Energean Plc · LSE:ENOG
Energean — Investor Presentation (June 2022)
35 slides from Energean's investor presentation, June 2022
Slide 1: Energean Corporate Presentation
Energean Corporate Presentation June 2022
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: Contents
Contents • About Us ➢ Investment Case ➢ Where We Operate ➢ Our History ➢ Our Growth Outlook • Operational Overview ➢ Israel – Karish & Tanin, Karish North, Second Oil Train & Gas Riser, Exploration ➢ Egypt – Abu Qir & NEA/NI ➢ Italy – Existing Portfolio & Cassiopea ➢ Greece – Prinos & Epsilon • Capi
Slide 4: About Us
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 5: Energean at a Glance – Our Investment Case
Energean at a Glance – Our Investment Case The Leading Independent, Gas and ESG-Focused E&P in the Mediterranean Strategic Strategic focus on gas and the East Mediterranean Focus Material Resource ~1 billion boe (2P) and 0.2 billion boe (2C), 72% gas (2P + 2C) Base Significant Growth Current drillin
Slide 6: Where We Operate
Where We Operate Energean Has Operations in Eight 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 Montenegro Italy • Prospective exploration • Over 50 production, developme
Slide 7: Our History
Our History Created Through Four Successful Value-Accretive Acquisitions in the Mediterranean FID - Karish & Tanin FID - Karish North & NEA/NI Prinos Acquisition IPO - LSE and TASE 30% Minority Interest in EISL1 Acquisition 2008 2018 2021 2016 2020 Karish and Tanin Edison E&P Acquisition Acquisition
Slide 8: Our Growth Outlook
Our Growth Outlook Transitioning into a 200 Kboed Producer and $1.4 Billion EBITDAX Generator Medium Term Production Our Medium-Term Targets Rest of Group Israel >200 kboed Production 200 Kboed) ~5x increase in production 41.0 Revenues $2,000 kboed Million 2021 Medium-term Medium Term EBITDAX Cost o
Slide 9: Operational Overview – Summary
Operational Overview – Summary
Slide 10: Four Key Development Projects
Four Key Development Projects Delivering Over 820 MMboe Across The East Med, With A Focus On Gas Overview of key development assets Israel: Karish, Karish Egypt: NEA / NI North & Tanin (100%) (100%) • Target start-up date: Q3 • NEA / NI first gas targeted H2 2022 (Karish) 2023 (Karish 2022 North) &
Slide 11: Operational Overview – Israel
Operational Overview – Israel
Slide 12: Karish, Karish North & Tanin – Flagship Assets
Karish, Karish North & Tanin – Flagship Assets Driving Value Through De-Risked Deepwater Greenfield Gas Project Material Reserve EPCIC Contract Base (100 Bcm + 101 Minimises MMbbl = 744 MMboe)1 Development Risk GSPAs Minimise Growing Domestic Commodity Price Market Risk Long Term, Sustainable, Utili
Slide 13: Karish
Karish On Track For First Gas in Q3 2022 Karish Project Update Hook-Up and Commissioning First Gas Reiterated For FPSO Has Arrived in Israel 3 - 4 Months Q3 2022 13
Slide 14: Karish North and 2nd Oil Train & Gas Riser
Karish North and 2nd Oil Train & Gas Riser Both Projects Expected Online In H2 2023 (1) (2) $275 million total 2nd Oil Train & Gas Riser Karish North committed expenditure increases FPSO capacity 33 Bcm + 30 MMbbl across both projects3 to 8 Bcm + 32 kboe/d1 (244 MMboe) 2P2 Growth Projects Timeline H
Slide 15: Israel Drilling Campaign
Israel Drilling Campaign Drilling Commenced In March 2022 – Aiming to Double Energean’s Israel Gas Resources Discovery (3) Karish North-01 Drilling Firm Well Optional Well (2) Karish Main-04 (5) Hercules-01 (4) Hermes-01 Aiming to de-risk c.100 bcm, doubling Energean’s Israel gas resources Athena Ol
Slide 16: Athena Discovery and Olympus Area
Athena Discovery 8 Bcm Discovered And De-Risks Further 50 Bcm Across The Olympus Area EXISTING TANIN RESERVES LICENSE 12 KARISH I/17 HESTIA OLYMPUS AREA TANIN I/16 ATHENA DISCOVERY APOLLO HERA ZEUS DIONYSUS ARES ACHILLEUS TANIN FIELD ARTEMIS CRONUS PERSEUS BELUS 5KM COMMERCIAL DISCOVERY DE-RISKS OLY
Slide 17: Flagship Karish Assets Underpinned by Long-Term Gas Contracts
Flagship Karish Assets Underpinned by Long-Term Gas Contracts Delivering Competition, Security Of Supply & Displacing Coal 7.2 bcm/yr Gas Sales Agreements in Israel1 Commercialisation Update bcm Domestic – Gas Spot agreement enables potential to reach 8 Bcm capacity 8.0 • 18 contracts signed with in
Slide 18: Growing Local and Regional Gas Demand
Growing Local and Regional Gas Demand Facilitates Export Opportunities For Any Future Discoveries East Med Gas Demand Source: IHS Markit, November 2021; EGP = Egypt, ISR = Israel, PSE = Palestine, JOR = Jordan 18
