REG - Ithaca Energy PLC Delek Group - DLEKG - Third Quarter Update and Results

Ithaca EnergyAnnouncement

Today 07:02

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251119:nRSS0700Ia&default-theme=true

RNS Number : 0700I  Ithaca Energy PLC  19 November 2025

Press release

19 November 2025

ITHACA ENERGY PLC

("Ithaca Energy", the "Company" or the "Group")

 

Third Quarter Update and Results for the Nine Months to 30 September 2025

 

Strong execution across our portfolio to deliver 2025 outlook

Reaffirming management guidance and dividend

 

Ithaca Energy today announced its unaudited financial results for the nine
months ended 30 September 2025.

 

Celebrating a year of successful operations following Business Combination:

·    Strong YTD production: YTD average production of 115 kboe/d (YTD
2024: 52.5 kboe/d), following execution of unprecedented levels of summer shut
down activity

·    Continued strong HSE performance: Zero Tier 1 or Tier 2 events
recorded in the year and improved HSE performance with a material reduction in
Total Recordable Injury Rate (TRIR) and in the Greenhouse Gas emission
intensity of the Group's portfolio from 2024

·    Transformed cost base: YTD opex per barrel of $19.1/boe (YTD 2024:
$28.9/boe), reflecting impact of the Eni UK Business Combination on the
Group's cost profile and high netback capability of the enlarged portfolio

·    Enhanced financial performance: YTD adjusted EBITDAX of $1,501.2
million (YTD 2024: $758.5 million)

·    Strong balance sheet: Successful €450 million 2031 bond issuance
and $300 million upsizing of Reserves Based Lending (RBL) facility in Q3, with
strong investor demand

·    Material financial firepower: Low leverage position of 0.50x with
significant available liquidity of $1.7 billion

·    Focus on growth and high return investments:

·    Executing targeted and increased organic investment supporting
production upside, reliability enhancement and efficiency focus alongside
investment in high return wells in the year

·    Material progression of West of Shetland growth strategy supporting
the Group's long-term production outlook. Farm-in to Tobermory announced
today, 19 November, forming part of the Group's gas strategy in the area

·    Continued delivery of consolidation strategy in the UKCS: Completion
of the acquisitions of JAPEX UK E&P and a further 46.25% stake in the
Cygnus Field from Spirit Energy adding circa. 18 kboe/d proforma production in
2025

·    Attractive shareholder returns: First interim dividend of $167
million declared and paid in September 2025 and second interim dividend of
$133 million accelerated and payable in December, taking total cash
distributions declared in 2025 to $500 million

2025 Outlook and increased production capacity trend into 2026:

·    Management reaffirms all previously provided guidance ranges for FY
2025, supporting the improved 2025 outlook announced in August, and reaffirms
its targeted 2025 dividend of $500 million

·    FY 2025 production outlook: On track to deliver upgraded full year
production guidance of 119 - 125 kboe/d, with production trending to the
bottom end of the range, primarily due to the Group's decision to extend the
Captain shutdown to allow for increased scope and further investment into
safeguarding longer-term environmental and operational performance, and the
delayed start-up to three new high production wells to December 2025

·    Increasing production capacity trend into 2026: Uplift to the Group's
2025 exit rate in Q4 from 140 kboe/d to circa 145 kboe/d is expected.
Following the successful completion of the unprecedented TAR season, and with
three new high production wells expected on stream in December, the Group is
entering 2026 with an increased installed total production system capacity

Executive Chairman, Yaniv Friedman, commented: "Our Q3 YTD results for 2025
show what a pivotal period it has been for Ithaca Energy. The successful
integration of Eni's UK assets and our additional M&A success is reflected
in our strong operational and financial performance, with average production
levels of 115k boe/d, an uplift of our expected exit rate to 145 kboe/d in Q4,
and EBITDAX of over $1.5 billion. We have continued to deliver on our strategy
of disciplined investment, operational excellence, and targeted growth across
our core assets, further strengthening our position as the leading energy
company in the UK North Sea, all while delivering material improvements in our
HSE performance.

