Capricorn Energy (CNE) H2 2024 earnings summary

Executive summary

• Major transformation over two years focused on operational excellence, capital discipline, and conservative financing, with a focus on building scale and longevity for consistent shareholder returns.

• Achieved right-sizing, exited non-core activities, and returned over $600 million to shareholders, rebuilding corporate culture.

• Unable to confirm a dividend despite a $50 million contingent payment due to unresolved receivables and tax disputes.

• Priorities include diversifying and expanding operations, especially in Egypt and the UK North Sea, and seeking a third material asset.

Financial highlights

• FY 2024 Egypt operations generated $147 million in production revenue and $105 million in gross profit, with opex at $4.8/boe.

• Average working interest production was 23,763 boepd (44% liquids); net entitlement sales: 9,737 boepd.

• Year-end net cash improved to $23 million, mainly from non-recurring discontinued operations.

• EGPC receivables at year-end were $184 million, with $168 million due for payment, up 5% year-over-year.

• Shareholder cash return and share repurchases totaled $57 million in 2024.

Outlook and guidance

• 2025 production guidance is 17,000–21,000 boepd, with a 40% base annual production decline and 39% forecast liquids.

• Operating costs expected at $5–$7/boe; total capex: $85–$95 million, focused on required exploration and accretive development.

• Guidance includes a three-week maintenance shutdown in Q4 2025 affecting 60% of the base and up to six exploration wells.

• New concession agreement expected to be ratified in 2025, providing a runway to arrest decline and recover production.