Q2 2022 Trican Well Service Ltd Earnings Call
Good morning ladies and gentlemen. Welcome to the Trichon Wall Service 2nd quarter 2022, earning three salts conference call and webcast. As a reminder, this conference call is being recorded. I would now like to turn the meeting over to Mr. Brad Fedora, President and Chief Executive Officer of Trichon Wall Service Limited.
Please go ahead Mr. Fedora. Thank you. Good morning everyone. Thank you for attending the TriCan Well Service Conference Call. I'll just give you a brief outline on how we intend to conduct the call. First, Scott Matson, our CFO , will give an overview of the quarterly results. I'll then provide some comments with respect to the quarter, the current operating conditions and the outlook for the future as we see it. We've generally shortened our commentary in an effort to leave more time for questions at the end of the call.
for the company. Certain material factors or assumptions that were applied in drawing conclusions or making projections are reflected in the forward-looking information section of our second quarter, 2022 MDNA. A number of business risks and uncertainties could cause actual results to differ materially from these forward-looking statements and our financial homework.
Please refer to our 2021 Annual Information Form and the Business Risks section of our Q2 2022 MD&A and our MD&A for the year ended December 31, 2021 for a more complete description of the business risks and uncertainties facing TRICAN. These documents are available on our website and on CDAR.
During this call we will refer to several common industry terms and use certain non-GAAP measures, which are more fully described in our 2021 Annual MD&A and in our second quarter 2022 MD&A. Our quarterly results were released after the close of market last night and are available both on CDAR and on our website. So with that, let's move on to our results for the quarter. Most of my comments will draw comparisons to the second quarter of last year.
but also provide a few comments with respect to our results, comparing ourselves to Q1 of 2022. Revenue for the quarter, 153 million was an increase of about 63% compared to the same quarter last year. Activity levels during the quarter were generally higher than last year's period, with many of our customers not quite able to complete their Q1 22 programs, as cold weather delayed operations at the beginning of the year. So a portion of that work was expected to be performed in Q1 of 2022, carried forward, and completed.
margin does better pricing only serve to offset continued inflationary pressures faced in all of our major cost categories.
From an activity perspective, our overall job count year-over-year was relatively flat, but total profit pumped, a good measure of well intensity and activity, was up about 7% year-over-year, with average tonnage pumped per job increasing, reflecting the company's strong position in the deep, technically challenging work found in the Montney and Deep Basin areas.
Adjusted EBITDAF for the quarter came in at 19.2 million, a significant improvement over the 14.2 million we generated in Q2 of 2021, especially considering that last year's results included about 6.1 million of contribution from the Canadian emergency wage and rent subsidy programs that did not occur this year. I would also note that our adjusted EBITDAF figure includes expenditures related to fluid end replacements, which told 1 million in the quarter.
million dollars in the quarter and that we expensed during the period. Adjusted EBITDA for the quarter came in at $23.6 million, a significant improvement compared to the $16.2 million we printed last year, again with last year's results including the contributions from the wage and subsidy programs I noted
To arrive at EBITDAS, we effectively add the effects of cash settled stock based compensation back to more clearly show the results of our actual operations without some of the financial noise related to these amounts.
We continue to make progress in monetizing some of our stranded assets, including excess real estate, with a number of transactions closing in the quarter, bringing in about 15.1 million in cash proceeds and generating 2.3 million in net gains on disposal.
On a consolidated basis, we generated positive earnings of 1.5 million in the quarter or about a penny per share. And I would note that achieving positive earnings in the second quarter is no small feat and something that we're very pleased with.
We generated free cash flow of about 14.6 million during the quarter as compared to 9.6 million during Q2 of last year. And our definition of free cash flow is essentially EBITAS, less any non-discretionary cash expenditures, which include interest, cash taxes, cash settled stock-based compensation, and maintenance capital expenditures.
CAPEX for the quarter totaled about 24.7 million split between maintenance capital of 4.0 million and our growth or upgrade capital of 20.7 million dedicated mainly to our ongoing capital refurbishment program.
Through that ongoing program, we're upgrading a portion of our conventionally powered diesel pumper fleet with low emissions natural gas burning Tier 4 DGB engines.
Valjee remains an excellent shape. We exited the quarter with positive working capital of approximately 150 million, including net cash of 20 million and no long term bank debts. Finally, with respect to our ongoing NCIV program, we remained quite active during the quarter and repurchased approximately 2.6 million shares, bringing our total shares repurchased to June 30th to 5.4 million shares, an average price of about 360%.
