[PPT] - Energean Full Year Results 2018 21 March 2019 Todays Highlights Med PowerPoint Presentation

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Energean Full Year Results 2018

21 March 2019

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Today’s Highlights

Operational Strength Effective execution

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GSPAs signed, securing project economics

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bcma FPSO under construction

1Q21

On track to deliver first gas from Karish

+45%

Production growth1

29%

Cost of production1

35%

2P + 2C increase1

Proven creator

f value

$1.5bn

Valuation from just $1m 10 years ago

$13bn

revenue secured in Israel, having paid $40m up front

Med focused, FTSE 250 (LN:ENOG) and TA 35 (TASE:גאנא) listed

1. 2017 - 2018

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Key Milestones 2019 3 Karish Main wells FPSO Hull delivery Karish North well

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mmboe reserves in Prinos, up from 2 mmboe at acquisition

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Reserves & Resources Growth

 Gas-weighted portfolio – 74% gas (2P + 2C)  35% growth in 2P + 2C between 2017 & 2018  70% Compound Annual Growth Rate (CARG) in 2P + 2C over the last decade

2 5 7 11 17 24 30 58 237 300 405

50 100 150 200 250 300 350 400 450

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 mmboe Prinos 2P Prinos 2C Katakolo 2P Karish and Tanin 2C Karish and Tanin 2P 3

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2018 Results, 2019 Outlook

Revenue Cost of production EBITDAX Cash from operations $17.6 /boe

2017: $24.7 /boe

$52 million

2017: $21 million

$63 million

2017: $29 million

Financial Highlights

Production

5,000 – 5,500 bopd

Cost of Production

2019 Guidance

$14 – 17 /bbl

SG&A

$15 million

Accrued E&A Capex

$45 -60 million

Accrued D&P Capex – Greece

$140 - 150 million

Accrued D&P Capex –Israel1

$640 - 650 million

Net cash / (debt) $76 million

2017: ($76) million)

$90 million

2017: $58 million

Accrued capex1 $495 million

2017: $68 million

1. Cash capex $294 million in 2018.

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2019 Capex Guidance

GREECE

Prinos & Epsilon

$140-150m

ISRAEL

Development

$530-535m

Drilling

$110-115m

$640-650m

EXPLORATION

Israel

$30-40m

Western Greece

$10-15m

Montenegro

$5m

$45-60m

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Cash Flow Waterfall Chart

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. . .

1,500 1,376 Investment in Energean Israel

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Karish and Tanin Project Update

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At a Glance: Our Acreage in Israel

Key Facts & Figures

RESOURCES OWNERSHIP DEVELOPMENT CONCEPT SERVICE PROVIDERS REVENUES CAPEX STRATEGY

2.4 Tcf + 31.8 mmbbls gross 2P (92%) + 2C (8%) 7.5 Tcf + 101 mmbbls gross prospective resources Energean Israel is owned 70% Energean plc, 30% Kerogen1 FID March 2018, First Gas 1Q 2021 8 BCM/yr owned FPSO with subsea tie-backs 800,000 bbls oil & condensate storage capacity Gas pipeline to shore for domestic deliveries. Liquids tanker offload TechnipFMC: lump-sum EPCIC Stena: 4 firm + 6 optional wells Wood contracted for ops and maintenance. 4.6 Bcm/yr firm GSAs plus 0.7 BCM/yr Or contract $13bn of future revenues secured. $1.6bn to 2021 Funding by $1.3bn Project Finance + $440m net IPO proceeds Secure additional resource and offtake to fill the FPSO

1. Minority interest stake consolidated for reporting purposes

KEY DATES

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Tamar Platform Leviathan Platform

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On Track to Deliver First Gas in 1Q 2021 – Key Milestones

FPSO Workstream

Hull First Steel Cut 4Q Topsides First Steel Cut 4Q Hull Keel Laying 2Q Hull and Topsides Construction 1Q – 4Q Hull Sailaway from Cosco Yard 4Q Hull and Topsides Integration 1Q – 4Q FPSO Sailaway from Singapore 1Q Hookup of risers 1Q

2018 2019 2020 2021

Achieved November 2018 Achieved November 2018

Drilling Workstream

Mobilise Stena DrillMAX 1Q Drill Karish North 1Q – 2Q Three Karish Main Wells 1Q – 4Q

