Ithaca Energy (ITH) Q1 2025 TU earnings summary

Executive summary

• Achieved record Q1 2025 production of 127,400 BOE/d, more than doubling year-over-year, driven by portfolio expansion, operational efficiency, and business combination.

• Adjusted EBITDA/EBITDAX reached $653 million, reflecting enhanced scale and cost control.

• Strategic acquisitions, including JAPEX UK and increased stakes in Cygnus and Seagull, are expected to add 17,000–18,000 BOE/d in 2025 and reinforce UKCS consolidation.

• Zero safety incidents and significant HSSE improvements, with over 75% of days in Q1 classified as 'perfect days' and several assets achieving perfect quarters.

• Reaffirmed commitment to shareholder returns, with a $500 million dividend target for 2025 and a third interim dividend paid.

Financial highlights

• Q1 2025 production averaged 127,400 BOE/d (59% oil/liquids, 41% gas), supporting full-year guidance.

• Adjusted EBITDA/EBITDAX reached $653.2 million, with OPEX at $16.5/BOE, reflecting cost reductions and portfolio benefits.

• Cash flow from operations before working capital was $625 million; after working capital, $435 million, impacted by underlift build.

• Reported a net loss of $258.7 million due to a one-off non-cash deferred tax charge of $327 million from EPL extension; adjusted net income was $69 million.

• Liquidity exceeded $1.1 billion, with pro forma leverage at 0.38x and net debt at $792 million.

Outlook and guidance

• 2025 production guidance upgraded to 109,000–119,000 BOE/d, with an expected exit rate of ~135,000 BOE/d post-acquisitions.

• OPEX guidance increased by $10 million, and producing asset CapEx by $20 million, reflecting the Cygnus acquisition.

• Dividend target reaffirmed at $500 million for 2025, representing 30% of post-tax cash from operations.

• Strong hedge book for 2025 and beyond, with oil floor above $70/bbl and gas floors at 90–99p/therm, providing downside protection.

• Net producing asset capital cost guidance: $580–640 million; Rosebank CapEx: $190–230 million.