Capricorn Energy : Full Year Results 2023

Strategic Highlights

• Delivery on our shareholder return commitment set out in the strategic review, with ~$568m paid to shareholders in 2023 and a further planned dividend payment of $50m in Q2 2024, accompanied by a share consolidation, subject to shareholder approval
• Ongoing $25m share buyback programme - ~$21m repurchased to date, with progress limited by reduced trading volumes
• Corporate focus on maximising value from the Egypt portfolio
• Full exit of non-core exploration positions in Mauritania, Mexico and Suriname
• Appointment of Randy Neely as Chief Executive Officer and Director
• Right sized the organisation with 80% UK headcount reduction
• Revised agreement with Waldorf relating to the Company's disposal of its Catcher and Kraken interests, with Capricorn now to receive $72.5m over the 12 months following the settlement date and Waldorf's 25% WI in the Columbus gas field in the UK North Sea, subject to completion. *

Operational Highlights

• WI Egypt oil and gas production 30,044 boepd, comprising 47% liquids; net entitlement sales volumes 12,161 boepd
• 23 additional wells were put on production adding ~6300 bopd and ~16 mmscfd
• Of the 29 development wells drilled, 25 targeted liquids production, reflecting the execution of a liquids focused strategy
• In total nine near field exploitation (NFE) wells were drilled, seven of which were successful, adding developed producing reserves of ~1 mmboe
• Exploration drilling in the first half of 2023 was unsuccessful with three wells drilled
• Operating costs per boe of $5.4 on a WI basis
• Making progress with opportunistic investments to decarbonise and reduce operating costs.

Financial Highlights

• Revenues of $201m with average oil price of $81.2/bbl and gas price of $2.9/mmscf; production costs of $60m
• $49m exploration capex and general exploration costs; $15m in Egypt and $34m across legacy international portfolio
• $91m capex on Egypt producing assets
• Net cash inflow of $32m from Egypt operations
• Group net cash of $76m; comprising $190m cash and $114m debt
• Receivables of $169m, after expected credit loss adjustments
• Gross G&A of $75m inclusive of restructuring costs
• $48m contingent payment received in December related to the disposition of the Company's legacy UK North Sea assets with a further $24.5m to be received over the next 10 months
• Group cash expenditure on oil and gas assets $88m; $43m exploration, including general costs, and $44m producing assets
• Operating loss of $87m from continuing operations
• Combined impairment charge of $44m on Egypt producing assets and related goodwill
• Loss after tax of $144m.

2024 Outlook

• Post-year end appointment of Eddie Ok as CFO and Geoff Probert as COO
• The Company remains committed to aligning investment in Egypt with funds available in country - an update on 2024 guidance and budget is expected to be provided once the Company has clarity on accessible funds generated in country
• Production in 2024 is guided in the range of 20-24,000 boepd, 48% of which is forecast to be liquids
• Operating costs forecast to be stable at $7-$9/boe influenced by liquids processing volume and absolute production levels
• The Company continues to focus on costs with gross G&A expected to reach a year end run rate of <$20m per year, net of remaining restructuring costs
• On the Alam El Shawish (AESW) concession (20% working interest), Capricorn was voted into a 2024 work programme by the joint venture, with a corresponding net capital exposure of $4.3m
• The Company is currently committed to spend a further net ~$10m in 2024 comprised of up to five non-operated exploration wells, including activity to de-risk the Abu Roash F unconventional play. Capricorn intends to seek at least a partial deferment of these expenditures into 2025
• The Company is working with the Operator in Egypt to amend the EGPC concession terms and secure extensions to support increased investment and strengthened returns
• Capricorn expects to complete the acquisition of a 25% WI in the Columbus gas condensate field in Q2 2024*
• The Company is currently seeking to defer amounts due under its remaining contingent obligations related to the acquisition of its Egyptian assets.

*In the event that the acquisition does not complete by the longstop date, Capricorn will receive a payment of $7m.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. The person responsible for arranging the release of this announcement on behalf of Capricorn is Paul Ervine, Company Secretary.

Enquiries:

Analysts/Investors
Nathan Piper, Commercial Director
Tel: [phone]

Media
Diana Milford, Corporate Affairs
Tel: [phone]

Billy Clegg/Owen Roberts, Camarco
Tel: [phone]

Presentation

The results presentation slides will be available on the website from 09:00 UK time.

Analyst conference call

You can listen to the results presentation by dialling in to a conference call at 11:45 UK time using the below dial-in-details. Analysts who wish to ask a question should use the conference call facility.

Dial-in Details:

United Kingdom (Local): [phone]

Access code: Quote 'Capricorn-Full Year' when prompted by operator

Webcast

There will be a live audio webcast of the results presentation available to view on the website (www.capricornenergy.com)at 12:00 UK time. This can be accessed on PC, Mac, iPad, iPhone, and Android mobile devices.

An 'on demand' version of the webcast will be available on the website as soon as possible after the event. This can be viewed on PC, Mac, iPad, iPhone, and Android mobile devices.

Related information

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