Energean Plc · LSE:ENOG
Energean — FY2022 Earnings Presentation
18 slides from Energean's earnings presentation, Jan 19, 2023
Slide 1: 2022 Review & 2023 Outlook
Energean 2022 Review & 2023 Outlook 19 January 2023
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: Highlights
Highlights #1 Financials • Revenues of $737 million (+48%) and Adjusted EBITDAX of $419 million (+97.3%) • On track to deliver annualised mid-term targets of $2.5bn revenues and $1.75bn EBITDAX • Group liquidity at 31 Dec 2022 of $719 million, • Ensuring Energean is fully funded for all sanctioned p
Slide 4: Production – 2022 review
Production – 2022 review Underlying (ex-Israel) production in line with guidance FY 2022 2022 production vs guidance1 Gas Liquids 45 44 - 47 1.1 41.0 5.3 40 92% 35 9.5 Egypt and Italy produced above mid-point of guidance 30 25.1 41% 25 kboed Israel production was lower than forecast due to the proje
Slide 5: Production – outlook
Production – outlook 2023 a key step towards medium-term target of 200 kboed Sanctioned production outlook >70% CAGR ‘22-25e Israel Egypt Other In line with medium-term of 200 kboed 250 CAGR higher than any other UK-listed peer1 ~5x increase in production to medium-term target of >200 kboed 200 >75%
Slide 6: Financials – 2022 review and 2023 guidance
Financials – 2022 review and 2023 guidance 2022 actuals1 2023 guidance 41.0 kboed Production Production 131 – 158 kboed (75% gas) Cash Cost of Production Revenue $737 million (Operating costs + royalties) $600 – 700 million Development & Cash Cost of Production (Operating costs + royalties) $284 mil
Slide 7: Maiden dividend
Disciplined approach to capital allocation Clear capital allocation framework focused on maximising shareholder returns 1 Dividends 2 Organic growth 3 M&A 4 Capital structure • Karish + key growth projects • Built through 4 value- • On track to reduce net debt / key to delivering mid-term accretive
Slide 8: ESG – at the heart of Energean’s operations
ESG – at the heart of Energean’s operations Supplying energy for a just transition; committed to net zero by 2050 Energean’s ESG strategy Energean’s Net Zero plan 2019 2022 2025 2035 2050 Provide affordable and reliable energy Increase gas production For our shareholders and societies in which we op
Slide 9: Operational update
Operational update ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 10: Karish – the core driver of our medium-term targets
Karish – the core driver of our medium-term targets Projects on track to deliver 8 bcm/yr FPSO capacity by end-2023 Gas capacity and production ramp-up Production All three Karish Commissioning Period and Karish North production well wells online and growth projects production wells online Commercia
Slide 11: The path to 200 kboed – sanctioned projects update
The path to 200 kboed – sanctioned projects update Four projects expected online in 2023 Peak Energean Energean Expected Project Country production Comment share % operated start-up (kboed) NEA#6 well, which will be the first well 15-20 (88% NEA/NI Egypt 100 Yes H1 2023 onstream, completed drilling
Slide 12: Olympus Area development options
Olympus Area development options CPR and development concept for Olympus Area targeted in H1 2023 Total discovered in 2022 (bcm) Olympus Area development options Olympus Area: c. 3 c. 75 • Focus of near-term 7 development plans • CPR in 1Q 2023. c. 37 Energean expects c. 30 bcm1 of the total 67 bcm
Slide 13: Exploration – 2023 lookahead
Exploration – 2023 lookahead Targeting new resources Exploration – 2023 lookahead Egypt 2023 exploration North East Hap’y exploration well expenditure guidance Izabela-9 • Operator: IEOC (Eni) $50 – 60 million • Energean share: 30% (expected to farm-down 12% & retain 18%) • Location: North East Hap’
Slide 14: Key milestones for 2023
Key milestones for 2023 ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 15: Key upcoming catalysts
Key upcoming catalysts 1 Karish FPSO commissioning process complete – February 2023 First gas at NEA/NI – H1 2023 2 Karish debottlenecking complete – end 2023 3 CPR and development concept for Olympus Area – H1 2023 4 Payment of quarterly dividend in line with policy – ongoing 5 Assess options for 2
Slide 16: Appendix
Appendix ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 17: Karish North, 2nd gas riser and 2nd oil train
Karish North, 2nd gas riser and 2nd oil train Milestones to FPSO debottlenecking and Karish North first gas Second oil train & gas riser debottlenecks FPSO capacity to 8 Bcm/yr + 32 kboe/d Growth projects timeline1 H1 – 2022 H2 - 2022 H1 - 2023 H2 - 2023 Installation of subsea Karish structures Nort
Slide 18: Windfall taxes
Windfall taxes Main exposure is in Italy, which makes up <10% of Energean’s medium-term production target Group windfall tax exposure Relative contribution to mid-term production target Exposed to 2022-23 windfall tax. 2022 windfall fully paid in 2022, 2023 windfall tax to be paid in June Italy 2023