Hello, everyone, and welcome to today's Ithaca Energy PLC Q1 2024 Results Investor and Analyst Webcast. My name is Drew, and I'll be your operator today. During today's call, there will be a Q&A session. To register a question, please press star followed by One on your telephone keypad. To withdraw your question, please press Star followed by Two. I will now turn the call over to Iain Lewis, CFO. Please go ahead.
Thank you, and good morning, everyone. Welcome to the call this morning. Glad to be able to take the opportunity to review the Q1 results and to walk through a few of the changes in the business and the proposed changes in the coming months. So if we can move to slide three of the presentation, please. This slide summarizes the executive changes that are announced today in support of the next phase of the business's progress. This is looking ahead to the completion of the transformational business combination with the Eni UK business that we expect, as previously announced, to complete during Q3 this year. So as part of that, those changes, we are announcing today the expected and proposed appointment of Luciano Vasques as CEO from completion.
And, we're also announcing today the appointment expected of Yaniv Friedman as Executive Chairman, replacing Gilad Myerson, who she left the company. We're also glad to be able to announce that Odin Estensen has been appointed as the Chief Operating Officer of the company, reflecting the new business that we expect in Q3 of substantial operating scale, and bringing Odin and Luciano and Yaniv together into the business is really a significant step forward in terms of operational and oil and gas experience. Luciano comes with over 30 years experience internationally in the oil and gas business of Eni and Odin, a very experienced in terms of history with Shell and latterly as the Managing Director of Neptune's UK and Norwegian operations.
Yaniv comes to us again with significant energy experience, previously of NewMed in the EastMed. And with our significant Israeli shareholder base, Yaniv's experience in public markets in Israel particularly is a great addition to the team. We also announced previously the appointment of Zvika Zivlin as our Senior Independent Director. And Zvika has joined the board and completes the lineup of the exec changes and board changes that we're announcing today. So moving on then to slide four, a bit of a summary of the Q1 highlights.
We have had a good quarter, a solid delivery of our expected operational output, and really quite a quarter in terms of the proposed changes to the business through the combination announced with Eni's UK business. In terms of the project, the major project that we have been undertaking in the last several years, Captain EOR Phase II, really glad to announce that is completed, and completed with an earlier injection anticipated of the first polymer into the subsea wells, and completed on time and on budget. A very major project delivery for the business, and really underpins the production growth in the coming years, through delivery of polymer into the reservoir in the subsea wells in Captain.
We also undertook the recertification of the Captain rig equipment, and that was completed during the quarter as well. Again, a very important milestone. The rig will be activated in Q3 for production enhancement through the next 18 months of drilling on Captain. The 13th drilling campaign on this massive field, and looking forward to seeing the rig in operation later this year. We also were awarded a two year license extension at the end of March on the Cambo Field. That supports the continued evolution of that field towards FID, and supports the farming process that we're working through as well.
In terms of Q1 results, production in line with the guidance that we gave to the market in the past month or so, with EBITDAX of $339 million, net cash from operations of $314 million, free cash flow around $130 million in the quarter. And that leaves us in a very strong position on the balance sheet, net debt of $461 million. So continued deleveraging of the business with a 0.3x net debt to EBITDAX ratio. Again, that's a historic low for the business, and also very significant liquidity available to us of over $1.25 billion as at the end of the quarter.
With that and the ambition for strong delivery this year, of a dividend, we're aiming to get up to $500 million, really, a solid set of results and, strategically successful, Q1. Moving on through slide 6, and these are just reminder slides really of what is a very significant business combination that we are in the process of working through. Slide 6 summarizes the key headlines, the execution of the Eni satellite model, bringing their highly cash generative UK assets into the Ithaca portfolio. And, with the combination of skills and expertise and assets, really creating a UK powerhouse with a pro forma production of over 100,000 barrels a day.
As we work through the coming months and the conclusion of the business combination, it really sets us up for growth and dividend return to shareholders in the coming years. Slide seven just summarizes the assets, so I don't intend to spend too much time on these, but really, critical to learn how substantive and material the combination is. Slide eight summarizes where that puts us in terms of production, but also reserves and resources, and by external estimation, the largest resource holder in the UK, with six of ten of the largest UKCS fields and a resource to production ratio of fifteen years. Slide nine summarizes the key elements of the deal and just reiterates the key points from our perspective.
