Welcome to Vår Energi's conference call. For the first part of this call, all participants are in a listen-only mode. Afterwards, there'll be a question and answer session. To ask a question, please press five star on your telephone keypad. This call is being recorded. I'll now hand the call over to Ida. Please begin. Good morning, everyone. It is our pleasure to welcome you to this webcast in relation to Vår Energi's acquisition of Neptune Energy's Norwegian oil and gas assets and operations. I will hand the word over to our CEO, Torger Rød, and CFO, Stefano Pujatti, who will take you through the details of the transaction. After the presentation, we will open up for Q&A. Over to you, Torger. Thanks a lot, Ida, and good morning all, and what an exciting morning. Today, I have to say I'm really happy, and I'm very proud to announce that Vår Energi will acquire Neptune Energy Norge. This will strengthen our position as a leading E&P independent, and is fully aligned with our strategy as presented at our capital market update in February. This acquisition will support growth and value creation, really accelerating that. It brings ESG leadership, it has strong cash flow and attractive distribution capability. I like to say it's a value, cash, performance, and a capability accretive deal. It is really a perfect fit. Now, Stefano will take us through the details of the transaction. Please, Stefano. Thank you, Torger, and good morning, everyone. Today, two separate acquisitions with Neptune Energy Group were announced. Vår Energi will acquire Neptune Energy Norway, Norge, and Eni will purchase Neptune International business, excluding Norway and Germany. Important to mention that the two transactions are interconditional. Going more closely into our transaction, we will pay a cash consideration based on an agreed enterprise value of $2.275 billion. The transaction will be locked box from January 1st, 2023, and there will be customary completion adjustment for cash, debt, and working capital as at December 31st, 2022. We have a strong liquidity position and plan to finance the acquisition through cash at hand and available credit facilities. The acquisition will not affect our over the cycle leverage target of 1.3. Net debt on EBITDAX and our dividend policy remains firm and unchanged with respect to what has been communicated so far. I will come back with more details on this point later in the presentation. We have identified synergies of around $300 million. These are post-tax discounted, which will be realized over time. These are synergies tied to a robust development and exploration portfolio, improved asset utilization, and commercial optimization, on particular on the gas safe strategy. We expect completion during first quarter of 2024. Be aware that this depends on customary regulatory approvals, that any transaction of Neptune Energy international business is also approved. Torger, back to you. Thanks, Stefano, and today's transaction is an extension of the strategy that is the foundation of Vår Energi, and it is the continuation of more than 50 years of value creation on the NCS. We are accelerating our growth and value creation. Neptune Norway will strengthen our ability to deliver on all our strategic priorities. This include a robust and diversified portfolio and a high value growth, a well-balanced commodity mix, maintaining a material gas share as we deliver our development projects going forward, an even stronger partnership with Equinor, and it is also strengthening our organization. Let me elaborate on why we see this as the perfect fit. Neptune is bringing 12 producing assets, three operated, and they are all located in Vår Energi's strategic hub areas. Seven is operated by Equinor, and as you know, Vår Energi's Equinor is Vår Energi's largest NCS partner. We also see a significant 2P results of 265 million bbl per end 2022, and a daily production of 67,000 bbl per Q1 2023, of which 62% is gas. Also, we see an attractive commodity mix and a very strategic ownership in the Snøhvit LNG, amplifying our position in the Barents Sea area. Also, it is highly cash generative portfolio with low cost and limited near-term CapEx and low emissions. It comes with a team of about 300 employees, plus 80 consultants of highly dedicated oil and gas professionals, and about 140 of these are working offshore. Through this transaction, we are realizing our potential through growth and value creation. Make a big step also on the path to ESG leadership. We are strengthening cash flow generation and future dividend capacity. Let's have a look on some of the key pro forma metrics, you know, showing that this is really our performance accretive deal. A combined Q1 2023 production of 281,000 bbl per day, which is up 31% versus Vår Energi alone. Also, we see a 25% increase in the 2P reserve base on the end 2022 numbers, and a material increase in gas reserves. Also, we see a 33% reduction in carbon intensity on operated assets with the Gjøa field already electrified and more to come. A clear contribution to lower production cost per barrels as we move towards our end 2025 target. Combined, this acquisition adds scale, diversification, and longevity to our portfolio. Looking at the map, you will see that the acquired assets are complementary to Vår Energi's robust and diverse portfolio. We strengthen our position