Harbour Energy plc

Good morning. Thanks to everyone for joining us. With a particular thank you to those of you who might be dialing in while you're away on holiday for the summer. With me today is our CFO, Alexander Crane. I'll start by taking you through our first half operational performance and also an update on the Vendor Saldea acquisition. Alexander will then cover our financial results and guidance for the full year, and then back to me to wrap up, and then we'll open the call for questions. So starting with the half-year highlights, importantly, we maintained our focus on operational delivery. Our production, annual maintenance program, and ongoing investments in the UK are all on track. Our international organic projects continue to progress, and our financial position remains strong thanks to active cost management and disciplined capital allocation. This allowed us to end the period with a positive net cash position, while also delivering an 8% increase in our dividend per share. And lastly, we've made excellent progress towards completing the Wintershaw Day acquisition, which is now expected to occur early in the fourth quarter. Moving to the next slide, safety is always our top priority and we continue to deliver relatively strong performance with our total recordable incident rate remaining well below that of the industry average. We did, however, have a Tier 2 process safety incident in the first half. Our first one since 2022 was a gas release in Indonesia. While there were no injuries or damage, it is a reminder of the importance of our annual planned maintenance programs. Ensuring we're maintaining our assets properly is a key driver of good, sustained safety performance, not to mention production reliability and efficiency. We're also making good progress in reducing our environmental impact with greenhouse gas emissions from our current portfolio expected to be 15% lower in 2024 versus two years ago and 35% lower versus our 2018 baseline. Now to production. We averaged 159,000 barrels per day in the first half with a good balance of oil and gas. This was underpinned by strong reservoir performance and high reliability across our operated hubs, especially at Britannia, which achieved 94% operating efficiency and is today our largest producing asset. As you can see from the chart, production in the second quarter reflects the start of planned maintenance shutdowns, which will continue into the third quarter. This together with the timing of new wells coming on stream means that we anticipate a U-shaped production profile during 2024. With seven months of production now behind us, we feel comfortable narrowing guidance for the full year to the upper end of the original range we had set to 155 to 165,000 barrels per day. This is supported by our maintenance progress, including the completion of shutdowns at J Area and Ailey last month, and good line of sight to our UK capital program, which should boost production in the fourth quarter. Looking ahead to 2025, production from our current portfolio is expected to be broadly flat year on year, with volumes from new wells substantially offsetting natural decline. All of this excludes the impacts of the acquisition. Depending on timing of completion, we're expected to have some contribution from the Wintersaldea portfolio, which averaged 327,000 barrels per day in the first half of the year, according to their trading update issued earlier today. Turning to the next slide, absolute operating costs were broadly flat year on year, reflecting strong cost control in the face of some ongoing inflationary pressures and a stronger British pound. The year on year increase in unit costs reflects the lower volumes, but is still top quartile for the UK, where more than 90% of our production is located today. Importantly, as the UK fiscal environment continues to evolve, we're comfortable knowing that we have flexibility in many of our large contracts. For example, of our three drilling rigs currently under long-term contract, two require only four months' notice of termination. At the same time, our active portfolio management continues with our announced exit of Vietnam and example. We terminated the sale to the previous buyer when the long stop date was reached, but have recently relaunched the process. And we've actually seen an increased level of interest in the asset and have a view to completion in 2025. Now moving to our UK capital investment program. Expenditures in the first half reflect the Talbot project and also the great job the team has done to accelerate some high return short cycle opportunities into 2024 while we have some degree of clarity around the fiscal terms. We returned to drilling at Britannia with the Kalanish F6 well successfully brought on stream in July, meeting our expectations volume-wise. And at our Ailey hub, we drilled the Northwest Seymour well, which is now on track for startup later this month. At Talbot, we continue to anticipate first oil around year end. Substantially, all of the subsea infrastructure has now been installed, and the required topside modifications to the duty platform were completed during the J area planned shutdown. These projects typically have break-evens below $40 per barrel and 40 pence per therm, and are targeting IRRs materially in excess of 50% at today's prices. They also have extremely quick paybacks, with Kalanish F6 and Northwest Seymour both expected to reach payback within one year of startup. Turning now to international growth projects. In Mexico, feed is commenced at Zama and once completed, we'll refresh