Q4 2021 Canadian Natural Resources Ltd Earnings Call
Good morning.
We would like to welcome everyone to the Canadian natural resources 2021 fourth quarter earnings conference call and webcast.
After the presentation, we will conduct a question and answer session and instructions will be given at that time. Please note that this call is being recorded today March 3rd 2022 at nine o'clock a M mountain time.
I'd now like to turn the meeting over to your house for today's call Corey Bieber Executive advisor. Please go ahead Mr. Bieber.
Thank you operator, and good morning, everyone and welcome to Canadian Natural's fourth quarter 2021, corporate update conference call.
Canadian natural had an exceptionally strong quarter financially and operationally as.
As I commented before I believe our asset base is unique amongst our peer group underpinned by long life low decline assets and complemented by our conventional assets that allow us significant flexibility all of which can generate significant free cash flow.
And again all of which was strongly demonstrated in Q4 beyond our robust asset base. There's a corporate strategy that focuses on generating real returns for shareholders.
And have driven management team and corporate culture that focuses on being effective and efficient over the years Canadian natural has differentiated itself through its robustness sustainability and strength of its business plan.
For 2022 and beyond I believe we are one of the few energy companies capable of delivering meaningful economic growth, while increasing sustainable returns to shareholders and reducing absolute debt in a responsible manner.
For today's call Tim Mckay, our President will first provide a corporate update.
Darren Fichter C. All of BNP will update our 2021 reserves and Mark <unk>, Our Chief Financial Officer will then provide an update on our 2022 financial outlook as well as our strong financial position.
Tim will then provide a summary prior to opening up for questions.
Before we kick off.
To remind you that our four of our forward looking statements of note in our reporting disclosures is that everything will be in Canadian dollars, unless otherwise stated and as well we reported our reserves and production before royalties I would also suggest you review our comments on non-GAAP disclosures, so with that I'll turn it over to you Tim.
Thank you Cory good morning, everyone Canadian natural delivered strong operational results in the fourth quarter of 2021.
As we achieved record quarterly production of approximately 131 4 million Boe per day of which over 1 million barrels a day with liquid production.
<unk> of our robust long life low decline assets and operational excellence, primarily in the oil sands mining and thermo and tissue.
This combined with our capital discipline generated significant free cash flow as we continued to balance free cash flow to our four pillars of capital allocation maximizing value for our shareholders. In 2021, we exited with net debt of approximately $14 billion returned approximately three.
$8 billion to shareholders through dividends and share repurchases.
Maintaining capital discipline and executed on opportunistic acquisitions, which added long term value.
We continue to apply that same drive to ESG, environmental social and governance to deliver industry, leading performance across the board a significant factor in our long term city sustainability.
Canadian natural targets published its 2021 Stuart you report to stakeholders in Q3, 2022, including third party independent reasonable assurance on scope, one and scope two emissions and limited assurance on scope three emissions.
Additionally, we will continue to outline our path to lower carbon emissions across the asset base and our journey to achieve our goal of net zero GHT emissions in the oil sands.
Well also display how Canadian natural leverage technology innovation to reduce its environmental footprint, ensuring safe reliable effective and efficient operations.
Canadian natural has multiple pathways to achieve net zero with actions identified in the near mid and long term.
Strength of Canadian Natural's oil sands binding asset is that with its long life no decline.
And with its manufacturing like operations. It could have one of the clearest routes if not the clearest route to net zero of any global oil asset.
I will now do a brief overview of our assets starting with natural gas.
Overall 2021 annual natural gas production was approximately $1 695 Bcf per day.
Which was a 15% increase over 2020 production for.
For North American operations, 2021, notch annual natural gas production with approximately 168 Bcf versus one four for 2020.
Which was primarily a result of the company's strategic decision to invest in the company's liquid rich montney areas through.
Through the drill to fill strategy, adding low cost high value liquid rich natural gas production volumes as well as opportunistic acquisitions completed in 2020 and 2021, the last being storm resources in mid December 21.
