Q4 2020 Summit Midstream Partners LP Earnings Call
Welcome to the Q4, 2020 Summit Midstream Partners LP Earnings Conference call. My name is Rebecca and I will be your operator for today's call.
At this time all participants are in a listen only mode.
Later, we will conduct a question and answer session. During the question and answer session. If you have a question. Please press Star then one on your Touchtone phone I will now turn the call over to Ross Wong Senior director of corporate development and Finance Ross you may begin.
Thanks, operator, and good morning, everyone.
You don't already help of copy of our earnings release that was issued earlier. This morning. Please visit our website at Www Dot summit midstream Dot com, where you'll find it on the homepage events and presentations section or quarterly results section.
With me today to discuss our fourth quarter of 2020 financial and operating results and see.
He's done a key our president and Chief Executive Officer, and Chairman, Marc Stratton, Our Chief Financial Officer, a lot of other members of our senior management team.
Before we start I'd like to remind you. The our discussion today may contain forward looking statements. These statements may include but are not loaded to the restaurants the future volume.
Operating expenses and capital expenditures.
The May also include statements concerning anticipated cash flow liquidity business strategy and other plans and objectives for future operations.
We believe that the expectations reflected in such forward looking statements of reasonable.
We can provide no assurance that such expectations will prove to be correct per.
The our 2019 and annual report on form 10-K, which was filed with the FCC on March nine 2020, as well as our other SEC filings for a listing of factors that could cause actual results to differ materially from expected results.
Please also note that on this call we use the terms EBITDA adjusted EBITDA and distributable cash flow. These are non-GAAP financial measures and we've provided reconciliations to the most directly comparable GAAP measures and our most recent earnings release and with the.
That I will turn the call over to Heath.
Great. Thank you Ross good morning, everyone. Thanks for joining us for our fourth quarter, 2020 earnings call.
Earlier. This morning Summit reported fourth quarter 2020, adjusted EBITDA of $61 8 million, which was in line with our expectations and represented an improvement of approximately $2 million over our third quarter results on.
On a quarterly financials were influenced by a variety of factors, including strong performance from our Utica and Ohio gathering segments, including the return of more than 50 million on a day of production net of summit, which was shut in and the third quarter. We also brought on eight new wells that were connected car and Williston and liquid system and we continue to gain.
And cost reductions across our back office and field operations.
Our Utica in Ohio gathering segments experienced quarter over quarter volume increases of more than 20%.
And then and the aggregate produce an incremental $2 6 million of adjusted EBITDA relative to the third quarter of 2020.
For the full year summit generated $252 1 million of adjusted EBITDA, which was within our guidance range that we've established and July that reflected the implications of the COVID-19 pandemic, the lower commodity price environment, and the slowdown that we expected and customer activity across our.
Footprint.
We continue to generate a substantial amount of cash from our primarily fee based a low capex business.
And during the fourth quarter, we generated $37 4 million of free cash flow based on $51 8 million of cash flow from operations.
$7 8 million of capital expenditures, and a $6 6 million cash investment and double Lee and.
The total for the year, we generated approximately $135 million of free cash flow, which enabled us to pursue strategic and accretive opportunities for our stakeholders as demonstrated by the series of liability management related transactions that we executed throughout the throughout last year.
Given our portfolio of 60 contracts, our continued emphasis on financial discipline and extracting operating efficiencies and we're very well positioned to continue to generate a meaningful amount of free cash flow going forward, even if there is and extended challenging macro environment. One other important matter and today's earnings release and I wanted to touch on is the 17.
Dollar of contingent loss that the partnership of crude during the fourth quarter of 2020.
The background this accrual relates to the previously disclosed incident dating back to 2015 and <unk>.
Bob the rupture of the four inch produced water disposal pipeline on our metal system and the Williston basin.
Since discovering the rupture in January of 2015, the partnership and its affiliates have spent nearly $75 million on environmental remediation cost and preventative system improvements associated with this very unfortunate incident.
We refer to this as the middle of rupture and our financial reporting disclosures and I.
And I encourage readers to the reference annual and quarterly disclosures that we have provided on the subject dating back to 2015.
Since the incident occurred and we've been engaged with federal and state agencies and the U S Department of Justice regarding the resolution of potential criminal and civil violations under statute such as the clean water Act.
At this point it remains unclear if a resolution to these potential violations could be achieved through a negotiated settlement or through litigation.
