Q3 2019 Earnings Call
Good day and welcome to the elite third quarter to doesn't in 19 financial resource call.
Trace call this being recorded.
Certain statements contained in this conference call that are not descriptions of historical facts or forward looking statements such as terms to find in the private Securities Litigation Reform Act of 1995.
Because such statements can include risking uncertainties actual results may differ materially from those expressed or implied by such forward looking statements.
Factors that <unk>.
That could cause resorts to different material from those expressed or implied by such forward. Looking statements include but are not limited to those discussed in findings me by the company.
<unk> and Exchange Commission.
Many of the factors that would determine the company's future results are beyond the ability of management's a control or predict.
Listeners should not please undo reliance on forward looking statements, which reflect management's views on me as the date heroes.
The company under takes no obligation to revise or update any forward looking statements or to make any other forward looking statements, whether as a result of new information future events or otherwise.
For opening remarks, and introductions Oh now like to turn the conference over to elite President and Chief Executive Officer, Alan or Hodnik. Please go ahead.
Oh, good morning, everyone and thanks for joining us today.
With me or Alletes, President Anthony Owen.
Senior Vice President and Chief Financial Officer, Bobby Adams.
Vice President controller, and cheap accounting officer, Steve Morris.
Today, we reported Thirdquarter 2000, a 19 financial results are 60 cents per share a net income of $31.2 million.
These results are in line with our expectations for the quarter.
Importantly, we have significant momentum on a leaks multi dimensional growth strategy as we approached the end of 2019.
Anticipate the started a new year with tremendous enthusiasm.
With several large a transformative projects successfully wrapping up in 2000 in 19 and on the heels of record construction and significant capital investment in additional carbon free energy infrastructure.
It is very well positioned for growth.
Elite continues to answer the call to transform the nation's energy landscape.
And as a new decade soon done we envision the path we are on to accelerate.
For further details on a leads positioning growth initiative and execution.
Altering the call over two elites president.
<unk>.
Thanks. Thanks.
Thank sounds good morning, everyone.
These companies have been busy this year advancing a record setting level of construction and supportive cleaner and more energy efficient energy sources.
Stability is a very foundation of our strategy and at least we start our day with caring consideration for the environment the customers and our communities that we serve as well as are talented employees, while delivering value to our many stakeholders.
Our strategy is driving significant transformation and growth across all of a leap isn't it that.
At Minnesota power, we've been thoughtfully advancing are clean our energy forward strategy. We are pleased to report that Minnesota power currently provides 30% renewable energy to its customers and is on track to provide 50 per cent renewable energy by 2021.
As a result, Minnesota power is number one of all utilities and the state of Minnesota and number two and all of the Midwest and the percentage of renewable energy provided to customers.
At the same time the company currently has the lowest residential rate in the state.
We are actively engaging with all stakeholders regulators customers communities employees and policymakers alike, as we speak to strike them right balance to ensure reliability and affordability for all of our customers Wow meeting societies cleaner energy objective.
As planned on November 1st, Minnesota Power filed a request with the Minnesota Public Utilities Commission to increase its retail electric rate.
This rate filing is important to ensure that resiliency of Minnesota power system and continued to clean energy transformation, while keeping raids affordable and competitive for all of our customers.
We look forward to working with the Minnesota Public Utilities Commission, our customers and our many other diverse stakeholders throughout this process to ensure the best outcome.
Stable share more details on the Ratecase filing as well as details on the quarter in a moment.
Minnesota powers mining customers have made significant capital investment in northeastern Minnesota operation that also support cleaners filmmaking enhanced appellate products that can be utilized in electric arc furnaces are in high demand and are expected to be key components in the future as to stay.
Anable filmmaking.
Related to enhance pellet production Cleveland class recently completed the upgrade of their north shore plant that operates in northeastern Minnesota and is already producing D.R. grade pellets for their new H.B.I. production plant in Toledo, Ohio.
Related to new nonferrous metal mining in Minnesota polymath is targeting construction and 2020 with the project expected to be operational and 2023.
He met plans to operate one of the largest on mind precious metal reserves and the world the.
The materials, probably met plans to mine are critical ingredients for most of the clean energy solutions needed to address climate change.
Polluting wind turbine electric vehicle battery storage and other energy efficiency products and services.
We believe that northeastern Minnesota mineral district is well positioned for a promising future and an increasingly important role in the clean energy economy.
I'd like to update you on some of the leaves growth initiative.