And which we will target to drill 40, net wells and <unk> assets as part of our 2022 capital budget.
Our 2021 annual North American natural gas operating cost was $1 15 per Mcf, which was comparable to 2020, although dollars 14 for the fourth quarter of 2021, North American natural gas production was approximately $1 841 Bcf per day versus 1623 Bcf per day for <unk>.
For 2020 with.
With strong operating cost of $1 eight per Mcf versus Q4 $2021 seven.
Good year over year operating cost performance as our teams continue to focus on operational excellence.
Looking forward on the annual strip basis, Heiko prices for 2020 to look very strong at approximately $4 25, a J J.
An increase of approximately 26% over 2021 levels of 338 per GJ, improving the economics of our Montney look great Montney liquids rich natural gas projects.
For North American light oil and NGL at 2021 annual production was 94581 barrels per day up 12% for 2020, primarily a result of strong drilling results.
Annual operating costs were strong at $15 28 per barrel versus the 2020 operating costs of $14 61 per barrel.
Q4 production was 97799 barrels per day up 11% when comparing to Q4 2020 with operating cost of $14 61 per barrel as compared to the Q4 2020 operating costs of $13 88 per barrel.
The company delivered top tier execution and results at the company's high value Montney light crude development in 2021.
With very good has budgeted I call. It 18 net wells were brought on stream in 2021 with an exit rates exceeding the targeted budget rates by over 25%.
<unk> approximately 11000 barrels a day of light crude oil and 35 million a day of natural gas and 12 month capital efficiencies of approximately $6000.
Based on the success Canadian natural targets to complete 15, net wells as part of our 2022 capital budget and targeted to maintain the processing facilities at full capacity for this year.
Our international assets in 2021 had an annual production of 31650 barrels a decrease from 2020 level, primarily due to maintenance activities and natural declines.
Our Africa production was approximately 14000 barrels a day versus 2020 of 17000.
Barrels per day with annual operating costs.
In 2021 were $14 73 per barrel versus 2020 of $30 29.
In the North Sea annual production averaged 17633 barrels a day in 2021 versus 'twenty 3142 in 2020.
Our international assets continue to generate free cash flow and value for the company.
Moving to heavier annual production was 64366 barrels per day in 2021, an 8% decrease.
Versus the 70279% in 2020, reflecting natural decline, partially offset by strong drilling results and increased development activity in 2021 annual operating costs were $19 37 per barrel versus the 2020 operating costs of $17 59.
The fourth quarter of 2021 production with 64866 barrels per day, primarily a result of strong drilling results and increased development activity versus the Q4 production up 65513 barrels a day, while operating costs grew $19 72 per barrel.
Versus the Q4 2020 of $17 61, primarily a result of higher energy costs.
At the company's Clearwater play at Smith, 12, net horizontal multilateral for brought on stream in 2021 and continued to perform well with the current production rates totaling over 3200 barrels a day.
Part of our 2022.
The company has commenced a two rig drilling program targeting 41, net horizontal wells to be drilled and placed on production during the year.
Key component of our long life low decline asset because our world class Pelican Lake pool, where leading edge polymer flood continues to deliver significant value for <unk> 'twenty 'twenty. One annual production was 54390 barrels a day versus 2020 average of 56535 barrels per day, only a 4% decline.
Reflecting the very low decline at the property.
The team continues to do a great job had strong operating cost of $6 75 per barrel an increase from 2020 operating cost of 603, primarily result of increased energy costs Q4, 2021 production was approximately 52963 barrels per day down for the fourth quarter of 2020 or 56.
<unk> barrels a day.
Operating costs in Q4, 2021 for $6 78, a barrel, reflecting higher energy costs versus the $5 85 for Q4 2020 with a very low decline and very low operating cost Pelican Lake continues to have excellent next tax.
We had a very strong year in our thermal in situ operations in 2021, as we continued to leverage our continuous improvement culture, and our expertise to deliver effective and efficient operations.
