Half Year 2026 Ithaca Energy PLC Earnings Call

August 19, 2026

Operator: Hello, all, and thank you for your patience on today's Ithaca Energy PLC H1 2026 financial results. The call will be starting in approximately 2 minutes' time. During today's call, if you would like to ask a question, please press star followed by one on your telephone keypad, and to withdraw your question, it's star followed by two. Thank you. Good morning, everyone, and thank you for joining us on today's Ithaca Energy PLC H1 2026 financial results. My name is Drew, and I'll be the moderator for the call today. After the prepared remarks, we will hold a Q&A session. If you would like to ask a question during that time, please press star followed by one on your telephone keypad, and to withdraw your question, it's star followed by two. With that, it's my pleasure to hand over to Yaniv Friedman, Executive Chairman, to begin.

Speaker #1: Hello all, and thank you for your patience on today's Ithaca Energy PLC H1 2026 financial results. The call will be starting in approximately two minutes' time.

Speaker #1: During today's call, if you would like to ask a question, please press star followed by 1 on your telephone keypad. To withdraw your question, press star followed by 2.

Speaker #1: Thank you. Good morning, everyone, and thank you for joining us on today's Ithaca Energy PLC H1 2026 financial results. My name is Drew, and I'll be the moderator for the call today.

Speaker #1: After the prepared remarks, we will hold a Q&A session. If you would like to ask a question during that time, please press star, followed by 1 on your telephone keypad. To withdraw your question, press star, followed by 2.

Speaker #1: With that, it's my pleasure to hand over to Yaniv Friedman, Executive Chairman, to begin. Please go ahead when you're ready.

Operator: Please go ahead when you're ready.

Speaker #2: Thank you, Drew. Good morning, everyone. To those of you who are unfortunately not on holiday and have joined us, and to those who are, welcome to our first half 2026 results presentation.

Yaniv Friedman: Thank you, Drew. Good morning, everyone. Those of you who are unfortunately not on holiday and joined us, and those who are, welcome to our H1 2026 result presentation. My name is Yaniv Friedman. I'm the Executive Chairman of Ithaca Energy, and with me on the call today are Luciano Vasques, our CEO, and Iain Lewis, our CFO. First slide, as you can see, delivering on our strategy. I think this is a perfect example of a H1 of a year that we've been executing on all pillars of our strategy. What we'll cover today in our agenda, as you can see on slide 2, is H1 2026 highlights, our strategic and operational review, financial updates, and then we'll open it up for questions and answers. If you'll please move to slide 4.

Yaniv Friedman: Thank you, Drew. Good morning, everyone. Those of you who are unfortunately not on holiday and joined us, and those who are, welcome to our H1 2026 result presentation. My name is Yaniv Friedman. I'm the Executive Chairman of Ithaca Energy, and with me on the call today are Luciano Vasques, our CEO, and Iain Lewis, our CFO. First slide, as you can see, delivering on our strategy. I think this is a perfect example of a H1 of a year that we've been executing on all pillars of our strategy. What we'll cover today in our agenda, as you can see on slide two, is H1 2026 highlights, our strategic and operational review, financial updates, and then we'll open it up for questions and answers. If you'll please move to slide four.

Speaker #2: My name is Yaniv Friedman. I'm the Executive Chairman of Ithaca Energy, and with me on the call today are Luciano Vasques, our CEO, and Iain Lewis, our CFO.

Speaker #2: First slide—as you can see—delivering on our strategy. I think this is a perfect example of a first half of the year where we've been executing on all pillars of our strategy.

Speaker #2: And what we'll cover today in our agenda, as you can see on slide 2, is first half 2026 highlights, our strategic and operational review, financial updates, and then we'll open it up for questions and answers.

Speaker #2: If you'll please move to slide 4. At a high level again, our vision for scale, stability, and strength is well demonstrated in our first half 2026.

Yaniv Friedman: High level, again, our vision for scale, stability, and strength, well demonstrated in our H1 2026. Record quarterly production of 131,000 barrels per day of barrels of oil equivalent with an improved cost outlook that supports our robust cash flow generation. I could say that we had, as we said last quarter, we saw the trend going into Q2. We're seeing this trending into Q3, which is a heavy tar quarter for us, but we're recovering very well from the storm season. We're seeing this strong production trending into the Q3 as well. Stability. Rosebank nearing final stages of execution, and we're moving our organic portfolio forward with a pipeline of projects to enable us to take final investment decision on through the end of 2026 and into 2027. Strengths, significant available liquidity. We have $1.9 billion of available liquidity.

Speaker #2: We recorded quarterly production of 131,000 barrels per day of oil equivalent, with an improved cost outlook that supports our robust cash flow generation.

Speaker #2: I could say that we had, as we said last quarter, we saw the trend going into Q2. We're seeing this trending into Q3, which is a heavy TAR quarter for us, but we're recovering very well from this TAR season.

Speaker #2: We're seeing this strong project production trending into the third quarter as well. Stability, Rosebank Engineering, final stages of execution, and we're moving our organic portfolio forward with a pipeline of projects to enable us to take final investment decisions through the end of '26 and into 2027.

Speaker #2: And strengths—significant available liquidity. We have $1.9 billion of available liquidity. We also have an accordion that we can expand in our reserve-based lending facility of about $400 million—so, significant liquidity.

Yaniv Friedman: We also have an accordion that we can expand in our reserve-based lending facility of above $400 million. So significant liquidity. We are also tuned to the market and taking advantage of opportunities. We have done a private bond tap of our Eurobond, 155 million euros at 5.5%, to further support our growth ambitions and optimize our balance sheets. With that, we value distributions. We understand that this is important to our shareholders, and we are announcing today our first interim dividend for 2026 of $255 million. We are upgrading our management guidance of our dividends to $500 to $530 million. Iain will talk through that later as well. If you look to slide 5, what we did in slide 5, we are focusing on stability. We wanted to show that this is not a one-off quarter or one-off H1 of the year.

Yaniv Friedman: We also have an accordion that we can expand in our reserve-based lending facility of above $400 million. So significant liquidity. We are also tuned to the market and taking advantage of opportunities. We have done a private bond tap of our Eurobond, 155 million euros at 5.5%, to further support our growth ambitions and optimize our balance sheets. With that, we value distributions. We understand that this is important to our shareholders, and we are announcing today our first interim dividend for 2026 of $255 million. We are upgrading our management guidance of our dividends to $500 to $530 million. Iain will talk through that later as well. If you look to slide five, what we did in slide five, we are focusing on stability. We wanted to show that this is not a one-off quarter or one-off H1 of the year.

Speaker #2: We're also attuned to the market and taking advantage of opportunities, so we've done a private bond tap of our Eurobond—€155 million at 5.5%—to further support our growth ambitions and optimize our balance sheets.

Speaker #2: And with that, we value distributions. We understand that this is important to our shareholders, and we've announced today our first interim dividend for 2026 of $255 million. We're also upgrading our management guidance for our dividends to $500 to $530 million, and Iain will talk through that later as well.

Speaker #2: If you'll move to slide 5—and what we did in slide 5—we were focusing on stability. We wanted to show that this is not a one-off quarter or a one-off first half of the year.

Speaker #2: What you see here is really a snapshot of the last 24 months since the effective date of our business combination. These are the types of charts that we like: scale, production going up, OPEX going down, and stable cash flow production and distribution.

Yaniv Friedman: What you see here is really a snapshot of the last 24 months since the effective date of our business combination. These are the type of charts that we like. Scale of production going up, OpEx going down, and stable cash flow production and distribution. I could also say, and Luciano will speak to that safety is obviously paramount to us, and we are seeing improved metrics there as well. If you look at this slide, so H1 production in 2026 of 128,000 barrels, OpEx going down from $22 a barrel in 2024 to about $18 in the H1 of 2026. As we said, distributions are important for us. As you can see, we have to date, announced over $1.65 billion in the course of the last three years, and upgrading our dividend guidance range for 2026. We will cover strategic and operational review.

Speaker #2: I could also say—and Luciano will speak to that—that safety is obviously paramount to us, and we're seeing improved metrics there as well.

Speaker #2: So, if you look at this slide, first half production in 2026 is 128,000 barrels. OPEX is going down from $22 a barrel in 2024 to about $18 in the first half of 2026.

Speaker #2: And as we said, distributions are important for us, and as you can see, we've to date announced over $1.65 billion in the course of the last three years, and we're upgrading our dividend guidance range for 2026.

Speaker #2: We'll cover strategic and operational review. I'll hand over to Luciano to talk about safety, production, and projects. Luciano, please.

Yaniv Friedman: I will hand over to Luciano to talk about safety, production, and projects. Luciano, please.

Speaker #3: All right, good morning, everybody. If we now move to slide number 7, our performance in the first half is fully consistent with the pillars of our strategy that we've presented several times.

Luciano Vasques: All right. Good morning, everybody. If we now move to slide number 7, our performance in the H1 is fully consistent with the pillars of our strategy that we have presented several times. I will take you through the first two this morning, extracting value from our versatile portfolio in UK. Progressing discipline, organic flow, growth opportunities, which are strengthening our business for the future. The operational momentum from 2025 carried strongly into H1 2026, delivering clear progress across safety, environmental performance, production efficiency, as Yaniv said, and cost discipline. This, of course, reflects our focus on the operational excellence, which we have done through our Perfect Day, safer, stronger reliability, and a lower operating cost per barrel. On the growth side, we have continued selecting investment across the producing portfolio, prioritizing fast cycle value opportunities on Captain, Cygnus, and also J-Area and Elgin-Franklin, as I will speak through.

