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.

Yes. Thank you, Luciano. And as Luciano mentioned, you know, this is exactly the type of thing to do this quarter, looking specifically on our existing assets and how we can optimize and maximize. So the greatest sell area, as an example, you know, Cygnus Infill and Captain Infill Wells that will provide additional cash flows in this high commodities environment. If we move on, I'm in slide 15. So as you've said, strong cash flow generation. supporting the advancement of the group's material pipeline of organic growth opportunities. We have high-value infrastructure-led investments. We'll talk in a bit more detail on fault lines or nadir in the next couple of slides that we've decided to accelerate in this climate, and we look to mature and prioritize infrastructure-led exploration in the Greater Cygnus and West of Shetland area. I mentioned the amount of agreement on the development that was signed with Harbor Energy. And again, building on the existing infrastructure partnership in the greater Britannia area and establishing the commercial framework to move projects towards sanction in 2026. If I move to slide 16, and this is the slide that we wanted to focus on. gives you kind of FID corridors for our projects, but more importantly shows the optionality that we have in our portfolio, the strength of our portfolio. So we have over 200 million barrels of all the equivalent resources that we're taking towards FID within the next 24 months. So it's a material pipeline of organic growth opportunities, that we're advancing, and it will focus on the two first ones here. There are a lot of colors here, but we'll take it from how we assess projects, select concepts, define and prepare for FID, and then our FID corridor with execution. So we're looking here at our FOP opportunity and the Ternido opportunity. It just gives you a sense of the strengths and optionality that we have within our portfolio. So last time we spoke more about CAMBO. This time we want to focus on, you know, on the two projects that we're pushing towards FIB in 2026. And if you look at the next slide in more detail, so slide 17, it's really a demonstration of how we work. So it's a strong, it's a journey of strong conviction. and really leading projects into execution and pushing them towards FID. So this with Hotline, it's an interesting story. It's an investment in an exploration well, counter-cyclical, right, through COVID, with a risk that was, you know, mobilized then and achieved exploration success. We further bought our partner's interest in 2023 and had 100% in this. SPOTLA field development and environmental statement was submitted in 2025 including you know long bleed and re-contract so removing this project into the execution phase and the farming agreement with Harbour builds on as we said existing partnership in the greater Britannia area and establishing the strong commercial framework to move projects towards farm investment decisions So you could say, hey, this is, you know, 10 million barrels of oil equivalent, but this is the type of thing that, you know, the businesses are high-value opportunities that we're taking towards this idea of increasing resources and production. Tornado, another example of a project that we're accelerating and pushing in 2026. which is part of our Westside Shetland strategy, and this is gas strategy, and it's gaining momentum with material opportunity set. So progressing through the NSDA regulatory approval thresholds, it will serve as a key enabler for future tiebacks and foundation for additional value creation and other tiebacks and serve as a gas hub. and it's catalyst for further infrastructure led exploration. Speed fire is one example of prospect that's been exemplified as a leading opportunity, but really supporting upside in a strategically important UK gas resource. And yes, this is a larger project in terms of net resources. But again, these are all building blocks of the future of production in our home market, which is the UKCS. If we move to slide 19, just to show how we think about these things, right? So all projects are competing for capital within the organization, across our portfolio, and ranking favorably. So if we look at kind of a snapshot of economics of the projects that we've just mentioned, so you're seeing here that the gross resource, the net capital cost, and the estimated projected investment rate of return per order return of. and really ticking the box on all of our investment criteria. Same with Tornado, obviously a larger project, so capital costs around the $450 million, estimated IRR about 50%, but again, ticking the box on all of our investment criteria. And if you're really curious on what that means, they're in our previous presentations in more detail. Moving to financial highlights, I'll hand over to Ian Lewis for CFO. Ian, please.