In 2021, we achieved record annual production of 259284 barrels a day as the teams optimized production throughout the year.
Thermal annual operating costs were 12 2014, a barrel up from 2020 levels of 944, primarily result of increased energy costs.
For 2021 production was very strong at 263110 barrels per day up from the Q3 production of 248.
Roughly 248000 barrels a day with operating costs of $13 eight per barrel.
When comparing last year's Q4 2020 production, it's very similar.
Which was at 266000 barrels per day with operating costs of 12 24 per barrel with.
As part of our 2022 strategic growth capital. The company has commenced a three rig drill program and thermo that will conclude in Q2 2023. This program targets to drill three pads at Kirby two pads at Jackfish targeting Onstream production volumes in mid 2023 with an average cap.
Little efficiency of approximately $8000 per <unk>.
At Primrose. The program consists of one Sag D pad as well as to CCF pads targeted to be Onstream in mid 2023 with average capital efficiencies of approximately $10000 per bvd.
Finally, Canadian natural is progressing engineering and design or a commercial scale salt lets say Deepak development at Kirby north and targets to commence solid injection early 2024.
And the company's World class oil sands mining and upgrade assets, we had a record annual production, averaging 448133 barrels a day of SCO and increased 7% from 2020 levels, primarily a result of high utilization rates and operational enhancement.
The team had strong annual operating cost in 2021, and we remain industry, leading averaging 2091 per barrel of SCO versus the 2020 operating costs of $20 46 per barrel driven by the company's continuous focus on high reliability cost control as well as operational enhancements.
At our oil Sands mining operations, we had a record production in Q4, 2021, which was 493406 barrels per day as planned maintenance was concluded at horizon and ESOP earlier in the year and the facilities ran well at expanded capacities.
In the quarter operating costs were strong at $19 55 per barrel of that steel as our teams drive for operational excellence.
In the lead up to the planned turnarounds at the non operated Scott Pruitt Upgrader. It has had operational issues in the first quarter impacting Canadian Natural's Q1, 'twenty two production volumes by approximately 31000 barrels a day.
Turnaround is still targeting to begin March 15th for approximately 65 days as previously announced at Horizon turnaround is targeted for me for a full plant outage for approximately 32.
Overall, the 2022 annual production target range remains unchanged.
I'll now turn it over to Darren.
For our 2021 Reserve review.
Thank you Tim and good morning.
As in previous years, 100% Afghani Naturals reserves are externally evaluated and reviewed by independent qualified reserve evaluate us.
At 121 reserves disclosure is presented in accordance with Canadian recording reporting requirements using forecast prices and escalated costs.
Canadian standards also require the disclosure of reserves on a company working interest share before royalties basis.
As you just heard from Tim.
Indian natural had another excellent year and the results are also demonstrated in Canadian Natural's reserves.
Total proved and total proved plus probable reserves increased 6% to $12 8 billion Boe and 17 billion Boe.
Of the $12 8 billion of total proved reserves 8.9 billion Boe are.
Our proved developed producing reserves.
It also is important to note that 55% of Canadian Natural's total proved reserves are high value no decline SCO reserves at.
At 7 billion Boe.
Finding and development costs and reserve replacements are key indicators of the strength of our assets.
In 2021, K Nacho to deliver top tier results and our strong performance is reflected in our finding and development costs and reserve replacements.
Our corporate finding development and acquisition costs, including changes in future development costs are $5 88 per BOE for total proved and $5 49 per BOE for total proved plus probable reserves.
Canadian natural replace 2021 production by 257% for total proved and 328% for total proved plus probable reserves.
As evidence of Canadian Natural's long life low decline asset base, 77% of total proved reserves, our long life low decline.
Resulting in our top tier total preserved proved reserve life index of 30 years.
And the total proved plus probable reserve life index of 40 years.
The net present value of future net revenue before income taxes, using a 10% discount rate and including the full company Arrow.