the cost and schedule estimates ahead of a final investment decision. A positive decision would result in 75 million barrels of 2C resources moving to 2P reserves, replacing the equivalent of over a year's worth of harbor's current production. To the southwest of Zama, appraisal drilling at last year's Kahn Oil Discovery will start later this month, and in parallel, we're undertaking early engineering studies on potential development options in collaboration with our partner, coincidentally, Winter Saldea. Following that acquisition, our interests in Zama and Kahn will increase to 32% and 70% respectively, and we'll become the operator at Kahn. In Indonesia, at the tuna project, there's been some progress with our partners' process to find a buyer for their steak. If successful, this would enable us to commence feed on the approved plan of development. And we've had some further exploration success on our Andaman acreage, shown on the next page. The new news here is the significant gas discovery at Tengkulu on the South Andaman license operated by Mubadala. This marks our third major gas discovery in the region, following the Timpan discovery in 2022 and Lyran in late 2023, and underscores the play's multi-TCF potential. The Tanculu Well encountered an 80-meter gas column and tested at 47 million standard cubic feet per day. Rates were constrained by the testing facilities, reflecting the good reservoir quality, the best of the three discoveries so far. At the end of last year, we had booked 130 million barrels of 2C resource for Lyran and Tympan collectively. Volumes associated with the Tangkulu discovery will be added as part of our year-end 2024 annual process. We're now nearly complete with the drilling of an appraisal well at Lyran, which will mark the fifth and final well of this campaign. And over the coming months, we'll now work with partners to analyze all of the data gathered and begin to consider next steps, whether it's additional exploration, appraisal, and or investigation of early development options. The other good news is, of course, that there is no shortage of potential gas markets in the neighborhood of all of these discoveries. CCS remains a key part of the UK's net zero strategy, and our two projects, Viking and Acorn, were both awarded Track 2 status last year, which is currently the only route to secure an economic license to transport and store CO2 in the UK. Our flagship Viking project, one of the largest planned CCS projects in the world, is making good progress in feed, and the development consent order required for the onshore pipeline is now well advanced. We are, however, managing the pace of the projects to ensure we don't get too far ahead of the government process. This includes closely monitoring the Track 1 projects, which are expected to reach FID this year, which we hope will allow the government to turn their attention to Track 2. We continue to believe in the potential for Viking to generate long-term cash flow and reasonable returns with ESA project financing and offering export storage services to European customers. But it will require the government to deliver on its end. Now for an update on the Wintershaw Daya acquisition. We completed the steps to arrange the financing in the first quarter. These included the syndication of the $3 billion RCF and $1.5 billion bridge facility and a successful bondholder consent process enabling us to port the investment grade bonds from Wintershaw Daya. We published the prospectus and circular in June and our shareholders subsequently voted overwhelmingly in favor of the acquisition in July. And we've made great progress on the various regulatory antitrust and foreign direct investment approvals required for completion. Most recently, in the last few days, we received clearance under the UK's National Security Investment Act, which satisfies the UK foreign direct investment condition, and also consent from the UK NSTA, the oil and gas regulator. That leaves just a small number of approvals still required for completion, all of which are expected to be secured in the coming several weeks. In parallel, we're ensuring that we'll be ready to safely receive the acquired assets and employees into Harbor. This includes increasing the capacity of our corporate center and ensuring our systems and processes are ready to support the enlarged company, all of which is well advanced. In addition, we've put in place a transition services agreement under which Wintershaw Daya will provide certain services to Harbor for a defined period post completion. Given all of this progress, we now anticipate completing the acquisition early in the fourth quarter of this year. Some of you will have seen this next slide before. It's one that we're proud of, knowing that we started with nothing and produced our first barrel of oil just seven years ago. The Wintershall Daya transaction will take us another big step forward, transforming the scale, diversity, and longevity of our portfolio. It will strengthen our capital structure, and as a result of all of that, will support enhanced and sustainable shareholder returns. And as the slide shows, the acquisition will place us in a new peer group, including the large Norwegians and some large U.S. listed independents. As consolidation among the U.S. onshore companies is nearing its end, we're starting to see an increasing interest in international assets. As such, we believe Harbor, as a large-scale but more global producer, presents a unique investment opportunity. Right, that's it from me for now. Over to Alexander for the financials.

