Q2 2022 Earthstone Energy Inc Earnings Call
Good morning, and welcome to Earth Stone Energy's conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference call. Please press star zero on your telephone keypad.
As a reminder, this conference call is being recorded.
Joining us today from Archstone are Robert Anderson, President and C E O.
Mark Lumpkin executive Vice President and CFO .
Steve Collins.
Executive Vice Vice President and C O O and Scott the lender Vice President of Finance Mr. C. Lender you may begin.
Thank you and welcome to our second quarter 2022 conference call before we get started I would like to remind you that today's call will contain forward looking statements within the meaning of federal securities laws.
Although management believes these statements are based on reasonable expectations. They can give no assurance that they will prove to be correct. These statements are subject to certain risks uncertainties and assumptions as described in our annual report on Form 10-K for the year ended December 31, 2021, the second quarter.
Of 2022 earnings announcement and in our Form 10-Q for the second quarter that we filed yesterday.
These documents can be found in the investors section of our website www dot or stone energy Dot com should one or more of these risks materialize or should underlying assumptions prove incorrect actual results may vary materially.
This conference call. Also contains also includes references to certain non-GAAP financial measures reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in our earnings announcement issued yesterday.
Also please note information recorded on this call speaks only as of today August five 2022, therefore, any time sensitive information may no longer be accurate at the time of any replay listening or transcript reading.
Today's call will begin with comments from Robert Anderson, our President and CEO , followed by remarks from Steve Collins, our CFO and Mark Lumpkin, Our CFO and then we will have some closing comments from Robert I'll now turn the call over to Robert Hey, Thanks, Scott and good morning, everyone. Thank you for taking the time to join US join US This morning.
And for those on the call as well as to those listening in on the webcast. Our strong second quarter results reflect the meaningful contributions of our acquisitions to date, which have considerably boosted our production and substantially increased our free cash flow generation. Most of company record levels in late June we announced the tightest acquisition.
We expect to close this month, and which adds to our growing position in the northern Delaware Basin. This acquisition is expected to increase our total daily production to a level approaching 100000 Boe per day and will add to our high margin drilling inventory.
We're acquiring a high return de risked drilling inventory with a 114 gross 86 net operated locations with 75% of these net locations along the Stateline trend area of New Mexico, and Texas, which is considered by most in the industry as some of the best inventory in the country.
As a quick reminder, with Titus we will close on seven acquisitions six of them being in the Permian since the beginning of 2021.
Recall at that time, we were producing somewhere around 15000 Boe per day, we have spent $2 $5 billion with consideration consisting of about 70% cash and 30% equity while the proved developed value of those assets have a PV 10 of $2 $7 billion at the time of acquisition.
So we gained more proved developed value than the combined consideration not only did we get to about 100000 Boe per day with these acquisitions. The combination of all of these acquisitions has provided us with close to 700 locations for free.
With our largest two acquisitions closing in February and April of this year, we have had very substantial integration work in the first half of the year by all of our teams on our most recent acquisition, which was the big Horn assets in the Midland Basin. We are pleased with our operational transition and our efforts to optimize production and to reduce operating costs.
The close proximity of this asset to our existing assets has allowed for synergies that we expect will be evident in operating cost efficiencies in the future.
We also entered the Delaware basin with our acquisition that closed in February and have now been running a two rig drilling program for about five months and are seeing strong well results. Additionally, we've been able to improve on drilling and completion efficiencies since taking over these operations as a result of our operating procedures. We have cut a few days off of our draw.
<unk> times and now expect to spud a few more wells in 2022 on these legacy Delaware Basin assets. This offset some of the inflationary pressures we are facing but also allows us to moderately accelerate our development pace in the Delaware Basin, Steve will provide some additional comments shortly.
We anticipate picking up a fifth rig late in the third quarter as it is released from another operator, which will be used in the Delaware basin. So for the fourth quarter, we expect to have three rigs in the Delaware. While we continue to have two rigs in the Midland This will add about $40 million to our capital expenditure guidance, which we have updated with.
Our earnings release, and Mark will provide some more information for the second half of the year, we expect to spend between 303 hundred $25 million, which includes the additional rig a few more legacy Delaware basin wells getting spud and incorporates inflationary impacts seen to date and expected for the balance of the year as.
As I mentioned last quarter, our near term cash flow free cash flow will be allocated to paying down the outstanding debt under our credit facility and we do expect to be well under our targeted one time debt to last quarter annualized adjusted EBITDAX ratio by year end, including the impact of Titus now I'll turn the call over.
