Q3 2019 Earnings Call
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I would now like to turn the conference calls over to Steve Campbell.
Thank you operator, and welcome everyone to our third quarter 2019 conference calls.
Let me remind you that this call is being webcast and the slides are available on our web site at Encana Dot com.
Further advisory information is contained in our annual reports and other disclosure documents filed on SEDAR and Edgar.
I also wish to highlight that we prepare a financial statements in accordance with U.S. gap and report our financial results in US dollars. So references today to dollars mean, U.S. dollars and the reserves and resources and our production information or after royalties unless we state otherwise.
Following our prepared remarks today, we will all be available to take your specific questions.
Please limit your time to one question and one follow up this simply allows us to get to more of your questions.
I'll now turn the call over to our CEO Doug Suttles.
Steve Good morning, and thanks for joining US today recently I wrote a sell side note that was titled likely a boring quarter for Encana well from today's news you can see was anything but boring we generated a quarter of a billion dollars a free cash flow executed exceptionally well across the company and announced.
A strategic move to establish corporate domiciled in the United States that we believe will create long term value as it ultimately better positions our company.
Our recent actions are proof positive that we are committed to unlocking significant value we see in our equity we will leave no stone unturned to capture this value for the benefit of our shareholders.
We have a lot to cover today in today's call should we will organize it around these key topics first will cover our third quarter financial and operating performance as well as year to date highlights we are either increasing the midpoint of our full year production guidance on the back of continued strong performance from the Anadarko and the integration of Newfield has.
Onyx exceptionally well.
In addition to our brief remarks today, they're supplement supplemental information or corporate presentation located on our website.
Next we'll discuss our recent and significant actions to increase shareholder value, we intend to establish a U.S. domiciled company, though will expose us to significantly larger im growing pools of investment.
We haven't made or are we have made to our company. We also decided to change the name to inventive.
Third we will close todays call with some high level thoughts on or outlook in how we are planning to approach 2020.
As always we'll take your questions. After our prepared remarks, so let's get started.
We continue to deliver outstanding financial results, reflecting the quality of our asset portfolio and our constant drive to innovate and find new efficiencies at our cost structure.
In the third quarter, we posted net earnings of $149 billion or 11 cents per share and generated more than $250 million of free cash flow when combining the last two quarters, we have now generated $378 million of free cash flow.
We generated free cash in 2018 in 2019, when we intend to do this again in 2020 [noise].
As our business matures and we transition to a more industrial business model, we're delivering against broad market, we're delivering its broader market competitive metrics such as earnings per share cash flow per share and free cash yield.
We ever growing list of highlights for 2019, perhaps the most important of the uses the successful integration of Newfield Tomorrow will mark the one year anniversary of the news Newfield acquisition announcement.
Since that time, we've exceeded the identified synergies and they are showing up in our bottom line results are people across the company are working as one team and delivering exceptional results.
For the third time this year, we today raised our projection for annualized DNA synergies from this transaction now set at $200 million. This compares to our original target of $125 million more telling is the fact that we have now eliminated nearly 90% Newfield GE today.
Our rapid reduction in stack well costs from the legacy $7.9 million to an average of $6.5 million have move returns higher and made this play very competitive within our portfolio in the industry.
Today, we present longer dated production data from all of our wells showing consistent performance from the play.
We have continued our track record of returning cash to shareholders. In fact, we're that we're at the top of the list. The VIP companies for total cash return and we fulfilled our buyback plan in a timely fashion, we repurchased $1.25 billion of our stock at what we believed to be a very compelling valuation in it.
Addition, we raised our dividend 25% this year as our company in cash flow grows we expect to dividend to grow as well we see this as a sustainable practice and the requirements are healthy investor focus DMP companies on the road ahead.
Setting aside the first quarter, which was noisy do that due to the timing of the Newfield closing, we generated $378 million of free cash flow at current commodity prices and we estimate additional free cash in the fourth quarter as we've said before the first part of coal for free cash flow is the balance sheet and the reduction.
In short term debt.
Consistent with prior practice, we continue to refine and high grade or asset portfolio and earlier. This year, we exited from China in sold a non strategic dry gas it in the Arkoma. The proceeds went to the balance sheet.
In addition, we recently made a few key succession moves with for internal promotions and other moves below them to build tomorrow's leaders and ensure continued execution at all levels in the organization.
