Q2 2022 Crestwood Equity Partners LP Earnings Call
The impact of that to our actual results, we would've come in right at consensus and expectations, then I'm going to turn it over to Robert to go through the quarterly results in detail and also the updated guidance for 2022, which I think is critically important here. So.
So to get started I'm pleased to.
Tell you how well we are positioned and how good the port portfolio looks.
For the next 24 months in the current commodity cycle. If we take a step back Crestwood has come a long way in a short amount of time.
Just a quick review in 2017 to 2019, you might remember that we completed a number of significant organic capital projects, including the bear den plant up in North Dakota, The bucking horse plant in eastern Wyoming.
And the oil and gas plant down in Texas, and the Delaware Basin. These are our three core areas. The Williston the powder River in the Delaware. This is the underpinning of the company going forward in.
In 2020, we clearly made it through the Covid disruptions without cutting our distribution and we maintained a strong balance sheet that gave us currency to be able to continue to grow the business and we're proud of our actions there in 2021 and year to date through 2022 as those core assets and expansion projects were for.
Filling up we started executing on our regional consolidation strategy through very complementary bolt on acquisitions, such as Oasis midstream in the Williston Sendero and rolling up CP JV in the Delaware and we pair those with some long term critical infrastructure projects that expanded our reach.
Reach in each of those basins, including such as the Continental Express pipeline system in the powder River Basin, which connects all of of Continental resources acreage. There in the basin. Our goal was and will continue to be a top three GNP company and all of our core areas.
Throughout the execution of our recent consolidation strategy to maintain balance sheet strength and flexibility, which is our top priority. We acquired many of these assets with common equity.
Aligning the interest of the holders with Crestwood and in transactions that were immediately accretive to DCF.
We also divested some of our low growth assets in the portfolio at premium market multiples, which greatly improved our overall portfolio of growth potential for the future.
And as a result, I just want to highlight that we've transformed crestwood.
From a company that was generating adjusted EBITDA of about $527 million in 2019, with a relatively scattered asset base and limited competitive advantage in these high growth basins and we are now at generating north of $820 million a year of adjusted EBITDA.
That's an increase of over 55% and we're generating that with an asset base that is solid and competitive in the regions, where we operate with enhanced competitive positioning much larger scale operational synergies and a strong customer base in our core areas of the Williston.
In the Delaware and the powder River, So just a quick.
A quick update on our strategy, we think we're in really good position right now.
To generate some real strong growth in these areas our acquisitions have been timely.
Offer significant operational and commercial synergies and they are easily integrated into our core positions in each of these basins.
Most importantly, they allowed crestwood to continue to grow while avoiding significant future capital expenditures due to the excess processing and compression capacity that we acquired in each of these acquisitions. Today. We now have 430 million a day of processing capacity in the Williston as it.
Bounces back from winter storms I'm pleased to see we have about 43 rigs running there and production is headed back to $1 1 million barrels a day.
That it was before the storms, we have 550 million a day of processing capacity in the Delaware, which I think you. All know is the most active producing region in the U S by rig count today, we're really pleased with how our Orla Willow Lake and soon Darrow assets are integrating together and then finally, we have.
345 million a day of processing capacity in the powder River basin, and we have great expectations for growth there.
Late 'twenty, two and 2023 each of these transactions gives us valuable available capacity to meet future production growth.
From our producers and going forward, we're now ready to shift our strategy back to harvest mode. As we focus on integration and optimization of these assets to ensure that we capture all the benefits from the combined platforms.
Now alongside our A&D program. We've also benefited from upstream consolidations amongst our producer group, So very high quality group of producer customers in <unk>.
All three basins in the Williston as you know Oasis just merged with Whiting to create CT energy and they are a leading Williston basin focused company and also Devon energy just completed its acquisition of Rimrock are number one and number two producers on the arrow system.
I'm really pleased with the seamless nature of that and the integration synergies that they will see that will benefit the arrow gathering system. These.
These combinations not only enhance our customer base, but it also highlights the long term resource potential and the value of the Williston basin and in much of the acreage that's dedicated to us in.
In the powder River basin Continental has multiple acquisitions over the past year or two and that gives us great optimism about the future of that basin and highlights. The fact that now all of our core assets are underpinned and supported by some of the largest and most active upstream players in each of the basins for the Williston.
Powder and the Delaware.
