Energean Plc · LSE:ENOG
Energean — Investor Presentation (March 2022)
27 slides from Energean's investor presentation, March 2022
Slide 1: Energean Corporate Presentation
Energean Corporate Presentation March 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: About Us
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 4: 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; Concentrated geography in the Mediterranean Focus Material Resource Approximately 1 billion boe of 2P reserves Base Significant Growth 2022 / 2023 drilli
Slide 5: 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 6: Top-Tier ESG Credentials with a Focus on Reducing 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… 25 ✓ +79% gas- weighted portfolio (2P) 22.2 Stated ambition to reach net zero1 by 2050 with intention to ✓ accelerate 20 17.9 2 Current industry a
Slide 7: Methane Emissions, Crucial to Meet the Paris Agreement's Goals
… 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 8: Created Through Four Successful Value-Accretive Acquisitions in the Mediterranean
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 405 2021 18
Slide 9: Over a Decade of Continuous Growth
Over a Decade of Continuous Growth Transitioning into the Leading Independent Gas Producer in the Mediterranean > 1 Billion MMboe 2P Reserves + 2C Resources Our Medium-Term Targets 1200 2016-20E CAGR 48% Production 200 Kboed) 1000 Revenues $2,000 800 Million MMboe 600 Cost of Production $9 – 11 / bo
Slide 10: Four Key Development Projects
Four Key Development Projects Delivering Over 850 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: 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 12: 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 Credit Rating: B+ Ring-fenced to the Israel Project Ring-fenced to the Greek Project i.e. non-recourse to Energean PLC i.e. non-recourse to Energean PL
Slide 13: Framework for Predictable Cashflow, Strong Balance Sheet and Sustainable Dividend
The Framework is in Place for Predictable Cashflow, a Strong Balance Sheet and a Sustainable and Reliable Dividend Diversified, energy transition aligned portfolio, with strong operational track Sustainable record Reinvestment distributions to • Organic growth - gas- focused near-term shareholders •
Slide 14: Israel
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 15: Flagship Assets – Karish, Karish North & Tanin
Flagship Assets – Karish, Karish North & Tanin Driving Value through De-risked Deepwater Greenfield Gas Project EPCIC Contract Material Reserve Minimises Base Development Risk GSPAs Minimise Growing Domestic Commodity Price Market Risk Long Term, Sustainable, Utility- Fully Funded Type Cash Flows Ma
Slide 16: Flagship Project Karish – First Gas by Q3 2022
Flagship Project Karish – First Gas by Q3 2022 Substantial Cash Flows Upcoming This Year Ready for Sail-Away First Gas Contracted Production End Of This Quarter By Q3 2022 Q3 2022+ Oil Refineries Ltd (ORL) Others 15% Ramat IPM Hovav (IEC) 5% 15% Alon Tavor (IEC) 7% Israel Chemicals OPC Rotem Ltd (IC
Slide 17: Flagship Karish and Tanin Assets Underpinned by Long-Term Gas Contracts
Flagship Karish and Tanin Assets Underpinned by Long-Term Gas Contracts Delivering Competition, Security of Supply & Driving Coal Phase Out Protection Against Take-or-Pay / High Quality Floor Pricing Downside Commodity Exclusivity Counterparties Price Risk 7.2 bcm/yr Gas Sales Agreements in Israel C
Slide 18: Key Growth Projects - Project Update
Key Growth Projects - Project Update Material Progress on Committed Investment Programme • 2021 – FID taken in January for $150 million • 2021 – EPCIC awarded to TechnipFMC Karish North • 2022 – Development well to be drilled following Athena + KM-04 • 2023 – First gas: 2H 2023 • 2021 – FID taken in
Slide 19: High-Impact Israel Drilling Programme – Starting in March 22
High-Impact Israel Drilling Programme – Starting in March 2022 Targeting Up To 110 Bcm Of Gas1 Liquids sales to Energean Power international markets Establishing a gas production hub Gas FPSO in the East Med Gas FPU Liquids FPSO $80 million committed investment (excludes the Karish North Karish Main
Slide 20: Egypt & Italy
Egypt & Italy ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 21: Egypt – Production & High-Return Development Projects
Egypt – Production & High-Return Development Projects NEA/NI On Track For First Gas in 2H 2022 Portfolio Overview NEA / NI Project Update +40 kboed Four subsea Target production Maturing Discovered (Inc. NEA/NI 15 – 16 Kboed) wells tied back Lump sum several other NI-B field to Abu Qir 114 MMboe EPC
Slide 22: Italy – Stable Production & Material Near-Term Growth Potential
Italy – Stable Production & Material Near-Term Growth Potential Cassiopea On Track For First Gas in 1H 2024 Portfolio Overview Cassiopea Project Update +19 kboed Target production (Inc. Cassiopea 10 Kboed) Installation of Onshore plant On track for solar panels Currently 79 MMboe began 2P Reserves1
Slide 23: Greece & Croatia
Greece & Croatia i Hi ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 24: Greece – Epsilon Funding Package Secured
Greece – Epsilon Funding Package Secured Epsilon On Track For First Gas in 1H 2023 Portfolio Overview – Prinos and Epsilon Epsilon / Prinos CCS Projects Update Target production +13 kboed Prinos Area EUR 100 Work has CCS Project Epsilon on million recommenced 53 mmboe2 (2% Gas) Pre-FEED 2P Reserves1
Slide 25: 'Green Prinos' – Core to Our Net Zero Goal
‘Green Prinos’ – Core to Our Net Zero Goal Shaping the Region’s Energy Transition Through Carbon Capture & Storage “Green Prinos” Qualified for funding from the European Commission’s Recovery and Resilience Fund Methane Hydrogen Bio-gas / Biomass / Waste Grant requested under IPCEI Fertilizer H22 Pr
Slide 26: Outlook
ENERGEAN\ ETHOS Our World, Our Responsibility
Slide 27: Key Milestones for 2022
Key Milestones for 2022 1 FPSO sail-away 2 First Gas from Karish 3 Up to 5 wells in Israel targeting 1 billion boe prospective resources 4 First Gas from NEA/NI 5 Dividend Policy 6 Mature Carbon Capture and Storage and Eco-Hydrogen Projects 27