LONDON: Ithaca Energy announced Wednesday unaudited financial results for the first quarter of 2025, highlighting record production and adjusted EBITDAX following its transformational business combination with Eni UK and strategic acquisitions in the UK Continental Shelf (UKCS).
Key Financial Highlights
– Record quarterly production: 127,400 barrels of oil equivalent per day (boe/d), up from 58,699 boe/d in Q1 2024.
– Adjusted EBITDAX: $653.2 million, nearly doubling from $339.0 million in Q1 2024.
– Operating costs: Reduced to $16.5 per barrel of oil equivalent (boe) from $22.9/boe year-over-year.
– Leverage: Pro forma net debt-to-EBITDAX ratio improved to 0.38x, with $1.1 billion in available liquidity.
Strategic Growth & Acquisitions
The company advanced its UKCS consolidation strategy with two major deals:
1. JAPEX UK E&P Acquisition: Announced in March, increasing Ithaca’s stake in the Seagull field from 35% to 50%. Expected to close July 1, 2025.
2. Cygnus Field Stake Expansion: Announced May 20, boosting Ithaca’s operated interest in the gas field from 38.75% to 85%. The deal, valued below $7/boe, is expected to add ~12,500–13,500 boe/d net production.
Executive Chairman Yaniv Friedman called the results a testament to the “transformational” Eni UK merger and operational efficiency. “With a strong balance sheet, record EBITDAX, and material hedging through 2027, we are well positioned to grow and deliver shareholder returns,” he said.
Shareholder Returns & 2025 Outlook
– Dividends: Paid a $200 million interim dividend in April, bringing total 2024 shareholder returns to $500 million.
– 2025 Target: Reaffirmed a $500 million dividend, representing 30% of post-tax cash flow.
– Production Guidance: Maintained at 109,000–119,000 boe/d for 2025, with an exit rate of ~135,000 boe/d after acquisitions.
Ithaca has hedged 27.5 million barrels of oil equivalent through 2027, with floors at $73/bbl for oil and 99p/therm for gas, safeguarding cash flows amid price volatility.
The company emphasized continued growth through low-risk acquisitions and organic investments, bolstered by its strengthened gas portfolio and financial flexibility.