Carlyle acquires Energean’s portfolio in Egypt, Italy and Croatia

Completion is expected by year-end 2024, subject to  customary regulatory and antitrust approvals.  

Energean plc is pleased to announce that it has 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.  

Compelling transaction metrics: 

An EV of up to $945 million1, representing more than a 3x return since the portfolio was acquired for $284 million in 20202

A firm EV/2P multiple of $5.4/boe, a >4.5x increase versus c. $1.2/boe at the time of acquisition3. Expected to be immediately accretive to free cash flow. 

Energean expects sufficient cash proceeds at closing in order to repay in full the $450 million PLC  Corporate Bond and facilitate a special dividend of up to $200 million. 

At least $7.5 million per annum G&A savings identified following the Transaction. Strategic rationale highlights: 

This sale enables Energean to rationalise 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 maximise asset monetisation (through a develop and  operate model), free cash flow generation and returns to shareholders. 

The Transaction also optimises 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.



Moving forward, Energean will maintain and seek to grow its footprint in the Mediterranean and  look beyond this to the wider Europe, Middle East and Africa (“EMEA”) region, particularly where  there is long-term policy support for gas and displacement of coal. 

The Group will also focus on creating a Carbon Storage Hub in Greece and the wider Mediterranean  region via its EnEarth subsidiary. 

Post-closing, Energean’s scope 1 and 2 emissions intensity4 will reduce by around 40% to ~5  kgCO2e/boe accelerating its 2035 target by 10 years. 

Mathios Rigas, Chief Executive Officer of Energean, commented: 

“This deal represents an exciting new chapter for Energean. Today we have realised 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 maximise 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. 

“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.” 

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 decarbonisation plans.” 

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