The board are very happy with the deal and looking forward to working with Eni as we work through the closeout of the transaction in the coming months. Slide 10 summarizes the view from an Eni perspective as Ithaca fits into the satellite network that they have. So we'll be an independent company with substantive scale, but with the world-class support of Eni from a technical perspective, really setting us up as we move ahead. So on to slide 11, and back at the Q1 numbers. So the references there in terms of the bar chart shows the Q1 2024 performance, the full year expectation range that we gave previously.
But really, the key guidance range is the 80,000-87,000 barrels a day on the third bar chart. That's the economic pro forma. So just a reminder for everyone that the deal economically will be effective from first July. We expect to complete during Q3, but economically from first July. So that means that we're expecting 80 ,000 -87,000 pro forma for the year economically. Q1, lower than expected, when we announced our guidance for the year, this was all fully baked in, but we had a number of non-operated infrastructure issues during Q1, which we have previously brought to the market. So Pierce off stream for the entirety of Q1, when we expected it to be on, but now resolved and ramped up really to full production.
In fact, they hit a max gas rate just this past week. Schiehallion, likewise, a number of production issues to do with weather and related outages. Now resolved, and Schiehallion is approaching peak rates as of this past week. And likewise, Erskine had a number of issues with the host facility at Lomond, but that is again, likewise, resolved. And Erskine has been on flush production the last couple of weeks. So in terms of outlook, no change. The effective completion date of the deal is expected first July, and the production range remains as guided. Slide 12 gives a bit of a summary of the EOR Phase II project. As I mentioned, a really substantial project.
It's difficult to convey, simply how significant this is, but, you know, over 500 tons of steelwork and equipment installed. Quite innovative. This originally was going to be a new platform, and, you can see that with the risers on the side of the existing, one of the existing platforms, we were able to, significantly reduce the cost of the project. 36 kilometers of flowline installed, 1.2 million offshore man-hours.
To complete a project of this scale on time and on budget, through the COVID, and also the knock on cost inflation impacts that have been felt around the world in terms of the energy issues globally, really proud of that project execution, and everyone involved in it has received a lot of thanks from us for a safe and effective execution. So looking forward to seeing the oil from EOR 2 come through in the coming years, from what has been a great project. Slide 13 just summarizes the rig recertification on Captain as well. This is a very significant activity with large pieces of equipment out through a number of countries in Europe being refurbished to be recertified.
and that's all coming together now on the, on the Captain asset in, in planned timeline for a drilling campaign on Captain in the, in the third quarter onwards. So onto our financials, slide 15, if we can move to that, please, just summarizes the Q1 performance, restating that we, we paid our final tranche of the $400 million dividend for 2023 during April, and we paid $134 million to the shareholders. And, really, that rounds off the successful 2023, despite a number of headwinds and, and significant return to shareholders.
Q1 performance, really at a glance, 58.7 ,000 barrels a day production, in line with our guidance, generating actually a higher cost per barrel marginally than previous, about $22.9, but actually, OpEx lower in Q1 2024 than it was in Q1 2023, showing significant cost control, across the business. And that's what helps us generate, $314 million of net cash flow from operations, and $339 million of EBITDAX. Just calling out again the net debt, the lowest ratio in the company's recent history and, $1.25 billion of liquidity. Slide 16, we give a bit of a breakdown in EBITDAX.
This analysis tends to be appreciated by analysts and investors, so we, we continue to give it. Yeah, just calling out a couple of significant numbers there. One is the hedging gains number. So you can see that $73 million of hedge gains in the quarter, consistent actually with Q1 2023. So again, significant value add from the hedging, the hedge book that we, that we've put together and the approach that we take. And that, together with controlled operating costs, lower in Q1 2024 than 2023, means that we've been able to deliver, a 339 million EBITDAX, despite production being lower than, than, we would have, we would have hoped for. So solid production, or solid, financial delivery despite lower production, in the quarter.
Okay, slide 17, just a bit of a summary of our financial framework and, a trending on the left-hand side there in terms of, of how we protect the business from a balance sheet perspective and, and, and cash generate. And you can see significant cash balance at the end of the quarter, offsetting our, our, our debt positions, to bring us to $461 million net debt, and significant liquidity available to us. So, continuing to, to, to put the, the balance sheet in, in good shape to face the, the future and the opportunities that lie ahead of us with the combined business.
