Autoliv Inc

Bull points

• our biggest growth opportunity is our 100% working interest Merca22 project, which is just north of Cabaret. So we made a significant discovery on this block with our 183A3 well and then the 183D4 follow-up well. And 183D4 came on production. this year. So, we have a facilities-focused 2026 plan to unlock the potential of this asset and set the stage for the next phase of growth in this area. So, first, we are going to quadruple the Mercatutu takeaway capacity for the field itself, and then we're also expanding our gas plants, so UPG and Cabaret, to add the processing flexibility to facilitate this Mercatutu growth. So we have a combination of reserves and resources with GLJ that demonstrates the potential of this market to asset. And we're working to migrate this into production and cash flow to support our longer-term growth objectives. So in the field itself, we're well underway with our 2026. And we're also expanding the field egress by increasing the pipeline capacity of up to 600 E3M3 a day. So to do this, we're going to loop the existing 4-inch pipeline with an 8-inch pipeline. So currently, we're in the permitting process of this, and the line pipe itself is being manufactured in Brazil. At the field itself, we're also drilling a follow-up well, a 183D1 well, which is right cursor there. So we started this project at the end of April, so we're right in the middle of the drilling project right now. Then we're going to be completing this as soon as practical, so once the rig leaves, we can bring on the completion equipment and tie that into the existing pipeline facilities. So this development will add additional production capacity for this field. Also, currently, we're building a G-pad, which is sort of the cursor our other looping project. And so the second phase of development that we're focusing on in 2026 is our midstream project at UPG and Cabaret itself. So this year our plan is to optimize the processing capacity of this facility to improve the ability to increase additional amounts of mercury to gas, which is hot gas. The target capacity of this project is an overall gas plant rate of 600 E3M3 a day, but will allow up to 300 E3M3 a day of MERC 22 gas to be blended with our Cabaret gas. So this project has already been initiated with our facilities partner, Enerflex, and we expect this to be online at the end of the third quarter. So this project will allow us to substantially increase the amount of offtake from our MERC 22 assets.
• $61.77, that was up over $2 from Q4 2025, indicating strong pricing momentum.
• Production and transportation costs decreased overall, both overall in terms of dollars and also per BOE with that increased production. They were down 76 cents per BOE or about 12% from Q4.