Energean (ENOG) H2 2025 earnings summary

Executive summary

• 2025 production averaged 154,000 barrels per day (85% gas), at the upper end of guidance, with strong safety and emissions performance (11% reduction), despite regional conflict and temporary suspension in Israel.

• Operations in Israel were suspended due to conflict, but the company is prepared to restart quickly once permitted, drawing on prior experience managing similar shutdowns.

• The business remains financially resilient, with over $300 million in liquidity, no near-term debt maturities, and $221 million in dividends paid.

• Growth initiatives include strategic entry into Angola, ongoing projects in Egypt and Greece, and a robust exploration pipeline.

• Total revenue and other income reached $1.77 billion, supported by over $4 billion in new long-term gas contracts in Israel and disciplined cost control.

Financial highlights

• Total revenue for 2025 was just below $1.8 billion, flat year-over-year, with higher gas production and insurance proceeds offsetting lower oil production and prices.

• Adjusted EBITDAX was $1.117 billion, slightly below 2024, and operating cash flow was $1.144 billion.

• Net loss of $258 million, primarily due to a $550 million impairment on the Cassiopea gas field; excluding this, profitability would have nearly doubled year-over-year.

• Development CapEx was $587 million, down 20% year-over-year, reflecting project timing.

• Net debt ended at $3.25 billion, $50 million above guidance due to slower receivables recovery.

Outlook and guidance

• Guidance for Israeli-linked figures will be updated pending restart; other portfolio production is guided at 32,000–36,000 barrels per day.

• OpEx expected at $190–200 million, G&A around $35 million, CapEx under $100 million, and decommissioning at $60 million.

• Each month of Israeli production shutdown reduces annual guidance by 9,000–10,000 barrels per day.

• Katlan project remains on track for first half 2027 start, barring prolonged conflict.

• Egypt merger concession terms expected mid-2026, with parliament ratification to follow.