And of course, we're having the addition of assets from the Eni business combination that will come in unlevered, such that the pro forma net debt EBITDAX is showing significant debt capacity and availability in the business. Slide 18 summarizes the hedge targets, and again, what we call this hedge at the peaks approach. So we have been waiting for the right time in the markets to hedge. You can see on the right-hand side there that the oil to gas pricing that we have hedged at. Probably the key thing here actually is the forward curve, of course, is the historic cost, but we hedge where the forward curve position is in a place that we like.
You can see that we held off gas hedging materially from October 2023, right through until the last few weeks. Actually, did some at the end of March and then actually quite a lot last week as gas prices not only lifted, but also flattened off on the forward curve. And this is what we've been doing, material hedge positions laid down when we like the pricing and holding off when we don't. And that's been generating significant gains to date, and we continue to develop that position. Slide 19. Again, we give quite a lot of access to our hedge book here. The key moving part here actually has been gas hedging.
You'll see that what we've been doing is laying down downside protection through put options, but also wide zero cost collars. So we actually augmented our policy as a board during the last quarter, so that given the price of put options has been quite high because of the volatility, we could see some very nice wide zero cost collars that we could get, and we've been using those to add to the hedge book, so give us upside right up to, you know, 130, 125 pence a therm.
But gives us a floor of kind of in the high 70s, and that's something we've been starting to lay down in the past few months. But very strong gas book, generating a lot of gains year to date, and we'll continue to see that through Q2 and Q3. As you can see, our strong average floor of 123-127 for the next two quarters. Okay, in terms of close out remarks, I would just turn it to slide 21, and you can see on there that there's no change in the guidance from the standalone perspective on the left-hand side, but really more importantly, the combined guidance for the business on the right-hand side.
So this is assuming completion of the deal as we fully expect with a 1 July effective date for all metrics taking it to a substantive material increase in our cash flow and production year on year. Just a reminder on slide 22 of our capital allocation framework, which underpins what we do. You can see that we have been investing, we continue to invest in material CapEx to sustain production. The Rosebank project continues to move ahead with first oil and with project timelines as previously provided. We continue to protect the business to give us room to maneuver and to give us optionality, and that's been highly successful, as you can see from our deleveraging trajectory.
Return to shareholders, we are committed to, just like we, we did in 2023, and, we are moving through, our business plan with, with those, targets of a, of a commitment of 30% post-tax cash from operations and an ambition, to bring that higher in the evolved category by additional yield, through, through the back end of the year.... Okay, slide 23. Just a couple of, of, of closing remarks from, from me before we move to Q&A. Really, this is, a fairly business as usual presentation today. The key, the key things to, to call out is that the combination with, with Eni moves, ahead towards concluding in line with expected timelines.
We are able to announce significant changes to the executive team and the board as we move into that new business. So new business with a new exec leadership team with a lot of depth of operational oil and gas experience that really sets us up for the future. Successful delivery of a material project in Captain EOR Phase II that we expect to underpin production for years to come. Extension of the Cambo license, which gives us optionality as we face the future investment horizon and the fiscal environment that remains uncertain. And a reconfirmation of our ambition for significant dividends for up to $500 million for the next two years post the completion of the deal.
With that, I will turn over to Q&A.
Thank you. We will now start today's Q&A session. To register a question, please press star followed by one on your telephone keypad, and to withdraw your question, please press star followed by two. Our first question today comes from Werner Riding from Peel Hunt. Your line is now open. Please proceed with your question.
Thank you. Morning, Iain. Question on production growth. The main driver of it for the next couple of years, as you talked about, comes from Captain. And I suppose therefore, that also represents the main risk. So looking into next year from your existing assets, I know you've only just started injecting, but I was wondering, like, within your forecast, how quickly do you expect to see a pressure response in the reservoir to the polymer injection and then a subsequent production response? If that makes sense. And basically-
Yeah. Hi, Werner.
Yeah, just trying to understand how quickly you'll know if it's going to plan, basically?
Sure, sure. Yeah. No, no, thanks, thanks, Werner. I mean, I would point out here a lot of growth comes through Captain, and I think, you know, post the completion of the deal, the business combination, you know, we all have a very diversified production portfolio. So Captain remains a significant asset, but actually, you know, we have a very large Alba Franklin share and J-Block share, et cetera, that comes through our production post-deal close. But yeah, to answer your question, I mean, the Captain polymer, remember, this is Phase II of the enhanced recovery of Captain, with Phase I already having been undertaken, the platform well program. So we understand the response of polymer.
