Energean Israel Half Year 2025 Accounts

AS OF 30 JUNE 2025

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INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SIX MONTHS ENDED 30 JUNE 2025

The accompanying notes are an integral part of the interim consolidated financial statements.

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF 30 JUNE 2025

The accompanying notes are an integral part of the interim consolidated financial statements.

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SIX MONTHS ENDED 30 JUNE 2025

The accompanying notes are an integral part of the interim consolidated financial statements.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS PERIOD ENDED 30 JUNE 2025

Adjustments to reconcile income before taxation to net cash: provided:by: operating activities:

• An interim dividend of US$28.25 million was declared in May 2025 and was settled through the offset of a loan to the parent company, including accrued interest.

The accompanying notes are an integral part of the interim consolidated financial statements.

NOTE 1: GENERAL

• Energean Israel Limited (the "Company") was incorporated in Cyprus on 22 July 2014 as a private company with limited liability under the Companies Law, Cap. 113. As of 1 January 2024, the Company is tax resident in the UK by virtue of having transferred its management and control from Cyprus to the UK, with its registered address being at Accurist House, 44 Baker Street, London, Q1U 7AL.
• As of 30 June 2025, the Company had investments in the following subsidiaries:

• The Group's core assets as of 30 June 2025 were comprised of:

• The concession agreement expires in 2044.
• The concession agreement expires in 2054.
• Refer to Note 8.

NOTE 2: Accounting policies and basis of preparation

The interim financial information included in this report has been prepared in accordance with IAS 34 "Interim Financial Reporting". The results for the interim period are unaudited and, in the opinion of management, include all adjustments necessary for a fair presentation of the results for the period ended 30 June 2025. All such adjustments are of a normal recurring nature. The unaudited interim consolidated financial statements do not include all the information and disclosures that are required for the annual financial statements and must be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2024.

NOTE 2: Accounting policies and basis of preparation (Cont.)

Israel geopolitical environment - Energean highlights the following as important in relation to its principal risks. Since 7 October 2023, and the ongoing conflict in Israel, the magnitude of regional geopolitical risk remains elevated. Concerns of escalations in the Middle East have intensified the security risk in the region, as essential infrastructure systems (such as the Energean Power FPSO offshore Israel) may be targets for missile fire and sabotage operations. Any event that impacts production from these fields could have a material adverse impact on the business, results of operations, cash flows, financial condition and prospects of the Group. On June 13, 2025, the Ministry of Energy and Infrastructure ordered the temporary suspension of production and activities of the Energean Power FPSO, following geopolitical escalation in the region at the time of the notice. On June 25, 2025, the Ministry of Energy and Infrastructure instructed the safe restart and resumption of production and operations of the Energean Power FPSO, and Energean acted in accordance with the instructions. Apart from that temporary suspension, the Karish and Karish North fields have continued to produce with no disruption since the start of the conflict. In the first half of 2025, Energean has ensured that all measures are in place to continue business operations, maintain the mobility of its people and make certain that the security of information is unaffected.

New and amended accounting standards and interpretations:

The following amendments became effective as of 1 January 2025 and have been applied in the preparation of these consolidated financial statements

• Amendments to IAS 21- Lack of exchangeability.

NOTE 3: Revenues

• Sales gas for six months ended 30 June 2025 totaled approximately 2.3 bcm (billion cubic metres) and for six months ended 30 June 2024 totaled approximately 2.5 bcm.
• Sales from hydrocarbon liquids for six months ended 30 June 2025 totaled approximately 2,057 kbbl (kilo barrel) and for six months ended 30 June 2024 totaled approximately 2,686 kbbl.

NOTE 4: Operating profit before taxation

• Other operating costs comprise of insurance costs and planned maintenance costs.
• The Administration expenses mainly consist of legal expenses, intercompany management fees and external advisors' fees.
• The amount of US$9.5 million relates to insurance compensation due to remedial work on auxiliary piping systems.

NOTE 5: Net finance expenses /(income)

• US$343 thousand included in intangible assets additions (See note 8) and US$198 thousand included in Oil and gas assets additions (See note 7).

NOTE 6: Taxation

Corporate Tax rates applicable to the Company:

Israel:

The Israeli corporate tax rate is 23% in 2025 and 2024.

United Kingdom:

In April 2011, the Knesset passed the Income and Natural Resources Tax Law, 5771-2011 ("the Law"). The imposition of oil and gas profits levy at a rate to be set as set out below. The rate of the levy will be calculated according to a proposed R factor mechanism, according to the ratio between the net accrued revenues from the project and the cumulative investments as defined in the law. A minimum levy of 20% will be levied at the stage where the R factor ratio reaches 1.5, and when the ratio increases, the levy will increase gradually until the maximum rate of 50% until the ratio reaches 2.3. In addition, it was determined that as from 2017 the maximum rate of the levy as stated will be reduced by multiplying 0.64 with the difference between the corporate tax rate prescribed in section 126 of the Income Tax Ordinance for each tax year and the rate of 18%.