To Steve to provide an update on operations.
Thanks, Robert Good morning, everyone. We continue to operate two drilling rigs in each of the Midland and northern Delaware basins during the second quarter.
Robert mentioned, we have plans to add an additional Delaware rig.
Later in the third quarter. Besides the drilling operations and we also have frac operations underway in both the Midland and Delaware.
Our well results and total production data outperforming expectations. One example that we highlighted in our earnings release is the completion of our Belle are five eight pad in Lea County, New Mexico.
This two well pad was one of our initial projects since acquiring the assets in the northern Delaware Basin.
We began producing this two well pad in late June and after flowing for a couple of weeks, we installed electric submersible pumps.
That is now.
Producing 1085 Boe per day per well with 92% oil and steel price in the process of cleaning up.
We did experience several midstream issues and third party saltwater disposal capacity problems, which resulted in some production downtime in the quarter those issues are largely resolved.
The integration of Big Horn, and Chisholm assets continues and we are pleased with how it's progressing.
We are focused on returning wells to production that went offline in the marketing time frame.
Stalling artificial lift when necessary changing artificial lift methods as needed and implementing frac prep strategies to avoid future workovers.
These efforts have increased production by well over 3000 Boe.
Today in the Chisholm properties and 470 Boe per day in the Big Horn properties.
We will apply the same evaluation process to the tightest acquisition.
With the closing of the tightest acquisition and the associated expected addition of the fifth drilling rig.
Spect to spend around $40 million.
Incremental drilling and completion activity this.
This includes completing six wells drilled by tightest prior to closing and the drilling of an additional four wells.
With our anticipated five rig drilling program.
Rigs in the Delaware Basin and two in the Midland Basin, we expect to bring online a total of 61 gross 50 operated wells for the full year of 2022.
While studying a total of 66 gross 53 net operated wells.
Now to address cost pressures.
We aren't immune to the effects of inflation, but we're doing everything we can to mitigate the impact while inflation was only moderately impactful in the first half of the year. We are now seeing more significant impacts of increased prices of services and raw materials.
From a capital expenditure standpoint, we have increased our guidance to account for the cost pressures we've seen in our further forecasting that for the balance of the year.
On the alloy side, while we have seen some inflationary pressures we have been able to mitigate this by realizing efficiencies on our newly acquired assets.
We're pleased with how we were able to manage LOE in the second quarter.
While we hope we would be able to achieve some efficiencies on both the newly acquired Delaware Basin and Midland Basin assets.
Both of which have historically had significantly higher operating cost and <unk> legacy asset.
<unk> outperformed on managing LOE downward versus historical costs, despite an inflationary pressures.
Just to give you a sense of the magnitude of what we've been able to do in managing all the way down after we make acquisitions looking at the two southern Midland Basin acquisitions that we closed in the second half of last year.
Our second quarter LOE per BOE was down 24% and 51%.
LOE per Boe costs at acquisition.
We have seen over a 10% reduction in LOE per Boe on the Chisholm assets in that short period of time that we've been operating that asset and we are heading that way in the big horn assets as well all despite the rising cost environment. We're in.
Closing with a few highlights of our environmental stewardship, we maintain a very thoughtful and disciplined approach to doing the right thing operationally and seeking always to improve.
With our earnings we've released some updated environmental data that demonstrates results of our efforts in this area.
In 2021, we've reduced our greenhouse gas emissions intensity by 36% year over year.
On the flaring side.
When the flaring intensity side, we reduced flaring intensity by 68% with flaring down to <unk>, 7% of produced gas in 2021.
With the additional acquisitions, we have made in 2022, we will apply the archstone operational and environmental impact standards.
The acquired assets all of which have opportunities for improvement.
With that I'll turn it over to Mark Thank you Steve.
As usual I'm going to take this time to provide additional details on some meaningful metrics and provide a few key highlights for the quarter. As you know you can find a detailed breakdown of our results in our earnings release and in our 10-Q, both of which were filed yesterday.
So let me begin with some details surrounding our balance sheet and the impact of our ongoing M&A activity on our balance sheet.
As of the end of the quarter, we had $395 million of debt outstanding on our credit facility with a total of $800 million of electric commitments.
We extended the maturity of the credit facility to five years during the second quarter and the borrowing base was increased to $1 4 billion and that process. Our total debt at quarter end when including the senior unsecured notes that we also issued during the second quarter came out to $933 million. During the month of July we paid down an additional 145 million.
On the credit facility, which brought the credit facility balance down to $250 million as of July 31, and total debt down to approximately $790 million and.
