Ithaca Energy Releases Financial Results for the 12 months ended 31 December 2021

Source Press Release
Company Ithaca Energy Inc., Repsol, Sinopec 
Tags Pipelines/ tankers/ distribution, Hedging, Production/Development, Exploration, Upstream Activities, Capital Spending, Financial & Operating Data, Strategy - Corporate
Date March 31, 2022

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) today announced its financial results for the twelve months ended 31 December 2021. The audited consolidated 2021 financial statements of the Company and related Management Discussion and Analysis are available on the Company’s website, https://www.ithacaenergy.com.

Financial Highlights

  • Production of 56,500 boepd, 65% liquids for the year. Fourth quarter production improved following the Forties Pipeline System shutdown in Q2 and other planned maintenance activities in Q3
  • Unit operating costs of $18/boe
  • EBITDAX of $1,036 million including realised gains of $115 million on the commodity hedging instruments that were reset in 2020
  • $275 million was repaid against the Reserves Based Lending facility during Q4 taking net debt down to $930 million
  • 22 million boe (73% oil) hedged from Q1 2022 into 2023 at an average price floor of $61/bbl oil and 92p/therm gas

Operational Highlights

  • Development consent for the Abigail field was received from the North Sea Transition Authority (formerly the Oil and Gas Authority) in January 2022, first oil is still expected to be achieved in Q3 2022

Corporate Highlights

  • The agreement to acquire 13.3% additional equity interest in the Alba field from Mitsui E&P UK Limited completed on 30 November. This takes Ithaca’s interest in the Alba field to 36.7%
  • As reported in Q3, on 2 November an agreement was signed to acquire 100% of the share capital of Marubeni Oil & Gas UK Limited for $140 million base consideration, $70 million (adjusted for interim period cashflows) payable on completion and $70 million of which, is deferred to 2025. There are further contingent payments in the future should certain milestones be achieved related to future development activities. The sale and purchase agreement completed on 4 February 2022 and gives Ithaca non operated working interests in the Repsol Sinopec operated MonArb assets and  CNR operated Columba assets which will contribute approx. 7 kboe/d to production in 2022
  • On 28 February a further agreement was signed to acquire 100% of the share capital of Summit Exploration and Production Limited. The agreement has an economic date of 1 January 2021 and is subject to normal completion activities including consent from the North Sea Transition Authority
Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd