Q4 2021 Civitas Resources Inc Earnings Call
Good morning.
My name is David and I'll be your conference operator today at this time I would like to welcome everyone to Civitas resources fourth quarter 2021 earnings Conference call. Today's conference is being recorded all lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press. The Stark you followed by the number one on your telephone keypad, if you'd like to withdraw your question Press Star one once again. Thank you. John ran you may begin your conference.
Well. Thank you operator, good morning, and welcome to Civitas as fourth quarter and full year 2021 earnings conference call I'm joined today by Bendel, Chairman and interim CEO , Barry <unk> CFO , Matt Owens CLO and other members of the executive management team.
Yesterday, we issued our earnings press release filed our 10-K and posted a new investor presentation, all of which are available on the Investor Relations section of our website. Please be aware that on today's call. We may make forward looking statements. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ.
Really from projections. Please read our full disclosures regarding forward looking statements in our 10-K and other SEC filings on today's call. We may also refer to certain non-GAAP financial metrics reconciliations to certain non-GAAP metrics can be found in our earnings release, and SEC filings as well I'll now turn the call over to Bendel.
Thanks, John and good morning, everyone.
Fourth quarter was a transformational and highly successful wanted to set of tests as we closed the merger with the extraction and the acquisition of Crestone peak on November 1st and began building the future of civitas.
Before discussing our performance I want to thank all the employees for their hard work over the last several months and diligently integrating the three companies and beating expectations on the first quarter as a combined company.
As Colorado's largest pure play E&P in the SaaS carbon neutral E&P company on our scope, one and scope two basis, we are very excited about the company's future.
Civitas is leading the industry and executing on the new E&P business model, where you have a simple business model focused on optimizing the development of our high quality assets.
Let's focus on costs, expanding our cash margins protecting our balance sheet and returning excess cash flow generation to shareholders.
This is also being done with an acute awareness of our environmental footprint, which we continue to minimize as we stated in conjunction with the closing of the mergers we are firm believers in the value of disciplined consolidation on this note. We recently closed our acquisition of D. J basin, operator bias in oil and gas.
While small this acquisition is a perfect case study of the rigor and discipline that goes into our acquisition evaluation. The bison assets, which are expected to add an annualized average of 9000 barrels of oil equivalent a day.
Really high margin contribution to our March to December 2022 production.
Were acquired at a discount to PDP PV 12, and 1.6 times 2022 estimated EBITDA in an all cash transaction.
Civitas does not expect any additional G&A head count from this transaction further highlighting the synergies and cost savings, we were able to extract through consolidation.
<unk> great. These assets under its carbon neutral policy further reducing basin wide net emissions on the ESG front civitas is committed to producing energy in the most responsible manner and we will always strive to be a part of the solution the challenges faced by our communities.
<unk> is a clear leader in the industry when it comes to emissions at tendency. We're very proud of our recently announced commitment to voluntarily ploughed 42 wells that were often by previous operators in and around our operating areas and the Adams Arapahoe, Albert Laramie, Broomfield and Weld counties in Colorado.
These wells represent roughly 10% the 410 total oil from wells in the state of Colorado right now.
Lastly, before I turn it over to Maryann Ella.
We're excited to follow through on our commitment to having an industry leading shareholder returns policy with the announcement of a $1 21 per share total quarterly dividend to be payable on March 30, <unk> to shareholders of record on March 18.
This is composed of our previously announced and paid.
Is there a point at 465 per share base dividend and inaugural variable dividend of 0.75 per share.
This is one of the highest payout ratios in the industry and that our current share price implies a top tier roughly 10% yield all while maintaining our pristine balance sheet.
Now I will turn the call over to our CFO .
<unk> to walk through some financial highlights.
Thanks Ben.
We had a solid first quarter as a combined company exceeding expectations on all fronts relative to guidance.
On a pro forma basis average sales volume of 153, five <unk> per day during the quarter.
Came in at the high end of our total guidance range of 148 to $1 54.
At the high end of our oil guidance range.
Total capital expenditures in the quarter up roughly $225 million.
Came in at the low end of our guidance range of $2 $20 million to $260 million on a pro forma basis.
On the G&A front, we are proud to report that almost all transition employees have been really.
And we're down from almost 500 employees at the combined company.
Just over 300 as we sit here today.
On this note our go forward cash G&A and LOE on a per BOE basis is expected to be over 30% less than on a standalone basis on an oil heavy production mix.
Solidifying civitas disposition at the cost and margin leader in the basin.
Our 2022 guidance is consistent with our messaging since the formation of civitas.
Keeping production broadly flat delivering a low cost structure, eliminating reinvestment rate.
Our 2022 operated plan reflects three and a half rigs and three frac crews.
To deliver total production of 156 to 167 Boe per day.
Pulse of approximately 45% oil and 70% liquids.
This guidance reflects 10 full months of contribution from the Bison transaction, which we closed last week on March 1st.
You will notice a higher percentage of oil and our 2022 guidance, which is due to a large portion of 2022 tails coming from our lower <unk> area as well as the newly acquired Bison asset. We expect this trend to continue in 2022 and beyond.
We expect our all in controllable costs, which include Opex gathering and processing and cash G&A to be under $8 per Boe in 2022.
Which positions us as a cost leader versus peer companies with a similar commodity mix.
Given our slightly higher oil mix combined with this low cost structure.
We expect 2022 unhedged margins to.
To be higher than fourth quarter 2021 level.
This capital program implied 2022, unhedged free cash flow yield of over 20% at $75 oil.
I would note that the bison asset come with a higher 2022 reimbursement rate then civitas target.
We plan on finishing up the bison in 2022 program and then bringing reinvestment rates in line with Civitas. This strategy in 2023 further increasing free cash flow yields.
Regarding inflation, we are seeing total well costs increased roughly 15% from this time, a year ago, mostly relating to feel and fuel price increases.
We have recently completed me re bidding out of all of our major equipment that services and our capital guidance reflects the results of this process.
The operations team continues to find efficiencies to offset these cost increases.
I'll turn them materials utilizing existing facilities decreasing cycle time and additional operating scale.
Excluding the recently completed <unk> transaction, our yearend PDP reserves came in at just over 300 million Boe with an associated PV 10.
$4 3 billion at SEC pricing of $66 oil and $3 60, some gas.
$4 8 billion at $75 oil and $4 gas.
Our total proved reserves are approximately 400 million Boe at year end and have an associated PV 10 of $5 3 billion at SEC prices and $6 1 billion at $75 oil and $4 gas.
Our proved reserves at year end or approximately 80% developed.
I'd like to point out that our proven undeveloped reserve bookings are extremely conservative at 234 gross locations are.
Less than two years of inventory at a flat three rig pace.
None of these are figures include the bison asset.
Inclusive of bison, our PDP PV 10 value at $75 oil and $4 gas is $5 2 billion.
We consider our balance sheet, our core strength and strategic advantage that we're focused on maintaining.
As of March one and pro forma for the bison transaction Civitas.
<unk> balance sheet consists of $500 million of total debt and approximately $140 million in cash with liquidity exceeding $900 million.
Our fortress balance sheet, consisting of two times leverage.
This is just us as one of the least levered companies in the industry.
In addition, we have minimum metric volume or other commitments affording us significant flexibility in our capital program.
We will be committed to maintaining low leverage and high degree of financial flexibility with a stated leverage target of <unk> five times.
I'd like to thank you all for joining the call. This morning and for your interest in Civitas and with that I'll turn the call back to the operator for Q&A.
Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.
We will take our first question from Neal Dingmann with Truth Securities.
Your line is open good morning, all thanks, good morning, all thanks for the details.
Ben maybe my first question just overview, how you're thinking about what the shareholder return.
If prices stay here continuing to free cash flow story is tremendous so I'm just wanted to shareholder returns sort of allocation how do you think about continuing.
Continuing to walk up the variable dividend versus buybacks or whatever else you might want to use that free cash flow for it.
Sure No I appreciate the question I think as we stated before I would say we have a high base dividend we've outlined now.
<unk> cancellation for the variable dividend wedge if commodity prices obviously are sustained.
We will continue to grow.
After that the real question is how do you think about buybacks, how do you think about consolidation.
And in fill M&A.
And then how do you think about a special dividend Yeah. What we said is we'll continue to look to do accretive transactions and consolidation in the basin I think we demonstrated that with bison.
After that it's going to come down to a discussion about what's best in terms of the easiest way to return capital from a buyback strategy or additional dividends.
