Energean (ENOG) H2 2023 earnings summary

Executive summary

• Production rose to 123 kboed in FY 2023 from 41 kboed in FY 2022; the major production ramp-up proceeded without impact from ongoing geopolitical developments.

• Results were described as records, with a stable dividend stream and a focus on backfilling the FPSO and meeting regional gas demand.

Financial highlights

• Sales and other revenue reached $1.42bn in FY 2023, up from $737m in FY 2022; long-term contracts and floor pricing accounted for 58% of sales revenue.

• Adjusted EBITDAX was $931m versus $656m; operating cash flow was $422m versus $272m.

• Cash cost of production fell to $11/boe from $19/boe, including royalties of $4/boe and $3/boe, respectively; capital expenditure was $544m versus $870m.

Outlook and guidance

• FY 2024 production guidance was reiterated at 155–175 kboed; production through end-February was in line with guidance and weighted toward H2.

• Summer 2024 start-up of Cassiopea is expected; peak Israeli gas demand is also expected during the summer.

• Medium-term emissions intensity target is 4–6 kgCO2e/boe by 2035, supported by CCS, electrification and carbon credits via nature-based solutions.