It will be different in terms of the subsea wells because of the reservoirs, but we fully expect to see returns in the coming months, but that will only ramp up over the next 18 months, 24 months. So what's happened historically with polymer is that there are some wells that come ahead and some that come behind prognosis and the response is differential. So we'll expect to learn as we see responses, but there's high confidence from everyone that's looked at it, including our external reserve auditors, that the volumes will come, and the question is exactly the timing and the patterns. Each pattern is different in the reservoir. So yeah, we'll see. We'll start to see results in the back end of this year and more through 2025.
Okay. Thank you.
Our next question today comes from Mark Wilson, from Jefferies. Your line is now open. Please go ahead.
Yeah, thank you for that, Iain. Good morning, and for that update on Captain. Just could you tell us where we stand on Rosebank? What's the current activities in that? I know it's still early phase. And then on a combined basis, where we stand with Cambo, and whether you think there's any increased possibility of that moving forward, following the combination. Thank you.
Thanks, Mark. Yep. So, Rosebank, there's no material updates. So the project continues to be executed in terms of the plans for the subsea infrastructure phase and drilling phase. That continues with the relevant supply chain stakeholders. I guess the big visible project element is the FPSO out in Dubai. You can see it from your hotel if you're out there in the city. She's a big vessel. But that's kind of continuing in the construction and kind of preparation phase. So, as always, these projects, there'll be elements that they will find, and they will amend plans, et cetera. We have no material update from Equinor on that. Everything's as previously announced.
So when we get an update, that's more full, no doubt that will come to market through Equinor and ourselves. But yeah, it's moving ahead in line with previous announcements. In terms of Cambo, so Cambo is a great option for us as a business. We were keen to have control over that, which we do. The deal with Eni makes the project substantively more possible and more solid in terms of bringing it to FID and financially being able to make decisions on it. Clearly, ourselves, we're still looking for a farm down partner. We have worked and are working with a number of companies on that.
Clearly, the backdrop here is the fiscal environment and the potential tax changes. So given the election has now been called, and we are looking for an expected result in a matter of weeks, you know, the decisions around Cambo will follow clarity from the government, whoever they are, on their fiscal policy.
Okay, thank you very much. I'll hand it over.
Our next question comes from Matthew Smith from Bank of America. Your line is now open. Please proceed.
Hi there. Good morning, Iain. Thanks for taking my questions. I just had a question I think last quarter I asked, around whether you had sort of certainty on what the Labour sort of proposals were, I suppose, in relation to both the EPL and, and also the regulatory environment, I suppose. Now you say, given general election's been called, I believe there's been further engagement with the current opposition, since then. I just wondered whether you did have any clarity on what their proposals are versus, you know, the, the last time, we spoke on the quarterly call. I suppose that's sort of two parts.
It's one in relation to the EPL, where I think the main confusion towards the start of the year was whether the proposal was to remove investment allowances under the EPL or both investment allowances and capital allowances. Then I suppose the second part would perhaps be on, you know, what no new licenses looks like. Would that have any impact on potentially converting Cambo into a production license, or is that sort of not how you understand the policy positions? Any comments on those two specifics would be much appreciated.
Yeah, thanks, Matt. So, yeah, I mean, in terms of the Labour Party position, we expect that to be made clearer during this pre-election phase. So I think, you know, how you've referenced it in terms of lack of clarity in some areas is how we see it, and the industry sees it, and we are very much working with the industry and directly with all those involved to seek real clarity for the industry. This is an energy security issue. It's an environment and emissions of the UK, net when we import issue, and the right thing for the government to do is to support the industry as a whole. Labour heard those messages and continue to hear them. Let's see what the response is, and we expect to get clarity in the coming weeks.
Okay, perfect. Well, thank you. Happy to pass now.
Yeah, in terms of the regulator point, sorry, on Cambo, and the regulation and the licensing point, I guess, is quite separate. We have a license for Cambo, it's extended for two years to work through that process. So that is a different process run through the regulatory body there, the NSTA. And as we move forward on that field, you know, it's a field which we think should be developed. And there are a number of, of, you know, technical and financial, you know, processes to go forward on that project. But clearly, a fiscal environment is very material for a project like Cambo.