Rig mobilized February 2019

2019

Spudded March 2019 Topholes Drilled March 2019

Subsea and Onshore Workstreams

Pipeline beach crossing at Dor 1Q – 2Q Pipeline installation Karish to Dor 3Q – 4Q Onshore facilities commissioning 2Q – 4Q Installation of subsea infrastructure 1Q – 4Q

2019 2020

FID (2Q 2018) First Gas On track

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TechnipFMC EPCIC contract – risk mitigation

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Progress profile – on time & on budget

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Energean Power - 8 BCMA FPSO Construction On Track

1 2 3

Hull construction at the COSCO Yard, China Topsides construction and integration at the Siemans’ Admiralty Yard, Singapore Arrival in Israel Jan ‘21

First Steel Cut on the Hull – Nov ‘18

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FPSO Construction – early 2019 works

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Subsea Installation Campaign – 1H 2020 On Track

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Onshore Operations – On Track

Energean Israel MOU with INGL, Dec. 2018:

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Infrastructure transfer to INGL

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Handover after first gas

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$98 million inflow for Energean Israel

‒

No tariffs post transfer

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Onshore Pipeline

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Micro-tunnel beach crossing

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Costal valve station

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Dor valve station

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HDD road and rail crossing

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Pipe stringing area

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2019 firm four well drilling programme

Karish Main

Targeting 1.3 Tcf plus 16.4 mmbls
69% geological chance of success1
Spud March 2019

Karish North

3 Wells
Batch drilling

‒ Cost and operational synergies

Primary target is the C sands
KM-2 will also drill pilot hole into the D1 and lower

D4 sands targeting an additional c.0.65Tcf

Completion expected before year end
Drilling contractor Stena
Spud March 2019

Karish Main Karish North

1. Volume weighted geological chance of success on the gas

Future Drilling in Israel

6 options remaining on the Stena contract
Decision on future drilling to be taken after results

from Karish North

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Drilling Programme - progress to date

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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Karish Main 1,2 & 3 TOPHOLE Karish Main 1, 2, & 3 DRILLING Karish North EXPLORATION Karish Main COMPLETION

Legend KM = Karish Main KN = Karish North KARISH WORK PROGRAMME 3x DEV Wells + 1x EXP Well

2019

Commenced on time :

‒

Stena DrillMAX on location 28/02

3x Karish Main top holes:

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Completed 15 March

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3 days ahead of schedule

Karish North spudded 15 March
Excellent rig operational performance

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Well-on-well improvement plan vs. actual drilling due to batch setting

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95% uptime (Best in Class for Deepwater)

Spread rate for drilling phase in line with budget

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Karish North - Value Creation

1 2 3 4 5 6 7 8 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Production BCMA

Base Case Defer Tanin

Reduce total capex by $600-650 million Increase in production by c.0.4bcma

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500 1000 1500 2000 2500 3000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

$ million

Base Case Defer Tanin $100m Karish North Tieback

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Contracted volumes & spare capacity

‘Filling The Boat’: Capacity Overview

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 2021 2022 2023 2024 2025 2026 BCM/yr Firm contract Or Contract IPM contract Total Capacity

1. January 2019, adjusted for inflation index and FX rates

Or Contract I.P.M. Contract 11 Contracts secured at IPO Spare Capacity 0.7 BCM/yr contingent on Or power plant financial close 0.4 BCM/yr contingent on additional resource in

2019. We may supply additional gas pre-2024

2.7 – 3.4 BCM/yr of spare capacity to fill contingent

n finding more gas. Significant interest identified

Available for tie-back of future discoveries

4.2 BCM/yr

Av. 16 yrs

75% ToP Major IPPs and Industrial customers

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Secured Revenues

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‘Filling The Boat': Our Resource Base

Block 23

255 km2 acquired 3D in NE corner.
Primary objective, Hercules (0.9 Tcf)
Secondary objective, deeper prospectivity

Block 31

181 km2 3D in the SW corne
Primary objective, Orpheus (0.35 Tcf)
Secondary objective, SW of Orpheus

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New 3D Seismic, Blocks 23 & 31 Completed

2.4Tcf 2P & 2C 7.5Tcf Prospective Resources 10Tcf Total Reserves & Resources

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Est. Industry average exploration chance of success

Karish Main 0.6 Tcf Karish North 1.3 Tcf Karish East 0.5 Tcf Zeus 0.4 Tcf Hera 0.3 Tcf Athena 0.4 Tcf Tanin prospects 0.4 Tcf Apollo 0.1 Tcf Hestia 0.0 Tcf Hermes 1 .0 Tcf Poseidon 0.6 Tcf Orpheus 0.3 Tcf Ares 0.3 Tcf Demeter 0.2 Tcf Artemis 0.1 Tcf Hercules 0.9 Tcf

