Q1 2026 International Petroleum Corp Earnings Call

May 5, 2026

William Lundin: Welcome everybody to IPC's 2026 Q1 results update presentation. I'm William Lundin, the President and CEO, joined today by Christophe Nerguararian, our CFO, as well as Rebecca Gordon, our SVP of Corporate Planning and Investor Relations. I'll start with the highlights and give an operational update, then Christophe will touch on the financial highlights for the quarter. Following the presentation, we'll take questions, which can be submitted through conference call or via the web online. Jumping into the highlights, we're very pleased to report another solid quarter of operational performance. Production for Q1 was at the top end of the quarterly forecast at 43,000 barrels of oil equivalent per day, we're retaining our full-year production guidance range of 44,000 to 47,000 BOEs per day.

Speaker #2: I'll start with the highlights and give an operational update, then Christoph will touch on the financial highlights for the quarter. Following the presentation, we'll take questions, which can be submitted through the conference call or via the web online.

Speaker #2: Jumping into the highlights, we're very pleased to report another solid quarter of operational performance. Production for Q1 was at the top end of the quarterly forecast at 43,000 barrels of oil equivalent per day, and we're retaining our full-year production guidance range of 44,000 to 47,000 BOEs per day.

Speaker #2: We had good cost discipline, with Q1 operating expenditure coming in at under $18 per barrel of oil equivalent, and we are maintaining guidance for OPEX at $18 to $20 per barrel.

William Lundin: We had good cost discipline with Q1 operating expenditure coming in at sub $18 per barrel of oil equivalent. We are maintaining guidance for OpEx at $18 to 20 per barrel. Entering 2026, we set a lean work program and budget as we are assuming a base case price estimate of $65 per barrel Brent. In response to the improved pricing environments, we're taking advantage of our operatorship and increasing our capital program from $122 million to $163 million, predominantly to accommodate short cycle investments across some of our producing assets. The Q1 capital spend was $71 million.

Speaker #2: Entering 2026, we set a lean work program and budget as we are assuming a base case price estimate of $65 per barrel Brent. And in response to the improved pricing environments, we're taking advantage of our operatorship and increasing our capital program from $122 million to $163 million USD, predominantly to accommodate short-cycle investments across some of our producing assets.

Speaker #2: The Q1 capital spend was $71 million. Operating cash flow generation for Q1 was $68 million, and we've revised our full-year OCF guidance to $220 to $340 million, assuming $70 to $90 per barrel Brent for the remainder of 2026.

William Lundin: Operating cash flow generation for Q1 was CAD 68 million. We revised our full year OCF guidance to $220 to 340 million, assuming $70 to 90 per barrel Brent for the remainder of 2026. Free cash flow was -$17 million. We are entering a really an inflection point here for the company. There shouldn't be too many more quarters of negative free cash flow going forward with Blackrod first oil expected in the near horizon. Full year free cash flow is expected to be between $0 to +120 million, between $70 to 90 Brent for the rest of 2026. Net debt stands at CAD 513 million. We expanded our Canadian credit facility during the quarter to $250 million.

Speaker #2: Free cash flow was minus $17 million USD, and we are entering really an inflection point here for the company. And there shouldn't be too many more quarters of negative free cash flow going forward with BlackRock First Oil expected in the near horizon.

Speaker #2: Full-year free cash flow is expected to be between $0 to $120 million positive million USD between $70 to $90 Brent for the rest of 2026.

Speaker #2: Net debt stands at $513 million, and we expanded our Canadian credit facility during the quarter to $250 million USD, and we also extended the maturity of that to 2028.

William Lundin: We also extended the maturity of that to 2028, so that gives us some increased headroom and overall flexibility. Our benchmark hedges for WTI and Brent, for approximately 40% of our production exposure rolls off in June, leaving us fully exposed to benchmark oil prices from July onwards. We have some WTI, WCS differential hedges and transport/quality related hedges tied to our Canadian heavy oil exposure as well at attractive levels, and some natural gas hedges in place that are currently in the money as well. No material incidents took place during the quarter. Very pleased to report on. Under the following slide, as shown on the production graph on slide 3 here, IPC delivered flat production really at the high end of our guidance in Q1, with overall strong performance across all the assets in the portfolio.

Speaker #2: So that gives us an increased headroom and overall flexibility. Our benchmark hedges for WTI and Brent for approximately 40% of our production exposure rolls off in June, leaving us fully exposed to benchmark oil prices from July onwards.

Speaker #2: We have some WTI, WCS differential hedges and transport/quality-related hedges tied to our Canadian heavy oil exposure as well at attractive levels. And some natural gas hedges in place that are currently in the money as well.

Speaker #2: No material incidents took place during the quarter. Very pleased to report on. Under the following slide, as shown on the production graph on slide three here, IPC delivered flat production really at the high end of our guidance in the first quarter with overall strong performance across all the assets in the portfolio.

Speaker #2: I'll touch on more detail on each of the assets' performance later on in the presentation. Moving on, we're very strongly positioned to deliver within our CMD production forecast range of $44 to $47,000 barrels of oil equivalent per day.

William Lundin: I'll touch on more detail on each of the assets' performance later on in the presentation. Moving on, we're very strongly positioned to deliver within our CMD production forecast range of 44,000 to 47,000 BOE per day. Drawing your eyes to the bottom of the production chart on this slide, 2026 is really a story of two tails here, with forecast production volumes expected to rise materially at the back end of the year with Blackrod phase 1 oil production set to come online. In addition to some of the incremental capital adds fast payback projects we've also added in, this will be contributing more so at the back end of this year for production rates.

Speaker #2: Drawing your eyes to the bottom of the production chart on this slide, 2026 is really a story of two tales here, with forecast production volumes expected to rise materially at the back end of the year with BlackRock Phase One oil production set to come online.

Speaker #2: In addition to some of the incremental capital adds fast payback projects, we've also added in this will be contributing more so at the back end of this year for production rates.

Speaker #2: Our production mix is weighted to 60% towards Canadian crude, which is tied to WCS pricing, 10% to Brent-linked production coming from Malaysia and France, and the remaining balance of 30% being natural gas from southern Alberta.

William Lundin: Our production mix is weighted to 60% towards Canadian crude, which is tied to WCS pricing, 10% to Brent linked production coming from Malaysia and France, and the remaining balance of 30% being natural gas from Southern Alberta. I'd also like to reiterate here that the 44,000 to 47,000 BOE per day guidance is an annual average, very much an annual average rather than a quarterly average, as can be seen on the high and low guidance bands on that bottom left-hand chart. OpEx, we are maintaining that original capital markets day forecast as we set out in February 2018 to $18 to $20 a barrel. Q1 operating cash flow was $68 million USD.

