Energean (LON:ENOG) executives used the company’s full-year 2025 results call to address the impact of the escalating regional conflict in the Middle East, including a government-directed suspension of production in Israel, while also outlining full-year operating and financial results and progress on its growth portfolio.
Israel shutdown and restart readiness
CEO Mathios Rigas opened with a focus on safety and the operating backdrop, saying the company was instructed by Israel’s Ministry of Energy and Infrastructure to suspend production and activities on the Energean Power FPSO “until further notice.” Rigas said Energean acted immediately and supported the decision, emphasizing that “safety remains and will always remain the first priority.”
In the Q&A, Rigas said his expectation for a restart is tied to Israeli security confidence in protecting a “very strategic asset,” while also pointing to domestic demand. He said, “The region needs so much gas,” and that the message Energean is getting is that “everybody needs the gas,” so the company expects operations to resume when authorities consider it safe.
2025 production and financial results
Despite what Rigas described as the challenges of 2025, Energean reported group production of 154,000 barrels per day for the year, which he said was the upper end of guidance. CFO Panos (who presented the financial and operating details) described 2025 as a “mixed year,” with a challenging first half and then a record second half following a Karish field shut-in for a few weeks until June. He said the company recorded average production of more than 170,000 barrels per day in the second half, with August reaching a record 180,000 barrels per day.
Total annual production was 51.5 million barrels of oil equivalent, slightly higher than 2024, according to the CFO, with higher gas volumes offsetting lower oil volumes that were affected by the Rospo field shutdown in Italy. Revenue was “flat compared to 2024,” coming in just below $1.8 billion. The CFO said higher gas production and achieved prices, along with insurance proceeds linked to the Rospo oil incident, offset lower oil production and prices versus the prior year.
Key profitability and cost metrics discussed on the call included:
- Adjusted EBITDAX: $1.117 billion, slightly below the 2024 figure, according to the CFO.
- EBITDAX referenced by the CEO: Rigas cited EBITDAX of $1.1 billion and operating cash flow at “similar levels.”
- Net income: a $250 million loss, which management attributed primarily to a Cassiopea gas field impairment, annual depreciation on the field, and an adjustment of the deferred tax asset. The CFO said these items had an impact of about $550 million.
- Capex: development capex was 20% lower than 2024, though the CFO characterized it as “still pretty high,” reflecting progress on the Katlan project.
- OpEx: $60 million, at the low end of guidance, which the CFO said reflected “better performance of decommissioning costs” and continued deferral of decommissioning.
On commercial structure, the CFO highlighted that long-term gas contracts in Israel and Egypt include a “hard floor price mechanism” to protect base revenues when prices are low. He also said about 20% of total production is priced off Brent and PSV, representing 30% of revenue in 2025 (down from 40% in 2024). If commodity prices remain around the levels assumed by the company for 2026 (the CFO referenced profiles around $80–$85), he said open-market barrels could represent more than 50% of total revenue.
Liquidity, leverage, and guidance approach during the disruption
Management emphasized balance sheet flexibility. Rigas said Energean’s monthly running costs in Israel are about $10 million and that the company has “more than $300 million of liquidity.” He added that debt reserve accounts are filled and said the finance team refinanced facilities so there are no near-term maturities.
The CFO said Energean has a weighted average loan maturity of around six years and a weighted average cost of debt of 7%, with “no debt maturity until 2028.” Net debt ended the year at $3.25 billion, about $50 million higher than guided, which he said was driven by slower-than-expected recoverability of EGPC receivables. He added that progress since January has been “very good” and that those receivables are declining. He also noted an approximately $40 million impact related to dollar weakness on euro- and shekel-denominated lines and notes, describing that effect as unrealized because maturities have not occurred.
Given the Israel shutdown, the CFO said the company would need to update guidance for Israel-linked figures, but indicated other guidance lines remain broadly in line with what was provided earlier. He offered a sensitivity measure for investors: for each month of lost production, he suggested assuming a roughly 9,000 to 10,000 barrels per day reduction versus initial guidance. He said the OpEx line should be considered similar for the time being because the facilities are being kept ready to restart within 24 to 48 hours, and that Katlan capex remained on track at the time of the call.
Rigas also addressed commercial questions tied to the Israel disruption, stating that force majeure applies, that Energean has no take-or-pay provisions, and that buyers are sourcing alternatives during the shutdown, with sales expected to resume upon restart “without any financial burden.”
Projects and growth: Katlan, Egypt, Greece, and Angola
Rigas said Energean remains confident the Katlan project will be on stream in the first half of 2027, noting that key activities are currently occurring outside Israel. However, he and the CFO both flagged that May is a critical month because drilling rigs and construction vessels are scheduled to operate in Israel. In response to an analyst question, Rigas said if the conflict continues beyond May, Energean could delay work, which could affect the schedule, and that the company would update the market as needed.
Beyond Israel, Rigas said the company is working with the Egyptian government to complete a merger of three concessions, which he said would unlock value and reduce administrative costs while enabling more investment. He also highlighted potential under the Abu Qir platform and said this could represent “the fastest gas to market” for Egypt.
In Greece, Rigas said Energean completed in March a farm-out to Exxon in Block 2. He said an exploration well is planned for early 2027, with Exxon holding a 60% working interest while Energean remains operator. Rigas said the well is targeting close to 10 TCF of gas and that Energean has already received past costs, describing the well as “carried.”
Energean also detailed its move into West Africa through an agreement to acquire an operated position in offshore Angola’s Block 14 from Chevron. Rigas described the deal as creating a “third production leg” for the company. The CFO said the transaction includes $260 million in base consideration with a lock-box date of 1 January 2026, subject to regulatory approvals and waiver of preemption rights, with a target closing within 2026. Funding is expected to come from a combination of a non-recourse reserve-based loan and group liquidity.
The CFO said the asset being acquired includes roughly 13,000 barrels per day of production net to the interest being purchased, with 2025 EBITDAX of $120 million at an average oil price just above $60 and operating cash flow of around $90 million. He outlined a potential five-well initial development at PKBP, targeting an additional 6,000 barrels per day, and discussed broader resource figures in the area, including 2P reserves, 2C resources, and gross STOIIP referenced during his remarks.
About Energean (LON:ENOG)
Energean plc engages in the exploration, development, and production of oil and gas. It operates through four segments: Europe, Israel, Egypt, and New Ventures. The company holds interests in the Eastern Mediterranean. Its flagship project is the Karish project located in Israel. It also provides financing services; and holds a gas transportation license. The company was formerly known as Energean Oil & Gas plc and changed its name to Energean plc in May 2020. Energean plc was founded in 2007 and is based in London, the United Kingdom.