So really pleased about where we are strategically as we head into a fairly strong commodity cycle now shifting gears in the second quarter in North Dakota, We did experience two unusually light extreme winter storms, which brought over four feet of snow and cause prolonged power outages and other facility.
These disruptions that impacted production volumes across the Williston basin.
And while the weather is always outside of our control I want to say that I am extremely proud of the work that our operations and commercial teams did alongside our producer customers to mitigate the impact and ensure that our assets were back up and running as safely and efficiently as possible after the storm subsided.
While we estimate this event had a negative cash flow impact of about $13 million to the second quarter results. Our assets are now back to full capacity and producers are working hard to play catch up which should drive volumes in completion activity in the second half of the year and well into 2023.
And I guess finally before I hand, the call over to Robert to go through the numbers I'd like to say, how proud I am of our employees and their efforts to create a bigger better stronger crestwood in the areas that we operate.
The OE system sendero opportunities were logical consolidation opportunities that checked all of our boxes for value creation, and we're extremely synergistic with our existing assets and existing commercial relationships. We now have the necessary tools and our core assets to organic.
<unk> build financial and operational scale.
And continue to be competitive for future third party opportunities.
The fundamentals of the business are very strong right now, particularly in the Williston powder in Delaware. Despite the short term noise around the second quarter weather impact I think we're very well positioned to benefit from the commodity price upside going forward and I'm excited about our outlook as we begin to really benefit from enhance.
Operational scale meaningful excess cash flow that.
That we think will create significant long term value for our unit holders. So again just to.
Make a point.
After 18 months in six significant transactions were in great position right now to really benefit from the market that we're in and the areas that we operate and with that I'll turn it over to Robert to provide the details of the second quarter results.
Thank you Bob for.
For the second quarter, Crestwood generated adjusted EBITDA of $180 million and distributable cash flow of $108 million year over year increases of 23% and 26% respectively.
Our second quarter results were driven by robust Delaware basin activity and strong commodity prices offset by the $13 million impact from the winter storms that impacted the Williston basin for a big portion of April and May.
If not for the weather impact our earnings would've been in line with to slightly ahead of our internal budget forecast for the quarter.
For the second quarter, Crestwood announced a 65 and a half cent distribution payable on August 12 to unit holders of record as of August 5th resulting in a coverage ratio of one seven times.
Looking to the segments in the gathering and processing North segment second quarter, 2022, EBITDA totaled $153 million an increase.
<unk>, a 47% over the second quarter of 2021, largely the result of the contribution from the Oasis midstream assets.
During the quarter volumes began flowing through the continental Continental Express pipeline in the powder River basin and have already exceeded internal expectations.
We expect these volumes to continue to ramp up as continental resources executes on its drilling program in the basin.
There are currently four rigs running in the Williston basin and two rigs running in the powder River basin.
In the gathering and processing South segment second quarter, 2022 segment EBITDA totaled $32 million.
Representing a 60% increase year over year, driven by growth in the Delaware Basin and strong natural gas prices on the recently divested Barnett shale assets.
During the quarter, our producers' operated at an average of seven rigs.
Including the newly acquired Sendero assets, we now anticipate more than 120 wells to be connected in the Delaware basin and all of 2022.
Finally in the storage and logistics segment.
Second quarter, 2022, EBITDA totaled $5 million.
A decrease year over year, primarily due to the divestiture of the Stagecoach gas services joint venture in July of 2021.
And the negative impact of the hedges related to our commodity exposure on our gathering and processing assets.
During the quarter, the NGL logistics business benefited from increased volumes offset by fewer storage opportunities.
Based on first half results and the recent strategic transactions Crestwood now expects full year adjusted EBITDA to be in the range of $800 million to $840 million.
This revised range is driven by the favorable impacts of the scenario in CPE JV acquisitions, partially offset by the divestiture of the Barnett assets the impacts of the weather events in North Dakota, and some timing shifts in well completion activity due to weather and ongoing oilfield services constraints in the Williston basin.
In addition, we are also revising our 2022 growth capital to a range of $220 million to $240 million, which includes approximately $35 million of capital, which we inherited with the recent sendero in CP JV acquisitions, and approximately $25 million in newly underwritten.
Nick projects to support accelerated customer activity, primarily in the Delaware Basin.
A sizable mix of our 2022 capital program is centered around integrating Crestwood legacy systems with many of the assets that we have acquired over the last year.
