FY 2024 Trading Update

ITHACA ENERGY PLC

(“Ithaca Energy”, the "Company" or the “Group”)

FY 2024 Trading Update

20 February 2025

Full year performance at the top end of management guidance with strong Q4 production and cost performance closing out a transformational year

Ithaca Energy, a leading UK independent production and growth company, today provides the following unaudited trading update for the year ended 31 December 2024, ahead of announcing its Full Year Results on 26 March 2025.

Highlights: A materially transformed business, post combination with Eni UK (“Business Combination”)

• Q4 production of 116.0 kboe/d¹ and opex per boe of approximately $14/boe delivering estimated Q4 EBITDAX of $642 million
• Strong 2024 production of 80.2 kboe/d¹ at the top end of market guidance range
• Reached peak production rates of 138 kboe/d¹ in Q4, with strong performance continuing into January (>120kboe/d¹ average for the 3 months Nov-Jan)
• Strict cost control with opex falling below the market guidance range
• Capital costs in mid-point of the market guidance range demonstrating organic investment commitment
• Exiting 2024 as the largest resource holder in UKCS, with estimated 2P Reserves & 2C Resources of 658 mmboe¹ as at 31 December 2024 (2023: 544 mmboe)
• Significant benefits from Business Combination being immediately realised:
  • Enhanced portfolio strength and diversification supporting materially improved production performance and reliability
  • Increased financial firepower and flexibility following successful $2.25bn refinancing
  • Integration well-advanced with IT systems and office relocations completed in January 2025
  • Reorganisation and streamlining process to be fully complete by 1 July 2025
• Rosebank project continues to progress in line with multi-year development timeline following Judicial Review ruling
• Improved safety record with zero Tier 1 or 2 incidents in the year
• Paid $200 million special dividend in December 2024 ($300 million in total for 2024), supporting 2024 dividend target of $500 million and reaffirming dividend target of $500 million for 2025

Yaniv Friedman, Executive Chairman, commented: “2024 was a transformational year for Ithaca Energy. We enter 2025 with a stronger, more diverse production and reserves base, significant investment optionality, increased financial strength and an enhanced strategic platform. We continue to see material opportunity in our home basin, with an eye on international expansion, providing a range of strategic options for growth. Our focus will continue to be on high-grading investment across our range of growth opportunities, executing in line with our strategy as a value-led investor, to maximise long-term sustainable shareholder value.”

Luciano Vasques, Chief Executive Officer, commented “Our 2024 performance exceeded expectations and the combination of the business with the Eni’s UK assets is demonstrating its value. The integration is progressing well, with both operational and systems aspects well on track. We have also seen improved performance in safety and a marked reduction in emission intensity. We are progressing on all fronts of our organic growth projects, and welcome the recent Judicial Review ruling on the Rosebank development, which supports its continued progression. The Rosebank development is good for the UK, it supports 2,000 UK jobs in its construction phase, increases UK energy security and contributes significant tax receipts to the Government.”

Iain Lewis, Chief Financial Officer, commented: “With production at the top end of guidance and operational costs driven lower than guidance, our financial performance in 2024 was strong, with momentum building during the year, climaxing in a Q4 EBITDAX of over $0.6 billion. We continue to build our value levered hedge position, which combined with our recently refinanced balance sheet gives us a strong financial foundation for future growth and cash returns.”

Safe and responsible operator

• Positive trend in safety performance in 2024, with zero Tier 1 and Tier 2 process safety events recorded in the year and significant reduction in total recordable incident frequency
• Business Combination emissions accretive with reduction in CO₂e GHG emissions intensity in 2024 to 23.9 kgCO₂e/boe (on a Scope 1 and 2 net equity basis) (2023: 25 kgCO₂e/boe)

Strong Q4 production performance, with positive production trend continuing into 2025

• Pro-forma 2024 production of 105.5 kboe/d¹ placing Ithaca Energy as the second largest independent operator by production in the UKCS (2023: 70.2 kboe/d¹)
• Strong operational performance in Q4, achieving average production of 116.0 kboe/d¹
• Reached peak production rates of 138 kboe/d¹ in final quarter
• Continued strong production trend into 2025, with average production from November to January of >120 kboe/d¹

Strong financial performance against guidance for enlarged group, with materially enhanced Q4 results

