Energean H1 2022 Results

September 2022

Disclaimer

This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business.

Whilst Energean believes the expectations reflected herein to be reasonable considering the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Group's control or within the Group's control where, for example, the Group decides on a change of plan or strategy.

The Group undertakes no obligation to revise any such forward-looking statements to reflect any changes in the Group's expectations or any change in circumstances, events or the Group's plans and strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements.

Key messages

Karish on track for first gas within weeks

Maiden dividend payment declared

Ex-Edison assets outperformed expectations

Athena discovery de-risks 58 Bcm Olympus Area

Hermes drilling ongoing

Energean Power FPSO on station

H1 2022 Review

Highlights – H1 2022

Financials

Revenues of \$339 million (65% y-o-y increase)
EBITDAX of \$198 million (165% y-o-y increase)
Group liquidity at 30 June 2022 of \$880 million
Increased revenue (\$2.5 bn) and EBITDAX (\$1.75 bn) mid-term targets

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Operational

Karish FPSO arrived in Israel, on track for first gas within weeks
58 bcm resources de-risked across Olympus Area; Hermes drilling ongoing
New GSPAs signed, including spot sales contract with IEC
Improved contractual gas sales prices in Israel and Egypt

Corporate

• Maiden quarterly dividend declared; targeting return of >\$1bn by end-25 in line with dividend policy

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ESG

c. 6% reduction in emissions intensity in H122 vs FY21
Constituent of FTSE4Good Index Series; Maala Index rating increased to platinum

Financials: H1 2022 review and FY 2022 guidance

H1 2022 results – key figures

	H1 2022	H1 2021	Increase / (Decrease) %
Working interest production Kboed (% gas)	35.4 (73% gas)	44.0 (72% gas)	(20)
Sales & other revenue \$ million	339	206	65
Cash Cost of Production1 \$/boe	19	15	25
Cash S,G&A \$ million	15	17	(11)
Adjusted EBITDAX2 \$ million	198	75	165
Operating cash flow \$ million	147	53	176
Capital expenditure2 \$ million	398	230	73
Net debt3 \$ million	2,175	1,693	29

1 Cost of production is calculated as the cost of sales, including royalties, excluding depreciation and hydrocarbon inventory movements; Includes \$17.4 million of flux costs. ²Adjusted EBITDAX is a non-IFRS measure used by the Group to measure business performance. It is calculated as profit or loss for the period, adjusted for discontinued operations, taxation, depreciation and amortisation, share-based payment charge, impairment of property, plant and equipment, other income and expenses, net finance costs and exploration and evaluation expenses. ³ Includes exploration costs ⁴ Less deferred amortised fees

2022 guidance – update

2022 guidance
Production	49.0 – 62.0 kboed (inc. Israel) Down from 60-70 34.0 – 37.0 kboed (excl. Israel) Down from 35-40	Guidance narrowed. Production during H2 2022 expected to benefit from Abu Qir infill drilling and post-Rospo Mare maintenance
Cost of Production1	\$370 – 380 million Narrowed from \$360-390m	Guidance narrowed within previously communicated range of \$360-390 million
Development & production capital expenditure2	\$800 – 850 million Up from \$710-760m	Guidance increased due to: (1) deferral of final INGL payments, (2) deferral of commencement of liquidated damages due under the EPCIC, (3) costs associated with the timely sailaway of the FPSO from Singapore and (4) increased capitalised costs versus the outlook in March 2022
Exploration capital expenditure	\$165 – 195 million Up from \$100m	Guidance increased due to Hermes and Zeus
Decommissioning expenditure	\$15 million Down from \$20m	Guidance decreased due to deferral of decommissioning activities
Consolidated net debt3	\$2,400 – 2,500 million Down from \$2.6-2.8bn	Guidance (shown post-dividend) decreased due to higher commodity prices

1 Operating Costs plus all royalties, including flux costs. In 2022, this includes around \$30 million of flux costs for Italy; ² Includes (i) \$250 million of payments to Technip accrued under the EPCIC which will be deferred. ³Guidance net debt shown is on a gross basis, i.e. without amortisation of fees

Medium-term guidance – update

Revenue and EBITDAX targets increased

Medium-term targets
Production	>200 kboed) No change	Maintained

Revenues	\$2,500 million Up from \$2 billion	Increased primarily due to improved contractual gas sales prices in Israel (PT increase) and Egypt (PSC amendment)

Cost of Production1	\$9 – 11/ boe No change	Maintained

EBITDAX	\$1,750 million Up from \$1.4 billion	Increased primarily due to improved contractual gas sales prices in Israel (PT increase) and Egypt (PSC amendment)