As our customers continue to execute their development plans in this favorable commodity backdrop dispositions crestwood for robust volumetric and cash flow growth in 2023 with substantially lower capital requirements.
Crestwood remains committed to maintaining a strong balance sheet and significant financial flexibility.
As of June 30, Crestwood ended the second quarter with $2 9 billion in long term debt, including $679 million drawn on our $1 5 billion revolving credit facility, resulting in a leverage ratio of three seven times.
Before going to the Q&A I want to Echo Bob's sentiment I am very pleased with how Crestwood is positioned here midway through 2020 to the.
The recent investments we have made in the last 12 months significantly high grade and expand our operating footprint in our core basins, which represent the most economic upstream basins in the U S. All.
All three of Crestwood as core assets are underpinned by long term contracts with the best capitalized and most active producers in each respective basin.
As a result, we are now better positioned to capture the full extent of continued volume growth in the second half of 2022 and well into 2023 in this current commodity cycle.
As Crestwood has executed its near term strategy of M&A consolidation around our core areas. We now shift our focus exclusively towards integration of these new assets and organic growth projects, resulting in meaningful free cash flow growth that will that we will use to further reduce leverage and enhance returns to our investors.
We believe this will best position Crestwood to continue delivering long term value for our unit holders.
With that operator, we are now ready to open the lineup for questions.
Thank you.
If you would like to ask a question today. Please press star one from your telephone keypad, a confirmation tone will indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue.
So patients that are using speaker equipment may be necessary to pick up your handset before pressing the star keys.
One moment, please pull for questions once again star one to ask a question.
Yes.
Thank you and our first question will be from the line of Jeremy Tonet with Jpmorgan. Please proceed with your question.
Hi, good morning.
Good morning, Jeremy.
I just wanted to.
Get an update from you guys as far as there was a fire in Medford with some of the fractionation facility. There just wondering if that might have any impact on your operations over the balance of the year any color you can provide there.
Jeremy We've got John Powell on the phone in Kansas City. He runs our NGL business and has the relationship with one oak. So he probably has the most updated information J P are you on.
Jeremy Thanks for the question I think it was a good.
Good question relative to our to our assets up there and the discussions with one out there currently running.
To run the pipeline.
This is a similar exercise.
Recently took down their frac in Bellevue and so.
That was back in May or June and so similar similar exercise what that meant for frac. They have plenty of storage capacity plenty of pipeline capacity and so they are working with other industry parties to offload a lot of this Y grade. So we haven't seen any disruption from <unk>.
From from one out from that standpoint, obviously, it's a critical piece of infrastructure in the Oklahoma area.
<unk> is able to clear these liquids.
But we have a lot of confidence in one out with their diverse portfolio to be able to handle the issue at hand, so so far so good.
And just as a backdrop I mean, we've we've been able to clear the plant.
Through through truck as well as rail so we're positioned to do that as well if necessary.
To keep everything running but so far everything looks looks.
Well from from <unk> standpoint to be able to continue to take the barrels.
Okay.
Got it that's very helpful and then pivoting.
Pivoting over just wanted to get your thoughts on future midstream consolidation.
Crestwood has been quite active recently I think you said partnerships moving more towards harvest mode here, but just wondering do you think there's more consolidation in the industry over time and with Crestwood be involved at a later date.
Yes, Thanks, Jeremy I think yes, as your answer I think consolidation has happened in the midstream space and will play out over time for US right now that we're really concentrating on integrating and optimizing the assets that we've acquired over the last 18 months and making sure that we generate the return we expected from those.
Investment if not more but long term I would expect us to participate but just probably not in call. It a next six months to 12 months.
Got it that's helpful I'll leave it there thanks.
Well it is.
Great question, which highlights again the strategy.
After we finish the organic build out 2017 to 2019, we saw the opportunity.
Two really core up our position in those three basins and add substantially to the great rock and long term inventory that we have dedicated to our assets and we've really executed on that I think flawlessly with the with.
With the Oasis midstream acquisition.
More than doubles, our processing capacity in our system reach and gets us out into the Western region, which has historically not been drilled as heavily as maybe some of the central Bakken positions have same thing in the Delaware by combining our Willow Lake Orla and sendero, we're adding substantial acreage.