Thank you, Linda, and good morning to everyone calling in. So turning now to the financial results for the first half of the year, and we will start with realizations and hedging on page 17. We realized higher prices, especially for our crude sales during the period, reflecting stronger oil prices and an improved hedging results. On the gas side, while UK NBP prices were 35% lower compared to first half 2023, our realized UK gas price was slightly improved at 61 pence per therm, driven by materially improved hedging in the second quarter this year. We continue to run our own hedging strategy, and as do Ventes Aldea, operating as two independent companies until completion. As in the past, when we anticipate putting more debt on the balance sheet, we've executed additional hedging to de-risk future cash flows, mindful, of course, of Ventes Aldea's hedge book, which we will acquire at completion. Looking forward, on a standalone basis, our hedged crude volumes remain relatively stable at around 20,000 barrels per day, equating to between 25 and 30% of our liquids production, with an average hedged price of $84 per barrel for the second half of 2024, then reducing to $78 and $73 in 2025 and 2026, respectively. For UK gas, we have hedged approximately 40% of our second half volumes. That equates to almost 30,000 barrels of oil equivalent per day hedged at around 80 pence per therm. A similar volume is hedged in 2025 at 89 pence per therm. Hedged UK gas volumes are then lower in 2026 and 2027. However, hedged prices continue to be above 80 pence per tonne. Turning to the first half, income statement. Our operating margins continue to be robust at around $50 per barrel, although as in recent prior periods, our profitability has been impacted by high effective tax rates, reflecting our current UK concentration. Revenues total 1.9 billion, a 100 million reduction compared to the first half of 2023. This reflects lower production volumes, partially offset by better crude realizations, a $110 million movement in our net overlift versus underlift position in 2023, and an additional 50 million of revenue following resolutions of our U.S. price dispute. As Linda noted, our operating costs were broadly stable at around 500 million, reflecting good cost control with higher unit OPEX driven by lower volumes. We generated profit after tax of $57 million, compared to our loss in the first half of 2023. While profit before tax was similar to first half of 2023 at 0.4 billion, we saw a lower effective tax rate at 85% compared to the 100% plus rate in the first half of 2023. Although one improvement period on period, the effective tax rate is still materially higher than the statutory rate of 75%, largely due to the impact of items not fully deductible at UK oil tax rates. Three other points to note on this slide before turning to the balance sheet. First, impairments of 53 million. This is largely driven by our East Irish Sea asset, which was impaired due to lower near-term gas price assumptions and revised decommissioning estimates. Now second, as you can see, G&A expense was higher on the prior period with the inclusion of acquisition-related fees. And finally, the British pound-US dollar FX rate, while stronger when compared to the first half of 2023, was broadly stable during the period, resulting in minimal impact on the income statement compared to the $85 million FX losses we saw in the first half of last year. The next slide shows our balance sheet, which remains largely unchanged since the year end 2023. That said, there are a couple of items to note. First, you will note that the balance sheet as at December 31st, 2023 has been restated as a result of the declassification of our Vietnam business from asset health to sale category. We have provided the detail of this restatement in note two to the financial statements. This follows our decision in June to relaunch the sales process for our Vietnam business. The next thing to note is around our funding. Our RBL remains undrawn, and with our cash balances more than offsetting our bond, we close the period with net cash of $45 million, net of amortized fees, compared to a restated net balance of $207 million at the end of 2023. Also, ordinarily at this time of year, we would talk about our annual redetermination under the RBL. However, with the Vintes Aldera acquisition, we will be moving from a secured RBL as our main source of funding to a fully unsecured capital structure, comprising an RCF and bonds, providing us with cheaper and more flexible financing going forward. We have therefore deferred our annual redetermination and cancelled