Luciano Vasques: All right. Good morning, everybody. If we now move to slide number seven, our performance in the H1 is fully consistent with the pillars of our strategy that we have presented several times. I will take you through the first two this morning, extracting value from our versatile portfolio in UK. Progressing discipline, organic flow, growth opportunities, which are strengthening our business for the future. The operational momentum from 2025 carried strongly into H1 2026, delivering clear progress across safety, environmental performance, production efficiency, as Yaniv said, and cost discipline. This, of course, reflects our focus on the operational excellence, which we have done through our Perfect Day, safer, stronger reliability, and a lower operating cost per barrel. On the growth side, we have continued selecting investment across the producing portfolio, prioritizing fast cycle value opportunities on Captain, Cygnus, and also J-Area and Elgin-Franklin, as I will speak through.

Speaker #3: I'll take you through the first two. This morning, extracting value from our versatile portfolio in the UK, progressing disciplined and organic flow growth opportunities, which are strengthening our business for the future.

Speaker #3: The operational momentum from '25 carried strongly into H1 '26, delivering clear progress across safety, environmental performance, production efficiencies, as Yaniv said, and cost discipline.

Speaker #3: And this, of course, reflects our focus on operational excellence, which we've achieved through our Perfect Day, safer and stronger reliability, and a lower operating cost per barrel.

Speaker #3: On the growth side, we've continued selecting investment across the producing portfolio, prioritizing fast-cycle value opportunities on Captain, Thickness, and also JA and Anglo Franklin, as I'll speak through. At the same time, our organic growth pipeline is moving forward with purpose, with Fotla, Tornado, and Cambo progressing towards readiness for FID.

Luciano Vasques: At the same time, our organic growth pipeline is moving forward with purpose with Fotla, Tornado, and Cambo progressing towards readiness for FID. Rosebank has also reached a major milestone with the FPSO now on location ahead of the expected first production in H1 2027 and following ramp up. If we can now move to slide 8, I want to stress that our excellent overall performance in H1 2026 was underpinned, as Yaniv said, by strong health, safety, and environmental results. For the third quarter on a roll, we recorded tier 1 or tier 2 zero process safety event and sustained again a positive, total recordable incident rate trend at 1.2 cases per million man-hours in H1 and 1.7 on a one-year rolling basis, well below the UK North Sea basin average of 3.95.

Luciano Vasques: At the same time, our organic growth pipeline is moving forward with purpose with Fotla, Tornado, and Cambo progressing towards readiness for FID. Rosebank has also reached a major milestone with the FPSO now on location ahead of the expected first production in H1 2027 and following ramp up. If we can now move to slide eight, I want to stress that our excellent overall performance in H1 2026 was underpinned, as Yaniv said, by strong health, safety, and environmental results. For the third quarter on a roll, we recorded Tier 1 or Tier 2 zero process safety event and sustained again a positive, total recordable incident rate trend at 1.2 cases per million man-hours in H1 and 1.7 on a one-year rolling basis, well below the UK North Sea basin average of 3.95.

Speaker #3: Rosebank has also reached a major milestone, with the FPSO now on location, ahead of the expected first production in H1 2027 and following ramp-up.

Speaker #3: If we can now move to slide 8, I want to stress that our excellent overall performance in H1 2026 was underpinned, as Yaniv said, by strong health, safety, and environmental results.

Speaker #3: For the 10th quarter in a row, we recorded Tier 1 or Tier 2 zero process safety events, and sustained again a positive total recordable incident rate trend at 1.2 cases per million man-hours in H1, and 1.7 on a one-year rolling basis, well below the UK North Sea Basin average of 3.95.

Speaker #3: This is particularly notable given that two operated assets reached cessation of production, and this required greater focus to safely execute non-routine end-of-life activities.

Luciano Vasques: This is particularly notable given that two operated assets reached cessational production, and this required greater focus to safely execute non-routine end of life activities. Both the FPF-1 and Alba FSU were removed from their locations, transferred to the commissioning yards as planned without any recordable incident. The emission performance also remains strong, with emission intensity now at 16.4 kilograms CO2 per barrel equivalent, which is substantially below the basin average of around 25 and continuing to trend downwards. This reflects the increased weighting towards lower emission assets and the retirement, of course, of the higher intensity Alba and GSA fields. If we move now to slide number 8. Sorry, to slide number 9 with production. We achieved, as we said, record production in Q2 2026, averaging 131,000 barrels per day, as operations rebounded strongly from the weather-related challenges experienced in Q1.

Luciano Vasques: This is particularly notable given that two operated assets reached cessational production, and this required greater focus to safely execute non-routine end of life activities. Both the FPF-1 and Alba FSU were removed from their locations, transferred to the commissioning yards as planned without any recordable incident. The emission performance also remains strong, with emission intensity now at 16.4 kilograms CO2 per barrel equivalent, which is substantially below the basin average of around 25 and continuing to trend downwards. This reflects the increased weighting towards lower emission assets and the retirement, of course, of the higher intensity Alba and GSA fields. If we move now to slide number eight. Sorry, to slide number nine with production. We achieved, as we said, record production in Q2 2026, averaging 131,000 bpd, as operations rebounded strongly from the weather-related challenges experienced in Q1.

Speaker #3: Both the FPF1 and Alba FSU were removed from their locations and transferred to decommissioning yards, as planned, without any recordable incident. The emission performance also remained strong, with emission intensity now at 16.4 kilograms of CO2 per barrel equivalent, which is substantially below the basin average of around 25, and continues to trend downwards.

Speaker #3: And this reflects the increased weighting towards lower emission assets and the retirement, of course, of the higher intensity Alba and GSA fields. If we move now to slide number 8—sorry, to slide number 9—with production.

Speaker #3: We achieved, as we said, record production in Q2 '26, averaging 131,000 barrels per day, as operations rebounded strongly from the weather-related challenges experienced in Q1.

Speaker #3: Confirming the robustness of our portfolio despite the challenges, both in the operated and the non-operated assets. This performance supported an average production of 128,000 barrels per day in the first half, and production operations continued strong, as we said, beyond Q2, which provides us confidence in our production outlook for the year. Still, appropriately allowing for the planned impact of the Q3 turnaround season, and the production mix also strengthened, with gas now representing 48% of H1 volumes versus 41% in H1 2025. The shift reflects the strategic portfolio reshaping that we delivered through the M&A activities in 2025, particularly the increased contribution from Cygnus and Seagull gas fields.

Luciano Vasques: Confirming the robustness of our portfolio despite the challenges, both in the operated and the non-operated assets. This performance supported an average production of 128,000 barrels per day in the first half. Production operations continue strong, as we said, beyond Q2, which provides us confidence in our production outlook for the year, still appropriately allowing for the planned impact of the Q3 turnaround season. The production mix also strengthened, with gas now representing 48% of H1 volumes versus 41% in H1 2025. The shift reflects the strategic portfolio reshaping that we delivered through the M&A activities in 2025, particularly the increased contribution from Cygnus and Seagull gas fields. If we move to slide 10 now.

Luciano Vasques: Confirming the robustness of our portfolio despite the challenges, both in the operated and the non-operated assets. This performance supported an average production of 128,000 bpd in the first half. Production operations continue strong, as we said, beyond Q2, which provides us confidence in our production outlook for the year, still appropriately allowing for the planned impact of the Q3 turnaround season. The production mix also strengthened, with gas now representing 48% of H1 volumes versus 41% in H1 2025. The shift reflects the strategic portfolio reshaping that we delivered through the M&A activities in 2025, particularly the increased contribution from Cygnus and Seagull gas fields. If we move to slide 10 now.

Speaker #3: If we move to slide 10 now, at Captain, the deployment of the PBLJ is already demonstrating the value of our industry collaboration model, unlocking near-term production through a three-month real-world program on well B15, which is progressing well and expected to be on stream from early Q4.

Luciano Vasques: At Captain, the deployment of the PBLJ is already demonstrating the value of our industry collaboration model, unlocking near-term production through a three-month re-drill program on Well B-15, which is progressing well and expected to be on stream from early Q4. The wider Captain 13th well campaign remains on schedule. The well C-75 was successfully brought on stream in Q2. Following the current ongoing rig maintenance activity, the final well of the campaign, which is an injector, will be executed. Captain continues to deliver fast cycle, high return opportunities with the 14th campaign planned to follow immediately after the 13th one. In parallel, sanction of the Captain subsea well campaign, which comprises two wells and will leverage, again, the PBLJ capacity, is expected to be reached in Q4 this year.

Speaker #3: The wider Captain 13th well campaign remains on schedule. The well C75 was successfully brought on stream in Q2, and following the current ongoing rig maintenance activity, the final well of the campaign, which is an injector, will be executed.

Speaker #3: Captain continues to deliver fast-cycle, high-return opportunities, with the 14th campaign planned to follow immediately after the 13th one. In parallel, sanction of the Captain subsea well campaign, which comprises two wells and will leverage it again, the PBLJ capacity is expected to be reached in Q4 this year.

Speaker #3: The first production from the subsea campaign is targeted for 2028, adding further depth to Captain's long-term production outlook, which is underpinned by the EOR Stage 1 and Stage 2 initiatives that are delivering in line with airfield development plans.

Luciano Vasques: The first production from the subsea campaign is targeted for 2028, adding further depth to Captain's long-term production outlook, which is underpinned by the EOR Stage 1 and Stage 2 initiatives that are delivering in line with our field development plans. If we now move to slide 11, we talk about Cygnus, where the infill drilling program continues to make strong operational progress. The C-13 well, which was brought on stream in May, is performing ahead of expectations thanks to a successful completion, design, and execution of the hydraulic fracturing program. C-14 has since been spudded and remains on track to flow first gas in November. Before then, the campaign progresses to C-15.