Many thanks, Genevieve. Good morning, everyone. So slide 21, please. We'll just call out some of the key numbers for the quarter financially, starting with 126,000 barrels average for production for the quarter and $18 for barrel of OPEX. Again, this is or kind of reset cost per barrel, which we expect through the year and demonstrates a high net back portfolio. And of course, that delivers on EBITDAX at 0.6 billion for the quarter and cash from operations of 0.4 billion. $67 million of profit in the period after tax and $151 million of free cash flow. So the delivery of cash from strong production and low cost for barrel and low taxes as our portfolio delivers and capital invests across the basin. Now, in terms of investment, which you need to talk to, adjusted net debt is at 1.1 billion, leaving us with a low cost. a pro-forma leverage ratio of 0.54 times 1.6 billion of liquidity. And this speaks to the opportunity the business has to continue to invest and to continue to deliver cash flow and dividends to shareholders. So moving on to the next slide, slide 22. I'll just give you some of the details of EBITDAX, just a couple of things I would call out here. We talk about stability in terms of production, the top line there, you can see the full year 2025, 119, and you can see the Q126 number of 126, and our guidance range from 120 to 130. Stable production across the period continuing to uplift from the 2025 out-term. And you go through the The next set which talks about the revenue is really nice for barrel. You can see an uplift clearly in Q1 and before. Head adjustments, $85 per barrel average. And then $7 per barrel adjustment for heading losses in the quarter. So still a strong $78 per barrel adjustment. coming off of the revenue line. Oil and gas stock movement, inventory draws at different prices, being the numbers overall in terms of production value. But those stable operating costs of $18 a barrel delivers a strong outturn for the core verse. As prices have escalated in March, we're starting to deliver on higher cash flow and higher EBITDAX, which we expect to come through in the remaining part of the year. Moving to slide 23. The financial framework, I just restated here just to confirm the details, the adjusted net debt figure with a low 1.1 billion at the close of the quarter as net debt ticks down with cash generation continued very high available liquidity with 1.6 billion available to us and I was calling it again the unused according to somebody which we have already taken part of in our RBL but still available to us. I'm not taking down in the EBITDAX, which is a reflection of the cash generation of the business. So on to hedging, and clearly a very interesting commodity in markets, and what we have been doing in the business is ensuring that we have stable cash delivery for dividend and but upside exposure. And we balance in oil and gas, and as we reflected on in our March end result release, we collared oil in the short term, but there is upside in the oil group, but there's also very significant upside in the gas group. And these two things offset each other. We, of course, in the quarter are really 50-50 in terms of oil and gas production, so gas delivery of upside value is very relevant to us. And what we've been doing in the past couple of months particularly is focusing on delivering cash flow out into the future and out through 28 as prices evolve in the market, clearly volatile and moving. But you can see on the left-hand side of the oil hedge book in the dark green dotted lines that the upward ticking of colors have been able to be moved through into 2028, including a $60 to nearly $100 oil collar position through 2028. And this, of course, the short-term changes in commodity markets impact us. We're looking for long-term stable cash flows and upside optionality and delivery. All of this is in slide 25 and 26, which we always give to the market, being very transparent. Key thing here is really on 25 and 26, if we move to slide 25, the white wide collar positions on oil as well as the unhedged positions on oil, getting the material off site but giving base cash flow delivery as we move through the next cycle of commodity prices depending on events, at least on a global economic item. Next slide, slide 26. Again, it shows the very significant upside in gas that we've left. That is the white element in the bar chart showing the significant upside on white collars. For example, in Q2 just now, we're at 124 pence a term ceiling, as well as the unhedged volumes. We're delivering that on our white collars and up at nearly 100 pence average for everything else. So very high gas price delivery through the hedge group and solid price. That leads us to page 27, slide 27, the dividend. The scale, the stability and the strength of the business is around longevity and seeing barrels brought through from continuing resources to reserves. It's about developing and probably a bit of M&A, but it's about stable delivery of returns to shareholders. And this is where the slide shows the history from 23, 24, 25. Where we are today, we committed to 30% post-tax cash and operations. That enabled us to share the upside in the commodity market with our shareholders. And the range we gave at the first results released for the year at the year end was 47520. We can see that now with the higher prices expected to be above 500. There's obviously a strong trajectory upwards. And our long-term distribution range is 20 to 35% post-tax cash from operations. Again, this is about confirming to our investors that we plan and we deliver. and we hedge to ensure that we can continue to deliver strong returns to shareholders and in this environment that is different with upside available on that 30% post-tax cash from operations commitment for the year. Okay, I'll hand back to Yannick to close out.

Thank you, Ian. So as you can see, a strong quarter with robust operational performance, as mentioned, trending into Q2 and strong financial performance. We have confidence in our operations. We're seeing strong execution of our strategy and capital to invest for longer term growth. A strong focus in the last three months on optimizing and accelerating organic investment to deliver incremental barrels during high commodity price environments. So this has been a focus recently. of the business that we expect that will, you know, will pay off in the future. Material evolution, as mentioned, of our organic operated and non-operated portfolio that's benefiting from this elevated commodity prices with a strong momentum towards FID. Ian mentioned our dividends, so upper end of the guidance. expectation of delivering above 500 million for the full year 2026 on the current trajectory with a very strong balance sheet that also gives us the firepower for further opportunities. Before we move to Q&A, sometimes I was told people dropped, so I would like to take the opportunity first of all to thank everyone that joined and also thank the great Ithaca team that been doing all the work behind the scenes. So, as I always say, this is the work of many. So, thank you for another really strong quarter. With that, let's move to questions and answers.

