Press Release

Ithaca Energy plc today announced its financial results for the six months ended 30 June 2024

22 August 2024

ITHACA ENERGY PLC

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

First Half Results for the Six Months to 30 June 2024

Continued execution of 2024 strategic objectives driving robust cash generation Transformational Business Combination supports long-term growth

Ithaca Energy, a leading UK independent exploration and production company, today announced its unaudited financial results for the six months ended 30 June 2024.

Financial key performance indicators (KPIs)

H1 2024

H1 2023

Adjusted EBITDAX1 ($m)

533.0

979.7

Statutory net income ($m)

105.7

159.6

Adjusted net income1 ($m)

124.7

253.2

Basic EPS (cents)

10.5

15.9

Net cash flow from operating activities ($m)

559.8

691.0

Available liquidity 1 ($m)

1,028.0

791.3

Unit operating expenditure1 ($/boe)

27.3

19.8

Adjusted net debt 1 ($m)

506.0

698.7

Adjusted net debt/adjusted EBITDAX 1

0.40x

0.35x

Other KPIs

Total production (boe/d)

53,046

75,755

Tier 1 and 2 process safety events

0

1

1 Non-GAAP measure as set out on pages 46 to 48.

H1 2024 Strategic Highlights: Continued execution against our strategy

Transformative Business Combination with Eni UK creates dynamic growth player

Transformational business combination of Ithaca Energy and substantially all of Eni S.p.A’s (Eni) UK upstream oil and gas assets announced in April 2024, creates a dynamic growth player with the largest resource base in the UKCS2 and significant growth optionality, creating a platform for organic and inorganic growth (the “Business Combination” to form the “Combined Group”).


  • Well positioned to deliver further consolidation in mature UKCS basin, with a proven track record for value-accretive M&A and an agile response to market dislocation
  • Credible platform for international M&A as an additional route for value creation, leveraging the Group’s enhanced technical resource and financial strength and the expertise of its shareholders
  • Establishes a diverse and balanced portfolio of scale with pro-forma full year 2024 production forecast of 100 to 110 kboe/d2
  • Material combined long-life 2P reserve and 2C resource base of 632 mmboe with organic growth potential to become largest producer in the UKCS by the early 2030s3
  • Seeks to replicate success of Eni’s proven satellite model and Delek Group’s inorganic growth strategy, combining the agility of an independent with the capabilities of a Major
  • Enhanced cash flow generation, with a potential $10bn of total pre-tax cash flow from operations from 2P reserves over the next five years (2025 to 2029) at $88/bbl, 90p/therm4
  • Combined utilisable c. $6.0 billion of RFCT losses and c. $5.0bn of SCT losses for the Combined Group as at 31 December 2023 to offset against future profits
  • Highly cash-generative combination supports attractive and sustainable returns with ambition for up to $500 million total dividends each year in 2024 and 20255
  • Enhances balance sheet and financial strength providing material firepower for growth and a potential pathway to investment grade credit rating
  • Enhances Ithaca Energy’s GHG emissions intensity with a reduction in combined pro-forma CO2e GHG emissions intensity to 21 kgCO2e/boe (on a Scope 1 and 2 net equity basis)
  • Strengthened executive and operational teams, including appointment of Yaniv Friedman as Executive Chairman and Luciano Vasques as Chief Executive Officer (at completion), reflecting the ambition, experience and rigour required to deliver the next phase of transformational growth
  • Committed and aligned shareholders in support of long-term growth strategy and shared ambition to enhance liquidity
  • In line with the previously announced timeline, the Company will today publish its prospectus, which will be made available on the Company’s website, in support of a targeted completion early Q4 2024

BUILD

  • Rosebank project progressed materially to multi-year development timeline including successful completion of major subsea campaign with the installation of all nine subsea structures ahead of schedule, in parallel with ongoing FPSO vessel modifications scopes where work is progressing to seek to maintain schedule
  • Captain Electrification technical Front-End Engineering Design (FEED) study completed with Final Investment Decision (FID) subject to fiscal and market conditions
  • Successfully awarded licence extension from 31 March 2024 to 31 March 2026 for Cambo field on 19 March, supporting the ongoing live farm-in processes to enable the future progression of Cambo and Fotla towards FID, subject to fiscal and market conditions

