Press Release

Q1 2022 Financial Results

26 May 2022

26 May

Ithaca Energy Releases Financial Results for the 3 months to 31 March 2022

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) today announced its financial results for the three months ended 31 March 2022.

Financial Highlights

  • Production of 70.5 thousand barrels of oil equivalent per day (“kboe/d”), 64% liquids (Q1 2021: 65 kboe/d)
  • Unit operating costs of $19/boe
  • EBITDAX of $474 million including realised gains of $10 million on the commodity hedging instruments that were reset in 2020
  • $200 million was repaid against the Reserves Based Lending facility during Q1 taking net debt down to $703 million on 31 March 2022 (31 March 2021: $1.07 bn)
  • 20 million barrels of oil equivalent (65% oil) hedged from Q2 2022 into 2023 at an average price floor of $62/bbl oil and 110p/therm gas

Operational Highlights

  • As reported with the FY 2021 financial results, development consent for the Abigail field was received from the North Sea Transition Authority (formerly the Oil and Gas Authority) in January 2022. On 7 May, a significant milestone was reached when the subsea manifold and subsea isolation value riser base structure were installed while drilling operations continued with the COSL Pioneer rig
  • Abigail remains on track for first oil in Q3 2022
  • Captain EOR Stage 2 progress remains on track with first oil expected in 2023
  • Capex in Q1 was $84 million (not including the producing assets acquired from Marubeni of $333m) with expected full year capex of $444 million and continuing at c.$400 million per year over the next three years, not including the Siccar Point assets assets

Corporate Highlights

  • Post-period, the Group signed a Sale and Purchase Agreement for the acquisition of Siccar Point Energy (Holdings) Limited on 7 April 2022:
    • The acquisition will accelerate Ithaca’s growth, positioning it as one of the leading E&P operators in the UK North Sea through the addition of interests in four of the UK’s largest oil and gas fields
    • The consideration of the agreement includes an upfront payment of $1.1 billion and a series of contingent payments totalling a maximum of $360 million ($300 million linked to future developments and $60 million linked to short term realised commodity prices)
    • The transaction has an economic date of 1 January 2022 and is subject to normal completion activities including gaining consent from the North Sea Transition Authority
  • As previously reported, the agreement to acquire 100% of the share capital of Marubeni Oil & Gas UK Limited completed on 4 February 2022 and gives Ithaca non operated working interests in the Repsol Sinopec operated MonArb assets and CNR operated Columba assets which will contribute approx. 7 kboe/d to production in 2022
  • Activities continue to work towards completing the acquisition of 100% of the share capital of Summit Exploration & Production Limited. The sale and purchase agreement was signed on 28 February 2022

A conference call and webcast will be held on 31 May 2022 at 13:00 (8:00 EDT). Dial-in with one of the following telephone numbers: UK 020 3936 3000; International +44 20 3936 2999 using the participant code 942184 to access the conference call. 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.


Ithaca Energy Releases Financial Results for the 3 months to 31 March 2022