Speaker #2: And I'd also like to reiterate here that the $44 to $47,000 barrels of oil equivalent per day guidance isn't annual average, very much an annual average rather than a quarterly average as can be seen on the high and low guidance bands on that bottom left-hand chart.

Speaker #2: OPEX, so we are maintaining that original capital market stay forecast as we set out in February of '18 to $20 a barrel. First quarter operating cash flow was $68 million USD.

Speaker #2: The differentials from Brent to WTIs can be seen in the brackets there, was $9, and from WTI to WCS was $14 a barrel. The Brent to WTI differential was notably high on the back end of the geopolitical conflict in the Middle East, which our Brent-linked production benefits from, of course.

William Lundin: The differentials from Brent to WTI, as can be seen in the brackets there, was $9, and from WTI to WCS was $14 a barrel. The Brent to WTI differential was notably high on the back end of the geopolitical conflict in the Middle East. Which our Brent Link production benefits from, of course. Our operating cash outflow full year forecast for 2026 is updated to $220 to 340 million USD, based on $70 to 90 Brent, and that assumes a $5 differential between Brent and WTI, and a $14 differential between WTI and WCS. Material improvement compared to our CMD forecast, and notably more than funding our inter-incremental capital spend program this year with the revised updated operating cash flow generation outlook.

Speaker #2: Our operating cash outflow full-year forecast for 2026 is updated to $220 to $340 million USD based on $70 to $90 Brent. And that assumes a $5 differential between Brent and WTI and a $14 differential between WTI and WCS.

Speaker #2: So material improvement compared to our CMD forecast and notably more than funding our incremental capital spend program this year with the revised updated operating cash flow generation outlook.

Speaker #2: Moving on to our CAPEX program, inclusive of decommissioning, which now stands at a forecast of $163 million. So that's roughly $40 million higher than the original CMD CAPEX guidance.

William Lundin: Moving on to our CapEx program, inclusive of decommissioning, which now stands at a forecast of CAD 163 million. That's roughly CAD 40 million higher than the original CMD CapEx guidance. The increase is mainly due to accelerated fast payback drilling activity at our southern sub-field assets in Alberta and in the Paris Basin in France, which I will expand on in the following asset-specific slides. We continue to see great progress at Blackrod, and we've updated our 2026 budget outlook for the forecast spend at that asset. Big picture, the multi-year budget for Blackrod phase one growth capital to first oil is $850 million USD.

Speaker #2: The increase is mainly due to accelerated fast payback drilling activity at our southern Suffield assets in Alberta and in the Paris Basin in France, which I will expand on in the following asset-specific slides.

Speaker #2: So we continue to see great progress at BlackRock, and we've updated our 2026 budget outlook for the forecast spend at that asset. Big picture, the multi-year budget for BlackRock Phase One growth capital to First Oil is $850 million USD.

Speaker #2: There has been some minor cost pressure with total cost expected to be approximately $857 million USD, which is less than 1% overall of that original sanctioned CAPEX guidance for the growth capital to First Oil.

William Lundin: There has been some minor cost pressure, with total costs expected to be approximately $857 million, which is less than 1% overall of that original sanctioned CapEx guidance for the growth capital to first oil. We're still expecting the project to be delivered in terms of first oil in Q3 2026, which is ahead of the original timeline given at the time of sanction back in 2023. Because of this continued acceleration and positive progress, there are some sustaining completion costs as well, being pulled forward, which is a positive outcome overall. The free cash flow outlook, we're projecting to generate between nil to $120 million of positive free cash flow between $70 and $90 Brent for the remainder of 2026.

Speaker #2: And we're still expecting the project to be delivered in terms of First Oil in Q3 of 2026, which is ahead of the original timeline given at the time of sanction back in 2023.

Speaker #2: And because of this continued acceleration and positive progress, there are some sustaining completion costs as well being forward being pulled forward, which is a positive outcome overall.

Speaker #2: The free cash flow outlook, we're projecting to generate between $0 to $120 million of positive free cash flow between '70 and $90 Brent for the remainder of 2026.

Speaker #2: Very exciting to be returning into a positive free cash flow generating position this year with a major boost in free cash flow levels anticipated in 2027 and beyond as BlackRock Phase One ramps up and comes on stream.

William Lundin: We're excited to be returning into a positive free cash flow generating position this year, with a major boost in free cash flow levels anticipated in 2027 and beyond, as Blackrod phase one ramps up and comes on stream. Moving to the share repurchases slide. IPC, of course, has a very strong track record of share repurchases in our brief history as a company. 77 million shares have been bought back at an average price of SEK 79 or CAD 11 per share, respectively. That represents around CAD 1.4 billion of value created from the share repurchases when comparing the average share price that those shares were bought back at to our current share price. Notably, on the anti-dilution waterfall, the only time shares were issued in a transaction was for the BlackPearl acquisition back in 2018.

Speaker #2: Moving to the share repurchases, slide IPC, of course, is a very strong track record of share repurchases in our brief history as a company.

Speaker #2: So 77 million shares have been bought back at an average price of $79 per Canadian dollars, $11 per share. Respectively, and that represents around 1.4 billion of value created from the share repurchases when comparing the average share price that those shares were bought back at to our current share price.

Speaker #2: Notably, on the anti-dilution waterfall, the only time shares were issued in a transaction was for the Black Pearl acquisition back in 2018. All of those shares have been bought back in our current shares outstanding is just shy of $113 million shares, which is less than the original starting amounts of $113.5 million shares and we've transformed the company to where we are today compared to our inception in 2017.

William Lundin: All of those shares have been bought back, and our current shares outstanding is just shy of 113 million shares, which is less than the original starting amount of 113.5 million shares. We've transformed the company to where we are today compared to at inception in 2017, where now we see a 4.5 times increase in production levels, 18 times increase on our 2P reserves in excess of 20 years added to our 2P reserve life index, in excess of 1 billion barrels of contingent resources added, and an overall 4 times increase to our NAV compared to that of when the company was formed at the beginning of 2017. Blackrod, this is a 20-year journey in the making to bring this vision into reality by unlocking a phase one commercial development.

Speaker #2: But now we see a 4.5 times increase in production levels, 18 times increase on our 2P reserves in excess of 20 years, added to our 2P reserve life index in excess of a billion barrels of contingent resources, added at an overall four times increase to our NAV compared to that of when the company was formed at the beginning of 2017.

Speaker #2: So BlackRock, this is a 20-year journey in the making to bring this vision into reality by unlocking a Phase One commercial development. I had the privilege of being at site at the end of April.

