Ithaca Energy’s shares rose after the British oil and gas producer announced a $200m special dividend.
The announcement follows its merger with Italian energy company Eni's UK assets and a recent $2.25bn refinancing.
The special dividend, scheduled for payment on 20 December 2024, aligns with Ithaca's full-year dividend target of $500m.
During 21 November trading in London, Ithaca Energy shares rose by 9.2% to £1.09, reducing the year-to-date loss to 24%.
The completion of the merger with Eni UK was announced in October 2024 and involved almost all of Eni's upstream assets in the UK, excluding East Irish Sea assets and carbon capture, utilisation and storage activities.
The merger was funded through the issuance of several new ordinary shares to Eni UK, representing 38.5% of Ithaca's enlarged issued share capital.
The merger created a growth-focused entity with the largest resource base in the UK continental shelf (UKCS), with 2P [proved and probable] reserves and 2C [contingent] resources of 632 million barrels of oil equivalent (mboe).
Ithaca Energy executive chairman Yaniv Friedman stated: “The completion of Ithaca Energy’s transformational business combination with Eni UK creates a dynamic growth player with significant organic and inorganic growth optionality, and has been further bolstered by the group’s recent $2.25bn refinancing and higher credit rating, reflecting the immediate benefits to the group of the combination.”
In October 2024, Ithaca Energy completed a $2.25bn refinancing, significantly strengthening its balance sheet and providing funds to support its growth ambitions.
Ithaca also reported that its Rosebank project is progressing as planned, with first production expected in 2026/27.
The project, approved in September 2023, faces legal challenges from environmental groups against the UK government's approval.
In its third-quarter update, Ithaca Energy stated that it is on track to meet its full-year production targets of between 100,000 and 110,000 barrels of oil equivalent per day (boed).
Production is anticipated to reach peak rates of 120,000 boed in the fourth quarter of 2024.
