Ithaca to acquire fellow North Sea player for $224mn
Ithaca Energy, owned by Israeli group Delek, revealed on March 31 it had agreed at the end of February to acquire 100% of fellow UK North Sea player Summit Corp for $224mn.
Ithaca reported in its 2021 financial results that the deal put Summit's enterprise value at $148mn, and also took into account $70mn of cash and other equivalents. Pending regulatory approval, it will be backdated to January 1, 2021.
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Summit earns its revenue from a 2.2% stake in the TotalEnergies-operated Elgin Franklin gas project in the UK North Sea, as well as 1.2% and 0.97% interests in Ineos' SEAL gas and GAEL oil pipeline systems. It also operates the Asagao, K2 and Shinoi exploration prospects with shares of 100%, 50% and 100% respectively, and has 40% interests in the Tangram Energy-operated Charles-Mimas, Eldon and Thunderball exploration prospects.
Ithaca, bought by Delek in 2017 in a $650mn deal, produced 56,500 barrels of oil equivalent/day in 2021, with liquids accounting for 65% of the total. It generated $1bn in EBITDAX during the year.