Preferred Names: Through 2021, our preferred names in the sector are Energean (value trading at 0.65x RENAV, dividend policy announcement and progress towards Karish first gas Q1/22) and Diversified Gas & Oil (c.10% forecast dividend yield, potential for deal flow). For direct oil price leverage, we prefer either Tullow Oil (best FTSE 250 performer, refinancing to conclude Q2/21) or Harbour Energy (scale, oil price exposure with strong balance sheet). All of these stocks have high-quality management teams, with most focused on shareholder returns and maintaining (or re-establishing in the case of Tullow) balance sheet strength. Greater Weighting: The E&P sector is at its highest weighting for over five years, as detailed in our recent note. This follows an overall recovery in share prices combined with the introduction of Harbour Energy. Together, the group accounts for 0.5% of the FTSE All Share, and 2% of the FTSE 250 (assuming the inclusion of Harbour Energy in September). Catalysts – Delivery, Refinancing and Deal Flow: A number of names in our coverage are focused on project delivery through 2021, with first gas expected from The Core Project (Independent Oil & Gas), Columbus (Serica Energy) and, through the midstream ANOH project, onshore Nigeria (Seplat). Refinancing/bondholder discussions continue with Tullow Oil and Hurricane Energy. Cairn Energy should complete the sale of its UK producing assets and the purchase of a new portfolio onshore Egypt (H2 2021). Increasing Oil Price Deck to $60/bbl: We have increased our oil price deck to $60/bbl for Brent (up from $55/bbl), maintaining 45p/therm ($6/mcf) for UK Gas Prices and FX at 1.35 GBP/USD. We expect the recovery in demand to continue through 2021 to pre-COVID levels as the vaccine roll-out continues, particularly in the key US market. The IEA recently increased its FY21 demand numbers, with a H2/21 weighting given the potential for near-term setbacks as parts of Europe have re-imposed restrictions. Near-term, monthly OPEC+ meetings should provide flexibility around the pace of easing 2mb/d supply cuts through May to July. However, with the glut in inventories built up through 2020 returning to their 5-year average, and restrictions in upstream capex, we remain constructive on the outlook for the oil price medium term. Target Price Changes: Increasing our oil price assumptions and updating numbers has led to an average c.15% increase in our target prices. Key changes include Harbour Energy (upgrade to Buy, TP increased to 24p/share), Tullow Oil (TP raised to 70p/share), Pharos (upgrade to Hold, TP to 26p) and Lundin (TP rises to SEK305).