A significant addition to a leaf strategy is the company's planned 190 million dollar investment in the nobles to project construction is well underway on this project, which will deliver 250 megawatts at least cost renewable wind energy to Minnesota powers customers beginning inlaid 2020.
The intermittent nature of renewable energy sources requires an enabling backup source of generation.
Imagine Trail Energy Center natural gas project will provide cost effective enhanced reliability as a supplement to renewable energy generation.
This 700 million dollar 550 megawatts plant will be jointly owned with Darland power cooperative.
Final approval that permits are expected during the second quarter of next year.
We anticipate significant investment opportunities and transmission and distribution with the transformation of generation to more renewable energy sources, there's a growing need for enhanced delivery infrastructure.
Already identified areas include expansion of large scale transmission capabilities.
Overall grid modernization, and resiliency improvements and physical and cyber security measures.
In our latest cap X. projections, we have increased our anticipated investment in the H.B.D.C. line by $100 million and expect to further increase our cat backs for improved resiliency of Minnesota powers distribution system.
We anticipate sharing more information regarding the size scope and timing of these projects in the first quarter of 2020.
Minnesota power is in the last phase of construction of it's great Northern transmission line. The G.N.T.L. will support delivery of 250 megawatts of carbon free Hydro electric energy from Canada with completion planned in 2020.
Minnesota powers total investment in this project is approximately $325 million and is already contributing to financial results through current cost recovery.
In addition, elite continued to make investments that support the company's 8% ownership interest and American transmission company as it addresses reliability needs in the upper Midwest.
Turning to elite clean energy, we are excited about the significant contributions to a clean energy economy that a leap second largest company is making with more than 550 megawatts at existing wind generation a lead clean energy is adding nearly 500 megawatt a new generation.
But the total investment of over $700 million by the end of 2020.
The Glen Ellyn Energy Center, and South peak wind facilities are expected to be answered as near the end of 2019 and will significantly contribute to elite earnings in 2020.
Not far behind and a leak clean energy is project pipeline is the 300 and megawatt Diamond spring wind facility.
This project will serve fortune 500 companies, including Walmart, Starbucks and Smithfield food.
Diamond Spring is expected to be operational and late 2020, and we'll begin to contribute to a leads earnings in 2021.
A leak clean energy has outpaced our original growth expectations file adhering to strict criteria and a disciplined approach to ensure high quality projects.
Business was launched just eight years ago and is growing to be one of the nation's largest clean energy players with a goal to own and operate at least 1500 megawatts by 2022.
You can expect further progress on a leak clean energy strategy in the coming quarters, driven by its talented and growing workforce.
The company is entering a new and exciting phase of growth in scale, which we believe will generate value for a lead shareholders for years to calm.
All of this growth and diversity in our renewable portfolio add to our goal of delivering reliable affordable and cleaner energy for all of a leap customers.
Now Asti, even Bob to go through the third quarter financial details and provide additional information on 2019 earnings guidance.
<unk>.
Thanks, Bethany good morning, everyone.
Like to remind you that we file their 10-Q . This morning, and encourage you to refer to it for more details on our third quarter results.
So the third quarter of 2019 elite reported earnings of 60 cents per share on net income a 31 point to a million dollars.
Burnings for the same quarter in 2018 or 59 cents per share my net income $30.7 million.
Please note that the results for the third quarter of 2018 reflected three cents per share or $1.7 million in earnings from U.S. water services, which was sold in the first quarter of this year.
A few details from our business segments.
Elites regulated operation segment, which includes Minnesota power superior water lightened power and the company's investment in the American transmission company.
Recorded net income a $32.4 million, an increase of $2.6 million over the third quarter of 2018.
Commend, Minnesota power was higher primarily due to higher transmission revenue.
Increased cost recovery ride revenue and lower operating and maintenance expense.
These increases were partially offset by lower kilowatt hour sales and associated margins from retail and municipal customers.
Net income at superior water light in power increased over last year due to higher rates implemented in the first quarter of this year.
<unk> earnings in the American transmission company were higher than in 2018, primarily due to additional equity investments.
Hurting said elite clean energy decreased to point to a million dollars from 2018, primarily due to lower revenue, resulting from decreased noncash amortization relating to the expiration of power sales agreements.
Partially offset by additional production tax credits generated in 2019.
Clean energy is results for the third quarter of 2019 were in line with our expectations.