363 per share. Continued of you share, refer to the Solid Investment Opportunity and the portion of our capital will continue going there in the context of returning capital to shareholders. In the context of returning capital to shareholders.
So with that I'll turn things back over to Brad for comments on our operating conditions and our outlooks going forward. Thanks Scott. Overall Q2 was better than prior years. We still experience seasonality in Canada due to the spring falling conditions and that does restrict access to the well site. So Q2 has, you know, no matter how you, regardless of the weather or people's intentions, you're always going to have a reduced program in Q2.
But fortunately, it appears that the trend now is for a busier breakups than historically we've experienced. And I think it's just a combination of better planning and logistics with respect to multi-well pads, which allows more work to continue on through the quarter. And I think a lot of our customers. And I think a lot of our customers.
our bonding roads, etc. The quarter overall was very good. We did have some relatively significant project delays though. Heavy rains in June pushed a fair bit of our work out of June and into Q3. We continued to see cost escalations in Q2, primarily driven by increased diesel costs.
And as everybody knows, diesel prices affect almost everything in all aspects of our business, including products, third party trucking, just day-to-day life requires a lot of hard-to-carbons to make it go around. We continue to see fuel surges on rails, which are significant. And this obviously impacts our costs on sand and chemicals.
We held for a month pricing and flowed through the most of the inflation to our customers. We didn't discount any of our prices like historically you have seen, and I think that'll be the trend of the future. But inflation is significant, and it takes a lot of effort to keep up with it and make sure that we not only keep up, but get ahead of it. And I think we have done that now. When we look at Q3 and Q4.
We expect the second half of the year to be quite busy as commodity prices remain high. Our third quarter is fully booked and our Q4 is quickly booking up and you know typically at this time of year we have fairly good visibility leading up to Christmas and from everything that's on the board today the second half of this year is going to it should be really busy and and you know which should be a great year.
We're very happy with our start to the quarter. We're very busy. July should be a great month. We've got really good activity in the field. The weather has cleared up and I think we're up and running quite efficiently. So far this month we've been setting records and daily sand volumes pumped. We've got all of our people and equipment in the field and operating very efficiently. For more information, visit www.fema.gov
from a fact, frack and cement cruise perspective, we think the basin will very soon be approaching capacity and it should stay at capacity for the remainder of the year. In the coil market, I think we're already there. In fact, I think we've been under supply and coil now for the past few months and if we could, we would probably double our coil division. It's very active and the margins are quite attractive. We're operating seven frack crews and seven coil crews.
Out of the seven frat crews, you know, two of the fleets are the new Tier IV DGB equipment, which runs on natural gas instead of diesel. And we're operating at about 60% of our capacity in the fract division. So we're running sort of seven out of 12 frat crews. On the cementing side, we're running about 17 crews. That provides us with an overall market share of sort of 35%, but in the deep basin in the Montany, our market share would be quite higher than that.
capital budgets. They're focused on returning capital to their shareholders, paying down debt, and I think just taking a very financial approach to their projects. It's important to note, LNG activity has started in the field from a drilling perspective. I think we're all expecting LNG facility in Kedemat to be on stream, I think in 2025, and the drilling activity now has officially started.
from what we understand LNG Canada is behind on their on their gas production and so we expect that as the months go by the the LNG related drilling activity
We are gaining traction with respect in that pricing. You know, it's been difficult keeping up with inflation today, but I think we finally sort of beat it with respect to the rate of change. And these improve pricing and higher activity levels that will require additional crews in the field, will ultimately contribute to better margins and increase in free cash flow for the second half of this year. We are expecting margin expansion, both in Q3.
dedication, you know, we wouldn't be able to operate as efficiently as we have, especially through COVID in the last few years. Retention.
remains one of our top priorities as we are attracting new people to the industry that are working in the oil and gas industry for the first time. We're still seeing that there's more attractive lifestyles that they may want to leave for. Fortunately, these are really high paying jobs and we're focused on making this as a good place to work for our people. We're starting to see some of the cost inflation stabilize. They're ready to change since...
basically Q4 of last year was extremely steep. And I think that has sort of leveled out a little bit here. And even though the inflation is, I think the rate of change of inflation is slowing, we're still, our supply chain is still stressed, particularly in sand. We think the sand mines and the rail is operating basically at capacity and we do expect some temporary sand shortage just to occur in the second half of 2022. And we have a great logistics and planning department to do that. Thank you. Thank you.
