Q4 2021 Whiting Petroleum Corp Earnings Call
Good morning.
My name is Sarah and I will be your conference facilitator today.
Welcome to Whiting Petroleum fourth quarter 2021 conference call.
The call will be limited to 45 minutes, including Q&A.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer period.
If you would like to ask a question simply press Star then the number one on your telephone keypad.
If you would like to withdraw your question. Please press Star then the number two on your telephone keypad.
Please limit your questions to one question and one follow up.
I will now turn the call over to Brandon Day, Whitings Investor Relations director.
Thank you Sarah Good morning, everyone. This is Brandon day Whitings Investor Relations director. Thank you for joining us to discuss <unk> fourth quarter results for the period ended December 31 2021.
With me today is widening CEO Lynn Peterson, and our CFO Jimmy Henderson.
Also available to answer questions. During the Q&A session will be our CEO chip rimer. Please.
Please be advised that our remarks today, including answers to your questions include forward looking statements within the meaning of the private Securities Litigation Reform Act.
These forward looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently anticipated.
Those include risks relating to commodity prices competition technology, environmental and regulatory compliance midstream availability and others described in our filings with the Securities and Exchange Commission, which are incorporated by reference.
We disclaim any obligation to update these forward looking statements. In addition, we may provide certain non-GAAP financial information on this call the relevant definitions and GAAP reconciliations may be found in our earnings release, which can be found on our website in the Investor Relations section.
In the prepared remarks, we'll open the call to your questions I would like to remind everyone that a replay of this audio webcast will be available via the company's investor Relations page on our website I'd now like to turn the call over to the CEO Whiting Petroleum Mr. Lynn Peterson.
Thank you Brandon good morning, everyone. I appreciate you joining us for.
The call. This morning, I want to keep all this in perspective in light of what's happening on the world stage, well above all else, we hope pieces restored as quickly as possible.
You can refer to our 10-K, we filed yesterday in our news release for detailed information as well as reconciliations to non-GAAP measures.
2021 was a strong year, we exited the year with some momentum and expect to see another good year in 2022.
We exceeded our guidance numbers, we paid off the balance of our revolver.
We added inventory in our core areas and we've most recently took the first step towards our capital return plan by initiating our first ever regular dividend.
We're going to take a little different approach. This morning from our previous calls and I'm going to ask Jimmy Henderson, our CFO to spend some time discussing our fourth quarter and full year results.
While we were assisted by a rising commodity price environment. Our team did a great job executing our 2021 program as well as the initiatives we set out at the beginning of the year.
Once Jimmy concludes I want to talk about our 2022 program a return of capital approach for 2022 and cleared up some questions that arose from our last news release Jimmy.
Jimmy I'm going to turn it over to you for the financial results.
Alright, Thanks Glenn.
Echo your thoughts on.
Our thoughts and prayers go out to Ukrainian people on news.
We're all watching here.
Hope its pieces resolved quickly.
Well I hate to start off a bunch of numbers that I know you all read in our filings already I do want to highlight a few few things a few results that are really striking.
In the fourth quarter of 2021, we had net income on a GAAP basis of $292 million or $7.34 per diluted share as compared to 198 million or $5 per share in the previous quarter.
Adjusting for certain items, but primarily the mark to market of our hedging transactions. We had adjusted net income of $168 million or $4.23 per diluted share in the fourth quarter as compared to $142 million or $3 57 per share for the previous quarter.
Adjusted EBIT, Dax was $226 million compared to $201 million in the previous call previous quarter.
The increase primarily due to the better commodity prices and a slight uptick in our oil production quarter over quarter.
Our production on a barrels of oil equivalent basis.
Remained relatively flat quarter over quarter, averaging 92, 8000 Boe per day compared to the third quarter production of $92 1000 Boe per day.
Oil production for the fourth quarter averaged $52 9000 barrels of oil per day, which is up slightly from 51 8000 barrels of oil in the third quarter.
Oil differentials were considerably higher in the fourth quarter as overall basin production levels remain well within total takeaway capacity.
And as we move into 2022, our term commitment levels have decreased resulting in more exposure to spot value premiums that we're seeing now.
Our natural gas prices benefited in 2021 from a premium at our primary pricing point.