Corporate another which includes B.I. energy and only properties recorded higher earnings of $1.8 million from 2018.
The increase is primarily attributable to lower expenses and earnings on cash balances.
Alletes financial position is supported by a strong balance sheets that includes a significant cash balance of approximately $100 million and our debt to capital ratio was 42% as of September 30th 2019.
A few comments on the Minnesota power retail Ratecase filing.
Member first Minnesota power file their retail rate increase request with the Minnesota Public Utilities Commission.
Seeking approximately $66 million in total additional annual revenue.
This request is needed to address lower customer demand expiring contracts and increasing operating expenses, such as labour system operations and maintenance.
Pretty taxes and appreciation.
The filing seeks a return on equity of 10.05% any 53.81% equity ratio. If the commission accepts the filing as complete they would authorize an annual income rate increase of approximately $48 million beginning January 1st 2020.
Interim rates are subject to refund.
At this time, we anticipate final rates would be implemented sometime in late 2021.
Handed off to Bob for additional commas on our financial outlook Bob.
Thanks, Dave and good morning, everyone.
As L. mentioned are your today financial results are consistent with our expectations.
Are 2019 for your guidance remains at the lower half original guidance range.
Colors, and 52 or $3.80 per share.
Unchanged from what we provided in the second quarter.
As you May recall, the combined effective challenged wind resources that occurred throughout Mintier Diamond spring development expenses and the fall your impact of deploying cash for growth initiatives, rather than a potential stock repurchase program, where the primary reasons for adjusted 2019 guidance.
I am very pleased with the progress we have made advancing major business efficiency and growth initiatives across all our business units this year and a particularly excited about how these efforts what position us going forward.
As I stated before or teams are highly focused on the fundamentals safety customer satisfaction and the discipline around operations and deployment capital all important building blocks of success.
As we look toward 2020, please know that we will be providing our earnings and dividend guidance at the same time, we issue are 2019 year round results.
<unk> February .
Which is consistent with last year's logistics.
Clearly there are some major drivers to keep in mind as we head into 2020.
First we expect the majority of our growth to come from our nonregulated activities and that most of that growth will come from a lead clean energy.
Growth from that segment will be very significant field by the 2019 year end completion.
<unk> eating megawatt and Glen Ellyn, 106 megawatt wind farms as well as our wind farm refurbishment activities at Storm Lake Lake Benton.
London facilities.
Ace, we'll have completed approximately 90% of its P.T.C. qualified refurbishment work by year round.
Another 30 megawatts to be completed and 2020.
The completion over 300 megawatt Diamond Spring project in late 2220.
We'll lay the beginnings of groundwork for yet another significant upward step change and 2021.
As we have stated our pipeline of potential opportunities to utilize are existing P.T.C.D.'s.
Representing the potential for another five to 600 megawatts on projects.
Remains strong and we are very confident that there will be more project announcements and coming corridors.
Some of which May also originated from a creative acquisitions.
Last quarter, I said I felt the league clean energy is objective of adding one to two projects per year was conservative.
I made the statement given our track record of consistently exceeding that level in recent years.
And the depth and breadth of our deal pipeline.
Elite clean energy is expanding geographic and market scope as evidence most recently by the Diamond Spring project and our entrance into the C.N.I. market, serving Mark key customers like Walmart, Starbucks and Smithville foods as Bennett true game changer.
With this in mind in after significant discussions with the elite clean energy management team. We have now upward revised our new project guidance from one to two two to three projects per year.
On the regulated business or focus will continue to be on timeline and cost effective completion of the G.N.T.L. transmission line.
We will also continued work to advance or nobles 215 megawatt when facility ANTEC gifts generation plant, which are expected to be completed and laid 20 and 25, respectively.
Moreover, 2020 will be at critical you're working with the M.P.U.C.
Key stakeholders and intervenors on our Minnesota power rape case, which do mentioned earlier.
Or balance sheet remains strong and only minimal equity issuance needs are expected over the next several years based on current projections.
Indeed alletes.
Now generates substantial free cash flow, which is expected to ramp up significantly in coming years, as we complete new initiatives.
As you know, we're utilizing the tax equity market for financing, our new P.T.C. qualified projects, including nobles, so pig Glen Alden and Diamond spring.
And I'm pleased to report that we have recently completed a competitive bid price says for our 2019 2020 projects and we have found a tax equity markets to be robust.