10 20 30 40 50 60 70 80 90 100

Geological Chance of Success Prospect Maturity1

Targeted by the 2019 drilling campaign

1. Based on management view on data quality and evaluation maturity

Block 12 & Tanin Staged tie-backs 5 new blocks

TOTAL = 7.5 Tcf

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‘Filling The Boat': Our Prospective Resources

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Key Demand Driver: Gasification of the Israeli Economy

5 10 15 20 25 30 35

bcma

Energean Contracted Energean Available Capacity Rest of Market per Adiri Additional demand per BDO

Israel Gas Demand Growth

Increase competition in the electricity sector, including:
Sale of 5 existing power stations without assignment
f existing GSPAs potential demand of 4.3bcma
Further privatisation beyond 2023
MoE decision to switch 4 coal plants to natural gas

based on Karish commercial operation in – reduction of 3.6 MTCo2, and addition of c.2 bcma gas demand

Gradually shut down all coal power plants with

reduction of 12.8 MTCo2 – with Karish being essential to meet the goal

Zero new gasoline, diesel- powered vehicles by

2030 aiming to replace them with electric cars and trucks that run on natural gas

Israeli Electricity Sector Reform

Site Capacity – MW Bcm/y Last date of delivery of possession Alon Tavor 600 0.5 December 2019 Ramat Hovav 1,137 1.0 December 2020 Reading 428 0.4 June 2020 Hagit 697 0.6 June 2021 Eshkol 1,693 1.8 June 2022

Power station privatisation

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Adding More Hydrocarbons – Regional Positioning

Tamar Leviathan 2009 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Aphrodite Tamar 2021 Zohr Calypso Glafkos Zhor Leviathan* Karish* Karish

Discovered: On Stream:

*Under development, expected date on stream

Tamar Platform Leviathan Platform

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Prinos & Epsilon Update

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24 1000 2000 3000 4000 5000 6000

boepd

Production up, costs down

Quarterly production growth Quarterly unit production costs

Platforms Delta processing Owned rig

0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00

us$/ boe

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Prinos Area 2019

2019

1Q 2Q 3Q 4Q 1Q

2020

Energean Force

Epsilon ERW Continued drilling and work overs

Production

5,000 – 5,500 bopd

Cost of Production

$14 – 17 /bbl

Expected late 2019 / early 2020

GSP Jupiter & Epsilon Platform Development

Pre-Drill EL-1 Pre-Drill EL-2 Pre-Drill EL-3 Well Completions Fabrication of Epsilon Platform Installation of Platform First Oil from Epsilon Platform Development

Completed February Commenced March

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Epsilon First Oil

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Other Activities Update

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Developing reserves – optionality at Katakolo

2P reserves of 10.5 mmbls
25 year exploitation licence
$65 million development capex
2 wells tested historically
Expected development plan is two ERWs: one injector, one producer
Environmental and social impact submitted in 4Q18
Final Investment Decision or farm down to be decided in 2019

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Seismic acquisition programmes

First round exploration commitment fulfilled

– 338 km2 new 3D shot in Feb 2019 – To be processed together with legacy 2D – Full results expected end-2019 – Drill-or-drop decision 2020

 ENI-Novatek owns the four blocks to the south

– Shot seismic in 4Q 2018-1Q 2019 – Expected to drill two wells in 2019-2020

Montenegro Western Greece

Repsol 60% partner and operator
Energean carried for first phase
2D seismic exploration activities have commenced
Ioannina holds best estimate prospective resources of 103

Bcf and 187 million bbls

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A sustainable E&P company complying with UN SDG goals

Proven HSE record

Energean has a 37 year track record of safe operations in environmentally sensitive locations in North East Greece. Our objective is to generate sustainable growth. We are committed to conducting our business responsibly, which means:

Safeguarding the health and safety of our employees
Caring for our environment
Supporting local communities
Meeting expectations and needs
Contributing to the sustainable development of those communities.
Making a major impact to the environment in Israel
Executive pay to be linked with ESG goals from 2020

World Environment Day 4th Olympia Marathon Cleaning of Rapsani Beach Wheelchair Basketball Game Ramadan Cairo Student Visit on facilities

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Our next 18 months…

Karish North results
Development drilling results
FPSO hull build completion
Secure resource & offtake to fill the boat
Optimise drilling option value
Epsilon ERW first oil
Epsilon Platform Development first oil
Continued drilling to increase Prinos production
Montenegro & Western Greece seismic results
Israel Blocks 23 & 31 seismic results
Katakolo decision
Continue to assess M&A