And so when we look at this, one of the services that we're able to offer our customers is just reliable services. And we are well ahead of what we think will be sand and chemical shortages. And we've made plans to make sure that we manage through that as efficiently as possible.
Third party trucking is also one of the bottlenecks in the industry. And just logistics in general of moving this much sand around takes a lot of effort, a lot of planning. We expect this to be extremely tight for the remainder of 2022. There's less trucks than basin today, so it takes just that much more planning ahead of time to make sure that we're operating as efficiently in the field and minimizing any delays for our customers.
You know, it's important to note just on on how operations and field are working today. Like as an industry, in the last four years, we've become extremely efficient with our operations. We've gone from pumping sort of 14 to 16 hours a day to over 22 hours a day now. And up until now, the customers benefited from all that efficiency as all those cost savings were passed on. And we're starting to get some of that back. And I think what we'll see is.
margins expand, we'll be able to bring more equipment into the field. We've made great strides with respect to technology and innovation. We're very focused on running the latest state-of-the-art equipment, providing chemical solutions that reduce
consumption and more environmentally friendly products that, you know, whether it's isolating water zones with cement, you know, using produced water instead of fresh water, reducing emissions in the field, you know, we've taken great strides to invest in our technology to make sure that, you know, we're providing the best services possible. Our guiding principle is clean air, clean water.
And so when we think about the services that we want to offer, we want to make sure that they're sustainable throughout the next decades, not just through the rest of the year. Not just through the rest of the year.
On the Tier 4 side...
We rolled out our first tier four fracks bread in early, very early Q1. We're very happy with the results. We have over 2,400 pumping hours on that crew to date. We have over 2,400 pumping hours on that crew to date.
Our second tier four spread is now in the field. It's not yet an incremental fleet. It has displaced older conventional diesel equipment and until we can get the staff trained and operating efficiently, we won't have an incremental crew in the field. We expect an incremental crew to come late this quarter, so that'll be our eighth frack spread.
We are adding an additional third tier four spread, and that will be field ready by.
the fall, you know, I would say sometime in the fall in Q4, we do have customers lined up for this equipment. And, you know, we're very fortunate that we've had numerous customers test the Tier 4 technology. They've all been very happy with it, and they're basically asking for more Tier 4 equipment than we can provide.
We're very impressed with the tier four equipment and its performance to date. You know, it's lower emissions, lower operating costs, high-performance pumps that are more reliable and have less people on, require less people on location. And of course, all of this results in higher profitability compared to our conventional equipment. You know, we are able to charge a premium for this equipment and the customer is sitting on diesel costs. And the customer is sitting on diesel costs.
And we do expect this technology to be the standard in Canada in the next few years. Unfortunately for us, we made this call about a year and a half ago. And so now we've got more than a year head start on our competition with respect to getting this equipment into the field.
On the return side...
I want to make a comment that Trayken's very focused on free cash flow when we return on the invested capital. These are without a doubt the most important metrics when you're analyzing a pressure pumping company. There's always a tendency to want to talk about EBITDA, but just based on the age of the fleeting Canada and the difference in accounting policies, we urge you to focus on free cash flow when it returns on the invested capital. We invest based on long term predicted returns.
not operating margin or market share.
We continue to sell older, more obsolete equipment to try to recirculate that capital into new technologies. Fortunately for us, if you are looking at EBITDA, a vast majority of our EBITDA converts into free cash flow.
And I'll just wrap up with some comments on our NCIV program. You know, as Scott said, we continue to view the NCIV as a very attractive investment. A year to date, we've purchased just over 8.5 million shares or 3.5% of our outstanding shares. We intend to increase our participation in the NCIV in the second half. We remain committed to this as an investment. And we have both a consistent monthly budget and an allocation.
funds for one-off purchases, you know, if the market disconnects from how we view the future of our basin.
So we continue to be active in that and we look forward to reducing our share count. I think I'll stop there and I'll hand over the call to the operator. Thank you.
Thank you. We will now begin the question and answer session to join the question queue you may press star then one on your telephone keypad. You will hear it telling acknowledging your request. If you are using a speaker phone, please pick up your handset before pressing any key. Do we draw your question? Please press star then two. We will pause for a moment as color is joined the queue.
The first question is from Keith Matty with RBC. Police go ahead.
Hi, good morning.