BOOST

  • Successfully completed the Captain Enhanced Oil Recovery (EOR) Phase II project, executed on plan and within budget, with first Phase II polymer injection into the subsea wells commencing in May 2024 supporting an estimated peak response from the field in 2026
  • Continued high levels of activity at Captain, including rig recertification, in support of the topside drilling campaign scheduled to commence in Q3 2024
  • Completed W1 well workover at Erskine during July, reinstating the fifth production well at the field

H1 2024 Operational highlights

  • Average H1 2024 production of 53.0 thousand barrels of oil equivalent per day (kboe/d)
    • Q1 production of 58.7 kboe/d and Q2 production of 47.4 kboe/d
    • H1 production split 69% liquids and 31% gas
  • Lower H1 production primarily reflects operational issues across our non-operated joint venture (NOJV) portfolio and non-operated infrastructure and planned turnaround scopes:
    • As previously reported, non-operated Pierce field production impacted by the vessel remaining off-stream for the entirety of Q1. Returned to full production in Q2 and subsequently achieving high levels of uptime
    • Non-operated Schiehallion field production impacted by: 1) previously reported weather- related downtime and outages caused by the Ocean Great White rig being off station, which will also have an impact on the timing of production wells later in 2024; and 2) operational issues on the Glen Lyon FPSO during Q2 restricting production capacity. The operator is working on a solution to address the issue with an expected return to full capacity in Q3
    • Previously reported compressor issues at Erskine’s host facility (Lomond) significantly impacting production in H1, expected to return to production in H2
    • Turnaround activity at non-operated Jade field during Q2 to address J13 well productivity issues (ongoing)
    • Increase in unplanned production trips at Captain (operated) with remedial work ongoing to address backlog and reliability improvements

H1 2024 Financial highlights: Robust cash flow generation

  • Adjusted EBITDAX of $533.0 million (H1 2023: $979.7 million), driven mainly by reduced production of 53.0 kboe/d (H1 2023: 75.8 kboe/d) and lower realised gas prices
  • Realised oil and gas prices (respectively) of $87/boe and $57/boe before hedging results and $86/boe and $92/boe after hedging results (H1 2023: $85/boe and $82/boe before hedging results and $83/boe and $125/boe after hedging results)
  • Operating costs, net of tanker costs and tariff income, reduced to $263.3 million (H1 2023: $272.1 million), reflecting the Group’s stringent focus on cost control in an inflationary environment, with higher unit operating expenditure reflecting fixed cost nature of operating spend coupled with lower production volumes in the period
  • Statutory net income of $105.7 million (H1 2023: $159.6 million) including post-tax decommissioning liability related impairment charges of $19.0 million (H1 2023: $93.6 million) of post-tax impairment charges principally related to GSA) and positively by post-tax reduction in contingent payment liabilities related to updated field development likelihoods of $27.4 million
  • Robust net cash flow from operating activities of $559.8 million (H1 2023: $691.0 million)
  • H1 2024 producing asset capex of $178 million and Rosebank capex of $90 million reflecting material targeted investment across the Groups portfolio
  • Robust cash generation during H1 2024 supported the continued reduction of net debt with adjusted net debt of $506.0 million (H1 2023: $698.7 million)
  • Group leverage position of 0.40x adjusted net debt to adjusted EBITDAX (H1 2023: 0.35x)
  • Strong liquidity position of $1,028.0 million reflecting a 30% increase (H1 2023: $791.3 million)
  • First interim 2024 dividend of $100 million declared and payable in September. Reaffirming dividend commitment in 2024 and 2025 of 30% post-tax cash flow from operations (CFFO) with ambition for special dividends to increase total distributions to up to $500 million per annum5

FY 2024 Management Guidance

Alongside the publication of the Group’s prospectus today, that will contain a full Competent Persons Report (CPR) prepared for Ithaca Energy plc and Eni UK by an independent reserves auditor, including field economic outputs, management provides the following updated FY 2024 guidance ranges for Ithaca Energy on a Combined Group and standalone basis, based on an effective date of 30 June 2024.