The insurer point as compared to Henry hub, and NGL prices continued to be strong in the fourth quarter at an average percentage of WT I oil of around 37%.
Just for context. This compares to less than 20% that we were experienced in the same quarter last year.
As noted last quarter, the majority of our gathering and processing agreements are structured as fixed fee contracts and therefore receive a more pronounced benefit to our net realized price at current residue gas and NGL benchmark pricing.
The company invested capex with about $66 million during the fourth quarter to bring 16 gross 12 net wells onto production and we drilled 17 gross 10.4 net operated wells.
We ended the quarter with 34 gross 22, net drilled and uncompleted wells.
We currently have two rigs running and one completion crew.
Both of those drilling rigs are in the Sanish field and our completion crews working in the Cassandra area.
Lease operating expense was $62 million for or $7 31 per Boe for the fourth quarter of 'twenty one.
Note that <unk> continues to be impacted by <unk>.
Expense Workovers that we've talked about previously.
Our cash G&A expenses were $12 million for the fourth quarter and for the year totaled about 39 million, averaging right around $1 16 per Boe.
For 2021.
We also disclosed our year end proved reserves in our 10-K in our press release last night.
And we did see a dramatic increase year over year with an estimated total proved reserves totaling 326 million Boe.
With a pretax PV 10 value of $4 4 billion at year end compared to 260 million Boe.
And $1 2 billion at year end 2020.
Pricing under SEC rules increase by approximately $27 per barrel to $66 50.
<unk> 56 per barrel at December 31, 2021, compared to December 31, 2020.
Gas increased <unk>.
Increased to $3 60 per M b to use compared to $1 99 for.
For the same two periods.
Obviously these price changes were the biggest factor in the year over year changes.
But we also added $20 3 million Boe through the drill bit and 16 million with acquisitions, which more than offset the decrease from selling our Colorado assets.
Lastly, I'll point out that our proved developed properties accounted for roughly 80% of our total proved reserves with approximately $3 6 billion in value.
Noting that this values at SEC pricing of around $67 per barrel of oil as compared to spot prices today.
With that I'll turn this back over to Lynn and talk little bit about where we're headed in 2022.
Jimmy there were a lot of numbers there so I appreciate that again.
Again, thanks to our entire team for the great efforts during the year.
Divesting of our Colorado properties, combined with adding meaningful inventory through our acquisition work, we will pay great dividends in future years.
And we should really start to see the benefits occurring at the end of 2022 and moving into 2023 with our development plan.
The board and management understands the importance of returning capital to shareholders.
We've had much engagement throughout the last year by our board and we're excited to lay out our plans as we go through the year.
As such the board approved a quarterly dividend of <unk> 25 per share that will be paid beginning in March which was only the first step of our capital return program.
Our board wants to be very thoughtful and measured and developing a plan.
To that end, we've had multiple discussions of stock buybacks and fixed and variable dividends.
And I am completely comfortable in saying our board of directors is going in this direction and we would expect to lay out additional information that would place the company in the fairway of what we are seeing from return of capital from our peers.
When we look out over the next four years and consider $70 price environment for WTS crude where I see our company generating free cash flow.
Approximately the same as our current market cap.
I know, we live in a world of instant gratification, but again I will state that our board of directors is aligned with our shareholders and we will methodically develop a return of capital plan that should please our shareholders.
And I want to shift and outline how we thought about our 2022 capital plan and production profile.
Looking ahead, we will have a slightly higher activity level, we will have larger working interest in the wells drilled and completed in our Sanish field due to the acquisitions.
We anticipated an increased level of non operated activity and.
And we have built in inflationary factors. So we are currently experiencing and anticipate throughout the year.
Our supply chain team has done a great job of locking in many of the big ticket items for the first half of 2022. However, we are less protected in the back half of the year.
We estimate the inflationary pressure to the program to be in the low double digit percentages, but the high end of our guidance has contingency for higher inflation should that become an issue.
Turning to our production profile.
We have shifted some production from the first half of the year and into the second half.
Due to the drilling and completion activities on a five well pad mentioned in our previous release we.
We had to rig down in the patent January and we'll be moving back in March this delay combined with our current activity in the Sanish field create somewhat of a hockey stick moderating our overall 22 production, but creating impressive growth as we exit the year and move into 'twenty three.
Which should benefit with a sharp increase in production.