William Lundin: I had the privilege of being at site at the end of April. This is a world-class SAGD plant with a best-in-class operational staff. It's a compact site with a small footprint for the CPF and nearby well pad facility tie-ins. This asset is going to propel the company to new levels, and it's been a fantastic journey going from sanction through to development and on to startup now with rotating equipment well in service at this point in time. Original guidance for this project, again, back in 2023 when it was sanctioned, called for first oil in late 2026 and growth capital up until that point of $850 million. We achieved first steam ahead of our original forecast, resulting in a schedule improvement, which was announced at the beginning of this year, with first oil expected in Q3 2026.

Speaker #2: This is a world-class SAG-D plant with the best-in-class operational staff. The compact site with a small footprint for the CPF and nearby well-pad facility tie-ins.

Speaker #2: This asset is going to propel the company to new levels and it's been a fantastic journey going from sanction through to development and onto startup now with rotating equipment well in service at this point in time.

Speaker #2: Original guidance for this project, again, back in 2023 when it was sanctioned, called for First Oil in late 2026 and growth capital up until that point of $850 million USD.

Speaker #2: We achieved first steam ahead of our original forecast, resulting in a schedule improvement, which was announced at the beginning of this year, with First Oil expected in Q3 2026.

Speaker #2: So operations continue to progress well and we're strongly positioned to deliver within this accelerated timeline. Cumulative spend as at the end of Q1 from the beginning of 2023 on the growth capital is $842 million USD.

William Lundin: Operations continue to progress well, and we're strongly positioned to deliver within this accelerated timeline. Cumulative spend as at the end of Q1 from the beginning of 2023 on the growth capital is $842 million, with some minor works remaining on the final boiler tie-in, as well as well pad facilities as we expect to deliver this project overall in line with the original growth capital guidance to first oil. I really couldn't be more proud of our multidisciplinary IPC teams as well as the vendors utilized in this major undertaking. We're especially pleased that there has been no material safety incidents under IPC supervision as prime contractor of the site. Excellent delivery overall and stewardship of this project to date. The Blackrod valuation, again, is a true game-changing asset for IPC.

Speaker #2: With some minor works remaining on the final boiler tie-in as well as well-pad facilities as we expect to deliver this project overall in line with the original growth capital guidance to First Oil.

Speaker #2: I really couldn't be more proud of our multidisciplinary IPC teams as well as the vendors utilized in this major undertaking. And we're especially pleased that there has been no material safety incidents under IPC supervision as prime contractor of the site.

Speaker #2: Excellent delivery overall and stewardship of this project to date. So BlackRock valuation, again, this is a true game-changing asset for IPC. We have regulatory approval up to $80,000 barrels of oil per day with over 1.45 billion barrels of recoverable resource.

William Lundin: We have regulatory approval up to 80,000 barrels of oil per day with over 1.45 billion barrels of recoverable resource. Phase 1 targets 30,000 barrels per day and 311 million barrels of 2P reserves. The economics as at the beginning of this year, based on our conservative reserve auditor price deck, is $1.4 billion of net present value using a 10% discount rate and approximately a $47 WTI breakeven. As you can see on the figure on the right-hand side of the slide, this is a massive uniform sandstone reservoir. It's contiguous and homogeneous, lending to a very much predictable and scalable production potential as validated through the 15 years that it's been under pilot operation testing.

Speaker #2: Phase One targets 30,000 barrels per day and 311 million barrels of 2P reserves. And the economics as at the beginning of this year, based on our conservative reserve auditor price deck, is $1.4 billion of net present value using a 10% discount rate.

Speaker #2: And approximately a $47 WTI breakeven. As you can see on the figure on the right-hand side of the slide, this is a massive, uniform sandstone reservoir.

Speaker #2: It's contiguous and homogeneous, lending to a very much predictable and scalable production potential, as validated through the 15 years that it's been under pilot operation testing.

William Lundin: In the lower graph here, the dark wedge on the bar chart reflects what is booked in 2P reserves and carried within our very evaluation. The light blue component of that bar chart is the contingent resources and represents upside to our business. Moving on to our producing assets. Current flagship oil-producing asset at Onion Lake thermal delivered stable production through Q1. We also did some 4D seismic work at the beginning of the year, we're reviewing that data to hone in on some additional potential infill targets on existing producing drainage patterns. Also to note on that schematic on the right, H pad is the next main drainage pattern to be developed in the sequence. Moving on to the Suffield area assets. Very much predictable and low decline production.

Speaker #2: In the lower graph here, the dark wedge on the bar chart reflects what is booked in 2P reserves and carried within our valuation. The light blue component of that bar chart is the contingent resources and represents upside to our business.

Speaker #2: Moving on to our producing assets, our current flagship oil producing asset at Onion Lake Thermal delivered stable production through Q1. We also did some 4D seismic work at the beginning of the year and are reviewing that data to hone in on some additional potential infill targets on existing producing drainage patterns.

Speaker #2: And also to note, on that schematic on the right, HPAD is the next main drainage pattern to be developed in the sequence. Moving on to the Suffield area assets—so, very much predictable and low-decline production.

Speaker #2: The Suffield area assets, which delivered around 23,000 barrels of oil equivalent per day through Q1, we're very excited to be redeploying some capital into these assets.

William Lundin: The Suffield area assets, which delivered around 23,000 barrels of oil equivalent per day through Q1. We're very excited to be redeploying some capital into these assets, where we've sanctioned a 4-well production drilling campaign within the Basal Quartz area just west of the Suffield block. Production from France and Malaysia through Q1 was in excess of 5,000 barrels of oil per day. We had some incremental activity that's also been sanctioned now in France. We look to drill 3 sidetracks in the FAB field and 1 sidetrack in the Villeperdue field. Very exciting to be drilling again in France. In Malaysia, we also plan to do an operational activity, a workover using a hydraulic workover unit later this year on our A-13 well. With that, I will hand it over to Christophe to go through the financial highlights. Thank you.

Speaker #2: We've sanctioned a four-well production drilling campaign within the Basil Ports area, just west of the Suffield Block. Production from France and Malaysia for Q1 was in excess of 5,000 barrels of oil per day.

Speaker #2: We had some incremental activity that's also been sanctioned now in France. We look to drill three side tracks in the FAB field and one side track in the Ville Perdue field.

Speaker #2: So very exciting to be drilling again in France. And in Malaysia, we also plan to do an operational activity, a workover using a hydraulic workover unit later this year.

Speaker #2: On our A13 well. With that, I will hand it over to Christoph to go through the financial highlights. Thank you. Thank you, Ben, very much.