Building on the momentum in the year to date we are continuing to progress our
West of Shetland growth strategy supporting the Group's long-term production
outlook and we remain vigilant for M&A opportunities that fulfil our
investment criteria, aided by our significant liquidity position of $1.7bn
following our successful bond issuance and RBL expansion this quarter.

At the same time, we continue to deliver on our commitment for shareholder
returns, evidenced by our first interim 2025 dividend declared of $167 million
and further accelerated dividend of $133 million announced today totalling
$500 million of cash dividend in 2025, supporting the reaffirmation of the
Group's FY 2025 dividend target of $500 million. As we approach the end of a
landmark year, we focus on our ambition to drive long-term value for all
stakeholders and to play a leading role in the UK's energy future."

  Financial key performance indicators (KPIs)
                                                YTD        YTD

                                                Sep 2025   Sep 2024
 Adjusted EBITDAX(1) ($m)                       1,501.2    758.5
 Profit before tax ($m)                         668.1      183.7
 Adjusted net income(1) ($m)                    226.9      181.9
 (Loss)/profit for the period(2) ($m)           (119.1)    134.7
 Basic EPS (cents)                              (7.2)      13.4
 Net cash flow from operating activities ($m)   1,279.6    792.5
 Unit operating expenditure(1) ($/boe)          19.1       28.9

                                                YTD        Q4 2024

                                                Sep 2025
 Available liquidity (1) ($m)                   1,664.3    1,015.1
 Adjusted net debt (1) ($m)                     1,063.8    884.9
 Pro forma leverage ratio (1)                   0.50x      0.45x

 Other KPIs
                                                YTD        YTD

                                                Sep 2025   Sep 2024
 Total production (boe/d)                       114,928    52,501
 Tier 1 & Tier 2 process safety events          0          0
 Serious injury and fatality frequency          0          0

(1) Non-GAAP measure

(2) Reflects one-off, non-cash deferred tax charge in Q1 2025 of $327.6
million due to the two-year extension of EPL to 31 March 2030. Q3 2025 profit
for the period of $98.3 million (Q3 2024: $29.0 million)

 

Q3 2025 Strategic Highlights

Continued strong execution across the Group's strategic pillars, maximising
value and returns for shareholders.

Organic growth: Investing across our portfolio

·    Successful progression of Captain 13(th) well campaign and expected
sanctioning of the 14(th) drilling campaign in Q4 2025, that will support
further drilling activity at the end of 2026, reflecting the Group's
significant ongoing investment in the field

·    Captain Flotel campaign ongoing with decision to extend the duration
beyond the initial term. The material scopes of work being executed support
the asset life extension programme including backlog reduction and
optimisation activities

·    Cygnus infill well campaign continues with the first of the four firm
wells (C12) expected to achieve first production in early December, and the
second well spudding immediately thereafter. The Group has sanctioned further
investment in the area for 2026, following our acquisition of an additional
46.25% from Spirit Energy, with the fourth well added to the ongoing campaign
and further development wells being considered

·    First production from the fourth and final Seagull well (J4) was
achieved in Q4, following a technical issue experienced in H1. The well is
performing in line with expectations, however the delay to first production
reduces the assets expected production contribution in FY 2025

·    Material activity in the J Area following the decision to proceed
with further value-led investment, with additional well activity sanctioned at
Judy East Flank (JEF) and investment in Joanne well stimulation activity,
based on continued strong J Area performance. Production start-up of the JEF
well expected mid-December

Organic growth: West of Shetland Area strategy momentum building

·    Rosebank development project progressing towards key milestones that
are critical to achieving first production timeline of 2026/27:

-      Material progress toward achieving refreshed consents with the
submission of an updated Environmental Statement in Q3, including the
assessment of 'Scope 3' emissions associated with the project

