Ithaca Energy (ITH) H2 2024 earnings summary

Executive summary

• Achieved record operational and financial performance in 2024, driven by a transformational business combination with Eni UK and strong execution on strategic objectives.

• Proforma production exceeded 105,000 barrels per day in 2024, with Q4 peak at 138,000 barrels per day and Q1 2025 trending above 120,000 barrels per day.

• Delivered $1.4 billion Adjusted EBITDAX for 2024 and distributed $500 million in dividends, meeting shareholder targets.

• Announced and integrated significant M&A, including the JAPEX UK acquisition, reinforcing position as a consolidator in the UKCS.

• Rosebank project progressing on schedule, with judicial review outcome supporting continuation and first production targeted for end-2026/early-2027.

Financial highlights

• Adjusted EBITDAX reached $1.4 billion for 2024, with Q4 at $646 million.

• Pro forma 2024 production of 105.5 kboe/d including Eni UK; Q4 2024 average production reached 116 kboe/d, with peak rates of 138 kboe/d.

• Net cash flow from operations totaled $900 million; available liquidity exceeded $1 billion post-refinancing.

• Q4 cost per barrel was $14, with full-year average at $22; EBITDAX per barrel in the mid-$50s.

• Refinanced $625 million bonds at 9% with $750 million bonds at 8.125%; RBL expanded to $1.5 billion.

Outlook and guidance

• 2025 production guidance set at 105,000–115,000 barrels per day, with a midpoint of 110,000.

• OpEx guidance for 2025 is $770–$850 million, targeting $20 per barrel.

• Capital expenditure guidance for 2025 is $560–$620 million, with Rosebank CapEx at $190–$230 million.

• Dividend target for 2025 remains $500 million, maintaining a 15%–30% post-tax cash from operations policy.

• Medium-term outlook expects production above 100,000 barrels per day and low $20 per barrel OpEx for the next five years.