The bottom line is that a leads differentiated growth strategy focused on the customer and clean energy demand Trans is working and continues to gain momentum and I'm, particularly proud of our dedicated and hard work and employees who are at the core of this success.
Oh.
Well, thank you for the strategic and financial updates Bethany Stephen Bob.
I could not be more pleased with our progress and our strategic positioning within a lead.
Whether close to home with our regulated operations or across the country with the tremendous expansion of a league clean energy, we are well equipped to be a solutions driven organization driven by some of the most creative talent in our industry.
More importantly lead continues to execute where they rate results right. We eat those and we'll continue as it has over its long history to effectively balancing the needs of all stakeholders, while delivering value to each.
Our five year capital investment plan in excess of $2 billion and growing will deliver a meaningful solutions to meet the significant and increasing demand for clean energy infrastructure and grid reliability.
Maintaining overall affordability and generating an attractive value for shareholders.
Alletes family of differentiated businesses are positioned to grow.
The way natural resource based economy here in Minnesota that underpins, a clean energy economy or through the accelerating demand to deliver cleaner energy across the country.
The new decade ahead is more than in the windshield and the stages set within a leap for an exciting future.
A new generation of talent is stepping up and Bethany and I are fully confident in the teams ability to execute a leads next generation growth strategy.
Vision and strategy that will further transform our nation's energy landscape well, taking the lead to new Heights.
We look forward to sharing the next chapters with you in the first quarter of 2020.
At this time I will ask the operator to open up the line for your questions. Thank you.
As a reminder to ask a question you will need to press star one on your telephone to withdraw your question. Please press the pound key.
Please stand by we compiled the <unk>.
And our first question comes from a line of Christopher Turner with J.P. Morgan. Your line is now okay.
I want to guys. Thanks for the the update.
I think Steve you gave some helpful qualitative kind of color on the driver's for the Ratecase ask wondering if you might be able to quantify some of those items.
In terms of the expiring contracts.
Northern line demand charge as well.
And kind of overall.
For rape case here and you have made a lot of Oh, one m. cuts.
So the power since the last case kind of wondering how that flows through everything.
Yeah. Thanks for the question, Chris we'd prefer not to answer the detailed questions right now, we can probably get into that a little bit later potentially I.D. I.
Okay.
Can you give us a little bit of a sense at least for 2020.
The impact said in term rights might have on your year over year, Minnesota power gross.
Yeah. So for 2020, we're going to assure guidance in February we'll we'll do it at that point in time of course, you know this rate cases in a huge.
Driver to our our girls or.
Rate base is still generally about 2.1.
Billion dollars as it was in our last Ratecase.
Okay.
So.
Hard to follow in February Chris when we assure guidance for the year.
Okay.
Certainly appreciate that there's a lot of moving parts in this process.
And then you know clearly you touch accessing the renewables fronts and.
Comments or or nothing less than enthusiastic about what is to come early next year for for future projects I'm, just wondering how you view buying projects versus developing.
Yourselves kind of organically there you mention that some purchases might be in the queue here and I know you've done some of those in the past but.
Think about that how do you think about your competitive advantages.
Sure well <unk>.
I would tell you that.
You know as we look at our pipeline presently the the the mix of sort of those that are sort of P.T.C. new projects versus acquisitions.
Are are pretty balance now so where we may have been more focused on P.D.C.'s.
We have quite a bit of effort looking at existing assets known as you know that's how we started a business. So so I would say robust on both ends of that.
We continue to focus on projects that are a bit smaller in size. If you will uttered megawatts 200 megawatts is in our sweet spot and.
The projects that we I can tell you that we've been evaluating continue to meet our criteria or underwriting criteria in terms of margins and returns and those kinds of things. So so it is a competitive market, but but but we continue to believe by virtue of.
Where we focus in that market.
My virtue the size of the deals that we're going to that we're in we're in a good position to continue to meet the underwriting criteria, we've said for it.
Okay and kind of.
You're talking about at least a little bit in your comments so far.
There there's no slow down there as you kind of move through your your safe harbored assets and kind of you know two focusing more on the tax equity markets versus using any kind of organic tax appetite. You previously had yeah. No. That's that's actually an interesting question because.
We are actually very uniquely positioned were finding out the 80 per cent Vtcs. For example were one of the few.
Companies that went.
You know took of a large position there are so we have a lot of inbound interest on different from the developer standpoint that have projects.
But don't have the P.T.C., so we're getting a lot of interest there.
