Cambo explorer Ithaca Energy closer to IPO
Oil and gas explorer Ithaca Energy, which has an interest in the controversial Cambo field north west of Shetland, is closer to a listing on the main market of the London Stock Exchange.
The company has been considering an initial public offering (IPO) for some months and today unveiled details of its plans. It has been valued at about $6bn and it is thought an IPO would raise about $1bn.
Its portfolio consists of 28 producing field interests in the UKCS, of which Ithaca is the operator of eight fields.
The acquisitions of Chevron’s portfolio in the UK Continental Sherf and Siccar Point Energy gave the group stakes in six of the top ten largest oil and gas fields in the UKCS, including Cambo and Rosebank, two of the largest undeveloped discoveries in the UKCS.
The company said it is committed to production procedures that significantly reduce emissions and exceed industry targets. It has a goal of reducing its CO2 equivalent emissions from its operated assets by 25% in 2025 (against a 2019 baseline).
The medium-term target is to shift to lower emission intensity assets by ceasing production on and decommissioning higher emission intensity assets ,such as FPF-1 and Alba, and bringing on stream lower emission intensity assets such as Rosebank and Cambo.
Ithaca believes the balance between the availability of UKCS acquisition opportunities and competition from other operators has moved in the company’s favour and that it is strongly positioned to continue to lead consolidation due to basin expertise, execution capabilities and a strong financial position.
It has a firm expectation of a dividend in respect of the year ending 31 December 2023 of $400 million with an ambition of an annual dividend of $420 million for the year ending 31 December 2024.
For the six months to the end of June group revenue was c. $1.338 billion.
Gilad Myerson, executive chairman of Ithaca Energy, said: “I am incredibly proud of the transformation Ithaca Energy has undergone over the past three years to become one of the UK’s leading independent oil and gas companies.
“Following the Siccar Point acquisition, Ithaca Energy now has material scale and portfolio longevity, with significant growth opportunities.
“Our strategy is simple – by buying, building and boosting assets we aim to increase value while generating attractive and sustainable returns to shareholders. Our track record of value creation is exceptionally strong and we have a deeply experienced team in place who will continue to deliver.
“Our strategy is aligned with the UK Government’s Energy Security Strategy and we are proud to be investing in the UK at a time when domestic energy security could not be more important.
“I am very excited for what lies ahead and to welcome new shareholders on board as we continue our journey in the public markets.”
Ithaca has been advised by Pinsent Masons’ energy and corporate specialists, led by Glasgow-based global head of oil and gas Rosalie Chadwick.