Valeura Energy Inc. ($VLE)

Hi, everyone. Thanks for joining us for this Valeura Energy webcast, where we'll talk about our 2025 results that were released just yesterday. My name is Robin Martin. I'm Valeura's Vice President of Investor Relations and Communications. Joining me on this call, Sean Guest, our CEO; Yacine Ben-Meriem, our CFO; and Greg Kulawski, our COO. We are recording the event today, March 19, 2026, and we'll make a replay available later today through our website. In just a moment, I'm going to hand the call over to Greg to get us started with some slides and prepared remarks. That will be followed by Yacine and then Sean. And at the end of the call, we'll also take a Q&A session. [Operator Instructions] Before we get started, I'll just draw your attention to Slide 2, which is in the slide pack that you can see on your screen and as I said, is also available on the website. I'll ask that you pay in particular attention the cautionary language here around forward-looking information that we may use in the course of this call. So without further ado, I will hand over to Greg and ask that you unmute your microphone, Greg.

Thank you very much, Robin, and hello, everyone. Thank you for joining us. So let me first start with a summary of 2025, which I thought has been another year of strong delivery for us operationally with 23,200 barrels per day of average annual -- average daily production and another year of almost 200% reserves replacement. Now we've also made some significant strategic moves in '25, including taking FID on the redevelopment of the Wassana license but also a farm-in deal with PTTEP on 2 pieces of -- very large pieces of exploration acreage in the Gulf of Thailand, which are close to existing infrastructure and with a line of sight to developments following discoveries and including discoveries, which already exist on these blocks. Cash-wise, it was another year of strong cash generation, and we further built up our cash position. And that's really despite oil prices being lower in '25 than they have been in prior couple of years. Now I'll then just zoom in into a couple of these points in the next few minutes. So if you go to the next slide, Robin. Just on reserves. So in aggregate, we now have had over 200% reserves replacement over that window of 3 years. And in total, we've added almost double the reserves we've had initially despite having then produced most of the reserves in volume terms that were in the assets when we acquired them at the end of '22. Now in '25, the reserves replacement ratio was 192%. But I would highlight that this was evaluated at a price deck used at the year-end '25, which was significantly lower than that used at the year-end '24. And our estimate is that had we used the price deck the same as year-end '24, we would have been above 200% again and our overall reserves life index on a 2P basis would have been around 8 years, right? And of course, net asset value would also have been very significantly higher, right? And that's not even talking about the elevated prices that we've been seeing in the last couple of weeks. Now if we then move to the following slide. So about 10 months ago in May of '25, we took a final investment decision on a major redevelopment of the Wassana license, which really allows us to develop significant volumes, which we have confirmed now in the field, which cannot be really extracted using this old MOPU from which we're producing at the moment. And the project economics even at $60 Brent per barrel have been very strong, and that's why we have taken that decision, which has got something like 40% IRR, payback in less than 2 years, and it would take our unit OpEx on the field once this production is on stream to a range, which is comparable to what we see at Nong Yao, which is our best field currently. Now since we took that decision 10 months ago, execution of the project has been progressing incredibly well, touch wood. And as of now, we are around 56% complete on the project. So the construction of the facility, which you see on this picture is progressing significantly ahead of schedule. And what we are looking at is whether there might be an opportunity to also install this platform offshore earlier and thereby be able to accelerate first oil with earlier drilling. It remains to be confirmed but it's a good opportunity to be working on. What I would also flag here is that the design of Wassana central processing platform is prepared for future satellite tiebacks because we do have already significant confirmed volumes, both in the northern side of the license as well as in the southern area. And so whilst the main project is now being constructed, we are also progressing work to mature these satellite developments. And this includes designing further exploration and appraisal wells for the southern area of the Wassana license to confirm volumes for the potential satellite pilot. And in parallel, we are looking at engineering concepts for pilots to really try and leverage all of the capabilities that we have designed into the main platform and thereby minimize capital costs that would be involved in a satellite development. And so we're looking at things like really minimum scope wellhead platforms and some of those platforms could, for example, be even installed by a drilling rig. So really, really good progress so far on this. Now if we go to the next slide, Robin, please. In these 2 licenses, G1 and G3, quite a lot of progress has also been achieved since we have farmed in. And in particular, I would highlight 2 focus areas that we have identified where we are seeing a line of sight to near-term developments and bringing then those developments on stream. Now one of those areas is so-called Bussabong. That's sort of greenish area on the right-hand side of the picture sort of in the middle. And there, we are working with our partner, PTTEP, towards an FID of a gas development likely or expected really within 2026, which then would take us to first gas in 2028. Now this development may involve something like a couple of platforms but the volumes in this area and the application for the production license for that area already envisages additional daisy chains of further platforms. So very exciting gas development areas, and that's within a close vicinity of the major Bongkot gas field where we would tie these developments in. Now the other area where we are focusing on in the G3 license is so-called Nong Yao Northeast. So if you look at this map on the left-hand side of the slide, the green area is the existing Nong Yao field from which we are producing. And in direct vicinity of that field, you see this -- a number of these sort of blocks marked 1 to 6, which are significant prospects, each of which could potentially, if successful, warrant another satellite facility, which can then be rapidly connected to evacuate production through Nong Yao A. So again, work is going on in that area to mature these prospects for exploration and appraisal drilling and start working towards the development plan. Now then one more thing I would flag, which is, if we go to the next slide, Robin. Thank you. Now this is also related to the Nong Yao production system but a much more near-term opportunity where we've identified a way to add 4 additional slots on our Nong Yao A platform. And this is a relatively small low-cost budget of around $7 million, which gives us significant potential to add production and accelerate production within the Nong Yao field. And work is already progressing on engineering and then subsequent installation of these additional slots. We are targeting readiness in November of this year. And we can then drill new wells from these slots immediately in Q4 of this year or perhaps adjust timing as we are working through different optionalities and particularly looking at the current environment of prices and how we can capture additional value. Now even on a kind of standard set of, if you like, screening prices we have been using, Nong Yao wells are very attractive. I mean, it is our most valuable field. And these wells would typically have a payback less than 12 months. So very, very exciting near-term opportunity that we are progressing down. Now with that, I'll hand over to Yacine for some further comments.

