Energean Plc · LSE:ENOG
Energean — FY2021 Earnings Presentation
32 slides from Energean's earnings presentation, Mar 24, 2022
Slide 1: Full Year 2021 Results
Energean Full Year 2021 Results 24 March 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: Key Messages
Key Messages Record Financial Results Karish On Track For First Gas in Q3 2022 Announcement of Dividend Policy Commencement of Largest Drilling Programme in The Med in 2022 2021 ESG Goals Achieved, On Track To Meet Net Zero Target 3
Slide 4: 2021 Review: A Record Year For Energean
2021 Review: A Record Year For Energean
Slide 5: Achievements
Achievements We delivered on…. 1 2 FINANCIAL RESULTS CAPITAL STRUCTURE i. c. 50% y-o-y increase in revenues to $497 i. Over $3 billion raised from the capital debt million markets, extending average life of debt to 6 ii. c. 95% y-o-y increase in EBITDAX to $212 years million ii. Achieved blended cos
Slide 6: ESG – 2021 Results
ESG – 2021 Results Y-o-Y Emissions Intensity Reduced + Best In Class ESG Ratings Actual Emissions Reduction1 Key Actions Taken in 2021 80 ✓ First Climate Change Policy published Agreements for purchase of “Green Electricity” in place 70 66.8 ✓ at operated sites in Israel, Greece and Italy 60 ✓ Zero-
Slide 7: 2021 Review and 2022 Guidance: Financials
2021 Review and 2022 Guidance: Financials
Slide 8: Full Year 2021 Results – Key Figures
Full Year 2021 Results – Key Figures Record Financial Performance & Strong Operational Performance A Year On From Edison Deal Close Pro forma Consolidated FY 2021 FY 20201 FY 20201 Working Interest Production 41.0 (72%) 48.3 (74%) 3.6 (39%) Kboed (% gas) Sales & Other Revenue 497 336 28 $ million Ca
Slide 9: Receivables Position – Egypt
Receivables Position – Egypt Material Reduction In Receivables Position Successfully Reduced Receivables Position1 Edison E&P Transaction Close 160 17 Dec 2020 140 120 Reduced EGPC receivables to $95 million at 31 December 2021 (c.40% y-o-y reduction) 100 $ million 80 Targeting 40% y-o-y reduction 6
Slide 10: 2022 Guidance and Medium-Term Outlook
2022 Guidance and Medium-Term Outlook Guidance Maintained Compared To January 2022 Update 2022 Guidance Medium-Term Targets 60.0 – 70.0 kboed Production (inc. Israel) 35.0 – 40.0 kboed Production 200 Kboed) (ex. Israel) No change No change Cost of Production1 $360 – 390 million Revenues $2,000 Milli
Slide 11: Sustainable Capital Structure Put in Place
Sustainable Capital Structure Put in Place $450 Million Corporate Bond Enhances Liquidity And Extends Maturity Profile New Debt Maturity Structure ✓ Average 6-Year Maturity ✓ Average Interest Rate c.5.5% ✓ Converted Floating Rates to Fixed Optimised Debt Structure with Potential to refinance 2024-26
Slide 12: Low Leverage and Ring-Fenced Project Financings
Low Leverage and Ring-Fenced Project Financings Energean Group Cash: $381 million1 Net Debt: $103 million1 2021 EBITDAX: $212 million Leverage: 0.5x Credit Rating: B+ Ring-fenced to the Israel Project Ring-fenced to the Greek Project i.e. non-recourse to Energean PLC i.e. non-recourse to Energean PL
Slide 13: Dividend Policy
Dividend Policy ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 14: Dividend Policy
Dividend Policy Investment To Shareholders Via Dividends, In Addition To Value WHEN WILL PAYMENTS BEGIN? • Energean is targeting launch of its inaugural dividend, to be paid no later than Q4 2022, following first gas from Karish (Q3 2022). WHAT IS THE POLICY AND QUANTUM? • It is the Company’s goal t
Slide 15: Foundation from Israel Cashflow, Upside From Growth
Foundation from Israel Cashflow, Upside From Growth Providing A Recurring + Reliable Dividend Resilient To Commodity Price Fluctuations Potential New Resources From Ongoing Israel Drilling Campaign + Regional Gas Demand & Export Opportunities = Upside from Growth Medium-Term Target >200 kboed 200 Gr
Slide 16: Operational Update – Production & Karish
Operational Update – Production & Karish
Slide 17: FY21 Production – Performed Above Initial Expectations
FY21 Production – Performed Above Initial Expectations Edison Assets Outperformed Under Energean Management 2021 Production – Above Initial Guidance Egypt – FY21 WI Production of 29.1 kboed (87% gas) 45 Reducing gas production decline rate from Abu Qir 41.0 • FY21 production performed above initial