Christophe Nerguararian: Thank you very much, Will. Good morning, everyone. Indeed, a good quarter with production at the high end of our Q1 guidance at 43,000 barrels of oil equivalents per day. Of course, during this first quarter when the situation happened between Iran, the US and Israel, the oil prices increased massively from the beginning of March. You really have a relatively high average oil price, dated Brent oil price for the whole quarter in excess of $81 per barrel. That was really a two side of the story with lower oil prices in January and February and much higher in March. Overall, that really helped generate on that basis, strong operating cash flows and EBITDA for the quarter at $68 million and $64 million US dollar.

Speaker #2: Will, good morning, everyone. So, indeed, a good quarter, with production at the high end of our Q1 guidance at 43,000 barrels of oil equivalent per day.

Speaker #2: And, of course, during this first quarter, when the situation happened between Iran, the US, and Israel, the oil prices increased massively from the beginning of March.

Speaker #2: And so you really have a relatively high average oil price dated Brent oil price for the whole quarter in excess of $81 per barrel, but that was really a two side of the story with lower oil prices in January and February and much higher in March.

Speaker #2: So overall, that really helped generate on that basis a strong operating cash flows and EBITDA for the quarter at 68 and 64 million US dollars.

Speaker #2: As we guided before, and as most of our investors know, the capital expenditure in 2026 was always expected to be much front-loaded. And so you can see a disproportionate portion of the CapEx spent during this quarter, translating into a free cash flow of negative $17 million US dollars.

Christophe Nerguararian: As we guided before and as most of our investors know, the capital expenditure in 2026 was always expected to be much front-loaded. You can see a disproportionate portion of the CapEx spent during this quarter translating into a free cash flow of -$17 million. Depends where oil prices will be on average for Q2. It's fair to assume that the free cash flow may be negative again in Q2. From that point onwards, we're expecting to turn the corner and to be again back into free cash flow territory for the H2, depending on where first oil kicks in at Blackrod. $13 million of net profit for this quarter.

Speaker #2: And it depends where oil prices will be on average for Q2, but it's fair to assume that the free cash flow may be negative again in Q2. But from that point onwards, we're expecting to turn the corner and to be back into free cash flow territory for the second half, depending on where first oil kicks in at BlackRock.

Speaker #2: So $13 million US dollar of net profit for this quarter. The net debt increased during this first quarter by $30 million US dollars. Again, it's fair to assume that this net debt would increase again in the second quarter and from that point on progressively depending on where oil prices stand, we should see some deleverage from Q3 or from Q4.

Christophe Nerguararian: The net debt increased during this Q1 by $30 million. Again, fair to assume that this net debt would increase again in Q2, and from that point on progressively, depending on where oil prices stand, we should see some deleverage from Q3 or from Q4. But certainly this year we should start to see some deleveraging and accelerated deleveraging as the Blackrod production ramps up over time. Realized prices, so I mentioned, were strong. I think it's interesting, a bit sad at the same time, but interesting to see that the physical market is quite dislocated. The dated Brent has been trading at between $5 up to $30 premium on top of the future or the financial Brent, if you wish.

Speaker #2: But certainly this year, we should start to see some deleveraging, and accelerated deleveraging, as the BlackRock production ramps up over time. Realized prices, as I mentioned, were strong.

Speaker #2: And I think it's interesting—a bit sad at the same time, but interesting—to see that the physical market is quite dislocated. And so the Dated Brent has been trading at between $5 up to a $30 premium.

Speaker #2: On top of the future, or the financial Brent if you wish. And when we lifted our cargo in Malaysia—the last one in March—we had a good premium.

Christophe Nerguararian: When we lifted our cargo in Malaysia, the last one in March, we had a good premium. For the future June cargo, which we're going to lift in Malaysia, we can see that the physical market is very tight because the premium we can realize there are very high. You can see we sold in March a cargo in Malaysia at USD 110 per barrel, while on average for the quarter, the dated Brent was CAD 81. The Brent WTI differential widened a bit at CAD 8-9, and the WTI, WCS differential stood at CAD -14 for the quarter. We're continuing in Canada to sell our heavy oil on parity or very close to the WCS.

Speaker #2: And for the future June cargo, which we're going to lift in Malaysia, we can see that the physical market is very tight because the premium we can realize there are very, very high.

Speaker #2: So you can see we sold in March a cargo in Malaysia at $110 per barrel while on average for the quarter dated Brent was $81.

Speaker #2: The Brent-WTI differential widened a bit at $9. And the WTI/WCS differential stood at $14, negative $14 for the quarter. We're continuing in Canada to sell our heavy oil on parity, or very close to the WCS.

Christophe Nerguararian: Gas prices were actually okay during this Q1. Overall, the market again is quite disconnected between the US and the Canadian market. It's been a new reality for the Canadian gas prices over the last 18 months now, for the lack of infrastructure and communicating infrastructure between the Canadian natural gas pipeline network and the US market. You can see that we realized CAD 2.5 per Mcf during this Q1.

Speaker #2: Gas prices were actually okay during this first quarter, but overall, the market again is quite disconnected between the US and the Canadian market. It's been a new reality for the Canadian gas prices over the last 18 months.

Speaker #2: Now, for the lack of infrastructure and communicating infrastructure between the Canadian net gas pipeline network and the US market. So you can see that we realized C$2.5 per MCF during this first quarter, but the forecast is showing for the summer months lower gas prices, which is still a negative to IPC given that we're producing more gas than we're consuming at Onion Lake, or that we will consume in the following quarters at BlackRock.

Christophe Nerguararian: The forecast is showing for the summer months, lower gas prices, which is still a negative to IPC, given that we are producing more gas than we're consuming at Onion Lake, or that we will consume in the following quarters at Blackrod. Now, the positive in the long run is that because we are consuming gas at Blackrod, it will be a relatively cheap feedstock gas going forward. In terms of financial results, it is interesting to compare 2025 and 2026. 2026, we had similar production and overall revenues between Q1 2026 and 2025.

Speaker #2: Now, the positive in the long run is that because we are consuming gas at BlackRock, it will be a relatively cheap feedstock gas going forward.

Speaker #2: In terms of financial results, it's interesting to compare '25 and '26. We had similar, during this first quarter, '26, we had similar production and overall revenues in between the first quarter '26 and '25.

Christophe Nerguararian: Some of the difference between the two quarters in 2026 and 2025 was coming from the fact that we lost CAD 10 million of hedges, hedge losses in this Q1 because we had hedged around 40% of our WTI and Brent exposure at between CAD 62 and CAD 68 per barrel. Of course, we've been losing in the month of March mainly. Given that we are still hedged until the end of June at those around 40% level at current prices, we can expect to make a hedging loss of around $30 million during the Q2.

Speaker #2: Some of the difference between the two quarters in '26 and '25 was coming from the fact that we lost $10 million of hedge losses in this first quarter.

