Q4 2021 Northwest Natural Holding Co Earnings Call
Hello, and welcome to the NW natural holding company first quarter 2021 earnings call.
My name is Laura and I'll be coordinating your call today.
If you would like to ask a question during the presentation you may do so by pressing star placed by one of your telephone keypad.
I'll now hand, you over to hoist Nicky Scarlet begin Nicky. Please go ahead.
Thank you Lauren good morning, and welcome to Q1.
Quarter 2021 earnings call.
As a reminder, something.
This morning contain forward looking statements are based on management's assumptions, which may or may not occur.
Please note the cautionary statements refer to the language at the end of our press release.
That's about right.
Okay excuse me later today.
This teleconference is being recorded and will be available on our website following the call.
Please note. These calls are designed for the financial community. If you are an investor and have additional questions. After the call. Please contact me directly at 500 370, 120 factory News media May contact David right at 503 six.
107.
Hi.
Speaking this morning are David Anderson, President and Chief Executive Officer, Frank <unk>, Senior Vice President and Chief Financial Officer and Kim.
Senior Vice President operations, and Chief Marketing Officer, Eric EBIT, Frank again have prepared remarks, and then will be available along with other members.
To answer your question with that I will turn it over to David.
Thanks, Nikki and good morning, everybody and welcome.
2021 was a year of success for our company as we continue to build.
On our fundamental strengths is our gas and water utilities.
And we launched a competitive renewable natural gas.
For 2020 laundry reported net income of $2 56 per share, which is an 11% increase compared to net income from continuing operations of $2 40 per share in 2020, new rates in Oregon drove results at the natural gas utility along with solid customer growth and we saw higher revenues at our Interstate storage vendors.
This financial growth is a product that multiyear efforts a keen focus on our long term plan and proof that consistent progress with positive results we are.
Also see positive momentum in our local Portland, Portland Metro area economy.
Unemployment rates in this area.
Climbed to three 9% in December 2021, compared to seven 3% a year ago.
Single family housing activity remains very strong home sales were up 10% over 2021 compared to 2020 with the average sales price up 16% and new single family permits issued were up 12% with multifamily permits up 37% in Oregon, This past year compared to the prior period.
Construction and development remain robust in our region.
This translated into over 11000, new customers connecting to our gas system during 2021 for a growth rate of one 5%.
Our water and wastewater utilities also continued to grow.
<unk> residential housing construction, primarily in Idaho, and Texas translated into a 3% organic customer growth rate. We also closed four acquisitions in 2021, most notably weak.
Lawyer, a stake in the largest privately held water company here in Oregon.
A combination of organic growth and acquisitions increased our water utility connections by nearly 30% last year.
Now a few comments on the gas utility on November 1st new rates for gas utility customers went into effect for the current <unk> season that included the impact of the general rate case, we concluded and the state of Washington.
Despite these increases our customers continue to pay nearly 30% less for their natural gas today than they did 15 years ago and.
And this reflects the decline in commodity cost energy efficiency efforts and prudent expense management, along with smart investments and gas storage assets that continue to reap benefits for customers.
The result, natural gas continues to maintain its competitive position as the fuel of choice.
Adding to the adding to its performance benefits natural gas enjoyed up to a 60% price advantage over an electric or oil furnace from the typical home we serve.
And our customers are central to our success.
That's why I'm thrilled northwest natural ranked second in the west among large natural gas utilities in the J D power residential customer satisfaction study.
This continues a nearly 20 year legacy of outstanding results.
Out of all of our employees, who make this exceptional service happens every day.
And as you know growth is not always linear and in certain years. The focus will be on initiatives that set the stage for future growth 2022 for us it adds up to year two that in 2021 and 2022 include robust capex plans related to crucial standard for safety and reliability technology system upgrades and fiber <unk>.
Cured investments to recover these long planned project cost we took the necessary step at the end of 2021 and filed an Oregon General rate case. The request includes a revenue requirement increase of $73 $5 million based on a 50 50 cap structure and ROE of nine 5% and our cost of capital of about <unk>.
Six 7%.
We filed an increase in average rate base of $294 million since the last rate case.
The Oregon Commission and stakeholders have 10 months to review the case and we expect new rates to be effective November the first.
At the same time, we continued to make progress under the landmark, Oregon Senate Bill 98 legislation, which supports renewable energy procurement and investment by natural gas utilities.