Thank you, Greg. Greetings, everyone. I'm pleased to kind of walk you through 2 parts, one in terms of how the share price have evolved over the past couple of years but really focusing over the last year or year-to-date. And then thereafter, I'll walk you through the financials. I guess, as you can see from the share price here on your right-hand side, I mean I think it's the share price that we've presented to the wider market since we did the pivot to Asia. But I would like to focus maybe the audience attention as to what's happened over the last year-to-date really from January. You can see there, I think our share performance relative to our peer groups globally, but if we focus a little bit more on the TSX Market, position us effectively in the 98 percentile. But I think what we are most proud of, to be honest, is really the bulk of that growth or at least over 50% of that share price performance came prior to the events that happened in the Middle East or prior to the increase in oil prices. And I think that kind of like ties up well with what Craig was saying earlier on in terms of how delivering operationally in terms of production, cash flow and importantly, reserves kind of was reflected in -- at least kind of recognized by the market. And I think the latest share price uplift was really reflective of what we are in the oil market as a whole. So I mean, if you think about it, this is a company where we entered the year -- when we entered 2006 where the share price was around like the $8 to $9, and we're currently standing at around like $14.5. Again, a transformational year-to-date. But it's a reflection of really operationally, the delivery, operational safety and also ability to kind of like, again, showcase what these assets that we have in Thailand can deliver, both in terms of barrels, in terms of cash flow and also in terms of longevity. And importantly, as Craig was alluding to just a few minutes ago, the organic growth that is within the portfolio. Robin, maybe we can go to the next slide. So talking about the year 2005 and kind of tying up to the financial results, I'll probably start with the cash -- with our cash flow performance. So despite navigating a low price environment, which -- relative to 2024, Valeura continued to demonstrate real operational resilience this year. And I think the numbers reflect that. So if we turn to the cash flow bridge here on your screen, you can see that we've lifted around 47 million barrels during the year at an average price of $70, and we generated around $594 million. While the realized price was softer this year compared to our -- compared to 2004, I think the team has executed well on the cost side to enable us to protect the margins. So if you look at our adjusted OpEx that came in at around $223 million, these already include $33 million of leases, which from an operating cost perspective would not be included, which equates to around $26 per barrel, again, in line with what we had in 2024. And if you exclude the leases, we are talking about $22.4 per barrel. This figure is internally, we're quite pleased and actually very pleased with, and it reflects the lean and disciplined operating models we've been building and continue to optimize as we go. I think critically, considering the majority of these costs are fixed to a certain extent in nature, notwithstanding like in fuel that we use in our operations, it enables us to -- it means that like in an oil price rise, we don't see a proportional increase in our cost chasing those revenues. The incremental barrels flow through to cash at an exponentially high conversion rate, something that is quite relevant in the current environment, as you might imagine. Now going back to that cash bridge, after taking royalties and the adjusted OpEx, we've delivered an operating netback of around $300 million, which is around $35.2 per barrel. Again, a strong conversion from wellhead all the way to the cash. Now moving down to the bridge after SG&A and the tax payment, which is, again, we are still benefiting from the tax losses that we have. As a reminder for everyone, we have -- post the combination of our -- some of our subsidiaries, we've benefited from around quite substantial amount of tax losses. As of the year-end, these tax losses stands at around $282 million or $283 million, which is, again, we see like strong benefits, especially at 50% taxes in terms of like accelerating those cash injections into our cash flows. And with that, we arrived at an adjusted cash flow from operation of around a very healthy $247 million. It is a robust result in the context of the price environment we were operating in. And again, it reflects the quality and low-cost nature of our asset base, as Craig kind of alluded to earlier on. Now moving on to the balance sheet. Sorry, Robin, do you mind moving on to the next slide, please? Robin? Yes. Thank you. We've entered 2025 with a cash balance of $259 million, and we are certainly pleased to report that we've closed the year with a cash balance of $306 million. It's a meaningful strengthening of the balance sheet. And again, we remain debt-free, and Sean will talk a little bit more about like in terms of our capital allocation, how we think about that cash. So let me walk you through quickly in terms of the key moving parts there. Now with the cash -- with the adjusted cash flow from operation of around $247 million, we partially deployed that against a CapEx of $189 million. Worth highlighting that $44 million of that CapEx was dedicated to our growth project, which is the Wassana redevelopment that Craig was talking about earlier on, which is a key strategic investment for us that ultimately will position us well for future production growth and again, margin expansion there. We've also incurred some exploration expenses, and we've benefited as well from income for $11 million related to our interest on the cash that we have and also revenue from the Rossukon, the royalty that we get from Rossukon. Now with that and some working capital movements, we ended up with a cash balance prior to paying prior -- 2024 taxes of around $276 million. This year, we've also paid, as I said, the 2024 taxes, which were due to be paid in 2025 of around $55 million. Bulk of it is really just the SRB obligations that we had. And as you can see, if we add the deposit that we've put for the G1, G3 acquisitions and also like the other income here, as you can see in the table, which related to the NCIB and also other anti-dilution that we took, we ended up with around $306 million. Overall, again, it's the balance sheet, it's the strengthening of the balance sheet is about like being -- allowing us to have a resilient balance sheet that allows us to not just take advantage of opportunities within the portfolio but also to look for growth and ultimately as well, see how best to kind of like deploy this capital through our capital policy. And I guess with that, I'll just kind of hand on to Sean.