<unk> number of additional drilling locations I think if I recall, it's coincidentally about the same number about 1200 drilling locations that we added.
In the Bakken and 200 in the Delaware smaller systems, but obviously, the Delaware is a lot more prolific so.
We've really accomplished our initial strategy to core up our position in those three.
<unk>, which we think will drive growth for many many years at Crestwood.
<unk>.
The next phase of this consolidation, we will just have to be patient and opportunistic and wait to see what we see but right. Now we are laser focused on getting leverage back down again.
Our target goal and to generate free cash flow and continue to drive return to our shareholders.
Thank you.
Our next question comes from the line of Neal Dingmann with <unk> Securities. Please proceed with your questions.
It seems like you made nice progress on the recent deals I'm just wondering could you give maybe a little more color if you're able just on how the integration process is going and when you think youll be sort of fully integrated Hudson Jerry on some of the others.
Yes, Thanks, Neil I'll speak briefly to that and then May ask tiago to chime in a little bit. If he has got incremental comments, but I think the short answer is things are going exceptionally well one of the most attractive elements of this narrow assets.
Was obviously, just the where the system was positioned relative to ours and what it enabled us to do from a capital efficiency standpoint to integrate those two systems interconnect, our new Mexico pipeline compression assets with their plant capacity.
Happy to report that that's largely completed and we are feeling very very good about.
Having that excess capacity and the production outlook from each of our customers I think we're a couple of million dollars ahead of schedule out of the gate around monthly cash flow generation and we'd expect that trend to continue as we've got a lot of development expected here in the second half.
Would not have been able to capture all of that without this excess capacity and integration of those assets. So I think.
Early signs are very favorable we look forward to getting our producers 23 schedules and expect a big year for ourselves.
And <unk> why don't you.
Cost savings, particularly on the Oasis integration, yes, so for the Oasis integration as we originally announced we were targeting around $25 million of cost synergies to.
To achieve we are right on track related to that we're actually ahead of schedule from a cost standpoint with costs coming in about $4 million.
Lower than what we anticipated so far through June 30, or so so we believe that we are ahead of our cost synergy targets right now for Oasis.
Are actively integrating the sendero assets from from.
From a back office standpoint from a cost standpoint, as well and we believe we're going to be able to achieve those synergies as well for those assets.
<unk>, how about commercial synergies.
Those are going very well.
In the Bakken, we've picked up a couple of the opportunities that werent in our planning forecast, so, let's say that revenue contaminant.
<unk> as the year progresses into 'twenty three predominantly.
And then from a scenario perspective, the synergies there between the two plants and infrastructure are outstanding.
Forecast us in their facility to be fairly utilized through 'twenty, three and we're excited about that.
So you do have does sound like a little bit more synergies than even expected prior to the deal.
Absolutely.
Great Great and then just lastly, a second question on infrastructure could you talk maybe specifically did youll have to make any permanent changes or did you make any permit changes to the Bakken assets post the.
<unk> storms or was it just sort of typical.
Sort of I guess somewhat used to typical offline issues that came back.
Yes. This is thiago good question the Bakken storms were really more of a upstream event versus a midstream event. If you think about the facilities out there and lots of power really does drive a tremendous amount of offline activity.
As Bob referenced our impact was much less than the industry's impact in the Bakken to the tune of about 10% less so our operations team did a great job with redundancy through power generation backup generation that we had already in place on standby.
Our producer customers did a fantastic job getting back online core.
Kevin.
Two major customers up there great job getting their assets back online no no facility changes no capital improvements where necessary through the storms, we went unscathed.
And the.
Best thing about it safety was number one priority.
No one got hurt.
Great to hear thanks, guys.
Thanks Neil.
Our next question is from the line of Elvira Scotto with RBC capital markets. Please proceed with your questions.
Hey, good morning, everyone.
First question is around.
Inflation can you maybe talk a little bit about the inflationary environment any cost creep that you're seeing on capex.
Any impact to returns and then maybe we know there is some inflation escalators built into your contracts. So maybe talk a little bit about that with you as well.
Hey, Elvira this is <unk> a great question.
Let me start with the commercial contracts.
Escalators are in.
All of our contracts, we havent predominantly all of them and they follow.
Hi.
So we expect to see those continue to play through as the contracts escalate predominately on an annual basis.
And then secondly on the on the capital operating side, we have done a fantastic job in mitigating inflation, our operating expenses are below budget.