Happy to report, we signed an agreement with archaea to procure <unk> on behalf of our customers in the fourth quarter of 2021.
What's natural also recently committed kind of put me excuse me completed commissioning the first of four R&D projects from Tyson foods and Biochar them construction on our second facility began this month with commissioning slated for early 2023.
To date, we signed agreements with options to purchase or developing RMG on behalf of our customers totaling about 3% of northwest Natural's current annual sales volume in Oregon.
I'm very proud of the progress we've made in less than two years, you put it in perspective today wind and solar accounted for about 11% of our total notional electric electricity supply.
For decades of investment.
We intend to continue to take these critical steps to source more and more of our supply from renewables, knowing that our customers want to decarbonize system, and a clean energy future <unk>.
A new survey conducted by an independent leading opinion search research firm showed that 77% of Oregon, and southwest Washington voters want access to all forms of energy renewable energy hydro wind and solar and renewable natural gas for a balanced low carbon future in fact, 78% of.
Voters value of the natural gas system for its critical role in lowering emissions with both affordability and reliability and of course resiliency as top priorities and nearly 80% of voter support local governments efforts to encourage the use of natural gas.
Radian value across all of our businesses allowed our board of directors to increase our dividend for the 16th.
Consecutive year, our annual dividend indicated indicated dividend rate is now $1 93 per share where we are very proud to provide return to our shareholders can be one of only three companies on the NYSE with this with this record so with that let me turn it over to Brian to give a little bit more details on the quarter and the year results Brian .
You, David and good morning, everyone.
I will begin by discussing the highlights of the fourth quarter and full year 2021 results and conclude with guidance for 2022 I'll describe earnings drivers on an after tax basis using the statutory tax rate of 26, 5% as a reminder, northwest Natural's earnings are seasonal with a majority of revenues and earnings generated in the first and fourth quarters.
During the winter heating months for the quarter, we reported net income of $40 5 million.
We're $1 32 per share compared to net income of $45 $8 million for $1 50 from continuing operations for the same period in 2020.
The decrease in net income over last year was driven by results at our gas utility, which posted a <unk> 15 per share decline in earnings. The other businesses posted a <unk> <unk> per share decrease in earnings driven by higher business development costs.
Lower earnings at the gas utility were primarily related to higher operations and maintenance and depreciation expenses.
Partially offset by new rates in Oregon, and Washington utility margin in the gas distribution segment increased $4 $5 million as a result of the new rates and customer growth utility.
Utility O&M increased $5 $7 million, reflecting higher levels of expense for payroll and benefits contractor in professional services and information technology upgrades.
Utility depreciation and general taxes increased $1 $6 million due to higher property plant and equipment as we continue to invest in our system.
For the full year 2021, we reported net income of $78 7 million or $2 56 per share.
Compared to net income from continuing operations was $70 3 million or $2 30 per share for 2020.
<unk> 26 per share increase was driven by both the gas utility which contributed an additional 16.
In our other businesses that contributed an additional <unk> 10 per share.
Higher earnings at the gas utility were primarily related to new rates in Oregon, and Washington, along with customer growth.
Utility margin increased $30 7 million as higher customer rates and customer growth contributed $30 9 million.
This was partially partially offset by a loss from the gas cost incentive sharing mechanism as we purchased higher priced gas during the February 21, cold weather event utility O&M increased $14 $2 million driven.
Driven by higher employee compensation and benefit costs legal expenses for our new operations in headquarters building and higher costs related to information technology system upgrades.
Depreciation and general taxes increased $9 million.
Net income from our other businesses increased $3 million largely due to higher asset management revenues from the cold weather event in February for.
For 2021 cash provided by operating activities was $160 million, an increase of $15 million compared to last year, we invested $300 million into the business most of which was for the gas utility capital expenditures, our balance sheet remains strong with ample liquidity.
Moving onto 2022 financial guidance gas utility capital expenditures for the year are expected to be in the $310 million to $350 million range, including significant projects related to system reinforcement and technology upgrades. These capital investments coupled with higher forecast expenses from technology and payroll supported our decision to file the Oregon rate case.
Rates effective in November of this year.
Consistent with this these business drivers the company initiated 2022 earnings guidance today for net income in the range of $2 45 to $2 65 per share.
Guidance assumes continued customer growth average weather conditions and no significant changes in prevailing regulatory policies mechanisms or outcomes or significant changes in laws legislation or regulations.
