WATERBOMB SOKCHO D-2 🔥 Only two days to go! The crazy energy is already building up 💥 It’s time to make the best memories you’ll never forget! 📸 WATERBOMB SOKCHO 2026 ✅ Date: August 22, 2026 (Sat) ✅ Venue: Hanwha Resort Seorak ✅ Tickets: Click the link at the top of @waterbomb_sokcho_official profile 📌Please Note Once tickets for the current round are sold out, the next round will automatically open without a separate announcement, and the price will increase. A maximum of 4 tickets may be purchased per person. #WATERBOMB# #WATERBOMB2026# #WATERBOMBSOKCHO# #워터밤# #워터밤2026# #워터밤속초# #속초#

Top Overnight News Global bond yields surged Tuesday as renewed tension between the U.S. and Iran reinforced inflation expectations, which increased the prospect of interest-rate hikes in the coming months. The 10-year U.S. Treasury yield rose to 4.792%, the highest since January 2025, according to LSEG data. 30-Year Treasuries are on their worst run since 2006. The 10-year Japanese government bond yield crossed 3% to hit a 30-year high. The 10-year German Bund yield reached 3.364%, unseen since 2011. WSJ / BBG Two oil supertankers attempting to exit the Strait of Hormuz were struck late Monday by projectiles in quick succession, maritime security consultant Marisks said, the latest sign of renewed hostilities around the critical waterway. BBG Iranian President Masoud Pezeshkian told the Shanghai Cooperation Organization Summit on Tuesday that Tehran would immediately reciprocate if Washington agreed to return to its commitments under the interim deal signed in June. CNBC Anthropic has signed a cloud-computing deal worth $35 billion with Nvidia backed cloud provider Lambda, with Nvidia itself holding the lease on the data center, according to people familiar with the deal. The data center is being developed by Hut 8, a bitcoin miner and data-center developer, in Nueces County, Texas. Nvidia signed an agreement with Hut 8 a few weeks ago to secure the capacity, the people said. WSJ China’s factory activity expanded more than forecast in August after three straight months of slowdown, according to a private survey, showing resilience among the country’s export-oriented firms despite a broader slowdown in the economy. The RatingDog China manufacturing purchasing managers index rose to 51.5 from 50.9 in July, according to a statement on Tuesday. It’s been above the 50-threshold separating expansion from contraction for nine months, the longest upswing in five years. BBG South Korea’s exports for Aug came in ahead of expectations at +68.7% (vs. the Street +63%). BBG South Korea’s key policy chief Kim Yong-beom resigned. He had drawn criticism over the rapid introduction of single-stock leveraged ETFs and his proposal for a citizen dividend from the AI boom. BBG Eurozone CPI was inline w/the Street on the headline at +3.3% (up from +2.9% in Jul), but core ran a bit cooler at +2.4% (vs. the Street +2.5% and down from +2.5% in Jul). BBG Micron's Taiwanese labour unions are reportedly moving toward a possible strike unless the Co. agrees to reform its bonus system. Shipping costs at risk of rising further as the White House escalates its crackdown on immigrant commercial truck drivers Both the Department of Homeland Security and the Transportation Department are demanding licensing data across the U.S. about immigrants driving trucks, in a hunt for what they say is a rash of drivers with improper certifications. WSJ "Diesel remains at the epicenter of the rally, accounting for over 40% of the $40/bbl increase in average global refined product wholesale prices since February...Global exports of refined products declined 6mb/d (25%) year-over-year (yoy), with the Persian Gulf and Russia accounting for 75% of the decline." - Goldman Delta One

