Energean " commenced drilling of the Orion-x1 in Egypt"
Today we have announced a positive Trading Update. As CEO Mathios Rigas comments: “The ongoing security situation has not impacted our production. The successful ramp-up of production from our flagship #Karish gas field in Israel has increased Group production to above 150 kboed in recent days. We have delivered revenues of over $1 billion and adjusted EBITDAX of $623 million in the nine months to 30 September 2023, reflecting our low-cost, high-margin business model. We have also reduced our Group leverage ratio to 3.5x and continued our dividend payments, demonstrating our commitment to delivering shareholder value. We have commenced drilling of the Orion 1x well in Egypt, where we have signed a farm-out agreement that will reduce our net exposure and enhance our returns. This is in addition to an attractive portfolio of exploration assets that have the potential to add significant value. Finally, we have made a major step forward at our #Prinos carbon storage project in Greece. It has been adopted by the European Commission as a Project of Common Interest, and we have been committed EUR 150 million of grants from the Greek Government to support its development. These actions set the foundation for a transition of our mature Prinos oil field to an exciting growth investment opportunity and demonstrates our commitment to our broader energy transition strategy and being the best version of Energean we can be.”
Operational Highlights
• Production during the nine months to 30 September 2023 was 118.5 kboed (nine months 2022:
35.2 kboed); Q3 2023 production was 143 kboed
o On track to deliver full year production in line with latest guidance of 120 – 130 kboed
o No production impact from the ongoing security situation in Israel
• Strong progress on our growth projects
o Karish North and second gas export riser on track for completion by end-2023
o Second oil train to be installed as soon as the security situation in Israel allows
o Katlan FID on track for around year-end 2023
o NEA/NI completion on track for year-end 2023; Cassiopea first gas on track for 2024
o Good progress towards the delivery of near-term targets of 200 kboed, $2.5 billion
revenues, $1.75 billion adjusted EBITDAX and leverage c.1.5x
• Attractive portfolio of exploration wells targeting additional upside, including the Orion 1x
exploration well in Egypt (Energean 19%, previously 30%), which commenced drilling in October
2023; farm-out agreement signed and expected to complete within the coming weeks, subject to
government approvals
Financial Highlights
• Strong financial performance for the nine months to 30 September 2023, underpinned by a quarter
of steady production from Karish
o Revenues of $1,016 million, a 85% increase (nine months 2022: $550.2 million)
o Adjusted EBITDAX of $623 million, a 79% increase (nine months 2022: $348.5 million)
• Strong balance sheet maintained; ongoing deleveraging
o Group leverage2
continued reduction to 3.5x (H1 2023: 3.9x; FY 2022: 6.0x)
o Group cash as of 30 September 2023 was $329.0 million, including restricted amounts of
$27.5 million, and total liquidity was $578.6 million
• Energean Israel’s $750 million 2033 bond was released from escrow in September and was used
to repay Energean Israel's $625 million 2024 bond (redemption date on 30 September 2023).