Yes, I think that makes sense and then just on operations at three and a half sort of rigs I'm just wondering maybe for you or Matt.
Is that.
When you look at sort of the optimal.
Efficiencies will go out of your rigs a lot of it just the operations in general.
That plan are you getting that.
Or is or would you prefer to.
Maybe ramp that up a bit to four to five rigs in order to get more ophthalmology, just wondering when you talked about.
Max sort of efficiencies.
We'll definitely have seen a notable upside there I'm just wondering.
Are you are you seeing that at the current plan or the things that you could do that even even pushed that efficiency further.
Yes, Neil maybe I'll start and then hand over to Matt I mean, I think we have seen significant synergies in our operations from the consolidation of the companies both from a capital stand point operating midstream land I think we're very comfortable with our capital program for the year that we've already outlined I don't think Youll see.
Our strategy, mainly divert from that.
Yes, I'd say Neil to add onto that three rigs is a pretty good sweet spot for us. It makes us one of the most active operators in the basin, we're able to keep up with it with all of our needs at that we're obviously able to flex up a little bit more like we are with bison, but I think something around three three maybe four rigs at most is what I'd say.
Pretty optimal as for what we're planning to do in the basin right now.
Thank you all.
And next we'll go to Michael Schiavo with Stifel. Your line is open.
Hey, good morning, everybody.
Maybe a follow on to Neil's question, Ben you mentioned.
You mentioned you'd way buyback.
Buybacks versus special dividends versus.
Further consolidation just wondering how you see the remaining landscape you do have a slide in your presentation slide nine showing.
Some of these other companies out there.
You know after you've acquired bison ear and PTC acquired great Western or these other privates in the D J.
Still work pursuing is there any inventory there that's worth pursuing or I guess just some.
Some more color on how you view the potential consolidation going forward.
Yes, Michael I think my short answer to that is the depressed depends on price I mean, if we think we can consolidate additional players in the basin.
Where it's accretive to us both on EBITDA and free cash flow and Eva on production on proven reserves.
We're going to continue.
A few of those types.
Options.
I think obviously, there's less players left in there were six months ago.
Eylea obvious.
But look we're going to weigh those transactions up against the economics of buying our own stock we have a very significant free cash flow yield I think the return to buying back the stock is meaningful and I think we will compare those A&D, our M&A infill opportunities versus buying.
Buying back stock or paying a dividend.
Ultimately when you look.
Management team the board and the shareholders is a very high degree of alignment here to do what's in the best interest of all equity holders.
Makes sense.
I wanted to get an update on the permitting process as well any update on the <unk>.
The lone tree, Oh, GDP or that Watkins cap, you're still planning on.
A hearing in the first half on the cap any update there.
Yes. This is Matt.
Ill take a crack at that we've had first of all 46 form twos. So wellbore permits approved for the company. So far this year. The majority of those have to do with old.
Older Preapproved <unk> locations on the GDP front under the new rules. We have had two O. GDP is approved in the last couple of weeks, we had the launch Rio GDP approved for 14 wells down in the Watkins area and the Blue or GDP approved last week down in Watkins area as well for an additional <unk> <unk>.
Seven wells. So those now have been submitted for <unk> approval, we're hoping to get that in the next couple of weeks to continue adding to the amount of permits we've got approved so far.
In terms of other projects that we're working on just to give you a little bit of color on what we have going on internally.
We plan to submit in the near term another six Oh, GDP and when I say in the near term I mean through the first and second quarter.
Should encompass somewhere around 150 to 170 wells.
So various R. GDP, we're working on across various different areas. The majority of those will be in the near term in the southern area and then we have a couple of other of GDP is about a half dozen that I would call mid term or GDP that we're looking to submit sometime after mid year.
And that would be another 65 wellbore itself on the <unk> front for what we've gotten approved already and what we're planning. This has made over the next couple of quarters as kind of a 100 wells.
And that's all in addition to the cap that we're working on so the cap as you mentioned.
Was resubmitted by us addressing questions a few weeks ago.
That will be is still around 160, <unk> two mile long equivalents in total and we're planning internally right now to hopefully past completeness with that by the end of the second quarter and then possibly have a hearing sometime mid summer.
Final final approval on that OTT, sorry that cap.
Sounds good I appreciate the detail.