⚡M&A Brief⚡ Nvidia has signed a definitive agreement to acquire Hugging Face in a deal valued at roughly $12.93 billion. Per the SEC filing, about $11.9 billion is payable to existing shareholders, with up to $1 billion in equity-based retention for Hugging Face employees joining Nvidia. The deal still requires regulatory approval and is expected to close in the first half of 2027. Jensen Huang said Hugging Face will continue operating as an open platform for the whole AI ecosystem, with developers free to choose their own models, frameworks and clouds. Nvidia compute will not be required. The pricing history is the part worth reading. Hugging Face's last publicly priced round was its Series D in August 2023 — $235 million at a $4.5 billion post-money valuation. No new round with a disclosed valuation has been reported since. At roughly $11.9 billion in shareholder consideration, that's about 2.6x the 2023 mark. And it happened during the platform's fastest growth phase: over 3 million models hosted, more than 18 million developers, and over 200,000 companies using it today. From the last price in 2023 to shareholders actually cashing out in 2027 is close to four years. The company never went public, and secondary shares barely traded. Public market investors could watch that entire step-up. They could not participate in it. Tech companies are staying private longer, and some skip the IPO entirely by exiting through acquisition. "Wait for the IPO" is becoming a later entry point — and sometimes one that never arrives. Source: NVIDIA 8-K filing / Reuters / TechCrunch, 2026-09-03

Lindy founder @Altimor reveals 19 out of 24 "AI 2027" predictions for 2026 have already come true and we are running ahead of the most optimistic predictions from 18 months ago: "19 out of the 24 predictions they'd made for 2026, and we're only in August, have come true so far. It's a pretty silly track record." "Look, we've all been in this game. I've been playing in AI since 2022. I have seen everybody's wildest predictions. We are currently ahead of the most optimistic predictions from literally like 18 months ago." "I remember when I was saying in 2023, hey guys, a year and a half from now we're going to have a million token context window. And everybody was watching me like I was taking crazy pills, and now we have way more than that." "This is why everybody keeps saying, we are not ready for this world, and it's coming very, very, very rapidly." @getlindy

Current ASST situation: ASST is now at an expanded 1.79x CEBE mNAV premium after this latest Bitcoin rally. Obviously, with added premium over NAV comes added risk, depending on investing time horizon, along with other factors. If you can't ride the volatility super dragon for enough time to make the machine work for you, this wouldn't be ideal. I think it's reasonable to assume Bitcoin could go back to $126,000 in 1 year by August of 2027. That'd be almost 2 months removed from all-time high. If the fundraising mechanisms were totally shut down and we move the static snapshot of the balance sheet forward as Bitcoin goes to that price, ASST would go to $40 per share with no additional Bitcoin or mNAV expansion. But we know they're buying lots of Bitcoin, lifting the NAV floor along the way. The breakeven mNAV for that date to outpace Bitcoin would be 1.53x. Do you think the mNAV will go down by more than 0.25x in a run to $126k Bitcoin? I don't. Do you think they'll probably add Bitcoin exposure along the way? I don't think paying the premium today is illogical, ESPECIALLY if you can handle the volatility over long time horizons. Just my opinion.

