Energean plc: history, ownership, mission, how it works & makes money

A Brief History of Energean plc

Energean plc is an independent oil and gas company primarily focused on the Eastern Mediterranean region, particularly in Israel and Greece. Founded in 2007, Energean went public on the London Stock Exchange in 2018. The company has established itself as a significant player in the energy sector, particularly through its acquisition and development of gas assets.

In 2019, Energean completed its acquisition of the Karish gas field, located offshore Israel. The field is notable for its estimated 1.2 trillion cubic feet (Tcf) of gas reserves. The total capital expenditure for the development of the Karish and Tanin fields is estimated at around $1.6 billion, with production expected to commence in 2022.

By mid-2022, Energean achieved a milestone with the commencement of gas flows from the Karish gas field, leading to a production rate of approximately 6 billion cubic feet per day. This development has significantly enhanced the company’s revenue streams and positions it as a key supplier of natural gas to Israel.

In 2022, Energean reported an Adjusted EBITDA of $250 million, signaling a robust financial performance. The company’s net debt was approximately $1.2 billion, reflecting its ongoing investments in exploration and development projects.

Moreover, Energean is actively involved in the decarbonization efforts and aims to achieve net-zero emissions by 2050. In 2023, it announced plans to invest in renewable energy projects alongside its traditional oil and gas operations, indicating a strategic pivot to include sustainable energy solutions.

With a market capitalization exceeding $1 billion as of late 2023 and a stock price growth of over 150% since its IPO, Energean plc continues to grow its footprint in the energy market, leveraging its strategic assets and commitment to sustainable practices.

A Who Owns Energean plc

Energean plc is a prominent independent gas and oil company focused on the Eastern Mediterranean region. As of the latest information available, the ownership structure of Energean plc is predominantly characterized by institutional investors, retail investors, and significant stakeholders.

The largest shareholders are typically institutional investment firms that manage substantial asset bases. Here are the key shareholders as of the most recent reporting period:

As indicated in the table, about 55.58% of Energean's shares are held by retail investors, underscoring a significant level of public interest and investment. The institutional ownership accounts for roughly 43.37%, which is substantial relative to many publicly traded companies and reflects confidence in Energean's growth prospects and operational strategy.

The company has shown a robust growth trajectory, particularly with its operations focusing on gas production in the Eastern Mediterranean. Energean's recent financial performance reports indicate that for the year 2022, the company generated revenues of approximately $340 million, marking an increase from $120 million in 2021.

The stock price of Energean plc has also demonstrated volatility, with a range from approximately $8 to $14 over the past year. As of the latest close, the price stands at approximately $12, reflecting a market capitalization nearing $1.7 billion.

Looking at geographical investments, Energean is heavily involved in the Israeli and Greek gas markets. The company announced a major development project, the Karish Field, which is expected to produce around 6.5 billion cubic meters of gas annually once operational.

Overall, the ownership structure of Energean plc reveals a mix of institutional confidence and retail participation, providing a diverse base of stakeholders who are vested in the company's future success in the competitive energy market.

Energean plc Mission Statement

Energean plc emphasizes its commitment to delivering sustainable energy solutions while prioritizing safety, environmental responsibility, and innovation. The company's mission is encapsulated in its goal to become a leading independent gas producer in the Eastern Mediterranean region.

The company aims to leverage its experience and resources to optimize the production of natural gas, contributing to the energy transition while supporting local economies and stakeholders. Energean focuses on maintaining high operational standards and achieving significant growth through its development projects.

As of Q3 2023, Energean's operational performance highlights its ongoing commitment. The company's key figures indicate an average production level of approximately 37,000 barrels of oil equivalent per day (boepd). This figure underscores Energean’s operational capabilities in delivering reliable energy supplies.

Moreover, Energean plc's recent financial metrics reflect its efforts to achieve sustainable growth. For the fiscal year 2022, the company reported revenues of approximately $493 million, a significant increase from $215 million in 2021. The strong revenue growth is attributed to increased production volumes and favorable market conditions.

Energean's mission statement is vital in guiding the company's operations, especially in the context of the energy transition. The company is positioned to expand its portfolio and pursue new projects, such as its significant asset in the Karish field, where production commenced in late 2022. This development is expected to further enhance its production capabilities and secure a strong market position.

Environmental sustainability is also a cornerstone of Energean’s mission. The company is committed to minimizing its carbon footprint. In its latest sustainability report, Energean outlined a target to reduce greenhouse gas emissions by 25% by 2025. This initiative aligns with the global energy industry's push towards greener practices.

Energean’s mission is clearly articulated through its strategic objectives, financial performance, and commitment to environmental sustainability. The company continuously strives for excellence in operational efficiency while engaging with stakeholders for mutual benefit, embodying its principle of being a responsible energy producer.