And today the announcement of our intent to establish a corporate dumb so United States and our new brand are added to the list and reflects the significant transformation of our company.
We are excited about our future and our ability to compete and win in both the eons piece space and the broader market.
As you can see we posted another quarter of strong execution.
Our approach to reservoir development combined with solid operational and commercial execution is what enables us to deliver quarter after quarter.
We have a quality multi basin portfolio.
Our people have a proven ability to adapt managing risks and continually shifting resources to generate desired corporate level outcomes.
Our three liquids rich core growth assets continue to perform very well against our production and cost targets.
Our capital efficiency metrics continue approved through meaningful reductions in cycle times across all core assets.
Our total production from the core growth assets averaged nearly 480000 Boe per day up about 10000 believe per day from the previous quarter.
If you will notice today that we raised our expectations for full year production, primarily related to continued outperformance from the Anadarko basin.
In the Permian, our third quarter volumes were up 13% over last year's third quarter.
In the Anadarko, we see strong year over year growth in oil and liquids up 16% when compared to the same period in 2018.
Most impressively our cycle times, the money have improved to the point.
Where we are delivering our stated objectives with just three rigs instead of the 40 rigs as we had planned.
It's always worth reminding folks that was 4 million dollar well costs sub 80 day cycle times single digit royalty rates and a realized condensate prices at 90% of WT, our investments here compete with anything in our portfolio.
Our base assets are delivering delivering significant free cash flow today and play a critical role in our corporate level performance.
With the growth driven by oil and condensate.
In the Eagle Ford consistent well performance and solid execution are continuing to produce free cash flow.
In the Duvernay strong outperformance from our recent pad led to a 40% quarter over quarter growth.
Let's move on with little more detail on our strong stock performance to date.
Our development in stock Merrimack is focused on the black oil window in the hard to American excuse me a contiguous acreage position. This is a dominant acreage position that is early in its ultimate development.
Our strong well performance in the area and focus on based production delivered 162000 believe Boe per day through October .
In addition to our consistent while results. The team continues to find operational efficiencies deploying our Q development model, resulting in rapidly reduced well costs cycle times and improved returns.
To date to date, we have pump 40 high intensity Q style completions and as you can see oil production is outpacing our expected oil type curve at 180 days from initial production.
Please mark your calendars for a stack day event in late January since we acquired this asset we continued to be encouraged by a significant value, we're seeing and the competitive returns to play is generating today.
By late January we will have nearly a year of new data from the Anadarko and we look forward to sharing a great story with you.
Ill now turn the call over to Corey.
Thanks, and good morning, everyone.
Let's discuss the list of wise regarding our decision to establish a corporate domiciled in the United States. Let me say upfront. This move does not represent to shift in strategy.
We believe the opportunity to enhance long term value for shareholders will be greater as the U.S. domiciled company.
Great significantly and strategically repositioning our multi basin portfolio in north America's top basins, while constantly innovating to improve our returns and corporate financial performance. We believe our valuation continues to be disconnected from a U.S. peers. This is due in part to the inability to access certain pools of capital.
In the United States that are limited investing in securities of foreign companies.
The U.S. company, we maybe able to attract deeper and growing pools of passive investment capital in the United States.
Typically, particularly if our shares are included in U.S. indices and other investment vehicles that only include securities of U.S. domiciled companies.
Please take time to read this document to more fully understand our rationale and the mechanics behind this plan move.
We estimate that we can make this domiciled change without material cost at the company, allowing access to the larger pools of investment in the U.S. capital markets.
To remain accessible to both our us and Canadian shareholders. We plan to remain dual listed on the New York stock exchange and the TSX exchanges.
Theres no doubt that passively managed money and the importance of index funds and EPS is on the rise using public data, we estimate that today under 10% of our ownership is comprised of passive accounts far less than the 30% average for U.S. peers. This is not a trend that is likely to reverse and we want to expose.
Those are equity to new and rapidly growing pools of money in the U.S. we.
We know that you might have some more specific questions as a shareholder regarding the change. So we have included a frequently asked questions page on our web site for you to reference now.
Our preliminary proxy statement will be filed next week with more details I'll now turn the call back to Doug.
Excuse me thanks Corey.
This move represents the significant and transformational changes we have delivered we're an entirely different company today and we are positioned to lead on the road ahead.
We are one of the largest independent producers with approximately a quarter of a million barrels per day of oil and condensate production.