In February we announced the acquisition non operated assets in our Sanish field.
We negotiated these transactions in the fall of 'twenty, one and a lower price environment, and we believe they add significant shareholder value.
We have been able to hedge production from these acquisitions, but at a much higher <unk> pricing.
The acquired interest include wells currently on production well.
Wells that have already been drilled and are awaiting completion in 'twenty, two as well as significant interest in wells scheduled on R 22, and 'twenty three drilling programs.
As a field that we understand very well and I have a high confidence in the well economics supporting our belief that these are highly accretive transactions with excellent risk adjusted returns.
We're starting 'twenty two in an incredibly strong financial position and I expect to have attractive cash flow from operations during the year.
With our current hedges in place and using the $70 price for Debbie T I M $4 for gas.
We model over 900 million in EBITDA, resulting in over $500 million of adjusted free cash flow.
Which demonstrates that we can continue to grow our return of capital program. While also continuing to pursue acquisition opportunities that will compete with our current profile.
By investing in Whiting, we think shareholders can really have it all and with that I'll turn it back to Sarah Thank you.
Thank you.
We will now begin the question and answer session.
That's a good question you May Press Star then one on your telephone keypad.
If youre using a speakerphone please pick up your handset before pressing Ricky.
To withdraw your question. Please press star. Thank you.
As a reminder, please limit yourself to one question and one follow up at.
At this time, we will pause momentarily to assemble our roster.
Our first question comes from Leo Mariani with Keybanc. Please go ahead.
Yes.
Yeah, there are legal.
Yes, Hello, sorry.
So why do you obviously had strong production here in the fourth quarter came in.
Bob Guide.
Hoping you could maybe provide a little color around what that what drove the good fourth quarter here on production.
You know I think we continue to see good performance from our wells and I'll, let chip.
Jump in here as well, but the team is trying some different things on completion I think we're seeing some benefits to this chip yeah. Appreciate it yeah, especially in our Sanish field.
Lacey Littlefield areas, we've seen we're going in there doing some <unk> right next to the wells that we are.
Stimulating the new ones and we're starting to see some impact and so we're seeing you know wedge production higher than we our original curves and also our base production staying up there.
Okay.
I guess just in terms of maybe some of those new stimulations are you all planning on kind of a excuse me a lot of that here.
And then in 2022, and just pretty broadly applicable across the entire base and is it more just in Sanish. What can you kind of tell us about that yeah. Leo it's little early to say, we're seeing that impact I'd like to wait for a quarter or two but we are pleased what we've seen so far and we'll see where it goes from here.
Okay.
Can you just talk about the M&A environment are you know a little bit obviously, you guys have done a few.
Smaller deals over the past several months, which.
In your wheelhouse, but are you seeing other type of bolt on opportunities out there or perhaps maybe there are some.
Bigger deals that you're eyeing here.
Martin.
Yeah, clearly, we're watching everything looking at many things as possible. Thank you also got a backdrop of a pretty progressive rise in commodity prices and I think it's made it.
A bit challenging people are joined their cash flow, they're seeing off these properties. So.
You know, we also want to make sure we don't buy on the high end here and watch oil drop over time, so we're being cautious, but we're looking at everything we can.
Okay. Thanks, guys.
Okay. Thanks.
Our next question comes from Neal Dingmann with Charles Please go ahead.
Good morning first question on desk kind of at Heathrow here, just wondering could you talk about how you are thinking about maybe for Jimmy first just speak to the delta on the spot gifts. This year versus 21 are you still guiding to that three or four off versus I think it was about four bucks in 'twenty. One I think you've mentioned more exposure to spot this year.
I think spots now at a pretty good place I'm just wondering on that end.
To tuck into that I know there was some to Apple news.
That has any impact near term, but I'm. Just also wondering how youre thinking about any of this to Apple news down the line on that on the desk.
Yeah, Thanks, No I'll start and I'll turn it over to Joanne to.
Correct anything that I say wrong, but.
'twenty, one over compared to 22.
If you remember 21, we started off the year with concerns about Apple and where there was a.
Kind of affected debts coming into the year.
The guidance that we gave was trying to take that into consideration and it certainly got better as we move through the year.
As things kind of normalize and production levels stayed.
Relatively consistent and within the total transportation capacity.
