Shares in Ithaca Energy PLC (LSE:ITH) rose 7% in early trading after the company announced a £158 million special dividend following its merger with Italy's Eni and a refinancing deal.
The dividend keeps pace with Ithaca's target of £400 million ($500 million) returns to shareholders pledged in 2023.
The merger, finalised in October, created the UK North Sea's second-largest oil and gas operator, combining Ithaca’s portfolio with Eni’s assets, including Neptune Energy’s North Sea operations acquired earlier this year.
The company confirmed the Rosebank field, in which it holds a 20% stake, remains on track for first oil in 2026/27 despite ongoing legal challenges.
It also reaffirmed production guidance, maintaining output above 100,000 boe/d, and highlighted its stakes in 34 North Sea assets.
Peel Hunt said: "Following the successful completion of the Eni UK business combination, Ithaca is a substantially larger and financially stronger business with significant financing capacity to fund future growth."
It says 'buy' up to 175p. Stifel is a 'holder' with a target of 118p.
The American house says North Sea operators had been 'strangled' but not 'shot' by the latest tax changes unveiled in October's Budget.