But we have meaningfully transformed our business and created a company that is built for today's environment. It is important that are transformation is recognized in our valuation.
Make no mistake, we have a long and proud history in Canada, and our assets here are world class and as Mike described with our cost and productivity. Our returns in Canada continue to be every bit as strong as the rest of our portfolio.
We will continue to make profitable investments in the money in the do overnight and manage these assets out of our Calgary office, we do not expect any impact on our Canadian workforce, either in the office or the field.
We define the new MP, we have a sustainable business model delivering today with many others are aspiring to do in the coming months in years ahead. This business model is generating leading results in our sector and compete head to head for capital and investments in the broader market.
We are leading the way in an industry at the customer transformation, we have successfully positioned our company to achieve differentiated performance in this market.
We're balancing industry competitive lick liquids growth disciplined capital allocation to generate free cash flow in a consistent return of cash to shareholders. These are the key ingredients that should lead to long term shareholder value.
Our strategy is to produce strong and sustainable corporate financial performance. Since 2013, we have taken great strides to reshape the company and deliver corporate corporate metrics you can see today, we have greatly increased our multi basin scale focusing on high value oil and condensate.
Our proved reserves are now 2 billion barrels equivalent, but more important they have moved from 15% liquids to 55% liquids or oil and condensate production is expanded seven fold over this time period, we have significant scale with almost a quarter removed barrels of oil and condensate production. That's sold this quarter from.
Average of 95%.
Hi mix WT pricey.
When annualizing, the second and third quarters, we generated $3.4 billion in cash flow.
It is this transformational execution that underpins the next chapter in our companies not life now so I'll now turn the call over to Brendan.
Thanks, Doug.
Our number one priority will be the generation of free cash flow delivering modest liquids growth at mid cycle prices.
We will do this by allocating capital to the high return liquids opportunities that we have in our portfolio.
In a lower price environment, we have tremendous flexibility with no long term rig contracts or HBP requirements.
We would adjust our capital accordingly, and prioritize free cash flow over production growth.
If prices strengthen this will lead to a higher free cash flow generation.
Thanks for your time today, we're now happy to take your questions operator.
Ladies and gentlemen, as a reminder, you can join the queue to ask your question by pressing star one.
Really just two questions I guess, one is from everything you are saying around.
The change in where the company's domiciled effectively theres really no movement of people.
The name changes, but that's about it so it's it's pretty much business as usual if that is that fair Doug.
Accessing the capital market in the past the flows that are in it today, but how we operate the business and run the business will not change there'll be no movement of roles and responsibilities no reduction in staff and actually no change to how we're allocating capital.
Okay. You also mentioned just on the share consolidation that the five to one and you mentioned volatility but is there a broader thinking around that.
Well, Greg it's really around the peer compare ability.
So we think this just makes sense to do this at the same time is we do the Doe domiciled in name change it feels like for comparability and ease of understanding we think it's a simplification move.
Okay, Great and then second one is really just operation around the Montney, but can you just kind of lay it with the growth trajectory is coming we suffer a bit of growth as we got coming in 2021 I believe.
Yes, Greg as you know, we've we've been working with care at a build up the gas plant NPR, a that's going very well that should start up in early 21.
We're as we're finalizing details and budgets for 2020.
My question is how we ramp into that new facility and obviously, we want to maximize capital productivity, so not spend capital too far in advance I would say, though that one.
One operational detail here, which is advantageous to it is that we have the ability to route existing production to that plan as well, which means is as the timing get slows closer to comes on we don't have to actually drill wells to start the plant up we could actually route existing production and then build production.
Into the startup once its Kurt.
Got it thanks very much thanks, Greg.
Our next question comes from the line of Brian .
Oldman sacks. Please go ahead your line is open.
Thank you good morning.
Brian .
I wanted to see if you can discuss the oil production trajectory in the Anadarko basin.
In oil specifically versus liquid broadly that the well performance that you've consistently reported and put in your slides is very strong it doesn't necessarily always maybe translate into what we see for total basin quarter to quarter oil and I wanted to see if you could talk a little bit more about those moving pieces the base declines.
Timing of completions, and then ultimately what that trajectory looks like over the coming quarters.
Yes, Brian I think I think the two factors I'd highlight in to be honest some of the rest of that we may just need to follow up with you afterwards, but the two things I'd highlight as you can see in the results Mike talk to the wells are performing quite well in fact with our our new high intensity completions.