Thank you.
Just to start out on the eighth fleet, I think Brad said it's going to be incremental and in the field by later this quarter, can you just give us a little more context around the staffing of that fleet? Is it fully staffed and now a matter of training? How many of the personnel for that fleet have been recruited from outside of the province? Just a little more color on that, and I guess.
It will also affect what happens with the 9th fleet when you get your third Tier 4 DGB later this year. So, maybe just a little commentary on staffing these 8th and 9th fleets and will they be incremental or will we see some replacement of existing diesel fleets as the new equipment comes in?
Yeah, just from a recruitment perspective.
We're actively recruiting throughout Canada. I mean, it's not relevant as to where people are coming from, which respect to what equipment they work on. But it does take time a lot longer now than it used to. You know, it used to be the recruiting cycle. It used to be the recruiting cycle.
It could be three months long, you know, you could wait till the last minute basically to try to recruit incremental equipment that's going in.
to crew incremental equipment that would be going into the field. Now the lead time on people, I would say, is six months. It may be more. And we're drawing from a pool of people that have it worked more so now. We're drawing from people that haven't worked in the oil patch. And so there's more training that may be required on whether it's just getting familiar with the equipment or driving, you know, getting a class one license, et cetera. So.
You know, the recruiting and retention of people into our industry is more important now than it has ever been. You know, they're very great paying jobs. We think it'll be a stable career for the next few years at least. You know, so we're trying to sell those attributes of our industry. But as we all know, unemployment is low throughout Canada and COVID has restricted.
travel from Eastern Canada into the oil patch. Of course people are not interested in coming to work here unless they know they can go home for their days off and as the restrictions are lifting we're getting more interest. So when you think about adding incremental fleets into the field.
You know, it takes a long time and typically what's going to happen with Fleet 8 and 9 is the equipment is going to come into the field, it's going to displace.
you know, either diesel equipment or dual fuel equipment. Our new Tier 4 equipment is much more efficient. Our new Tier 4 equipment is much more efficient.
Much more desirable by the customers, you know, provides lower emissions, you know, higher, more reliable pumps. So there's, you know, there's definitely, that's our first, that's our customers' first choice of equipment if they have the option. So, you know, we'll bring the equipment into the field, we'll displace older gear, and then as we get, as we're happy with our crews, you know, it will become incremental spreads, but the exact timing, we just, you know, we can't make that prediction.
Got it, that's helpful. And you mentioned some LNG drilling has started up. Just curious if you've started to see some of the RFPs on the frac side for that drilling and you can just talk a little bit more about what you've seen there, if anything, and when you expect to see more RFPs to follow up some of this drilling that's occurring.
Yeah, we have seen RFPs on the completion side for one of the participants of LNG Canada.
when we're going to see more, you know, I don't know, but from what we understand, just from the information that's publicly available. Yeah.
allergy Canada's
is 0.7 of a BCF a day short on their commitments and of course they can always buy the gas from other companies operating in the basin. So be careful not to imply too much from that information, but generally what that tells you is there's going to be activity in the basin that's LNG based.
LNG obviously is a very, very long term project. So there's just a layer of consistent, Montany drilling that is gonna be in place that we've never had before. So we're not only excited for Canada to participate in a global LG market and as we all know, the world needs more Canadian oil and gas. But it's very, it's just nice to have some reliable, consistent.
you know, projects that are occurring.
that are occurring.
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The next question is from Aaron McNeil with TD Securities. Go ahead.
Hey, Morayel. Couple of questions on the new DGB engines. Now that you've got more data, can you give us a sense of... Can you give us a sense of...
You know what the actual fuel savings are and percentage terms.
You know, a metric ton basis, you know, whatever you think really, I guess it's a really matter, just whatever, you know, you think on as you compare to the fuel cost of a two or two engine or a bi-fuel engine. So, you know, a bi-fuel engine. A bi-fuel engine.
I mean, there's so many, I mean, I understand what you're asking, why you're asking it. Unfortunately, there's just so many operating. Unfortunately, there's just so many operating.
conditions that greatly influence the fuel consumption. So it's hard to say, but...
you know it's not unusual for there to be a $70,000 a day savings on a large frac spread on fuel or on a per well basis, sorry. So it's significant. You know the price of natural gas even at these prices is...
is a lot less than $2.00 a year for diesel.
And then as a follow-up, you know.
I assume that those savings are somewhat shared between you and the customer, with higher pricing offset by lower cost.
