REG - Energean PLC - Trading Statement & Operational Update

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RNS Number : 9936I  Energean PLC  26 November 2025

 

Energean plc

("Energean" or the "Company")

 

Trading Statement & Operational Update

London, 26 November 2025 - Energean plc (LSE: ENOG, TASE: אנאג) is pleased
to provide the following update on recent operations and the Group's trading
performance in the nine-months ("9M") to 30 September 2025. The numbers
contained herein are unaudited and may be subject to further review and
amendment.

Mathios Rigas, Chief Executive Officer of Energean,
commented:

"Production increased in the third quarter, rising 35% quarter-on-quarter to
average 176 kboed, reflecting operational excellence and robust summer gas
demand in Israel following the temporary suspension in June. Despite the
challenging geopolitical and macro environment, our business remained
resilient, generating $828 million in adjusted EBITDAX for the 9M period and
maintaining year-on-year Cost of Production (excluding royalties) at $6/boe.
We expect full year production to be within our previously announced guidance,
and we continue to maintain strict capital discipline and cost control to
optimise cash flow, reflected in the reduction to our full year Cost of
Production guidance.

"A key highlight of the period was welcoming ExxonMobil into our deepwater
Block 2 exploration concession in Greece, a partnership that significantly
strengthens our position in the region and unlocks a major new opportunity for
Energean. This collaboration underscores the strategic potential of the Greek
portfolio and reflects the growing confidence in our ability to deliver value
in this emerging energy basin. Energean will be the Operator for the
exploration phase.

"Elsewhere in the portfolio, our Katlan and Irena projects are progressing on
time and on budget. In Egypt, we are in advanced negotiations with the
government on the merger of concessions, while preparing for the drilling of
the first wells on the onshore EBEN concession. We also report solid progress
on our Carbon Storage project in Greece, with the environmental permit issued
for the first phase and the first tranche of the Recovery and Resilience
Facility funding successfully received-an important milestone in establishing
Greece's first full-scale CCS solution.

"Our key priorities are to enhance cash flow through increased sales in
Israel-both in the spot market and via new export pathways (Egypt and
Cyprus)-drive further cost efficiencies, and focus on balance sheet strength.
Energean continues to enjoy strong support from the capital markets,
underscored by the successful refinancing of our corporate bond with a EUR 400
million bond at attractive rates, extending the average maturity of our debt.
At the same time, we remain committed to growing organically within our
high-quality portfolio while actively evaluating new opportunities,
particularly in West Africa, where we see significant potential for
value-accretive expansion.

"Energean is focused, disciplined, and positioned for sustainable growth,
including a key investment year in 2026, with multiple near-term catalysts and
a clear pathway to long-term value creation."

Operational Highlights

·      Continued focus on safe and reliable operations, recording a Lost
Time Injury Frequency 1  (#_ftn1) of 0.47 (9M 2024: 0.35) and Total Recordable
Injury Rate(1) of 0.93 (9M 2024: 1.06), both bettering the Group's full year
targets. Additionally, we delivered a notable reduction in scope 1 and 2
emissions intensity to 7.7 kgCO2e/boe (9M 2024: 9.0 kgCO2e/boe).

·      Average production for the nine months ended 30 September 2025
was 151 kboed (85% gas), in line with full year guidance of 145-155 kboed.
This compares to 156 kboed (83% gas) for the nine months ended 30 September
2024, down year-on-year due primarily, as previously communicated, to the
temporary suspension of production in Israel in June 2025.

o  Rest of Portfolio production of 42 kboed reflects excellent performance in
Egypt of 29 kboed, following rigless activities. This offsets performance at
Cassiopea (Italy), which has been lower than the Operator's initial
expectations; the Operator is working to maximise recovery across the wider
Ibleo Area. Cassiopea performance has no impact on full year guidance for 2025
thanks to the outperformance of the Egyptian assets.

o  Post-period end in October, production at Rospo Mare (Italy) was safely
and successfully restarted to pre-shutdown levels.

·      Multiple projects underway to grow production and enhance free
cash flow.

o  Katlan (Israel) and Irena (Croatia) first gas both expected in H1 2027,
with Katlan expenditure milestones being achieved earlier-than-anticipated.

o  In Egypt, concession merger discussions with EGPC are progressing well,
with agreed terms targeted for around year-end. The objective is to extend the
economic life of the concessions, and secure new developments through improved
fiscal and price terms.

·      Growing momentum on the Prinos CO2 project, with the
environmental permit awarded from the Ministry of Environment and Energy of
Greece for the first phase of the project (up to 1 MTPA storage capacity).

·      Kilmar (UK) well plugging and abandonment ("P&A") activities
were completed in September, marking the end of the UK well P&A campaign,
which was completed below budget, ahead of schedule and with zero LTIs,
showcasing our focus on a strong safety culture and dedication to
decommissioning excellence. The Tors and Wenlock platforms are now hydrocarbon
safe and will remain in lighthouse mode until the 2026 removal campaign.

