• Ithaca Energy is a leading UK independent exploration and production company, operating the majority of its 2P reserves and 2C resources
• Ithaca Energy has a balanced portfolio between oil and gas assets, with gas representing c. 35% of production in the first nine months of 2022
• Ithaca Energy achieved this market positioning through a combination of organic growth and value-accretive acquisitions
• Ithaca Energy has a track record of material value creation, delivering a 5.4x increase in equity value between 2018 and 30 June 2022
• Ithaca Energy has access to flagship assets, with stakes in six of the top ten largest fields in the UKCS, including the two largest undeveloped discoveries, Cambo and Rosebank, to drive organic growth
• Ithaca Energy’s goal is to continue to increase value while generating attractive and sustainable shareholder distributions
• Ithaca Energy will seek to achieve outstanding performance through operational excellence, maintaining financial discipline, appropriately incorporating an ESG mindset to achieve Net Zero by 2040 and by employing an industry leading workforce, while always maintaining a staunch focus on safety
• Ithaca Energy’s ambition is to become a key player in providing energy security to the UK

Ithaca Energy, a leading UK independent exploration and production company focused on the UK North Sea, intends to publish today a Registration Document and is considering proceeding with an initial public offering (the “IPO” or the “Offer”). Ithaca Energy is considering applying for admission of its ordinary shares to the premium listing segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange (“LSE”).

Introduction to Ithaca Energy – a leading UK independent exploration and production company with production and development activities on the UK Continental Shelf (“UKCS”)

Ithaca Energy has significant scale: as at 30 June 2022, Ithaca Energy had 2P reserves of 244 mmboe, aggregate 2C contingent resources of 302 mmboe and delivered a reserves replacement ratio of c. 230% over the period from 1 January 2019 to 30 June 2022. The Company believes that it has sufficient development opportunities within its portfolio to enable production to be increased to over 100 kboe/d in the medium-term.
Ithaca Energy has significant control and flexibility over its strategic, operational and financial priorities: Ithaca Energy’s portfolio consists of 28 producing field interests in the UKCS, of which Ithaca Energy is the operator of eight fields, which account for the majority (c. 63%) of the Group’s 2P reserves and 2C resources, as at 30 June 2022.
Ithaca Energy has delivered robust financial performance: during the six months ended 30 June 2022, Ithaca Energy’s average daily production (oil and gas) on a net working interest basis was c.66.7 kboe/d, the Group’s revenue was c. $1,338 million, Adjusted EBITDAX was c. $907 million, profit after tax was c. $1,558 million, and the Group had net cash from operating activities of $989 million. For the six months ended 31 December 2022, the Group’s management estimate average daily production (oil and gas) on a net working interest basis to be c. 76-81 kboe/d.
Ithaca Energy has seen a period of significant M&A driven growth centred upon two transformational acquisitions: the acquisitions of Chevron’s portfolio in the UKCS and Siccar Point Energy (“Siccar Point”) gave the Group stakes in six of the top ten largest oil and gas fields in the UKCS, including Cambo and Rosebank, two of the largest undeveloped discoveries in the UKCS. These transformational acquisitions also provided Ithaca Energy with a material, long-life resource base with the second largest resource base of independent oil and gas companies in the UKCS.
Ithaca Energy’s strategy is centred on increasing value while generating attractive and sustainable shareholder distributions: to execute on this, Ithaca Energy will focus on (i) building projects with strong economics which provide resilience to the portfolio through the commodity price cycle; (ii) boosting existing assets by maximising recovery, improving efficiency, emphasising cost control and driving digitalisation; and (iii) buying value accretive assets across the asset lifecycle. Ithaca Energy is targeting annualised dividends of 15-30% of post-tax net cash from operating activities through the cycle. In the near-term, the Group has a firm expectation of paying a dividend in 2023 of $400 million with an ambition of an annual dividend of $420 million in 2024.
Ithaca Energy’s ambition is to have one of the lowest carbon emission portfolios in the UKCS: the Group has set a goal of reducing its combined Scope 1 and Scope 2 CO2 and CO2 equivalent emissions from operated assets by 25%, based on 2019 levels, by 2025, which is greater than current North Sea Transition Deal (“NSTD”) commitments. The Group is also committed to achieving net zero by 2040 on a net equity basis, 10 years ahead of NSTD commitments.
Ithaca Energy plays an important role in UK energy security, a key focus of the UK Government: Ithaca Energy intends to utilise its significant reserves and operational capabilities to play a key role in delivering security of domestic energy supply from the UKCS. The Company’s management believes that its strategy is in line with the UK Government's energy security strategy to maximise economic recovery of the UKCS as part of reducing reliance on imported fossil fuels. This will include Ithaca Energy’s operatorship of Cambo, one of the largest pre-FID projects in the UKCS and one of only five oil and gas projects highlighted for accelerated progress in the UK Government’s recently announced Growth Plan 2022.

Gilad Myerson, Executive Chairman of Ithaca Energy, said:
“I am incredibly proud of the transformation Ithaca Energy has undergone over the past three years to become one of the UK’s leading independent oil and gas companies. Following the Siccar Point acquisition, Ithaca Energy now has material scale and portfolio longevity, with significant growth opportunities.

Our strategy is simple – by buying, building and boosting assets we aim to increase value while generating attractive and sustainable returns to shareholders. Our track record of value creation is exceptionally strong and we have a deeply experienced team in place who will continue to deliver.

Our strategy is aligned with the UK Government’s Energy Security Strategy and we are proud to be investing in the UK at a time when domestic energy security could not be more important.

I am very excited for what lies ahead and to welcome new shareholders on board as we continue our journey in the public markets.”

Idan Wallace, Chief Executive Officer of Delek Group Ltd. (“Delek”), said:
“Delek has invested a large amount of capital in Ithaca Energy since we acquired it in 2017, delivering significant value for our shareholders.

A London listing is the natural next step, allowing Ithaca Energy to flourish as an independent company with its own capital allocation policy and the potential to generate substantial value for all its shareholders.

I am proud of the work the Ithaca Energy team has done and Delek looks forward to supporting Ithaca Energy as a long-term shareholder.

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