And the timing of any resolution is unknown at this point.
However, the comply with certain GAAP requirements, the partnership of crude a $17 million loss contingency and the fourth quarter of 2020.
And we continue to believe that the loss is probable at this point and time due to the complexity of resolving the issues surrounding this matter, we cannot reasonably predict whether any actual loss if incurred will be materially higher or lower than the accrued amount.
During the fourth quarter, we continued to execute successfully on our liability management of initiatives and.
Total, we eliminated more than $350 million face value of our recourse fixed capital obligations, capturing the weighted average discount of roughly 67% and this was done through the repurchase of our 2025 notes and the settlement of the $180 million deep PPO and conjunction with closing of the term loan restructuring transaction.
And also the cash tender offer for $75 1 million of our series a preferred units.
In total for 2020, we retired more than $625 million of recourse fixed capital obligations, which included a reduction and summit indebtedness by over 138 million and <unk>.
And we also were able to extinguish our GPS of $155 $2 million term loan.
We capped off our 2020 liability management program in December of 2020.
<unk> and amendment to our revolving credit facility that provides additional features to support the next phase of our liability management program.
Which will largely focus on our 2022 debt maturities the.
<unk> added $400 million junior lien basket under our revolver provides us with another option to recapitalize our balance sheet.
Further the revolver Amendment also increased our total leverage covenant threshold of 575 times, which provides summit with additional financial flexibility and covenant headroom.
And what we expect that could be a continuation of the challenging market environment into 2021.
Now that we've completed the first phase of our liability management initiatives and with the revolver Amendment in place we are turning our attention towards addressing our 2022 debt maturities, including the senior notes and the revolving credit facility.
We are focused on developing a comprehensive and long term solution that we believe will provide us ample flexibility and liquidity over the next several years to continue to delever, the balance sheet and position the business to excel as commodity prices improve and the future.
We recognize the high yield markets are currently robust and we are evaluating multiple financing options, including but not limited to using and up to your exchange.
We raised the new gold in the form of secured debt and hybrid approach of the two.
Over the past few months numerous leading financial institutions have proactively reached out to us and expressed interest and being involved and summit suture liability management program.
Graham and the related transactions.
While we have yet to decide on the exact path, we're going to take the key takeaway is that we believe there and a lot of options are very attractive and viable options available to summit to refinance these maturities I would also like to note that while addressing our debt maturities in 2022 maturities as the focus we will still continue to look for opt.
Attunity to capture further value throughout our entire capital structure, which we believe will even further enhance our financial flexibility on down the road.
We have continued to make great progress on the double E pipeline project, having received all necessary farsi and BLM approvals to proceed with construction and we're also as previously announced secured bank financing commitments for the project with the receipt of the notice to proceed in January we have initiated construction activities and the.
To bring the project online during the fourth quarter of 2021.
The team has also continued to make great progress, reducing and de risking the overall project budget.
We continue to expect the <unk> will be completed at or below our current $425 million capital budget. As a reminder, when we started the project.
The project.
And the original capital budget was 500 and and we have.
Since reduced at the $4 25.
As of February we had approximately $35 million of unidentified project contingency remaining and the budget, which could lead to further realization of capital savings.
As previously announced our wholly owned unrestricted subsidiary summit Permian and transmission received $175 million of commitments from three leading commercial banks to finance the development of <unk> and early February.
We expect this financing to fully fund summit is estimated $150 million investment and the project for 2021.
This was a very important achievement for summit because it allows us to advance the <unk> project without utilizing the additional cash for the message lp's balance sheet, which thereby creates more financial flexibility and a clear path to continue and enhancing the balance sheet and the near term.
We are very excited and well on our way to bring this important northern Delaware pipeline into service later this year.
Not only will this project provide a cost effective gas transportation solution for our customers and providing and great access to attractive downstream markets.
But it will also benefit the local communities economically and it will also help improve the environment by reducing the need for flaring and both Texas and new Mexico.
And shifting to our 2021 outlook and guidance.
In mid February we disclosed 2021, adjusted EBITDA guidance of $210 million to $230 million. This.
And this range is down from the $2 52 of.
The additional I'm sorry of the adjusted EBITDA that we generated in 2020.
And this was primarily due to an expected slowdown of customer activity together with an approximate $10 million reduction and MVC shortfall payments sort of.