Joanne maybe I'll, let you talk a little bit more about the what you see on the macro side as well as dapple sure Yeah, and just a little bit more detail on 2021.
Mixture of various term link deal utilizing firm transportation on alternative pipeline, along with supply commitments into rail markets.
Strategically align with our crude gathering service provider system connectivity, specifically protect our larger producing areas and if you think about how that case unfolded and the timing, we really did layer in from Q4 of 'twenty all through up until right right in front of the majors.
So from there moving forward into 2020.
Most of the deals that acted as a physical hedge against an uncertain doubtful outcome had rolled off and what remains is a combination of retirement to various markets with more of a concentration on volume relative to last year.
And so with the recent decision of the U S. Supreme Court denying Dakota access petition to upheld a lower court decision basically reaffirming that.
And so we shipped ahead and expect a draft version of that here in the next few weeks with the official timing still protected.
Excuse me for September , but we're actually wondering if that timing will slip because you take into account how contentious issue is in the expectation that the numerous comments that will be filed for <unk> you.
There has been taken into consideration before the Ias is finalized we can easily see it slipping out.
Okay.
At the end of the day.
Thinking where we stand on the balance of this year, we looked at it as the Army Corps of engineers had the opportunity to go down a different road and they chose not to and as we factor in the macro outlook, especially in light of the most recent news along with an existing pipeline with continuous operations, we're cautiously optimistic on a favorable outcome.
And if anything that guided range that we gave I mean, maybe we could see a slight improvement to that.
We should given our proper introductions Joanne Stockton's, our vice president commercial here for Whiting.
Thanks for the details and then just one follow up.
Maybe Jimmy also for you you guys have had some outstanding return of capital that to me doesn't appear the market's fully appreciate I'm. Just wondering can you speak to potential additional return of capital that you are seeing for <unk>.
Well you know when you announced the dividend earlier this quarter and that's first step and I think it's pretty obvious when you look at our cash flow free cash flow generation that there is more to come.
Spoke to that quite a bit in the prepared script.
As we've talked about consistently over the last year. It was it's always been our intent to do this very methodically and thoughtfully and.
It goes one step at a time, so we've done that we've paid down our debt to zero.
We've been able to do an acquisition, which will pay off very quickly now we've announced the dividend.
There is more to come on that front.
<unk> been very consistent in laying out with our with our shareholders.
Very good. Thank you I'll look forward to it.
You bet now and just to reiterate our board is completely aligned with us on this week.
We just really wanted to do it one step at a time as Jimmy said there. So it's all good yeah that makes sense yeah.
Yes. It makes the most sense I'm glad that you started walking before rather than this it makes a lot of sense. Thanks. Thanks a lot.
Okay.
Our next question comes from Michael Brown with <unk>.
Please go ahead.
Hey, good morning, everybody, maybe just staying on that last topic.
In terms of a return of capital.
Lynn you said, you've had having a lot of conversations.
With the board everybody's aligned.
I don't want you to.
Try and front run what the board might.
Decided is the best Avenue, but I.
I guess in looking at share buybacks, just how do you think about that from a high level.
Versus where your stock is today and the opportunity to continue to.
To do these bolt on acquisitions.
How do you view the opportunity set there.
Yeah. Good morning, Mike Good to hear you.
I think stock buybacks is probably going to be our next step here, we've talked long and hard about it.
Clearly.
After we put our last announcement out I wish I had it in place. So I mean, it would have worked out pretty well so.
We just we see a lot of noise in the investment world today, and we've talked to are.
Our shareholders both long.
On the one losing value and everybody, we get a different message for everybody.
Some people want us to reinvest in properties someone has to pay dividends someone wants to buy our stock back.
So we're looking at all of these things and again, we just laid out the fixed dividend as our starting point here.
I think the next step would clearly be.
Stock buyback.
Announcement.
And then I think youre seeing more of the variable dividends I still think we've got more work to do on that one but I think all of these makes sense in conjunction with Youre seeing the free cash flow that we're generating here I mean.
<unk> seen companies payback 40, 50, 60% in some cases.
If we can get into that range I think will be very competitive with our peers out there. So I'm excited of what we Gotta go ahead, I mean again people wanted today, they don't want to wait I get it but same time I think I have a lot of respect for position our board has taken on this.