Thanks, Yacine. So Yacine and Greg have spoken really about the strength of our business and how this business is working extremely well at that $65 a barrel realm. We've got the strong margins. We're generating free cash flow. We have the ability to reinvest. We can support growth in Thailand. We've really designed this business to work extremely well at $65 a barrel and even to be protected going down well below that. Now 12 months ago, we had an oil price shock post liberation day. We saw oil prices fall significantly. And yet just a month after that, we had the confidence in our business to make the biggest investment decision in the history of Valeura, the Wassana redevelopment. Our business works really well at those pricing levels in the mid-60s. Now we're experiencing another oil price shock, a period of very high oil prices driven again by global geopolitics. And what I really want you to come away from this call with today is to understand what these periods of high cash flow mean for Valeura and how it really accelerates that extra cash flow onto our balance sheet. Now I know all oil and gas companies benefit from the high prices. You can see it in the share prices as everyone moves. But globally, I believe that we at Valeura have some of the best exposure to these high prices. And looking at some of the key factors, we are a tax royalty system. If you compare that to a production sharing contract or other areas like North Sea, possibly with high government take, we have full exposure to the upside in prices. And the other point is our royalties and taxes are contractual and are protected under that contract. They're not going to change. More significantly, if you recall from our corporate restructuring about 18 months ago, we have these tax shields. We will not pay taxes on 3 of the 4 assets we're producing from. Now if this period of continued high prices extends for a lengthy period, we'll eat through those tax losses very quickly. But that's a brilliant outcome. We're accelerating all of that cash onto our balance sheet. And lastly, the really important thing I want to point out is pricing. You know we have direct exposure to international pricing, and we've always guided the market for simplicity to look at Brent. It's a well-known benchmark. However, all of our sales are linked to Dubai pricing. Now historically, as you see on the chart in front of you, Dubai has been at a slight discount to Brent $1 or $2, '25, it was a little bit above. But generally, the premiums we've had in our fields has more than offset that, and that's yielded a premium to Brent. But we now need to look at the details. Everyone is talking about what's happening to Brent right now. Brent is in the 90s, Brent over $100, Brent above $110. But Brent is largely an Atlantic Basin metric. The event we're dealing with right now is directly hitting the Middle East and Asia. And for the past week or so, Dubai has been trading at a USD 40 to USD 50 a barrel premium to Brent. Now just to reemphasize that again, in the past few days, the pricing that we're hanging off of Dubai has been $150 to $160 a barrel. That is the reference for Thai oil sales. Then on top of that, you need to add our premium we're still getting on our fields. And currently, we're seeing that we're actually getting higher premiums than normal as buyers out there are extremely focused on security of supply and accessing those barrels. So just looking at that, you can see and you can look at the numbers, as you've seen as presented, how our business works, what are our cash flows at the lower prices. And then with these numbers, it's very quick to kind of work out the boost in cash flow that Valeura will yield from these pricing data, and it's stunning. Now I'll just recognize again, this business works at $65. These are real wins with high prices, and this is not new to us. I remind you that back in 2022, we did the deal to buy 3 of these fields from Mubadala, and that purchase price was $10 million. Everyone believes that the low price on that deal was due to the low reserve life index and the high