Net debt / EBITDAX	< 1.5x No change	Maintained

1 Operating Costs plus all royalties, including flux costs.

Capital structure – update

Net debt position – end-June 2022			Debt maturity structure
	30 June 2022 \$ million		Energean Israel Senior Secured Notes Energean PLC Senior Secured Notes Greek State-Backed Loan
Cash – excluding Israel	457.8	700	Potential to refinance 2024-26 tranches to further extend profile
Cash – Israel	354.3	600
Cash – Group	880.11
Debt – PLC Senior Secured Notes	442.5	500
Debt – PLC Convertible Loan Notes2	43.5	400	No near term debt
Debt – Greek State-Backed Loan	33.0	on Milli \$	maturities
Debt – excluding Israel	519.5	300
Debt – Israel	2,467.3	200
Debt – Group	2,986.8
Net debt – excluding Israel	61.7	100
Net debt – Group	2,174.6	0	2022 2023 2024 2025 2026 2027 2028 2029 2030 2031	2032

1 Including restricted cash of \$138.4 million, which includes \$135.6 million in Israel; ² Maturity date of 29 December 2023, a strike price of £9.50 (subject to change on ex-dividend date) and a zero-coupon rate.

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Capital allocation – update

Dividend – update

Declared maiden dividend – one quarter early, aligned with commitments and no impact on capital allocation policy

Dividend protected by long-term gas contracts with floor prices

Upside available from access to market prices

m er m-t u di e M	>140 kboed	>40 kboed	>20 kboed	>200 kboed
s a G %	c.80%	c. 90%	c. 55%	>80%
s e c pri or o Fl	Gas – floor + indexed to PT Liquids – market	Gas – floor + cap with Brent linkage Liquids – market	Gas – market Liquids – market	c. 75%

Operational update – production & Karish

Production – H1 actuals, H2 and FY22 guidance

Egypt

H1 24.8 kboed (86% gas)
Abu Qir NAQ-PII#6 infill well online in September

Comments

• Full year guidance now 24 – 26 kboed

Italy

H1 9.3 kboed (43% gas)
Planned maintenance at Rospo Mare in June and October
Full year guidance now 9.0 9.5 kboed

Rest of Portfolio

H1 1.3 kboed (30% gas)
Full year guidance now 1.0 1.5 kboed

Israel

Full year guidance now 15.0 25.0 kboed
Q4 contribution of 60.0 100.0 kboed

Karish – update

First gas on track to be delivered within weeks

Operational update – growth projects

Karish North and second oil train & gas riser – update

Projects on track to complete by end-2023

1 YE 2021, from D&M CPR report, ² Includes the Karish North development well

Egypt – update

1 Forecast based on H1 2022 actuals, 2022 guidance and August 2022 management outlook

Italy – update

1 Pre-hedging. ²Forecast based on H1 2022 actuals, 2022 guidance and August 2022 management outlook, including unsanctioned Rospo Mare infill drilling

Commercial & exploration update

Flagship Karish assets underpinned by long-term gas contracts

Delivering competition, security of supply & displacing coal

7.2 bcm/yr gas sales agreements in Israel¹

Karish, Karish North & Tanin Gas Supply

Commercialisation update

Within weeks Karish first gas. Production level depends on timing of first gas, rate at which gas buyers transition away from existing suppliers and the extent to which volumes will be sold under the IEC spot agreement
2022-25 Ramp up of 18 contracts signed with independent power producers (IPPs) including both recently privatised IEC stations, Alon Tavor, Ramat Hovav and East Hagit, and bluechip industrial customers including ORL and ICL
Alternative commercialisation options, including export at market opportunities
MOU signed with EGAS, for up to 3 Bcm/yr, representing a commercialisation option for gas resources discovered in the 2022/23 drilling campaign
Spot agreement signed with IEC, enhancing potential to increase offtake volumes towards maximum FPSO capacity following first gas from Karish
Limited term exclusivity agreement and term sheet signed² with Vitol SA for the marketing of Karish liquids. A firm offtake agreement is in the final stages of negotiation and expected to be signed before Karish first gas

1 The MOU does not have an impact upon existing gas sales agreements with Israeli domestic offtakers of 7.2 Bcm/yr.

Israel 2022 drilling campaign – update

Well no.	Well name	Operator / share	Pre-drill estimate*	Status	On time, on budget
#1	Athena-01	Energean / 100%		8 Bcm discovery, derisked 58 Bcm in Olympus Area	Drilled in 51 days
#2	Karish Main-04	Energean / 100%	N/A – appraisal well	Completed	Drilled in 49 days
#3	Karish North-01	Energean / 100%	N/A – development well	Completed	Drilled in 45 days
#4	Hermes-01	Energean / 100%	13 – 40 bcm	Drilling
#5	Zeus-01	Energean / 100%	10 – 12 bcm (already part of Olympus Area)	Q3 / Q4 2022
#6	6 th optional well agreed with Stena Drilling using the same rig (Stena IceMax). Location TBD if option exercised.

*un-risked management estimated recoverable volumes

Israel drilling campaign – Olympus Area

Zeus confirmed as 5th well to further refine Olympus Area volumetrics and enable faster progress to commercialisation

AI Terminal

Energean PLC

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