Energean plc has announced that it entered into a binding agreement for the sale of its portfolio in Egypt, Italy and Croatia to an entity controlled by Carlyle International Energy Partners (“Carlyle”) for an enterprise value (“EV”) of up to $945 million, of which $820 million is firm (the “Transaction”). Completion is expected by year-end 2024, subject to customary regulatory and antitrust approvals.

The company indicated that the sale enables Energean to rationalize the portfolio and focus on its gas-weighted, gas-development strategy, underpinned by the Karish Field in Israel and recent farm-in to the Anchois field in Morocco. This strategy aims to maximize asset monetization (through a develop and operate model), free cash flow generation and returns to shareholders.
The Transaction also optimizes the portfolio by divesting later life assets, removing over 60% of
the Group’s decommissioning liabilities, and improving free cashflow generation in the short to
medium-term.

Mathios Rigas, Chief Executive Officer of Energean, commented: “This deal represents an exciting new chapter for Energean. Today we have realized a significant return on the investment made when we acquired this portfolio over four years ago. The transaction delivers on our strategy and Energean’s ability to maximize value for our shareholders. It maintains our highly disciplined
approach to capital allocation, as demonstrated by the accretive transaction metrics, coupled with an anticipated special dividend.”
“Looking ahead, this transaction unlocks management capacity and financial flexibility to drive future growth. Our focus will now be to create enhanced value from our Israel assets, and evaluate new opportunities that fit Energean’s key business drivers: paying a reliable dividend, deleveraging, growth, and our commitment to Net Zero,” added Rigas.
“Carlyle is the right custodian of the asset base and will create an excellent home for our colleagues. We wish them every success and look forward to watching their progress. I want to thank all of our colleagues based in Egypt, Italy and Croatia for their hard work and dedication over the years,” he concluded.

Bob Maguire, Co-Head of Carlyle International Energy partners, commented: “We are delighted to acquire this portfolio of high-quality assets in Italy, Egypt and Croatia, countries that are actively encouraging new gas development, which we believe will play a central role in the energy transition. We look forward to supporting the transformation of these assets into a scalable E&P platform in the Mediterranean, through the execution of near-term developments, unlocking organic growth
opportunities, M&A, and accelerating the delivery of existing decarbonization plans.”