Energean Plc · LSE:ENOG
Energean — FY2022 Earnings Presentation
20 slides from Energean's earnings presentation, Mar 23, 2023
Slide 1: Full Year 2022 Results
Energean Full Year 2022 Results 23 March 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: 2022 – a transformational year for Energean
Highlights 2022 – a transformational year for Energean ➢ First gas from Karish in October 2022 ➢ Commissioning under the GSPAs is complete; sequentially notifying gas buyers that commercial obligations have commenced ➢ On track to deliver 4.5 – 5.5 bcm of gas to Israel in 2023 ➢ First hydrocarbon li
Slide 4: Driving market-leading production growth
Driving market-leading production growth Medium-term targets are now near-term, following first gas from Karish Sanctioned production target outlook Our near-term targets 250 x5 increase Cassiopea Production 200 First gas Kboed) 200 2024 Karish North & FPSO capacity increase Year-end 2023 Revenues $
Slide 5: Financial Review – FY 2022
Financial Review – FY 2022 Panos Benos, Chief Financial Officer
Slide 6: FY 2022 results
FY 2022 results FY 2022 FY 2021 % change Comment Working Interest Production 41.2 (75%) 41.0 (72%) 0% Kboed (% gas) Sales & Other Revenue Gas ~72% 737 497 48% $ million Liquids ~28% Cash Cost of Production Increase driven by higher royalties 18.9 17.5 8% $/boe and increased energy costs Cash S,G&A 3
Slide 7: 2023 guidance
2023 guidance FY 2023 Guidance Comment Working Interest Production 131 – 158 Guidance unchanged Kboed Cash Cost of Production1 600 – 700 Guidance unchanged $ million Development and Production Expenditure 580 – 640 Guidance unchanged $ million Exploration Expenditure 50 – 60 Guidance unchanged $ mil
Slide 8: Providing a reliable and sustainable dividend
Providing a reliable and sustainable dividend Three consecutive quarters of shareholder returns since maiden payment Dividends paid (US$/share) 0.30 0.30 0.30 Maiden dividend Q2 2022 Q3 2022 Q4 2022 Dividend policy $1 billion Targeting cumulative return of at least $1bn by end-2025 $50m/quarter to I
Slide 9: Prudent capital structure and robust financial framework
Prudent capital structure and robust financial framework Near-term target to reduce net debt / EBITDAX <1.5x tied to predictable cash flows from Israel Deleveraging profile Israel 2P volumes2 – Contracted and uncontracted gas profile Net Debt / EBITDAX Contracted gas under Annual Contracted Quantiti
Slide 10: Operational Review – FY 2022
Operational Review – FY 2022 Mathios Rigas, Chief Executive Officer
Slide 11: Karish – the core driver of our near-term targets
Karish – the core driver of our near-term targets Commissioning complete under GSPAs; production and ramp-up in line with expectations Commissioning Complete under the GSPAs; Energean now Excellent reservoir sequentially notifying gas buyers of the start of commercial deliverability confirmed FY23 p
Slide 12: Israel – Commercial
Israel – Commercial Commissioning under GSPAs complete, commercial period under GSPAs commencing; two liquids cargoes offloaded in 2023 Gas production Liquids production protected against downside commodity price risk pricing linked to global commodity prices Sale and purchase agreement Two hydrocar
Slide 13: Key projects progressing according to plan
Key projects progressing according to plan Karish Growth (Karish North & Project NEA/NI Cassiopea second oil train and gas riser) Expected start-up End-2023 2024 Country Energean share 100% (operated) 100% (operated) 40% (non-operated) W.I. Peak output 15-20 kboed (88% gas) >140-155 kboed (82% gas)
Slide 14: Strong reserves replacement performance
Strong reserves replacement performance 2022 reserve replacement driven by Olympus Area discoveries 2P reserves replacement (mmboe) Olympus Area Reserves replacement ratio (%) 1 year: 1400% 5 year: >3500% 2P 2022 finding cost: $0.7/boe1 1 Total exploration expenditure includes non-Israel spend 14
Slide 15: Olympus Area development options
Olympus Area development options Communication of development concept from Olympus Area expected in the coming months Development options Energean licences Vassilikos • Option 1: Backfill 8 bcm/yr FPSO with Olympus Area, which is prioritised over Tanin, to supply 2 Israeli domestic demand • Option 2
Slide 16: Egypt: Investing in low-cost and gas-rich assets
Egypt Investing in low-cost and gas-rich assets Egypt production forecast Abu Qir NEA/NI 50 45 W.I. Production (kboed) 40 35 30 25 20 15 10 5 0 2022 2023 2024 2025 Actual Guidance Forecast Forecast Highlights: • Abu Qir PSC amendment lifts gas price • NEA/NI first gas achieved in March ‘23, remainin
Slide 17: Rest of Portfolio: Ensuring security of supply
Rest of Portfolio Ensuring security of supply by continuing to invest Italy, Greece and Croatia Other Italy Cassiopea Greece Croatia 30 25 W.I. Production (kboed) 20 15 10 5 0 2022 2023 2024 2025 Actual Guidance Forecast Forecast Highlights: • Cassiopea first gas on track for 2024 • Two exploration
Slide 18: 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 Net Zero (scope 1 + 2) by 2050 plan Emissions intensity reduced Reduce Remove Neutralise • 13% reduction in emissions intensity in FY 2022 versus FY 2021 Reduce absolute Develop CCUS Inv
Slide 19: Key milestones for 2023
Key milestones for 2023 ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 20: Key upcoming catalysts
Key upcoming catalysts 1 FPSO capacity increase complete 2 Communication of development concept for the Olympus Area 3 Remaining NEA/NI wells onstream 3 Orion-X1 exploration well spud 4 Payment of quarterly dividend in line with policy 5 Achievement of short-term targets: 200 kboed production, $2.5b