The strength of SDX Energy’s financial position, resulting from its strong balance sheet and positive cash flow, is a key differentiator from many small-cap E&P companies in the sector. This stable financial position allows SDX Energy to execute its very active work programme which provides multiple catalysts for shareholders as it drills production, development and exploration wells in the coming years.
Defensive qualities and downside oil-price protection
- SDX is cash-generative in a low oil price environment:
- Predominantly fixed-price gas-weighted portfolio with no linkage to oil price;
- Low-cost onshore operations: Opex @ $5.9/boe (FY’22);
Focus on financial discipline
- SDX maintains a sharp focus on managing shareholders capital and on optimising returns for shareholders through recycling capital into NAV-accretive, growth projects. SDX continues to evaluate inorganic growth opportunities through M&A.
- Business and organisational structure set up to maintain a low cost base.
ESG agenda
- The Company’s operated assets recorded a carbon intensity of 3.6kg CO2e/boe in 2022.
- SDX Egypt CO2 footprint optimised by using produced gas as fuel in running the CPF at South Disouq.
- The Company’s supply of natural gas reduced our customers’ CO2 emissions by c.49,600 tons during 2022 versus heavy fuel oil.
- Established an ESG policy and objectives that support the company’s strategic plan.
Why Egypt?
- Multiple world class hydrocarbon basins
- Excellent operating environment with competitive fiscal terms and low operating costs
- Stable Government focused on economic growth
- Developing as a regional gas hub, creating both internal and external gas sales potential
Why Morocco?
- One of the best Fiscal Regimes in the industry
- Gas market significantly underserved by domestic production
- SDX owns 75% of the only private pipeline network in the country – future discoveries will have to go through SDX’s line to be commercialised
- Significant growth prospects