Q4 2021 SilverBow Resources Inc Earnings Call
Good morning, and welcome to filter both resources fourth quarter and full year 'twenty 'twenty. One conference call. Please note. This event is being recorded I will now turn the conference over to Jeff Maggert.
Director of Finance and Investor Relations for Silver Bowl resources. Please go ahead.
Thank you Cheryl and good morning, everyone. Thank you very much for joining us for our fourth quarter and full year 2021 conference call with me on the call today are Sean Woolverton, our CEO , Steve Adam our CFO and Chris <unk> our CFO .
Yesterday afternoon, we posted a new corporate presentation to our website and will occasionally refer to it during this call we encourage listeners to download the latest materials.
Please note that we may make references to certain non-GAAP financial measures, which are reconciled to their closest GAAP measure in the earnings press release.
Our discussion today may include forward looking statements, which are subject to risks and uncertainties many of which are beyond our control.
These risks and uncertainties are described more fully in our documents on file with the SEC, which are also available on our website.
With that I will now turn the call over to Sean.
Okay.
Thank you, Jeff and thank you everyone for joining our call. This morning.
2021 was a year in which we turned challenges into opportunities.
We delivered on our key objectives.
Silver about records.
Named as one of Houston's top workplaces.
And realized an incredible shareholder return of more than 300%.
In addition to our many accomplishments this year the company is well positioned to realize further upside through numerous catalysts in 2022.
Including production and EBITDA growth.
Inventory expansion through further Austin chalk delineation.
A third year of significant free cash flow and our balance sheet that is less than one times levered with substantial liquidity.
Okay.
With that as an introduction I will start by providing some additional color on our 'twenty one results before turning to our outlook for 'twenty two and beyond.
Our first objective for 'twenty, one was to grow our production and EBITDA, while living within cash flow.
We achieved this by increasing production by 17%.
And adjusted EBITDA by 68% year over year.
We generated $84 million of free cash flow.
The highest mark in silver boats history.
All while operating with a reinvestment rate of approximately 60%.
Okay.
Our full year cash flow represents more than a 20% free cash flow yield based upon our recent share price.
Yeah.
Our second objective was to expand our high return inventory.
We were able to do this through a mix of Austin chalk delineation and accretive acquisitions.
The returns demonstrated by our three chalk wells drilled in 2021, and our core Webb County gas area have exceeded our expectations.
We are very pleased with the overall success of the play.
In fact web County is now the most active county in the Eagle Ford trend with 14 drilling earnings.
Yeah.
Last year, we closed three accretive acquisitions.
Which added multiple rig years spanning both the oil and gas windows.
All in all we exited 2021 with over 10 rig years of core high return drilling locations.
Yeah.
Our third objective was to maintain and improve our capital efficiencies and cost structure.
Our team lower drilling and completion cost per well and further reduce D&C cost per lateral foot by 13% year over year.
As a result, we realized $10 million in capex savings compared to our planned costs.
Which equates to nearly 10% of our full year capital spend.
Okay.
Last but not least our fourth objective was to further enhance our balance sheet.
The 84 million and free cash flow was allocated to pay down $53 million of debt.
The equivalent of over $3 per share.
While the remaining 31 million was used to fund acquisitions.
For the year, we cut our leverage ratio in half down to one five times and increased our liquidity to $234 million up more than $150 million from the prior year.
Okay.
Looking ahead to 2022 and beyond we expect to deliver double digit production and EBITDA growth, while maintaining a conservative reinvestment rate.
The midpoint of our 'twenty two guidance calls for 85 million of free cash flow and $190 million of Capex.
Which implies another year of greater than 20% free cash flow yield at a 70% reinvestment rate.
Our growth objective of 10% to 20%.
We'll drive shareholder returns through multiple avenues, while increasing silver both size and scale.
Near term, we plan to use free cash flow to convert enterprise value from debt to equity.
R 22 free cash flow guidance of $85 million.
Equates to over $5 per share of net debt reduction.
Our decade of premium drilling inventory supports our multi year outlook of annual free cash flow above recent levels.
Additionally, increasing our EBITDA in tandem with debt reduction.
Should provide for greater or greater overall equity value.
That being said I will add that our capital budget is not just focused on one year.
We are growing production and EBITDA, expanding our expanding inventory and net asset value.
Driving capital efficiencies and further strengthening our balance sheet.
Our team has established a track record of delivering on key objectives in the face of volatility and industry headwinds.
We have been successful on a number of fronts, including accretive acquisitions.
We see a robust pipeline of opportunities going forward.
Our ability to transact at the right time and at the right price is a proven strategy that has and will continue to unlock value for our stakeholders.
With that I will hand, the call over to Steve.
Thank you Sean moving on to our operational results first I would like to congratulate our cross functional teams for another year of exceptional performance.
Additionally, our production operations team recently celebrated its five year anniversary with zero <unk>.
<unk> recordable accidents, a remarkable achievement when comparing against peers across the space.
Fourth quarter D&C activity consisted of four net Rio Bravo wells completed in our Webb County gas area.
Additionally, we participated in three gross non operated wells also located in Webb County.
For the full year, we drilled 18 net wells completed 24, net wells and averaged roughly a three quarter rig activity pace.
As detailed in our earnings materials, we entered 2021 with a disciplined yet flexible development program.
We finished drilling and completing our six well la Mesa pad and first Austin chalk well early in the first quarter of 'twenty one.
Subsequently, we released our drilling rig as part of a plan to pause in activity to prudently assess market conditions.
Early in the second quarter, we elected to accelerate and expand our mid year liquids development program and also includes some Webb county gas targets later in the year.
This decision was based on a favorable commodity prices and also due to our operations team running ahead of schedule and under budget.
Our liquids development focused primarily in our Lasalle condensate and Mcmullen oil areas and was comprised of 11 net wells drilled and completed this past summer.
The five net web county wells, we elected to add to the schedule were drilled in the third quarter.
The drilling and completion activity over the second and third quarters drove production and cash flow expansion through the second half of the year and corresponded favorable favorably with rising commodity prices.
<unk> released its sole drilling rig in September and had no operated activity until the resumption of drilling at our Webb County gas area in late December .
With respect to last year's liquids development program, we are seeing strong well performance across all our respective assets, including our Lasalle condensate area and mcmullin oil area.
The Austin Chalk was a key focus area for silver Boe in 2021 and.
And given the strong results from our initial gas wells. It will remain an integral part of our go forward development plans.
Last month <unk> brought online as fourth Austin chalk well in Webb County.
As we have mentioned in prior updates. These wells continued to exhibit strong commercial economics, and we see a runway of future development across our existing acreage position.
In 2021, we added 50 proved locations to our inventory and see additional upside as we continue to prove up chalk acreage.
Our first Austin chalk well average over 10 <unk> per day through its first year of production.
As shown on slide 17 of our corporate presentation. We are seeing consistently strong results from our other Austin chalk wells.
The second and third chalk wells average IP <unk> of 13, Mcf per day, and Tan Mmm CF per day, respectively.
Going forward, we expect to achieve average well costs of roughly $5 3 million for a 7500 foot lateral or total D&C costs below $730 per lateral foot.
This represents paybacks of less than a year.
The Austin chalk has been an emerging upside play of late amongst south Texas operators.
Our well results compare favorably to offsetting operators in the dry gas window.
As Sean noted silverware executed on three accretive acquisitions in the back half of 2021. The company added more than 200 net drilling locations from these acquired assets.
Given these deals close later in the year their contribution to full year 2021 production was modest.
As expected producing base from these assets will be fully reflected in our go forward results.
Furthermore, our team has integrated these assets into silver both low cost structure and expects to realize operating synergies due to increased scale.
In addition to greater purchasing price power with our vendors, we have identified numerous lift and operational efficiencies, which will further optimize the base production of these properties and increase our cash margins at the field level.
On the capital efficiency side, our operations team continues to drill faster and reduce well costs, which ultimately pushed our D&C costs lower.
As shown on slide 18 of our corporate presentation, we have reduced our total D&C cost per lateral foot by 13% compared to 2020. This is a direct result of our operational and supply chain teams working with our vendor partners to negotiate prices and logistical considerations that better support our overall commercial objectives.
<unk>.
In total we realized $10 million of capital savings compared to our planned costs.
For the full year 2021, our capital expenditures totaled $130 million on an accrual basis, excluding payments related to acquisitions.
For 2022, our capital budget guidance of $180 million to $200 million.
Reflects a full rig running throughout the year and provides for a 33 net wells drilled in 30 net wells completed.
Of these we currently anticipate to drill 21 net wells in our Webb County gas area three net wells in our Lasalle condensate area seven eight net wells in our mcmullin oil area and one to two net wells in our newly established Eastern Eagle Ford area, which was added to the portfolio from one of our acquisitions last year.