Look as I committed to do and the path, we set the 'twenty 'twenty, one financial guidance with the objective of being very transparent with our stakeholders about our expected results and also setting of realistic range that we believe includes appropriate risking to our customer development plans.
Mark will speak about some of the detailed segment level of assumptions later in the call, but at a high level I'd like to summarize some of the key considerations behind our 2021 outlook.
And developing guidance, we took a similar approach the last year and use the latest drilling and completion schedules and production forecast that we've provided by our customers as the starting point.
We also then applied some risking the assumptions at the at the midpoint of the range and then we apply it even further risking and at the low end of the range.
For 2021, we're expecting $45 to 75, new wells to be connected to our systems and 2021, which compares to 140 wells in 2020, and 262, new wells in 2019, and 334 wells and 2018, so so 2021.
It's definitely a low.
Amount of activity for us and 2021 and I'll come back to that here in a minute.
So look while we think this is the abnormal low amount of activity. We believe that this is the most probable range given the data and we have at the moment.
There is a clear line of sight to these wells coming online and approximately 75 per cent of the new wells that are included in our forecast.
At the midpoint of our either drilled or are currently being drilled.
The remaining new wells at and our forecasts of have active permits and have recently been affirmed by our customers to be included in their 2021 capital programs.
We expect limited 2021 activity by higher systems, and the DJ Permian and Williston basins. However, we do believe we could see some upside from.
These areas as oil prices continue to increase.
As a reminder, there's a bit of a lag and.
And response time for our customers to bring new wells online.
Despite the recent rally that we've experienced in the oil and gas prices and we're very hopeful that this improving commodity outlook will drive further drilling activity. During the second half of 2021 that will certainly benefit us towards the end of the year and as we head into 2022.
Now for some additional commentary on the book ends of our guidance range now of our customers achieve their stated plans and expected IP rates, we would expect to achieve the upper end of the guidance range of roughly 230 million.
And as a preamble and she said we spent a lot of time evaluating those customer plans looking at potential volume risks.
And as well as schedule risks and the lower end of our guidance range at $2 10, that's reflective of what we believe to be a substantial amount of risk into the timing of those new wells and the related the corresponding volumes.
And as I previously mentioned the guidance also includes the step down of the roughly 10 million of.
Lower EBITDA and 2021 versus 2020 as a result of some contractual MVC roll offs.
And also given our emphasis on capital discipline and free cash flow generation, we expect total growth capital expenditures of $10 million to $25 million.
Which is inclusive of approximately $10 million for maintenance capital expenditures.
The majority of this growth capital has to.
To accommodate near term volume growth and the Utica segment as a result of the incentive agreement that we put in place with the customer last year.
So, although we expect our top line metrics to soften relative to 2020, we still expect to generate sufficient cash and 2021 after interest expense and all capital expenditures to reduce outstanding indebtedness by approximately $130 million to $150 million.
While it's not included in our guidance range. We also continue to have construction constructive conversations regarding divestitures and potential joint venture opportunities.
Within our legacy and core focus area of assets and we have.
We certainly have seen a renewed interest and activity certainly as we've seen commodity prices strengthened recently, particularly on the on the natural gas side.
We will continue to evaluate these opportunities very disciplined manner, and we remain optimistic that we can execute and accretive transaction that we believe could further enhance our financial flexibility and strength and strengthen our balance sheet.
And look we also recognize that the 2021 to be ripe for corporate M&A and consolidation theme and will plan to continue to monitor the market closely from that vantage point as well.
And with that I'll hand, it over to Mark to review our financial results.
Great. Thanks Heath and good morning, everyone.
I'll begin with the discussion around the segments that comprise our core focus areas.
And with the Utica shale the SMU system averaged 443 million cubic feet, a day and the fourth quarter and segment adjusted EBITDA totaled $8 7 million.
Was up $1 $3 million over the third quarter of 2020.
A 25, 9% quarter over quarter volume increase was primarily driven by seven new wells that were turned in line and September and the return of 22 million of day of temporarily shut in production relative to the end of the third quarter.
There were 10 Bucks and the Utica shale segment at the end of 2020 and.
And we expect all of them to be turned in line and 2021, including the new four well pad and the next few weeks.
As we've noted previously last year, we amended the gathering agreement with one of our larger SME customers to incentivize accelerated upstream activity and bring forward wells on our system.
We expect this incentive arrangement will be of catalyst for development behind our SMU system over the near term.
