Neptune Energy Group Midco Ltd.

Overview Key strengths Key risks Low country risk since most activities take place in developed European countries. Exposure to volatile hydrocarbon prices and the capital intensity of the oil and gas industry. Prudent financial policy, with a target of reported net debt to EBITDA plus exploration expenses (EBITDAX) of 1.5x. Ownership by financial sponsors, who might relax the financial policy if the acquisition by Eni International BV (Eni) and Vår Energi ASA (Vår Energi) falls through. Supportive liquidity sources, with access to a sizable reserve-based lending (RBL) facility, and a comfortable debt maturity profile. Substantial capital expenditure (capex) to maintain and expand production due to the natural depletion of reserves. As part of the transaction, Neptune will carve out assets

...We expect Neptune Energy Group Midco Ltd. (Neptune) will cease to exist in its current structure once the sale to Eni and Vsr Energi is complete. As part of the transaction, Neptune will carve out assets in Germany to existing shareholders and sell assets in Norway to Vsr Energi. It will sell the remainder of the business to Eni. Neptune expects to close the transaction in the first quarter of 2024 and has secured a separate 200 million reserve-based lending (RBL)...

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