$XOM KEY READ-THROUGHS FROM EXXONMOBIL’S Q3 2026 EARNINGS CALL ExxonMobil’s results point to a redistribution of profits across the energy value chain rather than a uniformly bullish energy-demand environment. Refining scarcity, disrupted trade routes, and reliable access to feedstocks favor operating refineries, while chemical producers and fuel-consuming industries face margin pressure. The most differentiated company-specific implications concern verified drilling-automation suppliers, contractors positioned ahead of LNG investment decisions, and Guyana partners whose physical production growth does not translate mechanically into entitlement barrels. Golden Pass also strengthens the medium-term U.S. natural-gas demand outlook, but its commissioning schedule should not be confused with immediate full utilization or new pipeline fee commencement. The conclusions below distinguish exposure from incremental news: several disclosures validate existing contracts or project schedules rather than create new orders. Magnitude assessments refer to potential business impact, not predicted share-price movements. OILFIELD TECHNOLOGY AND ENERGY ENGINEERING DRILLING AUTOMATION PROVIDES A VERIFIED GROWTH OPPORTUNITY FOR H&P WITHOUT REQUIRING A HIGHER INDUSTRY RIG COUNT (READ-THROUGH 1) Affected company: Helmerich & Payne (HP: United States). Direction: Positive. Magnitude: Limited immediate consolidated earnings impact, but potentially meaningful medium-term differentiation within North American drilling. Supporting commentary: ExxonMobil reported 3 automated drilling rigs operating today, with deployment expected to reach approximately 25% of its Permian fleet in 2027 and approximately 50% by 2028. Management said these rigs were delivering “some of the strongest drilling performance in our fleet.” The supplier connection is established rather than inferred. H&P’s October 7 announcement identified an expanded FlexRobotics deployment with ExxonMobil, with 7 additional systems expected over the following 12 months, taking the disclosed deployment from 2 to 9 systems. FlexRobotics automates repetitive rig-floor activities. The earlier H&P announcement and later ExxonMobil call describe different dates and scopes; the call does not establish that every automated rig, or every future deployment, belongs to H&P. The transmission mechanism is technology adoption within an existing drilling program. Improved safety, execution consistency, and rig performance can strengthen H&P’s position in customer procurement decisions and support retention of technologically differentiated rigs. This creates a potential growth channel even if aggregate drilling activity remains flat. The less obvious implication is that automation spending and industry rig demand can move in different directions: a contractor with the relevant technology can benefit while the customer requires fewer rig-days per well. The near-term catalyst is delivery and successful operation of the already-announced additional systems through 2027. The longer-duration opportunity is broader fleet adoption through 2028 and replication with other customers. No pricing premium, equipment revenue, or incremental margin was disclosed, so a quantified EPS uplift would be unsupported. Faster drilling can also reduce required rig-days, and automation requires investment. The high-conviction positive is therefore H&P’s verified participation in the adoption cycle, not an unconditional increase in drilling-sector earnings. ROVUMA CREATES A SPECIFIC LNG CONTRACT-AWARD CATALYST, NOT A GENERIC EQUIPMENT SPENDING SIGNAL (READ-THROUGH 2) Affected companies: Saipem (SPM: Italy) and Daewoo Engineering & Construction (047040: South Korea). Direction: Positive, conditional on sanction and final contract award. Magnitude: Potentially material multiyear backlog exposure; immediate earnings impact remains limited. Supporting commentary: ExxonMobil reiterated that Rovuma LNG FID was expected before year-end 2026. Woods said the company was “pretty optimistic that we’ll close it by the end of the year.” Management also described increasing its interest to 50% and integrating upstream development more directly with the overall project. Saipem’s August 7 announcement identifies a direct commercial pathway. Its SMDC joint venture with McDermott, Daewoo Engineering & Construction, and China Petroleum Engineering & Construction Corporation signed a letter of intent covering preliminary engineering and procurement for Rovuma’s onshore development. The initial disclosed scope was $32 million. The final EPC award remained subject to FID and government and regulatory approvals. The planned liquefaction development has approximately 18.6 million tonnes of annual capacity. The earnings transmission is through conversion of preliminary work into a substantially larger execution program, followed by