Is $120 billion for total proved reserves and $146 billion for total proved plus probable reserves.
In summary.
These excellent results reflect the strength and depth of Canadian Natural's asset base.
Value of the Companys long life, low decline reserves and our ability to execute.
Now I will hand over to Mark for the financial highlights.
Thanks, Darren and good morning, everyone.
The fourth quarter was strong operationally and financially as we delivered significant earnings of over $2 5 billion and adjusted funds flow of over $4 3 billion.
Free cash flow was approximately 3 billion after capital and dividends excluding acquisitions in the quarter.
As a result of our significant free cash flow generation in Q4 net debt decreased by approximately $1 9 billion from Q3 levels.
This resulted in year end ending net debt at under 14 billion a reduction of over seven 3 billion through 2021.
As part of our financial strength, we continue to maintain strong liquidity, including revolving bank facilities cash and short term investments liquidity at year end was approximately $7 2 billion.
Returns to shareholders were also significant in the quarter was approximately $1 4 billion returned through dividends and share repurchases.
Per our previously disclosed free cash flow allocation policy with net debt now below 15 billion targeted free cash flow as defined in the policy will be allocated 50% to share repurchases and 50% of the balance sheet.
This targets to deliver significant increases in shareholder returns as well as continued financial strength.
Our long life low decline assets support a sustainable growing and predictable dividend.
This was evident through the period of challenging commodity prices in 2020, where we increased and maintained our dividend than in 2021. The dividend was further increased in March and November for a combined 38% increase.
On March 2nd or yesterday, the board of Directors has approved a further 28% increase to our quarterly dividend to <unk> 75 per share payable April five 2022.
This continues the company's leading track record of 22 consecutive years of dividend increases with a significant compound annual growth rate of 22% over that period of time.
This increase in the quarterly dividend demonstrates the confidence of the board of directors has and the Companys World class assets and its ability to generate significant and sustainable free cash flow our asset base is underpinned by top tier long life low decline assets, a strong balance sheet and effective and efficient operations that drive an industry leading U S.
<unk> W. Ti breakeven in the mid <unk> per barrel, which covers our base maintenance capital requirements and the increased dividend commitment.
<unk> value for our shareholders.
Additionally year to date up to and including March 2nd The company has returned approximately $680 million to shareholders to the repurchase and cancellation of $10 5 million common shares and the board of directors has approved the renewal and increase of the company's normal course issuer bid the approval states that during the 12 month period commencing March 11th 2022, and ending March 10th.
23, the company can repurchase for cancellation up to 10% of the public float subject to <unk> approval.
We continue to balance our four pillars of capital allocation with increased returns to shareholders further debt reductions the ability to provide economic resource development and execute on opportunistic acquisitions.
Clearly demonstrates the sustainability of our business model the ability of our unique long life low decline asset base with low maintenance capital requirements and effective and efficient operations to generate significant long term shareholder value.
Before I hand, it back to Tim for closing comments I did want to acknowledge Corey as this will be his last conference call as he is retiring in April .
Corey he's been an exceptional <unk> had an exceptional career, including 21 years of Canadian natural and we all appreciate your significant contributions to the company's success.
On a more personal note I'd like to thank you for your leadership Mentorship guidance and friendship over our many years working together well.
We wish you all the best in retirement with that I'll turn it back to you Sir.
Thanks Mark.
Canadian Natural's advantage is our ability to effectively allocate cash flow to our four pillars, we have a well balanced diverse and large asset base with a significant portion.
Of which long life low decline assets, which requires less capital to maintain volumes.
We balanced our commodities in 2021 with approximately 47% of our <unk> light crude oil and SCO, 30% heavy and 23% natural gas, which lessens our exposure to volatility in any one commodity as we move through 2022.
We will continue to allocate cash flow to our four pillars in a disciplined manner to maximize value for our shareholders.
Which is all driven by effective capital allocation effective and efficient operations and by our teams who deliver top tier results.
We have a robust sustainable free cash flow.
