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Israeli gas producer Energean used to have a unique approach to new investment — it limited prospective new assets to those within three hours’ flight from Athens, where chief executive Mathios Rigas is based. Its search area has since been extended to take in three time zones, but the company’s guiding philosophy, focused on picking up pre-production assets, is intact.
This would have remained the case even after the now-cancelled sale of its more mature assets in Egypt, Italy and Croatia. Carlyle Group was set to pay $500mn (£379mn) on completion, with another $445mn expected down the line for the assets that provide around 40 per cent of Energean’s output. Gas prices have risen since the deal was agreed, so the company is not overly aggrieved about losing the immediate cash injection.
This does mean debt will be higher for longer and there will be no special dividend for investors. But analysts are largely positive: “These are robust, cash generative assets that only enhance an already strong cash flow profile,” said David Round at Stifel. He forecasts production of 171,000 barrels of oil equivalent per day for 2025, and a 16.7 per cent rise in the dividend.
The board has gone on a buying spree since a closed period ended with the publication of the company’s 2024 results — Rigas (via his holding company, Growthy) has spent £694,000 on shares, director Stathis Topouzoglou £1.7mn, and chief financial officer Panos Benos bought shares worth almost £300,000. Two other directors also spent between £86,000 and £104,000.