Of the wells to be drilled in our Webb County gas area eight net wells are targeting the Austin chalk.
The year over year increase to our capital budget in 2022 is primarily driven by higher activity levels as we step up from a three quarter rig pace to a four rig pace.
Additionally, we are drilling a greater number of single well pads as part of our ongoing Austin chalk delineation, which will carryover efficiency levels.
Versus larger multi well pads, which will carryover lower efficiency levels I might add versus larger multi year multi well pads.
Activity increases and drill schedules change account for roughly 90% of the year over year spending increase.
The remaining 10% of the increase is attributable to inflationary pressure on costs on well costs.
Specific to our operating costs, we are planning for a net increase of 3% to 5% in 2022.
The primary drivers of this inflation continued to be production chemicals, well servicing in labor. This is partially reflected in the recent uptick of our LOE unit costs as well as our LOE guidance is.
As mentioned earlier the other components of higher forecasted <unk> is the addition of our acquired assets, which carry higher opex typical of more liquid weighted assets.
As always maintaining a low cost structure is core to silver both culture.
We continue to operate our assets with the goal of maximizing field level margins as if commodity prices were much lower.
To wrap up our first quarter production guidance of 220 to 232 <unk> per day is down sequentially as we had minimal D&C activity in the fourth quarter and are currently drilling and completing an eight well pad at la Mesa.
First sales from this la Mesa patter expected towards the end of the second quarter.
Our full year production guidance of $2 35 to 255 Mcf per day reflects flush production expected mid year and higher production rates in the second half of 2022.
Similar to recent years, we expect our first quarter drilling to focus on gas development, our second and third quarters to focus more heavily on liquids rich development and our fourth quarter to return to gas development.
Furthermore, given the expected timing of our Capex in first sales from wells. This year, our quarterly production is expected to decline slightly before ramping up sequentially in the third and fourth quarters.
Second quarter cash flows will likely be added deficit due to the timing of the accrued capex. It is important to note that the current drill schedule is designed to optimize our full year free cash flow as we remain opportunistic and flexible throughout the balance of the year.
With that I'll turn the call over to Chris.
Thanks, Steve.
In my comments this morning.
I will highlight our fourth quarter and full year financial results as well as our operating costs hedging program and capital structure.
Fourth quarter oil and gas sales were $151 million <unk>.
Excluding derivatives with natural gas, representing 74% of production and 63% of sales.
During the quarter, our realized oil price was 98% of Nymex WTS.
Our realized gas price was 97% of Nymex Henry hub, and our realized net NGL price was 443% of Nymex WTS.
Due to higher commodity prices, our fourth quarter realized price, excluding hedges was $6 58 per Mcf, an increase from $5 eight in the third quarter and $3 27 year over year.
Our realized hedging loss on derivative contracts was $41 million for the fourth quarter and $73 million for the full year.
Based on the midpoint of our guidance and our hedge book as of February 25th Silver Bow has 62% of total estimated production volumes hedged for 2022.
Broken down by commodity the company has 65% of natural gas production hedged, 60% of oil hedged and 48% of Ngls hedged for 2022.
Assuming our production guidance is held flat in 2023, our total production is approximately 30% hedged.
The hedged amounts are a combination of swaps and collars a detailed summary of our derivative contracts is contained in our presentation and Form 10-K filing, which we expect to file later today.
Risk management is a key aspect of our business and we are proactive in adding oil and gas basis in calendar month average roll swaps to further supplement our hedging strategy.
As shown on slide 22 of the corporate presentation, we have historically realized prices close to Nymex benchmarks. This is a key competitive advantage of our south Texas asset base for.
For this year, we have gas basis hedges on over 50 Mcf per day at a positive weighted average differential.
While we are encouraged by the strength of the current strip, we remain conservative in our capital investment and judicious and locking in favorable returns.
Turning to costs and expenses.
Fourth quarter LOE was <unk> 37.
Transportation and processing costs were <unk> 30, and.
Production taxes were four 8% of sales or <unk> 32 per Mcf.
All of these cost items were within our guidance ranges, adding our LOE TMP and production taxes together, we achieved total production expenses of 99 per Mcf.
Cash G&A, which exclude stock based compensation was $5 $7 million for the fourth quarter slightly higher than our guidance range due to burdens and professional fees.
