Thank you. Thank you very much.

Good afternoon for everybody. Thank you for participating in this Zoom to review our financial results for Q1 2026.

As in Q1 we had around a month of basically closure of Leviathan platform, so that affected our income, EBITDA, and net profit for Q1, together with the Bulgarian [Chrome well?] , it's basically provide us with EBITDA of $97 million and a net profit of which is basically zero for this quarter.

Our agreement, the GSPA for the region, are Brent linked, delayed, and the price for this month is an average Brent price of the last three months. Basically what we are seeing baked forward for this year, taking into consideration the current Brent prices, practically taking $90 Brent until the end of the year, what we are seeing is an upside of $330 million in income vis-a-vis our initial forecast.

If we reduce what we lost at this 30 33 days of shutdown and we take into consideration what we are seeing already in prices in the market, so that would bring us to a better situation for this year, as I mentioned, $330 million upside for Leviathan project. Another great news for us is we finished the third gathering line for Leviathan, the third pipeline that flow gas from the field, from the reservoir to the platform.

Initially we estimate 1.4 BCF a day. Based on actual results, we are updating the production capability to 1.53 BCF a day, equivalent to 15.8 BCM.

This is a great upside that we didn't take into consideration yet in our forecast, not for this year and not for later years. The reason is that we want to finish as well the Ashdod-Ashkelon project, which is basically INGL project, that will increase the capacity of flow in the EMG pipeline.

We estimate that it will bring us to around 8, 8.5 BCM, and it probably can do more, and together with the 1.53, we will upgrade the result based on actual flow in EMG, and we will see it within a month. I will take you through that.

We are supposed to have gas in this pipeline in 26th of June, really in around a month time, and that should bring us to a place that we can upgrade our forecast for the later years and as well for the second half of 2026, on top of this $330 million upside. We will share with you as well where we are with Cyprus, Aphrodite, and with Han Asparuh in Bulgaria.

We announced, as you saw, a $60 million dividend. Again, we are distributing dividend in parallel to keep investment in second phase of Leviathan, Aphrodite, and you will see as well that we are maintaining a very low level of debt vis-a-vis the value of the assets.

Production summary: basically, if we compare 2000 Q1 2026 to 2025, we should be a little bit higher, but the shutdown of Leviathan brought us to around 1 BCM short vis-a-vis the Q1 2025. In terms of pricing, Q1 2026 was basically Brent prices of before the war, and we didn't enjoy the upside of the war in terms of Brent prices for this quarter, but we should see it in next quarter.

As we are sharing this graph in every quarter. What you see in blue is the realized blended price of NewMed vis-a-vis in orange the average Brent of each month.

What you can see basically is that we should enjoy the upside of the Brent in the next months this year and following obviously, and this will take us to revenues of $2.88 billion for Leviathan this year vis-a-vis 2.55 that we assumed earlier this year. This is the $330 million upside.

That basically with average price of $90 as we are basically seeing more today, but this analysis is based on a $90 Brent price average. On the operational side, as I mentioned, we finished the third gathering line of Leviathan.

We finished this project amazingly in basically $480 million vis-a-vis 570 that was budgeted, we have $90 million savings in basically Leviathan project. As I mentioned, we increased the capacity from the assumption named the capacity of 1.4 BCF a day to 1.53.

Great news baked forward for us, and I assume that in the next few months will upgrade our sales production according to that and taking into consideration the midstream capability. With respect to Phase 1B, the expansion of Leviathan, everything is as expected and even better.

We are on timetable, we are on the budget, and the project is running extremely well and we are very happy with that. As I mentioned, we have basically three projects of additional connectivity in the region.

The first one that should come by the end of June is this Ashdod-Ashkelon offshore pipeline, which INGL lead. This pipeline should increase the capacity of flow in EMG to around 850 8.5 BCF a day vis-a-vis 6.5 of today.

Out of it, Tamar have 200 million scuff a day and Leviathan all the rest. Any upside in this pipeline is going solely to Leviathan, and we are expecting some upside in flow.

We've been just last week in Egypt. We discussed with our Egyptian partner on reducing the pressure at the end of the EMG side in the Egyptian grid that will allow us to flow more than those numbers into the Egyptian market.

In parallel, we are continuing with the basically compression system in FAJR. That should bring us with additional 400 million scuff a day to flow to Egypt vis-a-vis the numbers of today, which is split between Leviathan and Tamar.

We are expecting that Leviathan capacity will be 725 in this pipeline, Jordan and Egypt. Happy to share that Nitzana pipeline going very, very well.

We are seeing already pipelines onshore being installed, and we are on budget, on timetable on this project. All those projects should bring Leviathan to an export capacity of 1.6 BCF a day, mainly to Egypt and Jordan.

On Aphrodite, I think that we had great news. We signed a few MOUs that basically establish the pillars to take FID of the project.

First thing, we signed an MOU for selling all the gas in the reservoir to the Egyptian market to EGAS. That MOU established basically flexibility to the project to basically fit the commitment of the Egyptian to the actual flow.

We established a Brent-related price, which is very important for us go forward. We also signed the principle of host government agreement with respect to the project that cover entry point, ability to lay the pipeline, taxation issues, etc., etc.

This is the host government agreement pillar. On top of that, we are with $105 million FEED underway and targeted to take investment decision in the project first half of 2027 and as agreed with the Cypriot government.

We are really enjoying a very good environment for this project right now with all what's going on. Everybody want to see more gas flowing into markets.

