Energean (ENOG) Trading Update summary

2024 operational and financial performance

• Achieved record group production of 153,000 boe/d, with continuing operations at 114,000 boe/d, $1.8 billion in revenue, and $1.2 billion EBITDAX; leverage reduced to 2.5x and cumulative dividends of $541 million.

• FPSO uptime reached 99% despite regional geopolitical challenges, and all major projects, including Katlan and the second oil train, remain on track.

• Netback reached $21.3/boe, supported by a 2P reserve base close to 1 billion barrels and a 21-year reserve life for continuing operations.

• Cost of production per barrel reduced to $9.8, with controllable costs as low as $4/boe; cash SG&A remained below $40 million.

• CapEx totaled $730 million, with half spent on continuing operations, and net debt reduced to $2.95 billion.

Strategic transactions and growth initiatives

• Sale of Egypt, Italy, and Croatia assets to Carlyle expected to close in Q1 2025, generating ~$800 million in proceeds to strengthen the balance sheet and support growth.

• Over $4 billion in new Israeli gas contracts signed in 2024, bringing total contracted gas sales for the next 20 years to nearly $20 billion.

• Expansion plans include drilling for Katlan, Athena, and Zeus in 2026, with additional high-probability prospects like Orion, Dionysus, and Ares.

• Organic growth targeted in Israel (Hermes, Hercules, Dragon discoveries) and Greece (Block 2), with a drill-or-drop decision in 2025.

• Geographical focus expanding to EMEA, targeting assets from majors that are non-core to them but valuable for the company.

Israel market and contract developments

• Production in Israel increased to 114,000 boe/d, with expectations to reach 120,000–130,000 boe/d, subject to scheduled shutdowns for project commissioning.

• Annual contracted quantities in Israel exceed 7 BCM/year through 2035, with a diversified, high-credit-quality customer base.

• New long-term gas contract with Dalia signed, valued at ~$2 billion over 18 years for up to 12 BCM, with take-or-pay provisions.

• Domestic gas demand in Israel is expected to exceed 20 BCM by 2030, driven by coal reduction and economic growth.

• Focus remains on maximizing sales to reliable domestic buyers, with export opportunities considered as demand allows.