Energean (ENOG) Trading update summary

Operational and financial performance

• Achieved a 12% year-on-year increase in Q4 production, with full-year output at 154 kboed, at the upper end of guidance, despite temporary suspension in Israel due to geopolitical events.

• Sales revenue reached $1,716 million and adjusted EBITDAX was $1,112 million, both in line with the previous year, supported by long-term gas contracts worth over $20 billion.

• Cost of operations held steady at $6/boe, with cash G&A at $38 million and development and production expenditure slightly below guidance at $575 million.

• Returned $221 million to shareholders and maintained a resilient balance sheet with no short-term maturities after refinancing bonds.

• Net debt increased to $3,255 million, partly due to timing of a final $80 million payment from Egypt.

Strategic initiatives and outlook

• 2026 focus includes optimizing the core asset base, signing new long-term gas contracts in Israel, and advancing export infrastructure, with first gas from Katlan (Israel) and Irena (Croatia) expected in H1 2027.

• Multi-well exploration campaign planned, starting with East Bir El-Nus in Egypt (Q2 2026) and Block 2 in Greece (late 2026/early 2027), with additional high-potential targets in Egypt and Israel.

• Evaluating new M&A opportunities, particularly in West Africa, to support growth.

2026 guidance and risk management

• 2026 production guidance set at 140-150 kboed, with Israel contributing 108-114 kboed and the rest of the portfolio 32-36 kboed.

• Total cash cost of production expected at $510-550 million, with development and production capex at $740-800 million.

• Consolidated net debt projected to remain broadly flat at $3,200-3,300 million, reflecting elevated capital expenditure.

• Non-cash impairment of around EUR 300 million expected for the Cassiopea asset due to lower-than-expected performance; arbitration ongoing with the operator over disputed costs and lost revenues.