Speaker #3: If we now move to slide 11, we talk about Cygnus, where the infill drilling program continues to make strong operational progress. The C13 well, which was brought on stream in May, is performing ahead of expectations, thanks to a successful completion design and execution of the hydraulic fracturing program.

Speaker #3: C14 has since been spotted and remains on track for fresh gas in November. Before then, the campaign progresses to C15. On completion of C16, the rig is then expected to move to the Bravo area in Q2 2027 for the C16 and C17, two-well campaigns.

Luciano Vasques: On completion of C-15, the rig then is expected to move to the Bravo area in Q2 2027 for the C-16 and C-17 two well campaign, which we expect to sanction in the H2 of this year, subject to the required field development plan approvals. C-16 is a clear example of production-led exploration, reinforcing our commitment to maximize value from Cygnus. So timely regulatory approval is essential to maintain momentum and support continued delivery of domestic gas from one of the UK's most significant fields. If we move to slide 12. Now we turn to two key assets in our non-operated portfolio. J-Area continues to provide a stable, low-cost production contribution, supported by strong performance from Jocelyn South and Talbot, which continue to be ahead of expectation.

Speaker #3: Which we expect to sanction in the second half of this year, subject to the required field development plan approvals. C16 is a clear example of production-led exploration, reinforcing our commitment to maximize value from Cygnus.

Speaker #3: So, timely regulatory approval is essential to maintain momentum and support continued delivery of domestic gas from one of the UK's most significant fields. If we move to slide 12, we now turn to two key assets in our non-operated portfolio.

Speaker #3: Jay Area continues to provide a stable, low-cost production contribution, supported by strong performance from Jostlin South and Talbot, which continue to be ahead of expectations.

Speaker #3: The operator performance remains high, underpinned by an open and constructive partnership, and the assets offer further upside through well interventions, new infill wells, as well as production and infrastructure-led exploration and appraisal opportunities such as Courageous and Peach, with the potential to replicate the Jostlin South success.

Luciano Vasques: The operator performance remains high, underpinned by an open and constructive partnership, and the assets offer further upside through well interventions, new infill wells, as well as production and infrastructure-led exploration and appraisal opportunities such as Courageous and Peach, with the potential to replicate the Jocelyn South success. At Elgin-Franklin, with the new operator, NEO NEXT+, we have sanctioned a two-well program comprising EIA and EIH, which was an opportunity previously deferred in response to the Energy Profits Levy. The campaign is scheduled to start in Q4 this year and represents a short cycle, again, high return investment targeting 4.5 thousand barrels per day of net incremental production in 2028, with EIA expected on stream in January and EIH in August.

Luciano Vasques: The operator performance remains high, underpinned by an open and constructive partnership, and the assets offer further upside through well interventions, new infill wells, as well as production and infrastructure-led exploration and appraisal opportunities such as Courageous and Peach, with the potential to replicate the Jocelyn South success. At Elgin-Franklin, with the new operator, NEO NEXT+, we have sanctioned a two-well program comprising EIA and EIH, which was an opportunity previously deferred in response to the Energy Profits Levy. The campaign is scheduled to start in Q4 this year and represents a short cycle, again, high return investment targeting 4.5,000 bpd of net incremental production in 2028, with EIA expected on stream in January and EIH in August.

Speaker #3: And at Actinia Franklin, with the new operator Neonex Plus, we have sanctioned a two-well program comprising EIJ and EIH, which was an opportunity previously deferred in response to the Energy Profit Levy.

Speaker #3: And the campaign is scheduled to start in Q4 this year and represents a short-cycle, high-return investment, targeting 4,500 barrels per day of net incremental production.

Speaker #3: In 2028, with EIJ expected on stream in January and EIH in August. And then, if we move to slide 13, we talk about Rossbank.

Luciano Vasques: If we move to slide 13, we talk about Rose Bank, which continues to move into its final stages of execution, with the operator now narrowing first production in the H1 2027 and ramp up to plateau from summer next year, subject to regulatory approvals. A major milestone was achieved in June with the FPSO arriving and being moored on location after a short dock phase in Bergen. At this moment, hookup activities are ongoing, which will be followed by the commissioning prior to first oil. Following the April equipment handling incident, the drilling rig returned to service at the end of July after a period off hire and has restarted well activities, focused now on delivering the minimum well stock required for the planned ramp up.

Speaker #3: Which continues to move into its final stages of execution, with the operator now narrowing first production to the first half of 2027, and ramp-up to plateau from summer next year.

Speaker #3: Subject to regulatory approvals, a major milestone was achieved in June with the FPSO arriving and being moored on location after a short dock phase in Bergen.

Speaker #3: And at this moment, hookup activities are ongoing, which will be followed by the commissioning prior to first oil. Following the April equipment handling incident, the drilling rig returned to service at the end of July after a period of hire, and has restarted well activities, focused now on delivering the minimum well stock required for the planned ramp up.

Speaker #3: 2026 capital spending is now expected to be lower than previously guided, reflecting the rephasing of this drilling activity and associated costs into 2027, including the final FPSO commissioning.

Luciano Vasques: 2026 capital spending now expected to be lower than previously guided, reflecting the rephasing of this drilling activity and associated costs into 2027, including the final FPSO commissioning. Rose Bank remains attractive as a project with expected post-tax CapEx below $4 per barrel equivalent, reducing to below 3.5 with the anticipated high value eighth well and an overall cost performance within project contingency envelope. To close, we go in slide 14, our key organic growth projects, Fotla, Tornado, and Cambo, have all progressed materially and now are technically assured with front-end engineering design and tendering largely complete. Fotla is moving towards execution, supported by the successful farm down and risk-sharing agreement with Harbour Energy. The key long-lead items, including installation vessels and PBLJ drilling rig capacity, have been secured, reducing development risk and increasing confidence in reaching FID in 2026.

Speaker #3: Rossbank remains attractive as a project with expected post-tax capex below $4 per barrel equivalent, reducing to below $3.50, with the anticipated high-value A12 and overall cost performance within the project contingency envelope.

Speaker #3: And to close, we go to slide 14. Our key organic growth projects—Fotla, Tornado, and Cambo—have all progressed materially and now are technically assured, with front-end engineering design and tendering largely complete.

Speaker #3: Fortla is moving towards execution, supported by the successful firm-down and rig sharing agreement with Harbour Energy. The key long-lead items, including installation vessels and PBLJ drilling rig capacity, have been secured, reducing development risk and increasing confidence in reaching FAD in 2026.

Speaker #3: The West of Shetland remains central to our strategy and is an important growth basin. Tornado will be a key gas enabler for future tiebacks and has advanced towards FID, following the obtainment of an 18-month license extension to March 2028.

Luciano Vasques: The West of Shetland remains central to our strategy and an important growth basin. Tornado will be a key gas enabler for future tiebacks and has advanced towards FID following the obtaining of 18 months license extension to March 2028, with critical long-lead items and vessels secured alongside our partner, Adura, subject to regulatory approvals. Cambo, the largest pre-FID and developed discovery of the UK continental shelf, remains a strategically important option for both Ithaca and the UK indeed. With front-end engineering and tendering substantially complete, major contracts ready for award, value engineering, re-tendering, commercial, and financial work streams progressing, the project is increasingly de-risked as it moves towards sanction and equity farm-down. With that, I pass the word again to Yaniv.

Speaker #3: With critical long-lead items and vessels secured alongside our partner Adura, subject to regulatory approvals. And Cambo, the largest pre-FID and undeveloped discovery on the UK Continental Shelf, remains a strategically important option for both Ithaca and the UK, indeed.

Speaker #3: With front-end engineering and tendering substantially complete, major contracts ready for award, value engineering, rig tendering, and commercial and financial workstreams progressing, the project is increasingly de-risked as it moves towards sanction and equity firm-down.

Speaker #3: With that, I pass the word again to Yaniv.

Speaker #1: Thank you, Luciano. You just spoke about organic growth opportunities. If you move to slide 15, it's really a snapshot of the high-quality projects that we have right now and our ability to convert 200 million barrels of resources into production over the course of the next 18 months through FID decisions that we intend to make.

Yaniv Friedman: Thank you, Luciano. You just spoke about the organic growth opportunities. If you move to slide 15, it is really a snapshot of kind of the high-quality projects that we have right now and our ability to convert 200 million barrels of resources into production over the course of the next 18 months through FID decisions that we intend to make. I won't run through the projects again, but this gives you a good idea on the organic growth potential that we have and the materiality and quality of our pipeline. If we move to slide 16. We have shared a version of the slide in one of our consensus call before, and we talked about how we are seeing visibility on a 1 billion barrel of license potential. Luciano alluded to that as well.

Speaker #1: I won't run through the projects again, but this gives you a good idea of the organic growth potential that we have, as well as the materiality and quality of our pipeline.

Speaker #1: If we move to slide 16. So, we've shared a version of the slides in one of our courses before, and we talked about how we're seeing visibility on a one billion barrel license potential.

Speaker #1: And Luciano alluded to that as well. We're prioritizing infrastructure-led exploration and production-led exploration opportunities as an additional avenue for long-term value creation. With our 660 million barrels of oil equivalent of 2P/2C resources, we are seeing kind of unbooked 2C contingent and prospective resources up to 1 billion.

Yaniv Friedman: We are prioritizing infrastructure-led exploration, production-led exploration opportunities as additional avenue for long-term value creation with our 660 million BOE of 2P, 2C resources. We are seeing kind of unbooked 2C contingent and prospective resources up to 1 billion. But we also have another tool, which is the Transitional Energy Certificates that are providing a pathway beyond the existing license resources for additional value creation. We are working this, and you see this, and we are maturing those, and they will obviously, through the maturity, we will convert them to resources and then to projects that we can take final investment decision on. We are seeing significant value in the UK continental shelf. When people talk about no new exploration licenses, what we want to show is that even without new exploration licenses formally, we have where to grow in the UK further.