In conjunction with signing the tightest acquisition agreement, which we expect to close on next week, we obtained $400 million of incremental commitments from our existing lenders, which will increase to electric commitments on our credit facility from the current $800 million to $1 2 billion upon closing of the tightest acquisition.
We expect to pay around $535 million of cash at closing on Titus, which we intend to draw under the credit facility, which will bring the balance on our credit facility to around $770 million based on our current funding and bring total debt to around $1 3 billion.
As of July 31, adjusted for tires.
Our second quarter EBIT of $301 million was a 144% increase quarter over quarter and was driven by the incremental production from both a full quarter, but chisholm assets and close to a full quarter of the bighorn assets plus what we're obviously very strong commodity prices during the quarter.
Free cash flow for the second quarter was approximately $165 million, which represents a 362% increase compared to the first quarter.
We continue to earmark near term free cash flow for repayment of credit facility debt for the second quarter, our debt to annualized EBITDAX.
Was.
048 times, and we still expect to remain below that.
100 times that target debt to EBITDA excuse me debt to EBIT target at year end, including the.
Impact of the acquisition of the tightest assets.
From a production standpoint, we outperformed our second quarter guidance was 77125 barrels of oil equivalent per day, which is about 7% above the midpoint of our guidance. This was comprised of 37% oil, 34% natural gas and 29% natural gas liquids.
Oil production came in above guidance. It was also a bit less oily than we anticipate owing in part to gas and NGL volumes exceeding our forecast, but also to higher than expected downtime related to frac activity in midstream activity.
And midstream downtime, which disproportionately impacted our oil volumes relative to gas and Ngls. We have provided updated production guidance for the remainder of 2022 by quarter with our earnings release, which incorporates the expected near term closing of titles, but by year end, we expect to be pushing close to 100000 Boe per day with about 44% being oil.
Yes.
Total cash G&A for the quarter was $8 1 million compared to $6 5 billion in the first quarter as we added staff related to the acquisitions of both Chisholm and bighorn on a net basis given much greater production volumes cash G&A on a per Boe basis decreased by 43% to a company low $1.
$1 16 per BOE in the second quarter, which was compared to $2 three per BOE in the first quarter SG&A metric alone highlights the significant benefit of scale as we are now less than half of our 2021 average on a per BOE basis on the LOE front, we recorded <unk> of $7 26 in the quarter.
Which as Steve mentioned it was a really great result, and was below the bottom end of our full year guided range and candidly it was about 10% below how we had modeled it.
We are moderately increasing our cash G&A guidance for the year to account for Titus and also moderately increasing our <unk> guidance for the year, but we will still be working to beat on both of those.
Turning to the capital expenditure side, we spent $119 $5 million in the second quarter, we had some relatively lower levels of inflationary impact in the second quarter, but are seeing greater impacts currently and are forecasting continued cost pressures throughout the year.
Our earnings release, we provided updated guidance for the balance of the year, which accounts for the incremental activity on our base drilling program as we're drawing a little faster than expected on the Delaware side.
But also to account for the expected closing of Titus and the addition of the fifth rig and also to account for some inflationary pressures, we are guiding towards $300 million to $325 million of Capex in the second half, which would bring total capex for the year to $502 million to $527 million. This.
Thats an increase at the midpoint of a little under $90 million of this near $90 million about $40 million as it related to incremental drilling and completion activity from picking up a fifth rig.
And including at the Tightest acquisition and completions about $20 million of which is related to increment activity in our base drilling program and about $30 million of which is really related to inflationary impacts. So if you want to dissect a little bit.
What the cause of the increase is or what the driver for the increase of the 21% of that is 100%, 14% is driven by incremental activity and 7% is really to account for inflation on the <unk>.
Your front, we added hedges on about 50% of both oil and gas PDP from the tightest assets. The day. After we signed the tenant back Tightest acquisition agreement in June and that maintains our approximate hedge levels for the remainder of the year at around 50% for each of the oil and gas and around 30% in 2023 with that I'll turn it back over to Robert for closing comments.
Thanks, Mark as you all can see with the results from the quarter, both operationally and financially we have transformed the company quite dramatically over the past 18 months and the transformation of our stone continues with the anticipated closing of the tightness acquisition on a combined basis. This latest acquisition will bring our total proved developed PV tend to over $4 9 billion.
<unk>.
Based on a recent strip price, which is right around 50% larger than our current pro forma enterprise value. Our goal has always been to add accretive scale and high quality production and inventory without sacrificing our balance sheet and we continue to get that done as of today I would characterize <unk> as being in a better position to optimize our operation.