one billion of the RBL facility to reduce costs as we progress completion of the acquisition. And finally, the balance sheet does not reflect the proposed changes to the EPL here in the UK by the Conservative government in March, nor indeed by the new Labour government, as these were not enacted as at the balance sheet date. Labour plans to increase the EPL to 38%, extend it to March 2030 and remove the 29% investment allowance effective November 1st this year. They are also consulting with industry over reduced EPL capex relief. Now, we continue to engage heavily at all levels with Treasury and the government on this, and we expect the government to announce full details at the next budget scheduled for end October 2024. Turning now to cash flow on page 20. During the period, we generated significant cash flow from operations, which has allowed for continued investment in shareholder distributions while enabling us to close the period in a small net cash position. The left-hand waterfall diagram shows we started the year with net debt of 0.2 billion, then during the period we generated 1.3 billion of gross operating cash flow. We spent approximately 0.5 billion on capital investment and decommissioning on a cash basis, predominantly here in the UK, and encourage 100 million of acquisition-related fees and financing costs. Of these, we capitalized approximately 57 million of financing costs, and this will be amortized over the tenor of the debt. Our existing financing and lease costs amounted to 0.1 billion, while our tax payments for the period totaled 0.2 billion. As a result, we generated 0.4 billion of free cash flow before shareholder distributions of 100 million in line with our current annual 200 million dividend policy. Since becoming a public company back in 2021, we have returned more than a billion dollars to our shareholders through dividends and share buybacks, while at the same time, our dividend per share has steadily increased from 11 cents to 13 cents per share. Further, post completion of the acquisition, we have committed to increasing our dividend to $455 million, which increases our dividend per ordinary share. This signals our confidence in the acquisition to deliver a step change in the scale and sustainability of our free cash flow. I'll finish now with the guidance for this year and the outlook for 2025. And just as a reminder, the guidance and outlook set out on this slide relates to harbor on a standalone basis before any impact of the Vindesaldea acquisition. Now, as Linda said, with almost seven months of the year behind us and with our maintenance programs and capital projects on track, we feel confident to narrow production guidance towards the upper end of the range to 155 to 165,000 barrels of oil equivalents per day. Full year guidance for unit OPEX and total CAPEX remains unchanged as approximately $18 per BOE and 1.2 billion respectively. Of this $1.2 billion, around 85% is in the UK, with a balance international, predominantly Indonesia, where we are completing the multilevel exploration and appraisal campaign. Higher tax payments this year, estimated at between 0.9 billion and 1 billion, reflect the anticipated full utilization of our available UK corporate tax losses over 2024, as well as the resulting change in the phasing of our EPL payments. Specifically, the residual 2023 EPL liability to be paid now in 2024 amounts to approximately $400 million, the majority of which relates to EPL not payable by installments. At $85 per barrel and 70 pence per therm, we continue to anticipate being marginally free cash flow positive for the year, with current expectation of between $100 and $200 million, reflecting improved production outlook offset by a deferred Vietnam sale proceeds. our 2025 outlook remains unchanged from what we have said previously. That is, excluding the impact of proposed acquisitions and disposals, we anticipate our production to be broadly flat year on year, while our total capital expenditure is forecast to be materially lower, resulting in significantly higher free cash flow in 2025. As mentioned, all of this excludes the effect of the Ventes Aldea acquisition, which, with completion now in early Q4, could contribute significantly to our second half 2024 numbers. We will provide updated guidance at completion to reflect this, but in short, we continue to expect the Ventes Aldera portfolio to double, almost triple, our production rates and expand our reserve life, resulting in a very material step up in the scale and sustainability of our free cash flow. Now I'll hand it back to Linda for some closing remarks. Thank you.