in all existing hub areas. Ownership in Snøhvit LNG and Melkøya amplify our leading position in the Barents Sea area. We get ownership in the Njord area with increased ownership in the Fenja license, as well as equity in the Njord asset. In the North Sea, we add operatorship of Gjøa and Duva, and increase our ownership in the Fram area, which we all know has a very high potential. You know, Equinor is very clear on the potential in this area. Going further south, Gudrun is close to the Balder area and shares gas export infrastructure with Sleipner, where we already are a partner. Here on this map, you can see it very clearly, the perfect fit to our hub strategies. The asset portfolio with increased operatorship and ownership is fully aligned with our hub strategy. We see synergies we can realize across an attractive and combined development and exploration portfolio. We will focus on asset optimization. This includes infill drilling, but also looking at our portfolio and to high grade and potentially divest some non-core assets. We further strengthen our cooperation with Equinor across a bigger portfolio, driving economy of scale even further. As you know, I like to say that you cannot talk about Vår Energi without talking about the Barents Sea and maybe West Rosa. We are really excited about our strengthened position in the Barents Sea. We get a 12% interest in the Snøhvit field, including the Melkøya LNG plant, and adds this to our prospective area. This is important for several reasons. One, it will add significant gas reserves with our production extending towards 2050. Further, as a part of this, we also become an owner in the only gas export infrastructure in the region. It is also highly complementary to our existing Barents Sea position in Goliat and Johan Castberg. It is an important strategic asset, bringing us into the LNG market and also solidifying our position as a leading, reliable provider of energy to Europe and the world markets. This is also a perfect fit when it comes to people. I'm really looking forward to, and I can't wait to welcoming some 300 new employees to Vår Energi once the transaction is completed and we consolidate into one company. We have built an organization that is dynamic and flexible, and we will integrate the employees from Neptune in the existing structure. We have complementary skills, the same values, and focus on health, safety, ESG, and diversity. This is what I call capability accretive. This will provide flexibility, capacity, and competence across all E&P disciplines, and some example givens: field development, drilling and well, subsurface, and exploration. We will actively apply best practice and knowledge. Again, we are very much looking forward to build on each other to develop Vår Energi for the future. As you know, safety is about people, and together with high ESG standard, it is a prerequisite for all we do. Vår Energi and Neptune Norway share the same focus on safety and ESG leadership through low carbon barrels and electrification. The leading ESG performance is supporting Vår Energi's path to ESG leadership also going forward. We have a shared focus on safety and the ambition of being the safest operator. Neptune Norway has low emissions intensity of 2.4 kilo per barrels, well below the industry average and NCS average, supporting our ambition of lowering scope one and two emissions by 50%, by end, by 2030. Several electrifications projects are underway. Operator Gjøa, as I already mentioned, is electrified from the very get-go, with Gudrun expected to be electrified by the end of this year. Both companies have very strong ESG credentials, as demonstrated in the newest Sustainalytics' rating, where both companies obtained medium risk and improved the score. Actually, placing us among the top oil and gas companies globally in this ranking. Both placed in the top 5 percentile out of 293 companies being the subject for ESG ranking. That means actually that both companies is better than top 12 of these 293 companies. Together, we will enhance our ambition of being the safest operator and leading on ESG. I will then pass the word back to Stefano to talk about our value creation framework. Please, Stefano. The transaction is consistent with our Vår Energi shareholder value creation framework that we have been showing since the IPO, and also our medium-term targets. Transaction is expected to be immediately accretive to earnings and CFFO per share, as well as free cash flow positive, given the efficient and highly cash generative assets. The portfolio will benefit from low-cost barrels with an OpEx per barrel that is around $9. Development projects, Njord, Fenja, and Bauge, recently started production. This is ensuring that there is limited near-term growth CapEx. Attractive early phase projects and exploration potential are also adding to future growth beyond 2025. All in all, this is supportive of further strengthening future dividend capacity. Vår Energi maintains a strong financial position. As we have shown in the Q1 investor presentation in April of this year, we have significant flexibility with $3.8 billion in available liquidity as of end of the first quarter. We will finance the transaction through available liquidity, including credit facility. We will not request shareholders equity contribution to be able to execute the transaction. We