Press Release

Q1 - 2020 Financial Results

29 June 2020

29 June

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) (“Ithaca” or the “Company”) is pleased to announce its financial results for the three months ended 31 March 2020 (“Q1-2020”).


  • Strong operational performance with limited disruption arising from Covid-19 related restrictions
  • Q1-2020 production of 75.2 thousand barrels of oil equivalent (“kboe/d”), 61% liquids
  • Unit operating costs of $16/boe, down $1/boe compared to pro-forma1 average 2019 unit costs
  • Q1-2020 EBITDAX of $221 million, including realised commodity hedging gains of $84 million
  • Net debt at 31 March 2020 was $1.4 billion, down $150 million on year-end 2019
  • Net debt to EBITDAX leverage ratio of 1.6x as at 31 March 2020, reflecting $885 million pro-forma EBITDAX for the prior twelve months
  • Forecast net debt at the end of the first half of 2020 of approximately $1.3 billion – a further $100 million reduction on end Q1-2020
  • As a result of the historic collapse in oil and gas prices at the end of the quarter, a post-tax impairment of $795 million (excluding the benefit of hedging) was recognised – this was partially offset by a $510 million increase ($306 million post tax) in the value of the future commodity hedges held by the company
  • 27 million barrels of oil equivalent (69% oil) hedged from the start of April 2020 into 2022 at an average price floor of $53/bbl oil and 50p/therm gas after reflecting the impact of the re-sets that accelerated $156 million of cash flow by April 2020
  • Clear actions taken to manage the sharp fall in oil prices and proactively preserve liquidity and cash flow resilience – 2020 capital investments reduced by 50% to approximately $125 million and unit operating costs from $17/boe to approximately $15/boe
  • Production for the first six months of 2020 is forecast to average approximately 72 kboe/d - ahead of the 63-68 kboe/d guidance issued when the potential impact of Covid-19 restrictions were incorporated into the outlook

The unaudited consolidated Q1-2020 financial statements of the Company and the related Management Discussion and Analysis are available on the Company’s website (

Q1-2020 Financial Results Investor Call

A conference call and webcast will be held on Tuesday 30 June 2020 at 12.00 BST (07.00 EDT), 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 636364 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

Les Thomas
+44 (0)1224 650 261

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.

Q1 - 2020 Financial Results