abandonment cost. It was not. And in fact, our 3 years of operating have proved that that's not the case as we've really solved both of those issues. Why we were able to achieve such a low price was because of the high prices that occurred in '22 due to the Ukraine war. The original offer Valeura made had a January 1, '22 effective date. These assets due to the high price with the war premium spun so much free cash flow during that period that Mubadala in the end was willing to actually move the effective date forward 8 months to sweep that cash windfall back to the head office. That was in effect the acquisition price. It's seen how much these assets can flow cash in these periods. right? Now I do caution you, we are in a period of high volatility and rapid changes. You can't look at the $150 and $160 a barrel price and use it to model the NAV of the company over the next 10 years or even 2 years. But I emphasize again, we've positioned this company to cash flow very well at $65 and each one of these price increases is just a great win and a cash windfall for us. So whether it lasts a month, highly unlikely or a year, there will be immediate cash flow benefits to Valeura. So Robin, just to the next slide. Now at that point, I just want to emphasize that we maintain the same capital allocation priorities as we've been sharing with you for several years. Organic investment, M&A growth and shareholder returns. Now Greg took you through a number of -- highlighted some of the organic opportunities, and we have a number of them. Wassana redevelopment is going very well, and we are now really planning to take our first gas FIDs on the G3 block this year. The cash we have and this cash flow has given us full confidence in the FID we took on Wassana and the FID we expect to take in the coming months. M&A, we've told you that we have now built the balance sheet that allows us to make very significant acquisitions. Our Q4 cash last year was between $250 million, $300 million, and we have no debt. So now I will caution though that while we're currently actively engaged in several significant opportunities, you must recognize that with these high prices and this volatility, it's expected to slow down M&A announcements as sellers look to revisit their expectation. It doesn't stop you on the ability to do corporate deals as kind of target companies can move their value in parallel with Valeura but asset deals will be challenged for a little while here. And then finally, shareholder returns. We emphasize that the focus of the company is really growth. But if the prices continue to be high like we're seeing, we've already built up the balance sheet that we need for M&A. So we're going to have to look at this area and revisit this with the Board as we move forward as to whether there would be some level of shareholder returns. So just coming to the concluding remarks. Look, I emphasize first that the last time we presented a quarterly result to you, we're at a significantly lower price, as Yacine noted. We've had great share price appreciation here. We've gone through CAD 100 billion market cap. Now that we see we're well over USD 1 billion market cap. But additionally, what I want to point out on the value side is what we still need to bring into the business is to quantify the value of the G1 and the G3 deal that we did with PTTEP. As Greg noted, this is progressing extremely well, the work on this block, and we're really highly appreciative of the quality of the work that PTTEP is presenting. And we hope to be able to announce the closure of this deal in Q2 and then announce the resource volumes shortly thereafter. Additionally, we're still focused on the timing of FID for these gas developments in Q3. And I think getting that information out into the market, getting everyone to be able to quantify the value that we're seeing in these blocks, G1 and G3 is going to be extremely important. So again, it's been an exciting year in '25 and already 2026 is showing a lot of excitement as well. So thank you all for your continued support and for your time here today.

