Ithaca Energy (ITH) investor relations material

Deal rationale and strategic fit

• Entry into Offshore East Canada adds a second operating hub, geographic diversification and exposure to premium Northern OECD barrels; the shallow-water, long-life assets have operating similarities to the UKCS.

• Acquisition covers a 48% operated interest in Terra Nova, 40% in White Rose Existing Lands and 38.6% in White Rose Growth Lands, including West White Rose.

• The assets provide an estimated ~17-year 2P reserve life and a platform for further North American growth in established basins.

Financial terms and conditions

• US$860m upfront consideration, effective 1 July 2026, subject to customary adjustments; completion is targeted for H1 2027.

• Contingent consideration runs for 27 months, with 50% sharing and a US$250m cap; thresholds are $80/bbl for 2026, $74/bbl for 2027 and $73/bbl for 2028. A separate after-tax and royalty cap was cited at $50m.

• Financing expected through cash, borrowing-base and secured in-country facilities; $1.9bn of June-end liquidity could fund completion without equity dilution, with deal-contingent hedging to protect value and cash flows.

• Base-case returns include 20–25% IRR, DPI above 1.3 and 1–4 year payback; clean post-ramp-up OpEx targeted at $20/boe and NPV10 breakeven marginally above $50/bbl.

• Adds 103 mmboe of 2P reserves, ~22% of the existing reserve base, and ~200 mmboe of additional resource potential.

Synergies and expected cost savings

• Synergies are not a core deal thesis; potential includes sharing supply-chain relationships and vessels, while primary value drivers are scale, production and resource optionality.