I guess the question is are you delivering a lower all-in completions cost to your customer even though you might be charging more for the fleet?
You're up.
Generally, yes.
Because there's so much that goes into a completion's cost, like just things like time on location. Right, this equipment, this equipment is so efficient that we're just getting well done quicker than ever when you compare it to our other equipment. When you compare it to our other equipment.
Okay, thanks, all of you to there.
Once again if you have a question please press star then one. The next question is from Waukar Syed with ATB Capital Markets. Please go ahead.
Brad, what's the cost of a tier 4 upgrade these days?
Well, I hate to say this, but it depends.
I'd be part of, because as you know we're retrofitting equipment.
And so it really depends on the state of the equipment that you're retrofitting, whether it needs to rebuild pump or brand new pump.
It is very fair to say that our costs as we continue to go into our
Parked fleet of equipment, the costs are climbing.
You know, and I've made this comments before I mean try can like every other competitor in the basin Has equipment parked and and you know the age of the your typical frac fleet in Canada. It is not Is not young You know, it's it's easily be 10 years old 10 years plus years old so You know if you're going into an old
2500 horsepower pump that was built in 2000 and
11, you know that pump may need to be replaced by now. You know, it may not be worth upgrading. And so I mean when we started down this road we were about 20 million.
of Canadian in retrofit costs that has climbed to 30.
And it's a combination of both inflation, from cast on the price of these engines, and just the requirements for new pumps and transmissions versus rebuilt pumps and transmissions.
And if you want to do it like a completely new fleet.
What would the cost be there?
Oh, like a brand new frack fleet with tier four.
Tier 4 pumps would be 50 millionish.
Yeah.
And that will be like a 30,000 horsepower or 35,000?
No, that would be 40,000 40,000 40,000. It looks like it does. Yeah, yeah. I just...
or 14 times 3.
14 times 3,000 horsepower, like 14 pumps at 3,000 horsepower. Okay. Okay.
Now, in terms of as you talk to your customers, what are you hearing from them about the typical seasonality that you see in Q4? What's your early thoughts? How would that look like? What are you hearing from them about the typical seasonality that you see in Q4? How would that look like?
I don't think anything's changed. I mean in the past.
I would say there's more sort of focused on budget exhaustion versus seasonality. I mean, there's always weather interruptions. It doesn't matter what quarter of the year. In Canada, you know, we work in the north. It's remote. We have four seasons and every time you have a change of seasons, there's issues, right? So there's always weather delays in Q4 and then of course we have the Christmas slowdown and...
In Canada, Christmas is a much bigger event than Thanksgiving, but obviously based on its adjacency to New Year's, Christmas slowdown can be a couple of weeks. So there's always those issues. I don't think budget exhaustion is going to be as big an issue this year as it has in prior years.
yeah.
And then, you know, so far in first half, the EBITDA margins have kind of lagged last year's first half. Do you see substantial pickup in second half versus second half of last year?
Yes.
So you're asking second half of this year versus second half of last year?
Yeah, that's a good idea. Yes, we expect the margins to be higher. Yes, we expect the margins to be higher.
Yeah, the other point I'd add, Bacar is just to remember to normalize last year's operating results and margins for the amount of wage subsidy programs that came in there, right? So...
Fair enough, fair enough. And Brad, in terms of, you mentioned about sand shortages and chemical shortages, and certainly those issues, but could you maybe...
Talk to the magnitude of that. Do you think that industry activity is going to get disrupted? We're not being able to get things done overall in industry? Or is it more kind of a nuisance that's going to be handled and there's going to be some price inflation that's about it?
Yeah, I think I do actually expect it will be short-term shortages. And by short term, I mean sort of a day or two.
So it is going to be, I would say it's going to be though, a more consistent nuisance.
you know, will we get it done? Yes. But...
you know when we look long term we you know we
You know, we're always looking a few years down the road and so...
Are we thinking about sort of sand supply and chemical supply and the volumes because the volumes have grown on a per well basis and as the well count grows, you can have some fairly steep increases in the total tons of sand being pumped. So yeah, we are thinking about, we are working with our suppliers on making sure that their operations are matching what we are seeing.
And just one final question. Any early reads on catpacks for next year?
No.
You know we're very?.. S Same same thing butY Once again, goodbye.