To give you an example, you know, Labour Party talk about Norway and Norwegian rates of tax, but of course, a project like Cambo at FID in Norway would have guaranteed capital allowances. So there's an example of a regime that's high rate, but also high certainty, and that's not currently where we are. So yeah, that will evolve through with the fiscal environment as part of the picture for Cambo.
Thanks for the comments, Iain.
Thanks, Matt.
Our next question today comes from Chris Wheaton from Stifel. Your line is now open. Please go ahead.
Thanks, Iain. Good morning. A number of questions from me. Firstly, can I just go back to Mark's question on Rosebank and ask how much of that $130 million of CapEx in Q1 was related to Rosebank? I'm presuming not very much, so most of the CapEx is going to be very much second half or second half weighted in the rest of this year.
Yeah, no, it's fairly, it's a fairly flat profile, actually, because I guess the there are slightly increases later in the year, but yeah, it was fairly material in Q1. We're kind of running in the kind of net, kind of $10 million-$50 million a month. Yeah, so that at the moment, but yeah, that will get slightly higher at the end of the year.
Okay, that's helpful to clarify. Thank you. I'm gonna have to come back to the windfall tax as well, because it seems to be the you know, such a driver of shareholder value, but is completely outside of your control. You must be thinking about contingency plans. You know, if Labour implement the you know, the worst case scenario, so you know, a 78% tax rate, but only allowing 25% offset against tax of that investment, so you know, massive disincentive to investment there. You'll have seen the research I've published on this. You know, where does it leave you as the largest resource holder in the North Sea? I would have thought the Captain drilling program, as your initial thing, would be surely at risk, Cambo as well.
I just wonder, you know, in terms of your contingency planning, you know, where are you thinking at the moment where this might leave the company?
Yes. Thanks, Chris. So, to summarize, my senior research supports the arguments. I'm gonna take a big step back here, this is kind of mired in politics, and it shouldn't be. Everyone in the UK should be supportive of energy security, of good jobs, and of environmental decision-making around the energy transition. And the plan for energy transition, as Unite the Union have said, really isn't there around jobs, and certainly the energy security point hasn't been answered. But the key thing for me is that the emissions answer hasn't been given either. We are in danger of, as a country, importing high-emission oil and gas, and really not being honest around how that really plays out.
So handling the oil and gas industry needs to be done very carefully by any government, given the significant resource and opportunity it is. We continue to make that message clear. In terms of our business, what we've been doing is building optionality. So that's what the merger with the, you know, UK business does. We were doing that anyway, organically, so we have a number of decisions to make around for how we or where we deploy capital. We want to deploy that in the UK. We are keen to deploy that in the UK. We have significant resource and project opportunity to deploy it in the UK. That brings jobs, it brings production, it brings energy security and low emission production.
However, we have options to deploy that elsewhere, and I guess that's where we stand at the moment, is we've been building liquidity capacity in terms of investment and also opportunity capacity in terms of our business, but we have to make investment decisions for our shareholders that deliver the best economic return. And the kind of fiscal changes that you allude to as being on the outer limits of what may be proposed would certainly have an impact, a material impact on our plans. But we don't think that's where we'll end up. We think all of the political ramifications that are currently ongoing, that the right answer must come forward around a sensible policy in this area that manages us through this transition.
Brilliant, then. Thanks so much. I hope to God you're right. I mean, losing 100,000 jobs by 2030, you know, threatening the UK's energy security by, you know, having domestic gas production collapse 70% by then as well, it just makes no sense to implement a policy that does those things. So I just hope sanity can prevail. Thanks very much-
Yeah
... indeed, for the response. Thanks very much indeed.
Thanks, Chris.
As a reminder, if you would like to ask a question on today's call, please press star, followed by one on your telephone keypad. Our next question comes from Kim Fustier from HSBC. Your line is now open. Please proceed with your question.
Oh, hi. Good morning. Two questions if I may. The first one is on the dividend. You talked about an ambition for up to $500 million in 2024 and 2025, subject to operational performance and market conditions. When is the decision expected to be made on the 2024 dividend, and how do you define operational performance? Is there a baseline there? And then same question with respect to market conditions. Secondly, just on the timing of the Eni deal closing in the third quarter, any more detail on that would be useful. Thank you.
