Ithaca Energy (ITH) H2 2024 earnings summary

Executive summary

• Achieved record operational and financial performance in 2024, completing a transformational business combination with Eni UK and successful integration, creating a leading UKCS growth platform.

• Proforma production exceeded 105,000 barrels/day in 2024, peaking at 138,000 barrels/day in Q4, and maintaining over 120,000 barrels/day into Q1 2025.

• Strong focus on safety, with zero tier one/two events and declining emissions intensity.

• Strategic capital allocation, disciplined investment, and robust M&A activity, including JAPEX UK acquisition and increased stake in Seagull field.

• Committed to shareholder returns, distributing $500 million in 2024 and targeting the same for 2025.

Financial highlights

• Adjusted EBITDAX reached $1.4 billion for 2024, with Q4 contributing $646 million.

• Net cash flow from operations totaled $900 million in 2024, with available liquidity exceeding $1 billion post-refinancing.

• Capital investment for the year was $650 million, with Rosebank capex slightly above target but on schedule.

• Hedging gains of $135 million in 2024, totaling $400 million over two years.

• Maintained strong liquidity of over $1 billion and low leverage at 0.45x.

Outlook and guidance

• 2025 production guidance set at 105,000–115,000 barrels/day, with a midpoint of 110,000.

• OpEx guidance for 2025 at $20 per barrel, with capital spend of $560–$620 million.

• Rosebank CapEx for 2025 at $210 million midpoint; dividend target remains $500 million.

• Medium-term outlook expects production above 100,000 barrels/day through the decade, supported by organic and inorganic growth.

• Opex per boe expected to reduce to ~$20 in the medium term due to portfolio enhancements.