We're very happy with the Tier 4 performance.
so yeah I think it's a fair assumption that we are going to continue to retrofit our equipment with what we view is to be the best technology at the time and right now that's you know that's the tier 4 DGB engines if something better comes along you know we're completely agnostic to technology and so we'll
We'll put the best technology into the field.
So, would it be fair to say that at minimum, gap bags could be relatively flat, at least flat, 20, 23 versus 20, 22? Yep, I think that's reasonable.
And just one last, sorry, get one more in. maintenance capex per feet, what is that running?
I don't think like in fleet terms, you know, that tune like like three, three-ish.
3 million, okay.
That's good.
Thank you, I appreciate that. You know, with car maintenance capital, you can roughly...
predict is around 4% of revenue.
Okay.
Once again if you have a question please press star then one. The next question is from John Gibson with BMO Capital Markets.
question, please press star then one. The next question is from John Gibson with BMO Capital Markets. Please go ahead.
Morning guys, I just had one quick one here. You spoke about some net pricing increases sitting in your fleet. Just wondering if you could give a sense of what proportions should benefit from.
The higher net pricing starting in July and then.
how will this sort of change as the back half of your progress is?
I'm not following you John . What proportion? I'm just wondering what percentage of your fleet will actually benefit from higher net pricing?
And then that sort of increases as the year goes on.
increases the year goes on. Generally all of it.
Okay, great. I'll leave there. Thanks.
The next question is from Cole Pereira with Speedful.
Next question is from Cole Pereira with FIFO. Please go ahead.
Hi, morning everyone. Just wanted to quickly build on John's question. I mean maybe it's a bit tough to answer because it's going to vary between customers but I mean are you willing to sort of add any details on what that net pricing increase might be say on average compared to
Uh, no.
But I have made public comments before that we were targeting a net price increases of 10%. And we've been very open with our customers that it's frustrating for them because we've had very significant price increases that they've obviously taken on. And it's frustrating for us because almost none of those price increases went into our pockets.
And so we're fortunate, our customers understand we need to make money. And so, you know, we've been more vocal about the need for try-can to gain from these price increases and generally it's gone pretty smoothly. And it's not, you know, we're not talking big numbers. Just, you know, we're targeting whatever I've already mentioned, which...
Okay got it, that's helpful thanks. Coming back to the incremental tier fours, I mean you kind of mentioned earlier you think the frac market is sort of at capacity and you're adding a fleet here in Q3 and another in Q4. I mean is it a function of just your current program? You have line of sight that that shouldn't oversupply the market or is it more a function of...
pricing is getting high enough to justify the activation and I mean with a fleet coming in Q4 do you think Q4 is actually going to be stronger than Q3 or how should we think about that?
You know, I'll just maybe address, I don't think very rarely Q4 will ever be stronger than Q3. You know, just due to the onset of winter and the Christmas break, it's very hard for Q4 to be an excessive of Q3. And just with respect to the equipment additions.
You have to remember, you know, this isn't just generic equipment that's going into the field, right? So it's very targeted additions with respect to customer demand for Tier 4 technology.
And we don't, you know, this is priced at a premium.
and we're prepared to park it if we don't get the right price for it.
Okay, got it. And some commentary in the industry, just about bottlenecks and events that you touched on. Can you just comment on how pricing specifically for that service line should be in the second half and as well maybe on the cost inflation front? and as well maybe on the cost inflation front.
The instrument.
Cement has probably experienced
some of the most significant.
cost inflation starting back in Q4 of 2021.
And so we've really had to be on our toes to keep up with price inflation or our cost inflation. So, but in general, you know, we're fairly consistent across our service lines with respect to price increases.
Okay, got it. And you mentioned you plan to increase your share buybacks. Can you just give somewhat of a quantum of that, whether in percentage or dollar terms?
Yeah, I'd say we've been buying a back roughly $3 million of shares each month over the last six months. So I would expect that'll be our baseline. We'll probably tick that up a little bit. And then as Brad mentioned, we've got some opportunistic funds set aside as well. So we'd expect that that regular cadence that we saw in the first six months will be a bit higher in the back half plus we'll be able to take advantage of some of the price disconnects that we're seeing. Yeah, just for modeling purposes. You know, I'd use four million.
the question and answer session. I would like to trade the conference back over to Mr. Brad for the work of any closing remarks.
Okay, thank you everyone. We appreciate your interest in our company and Scott and I and the rest of the management team will be available for any follow-up questions that anyone may have throughout the day. So please call us directly if there's any more questions. Thank you.
This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
you
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