NOTE 6: Taxation (Cont.)

Additional provisions were prescribed regarding the levy, inter alia: the levy will be recognised as an expense for the purpose of calculating income tax; the limits of the levy shall not include export facilities; the levy will be calculated and imposed for each reservoir separately (ring fencing).

In accordance with the provisions of the Law, the Group is not yet required to pay any amount in respect of the said levy, and therefore no liability has been recognised in the financial statements in respect of this payment.

Taxation charge:

• The additions to oil and gas assets for the period of six months ended 30 June 2025 mainly relates to Katlan development. In February 2024, Karish North first gas was achieved and the second gas export riser was completed. The second oil train lift safely and successfully performed in Q4 2024; commissioning activities are ongoing and are expected to complete in late Q4 2025, which will result in an increase in liquids production capacity.
• Final Investment Decision ("FID") for Katlan was made in July 2024, and the concession agreement was granted in the same month, it expires in 2054. Refer to note 8 for further details.
• Borrowing costs capitalised for qualifying assets during the year are calculated by applying a weighted average interest rate of 5.34% for the period ended 30 June 2025 (for the year ended 31 December 2024: 3.93%).
• The lease modification pertains to the termination of vessel lease in May 2025.

NOTE 7: Property, Plant and Equipment (Cont.)

• Depreciation expense for the year has been recognised as follows:

• Details of the Group's rights in petroleum and gas assets are presented in note 1.

NOTE 8: Intangible Assets

Composition:

(*) Katlan Final Investment Decision

In July 2024, the Ministry of Energy and Infrastructure granted the Company a 30-year concession for the Katlan area including a 20-year extension option. Following this, Energean announced in July 2024 that it had taken FID for the Katlan development project in Israel. The Katlan area is being developed in a phased approach through a subsea tieback to the existing Energean Power FPSO. First gas is planned for H1 2027. The EPCI (Engineering, Procurement, Construction and Installation) contract for the subsea scope was awarded to Technip FMC.

Cash flow statement reconciliations:

NOTE 8: Intangible Assets (Cont.)

Details on the Group's rights in the intangible assets:

• Additional information regarding the Exploration and Evaluation assets:

As of 30 June 2025, the Group holds two licences to explore for gas and oil, Block 23 and Block 31, which are located in the economic waters of the State of Israel. In January 2025 the licences for Blocks 23 and 31 were extended until 13 January 2027.

The licence for Block 21 was not extended and expired on 13 January 2025.

NOTE 9: Deferred taxes

Tax losses can be utilised for an unlimited period, and tax losses may not be carried back.

Below are the items for which deferred taxes were recognised:

• The balance relates mainly to the final amount related the agreement with Israel Natural Gas Lines ("INGL") for the transfer of title (the "Hand Over") of the near shore and onshore segments of the infrastructure that delivers gas from the Energean Power FPSO into the Israeli national gas transmission grid of approximately US$5 million in total and is expected to be received in H2 2025.

NOTE 11: Inventories

NOTE 12: Borrowings

Senior secured notes (the "Notes"):

On 24 March 2021 (the "Issue Date"), Energean Israel Finance Ltd (a 100% subsidiary of the Company) issued US$2,500 million of senior secured notes. The proceeds were primarily used to prepay in full the Project Finance Facility.

On 11 July 2023, Energean Israel Finance Ltd. Ltd completed the offering of US$750 million aggregate principal amount of the Notes with a fixed annual interest rate of 8.500%. The proceeds were used mainly to repay Energean Israel's US$625 million Notes series due in March 2024. Redemption date for full principal amount of the $625 million 2026 Senior secured notes scheduled for September 21, 2025.

US$750 Million Term Loan:

In February 2025 Energean Israel Finance Ltd signed a 10-year, senior-secured term loan with banking corporation in Israel as the facility agent and arranger for US$750 million (the "Term Loan" and the "Term Loan Agent", respectively). The Term Loan will be available to repay its 2026 senior secured notes series and to provide additional liquidity for the Katlan development. It has a 12-month availability period, during which multiple drawdowns can be made. Up to US$475 million is available in US dollars and up to US$275 million is available in New Israeli Shekel. The Term Loan is bearing floating interest SOFR plus margin on the USD component and Bank of Israel (BOI) plus margin on the ILS component. The Term Loan is secured on the assets of the Group (including the Company's shares), pari passu with the senior secured Notes, non-recourse to Energean plc and has a bullet repayment in 2035 (refer to note 12(d) for related collaterals).

During Q1 2025, Energean Israel Finance Ltd drew US$75 million from the above facility.

Composition:

The interest on each series of the Notes and loan is paid semi-annually, on 30 March and on 30 September of each year.

The Notes are listed on the TACT Institutional of the Tel Aviv Stock Exchange Ltd. ("TASE").