At the same time, there's entrance into the C.N.I. market, you know with Walmart and Starbucks.
Oklahoma that is also spurt a lot of inbound interests from other it from the C. and I market. So I would say sort of characterizing sort of the nature of where he said study as it relates to involve interests and momentum insignificantly stronger. Even then it was a year ago.
Okay, great to hear thanks Bye.
Alright, Thanks, Chris.
Thank you and our next question comes from the line of Brian Rousso <unk> as long as an open.
Hi, good morning.
He just to clarify the the comments.
On two to three projects from the previous you know kind of.
Vacations at once a two projects what does that imply for for 2020 is time in Springs, you may have accelerated some project.
<unk> shall we expect two to three projects and 2020 or still a one to two which includes Diamond springs.
You know we're so we of course Diamond Springs is late was going to be late 2020.
So as you look at as you look at 2020.
Looking at South pigs are we got <unk> projects that are going to be the major contributors there.
Brian were also.
Still do have a window on 100% P.T.C. and the team is looking at other potential projects that could potentially fit there it's getting tight but I want you to know we're still working on that too.
So really is beyond beyond diamonds springs, or what I just had about 2020 as we look and 2021 going forward is really we're we're we're we're looking to ramp up project levels to that two to three level.
Okay got it so it's post it seems like 2020 development pipeline is kind of intact with Glenn Ellen and South peak and then dot in the spring. So the incremental projects is more posts 2020.
That's right that's right.
Okay, and then just from industrial customers I noticed in the two that.
U.S. deals I believe it's them in tech is is idled.
Beginning in the second week of October .
And he saw traditional color on that and what we might expect from upcoming demand nominations. Although you don't issue an A.K. on that anymore.
Yeah. Brian . This is also so U.S. deal had planned on taking one of their lines down for maintenance line number three so don't want to confuse sort of a.
Segmented there I operation out there line three with the entire operation. The operation continues they took down line three.
That was planned maintenance in the fall what they've signal to publicly they're going to extend that.
<unk> so do the outage work and also extended we don't have any information about what it looks like off into 2020.
And continues to be fairly strong force deal in the U.S. at least there you know importation of steel is down obviously, our pricing was impact could you probably saw that across the entire sector.
So, but the man of the United States continues to be strong. We think 2020 is going to be a strong here yet for steel demand in the U.S. and by extension or production on the range.
Right, Okay, and then just giving your forward test year, and the Minnesota power Ratecase any adjustment or.
Future adjustments to industrial customers demand based on the economy or steal et cetera can you capture those changes when you update your sales forecast with the 21 2021 test year <unk>.
Well, it's it's alright.
And this is Steve more so it's a 2020 test year.
Sorry.
Yeah. So if if we were to get demand nominations come in December 1st which were less than what we have in this test year, we would ask the commission to adjust that I'd refer back to our 2016 rate case, where we filed with the 17 test year without keetac in.
And they came back during the first few months since we filed and we put that back in so.
It would be this similar if we had less than what we filed with we would ask the commission for an adjustment.
Okay very good and then just comments on the cap kept acts of 100 million is that included in your last.
Publicly available cap x. table, whereas that incremental.
That is incremental.
So that would be in addition to the 200 and we will be taken the 280 million to 380 million.
Okay count it great.
And then just some little more insight into the loss.
<unk> in the third quarter, I know to low resource quarter, but it just.
Then the year to date results kind of an apply.
A you know fairly pick pick pick up in the fourth quarter to reach even the lower end of of of your your guidance.
Just.
You can give us you know more color, there and and greater level of confidence that you can achieve that.
So this is Steve Morris again, Brian So yeah. They did have a lost in the in the third quarter, but that was I was expected their their results.
Were less than a penny of from what we had in our forecast so very close to what we expected. It is good movie the lowest quarter that they have.
Just from a wind perspective course that'll pick up next year with more refurbishment P.D.C.'s.
Glen Alden so speak the fourth quarter is one of the largest quarters that they have so I won't be anywhere near reflective of what it is the third quarter I would look more to the first quarter of what it was this year.
And that assumes probably a lower wind.
We had in the first quarter, so we'd probably be pick up from that so we would expect a significant quarter the fourth quarter from a lead clean energy.
Okay, and then just lastly poly Matt.
The the assumption that it might be 40 to 50 megawatts.
New demand can you satisfy that with your existing portfolio or would that be you know what your needs incremental capacity to to to support that that growth.