Thanks very much, guys. We will move on to the Q&A session. At this point. We've got a couple of typed questions, and I see a couple of individuals raising their hand to ask a live question first. Yes. So we'll go to that first. I'm going to unmute your microphone, Stephane, just give me a moment. There you go, Stephane, you should be able to unumute your mic and ask your question live.

I've got 2, and that's really going back to the great picture of Brent versus Dubai shown. So could you explain, given the timing of the liftings, if Valeura has already started capturing that oil price move? Or if not, when does that start? Is it Q2 event, will be a Q1 event? That's my first question. And then perhaps for Yacine, how would you see SRB in the current environment at, say, different pricing?

Certainly. Thank you, Stephane. Robin, I'll just take both maybe. So Stephane, maybe going back to your first question in terms of the current price environment and how does it impact our revenue. So let me maybe just clarify or at least simplify how the lifting and the pricing works on our end. Effectively, the way price -- the way our contract are signed for our lifting is that the seller, what they pay is effectively the average price during the month where lifting occur, right? So the current environment -- in the current month, let's say, like for March, we will see how many lifting we have done during this month. And then it's the average of the month that get reflected into the invoice that we send to the buyers. Now as it happens for this month, our liftings are on the tail end of the month. It just operationally, that's how it works. So we do see potential for it to fall in March or potentially might slip into early April 2026. It's still too early for us to say this, Stephane, because the nomination hasn't occurred yet. Usually, this nomination occurs like 10 days before the date itself. So that's in terms of the lifting occurs. Now in terms of the SRB, obviously, SRB by its nature is has quite a significant beta to the oil price. So the higher the oil price, the higher the SRB. So yes, so I do expect that in the current environment, you will probably see an elevated SRB compared to what we had last year. And it's quite a big difference between the 2 sides. But I mean, if I have to give you a number, let's say, like -- again, let's use the number that Sean was talking about in terms of like $150 Dubai buy. The SRB then will shift quite significantly. We're talking about potentially a factor of around like 6 or 7x. So that's the kind of like compared to like, for example, a price of $65 or $60 realized price.

Thanks for that, Stephane. David Round, we're going to go to you next. Let me just allow your microphone. There you should be able to unmute now.

Yes. I think I've done it. A couple of questions from me, please. I think the first one, just I think the last time we spoke, we were talking about sort of weakening prices and sort of a softening services market and potential savings at Wassana, I think specifically around drilling. I mean, is that at risk of reversing now? And can you just remind us what costs you have locked in, both on Wassana but also just interested in sort of the ongoing drilling program, the contract you've got there, when it expires and sort of any possibility of extending on similar terms? And the second question is, can you just please remind us how the gas price at G1 and G3 is derived? Is it benchmarked to international prices? Or is it just calculated on a project rate of return type basis?

Greg, do you want to handle the first question really on the price -- the service costs?

Yes. Let me do that. So David, first of all, on the Wassana project, I mean, we've advertised an overall cost for the facility and installation of the facilities of $120 million. And at the time we took FID, about 80% of these costs were fixed, right? And so we are now well progressed on track. We've not really seen any significant variations. So I am very confident that we are actually going to come in on or below that budget for the facility side, right? So that's the first component. On drilling, indeed, we -- at the time we took FID, there was more scope for those costs to move up or down. As we see now the market evolving for services, particularly drilling rig, I expect actually a reduction compared to the rates we are committed currently to, right? So we are actually in an active process of tendering for a drilling rig. Yes, we're starting to see some price indications and those price indications are going down relative to current contract. Now as you may recall, our base case business plan envisages 8 months of drilling, so until the end of August. And we've left deliberately optionality for the remaining 4 months of the year, right? Now as we are now firming up towards a contract award decision on a drilling rig contract. We are now looking at ways to fill that option potentially with significantly value-adding activities. And that could be, as I indicated, we're looking -- could we accelerate Wassana redevelopment subject really to the installation being able to be implemented earlier. We have Nong Yao slots that we are going to construct that would enable us to start drilling in November and add additional wells with some incremental production already likely in '26 and then even more in '27, right? So yes, basically, opportunity or pretty firm expectation of drilling costs coming down on a new contract beyond August and a better to fill activity and value in those months that we haven't yet locked in currently from September onwards. I hope that answers your question. Maybe, Sean, if you want -- something you want to add.