To see solid long term growth in our natural gas and water utilities and as discussed last quarter, we launched our competitive renewable natural gas business. As a result, we're now targeting long term earnings per share growth rate of 4% to 6% from 2022% to 2027.
With that I'll turn the call back over to David.
Frank This past year, we made significant progress on our business strategy. Our focus moving forward is clear maximizing returns from our strong and growing regulated gas utility and positioning our business for incremental long term growth by investing in water utilities and the competitive renewable natural gas business, we will.
Keep our focus on the future, making sound investments today to ensure sustainable growth for tomorrow and to that end, we released our destinations Euro scenario report for the gas utility in November last year. This report illustrates different possible scenarios to transform into a provider of carbon neutral energy by 2015 Kim.
<unk>, our senior Vice President of Operation, We will touch on the details of this work in a minute, but central to it is our belief that a diversified energy system is more affordable more reliable and importantly, more resilient events in Texas, and California are stark reminders of why to energy systems are better than one the electric and gas systems.
And on each other to serve our communities and each system provides different benefits in fact by their nature each system complements the other in hedges against certain risks with wires above ground delivering renewable electrons and pipes below ground delivering renewable molecules. This diversification helps us effectively meet different energy needs.
And we will be even more important going forward as climate change and the potential for more severe weather post new risks with that let me turn it over to candidate a little bit more detail on the report and the analysis Kim.
David our destination zero of analysis is the next evolution for AST and builds off our 2016 carbon savings.
For our customers.
And the 2019 study, we commissioned with environmental consultant E. Three.
Steady annualized effective pathway for the region to achieve the Paris climate accord reduction targets by 2015.
Since then we've continued to build on your internal carbon modeling capability and evaluate new development that allow us to evolve our thinking about the possibilities for our system.
And this new work, we evaluated multiple scenarios and technology that exists today, some of which are further along the development path in Europe , but all of which are considered vital tools that we are either actively pursuing we're evaluating that.
The three scenarios we model.
In demand side and memory design can achieve carbon neutrality for the emissions associated with our sale of customer synergies.
And future customer.
All of them use varying level of renewable natural gas and hydrogen and synthetic gas and enhanced energy efficiency, including gas.
Hybrids heating system.
Well, that's a conservative level of offset and carbon capture.
Different assumptions to tackle these components and stress test our ability to achieve carbon neutrality under different conditions and views of future technology adoption and availability of renewable supply.
We believe the most likely scenario will be a combination of activities to make usage more efficient and also reduce the carbon intensity MD energy and commitment and of course, all scenarios rely on the adoption of supportive policy temporary time to lower cost through technology innovations like renewable or clean hydrogen.
I think that policy support in the focus at northwest natural and our industry going forward.
While our analysis and modeling continued to evolve as we progressed through this transition our view of the future remains consistent.
Is that true.
Lawrence gas system, distributing renewable molecule, enabling our region's ability to achieve its ambition clinical and a reliable resilient and more affordable way.
Well, thanks, Kevin I'm very proud of our team and their efforts and under Kim's leadership, we're in a great place and a great place. There I believe this is one of the first in depth deep organization scenario reports by gas utility and it's it's a critical planning tool that helps us continue to make progress in addition to delivering our gas utility towards renewable future last year. We also.
Launched a competitive renewable natural gas strategy and formed a new nonregulated subsidiary northwest natural renewables.
By forming this new organization, we are committed to leading the energy transition and providing renewable natural gas to the utility commercial industrial and transportation sectors were focused on providing cost effective solutions to help these textures sectors decarbonize using existing waste streams and renewable energy resources.
As you know we're in the beginning of our historic energy system transformation, and we're confident that demand for renewable fuels is going to continue to grow.
We project the substantial increase of renewable natural gas demands in the voluntary and compliance driven targets instituted by states and utilities.
We see promising investment potential in R&D.
I believe we are well positioned to help fulfill this need as it aligns with our core competencies and is a natural extension of our sustainability efforts.
We're also on attractive counterparty for developers and feedstock owners seeking a reliable long term strategic partner, most R&D projects or sites right for us to effectively transact and to provide meaningful growth in cash flow and as you know we've already taken our first steps with a 20 year RMG supply agreement and a total of 50.
Investment.