Revisions in management guidance across production, Rosebank capex and cash tax are expected to have limited cash impact at current commodity prices of $76/boe based on midpoint guidance ranges with management reaffirming its dividend commitments for 2024 and 2025 of 30% post-tax CFFO with an ambition for special dividends to increase total distributions to up to $500 million per annum5:

Net Producing Asset Capital Costs
  • FY 2024 Combined Group production of 76-81 kboe/d (revised from 80-87 kboe/d)
  • FY 2024 standalone production of 54-57 kboe/d (revised from 56-61 kboe/d), reflecting lower production volumes in H1
Net Operating Costs:
  • FY 2024 Combined Group net operating cost guidance range of $650–730 million reaffirmed
  • FY 2024 standalone net operating cost guidance range of $540–590 million reaffirmed
Net Producing Asset Capital Costs (excluding pre-FID projects and Rosebank development):
  • FY 2024 Combined Group net producing asset capital cost guidance range of $410-480 million reaffirmed
  • FY 2024 standalone net producing asset capital cost guidance range of $335-385 million reaffirmed
Net Rosebank Project Capital Costs:
  • FY 2024 net Rosebank project capital cost guidance range lowered from $190-230 million to $170- 195 million due to phasing of FPSO upgrades
Cash Tax:
  • FY 2024 Combined Group cash tax guidance lowered from $435-455 million to $390-410 million
  • FY 2024 standalone cash tax guidance lowered from $345-355 million to $300-320 million largely due to prior year tax return submission processes including decommissioning loss carry back


Yaniv Friedman, Executive Chairman, commented: “I am delighted to have joined Ithaca Energy in such a pivotal point in the Group’s growth story and look forward to steering the business as it enters it next phase of transformational growth. The publication of the prospectus later today, marks a significant step towards completion of the Group’s Business Combination with Eni UK anticipated in early Q4 2024, creating a dynamic growth player with significant organic and inorganic investment optionality.”

Iain Lewis, Interim Chief Executive Officer and Chief Financial Officer, commented: “I am pleased to report continued execution against our 2024 strategic priorities in the first half of the year and a strong period of cash flow generation. With a robust liquidity position at the end of H1 and increased financial strength from the addition of Eni UK’s unlevered assets, following completion, we have significant financial firepower to support the delivery of the Group’s strategy and returns to shareholders, while supporting a pathway to investment grade.”

Ithaca Energy will host an in person and virtual presentation and Q&A session for investors and analysts at 09:00 (BST) today, 22 August 2024, accessible via our website: https://investors.ithacaenergy...


Half-year 2024 performance in review

Delivering against the Group’s 2024 strategic priorities

We enter the second half of the year in a position of strength having made material progress in the first half of the year delivering against our strategic objectives for 2024, most notably with the announcement of the Groups transformational Business Combination with substantially all of the upstream assets of Eni in the UK, creating a dynamic growth player. The Business Combination, expected to complete in early Q4 2024, enhances Ithaca Energy’s position as a leading UKCS operator and highlights the Group’s continued ambition for value-led organic and inorganic growth and delivering returns to shareholders.

Across our portfolio our focus remains on maximising the value of our diverse high-value and long-life assets via targeted investment in value-accretive organic opportunities in line with the Groups BUILD and BOOST strategy, delivering reserves growth and supporting our vision for sustainable long-term growth. Post completion of the Business Combination and through the Groups continued investment in key long-life assets such as Rosebank and Captain, the Group will materially grow its 2P reserve base to 342 mmboe3 from 254 mmboe at 31 December 2023.

Business Combination creates a dynamic growth player with significant optionality

In April 2024, Ithaca Energy announced its transformational Business Combination with Eni UK creating a significant growth player with the single largest resource base in the UK North Sea and underlying un-risked growth potential to become the largest producer in the UKCS by 20303. The synergistic Business Combination brings together highly-complementary portfolios with significant scale, balance and optionality creating a strategic platform for material long-term organic growth.

With a proven track record for value-accretive M&A, the Combination creates an enhanced platform for delivery of the Groups inorganic growth strategy in the North Sea and internationally. Ithaca Energy is well positioned to play a pivotal role in further North Sea consolidation, taking an agile response to continued market dislocation, and with access to Enis global credentials and the expertise and relationships of its shareholders, supports the ability to broaden the Groups M&A strategy internationally, establishing additional options for value creation.

The Group announced a number of changes to its Board of Directors and Executive Management team in the first half of the year to strengthen its leadership and operational capabilities. Through the appointment of Yaniv Friedman as Executive Chairman, Luciano Vasques as Chief Executive Officer (on completion of the Combination) and Odin Estensen as Chief Operating Officer alongside Iain Lewis as incumbent Chief Financial Officer, the Groups strengthened executive team reflects the ambition, experience and operational rigour required to deliver the next phase of transformational growth. The Groups leadership and operational teams will be further augmented by senior leadership appointees and access to Enis deep operational and technical capabilities via a Technical Services Agreement on deal completion.

