Energean Faces Risk of Terminating Carlyle Deal

Energean plc warns of potential deal termination. The CEO remains focused on strategic options related to asset growth and dividends amidst regulatory hurdles.

Date: 17-03-2025

AI Rating: 4

Regulatory Approval Issues
Energean plc is facing significant challenges regarding its proposed sale of assets in Egypt, Italy, and Croatia to Carlyle International Energy Partners. The company has indicated that critical regulatory approvals have yet to be secured, leading to uncertainty about the deal's completion by the longstop date of March 20. This situation poses a high risk for investors as the sale's potential termination could affect Energean's market position and future revenue streams.

Focus on Business Drivers
Despite these challenges, Energean emphasized its commitment to key business drivers, including reliable dividends and growth. The CEO highlighted the assets' significant growth potential, indicating that they are viewed as high-quality and diversified. However, without the successful execution of the Carlyle transaction, Energean may need to explore alternative strategies to maintain dividend levels and drive growth.

Stocks: EERGF