Ithaca Energy Share Discussion Threads

[7kiwi] 30/4/2020 22:08

Sorry. Technical issue.

[speedsgh] 29/4/2020 10:08

2019 Financial Results -

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) ("Ithaca" or the "Company") is pleased to announce its financial results for the twelve months ended 31 December 2019. Alongside the financial results, which include the contribution of the Chevron North Sea Limited ("CNSL") acquisition from completion of the transaction in November 2019, pro-forma 2019 operational and financial data is also provided that reflects the contribution of the CNSL acquisition from the transaction effective date of 1 January 2019 ("Effective Date").

Highlights

§ Pro-forma1 2019 production of ~75,000 thousand barrels of oil equivalent per day (boepd), 66% liquids, and unit operating costs of $17/boe, resulted in pro-forma EBITDAX of approximately $960 million

§ Clear actions taken to manage the impact of COVID-19 and collapse in oil prices in order to minimise risks to the health of personnel and proactively preserve the liquidity and cash flow resilience of the business - offshore manning reduced to levels required to safely maintain production and execute any critical maintenance work scopes

§ Production anticipated to be around 90% of initial guidance of 70,000 to 75,000 boepd (approximately 65% liquids) - reflecting minimum offshore manning

§ Aggregate 2020 capital and operating expenditures reduced by approximately $200 million compared to initial guidance - cutting capital expenditure for the year to approximately $125 million and unit operating expenditure to approximately $15/boe

§ Net debt at 31 December 2019 was $1.55 billion, implying a net debt to EBIDAX leverage ratio of 1.6x - net debt at the end of the first quarter of 2020 reduced to approximately $1.4 billion

§ 32 million barrels of oil equivalent (67% oil) hedged from the start of January 2020 into 2022 at an average price floor of $62/bbl oil and 51p/therm gas (as at 31 March 2020)

§ Accelerating $150 million of cashflow into April 2020 by resetting majority of 2021/2022 oil hedges while maintaining underlying hedge volumes with swaps at the relevant forward curve prices

§ Hedging position means over $450 million of free cash flow generation forecast in 2020 (excluding cash generated through execution of hedging resets), even if Brent drops to $1/bbl for the balance of the year

§ Scheduled April 2020 Reserves Based Lending facility redetermination progressing to plan - forecast to be concluded in early May 2020

The audited consolidated 2019 financial statements of the Company and the related Management Discussion and Analysis are available on the Company's website (www.ithacaenergy.com).

[speedsgh] 07/4/2020 09:17

Operations & Trading Update -

Highlights

§ Pro-forma1 2019 production of ~75,000 thousand barrels of oil equivalent per day (boepd), 66% liquids, and unit operating costs of $17/boe, resulted in pro-forma EBITDAX of approximately $960 million

§ Average first quarter 2020 production of ~75,000 boepd leading to strong cash flow generation of approximately $150 million

§ 2020 capital expenditure has been cut by 50% to approximately $120 million

§ 2020 operating expenditure has been cut and is forecast to reduce unit costs from $17/boe to approximately $15/boe

§ 32 MMboe (67% oil) hedged from the start of January 2020 into 2022 at an average price floor of $62/bbl oil and 51p/therm gas

§ Hedging position means over $450 million of free cash flow generation forecast in 2020, even if Brent drops to $1/bbl for the balance of the year

§ Net debt at 31 December 2019 was $1.55 billion, implying a net debt to EBIDAX leverage ratio of 1.6x - net debt at the end of the first quarter of 2020 is forecast to reduce to approximately $1.4 billion

§ Total proved and probable reserves ("2P") and resources ("2C") as at 31 December 2019 of 273 million barrels of oil equivalent2 ("MMboe"), implying a reserves and resources replacement ratio of 120% (an addition of 33 MMboe)

Les Thomas, Chief Executive Officer, commented:

"2019 was clearly a transformational year for the Company. With completion of the Chevron North Sea Limited acquisition, we have established Ithaca Energy as a major UK North Sea operator with an exciting future. The acquisition provided us with a high-quality, low cost set of assets and an enlarged platform from which to grow and unlock the full potential of the business ."

