Energean PLC has released its trading statement and operational update for the first quarter of 2024, highlighting strong operational and financial results. The company's production, revenue, and adjusted EBITDAX have all increased year-on-year. In Israel, operations remain unaffected by geopolitical developments, with peak gas demand expected during the summer. Energean also announced success at its Abu Qir infill drilling campaign in Egypt, discovering 270 ft of net pay, which is around two times initial expectations.
The company has reiterated its 2024 production guidance of 155 - 175 kboed, weighted towards the second half of the year. Operational highlights include successful testing of wells in Israel, completion of a scheduled turnaround for routine maintenance, and the performance of new wells brought online in Egypt. Additionally, drilling operations continue in Italy, and the Morocco farm-in has been completed with a rig contract signed for the Anchois appraisal well.
Financially, Energean reported a 43% increase in revenues and a 60% increase in adjusted EBITDAX compared to Q1 2023. The company's cash as of March 31, 2024, was $220 million, with total liquidity at $424 million. Energean declared a Q1 2024 dividend of 30 US cents/share, scheduled to be paid on June 28, 2024.
Looking ahead, Energean has several milestones on the horizon, including the expected onstream date for the Cassiopea gas development in Italy, the planned spudding of the Anchois appraisal well in Morocco, and the submission of a carbon storage permit application in Greece. The company also intends to continue its quarterly dividend payments in line with its dividend policy.
In summary, Energean PLC's Q1 2024 update reflects strong operational and financial performance, with significant achievements in its key operational areas and positive outlook for the coming months.