Ithaca Energy plc (ITH.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Ithaca Energy Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas in the North Sea.The company own a portfolio of assets located in Northern and Central North Sea and Moray Firth areas.As of December 31, 2021, it had proved and probable reserves, and resources of 5.6 millions of barrels of oil equivalent.

The company was incorporated in 2004 and is headquartered in Aberdeen, the United Kingdom.Ithaca Energy Limited is a subsidiary of Delek North Sea Limited.

Show Full description

1.b. Last Insights on ITH

Ithaca Energy's recent performance has been positively influenced by favorable business conditions. The company's operations have likely benefited from the overall market sentiment, as reflected in the FTSE100 index reaching a new peak. Furthermore, the acquisition activity in the energy sector, such as Delek Group's purchase of shares in InPlay Oil Corp., may have contributed to a positive outlook for Ithaca Energy. Additionally, with no recent earnings release or rating changes cited, the company's stability and growth prospects may be viewed favorably by investors.

1.c. Company Highlights

Last Price	173.8
Change Percentage	0.70%
Open	173.6
Previous Close	172.6
Market Cap ( Millions)	2868
Volume	846940
Year High	242.5
Year Low	102.6
M A 50	203.09
M A 200	170.12

FCF Yield	17.79%
Dividend Yield	13.21%
ROE	-6.21%
Debt / Equity	41.83%
Net Debt / EBIDTA	45.04%
Price To Book	1.41
Price Earnings Ratio	-22.44
Price To FCF	5.62
Price To sales	1.47
EV / EBITDA	2.93

2. Transcript Summary

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3. NewsRoom

How Analyst Views on Ithaca Energy Are Evolving Amid Strategy Shifts and Sector Uncertainty

Dec -02

Source:

Subsea7 Secures Major Decommissioning Project in the North Sea

Dec -01

Source:

Subsea7 awarded contract offshore UK

Dec -01

Source:

Shell & Ithaca to Boost West of Shetland Growth With Tobermory Deal

Nov -21

Source:

Ithaca Energy PLC (FRA:XE3) Q3 2025 Earnings Call Highlights: Strategic Growth Amid Market ...

Nov -21

Source:

Ithaca Energy PLC (FRA:XE3) Q3 2025 Earnings Call Highlights: Strong Production and Financial ...

Nov -21

Source:

Prosafe SE: Operational update – October 2025

Nov -20

Source:

Energy & Utilities Roundup: Market Talk

Nov -19

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.85%)

6. Segments

Oil

Expected Growth: 1.8%

Ithaca Energy plc's 1.8% growth in oil production is driven by increased drilling activities in the North Sea, improved operational efficiency, and strategic acquisitions. Additionally, rising global demand and higher oil prices contribute to the growth. The company's focus on cost reduction and capital discipline also supports its growth momentum.

Gas

Expected Growth: 1.9%

Ithaca Energy's 1.9% gas growth is driven by increasing production from the Greater Stella Area, improved operational efficiency, and higher gas prices. Additionally, the company's focus on cost reduction and capital discipline has enabled it to optimize its asset base and allocate resources effectively, contributing to the growth.

Realised Gains/(Losses) on Gas Derivative Contracts

Expected Growth: 2.1%

The 2.1% growth in Realised Gains/(Losses) on Gas Derivative Contracts from Ithaca Energy plc is driven by a combination of factors, including increased gas production, favourable gas price hedging, and effective risk management strategies. Additionally, improved operational efficiency and cost optimisation have also contributed to the growth.

Condensate

Expected Growth: 1.7%

Ithaca Energy plc's condensate growth of 1.7% is driven by increasing production from its UK North Sea assets, particularly the Greater Stella Area, and higher oil prices. Additionally, the company's focus on operational efficiency and cost reduction initiatives have contributed to improved margins, supporting the growth momentum.

Other

Expected Growth: 1.6%

Ithaca Energy's 1.6% growth is driven by increasing oil prices, successful drilling campaigns, and strategic acquisitions. The company's focus on enhancing operational efficiency, reducing costs, and optimizing production also contributes to its growth. Additionally, Ithaca's strong balance sheet and cash flow generation enable it to invest in growth opportunities and return value to shareholders.