"With the abrupt emergence over recent weeks of a more challenging macroeconomic environment, it is clear that we need to accelerate our on-going efforts to further reduce the breakeven cost of our assets and our near-term investment programmes. This will allow us to proactively manage our financial profile in the face of a potentially "lower for longer" commodity price outlook. These objectives are core to the transformation programme that is already underway in the business following the acquisition, with the themes of process simplification, operational efficiency and value creation at the heart of the various work programmes."

"In the midst of the Covid-19 crisis, our staff and supply chain have adapted in very challenging circumstances to safely maintain operations, helping to keep the country powered and the lights on. We thank them for their exceptional commitment, flexibility and resilience."...

[speedsgh] 17/3/2020 09:36

Missed this announcement from 3/2/20...

2020 Operations Update -

FY19 final results are scheduled to be released on 31/3.

[speedsgh] 17/3/2020 09:34

Isabella Discovery -

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) ("Ithaca" or the "Company") is pleased to announce the "Isabella" exploration well in Block 30/12d in the UK Central North Sea has discovered hydrocarbons in the Upper Jurassic and Triassic sandstone reservoirs. This is an encouraging high-pressure high-temperature discovery in a location close to existing infrastructure. Further analysis of the well results will now be performed by the licence Operator, TOTAL E&P North Sea UK Limited, to determine future appraisal activity and recoverable resource estimates. The well is in the process of being plugged and abandoned.

Ithaca has a 10% working interest in licence P.1820, alongside partners TOTAL (30%), Neptune E&P UK Limited (50%) and Euroil Exploration Limited (10%). The Company has a cost carried interest in the well as a result of prior farm-out agreements with TOTAL and Euroil.

[speedsgh] 28/11/2019 09:06

Ithaca are starting to communicate more regularly again, presumably in anticipation of a possible IPO sometime in 2020...

Operations & Trading Update -

[farmscan] 12/11/2019 11:19

Ha! Indeed, Well I never. Do I? Don't I?

[speedsgh] 12/11/2019 08:57

Well I never...

Ithaca Energy plans London listing -

The chief executive of Ithaca Energy has confirmed that it is planning to float in London after completing a $2 billion deal to quadruple its output.

Ithaca has become one of the largest independent oil producers in the North Sea after acquiring ten fields and 450 additional staff in a deal with Chevron, the American major. It will be pumping out about 80,000 barrels of oil per day and its proven reserves — a measure of how much its assets have left in them — will increase by 150 per cent to 225 million barrels.

However, Les Thomas, chief executive, said yesterday that there was “no rush” for the company to go ahead with an initial public offering. Ithaca’s deal with Chevron was announced in May but has only just been finalised.

Chevron is retaining its 19.4 per cent stake in the large Clair field to the west of Shetland, but the deal essentially marks its exit from the North Sea.

Ithaca, based in Aberdeen, was taken private in 2017 by Delek Group, an Israeli conglomerate in a deal valuing the business at $630 million.

Mr Thomas, 62, said: “The best time for an IPO is dependent on a whole variety of factors, including the state of the market . . . There is no timescale. There is no rush and we are not being squeezed into doing anything.” He said that Ithaca could find organic growth from its new assets along with developing new fields. “The opportunities lie in us becoming a little bit more efficient in terms of our processes and procedures. We can probably act more quickly than Chevron and get to decisions more quickly.”

[speedsgh] 11/11/2019 09:18

Completion of Chevron North Sea Limited Acquisition -

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) ("Ithaca" or the "Company") is pleased to announce that it has completed the $2 billion acquisition of Chevron North Sea Limited ("CNSL"). The transaction provides a material and important step up in the scale and breadth of the Company's asset base, adding ten additional producing field interests to the existing portfolio, along with a wider portfolio of investment opportunities from which to grow the future cashflows of the business and accelerate monetisation of the Company's existing UK tax allowances.

Taking into account the interim period cashflows generated by CNSL since the transaction effective date of 1 January 2019, the $200 million deposit paid at signing of the transaction and conventional working capital adjustments, the price payable at completion of the acquisition was $1.5 billion.

Les Thomas, Ithaca Energy CEO, commented:

"Completion of the CNSL acquisition marks a major milestone in the long term development of Ithaca Energy. The significantly enlarged operations provide an excellent platform from which to maximise the value of our high-quality asset portfolio and establishes the Company as a leading UK North Sea oil and gas producer. We have a highly experienced organisation that is well set-up to deliver upon our investment plans and secure the future success of the business. With this exciting backdrop, we look forward to contributing to the industry's objective of maximising economic recovery for the UK North Sea over the years to come".

