Energean Plc · LSE:ENOG
Energean — Investor Presentation (May 2024)
24 slides from Energean's investor presentation, May 2024
Slide 1: Energean Corporate Presentation May 2024
Energean Corporate Presentation May 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: Energean at a Glance
Energean at a Glance Premium listing with >$2.0 bn market cap1; the leading independent gas-focused E&P in the Mediterranean Top tier London FTSE 250 (LSE:ENOG) $2.0 bn and Tel Aviv 35 (TASE:( אנאגlisted by End-April 2024 Production YE 2023 Reserves market cap market capitalisation 143 kboed (81%
Slide 4: Our history
Our history Created through five 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 5: Energean today
Energean today Focused on revenue predictability with upside to global commodity pricing Full year 2023 sales revenue Total 1420 1400 Other liquids 232 1200 Liquids 42% Israel liquids Access to market pricing 265 (Brent, Italian PSV gas price etc) 1000 Other gas 110 $ million 800 Egypt gas 138 600 5
Slide 6: Our targets
Our targets Growing into a 200 kboed and $1.75 billion EBITDAX business Group production forecast Our near-term targets 200 200 Production 200 155 – 175 Kboed) 150 143 Revenues $2,500 W.I. production (kboed) 123 Million 100 Cost of Production $9 – 11 / boe 50 41 41 EBITDAX $1,750 Million 0 FY 2021 F
Slide 7: Disciplined approach to capital allocation
Disciplined approach to capital allocation Focused on stable predictable cash flows and maximising total shareholder return Net operating cash flow Maintenance capex Interest costs Free cash flow Dividend Organic growth • Q1 2024 dividend of 30 US$ cents/share declared • Karish + key growth projects
Slide 8: 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 3500 maturity interest rate rates fixed 800 Potential to refina
Slide 9: 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) 80 Emissions intensity reduced ➢ 19% year-on-year reduction in Q1 2024 to 9.0 kgCO2e/boe 70 ➢ Achieved our short-term e
Slide 10: Operational overview – Israel
Operational overview – Israel
Slide 11: Karish, Karish North & Tanin – flagship assets
Karish, Karish North & Tanin – flagship assets Karish and Karish North brought onstream in October 2022 and February 2024 respectively Material reserve Long-term gas contracts Fully owned Growing production capacity base with floor prices infrastructure (100% W.I.) Reduces commodity price risk; 926
Slide 12: Karish and Karish North are strategically important assets for Israel
Karish and Karish North are strategically important assets for Israel Energean currently supplies around 50% of the country’s gas demand Israel demand outlook1 Source: BDO February 2024 60% 30 Energean is supplying ~50% of the Israeli market 50% 25 40% 20 BCM 30% 15 20% 10 10% 5 0% 0 Energean share
Slide 13: 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 20
Slide 14: Surplus Katlan volumes targeting exports
Surplus Katlan volumes targeting exports Development concept chosen; FID expected upon EPC finalisation Development concept • Backfill 8 bcm/yr FPSO with Katlan, which is Energean licences prioritised over Tanin Vassilikos • Production sold into the Israeli domestic market under the existing GSPAs 5
Slide 15: East Mediterranean gas demand outweighs current supply
East Mediterranean gas demand outweighs current supply, which has led to rolling blackouts in Egypt East Med demand (2021 – 2040)1,2 East Med supply (2021 – 2040)3,4 150 150 125 118 ~110 17 ~100 92 17 100 100 89 22 27 Bcm 17 Bcm 22 41 12 33 50 50 79 81 63 67 57 42 0 0 2020 2030 2040 2022 2030 2040 E
Slide 16: Operational overview – Rest of the Portfolio
Operational overview – Rest of the Portfolio
Slide 17: 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 • NEA/NI completed in Dec ‘23 20 • Three wells producing in line with expectat
Slide 18: 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 Italy Croatia Cassiopea first gas expected summer ’24 Investment decision expected on the Irena 12 development in the near-term Gas Release and annulment of P
Slide 19: Morocco
Morocco Country entry aligned with Energean’s strategy; farm-in completed in April 2024 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 development Far
Slide 20: 2023 Review and 2024 Guidance: Financials
2023 Review and 2024 Guidance: Financials
Slide 21: Q1 2024 results – key figures
Q1 2024 results – key figures Production Figures Three-months to Three-months to % Change 31 March 2024 31 March 2023 W.I. Production (kboed) 142 95 49% Financial Figures Three-months to Three-months to % Change 31 March 2024 31 March 2023 Sales & Other Revenue ($ million) 413 289 43% Cash Cost of P
Slide 22: 2024 guidance
2024 guidance Production Guidance FY 2024 Israel 115-130 Egypt 29-31 Rest of Portfolio 11-14 Total Production (kboed) 155-175 Financial Guidance FY 2024 Net Debt – Consolidated ($ million) 2,800-2,900 Israel 350-380 Egypt 30-40 Rest of Portfolio 190-210 Total Cash Cost of Production (includes royalt
Slide 23: Outlook
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 24: Outlook summary
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 all opportunities, wit