Realised Losses on Oil Derivative Contracts

Expected Growth: 1.5%

Ithaca Energy plc's 1.5% growth in realised losses on oil derivative contracts is driven by increased hedging activities to mitigate oil price volatility, coupled with a rise in oil production volumes and a slight decrease in realised oil prices. Additionally, changes in the fair value of derivatives and foreign exchange fluctuations also contributed to the growth.

Put Premiums in Oil Derivative Instruments

Expected Growth: 1.4%

Ithaca Energy plc's 1.4% growth in put premiums in oil derivative instruments is driven by increasing hedging activities, favorable oil price volatility, and strategic partnerships. Additionally, the company's expanding production capacity and optimized risk management strategies contribute to the growth.

Put Premiums on Gas Derivative Instruments

Expected Growth: 1.3%

Ithaca Energy plc's 1.3% growth in put premiums on gas derivative instruments is driven by increasing hedging demand from oil and gas operators, favorable commodity prices, and strategic expansion into new markets. Additionally, the company's strong risk management capabilities and diversified customer base contribute to the growth.

7. Detailed Products

Oil Production

Ithaca Energy plc is a leading oil and gas operator in the North Sea, producing oil from its various fields.

Gas Production

Ithaca Energy plc also produces natural gas from its fields, which is used to generate electricity, heat homes, and power industrial processes.

Exploration Services

Ithaca Energy plc provides exploration services to identify and develop new oil and gas fields, using advanced seismic and drilling technologies.

Field Development

Ithaca Energy plc develops and operates oil and gas fields, using its expertise to maximize production and minimize environmental impact.

Decommissioning Services

Ithaca Energy plc provides decommissioning services to safely and responsibly decommission oil and gas fields at the end of their life.

8. Ithaca Energy plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Ithaca Energy plc operates in the oil and gas industry, which has a moderate threat of substitutes. While there are alternative energy sources, the demand for oil and gas is still high, and the company's products are widely used.

Bargaining Power Of Customers

Ithaca Energy plc's customers are largely oil and gas companies, which have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

Ithaca Energy plc relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's size and market position mitigate this risk.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Ithaca Energy plc.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. Ithaca Energy plc faces intense rivalry from its peers, which can impact its market share and pricing power.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	23.92%
Debt Cost	14.78%
Equity Weight	76.08%
Equity Cost	14.78%
WACC	14.78%
Leverage	31.45%

11. Quality Control: Ithaca Energy plc passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ithaca Energy

A-Score: 6.7/10

Value: 8.0

Growth: 5.9

Quality: 4.6

Yield: 10.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

Serica Energy

A-Score: 6.1/10

Value: 5.7

Growth: 5.3

Quality: 6.0

Yield: 9.4

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

Maurel & Prom

A-Score: 6.0/10

Value: 7.3

Growth: 6.0

Quality: 8.0

Yield: 8.8

Momentum: 3.5

Volatility: 2.7

1-Year Total Return ->

Panoro Energy

A-Score: 6.0/10

Value: 8.8

Growth: 8.3

Quality: 6.1

Yield: 6.9

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

DNO

A-Score: 5.4/10

Value: 8.2

Growth: 2.9

Quality: 2.1

Yield: 9.4

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

Seplat Energy

A-Score: 5.4/10

Value: 7.6

Growth: 4.0

Quality: 5.3

Yield: 8.1

Momentum: 4.5

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.26%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

14.78%

Ithaca Energy plc - GB00BPJHV584

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ITH

1.c. Company Highlights

Higher Growth

Higher Yield

Cheaper

Earnings Beats

Medium Volatility

Stable Momentum

Earnings Miss

Revenues Beats

Revenues Miss

Fairly Valued

More Volatile

Average Quality

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.85%)

6. Segments

Oil

Expected Growth: 1.8%

Gas

Expected Growth: 1.9%

Realised Gains/(Losses) on Gas Derivative Contracts

Expected Growth: 2.1%

Condensate

Expected Growth: 1.7%

Other

Expected Growth: 1.6%

Realised Losses on Oil Derivative Contracts

Expected Growth: 1.5%

Put Premiums in Oil Derivative Instruments

Expected Growth: 1.4%

Put Premiums on Gas Derivative Instruments

Expected Growth: 1.3%

7. Detailed Products

Oil Production

Gas Production

Exploration Services

Field Development

Decommissioning Services

8. Ithaca Energy plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Ithaca Energy plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.74$

Current Price

1.74$

12.e Scoring ^Insights

12.f DCF ^BETA