Energean Announce sale of Egypt, Italy and Croatia portfolio for up to $945m
Energean plc announced that it has entered into a binding agreement for the sale of its portfolio in Egypt, Italy and Croatia to an entity controlled by
Carlyle International Energy Partners (“Carlyle”) for an enterprise value (“EV”) of up to $945 million, of which $820 million is firm (the “Transaction”). Completion is expected by year-end 2024, subject to customary regulatory and antitrust approvals.
Compelling transaction metrics:
An EV of up to $945 million1 , representing more than a 3x return since the portfolio was acquired for $284 million in 20202
A firm EV/2P multiple of $5.4/boe, a >4.5x increase versus c. $1.2/boe at the time of acquisition3
Expected to be immediately accretive to free cash flow.
Energean expects sufficient cash proceeds at closing in order to repay in full the $450 million PLC
Corporate Bond and facilitate a special dividend of up to $200 million.
At least $7.5 million per annum G&A savings identified following the Transaction.
- Strategic rationale highlights: This sale enables Energean to rationalise the portfolio and focus on its gas-weighted, gasdevelopment strategy, underpinned by the Karish Field in Israel and recent farm-in to the Anchois field in Morocco. This strategy aims to maximise asset monetisation (through a develop and operate model), free cash flow generation and returns to shareholders.
- The Transaction also optimises the portfolio by divesting later life assets, removing over 60% of the Group’s decommissioning liabilities, and improving free cashflow generation in the short to medium-term
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