-      2025 offshore subsea installation scopes delivered on time and
budget with excellent HSE statistics

-      Drilling activities scheduled to commence Q1 2026, as planned

-      Floating Production Storage and Offloading (FPSO) refurbishment
activity progressing at pace, with a target to sail away early 2026 in order
to enable mooring in field during 2026

-      Maintaining FPSO sail away date in Q1 2026, together with drilling
and hook up and commissioning works, remains critical to achieving first
production target of 2026/27. Cost updates from the Operator indicate that
assuming key milestones are achieved, including limited carry over activities
post FPSO sail away, the total project cost outturn forecasts do not need to
be materially updated at this time and will be revisited post FPSO sail away

·    Continued Cambo project maturation towards final investment decision
(FID) and potential farm-down, subject to fiscal and regulatory clarity:

-      Tenders for main project packages including FPSO Engineering,
Procurement, Construction and Commissioning (EPCC) and Subsea, Umbilicals,
Risers and Flowlines (SURF) activities have commenced, following the
successful technical refresh of the project

-      Working towards submission of an updated Field Development Plan
and Environmental Statement in Q4 2025, reflecting project optimisations

·    The Tornado project is progressing towards FID with tendering and
advancement of the Environmental Statement, forming part of the Group's wider
West of Shetland gas strategy that has the potential to enable further
exploration and appraisal in the area, subject to fiscal and regulatory
clarity

·    50% Farm-in to Shell's Tobermory gas field announced today (19 Nov),
forming part of the Group's West of Shetland gas development strategy with the
potential for significant synergies between the Tornado and Tobermory gas
fields

 

Inorganic growth: Pursuing consolidation strategy in UKCS, increasing stakes
in key assets

·    Successful delivery of inorganic growth strategy with low-risk
consolidation in core UKCS basin demonstrating the Group's execution
capabilities:

-     Acquisition of JAPEX UK completed 7 July 2025, increasing stake in
well-understood, high-quality, long-life Seagull field from 35% to 50% and
adding pro forma 2025 production of approximately 4 - 4.5 kboe/d. Completion
payment in Q3 of $136 million (based on an effective date for the transaction
of 1 January 2024 and after customary purchase price adjustments)

-     Acquisition of 46.25% stake in the Group's operated Cygnus field
from Spirit Energy completed 1 October 2025 in line with targeted completion
date. The acquisition increased the Group's stake in the high-margin,
low-emission operated Cygnus gas field to 85%, adding circa 12.5 - 13.5 kboe/d
net production on a pro forma basis, enhancing the gas weighting of the
Group's portfolio. Completion payment in Q4 of £115 million (based on an
effective date for the transaction of 1 January 2025 and after customary
purchase price adjustments)

·    Bolt-on acquisitions have been completed at attractive investment
metrics, increasing the Group's ownership stakes in key assets across its
portfolio, where the Group believes additional upside potential exists

Value creation and shareholder returns

·    First interim 2025 dividend of $167 million declared and paid in
September 2025, representing a dividend per share of $0.101

·    Acceleration of second interim dividend of $133 million, representing
a dividend per share of $0.0804, announced today (19 November) and payable 18
December 2025, demonstrating the Group's strong year-to-date performance and
cash generation and taking the Group's total 2025 cash distributions to $500
million

·    Reaffirming dividend for 2025, targeting $500 million for FY 2025
with the remaining tranche payable following the Group's full year results
announcement in March 2026

·    Expansion of the Group's free float to 13.6% from 10.6% following
majority shareholder sell-down on a pro forma basis

Q3 2025 Operational Update

·    Strong process safety performance with zero Tier 1 or Tier 2 events
recorded in the first nine months of the year and a material reduction in
Total Recordable Injury Rate (TRIR) from 2024, with 1.62 cases per million
hours year to date from 2.89 YTD 2024