engineering, procurement, fabrication, construction, and commissioning revenue over several years. This is more actionable than assigning broad LNG exposure to an equipment manufacturer without a verified project award. Saipem and Daewoo are identified participants in the selected consortium; the call does not establish a new contract for unrelated LNG equipment suppliers. The near-term trading catalyst is formal FID and disclosure of the attributable contract value and terms. The fundamental benefit would arrive through subsequent backlog conversion and execution margins. The call reaffirms an existing timetable rather than announcing an award, and the full project budget cannot be assigned to either listed contractor. Consortium shares, risk allocation, payment milestones, and guarantees remain essential to valuation. Mozambique security conditions and construction execution can materially affect the quality of the eventual backlog. UARU’S STARTUP SUPPORTS MODEC’S TRANSITION FROM CONSTRUCTION TO LONG-TERM OPERATING SERVICES (READ-THROUGH 3) Affected company: MODEC (6269: Japan). Direction: Positive. Magnitude: Moderate project-level execution and recurring-revenue significance; incremental consolidated earnings are unquantified. Supporting commentary: ExxonMobil expects Uaru, its 5th Guyana development, to start in late 4Q26. Management also indicated that Guyana has substantial development potential beyond 2030, without committing to specific additional FPSO awards. MODEC is the confirmed supplier of the Errea Wittu FPSO. Its project disclosure identifies an engineering, procurement, construction, and installation contract, plus 10 years of operations and maintenance services beginning with first oil. The vessel is designed for approximately 250,000 b/d of oil production. The immediate mechanism is reduction of remaining commissioning and delivery risk. Successful startup supports the transition from a capital-project execution phase toward contracted operating services. The value is not equivalent to recognition of the entire construction contract at first oil: construction revenue is recognized over the applicable execution period, while final cash settlement depends on contractual milestones. The operating-services component provides a separate, longer-duration revenue stream. A less obvious competitive implication is that ExxonMobil’s preference for operatorship does not mean eliminating specialist contractors. The company can retain development and operating control while outsourcing substantial FPSO delivery and service responsibilities. MODEC’s contract demonstrates that relationship directly. The near-term catalyst is first oil and stable commissioning performance in late 2026 and early 2027. The longer-duration benefit is the 10-year service relationship and a stronger execution record with ExxonMobil. Future Guyana projects expand the addressable opportunity, but discussion of a 9th or 10th FPSO is not a MODEC order. Uaru’s schedule was already public, making this primarily execution confirmation rather than new backlog. REFINING AND PETROCHEMICALS PRODUCT SCARCITY FAVORS RELIABLE REFINERS MORE DIRECTLY THAN HIGHER CRUDE PRICES FAVOR THE ENTIRE ENERGY SECTOR (READ-THROUGH 4) Affected companies: Valero Energy (VLO: United States) and Marathon Petroleum (MPC: United States). Direction: Positive. Magnitude: High near-term earnings sensitivity, especially for refining-focused profit pools. Supporting commentary: ExxonMobil’s official materials attribute $4.73 billion of sequential Energy Products earnings improvement to margins. Adjusted segment earnings reached $9.053 billion, versus $4.099 billion in 2Q26. Management described constrained Middle East product exports, damaged refining capacity, and a normalization process potentially extending “well through next year.” U.S. Gulf Coast crude-unit utilization reached 100%. The key mechanism is scarcity of conversion capacity, not simply scarcity of crude. Refinery outages can simultaneously reduce crude demand and restrict supplies of diesel, gasoline, and other products. That combination can widen refining margins even when crude realizations weaken. ExxonMobil exhibited exactly that divergence: refining profitability surged while its upstream price contribution declined sequentially. Valero and Marathon are directly exposed through their operating refinery systems. Available U.S. refining capacity can capture stronger domestic product pricing and export opportunities created by reduced overseas supply. The benefit depends on actual utilization, product yield, crude sourcing, energy costs, and regional exposure. ExxonMobil’s unusually strong integration and optimization performance cannot be transferred mechanically to competitors. For scale, a $1/bbl improvement in realized margin across 1 million b/d of throughput represents approximately $365 million of annual