Yacine, do you want to talk about maybe the gas price and how it's done?

Certainly. David, so as far as Thailand is concerned, all the gas prices are effectively linked to international benchmarks. Now that could be like Dubai or fuel oil but they tend to be benchmarked against international crudes. So you don't have like a fixed return, like, for example, what you would see in other countries. or like a fixed price, it tend to be more linked to international benchmarks. So you do have that exposure to higher oil prices as well. I think embedded within that formula that they use is also like -- it's almost like an S-curve that what you often see in the LNG market because that's really what you're competing against fundamentally within Thailand. You're competing against the LNG imports, which is significant. So you do have a protection on the downside as well but your ultimate upside can also be like tempered down to a certain extent.

Thanks for that. While we're talking about gas in Thailand, let's move to talking about the PTTEP farm-in. And question here is, what are the potential CapEx requirements you would see for gas development at the Bussabong area?

Maybe I'll take that one just to keep the variety of people going. Look, currently, right now, we're looking at multiple platforms and FID on multiple platforms. We expect the FID to be on initially 2 gas platforms installed in that sort of realm. So net to us, to give you some idea, is probably on the order for a rough number of about $50 million, right? So just to keep that sort of range in mind. Now again, we're still waiting for cost, final numbers to come through. But to give you an idea, this isn't that it's another -- it's not a $200 million project for 2 platforms. These are gas platforms. They're much cheaper. These are gas wells, and we know that the gas wells in the Gulf of Thailand, we expect them to be drilled each development well about $1.5 million to $2 million, extremely cheap. This is kind of PTTEP's bread and butter is these platforms and drilling these type of wells. So it gives you a bit of an idea for 2 platforms, probably spend starting in '27 and then production coming on in later '28.

Okay. And that brings up another question. What sort of production would you expect from a platform?

Yes, I'm trying to remember the exact numbers. Greg, can you get the numbers that we're using as a rough figure? And again, we don't have the data yet for all of these all worked up. We're still doing the FID work.

I mean as a rough number, we talked about something in the range of 30 million scfs per day per platform, right? So 2 of them would give you, say, 60 million scfs per day, so about 10,000 barrels per day oil equivalent in that range, again, with caveat that it's subject to FID and final numbers, et cetera.

Yes. And just for clarity, Greg's numbers were gross. The cost I gave you is net.

Correct. Yes. So you apply 40% to that.

Yes.

Very good. Okay. We'll move to another live question. Jamie Somerville, I've just enabled your microphone. You should be able to unmute now. Jamie? Okay. Not to worry, we'll try you again in a moment. In the meantime, let's change geographies. What's happening in Turkey is the question? And what are transatlantic's plans for next steps on the deep tight gas play?

Yes. This is one I should probably take as one of the few executive members who actually was around during the Turkey period. So look, I think we talked that we were ready to -- in transatlantic, we're looking to take this well on to a long-term test. That's kind of gone slower as they've done the work on the well and the facility to set this up for a long-term test but they're getting to the point now that we expect fairly soon to start it. I think the good news is they're really looking for the design of this test and the testing period that it can be long term. We're not talking about just testing for a few weeks here. They're looking at taking this thing out months and are trying to achieve a testing cost that can be really offset really by the production that you'll get, right? So things are going ahead there on the testing. And along that lines as well, we're now in discussions with the government as well with transatlantic on the next moves. But I expect we'll have some more information on that as we go through the next few months here.

Okay. And are you able to provide any clarity or any expectations on what gas pricing would look like in Turkey?

Look, we know that the gas price over the past few years has been very healthy at kind of USD 10 plus. I expect now that it's significantly above that. But again, we really don't make our decisions based on these spot prices. We're looking at Turkey has had a very healthy gas price for the past few years. So it's a good environment.

Good. Okay. A couple of price-related questions here. Number one, with the prices where they are right now, are you tempted to add any hedges given the outlook?