Speaker #2: Because we had hedged around 40% of our WTI in Brent exposure between '62 and '68 dollar per barrel. And of course, we've been losing in the months of March mainly.

Speaker #2: And given that we are still hedged until the end of June at those around 40% level, at current prices, we can expect to make a hedging loss of around $30 million during the $30 million US dollar during the second quarter.

Christophe Nerguararian: I think it's important to flag as well that beyond the end of June, we no longer have any benchmark hedge, so we are totally exposed to the Brent and WTI prices going forward into H2 2026. Looking at the operating costs, we were below during this Q1 as a result of strong production level and relatively low electricity and gas prices. We can expect higher operating costs per barrel going into Q2, with a bit of slightly lower production in Q2. In Q3, when we're gonna move progressively into commercial production at Blackrod, we're going to register some OpEx, which will be a bit higher in the 1st months of operation.

Speaker #2: But I think it's important to flag as well that, beyond the end of June, we no longer have any benchmark hedge. So we are totally exposed to the Brent and WTI prices going forward into the second half of 2026.

Speaker #2: Looking at the operating costs, we were below during this first quarter as a result of strong production levels and relatively low electricity and gas prices.

Speaker #2: We can expect higher operating costs per barrel going into the second quarter, with slightly lower production in the second quarter.

Speaker #2: In the third quarter, when we're going to move progressively into commercial production at BlackRock, we're going to register some OPEX, which will be a bit higher in the first months of operation.

Speaker #2: But you can see that as soon as the BlackRock production ramps up in the fourth quarter, the OPEX per barrel will progressively reduce, and we would expect that trend to continue into 2027.

Christophe Nerguararian: You can see that as soon as the OpEx per barrel will progressively reduce, and we would expect that trend to continue into 2027. You can see the net back on the following graph with a gross margin of close to CAD 18 per barrel and operating cash flow at CAD 17.5, and EBITDA at CAD 16.5 per barrel of oil equivalent of net back. Looking at the evolution of our net debt, we increased our net debt this quarter by $30 million, given the reasonably high CapEx of CAD 71 million we spent during the year. We spent more CapEx than the level of operating cash flow.

Speaker #2: You can see the net back on the following graph with gross margin of close to 18 dollar per barrel and operating cash flow at 17 and a half and EBITDA at 16 and a half dollar per barrel.

Speaker #2: Of oil equivalent of netback. Looking at the evolution of our net debt, we increased our net debt this quarter by $30 million US dollars, given the reasonably high CAPEX of $71 million we spent during the year.

Speaker #2: So, we had—we spent more CAPEX than the level of operating cash flow. This is going to reverse in Q2, and even more so in the second half of this year.

Christophe Nerguararian: This is going to reverse in Q2 and even more so in H2 of this year. In terms of financial items, it's a sort of a steady state now. In H2 last year when we refinanced our bonds, we had some exceptional and one-off fees that we paid as part of that bond refinancing. From now on, it's gonna be much more stable. Just to mention that the foreign exchange loss you can see here of 6.5 million during this Q is a non-cash item. Otherwise, the G&A remain reasonably stable and flat at around $4 million per Q.

Speaker #2: In terms of financial items, it's sort of a steady state now in the second half of last year. And when we refinanced our bonds, we had some exceptional and one-off fees that we paid as part of that bond refinancing. From now on,

Speaker #2: It's going to be much more stable. And just to mention that the foreign exchange loss, you can see here of $6.5 million during this quarter, is a non-cash item.

Speaker #2: Otherwise, the GNA remain reasonably stable and flat at around 4 million US dollar per quarter. So looking at the financial results, with generated net revenues of $173 million, netting a cash margin of 68 million dollar and gross profit of 37 million US dollar, which net of the financial items tax and tax elements yielded net profit of $13 million US dollar for the quarter.

Christophe Nerguararian: Looking at the financial results, we generated net revenues of CAD 173 million, net in a cash margin of CAD 68 million, and gross profit of $37 million, which net of the financial items, tax, and tax elements, yielded net profit of $13 million for the quarter. The balance sheet has continued to evolve since we sanctioned the Blackrod project. As you expect, our level of cash has reduced, and our level of net debt increased over the last 3 years. Again, we are almost touching distance from reversing this trend, certainly going into 2027 and as well going into H2 of this year. I will let Will conclude this presentation.

Speaker #2: The balance sheet has continued to evolve. Since we sanctioned the BlackRock project, as you would expect, our level of cash has reduced and our level of net debt has increased over the last three years.

Speaker #2: But again, we are almost within touching distance of reversing this trend—certainly going into 2027, and as well, going into the second half of this year.

Speaker #2: And I will let Will conclude this presentation.

Speaker #1: Thanks very much, Christoph. So in summary, very exciting to be ramping up activity really across all regions of operations. Q1 capital came in at $71 million USD in the full year outlook is $163 million now, really leveraging our operatorship and increasing our production exposure to the high commodity pricing environment that we're seeing.

William Lundin: Thanks very much, Christophe. In summary, very exciting to be ramping up activity really across all regions of operations. Q1 capital came in at $71 million, and the full year outlook is $163 million now, really leveraging our operatorship and increasing our production exposure to the high commodity pricing environment that we're seeing. We're well-positioned to deliver within our production guidance, and our operating costs remain under control. Operating cash flow generation was robust for Q1 at $68 million, and the outlook for the full year is $220 to 340 million. We have an excess of $150 million of undrawn liquidity headroom. There are no material environmental or safety incidents that took place in Q1.

Speaker #1: We're well positioned to deliver within our production guidance and our operating costs remain under control. Operating cash flow generation was robust for Q1 at $68 million USD.

Speaker #1: And the outlook for the full year is $220 to $340 million. We have an excess of $150 million USD of undrawn liquidity headroom.

Speaker #1: There are no material environmental or safety incidents that took place in the first quarter. With that, I'm happy to pass it over to the operator to begin questions, and you can also submit your questions online, by the way.

William Lundin: With that, I am happy to pass it over to the operator to begin questions, and you can also submit your questions online via the web. Thank you.

Speaker #1: Thank you.

Speaker #3: Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. It is star one on your telephone keypad to ask a question.

Operator: Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. It is star one on your telephone keypad to ask a question. We'll pause for a brief moment. Thank you. We'll now take our first question from Teodor Sveen-Nilsen of SB1 Markets. Your line is open. Please go ahead.

Speaker #3: We'll pause for a brief moment. Thank you. We'll now take our first question from Theodore Nilsen of SB1 Markets. Your line is open. Please go ahead.

Speaker #4: Good morning, Will and Christoph. Thanks for taking my questions. First question that is around the small CAPEX increase you announced. I just want to know what is driven by cost increases and what is driven by higher activity?