And through our three free cash flow policy allocation policy returns to shareholders are significant for.
For 2021, approximately $2 2 billion in dividends and $1 6 billion in share repurchases for a total of $3 8 billion.
And today, our dividend was increased by 28% for the 20 <unk> consecutive year and has a CAGR of 22% over that time.
In summary, we'll continue to focus on safe reliable operations and enhancing our top tier operations.
We'll continue to drive our environmental performance.
We are in a very strong position and being nimble enhances our capacity to create value for our shareholders.
Canadian natural is delivering top free cash flow generation, which is unique sustainable and robust and clearly demonstrates our ability to both economically grow the business and deliver returns to shareholders by balancing our four pillars.
With that we will open up the call to questions. Thank you.
At this time, if you would like to ask a question. Please press Star then the number one on your telephone keypad to withdraw your question press the pound key.
Your first question comes from the line of Greg Pardy with RBC capital markets. Please proceed with your question.
Thanks, Good morning, and great quarter again on you guys and a fond farewell Korea sad to see you go but good to know we will have a place to crash in Las Vegas.
Look just one.
Just one question that is.
Really around marketing and on the Nat gas side, one of the questions. That's come up in the market is whether you would be willing or or would even contemplate entering into like a longer term supply arrangement.
Connection with LNG or whether the marketing strategy is still geared around selling most of your gas at acre.
That's a really good question Greg.
Craig and I think.
We generally don't go into a long term marketing agreement unless it's something that we feel we have an opportunity to.
To.
Gain some diversification and not overexposed to one market or another so it's difficult to say at this time.
The LNG projects finally get up and running obviously being one of the largest producers of natural gas there may be an opportunity to do some kind of agreement there, but right now at this time there is nothing on the table.
Okay terrific. Thanks, Ken.
Okay.
Your next question comes from the line of Neil Mehta with Goldman Sachs.
Good morning, David Cori, congratulations as well, it's been a terrific run, especially here over the last the last couple of years. So congratulations to you Sir.
Thank you Neil.
The first question.
Yes.
It's obviously, a very dynamic crude market environment, right now, but particularly in the heavy markets with <unk> potentially being taken out of the market.
Would be curious from your guys' perspective, what this all means for western Canadian crude and does that create a structural bid on the commodity.
Even.
Even if there are potentially Iranian barrels coming back into the market. So curious on your perspective does the geopolitics support the case for WCS in the near term and long term.
Even before the geopolitical piece there if you look at the.
The heavy oil market it was very robust.
There was a period of time when the differentials had.
Gone lighter, but that was primarily due to apportionment here in Alberta, So we've always felt that.
You know there shouldn't have been in apportionment issue, but.
With the additional and create <unk> I just look at.
The market for the crude to the Gulf Coast is very strong and.
The differential seem to support that.
Uh huh.
And then Tim with the strengthening of the curve here, although a lot of fits in the front.
Does it change any of the growth ambitions that you laid out a couple of months ago.
Around around the next couple of years or is it very much stay the course.
It's very much stay the course.
We're always.
Always looking ahead to the market but to.
We came out with what I felt was a very strong budget one that relief.
Has some near term growth as well as a very balanced.
The outlook for long term and Youll being.
Fishing effective with our drilling program is the key in keeping our costs under control.
Alright, Thank you Ken.
Okay.
Your next question comes from the line of Manav Gupta with credit Suisse.
First of all I really wanted to frankly over the years you live Super helpful. And you were very patient even when a question is the outright dumb and stupid. So thank you for that Tony.
Thank you Manav I appreciate working with you.
So my question here.
You have now done two good deals.
Pete Bunin storm I think painted pony close somewhere in October 2020, and I just wanted to understand from the point, where you pop you wanted those assets to the point, where you now have them and Theyre operating.
Have been met your expectations have you been able to achieve the synergies that you set out when you look what we wanted to take all.
Painted pony and again I just wanted to start with <unk>.