Thanks, Alexander. So just a few more words from me before we open for questions. This last slide, it makes clear the progress we've made since founding Harbor just a few years ago. We've built our business mainly through disciplined M&A, with the Winter Saldanha acquisition marking our fourth and most transformational deal to date. Each of these acquisitions has a different value creation story. The Shell transaction focused on reinvesting in midlife assets. The Conoco deal focused on getting to scale and driving synergy. Then the reverse merger into Premier Oil was about financial synergies, a starting point towards international diversification and securing a public listing. Across these transactions, we have a solid track record of successful integration while maintaining strong safety and operational performance and creating value for our shareholders. And we're now close to completing another transaction. And in doing so, we'll have created a new large independent oil and gas company with the scale, asset quality, and financial strength needed to be relevant in today's market. Looking forward to the rest of the year, our priorities for 2024 remain unchanged. The continued safe and responsible operations of our existing portfolio and the successful completion and subsequent integration of the Wintersaw Day acquisition. And now we're happy to take your questions.

Ladies and gentlemen, if you would like to ask questions, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two. Please ensure your phone is unmuted locally. We now have our first question from Mark Wilson from Jefferies. Please go ahead.

Thank you. Good morning and thanks for taking my question. I'd like to start on the UK side of things because it's the largest part of the current portfolio. You give very good guidance into 2025. But could I ask if there is a vision that investors could have for the UK assets on a longer-term basis? Is there a decline rate on capex level that we should consider applicable to that part of the world? And then, indeed, could I ask, what is the argument for Harbour staying with its U.K. portfolio in the pro forma company post-deal completion? Thank you.

Hey Mark, this is Linda. Thanks for dialing in and for the call. Yeah, some good questions. I think generally speaking, set aside fiscal environment, setting aside acquisition, portfolio, capital allocation, et cetera. If you think about our UK portfolio and kind of in general in the UK North Sea, natural decline rates, I think as we've said before, can be on the order of 20 to 25%. Across our portfolio, if we have, like we have over the past few years, a reasonable reinvestment program, an active sort of well management, reservoir management, we've been able to, on average, if you look over kind of a multiple rolling year average, been able to reduce that decline to about 10% per year. And I think that's sort of consistent if you look over the last year, this year, and looking into next year with the guidance we've given, that sort of demonstrates that. Going forward, I think it depends on a lot of things for us. Number one, capital allocation across a broader portfolio of opportunities post-completion of the Wintershaw Day acquisition until we get better line of sight. which we'll do through the budget process later this year and before we set guidance for next year. I think it's a bit too early for us to say how UK opportunities will rank against a much broader portfolio. I think that can only be good news for investors, for us to have more choice and opportunities for where we direct the cash flow we decide to reinvest in the portfolio. And then, of course, second thing it will depend on is what additional changes we hear might be coming in terms of the fiscal environment here in the UK and what actually happens with capital relief. And we won't know that until, I think, late in October. And so a bit TBD on that. So I think by the end of the year, we'll be in a better position to sort of give a more fulsome answer to your question mark. And then I think the second question was what kind of longer term view on the UK portfolio. I mean, we do continue to have generally good margins in the UK. We have profitable investment opportunities in today's fiscal environment. And you saw that with a couple of the wells I referred to in the presentation, paying back in under a year. I think the answer to that question is all really TBD, depending on what's happening with the fiscal environment going forward. Thanks for the question.

That's great. Thank you. And if I may have one more. The M&A deals that have got you to Wintershell, very clear. Could I ask if Wintershell was a specific targeted focus through 2023, or were there other opportunities of possible similar scale? That would be interesting to know. Thank you.

I think you know us well enough to know that we're always looking at a number of different things, Mark, and large, complicated transactions like this take a long time. So it was one that had been on the radar screen and in various stages of discussion for some time prior to announcement. But at the same time, we were looking at other things. as well, and I think that's just what a company like ourselves with our strategy has to do, and we continue to do that today in terms of thinking about what might come next.

Our next question is from Chris Wheaton from Stifel. Please go ahead.

