Aug 30 2022
Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) today announced its financial results for the six months ended 30 June 2022.
During Q2, Ithaca Energy completed the acquisitions of Summit Exploration and Production Limited (“Summit E&P”) and Siccar Point Energy (Holdings) Limited (“Siccar Point Energy”).
The acquisition of Summit E&P increased the Group’s interest in Elgin Franklin from 3.9% to 6.1%, and the acquisition of Siccar Point Energy provides interests in four of the UK’s largest oil and gas fields – Schiehallion (11.8%), Mariner (8.9%), Rosebank (20%) and Cambo (70%).
$750 million was drawn from the Reserves Based Lending Facility to finance the acquisitions of both Summit E&P and Siccar Point Energy which completed on 30 June.
The acquisition accounting for Siccar Point Energy Group Limited resulted in the recognition of negative goodwill of $666 million which is non-taxable, due to Ithaca Energy recognising tax assets that were not available to the Siccar Point Energy.
As at 30 June 2022, net debt was $1.4 billion, maintaining a Leverage Ratio of 0.9x.
Significant cash generation post quarter end has seen Net Debt further decline.
Production highlights include 67 thousand barrels of oil equivalent per day (“kboe/d”), 65% liquids for the year.
Unit operating costs of $19/boe.
EBITDAX of $905 million.
17 million boe (71% oil) hedged from Q3 2022 into 2024 at an average price floor of $63/bbl oil and 125p/therm gas. A number of these hedges are zero cost collars, giving an upside in addition to the floor price.
Significant activity continues on the Abigail development, a subsea tie back to the FPF1 floating production facility. During the quarter, the subsea construction campaign completed phase one which involved installation of a subsea manifold and subsea isolation riser base structure along with phase two which was the installation of the production and gas lift pipelines. Since the start of the campaign in April 2022, work has progressed safely and according to plan. First oil is planned for October 2022.
A conference call and webcast will be held on Tuesday 30th August 2022 at 2pm BST (9am EDT) which can be registered for by clicking here. Listen to the call live via the Company’s website (https://www.ithacaenergy.com/) or dial-in with one of the following telephone numbers:
UK: 0800 640 6441
International: +44 20 3936 2999
Participant code: 809685
A short presentation to accompany the results will be available on the Company’s website prior to the call and a playback facility will be made available on the Company’s website later in the day.