Speaker #1: But we also have another tool, which is the transitional energy certificates that are providing a pathway beyond the existing licensed resources for additional value creation.

Speaker #1: And we're working this, and you see this, and we're maturing those, and they will obviously, through the maturity, we'll convert them to resources and then to projects that we can take final investment decision on.

Speaker #1: So we're seeing significant value in the UK Continental Shelf. And when people talk about no new exploration licenses, what we want to show is that even without new exploration licenses formally, we have where to grow in the UK further.

Yaniv Friedman: Move active but patient pursuit of M&A. What we are doing as well is optimizing our balance sheet to support our growth ambitions and strategy. If we look at the UK, and kind of consolidation in our core UKCS market. We just talked about our organic portfolio and obviously projects or potential acquisitions, apologies, in the UK needs to compete for capital with our organic projects. We have a very strong portfolio of organic projects, but at the same time, we are looking at opportunities. As we always say, we look at this with a lens, so they need to meet our investment thresholds. When we look at international expansions or focused international expansions, so we are maintaining an active but patient pursuit of opportunities. We have a very clear strategy around this.

Speaker #1: Active, but patient pursuit of M&A, and what we're doing as well is optimizing our balance sheet to support our growth ambitions and strategy. If we look at the UK and the consolidation in our core UKCS market — so, you just talked about our organic portfolio and, obviously, projects or potential acquisitions in the UK need to compete for capital with our organic projects.

Speaker #1: And we have a very strong portfolio of organic projects, but at the same time, we are looking at opportunities. And, as we always say, we look through a value lens, so they need to meet our investment thresholds.

Speaker #1: When we look at international expansions, or focused international expansion, we're maintaining an active, patient pursuit of opportunities, and we have a very clear strategy around this, right?

Speaker #1: So, we want to deliver both growth and yield through these acquisitions, along with sustainable production and cash flows. It's important for us to keep the strength of our balance sheet, agility, and flexibility, so we're imposing a ceiling on our leverage position.

Yaniv Friedman: We want to deliver both growth and yield through these acquisitions, and sustainable production and cash flows. It is important for us to keep the strength of our balance sheet, agility, and flexibility. So we are imposing a ceiling on our leverage position. We are looking at regions that would not be a one-off, that would offer further expansion opportunities to ensure that we can develop our business, and continue and ensure sustainability and scale going forward. At the same time, regions or geographies that are offering a stable fiscal and regulatory regime. So, we talked about our available firepower in terms of liquidity, and that is definitely supporting potential M&A activities in the future. With that, I will hand over to Iain Lewis for our H1 financial update. Iain, please.

Speaker #1: And we're looking at regions that would not be a one-off, that would offer further expansion opportunities to ensure that we can develop our business and continue to ensure sustainability and scale going forward.

Speaker #1: And at the same time, regions or geographies that are offering a stable fiscal and regulatory regime. So, we talked about our available firepower in terms of liquidity.

Speaker #1: And that's definitely supporting potential M&A activity in the future. With that, I will hand over to Iain Lewis for our first half financial update.

Speaker #1: Ian, please.

Speaker #2: Thanks, Yaniv. Good morning, all. If you can go to slide 19, please. As usual, we call out the key numbers here on the finance side.

Iain Lewis: Thanks, Yaniv. Good morning, all. If you can go to slide 19, please. As usual, we call out the key numbers here on the finance side. The green numbers really describing the performance in the half year, and then the blue ones are kind of financial position at the close of June. So strong production delivery, 128,000 barrels a day, remembering that we recovered from some difficult weather in January in the production front, so posting strong production delivery. The cost per barrel result of $18 is very pleasing. Our medium-term plan, of course, has been to maintain the $20 barrel region, able to push that down to $18 this half year. That is the aim as you move forward in the year. Able to today announce reduced management guidance on OpEx due to the cost control in the company.

Speaker #2: The green numbers are really describing the performance in the half year, and then the blue ones are kind of the financial position at the close of June.

Speaker #2: So strong production delivery—128,000 barrels a day—remembering that we recovered from some difficult weather in January on the production front. So, posting strong production delivery.

Speaker #2: The cost per barrel result of $18 is very pleasing. Our medium-term plan, of course, has been to maintain the $20-a-barrel region, and we've been able to push that down to $18 this half-year.

Speaker #2: And that is the aim as we move forward in the year—able to today announce reduced management guidance on OPEX due to the cost control in the company.

Speaker #2: And that enables additional free cash flow and EBITDAX. So, you can see the £1.1 billion of EBITDAX for the half year, and free cash flow of nearly half a billion.

Iain Lewis: That enables additional free cash flow and EBITDAX. So you can see the 1.1 EBITDAX for the half year. Free cash flow of nearly half a billion, and net cash from ops of nearly a billion, and a profit of 127 million. So on track, robust, and continued good financial delivery. I suppose in terms of the plans for the future and the optionality that Yaniv and Luciano referred to, we are maintaining a high liquidity and low net debt position. 0.49 times pro forma leverage at the end of June, with 1.9 billion of liquidity available. That is part of our strategy. It enables us to look at opportunities with clear pathways to deliver the financial capability to land them, and as part of our story as we move forward. Slide 20. If we can move to that, summarizes the financial position in a bit more detail.

Iain Lewis: That enables additional free cash flow and EBITDAX. So you can see the 1.1 EBITDAX for the half year. Free cash flow of nearly half a billion, and net cash from ops of nearly a billion, and a profit of 127 million. So on track, robust, and continued good financial delivery. I suppose in terms of the plans for the future and the optionality that Yaniv and Luciano referred to, we are maintaining a high liquidity and low net debt position. 0.49x pro forma leverage at the end of June, with 1.9 billion of liquidity available. That is part of our strategy. It enables us to look at opportunities with clear pathways to deliver the financial capability to land them, and as part of our story as we move forward. Slide 20. If we can move to that, summarizes the financial position in a bit more detail.

Speaker #2: And the net cash from operations of nearly $1 billion, and a profit of $127 million—so on track, robust, and continued good financial delivery.

Speaker #2: I suppose, in terms of the plans for the future and the optionality that Yaniv and Luciano referred to, we are maintaining a high liquidity and low net debt position—0.49 times pro forma leverage at the end of June, with £1.9 billion of liquidity available.

Speaker #2: That is part of our strategy. It enables us to look at opportunities with clear pathways to deliver the financial capability to land them. And it's part of our story as we move forward.

Speaker #2: Slide 20, if we can move to that, summarizes the financial position in a bit more detail. You can see that we are, at the end of June, in the net debt position, sitting on a significant net cash.

Iain Lewis: You can see that we are at the end of June in the net debt position, sitting on significant net cash on undrawn RBL of GBP 3.3 billion and GBP 571 million of cash, taking net debt down to just over $1 billion. You can see in terms of the liquidity position there that our undrawn RBL of GBP 1.3 billion and the cash balance can be augmented by an open, an untriggered according facility on the RBL. So material debt capacity in the business and cash position. That was added to in the last quarter by the bond tap. As Yaniv mentioned, this is an opportunistic and highly valuable delivery of additional cash flow. Strong demand for our bonds in the market. Responding to that and adding to liquidity on the Eurobond was well received and sets us up as we move into the next phase of the business.

Speaker #2: So, an undrawn RBL of $1.3 billion and $571 million of cash, taking net debt down to just over $1 billion. And you can see, in terms of the liquidity position there, that our undrawn RBL of $1.3 billion and the cash balance can be augmented by an open and untriggered accordion facility on the RBL.

Speaker #2: So, material debt capacity in the business and cash position. Now, that was added to in the last quarter by the bond tap.

Speaker #2: And as Yaniv mentioned, this is an opportunistic and highly valuable delivery of additional cash flow. There is strong demand for bonds in the market. Responding to that and adding to liquidity on the Eurobond was well received.

Speaker #2: And set us up as we move into the next phase of the business. Leverage, you can see, has been very stable at 0.5 times now, from December '22 right through to where we are today.

Iain Lewis: Leverage, you can see, has been very stable in the 0.5 times now through from December 2022 right through to where we are today. So stable management of the balance sheet and significant liquidity capacity at the end of the quarter. Move to slide 21, the hedge book, which continues to be of significant interest, obviously, in a volatile oil and gas market. You can see on the charts here that we've shown the forward curve as at 17 August. The average hedge floor and average hedge ceiling that is in our hedge book, the average ceiling being the combination of swaps, collar floors, and also wide collar floors that we put together.

Iain Lewis: Leverage, you can see, has been very stable in the 0.5x now through from December 2022 right through to where we are today. So stable management of the balance sheet and significant liquidity capacity at the end of the quarter. Move to slide 21, the hedge book, which continues to be of significant interest, obviously, in a volatile oil and gas market. You can see on the charts here that we've shown the forward curve as at 17 August. The average hedge floor and average hedge ceiling that is in our hedge book, the average ceiling being the combination of swaps, collar floors, and also wide collar floors that we put together.

Speaker #2: So, stable management of the balance sheet and significant liquidity capacity at the end of the quarter. Move to slide 21. The hedge book, which continues to be of significant interest, obviously, in a volatile oil and gas market.

Speaker #2: You can see on the charts here that we've shown the forward curve as at 17th of August, then the average hedge floor and average hedge ceiling that is in our hedge book—the average ceiling being the combination of swaps, collar floors, and also wide collar floors that we put together.

Speaker #2: I think the key thing to point out to everyone is that we are well hedged for the next two years, and we are right now just riding the price curve and taking the upside on the unhedged barrels.