• 2024 full year production of 80.2 kboe/d¹, delivering production at the upper end of guidance of 76–81 kboe/d for the enlarged group
  • Includes six months production from Eni UK assets from 1 July economic effective date (legal completion on 3^rd October 2024)
  • Production split approximately 60% liquids and 40% gas
• Estimated 2024 net operating costs of $649 million, representing a net unit opex cost of $22/boe, below management guidance of $650 million to $730 million for the enlarged Group
  • Includes six months operating costs from Eni UK assets from 1 July economic effective date
• Q4 cost per barrel of approximately $14.0/boe demonstrating the high netback capability of the post deal portfolio
• Estimated 2024 net producing asset capital cost of $448 million, at mid-point of management guidance of $410 - $480 million for the enlarged Group
  • Includes six months capital costs from Eni UK assets from 1 July effective date
• Estimated 2024 net Rosebank capital spend of $198 million, marginally above management guidance of $170 million to $195 million, reflecting material project activity and progress in 2024
• Rosebank project remains on track to targeted first production date of 2026/27
• Group cash tax paid in the year of $351 million below the Group’s management guidance range of $390 million to $410 million due primarily to cash tax payments made prior to economic effective date of the Business Combination that will be offset in the final deal working capital settlement
• Pro-forma comparison of $405 million. The significant majority of tax payments relate to Energy Profits Levy, including all of the Ithaca Energy legacy business cash tax payments

Enhanced cash generation and increased financial strength supports material shareholder distributions

• Estimated 2024 adjusted EBITDAX of $1.4 billion (2023: $1.7 billion) and cash from operations of $0.9 billion (2023: $1.3 billion), representing contributions from Eni UK assets from the completion date of 3 October onwards
• Estimated Q4 EBITDAX performance of $642 million, reflects truly transformational nature of Business Combination
• Successful $2.25 billion refinancing completed in Q4, enhancing balance sheet strength and flexibility with available liquidity of over $1 billion
• Hedged position at 31 January 2025 of 28.5 mmboe (c.66% gas, c.33% oil) from 2025 into 2027 with average oil swap pricing >$77/bbl and average gas swap pricing c.100p/therm
• Significant gas hedging activity throughout Q1 securing attractive gas hedge positions during a period of escalating prices
• Material ring fence corporate tax and supplementary charge tax loss position of c.$5.4 billion at year-end 2024
• $300 million of 2024 dividends paid to date
• The Group remains committed to delivering attractive returns to its shareholders, reaffirming total dividend target of $500 million for 2024 and 2025

Upcoming events

Ithaca Energy plans to host an Investor Update on Wednesday 26 March 2025 alongside its Full Year Results. The Group expects to publish guidance for 2025 with the full year 2024 results together with a full Competent Persons Report (CPR) prepared by an independent reserves auditor.

Enquiries

About Ithaca Energy plc

Ithaca Energy is a leading UK independent exploration and production company focused on the UK North Sea with a strong track record of material value creation. In recent years, the Company has been focused on growing its portfolio of assets through both organic investment programmes and acquisitions and has seen a period of significant M&A driven growth centred upon three transformational acquisitions in recent years, including the recent Business Combination with Eni UK. Today, Ithaca Energy is one of the largest independent oil and gas companies in the United Kingdom Continental Shelf (the “UKCS”), ranking second largest independent by production with the largest resource base.

With stakes in six of the ten largest fields in the UKCS and two of UKCS’s largest pre-development fields, and with energy security currently being a key focus of the UK Government, the Group believes it can utilise its significant reserves and operational capabilities to play a key role in delivering security of domestic energy supply from the UKCS.

Ithaca Energy serves today’s needs for domestic energy through operating sustainably. The Group achieves this by harnessing Ithaca Energy’s deep operational expertise and innovative minds to collectively challenge the norm, continually seeking better ways to meet evolving demands.

Ithaca Energy’s commitment to delivering attractive and sustainable returns is supported by a well-defined emissions-reduction strategy with a target of achieving net zero ahead of targets set out in the North Sea Transition Deal.

Ithaca Energy plc was admitted to trading on the London Stock Exchange (LON: ITH) on 14 November 2022.

Note

1. Given the increase in gas volumes in Ithaca Energy’s portfolio following the Eni UK Business Combination, the gas conversion factor metric to boe for reporting purposes has been recalibrated to more accurately reflect energy equivalence on a combined boe basis using an average calorific value of all gas streams

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