Asi Bartfeld, Delek Group CEO, commented:

"With completion of the acquisition, we are delighted to have made a significant step towards our strategic objective of building the Delek Group's position as a world class E&P business. The acquisition has established Ithaca Energy as a leading UK North Sea oil and gas company with a strong outlook and the opportunity set from which to deliver material value to the Delek Group and enhance its presence in the global energy markets."

[bountyhunter] 14/8/2019 12:33

Interesting post speed, of interest to RRE & SQZ holders so hope you dont' mind me reposting the link there.

[speedsgh] 14/8/2019 09:45

ExxonMobil plans £1.6bn sale of North Sea oil and gas stakes -

...Ithaca Energy, which is backed by the Israeli energy giant Delek Group, is understood to be in talks with ExxonMobil over the latest deal too.

Ithaca is likely to face competition from the Omani oil company Petrogas, which is on the hunt for North Sea opportunities after striking a deal last month to pay more than $500m for a package of North Sea fields form the French oil major Total...

[bountyhunter] 21/7/2019 20:33

I can't tell one way or another on that but Delek have certainly benefited from Ithaca hedging...

Ithaca has hedged approximately 70% of its 2019-2020 production, at average levels of USD 71 per barrel of oil and approximately USD 7.50 per mmbtu of gas.

[sludgesurfer] 19/7/2019 07:44

Am I missing something, or does Stella appear to be a bit of of a turkey?

hxxps://ir.delek-group.com/financial-results-center

[bountyhunter] 13/6/2019 17:15

IAE was one of my best investments despite the give away takeover price.

[farmscan] 13/6/2019 14:51

Ha! whatever happened to bobob? I always liked his posts and he was very knowledgable. I was never in GKP, but I seem to remember it all turned a bit nasty with bob and others over there.

[captainfatcat] 13/6/2019 14:41

Spangle have been in and out of Casp a number of times myself over more years than I can remember accurately certainly when the poster "hiddendepths" was previously known as *Pippin* Think he was in EEN as well but have been sitting on the side-lines for a while now. If the share price drops back into single figures again I will probably have a nibble. I'm not particularly fond of the ramptastic bb at the moment.

[spangle93] 13/6/2019 14:31

Didn't touch SEY - I think bobobob was punting that one.

Like CFC I got IAE in the 40s and actually remembered to sell rather than watch it go up and down.

That's unlike LGO (now CERP) -to answer CFC - where I had a big profit at one stage until they got the tool stuck in the hole, and now my investment is peanuts. Likewise RRL would cost me more to sell than my residual value - so much for all the big plans. The only T&T oiler I hope to do well with is TXP, where Ortoire looks very positive, though all will jump if the tax system is made fairer.

Elsewhere, there are signs that CASP (formerly ROXI) are poking a very big field indeed just 40km down the road from Tengiz, so I'm watching with some interest there. MATD is planning a well to spud in July that is so close to its neighbour's producing field (and on trend) that you can see the brand of tea bags in the operations room. And while BLOE has consolidated at around its recent placing price, there are enough transformation points in the coming year to make it interesting, especially now it is throwing off $1MM a month

[captainfatcat] 13/6/2019 14:17

oh yes had a few SEY as well I had forgotten that one.

[farmscan] 13/6/2019 13:33

Spangle, yes I held Gulfsands as well. I always felt that Emerald only really did well on GPX coat tails, Khurbet East was the big winner! Where might we have been had it not been for that ghastly war! I eventually dumped all my GPX when they took it private. I also bought SEY when Beardsall went there. Now that was a mistake! I cleared out SEY and a few other no-hopers and put it all into RRE @ 6.15, so hopefully that will make up for a little of the losses. I had been hoping to start to syphon a few off from Hurricane into Jadestone but it is a little slow to move at the moment.

[captainfatcat] 13/6/2019 11:25

EEN was very good to me and GPX which luckily I sold at close to the top with the majority of both going in to SQZ (average 20p) and IAE (around the 44p mark also) subsequently when IAE was taken out the cash went mainly into SQZ and a few other companies.


Also have a small holding in JSE

Spangle not sure if your still in any of the Trinidad and Tobago E&P but have also have a reasonable holding in TXP now with an average around 16p.