Slide 18: Flagship Project Karish
Flagship Project Karish On Track For First Gas in Q3 2022 WORKING INTEREST PRODUCTION CAPACITY RESERVES1 100% operator 8 Bcm/yr + 32 kbbl/d 2P - 100 Bcm + 101 MMbbl Via Kerogen Stake Acquisition (>170 kboe/d total) (744 MMboe) Karish Project Update Connected to Entered Dry Dock First Gas Reiterated
Slide 19: Operational Update – Growth Projects
Operational Update – Growth Projects
Slide 20: Israel Organic Growth – Two Projects Underway
Israel Organic Growth – Two Projects Underway Phase 1 – Karish North and Increasing Capacity To 8 Bcm and 32 Kboed (1) (2) $275 million total 2nd Oil Train & Gas Riser Karish North committed expenditure increases FPSO capacity 33 Bcm + 30 MMbbl across both projects2 to 8 Bcm + 32 kboe/d (244 MMboe)
Slide 21: Egypt – NEA/NI – Organic Growth
Egypt – NEA/NI – Organic Growth Project On Track For H2 2022 Start-Up Growing Egypt Production1 Abu Qir NEA/NI 45 40 Working Interest (kboed) 35 30 25 20 15 Growing production to c.40 kboed, 10 in line with medium-term targets 5 0 2021 2022 2023 2024 NEA/NI Update FID taken in January 2021 • Project
Slide 22: Italy – Cassiopea – Organic Growth
Italy – Cassiopea – Organic Growth On Track For H1 2024 Start-Up Growing Italy Production1 Other Italy Cassiopea 20 18 Working Interest (kboed) 16 14 12 10 8 6 Growing production to c.20 kboed, 4 in line with medium-term targets 2 0 2021 2022 2023 2024 2025 Cassiopea Gas Project Cassiopea Update Ita
Slide 23: Greece – Epsilon – Organic Growth
Greece – Epsilon – Organic Growth Epsilon Project On Track For H1 2023 Start Up EA-H3 drilled from Growing Greece Production1 Prinos platform, online Prinos + Epsilon Ph.1 + Epsilon Ph.2 (Unsanctioned) 14 12 Working Interest (kboed) 10 8 6 EL wells are the three re-completions, due 4 Growing product
Slide 24: Commercial & Exploration Update
Commercial & Exploration Update
Slide 25: Flagship Karish Assets Underpinned by Long-Term Gas Contracts
Flagship Karish Assets Underpinned by Long-Term Gas Contracts Delivering Competition, Security Of Supply & Displacing Coal 7.2 bcm/yr Gas Sales Agreements in Israel1 Commercialisation Update bcm • Q3 2022 – Karish first gas. Production level depends on Spot agreement enables potential to reach 8 Bcm
Slide 26: Regional Gas Demand & Export Opportunities
Regional Gas Demand & Export Opportunities Establishing A Gas Production Hub In The East Med East Med Gas Demand Source: IHS Markit, November 2021; EGP = Egypt, ISR = Israel, PSE = Palestine, JOR = Jordan 26
Slide 27: Drilling Commenced In March – Firm + Optional Wells
Drilling Commenced In March – 3 Firm + 2 Optional Wells Phase 2 – Organic Growth Via The Drill-Bit Audited prospect size1 Audited probability Well Spud date Type Gas (Bcm), Total (MMboe) of success1 (1) Athena-01 11 March 2022 Exploration (Firm) 21 140 77% (2) Karish Main-04 (inc. Appraisal (inc. Q2
Slide 28: Roadmap to Net Zero
Roadmap to Net Zero ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 29: Road Map To Net Zero By 2050
Road Map To Net Zero By 2050 Medium & Long-Term Climate Change Plan, As Published In Our 2021 Climate Change Policy Short, Medium & Long-Term Climate Change Plan Short-Term GAS Increased Gas 80 Production Plan: by 2025 70 66.8 Asset Natural-Based Performance Solution 60 Optimization Projects Medium-
Slide 30: Greece – CCS Project
Greece – CCS Project Project Has The Potential To Offset All Of Energean’s Forecasted Emissions Prinos CCS Update “Green Prinos” The East Med’s Only CCS Project Under Evaluation • Prinos subsurface volumes are sufficient to sequester up to 100 Hydrogen million tonnes of CO2 – Greece emitted over 45
Slide 31: Key Milestones For The Remainder Of 2022
Key Milestones For The Remainder Of 2022
Slide 32: Key Milestones For The Remainder Of 2022
Key Milestones For The Remainder Of 2022 1 First Gas from Karish in Q3 2022 Athena and KM-04 Well Results + Up to 2 Additional Offshore Israel 2 Exploration Wells 3 First Gas from NEA/NI In H2 2022 Targeting Inaugural Dividend To Be Paid No Later Than During Q4 2022, 4 Following First Gas from Karis