Israeli gas producer Energean has adjusted its investment strategy over time. Initially, the company focused only on new assets within a three-hour flight from its headquarters in Athens, led by CEO Mathios Rigas. However, they have now broadened their search to a wider area covering three time zones, but their key strategy remains the same: they seek assets that are ready for production.
This strategy would have continued even after a planned sale of some older assets in Egypt, Italy, and Croatia was recently canceled. The sale was supposed to be worth $500 million at closing, with an additional $445 million expected later. These older assets contribute to about 40% of Energean’s total output. With gas prices increasing since the agreement was set, the company is not too disappointed about missing out on the quick cash from this deal.
As a result, Energean will carry higher debt for a while, and investors should not expect any special dividends soon. Nevertheless, analysts are optimistic. “These are solid assets that continuously generate cash, enhancing a robust cash flow profile,” stated David Round from Stifel. He anticipates Energean’s production could reach 171,000 barrels of oil equivalent per day by 2025, along with a projected 16.7% increase in dividends.
Since the end of a closed period following the release of the company’s 2024 results, Energean’s board has been actively purchasing shares. Rigas’s holding company, Growthy, has invested £694,000 in shares, director Stathis Topouzoglou has bought £1.7 million worth, and CFO Panos Benos has acquired shares totaling nearly £300,000. Additionally, two other directors have also spent between £86,000 and £104,000 on shares.