Thank you. So, as a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad. To withdraw from the queue, please press star 2. And our first question on the line is from Jan Evans-Cowie from Bank of America. Please go ahead.

Hello. Good morning, everyone. Thank you very much for taking my questions this morning. I just have two, please. I wonder if I can kick off by tackling the high-level UK question and ask a bit of a nasty one first. So we're all aware of the uncertainty in the state of play of domestic politics in the UK. I wonder if you can tell us how you feel about about the level of risk, if any, to consent that you're waiting for from the government. And related to that, do you think it's having an impact on the level of interest in Canberra from potential partners at the moment? And then secondly, please, you've talked quite a bit about your hedging efforts. I wonder if you can tell us where the market dynamics are at the moment in terms of where you're managing to sell your unhedged barrels versus benchmark prices that we're able to track on our screens. And also it would be very useful if you're able to say how that has changed quotes to date.

Thank you very much. Thanks, Cian. Yeah, so I'll take both of those, as seen here. Yeah, so in terms of politics, obviously, we don't comment on politics, and you wouldn't expect us to, Cian. I think in terms of regulatory processes, look, they're clear, they're legal processes, and they're being worked through. So we have a clear framework laid out, including the scope three framework, our developments, which we're doing, and they're running their course with public consultation and responses being provided, et cetera, through decision-making. So I think it's probably a straightforward process answer, to be honest, Ian, and we continue to operate under the – by the government and expect to be able to do so appropriately as we move these projects forward including movement. In terms of hedging, so yes, very volatile markets and indeed a lot has been made of the difference between the Brent featured market and the dated Brent market where we we sell our oil. In terms of what we are receiving, generally it's above the Brent futures, but obviously we have hedged a lot of oil. The interest in oil continues, understandably. I'll just say, Cian, keep your eye on gas. The MVP prices have been very strong and are not watched in quite the same way, but as I said in my Session presentation, half of our production is gas. We deliberately moved to that balance last year with the acquisition of additional sickness interest. And that delivered a lot upside on the MBP side. So we're seeing strong pricing and we're seeing weighted rent particularly strong. And of course, there's questions about where that goes. But subject to a lot of geopolitical decisions and movements.

Maybe to add to that, Ian, what we're trying to do, hopefully successfully, is really prepare the business on a forward-looking basis and make sure that we have the stability and predictability in the ability to invest in our assets and, of course, distributions. And as Ian mentioned, taking advantage of volatility when it's there. So hopefully you see that as well.

Great.

Thank you.

Happy to handle.

Thank you. Sure thing. Thank you. Thank you. Next question is from Saskamp Chilukuru from Jefferies. Please go ahead.

Hi. Thanks for taking my questions. I do, please. First, I just wanted to revert back to Campbell. You highlighted an FID expected next year. Just wondering what else would you require to take a FID here to expand on how the project compares on the investment criteria Or are you just waiting for a farming partner and, yeah, it says, well, what's the latest here? The second was regarding acquisitions. There have been unconfirmed press reports of a major looking to respite all of its assets in the U.K. Just wanted to understand your position, whether you have the appetite to do a material acquisition of any U.K. asset portfolio.

Governor Sasse, good to hear from you. On CAMBO, we're progressing the project, and we spoke a lot about this last night, we're progressing the project towards FTAB, ticking the box on everything that we need to do, technically, preferred financially, including ETO financing, and at the same time, pushing forward all the regulatory aspects of it. And as you can imagine, we need consent to move the project forward. We expect we'll get them. This is a robust project. We've shown last time the effect that this has on the UK going forward. And we expect the right decisions will be taken and allow us to take this to final investment decisions. next year. We're progressing this and we believe that this project will materialize. Economically, it's a breaking point in our list of projects. So this slide I was talking to earlier. So all these projects are projects that meet our very rigorous investment criteria and our intention is to take a time investment decision on all of them and including, as you mentioned, bringing in a farm in partner into Kansas. On the M&A side, I'm not gonna comment on anything specific. Again, the point that I wanted to iterate is we're looking at opportunities from a value angle, a value perspective, and the thing needs to meet our investment criteria. We would like to do more in our core market. As you can see, we're definitely one of the main players who keep investing in the UK. But at the same time, we're comparing and looking at other opportunities on how we grow and diversify the business going forward. So do we want to do further consolidation in our core UTCS market? Yes, but it needs to meet our investment criteria and kind of hydrate our portfolio. So it's not just a scale for the sake of scale.

