Thursday 20 January 2022

Energean plc is pleased to provide an update on recent operations and the Group's trading performance in the 12-months to 31 December 2021 together with guidance for 2022. This information is unaudited and subject to further review.

Mathios Rigas, Chief Executive of Energean, commented:

“2021 was an outstanding year for Energean, one in which we delivered excellent operational and record financial results. Production came in above initial expectations and we recognised all-time-high gas prices in Italy. As a result, we’ve generated full year revenues of over $495 million and EBITDAX in excess of $200 million.

“The FPSO for our flagship project, Karish, is expected to be ready for sail-away by the end of this quarter.

This will kick-start an eventful 2022 with the high-impact drilling programme in Israel beginning in midMarch, first gas from Karish by Q3 and first gas from NEA/NI in Egypt by Q4. With our other development projects in Israel, Italy and Greece also on track we are well positioned to reach our medium-term targets of over 200 kboed production, $2 billion annual revenue and $1.4 billion EBITDAX.

“In 2021, we raised over $3 billion from the debt capital markets to refinance existing borrowings and increase liquidity. In doing so, we extended our weighted average maturity to approximately six years, pushed out commencement of major debt repayment obligations to 2024 and converted floating interest rates to fixed rates. We end the year with over $1 billion1 of liquidity, ensuring we are fully funded to deliver our projects and a sustainable dividend – the policy for which we expect to announce in March with our annual results.

“On the ESG front, we remain focused on reducing our CO2 emissions intensity and are working towards accelerating our 2050 net zero target. As such, we are assessing the feasibility of a number of carbon capture and storage, and eco-friendly hydrogen projects.”

Highlights

• 2021 average working interest production was approximately 41.0 kboed (72% gas), above initial expectations and at the mid-point of the revised full year guidance range of 40.0 - 42.0 kboed

• Revenues for the period were $495.0 million and EBITDAX was $202.9 million, representing record full year consolidated results

Including restricted cash amounts of $200 million and undrawn Greek debt facility of EUR100 million

• 2021 capital expenditure was $359.3 million versus the revised full year guidance range of $415 – 485 million

• The Karish development remains within budget and is on track to deliver first gas by Q3 2022

o On 31 December 2021, the overall project was 92.5% complete2 with the FPSO bein 98.4% complete

o The vessel is expected be ready for sail-away from Singapore by the end of this quarter

• At 31 December 2021, Energean had total liquidity of over $1 billion1 and remains fully-funded for all of its key development projects which remain on track and on budget

• Issued $450 million senior-secured notes in November 2021, maturing in 2027, with a fixed coupon rate of 6.5%

o Combined with the $2.5 billion senior secured notes issued in February 2021 and the €100 million Epsilon funding signed in December 2021 this has increased the weighted average maturity to six years, with first major repayment in 2024 and blended coupon rate of 5.5%

o Converted floating interest rates to fixed

o Increased near-term liquidity

• Signed EUR 100 million non-recourse project funding package backed by the Greek State, for the Epsilon development project in Greece which is due online in H1 2023

• Reduced EGPC receivables to $92 million at 31 December 2021 (40% y-o-y reduction)

o This continues the trend of materially reducing the receivables balance since the economic reference date of the acquisition of Edison E&P (31 December 2019: $222m).

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