Sure. Thanks, Kim. Let me... I'll deal with the first one or the second one first. So in terms of the business combination, so obviously, I mean, the regulatory process just for transfer approval, which is relatively straightforward, you know, that takes up to three months. So, you know, the applications are all in on that, but that takes three months, and that's a kind of key gating item that has to be worked through. From a paperwork perspective, there's clearly a number of changes required to be worked through, but the next, the key next Phase is the publication of the prospectus circular. It's a Class 1 transaction with the issuance of shares and therefore requires both those. So we expect that in the middle of the year.
It may well be July, working through the timeline there just now, but that will then be followed by a shareholder vote, which will be a month or so later. And, and of course, the Delek share, which is nearly 90%, has been irrevocably committed to vote for the deal, so that's the expectation of the shareholder vote. And we expect then, so that takes you to kind of into August. We expect that the deal will close before the end of September. So just as we previously highlighted, we're talking about a Q3 completion. In terms of the other question on dividends, yeah, it's too early in the year to be announcing dividend specifics.
I think we've been, I guess, probably more open than anyone in terms of dividends, saying that 30% post-tax cash from ops is the baseline, and we will deliver that. That's our plans. But we've got an ambition to get up to $500 million, and we believe the business can get there in terms of operations. Yeah, it means production delivery. You know, we've a number of delivery requirements across the business. The Seagull, for example, is a large new project in the Eni UK site, which is going well, but that's you know, two new wells that are coming on in the second half of this year.
And yeah, production from Captain, production across, you know, our significant asset base. It's a delivery there, but also delivery in the markets. You know, prices have firmed up in terms of gas in the last week or so, which is good to see. Oil price is pretty firm as well. We're looking for that to strengthen through. So I mean, that's what we mean by operational delivery, right? Cost management, and production and market response in terms of commodity prices.
Thank you.
Our next question today comes from James Carmichael, from Berenberg. Your line is now open. Please go ahead.
Hi. Morning. Just one from me. I guess just coming back to the topic of tax and UK uncertainty. You mentioned there that, you know, you've obviously got a good balance sheet, lots of liquidity to go investing elsewhere outside the UK, potentially. I'm just wondering what sort of conversations you've had with Eni around that, because I guess, you know, Vår Energi is Norway-specific. Azule Energy is obviously a single country entity in Angola. And Eni has got a, you know, obviously a broad upstream portfolio. So just wondering how or, you know, what conversations you've had with them around their appetite to go investing outside the UK through this vehicle? Thanks.
Yeah, sure. No, so I think I would say, the discussions with Eni have been very open and very full in terms of the future of the business, and there remains a lot of optionality in our current portfolio in the UK, but also potential, you know, to go overseas. But that, the focus at the moment is on the completion of the deal and then the integration of the businesses in the UK.
But we continue to look at options, and I think Azule is probably a good example where it was entirely Angola, but they announced in the last few weeks, they were going outside of Angola, and therefore, there's a BP-Eni, you know, satellite that is moving beyond. So I think beyond Angola, a single jurisdiction. So I mean, we see this as being optionality, right? That's the key thing. We are creating a stable platform of over 100,000 barrels a day of high-quality assets that gives optionality.
You know, the focus is on the UK, but the international options continue to be looked at, and they are, you know, screened and analyzed, and diligence done on them, and we'll invest in the right place at the right time.
Great. Thanks a lot. Cheers.
We have no further questions in the queue, so that concludes today's call. I will now hand back over to Iain Lewis for closing remarks.
Yeah, thank you, Alex. Thanks, everyone, for joining the call today. I think I would just close out by reiterating a couple of things, you know. So robust set of Q1 numbers in line with expectation. Really, the Captain delivery on the EOR Phase II sets us up for the future well, and the deal with Eni to bring the businesses together of Neptune UK, Eni UK and Ithaca moves forward in line with plan. Really excited about the future optionality, and the new executive team that the board have put together to deliver that. So, the key question that remains unanswered from our business perspective is what the UK fiscal framework will be.
But we have set ourselves up to be resilient in any outcome from that perspective, and we continue to work with the government and with the industry bodies to seek to get the right answer for the industry as we move forward. Very proud of what we do. The people that deliver this offshore, delivering oil and gas is very hard, and it's highly skilled, and the UK should be proud of the industry that they've built. And we certainly hope to be a long-term deliverer of value through high-quality assets for a long time to come. But thanks for your questions. Thanks for your interest today. Thank you, and we'll just close out the call there.
That concludes today's call. You may now disconnect your line.