Bulgaria, Han Asparuh, as we have, on one hand, two dry wells, not commercial, but from the other hand, in each of those reservoir, we identified natural gas. It mean that there's a play there and now we are evaluating OMV, our operator, together with us, evaluating the result, understanding and analyzing what else we have in the license in terms of potential additional prospects.

One element there is that we saw lately in adjacent license named Khan Tervel, we saw Shell together with OMV and TPAO, the Turkish player, that had some discovery really border our license. They're running into a 3D very close to the license, we need to evaluate that as well and how it's affect us.

For the key financial metrics, I will ask Tzachi Habusha, our CFO, to take you through the numbers.

Hey everyone, and thank you Yossi. Thank you all.

Let's run through the financial statements for Q1. Revenues were approximately $164 million, and production was about 1.9 BCM compared with the revenues of $288 million and production of 2.9 BCM in the first quarter of last year.

Net profit was $0.1 million compared with the $160 million last year. The change in the net profit in the first quarter was mainly driven by four factors.

First, the lower natural gas production and lower net revenues from natural gas resulted from the 33-day shutdown of operation during the war with Iran. This reduced revenues by approximately $76 million.

A reduction in the average gas price reduced revenues by approximately $27 million. The third factor was an increase in cost and expenses mainly due to the one-time of amortization of drilling cost following the unsuccessful drilling campaign in Bulgaria, totaling $74 million.

The final factor was a higher net financial income of $40 million driven by the re-evaluation of Karish and Tanin royalties, together with the lower financing expenses following the full repayment of $600 million of Leviathan Bond series June 25. Despite the impact of the shutdown, our forecast indicates a positive overall impact of Leviathan's 2026 cash flow due to the higher forecast of the Brent price relative the published DCF which we publish in the beginning of this year.

Regarding the balance sheet and liquidity, after the repayment of Leviathan Bond series June 25 and before the repayment of the next series in June 27, we signed a new credit facilities with Bank Leumi amounting to $500 million. As of today, the total available credit facilities are $600 million.

In addition, during 2025, the board of directors approved an additional buyback program for Leviathan bonds for the 27 and 30 series. To date, we purchased approximately $84 million from these series.

Regarding the dividend, so as Yossi mentioned, similar to the previous quarter, a profit distribution of $60 million was approved by the board of director. I think Yossi this concludes the key financial highlights from the financial statements.

Thank you, Tzachi. Before we go to questions, just one thing on the dividend.

Again, in parallel to keep investing in Leviathan second phase, Aphrodite, even exploration with Chrome, we are keeping a very I would say stable level of debt and we distribute dividend. We announce a $60 million, which is again, I would say, our standard, and we would like to continue distribute dividends in parallel to those investment.

This is our plan, this is our strategy, and that what we would like to do. Now we will move to Q&A.

If you have any question, you can basically ask us in the Q&A box, and we try to answer. Yeah.

The first question with regards to the local market in Israel and negotiation that we have with local IPPs.

We'll explain. Basically, as we have long-term agreement with Jordan, we have long-term agreement with the Egyptian market.

If I'm taking the Egyptian deal, let's say that the main capacity for next decade is around almost 13 BCM. I'm taking the 3, 3.5 of Jordan.

We left with capacity to the Israeli market, which we committed the Israeli market, and based on that capacity we are negotiating. We have advanced discussion with few IPPs to sign a long-term agreement with them, mainly to cover the next decade.

That's beforehand we don't have a lot of capacity, and I assume that soon you will announce some of them.

Another question that we have is with regards to the third gathering line and our ability to use that gas in order to sell future sales to neighboring countries. Can you please talk about the use of the third gathering line capacity into the midstream in Egypt?

Basically all our models have been on assumption of 1.4 BCF a day. We didn't take into consideration the 1.53 even in the updated forecast of revenue for this year.

We didn't take that into consideration because it's not only the upstream that we need to solve, and it's almost 1.5 BCM additional that we have to sell on a yearly basis, we need to see that we have the midstream capability to sell it. Because we are a month before the flow in the Ashdod-Ashkelon pipeline, we think that Ashdod-Ashkelon pipeline can bring EMG to a flow of above 8.5 BCM, even 9 and more, and that will go solely to Leviathan and enable Leviathan to enjoy I would say more sales to Egypt.

It's obviously come with additional revenues to the project, and in parallel, we as well looking into additional market in the region. It's not a secret.

One of them is the Syrian market, which starting to gas. There's an ongoing discussion between the Israeli government and the Syrian government on a few agreements, as well with Lebanon, which could be a market as well.

That capacity can allow us to basically sell to those market gas in parallel to what we are selling to Egypt and Jordan. Being very very frank, we believe that every molecule that down the road will be able to produce will find a market, and that's post-EMG and FAJR compression system that I mentioned.

Question about myself. First, it's not my last quarter.

I assume that I will see you here August in the second quarter results. Yes, I'm very glad to bring NewMed to a beautiful place with this actual production.

Now it's 1.53 BCF a day capability. Second phase of Leviathan is really on almost automatic pilot.

In the next few weeks, I believe that we'll cover all the capacity of Leviathan many, many, many years to come from NewMed perspective. Aphrodite, we signed those agreements that they are the pillars to taking investment decision.

I'm leaving NewMed in the best situation that NewMed ever been, and I'm basically take my own path. We'll stay in the oil and gas business, probably in the global market.

We all hope that it's not indeed your last quarter.

We have more questions and superlatives with regards to Yossi. All will be answered in due time, I guess, all those assumptions.

We want to thank you all for joining us in this webinar, and please feel free to reach out if you have any additional questions. We'll see you all next quarter.

Thank you.

Thank you.

Thank you all. Thank you all.