These are on track with the type curve, but oil is above type curve and of course, that's product that matters most there.
But the second effect, so so well performance is strong.
But the second effect is obviously entering the year at the time the transaction closed I believe it was what Mike 13 rigs.
Active, yes, thats right and and of course, we've ramped that down to more sustainable level, but you can see we actually basically had flat production from twoq to Threeq you. Despite the drop in activity.
But other than that to be honest I would probably just need to follow up with you offline or the rest of your questions.
Great. Thanks, and then the follow up is a little bit more on the 2020 outlook, how you're thinking about.
More broadly to achieving your free cash flow objective and.
The sequential production trajectory that that would entail.
Yes, Brian I think to it.
By the way for for all of Us in the sector and people like yourself, who follow that.
I think obviously, the God's like to mess with the city ended the year by creating maximum volatility in commodity price, while we try to do planning.
But one of things were very clear on is that we're per our prioritizing free cash flow first as we look to the business in 2020.
Under today's conditions, so at prices similar to what we see right now we would anticipate modest liquids growth with free cash generation, but we're refining will refining that model as.
As we go into the year and then of course.
If the world worsened from where it is today, we would continue to prioritize free cash so would pull back on capital and if it turns out stronger the additional the additional cash flow will go to the balance sheet.
Great. Thank you.
Our next question comes from the line of Gabe Daoud of Cowen. Please go ahead. Your line is open.
Great. Thanks, Good morning, everyone, maybe just sticking with 2020 again.
So modest single digit liquids growth plus free cash flow on a mid cycle price I guess, Doug is that mid cycle price kind of what we're seeing on the screen today, and then would plan b essentially represent.
Kind of a maintenance level program that whole volumes flat year over year.
Yes, I gave I would say that.
What we're really indicating at prices like today, because I would say if you think about the three pieces oil.
Gas and Ngls oils, probably around where we think mid cycle is gas is obviously, we can ngls are weak, but we still believe even in that environment, we would actually have liquids growth and free cash generation.
Now if for instance, it weakened further what what we're indicating is we would pull back capital and pullback.
Some of the growth to make sure we still generated free cash flow.
We've talked before that the business, we built can even into the into the $40 WT I range. We can hold production flat it'd be free cash flow neutral, which just shows the efficiency of the business.
Understood.
Thanks for that and just the I guess, Doug as a follow up sticking.
Going back to the stack. It this year I think on average the rig program was about six to seven but then obviously you blow down a number of Newfield docs, which led to on streams being significantly higher. So I guess, just trying to think about capital efficiency out of the stack for next year.
Do you have to add a lot of activity to achieve your goals. There next year and and just given that some of the well cost savings you guys have obviously seeing just trying to try to figure out how that how that could potentially move all those moving pieces, how that could move that can move the budget.
And the stagnant your relative to the number this year, which I think was a 25 to 875.
Yes, it's and gave I want to go too far your because we havent finalized plans for the year there yet on for 2020, and how we're going to allocate capital across portfolio.
But what we've been trying to do is level load the program like we've done in the Permian and you've seen the efficiency benefits that's delivered.
Obviously, we're not going back to 13 rigs, but where we're probably in and around where we are today or maybe maybe just slightly higher we'll see as we as we do the budget.
But we don't intend to go back to 13 rigs, which is where it started the year.
Okay understood. Thanks, a lot Doug.
Thanks good.
Our next question comes from the line of asset Sam.
Bank of America Merrill Lynch. Please go ahead your line is open.
Thanks, Good morning.
One for Mike in one for Corey if I may have Mike on the Permian you talked about strong Howard County results thing you mentioned 28 gross wells online any more color as to what you're thinking and when you're thinking broadly Permian and you're thinking about 120.
Well till this year are we thinking about again very early next year and allocation towards Howard County.
Yes, yes, yes, Howard County represented about 25% of a program. This year would expect that not to change is it going go into next year, but again as Doug mentioned, we haven't we haven't finalized finalize the budget yet for 2020.
The real surprise and real.
Really encouraging results were seeing is coming out of the Wolfcamp, a and Howard and it's basically well above our type curve expectation. So we're we're really feeling pretty pretty good about those results.
Okay, Great and then Cory on cash margin per BOE, you for the quarter was.