Thank you. Thank you very much. Sure.

Thank you. Next question on the line is from Nash Curry with Barclays. Please go ahead.

Hey, good morning, everyone. Thanks for answering my questions. I have two, please. The first one relates to slight age, and I'm really impressed by your safety data at zero safety events for 30 days, as you mentioned during the presentation. And I wonder what have you done right to improve this substantially over the last few years? And my second question is more on macro and your view for the market. So the market increasingly seems to expect oil prices to remain elevated for longer. And I wonder how does that align with your own outlook and link to that, how would a sustained higher price environment lead you to adjust your own growth strategy or capital allocation plans? Thank you.

All right. Thank you. Well, of course, we are very pleased with the results, but what we have done, we've gone back to basics and we have looked at the root cause of everything. We've looked at all our events. We've looked at all our incidents. We've looked at all our actions that were outstanding to be worked on. We've looked at our culture. We've spent a lot of time in elevating the attention, the way that people communicate, the transparency, the openness, and so try to understand exactly what was happening in all directions. And so that we've worked fundamentally on what you call the leading indicators, the things that make your life better, and then this eventually has delivered on the lighting indicators, which are the ones that we measure. So this is fundamentally the action of a long period of attention and we have elevated that at all levels in the company. We talk about it and we act on it a lot throughout our different assets and departments.

Yeah, I'll take the second question, but thank you for the question on safety, because people don't often ask about this, and I think that, as Luciano said, that's a real focus for us, and thank you for bringing it to this, so I appreciate it. On commodity prices, we're not speculators. You know, we plan our business. and as mentioned, and Ian could talk about this on our hedging strategy again, taking advantage of volatility. But I think what we're seeing right now, as you said, is a prolonged kind of elevated prices. Now, I don't know if that's going to stay at the 100-plus dollar barrel or settle down somewhere lower than that. But I think what we're doing in the business, and this is what I tried to emphasize earlier, is we took a very hard look as this conflict started and through March and everything that we can do to get more out of the business, especially in these elevated prices. The GSA example that Richie emigrated earlier is a perfect one. It's not a huge contribution to our cash flow, but every dollar counts, right? So the ability to to extend production even by, you know, even by 10 days or two weeks generated more, you know, generated more for us in these elevated prices. We were accelerating some projects that, you know, we were looking to do potentially in advance later in the year. So we're accelerating this in this environment because we see the potential for, you know, for higher returns. and allocate capital in a disciplined manner in this environment. Ian, do you want to add something on hedging?

Yeah, I would just add, Nash, to that. I mean, as Sinead said, this is short-term and long-term. Short-term is all about maximum delivery of barrels, clearly in a high-priced environment. It won't always be like this. And we hedge and use the market forward positions to secure – cash flow for capital delivery when prices will be lower than this. And so I think we've always believed in long-term oil and gas demand in the West, particularly in growing globally. You've seen, obviously, in the last six months, the world has changed in the view of that through the IEA. That's just aligned to our view that oil and gas are are going to be critical and responsible delivery of that by good operators is going to be very valuable. That's where we see ourselves, that's what we're investing for. So it's very much a long-term view, and we plan the business around that and the cash flow protection around that, but obviously short-term delivery. And the thing we do, what we did with our FDF asset, keeping it on for an extra month to deliver extra cash flow, is a great example of short-term intervention that delivers value, but it's really a long-term capital.

Thank you. Next question is from Werner Riding with Peel Hunt. Please go ahead.

I'm honouring the policies of my questions that have already been answered. I had technical issues, but... Depending on the day, you're able to produce, I guess, roughly in and around up to about 150,000 BWEs a day from the current portfolio. As you mentioned, Rosebank, other FIDs, Fotler, Tornado, potentially Canva will help you grow and sustain those rates into the 2030s. But can you elaborate a little bit on future expansion beyond the portfolio? And, you know, Yanni, perhaps set out your corporate ambitions in terms of size, scale, How are you going to get there, especially in the context of your potential inclusion in the FTSE 100? Thank you.

Thanks, Werner. Yeah, so we kind of are pillars of the growth, right, around A, organic and, you know, the strength and optionality. that we have in our portfolio and, you know, we look at this and as we said, you know, we're looking to take a final investment decision in the next 24 months on over 200 million barrels of oil equivalent, which is significant. And at the same time, keep looking for growth opportunities through acquisitions. I mentioned that earlier, but, you know, we now see the value diversification. So, as we said, we're not shy about this. We're saying that we're looking, but we're being very disciplined and looking at what can hybrid our portfolio and where can we focus and replicate the ethical success going forward. So, that's something that's very important for us, and especially in this environment. So I'm not going to talk in terms of barrels a day of production, of growth, but we said last time that we're working internally on getting to a billion barrels of resources, so that's in our core UK CS market, and ideally we would like to diversify out of the UK and into a basin that we can grow in and start building a similar story to what Ithaca did to what Ithaca did in the UK.