Iain Lewis: I think the key thing to point out to everyone is that we are well hedged the next two years. We are right now just riding the price curve and taking the upside on the unhedged barrels. You can see that what we've been able to do on the hedge front in oil particularly is to take the hedge ceiling and floors and move them upwards as we move through into 2028. Able to add to the hedge book through 2028 in these last few months. That's really been our focus, as has been our characteristic trend here. We look 12, 24, 36 months in advance and seek to establish strong cash flow delivery certainty out ahead in the business. We see that on the oil side.

Speaker #2: You can see that what we've been able to do on the hedge front, and oil particularly, is to take the hedge ceiling and floors and move them upwards as we move through to 2028.

Speaker #2: We've been able to add to the hedge book through 2028 in the last few months. That's really been our focus. As has been our characteristic trend here, we look 12, 24, 36 months in advance and seek to establish strong cash flow delivery certainty out ahead in the business.

Speaker #2: And we see that on the oil side. On gas, you can see there's a significant upside in the market currently on the front end.

Iain Lewis: On gas, you can see there's a significant upside in the market currently on the front end. We deliberately have left more unhedged on gas at the front end for exactly this kind of eventuality. In Q4 this year, for example, when prices are currently sitting at 150 and above, we're 30% unhedged for gas in Q4 2026. So I think continuing the trend of long-term stability in our cash delivery of the business by hedging well but leaving upside on the table to benefit from just exactly the kind of environment we're seeing at the moment. Then to slide 22, and of course, the output of all of the management of the business from an ATC perspective and production and cost management and good investment is the ability to deliver dividends to shareholders.

Speaker #2: And we deliberately have left more unhedged on gas at the front end for exactly this kind of eventuality. In Q4 this year, for example, when prices are currently sitting at 150 and above, we're 30% unhedged for gas in Q4 '26.

Speaker #2: So, I think continuing the trend of long-term stability in our cash delivery for the business by hedging well, but leaving upside on the table to benefit from just exactly the kind of environment we're seeing at the moment.

Speaker #2: Leaving slide 22. And, of course, the output of all of the management of the business from an ATC perspective—and production and cost management and good investment—is the ability to deliver dividends to shareholders.

Speaker #2: We are very satisfied with the record we have here of delivering returns from '23 at $400 million, increased in '24 and '25 to $500 million, and now, as per our guidance update today, expecting to be about $500 million for 2026, with a $500 to $530 million range.

Iain Lewis: We are very satisfied with the record we have here of delivering returns from 2023 at $400 million, increased in 2024 and 2025 to $500 million. Now, as per our guidance update today, expecting to be above $500 million for 2026, with a $500 to $530 million range representing 30% post-tax cash from operations. Remember, we moved to a 50/50 payment structure in terms of the dividend this year, so that we have a flat dividend across the year. We are, for this H1, delivering a $255 million dividend as the first interim declared today. Obviously, on the market gains numbers, the $500 to $530 tells you there is some upside in that, but delivering $255 million for the H1. So, solid return on the dividend upgrading thanks to production prices and cost management. We move to slide 24.

Speaker #2: Representing 30% post-tax cash from operations. Now remember, we moved to a 50-50 payment structure in terms of the dividend this year, so that we have a flat dividend across the year.

Speaker #2: We are, for this half year, delivering a £255 million dividend as the first interim declared today. Obviously, on the market gains numbers, the £530 million tells, but delivering £255 million for the half year.

Speaker #2: So, solid return on the dividend, upgrading thanks to production, prices, and cost management. We move to slide 24; this will just reinforce the guidance that we gave at the start of the year.

Iain Lewis: This will just reinforce the guidance that we gave at the start of the year and upgrades in a couple of areas. We are reaffirming all guidance across our suite of metrics here. We are reducing the OpEx, reducing it $20 million at the midpoint. That is at USD 1.35 rates. Of course, a significant amount of our expenditure is in pounds, and actually, the average rate for the first six months has been below USD 1.35, so the FX-adjusted reduction would be lower. But good, strong cost performance in the H1 has led us to be able to forecast out a reduction for the full year. You can see Rosebank CapEx down $35 million at the midpoint. That again is reflective, as Luciano mentioned, of the Rosebank rig deferral, given the three and a half months of delay on the rig program.

Iain Lewis: This will just reinforce the guidance that we gave at the start of the year and upgrades in a couple of areas. We are reaffirming all guidance across our suite of metrics here. We are reducing the OpEx, reducing it $20 million at the midpoint. That is at $1.35 rates. Of course, a significant amount of our expenditure is in pounds, and actually, the average rate for the first six months has been below $1.35, so the FX-adjusted reduction would be lower. But good, strong cost performance in the H1 has led us to be able to forecast out a reduction for the full year. You can see Rosebank CapEx down $35 million at the midpoint. That again is reflective, as Luciano mentioned, of the Rosebank rig deferral, given the three and a half months of delay on the rig program.

Speaker #2: And upgrades in a couple of areas. So, we are reaffirming all guidance across our suite of metrics here, but we are reducing OPEX—reducing it by $20 million at the midpoint.

Speaker #2: That's at 135 US dollar rates. Of course, a significant amount of our expenditures are in pounds, and actually, the average rate for the first six months has been below 135.

Speaker #2: So, the FX-adjusted reduction would be lower. But good, strong cost performance in the half year has led us to be able to forecast out a reduction for the full year.

Speaker #2: But you can see Rosebank CapEx down $35 million at the midpoint. That, again, is reflective, as Luciano's mentioned, of the Rosebank rig deferral, given the three and a half months of delay on the rig program.

Speaker #2: But again, as referred to, not impacting first oil, and the ramp-up through 2027. All of that flows through, with higher prices, into a higher dividend of $500 to $530 million.

Iain Lewis: Again, as referred to, not impacting first oil and the ramp up through 2027. All of that flowing through with higher prices into a higher dividend of $500 to $530 million as outlined. So handing back to you, Yaniv, for slide 25 to close us out.

Speaker #2: As outlined. So, handing back to Yaniv for slide 25 to close us out.

Speaker #1: Thanks, Iain. As mentioned, slide 25—just some closing remarks. So, record quality production, as mentioned: 130,000 barrels per day production that we've achieved in Q2, trending into Q3.

Yaniv Friedman: Thanks, Iain. As mentioned, slide 25, just some closing remarks. So, record quality production as mentioned, 131,000 barrels per day production that we have achieved in Q2, trending into Q3, and strengthening confidence in our full year production outlook, and management guidance reaffirmed. Disciplined and agile balance sheet management. Strong capital generation. Opportunistic on tap, as Iain mentioned, that supports increasing our firepower to continue and deliver growth in the business. We are accelerating organic investment delivery with incremental barrels in a high commodity environment. So, immediate deployment of the PBLJ rig to the Captain B-15 well. Depth and quality of our organic portfolio with growing momentum towards final investment decision on several projects, and focusing on building the next wave of optionality beyond the 1 billion barrels of oil equivalent resource potential that we believe is definitely doable. At the same time, delivering attractive returns to shareholders.

Yaniv Friedman: Thanks, Iain. As mentioned, slide 25, just some closing remarks. So, record quality production as mentioned, 131,000 bpd production that we have achieved in Q2, trending into Q3, and strengthening confidence in our full year production outlook, and management guidance reaffirmed. Disciplined and agile balance sheet management. Strong capital generation. Opportunistic on tap, as Iain mentioned, that supports increasing our firepower to continue and deliver growth in the business. We are accelerating organic investment delivery with incremental barrels in a high commodity environment. So, immediate deployment of the PBLJ rig to the Captain B-15 well. Depth and quality of our organic portfolio with growing momentum towards final investment decision on several projects, and focusing on building the next wave of optionality beyond the 1 billion barrels of oil equivalent resource potential that we believe is definitely doable. At the same time, delivering attractive returns to shareholders.

Speaker #1: And strengthening confidence in our full-year production outlook, and management guidance reaffirmed. Disciplined and agile balance sheet management. Strong cash flow generation. Opportunistic bond tap, as Iain mentioned.

Speaker #1: That supports increasing our firepower to continue and deliver growth in the business. We're accelerating organic investment delivery, with incremental barrels in a high commodity environment.

Speaker #1: So, immediate deployment of the TBLJ rig to the Captain B15 well. Depth and quality of our organic portfolio, with growing momentum towards final investment decision on several projects.

Speaker #1: And focusing on building the next wave of optionality beyond the 1 billion barrels of oil equivalent resource potential that we believe is definitely doable.

Speaker #1: And at the same time, delivering attractive returns to shareholders. The first tranche of the 2026 dividend of $255 million was declared today, and we are upgrading our dividend guidance for the full year of 2026, as Iain said.

Yaniv Friedman: First tranche of 2026 dividend of $255 million declared today, upgrading our dividend guidance for the full year of 2026, as Iain said, with some potential upside. With that, before we move to questions and answers, as always, I would like to take the opportunity to thank the entire Ithaca Energy team. Yes, you are seeing and hearing us here, but this is the work of many behind the scenes, I would like to thank them on behalf of all of us. With that, Drew, I hand over to you, we will be happy to take questions.

Speaker #1: With some potential upside. With that, and before we move to questions and answers, as always, I would like to take the opportunity to thank the entire Ithaca Energy team.

Speaker #1: Yes, you're seeing and hearing us here, but this is the work of many behind the scenes. I would like to thank them on behalf of all of us.

Speaker #1: With that, Drew, I'll hand over to you. And we'll be happy to take questions.

Speaker #3: Thank you. We can now start today’s Q&A session. If you would like to ask a question on today’s call, please press star followed by one on your telephone keypad now.

