Press Release

H1 - 2020 Financial Results

27 August 2020

27 August

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) (“Ithaca” or the “Company”) is pleased to announce its financial results for the six months ended 30 June 2020 (“H1-2020”).


  • Strong operational performance with limited disruption arising from Covid-19 related restrictions
  • Production of 73 thousand barrels of oil equivalent per day (“kboe/d”), 61% liquids, during the first six months of 2020 (“H1-2020”)
  • Forecast 2020 production anticipated to be at the top end of the 63-68 kboe/d guidance range
  • Unit operating costs of $15/boe in H1-2020, down from $17/boe pro-forma 2019 unit operating expenditure
  • H1-2020 EBITDAX of $398 million, including realised commodity hedging gains of $220 million
  • During H1-2020 the company re-set the majority of its 2021/22 oil hedges, maintaining underlying hedge volumes with swaps at the prevailing forward curve – as a result, in addition to the EBITDAX of $398 million, $155 million of cash flow has been accelerated into H1-2020
  • 23 million barrels of oil equivalent (68% oil) hedged from the start of July 2020 into 2022 at an average price floor of $51/bbl oil and 49p/therm gas after reflecting the impact of the re-set
  • Net debt at 30 June 2020 was $1.3 billion, down from $1.55 billion at year-end 2019
  • H1-2020 results include the $795 million post-tax non-cash impairment included in the Q1-2020 financial results
  • Decisive actions taken at the start of the year to manage the Covid-19 pandemic and sharp fall in oil prices – forecast 2020 capital expenditure halved to approximately $125 million and unit operating expenditure reduced by approximately 15% to $15/boe
  • Measures being taken to recommence some of the deferred investment programmes, with capital expenditure forecast to be in the range of $125 to $135 million.
  • Taking into account solid year to date operational performance, full year 2020 production is anticipated to be towards the top end of the guidance range of the 63-68 kboe/d issued when the potential impact of Covid-19 restrictions were incorporated into the outlook
  • Mid-year independent reserves evaluation completed with proven and probable reserves (“2P”) and resources (“2C”) broadly unchanged at 258 million barrels of oil equivalent (“MMboe”), after taking into account production in H1-2020, despite a reduction in forecast future commodity prices

The unaudited consolidated H1-2020 financial statements of the Company and the related Management Discussion and Analysis are available on the Company’s website (

H1-2020 Financial Results Investor Call

A conference call and webcast will be held today at 12.00 British Summer Time (07.00 Eastern Daylight Time), with a playback facility being made available on the Company’s website ( later that day. Listen to the call live via the Company’s website or alternatively dial-in on one of the following telephone numbers: UK +44 (0) 203 936 2999; US +1 646 664 1960 using the participant code 003023 to access the conference call. A short presentation to accompany the results will be available on the Company’s website prior to the call.

- ENDS -


Ithaca Energy

Graham Forbes
+44 (0)1224 652 151

Richard Smith
+44 (0)1224 652 172

FTI Consulting (Media Enquiries)

Ben Brewerton
+44 (0)203 727 1000

Sara Powell
+44 (0)203 727 1000

1. References to “pro-forma” take into account the contribution from the CNSL assets from the 1 January 2019 effective date of the acquisition to the completion date on 8 November 2019.

All values in this release and the Company's financial disclosures are in US dollars, unless otherwise stated.

The calculation of barrels of oil equivalent (“boe”) have been derived by converting gas to oil in the ratio of 5.8 thousand cubic feet ("Mcf") of gas to one barrel ("bbl") of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 5.8 Mcf : 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 5.8 Mcf : 1 bbl, utilising this conversion ratio may be misleading as an indication of value.

About Ithaca Energy

Ithaca Energy is an independent oil and gas company with production, development and exploration operations focused on the UK North Sea. The Company was founded in 2004 and has grown through a combination of acquisitions and new field developments. Our strategy is focused on establishing the company as a leading North Sea operator, delivering sustainable growth in free cash flow generation, underpinned by operational excellence and financial discipline.

Ithaca Energy is a wholly owned subsidiary of the Tel Aviv stock exchange listed Delek Group Limited (TASE: DLEKG, US ADR: DGRLY), Israel’s leading integrated energy company. For further information please consult the Company’s website

Forward-looking Statements

This press release contains projections, information, beliefs, opinions and other forward-looking statements (collectively “forward-looking statements”) regarding future events and the performance, financial condition, results of operations and business of the Company. All statements and information other than present and historical facts contained in this release are forward-looking. When used in this press release, the words and phrases like “forecast”, "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", “target”, “in the process of”, “on track” and similar expressions, and the negatives thereof, whether used in connection with production forecasts, reserve and resource estimates, operational activities, drilling plans, anticipated timing for the commencement of production from new fields and wells, budgetary figures, future operating costs, financing activities, anticipated net debt, anticipated funding requirements and uses of available credit under the Company’s debt facilities, the financial benefits of commodity hedging arrangements, potential developments including the timing and anticipated benefits of acquisitions and divestments or otherwise, expected future payments in connection with acquisitions and divestments, statements relating to reserves, or otherwise, are intended to identify forward-looking statements. Forward-looking statements are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, including, among other things, assumptions with respect to production, drilling, construction and maintenance times, well completion times, risks associated with operations, future capital and operating expenditures, financing activities, continued availability of financing for future capital expenditures, future acquisitions and divestments and cash flow, required regulatory, partner and other third party approvals. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Such statements are not promises or guarantees and are subject to known and unknown risks, uncertainties and other factors that are in many cases beyond the control of the Company and that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Past performance of the Company cannot be relied on as a guide to future performance. The Company believes that the expectations reflected in those forward-looking statements are reasonable at the date of this press release but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws.

H1 - 2020 Financial Results