And we're excited laid out as we go through the year.
That's helpful. It sounds good and I know, you've steered clear of quarterly guidance in the past, but just wanted to see if you could give us any sense, maybe from a high level.
The expected completion cadence through the year or.
Should we just anticipate kind of a flat production throughout the year or is there going to be any variability given the.
The cadence of completions.
Again that was kind of the purpose of the comments here I think you're going to see a kind of a slow first half of the year with really ratcheting up as we exit the year and a lot of it.
Due to the comment I made earlier about the five well pad that we have been delayed on a little bit.
But.
So I think that was kind of the.
The disappointment when we put out a news that people didn't see the production overall and I would just moderated a little bit by this.
Pause or slowness on our five well pad I think if we ex out the year the numbers you had pretty significant.
<unk> yeah.
You're exactly right, so our til comps a little bit light in the first half and we're pretty strong in the back half of the year and Youll see that in the back half of the year.
On production.
Great. Thank you guys.
Thanks, Mike.
Our next question comes from Scott Hanold with RBC. Please go ahead.
Thanks, Good morning all.
Scott.
Yeah, Linda I don't want to beat a dead horse, but I feel like I'm going to hear on dividends versus stock buybacks.
Obviously made.
A lot of compelling cases that buybacks make a lot of sense.
And they do provide a lot of flexibility I guess to a certain extent and you know maybe at a high level. It would be helpful. If you could just give us a sense I know it sounds like buybacks are an option you are looking at and it sounds like the next step, but why why not that'd be the first step like what was the decision to go with the dividend before the buyback.
Well, Scott I wish it could be at a whole those investor calls we have because like I said, some guys don't want any dividends and there's one every penny of free cash flow. So you know these are hard decisions to make and again.
A lot of comments were.
<unk> want the cash in their pocket they can reinvest in the stocks they want to if they want to reinvest in something else they can stock buybacks.
And maybe we should have combined I'm not saying, we did exactly right here.
We probably should have announced the combination of buyback and a fixed dividend looking back now, but you know.
Again, we're going to get there quickly so I'm not too concerned.
We just thought we'd do the fixed dividend first and then followed up with the stock repurchase.
Yes.
Probably just add there just kind of the.
The process of getting a dividend and we wanted to announce it so we can kind of get that.
Yeah, you know get the record date set and get started paying actual cash.
And then how do you in.
<unk> you said you know when you think about usage of the free Castle and look I think you know it's.
You guys got a good runway of inventory for at least five years, and maybe a little bit longer but you know obviously when you think about the durability and sustainability of that free cash flow generation are they generally investors would like to see it somewhere in that decade, plus if if you know they can and so obviously you know it feels like that potentially some of.
Of that free cash flow could be earmarked for various types of.
Consolidation, but like can you give a sense of like as you look at that free cash flow, while that youre seeing.
How much of that dry powder do you think makes sense to keeping your hands for opportunities if they pick up.
Yes, it's a good question.
I think size of company matters in this regard.
I share your comment on our inventory I think were fine, but we're not where we want to be.
I think that's really what drove us in 'twenty, one to pay down our revolver, a man and again I've got we've got to remember we started the year at $35 $40 <unk> and we were in a totally different world than where we ended up.
At 80 Bucks at the end of the year, so things have changed dramatically here, but.
We are constantly looking to see if we can find.
Properties that compete.
Against our current properties.
And we want to have some dry powder to execute on those.
I don't know what the right number is again you see companies come in.
$40 50, I know Theres, a few out at 60% of free cash flow in total between fixed.
Stock buybacks and variable dividends. So I think ultimately you know that still allows us to pursue these acquisitions when we find them and keep our balance sheet strong I mean, we're trying to do a lot of things here.
We're fortunate to have a really strong balance sheet right now we want to protect that but we do want to grow the company at same time.
Yeah I mean, it's also remember it's got that we have an untapped revolver $750 million of capacity on it. So it's not a matter of reporting cash to save our pennies for a deal you got a got a lot of liquidity there.
We can tap to do things.
Would you will be willing to use equity to do something if it made sense or is that a non starter discussion.
I think.
We've used it in the past.
I don't have problem with all of them with using it if we think our.
Stocking fad at a reasonable number I mean.
Again, you got to just evaluate at the time you are.