Okay, great. That's clear. Thanks a lot.

Thank you. Next question is from James Cameron with Berenberg. Please go ahead.

Hi. Morning, guys. Jeff Michael here. Again, apologies if this has been answered too technical. This is on my side. Just had to, just firstly on the road bank, you obviously flagged the issue with government handling on the rig and how long that might be away getting fixed. Just wondering if there are any costs associated with that or potential penalties due to you, just as a matter of implications, I guess, aside from the obvious delay. And then thinking more broadly on the UK and the EPL, obviously earlier this year there was thoughts that it was going to be, the conversation was going to be brought forward next year. Part of that was the energy security investment mechanism kicking in. I was just wondering if the tone of conversations with the government has changed given the commodity price view and whether there's still that expectation that retail cancellation will be brought back?

Yeah, sure. Let me start from the second question. on EPL, and you're right, you know, there's been some discussions within the government, I think, you know, right now in the current commodity prices, obviously, even the OGPM, this would be a tax environment anyway. We believe that longer term, this will need to change, right, to really motivate and create an investment environment going forward. And most importantly, certainty. Now, you know, we said this in our November conference call on Q3 last year. We, you know, we think that the OGPN is a sensible solution. You know, the perfect is the enemy of the very good in this case, right? So, you know, we think it's a sensible solution. that we can operate under and we expect that this will be legislated and implemented by the government to allow us but also other operators to take material fund investment decisions in the basin. And in backdrop of everything that's happening right now globally, geopolitically, especially in our sector, commodities prices, and seeing where the UK is ranked in terms of production and UK energy security going forward and the volatile and unpredictable world that we're in, we think that would be very wise of the government to implement the OGP and provide the certainty that we're looking for. Ian, do you want to talk about the effect of the Rose Bank incident on costs?

Sure, happy to. So, yeah, and I'll just add in terms of tax, I think we've been very constructive with the government. We think there's a real opportunity here for the UK to deliver on securing a supply, but it requires the right environment. And credit to the government, they've come up with the right tax environment. It just needs to be implemented earlier. Yeah, no, in terms of Rosebank, with the rig off hire, there's a kind of short-term delay in some of the capital. We haven't amended our guidance yet on that, as we've confirmed guidance at the moment. Clearly, there's a lot of work on Rosebank going on this year. It's not just drilling through the FPSO. hookup and the all marine activity that will be ongoing as well as the continued work on the FBSO commissioning etc. So there will be a reduction in capital but probably not a hugely material change but that's to be determined based upon when the rig comes back obviously and that's part of the recovery plan as we work through with Australia.

Very clear. Thank you.

Thank you. Next question is from Ashley Kelty with Pamir Liverum. Please go ahead.

Good morning and congrats on a good set of numbers today. Just a question on Rosebank. Just wondering if you could give us an indication. Can you speak louder, please? Can you speak louder, please? You have a bad connection. If you could just raise your whistle a little bit so we can hear you better.

Sorry, is that better?

Yeah. Yeah, it was just a quick question on Rosebank. It was wondering if you can tell us sort of how close the vessel is to coming on location. and if you're able to give us any indication around the hookup and commissioning timeline, and also if the delay with the rig going off higher, if that has any impact on the timeline to first production.

Good morning. Well, yes, the... The FPSO is at this moment in a yard in Bergen, completing. So the move to location is imminent. The schedule is being reviewed with the operator continuously. And so there is always an observation of how much work you better do onshore and how much you leave to be carried out offshore. But definitely the plan is to have it moved on location in Q2 and then start all the activities which are already planned with the vessels for all the other hookup and mooring and starting of commissioning so this is still there in the plan as Ian said the FPSO activities are moving on and as far as the impact of the of the rig incident is concerned, as we said, the rig operator had indicated a window of when the rig can become available. But at this moment, all the assessments are being completed because, of course, There are several moving parts in a handling incident like that, and so the schedule has been refined, so we're not at this moment in position of saying anything more specific, but the overall picture is that this can be accommodated within the project schedule as it's been declared by the operator. Thank you.

Thank you. No further questions on the line, so I will hand back to Yaniv to close out the call.

Thank you, everyone, for joining our Q1 2026 numbers and results. Thank you for your questions, and we'll see you again next quarter. Thank you very much. Have a good day.