Yahoo Finance

• Pro Forma Production: Over 105,000 barrels per day in 2024.

• Peak Production Q4 2024: 138,000 barrels per day.

• Q1 2025 Production: 120,000+ barrels per day.

• Adjusted EBITDAX 2024: $1.4 billion.

• Q4 2024 Adjusted EBITDAX: $646 million.

• Capital Investment 2024: $650 million.

• Dividend Distribution 2024: $500 million.

• Net Cash Flow from Operations 2024: $900 million.

• Available Liquidity: Over $1 billion.

• OpEx per Barrel Q4 2024: $14.

• Full Year OpEx per Barrel 2024: $22.

• Hedging Gains 2024: $135 million.

• Leverage Ratio: 0.45x.

• Refinancing: $2.25 billion completed.

• 2025 Production Guidance: 105,000 to 115,000 barrels per day.

• 2025 OpEx Guidance: $770 million to $850 million.

• 2025 Capital Expenditure Guidance: $560 million to $620 million.

• 2025 Rosebank CapEx: $210 million midpoint.

• 2025 Cash Taxes: Mid-250s million.

• 2025 Dividend Target: $500 million.

• Warning! GuruFocus has detected 7 Warning Sign with FRA:XE3.

Release Date: March 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ithaca Energy PLC (FRA:XE3) achieved a peak production of 138,000 barrels per day in Q4 2024, with a strong start in 2025, maintaining over 120,000 barrels per day.

• The company reported a significant adjusted EBITDAX of $1.4 billion for 2024, with Q4 alone contributing close to $650 million.

• Ithaca Energy PLC successfully refinanced its reserve-based lending facility, securing $2.25 billion, demonstrating a strong balance sheet.

• The company distributed $500 million in dividends to shareholders in 2024 and plans to maintain this target in 2025.

• Operational safety was highlighted with zero Tier 1 and Tier 2 events, and a reduction in emissions, showcasing a commitment to responsible operations.

Negative Points

• There is uncertainty surrounding the fiscal regime post-EPL, which could impact future investment decisions and project developments.

• The company faces challenges in maintaining production levels above 100,000 barrels per day without additional acquisitions or developments.

• Ithaca Energy PLC's capital expenditure on the Rosebank project slightly exceeded target guidance, indicating potential cost management issues.

• The company is exposed to volatility in gas prices, which could impact financial performance despite hedging strategies.

• Integration of acquired assets and cultures remains a complex challenge, requiring careful management to realize synergies and efficiencies.

Q & A Highlights

Q: Can you elaborate on your ambition to maintain production over 100,000 barrels per day and how this aligns with your organic acquisitions? A: Yaniv Friedman, Executive Chairman, explained that the production target is based on the current business portfolio, excluding potential acquisitions like JAPEX. The production levels are reflected in the CPR and are expected to be maintained in the medium term without any special additions.