Teodor Sveen-Nilsen: Good morning, Will and Christophe. Thanks for taking my questions. Our first question that is around the small CapEx increase you announced. I just want to know what is driven by cost increases and what is driven by your activity? Second part of that question is related to the activity increase, by how much should we assume that your exit rate production this year increases as a result of the accelerated investments? That's the first two questions. Third question that is on share repurchases. You, of course, been very successful doing that for the past few years, as you discussed, but you haven't been doing any repurchase and not any material repurchases the past few months. Just want a background for that.

Teodor Nilsen: Good morning, Will and Christophe. Thanks for taking my questions. Our first question that is around the small CapEx increase you announced. I just want to know what is driven by cost increases and what is driven by your activity? Second part of that question is related to the activity increase, by how much should we assume that your exit rate production this year increases as a result of the accelerated investments? That's the first two questions. Third question that is on share repurchases. You, of course, been very successful doing that for the past few years, as you discussed, but you haven't been doing any repurchase and not any material repurchases the past few months. Just want a background for that.

Speaker #4: And the second part of that question is related to the activity increase. By how much should we assume that your exit rate production this year increases as a result of the accelerated investments?

Speaker #4: So that's the first few questions. The third question is on share repurchases. You, of course, have been very successful doing that for the past few years, as you discussed.

Speaker #4: But you haven't been doing any repurchase run, not any material repurchases the past few months. Just wanted background for that. Do you think the share price approaches are reasonable level or are there other reasons for why you have reduced the buybacks?

Teodor Sveen-Nilsen: Do you think the share price approaches a reasonable level, or are there other reasons for why you have reduced the buybacks?

Teodor Nilsen: Do you think the share price approaches a reasonable level, or are there other reasons for why you have reduced the buybacks?

Speaker #1: Thanks very much, Theodore, for the questions. I'll head those off. First one being the small CAPEX increase. So we had an adjustment of $122 million to $163 million for capital expenditure for 2026.

William Lundin: Thanks very much, Teodor, for the questions. I'll head those off. First one being the small CapEx increase. We had an adjustment of CAD 122 million to CAD 163 million for capital expenditure for 2026. That 40 million some odd increase, the lion's share of that is for capital activity in France and Malaysia. Sorry, France and Canada. We're going to be doing 4 sidetracks drilling program in France for approximately CAD 15 million, and also in Southern Alberta at our Suffield area assets, more on the more recently acquired in 2023 Core Four property. We're also going to be drilling 4 wells there. The total combined amount is around CAD 23 million when you add the France plus the Brooks-related activity that we're undertaking.

Speaker #1: So that $40 million-odd increase—the lion's share of that is for capital activity in France and Malaysia. Sorry, France and Canada. So we're going to be doing four sidetracks, a drilling program in France, for approximately $15 million.

Speaker #1: And also in Southern Alberta, at their Suffield area assets, more in the more recently acquired in 2023 core four property, we were also going to be drilling for wells there.

Speaker #1: So the total combined amount is around $23 million when you add the France plus the Brooks related activity that we're undertaking. I also touched on the slight cost increase that BlackRock there as well, which was expanded on throughout the presentation.

William Lundin: I also touched on the slight cost increase at Blackrod there as well, which was expanded on throughout the presentation. Really the vast majority of the cost increases are deliberate cost increases here to increase the activity for production contributing projects. That production increase for those two projects that I had noted, which will be more back-end weighted this year in terms of the production contribution. You know, we'll expect to see in excess of 1,000 barrels per day on average delivered for 2027 from those two programs. Very attractive cost per flowing barrel metrics to undertake those capital activities.

Speaker #1: But really, the vast majority of the cost increases are deliberate cost increases here to increase the activity for production-contributing projects. And so, that production increase for those two projects that I had noted, which will be more back-end weighted this year in terms of the production contribution, we'll expect to see in excess of 1,000 barrels per day on average delivered for 2027 from those two programs.

Speaker #1: So, very attractive cost-per-flowing-barrel metrics to undertake those capital activities. And really, a part of our whole strategy as well, over the past couple of years, while we've been accommodating the growth capital for BlackRock as well as buying back our shares at very cheap levels, some of the capital activity that's been ripe and ready to go across our existing producing assets, we've elected to wait until more constructive oil prices present themselves.

William Lundin: Really a part of our whole strategy as well over the past, you know, couple of years while we've been accommodating the growth capital for Blackrod, as well as, you know, buying back our shares at very cheap levels. Some of the capital activity that's been ripe and ready to go across our existing producing assets. We've elected to wait until more constructive oil prices present themselves. Here we are now, and that is the reason for, you know, why we've kind of prioritized the incremental capital going towards a production contributing activity right now as opposed to share buybacks. We do have the flexibility to restart share buybacks where we have the NCIB activated up until December of this year. We are steadfast on focusing on getting Blackrod onto production here.

Speaker #1: And here we are now, and that is the reason why we've kind of prioritized the incremental capital going towards production-contributing activity right now, as opposed to share buybacks.

Speaker #1: We do have the flexibility to restart share buybacks where we have the NCIB activated up until December of this year. We are steadfast on focusing on getting BlackRock onto production here, and continue to monitor market conditions and overall liquidity headroom. Safe to say, we are very strongly positioned, and it's something that we're going to continue to monitor as the year progresses here in terms of restarting shareholder returns.

William Lundin: We continue to monitor market conditions and overall liquidity headroom. Safe to say we are very strongly positioned, and it's something that we're gonna continue to monitor as the year progresses here in terms of restarting shareholder returns.

Speaker #4: Okay. Thank you.

Christophe Nerguararian: Okay. Thank you.

Teodor Nilsen: Okay. Thank you.

Speaker #3: Thank you. Once again, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. Thank you.

Operator: Thank you. Once again, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. Thank you. We will now move on to the next question from Mark Wilson of Jefferies. Your line is open. Please go ahead.

Speaker #3: We will now move on to our next question from Mark Wilson of Jefferies. Your line is open. Please go ahead.

Mark Wilson: Thanks a lot. Excellent progress, as ever, and good luck with the final steps in Blackrod, obviously. I thought the most interesting area now is the gas side of things in Canada. You mentioned that your hedges are rolling off for WTI. Just remind us where that stands for the gas, particularly as that is looking weaker in terms of infrastructure. Whether you think there's any longer-term impact from the M&A we've seen into Canadian gas, you know, Shell coming in for ARC and further phases of LNG Canada. Just be interested to hear that. Thank you.

Speaker #5: Thanks a lot. Excellent progress, as ever, and good luck with the final steps in BlackRock, obviously. I thought the most interesting area now is the gas side of things in Canada.

