Energean Announces 2021 Full Year Results

Energean plc (ENOG) is pleased to announce its audited full-year results for the year ended 31 December 2021 (" FY 2021 ").

Mathios Rigas, Chief Executive of Energean, commented:

"2021 was an outstanding year for Energean, one in which we delivered excellent operational and record financial results. Production came in above initial expectations and we also benefitted from an elevated market price environment. As a result, we generated full year revenues of $497 million and Adjusted EBITDAX of $212 million.

"Our flagship project, Karish, is on track for first gas in Q3 2022. Earlier this month, we commenced the largest 2022 drilling programme in the East Med and spudded the Athena exploration well which is targeting 21 Bcm (totaling 140 mmboe). Positive results from this high-impact programme would be an important catalyst for the growth of our operations in Israel and the region where security of supply is being increasingly prioritised.

" Elsewhere, first gas from NEA/NI in Egypt is anticipated in H2 2022 and the remainder of our development projects in Israel, Italy and Greece remain on track. We are well positioned to reach our medium-term targets of over 200 kboed production, $2 billion annual revenue and $1.4 billion Adjusted EBITDAX.

"As such we are pleased to announce our inaugural dividend policy. It is our goal to make reliable, recurring and sector-leading returns to shareholders, targeting a first dividend to be paid no later than during Q4 2022, following first gas from Karish (Q3 2022). This is made possible by our ongoing operational and financial success and represents an important new phase in Energean's corporate development.

"Energean is focused on reducing its carbon emissions and we are working towards our 2050 net zero target. In 2021, we delivered a 8% year-on-year reduction in carbon emissions intensity to 18.3 kgCO2/boe [1] . Actions taken to achieve this reduction included implementing a zero routine flaring policy across our operated sites and switching to renewable-sourced electricity in Italy - having already put green electricity contracts in place for Israel and Greece in 2020. The latter has resulted in a 100% y-o-y reduction in Scope 2 emission at our operated sites. We continue to progress on our journey to net zero with key actions identified for this year.

"2022 will be a landmark year for Energean. It will be the year of first production from our major project, Karish. It will be the year that brings us one step closer to our Net Zero Target. It will be the year we target to add a sustainable and reliable dividend stream to the total return to shareholders."

Highlights

- Announcement of Inaugural Dividend Policy

- First gas from Karish on track for Q3 2022, development was 92.5% complete as at 31 December 2021

- Revenues of $497 million ($336 million 2020pro forma[2]) and Adjusted EBITDAX of $212 million ($108 million 2020pro forma2), representing record full year results and the transition to net operating profit. Capital expenditure was $408 million ($565 2020 pro forma2)

- Reduced EGPC receivables to $95 million as at 31 December 2021 (c.40% y-o-y reduction)

- Average working interest production of 41.0 kboed (72% gas) was above initial guidance[3], with cost of production of $17.5/boe

- Spudded the Athena exploration well, offshore Israel. First drilling results expected during Q2 2022

- Entered into a spot sales agreement with Israel Electricity Company ("IEC"), the biggest natural gas consumer in Israel for Karish gas

- Increased the weighted average debt maturity to six years, pushed out the first major repayment until 2024 and achieved blended fixed rate of 5.5%, removing exposure to floating rates

- Signed funding package backed by the Greek State for the Epsilon development project in Greece, due onstream in H1 2023
- 8% year-on-year reduction in carbon emissions intensity when considering 2021 Energean data versus 2020 pro forma performance data

Outlook

- First gas from Karish in Q3 2022

- Payment of the inaugural dividend, targeted for no later than Q4 2022, following first gas from Karish (Q3 2022)

- 2022 average working interest production, excluding Israel, is expected to be 35.0 - 40.0 kboed. Israel production rate in 2022 is expected to average 25.0 - 30.0 kboed and will be a function of both the first gas date and the commercial ramp up achieved in the initial days and weeks of production

- 2022 development and production capital expenditure is expected to be $710 - 760 million[4]

- First gas from the first well at NEA/NI (Egypt) expected in H2 2022

- Complete Pre-Front-End Engineering Design ("pre-FEED") on the carbon capture and storage ("CCS") project in Greece

- Secure additional Gas Sales Agreements in Israel and the region