maintain the over the cycle leverage ratio target of net debt on EBITDA below 1.3. As you can see in the pro forma of Q1 2023 post-transaction, the leverage ratio is increasing very moderately by about 0.1. It goes from 0.3 to 0.4. As mentioned, we will continue to be in a robust financial position, underpinned by a solid debt financing structure with well-diversified maturities and currencies. Before handing over to Torger for his final remarks, we want to reiterate that there are no changes to our dividend policy following the transaction. This means that approximately 30% of the cash flow from operation after tax, dividend distribution, is expected for 2023. From 2024 onward, the company will maintain its attractive dividend policy of distributing in a range between 20%-30% of the cash flow from operations after tax. The transaction is expected to strengthen future dividend capacity post-closing, given the highly generative cash flow assets. Torger, the floor is yours for concluding remarks. Thanks, Stefano. To conclude, as you understands, we are thrilled and excited about this deal. All in all, Neptune Norway is a perfect fit for Vår Energi. We will strengthen our position as a leading E&P, independent on NCS. The people and assets from Neptune will support us in delivering our medium targets and our long-term ambitions, while maintaining, as Stefano said, a strong balance sheet and attractive distributions. It is a value accretive, a cash accretive, and a performance accretive deal. We feel that this is really a walk-the-talk deal. We are delivering on our equity story as communicated, as part of IPO and in the CMU. Thank you all for listening in, and now we opening up for questions. Thanks a lot. Thank you. If you do wish to ask a question, please press five star on your telephone keypad. To withdraw your question, you may now do so by pressing five star again. There will be a brief pause while questions are being registered. The first question will be from the line of James Hosie from Barclays. Please go ahead. Your line will now be unmuted. Hi, good morning, congratulations on the announcement. I guess just if we could start with just a question on the deal price. Obviously, we've gone through a period to agreeing a fair price for upstream assets, particularly involving European gas. It's been quite complicated by the high and volatile prices. I was wondering if you could quantify what you see as the break-even oil and gas prices for this transaction? Yeah, I, first and foremost, I would say that, you know, we think this is a very value accretive deal, as I mentioned. Also, you know, the competitive landscape in Norway, which is very, let's say, tough and hard, and here, you know, doing the way we have been doing it, we feel that we have been, let's say, able to acquire Neptune Norway to the international price and not the higher Norwegian price. We are very happy and pleased with reaching the deal and also seeing the value accretiveness and the cash accretiveness in this deal. I don't wanna go into the details of the various assumptions that we have been applying. Okay. Stefano, I'm sure Stefano is keen to add some flavor to this, so please, Stefano. Yes, James, you're right, there is a lot of volatility, but, you know, we are still, we still believe that the fundamentals in terms of the dynamics of the macro we have been seeing so far are still there. We still see gas prices, despite the volatility, this will be quite quite sustained at least until 2025, 2026, where then potentially more LNG will come to the market. Let me also say, this is a deal for the long term. Despite the weather and the volatility, we are here to invest for the long term. On, in terms of assumptions and breakeven and prices, we do not comment on the assumptions used, as you can expect. We believe that this is a value accretive deal, as Torger mentioned. Let me also maybe add a general comment. The price assumptions are revised peri-periodically, and they align quite well with the current market observations and the other recent and ongoing M&A transactions. Then I, of course, I listened to Stefano. I'm keen to add also, because this is really what they're bringing us solid commodity mix to Vår Energi. As Stefano said, you know, we strongly also see, let's say the, we have the, let's say, importance of secure and reliable energy to Europe. Here, of course, gas will have a very important role in the long run. Also, let's say, being part of the transition energy here. Very good fit also bringing the commodity mix going forward to a very good level. You know, we're talking about, you know, a 60/40 oil and gas mix, you know, by when we have the high value growth in place, you know, in 2025. Yeah, strengthening our commodity. Can we just kind of follow up then? Is it fair to say that, you know, the deal is gonna be free cash flow accretive in 2024, 2025, even at prices substantially below current forward curve? Is that a fair assumption to make? As Stefano explained, you know, we see this as a both a value accretive and a cash accretive deal. Also, you know, with Neptune, as explained by Stefano, is that, you know, they have a low CapEx in front of them and a solid production. Of course, this will give us a significant resilience in our cash flow generation going forward already from the closing of the deal. Okay. Thanks