Speaker #5: You mentioned that your hedges are rolling off for WTI. Just remind us where that stands for gas, particularly as that is looking weaker in terms of infrastructure, and whether you think there's any longer-term impact from the M&A we've seen into Canadian gas—Shell coming in for Ark and further phases of Canada LNG.

Speaker #5: Just be interested to hear that. Thank you.

Speaker #1: Yep. Thank you, Mark. And very good question. So I skipped the table and hedging, as we touched on it already in the opening slide.

Christophe Nerguararian: Yeah. Thank you, Mark, very good question. I skipped the table on hedging as we'll touch on it already in the opening slide. You're absolutely right. That was very interesting to see Shell going after ARC, which is a large gas producer. That paves the way, probably this is just speculation at this stage, but probably paves the way or at least increases the chances and the odds that Shell would go and try to expand the LNG facility on the west coast of Canada, north of Vancouver. That's a fairly obvious move when you look at the massive arbitrage you can see between local domestic gas prices and international gas prices.

Speaker #1: But you're absolutely right. It was very interesting to see Shell going after Ark, which is a large gas producer. And so that paves the way probably this is just speculation at this stage, but probably paves the way or at least increases the chances and the odds that Shell would go and try to expand the LNG facility in the West Coast of Canada, north of Vancouver.

Speaker #1: And that's a fairly obvious move when you look at the massive arbitrage you can see between local domestic gas prices and international gas prices.

Speaker #1: So, I think the projection in the very short term is to probably still have reasonably low gas prices onshore Western Canada. But the prospects of having more demand from that LNG Canada plant going forward have probably increased over the last few weeks.

Christophe Nerguararian: I think The projection in the very short term is to probably still have reasonably low gas prices onshore Western Canada. The prospects of having more demand from the, that LNG Canada plant going forward probably increased over the last few weeks. In terms of hedging, we have so 50,000 GJ a day of gas hedged at CAD 2.7 per GJ or CAD 2.8 per Mcf. Unfortunately, that's probably gonna be in the money. You know us, we remain very opportunistic. If we see any gas prices hike in the forward curve, you should fairly expect us to seize that kind of opportunities. That was your main question around gas prices.

Speaker #1: In terms of hedging, we have about 50,000 GJ a day of gas hedged at $2.70 CAD per GJ, or $2.80 CAD per Mcf. So unfortunately, that's probably going to be in the money.

Speaker #1: And so, as we remain very opportunistic, if we see any gas price hikes in the forward curve, you should fairly expect us to seize that kind of opportunity.

Speaker #1: And so, that was your main question around gas prices. Now, you’re absolutely right that, in terms of WTI or Brent exposure, the hedges are rolling off at the end of this quarter, at the end of June.

Christophe Nerguararian: No, you're absolutely right that, in terms of WTI or Brent exposure, the hedges are rolling off at the end of this quarter, at the end of June. We'll be fully exposed going forward to what looks to be reasonably constructive oil prices going forward.

Speaker #1: And so we'll be fully exposed going forward to what looks to be reasonably constructive oil prices going forward.

Mark Wilson: Got it. Okay, thanks.

Speaker #5: Got it. Okay. Thanks.

William Lundin: Yeah. Sorry, just to add to that in terms of just being a great signal in terms of Shell increasing its exposure in Canada just for the upstream overall Canadian landscape there. Now with that acquisition, Shell's secured roughly three-quarters of its feed gas requirements for both phase 1 and phase 2 of LNG Canada. Certainly bodes well in signaling for an FID of phase 2, but we're still yet to see that for that LNG project on the west coast of BC there.

Speaker #1: Sorry. Just to add to that in terms of just being a great signal in terms of Shell increasing its exposure in Canada just for the upstream overall Canadian landscape.

Speaker #1: And now, with that acquisition, Shell's secured roughly three-quarters of its feed gas requirements for both Phase One and Phase Two of LNG Canada.

Speaker #1: So certainly bodes well, and signaling for an FID of phase two, but we're still yet to see that for that LNG project on the West Coast of B.C. there.

Speaker #5: Got it. Okay. And is it worth mentioning, on the broader Canada side of things—what was it I heard recently? Was it a sovereign wealth fund, or is it an infrastructure fund?

Mark Wilson: Got it. Okay. Is it worth mentioning on the broader Canada side of things, what was it I heard recently? Was it a sovereign wealth fund or is it an infrastructure fund, and any implications?

Speaker #5: And any implications?

Speaker #1: Yeah, that was Mark Carney, and he said a sovereign wealth fund. The extent of the details are yet to be understood in terms of where the funding is going to come from to be able to do that.

William Lundin: Yeah. That was Mark Carney, and he said a sovereign wealth fund. The extent of the details are yet to be understood in terms of where the funding is gonna come from to be able to do that. That is the headline Mark Carney announced was a sovereign wealth fund.

Speaker #1: But that is the headline that Mark Carney announced was a sovereign wealth fund.

Speaker #5: Okay, okay. Thank you. And then just one last point. I might have missed, indeed, those questions, but the short cycle in Suffield—that's obviously targeting liquids, I imagine.

Mark Wilson: Okay. Okay. Thank you. Just one last point. I might have missed in Teodor's question, but the short cycle in Suffield, that's obviously targeting liquids, I imagine.

Speaker #1: Yes. Oil.

William Lundin: Yes.

Speaker #5: Okay. Very good. Thank you very much. Congratulations again. Looking forward to reading the rest of the news in the year as it ramps up.

Mark Wilson: Okay.

William Lundin: Boiler.

Mark Wilson: Very good. Thank you very much. Congratulations again. Looking forward to reading the rest of the news in the year as it ramps up. Thank you.

Speaker #5: Thank you.

Christophe Nerguararian: Exactly. Thank you.

Speaker #1: Thank you. Thank you, much appreciated. Thanks, Mark.

William Lundin: Much appreciated. Thanks, Mark.

Speaker #3: Thank you. We have no further questions in the queue. I'll now hand it over to the Company for online questions.

Operator: Thank you. We have no further questions in the queue. I will now hand it over to the company for online questions.

Speaker #6: Okay, thanks, operator. So we've got a couple of questions here. Maybe we can just start with a bit of information on the short cycle.

Rebecca Gordon: Okay. Thanks, operator. We've got a couple of questions here. Maybe we can just start with a bit of information on the short cycle, Will. Just a couple of questions on Ferguson and whether we have opportunity there to put some rigs in or maybe look at additional drilling there.

Speaker #6: We'll just ask a couple of questions on Ferguson and whether we have opportunity there to put some rigs in, or maybe look at additional drilling there.

Speaker #4: Yeah, for sure. So Ferguson, there's some quite a few opportunities in terms of drilling as well as recompletion, refracting-related activity as well that we are looking into.

