Energean reported first-half 2026 profit after tax of $160 million, up 45% year over year, while free cash flow increased 35% to $250 million as production recovered following the restart of operations in Israel.
Net debt fell by $97 million during the second quarter, while earnings per share increased 50% to $0.90. Adjusted EBITDAX was $478 million compared with $505 million a year earlier, and revenue from production activities declined 8% to $743 million.
Average first-half working-interest production was 124 thousand barrels of oil equivalent per day, down 10%, reflecting a 41-day government-mandated suspension of production in Israel and lower production from Cassiopea in Italy. Production subsequently recovered, reaching levels above 180 Kboe/d during August, and Energean remains on track for full-year guidance of 130 to 140 Kboe/d, excluding Cassiopea.
Energean also benefited from stronger liquids pricing. Realized liquids prices increased 29%, contributing to a 14% increase in liquids revenue to $267 million.
Operationally, the company commissioned a second oil train on the Energean Power FPSO, increasing liquids handling capacity from 18,000 to 31,000 barrels per day. It also completed the first Katlan heavy-lift campaign and drilled and completed two deepwater development wells. Katlan remains on track for first gas in the first half of 2027.
In Egypt, Energean agreed principal terms with EGPC to consolidate its Abu Qir, North El Amriya and North Idku concessions under improved fiscal terms. The company plans an initial $150 million investment over four years, targeting a doubling of production and reserves while accessing acreage estimated to contain more than 4 Tcf of exploration potential.
Energean also signed an approximately $1.4 billion gas sales and purchase agreement with Sorek in Israel. The contract is expected to begin supplying gas in late 2029.
Elsewhere, the Irena development in Croatia remains on track for first gas in the first half of 2027, the Nitzana export pipeline is targeted for completion in late 2028, and exploration drilling with ExxonMobil at Block 2 offshore Greece is expected to begin in the second quarter of 2027.
KEY QUOTE:
“Operationally, our teams in the year so far have delivered three major milestones in parallel: commissioning the second oil train on the Energean Power FPSO, which lifted liquids processing capacity by 72%; completing the first Katlan heavy-lift campaign; and drilling and completing two Katlan deepwater development wells, marking progress on the critical path towards first gas from the Katlan project in H1 2027.”
Mathios Rigas, Chief Executive Officer of Energean
