Record output lifts Energean to top end of 2025 guidance

Energean plc announced during its stock market update for preliminary 2025 results that the fourth quarter of 2025 was the strongest production quarter in the company’s history.

The company stated the record performance capped a year marked by operational resilience despite geopolitical and macroeconomic pressures.

“I am particularly pleased with the excellent fourth quarter, during which we achieved a 12 per cent year-on-year increase in production,” Mathios Rigas commented.

“Average production reached 162 thousand barrels of oil equivalent per day,” he added.

He explained this resulted in average full-year production of 154 thousand barrels of oil equivalent per day, including 113 thousand barrels of oil equivalent per day in Israel.

“This placed production at the upper end of our latest production guidance,” he noted.

He highlighted that, combined with strong operational performance during the summer and continued cost discipline, the group maintained sales revenues and adjusted EBITDAX at levels comparable to the previous year.

He underlined that this was achieved despite geopolitical challenges and macroeconomic pressures, including lower oil prices on a year-on-year basis.

“The company continues to demonstrate resilience thanks to long-term natural gas contracts, with more than 20 billion dollars contracted over the next two decades,” he emphasised.

He reported 2026 began with strong sales in Israel, averaging 132 thousand barrels of oil equivalent per day from the beginning of January.

“This year will be pivotal for Energean as we examine all options to optimise our asset base and grow the company through disciplined and strategic investments,” he stated.

He clarified these investments would be pursued both within the existing portfolio and through selected new opportunities.

The company confirmed average group production on a working interest basis in 2025 reached 154 thousand barrels of oil equivalent per day, of which 85 per cent was natural gas.

It added this reflected strong performance in the second half of the year, particularly in Israel.

The company noted total group production reached the upper limit of the revised guidance range of 145 to 155 thousand barrels of oil equivalent per day.

It maintained production remained stable compared with 2024 despite a temporary suspension of operations in Israel in June following instructions from the Ministry of Energy and Infrastructure due to regional geopolitical developments.

Energean reported sales revenues amounted to 1.716 billion dollars, while adjusted EBITDAX reached 1.112 billion dollars, matching the previous year’s levels.

The company revealed it signed new long-term domestic natural gas contracts representing contracted revenues exceeding 4 billion dollars.

It explained these contracts will supply new power generation units to meet rising natural gas demand in Israel.

Energean confirmed the Nitzana export pipeline from Israel to Egypt has been approved and is under development.

The company stated operating costs excluding royalties were maintained at 6 dollars per barrel of oil equivalent on an annual basis.

It affirmed cash general and administrative expenses were tightly controlled at 38 million dollars.

Energean reported development and production expenditure amounted to 575 million dollars, slightly below guidance of 580 to 620 million dollars.

It added this was mainly due to the deferral of approximately 50 million dollars of capital expenditure related to the Katlan field development to 2026.

The company noted its balance sheet remained resilient, with no short-term maturities following the refinancing of project and corporate bonds during 2025.

Energean confirmed it ensured shareholder returns, with 221 million dollars returned to shareholders in 2025.

It disclosed the company received the final 80 million dollar payment in Egypt from EGPC for 2025, part of which was collected in the first days of January.

Looking ahead, Energean indicated 2026 production is expected to range between 140 and 150 thousand barrels of oil equivalent per day, with 108 to 114 thousand barrels of oil equivalent per day coming from Israel.

The company said investments in production and development are expected to range between 740 and 800 million dollars.

It confirmed core revenues are secured through long-term natural gas contracts in Israel and Egypt, supporting the company’s capital structure.

Energean noted it will maintain strict cost control through targeted reductions and disciplined capital allocation.

The company stated its short-term focus includes optimising its asset base through the merger of concessions in Egypt, with agreement on terms expected within the current quarter.

It added priorities also include signing new long-term natural gas contracts in Israel and advancing export routes.

Energean explained 2026 will be a decisive year for execution and capital commitment for key development milestones at the Katlan project in Israel and the Irena project in Croatia.

It revealed these milestones include development drilling and infrastructure installation.

The company confirmed first gas production from both projects is expected in the first half of 2027.

Energean said an exploration drilling campaign aimed at further growth will begin with the onshore East Bir El-Nus exploration target in Egypt in the second quarter of 2026.

It stated this will be followed by a high-potential offshore well in Block 2 in the North West Ionian Sea, targeted for late 2026 or early 2027.

The group confirmed it is also focused on maturing other high-potential exploration targets in Egypt and Israel.

Energean revealed it continues to evaluate new merger and acquisition opportunities, particularly in West Africa, to support future growth.