·    Significant reduction in Greenhouse Gas (GHG) emission intensity of
the Group's portfolio, bringing our gross operated emissions intensity to
17.34 kgCO(2)e/boe from 20.14 kgCO(2)e/boe YTD 2024

·    Unprecedent levels of turnaround activity executed during Q3 across
the Group's operated and non-operated portfolio with material activity scopes
concluded successfully during October

-     12 out of 15 TARs were delivered on plan or better. Captain
turnaround execution extended due to increased scope, with further investments
made safeguarding longer-term environmental and operational performance.
Return to full production achieved in the first week of November

·    Average YTD production of 114.9 kboe/d (YTD 2024: 52.5 kboe/d),
reflecting heavy turnaround activity in Q3 in line with the Group's
expectations and as incorporated into full year production guidance

-     YTD 2025 production split 58% liquids, 42% gas and 38% operated, 62%
non-operated reflecting the impact of the Eni UK Business Combination

·    Material improvement in production efficiency YTD across the Group's
operated and non-operated asset base, consistently achieving higher than 2024
average of 80% and 2024 industry average of 75%, and reflected in strong
operational performance

·    New wells, including Jocelyn South and Talbot, continue to perform
ahead of expectations

 

Q3 2025 Financial Highlights

Enhanced balance sheet with financial strength and flexibility to support
future growth

·    Strong credit credentials highlighted by successful €450 million
issuance of 5.5% senior notes, due 2031, with significant investor demand
providing further financial firepower, optimising the Group's financial
structure and extending its debt maturity profile. Effective all-in USD
interest rate of 6.7%

·    Liquidity position further supported by $300 million upsizing of the
Group's Reserves Based Lending (RBL) facility via accordion, with the addition
of all new lending institutions

·    Low leverage position of 0.50x with significant available liquidity
of $1.7 billion (31 December 2024: $1.0 billion), providing material financial
firepower for growth

·    Adjusted net debt at end of the quarter of $1,063.8 million (31
December 2024: $884.9 million)

·    Rating agencies retained previous rating upgrades in October 2024
following the completion of the Business Combination with Eni UK, reflecting
the enhanced strength of the enlarged Group

 

Strong financial performance and cash generation

·    YTD adjusted EBITDAX of $1,501.2 million (YTD 2024: $758.5 million)

·    YTD profit before tax of $668.1 million (YTD 2024: $183.7 million).
Q3 2025 profit before taxation of $154.6 million (Q3 2024: loss before
taxation of $5.7 million) reflecting a full quarters contribution from the Eni
UK Business Combination and a lower level of impairment charges partly offset
by higher finance costs

·    YTD loss for the period of $119.1 million (YTD 2024: net profit of
$134.7 million), reflecting primarily a one-off, non-cash deferred tax charge
of $327.6 million due to the two-year extension of EPL to 31 March 2030. Q3
2025 profit for the period of $98.3 million (Q3 2024: $29.0 million)

·    YTD adjusted net income of $226.9 million (YTD 2024: $181.9 million)

·    YTD realised oil prices of $71/bbl before hedging and $73/bbl after
hedging (YTD 2024: $84/bbl before hedging and $83/bbl after hedging) and gas
prices of 88p/therm before hedging and 90p/therm after hedging (YTD 2024:
73p/therm before hedging and 110p/therm after hedging)

·    YTD operating costs of $600.1 million (YTD 2024: $415.6 million)
reflecting a YTD opex per barrel of $19.1/boe (YTD 2024: $28.9/boe)
demonstrates the Group's focus on cost control and the high netback capability
of the enlarged portfolio

·    YTD producing assets capex of $468 million (YTD 2024: $272 million)
and Rosebank capex of $183 million (YTD 2024: $141 million)

·    YTD net cash flow from operating activities of $1,279.6 million (YTD
2024: $792.5 million)

