Delek Group is an independent E&P and the pioneering visionary behind the development of the East Med. With major finds in the Levant Basin, including the Leviathan (21.4 TCF) and Tamar (11.2 TCF) reservoirs and others, Delek is leading the region’s development into a major natural gas export hub. In addition, Delek has embarked on an international expansion with a focus on high-potential opportunities in the North Sea and North America. Delek Group is one of Israel’s largest and most prominent companies with a consistent track record of growth. Its shares are traded on the Tel Aviv Stock Exchange (TASE:DLEKG) and are part of the TA 35 Index.
DELEK GROUP'S E&P ACTIVITIES - THE VAST MAJORITY OF DELEK GROUP'S NAV IS DRIVEN BY ITS E&P BUSINESS.
* Publicly traded assets - based on market value as of Sept. 2017. Private assets - Based on the average value published by the sell-side analysts covering the Delek Group
LEVIATHAN (21.4 TCF)
Delek Group's visible growth driver for the next decade. The largest energy project in Israel's history, Leviathan achieved its FID in February 2017, and it is on track for producing its first gas by the end of 2019. The gas produced from Leviathan is intended to be sold to both domestic and export markets. It is projected that operating cash flow for the first year following Leviathan's start up will be at least USD 650 million net.
FID for Leviathan achieved in February 2017
1st gas by end of 2019
TAMAR (11.2 TCF)
Tamar (11.2 TCF) – expansion and divestment. Tamar, Israel's sole source of natural gas, has been producing since 2013 with a reliability of over 99%. It will continue to be a sustainable cash-net back source for Delek Group and a generator of significant cash flow until it is fully divested, as required, by 2021. To maximize Tamar's value, Delek and its partners are evaluating the option of expanding the project to increase its capacity.
Production 2016 net to Delek Group: 30K boe/d
Tamar natural gas reservoir: Methanol >99%; Permeability >99%
With the goal of expanding and accelerating its growth, Delek Group has begun establishing an international arm with operational capabilities focused on the North Sea and North America. The first step towards achieving this goal was the acquisition of Ithaca Energy.
Ithaca Energy – oil and gas operator focused on North Sea E&P activities; Greater Stella Area began production in February 2017.
Newfoundland – a partnership in which Delek Group owns a 70% working interest bid on and won a license to operate Block 7 in Newfoundland, Canada.
Delek Group has nearly completed divesting its non-core assets as part of its strategy to focus on E&P activities; Greater Stella Area began production in February 2017.
Total considered from divestments so far: USD 1.3 billion
Planned for divestment: Phoenix & IDE
Delek Group has a long history of distributing dividends regularly (usually on a quarterly basis).
Dividends since 2011: ~NIS 3 billion