William Lundin: Yeah, for sure. Ferguson, there's quite a few opportunities in terms of drilling as well as recompletion, refracking related activity as well that we are looking into. Some of the activity is likely to be an operating expenditure related item. That is something that we do plan to do in terms of a few wells and recompletions on a few wellbores there. Look to see some minor production boosts coming from the asset towards the tail end of the year.

Speaker #4: Some of the activity is likely to be an operating expenditure-related item. So that is something that we do plan to do in terms of a few wells and recompletions on a few well bores there.

Speaker #4: So look to see some minor production boosts coming from the asset towards the tail end of the year.

Speaker #6: Okay, very good. And then another question here. I mean, obviously there's a lot of interest on Phase Two—any intention to bring that forward now, or how are we feeling about the timing, given the oil price?

Rebecca Gordon: Okay. Very good. Another question here. I mean, obviously, there's a lot of interest on phase 2. Is there any intention to bring that forward now, or how are we feeling about the timing given the oil price?

Speaker #4: Yeah, I think the liquidity position, as we've stated for quite some time now, is going to change quite rapidly as BlackRock Phase One sets to come on stream in the back half of this year.

William Lundin: Yeah, you know, I think the liquidity position, as we've stated for quite some time now, is going to change quite rapidly as Blackrod phase 1 sets to come on stream in the back half of this year. We look to generate significant free cash flow in the year of 2027, even at, you know, more modest oil prices. If these pricing levels are to hold through 2027, it's going to put us in a very, very good place to look to continue pursuing our key capital allocation strategic pillars in terms of organic growth, shareholder returns, and also staying opportunistic towards M&A. For phase 2 specifically or future expansion potential at Blackrod behind the scenes, is definitely something that's being worked up.

Speaker #4: And we look to generate significant free cash flow in the year of 2027, even at more modest oil prices. And if these pricing levels are to hold through 2027, it's going to put us in a very, very good place to look to continue pursuing our key capital allocation strategic pillars in terms of organic growth, shareholder returns, also staying opportunistic towards M&A, but for phase two specifically or future expansion potential at BlackRock behind the scenes, it's definitely something that's being worked up.

Speaker #4: But of course, we remain very, very much focused on successfully completing and bringing Phase One online from an oil-producing standpoint.

William Lundin: Of course, we remain very much focused on successfully completing and bringing phase 1 online from an oil producing standpoint.

Speaker #6: Great. Thanks. And then just a quick question on capital structure, Christoph, could you explain the increase in the RCF, why you went for that?

Rebecca Gordon: Great. Thanks. Then just a quick question on capital structure. Christophe, could you explain the increase in the RCF, why you went for that?

Speaker #4: Yeah. Well, it's if you look back at what IPC has been doing as a corporate, we try to raise and improve liquidity when we don't need it.

Christophe Nerguararian: Yeah. Well, if you look back at what IPC has been doing, as a corporate, we try to raise and improve liquidity when we don't need it. It's been a constant discussion with our banking partners and banking friends. We enjoy very good support from Canadian banks these days. There was the opportunity to increase the Canadian revolving credit facility from CAD 250 million to $250 million, which we just did and extended the maturity up to May 2028, as we do every year. It's all positive for no other specific purpose than having ample liquidity.

Speaker #4: So it's been a constant discussion with our banking partners and banking friends. We enjoy very good support from Canadian banks these days. That was the opportunity to increase the Canadian revolving credit facility from 250 million CAD to 250 million US dollars.

Speaker #4: Which we just did and extended the maturity up to May 2028, as we do every year. So it's all positive, for no other specific purpose than having ample liquidity.

Speaker #6: Fantastic, thanks. We were just— a question on regulatory framework. So, in Canada, the US, and other operating jurisdictions, have we seen any changes post the Iran war in those sort of regulatory frameworks, or anticipate anything to come?

Rebecca Gordon: Fantastic. Thanks. Will, just a question on regulatory framework. In Canada, the US, and our other operating jurisdictions, have we seen any changes post the Iran war in those sort of regulatory frameworks or anticipate anything to come?

Speaker #1: No, there hasn't been any changes regulatory-wise in the stable jurisdictions where we operate. And we have production operations taking place. So in specifically in Canada, also they have a sliding framework based on oil prices for their royalties.

William Lundin: No, there hasn't been any changes regulatory-wise in the stable jurisdictions where we operate and we have production operations taking place. Specifically in Canada also, they have a sliding framework based on oil prices for their royalties. No, no changes expected there, or elsewhere within the portfolio at this time.

Speaker #1: So no changes expected there. Or elsewhere within the portfolio at this time.

Speaker #6: Okay, fantastic. And then maybe one final question here: What would be your priority post-BlackRock complete, in terms of organic growth, shareholder returns, or buybacks?

Rebecca Gordon: Okay, fantastic. Maybe one final question here. What would be your priority post Blackrod complete in terms of organic growth or shareholder returns or buybacks?

Speaker #4: Yeah. The infamous question. I think the punchline here is that we have the ability to do it all. And we look to strike the right cadence in terms of pulling forward organic growth.

William Lundin: Yeah, the infamous question. I think, you know. The punchline here is that we have the ability to do it all, and we look to strike the right cadence in terms of pulling forward organic growth and continuing to screen opportunities in M&A landscape and balancing shareholder returns as well. I think we're gonna be really strongly positioned to deliver on all three of those fronts. The main lens, of course, will be to maximize shareholder value in our pursuit of that capital allocation strategy.

Speaker #4: And continuing to screen opportunities in M&A landscape and balancing shareholder returns as well. And so I think we're going to be really strongly positioned to deliver on all three of those fronts and the main lens of course will be to maximize shareholder value in our pursuit of that capital allocation strategy.

Speaker #6: Okay, fantastic. That's what we have time for today. That's all our questions. So, I'll leave it to you to close, Will.

Rebecca Gordon: Okay, fantastic. That's what we have time for today. That's all our questions. Leave it to you to close, Will.

Speaker #4: Excellent. Thanks very much, Rebecca. And thanks, everyone, for tuning in to our first quarter results update presentation. We're very, very strongly positioned, and it's a super exciting time for the company, with the next major catalyst being BlackRock First Oil.

William Lundin: Excellent. Thanks very much, Rebecca. Thanks everyone for tuning in to our first quarter results update presentation. We're very, very strongly positioned, and it's a super exciting time for the company with the next major catalyst being Blackrod first oil. That will come in due course very, very soon here. Thanks everyone, and take care.

Speaker #4: So that will come in due course very, very soon here. So thanks, everyone. And take care.

Operator: Thank you. This concludes today's call. Thank you for your participation. You may now disconnect.