d Mmboe kboe/d mmboe Oil 34 é 47 8 43 16 Gas 16 8 26 5 24 9 Condensate 3 1 3 1 3 1 Total production 53 10 76 14 70 26 Revenues! $/boe $m $/boe $m__§/boe Sm Oil revenue 87 546 85 650 85 1,330 Gas revenue 57 170 82 380 76 6
Slide 27: Liquidity and debt facilities
30 Jun 22 31 Dec 22 31 Dec 23 30 Jun 24 Total Drawn Undrawn Cash Liquidity 31 Dec 22 31 Dec 23 31 Dec 23 Available Facilities Facilities Facilities Senior Notes Other RBL (less cash)
Slide 28: Oil price and gas price
100 200 180 90 160 140 80 120 70 100 80 60 60 40 50 20 40 0 Oil price ($/bbl) Gas Price (p/therm)
Slide 29: Closing Remarks
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Slide 30: 2024 Guidance for Business Combination
2024 Guidance for Business Combination PRODUCTION 54-57 kboe/d NET OPERATING COST? $540-590m NET PRODUCING ASSET CAPEX® $335-385m ROSEBANK CAPEX $170-195m CASH TAX $300-320m ITHACA ENERGY 56-61 kboe/d $540-590m $335-385m $190-230m $345-355m PRODUCTION 76-81 kboe/d NET OPERATING COST $650-730m NET PR
Slide 31: Revenue, Rosebank capex and cash tax bridge
• 0 Revenue Rosebank Capex Cash Tax Cash -10 -20 • -30 • -40 -50 • -60 • -70 -80 -90
Slide 32: Closing remarks
Closing remarks Transformational Business Combination with Eni’s 1 S.p.A’s UK business announced 23 April creating dynamic UKCS growth player Executive and leadership changes announced to 2 deliver the next phase of transformational growth, effective post completion Captain EOR Phase II delivered on
Slide 33: Appendix
ENERGY
Slide 34: ENERGY
ENERGY
Slide 35: Hedging positions: oil and gas
30 80 Oil Puts/Wide ZCCs Oil Collars Oil Swaps Gas Puts/Wide ZCCs Gas Collars Gas Swaps 25 70 60 20 50 15 40 30 10 20 5 10 0 0 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26
Slide 36: Access to Eni's leading capabilities to support Ithaca Energy's next phase of growth
Access to Eni’s leading capabilities to support Ithaca Energy’s next phase of growth & S Operational Excellence Global Presence and Market Access Energy Transition Expertise * Track record of successful strategic ‘+ Eni's global presence and relationships to + Eni expertise in energy transition to h
Slide 37: Building on Eni's exceptional exploration heritage
Building on Eni’s exceptional exploration heritage | Eni is an award-winning and recognised leader in exploration | Eni has added more reserves than all other |OCs in 2011-2023 ! Commercial Discoveries (Bn boe) rte * Exploration is a distinctive competence of the company and a key driver for value c
Slide 38: Important notice
THIS PRESENTATION, ITS CONTENTS AND ANY INFORMATION PROVIDED OR COMMUNICATED DURING ANY PRESENTATION OR DELIVERY OF THIS PRESENTATION ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAP
Slide 39: Forward-looking statements
Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. The words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “forecas
Slide 40: Thank You!
ITHACA ENERGY Thank You!