Some of the things that we've done just to mitigate the big challenge is actually sourcing.
Material from a capital perspective and.
And we've got inventory levels for our critical equipment that as well.
We have projects come come do we look at our inventory levels were checking with our suppliers on lead times, we understand lead times being pushed out and we adjust our inventory levels based on the.
<unk> forecasted lead time, so we've had zero projects waiting to be completed because of inventory issues.
And all of our all of our projects have come in at budget or under budget for the year and most of these projects were underwritten in 2021, So just an outstanding job by the team.
And what's most amazing is even the projects that we didn't have underwritten in 'twenty two we've been able to source and quickly respond to our customers' needs and youll see some of that fruit in late 'twenty two early 'twenty three.
Great. Thank you and then just.
Next question.
No you've done.
Great job.
I guess pruning your portfolio, maybe selling some less core assets are there any other assets that.
You consider maybe last quarter.
It could be under consideration for personnel.
Elvira.
This as well as we look at our portfolio, we're always looking at it as a portfolio manager and so if there is an asset in our portfolio that someone will put a value on that we think it makes sense to transact at opt.
Opportunity to redeploy that cash into the balance sheet or enjoy the Capex program, we're going to look at it I wouldn't say that we have an active divestiture program going right now, but we're always going to be opportunistic around those type of situations.
Great. Thank you very much.
Thanks Elvira.
As a reminder to ask a question today you May press Star one.
The next question is from the line of James Carreker with U S Capital Advisors. Please proceed with your questions.
Sure.
Hi, Thanks for the question I was wondering if you guys could quickly walk through the mechanics.
Of how your G&P hedges flow through to the <unk> segment, and if theres any way to kind of quantify that impact in Q2, and then the revised 'twenty two guidance.
Yes, so the.
The hedge impact obviously, all of our hedging and risk management activities run through the.
Storage and logistics segment.
Do we see any impacts associated with the NGL business hedges in the G&P hedges in that segment and then obviously any benefit to the commodity.
From the commodity portfolio on the pop book appears in the G&P portfolio.
Just to put some numbers to it.
On a two on a full year 2022 basis, we expect there to be about a $30 million hedge impact.
In the current price outlook for.
For the full year and so that's.
What you see in kind of the revision of the guidance across the three segments that is that the primary driver of the movement in the SNL segment, obviously, we see the benefit of that flow through the GNP portfolio.
We get a higher commodity price realization on our part book, So thats kind of full year impacts and kind of how it flows through if that helps you.
So the SNL.
<unk>.
Includes both the realized and unrealized.
Gains and losses.
Yes, that's correct.
Okay.
And then.
It was growing quickly so maybe you touched this.
In your opening remarks, but kind of with the winter weather impacts.
I guess, how does your full year 'twenty, two well connect count look today.
Versus maybe at the start of the year.
Are we getting the same wells and a compacted amount of time or some of those wells slipping into 'twenty three.
How is that dynamic playing out.
Yes, I would say.
We're largely on track across our three core areas as well.
We talked about in the press release and kind of in in our commentary we did see some deferrals or timing in North Dakota around completions that were scheduled during the second quarter that got pushed because of the winter weather and that just kind of shifts everything back in the queue. We still as we communicated today, we still expect to complete roughly.
Just north of a 100 wells between kind of a 100 right around 110 wells for the year full year in North Dakota, and Thats, where kind of generally in line with the original guidance, we put out at the beginning of the year at 110 to 120 wells.
So I think we feel we feel pretty good about how we're positioned there you'll have some timing shift and it'll be a big busy second half of the year, which should position us well into 2023, when you look at the Delaware Basin.
We've seen an uptick in activity there more production really across both the legacy Crestwood assets and it's an darrow assets.
Now expect to complete I think in total close to 150 wells across both systems over the course of the year. So all turning in the right direction to the outgo anything you'd add from a commercial standpoint, yes. Thank you Robert James One thing I do want to add is we did have some wells pushed into 'twenty three and those are some docks on our system Theres nine Ducks 16.
That exists today nine will be sitting in 'twenty three and those are more facility related on the upstream side, where they had to make some modifications in order some facilities that will push that completion activity into 'twenty three.
That's great if I could fit one more in just any.
<unk> thoughts.
Cord merger now complete and obviously owners of the significant amount of your units.
Any conversations with them about their <unk>.