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Q&A

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YEAR ENDED 31 DECEMBER 2018 (Unaudited) 2018 2017 Notes $'000 $'000 Revenue 90,329 57,752 Cost of Sales 5a (60,019) (48,648) Gross profit 30,310 9,104 Administrative expenses 5b (11,666) (5,991) Selling and distribution expenses (453) (445) Exploration and evaluation expenses (2,102) (9,966) Other income / (expense) 7,751 (6,398) Operating profit/(loss) 23,840 (13,696) Finance Income 6 1,735 14 Finance Costs 6 (13,471) (22,940) Gain on derivative 7 96,709 25,786 Net foreign exchange (loss) / gain 6 (23,521) 36,243 Profit from continuing operations before tax 85,292 25,407 Taxation income / (expense) 8 15,527 (14,061) Profit from continuing operations 100,819 11,346 Net results from discontinued operations

(1,403)

Income for the year 100,819 9,943 Attributable to: Owners of the parent 105,279 9,952 Non-controlling interests (4,460) (9) 100,819 9,943 Basic and diluted earnings per share (cents per share) 2 Basic $0.80 $0.14 Diluted $0.79 $0.14

Appendix 1 –Income Statement

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Appendix 2 –Statement of Comprehensive Income and Expenses

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YEAR ENDED 31 DECEMBER 2018

(Unaudited) 2018 2017 $'000 $'000 Income for the year 100,819 9,943 Items that may be reclassified subsequently to profit or loss: Exchange difference on the translation of foreign operations (4,288) (2,252) (4,288) (2,252) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit pension plan (444) (258) Income taxes on items that will not be reclassified to profit or loss 107 74 (337) (184) Other comprehensive loss after tax (4,625) (2,436) Total comprehensive income for the year 96,194 7,507 Attributable to: Owners of the parent 100,855 7,516 Non-controlling interests (4,661) (9) 96,194 7,507

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YEAR ENDED 31 DECEMBER 2018

(Unaudited) 2018 2017 Notes $'000 $'000 ASSETS Non-current assets ͮ Property, plant and equipment 9 1,341,704 309,976 Intangible assets 10 10,555 4,000 Goodwill 4 75,800

Other receivables

13 71,845 591 Deferred tax asset 15,532 13,473 1,515,436 328,040 Current assets Inventories 9,912 9,529 Trade and other receivables 13 32,883 24,684 Cash and cash equivalents 219,822 15,692 Derivative asset 7

93,292

262,617 143,197 Total assets 1,778,053 471,237 EQUITY AND LIABILITIES Equity attributable to owners of the parent Share capital 2,066 917 Share premium 664,027

Merger reserves

139,903 139,903 Other reserves 5,907 73,750 Foreign currency translation reserves (15,513) (11,427) Share based payment reserve 1,395

Retained earnings

29,993 (138,455) Equity attributable to equity holders of the parent 827,778 64,688 Non-controlling interests 260,045 224,294 Total Equity 1,087,823 288,982 Non-Current Liabilities Borrowings 11 144,270 78,831 Deferred tax liabilities 76,370 3,570 Retirement benefit liability 3,659 3,288 Provisions 12 7,530 5,688 Other payables 14 72,723 2,544 304,552 93,921 Current Liabilities Trade and other payables 14 385,678 66,528 Borrowings 11

12,500

Provisions 12

9,306

385,678 88,334 Total Liabilities 690,230 182,255 Total Equity and Liabilities 1,778,053 471,237

Appendix 3- Statement of Financial Position

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Appendix 4 – Statement of Changes in Equity

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YEAR ENDED 31 DECEMBER 2018

Share Capital Share Premium1 Other Reserve2 Share based payment reserve3 Translation Reserve4 Retained earnings Merger reserves Total Non Controlling Interests Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 At 1 January 2017 14,904 125,851 404

(9,175)

(148,407)

(16,423)

303 (16,120) Profit for the year

9,952
9,952

(9) 9,943 Exchange difference on the translation of foreign

perations
(2,252)
(2,252)
(2,252)

Remeasurement of defined benefit pension plan

(258)
(258)
(258)

Income taxes of other comprehensive income

74
74
74

Total comprehensive income

(184)
(2,252)

9,952

7,516

(9) 7,507 Transactions with owners of the company Issuance of shares 65

65
65

Group restructuring (14,052) (125,851)