pretax contribution before operating changes. This is an illustrative operating sensitivity, not a company earnings forecast. It explains why the duration of elevated margins can matter more than small changes in throughput. The near-term catalysts are realized distillate margins, export demand, refinery availability, and maintenance outcomes through winter and 2027. The longer-duration conclusion is more restrained. ExxonMobil’s planned approximately 100,000 b/d increase in distillate yield, together with its statement that brownfield capacity can cost roughly half as much as grassroots construction, demonstrates that supply can respond economically. The high-conviction positive concerns persistence of tightness, not a permanent reset to current peak margins. Faster repairs, additional Chinese exports, demand destruction, or windfall taxation would weaken the read-through. THE REFINING BOOM DOES NOT SIGNAL A BROAD CHEMICAL RECOVERY, AND LYONDELLBASELL NO LONGER HAS ITS FORMER REFINERY OFFSET (READ-THROUGH 5) Affected companies: LyondellBasell Industries (LYB: Netherlands) and Dow (DOW: United States). Direction: Negative for exposed commodity-chemical earnings; relative advantages remain for lower-cost North American feedstocks. Magnitude: Potentially high within commodity chemical segments and moderate to high at the corporate level, depending on portfolio mix. Supporting data: ExxonMobil’s Chemical Products adjusted earnings fell approximately 40% sequentially to $725 million despite sales volumes increasing approximately 9%. Its presentation identifies a $640 million margin headwind, citing greater regional product availability and higher feedstock costs in Europe and Asia Pacific. This is an important negative signal because it separates volume recovery from profitable recovery. Higher shipments can coexist with deteriorating contribution margins when product availability increases faster than demand or when feedstock costs rise faster than selling prices. Strong fuel prices therefore do not establish pricing power in polyethylene, polypropylene, or other commodity chemical chains. Dow and LyondellBasell are exposed through commodity petrochemical production. North American ethane-based assets can retain a relative cost advantage, but that advantage does not guarantee higher absolute profits if globally traded product prices weaken. European and Asian operations with greater exposure to oil-linked feedstocks and expensive energy face a more difficult cost equation. LyondellBasell has an especially relevant portfolio distinction. Its Houston refinery ceased operations in February 2025, and refining is reported as a discontinued operation. It therefore does not retain the same operating refinery offset that allowed ExxonMobil to absorb weaker chemical earnings. LyondellBasell also completed the divestiture of 4 European assets in 2Q26, reducing its exposure to the region. The negative read-through should consequently be applied to the remaining portfolio rather than an outdated asset footprint. The near-term catalyst is evidence on realized polymer margins, feedstock costs, and operating rates over the next several quarters. The longer-duration pressure is on higher-cost capacity that cannot earn adequate returns through the cycle. Improved product demand, industry capacity rationalization, or lower feedstock costs would weaken the negative conclusion. ExxonMobil’s result supports caution on sector margin assumptions, but not a prediction that Dow or LyondellBasell will miss their own consensus estimates. UPSTREAM OIL AND OFFSHORE DEVELOPMENT GUYANA PARTNERS BENEFIT FROM UARU, BUT GROSS BARRELS OVERSTATE THE NEAR-TERM ENTITLEMENT UPLIFT (READ-THROUGH 6) Affected companies: Chevron (CVX: United States) and CNOOC Limited (0883: China). Direction: Positive medium-term development exposure, with a negative near-term read-through to simplistic entitlement-volume assumptions. Magnitude: Material within the Guyana assets; moderate at the diversified corporate level. Supporting commentary and data: ExxonMobil confirmed late-4Q26 Uaru startup, while its earnings presentation attributed part of upstream weakness to accelerated Guyana entitlement effects. The preceding quarter’s materials had already identified approximately 100,000 b/d lower ExxonMobil net entitlement in 3Q26 because investment recovery occurred earlier than anticipated. Chevron owns a 30% interest in Stabroek following its completed Hess acquisition; CNOOC owns 25%. Uaru’s approximately 250,000 b/d gross design capacity corresponds to arithmetic working-interest shares of 75,000 b/d and 62,500 b/d, respectively. Those figures are not forecasts of reported entitlement production. The precise mechanism is the production-sharing agreement. Contractor barrels include cost recovery and a share of profit oil. As recoverable costs are reimbursed, the