The Business Combination further enhances the Groups balance sheet and financial strength. With the addition of Eni UKs unlevered assets, the Combined Groups increased scale, diversification and debt capacity provides access to more attractive and diverse pools of capital, creating material firepower to support the delivery of Ithaca Energys BUY, BUILD and BOOST strategy while supporting a potential pathway to an investment grade credit rating.

Ithaca Energys enhanced cash flow generation, with a potential $10bn of total pre-tax cash flow from operations from 2P reserves over the next five years (2025 to 2029) at $88/bbl, 90p/therm4, together with its disciplined and capital allocation framework, supports the delivery of attractive sustainable shareholder distributions with a commitment to distribute 30% of post-tax CFFO and an ambition for special dividends to increase total shareholder distributions to up to $500 million per annum in 2024 and 20255.

As the Group enters its next phase of growth, it is supported by committed long-term shareholders and an aligned partnership between Delek and Eni in support of Ithaca Energys long-term growth strategy. By combining the agility of an independent with the capabilities of a Major, the combination seeks to replicate the success and proven track record of material value creation of Enis satellite model in mature basins.

BUILD: Continued progress across our high-value development portfolio

Following a successful final investment decision and sanction of the Rosebank project in H2 2023, the project continues to progress in 2024 towards first production in 2026/27, delivering against the Groups strategy to BUILD a robust long-term portfolio of low carbon intensity assets.

Materially in line with the projects multi-year development timeline, work is progressing across the core project scopes including the upgrade of the Petrojarl Rosebank FPSO. In July 2024, the development achieved a key milestone, completing the major subsea campaign ahead of schedule with installation of all nine subsea structures on the seabed of the Rosebank field. In the second half of the year, the project focus will turn to rig readiness in support of the drilling rig mobilisation in Q1 2025. FPSO engineering and modification scopes continue to progress and are critical to delivering on the targeted first production date.

The Group remains committed to developing its pre-FID projects and is progressing live farm-down processes for its Cambo and Fotla interests. In the second half of the year, the Group will seek to complete development concept selection for Fotla, to support a final investment decision for the brownfield tie-back opportunity in the near-term, with FID subject to fiscal conditions.

BOOST: Successful delivery of Captain EOR Phase II project

In H1 2024, the Group achieved a major milestone at its flagship Captain field, successfully completing its EOR Phase II project within budget and on schedule. The project seeks to build on the success of its platform- based EOR Phase I project expanding to the subsea area of the field with first polymer injection in the subsea wells achieved in May 2024, ahead of schedule.

Captain EOR phase II aims to significantly BOOST production at the field, doubling net production as it reaches peak production in 2026, making a material contribution to the Groups medium-term production growth. The pioneering polymer technology enhances reservoir sweep efficiency by injecting a water-soluble polymer into the reservoir to sweep previously bypassed and stranded oil, directing it toward adjacent production wells. By accelerating and maximising field life recovery, polymer technology provides significant decarbonisation benefits, with the potential to reduce carbon intensity by up to an estimated 40%.

High levels of activity at the Captain field continued throughout H1, with turnaround scopes executed in May and rig recertification activity ongoing in support of the topside drilling campaign scheduled for Q3. The campaign, that extends over a two-year duration, is targeting three new production wells, an injector well and the workover of two wells.

At the Groups operated Erskine field, a well workover was completed in July by the Valaris 213 jack-up drilling rig, successfully reinstating the fifth production well at the field returning the asset to full production capability. Following scheduled turnaround activity in August and remediation of compressor issues at the host Lomond field, the Erskine field is expected to return to full production in H2.

H1 operational performance

Our continued focus on personal and process safety, following a rise in recordable events in 2023, has resulted in a strong safety performance in the first half of the year. The Group recorded zero Tier 1 and Tier 2 process safety events or high-potential incidents and its serious incident and fatality rate remained at zero during the period.

Production averaged 53.0 kboe/d in the first half of 2024, split 58.7 kboe/d in Q1 and 47.4 kboe/d in Q2 (H1 2023: 75.8 kboe/d). Production in the period reflects the impact of operational issues experienced across our non-operated joint ventures and infrastructure together with planned shutdowns across the Group’s operated portfolio. Production in the six-month period was split 69% oil and 31% gas.

The Group’s operated assets accounted for 49% of total H1 2024 production (H1 2023: 54%) with production efficiency across the Group’s operated portfolio recorded of 83% (excluding turnaround activity and downtime associated with non-operated infrastructure). Operated asset production efficiency has been impacted in the first half of the year by extended shut down periods at the Captain field and GSA area, the loss of water injection support at Alba that was rectified in Q2 and ongoing compressor issues at Erskine’s host facility (Lomond) that are expected to be resolved in early H2, supporting a return to full production of our operated asset base.