I think for $14 than 67 cents just wondering if in the current environment you could drank the dip for different assets Permian Anadarko money on these assets on.
Cash margins and any drivers outside of pricing that good differentially affect margin outlook again big picture over the next 12 to 18 months.
Yes, Hey, us in the said sorry the.
If you look across all four of them that they'll get to very similar margin, albeit slightly different product mix and well costs. So they all compete really well in our portfolio and we tend to allocate capital to them and not basis.
Okay. Thank you.
Our next question comes from the line of Jeanine Wai of Barclays. Please go ahead. Your line is open.
Hi, good morning, everyone.
Good morning.
Hi.
Scott That's my first question on the well cost you cited the same at 1.4 million savings as last quarter, although the pacesetter wells are under 6 million, which is great. It seems like things are continuing to progress well on the cost fried and your last update so are there any completion design changes and his staff that you've been testing that potential.
We are offsetting some of these continued cost reductions.
Yes.
This is Doug I'll make a couple of comments and see if Mike wants to add in its a great question because.
We have put more intense completions in the ground our high intensity completions, we've done elsewhere in the company with was really strong success and we do think Thats one of the things leading to the.
The strong oil production performance, there and they do add on a like for like basis. They do add cost compared to that 7.9 number. So what we're doing is before we put up another new number out there is looking at this balance of where we're going with the completion versus the cost savings, but as Mike indicated we've had wells.
Under $6 million now and this is one of the areas you should expect us to talk a lot more about at the stacked a bit.
At the end of January .
Mike anything to add yen not not a lot here, Doug and then we're working on additional opportunities to reduce costs.
That that will help us continue to drive down to $6 million and below but offsetting that is we're testing higher intensity completions up to 3000 pounds per foot and looking at those results. So it's a bit of a balance of in more intense completions, but coming in with different ideas number of ideas that we're chasing to driver.
Driver costs down per well.
And could any of these changes potentially by you towards the lower end of year six to eight wells per section keep configuration that would enhance returns and we're just trying to think about any incremental capital efficiency tailwind that there might be next year that market's underappreciating.
Yes. Thanks.
On the on the spacing and stacking is sort of density question I think.
Of course that always moves around on where you're at in the play in how thick. The sections are in do you have the Osage underneath you all sorts of things.
The interaction between the completion design in the spacing I'm not sure is going to have a huge influence at this point.
I think what it is what we're looking to see though is.
If we spend a bit more money on the completion does it make a better well and therefore generate better returns.
Which will improve capital efficiency at the same time and as Mike mentioned actually right across the business actually we just took our board on Monday of this week out to the Anadarko and they got to first hand see what we've been doing.
And our teams just continue to innovate all across the business and come up with new ways to execute which improve efficiency you.
You've probably seen our focus on cycle times and.
One of the reasons, we do that is a lot of the cost in this industry are paid for on a day base. So if you can actually do things more efficiently and quicker it's less expensive. The other thing we get out of that is course, we get information back sooner. So therefore, we can we that information into our thinking but.
I don't I don't necessarily see the spacing and stacking being driven dramatically off. These completion designs is just can we make better wells get better recovery for the capital we're investing.
Great. Thank you for taking my question.
Our next question comes from the line of Jeffrey Campbell of Tuohy Brothers. Please go ahead. Your line is open.
Good morning.
And congratulations for the quarter and.
The excitement that.
Well, so I didn't see coming.
I wanted to ask about the Anadarko decline right. I was just wondering is this just represent better than expected.
Outperformance are you doing something proactive too.
Was the base.
Yes, Jeff good question.
One of the things that team does and if you think about a company large size, we produce about 600000.
Be always today about a quarter million barrels a day of crude and condensate.
And with a large base you can imagine if you can optimize that base, even a 1% move is a big number and in the Anadarko specifically the team's been doing a very good job of optimizing the base and QD, including things like artificial lift and managing line pressure in a number of things.
Sure, which are having an impact.
And of course, the other piece about that is these are usually at little to no cost. So the economic value is very strong, but we have had some very good results on the base here recently with optimization.
Thanks for that color and my other question was.
With regard to the Williston infill well outperformance. So you cited I was just wondering could you discuss maybe what the prior spacing assumptions were and what it might look like going forward based on.
These results.
Hi, Jeffrey it's Mike here, yes prior.
We had 13 1300, 20 foot inner well spacing in refining putting a well in between so going down to 660 foot and actually even testing tighter than that we're seeing us and also you need to understand we're going with.
