Energean, an oil and gas company focused on the Eastern Mediterranean and North Sea regions, has announced that its full-year production for 2023 met its target range and is expected to see significant growth in 2024, driven by increasing gas demand.
Impressive 2023 Results
In 2023, Energean achieved a production of 123,000 barrels of oil equivalent (BOE) per day, a substantial increase from the previous year’s 42,000 BOE per day. This strong performance aligns with the company’s target of producing between 120,000 and 130,000 BOE per day.
The remarkable rise in production was primarily attributed to the successful first year of operation at the Karish field in Israel. Energean emphasized that the recent Israel-Gaza war had no impact on its daily production in Israel.
Driven by Increased Output: Revenue and Earnings Surge
Due to the improved production levels, Energean experienced a significant boost in revenue. In fact, their revenue nearly doubled from $737.1 million to $1.42 billion. This increase in revenue also led to a more than doubling of earnings before interest, taxes, depreciation, amortization, and exploration (EBITDA), reaching $925 million.
Additionally, the company achieved a remarkable reduction in production costs, which decreased by 59% to $6.5 per BOE.
Promising Outlook for 2024
Looking ahead, Energean projects a further increase in output for 2024, with estimates ranging between 155,000 and 175,000 BOE per day. This growth is expected to be more pronounced in the second half of the year. The driving force behind this significant uptick is the positive gas demand outlook in Israel.
Energean’s strong performance in 2023 and promising outlook for 2024 demonstrate its effectiveness in capitalizing on opportunities and meeting the increasing demand for energy resources.