Gokul Raj Ponnuraj of Bavaria Industries Group presented his investment thesis on Energean (UK: ENOG) at European Investing Summit 2024, held on October 29-31.
Thesis Summary
Energean is run by a solid owner-operator who has demonstrated smart capital allocation (three value-accretive mergers and acquisitions), along with solid operational execution (development of a large gas field to production).
The company’s core asset generates gas at a very low cost and has a 17-year production runway, supplying to a region with attractive supply-demand dynamics. Unlike several other oil and gas firms, Energean has limited volatility to the commodity price due to fixed long-term contracts.
The recent war in Israel provides an attractive entry point, offering a 10+% regular dividend yield. The firm is also expected to announce a special dividend of 10% and could return 50+% of its market cap over four years.
The recent market quotation may offer a 15+% IRR opportunity with idiosyncratic risks.
Slides
Let’s listen to the full session and look over the transcript, which has been augmented with key figures and tables by our research team.
