Energean (ENOG) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 production of 146,000 barrels/day (82% gas), up 38% year-over-year, with a monthly peak at 177,000 barrels/day, driven by Israel's Karish North and second gas export riser start-up.

• Operations in Israel maintained over 99% FPSO uptime and strong demand, remaining unaffected by regional conflict.

• Strategic sale of Egypt, Italy, and Croatia assets to Carlyle for up to $945 million targeted for completion by year-end 2024, with regulatory approvals progressing.

• Final Investment Decision on Katlan (Israel) taken in July 2024; first gas expected H1 2027.

• Group emissions intensity reduced 20% year-over-year to 8.5 kgCO2e/boe; Prinos carbon storage project advancing.

Financial highlights

• Group revenues reached $867 million, up 47% year-over-year; continuing operations contributed $643 million (up 71%).

• Adjusted EBITDAX rose to $568 million, a 65% increase year-over-year; operating cash flow increased 126% to $527 million.

• Profit after tax grew 27% to $89 million; continuing operations at $116 million, up 330%.

• Group liquidity at $511 million as of 30 June 2024; cash and cash equivalents $345 million.

• Declared $0.30 per share quarterly dividend, with $486 million cumulative dividends paid to date.

Outlook and guidance

• 2024 group production guidance narrowed to 155,000–165,000 barrels/day; 115,000–125,000 barrels/day for continuing operations.

• Net debt guidance increased to $2.9–3.0 billion due to higher capex and accelerated project milestones.

• Development and production capex for 2024 raised to $600–700 million, reflecting Katlan acceleration.

• Cash cost of production reduced to $10/boe (down 17% year-over-year); expected to remain lower due to cost controls.

• Dividend policy targets $1 billion returned to shareholders by end-2025; policy to be redefined post-transaction.