Sorry, I just realized I was still on mute. Maybe I'll take this one. I mean, obviously, we do look at hedges in terms of like what can be done there. Look, fundamentally, we do try to protect the downside. This is -- I mean, oil and gas is a cyclical industry. Prices goes up, they do go down. We do have quite a resilient -- operationally, we do have quite a resilient portfolio. But is there any way for us to actually strengthen that? We certainly look at it. I mean we've just -- and we do that honestly, especially now with what's happening in the market, we've been kind of like canvassing the market literally on twice a day. And what I can say right now is that despite the fact that we're seeing very high oil prices, put prices, which is really the instrument we'd like to use because we'd like to retain the upside. They seem to be a little bit too still elevated, but it's something that we certainly keep an eye on.

Okay. On the other side of the price sort of discussion, the question here is, given the very high Dubai prices, is there any risk that Thailand might look to start setting domestic sales closer to the Brent benchmark?

Maybe I'll take this one as well. Look, this is not the first time that we've seen an elevated oil price. There have been other occasions where oil price really kind of like went through the roof. And that has never changed. The way the contracts have changed have always been set against the Dubai, which is the natural crude for this part of the world. So I don't see this changing. There's always a mechanism for buyers and sellers to agree a fair price between the 2 sides. And that's what you have the premium or the discount potentially can come in. But so far, we haven't. As Sean was saying earlier on, over the past couple of weeks, we did issue a new tender for like April and May down the road. And all I can say is that like these are the best premium that we've had as a company. And again, they were benchmarked against Dubai. So no, we don't.

Okay. Great. Yacine, I'm going to ask you another question, and I'm going to leave it with you for a minute to do the math in the background. We'll move on to another question after that but -- because you'll want to calculate this one. I think it will be a fun thought experiment here. Let's say we get $150 Dubai prices over the next couple of years, what additional cash would you expect to get? So let's just park that for a moment. I'll let you crunch those numbers in the background, [ not to be ]on the spot. But in the meantime, a couple of questions around capital allocation. First one is when we look at your M&A landscape in Southeast Asia in the Asia Pacific region, what proportion of the transactions you're looking at would be corporate transactions versus asset?

Yes. I think at a much lower proportion are on the corporate level. It's something we've always kept track of across a number of different players in this region as we've looked at it and how they behaved. But it's on the order of 75% asset, 25% corporate.

Okay. And also along the lines of M&A, if you find that getting M&A transactions across the line is delayed and you continue getting windfall revenues, will you look to shareholder returns? And if so, is your preference for things like share buybacks? Or are there other formats of shareholder returns that you would consider in that sort of environment?

Yes. So that was the point I was making is, yes, that's something we would discuss with the Board and look to as to shareholder returns. We would look to the best way to kind of do it at the time. We've looked at a number of different things as to whether it's dividends, special dividends, Dutch auctions on share buybacks or straight share buybacks. But depending on how much surplus cash you bring in, a normal buyback is just too slow a process to actually go through that, right? So all those things are kind of on the table but it's something that we would investigate as we kind of go through the number of months here. What's going on with the oil price, what's going on with the cash flow, where a number of these deals that we're actually involved in, are they progressing or not?

Great. Okay. Let's turn back to you Yacine then that question, which I'll just voice again. So you had $150 Dubai over the next couple of years, what sort of additional cash would you expect?

Yes. quite a healthy cash flow, as you might imagine. So effectively, we are talking around like almost our current EV. That's the kind of numbers we have.

So just for clarity.

So it's anything between $700 million, I think around that.

Okay. $700 million.

Short of our current EV considering our share price, our market cap currently is $1.1 billion. So it's around $700 million.

Okay. Very good. Thanks for that. We don't have any other live question requests at this time. [Operator Instructions] with nothing else showing up here, maybe we'll leave it there. And I'll just remind you that we're available any time to take questions as well. Contact information is on the website with contacts available in Asia and in North America. So feel free to reach out any time. So with that, I'll hand over to you, Sean, just to wrap up.

Look, I'll just say, again, reiterate, thank you very much for everyone's support and kind of staying with us through this. It's been an extremely exciting ride. Obviously, the times we're in right now are very challenging for people on all levels. But corporately, it's obviously created a bit of a windfall for us, and we'll just take advantage of that for the time being and look at how we can add more value to shareholders. So thank you very much for joining us.

Thanks, everyone. That concludes the call.