It's been about two months, but.
The assets in general meeting your expectations.
Yes, the assets are doing very very well.
From.
If reserve point of view, there are actually better than what we had anticipated and with the storm assets.
In the near term, we have been able to grow the production from <unk>.
Today, it's around 170 million a day and about 9000 barrels a day liquids. So.
Yeah, that's the properties have been very good and very accretive.
Thank you for taking my questions.
Your next question comes from the line of Phil Gresh with J P. Morgan.
Yes, hi, good morning, I will throw my congratulations to Korea as well.
One question for Mark.
Not sure if you're willing to answer this one but in the past sometimes you guys have been willing to talk about how you think CFO , we'll look at the strip them. So.
So, yes, obviously incredibly volatile right now, but anything you'd be willing to share on that front.
Well, yes, if you are thinking about.
CFO .
<unk> as adjusted funds flow there will be some changes there too.
As you look at accruals going in a backward dated market and how we manage accrual accounting in the last month, and then getting paid for it in the following months.
So there'll be there'll be some instances about as well, but on an overall basis. It really depends and this in this market with the changes in pricing and.
Differentials in the Canadian dollar and the U S dollars being strong it really depends so.
No.
We can we can sit back and model with you and look at what your assumptions are and how it how it relates to our cash flow overall, but it's very strong and the free cash flow itself is very strong because you've got a you know a.
Our prudent capital program and a dividend that's very sustainable as we talked about in kind of a mid thirties area. So the free cash flow potential here is quite strong.
Yeah, No fair enough.
And then I guess are you seeing any risks at this point from the inflationary environment I know, obviously, you've talked a little bit about natural gas impacts to opex.
But just curious.
With respect to your capital budget any pressures you might be seeing there in 2022.
Yes, Phil it's Tim here. Thank you for the question here. So yes, we're seeing some inflationary pressures a little bit on labor.
Obviously, the fuel whether it's diesel or natural gas is going to roll through.
But having said that.
One. Good example is on the drilling side.
The drilling team is doing excellent job in terms of maintaining our costs and mitigating those inflationary pressures on.
On the drilling side, so that part is going very well. So the teams are very focused on what we can control and what we can do to mitigate the inflationary impacts.
You get two more on the facility side, where you're using a large amount of steel we are seeing.
Inflationary pressures probably in that 20 percentage range, but.
It's very early here, yet and I have to emphasize our teams are doing a great job in terms of looking at ways to mitigate inflationary.
Larry pressure.
Okay got it sorry, one last one for Mark did you have an update on the postpaid out for horizon has been pulled forward. I think you had said maybe second half of 'twenty previously if I remember correctly, but just your latest thoughts there. Thank you.
Yeah with the increase in pricing here. It would move forward, we're probably and actually the March April timeframe, depending for payout on horizon.
As you indicated.
<unk> was of course in our budget for 2022, it just shifts on timing based on.
The payout because of commodity prices.
Yeah, Okay got it thank you.
Thanks, Phil.
Your next question comes from the line of Dennis Fong with CIBC World markets.
Good morning, and thank you for taking my questions also.
My name is I had as well for congratulations it Corey.
The question I have really just relates back to ideal capital structure given.
Quite strong crude oil prices and your outlined allocation of 50 50, after based capex and the dividend between debt.
Debt repayment and buybacks, how should we be thinking about potentially getting into something that is well below the $15 billion level.
And how do you look at potentially balancing that versus either.
Neither deploying more capital and and share buybacks and so forth, obviously, keeping in mind kind of the four pillars and focusing on what the best most efficient use of capital happens to be.
Hey, Dennis it's Mark Thanks for the question.
Yes, we've got now a free cash flow allocation policy that has kicked in as you indicate.
We're allocating 50% to the share buyback program and 50% to the balance sheet.
So we'll execute along those lines as we go through the year end and we manage that based on the pricing and the free cash flow profiles.
What's important just to recognize one is yes. The the balance sheet is certainly strong and you could argue that.