<unk> and generate substantial free cash flow than ever before and we believe it will only continue to get better with our ability to identify operational synergies and larger size, which we believe will enable us to better leverage purchasing power going forward. We believe there is a significant upside potential for continuous improvement.
Economic efficiencies in the future given our increased scale.
It's certainly been a busy and exciting past couple of years with the level of M&A that we've been able to complete and our management team continues to do an excellent job evaluating potential opportunities and we have really established a core competency and integrating these acquisitions, but I think it's important to note that the rate at which we've been completing acquisitions does.
Not make us any less thorough we continue our disciplined approach and put all potential acquisitions under the same technical and financial Microsoft microscope and.
And above all else, we prioritize shareholder value, we will continue to consider complementary assets that fit our stringent criteria and allow us to maintain the strength of our balance sheet. We are still in the early stages of evaluating a shareholder return program and expect that a possible shareholder return could be a 2023 event.
Yeah.
However, our near time near term priorities will be reducing that integrating the tightest assets and executing on our expanded drilling program.
So once we have the integration of tightest under our belt have a couple of quarters of operational and financial results behind us and have paid down a meaningful portion of our revolver debt, we will be in a better position to consider commencing a shareholder return program. We continue our focus on creating shareholder value through accretive acquisitions and organic.
Growing through our drilling program maintain maintaining a healthy balance sheet and delivering strong financial results.
Now operator with all that we're glad to take a few questions.
Thank you and at this time, we'll conduct a question and answer session to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue.
You May press the Star key followed by the number two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Our first question comes from Neal Dingmann with <unk> Securities. Please state your question.
Good morning, Robert and team. My first question is on this morning is on shareholder returns versus growth specifically now that you look at you guys have done a fantastic job growing scale without.
I had too much leverage and so I'm just wondering at this point how do you how do you all view.
Sort of upcoming free free cash flow allocation between further building scale and shareholder return and if the latter could you talk maybe about if I can get a twofer on this one could you would you think about buying shares back as Warburg getting those guys decided to sell it anytime soon thank you.
Yeah, Thanks Neal I.
I think we.
<unk> laid it out consistently over the past few quarters as we continue to gain scale. We will work on reducing that first we will look for other opportunities to grow the business through acquisitions or in this case as we identified this morning, expanding our drilling program by adding another rig.
Now that we've increased our acreage position in the Delaware Basin, and then as the M&A.
Opportunities either diminished or we can't get something done and we'd consider shareholder return.
We're still going through the different evaluation and options that are facing us.
We created quite a bit of good liquidity and trading volume here over the last 18 months with all of these deals.
And.
Buying back our shares as an alternative but.
Probably look at some other options for so.
That's kind of where we've ranked everything and still working on it give us a couple of quarters, let us execute on the tightest deal, let us pay down some more debt and we will come back to you.
Hopefully in 2023 with something that makes sense.
Activity there speaks for itself and then my second Robert just on sort of what I would call regional returns and specifically I know you mentioned released in just a second ago, but.
We're running three rigs in the Dell and two in the Midland and Im just wondering are you running or planning to run a bit hotter in the Dell because.
Just a higher well returns there or are there other drivers such as lease explorations or maybe asked it maybe I don't know maybe just easier to ask it another way.
You kind of would rank them or whatever where do you all see kind of it now post Titus where do you see your highest returns. Thank you.
Yes, there is no doubt that the Delaware Basin has great returns.
And Thats why we are increasing our capital expenditures in there and running three rigs there we still like our Midland Basin will continue to develop it obviously with running two rigs, we're still spending a big chunk of our capital program, there, but the returns and the acreage position just make it beneficial for us to spend more capital in the Delaware.
We do not have any <unk> or expiring lease issues.
We've got the permits not a issue of.
Freight of what's going to happen down the road, we're just going to execute on and continue to execute on plans that other operators.
Where the assets we've acquired we're just going to continue those operations and grow our grow our opportunity set in both those places, but the Delaware has has better returns Hey, Neel. This is mark here I would just chime in here. If you look on page seven of our Investor deck. It's the updated location count you can also.
See just looking at what's in Lea Eddy and then Titus.
That is the majority of our locations now so the three rigs in the Delaware and two rigs in the Midland is actually pretty proportionate to our location future.
Future inventory as well.
Thank you Mark Thanks, Thanks, Robert.
Our next.
She comes from.
Austin, all coined with Johnson Rice. Please state your question.