very much. I'll leave it there. Thank you, James. The next question will be from the line of Matthew Smith from Bank of America. Please go ahead. Your line now will be unmuted. Hey, good morning. Congratulations on the deal. A couple of questions from me, please, would be, appreciate you probably can't, you know, tell us what the cash outlay will be on closing, given the uncertainty over time. Would require free cash flow forecast. I was just wondering if you could clarify what the cash outlay would be if the deal were to have sort of closed on the 1st of Jan, 2023. Just to understand what the net cash flow and net debt position is of the business, please. I'll come back on my second question perhaps. Stefano, do you wanna reflect a little bit on Matthew's question? Yes, sure. Let me say, Matt, the point is, as you said, the transaction has an effect on first January 2023, and we have a lock box principle. The price that we have announced, $2.275 billion, is the enterprise value. There will be the customary adjustments that we were discussing about, and these are mainly, let me say that the three main items really are the taxes. These are the taxes related to 2022 profits, and also the other element is the cash, no? The third element that is going to, let's say, correct, this is the working capital. These three elements will adjust the starting point. From there on, as you can expect, having a lock box principle, all the cash flows that would be generated from 1st January 2023 until the time where we will go to completion, and we have said that we expect to go to completion first quarter of 2024. This means that potentially you might have 15 months or 12 months, whatever it will be, where the cash generation that will be done from 1st January 2023 will be, let's say, taken by the buyer, by us. We'll actually contribute to reduce the amount we were mentioning before. Sure, understood. Just following up then, sorry. Are you able to just confirm either way if there's any sort of significant net cash or net debt within the Norwegian business, sort of, you know, as of January 1st, 2023? I suppose that's just what I'm trying to get to the bottom of, if that's possible. Yeah, no, absolutely good question. We I can confirm we are not taking over any debt. The debt will be paid by the seller at completion. We're not acquiring from any sort of debt from the in the transaction. Yeah. Perfect. Okay, well, thanks, very clear. Then second question, if that's okay, following up then on a separate topic, would be, around the gas sales strategy. Just confirming whether this sort of transaction changes your overall sort of gas sales strategy that you've laid out? Just, I guess, how you sort of see synergies from bringing this into the portfolio? Yeah. No, thanks. No, we are not changing our gas sale strategy. I think this is one of the areas where we see significant potentials and synergies. Because, as you know, we have a very good gas sale strategies in Vår Energi. Of course, bringing the volumes in from Neptune will give us even more scale and even more, we'll say, running room and potentials to create value. We are going to apply our gas sale strategy, our gas sales agreements, our ability to use indexes and exit points to create value, and now with a bigger value, or sorry, bigger volume, which should also bring bigger value. We are really excited about that. We will utilize our gas sale strategies, our contracts, our tools, our knowhow and competence to create even more value with volumes we are getting as part of this deal. Stefano, something to add? Yes, and maybe just worth adding, the fact that as far as the LNG is concerned, Neptune has secured long-term offtake on, for the entitlement that they have on the Snøhvit. We plan to build on the market position that Neptune has developed over the years. Yeah, very good. All right, well, thanks very much. I'll pass it over. Thanks, guys. Thank you, Matthew. The next question will be from the line of Sasikanth Chilukuru from Morgan Stanley. Please go ahead. Your line will now be unmuted. Hi, good morning. Thanks for taking my questions. I had a couple of, please. The first one was on production. I see you have reiterated the greater than 350,000 bbl per day production target, production for by 2025. I was just wondering why that 350 figure was not necessarily moved higher. Just wanted to check your thoughts on that. Also, if you could comment on the production profile of Neptune Norway assets, that would be helpful as well. Yeah, I can start a bit there. Yes, we have said, and we are still saying, that we are going to produce more than 350,000 bbl by end, 2025. Of course, that will be, that will be the case. Of course, we will have a, we will have a higher production in 2025 and beyond, following this deal, than what we would have without. You know, we will, let's say, spend some more time to set a new, target and a new ambition, you know. Of course, it will be higher than what we have as of today. Also as we mentioned in the presentation, we might be looking into a portfolio upgrade, meaning that we are assessing to reduce or remove some non-core assets and these kind of things, which also might impact that. That is why we would like to take some more time to adjust our targets and our ambitions. Yes, it will be higher than about $350 going forward. That sounds