For 2022, we are guiding for cash G&A of $15 8 million at the midpoint, an 8% decrease from 2021.
I would note that our G&A is lower year over year inclusive of our recent acquisitions we.
We successfully closed all three transactions without having to add any incremental G&A, we consider our lean cost structure to be a competitive advantage, which allows us to sustain profitability during periods of volatile commodity prices. Additionally.
Additionally, we expect to identify further opex synergies with our cost structure as we operate our acquired assets.
Adjusted EBITDA for the fourth quarter was $82 million exclusive of amortized derivative contracts and pro forma contributions from acquisitions.
As reconciled in our earnings materials, we generated $53 million of free cash flow in the fourth quarter, driven by increased production higher realized prices and lower D&C spend relative to the third quarter.
For the full year 2021, silver bow generated $84 million of free cash flow, which was right at the midpoint of our guidance range with.
With a continued focus on our balance sheet and free cash flow generation, we expect a leverage ratio below one times by year end 2022.
As previously mentioned, we closed three accretive acquisitions in the second half of 2021.
Total consideration for the transaction was $138 million.
This reflects a combination of cash and stock to use for the acquisitions and transaction related fees valued at the time close and net of purchase price adjustments.
Notably the cash consideration of these deals after given effect of purchase price adjustments totaled just over $50 million.
Capex on an accrual basis totaled $20 million for the quarter and $131 million for the full year, excluding payment for acquisitions.
Nearly all of our capital investment in the fourth quarter was associated with our Webb County gas drilling and non op activity.
Our 2022, capex guidance of $180 million to $200 million, which Dave detailed in his comments is based on a full rig drilling pace throughout the year and a reinvestment rate of approximately 70%.
Our year end proved reserves using SEC pricing were one four tcf.
82% of which were natural gas and 46% of which were proved developed producing.
Total PV 10 was $1 8 billion and our PDP PV 10 was $1 billion.
An increase of 245% and 170% respectively. It is worth noting that our enterprise value traded at a 20% discount to our PDP PV 10 value.
Turning to our balance sheet we.
We executed several initiatives in 2021, which allowed us to extend our debt maturities increased liquidity.
Refinance higher cost debt and self fund acquisitions.
In April we extended the maturity date of our credit facility by two years out to 2024.
In November we repaid $50 million of our $200 million.
Lean facility and extended the maturity date by two years out to 2026.
Also in November with the full support of our Bank Syndicate silver both borrowing base was increased from $300 million to $460 million.
Silver bow initiated its ATM program in August and through the end of the year. We had issued roughly one 2 million shares and raised $27 million in net proceeds to.
Proceeds supplemented our ability to execute on acquisitions, while simultaneously refinancing a portion of our second lien debt with lower cost of <unk> borrowings.
In aggregate silver by reducing the debt by $53 million year over year to $377 million and increased its liquidity by $152 million to $234 million at year end.
In conjunction with unwinding oil derivative contracts related to production periods in 2020 and 2021.
Silver bow amortize $38 million, we received in March of 2020 as add back gains and discrete amounts extending from April 2020 through December of 2021.
The amortized hedge gains factor into silver both adjusted EBITDA calculation for covenant purposes over the same time period.
And therefore, it is important for our investors and research analysts to understand when tracking our leverage ratio.
Additionally, silver bow includes pro forma contributions from acquired assets and adjusted EBITDA for purposes of calculating its leverage ratio.
On a last 12 month basis or.
Our full year 2021 basis, the add backs totaled approximately $55 million, bringing.
Bringing our LTM adjusted EBITDA for leverage ratio to $301 million and our year end leverage ratio to one five times.
Beginning with the first quarter of 2022, and thereafter amortized hedge gains will not be included in the leverage ratio calculation.
At year end 2021, we were in full compliance with our financial covenants and have sufficient headroom to execute our business strategy.
We expect to reach a sub one times leverage ratio by year end 2022 continued debt reduction. This year. We will also increase liquidity provide silver bow with greater dry powder to execute future accretive acquisitions and with that I will turn it over to Sean to wrap up our prepared remarks.
Thanks, Chris to summarize silver bow is set up for double digit growth, while generating a free cash flow yield in excess of 20%.
This will drive further debt reduction and increase liquidity translating into further delevering over the course of the year.
Our business strategy is focused on a balanced portfolio.
Fishing operations, low leverage and a peer leading cost structure.
Our Austin chalk development.