contractor allocation can decline even while gross field production remains strong. Earlier capital recovery is favorable for project NPV, but lower entitlement barrels can constrain subsequent reported revenue and earnings relative to a constant working-interest-volume model. The high-conviction warning is therefore against extrapolating gross Guyana output directly into shareholder production growth. ExxonMobil’s specific entitlement reduction should not simply be multiplied by the partners’ ownership ratios because company-specific recoverable costs, lifting patterns, and reporting treatments require reconciliation. The near-term catalyst is Uaru first oil, followed by commissioning, ramp-up, and the partners’ reported entitlement and cash-flow bridges. A late-quarter startup implies limited contribution to 4Q26 averages, with a more meaningful benefit during 2027. The longer-duration positive remains the addition of productive capacity within an established development system. The negative is primarily a forecasting and earnings-conversion issue, not evidence of reservoir deterioration. Future FPSOs provide further potential, but the call did not sanction a 9th or 10th development. NATURAL GAS, LNG, AND MIDSTREAM GOLDEN PASS STRENGTHENS THE HAYNESVILLE DEMAND OUTLOOK, BUT PIPELINE THROUGHPUT IS NOT AUTOMATICALLY NEW FEE REVENUE (READ-THROUGH 7) Affected companies: Comstock Resources (CRK: United States), Expand Energy (EXE: United States), and Energy Transfer (ET: United States). Direction: Positive for Gulf-connected gas production; more limited incremental positive for already-contracted pipeline earnings. Magnitude: Potentially high producer earnings sensitivity to gas realizations, but modest immediate consolidated impact for Energy Transfer from this milestone alone. Supporting commentary: ExxonMobil expects Golden Pass Train 2 to be substantially complete by December 2026, followed by commissioning, and Train 3 to reach mechanical completion in mid-2027. Management said lessons from Train 1 had been incorporated into the subsequent trains. Golden Pass identifies approximately 18 million tonnes of annual LNG capacity and approximately 2.5 Bcf/d of full-project gas requirements. With Train 1 already operating, the remaining trains represent roughly 1.7 Bcf/d of additional full-utilization demand on a proportional basis. That is a capacity approximation, not a forecast that the full amount arrives during 2027. Comstock’s Haynesville concentration and Expand’s substantial Haynesville production create a clear geographic transmission route. Incremental Gulf Coast gas demand can support regional realizations, reduce periods of excess supply, and improve the economics of nearby drilling inventory. Neither company is being identified as a direct Golden Pass supplier without a verified supply agreement; the read-through is through the regional and national gas balance. Expand reported approximately 6.9 Bcf/d of gas production in 3Q26, including approximately 3.2 Bcf/d from the Haynesville. A uniform $0.10/Mcf increase in realized prices across that total gas volume would represent roughly $250 million of annual revenue before hedges, taxes, and other changes. This illustrates sensitivity, not a forecast of the price effect from Golden Pass. Storage, weather, competing production growth, basis differentials, and hedging determine the realized outcome. Energy Transfer has a verified infrastructure connection through Gulf Run, historically disclosed as supported by a 20-year Golden Pass commitment for approximately 1.1 Bcf/d. The crucial distinction is that reservation-fee revenue need not wait for physical LNG utilization. Energy Transfer’s August presentation states that approximately 95% of interstate pipeline revenue comes from fixed reservation fees. Startup therefore improves physical utilization and supports long-term network demand, but does not justify assuming that all associated revenue begins anew. The near-term catalysts are commissioning progress and sustained feedgas flows, not mechanical completion alone. The longer-duration benefit develops as utilization increases through 2027 and beyond. Delayed commissioning or a sufficiently strong upstream supply response would reduce the expected gas-price benefit. EUROPEAN METHANE FLEXIBILITY REDUCES LNG MARKET-ACCESS RISK, BUT DOES NOT TURN FIXED-FEE CONTRACTS INTO SPOT-PRICE EXPOSURE (READ-THROUGH 8) Affected company: Cheniere Energy (LNG: United States). Direction: Positive. Magnitude: Moderate strategic and tail-risk benefit; limited directly identifiable immediate earnings uplift. Supporting commentary: ExxonMobil stated that it would comply with EU methane rules and, without a workable compliance route, “would stop importing into Europe.” Management welcomed the European Parliament’s vote for a 3-year delay. The economic mechanism is preservation of