·    As at 18 November 2025, the Group had 39.5 million barrels of oil
equivalent (54% oil) hedged from Q4 2025 into 2027 at an average floor price
of $68/bbl for oil swaps, $62/bbl for oil puts/collar floors, 98p/therm for
gas swaps, and 81p/therm for gas puts/collar floors

 

FY 2025 Management Guidance

·    Management reaffirms all previously provided guidance ranges for full
year 2025, updated 19 August 2025 to reflect stronger 2025 outlook:

-     FY 2025 production in range of 119-125 kboe/d with production
trending to the bottom end of the range, primarily due to the Group's decision
to extend the Captain shutdown to allow for increased scope and further
investment into safeguarding longer-term environmental and operational
performance, and the delayed start-up to three new high production wells to
December 2025

-     FY 2025 net operating cost guidance range of $790-840 million

-     FY 2025 net producing asset capital cost guidance range of $630-670
million (excluding pre-FID projects and Rosebank development)

-     FY 2025 net Rosebank development capex guidance range of $230-270
million

-     FY 2025 cash tax guidance range of $270-300 million, trending to the
bottom end of the range

·    The Group uplifts its expected production exit rate in Q4 2025 from
140kboe/d to around 145kboe/d. Following the successful completion of the
unprecedented TAR season and with three new high production wells expected on
stream in December, the Group is entering 2026 with an increased installed
total production system capacity

 

 

Webcast and Conference call

Ithaca Energy will host a virtual presentation and Q&A session for
investors and analysts at 09:00 (GMT) today, 19 November 2025. Details are
accessible via our website.

Investors and Analysts - Webcast link

https://www.investis-live.com/ithaca-energy/690a37f00727be00165e1d15/fefd
(https://www.investis-live.com/ithaca-energy/690a37f00727be00165e1d15/fefd)

 

Investors and Analysts - Conference call

Operator Assisted Dial-In: United Kingdom (Local): +44 20 3936 2999 United
Kingdom (Toll-Free): +44 808 189 0158 Global Dial-In Numbers Access Code:
750843

 

Enquiries

 Ithaca Energy
 Kathryn Reid - Head of Investor Relations & External Affairs      kathryn.reid@ithacaenergy.com (mailto:kathryn.reid@ithacaenergy.com)

 Camarco (PR Advisers to Ithaca Energy)                            +44 (0)203 757 4980
 Billy Clegg / Owen Roberts / Violet Wilson                        ithacaenergy@apcoworldwide.com

Notes:

(1) Non-GAAP measure

( )

About Ithaca Energy plc

 

Ithaca Energy is a leading UK independent exploration and production company
with a strong track record of material value creation. In recent years, the
Company has been focused on growing its portfolio of assets through both
organic investment programmes and acquisitions and has seen a period of
significant M&A driven growth centred upon three transformational
acquisitions in recent years, including the recent Business Combination with
Eni UK. Today, Ithaca Energy is one of the largest independent oil and gas
companies in the United Kingdom Continental Shelf (the "UKCS"), ranking second
largest independent by production with the largest resource base.

 

With stakes in six of the ten largest fields in the UKCS and two of UKCS's
largest pre-development fields, and with energy security currently being a key
focus of the UK Government, the Group believes it can utilise its significant
reserves and operational capabilities to play a key role in delivering
security of domestic energy supply from the UKCS.

 

Ithaca Energy serves today's needs for domestic energy through operating
sustainably. The Group achieves this by harnessing Ithaca Energy's deep
operational expertise and innovative minds to collectively challenge the norm,
continually seeking better ways to meet evolving demands.

 

Ithaca Energy's commitment to delivering attractive and sustainable returns is
supported by a well-defined emissions-reduction strategy with a target of
achieving net zero ahead of targets set out in the North Sea Transition Deal.

 

Ithaca Energy plc was admitted to trading on the London Stock Exchange (LON:
ITH) on 14 November 2022.

-ENDS-

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  QRTUWVWRVSUAAAA



            Copyright 2019 Regulatory News Service, all rights reserved