great. I think that goes for the production profiles as well. You know, as we, you know, here we are bringing long-longevity assets, you know, where we have talked about Snøhvit already. You know, we have talked about Njord, which is already, let's say, upgraded and have a significant amount of tiebacks and prospects in the area. Same goes with Gjøa, you know, exciting discoveries done by Neptune the last couple of years in that area. Of course, we are also almost just as excited as Equinor when it comes to Fram, where we know are increasing our equities. You all know the story in that area when it comes to both production and early phase projects, and so on. Here we are, we are building the longevity and sustainability of production here. That is really, what I say, what makes us really pleased and happy and excited about this. was on capital allocation. You have highlighted there is limited near-term growth CapEx. I was just wondering if you could quantify the additional CapEx that Vår Energi will take on from 2024 onwards. Also, given that you are adding substantial debt at completion, has reducing this overall debt levels moved up the pecking order in terms of the company's use of cash proceeds? What has so far shown great propensity of returning excess cash flow generated as dividends. I was just wondering how we should think about this now Yeah, if I take extreme high, high level here, and then Stefano fills me in. You know, number one, there is no changes for 2023, you know, given the timing of this event. Two, as Stefano explained in the presentation, you know, we see that this is a cash accretive deal, meaning that it adds robustness and strength to our also our ability to distribute to our shareholders. That is, you know, also reflecting what we see of CapEx, you know, near term here, Stefano, something you will elaborate on in this regard. Yes. No, I think, of course, we will need to be a little bit more precise at a later stage on the figures. You know, as a rule of thumb, I think, the CapEx of Neptune are roughly 10% of the CapEx that we have in Vår Energi. As Torger is saying, it is not CapEx intensive, so that is a perfect fit where you have assets that are cash gen, cash generative, without adding on the CapEx part then. In terms of capital allocation, the capital allocation in general remains unchanged. We have the big investment. As you know, we will be quite in 2024, next year, we have the three main big projects coming on stream. We will be also adding cash generation. The dividend policy remains unchanged. I would say, being based on CFFO and being this deal CFFO accretive, then you might be expecting, even if we haven't changed the dividend policy, being a percentage of a higher CFFO, you should expect an accretive dividend. Yeah, so everything remains unchanged, and this is, I think, the beauty of the deal, where we actually are just strengthening our size, our production, our hub, and actually improving the, even improving the metrics. Yeah. Yeah. Yeah, just quickly, and a bit, you know, what we also shown on the presentation is that we are increasing the pro forma. You know, we are increasing the production by 31%, and as Stefano said, you know, then increasing the CapEx by 10%. Then you see the good balance here, and actually increasing the gap, and that is also, as Stefano said, is happening with the company. You know, we are reducing our CapEx because projects are getting completed, and that has been the case for Neptune already, since they completed our, you know, the main investments, actually this year when Fenja and Njord, and these projects were starting up. A very good combination in that as well, that we are increasing the production, increasing the cash generation, and then having a reduction in the CapEx expenditures. Great. very helpful. Thank you very much. Thank you, Sasikanth. The next question will be from the line of Teodor Sveen-Nilsen from SB1 Markets. Please go ahead, your line now will be unmuted. Thank you, good morning, Torger and Stefano, and congrats on accretive deal. Three questions from me. We all know that Neptune has been in play for quite a while. Just to wonder how your thoughts are around acquiring the entire Neptune portfolio and not only Neptune Norway? Second question is on synergies. Just to confirm the $300 million in the case, is that a post-tax number? Also on that, what more specifically can you say on what's in those $300 million? Final question is on gas and hedging. We know that your debt ratio will come slightly up after the deal, of course, since you only use debt in the deal. Should we assume that you maybe will hedge a slightly higher portion of gas going forward than what we've seen over the past few quarters, or should we just expect it to remain the same? Thanks. Thanks a lot, Teodor, both for your questions and for your congratulations. It's appreciated. I will start, and I guess here, and just to be clear, Teodor, you know, it is two deals. You know, we have agreed to acquire Neptune Norway, and, you know, we have negotiated our RBL and the conditions there. As also Stefano explained in the transaction summary, Eni has agreed through their negotiation and spot to acquire, let's say, what you call the rest of the world, the assets there. It is separate, and we are very, we'll say, happy and thrilled about acquiring the Neptune