Across our NOJV portfolio, production was impacted by a number of previously reported operational issues including the delayed start-up and curtailed production of the Pierce field (which has now returned to full production), productivity issues at the Jade J13 well (currently being remediated) and ongoing operational issues at Schiehallion. Production from the Schiehallion field has been restricted as a result of operational issues on the Glen Lyon FPSO, with the operator working on a solution to address the issue to deliver an expected return to full capacity in late Q3.

With all operated assets back to full production and the majority of non-operated joint venture and infrastructure issues in H1 resolved, the Group is expecting production rates of between 55-61 kboe/d in the second half of the year on a standalone basis.

Operating costs, net of tanker costs and tariff income, reduced to $263.3 million (H1 2023: $272.1 million), reflecting the Group’s stringent focus on cost control in an inflationary environment, however, due to lower production volumes in the period and the fixed cost nature of its operating expenditure, represented an increase to net unit opex cost to $27.3/boe (H1 2023: $19.8/boe).

The Group expects to materially reduce the average operating cost per barrel in the short to medium-term through transitioning its portfolio to earlier life assets with lower operating costs, such as Rosebank, together with the addition of Eni UK’s low operating cost assets following completion of the Business Combination and the retirement of late-life high-opex assets.

Total net producing asset capital expenditure (excluding decommissioning) in H1 2024 of $178 million (H1 2023: $188 million) reflects material capital spend at Captain relating to the completion of the Captain EOR Phase II project and rig recertification scopes in support of the upcoming topside drilling campaign, representing over 50% of producing asset capital expenditure in the period. Net capex of $90 million in support of the Rosebank development reflects continued high level of activity in the ongoing modification of the FPSO and subsea campaign, remaining in line with management expectations.

Decarbonisation focus

Ithaca Energy has made continued strides in the first half of the year towards delivering against its emissions reduction plan by pursuing operational optimisation projects that support the Groups short-term emissions reduction goals. Key decarbonisation initiatives, such as reinstating the second export gas compressor, power water pumps upgrades and flare gas recovery are progressing as planned at Captain with a flotel identified to enable work to progress in the second half of the year.

As the Group continues its decarbonisation journey to achieve its ambition of a 50% reduction in Scope 1 and 2 CO2e emissions by 2030 (on a net equity basis), the focus remains on major projects like the potential electrification of our flagship Captain field. With over 70% of Captains GHG emissions originating from power generation, partial electrification could significantly reduce emissions intensity making the Captain electrification project a meaningful step in helping Ithaca Energy meet its 2030 emissions reduction target.

The Group has successfully completed its FEED study, confirming the technical feasibility of the Captain electrification project and a Final Investment Decision will be taken once the financial and commercial viability of the project has been established given the current political and fiscal environment. We are actively seeking assurances from the UK Government regarding the protection of the decarbonisation allowance for sanctioned projects, to enable an investment decision that would deliver substantial decarbonisation benefits in line with the North Sea Transition Deal.

For the first six months of 2024, the GHG emissions intensity (Scope 1 and 2), from our operated assets was 33.9 kgCO2e/boe.


Robust cash flow generation and increased liquidity

During H1 2024, our diversified, high-quality asset base generated net cash flow from operating activities of

$559.8 million (H1 2023: $691.0 million). This robust cash generation in the first half of the year supported the continued reduction in net debt, with the Group reporting adjusted net debt of $506.0 million (H1 2023:

$698.7 million), representing an adjusted net debt to adjusted EBITDAX ratio of 0.40x at 30 June 2024 (H1 2023: 0.35x).

The Group successfully completed the semi-annual redetermination of its Reserves Based Lending facility (RBL) at the end of June securing borrowing base availability of $659 million (31 December 2023: $725 million), excluding RBL facilities utilised for letters of credits.

The Group continues to have sufficient available capital to support our capital allocation policy with a 30% growth in its liquidity position at 30 June 2024 to $1,028.0 million (H1 2023: $791.3 million), reflecting the reduction in adjusted net debt and availability of a capex carry facility. Ithaca Energy continues to monitor market conditions and evaluate potential refinancing options to optimise its capital structure and address upcoming debt maturities via the public debt capital markets.

