Ithaca Energy (ITH) Q3 2024 TU earnings summary

Executive summary

• Completed transformational business combination with Eni's UK upstream assets, increasing operational scale, diversification, and creating the largest resource base in the UKCS.

• Achieved Q4 peak production above 120,000 BOE/day, with Q3 combined production at 91,000 BOE/day post-combination, supporting full-year guidance.

• Completed $2.25 billion refinancing, extending debt maturities to 2029 and improving credit ratings.

• Announced $200 million special dividend, bringing 2024 declared dividends to $300 million, reaffirming $500 million full-year target.

• Integration of acquired assets progressing, with full integration expected within 9–12 months and synergy realization underway.

Financial highlights

• Q3 standalone production averaged 52,500 BOE/day, with pro forma combined production at 91,000 BOE/day; strong cash from operations at $793 million YTD.

• Adjusted EBITDAX for YTD Q3 2024 was $759 million; statutory net income $135 million; adjusted net debt $543 million; leverage ratio 0.49x.

• Hedge gains contributed $127 million YTD, adding $9/BOE in value.

• Operating costs remained flat year-over-year at $28.9/BOE despite FX and inflationary pressures.

• Available liquidity at quarter end stood at $991 million.

Outlook and guidance

• 2024 combined production guidance reaffirmed at 76–81 kboe/d, with pro forma estimate at 100,000–110,000 BOE/day.

• Net operating cost guidance: $650–730 million; producing asset CapEx: $410–480 million; Rosebank CapEx: $170–195 million.

• Dividend target of $500 million for 2024 and 2025 remains unchanged, with 30% post-tax CFFO payout.

• Cash tax payments expected slightly below previous guidance due to deal-related adjustments.