Commercial Highlights

·      As announced on 24 October 2025, the Nitzana transmission
agreement was signed with Israel Natural Gas Lines Ltd. for the supply of up
to 1 bcm/yr for a 15-year period. Energean has also signed a non-binding term
sheet with an East Mediterranean client for the offtake of its gas.

·      LOI signed by Energean Israel with Cyfield, a leading Cypriot
industrial and energy group, for the potential supply of natural gas to its
planned power generation facility in the Mari area of Larnaca, Cyprus 2 
(#_ftn2) . Energean has proposed to design, construct, own and operate a new
subsea pipeline connecting the Energean Power FPSO directly to Cyprus.

·      In Israel, the Dalia Energy Companies Ltd. binding term-sheet has
been converted into a Gas Sales and Purchase Agreement, representing over $2
billion in contracted revenues. The contract is for approximately 0.5 bcm/yr
from around January 2030 and then approximately 1.2 bcm/yr from June 2035
onwards, and excludes supply in the summer months (June to September) between
2030-2034.

Financial Highlights

·      Nine-month 2025 financial performance was impacted by the same
factors communicated in the Group's H1 2025 results: (1) the planned shutdown
for essential works for the second oil train development in March in addition
to the Ministry ordered suspension of production for security reasons in June
and; (2) lower Brent prices.

o  Revenues for the period were $1,290 million (nine-months 2024: $1,363
million) and adjusted EBITDAX was $828 million (nine-months 2024: $894
million).

·      Cost of Production (excluding royalties) for the period remained
at $6/boe year-on-year, demonstrating disciplined cost control.

·      Development and production expenditure of $388 million, of which
$309 million was associated with Israel, the majority of which was on the
Katlan project.

·      Decommissioning expenditure for the period was $51 million, of
which $36 million was in the UK for the Tors and Wenlock fields.

·      Cash and cash equivalents of $238 million, including restricted
cash of $24 million and total liquidity of $286 million. In Q3 2025, the
remaining amount under the Energean Israel term loan ($675 million) was drawn
to repay the 2026 Energean Israel Limited notes in full.

·      Net debt of $3,245 million, an increase from 30 June 2025
primarily due to: payment of the $100 million deferred consideration to Edison
Spa in July 2025, payment of the semi-annual coupon for Energean Israel's
senior secured notes in September, cash capital expenditure in Israel in Q3
2025 of $172 million, and an increase in trade receivables, primarily
associated with Egypt. Post-period end, Energean received notice from EGPC of
their intention to make a payment towards the outstanding receivables position
by year-end, and to keep current all new monthly invoices.

Corporate Highlights

·      Dividends of $166 million (90 US cents per share) returned to
shareholders in the period.

o  Q3 2025 dividend declared today and expected to be paid on 29 December
2025 3  (#_ftn3) .

·      No near-term debt maturities:

o  2026 Energean Israel Limited notes redeemed and repaid in September 2025
utilising Energean Israel's term loan in full.

o  2027 corporate bond refinanced with EUR 400 million 5.625% senior secured
notes, maturing in 2031, resulting in a weighted average debt maturity of just
under six years 4  (#_ftn4) and weighted average interest rate of 6.9%.

·      Farm-out agreement signed with ExxonMobil for Energean and
HELLENiQ ENERGY's Block 2 concession in the northwestern Ionian Sea. Energean
will remain Operator for the exploration phase, retaining 30% W.I. Exploration
activities are targeted for late 2026/early 2027.

 

Outlook

·      Full year 2025 guidance for production, cash G&A, exploration
and decommissioning unchanged.

·      Cost of Production guidance lowered to $550 - 590 million, due
primarily to cost reductions in Greece.

·      Development and production expenditure guidance in Israel now
expected to be $480 - 500 million (increased from $380 - 400 million),
reflecting inclusion of the Nitzana pipeline expenditure and the
earlier-than-anticipated achievement of key milestones, and thus payments, at
the Katlan project. Total expected Katlan expenditure remains unchanged at
$1.2 billion per the Final Investment Decision announcement. 2026 will mark
the peak year of activity on Katlan, which will include expenditure on
development well drilling and subsea installation. Rest of Portfolio guidance
is reiterated.

·      Net debt guidance increased to $3,100 - 3,200 million due to the
revised development and production expenditure, as discussed above.

·      2026 guidance will be provided in January 2026 as usual when
Energean issues its next Trading Statement & Operational Update.

