Energean Plc · LSE:ENOG
Energean — H1 2024 Earnings Presentation
22 slides from Energean's earnings presentation, Sep 11, 2024
Slide 1: Half Year 2024 Results
Energean Half Year 2024 Results 11 September 2024
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
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 4: Highlights
Highlights Record production and financial results with double digit year-on-year growth Record production and growth Strong financial performance ➢ Achieved record monthly production of 177 kboed. ➢ Group revenues of $867 million, up 47% year-on-year. ➢ H1 2024 production increased to 146 kboed (+3
Slide 5: Sustainability – at the heart of Energean's operations
Sustainability – at the heart of Energean’s operations Committed to net zero by 20501; progressing decarbonisation business Emissions intensity reduction since original baseline year (2019) 80 Emissions intensity reduced ➢ 20% year-on-year reduction, primarily driven by contribution of Israel. 70 ➢
Slide 6: Strategic sale of Egypt, Italy and Croatia portfolio to Carlyle
Strategic sale of Egypt, Italy and Croatia portfolio for an EV of up to $945 million to Carlyle on track to close by year-end 2024 Transaction path to closing Carlyle received Outstanding Egypt approval in relation to and Italy government All anti-trust and the Italian Golden SPA signed in approvals
Slide 7: Retaining material revenue and reserves base following Carlyle Transaction
Retaining material revenue and reserves base following completion of the Carlyle Transaction Group W.I. production (kboed) Sales & Other Revenue ($ million) 180 154 1000 146 867 150 120 106 750 588 104 113 90 643 500 70 376 60 250 30 34 40 39 212 224 0 0 H1 2023 H1 2024 8-Months to H1 2023 H1 2024 3
Slide 8: H1 2024 Review and 2024 Guidance: Financials
H1 2024 Review and 2024 Guidance: Financials
Slide 9: H1 2024 results – key figures
H1 2024 results – key figures Material y-o-y revenue growth from continuing operations Sales & Other Revenue +47% 1,000 +71% 867 800 643 $ million 600 588 +6% Upside to global 376 commodity prices (40%) 400 212 224 Long-term contracted 200 gas (60%) 0 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 Disposal gro
Slide 10: Disciplined approach to capital allocation
Disciplined approach to capital allocation Focused on stable predictable cash flows and maximising total shareholder return 1 Dividend 2 Deleveraging 3 Organic growth 4 Opportunistic but disciplined M&A • Q2 2024 dividend of 30 US$ • Reduced leverage to 2.5x at • Immediate focus on Katlan, • Built t
Slide 11: 2024 guidance
2024 guidance Production Guidance FY 2024 Energean Group Continuing operations Comments 155 – 165 Total Production (kboed) 115 – 125 Narrowed to reflect year-to-date production (from 155 – 175) Financial Guidance FY 2024 Energean Group Continuing operations Comments 2,900 – 3,000 Increased due to De
Slide 12: Investment Case & Outlook
Investment Case & Outlook ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 13: Israel – Katlan sanctioned: subsea tie-back to the FPSO
Israel – Katlan sanctioned: subsea tie-back to the FPSO First gas targeted for H1 2027 No seller royalties with volumes that will extend the plateau Athena and Zeus to be drilled in 2026. Hera and Apollo expected in 2028 Capex includes investment for (3 bcm1) future phases (13 bcm1) (13 bcm1) Phase
Slide 14: Israeli gas market dynamics – 7 bcm growth by 2030
Israeli gas market dynamics – 7 bcm growth by 2030 Outlook resilient despite geopolitical backdrop Israel electricity generation outlook (TWh/year) Israel gas demand growth drivers (2023 – 2030, bcm) 200 25 1 -2 3 Gas 20 Renewables 20 5 150 Coal CAGR 15 13 +4% +7 bcm 100 10 50 5 0 0 2023 domestic El
Slide 15: Pro-forma business: Israel production is the foundation of Energean
Pro-forma business: Israel production is the foundation of Energean, delivering long-term and visible cash flows Israel gas and liquids production outlook Source: D&M YE23 CPR 180 Focused on extending production plateau Israel 160 Material 2P • Flagship Karish, Karish North, Katlan reserve base of a
Slide 16: Inorganic growth targets
Inorganic growth targets Energean will continue to evaluate opportunistic M&A that is aligned with its key business drivers Creating value through capital discipline Energean has executed five well-timed deals, taking advantage of the opportunities in the market with strict capital discipline. Year
Slide 17: Appendix: Supplemental Financials
Appendix: Supplemental Financials For the six months ended 30 June 2024
Slide 18: Sales volumes and realised pricing
Sales volumes and realised pricing Six months ended 30 June 2024 Revenue Sales Volumes $ million H1 2024 H1 2023 kboe H1 2024 H1 2023 Gas sales Gas sales volumes Israel 388 267 Israel 16,323 11,322 Europe 1 1 Europe 17 15 Total gas sales – continuing operations 389 268 Total gas sales volumes – cont
Slide 19: Income statement
Income statement Six months ended 30 June 2024 (Unaudited) Interim Income Statement $ million H1 2024 H1 2023 % change Revenue 642 376 72% Cash cost of production (327) (221) 48% Cash cost of production ($/boe) (10) (12) (17%) Administrative expenses (16) (12) 33% Exploration and evaluation expenses
Slide 20: Balance sheet
Balance sheet As at 30 June 2024 Assets Liabilities and equity $ million 30 June 2024 30 June 2023 $ million 30 June 2024 30 June 2023 Non-current assets Non-current liabilities Property, plant and equipment 3,290 4,371 Borrowings 3,142 3,141 Intangible assets 397 326 Provisions 262 786 Other non-cu
Slide 21: Net debt position
Net debt position 30 June 2024 Net debt $ million 30 June 2024 Cash and cash equivalents Cash – excluding Israel 52 Cash – Israel 293 Group cash 345 Borrowings Debt – PLC Senior Secured Notes 445 Debt – PLC Revolving Credit Facility 105 Debt – Greek State-Backed Loan (non-recourse to plc) 105 Debt –
Slide 22: Cash flow statement
Cash flow statement Six months ended 30 June 2024 Statement of Cash Flows Statement of Cash Flows $ million 30 June 2024 30 June 2023 $ million 30 June 2024 30 June 2023 Operating activities Investing activities Profit before tax - continuing operations 162 47 Payment for PPE (262) (198) Profit befo