Thank you, Linda. Alexander, good morning. Two questions, one to each of you, I think, please. Linda, could you talk a bit more about uh basf and the relationship we're establishing there and what you've been able to talk to them about how harbour is going to look in the next three to five years you know establishing that long-term partnership with which you can grow shareholder value with basf as a corner shareholder i'd be interested in how you've been laying out that that opportunity to them and Secondly, to Alexander, you can expect me to ask a question on the windfall tax for obvious reasons. Do you think the government actually understand the impact of natural decline in the industry, that you always have to keep investing and therefore the importance of maintaining that investment to drive production volumes and stop them collapsing, particularly when it comes to gas? Because certainly on my forecasting, and I'm interested in your view on this as well, but it's gas production that really gets hit if taxes go up and investment is curtailed. And that's an issue for energy security for the UK and actually for Ireland as well, given how much Ireland is interlinked with the UK. I just wonder if you could perhaps talk about those issues in relation to the tax discussions you've been having. Thank you very much.

Hey, Chris, thanks for the questions. Let me take the BASF question first, and then I'll turn it over to Alexander for the EPL questions. Yeah, so BASF. Of course, during our pre-announcement discussions, we had a lot of discussion with them about strategy, about Harbor's history, about our vision for the company. Of course, that's no surprise because given the way the transaction was structured, it was clear they were going to be a large, in fact, our largest shareholder post the completion of any transaction. So it was only natural that we had those discussions and that we shared with them how we saw the future of the company and the different types of opportunities ahead of us. And I think it's safe to say that neither side would have moved forward with the transaction if either of us were uncomfortable, if they were uncomfortable with our strategy and vision, or if we were uncomfortable or had any questions about the level of support we might get from them. And so clearly both of those hurdles were crossed and we were able to move forward and we're looking forward to the ongoing relationship with them. And as we've laid out in the agreement for the transaction, we'll have two BASF candidates joining our board and we're looking forward to all the value they're going to add through that.

Yeah, thanks, Chris, for the question on the UK windfall taxes as well. So I know there's lots of discussions and opinions around this, and we're sort of in this period where there's still quite a bit of engagement to be done with Treasury and government as part of that, especially on the capital allowances. Your question was sort of specific into if the government understands natural declines and the effects of this. I think you should just expect us to do our utmost in engaging with the government and trying to explain real effects of any of these changes and what the implications will be decline-wise, financial-wise, job-wise. We are certainly doing what we can on this side of the table, and so is industry in terms of our UK and other operators as well. So there shouldn't be any shortage of good intentions and companies engaging with the incoming government. Thanks.

The next question is from .

Hi, thanks for taking my questions. I have two related ones, please. The first was relating your expectations for the cash out from Harbor for the acquisition at the time of completion. You had previously highlighted $2.15 billion of cash payments, a significant portion of which will be generated by the target portfolio. I was wondering if you could comment on the cash flow generation of the target assets over the period and That was my first question. The second one was also related to this. I was just wondering if it was possible to highlight how the cash flow from the targeting portfolio is expected to affect 4Q. Given the high concentration of Norway assets, should we expect significant tax payments for the assets related to Vintajal as well in 4Q?

Sassy, could you just repeat that last bit of your question? Sorry, we couldn't quite hear it.

Yeah, I was just wondering, given there's a high concentration of Norway assets in the Wintershall target portfolio, would 4Q also have very high tax payments related to those assets?

Yeah, thanks for the questions. So on the first one, first, yeah, there's no change to what we've said here previously in terms of closing mechanism and how the 2.15 billion that Linda showed earlier today will be Here, we expect to be drawing on the bridge facility on day one. But certainly, the cash from the acquired business all the way back from June 30th last year up until the day of closing will contribute quite significantly towards that as well. You, of course, have the harbor cash on hand as well. The second question around the cash flow, yeah, you are right. As in the UK, where we have quite significant tax payments coming in October, in Norway, as you know from other companies you're covering, it is a bit lumpy between Q1, Q2, and then Q3 and Q4. So there will be, again, a concentration there in the fourth quarter when some of the tax payments most often are covered.

Thank you.

Next question is from Lydia Rainforest from Barclays. Please go ahead.

