Energean Plc · LSE:ENOG
Energean — FY2023 Earnings Presentation
24 slides from Energean's earnings presentation, Mar 21, 2024
Slide 1: Full Year 2023 Results
Energean Full Year 2023 Results 21 March 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
Highlights First major step-up in production complete – no impact from ongoing geopolitical developments Record financial results Stable and reliable dividend Focused on backfilling the FPSO and meeting growing regional gas demand Short-term emissions reduction target achieved ahead of schedule 3
Slide 4: 2023 Review and 2024 Guidance: Operations
2023 Review and 2024 Guidance: Operations
Slide 5: W.I. production: 200% year-on-year growth; 2024 guidance maintained
200% year-on-year growth; 2024 guidance maintained 2024 production guidance a material step towards near-term targets Historical Historical production growthproduction and outlook and outlook 2024 production guidance 200 Full Year 2024 guidance reiterated at 155-175 kboed 150 End-Feb 2024 production
Slide 6: Reserves life of around 19 years
Reserves life of around 19 years1 2P reserves stable year on year and increase in 2P + 2C before 2023 production YE 2022-2023 2P reserves change YE 2022-2023 2P+2C change 1600 2P 2C 2023 production 1378 1384 1400 47 217 1200 222 1000 mmboe Group reserves life of around 19 years1 800 No revision to I
Slide 7: Focused on Net Zero commitment
Focused on Net Zero commitment Supplying energy for a just transition alongside a defined emissions reduction plan Emissions intensity reduction since original baseline year (2019) Emissions intensity reduced 80 ➢ 42% year-on-year reduction to 9.3 kgCO2e/boe ➢ Driven by contribution of Karish (4.7 k
Slide 8: 2023 Review and 2024 Guidance: Financials
2023 Review and 2024 Guidance: Financials
Slide 9: FY 2023 results – key figures
FY 2023 results – key figures Production Figures FY 2023 FY 2022 % Change W.I. Production (kboed) 123 41 200% Financial Figures FY 2023 FY 2022 % Change Sales & Other Revenue ($ million) 1,420 737 93% Cash Cost of Production cost ($/boe) 11 (of which 4 is royalties) 19 (of which 3 is royalties) (44%
Slide 10: Material revenue growth…
Material revenue growth… …underpinned by long-term gas contracts with floor pricing Sales & other revenues 1600 Proportion of sales revenue containing floor pricing and long-term contracts grew to 58% in 2023 1420 1400 232 In line with strategy to generate long-term revenue 1200 resilient to commodi
Slide 11: Material deleveraging ongoing
Material deleveraging ongoing No immediate debt maturities following Energean Israel's bond refinancing in July 2023 Deleveraging profile Debt maturity profile Net Debt / Adjusted EBITDAX 6-year average 6.13% average Majority interest 7 4000 maturity interest rate rates fixed 800 Potential to refina
Slide 12: Energean's dividend policy
Providing a stable and reliable dividend stream, in line with Energean’s dividend policy Dividends paid and declared YTD Paid Declared 250 Inaugural dividend paid in Q3 2022 214 200 210 US$cents/share (~$370 million) returned to shareholders1 150 $ million 107 100 Quarterly dividends to be paid in l
Slide 13: 2024 guidance unchanged
2024 guidance unchanged Production Guidance – unchanged FY 2024 Israel 115-130 Egypt 29-31 Rest of Portfolio 11-14 Total Production (kboed) 155-175 Financial Guidance – unchanged FY 2024 Net Debt – Consolidated ($ million) 2,800-2,900 Israel 350-380 Egypt 30-40 Rest of Portfolio 190-210 Total Cash C
Slide 14: Outlook
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 15: Israel
Israel Ramped-up to stabilised production; Karish North and second gas export riser complete 2021-2023 Israel production growth performance and outlook production 150 125 100 W.I. production (kboed) Ramped-up to stabilised production post- 75 commissioning 115- 130 • Karish ramped up to its initial
Slide 16: Focused on backfilling the Energean Power FPSO…
Focused on backfilling the Energean Power FPSO… Katlan and Tanin developments (existing 2P reserves) extend the life of the FPSO to 2040+ Israel production outlook 180 Source: D&M YE23 CPR 160 Focused on extending production plateau W.I. production (kboe/d) 140 120 100 80 60 40 20 0 2024 2025 2026 2
Slide 17: …And meeting growing gas demand
…And meeting growing gas demand Israel gas demand trajectory maintained – forecasted to double over the next two decades Israel Israel gas demand gas demand outlook (bcm) outlook (bcm) Israel electricity Israel electricity generation generation outlook (TWh/year) outlook (TWh/year) Electricity Trans
Slide 18: Egypt
Egypt NEA/NI complete; focused on optimising Abu Qir production and merging production concessions 2021-2023Egypt production growth performance and outlook production 40 30 W.I. production (kboed) Growth projects complete 20 • NEA/NI completed in Dec ‘23 • Three wells producing in line with expectat
Slide 19: New areas of development underway for future growth
New areas of development underway for future growth Rest of portfolio production Growth from existing portfolio performance and outlook 16 14 Croatia Italy Investment decision expected on the Irena 12 Gas Release and annulment of PITESAI development in the near-term law unlocks previously restricted
Slide 20: Morocco
Morocco Country entry aligned with Energean’s strategy; farm-in completion expected imminently Farm-in to Chariot’s Lixus Favourable (45% W.I.) and Rissana fiscal terms (37.5% W.I.) licences Security Route to of supply existing Lixus licences contains the markets 18 bcm (gross)1 Anchois gas developm
Slide 21: Key business drivers
Key business drivers Energean will continue to deliver and consider all opportunities to achieve the following: Paying a reliable dividend in line with stated policy Deleveraging to ~1.5x and sustained at or around these levels Growing the business to our near-term targets and beyond Focus on gas, d
Slide 22: Closing remarks and outlook summary
Closing remarks and outlook summary 1 2024 production is expected to be a material step towards near-term targets 2 Focused on backfilling the FPSO and meeting growing gas demand 3 New areas of development on the horizon 4 Quarterly dividends intended to be declared in line with policy Evaluating al
Slide 23: Appendix
Appendix ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 24: Sales volumes and realised pricing
Sales volumes and realised pricing Sales volumes kboe FY22 FY23 Israel – gas 2 28 Egypt – gas 8 8 Other – gas 2 1 Israel – liquids - 4 Other – liquids 3 4 Total 15 45 Realised pricing FY22 FY23 Gas ($/mcf) – 11 5 pre hedging % gas under long-term contracts 38% 88% Liquids ($/boe) 81 72 1. Egypt volu