Long term plans with those.
James Thats a great question since I highlighted that in my opening comments, we've got a great strategic alignment with core.
We know both sets of executives that will form that combined executive team norm well known them for a long time back.
A lot of that widening group used to be Kodiak, which was one of the original producers on our arrow system. We're really pleased with how their governance structure shook out how their management team is shaking out the integration process that they are undergoing right now.
Our level of communication and collaboration.
With now cord previously Oasis has increased dramatically over the last several weeks to a couple of months.
Owing largely to the completion of the merger.
They are hitting on all cylinders right now and really gearing up.
To get there 22 program.
Not underway, but back up to speed it might've been slowed down some by both the winter weather event, which impacted Oasis and wedding, both as well as just the nature of.
A large scale producer integration process merger process like that so we're excited about that we have a great relationship with them at all levels of the company, we inherited a fairly full capital project program, which you can see from the numbers that we've quoted here in terms of the amount of capital that we're spending.
It's almost all entirely on the Oasis assets.
And the expectation of significant development by now cord energy. So I'm really pleased from a commercial and operating standpoint, Robert you can talk more about it from a financial standpoint, as you talk regularly with them. So it give us an update there.
Yes.
<unk>.
Bob mentioned the relationship on the commercial and operation side, we have a similar relationship with the leadership team around our alignment and ownership obviously, they still have two representatives on our board and we're very excited about.
Knowing that relationship going forward I think there is there is obviously strong alignment of interest is their largest service provider in their largest customer to continue ensuring that theyre North Dakota production finds its way to market as efficiently as possible and I think as a result of that they like having.
The insight into our business and our.
Execution plans and expectations. So I don't we don't have any meaningful.
Recent updates from them I think that their ownership position is still very much strategic to them.
Do know just from some ongoing discussions that they like us see kind of the price activity across the sector over the last several.
Month's end for Crestwood, specifically and don't really think that aligns with the broader market opportunities given the commodity backdrop and so I think we'll continue in the current relationship and look forward to them getting the merger behind them now in integration underway and seeing the benefits of their broader portfolio into the future.
And James I Should've mentioned, we're really pleased with the two new.
Board reps that the court has designated for US very experienced people will add significantly not only to our diversity on the board but.
Overall.
Energy value chain experience and were very pleased to have them on the board and they have already jumped in and started working with us so very happy about that.
Great. Thanks for all that color.
Thank you we've reached the end of the question and answer session I will now turn the call back to Bob Phillips for closing remarks.
Thanks, operator.
Just like to make a point to our investors that oftentimes this kind of data or performance doesn't really rise to the level of second quarter reporting, but our safety performance in the first half of this year has been record breaking at Crestwood. We're now 12 years old and I can tell you. This is the best first half of the year safety.
Performance that we have had in the history of the company, we've got a lot of momentum going into the second half of the year.
What it tells me having been in the business for a long time is this is a very mature organization, we know how to acquire and integrate and divest assets. In fact, if you go back over the 12 year history, we've actually made 18 acquisitions and nine divestitures. So the company is very mature.
Sure from an integration standpoint, and oftentimes as you know company's safety performance suffers when theyre going through mergers acquisitions divestitures integration kind of on and on and on I'm really proud of the job that our integration teams have done both.
At Oasis and now at Sendero, where quick were thorough where efficient we get that past us.
Our engineering project management team have jumped on the projects that were sitting in the whole waiting to be moved on.
From both of those companies and we're really pleased about the capital efficiency.
And the scheduling and timing that they are showing us. So I would just say quickly that accompany that.
As great safety performance during a year of both weather related challenges as well as integration challenges is a very mature organization and I'm proud of what we've done at Crestwood and I think the second half of the year is going to be growing 23 will be even better as will said we're in harvest mode now, but we're always opportunistic looking.
For the next big opportunity in the areas that we operate so really proud of the team not only for the execution of the strategy, but now the execution of the integration in.
In achieving the cost savings the commercial synergies and doing so with excellent safety performance in the first half of 2022, So hope some of the analysts can.
Give our investors an update on that as well, we're really proud of this company and their safety performance and with that operator.
We're done for today and thank you all for joining us and look forward to talking to you after the third quarter report.
Thank you.
Today's conference. This concludes today's conference you may disconnect. Your lines at this time and we thank you for your participation.
Yes.