Energean Plc · LSE:ENOG
Energean — Investor Presentation (February 2023)
32 slides from Energean's investor presentation, February 2023
Slide 1: Energean Corporate Presentation February 2023
Energean Corporate Presentation February 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: About us
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 Excellent reservoir deliverability confirmed Cash flow Fixed-price and long-term gas contracts ensure cash flow predictabilit
Slide 5: Where we operate
Where we operate Energean has operations in seven countries across the Mediterranean and UK North Sea UK Croatia • A mixture of production and high- • Production and a near-field potential appraisal assets development project Italy • Over 50 production, development and exploration licences Greece •
Slide 6: Our history
Our history 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
Slide 7: Our growth outlook
Our growth outlook 2023 a key step towards medium-term target of 200 kboed Our medium-term targets Sanctioned production outlook Israel Egypt Other 250 Production 200 ~5x increase in production to medium-term target of >200 kboed Kboed) 200 Revenues $2,500 Million Mid-point of 150 guidance shown $9
Slide 8: The path to 200 kboed – sanctioned projects
The path to 200 kboed – sanctioned projects Four projects expected online in 2023 Peak Energean Energean Expected Project Country production Comment share % operated start-up (kboed) 15-20 (88% Four well subsea tie-back to Abu Qir platform. NEA/NI Egypt 100 Yes H1 2023 gas) First well completed dril
Slide 9: Operational overview – Israel
Operational overview – Israel
Slide 10: 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 11: 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 12: 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 Israel GSPAs Commercialisation update End-2023 growth projects Full capacity – 8.0 bcm/yr • Karish onstream. Production level depends on the rate at bcm completed
Slide 13: 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 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 will be classified a
Slide 14: Olympus Area development options
Olympus Area development options CPR and development concept for Olympus Area targeted in H1 2023 Energean licences Development options Vassilikos • Option 1: Backfill 8 bcm/yr FPSO with Olympus 2 Area, which is prioritised over Tanin, to supply Israeli domestic demand • Option 2: Increase FPSO capa
Slide 15: Capital allocation
Capital allocation ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 16: Disciplined approach to capital allocation
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 17: Dividend
Dividend Payment of quarterly dividend in line with policy ongoing Quarter Cash dividend Declaration date Ex-dividend date Record date Payment date LSE – 15 Sep 22 LSE – 16 Sep 22 Q2 2022 30 US$ cents per share 8 Sep 2022 30 Sep 2022 TASE – 16 Sep 22 TASE – 18 Sep 22 LSE – 8 Dec 22 LSE – 9 Dec 22 Q3
Slide 18: Dividend protected by solid predictable cashflows
Dividend protected by solid predictable cashflows, underpinned by long-term gas contracts with floor prices Sanctioned portfolio – resilient to commodity price downturns Medium-term target >200 kboed Access to market prices 200 Group liquids (Brent, Italian PSV gas price) Israel gas Italy gas 150 Eg
Slide 19: Capital structure
Capital structure Optimised capital structure in 2021 Debt maturity structure 6-year Average All interest average interest rate Revolving Credit Facility (RCF) Greek State-Backed Loan rates fixed maturity1 c.5.5% Energean PLC Senior Secured Notes Energean Israel Senior Secured Notes Overview 700 Pot
Slide 20: Net debt
Net debt Net debt position – 12-Months 2022 Net debt / EBITDAX 31 Dec 2022 $ million • As of 31 December 2022 • Group (excluding Israel): Cash – excluding Israel 403 • Net debt – $146.9 million Cash – Israel 95 • EBITDAX – $420.1 million • Net debt / EBITDAX – 0.3x Cash – Group1 498.0 • Group (inclu
Slide 21: ESG
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 22: 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 23: Exploration
Exploration ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 24: 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 25: Key milestones for 2023
Key milestones for 2023 ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 26: 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 27: Appendix
Appendix ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 28: 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 29: 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 30: 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 31: Strategically placed to supply gas into a region with growing demand
Strategically placed to supply gas into a region with growing demand East Med demand (2021 – 2040)1,2 East Med supply (2021 – 2040)1 160 160 140 140 120 120 100 100 Bcm Bcm 80 80 60 60 40 40 20 20 0 2021 2025 2030 2035 2040 0 2021 2030 2040 Egypt demand Israel demand Jordan demand Egypt supply Israe
Slide 32: 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