Energean Israel 1Q 2026 Accounts

AS OF 31 MARCH 2026

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ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

THREE MONTHS ENDED 31 MARCH 2026

Other comprehensive income (loss) :

Items that may be reclassified subsequently to profit or loss:

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

ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF 31 MARCH 2026

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

ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

THREE MONTHS ENDED 31 MARCH 2026

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

ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED 31 MARCH 2026

Adjustments to reconcile profit 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 these unaudited 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 One Great Cumberland Place, London, W1H 7AL.
• The Company and its subsidiaries (the "Group") have been established with the objective of the exploration, production and commercialisation of natural gas and hydrocarbon liquids. The Group's main activities are performed in Israel by its Israeli Branch.
• As of 31 March 2026, the Company had investments in the following subsidiaries:

The Group's core assets as of 31 March 2026 comprised:

• 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 consolidated 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 31 March 2026. 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 2025.

These financial statements are presented in U.S. Dollars and all values are rounded to the nearest thousand dollars except where otherwise indicated.

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

The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in preparing the Group's annual consolidated financial statements for the year ended 31 December 2026 which are the same as those used in preparing the annual consolidated financial statements for the year ended 31 December 2025.

The directors consider it appropriate to adopt the going concern basis of accounting in preparing these interim consolidated financial statements. The Going Concern assessment covers the period up to 30 June 2027, "the forecast period".

Since 7 October 2023, regional geopolitical risk has remained elevated. The intensification of tensions in the Middle East has increased the security risks to essential infrastructure, including the Energean Power FPSO offshore Israel, which may be exposed to missile fire or sabotage. Any event affecting production from the Karish and Karish North fields could have a material adverse impact on the Group's business, results of operations, cash flows, financial condition and prospects.

On 28 February 2026, the Ministry of Energy and Infrastructure ordered the temporary suspension of production and activities of the Energean Power FPSO following further escalation of geopolitical tensions in the region. On 9 April 2026, 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 those instructions. Production of the Energean Power FPSO was resumed and the FPSO became fully operational on 10 April 2026.

Throughout 2026 and subsequent to the reporting period, Energean has maintained all necessary measures to support the continuity of business operations (subject to any governmental instructions), including the mobility of its people and the security of its information.

NOTE 3: - Revenues

• Sales gas for three months ended 31 March 2026 totaled approximately 0.96 bcm (billion cubic metres) and for three months ended 31 March 2025 totaled approximately 1.19 bcm.
• Sales from hydrocarbon liquids for three months ended 31 March 2026 totaled approximately 532 kbbl (kilo barrel) and for three months ended 31 March 2025 totaled approximately 1,042 kbbl.

See also Note 2 regarding the temporary suspension of production of the Energean Power FPSO.

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 licence for Block 21 expired on 13 January 2025. Capitalized costs associated with Block 21 were written off. (Refer to Note 8)
• The amount of US$9.5 million relates to insurance compensation due to remedial work on auxiliary piping systems.

NOTE 5: - Net finance costs

NOTE 6: - Taxation

Corporate Tax rates applicable to the Company:

Israel:

The Israeli corporate tax rate is 23% in 2026 and 2025.

United Kingdom:

The Group's taxable profits arise in Israel through the Israeli branch and are taxed at the Israeli statutory tax rate of 23%. No material taxable income was generated at the UK parent entity level.

NOTE 6: - Taxation (Cont.)

• The Income and Natural Resources Taxation Law, 5771-2011 - Israel- the main provisions of the law are as follows:

In April 2011, the Knesset passed the Income and Natural Resources Tax Law, 5771-2011 ("the Law"), introducing an oil and gas profits levy at a rate calculated as described. 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 the rate of the levy as stated will be reduced starting in 2017 by multiplying 0.64 by the difference between the corporate tax rate prescribed in section 126 of the Income Tax Ordinance for each tax year and the tax rate of 18%. In accordance with the corporate tax rate from 2018 onwards, the maximum rate will be 46.8%.

In addition, 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); Payment by the owner of an oil right calculated as

a percentage of the oil produced, the recipient of the payment will be liable to pay a levy according to the amount of the

payment received, and this amount will be subtracted from the amount of the levy owed by the holder of the oil right. The law also sets rules for the unification or separation or consolidation of oil projects for the purposes of the Law. In accordance with the provisions of the Law, the Group is not yet required to pay any payment 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 & gas assets in Q1 2026 mainly relate to the Katlan development.

Second oil train lift safely and successfully performed in Q4 2024; commissioning activities are ongoing and are expected to complete by around the end of May, which will result in an increase in liquids' production capacity.

Borrowing costs capitalised for qualifying assets during the year are calculated by applying a weighted average interest rate of 7.89% for the period ended 31 March 2026 (for the year ended 31 December 2025: 7.02%).

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:

The additions to other intangible assets in Q1 2026 are mainly related to Nitzana pipeline, see note (1) below.

• Nitzana transmission agreement- In October 2025, the company signed a transmission agreement with Israel Natural Gas Lines Ltd. ("INGL") for capacity in the Nitzana pipeline. The agreed terms in the transmission agreement are for the supply of up to 1 bcm/year up to 6 bcm total contracted supply for a 15-year period, with provisions for extensions and early termination. The terms also include rights, during the construction phase, to access available capacity in the Jordan-North pipeline. Nitzana is expected to be operational no later than Q4 2028.