Norway deal. We really feel as you understood during the presentation, this is a topic on NCS. You know, really high quality, both asset wise, prospect-wise, and people-wise, organization-wise, so really happy and good about that. I'll elaborate a little bit on the synergies, as we also said in the presentation, you know, in the area of $300 million post-tax, you know, and maybe based. Really, you know, the buckets we are putting this in, as explained a bit already, you know, it's the portfolio and the developments. You know, this, the hub synergies, complementary locational assets, we see the prospects around some key areas like, just to give you some examples, Teodor, you know, you are in Njord, also building further on economy of scale. We see the effect of that. We have, you know, for instance, our collaboration with Equinor in the Barents and in the Balder/Ringhorne area. Of course, our plan is now to expand this further, going to assets, sharing assets, helicopter, bases, vessels. Of course, also, significant early phase projects and prospects, which might or will give us synergies compared to our own portfolio. Also related to exploration, I mentioned the solid track record of Neptune Norway, which is, of course. Coincide very well with the track record of Vår Energi, and we'll also adding both more prospects and ability to drive synergies there. Then also we have already talked to the gas sales strategy, additional volumes, increased flexibility, both when it comes to oil, you know, on the additional crude oil and the offtakes there. The gas, I talked to already, and Stefano mentioned the LNG. This is, there, and then on top of that, I know I took the main parts, Teodor, but also in addition to that comes, you know, a very complimentary portfolio with a strategic fit, you know, building even stronger position in the Barents, and also, let's say, combining the capability of two organizations there. That was top of my mind on number one and two. Do you know, do you want to add something on this, Stefano, and maybe reflect a bit on the question related to the hedging from Teodor? Yes, sure, Torger. Hi, Theodore. I can take the point on hedging. Let me say that Neptune has already some hedging in place, which I believe derives from the, let's say, requirements that they have in place with the RBL. I expect, because until we go to completion, we will still be acting as two independent companies, so I will also expect that until we go to completion, this will continue on quarterly basis, as they have done in the past. When we will go to completion, we will need to see what to do at that point in time, with the instruments or the hedging that are in place within the company at that point in time and take and take an evaluation. Let's say, let me add, going forward, we are increasing both the oil and the gas production. Overall, the expectation is that these additional quantities will be part of our hedging policy, or let me say, of our conservative hedging policies that Vår Energi has adopted so far. Okay, thank you. Just two follow-ups there. On Neptune, did you look into the rest of world portfolio for Neptune, and on synergies? As far as I understand on your answer, Torger, those $300 million includes both cost synergies and income synergies, right? Yeah, if I answer to the last one, I don't really, and I'm not totally certain if I understood the first question again, Teodor. You know, predominantly, well, yes, you know, the answer is yes to the second question. Predominantly we see a solid basis for increased income here, but of course, also driving costs down. I talked about the production cost per barrel, that, you know, here we will see our what we get in a very competitive portfolio, and we see increased, let's say, running room to work on our improvement program, economy of scale, to bring that even further down. And both for the current Vår Energi portfolio, but also for the combined Vår and Neptune portfolio. We are in a way pursuing both the income side and we see and the cost side, but so that we see a significant opportunity on the income side, given the gas, given the portfolio, given the prospects we have. The first was the total deal. Can you repeat? I heard you a little bit lousy there. I'm just curious of the, I'm just curious about the how you or if you consider to buy anything from Neptune that is outside Norway? Okay. Sorry. Yeah, no, to be clear, Vår Energi, we are a pure play E&P company, focusing on the Norwegian Continental Shelf. That is, low emission, high value barrels. Exactly. Understood. That's clear. Thank you. Thank you, Teodor. As a reminder, please press five star to ask a question. The next question will be from the line of John Olaisen from ABG. Please go ahead, your line will now be unmuted. Thanks for taking my question. Congrats Congrats with the deal. Can you talk a little bit about the exploration potential in the Neptune portfolio? For instance, how many wells will there be in 2023 and 2024? Maybe elaborate a little bit on the potential of these wells. Are there any high impact wells in the portfolio, for instance, please? Yeah, I will not be that concrete. Also to, just to be specific, on the 23, you know, as Stefano Pujatti explained, when it comes to the transaction summary, you know, we don't expect any closing before into the Q1 of 2024. For 23, I have