Capricorn Energy (CNE) H2 2024 earnings summary

Executive summary

• Major transformation over two years focused on operational excellence, capital discipline, and conservative financing, with a platform for growth in Egypt and the UK North Sea.

• Completed right-sizing, exited non-core activities, returned over $600 million to shareholders, and rebuilt corporate culture.

• Priorities include diversifying and expanding operations, with consistent shareholder returns as a core strategy.

• Disappointment in not confirming a dividend despite a $50 million contingent payment due to unresolved receivables and tax disputes.

Financial highlights

• FY 2024 Egypt operations generated $147 million in production revenue and $105 million in gross profit, with opex at $4.8/boe.

• Average working interest production: 23,763 boepd (44% liquids); net entitlement sales: 9,737 boepd.

• Year-end net cash improved to $23 million.

• EGPC receivables at year-end: $184 million, with $168 million due for payment.

• OPEX reached a record low of $4.80/BOE, but this is not expected to be sustained due to inflation and currency devaluation.

Outlook and guidance

• 2025 production guidance: 17,000–21,000 boepd, with 39% forecast liquids and up to six exploration wells.

• Operating costs expected at $5–$7/boe; total capex: $85–$95 million.

• Production in Q4 2025 will be impacted by a three-week maintenance shutdown affecting 60% of the base.

• New concession agreement in Egypt expected to be ratified in 2025, providing a runway to arrest decline and recover production.

• Development drilling to prioritize liquids; activity contingent on merged concession ratification.