The Company's 16.4% share of the construction costs for the pipeline and compression station is expected to be approximately US$100 million (excludes contingency amounts, which may add up to an additional 12%, as per the transmission agreement) and will primarily be funded via the Unsecured Term Loan. Refer to note 16 below. During the fourth quarter of 2025, approximately US$50 million was paid, representing approximately 50% of the total expected investment. The remaining investment will be made in accordance with the milestones set out in the agreement with INGL. Subsequent to the reporting date, during the second quarter of 2026, an additional approximately US$10 million was paid, representing approximately 10% of the total expected investment.

As the Group does not obtain ownership of, or control over, the physical pipeline asset, but instead acquires a contractual right to access defined transportation capacity for a period of 15 years, the arrangement has been recognised as an intangible asset in accordance with IAS 38. The asset will be amortised on a straight-line basis over the 15-year access period from the date the pipeline becomes operational.

NOTE 8: - Intangible Assets (Cont.)

Cash flow statement reconciliations:

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

• Additional information regarding the Exploration and Evaluation assets:

As of 31 March 2026, 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

The Group is subject to corporation tax on its taxable profits in Israel at the rate of 23%. The Capital Gain Tax rates depends on the purchase date and the nature of asset. The general capital tax rate for a corporation is the standard corporate tax rate.

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 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 is approximately US$5 million and is expected to be received in 2026.

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. completed the offering of US$750 million aggregate principal amount of the Notes with a fixed annual interest rate of 8.5%. The proceeds were used mainly to repay Energean Israel's US$625 million Notes series due in March 2024. On 21 September 2025, Energean Israel Finance Ltd redeemed in full the US$625 million Notes series due in March 2026, see below disclosure regarding the US$750 Million Secured Term Loan. As of 31 March 2026, the group has three Senior secured notes series of the total amount of US$2,000 Million.

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 purpose of Term Loan was to refinance its 2026 senior secured notes and provide additional liquidity for the Katlan development. Up to US$475 million is in US dollars and up to US$275 million is in New Israeli Shekel. The Term Loan bears a floating interest rate of SOFR plus a margin on the USD component and the Bank of Israel (BOI) rate plus a 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.

As of 31 March 2026, Energean Israel Finance Ltd drew down the full US$750 million amount of the Term Loan.

US$70 Million Unsecured Term Loan:

In October 2025, the Company signed an unsecured term loan facility agreement with a banking corporation in Israel for US$70 million ("Unsecured Term Loan"), to fund the development of the Nitzana pipeline (see note 8(1)). The Unsecured Term Loan bears a floating interest rate of SOFR plus a margin and non-utilization fee.

During October 2025, the Company drew US$33.2 million from the above facility loan and US$36.2 million was drawn as a letter of credit in favor of INGL.

Composition:

NOTE 12: - Borrowings (Cont.)

The interest on each series of the Notes and loans 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").

With regards to the indenture document, signed on 24 March 2021 with HSBC BANK USA, N.A (the "Trustee"), no indenture default or indenture event of default has occurred and is continuing.

Collateral:

The Company has provided/undertakes to provide the following collateral in favor of HSBC BANK USA, N.A, which serves as the "Collateral Agent" under both the Notes and the Term Loan:

• The Energean Power FPSO.

Restricted cash:

As of 31 March 2026, the Company had short-term restricted cash of US$2.2 million (31 December 2025: US$97.6 million), which will be used for the September 2026 interest payment.

Credit rating:

The senior secured Notes have been assigned a Ba3 rating by Moody's and a BB- rating by S&P Global.

NOTE 13: - Trade and other payables

(1) The amount includes 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$210 million of the consideration will be paid in 12 equal quarterly deferred payments started in March 2024 and as such has been discounted at 8.67% per annum (being the yield rate of the senior secured loan notes, maturing in 2026, as at the date of agreeing the payment terms). As of 31 March 2026, nine installments have been paid and the remaining outstanding payable amounted to US$ 50.5 million (2025: US$67.1 million).

(2) The amount mainly comprises of royalties payables to the Israel government and third parties with regards to the Karish Lease, including US$5.7 million (2025: US$13.1 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 SPA )Sale and Purchase Agreement( 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 14: - Equity

Interim dividends:

Dividends of US$39.0 million were declared and paid during Q1 2026 (Q1 2025: US$67.6 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 estimated by discounting future cash flows by the relevant market yield curve at the balance sheet date. The Bank loans bears floating interest rates reset periodically to current market rates and its carrying amount is therefore considered to approximate its fair value. The fair values of other financial instruments not measured at fair value includes cash and short-term deposits, trade receivables and trade and other payables equate approximately to their carrying amounts.

Cash Flow Hedging

In February 2024, the Group entered into a forward transaction to hedge against foreign currency volatility risk associated with its deferred payment to EPCIC contractor. In addition, in January 2025 the Group entered into the forward contracts with a bank in Israel to manage the foreign currency risk related to EUR, NOK and GBP payments to suppliers under the Katlan EPCI contract. The forward contracts are subject to different maturity dates and are designed to match the Katlan Subsea development milestones completion payments 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 31 March 2026, the Group recorded a derivative asset of US$17.3 million, and other comprehensive loss of US$3.6 million, during the reporting period (31 December 2025, the Group recorded a derivative asset of US$25.6 million, and other comprehensive income of US$13.2 million during Q1 2025).

Financial risk management objectives

In addition to the risks discussed in the consolidated annual financial statements, due to the Term Loan (refer to note 12), the Company has some exposure to interest rate risk. The management carefully considers the future impact of the floating interest fluctuation and will consider mitigation plans as needed and implement accordingly.

NOTE 16: - Subsequent events

Production of the Energean Power FPSO was restored and the FPSO became fully operational on 10 April 2026. For more details see Note 2.