Ithaca Energy, a leading UK independent exploration and production company, today provides the following unaudited trading update for the year ended 31 December 2023, ahead of announcing its Full Year Results on 21 March 2024.

Highlights

• 2023 full year production of 70.2 thousand barrels of oil equivalent per day (kboe/d), in line with previously stated guidance of 68–74 kboe/d
• Underpinned by high levels of production efficiency across our operated asset base of 84%
• Production split 66% liquids and 34% gas
• Estimated 2023 net operating costs of $524 million, representing a net unit opex cost of $20.5/boe, marginally better than the lowered management guidance of $525 - $575 million
• Internal cost optimisation project driving strong cost control in an inflationary environment
• Estimated 2023 net producing asset capital cost of $392 million, in line with management guidance of $390 - $435 million
• Reflects a reduction in planned activity in the year as a direct result of the Energy Profits Levy
• Estimated 2023 net Rosebank capital spend of $97 million, in line with management guidance of $90 - $110 million and reflecting the meaningful activity in 2023 as project activity ramps up to support a targeted first oil date in 2026/27
• Estimated 2023 adjusted EBITDAX of $1.7 billion (2022: $1.9 billion)
• Strong cash flow generation supporting continued deleveraging of the balance sheet with net debt of $572 million at period end, representing an estimated Group leverage position of 0.3x
• The Group’s available liquidity stands at over $1.1 billion, including undrawn RBL availability of $835 million following completion of the latest redetermination
• Full year 2023 total dividend of $400 million reaffirmed, with remaining $134 million payment payable following the publication of the full year results
• The Group expects to publish guidance for 2024 with the full year 2023 results on 21 March 2024 together with a full 

Gilad Myerson, Executive Chairman, commented: 
“I am pleased to report a strong set of 2023 results, with trading in line with guidance. We have made significant progress across our strategic objectives in 2023, delivering against our BUY, BUILD and BOOST strategy, including the milestone sanctioning of the Rosebank development.”

Iain Lewis, Chief Financial Officer & Interim Chief Executive Officer, commented: 
“We begin 2024 in a position of strength with a diverse portfolio of high-quality assets and significant investment optionality. Strict cost control and strong cash flow generation in 2023 has supported the continued deleveraging of the balance sheet with significant flexibility to support our future growth plans.”

KeyFacts Energy: Ithaca Energy UK country profile