Operator: Thank you. We can now start today's Q&A session. If you would like to ask a question on today's call, please press star followed by 1 on your telephone keypad now. To withdraw your question, it is star followed by 2. With that, our first question from Cian Evans-Cowey from Bank of America. Your line is now open. Please go ahead with your question.

Operator: Thank you. We can now start today's Q&A session. If you would like to ask a question on today's call, please press star followed by one on your telephone keypad now. To withdraw your question, it is star followed by two. With that, our first question from Cian Evans-Cowie from Bank of America. Your line is now open. Please go ahead with your question.

Speaker #3: And to withdraw your question, it's star followed by two. With that, our first question is from Kian Evans Cowie from Bank of America. Your line is now open.

Speaker #3: Please go ahead with your question.

Speaker #2: Hello, good morning everyone. Thank you very much for taking my questions. I just have two pleas, if I may. So, firstly, it's nice to see the dividend guidance upgrade today.

Cian Evans-Cowey: Hello. Good morning, everyone. Thank you very much for taking my questions. I just have two, please, if I may. Firstly, it is nice to see the dividend guidance upgrade today. But given your payout policy, there is also an implicit CFO upgrade in there. Iain, you spoke a bit about this, but it would be helpful if you could just talk through perhaps in a bit more detail the moving parts in this upgrade, please. I know some of it, as you mentioned, is related to your OpEx guide reduction. Given that your production guide is unchanged, I suppose, what are the other components that are in there? Then just related to that, if you could talk us through again what your assumptions are that you are making for the rest of the year on the macro front to arrive at that guidance, please.

Cian Evans-Cowie: Hello. Good morning, everyone. Thank you very much for taking my questions. I just have two, please, if I may. Firstly, it is nice to see the dividend guidance upgrade today. But given your payout policy, there is also an implicit CFO upgrade in there. Iain, you spoke a bit about this, but it would be helpful if you could just talk through perhaps in a bit more detail the moving parts in this upgrade, please. I know some of it, as you mentioned, is related to your OpEx guide reduction. Given that your production guide is unchanged, I suppose, what are the other components that are in there? Then just related to that, if you could talk us through again what your assumptions are that you are making for the rest of the year on the macro front to arrive at that guidance, please.

Speaker #2: But given your payout policy, there's also an implicit CFO upgrade in there. And Iain, you spoke a bit about this. But it would be helpful if you could just talk through, perhaps in a bit more detail, the moving parts in this upgrade, please.

Speaker #2: I know some of it, as you mentioned, is related to your OPEX guide reduction. But given that your production guide is unchanged, I suppose—what are the other components that are in there?

Speaker #2: And then, just related to that, if you could talk us through again what your assumptions are that you're making for the rest of the year on the macro front to arrive at that guidance, please.

Speaker #2: And then for my second question, on the production profile side of things, if my memory serves me correctly, your maintenance drop-off should look substantially shallower this year compared to last year.

Cian Evans-Cowey: Then, for my second question, on the production profile side of things, if my memory serves me correctly, your maintenance drop-off should look substantially shallower this year, compared to last year. Is this still the working assumption? Then how would you guide us to think about the movement or the quarterly delta for Q3 and Q4? Thank you.

Cian Evans-Cowie: Then, for my second question, on the production profile side of things, if my memory serves me correctly, your maintenance drop-off should look substantially shallower this year, compared to last year. Is this still the working assumption? Then how would you guide us to think about the movement or the quarterly delta for Q3 and Q4? Thank you.

Speaker #2: I mean, is this still the working assumption? And then, how would you guide us to think about the movement, or the quarterly delta, for Q3 and Q4?

Speaker #2: Thank you.

Speaker #4: Thanks, Kian. I'll move to the first one there, as requested. So yeah, I mean, look, our guidance on the dividend upgrade is really driven by pricing, but also by cost control.

Iain Lewis: Thanks, Cian. I will maybe take the first one there as requested. Our guidance on dividend upgrade is really driven by pricing, but also by cost control. As has been mentioned, we are stable in our production range and continue to expect to deliver within that. Costs have been well managed, a little bit of FX help as well, but this is largely cost management. In terms of pricing, price assumptions, obviously, we do not give specific price assumptions. I would say our hedge book probably tells you a lot of the story. If you look for the rest of the year, we have this as Slide 21. We are kind of 85% downside protected on oil at $60 for the next 6 months. You can assume that the bottom end of our dividend range is kind of correlated in that kind of region.

Speaker #4: So, as has been mentioned, we are stable in our production range, and they continue to expect to deliver within that. Costs have been well managed.

Speaker #4: A little bit of FX help as well, but this is largely cost management. In terms of pricing and price assumptions, obviously, we don't give specific price assumptions.

Speaker #4: But actually, our hedge book probably tells you a lot of the story if you look for the rest of the year. We have this in Slide 21.

Speaker #4: We're kind of 85% downside protected on oil at $60 for the next six months. So, you can assume that the bottom end of our dividend range is kind of correlated in that region.

Speaker #4: So, I guess that's the kind of downside position. Obviously, that limits the upside, but that's part of the oil price protection that we deliver through the hedge book.

Iain Lewis: I guess that is the kind of downside position. Obviously, that limits the upside, but that is part of the oil price protection that we deliver through the hedge book. On gas, as you say, we have got significant downside protection, but also 26% upside exposure on unhedged barrels for the second half of the year with 30% unhedged in Q4. Those are the kind of numbers we are dealing with as we get to our range of dividend position. Of course, as prices move and work through and costs are driven and production managed, we may well be giving guidance later in the year, a different dividend. It is not impossible that it goes higher, of course. We will continue to keep the market updated. On production, we have Odin Estensen with us, the COO, who is very well placed to talk to the turnaround this year compared with last year.

Speaker #4: But on gas, as you say, we've got significant downside protection but also 26% upside exposure on unhedged barrels for the second half of the year.

Speaker #4: With 30% unhedged in Q4, those are the kind of numbers we're dealing with as we get to our range of dividend position. But of course, as prices move, and work through, and costs are driven, and production managed, we may well be giving guidance later in the year on a different dividend.

Iain Lewis: Of course, as prices move and work through and costs are driven and production managed, we may well be giving guidance later in the year, a different dividend. It is not impossible that it goes higher, of course. We will continue to keep the market updated. On production, we have Odin Estensen with us, the COO, who is very well placed to talk to the turnaround this year compared with last year.

Speaker #4: It's not impossible that it goes higher, of course. We'll continue to keep the market updated. On production, we have Odin Essenson with us, the COO, who is very well placed to talk to the turnaround this year compared with last year.

Speaker #5: Yeah, so thanks, Drew, for the question. You are absolutely right. This year, we actually have approximately half the amount of turnaround days compared to last year.

Odin Estensen: Yes. Thanks for your question. You are absolutely right. This year we actually have approximately half the amount of turnaround days compared to last year. We are progressing very well. August and September are the kind of key turnaround months for us. So far, we have completed all our turnarounds except two. It is one for Cygnus, and it is a slowdown on the J-Area. We are pleased to confirm that we have completed those turnarounds on plan or ahead of them. The last one on Erskine was completed this week, 6 days ahead of plan. The risk exposure for the production for the remaining year is kind of very much reduced, and we are kind of feeling very much in control of the turnaround exposure to this year.

Speaker #5: And we are progressing very well. August and September are kind of the key turnaround months for us. So far, we have completed all our turnarounds except two.

Speaker #5: It's one for Cygnus, and it's a slowdown on the J area. I'm very pleased to confirm that we have completed those turnarounds on plan, or ahead of them.

Speaker #5: So, the last one on Erskine was completed this week, six days ahead of plan. So the risk exposure for the production for the remaining year is very much reduced.

Speaker #5: And we are kind of feeling very much in control of the turnaround exposure for this year.

Speaker #2: Got it. That's very, very helpful indeed. Thank you very much.

Cian Evans-Cowey: Got it. That is very, very helpful indeed. Thank you very much.

Cian Evans-Cowie: Got it. That is very, very helpful indeed. Thank you very much.

Speaker #3: Our next question comes from Mark Wilson from Jefferies. Your line is now open. Please proceed.

Operator: Our next question comes from Mark Wilson from Jefferies. Your line's now open. Please proceed.

Speaker #2: Thank you, and good morning. And congratulations on the results again. Therefore, unfortunately, I have to ask a question regarding things maybe not happening.

Mark Wilson: Thank you, and good morning, and congratulations on results again. Therefore, unfortunately, I have to ask regarding a question about things maybe not happening. We are waiting for regulatory approval on Rosebank for production startup. You also talk to future drilling FIDs on Cygnus that require regulatory approvals to continue investment there. Can we talk about an expected timeline to certainly the first of those approvals, and can we talk to what happens if that does not come, or the variables that could actually be the decision from the government? Are we expecting just a straight yes/no on production startup, or could there be variables? As I say, what happens if that does not come? Thank you.

Speaker #2: We're waiting for regulatory approval on Rosebank for production startup. You also referred to future drilling FIDs on Cygnus that require regulatory approvals to continue investment there.

Speaker #2: So can we talk about an expected timeline to, certainly, the first of those approvals? And can we talk about what happens if that doesn't come?

Speaker #2: Are there variables that could actually be part of the government’s decision? Are we expecting just a straight yes or no on the production startup, or could there be variables?

Speaker #2: And, as I say, what happens if that doesn't come? Thank you.

Speaker #4: Yeah, so good to hear you, Mark. I'll take that one. In terms of Rosebank—so, look, we continue to see this as a regulatory process that's relatively straightforward.