no, let's say, no comments and not any big insights there. I will be a little bit generic now, because this is, of course, things that we will come back to when we have been also digesting it further. As I said, it's no hidden fact that Neptune have a solid track record. You know, they have been part of significant discoveries, you know, the Blasto, the Dugong, Fram Sør, but also in, when it comes to their own areas, close by or in the area of UR, which is Hamlet and I think it's Othello. Also there, you know, there is further ILX potential there. So that, they have prospects, but we have to look into it and digest it, what it means for the, what's the overall combined portfolio post 2024, John, and then also when it comes to the high risk, high rewards prospects as such. The exploration well is taking place in 2023, that's your upside, however, of course, it's coming. Yeah, exactly. You know, we have talked, you know, we have discussed this before, and you're right. You know, the 2023 is what 2023 is, so to speak, and as we have communicated before, which is also rather exciting. Maybe- Yeah, Stefano, sorry. Yeah, just to add, probably an important point, yes, it will be ours. Furthermore, let me add that there are no contingent structures in the deal. Related to discoveries, obtaining FIDs or earn-out, on a development in the macro scenarios. If, from 2023, upside will materialize, they are entirely for the benefit of the buyer. Exactly. Sometimes when we see M&A in the E&P space, there are significant transfer fees related to seismics. Is there any of this in this transaction, any significant transfer fees related to taking on the multi-client portfolio of Neptune? to my knowledge, John, it isn't. With all the knowledge, it's not only my knowledge. Okay. It's total knowledge. Yeah. Okay. Okay, okay. My final question is regarding dividend. You announced Q2 dividend of $270 million, which is flat compared to Q1. Is it possible to talk a little bit about the second half dividend? For instance, if oil and gas prices stay where they're now, should we expect $270 for Q3 and Q4 as well? Stefano- Last year, of course, you upgraded dividend during the year. I think. Yeah, in. Yeah, John, you know the drill a little bit. If I can talk a little bit, and Stefano can think, so to speak. You know, the drill a little bit here is that there won't be long, you know, there is, we have a, we have a, I think we have a, our update, the quarterly update, the 25th of July. The drill is, as we will then give our forecast for the next quarter, meaning that we will then walk into the second half of the year and then give our indication what that believes. At least- We haven't in a way prepared any update and any forecast on the dividend for Q3 or and so on at this stage or as of today. Stefano, I guess we can, you know, have confirmed our thoughts earlier. Stefano, anything? No, absolutely. Sorry, but you will need to wait for July. As Torger mentioned, let me say that in terms of dividends, 2023 will not be impacted, because as we said, we expect the transaction to go to completion in first quarter of 2024. 2023 we expect to be untouched by the transaction. We will let's say, elaborate more in the second quarter presentation. Summarize, John, what we said, last time we met, so to speak, during the quarter one update, is still valid. Okay. Thank you very much. Thank you. You're welcome. Thank you, John. As there are no more questions in this call, I'll now hand it over to Ida for any written questions. Thank you. The next question is from Vidar Lyngvær at Danske Bank. There are three questions. Could you comment on the tax position of Neptune Norway? The second one is, what is your funding cost of the acquisition? The third one is related to production profile post Q1, 2023. For example, year-end 2023 and year-end 2024 production. Thank you. I feel that these two first questions, at least, Stefano, is yours, huh? The tax position and the funding cost. Yes. Let me say in terms of tax, let me say that in terms of tax, the tax is expected to be, let's say, in the deal, the tax rate to 2022 profits will not be part of our, let's say, of our consideration, so will be on the seller. Even if, so even if there are adjustments in the course of the year, this will still be adjusted. Then, from 2023, let's say, as we are taking the cash flow, the tax component instead will be on Vår Energi. In terms of funding cost, I would say that the funding cost is the one that, you know, we have bonds out in the market. That is the debt structure of the company, I think is known. Yeah. I don't know, in terms of production, 2023, Torger? No, 2023, I think, you know, we have been clear on, and we will, of course, revert to that as part of the Q2 update as well. We have been in a way, even though I'm talking about Vår Energi here, because Neptune will not be part of us in 2023. Here we are maintaining our guidance as we have been said before. When it comes to beyond, you know, I've already mentioned that we'll come back to, we had a question from Morgan Stanley, I think it was, when it comes to our new ambition and our new targets. We'll come back to that. What we see, you know, we said in our press release that, you know, Neptune is producing, you know, 67,000 bbl-ish there, that is also what we expect, you know, going forward as, you know, as