Energean (ENOG) Investor Update summary

Transaction overview and financial impact

• Announced sale of Egypt, Italy, and Croatia portfolio to Carlyle for up to $945 million, including $504 million upfront, $177 million in adjustments, $139 million vendor loan, and $125 million contingent payment, with completion expected by year-end 2024 pending regulatory approvals.

• The sale represents a return of over 3x the original $284 million acquisition cost, with a sale price of $5.4 per barrel of oil equivalent versus $1.2 at purchase.

• Proceeds will enable full repayment of a $450 million corporate bond and support a special dividend of up to $200 million, with the dividend policy to be reviewed post-transaction.

• The deal is immediately cash flow accretive, reduces G&A by at least $7.5 million annually, and cuts decommissioning liabilities by over 60%.

• Staff in Italy, Croatia, and Egypt will remain employed under Carlyle for at least 18 months post-completion.

Strategic focus and operational guidance

• Post-sale, 2P reserves stand at 965 million barrels of oil equivalent, maintaining a strong gas-focused E&P profile, with Israel as the core asset and Morocco as the next growth area.

• Updated production guidance, excluding Italy and Egypt, is 116,000–133,000 boe/d for 2024; medium-term target is around 150,000 boe/d.

• Israel remains the foundation of the business, with flagship assets Karish, Karish North, Katlan, and Tanin providing long-term, visible cash flows.

• Morocco growth targeted through the Anchois project, with an appraisal well planned for August 2024 and results anticipated in Q3.

• Focus on creating a carbon storage hub in Greece via the EnEarth subsidiary, with the Prinos project expected to reach up to 3 million tons of CO2 injection capacity per year.

Capital allocation and shareholder returns

• Special dividend aligns with prior commitment to return up to $1 billion to shareholders by end of 2025.

• Preference for dividends over buybacks due to certainty and transparency for shareholders; buybacks may be considered in the future.

• G&A expected to be managed within a $30–$35 million range post-transaction, with further reductions targeted.

• Any future acquisitions will prioritize protecting shareholder returns and maintaining dividend per share.

• The board will review and potentially redefine the dividend policy after transaction close.