Iain Lewis: Yeah. Good to hear you, Mark. I will take that one. In terms of Rosebank, look, we continue to see this as a regulatory process that is relatively straightforward. We have been asked for emissions data on Scope 3. We provided it, and answers have been given. This is a very straightforward process in lots of ways. Speculation on the results of processes that are pretty straightforward is probably not that helpful. So you will forgive us for not speculating. I think in terms of other standard processes around approvals for wells and fields, et cetera, these are all well-worn regulatory paths, and nothing has changed on that for, in fact, some time. Nothing has changed on the approval processes around production consents either, apart from the Scope 3 emissions change that happened last year. So in lots of ways, this is regular business, normal business.

Speaker #4: We've been asked for emissions data on Scope 3. We provided it, and answers have been given. This is a very straightforward process in lots of ways.

Speaker #4: And speculation on results of processes that are pretty straightforward is probably not that helpful, so you'll forgive us for not speculating. I think, in terms of other standard processes around approvals for wells and fields, etcetera, these are all well-worn regulatory paths and nothing has changed on that for, in fact, some time.

Speaker #4: Nothing has changed on the approval processes around production because then it's either apart from the Scope 3 emissions change that happened last year. So in lots of ways, this is regular business, normal business.

Speaker #4: We have licenses, as Yaniv has taken us through, that are very large and wide-ranging. And we continue to develop, under those licenses issued by the government, the oil and gas that is needed for the country.

Iain Lewis: We have licenses, as Yaniv has taken us through, that are very large and wide-ranging, and we continue to develop under those licenses issued by the government, the oil and gas that is needed for the country.

Speaker #2: That's very clear. And you certainly make it look like normal business, so well done about that. My second point is regarding—it's definitely clear that the good operations that you're showing do also come from partnerships that are stable and involve motivated partners.

Mark Wilson: That's very clear, and you certainly make it look like normal business. Well done about that. My second point is regarding, it's definitely clear that the good operations that you're showing do also come from partnerships that are stable and involve motivated partners. You speak to Adura, West of Shetland, NEO NEXT+, Elgin-Franklin, even Harbour at J-Area and Fotla, and you've consolidated Cygnus very much. That is going forward. Is that therefore an additional angle we should look for regarding potential future M&A? Is the partnership that would be in place following such things to enable good operations? Thank you. I'll hand it over.

Speaker #2: You speak to Adora West, of Shetland, Neonex, Elgin, Franklin, even Harbor at J Air and Fotler. And you've consolidated Cygnus. Very much, that is going forward.

Speaker #2: Is that, therefore, an additional angle we should look for regarding potential future M&A? Is the partnership that would be in place following such things to enable good operations?

Speaker #2: Thank you. And I'll hand it over.

Speaker #1: Good morning, Mark. I'm not sure I fully understood the question, but if your question was around UKCS consolidation, then I think I've captured that.

Yaniv Friedman: Morning, Mark. I'm not sure I fully understood the question, but if your question was around UKCS consolidation, then I think I've captured that. We're looking at opportunities, but we will do the right acquisitions and not an acquisition. We're focused on value. We have a high-quality portfolio, and I think it's reflected in our results. Our goal is to high grade rather than dilute what we have. I think all the names that you've mentioned are today large players in the UKCS after a wave of consolidations that I believe Ithaca started 2 years ago, and we've seen this developing in the past 2 years. I think these kind of names will continue to dominate the UKCS. Obviously, there's a lot of optionality for all sorts of corporation around that. I hope I've answered your question.

Speaker #1: We're looking at opportunities, but we will do the right acquisitions and not just any acquisition, right? So we're focused on value. We have a high-quality portfolio.

Speaker #1: And I think it's reflected in our results. And our goal is to high-grade rather than dilute what we have. I think all the names that you've mentioned are today large players in the UKCS after kind of a wave of consolidations that I believe Ithaca started two years ago.

Speaker #1: And we've seen this developing in the past two years. And I think these kinds of names will continue to dominate the UKCS.

Speaker #1: And obviously, there's a lot of optionality for all sorts of corporations around that. I hope I've answered your question.

Speaker #4: Yeah. I'll maybe just add, Mark, in terms of—so clearly, the future of the North Sea matters to us, and the partnerships are deep and important.

Iain Lewis: Yeah.

Mark Wilson: Thank you very much.

Iain Lewis: I'll maybe just add, Mark, in terms of, so clearly the future of the North Sea matters to us, and the partnerships are deep and important. Therefore, whatever happens to assets in the UK matters. That's a slightly different question from M&A because we've always said it's the right assets at the right price. We like lots of assets that aren't available at the right price. I think the key thing for us is that the assets in the UK are in the hands of people who will invest. Clearly, we're the 100% owners of Cambo, which we believe should move ahead as a project. Therefore, partners in this basin who are committed to Cambo in this basin and an appropriately supportive regulatory regime is all important.

Speaker #4: Therefore, whatever happens to us, it's in the UK that matters. That's a slightly different question from M&A, because we've always said it's the right assets at the right price.

Speaker #4: We like lots of assets that aren't available at the right price. So, I think the key thing for us is that the assets in the UK are in the hands of people who will invest.

Speaker #4: Clearly, we're the 100% owners of Cambo, which we believe should move ahead as a project. And therefore, partners in this space and who are committed to Cambo in this space, and an appropriately supportive regulatory regime, is all important.

Speaker #4: So, as a partner, it's critical, and they do play into M&A. But it's both M&A and also field-level equity support that is required as we move forward as a business in this space.

Iain Lewis: Partners are critical, and they do play into M&A, but it's both M&A and also field level equity support that is required as we move forward as a business in this basin.

Speaker #3: Thank you. Our next question comes from Nash Cohen from Barclays. Your line is now open. Please go ahead.

Operator: Thank you. Our next question comes from James Kirin from Barclays. Your line's now open. Please go ahead.

Operator: Thank you. Our next question comes from Nash Cui from Barclays. Your line's now open. Please go ahead.

Speaker #1: Thank you. Good morning, everyone. Thanks for taking my questions. I have two, please. The first one is on Cambo. I wonder if you could give us an update on that, and what are the key milestones before the expected FID in 2027.

James Kirin: Thank you. Good morning, everyone. Thanks for taking my questions. I have two, please. The first one is on Cambo. I wonder if you could give us an update on that, and what are the key milestones before the expected FID in 2027? My second one is also on M&A. We have seen quite a number of transactions in the wider North Sea area in the last few months. While your peers is thinking about farming down their assets in the UK CS, what is your view on that, and do you see the competition on the wider North Sea resources has increased meaningfully, and how will that affect your inorganic group plan? Thank you.

Nash Cui: Thank you. Good morning, everyone. Thanks for taking my questions. I have two, please. The first one is on Cambo. I wonder if you could give us an update on that, and what are the key milestones before the expected FID in 2027? My second one is also on M&A. We have seen quite a number of transactions in the wider North Sea area in the last few months. While your peers is thinking about farming down their assets in the UK CS, what is your view on that, and do you see the competition on the wider North Sea resources has increased meaningfully, and how will that affect your inorganic group plan? Thank you.

Speaker #1: Then my second one is also on M&A. We have seen quite a number of transactions in the wider North Sea area in the last few months.

Speaker #1: And one of your peers is thinking about farming down their assets in the UKCS. What is your view on that? And do you see that competition for the wider North Sea resources has increased meaningfully?

Speaker #1: And how will that affect your organic growth plan? You.

Speaker #5: Yeah, thanks, Nash. I'll take these. Look, on Cambo, we continue to de-risk the project—technically, commercially, financially, environmentally. So, all these workstreams are progressing.

Yaniv Friedman: Yeah. Thanks, Nash. I'll take these. On Cambo, we continue to de-risk the projects technically, commercially, financially, environmentally. All these work streams are progressing, and as we say, with the target of taking final investment decision in 2027. I'm not going to go into specifics, but you know what constitutes projects, and there are hundreds of line items in the checklist that we need to complete. They're advancing on plan. Obviously, there is a regulatory piece to it. There is a partner piece to it, and we're progressing all of those on our timeline. Our expectation is that this would move forward. Obviously, we need the right regulatory conditions to enable that. On the M&A, I think what we're seeing in the UK is people settling or companies understanding better the regulatory regime we're working under.

Speaker #5: And as we say, with the target of taking final investment decision in 2027, I'm not going to go into—I'm not going to go into specifics—but you know what constitutes projects, and there are a lot of hundreds of line items in the checklist that we need to complete.

Speaker #5: They are advancing on plan. Obviously, there is a regulatory piece to it, and there is a partner piece to it. We're progressing all of those on our timeline.

Speaker #5: So, our expectation is that this would move forward. Obviously, we need the right regulatory conditions to enable that.

Speaker #1: On the M&A, I think what we're saying in the UK is people settling, or companies understanding better the regulatory regime we're working under.

Speaker #1: And with the proposed implementation of the success of DPL, and the certainty beyond that, that allows investment going forward, there is definitely movement on the M&A front.

Yaniv Friedman: With the proposed implementation of the success of EPL and the certainty beyond that allows investment going forward. There is definitely movement on the M&A front. As mentioned, we believe in scale. We think scale helps, and we understand that consolidation is important, and we are seeing this in the market. As mentioned, I believe we have started that trend. I think that right now there are, call it, four large players in the UKCS that are controlling most of the productions and most of the future projects. I expect that this is what it will look like in the future as well.

Speaker #1: We are again, as mentioned, we believe in scale. So we think scale helps. And we understand that consolidation is important and we're seeing this in the market.

Speaker #1: And as mentioned, I believe we've started that trend. So, I think that right now, there are, call it, four large players in the UKCS.

Speaker #1: They are controlling most of the production and most of the future projects, so I expect that this is what it will look like in the future as well.

Speaker #2: Very helpful. Thank you very much.

James Kirin: Very helpful. Thank you very much.

Nash Cui: Very helpful. Thank you very much.

Speaker #1: Sure, Nash.