Next we will go to Phillips Johnston with capital one your line is open.
Hey, guys. Thanks.
Just a question on the variable dividend framework, obviously, the first one out of the gate.
Based on trailing 12 month free cash flow.
Is that going to be the approach going forward indefinitely or is that.
At some point shifts are a function of the prior quarter's actual free cash flow.
Hey, Phil Thanks for the question.
We're going to stick to that 12 month trailing I think its our intention to remove variability from that from them.
We're able to go ahead, if you will so yes.
That framework to be held on a go forward basis.
Okay. So I'm just wondering I guess, maybe how we should model it out for the next three quarters or so since I guess, we don't have actual free cash flow for the combined.
Three companies for 2021 is that something you guys might provide.
Yes, I mean, I think if you look at the at the fourth quarter.
We have a strategy of keeping production flat now inclusive of the bison capex. The capex for the full year, it's not really going to be all that different from what it was in the fourth quarter. So I think you can look at the at least for the next two to three quarters, while we roll into a full set of task pro forma 12 month basis.
You can look at the fourth quarter, specifically production EBITDA and Capex Thats a good run rate for those next few quarters.
Okay, perfect and then.
The clarity you guys.
We don't expect to pay cash taxes. This year can you just remind us what your tax situation is and at what point you might start paying cash taxes.
Sure. So yeah, obviously, we gave guidance of 75 and four bank refresh in the analysis, putting the combined companies as you might imagine.
I would say for 2022, we think we are going to be fully shielded from a cash tax impact up until about around $90 until after which we start tapping out of different limitation.
From that kind of a legacy company three to standpoint.
Okay.
Free and clear to 90 above that partial cash taxpayer for 2022.
Okay sounds good thank you.
Yes of course.
Okay.
Next we'll go to Leo Mariani with Keybanc. Your line is open.
Hey, guys wanted to follow up a little bit on the permits here. So nice to see that you got some you know recently I appreciate that update but as you look at 2022.
At the program this year and is it kind of fully permitted at this time in terms of the three five rigs or is there still a little bit more.
Go here and then just.
Looking into any kind of next year do you have any permits that extend into you may be a longer term 'twenty three plan.
Okay.
This is Matt thanks for the question.
This year is not fully permitted but we're fully permanent through probably the fall and we've got we've got the permits submitted and are pending for everything else. So as we've been getting some of these approvals that I just mentioned.
In hand, that's what it will be sliding into the schedule.
So for the plan or the rig schedule that we currently have laid out we do anticipate getting approvals.
Our final approvals on those in the next.
Over the next couple of months and some of those are obviously the GDP that we just recently had approved as well.
Okay, and then can you just maybe generally speak to what Youre seeing out of the state obviously, they kind of just started approving permits under new rules kind of end of last summer last fall. So have you seen like any pick up in terms of state response times, just kind of any color on maybe what you're hearing there.
Yes.
Yes, it's Ben here I'll make a couple of comments and then Matt can follow on.
I think it's dangerous to make blanket statements gross what we see in this day Civitas has defined a pretty unique position in terms of who we are and what we're trying to do as an operator, both from a net zero standpoint, and our commitments we've made to the orphan well program and I think we've had very good dialogue with.
With multiple messages to stay on the county level and local level about what we're doing and I think there's a general appreciation of that so I think it's very difficult to look.
<unk>, two <unk> and compare them against each other and make blanket statements about what youll see in the state.
I'll just add on to that Leo I mean, we like the permits and the pads that we've chosen and selected and that we're currently working through the process on.
We have only had the two approved that we've submitted so far but they were unanimous approval and we're confident with the other locations that we have submitted and are working through the process as we speak.
Okay. That's helpful for sure and then.
Is there any update I know, it's a little bit early on the CEO search that you guys are working on.
I mean, the board is actively engaged in that Leo is seeing a number of candidates until into them. I think we've made good progress and we think there is a high quality pool of talent out there to pick from.
Would expect as we guided before.
Next two to four months, we will have more color on who that individual is going to be.
Okay. Thanks, guys.
Next we'll go to Joseph <unk> with Wells Fargo. Your line is open.
Hey, good morning, guys.
Just wanted to follow up I think it was on slide nine talking about kind of the target reinvestment rates.
Being a little bit elevated this year, obviously with the bison program, but returning back to normal in 2023.