Net income recorded in H1 2024 of $105.7 million (H1 2023: $159.6 million), was impacted negatively by post-tax decommissioning liability related impairment charges of $19.0 million (H1 2023: $93.6 million of post-tax impairment charges principally related to GSA) and positively by post-tax reduction in contingent payment liabilities related to updated field development likelihoods of $27.4 million.

As we move into the second half of the year, we continue to take a proactive and disciplined approach to hedging, recognising the importance of balancing upside exposure to commodity prices while managing downside protection of our cash flows in line with the PROTECT pillar of our capital allocation policy. The Group has taken a progressive approach to its hedging policy in H1 with an evolution of the policy to include 25% hedge availability to wide zero cost collars to drive access to additional upside value potential. The Group has continued to build material hedge positions in the first six months of the year with 10.8 million barrels of oil equivalent (mmboe) hedged from H2 2024 into 2026 (58% oil) at an average price floor of $78/bbl for oil and 96p/therm for gas. Beyond the period end, further material hedges have been placed with 16.8 mmboe hedged at 19 August 2024 at an average swap price of $81/bbl for oil and 107p/therm for gas and an average collar price of $75/bbl for oil and 97p/therm for gas.

The importance of the Groups robust hedging policy has again been highlighted in the first half of the year with hedging gains recorded of $98 million in the period (H1 2023: $172 million).

In line with our capital allocation policy, we paid the third tranche of our 2023 dividend of $134 million in April 2024, delivering on the Groups 2023 dividend target of $400 million at IPO. The Group today declares the first interim 2024 dividend of $100 million payable in September 2024. Ithaca Energy remains committed to its declared dividend policy in 2024 and 2025 of 30% post-tax CFFO with an ambition for special dividends to increase total shareholder distributions to up to $500 million per annum5.

Energy Profits Levy

The UK oil and gas industry has continued to face substantial headwinds in the first half of 2024 with the UK Government signaling further fiscal changes for the sector. The new Chancellor’s fiscal statement and policy paper, delivered on 29 July, set out the Government’s intention, in line with the Party’s election manifesto, to raise the Energy Profits Levy rate, taking the headline tax rate for the sector to 78%, its intentions to remove the Energy Profits Levy’s investment allowance and further review Energy Profits Levy capital allowances, while extending the levy a further year to 31 March 2030. These changes are expected to become effective 1 November 2024.

The sector has now entered into a period of consultation with His Majesty’s Treasury in relation to the Energy Profits Levy capital relief framework, ahead of the Chancellor’s Autumn Statement. Ithaca Energy continues to actively and constructively engage with the UK Government, making representations as part of this formal process, to highlight the ongoing impact of the Levy to investment and the long-term damage further changes to the fiscal regime make to the achievability of the UK’s energy security and decarbonisation objectives.


Notes:

1 Non-GAAP measure as set out on pages 46 to 48.

2 2024 pro forma production – 2024 production guidance from Ithaca Energy, NSAI Ithaca Energy CPR in relation to Ithaca Energy and NSAI Eni CPR in relation to the Eni UK Group, each as at 30 June 2024.

3 WoodMackenzie as at 26 March 2024, NSAI Ithaca Energy CPR in relation to Ithaca Energy and NSAI Eni CPR in relation to the Eni UK Group, each as at 30 June 2024.

4 Based on total pre-tax cash flow from operations from 2P reserves calculated based on the NSAI Ithaca Energy CPR and NSAI Eni CPR, each as at 30 June. Oil and gas prices calculated based upon the price parameters outlined in the NSAI Ithaca Energy CPR and NSAI Eni CPR, subject to the price adjustments set out therein.

5 All dividends are subject to operational performance and commodity prices as well as Combined Group refinancing and availability of distributable profits.

Enquiries

Ithaca Energy

Kathryn Reid – Head of Investor Relations, Corporate Affairs & Communications

kathryn.reid@ithacaenergy.com

FTI Consulting (PR Advisers to Ithaca Energy)

+44 (0)203 727 1000

Ben Brewerton / Nick Hennis

ithaca@fticonsulting.com

IMPORTANT NOTICE

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR FORM ANY PART OF AN OFFER TO SELL OR ISSUE, OR A SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE, ANY SECURITIES IN ANY JURISDICTION.

The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, in or into the United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States.


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 two transformational acquisitions in recent years. Today, Ithaca Energy is one of the largest independent oil and gas companies in the United Kingdom Continental Shelf (the “UKCS”), ranking second by resources.

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.

-ENDS-