Ithaca Energy plc

PLC Q1 2026 Results, Investors and Analysts call. My name is Seb and I'll be the operator for your call today. If you'd like to ask a question during the Q&A session, please press star 1 on your telephone keypad. If you'd like to withdraw your question, please press star 2. I'll now hand the floor over to Yannick Friedman, Executive Chairman, to begin the call. Please go ahead.

Thank you, Seb. Good morning, everyone. Thank you for joining our Q1 2026 results presentation. I'm Mimi Friedman. I'm the executive chairman of Ithaca Energy PLC. With me on our call today is Luciana Vasquez, our CEO, and Ian Lewis, our CFO. A strong Q1, as the first slide says, delivering on our strategy. And in today's agenda, we'll cover our Q1 2026 highlights, strategic and operational highlights, and financial highlights. And as always, we'll close with Q&A. If you'll move to Q4, if you'll move to slide four. So our capital allocation policy supports our attractive shareholder return. So what we wanted to show you is how this plays into this quarter. As mentioned, strong production, robust production that is supporting strong cash flow generation. And we're seeing the strong performance trending into Q2. So in Q1, 126,000 barrels a day of production. We took a hard look in optimizing and accelerating activity. across our portfolio in this elevated commodity price environment. So that's been a focus of the business in the past few months on really how to optimize and look for opportunities in this market. On the profit side, we have a strong hedge book that underpins our shareholders' returns and our investment plans. We are taking advantage of volatility. So Ian will speak to this later. but we're now able to also hedge at attractive prices into 2028, keeping upside exposure. Full-year dividends trending to the upper end of our range, and we expect this to be above $500 million for full-year 2026. And with this enhanced capital generation, This gives us capital to unlock and accelerate growth opportunities, and we'll speak to that later. If you'll move to slide six. So I'm always proud to say that we're executing across all of our strategic pillars. So we're optimizing production, as said, in this elevated commodity crisis. We took a thorough review of our portfolio and try to identify every upside opportunity that we had this year. Luciano will give an example to that. We're building strong momentum in unlocking organic development opportunities with projects that meet all of our robust and investment metrics and we're pushing them closer to a final investment decision. We've completed the Tobermory farming in Q1. and farm down of 45% stake in FOTLA to harbor energy that further supports organic growth opportunities and value creation. And we're continuing to be active but disciplined in pursuit of M&A opportunities both in the UK and internationally. Bottom line, at the same time delivering attractive shareholders return, and as mentioned, expected dividends to be in the higher range, the higher range for 2026. With this, I'll hand over to Luciano on slide seven to talk about our safe and robust production.

