Capricorn Energy PLC

Good morning, and thank you all for joining us for Capricorn's 2025 Full Year Results presentation. I'm Randy Neely, and I'm joined today by our CFO, Eddie Oak, and our COO, Jeff Probert. First, let me take a moment to address the evolving situation in the Middle East, and particularly the conflict involving the US, Israel, and Iran. We are closely monitoring these developments, and our operations in Egypt remain stable and unaffected. It is very much business as usual for us on the ground in Egypt. Now, before we dive into the main presentation, I want to briefly address the recent media speculation regarding a potential offer for Capricorn. I understand there may be considerable interest, but due to takeover code, I am unable to provide any specific information beyond what was in the statement earlier this month. To reiterate, Ahmadiyya al-Masiyah also known as the Kafani Group, has made multiple unsolicited non-binding proposals for a potential all-cash offer for Capricorn. Discussions are ongoing, and the Capricorn board is actively seeking further clarity regarding Kafani's funding arrangements. Under the UK takeover code, they have until the 8th of April to 2026 to make a firm offer. At this stage, there's no certainty that a firm offer will be made, nor clarity on the terms of any such offer should one materialize. So let's go to the first slide of the presentation. Now, turning to the purpose of today's presentation, 2025 was a significant year operationally, strategically, and financially. A lot of progress was made for the company, and a number of milestones across our Egyptian operations were met. 2025 marked a pivotal year for the company. I believe we have made the turn from a turnaround story to a serious growth opportunity in Egypt and hopefully shortly the UK North Sea arenas. Over the past year, accounts receivable outstanding has come down materially, which has allowed a significant reduction in accounts payable as well. And we've also retired the company's senior debt. We also received the approval of the EGPC board for the consolidation and amendment of the eight jointly held production sharing contracts with Chiron, our operating partner in the Western Desert. We are now only awaiting ratification and we expect that to occur in the near term. Following the EGPC board approval, jointly with our partner, we were able to begin increasing our development activities to arrest the production declines. This combined, of course, with the very solid technical work of our team resulted in our achieving the higher end of our production guidance for 2025. we put this graphic into our materials over a year ago to represent our base intention of where and how we were we were going to take the company hopefully our results are showing that we meant it we now have an almost debt-free balance sheet we have a disciplined and rigorous approach that we operate within and project onto our partner. And to be clear, our partner has been receptive to this and has worked very collaboratively with us over the past year plus to follow a very similar approach. We are now set to take advantage of all the hard work accomplished over these past three years of rebuilding Capricorn. In the near term, we will look to build on our base in Egypt both organically and through acquisitions. and also look to capitalize on our geographic location and capabilities in the UK North Sea. I'll now turn you over to Eddie to walk you through some of our results.

Thanks, Randy, and good morning, everyone. 2025 was a solid year as we not only achieved some key structural milestones in the Egypt business, but also really cleaned up our balance sheet. Production was just over 20,000. BOEs on a working interest basis, and we preserved a 40% liquids weighting in that production base. OPEX increased slightly over the prior year at $540 a buoy, driven by our fixed cost base and the currency devaluation from the prior year, having largely worked its way through the system. We're guiding to an OPEX range of $5 to $7 a BOE for $26. The successful capital program in $25 of 77 million invested growth production performance in the year and set a sustainable foundation for 2026's program we have material collections in 2025 of 217 million resulting in us ending the year with an 86 million dollar receivables balance on 81 million in egypt net cash flow With only $30 million outstanding on a ring-fenced junior facility and having repaid the senior facility early, we entered 26 with a significantly improved balance sheet. The business ended 2025 with $103 million in cash net of facility debt, which represents a year-over-year cash increase of $80 million, and we continue lobbying efforts with EGPC to return our receivables to a reasonable level. We are encouraged by the recent press from EGPC and the minister about receivables balances for IOCs and remain confident in the ultimate collection of our outstanding revenues. For 2026, the drilling activity completed in 25 and planned 26 activity will shift overall production to a slightly higher liquids weighting at about 43%. though two turnarounds planned for the year will impact full year production estimates as we guide to 18 to 22,000 buoys. Capital of 85 to 95 million this year will prioritize liquids and ratification will be critical to unlock acreage perspective for additional exploitation and development activity. Next up, Jeff is going to take you through our operational plans for the year.

Thanks, Eddie, and good morning, everyone. Next slide, please. 2025 Egypt operational activity was a year of two halves, with the first half primarily fulfilling legacy exploration obligations and the second pivoting the four rigs to development drilling. It's worth noting here that without the EGPC agreement to merge our 50-50 concessions and improvements on the payment side, we would not have been able to support much further development drilling there post the first half exploration commitments. So the timing was excellent for all parties. Development drilling was effectively reopened on bed, which, supported by the ongoing reservoir management programme, contributed to improved production forms and a solid year-end exit rate. Legacy exploration yielded success at NUM and encouragement in South East Horace, with the latter sufficient to move into the next phase. Next slide, please. Much of this slide is a reiteration of what we said on the merge concession before. With improvements in concession longevity, fiscal terms catalyst to increase Capricorn's reserves and production, with value and cash flow enhanced through increased investment, self-funded from Egypt. Two bullets I'd like to highlight are first, for the example, approximately $5 per billion improvement in netbacks at $80 Brent, and second, replacement of more than 250% of 2025 production through reserve ads, with the merged concession being the major contributor to that. For EGPC, our increased and more importantly sustained investment delivers great production over the long term for Egypt, having the potential to be a true win-win for all stakeholders. We continue to expect customer gratification in the near future, with our investments since mid-2025 consistent with application of the new terms. Next slide. This final operational slide demonstrates the impact of the new merged concession agreement on the reserves and resources underlying the business. We previously highlighted the potential to convert up to 20 million barrel working interest resources into reserves with the merged concession. We've achieved this as the 277% reserve replacement ratio shows. And we've already identified a resource maturation runway for further over 330 million barrels of unrisked working interest 2C, which 80 million barrels of equipment has been evaluated by GLJ. With some prospective resources to chase and discussions underway to improve ASW concession, these are bonuses. All in all, the new merged concession, supported by operational excellence and regular EGPC payments, has helped transform the outlook for Capital One Energy. Thanks for your time and attention. Now I'm passing back to Randy to wrap up.