Just looking to get a little bit more color on that are those reinvestment rates kind of in line with the ones previously outlined.
Back in November .
Hi, Jay.
Thanks for the question I'd point, you to our February one relief, we're going down the path on on a standalone basis.
<unk> been running three rigs.
Anthony The Python program. If you look at how much production is relative to the Capex.
It's quite significant so for 2022.
Yes, it's quite a bit.
Capex, so on a standalone basis, you'd probably expect us to get back to that three rig level in that.
<unk> done on the T mobile guys last probably what I would guide details for 2023 and beyond.
Okay.
Okay. Thank you.
Other questions were answered so I'll hand, it back.
And as a reminder, ladies and gentlemen to ask a question Thats Star one on your telephone keypad next we'll go to.
Noel Parks with Tuohy Brothers your line is open.
Hi, good morning.
Good morning.
I'm just thinking about so much.
It was really changed just in the last few weeks.
And I apologize if this is something you already touched on but if we saw some.
Big shift and the relative strength.
Of.
Product prices oil gas versus Ngls.
I mean sort of something dramatic that looked like it might be sustainable sort of out of all the service global energy unrest, we have now.
Over what sort of kind of planning horizon.
Do you think you could incorporate that.
And maybe.
It could lead you to make some sort of shift in sort of your your drilling plans.
Just given the various product mix across the <unk>.
Operating areas.
I'm, sorry, I'm, assuming you've got <unk>, you've got a 'twenty two plan 2022 plan Thats offset looking beyond that when when might you be able to filter in some major changes if they happen.
Yeah.
Yes, no I think at a high level, we as a board and as a management team have a very clear plan about what we want to do for the next.
Two three or four years in terms of the overall framework for reinvestment.
As you know with the acquisition.
Crestone peak and the Watkins asset that significantly more oily and bisons more oily so as a firm we will traditionally become a higher percentage of oil over time, obviously in that environment, and thats pretty accretive and improves our cash margins and improves our recycle ratios and capital efficiencies. So we like that.
<unk>.
That being said I don't think youre going to see any other major changes to our program, yes, I made the statement earlier today, yes.
The curves heavily backward dated.
Look at returns on a multiyear basis is clearly a highly cyclical and highly volatile industry and I think the base assumption is that we're going to stick to our existing plan and that youre not going to see a material shift in that over the next 12 to 24 months.
Okay.
Great. That's all for me thanks.
Next we'll go to bill develop with tightened capital your line is open.
Thank you relative to the bison transaction.
The initial announcement relative to the final announcement, there was a change in terms of that.
Shares versus cash would you walk us through number one how that negotiation and change took place and ultimately what you were trying to accomplish.
Potentially what bison was trying to accomplish with that change.
Yes.
However, it's too much details, but obviously, we'd made the original proposal where the combination of assuming that a small portion of cash and shares since the announcement of the shares traded down the commodity trade it out.
So the returns for us converting that into a cash transaction were pretty attractive and I think.
Ill speak for the seller, but I think they added desire liquidity.
Also by converting into cash, we obviously avoided having to pay the dividend on the incremental share of the net benefit to us of.
Doing that I think also as you look at the framework for the company down the road you can obviously model out the cash position that EBITDA.
Get to as we go into the second half of the year and given that cash position there will be a discussion about what we do with that excess cash and as we've been asked before in this call about the role of buybacks. The way I alluded to that transaction was an opportunity to essentially avoid the dilution and not have to buyback the shares.
Later on.
And we view that as a pretty attractive and when you look that improve the overall returns of the transaction.
Thank you for the color.
Next we will go to Phillips Johnston with capital one your line is open.
Okay, sorry, I just wanted to follow up on R 22, reinvestment rate falling next year I guess.
In addition to dropping back to three rigs I noticed youre planning on drilling 200 wells this year, but only planning to bring in 160 online.
Is that also a tailwind that should help improve capital efficiency and the reinvestment rate next year is just the number of wells brought online ultimately catches up with the number of wells drilled.
Yes.
So if you look at what <unk>.
Happen in the second half.
2021, we brought three companies together there was a lot of operational work. We did we kind of had a brief hiatus.
