Energean announced the best fourth quarter in its history in terms of production in 2025.
The company also confirmed the target to carry out drilling in the offshore Block 2 in the Northwest Ionian Sea in late 2026 or early 2027.
Mathios Rigas, Chief Executive Officer of Energean, commented: “I am pleased to report an excellent fourth quarter, during which we delivered a 12% year-on‑year increase in production, averaging 162 kboed for the quarter. This resulted in full year production averaging 154 kboed (113 kboed from Israel), which was at the upper end of our latest production guidance. Combined with strong operational performance over the summer and our continued discipline on costs, this enabled us to maintain sales revenue and adjusted EBITDAX in line with last year despite geopolitical challenges and macroeconomic pressures, including lower year-on-year oil prices. The business continues to remain resilient through our long-term gas contracts, with over 20 billion dollars contracted over the next two decades.”
“2026 has begun with strong sales in Israel, which have averaged 132 kboed month-to-date1 in January. This will be a pivotal year for Energean, as we pursue all options to optimise our core asset base and grow the business through disciplined and strategic investment, both within our existing asset base and via selective inorganic opportunities.”
2025 Key Highlights:
• Resilient business performance despite macro and geopolitical backdrop
• Group average working interestproduction in 2025 was 154 kboed (85% gas), reflecting strong performance in the second half of the year, particularly in Israel, resulting in Group production at the upper end of the revised guidance range of 145-155 kboed. Group output was flat versus 2024, despite the temporary suspension in Israel in June, following a directive from the Ministry of Energy and Infrastructure due to regional geopolitical developments.
• Sales revenue of 1,716 million dollars and adjusted EBITDAX of 1,112 million dollars, in line with the prior year. Signed over 4 billion dollars in new long-term gas contracts and invested in new export infrastructure to increase sales
• New long-term domestic gas contracts signed, representing >4 billion dollars in contracted revenues, to supply new build power stations to meet Israel’s growing gas demand.
• Nitzana export pipeline from Israel to Egypt sanctioned, and development is underway. Continued discipline on costs and capital allocation
• Cost of Operations (excluding royalties) maintained at 6 dollars/boe year-on-year. • Cash G&A tightly controlled at 38 million dollars (2024: 37 million dollars).
• Group development and production expenditure of 575 million dollars, which was slightly below the 580 – 620 million dollar guidance range, primarily due to approximately 50 million dollars of Katlan capital expenditure deferred into 2026.
• Resilient balance sheet with no short-term maturities following refinancing of project and corporate bonds during 2025.
• Shareholder returns protected, with 221 million dollars returned to shareholders in 2025.
• Energean received a final 2025 payment of 80 million dollars in Egypt from EGPC, a portion of which was collected in the first days of January, as opposed to by year-end as expected, leading to a net debt of 3,255 million dollars.
2026 Outlook:
• Baseline revenue is protected through long-term gas contracts in Israel and Egypt, which support Energean’s capital structure.
• Maintain strict cost control, with targeted cost reductions and disciplined capital allocation.
• Near-term focus is to optimise the core asset base via the Egypt merger concession, where agreed terms are targeted by the end of this quarter, sign new long-term gas contracts in Israel, and advance export pathways.
• Pivotal year of delivery and capital commitment on key development milestones for the Katlan (Israel) and Irena (Croatia) projects, including development well drilling and infrastructure installation. First gas on both projects is expected in H1 2027.
• Multi-well exploration campaign planned to drive further growth, starting with East Bir El-Nus exploration drilling in Q2 2026 and then the high-impact Block 2 (offshore Greece) exploration well, where drilling is targeted for late 2026/early 2027.
• The Group is also focused on maturing other high-potential exploration targets in Egypt and Israel.
• Evaluating new M&A opportunities, particularly in West Africa, to grow the business.
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