Core Webb County gas assets and acquired liquids rich wells will be the near term drivers of our production and EBITDA growth.
And we will pursue additional opportunities to expand our drilling inventory and increase our liquidity through the year.
While we are encouraged by the strong commodity price outlook, we are positioned to maximize profitability in all environments, given our balanced portfolio and hedging strategy.
Thank you for joining our call this morning, and allowing us to share our results.
We would like to thank our stakeholders, who have taken taken a vested interest in silver bow and who believe in our value creation strategy.
With the positive momentum we have we are excited about the prospects that lie ahead and look forward to providing further updates on our next call.
And with that I will turn the call back to the operator for questions.
Thank you to ask a question. Please press Star then the number one on your telephone keypad.
First question is from Neal Dingmann of truly. Please go ahead. Your line is open.
Good morning, all and thanks for all the details.
My question is maybe for you or Steve just could you talk a bit about my first specifically around the operational efficiencies.
I am going with this is you talked about the Austin chalk and I'm just wondering between Youtube you could talk about multi formation will potential and again <unk> got some I know bigger pads ahead could you just talk about maybe how your development plans for the rest of the year.
Again, how it encompass as some of this maybe multi formation and other efficiencies you can tie into that.
Yes, you bet Neal Thanks for the question I'll start and then.
<unk> can add some additional color SEC's.
Yes, as we think about development and let's talk about the Austin chalk area first out in Webb County.
We're actually in the middle of our cube development on our Lamesa. Pat This is our first eight well pad.
An increase of two wells from our largest historical pattern of $6 six wells previously.
So on that pad, we are drilling three lower Eagle Ford three upper Eagle Ford and two Austin chalk.
So we are shifting.
More of a stack.
Zone development out in Webb County.
As we move forward in that area later in the year in the second half of the year, we will come back and drill <unk>.
Similar combination all three zones in some instances, where we've already developed the lower will come back in and drill upper and Austin chalk together.
We are moving more from single well developments to pad developments in that area.
And as we think about the Austin chalk and consider facing development Thats really the next evolution for us and other operators in the area, we're seeing development in the Austin chalk as well as a reconfiguration of our spacing in the upper Eagle Ford.
Over a 1000 foot between inter well.
In zone spacing.
And then as we think about.
Areas of development in our liquids areas.
We're really focusing in around two to three well pads throughout the year.
<unk>, our move to a full rig as well as to more pad development is increasing capital efficiencies, which is helping offset some of the inflationary pressures that we're seeing.
Yeah, Sean I'll go ahead, Steve I'm, sorry, just real quick then.
Thats the great piece on the development part and where we have open acreage and where we delineate and we have an opportunity for some multi horizon work, we've kind of changed gears and we now take advantage of those multi horizons, even when we're delineating on new acreage.
And then you further that with the one rig efficiency versus the three quarter rig efficiencies and that's what's been able to basically allowed us to hold serve on the budget that we previously announced.
Yeah.
Good morning, you all hit John you were getting into this.
The inter well just talk about the spacing that you're seeing or the change in spacing youre seeing.
Yes, yes.
As we.
The three wells that we drilled in the Austin chalk in 'twenty, one where all Standalone wells.
We've watched offset operators that are very active in the area come in and start to drill.
<unk>.
Multi well multi.
Multi as.
Well Austin chalk development, and we've seen tests in and around anywhere from 660 foot inner well spacing in zone up to 250.
We think that the Austin chalk does have.
More permeability than the Eagle Ford.
Thicker as well as more hydrocarbon in place.
And so right now that's where we're targeting probably to the high side of that inner well spacing.
It's interesting the wells that we've drilled to date.
Our exhibiting.
Shallower declines in the Eagle Ford, which I think further supports our view.
Greater permeability in the zone in.
The greater inner well spacing.
Great color and then lastly could you just talk about <unk>.
Mentioned I know you guys have done a good job estimating cost inflation I'm just wondering.
Between you and Steve again, everything Youre seeing out there is there anything that would cause delays or the like sort of again I know, we're seeing a lot of things with drill pipe location or what have you I'm. Just wondering is there anything around in that area, that's causing any unforeseen delays or anything like that for the remainder of the year. Thank.
Thank you.
Yes, yes.
Another good question and something that we've been very focused on.
Having been very active in the area over the last several years maintained and built very strong relationships with our service providers.
So as we've tried to get in front of the drilling program have commitments arrangements in place.