Overall, we expect 2021, Utica shale segment adjusted EBITDA to be in line with full year of 2020 results.
For our Ohio gathering segment, adjusted EBITDA totaled $8 5 million for the fourth quarter of $1 $3 million increase from the prior quarter, largely driven by a 21, 3% increase and volume throughput.
10, new wells were connected to the OTC system late and the third quarter and we saw our customers returned all temporarily curtailed production from the third quarter, which was as high of 80 million cubic feet of day net to summit and the third quarter.
We expect our <unk> customers to commission 14, new wells and 2021.
Of which seven have already been drilled and four are and the higher volume dry gas window.
We don't intend to fund the capital contributions to <unk>, and 2021, which will save approximately $8 $5 million of capital from ethanol P.
And we expect this will have a de minimis impact on our equity ownership of Juicy.
Williston segment, adjusted EBITDA totaled $11 $4 million and the fourth quarter of two 4% decrease from the third quarter, primarily due to a change and customer volume mix and the impact from recent contract amendments to incentivize and bring forward drilling and completion activity.
Liquids volumes increased by two 9% to 71000 barrels per day, primarily due to eight new wells that were turned in line during the quarter.
Which were the first new well connections and since the first quarter of 2020.
We currently have six ducks and inventory behind our Williston liquids system and two ducks behind our gas system.
All of which we expect will be turned in line and 2021.
While we expect the limited number of Williston well connections in 2021, we do think Theres an opportunity for increased activity of crude oil prices continue to rise throughout the year.
DJ Basin segment, adjusted EBITDA totaled $4 $4 million and the fourth quarter of 7% decrease from the third quarter due to a seven 4% quarter over quarter decrease and volume throughput to 25 million cubic feet per day.
Quarter over quarter volume decreases were primarily driven by natural production declines and partially offset by two new pads, comprising 10 wells that were connected during the quarter.
As of December 31, 2020, our customers had 20 ducks behind our DJ system. However, we do not expect them to be completed and the near term and for 2020, one we arent expecting any new well connections on our DJ system due to the special situations for two main customers.
One of our customers and the process of being acquired by another DJ Basin focused company.
And they have publicly disclosed that they expect to focus their development opportunities on the acreage outside of our service area and 2021.
Our other large DJ customer has decided to focus its 2021 and development activities and the region the acreage on federal lands and away from acreage contiguous to our service area.
While it's too early to make predictions beyond 2021 preliminary customer conversations indicate that 2021, maybe an anomaly and we expect new upstream activity behind our DJ system will return in 2022.
In addition, Colorado's 2000 and foot setback rule that was implemented and the fourth quarter is likely to impact customer activity in Colorado going forward. However, we don't expect the rural Hereford area, where we operate to be adversely affected by this rule.
Our Permian segment, adjusted EBITDA totaled <unk> $1 million and the fourth quarter of decrease of approximately zero point $8 million relative to the third quarter, primarily due to decreased margins on natural gas and NGL sales of $400000 prior period true up payment.
To certain customers and increased expenses for maintenance conducted during the fourth quarter.
The two 9% decrease the volume throughput was largely attributable to natural production declines.
Our customers currently have two ducks and the inventory behind the Permian system, which we expect will be turned in line and the first quarter of 2021.
And these wells represent the only new well connections in the segment in 2021.
We expect one of our customers to continue delivering 10 million cubic feet a day of throughput in 2021, which should partially offset natural production declines similar to the Williston and there is upside potential for increased activity in our Permian segment, if crude oil prices rise, although the latest feedback suggests that 2021 activities. Our most liked.
<unk> to be focused outside of our service area.
Our legacy areas, which include the Piceance Barnett and Marcellus segments generated $35 $4 million of combined segment, adjusted EBITDA and the fourth quarter, which translated into $34 $5 million of free cash flow after $900000 of combined capital expenditures.
Although there were no new well connects during the fourth quarter, we expect 17, new well connections in the 2021, including the first eight new wells on the Barnett system since third quarter of 2019.
There are 10 ducks behind the systems currently and seven new wells are and the process of being drilled.
Nine of these ducks are in the Marcellus and are expected to come online during the first half of 2021.
Both of our Marcellus and Barnett gathering infrastructure of fully built out the volume growth on these systems will be highly accretive to cash flow generation and could represent meaningful catalyst to an existing mature base of low decline production.