How Energean plc Works

Energean plc is an independent oil and gas company, primarily engaged in the exploration, development, and production of hydrocarbons. The company is focused on the Mediterranean region and holds a diversified portfolio of assets across various geographical areas. As of September 2023, Energean operates significant gas developments in Israel and the Mediterranean basin.

Core Operations

Energean's operations are organized into three main segments: exploration, development, and production. These segments are critical for delivering on its strategy of generating sustainable cash flow while focusing on growth opportunities.

Exploration Activities

The exploration activities of Energean are aimed at discovering new hydrocarbon reserves. The company holds licenses in several key areas, including:

• Israel – Karish and Tanin fields
• Greece – The Ioannina and Aegean Sea offshore blocks
• Egypt – In the Eastern Mediterranean area

As of Q2 2023, Energean reported an increased gross contingent resource of approximately 1.2 billion barrels of oil equivalent (boe) across its exploration and appraisal portfolio.

Development Projects

Energean has heavily invested in the development of its key assets, particularly the Karish gas field. The Karish field is anticipated to play a pivotal role in the company's growth strategy and future revenues.

The field's estimated gas production is about 8 billion cubic meters (bcm) annually, contributing significantly to the Israeli energy market.

Production Overview

Production is central to Energean's operational strategy. The company's average production rates for the first half of 2023 reached approximately 38,000 barrels of oil equivalent per day (boepd). This marked a notable increase from the previous year, driven by enhanced production capabilities from the Karish field.

Financial Performance

In its latest earnings report for H1 2023, Energean reported the following financial highlights:

These figures illustrate a robust growth trajectory, primarily driven by increased production levels and favorable market conditions.

Market Position and Strategy

Energean's strategic positioning within the Mediterranean basin is of pivotal importance. The company aims to capitalize on the rising demand for natural gas, which has been influenced by global energy transitions and geopolitical factors.

Energean has set a target to achieve a production rate of approximately 200,000 boepd by 2025, further solidifying its market position in the region.

• Increased investment in natural gas infrastructure
• Shift towards renewable energy sources
• Geopolitical tensions influencing energy supply dynamics

As of September 2023, Energean's market capitalization was approximately $1.6 billion, reflecting its growth potential and investor interest.

Environmental and Regulatory Considerations

Energean is committed to sustainability and adheres to stringent environmental regulations across its operations. The company invests in technology and processes aimed at reducing carbon emissions and minimizing ecological impact.

The organization is actively pursuing initiatives to enhance its renewable energy portfolio, aligning with global trends toward decarbonization.

As part of its sustainability strategy, Energean has set a long-term goal to reduce absolute Scope 1 and 2 emissions by 30% by 2030 compared to levels reported in 2020.

How Energean plc Makes Money

Energean plc operates in the oil and gas sector, primarily focusing on the exploration, development, and production of hydrocarbons in the Eastern Mediterranean. The company generates revenue through various channels, with key projects and assets driving its financial performance.

As of Q3 2023, Energean reported a production level of approximately 50,000 barrels of oil equivalent per day (boe/d). This production primarily comes from its flagship Karish field, which commenced production in October 2022. The expected peak production from Karish is projected at around 8 billion cubic meters (bcm) of gas per year.

Energean's revenue model includes:

• Sale of crude oil
• Sale of natural gas
• Production sharing contracts
• Royalty income

In the financial year 2022, Energean achieved a revenue of approximately $1.4 billion, signifying an increase of 75% compared to 2021, driven largely by higher commodity prices and increased production volumes. The company reported an EBITDA of about $751 million, reflecting a margin of approximately 54%.

The geographical focus of Energean's operations enhances its revenue-generating capabilities. Key projects, including the Karish and the Olympus developments, are strategically located and benefit from favorable governmental agreements in Israel and Greece.

Furthermore, Energean has been proactive in signing long-term gas supply agreements, which ensure a stable revenue stream. In 2022, the company entered into a sales agreement with the Israeli Electricity Company, which guarantees sales of approximately 2.5 bcm of gas annually for a period of 18 years.

Additionally, Energean is focused on expanding its operations through acquisitions and partnerships. In 2023, the company announced the acquisition of the Exmar LPG's stake in the Eastern Mediterranean project, which enhances its potential gas output and contributes to its long-term growth strategy.

As of October 2023, Energean's market capitalization stands at approximately $2.5 billion, reflecting investor confidence stemming from the consistent revenue growth and operational advancements.

The commodity market plays a crucial role in Energean's profitability. The company benefits from high oil and gas prices. As of October 2023, Brent crude oil prices hovered around $92 per barrel, significantly impacting Energean's revenue positively.

In summary, Energean plc generates its revenue through a combination of production activities, strategic partnerships, and favorable long-term contracts, positioning itself as a key player in the oil and gas sector within the Eastern Mediterranean.