I am excited to announce that at the end of January Mike Kozak joined our team to lead our competitive RMG efforts, Mike brings more than 25 years of experience in this sector and I know, we're ready and resource to pursue these opportunities and.
In conclusion, we intend to remain disciplined and focused as we assess other R&D investments to support the energy transition and provide additional earnings and cash flow growth for the company.
Turning to our water utility business since announcing our initial transaction four years ago, we solidified our water strategy and increase the number of customers. We serve fivefold through nearly 20 acquisitions across four states and.
And we're not stopping there last year, we signed purchase agreements that will more than double our total number of connections and most notably we signed our largest acquisition to date to acquire our Westwater and wastewater utilities in Yuma, Arizona, which serves approximately 25000 customers I am pleased to expand into our fifth state and in a region.
That is fast growing the acquisition subject to regulatory approval is expected to close in the fourth quarter of this year and be accretive to earnings per share. After its first full year of operations.
Just this month, we also announced additional agreements to acquire two utilities near our existing systems in Texas and central to the water utility business is strong and collaborative relationship with regulators and we've been pleased with their support to consolidate this fragmented industry with timely approval of acquisitions and recovery for prudent investments per se.
And reliability.
We remain excited about the investment potential for this business and we look forward to more announcements soon.
So in conclusion your company is financially strong and I'm pleased the opportunities in the renewables and water sectors have allowed us to increase our long term earnings per share growth rate of 4% to 6%. We intend to continue to continue working on your behalf to pursue sustainable growth. Thanks.
Thanks for joining us this morning with that Lauren I think we're ready to open it up for questions.
Thank you.
If you would like to ask a question. Please press star one on your telephone keypad.
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Our first question comes from the line of Julien Dumoulin Smith from Bank of America. Judy. Please proceed.
Hey, this is actually Cody Clark on for Julien Good morning.
Good morning, guys.
So first.
Good morning. So first wondering if we can talk a little bit more about the capex update and what's driving the increase there are the main drivers really around customer growth.
<unk> pipeline replace them or is there other factors that you would call out.
Also what are you forecasting for customer growth through the course of the plan.
Hey, Cody its Frank Yeah, Great question so.
Midpoint to midpoint from guidance, we got about $300 million more than our forecast for capex.
There's three key drivers of that part of its safety and reliability, we've got some.
Reinforce system reinforcement and some gas storage work that needs to be done some inline inspection et cetera, that's about a third of it a little bit more than a third of it. We've also got some increased spend around primarily around our customer information system, which we of note would need to be updated its it's over 20 years old.
Got to get our current SAP system updated but now that we're nearly through that we've put this into our plan for the next five years and that's about a third that along with some cyber security spend.
It is about a third of it and then the balance of it it's the renewable natural gas projects that are in our pipeline for the gas utility that we really have quite a bit of confidence around getting into the business.
Those three things add up to.
About $300 million increase on the customer growth side, we have.
We finished last year at one 5%, we think when we come out of this.
Unusual economy that will beef up just a little bit we've got about 151, 6% in our long term growth plan for our customer.
Okay understood that's very helpful and then.
Curious if you can frame, where you fit within that 4% to 6% long term EPS guidance range, what would push you to the top or the bottom of that range and just curious if there is.
Incremental investments that are not currently contemplated in the updated plan.
Yes.
Another good question, we have a lot of confidence always in the next few years on our capital and we only put in things that have line of sight. So we do see over time that as we roll forward into those future years, we get a little bit more clarity on things that were comfortable or we get them into our ERP and we're comfortable putting them into our forecast. So there's always some potential upside in the <unk>.
<unk> utility there also with renewable natural gas is in the utility as we do that.
I think the other area is we've been adding to our water portfolio and we'll continue to see opportunities to invest there and then on the.
The renewable the competitive renewable business, obviously theres opportunities for further growth there what we've got in that business right. Now is what we've already got with the deal.
Arrangement in the business around that but I could see some further grow their top line.
Okay got it thanks, so much I'll jump back in the queue.
Thanks Scott.
Perfect.
Scott a question. Please press star followed by one on your telephone keypad.
Yes.
Our next question comes from the line of Chris <unk> from.
But Williams Chris. Please go ahead.
Good morning, everybody.
David.
<unk> strategy is very interesting if you got any.
Benchmarks or targets that you you want to talk about in terms of what kind of scale.
Or kind of capital you might like to deploy in that business.
Yes, it's a good question, Chris and obviously, we're in the early days I think.