The Piceance system continues to generate significant free cash flow, producing $21 6 million and $87 5 million of free cash flow for the fourth quarter and full year of 2020, respectively.
Although we aren't forecasting any new well connections in 2021, we are actively engaged in discussions with certain customers, who are considering up to 10, new wells and late 2021, which would help arrest natural production declines.
However at this time, we haven't included these wells and our guidance we.
We do expect that our payments segment will continue generating strong free cash flow and 2021 and beyond due to its fee based contracts nbc's and low capex requirements.
Now I'll turn it back to the partnership.
<unk> reported fourth quarter net income of $103 million, adjusted EBITDA of $61 $8 million and DCF of $44 8 million.
Net income was positively impacted by a $124 $1 million gain from early extinguishment of debt related to the open market repurchase of senior unsecured notes and the consensual debt discharge and restructuring of SMP holdings $155 $2 million term loan, partially offset by noncash charges for of <unk>.
And $17 million loss contingency expense.
And a $5 1 million asset impairment charge related to an $8 million sale of compressor equipment, which closed in January of 2021.
Capital expenditures totaled $7 8 million for the fourth quarter, which was in line with the third quarter and included $3 $1 billion of maintenance Capex.
The majority of our Capex was associated with projects and the Utica and DJ segment, including capital to connect a four well pad on our SMU system Thats expected to come online and the first quarter of 2021.
We also made $6 $6 million of cash contributions to double the during the quarter.
For full year 2020, we incurred approximately $63 million of capital investments inclusive of $43 million of Capex for our operated assets and $20 million of contributions to double the <unk>, which was within our guidance range. We.
We don't expect ethanol P to make any direct capital contributions to <unk> and 2021 due to the committed commercial bank financing that was secured earlier, which results in the reallocation of $150 million the SLP, what would've otherwise had to fund.
We had $857 million outstanding under our $1 $1 billion revolving credit facility at December 31, and 2020.
Subject to covenant limits, our available borrowing capacity at year end totaled approximately $105 million and we have approximately $120 million of total liquidity at year end 2020.
Total leverage at year end was five one times compared to the maximum limit of 575 times and first lien leverage was three two times compared to a maximum limit of three five times.
As Keith mentioned earlier, we expect to generate sufficient cash and 2021 after interest expense and capital expenditures to reduce outstanding indebtedness by approximately $130 million to $150 million.
We have already begun to reduce outstanding indebtedness and the first two months of 2020, one which was comprised of free cash flow generation and and $8 million sale of Unutilized compressor equipment and January.
Our revolver balance currently sits at $817 million, which is down $40 million relative to year on 2020.
And with that I'll turn the call back over the Heath for closing remarks.
Alright, alright, thanks Mark.
So look I am really proud of the transformation that the summit team was able to implement and 2020.
This was achieved through a sequence of complex and challenging transactions.
And I'll kind of started with the GP buy in transaction in May.
And closing with a bank amendment and a cash tender for our series a preferred units in December.
As a result of of the 2020 activities, we've been able to fully align our governance structure and public unit holder interest and we now have a fully independent board of directors.
We've also simplified our balance sheet, while generating a significant amount of value for our stakeholders again by taking a strategic yet aggressive approach of liability management.
Furthermore, we achieved several critical milestones on <unk>.
Not only help to ensure that the project will be completed on time.
And as planned.
But it also is with the financing we are now able to do that without further burdening <unk> balance sheet.
Well look while new well activity by and our systems are projected to be at unprecedented lows and 2021, and we do believe that this year will likely represent the bottom of the cycle.
And we're now beginning to see some signs that point to a what could be of substantial recovery of new well activity late in 2021, and early 2022 behind our systems.
And I think those are certainly being spurred as a result of higher commodity prices and really overall improvement in capital markets.
We're committed.
And as always to providing transparency as I said before with our stakeholders and we also believe that our 2021 adjusted EBITDA guidance of $2 10 to $2 30 is very realistic and achievable.
We will remain focused on operating the business under our core guiding principles, which have got and our success and the past and we will continue to focus on those things that we can control, while also employing strategic and financial discipline.
Addressing our 2022 debt maturities and progressing I believe from a development project and operational assets by year and are certainly two of the biggest priorities for the year and.
And I'm very confident that we have the right people the tools and resources in place to achieve those goals.
