Energean achieved a new production record in June, reaching 177 thousand barrels of oil equivalent per day, of which 84% was in natural gas. The development primarily reflects the significant increase in natural gas demand during the summer in Israel, as the company's management disclosed in the context of the announcement of the first half results to the London and Tel Aviv stock exchanges.

It is worth noting here that the 140 thousand barrels of oil equivalent (86% in natural gas) are from assets that will remain in Energean's portfolio after the completion of the recent deal with Carlyle.

Overall in the first half of the year, daily production was 146 thousand barrels of oil equivalent (82% in gas), up 38% year-on-year. In the assets that will remain in Energean's portfolio, production was 106 thousand barrels of oil equivalent (84% in gas), up 47% year-on-year.

DEVELOPMENTS

• The strategic agreement to sell Egypt, Italy, and Croatian assets to Carlyle is anticipated to be finalized by year's end. This will guarantee the company's liquidity to pay back the €450 million Corporate Bond and provide a special dividend to shareholders.
• The start of production from the Karish North offshore gas fields in Israel and Cassiopea in Italy (Operator ENI), while in August, production from the Location B offshore gas field in Egypt started.
• Achieving revenues of $867 million (+47% y-o-y), of which $643 million is from assets to be retained in Energean's portfolio. Also, the achievement of adjusted earnings before interest, tax, depreciation and amortisation (EBITDAX) of $568 million (+65% year-on-year), of which $436 million is from the assets to be retained in the company. In addition, net income was $89 million (+27% year-on-year), and it is noteworthy that net profitability from assets that will remain with Energean amounted to $116 million.
• A dividend of $0.30 per share for the second quarter will be paid on September 30. Including this distribution, a total of $486 million will have been distributed to the company's shareholders, with Energean maintaining its commitment to a total dividend distribution of $1 billion by the end of 2025.
• Further reducing the company's carbon footprint, with emissions (Scope 1 and Scope 2) falling by 20% annually, to 8.5 kg of carbon dioxide per barrel of oil equivalent produced (kgCO2e/boe). In the assets that will remain with the company, the emissions reduction is even greater, at 6.2 kgCO2e/boe.
• The receipt of the Final Investment Decision for the development of the Katlan offshore field in Israel, the start of production from which is set for the first half of 2027 and is also potentially usable for export.
• The filing of an application for a storage permit for the carbon dioxide (CO2) storage project in Prinos, which is expected to be received within the next few months. Engineering design procedures and the required geological and technical studies are also progressing, which aim to increase the storage capacity of Prinos from 1 million tonnes of CO2 in the first phase to 3 million tonnes of CO2 in the second phase of the project.
• The commencement and continuation of the Anchois-3 appraisal well in Morocco in the Atlantic Ocean, with early indications pointing to gas volumes below initial estimates.
  
  

CEO STATEMENT

Commenting on the first half results, Mathios Rigas, Group CEO of Energean plc, said:

"We are delighted to announce the best results in Energean's history, with double-digit percentage growth in production, revenue and profitability. Due to summer demand and the "Energean Power" FPSO's excellent performance, Israel achieved record production. Our operation remained resilient to the ongoing geopolitical developments and our production was not affected.

Our strong operational and financial performance supports our dividend distribution for the second quarter, consistent with our overall dividend policy. As we have previously communicated, the dividend policy will be reset following the completion of the Carlyle deal.

We also made significant progress across our strategic priorities: we advanced our gas-focused projects with the receipt of the Final Investment Decision for the Katlan field and the start of production at the Cassiopea and Location B fields, while our carbonation activities are underway with a focus on CO2 storage at Prinos, Kavala, for which we expect to receive a storage license for 1 million tonnes per year in the coming months.

All of this is just the beginning of a new chapter in Energean's story. The combination of operational excellence and the achievement of important agreements is the foundation for Energean to continue to deliver on its commitments to its shareholders. We continue to be committed to returning value to them, to capital discipline and to responsible energy production with the impressive ratings we achieve against our Environmental, Social and Corporate Governance criteria."

ESTIMATES

For the full year 2024, Energean estimates that the group's production will be between 155 and 165 thousand barrels of oil equivalent per day, of which 115-125 thousand will come from the assets retained in the portfolio. Capital expenditure on development and production is estimated at $600-700 million, increased mainly due to the Katlan field development project in Israel.