Energean PLC has announced the divestment of its portfolios in Egypt, Italy, and Croatia, selling them to Carlyle International Energy Partners for up to $945 million. This strategic move will allow Energean to focus on its assets in Morocco, especially after its recent farm-in to the Anchois field.

The $945 million enterprise value marks a more than threefold return on the $284 million investment made in 2020. The transaction is expected to be immediately accretive to free cash flow.

Energean plans to utilize the cash proceeds to fully repay the $450 million PLC Corporate Bond and facilitate a special dividend of up to $200 million. The sale is projected to result in at least $7.5 million in annual General & Administrative (G&A) savings.

In a statement, Energean’s CEO, Mathios Rigas, emphasized the strategic advantages of the sale. “This deal represents an exciting new chapter for Energean. Today, we have realized a significant return on our investment and have taken a major step forward in our strategy to focus on our gas-weighted, gas-development assets, particularly in Morocco,” said Rigas.

“This transaction underscores our commitment to maximizing value for shareholders and maintaining disciplined capital allocation,” he added.

The sale will enable Energean to rationalize its portfolio, focusing on gas-development projects like the Karish field in Israel and the Anchois field in Morocco. The company will divest later-life assets, reducing over 60% of the Group’s decommissioning liabilities and improving short- to medium-term free cash flow.

Additionally, the sale will allow the company to reduce its scope 1 and 2 emissions intensity by around 40%, accelerating its 2035 target by ten years.

Energean also disclosed plans to maintain and expand its presence in the Mediterranean and the broader Europe, Middle East, and Africa (EMEA) region, particularly in areas with strong policy support for gas and coal displacement. The company aims to create a carbon storage hub in Greece and the wider Mediterranean region through its EnEarth subsidiary.

“This transaction unlocks management capacity and financial flexibility to drive future growth,” Rigas stated. “Our focus will now be to create enhanced value from our Israel assets and evaluate new opportunities that align with our key business drivers: reliable dividend payment, deleveraging, growth, and our commitment to Net Zero.”

Energean’s strategic pivot towards Morocco underscores its commitment to leveraging gas development to drive future growth and sustainability.