Do you think your stock is.
Right now we use cash.
Versus our stock because we think our stocks.
Slide you know it is below what we think worse. So we would tend to use more of the cash position.
Understood. Thank you.
Our next question comes from David <unk> with Cowen. Please go ahead.
Good morning, Lynn Jimmy Thanks for squeezing me in here.
Hey, David how are you doing.
Doing well and congrats on the on the operations update.
Pointed out the the delays I think there's a five well pads.
Believe it was in the Cassandra area.
For context.
As we move forward here, particularly with the higher working interests in Sanish, how long should we be thinking about those two rigs just staying in that sanish area or are there going to be more of these sort of <unk>.
Our longer lateral developments that get sprinkled into the programs.
Maybe I'll, let chip take first shot at that if you don't mind, Yeah, we'll do David. Thanks for the question. Yeah. You know our program has about 65% of our program is in Sanish and then we move to the west that hidden bench Foreman Butte later in the year, we're probably close to 35%, maybe a little bit more than that.
Three milers as we go along so that'll drive capital efficiency as we go and help to minimize some of the.
Inflation impacts and so that's kind of what the program has us doing right now will run back up into that can stand area. Later this year and knock out the additional pad that was delayed.
One of the things that.
No.
Matters a lot to us.
All of this ESG.
Conversation I think as we look to bring these wells on we want to make sure. We have the takeaway that's required we're not alone.
Trying to flare or anything.
And so a great job working with our midstream partners.
So some of this movement is dictated because of <unk>.
Commodity takeaway as well.
It was a mechanical issue up in the in the Cassandra and not a systemic issue. So we'll get it back over there later in the year.
Okay, Yeah. Thanks chip.
And then yes.
And.
I know a lot's been asked around this one I think it just it.
It seems like you've been pretty explicit that you think whitings perfectly capable of paying a 50% rate of its free cash while still maintaining enough cash hoarding and flexibility to pursue M&A. So it seems like that's a reasonable target as investors compare you to some of your peers.
Yeah, I'm not going to let you put a percentage on me, David but I think you've seen the numbers and you see I think we have a lot of flexibility here and we can do the right thing we will do the right thing and we're excited about that I mean.
This is not a situation where we're trying to put cash on the balance sheet, we want to reach.
Return to shareholders and we want to do the right thing, but at the same time, we are looking for opportunities.
Yeah, I think your numbers are very reasonable.
And then I guess in terms of how we should think about how that presents itself over the course of the year.
Did the conversation when the dividend I know, we talked about the intention to start small and build into this program but.
How frequently is the return of capital programs being reevaluated.
And at some point it sounds like we should get another update at least this year, but is this is this something that occurs on like a a three months basis or its just add Todd.
Yeah, we probably talk.
Monthly weekly.
I have a lot of we have a great board, we worked together I'd stay in communication.
We all got thrown together here about 60.
16 months ago, 18 months ago, and it's been a great.
Great opportunity to get to know each other and share ideas. So we talk a lot and we've talked about all of this for last several months. So yeah, you're going to see this evolve in your pricing evolved fairly quickly I think it's really important to our shareholders.
We wanted to do the right thing we've always had the intention is doing the right thing and.
Sometimes we have a different time frame than other people, but that's fine.
We're excited where we're headed.
And by.
Oh, thanks for the messaging and the clarification guys and good luck ahead alright.
Alright appreciate it David have a great day.
Thank you ladies and gentlemen, there are no further questions at this time I'll turn the floor back to management for closing remarks, thanks Alright.
Alright, Thanks again, Sir.
In closing I want to thank our shareholders for your continued support.
I can assure you that we're excited with our free cash flow projections for 'twenty, two and beyond we have listened to our shareholders and their comments on the emphasis on return of capital as well as continue to participate on opportunistic acquisitions that build on our future.
Our board and our management are very much aligned and expanding our return of capital structure to our shareholders and we will rollout. This additional information soon.
At the same time I want to thank our staff for the continued dedication they have given to our company and shareholders.
Our special Shout out to our field staff that endure some very challenging weather conditions during the winter months each year their ability to maintain production and operations is not lost on me.
And they deserve kudos above and beyond their daily routines that and thank everybody for joining us this morning.
Feel free to give us call if there's any other questions. Thank you very much for your time.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.