our incremental on Neptune. I think that is what we want to say at this stage. Thank you. Next, two questions from Daniel Stenslet at Arctic. In addition to the 265 million bbl in 2P, how many 2C resources will you acquire in the deal? Can you provide a breakdown of the $300 million of cost synergies? Thank you. Yeah, starting on the cost synergies, maybe, you know, I, we have given it in three buckets. I won't, at this stage, be more granular than that, and this is something that we are working to really, let's say, yeah, bring forward. We are confident in these synergies and see great opportunities in this deal. As I, and also then the breakdown is, as we mentioned, you know, a few times before today, I don't have to repeat that. Good. Next question is related to the Barents Sea. How do you see prospects for large-scale gas projects and infrastructure in the Barents Sea? Does this deal enhance your ability to make progress on that? Thank you. You know, we see great prosperity in, and opportunities in the Barents Sea. That, we have communicated that, you know, we communicated that on the CMU and also, you know, when we have the ability to talk about the Barents, we do that. This is not necessarily changing that view, but it is amplifying that view. Of course, it is really, you know, important for us that we know are part of all the important assets in the, and the current assets in the Barents, you know, with Goliat, Castberg, and Snøhvit. Snøhvit have proven, you know, historically wise, to be a very good area, you know, with a steady flow of both prospects and new projects, and adding lifetime and production at Snøhvit, and we expect that to be the case. When it comes to the prospects, you know, and there we have been talking about before, you know, we are really excited about the prospects and opportunities in the Barents. For me, it is really, let's say, tied to four, and now maybe we have to add five items. You know, one is the ILX opportunities around Goliat, which was, let's say, Countach was the discovery we did in February. Two, it is, of course, the ILX in the standard area of Johan Castberg. Three, it was the gas and the Lupa area, you know, the discovery we did just before Christmas, which is at what we call the Finnmark Plateau or the Finnmark Platform, which could be a new. That's a gas play and a new area where we get better, let's say, insight and understanding. The fourth is the Paeocene play further west, which we are going to have an exploration well called Venus, you know, to be spudded either late this year or early next year. We then have the get Snøhvit and Snøhvit area as well. We know there is several fields there with a nearby potential. Really exciting, both on the production side, operation side, and also on the prospect side, from our point of view. Thank you. A question for Stefano. Do you intend to issue bonds to enhance your liquidity position, as you are paying this with available cash? What sort of liquidity position would you like to maintain? Yeah, thank you for the question. Yes, let me say, in terms of capital structure, as we mentioned, no equity component required. Let's say within the available liquidity of the $3.8 billion that we mentioned and the cash flow generations that the company has, we can fully support the investments that we have in the plan, the dividend policy, and also this transaction. Now, what we are planning to out of the $3.8 billion at the end of Q1, $3 billion, where, let's say, RCF facilities. Now, what we will be looking into is really to have, and what we want to achieve, is to have well-diversified debt instrument with different maturities, different currencies, and also, being able to access a different pool of that investor. That is more, let's say, something that we will be looking into before we go to completion with the transaction. Overall, let me say, the liquidity available that we have, is providing plus the cash flow generations, is providing quite good headroom, to accommodate, all the needs, including the transaction. Thank you. Final two questions from Jon Raison at ABG. Neptune has been rumored to be for sale for a while. Was there a lot of competition for the acquisition? Secondly, are there any assets in the Neptune portfolio that is not a perfect fit and that could potentially be sold? Thank you. No, thanks for the question. When it comes to what are the competitive landscape, I think, you know, you should, that's more a question for Neptune than for us. You know, we are really happy that we are the one that has acquired Neptune now, and we are happy with the, with the, let's say, the terms of the transaction. That's, I think my, our answer on that topic. When it comes to the assets, you know, I said that earlier, you know, we will do an overall assessment here, you know, when it comes to potential non-core assets and, and then, let's say, potentially do our portfolio upgrade based on that. I don't want to go into the specifics at this stage of time, but as well, we will do an overall assessment, both when it comes to what we have in Vår Energi as of today, and what we will have in Vår Energi as of Q1 2024. Thank you very much. That concludes the Q&A. I will hand it over to the operator to conclude the call. Thank you. Thank you. As we have no more questions, I will now conclude the call. Thank you for participating.