It's in a good place to go for it of course.
But I think what you got to just recognize is the ability for us to just balance those four pillars and be able to kind of deliver on all of them and.
Particularly in this environment to a significant perspective, so I think thats unique and it's it's part of the asset base. That's been developed here being long life low decline that gives us that opportunity.
To have an increasing sustainable dividend buyback shares pay down debt to grow the business and look at opportunistic opportunities when they present themselves. So to me, it's a very unique position.
Right right no and the other questions I had have already been answered so I'll turn it back. Thank you.
Thanks Dennis.
Your next question comes from the line of.
Doug Leggate with Bank of America.
Well. Thanks, Good morning, everyone. I appreciate you having me on my colon Corey Thanks for helping us get right back up to speed and RF Cmos with a stunning performance. So congratulations to you as well.
So mark this is probably for you I'm I guess, it's kind of a follow up on the capital structure or the return of capital structure I should say.
Number of your peers talk about.
<unk> living with.
Portfolio breakeven, if you like including the dividend.
So about $40 and you're obviously well below that I'm just curious how you think about the right level of dividend burden on whether you'd be given the obvious perfect performance of the portfolio, whether you'd be prepared to continue to move up that breakeven.
In other words headroom for continued.
Outsized dividend increases.
Yeah, well first off I think when you look at a dividend and what the board really considers a paramount to it is the sustainability of it through cycles.
You know, we we look at that to make sure that once the dividend is declared that they were not having to take it back. That's why you see you know.
Steady increase predictable increases year after year, and we've talked about it today 22 straight years. So that's a very key component of our dividend and we want it to be sustainable and increasing.
There's different ways of course to manage break evens on a continuous improvement in costs and growing production and paying down debts and other way to to help with interest cost and things like that so there's other parts of the equation that can help deliver or sustain a lower breakeven, but in reality. When you look at the asset base again with the law.
Life, and low decline nature of it and the cost structure, we've been able to build over time.
Really sets out a party and helps maintain that low breakeven.
Okay, I appreciate that but but in terms of dividend policy, there's no do.
Do you expect to hold that breakeven and not with <unk> kind of level or would you be.
The open pit up moving higher to accommodate a higher dividend overtime.
Well I think again, it's a it's about being consistent and being sustainable over time. So those factors change all the time and the board is looking at those every quarter when we set the dividend.
Thanks Victor.
Okay perspective, Doug.
Remember our 2020, we averaged $39 CW ti so.
The board is really focused on making sure that we have a robust sustainable growing dividend. So.
To me to be in the mid <unk> today has a very favorable position, but you don't want to get too far ahead of yourself.
Thank you my follow up I'm, not sure who wants to take this but it's really just a housekeeping note.
British Columbia permitting.
Our understanding is the some of the changes and changes in leadership that things might be improving there I'm. Just wondering if you could give us a quick update I'll leave it there. Thanks.
Yeah, NPC Theres really no change as far as we know the OTC is still working through the agreements with the <unk>.
The groups there so.
There is talk that there may be some opening up of some of the low risk or low impact to permits, but we haven't seen anything that.
That I'm aware of today.
Okay. Thanks folks.
Okay. Thank you thanks for your questions.
At this time there are no further questions I would now like to turn the call back over to management for any closing remarks.
Thank you operator before signing off I wanted to thank Tim and the rest of the management committee for creating and sustaining such a strong corporate culture.
I'd also say, our strong culture and focus on delivering value to shareholders, coupled with the depth of talent across our organization provides for a seamless transition in leadership and we've repeatedly seen that over the years. Thank.
Thank you all to the numerous fixed income and equity investors analysts and bankers I've spoken with over the years.
And a lot from each one of you.
And appreciate the relationships we've developed over the years.
So with that thank you to everybody who joined us on the webcast and if you have any questions. Please don't hesitate to give us a call.
Thank you that does conclude today's conference. We thank you for participating you may now disconnect.
Okay.
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