Energean (ENOG) H2 2024 earnings summary

Executive summary

• 2024 saw record group production of 153,000 BOE/day and revenue of $1.78 billion, driven by strong operations in Israel, Greece, and the UK, with adjusted EBITDAX at $1.16 billion.

• Over $4 billion in new gas contracts were signed in Israel, bringing total contracted revenue to nearly $20 billion over 20 years.

• Cumulative dividends paid reached $600 million, with a $1 billion target under the current program.

• The Carlyle transaction and the sale of Egypt, Italy, and Croatia assets remain pending regulatory approvals, impacting future guidance and dividend policy.

• Key projects such as Karish North, Location B, and Cassiopea started production in 2024.

Financial highlights

• Revenue increased by over 25% year-on-year to $1.78 billion, with continuing operations revenue up 34% to $1.315 billion.

• Adjusted EBITDAX reached $1.16 billion group-wide and $885 million for continuing operations.

• Net debt at year-end was $2.95 billion, with a leverage ratio of 2.5x, down from 6x two years ago.

• CapEx rose 25% year-on-year to $615 million, with $336 million for continuing operations.

• Cash cost per barrel remained below $10/BOE; G&A costs were under $40 million.

Outlook and guidance

• Indicative 2025 group production guidance is 160,000–170,000 BOE/day, with 120,000–130,000 BOE/day for continuing operations, pending transaction outcomes.

• Net debt guidance for 2025 is $2.7–$2.9 billion, with leverage targeted below 2x in the medium term.

• CapEx for 2025 is guided at $410–440 million for development and production; exploration expenditure $20–30 million.

• Dividend policy will be updated after clarity on the Carlyle deal, but the $1 billion target remains.

• Focus on signing additional gas contracts, export options, and advancing Katlan and Prinos CO2 projects.