No. This is l., Brian we can satisfy that with what we have currently in in the stable.
Okay, great. Thank you very much.
Thank you Brian .
Thank you in our next question comes from the line of the Dula Witchy with Avon. Your line is now open.
The morning.
Good morning, whenever do <unk>.
Let's see I'm wondering in terms of you know the a rate filing can you can you help us like say.
Detailing 12, that's now.
Yeah, you can sort of D.R.
Minnesota power versus the <unk> request.
Yeah I wouldn't.
So I would use a roughly a 9% so interim rates are at nine to five.
Oh, you can't get your full requested that channel five so to the 2020.
Interim rates are at nine to five.
But there's also some expenses that you can't get so ideas roughly nine.
And that and and that's that's <unk> going forward Wild cases, that'd be the judicate. It but currently if we were to look at the trailing 12th September 30, what would you say is the.
Yeah. So our guidance for 19 was also a roughly nine nine to five.
Okay.
And I apologize if I Miss this but did you address <unk> and without stance.
I didn't quite catch that could you repeat that.
Oh, yes, some <unk> I've met Mr. But did you have you dressed or can you redress.
Hobby metallic so you know opportunity in terms of you know an additional industrial load.
Yeah, but it will I appreciate the clarity there's a number of things that are reference says moussavi up on the iron range and so.
That I understood you were talking about the Metallic's project. So let me tell his project is still in a bit of limbo, what the state of Minnesota.
We have a contract with the city of Nashwauk wholesale contract through 2032, I believe so nashwauk serves that load, but we have the contract with Nashwauk. So we're continuing to watch it right now in terms of its pattern with the state of Minnesota and of course, we would have the resources to supply that load when when any up that construction <unk>.
And operation clarity <unk>.
And do you have any you know milestones for us to to keep an island.
<unk>.
Well the only milestone at the state of Minnesota has laid out in the moment is a milestone late in December of 2000, a 19 that rysavy metallic's ownership was supposed to be at a certain spot <unk> construction and operations and if they were at that spot done. This date would be interested in extending the leases.
And working with the company if they weren't at that spot. Then this date would have another juncture point, where they would step back and take a look at it you don't have any additional updates on where it sits right now with the state of Minnesota.
And <unk> Ace do we're discussing.
Continue to interest in push on the hundred per cent P.T. sees it but that the window is kind of getting a little tight here I mean based on what you've been seeing or whatever do you anticipate that by by the end of the year, perhaps that.
Would have an announcement of the project.
Be able to utilize the 100% P.T.C. turbans.
Well we're.
We're we're working hard at it obviously, we have we have some projects that we are working now that would fit into that category I can't get any more detailed than that I would tell you that the projects are advanced enough. So we know what the returns are we we've had a advance conversations with.
Update occurs in this case a utility offtakers.
But we're not quite done there. So it's it's it's possible, but I can't really say anything more about it.
Alright, thank you.
<unk>.
Thank you and as a reminder, ladies and gentlemen, if you would like to ask a question you wouldn't eat depressed star one on your telephone.
The next question comes from the line of Paul Fremont with them as well.
<unk>.
Thanks, If you go back to the second quarter call. I think you guys had said that.
Renewables and infrastructure businesses are expected to drive substantial growth over the next five years potentially.
Feeding our 5% to 7% average annual growth objective is that something that you would still expect alright, alright, this quarter on a going forward basis.
Yes, yes, Paul that is still that is still the case as we look forward and we'd look hard at at our obviously, our five and 10 your plans.
Seven expression is over the next five years and we're very competent in the end up being on the higher end of that range yes.
Okay.
Obviously depends potentially on on the outcome in the in the late filing at Minnesota power.
Yeah, there were some of some of that would be dependent on that.
Although you know we're <unk>. We you know we've taken a you know a hard luck at what what we expect.
A reasonable outcome will be so that's been factor that's been factored in there.
Okay, and then with respect to Diamond spring.
All of that kind of come online at the end of 2020 or is the peace that's serving the industrial customers that come on a at a later date.
They all comes in a later 2020 Paul.
A great I think that's all in terms of my question. Thank you. Thank you ball.
Thank you and these concludes today's question and answer session I wouldn't I like to turn the call back to Bethany Owen at least president for any for the for March.
Thank you for your time with US this morning and for your interest in elite five Steven I look forward to seeing many of U.N.E.I. financial conference in a few days.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you mean now disconnect.