139,903
Modification of derivative (Note 7)
67,506
67,506
67,506

Transaction with non controlling interests (28.5)

6,761
6,761

224,000 230,761 Transfer due to disposal of subsidiary

(737)
(737)
(737)

At 1 January 2018 917

73,750
(11,427)

(138,455) 139,903 64,688 224,294 288,982 Profit for the period

105,279
105,279

(4,460) 100,819 Remeasurement of defined benefit pension plan

(337)
(337)
(337)

Exchange difference on the translation of foreign

perations
(4,086)
(4,086)

(202) (4,288) Total comprehensive income

(337)
(4,086)

105,279

100,856

(4,662) 96,194 Retrospective application of IFRS 9

(4,337)
(4,337)

(4,337) Transactions with owners of the company

IPO shares

1,009 458,991

460,000
460,000

Issuance of shares for share-based payment transactions 7 3,110

3,117
3,117

Transaction cost in relation to IPO and new share issue (24,057)

(24,057)
(24,057)

Employee share schemes 4 2,112

1,395
3,511
3,511

Derecognition of derivative asset

(67,506)
67,506
Share capital increase in subsidiary
59,613

59,613 Transaction with non controlling interests 129 223,871

224,000

(224,000)

NCI on acquisition of subsidiary (note 4)
204,800

204,800 At 31 December 2018 (unaudited) 2,066 664,027 5,907 1,395 (15,513) 29,993 139,903 827,778 260,045 1,087,823

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YEAR ENDED 31 DECEMBER 2018 (Unaudited) 2018 2017 Notes $'000 $'000 Operating activities Profit/(loss) from continuing operations before tax 85,292 25,407 Loss from discontinued operations before tax

(1,403)

Profit / (loss) before taxation 85,292 24,004 Adjustments to reconcile profit/(loss) before taxation to net cash provided by operating activities: Depreciation of property, plant and equipment 9 34,087 17,808 Amortisation of intangible assets 10 171 200 Impairment loss on property, plant and equipment

1,344

Impairment loss on intangible assets

6,663

Impairment loss on inventory 992

Gain from disposal on property, plant and equipment

(6)

Gain from disposal of subsidiary
(1,540)

(Decrease)/increase in provisions (6,757) 8,748 Finance income 6 (1,735) (14) Finance costs 6 13,471 22,940 Fair value gain on derivative 7 (96,709) (25,786) Share-based payment charge 1,570

Net foreign exchange (gain)/loss

23,521 (36,243) Cash flow from operations before working capital adjustments 53,897 18,124 (Increase)/decrease in inventories (1,807) 4,985 Decrease/(Increase) in trade and other receivables 10,741 (11,168) (Decrease)/increase in trade and other payables (3,562) 17,157 Net cash inflow from operating activities 59,269 29,097 Tax paid (251)

Receipts in relation to provisions

12 3,666

Net cash inflow from operating activities

62,684 29,097 Investing activities Payment for additions to property, plant and equipment (290,123) (48,744) Payment for additions to intangible assets (3,449) (5,259) Disposal of subsidiary, net of cash disposed (5,610) Acquisition of a subsidiary, net of cash acquired 4 (32,746)

Proceeds from disposal of property, plant and equipment

63 1,000 Interest received 1,591 14 Net cash used in investing activities (324,664) (58,599) Financing activities Proceeds from issue of share capital 460,000

Proceeds from new debt

55,626 33,915 Proceed from capital increases by non-controlling interests 67,613

Transaction costs in relation to IPO and new share issue

(20,057)

Debt arrangement fees paid

(8,237) (1,475) Debt arrangement fees for Karish-Tanin facility 22 (61,496)

Finance costs paid

(10,919) (4,019) Net cash inflow from financing activities 482,530 28,421 Net increase / (decrease) in cash and cash equivalents 220,550 (1,081) Cash and cash equivalents: At beginning of the period 15,692 17,586 Effect of exchange rate fluctuations on cash held (16,420) (813) Total cash and cash equivalents at end of the year 219,822 15,692 Supplemental cash flow information: Non-Cash Investing and Financing Activities Investment in oil and gas assets against liabilities 9 198,311 15,739 Loan capitalisation and issuance of preference shares

230,761

Capitalisation of depreciation to oil & gas properties 9 2,574 2,388 Capitalised borrowing costs 9 9,258 1,258 Costs related to debt not yet drawn down 11 2,202

Appendix 5 – Statement of Cash Flows

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