Energean almost doubled its adjusted EBITDAX in 2021, from 2020, and expects first gas from its Karish project in the third quarter of this year.
Energean CEO Mathios Rigas said 2021 had been an “outstanding year” for the company. “Production came in above initial expectations and we also benefitted from an elevated market price environment.”
EBITDAX reached $212.1 million, from $107.7mn, while sales revenue reached $497mn, from $335.9mn.
Capital expenditure was down in 2021, at $407.9mn. Spending this year should be $710-760mn.
Net debt was up for the year, though, at $2.02 billion, from $1.24bn.
Starting up Karish should see leverage fall. Energean also expects to begin paying a quarterly dividend of at least $50mn, starting in the fourth quarter of this year.
Karish is on track, Rigas said, for start up in the third quarter. It was 92.5% complete as of the end of 2021. In March, contractor TechnipFMC oversaw the connection of the onshore pipeline to the Israeli grid.
Energean has a spot sales agreement with Israel Electric Co. (IEC) for gas from Karish.
“Earlier this month, we commenced the largest 2022 drilling programme in the East Med and spudded the Athena exploration well which is targeting 21 [billion cubic metres] bcm”, Rigas said.
Success at Athena would “be an important catalyst for the growth of our operations in Israel and the region where security of supply is being increasingly prioritised”. The company expects results from the well in the second quarter of this year.
Energean also intends to reach first gas from its NEA/NI gas project in Egypt in the second half of the year from one well. The other three wells should start up in the first half of 2023.
The company approved the project in January 2021. As of the end of December it was 37% complete. Energean signed a deal with EDC for the El Qaher-1 jack-up in January.
“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.  will be the year we target to add a sustainable and reliable dividend stream to the total return to shareholders,” Rigas said.
The company produced 41,000 barrels of oil equivalent per day in 2021, of which 72% was gas.
Energean expects its non-Israeli production to reach 35,000-40,000 boepd this year. Israel should average 25,000-30,000 boepd, depending on the speed at which Karish ramps up. NEA/NI will produce around 15,000 boepd.