And some of our activity, which we sort of have now ramped up and getting back on track I think the other thing I'd point out is we've changed some of outflow back design completion designs gone towards more of the slow back model. So that impacts our production comes out relative to Capex.
The goal of the board has continued to improve capital efficiencies drive down capital costs improve EU expand cash margins.
I think we're confident as a management team we can continue to do that Diego.
And I think part of that will be that the slide deck.
<unk> build up that will occur as we roll through the year.
Yes and on.
Matt we're not intentionally trying to build ducks, we're letting it kind of be guided by the development plan that we have in a specific area and with the bigger block year positions that we have some.
Sometimes we have to drill a couple of pads before we can start completing one and turning it on to avoid interference and so that that will kind of ebb and flow and kind of dictate what are our DUC carryforward is at the end of each year.
Okay makes sense thanks, guys.
And next we'll go to Doi on Shah with Mckay Your line is open.
Hi, Thanks for taking my questions.
Two questions first if you could.
Give us an update on how youre thinking about M&A.
The opportunity set looks like out there I'm just wondering if this talk about.
Returning capital to shareholders or this emphasis on it might be interpreted as activity kind of slowing down on the M&A front.
And then the second question is more housekeeping, if you could comment a little bit on the derivative cash settlement in the quarter and how that may or may not relate to the cash acquired as part of the Crestone peak.
Peak and.
Extraction acquisition. Thank you.
Sure I'll take the first part of that I don't think you should interpret our comments as well.
Anything around the M&A landscape or a change in the dynamic we continue to see consolidation opportunities within the basin, we continue to evaluate them.
Now framework as they've got to be accretive across the board for us.
On EBITDA reserves.
<unk> production et cetera.
Where we see it accretive.
Accretive attractive opportunities, we will execute on them and we see a lot of benefit from that and we've obviously seen that through the bison transaction.
Nothing has really changed that framework stays the same for the hedges out, let Mary and I will take it.
But I guess are there I'm sorry.
On bison are there are there other acquisitions like bison available still.
I'm just trying to understand like the size of the opportunity set that you have right now.
Yes, I think if you look at slide nine we highlight some of the other players in the basin bayswater confluence mallard for that.
I would say they range in size.
Sure.
10000 barrel to 30000 barrels.
Yes.
I cant speak around specifics of album.
Each of them have different pros and cons right.
Again at the right price, we'd be active participants in further consolidation.
Thank you.
And then I will take the one on the unwind with Marine also we spent 110 million roughly all in the fourth quarter.
To your point it did not have to deal with anything related to the legacy companies with a decision that that current born in this current management team undertook so when we inherited.
Hedge was from the legacy companies.
The hedge book there was reflected a different balance sheets right and so we ended up on wining roughly 6 million barrels.
And our weighted average cost of like around 62% to 63.
No nothing related to the legacy companies. That's just a decision that we looked at our balance sheet, we looked at our cost structure and we really felt like we could optimize pricing received from that perspective and obviously.
And there have been a good decision in hindsight I guess every new on hedging, yes, hindsight 2020, but but no. It didnt have anything related to cash.
Cash or hedged position with the legacy company necessarily.
So the cash that was acquired that was that was.
Kind of predetermined so unrelated to the decision to unwind as many of the hedges as you did.
So the cash it was inherent or from the legacy companies.
Just cash that side of our balance sheet at 11 WAF at closing.
<unk> expenses.
So he came in December .
After some rigor rigorous validation at the pro forma hedge book.
Okay and can you say.
Say again, how much was unwound because I thought it was in excess of $200 million.
So no the actual unwind for roughly $110 million I think what youre thinking in the $200 million. There was excess of just normal course settlements.
Tissues that did actually settled during the period, that's how you get to that 200.
Roughly $110 million unwinding, roughly 6 million barrels of oil.
Okay. Thank you.
Okay.
Go ahead, what are you going to say.
No I was going to say that the provisions for wastewater those technology, therefore out of periods provision, so theyre cover 2022% or 2025.
Got it thank you.
Yes.
There are no further questions at this time I will now turn the call back over to Ben <unk> for any additional or closing remarks.
Well I'd just like to thank the team for all their hard work through this consolidation I'd also like to thank the investments, we're making the time to listen today.
No questions you'd like to take offline and the management team will be available we look forward to continuing the dialogue. Thank you.
This concludes today's conference call you may now disconnect.
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