Genel Energy (GENL) H2 2024 earnings summary

Executive summary

• Entered Oman with Block 54, marking a strategic new country entry and partnership with state-owned OQ, as part of a geographic diversification strategy and ongoing projects in Somaliland.

• Maintains a strong and resilient platform with net cash of $131 million and disciplined capital allocation, focusing on maximizing cash generation and adding new production assets.

• Ongoing efforts to diversify production both organically (Somaliland, Block 54) and inorganically (M&A), with a disciplined approach to asset selection and capital allocation.

Financial highlights

• Cash position at $196 million as of December 31, 2024; net cash of $131 million after $66 million bond debt maturing October 2025.

• Net receivables from KRG reported at ~$57 million, with a separate $36 million legal cost claim pending tribunal decision.

• Production YTD 2025 at ~80,000 bopd from Tawke PSC, with operating costs below $4/bbl and cash flow generation in line with expectations.

• Announced intention to issue a new five-year bond, targeting about $100 million, to fund capital allocation priorities and new asset purchases.

Outlook and guidance

• Anticipates resumption of Kurdistan exports, which would double Tawke's free cash flow generation at current production levels and support drilling resumption.

• Ongoing negotiations with Iraqi and Kurdistan authorities to secure proper payment mechanisms for production.

• Initial work on Block 54 in Oman expected to begin around May 2025, with a three-year work program planned; Somaliland drilling (Toosan-1) not expected before the second half of 2026.