Energean sells Egypt, Italy, Croatia portfolio to Carlyle for up to $945mn

UK's Energean has entered into a binding agreement for the sale of its portfolio in Egypt, Italy, and Croatia to an entity controlled by Carlyle International Energy Partners for up to $945mn, it announced on June 20.

London-listed Energean expects sufficient cash proceeds at closing to repay in full the $450mn corporate bond and facilitate a special dividend of up to $200mn. The completion of the deal is expected by the end of 2024, subject to customary regulatory and antitrust approvals.

Energean will receive $504mn in upfront cash consideration upon closing of the transaction. This sale enables Energean to rationalise the portfolio and focus on its gas-weighted strategy, underpinned by the Karish field in Israel and the recent farm-in to the Anchois field in Morocco, it said. 

“This transaction unlocks management capacity and financial flexibility to drive future growth,” said CEO Mathios Rigas. “Our focus will now be to create enhanced value from our Israel assets and evaluate new opportunities that fit Energean’s key business drivers: paying a reliable dividend, deleveraging, growth, and our commitment to net zero.”

“We are delighted to acquire this portfolio of high-quality assets in Italy, Egypt, and Croatia, countries that are actively encouraging new gas development, which we believe will play a central role in the energy transition,” Bob Maguire, co-head of Carlyle International Energy Partners, commented.

In 2020, Energean acquired Edison E&P, which included production, development, and exploration assets in Egypt, Italy, and Croatia. Energean’s portfolio of assets in these countries has net working interest 2P reserves of 150mn boe (70% gas).

In light of the deal, the company board will undertake a review of the dividend policy and near-term targets and expects to redefine its dividend policy upon closing of the transaction.