That really have services locked in from a commitment standpoint, not necessarily contractual contractual standpoint through the year. So that includes.
Our drilling rig pumping services.
And tubular.
One area that we saw during the latter part of last year and into this year, that's really created some cycle time issues around trucking.
That continues to be a challenge for us as we move the rig around as well as during the Frac jobs moving.
Equipment around as well as sand and what we've done is adjusted for that by staging.
Materials more close to closer to the pad E primarily sand.
So that it's driving down.
Delivery times from going from the sand mines to location so.
I think we have a plan in place to try to mitigate the.
The trucking shortages that we have seen and are continuing to see and Steve I don't know if you have any more color to add there really.
Really in terms of availability and crew competencies, we've been working through that like most everybody in the sector of the industry has.
But Furthermore, we've just tightened up and worked our unit costs and further increased the performance efficiency on our process cost and then couple that with the one rig opportunity to not only level load that with a trailing frac spread.
Again, Thats why I say I think we've been able to hold serve on our costs.
Great details. Thank you all.
Thanks, Neal I appreciate the questions.
Your next question is from Charles Meade of Johnson Rice. Please go ahead. Your line is open.
Good morning, Sean and Steve and Chris and the rest of the crew there.
And Steve I want to go back to some of your prepared comments on the.
The quarterly cadence of production.
I think I got most of it but I just wanted to.
Make sure I pick it up the right pieces.
Looking just at your what you guys talked about on your completion schedule and where youre going to have rig across your asset base. It seems to me that you were going to see a big uptick in gas primarily in <unk> and that more of the liquids growth is going to be an <unk>, which is that is that about what.
You said in your prepared comments or.
Thanks.
Charles you're spot on it's a big gas uptick with the eight well pad that we're bringing on at La Mesa and then as I mentioned, we converted two are our highest quality oil opportunities and in Q2 Q3 with much of that production coming on in Q later, Q2 and Q3.
Okay, and so and then again we revert.
<unk> gas revert back to our gas in the latter part of the year, but still remain opportunistic on the oil side, if we have to.
Okay, and when you talked about reverting reverting back to guess you're more talking about where your activity is as opposed to where the.
Where the where the.
The arrow of production is going.
That is correct that is correct with the understanding that trailing production and we try to be relatively thoughtful around the commerciality of where gas prices might be seasonally.
Right, Okay, great that all makes sense and then just I wonder if I could ask a question about.
What you guys are seeing in A&D market, obviously, 'twenty one was a great year for you guys.
And in general that we saw a lot of consolidation but.
All other things being equal you'd look at look at past cycles when.
When commodity prices run up usually the deal flow slows down, but I'm curious what are you seeing right now.
Opportunities to consolidate warn the Eagle Ford.
Yes, I appreciate the question Charles.
Yes.
Maybe let me back up start with our.
Big picture view of the Eagle Ford, we continue to believe that the Eagle Ford creates and has a rich opportunity set for acquisitions.
There remains a number of companies that are privately held that have been in their investment in the Eagle Ford for multiple years.
And are finding themselves in a good pricing environment two to probably look to transact. So I don't think were seeing any.
We are still strong believers that the Eagle Ford is ripe for consolidation, but to your point.
We are seeing that seller and buyer expectations are starting to diverge.
And.
Typical of what we see in the high volatile.
<unk> environment, we're starting to see some of that come.
To fruition right now and that there is.
Kind of milk paid let's pause and wait and see just just where oil prices go as well as gas prices gas prices.
Our very strong as well so we're have been active in the market for <unk>.
For five years now.
We have built a lot of strong relationships continue to have active dialogues, but you'll see the volatility in prices being a little bit of an impediment to getting trends transactions done until there is a settling out or balancing our stabilization I guess is the word I'm looking for on commodity price.
Yes.
Got it Joe and that is that is helpful. Insight appreciate it. Thanks, yeah. Thanks for the questions Charles.
There are no further questions at this time I will now turn the call over to Sean Woolverton for closing remarks.
Thank you Cheryl.
And just to reiterate I appreciate everyone's interest in silver both.
Feel very strongly where the company sits today.
We believe it's well positioned.
As our momentum moving forward.
So look forward to sharing more of our results and successes as we host a call.
Later in.
The second quarter to share first quarter results. So thank you everyone.
Thanks.
This concludes today's conference call. Thank you for your participation you may now disconnect.
Okay.
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Yes.
Yes.
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