Financial results summary

                                                              9-Months 2025  9-Months 2024  Increase/ (Decrease) %
 Average daily working interest production (kboed)            151            156            (3%)
 Sales revenue ($m)                                           1,290          1,363          (5%)
 Realised weighted average liquid price ($/boe)               60.9           73.2           (17%)
 Realised weighted average gas price ($/mcf)                  5.0            4.6            8%
 Cost of production (including royalties) ($m)                420            425            (1%)
 Cost of production per barrel (including royalties) ($/boe)  10             10             2%
 Cash G&A                                                     31             27             13%
 Adjusted EBITDAX ($m)                                        828            894            (7%)
 Development and production expenditure ($m)                  388*           477            (18%)
 Exploration expenditure ($m)                                 0              85             (100%)
 Decommissioning expenditure ($m)                             51             25             104%
 Dividend per share ($/share)                                 $0.90          $0.90          -

*Includes $4 million of expenditure on the Prinos Carbon Storage project that
will be covered by grant funding.

 

                                                           30 September 2025  30 June 2025
 Total borrowings ($m)                                     3,483              3,488
 Cash and cash equivalents and restricted cash ($m)        238                487
 Net debt ($m) (including restricted cash)                 3,245              3,000
 Leverage ratio (Net Debt/ Adjusted EBITDAX 5  (#_ftn5) )  2.9x               2.7x

 

Production Summary

                    Nine-months to 30 September 2025  Nine-months to 30 September 2024  % change

                    Kboed                             Kboed
 Israel             109 (inc. 4.0 bcm of gas)         115 (inc. 4.2 bcm of gas)         (5%)
 Rest of portfolio  42 (inc. 29 in Egypt)             41 (inc. 31 in Egypt)             2%
 Total production   151                               156                               (3%)

 

2025 Guidance

                                                                     FY 2025        Previous Guidance
 Production
 Israel (kboed)                                                      105 - 115      No change
 Rest of portfolio (kboed)                                           ~40            No change
 Total production (kboed)                                            145 - 155      No change

 Consolidated net debt ($ million)                                   3,100 - 3,200  2,900 - 3,100

 Cash Cost of Production (operating costs plus royalties)
 Israel ($ million)                                                  320 - 340      No change
 Rest of portfolio ($ million)                                       230 - 250*     240 - 260
 Total Cash Cost of Production ($ million)                           550 - 590      560 - 600

 Cash G&A ($ million)                                                35 - 40        No change

 Development and production capital expenditure
 Israel ($ million)                                                  480 - 500**    380 - 400
 Rest of portfolio ($ million)                                       100 - 120***   No change
 Total development & production capital expenditure ($ million)      580 - 620      480 - 520

 Exploration expenditure ($ million)                                 0 - 5          No change

 Decommissioning expenditure ($ million)                             60 - 80        No change

*Rest of portfolio guidance includes $25-30 million of flux costs in Italy.

**Guidance, as described above, now includes expenditure on the Nitzana
pipeline, where the 40% downpayment has already been made, and the
earlier-than-anticipated achievement of key milestones, and thus payments, at
the Katlan project.

***Includes $10 million expenditure on the Prinos Carbon Storage project,
which is covered by grant funding.

 

Enquiries

 

 For capital markets:
 Kyrah McKenzie, Investor Relations Manager                                                         Tel: +44 (0) 7921 210 862
 ir@energean.com (mailto:ir@energean.com)
 For media:
 Eliana Fishler, Group Head of Communications & Public Affairs                                      Tel: +972 (0) 54 434 2040
 efishler@energean.com (mailto:efishler@energean.com)
 Ben Brewerton, FTI Consulting                                                                      Tel: +44 (0) 2037 271 065
 energean@fticonsulting.com (mailto:energean@fticonsulting.com)

Forward looking statements

This announcement contains statements that are, or are deemed to be,
forward-looking statements. In some instances, forward-looking statements can
be identified by the use of terms such as "projects", "forecasts", "on track",
"anticipates", "expects", "believes", "intends", "may", "will", or "should"
or, in each case, their negative or other variations or comparable
terminology. Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that may cause actual results and events to
differ materially from those expressed in or implied by such forward-looking
statements, including, but not limited to: general economic and business
conditions; demand for the Company's products and services; competitive
factors in the industries in which the Company operates; exchange rate
fluctuations; legislative, fiscal and regulatory developments; political
risks; terrorism, acts of war and pandemics; changes in law and legal
interpretations; and the impact of technological change. Forward-looking
statements speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. The information contained in this
announcement is subject to change without notice.

 

 

 

 1  (#_ftnref1) Calculated as the number of LTIs/TRIRs per million hours
worked over a rolling 12-month period.

 2  (#_ftnref2) The LOI is subject to Israel and Cyprus government approvals.

 3  (#_ftnref3) Payment date is stated as the date upon which payment is
initiated by Energean.

 4  (#_ftnref4) Calculated as of 1 January 2026.

 5  (#_ftnref5) The leverage ratio is calculated using annualised Adjusted
EBITDAX based on actual 9-Months 2025 performance.

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