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Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) (“Ithaca” or the “Company”) is pleased to announce its financial results for the twelve months ended 31 December 2019. Alongside the financial results, which include the contribution of the Chevron North Sea Limited (“CNSL”) acquisition from completion of the transaction in November 2019, pro-forma 2019 operational and financial data is also provided that reflects the contribution of the CNSL acquisition from the transaction effective date of 1 January 2019 (“Effective Date”).
Pro-forma1 2019 production of ~75,000 thousand barrels of oil equivalent per day (boepd), 66% liquids, and unit operating costs of $17/boe, resulted in pro-forma EBITDAX of approximately $960 million
Clear actions taken to manage the impact of COVID-19 and collapse in oil prices in order to minimise risks to the health of personnel and proactively preserve the liquidity and cash flow resilience of the business – offshore manning reduced to levels required to safely maintain production and execute any critical maintenance work scopes
Production anticipated to be around 90% of initial guidance of 70,000 to 75,000 boepd (approximately 65% liquids) – reflecting minimum offshore manning
Aggregate 2020 capital and operating expenditures reduced by approximately $200 million compared to initial guidance – cutting capital expenditure for the year to approximately $125 million and unit operating expenditure to approximately $15/boe
Net debt at 31 December 2019 was $1.55 billion, implying a net debt to EBIDAX leverage ratio of 1.6x – net debt at the end of the first quarter of 2020 reduced to approximately $1.4 billion
32 million barrels of oil equivalent (67% oil) hedged from the start of January 2020 into 2022 at an average price floor of $62/bbl oil and 51p/therm gas (as at 31 March 2020 0
Accelerating $150 million of cashflow into April 2020 by resetting majority of 2021/2022 oil hedges while maintaining underlying hedge volumes with swaps at the relevant forward curve prices
Hedging position means over $450 million of free cash flow generation forecast in 2020 (excluding cash generated through execution of hedging resets), even if Brent drops to $1/bbl for the balance of the year
Scheduled April 2020 Reserves Based Lending facility redetermination progressing to plan – forecast to be concluded in early May 2020
The audited consolidated 2019 financial statements of the Company and the related Management Discussion and Analysis are available on the Company’s website (www.ithacaenergy.com).
2019 Financial Results Investor Call
A conference call and webcast will be held today at 12.00 BST (07.00 EDT), with a playback facility being made available on the Company’s website (www.ithacenergy.com) later in the day. Listen to the call live via the Company’s website or register to access the conference call dial in details at https://secure.emincote.com/client/ithaca/ithaca001/vip_connect. A short presentation to accompany the results will be available on the Company’s website prior to the call.