Larger.
Completions going so up to 700 pounds per foot and what we're seeing is significant improvement over the parent well performance and in fact, we're also seeing enhancements in the offsets apparent wells.
Basically improving production after their frac hit by by the child, well, so things are really encouraging.
In the Williston Basin, and we're pretty excited about some of the well results were seeing.
Okay, great. Thanks for the color I appreciate it.
Our next question comes from the line of Neal Dingmann of Suntrust. Please go ahead. Your line is open.
Good morning, Doug and a great color this morning, Doug.
Versus what's your for I guess, if you go into 2020, maybe even 21 kind of a general leverage target and then how do you balances with any potential additional share buybacks.
Yes, Neil it's a good question there the we said pretty consistently at mid cycle pricing that we'd like to be 1.5 times are less as I mentioned I think earlier in the previous question, we're probably a bit under midcycle pricing today, which would mean that the leverage looks a little.
Higher but of course, the other things you have to consider in this is.
His liquidity and you also have to consider when our when our debt is due and we don't we don't know our next debt is not due till.
In 2021 end of into 21, so we look at that what it means is we're comfortable where it's at.
I see the businesses generating free cash flow at the moment.
So we see it naturally de levering through time, and we're very comfortable with that so we don't think we have to do anything dramatic.
To get to that sooner. So we want to get to that one five or under in the business, we'll do that naturally and when we combine that with the liquidity into in the desk schedule. It feels very very doable to us.
Okay, and then last follow up you have certainly seen some nice improvements for the acute development and Anadarko Im just wondering do you have an idea of what.
Ultimate spacing will be in key areas of this play is this becomes more mature.
Yes, I think in it.
You had if you had a typical it's probably the six to eight were doing today.
It will vary a little bit based on the local geology and the sickness and other things that's true and every play Thats why we we always be a bit cautious about about putting a single number out there but.
The development pattern in spacing the stacking in spacing piece said, we're using today feels about right in it may move a little bit but does it feels like the base case.
And of course this is something.
On our stacked it into January will talk a lot more about but.
What we're seeing is very consistent results using that spacing and and then you. Some performance improvement which were actually believe is tied to the completion design we are using.
Very good thanks for the time.
Our next question comes from the line of Marshall Carver from Heikkinen Energy Advisors. Please go ahead. Your line is open.
Yes. Good morning, I saw the costs were coming down in the guidance a little bit of a downtick on cost per view, we which which costs that youre seeing improvements on just wondering if of color on whether thats.
Hello.
DNA or what.
Yes, Marshall, it's actually in essentially every bucket.
We've had great progress here, obviously, you know the GE at Ace come down significantly, whereas we've raised the synergy target from the original 125 million per year to now $200 million per year.
Seeing that flow through.
One of the things.
That may be overlooked in places just how efficient. This organization is I mean, we produced 600000 BOE is a day with 2500 people and by the way we essentially operate everything we do.
Which means that.
What were we don't get to that head count to letting other people run the activities, we do that ourselves.
The constant focus on efficiency improvements and innovation, it's actually had a direct impact on our elderly across the business.
And our team Pbteen, we're always trying to optimize the value for the product receipt that we receive and where we sell it with the cost to get into those markets. There is a bit of given taken there because in the ended the day in that bucket. What we're really trying to do is the maximum realized price after cost in but we are seeing it right across the board and every day.
Bucket.
Okay, Thank you and and when you're thinking about modest liquids growth.
Okay.
You have any extra color on what you think of modest is that.
High single digit low single digit or.
Any extra color there.
Yes. It of course, the trickier isn't is not to guide guide but.
This will be kind of mid single digits is sort of the range exactly what that number is it's little too early to tell as we optimize we also need to see over the next couple of months, how the commodities shakeout.
As well and of course, we've updated our.
The status of our hedge program as well, which has some impact and so I don't want to give you a precise number because I need to actually have some sense of where price and cost SAR and then and then we're very clear we're going to generate free cash in in 2020.
And how we toggle growth against the commodity price to make sure. We get there is what we're finalizing on now.
Alright, Thank you very much.
At this time, we have completed the question and answer session and we'll turn the call back over to Mr. Campbell.
Thank you operator, and thank you everyone for joining us. This morning. We are currently excited about today's results and look forward to seeing on the road ahead. Thank you.
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