Yaniv Friedman: Sure, James.

Yaniv Friedman: Sure, Nash

Speaker #3: Thank you. As a reminder, if you would like to ask a question on today's call, please press *star* followed by one on your telephone keypad now.

Operator: Thank you. As a reminder, if you would like to ask a question on today's call, please press star followed by 1 on your telephone keypad now. To withdraw your question, it is star followed by 2. Our next question comes from Sam Wahab from Peel Hunt. Your line is now open. Please go ahead.

Operator: Thank you. As a reminder, if you would like to ask a question on today's call, please press star followed by one on your telephone keypad now. To withdraw your question, it is star followed by two. Our next question comes from Sam Wahab from Peel Hunt. Your line is now open. Please go ahead.

Speaker #3: We’ll withdraw your question. That’s staff followed by two. Our next question comes from Sam Wahab from Peel Hunt. Your line’s now open. Please go ahead.

Speaker #2: Thanks, Sam. Good morning, all, and congrats again on another very solid set of results. So I've got three questions from me. First, Rosebank. So the operator has now narrowed first production to the first half of next year.

Sam Wahab: Thanks. Good morning, all. Congrats again on another very solid set of results. I have three questions from me. The first, at Rosebank, the operator is now narrowed first production to the H1 of next year. Can you lay out what are the remaining critical path items we should monitor over the next 6 to 12 months as you reach that plateau production? The second question is around OpEx per BOE. We have seen that fall quite materially, so that is all very positive. What is the core reasons driving that, and can we expect that trend to continue once Rosebank comes on stream? Finally, I know there has been a few other questions around inorganic opportunities, but how are you seeing the landscape in the UK currently in terms of the elevated commodity pricing?

Speaker #2: Can you sort of lay out what are the remaining critical part items we should monitor over the next 6 to 12 months, as you've reached that plateau production?

Speaker #2: Second question is around OPEX per BOE. We've seen that fall quite materially, so that's all very positive. But what's the core reason driving that, and can we expect that trend to continue as new projects come on stream?

Speaker #2: And then, finally, I know there's been a few other questions around inorganic opportunities, but how are you seeing the landscape in the UK currently, in terms of the elevated commodity pricing?

Speaker #2: And we've seen in the news that BP plan to push on with a divestment. Do you see reports of that $2.6 billion package being reasonable value?

Sam Wahab: We have seen in the news that BP plan to push on with the divestment. Do you see reports of that $2.6 billion package as being reasonable value?

Speaker #4: Yep. So I think, in order, I'll go to the first one on Rosebank, then I'll deal with OPEX, and then to Yaniv on the M&A, I think.

Iain Lewis: Yeah. I think Audun will take the first one on Rosebank, then I will deal with OpEx, then to Yaniv on the M&A, I think.

Iain Lewis: Yeah. I think Odin will take the first one on Rosebank, then I will deal with OpEx, then to Yaniv on the M&A, I think.

Speaker #6: Yeah, so on Rosebank, I think the key things going forward now are to continue to have good progress on the project and make sure that we are liquidating the remaining hours on the installation.

Odin Estensen: Yeah. On Rosebank, I think the key things going forward now is to continue to have good progress on the project, making sure that we are liquidating the remaining hours on the installation efficiently. I think the other key performance indicator that we are looking for is the construction of the wells. That has now resumed again and progressing well. I think those are the two key things that we will be looking for going forward. At the moment, both are indicating well. We are back on drilling again after the incident that we had. Then, we have full activity out on the installation, which is safely and robustly installed now on the field. Yeah. I think those two are the two key components that will take us efficiently to first production.

Speaker #6: Efficiently. And then I think the other key performance indicator that we are looking for is the construction of the wells, which has now resumed again.

Speaker #6: And progressing well. So I think those are the two key things that we will be looking for going forward. At the moment, both are indicating well.

Speaker #6: They're back on drilling again after the incident that we had. And then we have pool activity out on the installation, which is safely and robustly installed now on the field.

Speaker #6: Yeah, so I think those two are the key components that will take us efficiently to first production.

Speaker #2: Yeah. And to answer your question, Sam, on OPEX—look, I often say there are no silver bullets to maintaining operating costs; it's a blunt process.

Iain Lewis: Yeah. To answer your question, Simon, on OpEx, look, I often say that operating cost is, there are no silver bullets to maintaining operating cost discipline. It is, as Yaniv mentioned, the work of many. Everyone across the business touches costs in some way or another. So it is around culture and around control, but also around the right supply chain relationships and depth, so that we are working well with our partners in the supply chain. The OpEx per barrel number clearly is a combination of production and OpEx, and therefore, if we can keep our production high and OpEx in a good place, we drive that metric down, and that is what we have been able to do. But specifically in terms of all the effort that goes on, Audun and I were sitting in a tender board yesterday. We approve all contracts. I sign all the contracts.

Iain Lewis: Yeah. To answer your question, Sam, on OpEx, look, I often say that operating cost is, there are no silver bullets to maintaining operating cost discipline. It is, as Yaniv mentioned, the work of many. Everyone across the business touches costs in some way or another. So it is around culture and around control, but also around the right supply chain relationships and depth, so that we are working well with our partners in the supply chain. The OpEx per barrel number clearly is a combination of production and OpEx, and therefore, if we can keep our production high and OpEx in a good place, we drive that metric down, and that is what we have been able to do. But specifically in terms of all the effort that goes on, Audun and I were sitting in a tender board yesterday. We approve all contracts. I sign all the contracts.

Speaker #2: As Yaniv mentioned, the work of many—everyone across the business touches costs in some way or another. So it's about culture and about control, but also about having the right supply chain relationships and depth, so that we're working well with our partners in the supply chain.

Speaker #2: The OPEX per barrel number clearly is a combination of production and OPEX. Therefore, if we can keep production high and OPEX in a good place, we drive that metric down.

Speaker #2: And that's what we've been able to do. But specifically, in terms of all the effort that goes on over the, now, say, a tender board—yesterday, we approved all contracts.

Speaker #2: I sign all the contracts. The headcount is here, as managed on a day-to-day basis by the VP of HR and Culture and myself, in terms of numbers.

Iain Lewis: The head count is managed on a day-to-day basis by the VP of HR and culture, and myself in terms of numbers. That is about having the right people doing the right things, and partnering with the right people. Sorry, there is no silver bullet answer on OpEx. But that is how you control costs over the long term. I would say one of the things that is not in here is the fact that we have managed the FX controls. So we normalize the management guidance at 135. We have actually delivered over 10 million, I think it is nearly 20 million, of FX savings by hedging GBP to USD below the market position. So we locked in some hedges when rates were really low. So, it is about discipline and cost management and risk management across the piece, which we are very pleased with the results of today.

Speaker #2: That's about having the right people in the right roles and partnering with the right people. So, sorry, there's no silver bullet answer on OPEX, but that's how you control costs over the long term.

Speaker #2: I would say one of the things that's not in here is the fact that we've managed the FX control. So, we normalize the management guidance at 135.

Speaker #2: We've actually delivered over $10 million—I think it's nearly $20 million—of FX savings by hedging. DVPD US dollar below the market position. So we locked in some hedges when rates were really low.

Speaker #2: So it's about discipline, cost management, and risk management across the piece, and we're very pleased with the results today. There's an awful lot of effort that goes into one number, which is $18 per barrel.

Iain Lewis: There is an awful lot of effort goes into one number, which is $18 per barrel. Yeah. Sid.

Speaker #2: Yeah. Understood.

Speaker #1: Yeah, I'll just echo that. I think what you're saying, Sam, is really about discipline, but also agility and adapting to market changes.

Yaniv Friedman: Yeah. I will just echo that. I think what you are saying is really around discipline, but also agility and adapting to market changes, and our very robust capital allocation framework, and our ability to keep flexibility and optionality, both in our portfolio and the way we manage our investments, but also through our balance sheet. On your third question, I will just say nice try. But I am not going to comment obviously on value. I will say that obviously in periods of extreme volatility like we have been experiencing the past six months, it is not easy to price assets and deals. Of course, there are ways of dealing with volatility, all sorts of mechanisms. I will not comment on that, and I think I already answered on the UK CS landscape in terms of M&A and where the market is. Sorry to disappoint on that.

Speaker #1: And our kind of very robust capital allocation framework, and our ability to keep flexibility and optionality—both in our portfolio and the way we manage our investments, but also through our balance sheet.

Speaker #1: On your third question, I'll just say nice try, but I'm not going to comment, obviously, on value. I will say that, obviously, in periods of extreme volatility like we've been experiencing in the past six months, it is not easy to price assets and deals.

Speaker #1: Of course, there are ways of dealing with volatility, all sorts of mechanisms. I won't comment on that. And I think I already answered on the UKCS landscape in terms of M&A and where the market is.

Speaker #1: So sorry to disappoint on that.

Speaker #2: No problem. Thought I'd try, but thanks very much.

Sam Wahab: No problem. Thought I'd try, but thanks very much.

Yaniv Friedman: Yeah.

Speaker #5: Thank you. That concludes the Q&A portion of today's call. I'll now hand over to Yaniv for closing comments.

Operator: Thank you. That concludes the Q&A portion of today's call. I'll now hand over to Yaniv for closing comments.

Speaker #1: Thank you, Drew. And thank you, everyone, for listening and asking questions. We are always here to answer. Thank you, and we'll speak again next quarter.

Yaniv Friedman: Thank you, Drew. Thank you everyone for listening and asking questions. We're always here to answer. Thank you, and we'll speak again next quarter. Thank you very much. Have a nice summer.

Speaker #1: Thank you very much. Have a nice summer.

Operator: Thank you all for joining. That concludes today's call. You may now disconnect your line.