Financial Data and Key Metrics Changes - In 2025, production averaged 28,233 boepd, exceeding the upper end of guidance despite lower oil prices, which averaged $58.1 per boe compared to $65.6 per boe in 2024 [4][5][6] - Adjusted EBITDA for the full year reached $277 million, with fourth quarter Adjusted EBITDA at $46 million, reflecting lower realized prices and non-recurring items [6][7] - Operating costs averaged $13.4 per bbl for the year, with G&A at $4.8 per bbl, both within guidance [6][7] Business Line Data and Key Metrics Changes - In Colombia, production stabilization was achieved earlier than anticipated, with contributions from Llanos 34 and successful drilling in Llanos 123 [5][8] - Argentina began contributing production ahead of plan, with fourth quarter volumes averaging 28,351 boepd, reflecting new production from Vaca Muerta assets [5][6] - The polymer injection recovery project in Llanos 34 was launched, showing solid results and expected to enhance recovery factors [6][61] Market Data and Key Metrics Changes - The company reported a strong balance sheet with over $100 million in cash and a net leverage of 1.6 times, with no material debt maturities until 2027 [7][9] - Over 84% of 2026 production is hedged through three-way collars, providing cash flow protection [7] Company Strategy and Development Direction - The company is focused on reinforcing its Colombian foundation while establishing a new unconventional growth platform in Argentina [8][9] - The acquisition of Frontera Energy's Colombian upstream assets is expected to double the reserve base and significantly increase production, targeting over 90,000 boepd by 2028 [9][10] - The strategy emphasizes protecting and maximizing cash-generating assets in Colombia while scaling operations in Argentina [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance and the company's ability to navigate a lower price environment while maintaining financial discipline [6][10] - The board declared a quarterly dividend of $0.03 per share, with plans to reassess shareholder distributions following the normalization of free cash flow [10][11] - The company remains committed to strong governance and disciplined capital allocation, particularly in light of competitive offers for Frontera's assets [11][12] Other Important Information - The company achieved $32 million in structural cash savings, setting a lower cost base expected to generate annualized savings of approximately $45 million in 2026 and beyond [7] - The board is reviewing nominations related to governance and remains focused on executing the company's strategy [11] Q&A Session Summary Question: What is the expected cost development for the year? - Management indicated that lifting costs are expected to be in the $13-$15 per bbl range for 2026, with G&A around $4 per bbl [16][24] Question: How is the Frontera acquisition situation evolving? - Management confirmed ongoing discussions with Frontera and highlighted the importance of the deal for long-term value creation [29][30] Question: What is the status of the polymer injection project? - The polymer injection project is progressing well, with expectations for increased recovery factors and additional wells to be incorporated [60][61] Question: What is the current production status in Argentina? - Management reported that production in Argentina is on track, with drilling activities set to commence soon in Vaca Muerta [41][42]

Financial Data and Key Metrics Changes - In 2025, production averaged 28,233 barrels of oil equivalent per day, exceeding guidance despite lower oil prices, with fourth quarter volumes averaging 28,351 barrels of oil equivalent per day [4][5] - Adjusted EBITDA for the full year reached $277 million, with fourth quarter Adjusted EBITDA at $46 million, reflecting lower realized prices and non-recurring items [5][6] - Operating costs averaged $13.4 per barrel for the year, with G&A at $4.8 per barrel, both within guidance [6][7] Business Line Data and Key Metrics Changes - In Colombia, production stabilization was achieved earlier than anticipated, supported by resilient base production in Llanos 34 and successful drilling in Llanos 123 [5] - Argentina's production began contributing ahead of plan, with assets integrated safely into operations [5] - The polymer injection recovery project in Llanos 34 delivered solid results, with plans to expand the project further [6][60] Market Data and Key Metrics Changes - Realized prices averaged $58.1 per BOE in 2025, down from $65.6 per BOE in 2024, reflecting a materially lower oil price environment [5] - Over 84% of 2026 production is hedged through three-way collars, ensuring cash flow protection [7][8] Company Strategy and Development Direction - The company is focused on protecting and maximizing cash-generating assets in Colombia while scaling a transformational unconventional platform in Argentina [10][11] - A significant acquisition of Frontera Energy's Colombian upstream assets is expected to double the reserve base and significantly expand production capacity [9][10] - The company targets production of 44,000-46,000 BOE per day by 2028, with Adjusted EBITDA of approximately $490 million-$520 million [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational platform's resilience and disciplined capital allocation, despite challenges from lower oil prices [6][10] - The board remains committed to strong governance and disciplined capital allocation, with a focus on long-term value creation [12][13] - The company is optimistic about the integration of Frontera's assets and the potential for increased production and cash flow durability [10][11] Other Important Information - The company achieved $32 million in structural cash savings, setting a lower cost base expected to generate annualized savings of approximately $45 million in 2026 and beyond [7] - The board declared a quarterly dividend of $0.03 per share, with plans to reassess shareholder distributions following the normalization of free cash flow [11] Q&A Session Summary Question: What is the expected cost development for the year? - Management indicated that lifting costs are expected to be in the $13-$15 per barrel range for 2026, with G&A around $4 per barrel [25][26] Question: How is the Frontera acquisition situation evolving? - Management confirmed that they are progressing with Frontera and have received necessary approvals, emphasizing the importance of creating long-term value for shareholders [30][33] Question: What is the status of the polymer injection project? - The polymer injection project is progressing well, with plans to incorporate additional wells and expectations of improved recovery factors [60][63] Question: What is the current production status in Argentina? - Management reported that operations in Argentina are advancing well, with plans to start drilling in Vaca Muerta soon, targeting an exit rate of 5,000-6,000 barrels of oil per day by year-end [43][50]

Core Viewpoint - Ubisoft is undergoing a significant organizational, operational, and portfolio reset aimed at reclaiming creative leadership, regaining agility, and restoring sustainable growth and robust cash generation [2]. Group 1: Organizational Changes - The reset is structured around three core pillars: a new operating model focused on five specialized creative houses, a refocused portfolio with a revised three-year roadmap, and an acceleration of cost reduction initiatives to enhance structural efficiency [3]. Group 2: Industry Context - The gaming industry has become increasingly selective, particularly in the AAA segment, with rising development costs and heightened competition in the shooter genre [4]. - Despite challenges, successful AAA content holds greater financial potential than ever, indicating a need for improved production processes and quality in releases [4].