So I'm extremely proud at the end of what the summit team has accomplished this past year, but I'm even more excited for what lies ahead.
So with that operator, I'd like to turn the call over for questions.
Yes.
Thank you we will now begin the question and answer session. If you have of questions. Please press Star then one on your touch on phone.
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Handing back for questions.
And our first question is from James Carreker from the U S Capital Advisors. Your line is open.
Hi, Thanks for the all of the prepared.
Commentary.
Understanding that you don't want to give 2022 guidance can you talk a little bit about.
Your expectations for double the of the EBITDA contribution once it's online.
Yes, Mark do you want to take that one sure.
James I appreciate the question.
Obviously, our near term focus here is <unk>.
Bringing the financing in place, which as we mentioned will.
Really reallocate capital from what would've otherwise been capital spent on <unk> balance sheet.
Third party bank financing so we're super excited about that the <unk>.
<unk> continues to move forward.
The very.
Efficient manner.
We do expect to bring the project on here by the end of 2021.
And I would think about the.
And the go forward EBITDA contribution from that project is.
Somewhere in a seven to seven five times kind of build multiple obviously, we've laid out the $425 million.
Gross.
On the Bell.
And the budget for <unk>.
<unk> 70 per cent of that is roughly 300 million. So I think I'd, probably pointing to those metrics.
That's helpful.
And I know it is.
Kind of an accounting question, but.
I think the book value per share. According to your financial statements is somewhere north of about $120 per share there are any.
Write downs of impairments to the.
And we expected in 2021 and beyond what you've already announced.
Yes, James the answer is no we feel very good about.
Where the book value of our assets is today and something that we look at every quarter.
And run and analysis on every quarter based on.
On discounted and discounted cash flows from those assets and the cash flow of that those are projected to throw off over time. So.
I think we've we've taken some impairments over the last couple of years as needed.
We feel very good about.
Book value of our assets where the.
They sit today.
Thanks, that's all I had.
Once again, if you have a question. Please press Star then one.
And our next question is from.
Oh of IRA Scotto from RBC capital markets. Your line is open.
Hey, great Thanks and.
Good morning, everyone.
What we're hearing from the public producers are that's the the most parts of not really increasing capex and not really focused on production growth ever.
And does seem like the private companies may be ramping production can.
Can you provide some.
Color there and then just remind us what percentage of your producer customers are private.
Yes, I'll take a stab at that and then I think I don't know.
Have an exact percentage, but we do have a fair amount of <unk>.
Private operators across the footprint.
And I think what I would what I kind of got you to I mean, we are seeing probably a little more activity out of the private side and we are on the.
The public operators, but again, I mean that really across the board and I think as you can see and our guidance and are well counts are down very significantly.
Across the footprint, we do think that is.
And somewhat of a rift.
The reflection of the environment.
The 2020 into 2021 with the very weak commodity price outlook at the time.
I think we just saw a lot of a lot of the.
Slowdown if you will and activity levels I think now that the commodity prices haven't rebounded.
And January February.
We are starting to see and have more conversations that point to activity potentially picking back up as we head and into 2022, and we are seeing that from some of the public operators as well, but and certainly in 2021, I'd probably say there's of the activity that we have is probably a little bit more of that coming from from the private side.
Thanks, and then and then just price.
The question is on on the.
Williston Basin your producer customers there.
How are they positioned with respect to takeaway and GAAP book did the ship on dapple and do they have can change and plans that gap of where to set down.
Yeah. So.
There are.
Our shippers do deliver ended the Apple, but we think there's adequate takeaway capacity for them. If there was any.
A long term.
Cut down the <unk>.
Apple pipeline and we just really don't anticipate that being an issue that would curtail production footprint.
And Elvira I might also and we do have interconnects into.
So the Enbridge pipeline systems up there as well as.
Crude by rail terminals throughout the throughout the basin. So.
Honestly, we've been operating and the Williston.
Year, and certainly well before the Apple came online and.
We had we had plenty of Interconnectivity key crude by rail at that point in time, so to the extent the depth of work taken out again, we do have alternative pipeline interconnects and and rail terminals that we can interconnect and two as well.
And that's that's the.
That's helpful. Thank.
And Thats all I had thank you.
Thanks Omar.
And once again, if you have a question. Please press Star then one.
And we have no more questions at this time, thank you ladies and gentlemen, this concludes today's conference.
Thank you for participating you may now disconnect.