Good morning. Thanks, Linda and Tim, for the opportunity to do this. Can I come back to this idea of capital allocation and discipline? and how that changes the decision-making as you get bigger. If we go back to the idea that you only produced the first barrel seven years ago, you're now going to be one of the biggest global E&P companies. How do you manage that capital allocation process being bigger? And then, secondly, on the Wintershaw transaction, obviously it's going to be early 4Q. What are you really looking forward to in terms of getting that portfolio and getting ready to run? So when you're thinking about how you structure it, is it going to be regional? Is it going to be functional? And just basically those initial first three months, what are you really looking to get done?

Thanks, Lydia. Maybe I'll try my luck at the first one and then let Linda answer the second one. So on capital allocation, yeah, that's probably the number one most frequently asked question, whether it's by investors or banks or investors. new or old employees. And I think here, as a starting point, you shouldn't expect much change from how we've been running the business historically. We think how we think around capital allocation, managing the balance sheet, still investing in solid upstream oil and gas companies, and then predictably returning value cash to shareholders. As a framework, we still believe that is the right thing to do. And the one smaller change that you have seen over these last few months is our commitment here to an investment-grade balance sheet as well. So as a framework, we think that's a good starting point. Now, what else will change? Well, Linda touched upon the more global aspects of the portfolio and clearly the prioritization between different project in different regions with different opportunities and different risks will be something just a tad new to the company. So it's going to be as a framework, much of the same importance of investment grade for sure. And then, predictively, having dividends and or buybacks in the future as well. And then we realize we have a pretty big job ahead of us in terms of going through portfolios, opportunities, and funding just the top projects.

Hey, Lydia. On your second question, it's around integration, how we're going to run the company, et cetera. Yeah, as we're getting closer to completion, this is clearly coming into view for us. And as I said, we're well-advanced and have a good plan to do it. And it's, as we like to say, not our first rodeo. But with Wintershaw Day, as I said earlier, each transaction's a bit different. With this one, I think of it as we're purchasing sort of five intact business units from the company that are fully staffed, coming with their organizations. So the big change really is around incorporating those into our organization and then to increase the capacity of the corporate center. to support additional countries and all the reporting and everything else that comes with that, and then assure that all of our systems can accommodate the enlarged company. And all of that, as I said, well underway. We have added a few key senior leaders to the team to support that. Recently, Alan Bruce joined us. Some of you may know Alan from previous job at Ithaca. He was the COO and then the CEO at Ithaca here in the UK, and before that many years at Conoco. Alan's going to run our new corporate technical services organization, which we didn't have to have before because we had a large business unit in the UK. smaller ones in Southeast Asia. Now that it's a much more global organization, we do need to have some level of corporate support to ensure best practices are being shared, that we have the right standards and procedures around the world, and that these are being followed, and to help kind of build the community amongst our technical skill pool globally. So really happy to have Alan on board. He's a great addition to the team. And then the other key add that we're going to have is adding for the first time a chief operating officer to the company. So far, I've been able to keep the organization relatively flat, including for a company the size we already are today without having one. I like being close to the operations. I'm going to make sure that doesn't change going forward, but we do see the need to bring in someone who's going to be 100% focused. on safety, on operations, on efficiency, and on reliability, and making sure we're working on consistent implementation of procedures and policies, et cetera, across the different business units. And I'm pleased to say that Don Summers, who's the current COO at Wintershaw Day, is going to be joining us on an interim basis upon completion. It'll be a great source of continuity for us to make sure the transition is smooth. And she brings, of course, a wealth of experience. And coming from the UK herself, of course, she knows the UK North Sea, so we're really, really excited about having her for the few months that she'll be with us. And we have already made a decision on the permanent COO. Unfortunately, I can't announce who that is yet, but we're really excited about the person that we're going to be getting. joining us early next year. So those are gonna be two key additions that are gonna help us take the company forward. I think that was our last. Thanks Lydia. I think that's the last question. So thanks to everyone for joining the call. I think as you will have seen, the first half was another period of stable operational delivery for Harbor. It allowed us to narrow our production guidance upwards. And we've had good progress with all the different approvals for the acquisition, so we've also been able to narrow the guidance for completing the Wintershaw Day acquisition to early Q4, something that we're getting increasingly excited about. So thanks again for joining, everyone, and have a good day.