market access. More time to establish monitoring, reporting, verification, and compliance systems reduces the risk that otherwise competitive LNG is constrained by an implementation deadline. For Cheniere, this supports customer access to a major destination market, portfolio flexibility, and confidence in longer-term contracting. The legislative qualification is material. The European Parliament’s October statement describes an adopted negotiating position, with negotiations with the Council still required. The vote is evidence of a more accommodating policy direction, not proof that every proposed deadline change is already final law. Cheniere’s commercial structure also limits the direct earnings inference. Its annual filing describes many LNG sales contracts as a fixed fee plus a variable component generally equal to 115% of Henry Hub, with fixed fees still payable under specified cargo-cancellation provisions. Consequently, higher European gas prices do not flow through across all contracted volumes as incremental Cheniere margin. Exposure is more concentrated in marketing flexibility, available cargoes, and the economics of future contracts. The near-term catalyst is final legislative resolution and practical implementation guidance. The longer-duration benefit is reduced friction in supplying Europe and maintaining diverse LNG outlets. The high-conviction positive is lower market-access risk, not a blanket upward revision to earnings based on European spot prices. A less workable final law or persistently unresolved verification requirements would weaken the conclusion. AIRLINES AND FUEL-INTENSIVE TRANSPORTATION AIRLINE FUEL COSTS CAN REMAIN ELEVATED EVEN IF CRUDE PRICES FALL (READ-THROUGH 9) Affected companies: United Airlines Holdings (UAL: United States) and American Airlines Group (AAL: United States). Direction: Negative. Magnitude: Potentially high operating-profit sensitivity if product scarcity sustains elevated jet-fuel prices. Supporting commentary: ExxonMobil described shortages of diesel, gasoline, and other finished products, alongside unavailable refining capacity and constrained Middle East exports. Its results showed sharply higher refining margins despite a sequential upstream price headwind. Management also warned that normalization could extend well into 2027. The relevant transmission is through refined-product prices rather than crude alone. Jet fuel and diesel are related middle-distillate markets. Reduced refinery availability can sustain jet-fuel premiums even when weaker crude demand pushes oil prices lower. The call does not provide a specific jet-crack forecast, but it establishes why a lower Brent assumption is insufficient to conclude that airline fuel costs will fall proportionately. United and American are particularly direct exposures because their 2025 annual filings describe policies of not hedging fuel-price volatility. United disclosed that a $1/bbl change in aircraft-fuel prices would change projected annual 2026 fuel expense by approximately $116 million. American disclosed approximately $50 million of annual fuel-cost sensitivity for each $0.01/gallon change. On those disclosed consumption assumptions, an additional $0.10/gallon would imply approximately $490 million of annual fuel expense for United and $500 million for American, before operational or pricing offsets. These are cost sensitivities, not forecasts of incremental losses. Fare increases, capacity reductions, fuel efficiency, and demand conditions determine how much reaches operating profit. Pass-through is also imperfect and delayed because some tickets are sold before fuel is consumed. Sustained high energy prices can simultaneously weaken discretionary travel demand, limiting the ability to recover the cost through fares. The near-term catalysts are delivered jet-fuel prices, jet cracks, and changes in airline fuel guidance over the next several quarters. The longer-duration impact is more likely to appear through capacity discipline and fleet economics than a permanent margin reset. Restored refinery availability or sufficient fare recovery would weaken the negative read-through. The strongest conclusion is that airlines should not be treated as clean beneficiaries of lower crude prices while product-conversion capacity remains constrained.

Since August 2025, ATF and our 28 federal and local partners have continued working to make D.C. safer for residents and visitors by sharing intelligence and resources across the city. With 17,744 arrests and 2,073 crime guns seized from criminals, we are driving violent crime down throughout the D.C. region. The Make D.C. Safe and Beautiful Task Force represents the largest collaboration of law enforcement agencies and the National Guard in modern history, united by a clear mission: to proactively end crime in a major American city. #DCSafeBeautiful# @ATFWashington