Thank you, Yaniv, and good morning, everybody. And I will focus – yeah, can you hear me? And thank you, everybody, for joining. We'll focus on the activities that we have put into one. It has been a very intense quarter, activities spanning in various directions to deliver our strategy. In particular, we have kept on with a strong operational performance in all key metrics. We have created space for a number of additional key activities in support of our organic growth, such a long-term REIT sharing agreement. and in a period of elevated commodity prices. We have intensely reviewed options to maximize our output in this period, accelerate investments, defer optimizing the plants, deferring some activities. So we can go to next slide, which is slide number eight. And of course, this has happened always with a very strong focus on HSE, where we have continued delivering an excellent safety and environmental performance. This meant zero CO1 and CO2 process safety events, just like our last two years, and a continued strong personal safety performance, showing a positive trend in our incident frequency. In particular, we are registering a three-month long run without any recordable incident throughout our activities. On our emission level, which is measured, as you remember, in intensity of CO2 versus barrel-boil equivalent, continues to be substantially lower than the average in the UKCS basin, and we're expected to improve with the cessation of production of two late-life assets in 2026. We can move to the next slide now and focus on our production, which has been of 126,000 barrels per day in the first quarter in line with our full year 2026 guidance despite we have extraordinarily challenging conditions with weather of the severity that had never been experienced in decades which have impaired our ability to operate regularly for several weeks across january and mid-february even so after an average of 120 000 borrow per day in january which were only weather-related, we reached a two-month average of 129,000 barrels equivalent per day, reflecting a strong recovery that continued into Q2 and allowing us to support our 2026 guidance of 120,000, 130,000 barrels per day. Moving to next slide, I mentioned earlier about a strategic agreement for a long-term sharing commitment to secure a rig for our operations. This was with a view of supporting various activities across the spectrum of our strategy. So, we have finalized an agreement with Harbor Energy, which foresees the sharing on a 50-50 basis of the use of the same submersible rig, PBLJ, for a period from 2026 to 2030. And this agreement serves actually several purposes in our strategy. Will be utilized on multiple assets. It will allow to perform in field training activities, whenever we identify opportunities or where there are requirements, or a quick call, so short-term intervention. It supports our organic growth plans, and in particular, it is planned to be utilized for the development of our Fort La Project that Yannick just mentioned, also in partnership with Harbor, and also will allow to deliver in an efficient and flexible way our P&A program that we have committed to and we've shared it with the regulators. In all, the RIG offers efficient commercial condition, of course, thanks to the long-term commitment, flexibility of intervention, sharing of the associated costs, specifically logistically, and added to proven performance record of this RIG in the area. We can go to next slide now. And one of the assets that sees an example of our intense activities in Q1 is, of course, Captain, where several actions have been ongoing. On the other hand, we're having good progress with our drilling campaign. One well has been put in production at the beginning of the year. One is at its final steps right now, expected to come online immediately. And we have one more work over for a third new well expected to come online in summer. and further activities towards the end of the year, planned then to come on stream early 27. Coming to the PBLJ that I just mentioned, it is in fact planned to intervene on well B15, one of those cases where the immediate availability of a rig makes it possible to add locked-in production as a response to a favorable commodity price environment, as we mentioned. And lastly, to reaffirm the strategic and long-term value of the asset, we have successfully completed our maintenance campaign, and the Flotel Safe Caledonia left the site in February after completing an extensive activity plan to safeguard the environmental and operational performance of the asset in its continued life. If we go to the next slide, slide number 12. to move to our thickness assets where the infill well campaign continued at pace. After the spotting of well C13 in Q4 last year, production started in early May with quite efficient well operation on a first-of-its-kind well for Ithaca, giving now better performance than we have foregnosed. And then we have moved to the next shed well, C14, as part of a three-well program in the year. With C15, plan to study in Q4 this year in support of a practice that is performing rather well. And we are currently maturing business cases for subsequent infill wells expected to be sanctioned during the summer. We move to next slide. And this year also sees an increase of our decommissioning activities, in particular the cessation of production. of the greater Stella area, comprising of Stella, Harrier, Vorlick, and Abigail fields, bringing the end of the operator hub, FPF1, after nine years of production, which occurred on the 27th of March, and then also the imminent COP of the Alba field coming in the next weeks. One example of agility and value-driven planning has been, in fact, the greatest seller ever, where we managed to modify, at a short call, the complex schedule and execute a temporary extension to the COP date by 27 days ahead of the FPF1 platform sailing to Norway for dismantling and recycling flow, with no impact to the overall plan. If we go to the next slide, With a focus on Rosbank, moving to Rosbank, the development project has entered its final full year of development activity and is progressing towards first production within the operator-stated window of 2026-27. Rosbank FPSO successfully sailed away from Dubai in Q1, having undertaken major refurbishment works over the past two and a half years. Remaining scope are planned later this year as part of the program to moor, to hook up and commission the asset in field ahead of its first production. The drilling campaign commenced also end of Q1 this year, with the campaign due to extend over 18 months, targeting seven wells. An equipment handling incident has seen the rig come offline in April. with the rig operator now estimating a period of three to four months remediation before returning the rig to hire. As more data becomes available in the coming weeks, the schedule will be refined. And with that, I hand it over back to Yaniv.