TOP NEWS: Energean sells up in Egypt, Italy and Croatia to Carlyle

(Alliance News) - Energean PLC on Thursday said it will sell its oil and gas portfolio in Egypt, ...

Alliance News 20 June, 2024 | 9:13AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Energean PLC on Thursday said it will sell its oil and gas portfolio in Egypt, Italy and Croatia in order to focus on its gas fields in Israel and Morocco.

Energean is a London-based energy production, development, and exploration company and possesses a portfolio of assets across the Mediterranean and UK North Sea.

The company said the deal with Carlyle International Energy Partners, part of private equity firm Carlyle Group, is worth up to USD945 million. Of this, USD820 million is firm.

The proceeds will be enough to repay a USD450 million corporate bond and allow for the payment USD200 million of a special dividend to Energean shareholders, the company said.

"This sale enables Energean to rationalise the portfolio and focus on its gas-weighted, gas-development 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," Energean explained.

"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."

Energean Chief Executive Officer Mathios Rigas said: "Looking ahead, this transaction unlocks management capacity and financial flexibility to drive future growth. Our focus will now be to create enhanced value from our Israel assets, and evaluate new opportunities that fit Energean's key business drivers: paying a reliable dividend, deleveraging, growth, and our commitment to net zero.

"Carlyle is the right custodian of the asset base and will create an excellent home for our colleagues. We wish them every success and look forward to watching their progress. I want to thank all of our colleagues based in Egypt, Italy and Croatia for their hard work and dedication over the years."

The deal is expected to be completed by the end of 2024.

Energean shares were up 3.5% to 1,068.05 pence each on Thursday morning in London.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Energean PLC 1,074.00 GBX 2.78 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures