Energean Israel Half Year 2026 Accounts

AS OF 30 JUNE 2026

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ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SIX MONTHS ENDED 30 JUNE 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 30 JUNE 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

SIX MONTHS ENDED 30 JUNE 2026

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

ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED 30 JUNE 2026

Adjustments to reconcile profit before taxation to net cash provided by:

• See note 2(c) for the reclassification of restricted cash movements from investing to financing activities.

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 30 June 2026, the Company had investments in the following subsidiaries:

The Group's core assets as of 30 June 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

a. 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 30 June 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.

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.

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

• 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 31 December 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 at the time of the notice. 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.

The going concern assessment is based on a Board-approved cashflow forecast covering a "Base Case" and a "Reasonable Worst Case" ("RWC") scenario, with additional stress tests on production, pricing, and a prolonged suspension of Israeli production due to geopolitical risk, taking into account the Group's latest production forecasts, budgeted expenditure, forward commodity price curves and headroom under its debt facilities. Under both the Base Case and, after mitigation, the RWC, sufficient liquidity is maintained throughout the assessment period, including under the prolonged production suspension scenario, which the Board considers remote but has nonetheless modelled across the full horizon with adequate liquidity and covenant headroom maintained throughout. Reverse stress testing confirms that the conditions required to eliminate liquidity headroom are remote, with prudent mitigating strategies available within the necessary timeframe if required.

After careful consideration, the Directors are satisfied that the Group has sufficient financial resources to continue in operation for the foreseeable future, for the assessment period from the date of approval of these unaudited interim consolidated financial statements to 31 December 2027. For this reason, they continue to adopt the going concern basis in preparing these financial statements.

c. From H1 2026, the Group has changed the presentation of movements in restricted cash relating solely to debt servicing (specifically, cash restricted under the terms of the senior secured notes ahead of scheduled coupon payments) from investing activities to financing activities in the Statement of Cash Flows. Previously, such movements were presented within investing activities as a movement between cash and cash equivalents and restricted cash. The Group considers this change provides more relevant and reliable information, as the restriction has no substance separate from the financing activity - debt servicing - that it supports, and better reflects the nature of the underlying cash flow. In accordance with IAS 8, the comparative period has been restated. There is no impact on total net increase/decrease in cash and cash equivalents, profit for the period, or the Statement of Financial Position for any period presented.

NOTE 3- Revenues

NOTE 3- Revenues (Cont.)

• Sales gas for six months ended 30 June 2026 totaled approximately 2.13 bcm (billion cubic meters) and for six months ended 30 June 2025 totaled approximately 2.29 bcm.
• Sales from hydrocarbon liquids for six months ended 30 June 2026 totaled approximately 1,878 kbbl (kilo barrel) and for six months ended 30 June 2025 totaled approximately 2,057 kbbl.

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

NOTE 4- Operating profit

• Other general & administrative expenses mainly refer to legal expenses, intercompany management fees and external advisors' fees.

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 H1 2026 mainly relate to the Katlan development.

Subsequent to the reporting date, the second oil train on the Energean Power FPSO was safely commissioned on 13 July 2026, resulting 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 7.46% for the period ended 30 June 2026 (for the year ended 31 December 2025: 7.02%).

• 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 H1 2026 are mainly related to Nitzana pipeline.

NOTE 8- Intangible Assets (Cont.)

For further information regarding Nitzana transmission agreement refer to note 11 to the annual financial statements for the year ended 31 December 2025. As of 30 June 2026, approximately US$62 million had been paid, representing approximately 60% of the total expected investment. The remaining investment will be made in accordance with the milestones set out in the agreement with INGL.

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

As of 30 June 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, and remain effective until 13 January 2027.

NOTE 9- Deferred taxes

The Group is subject to corporation tax on its taxable profits in Israel at the rate of 23%. Capital gains tax rates depend on the purchase date and the nature of the 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:

NOTE 12- Borrowings

Senior secured notes (the "notes"):

As of 30 June 2026, the Group has three senior secured notes series with an aggregate principal amount of US$2,000 million, issued by Energean Israel Finance Ltd (a 100% subsidiary of the Company) there have been no changes to the composition of the notes since 31 December 2025.

NOTE 12- Borrowings (Cont.)

US$750 million Term Loan:

Energean Israel Finance Ltd holds a 10-year, senior-secured term loan with a banking corporation in Israel as the facility agent and arranger for US$750 million (the "Term Loan"), which used for refinance its 2026 senior secured notes and provided additional liquidity for the Katlan development. The Term Loan is secured on the assets of the Group (including the Company's shares), non-recourse to Energean plc and has a bullet repayment in 2035. As at 30 June 2026, the Term Loan was fully drawn (US$750 million), unchanged since 31 December 2025.

US$70 million Unsecured Term Loan:

The Company has 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(a)). As at 30 June 2026, US$33.2 million had been drawn under the facility and US$36.2 million was drawn as a letter of credit in favor of INGL, unchanged since 31 December 2025.

Composition:

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 30 June 2026, the Company had short-term restricted cash of US$1.9 million (31 December 2025: US$97.6 million), which will be used for the September 2026 interest payment.

NOTE 12- Borrowings (Cont.)

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 payables relating to the EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) contract to Technip. According to the agreement with the EPCIC contractor, the last US$210 million of the consideration will be paid in 12 equal quarterly deferred payments started in March 2024 and as such has been discounted at 8.67% per annum (being the yield rate of the senior secured loan notes, matured in 2026, as at the date of agreeing the payment terms). As at 30 June 2026, 10 installments have been paid and the remaining outstanding payable is US$ 34 million (2025: US$67 million).

(2) The amount mainly comprises royalties payable to the Israeli government and third parties with regards to the Karish Lease, including US$13.1 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 H1 2026 (H1 2025: US$95.85 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. 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

The Company's cash flow hedge relationships during the six months ended 30 June 2026 comprised the following:

Foreign exchange risk - capital expenditure

In January 2025 the Group entered into 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 and 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.

Commodity price risk

During the period, Energean plc entered into Brent crude oil derivative contracts to hedge the price exposure on a single cargo of the Company's liquids production. The economic benefit of these hedging arrangements was passed through to the Company under corresponding intercompany arrangement, and the hedge relationship is reflected in these financial statements on that basis.

The Group is holding the following foreign exchange forward contracts on 30 June 2026:

NOTE 15- Financial Instruments (Cont.)

The impact of hedging instruments on the interim consolidated statement of financial position is as follows:

The effect of the cash flow hedge in the interim consolidated statement of profit or loss and other comprehensive income is as follows:

No hedge ineffectiveness was recognised in profit or loss during the reporting period.

Set out below is the summary of changes to the cash flow hedge reserve during the reporting period:

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

• Commissioning of the second oil train on its Energean Power FPSO was safely completed on 13 July 2026, expanding the Energean Power FPSO's total liquids processing capacity.
• Post-period end, in September 2026, the Company signed a new GSPA with Sorek Energy Power Plant Ltd ("Sorek"). The contract is for the supply of gas to Sorek's new H-class power station, which is estimated to be operational in late 2029.

The GSPA is for a term of approximately 15 years for a total contracted quantity of up to approximately 7.7 bcm, representing approximately $1.4 billion in revenues over the life of the contract. The GSPA is for the supply of up to 0.5 bcm/yr once the Sorek is operational, expected from around the end of 2029, rising to up to 0.6 bcm/yr from September 2035 onwards, and includes interruptible volumes during the summer months between late 2029-2035. The contract contains provisions regarding floor pricing, take-or-pay and price indexation and has been signed at terms in line with Energean's other large, long-term gas contracts.