Frankly, very similar to the conversation we had on water four years ago, we would not we would not have gotten into this business. If we didnt think we could reach some kind of scale.
Not really ready yet to put mile.
Biomarkers or mileposts out there on we're going to be X side that this date or anything, but what I am seeing is in a very attractive.
<unk> opportunity, we just hired Mike <unk>, New President of this renewable business for us. So he is currently staffing up and he's he's polishing off the business plan and so I'll have a little bit more.
Belief on what he thinks he can achieve in the coming periods, but obviously, we feel good enough about it to where Frank and I and the team felt we could write near raise the earnings guidance from three to five to $4 six over the long term.
And thats, the R&D, where you're considering additive it's not filling in the holes.
Added to the portfolio, so give us a little bit of time, Chris we've been executing on one agreement I think we need to execute on a couple more and that could be contracts. Like we did this time I think development is definitely in the works to develop it takes a little bit longer to work out like.
Our Tyson project that we're doing in the utility.
But.
I am really seeing.
Excellent opportunity in this space both from a.
Opportunity for us to invest and I think what's important about that is these are opportunities to invest.
Based on our size, they're not they're not beyond our reach again very similar to the water.
Platforms.
And then I just believe the demand characteristics are are going to remain incredibly strong if not increase.
So the 1% increase to the growth rate.
Can you just sort of talk about how that breaks down.
Yes.
The increase in the utility capex versus.
Our LNG strategy, where did that 1% come from principally.
Hey, Chris it's Frank.
I would split it between those two just in general there is there.
<unk>.
$300 million more Capex, obviously is driving rate base growth, which is leading to incremental earnings.
The the RMG.
Making up most of the rest of it but also the far west transaction is bringing earnings into the business that werent. There when we did earnings last year. So.
It's really all three parts of the business, but I'd say the rate base and the <unk>.
R&D are the key drivers of that that would have brought it up that brought it up I am not sure far west alone would have done it but it is additive of course as well.
Okay.
Right.
You've added to the Capex and your Youre launching this R&D strategy, which I presume ultimately would love to spend a lot of money on in addition to the water acquisition.
Have you got any thoughts about.
The equity requirements going forward for what you envision for your plan.
Well of course.
This capital the three.
$300 million at the utility and.
80, plus and far west et cetera, it is adding to our capital needs as we've been we'd like to be real clear we want to manage this company.
Our core utility, we'd like to stay close to a 50 50 capital structure throughout the business that can fluctuate a little bit, but so we're going to need both debt and equity over this plan and some of this capital is front end loaded so.
We will need to raise capital.
But we're never too specific on particular timing or exact amounts, Chris, but we do like to be transparent that when youre growing the business like we are we will need capital.
Okay.
Frank aside from the.
Technicality of becoming.
Portable segment.
Have you got any thoughts on stock.
Starting to provide some more detailed disclosure on the water business is it is it is growing.
Hello.
We've had great success. This last year and of course, we will close it this year, which will double the size of that business, we're getting there David heads.
Has said a few times that we're looking we'd like to get $500 million or so invested in this business over the five year plan and I think you're getting to the point, where you've got enough.
In that segment that.
We're probably going to have to start talking a little bit more about the earnings breaking that out and it's again as we have the renewables business growing.
We.
We expect to provide some detail there.
Other than that we do have kind of a 10% net income sort of a threshold. Typically you are assets that we would start looking at it breaking that out but on the water, we're still not quite there, but let us get far west closed and that's not the end of our dreams in that business I think we see a lot of opportunity in our water pipeline right now the business development team has been.
Busy and we would expect to keep growing that and as it becomes more and more material. We will have to we know we need to disclose more about that.
We're not quite to scale here and we'd like to get a little closer to that does that and does that comes through.
And just one last thing Kevin you talked about synthetic gas can you just elaborate on.
The synthetic gas that you sort of put into your calculus there.
Yes, I think one of the reasons.
Certainly we have a lot of excitement around hydrogen is just the flexibility and.
The ability to leverage our expense and so on.
As we've talked about before and we're obviously looking at blended hydrogen right into our system and a certain percentage.
And dedicated hydrogen system down the line, especially for <unk>.
Australia.
But theres also the sweet spot in the middle which is synthetic gas or mezzanine and hydrogen where do you take.
Potentially renewable electricity you create renewable hydrogen and then you add Louisiana to permanent desktop processor, maybe even power generation emissions and.