• Collateral:
• The Energean Power FPSO.

NOTE 12: Borrowings (Cont.)

As of 30 June 2025, the Company had short-term restricted cash of US$83.26 million (31 December 2024: US$82.43 million), which will be used mainly for the September 2025 interest payment.

NOTE 13: Trade and other payables

(1) The amount mainly comprises of royalties payables to the Israel government and third parties with regards to the Karish Lease, including US$9.3 million (2024: US$12.9 million) of royalties payable to third parties. Contractual royalties are payable to third-party holders at a total rate of 7.5%, increasing to 8.25% after the date at which the lease in question starts to pay the oil and gas profits levy. The royalty payable to third-party holders under the Sale Purchase Agreement (SPA( is calculated on the value of the total amount of natural gas and condensate produced at the wellhead without any deduction (except for natural gas and Petroleum (as defined under the Petroleum Law) used in the production process). No contractual royalties under the SPA will be payable on future discoveries that were not part of the original acquisition of the Karish and Tanin leases.

NOTE 13: Trade and other payables (Cont.)

• The amount represents a long-term amount payable in terms of the EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) contract to Technip. According to the agreement with the EPCIC contractor, the last US$210 million of the consideration is payable in 12 equal quarterly deferred payments beginning in March 2024 and as such has been discounted at 8.67% per annum (being the yield rate of the senior secured loan notes, maturing in 2026, as at the date of agreeing the payment terms). As of 30 June 2025, 6 installments have been paid.

NOTE 14: Equity

Interim dividends:

During the reporting period dividends of US$95.85 million were declared and paid (2024: US$150.5 million).

NOTE 15: Financial Instruments

Fair Values of other financial instruments

The fair value of the Senior Secured Notes is within level 1 of the fair value hierarchy and has been determined with the reference to market prices at the reporting date.

The fair values of other financial instruments not measured at fair value, including cash and short-term deposits, trade receivables, trade and other payables and the Term Loan which equate approximately to their carrying amounts.

Cash Flow Hedging

In addition to the hedging agreements described in the 2024 annual consolidated financial statements, in February 2025 the Group entered into a forward transaction to hedge against foreign currency volatility risk associated with its forecasted payment to the EPCI contractor for its Katlan development. The forward contracts are subject to different maturity dates and are designed to match the payments for completion of Katlan Subsea development milestones under the host contract. Multi-currency instruments are effective from April 2025 to August 2027.

The hedge relationship was deemed effective at inception, and in accordance with the Group's accounting policy, the transaction was subject to cash flow hedge accounting.

Consequently, as of 30 June 2025, the Group recorded a derivative asset of US$37.16 million, and other comprehensive income of US$28.88 million, during the reporting period (31 December 2024, the Group recorded a derivative liability of US$0.3 million, and other comprehensive income of US$0.3 million during 2024).

Financial risk management objectives

In addition to the risks discussed in the consolidated annual financial statements, due to the new term Loan obtained in March 2025 (refer to note 12(b)), the Company became exposed to interest rate risk. The Group carefully considers the future impact of the floating interest fluctuation and will consider mitigation plans as needed and implement accordingly.

NOTE 16: Significant events and transactions during the reporting period

a. Approximately US$2 billion binding term sheet signed with Dalia Energy Companies Ltd in January 2025 for gas sales in Israel. The agreed terms are for the supply of up to 0.1 bcm/year from April 2026, rising to up to 0.5 bcm/year from around January 2030 and then approx. 1 bcm/year from June 2035 till 2044 with potential extension, and excludes supply in the summer months (between June to September) between 2026-2034. The binding term sheet contains provisions regarding floor pricing, take or pay and price indexation linked to CPI (not Brent-price linked). The terms agreed are in line with the other material, long-term contracts within the Company portfolio.

b. The Company has signed a Gas Sale and Purchase Agreement ("GSPA") with Kesem Energy Ltd ("Kesem"). The contract is for the supply of gas to Kesem's new power plant, which is estimated to be operational before the end of the current decade. The contracted supply is approx. 1 bcm/year from around the middle of the 2030s with limited quantities of gas supplied intermittently before then. The contract represents over US$2 billion in revenues and approx.12.5 bcm in contracted supply over the approx. 17-year period. The contract contains provisions regarding floor pricing, take or pay and price indexation (not Brent-price linked). The terms of GSPA are in line with the other material, long-term contracts within the Company portfolio.

• On June 13, 2025, Energean received notice from the Ministry of Energy and Infrastructure ordering the temporary suspension of production and activities of the Energean Power FPSO, following the geopolitical escalation in the region at the time of the notice. On June 25, 2025, Energean received notice from the Ministry of Energy and Infrastructure, instructing the safe restart and resumption of production and operations at its Energean Power FPSO. Energean acted in accordance with the Ministry of Energy and Infrastructure's instructions. For more details see Note 2.