Slide 19: Operational Overview – Egypt, Italy & Greece
Operational Overview – Egypt, Italy & Greece
Slide 20: Egypt – NEA/NI – Organic Growth
Egypt – NEA/NI – Organic Growth First Gas From The First Well Is Expected In H2 2022 Growing Egypt Production1 Abu Qir NEA/NI 45 40 Working Interest (kboed) 35 30 25 20 15 Growing production to c.40 kboed, 10 in line with medium-term targets 5 0 2021 2022 2023 2024 NEA/NI Update FID taken in January
Slide 21: Italy – Cassiopea – Organic Growth
Italy – Cassiopea – Organic Growth On Track For H1 2024 Start-Up Growing Italy Production1 Other Italy Cassiopea 20 18 Working Interest (kboed) 16 14 12 10 8 6 Growing production to c.20 kboed, 4 in line with medium-term targets 2 0 2021 2022 2023 2024 2025 Cassiopea Gas Project Cassiopea Update Ita
Slide 22: Greece – Epsilon – Organic Growth
Greece – Epsilon – Organic Growth Targeting 2023 Start-Up For Epsilon EA-H3 drilled from Growing Greece Production1 Prinos platform, online Prinos + Epsilon Ph.1 + Epsilon Ph.2 (Unsanctioned) 14 12 Working Interest (kboed) 10 8 6 EL wells are the three re-completions, due 4 Growing production to >13
Slide 23: Sustainable Capital Structure
Sustainable Capital Structure
Slide 24: Sustainable Capital Structure Put in Place
Sustainable Capital Structure Put in Place $450 Million Corporate Bond Enhances Liquidity and Extends Maturity Profile New Debt Maturity Structure ✓ Average 6-Year Maturity ✓ Average Interest Rate c.5.5% ✓ Converted Floating Rates to Fixed Optimised Debt Structure with Potential to refinance 2024-26
Slide 25: Low Leverage And Ring-Fenced Project Financings
Low Leverage And Ring-Fenced Project Financings Energean Group Cash: $381 million1 Net Debt: $103 million1 2021 EBITDAX: $200 million Leverage: 0.5x Corporate Bond: $450 million (2027) Credit Rating: B+ Ring-fenced to the Israel Project Ring-fenced to the Greek Project i.e. non-recourse to Energean
Slide 26: Dividend Policy
Dividend Policy ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 27: Dividend Policy
Dividend Policy Energean Is Ready To Return Investment To Shareholders Via Dividends WHEN WILL PAYMENTS BEGIN? • Energean is targeting to launch its inaugural dividend no later than Q4 2022, following first gas from Karish (Q3 2022). WHAT IS THE POLICY AND QUANTUM? • It is the company’s goal that sh
Slide 28: Foundation From Israel Cashflow, Upside From Growth
Foundation From Israel Cashflow, Upside From Growth Providing A Recurring + Reliable Dividend Resilient To Commodity Price Fluctuations Potential New Resources From Ongoing Drilling Campaign + Regional Gas Demand & Export Opportunities = Upside from Growth Medium-Term Target >200 kboed 200 Group Liq
Slide 29: ESG
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 30: Carbon Emissions…
Top-Tier ESG Credentials with a Focus on Reducing Carbon Emissions… Rolling Short-Term Emissions Intensity Target Fully committed to ambitious ESG goals… 80 ✓ 81% gas- weighted portfolio (2P, YE21) 70 66.8 ✓ Stated ambition to reach net zero1 by 2050 60 ✓ Targeting >85% carbon intensity reduction 20
Slide 31: … and Methane Emissions
… and Methane Emissions, Crucial to Meet the Paris Agreement’s Goals & Pledges from COP26 Why Tackle Methane Emissions? Methane Emissions Reduction – Actions Achieved • Although less prevalent than CO2, methane is 84x ✓ Methane detection campaigns (LDAR2) are currently in place at our Vega more powe
Slide 32: Road Map To Net Zero By 2050
Road Map To Net Zero By 2050 Medium & Long-Term Climate Change Plan, As Published In Our 2021 Climate Change Policy Short, Medium & Long-Term Climate Change Plan Short-Term GAS Increased Gas 80 Production Plan: by 2025 70 66.8 Asset Natural-Based Performance Solution 60 Optimization Projects Medium-
Slide 33: Greece – CCS Project
Greece – CCS Project Project Has The Potential To Offset All Of Energean’s Forecasted Emissions Prinos CCS Update “Green Prinos” The East Med’s Only CCS Project Under Evaluation • Prinos subsurface volumes are sufficient to sequester up to 100 Hydrogen million tonnes of CO2 – Greece emitted over 45
Slide 34: Key Milestones For The Remainder Of 2022
Key Milestones For The Remainder Of 2022
Slide 35: Key Milestones For The Remainder Of 2022
Key Milestones For The Remainder Of 2022 1 First Gas From Karish In Q3 2022 2 Decision On Additional Exploration Drilling In Israel 3 First Gas From NEA/NI In H2 2022 Targeting Inaugural Dividend To Be Paid No Later Than During Q4 2022, 4 Following First Gas from Karish (Q3 2022) 5 Further Commercia