Turn it back into the gaseous form and Erik may call that synthetic gas or mezzanine and hydrogen and the beauty of that is that you can flow that directly into your pipeline system not unlike GAAP R&D and <unk>.
Interchangeable than with the conventional natural gas molecules centers now blending limits you can put it in your storage leveraging that long duration storage.
Asset and benefit in the gas system. It is one more Scott so it adds a little bit of cost at when we.
The valuation of that at scale.
We think it can be.
Cost competitive with R&D and we're certainly looking at all of those applications of hydrogen to ask questions.
Pete.
Okay. Thank you everybody I appreciate the details.
Thanks, Chris.
As a final reminder to ask any further questions. Please press star followed by one on your telephone keypad.
Our final question comes from the line of Simon Cowell from Stiefel Zelman. Please go ahead.
Good morning, gentlemen.
Good morning, let me just follow up on the on that last question. When you were talking about the methane gas does that require.
Any incentives from the government in order to make that work are you guys seeing that economics.
Done on their own without any.
Subsidies so to speak.
Well some of the analysis, we've done if you can get it out right. If you can and the benefit of.
NASA needed gas or synthetic gas that you can cite.
The electric lines or add a big renewable energy facility like Sam Big Wind farm.
The opportunity there as you could get it to scale.
And when we've done the analysis and argument can be close to what some of the R&D is coming in now.
That said I think our view is that we are going to as an industry and as.
The energy.
Throughout the energy sector, we're going to need incentive from the federal government to drive the cost counting of hydrogen and all the different applications.
I don't think I'm alone in the gas business I think we're hearing that from our electric friends and also from transportation.
Not only do we believe that that will enable.
Development much quicker, but we believe that to growing recognition at federal government.
Yes, Selman HCA has been very actively even my role last year's chair working on the hill, even with the secretary of energy.
And there is a recognition that hydrogen.
Thank her words, where and we need to have a moon shot on it.
And so I think all of these if you want if you are really serious about de carbonization and addressing climate change, it's our belief that it's in all of the above strategy.
The federal government has got a role here, including state governments frankly.
To support the transition frankly, like we did when I started my career in the Eighty's with wind and solar.
We wouldn't be where we are with those two asset classes without the stimulus that was provided to make that happen. So I think it is a big piece of it but I also think as Tim indicated I think this is moving forward anyway and its competitive with renewable natural gas. If you can get to the scale she's talking about.
Great. Thank you for that.
On the topic of <unk>.
You guys noted.
You are down to about 3% of your sales being at RFG.
Can you talk about the growth rate of that and so a year from now can you say what percentage you think you might be looking at.
As your sales.
So it is pretty grow to five does it grow to four does it grow to six.
Yes.
Yes. This is Justin <unk> happy to take that question.
Under <unk> 98, which is our RMG, enabling legislation.
We have right now of 5%.
Sales volume target by 2025 that increases to 10%.
So thats really what we are tracking to in terms of our internal.
Projections.
Work that had been a renewables team is doing both procuring and investing and RMG that could evolve as other policies evolve.
And at the state and potentially at the federal level.
As we look at longer term, including our 2050 vision, we see getting to much higher levels.
Renewables.
And we are very optimistic that we are able to execute on that.
Got it.
And then just last one for me here on the $50 million of investment.
<unk> can you guys talk about your expected returns for that.
Hey, Selman, it's Greg here.
Yes.
We have an expectation that in this segment, we can get.
10% north of 10% IRR.
Our nonregulated R&D investments.
Unlevered.
Got you.
Should we think of that as I know.
David kind of referred to is still kind of spooling up.
Waiting to see the business plan.
Is that 10% off of this investment or would that be 10%. Once you guys achieved some sort of scale.
No that would be off of this and so as we look at incremental investments that if you.
Will the hurdle that we would look to cross to to make that investment. So no theres no scaling involved for that.
Got it thank you very much.
Thanks, gentlemen.
We currently have makes that question. So I'll now hand back to David Johnson for any closing remarks.
Well, thank you Lauren and thank you everybody for joining us. This Friday morning, obviously, if you have any further questions. Your detailed questions. Please reach out to Nikki you have her number and she'll be happy to help you out with that have a great weekend and Loren will shut the call down thanks, everybody.
This concludes today's call. Thank you for joining you may now disconnect your lines.