Good morning, Robert Marc Steven Scott Nice execution, this quarter as the Chisholm and big Horn integrations seem to be doing.
Well.
Yes, Thanks Austin.
My first question. It has to go with the fifth rig going to work later this quarter, which will be the third rig working in the Delaware.
Is this one of the rigs that came over from Titus and then also is this rig going to work on tightest assets to some assets or is it a mix of both.
Yes, tightest had three rigs running.
Those have all left the new Mexico portion of the assets don't know exactly where they all are.
We just know that one is coming back it may be from the.
Bullpen that tightest AD running it may come from somewhere else at this point I'm, just going to be silent on that.
Secondarily.
We're going to just spread those three rigs out across all of our new Mexico assets.
And as we develop our 'twenty three plan.
We may stack up more rigs in one area than another just to shorten cycle times, but right now it's going to be a combination.
I appreciate the color and then as a follow up.
On the tightest inventory, how many locations slot into the top quartile for stone.
I'd say more than half of them, probably I mean, the Delaware just in general have higher economic returns part of it is the net revenue interest dealing with federal acreage less royalty burdens and then.
Titus acreage right along the Stateline is premier Theres no doubt about it great rock so.
It's very attractive and that's why we wanted to expand our program as fast as we could.
I appreciate it that's all from me.
Thanks, a lot Austin.
Our next question comes from Jeffrey Campbell with Alliance Global Partners. Please state your question.
Good morning first of all congratulations on that side of the acquisition.
I wondered if you could compare and contrast.
Lea County acreage with Titus I'm, just trying to get a feel for the relative productivity D&C time cost.
If they are relatively similar or if theres a noteworthy differences.
If you can provide at this time.
Sure Jeffrey it's a great question.
Most of the tightest acreage and value and upside is along that Stateline trend, which is almost the center of the basin. So it's a little deeper so it will cost a little bit more to drill but higher returns. There just the rock quality is premier and maybe a couple more benches there than you what you see in most of that.
She is an acreage that we have our footprints to the north side of the Lee County.
And again, a little bit shallower up there.
But still competitive economically and money is going to go to both places.
Okay, Great that's helpful.
Just to kind of add up.
Water question.
And I'm not asking about return of capital to shareholders.
You've noted that you now have a large locations portfolio production is going to reach or get close to 100000 barrels a day after titus.
It doesn't seem like yesterday holes left itself. So I'm just wondering what are your aspirations for the company over the next 12 to 18 months from a structural point of view.
Great Great question.
And we get asked this quite frequently what's the target you want to get to 120 to 150000 BOE a day you want to have.
400000 acres, you ought to have some metric of market cap or enterprise value all those are great.
<unk>, but they don't drive necessarily shareholder value. So we're going to continue what we do and develop our asset base and continue to look for opportunities to increase scale.
Even though it's a rough M&A market at the moment there is still a lot of opportunities that will come.
To fruition over time, and it'll be a busy backend year and going into 2023 with M&A. So we will continue to participate in those processes, we may not be lucky or fortunate or.
To be able to buy anything, but our ability to take our asset base that we have today and just continue to execute on it and drive down costs like we've been able to.
It is what we're focused on doing and then we will continue to grow as the opportunities come around.
Is it Ain't broke don't fix it got it okay. Thank.
Thank you.
The playbook has worked pretty well so far thanks Jeffrey.
Our next question comes from Davis petrels with RBC capital markets. Please go ahead.
When you all thanks for the time my first question.
Recognizing you all don't have 'twenty three guidance out there at this point, but picking up that third rig in the Delaware.
What do you think kind of is the optimal activity pace for our company and Bridgestone size today is that keeping those five rigs running through next year or kind of any color you have it.
Yes, I think five rigs running through next year.
The capital will be a little bit higher obviously, because full time five rig lines is more than what we've guided to for this year, but it will be higher and that will keep production relatively flat to growing a little bit just depends where we drill and spend the money but.
And ownership and things like that in the wells, we drill but it's a good size for us.
We'll.
Try this out for a while and make sure that we can execute almost as well as we have executed up to this point or better than we've executed up to this point, but we'll try that and as we see opportunities to expand its hard to pick up services, but as we see opportunities to expand maybe we could add another rig.
This is a pretty good spot for us to have a maintenance sort of capital plan.
And that's probably what we're going to plan on for 2023 in the interim anyway.
Got it and I guess, just a quick follow up on that and kind of building out some of your prepared remarks, but this third rig am I correct that you are picking it up from another operator, and you'll have to give it back or is this something new.
Theoretically could hold through next year will you have to go to the market to find another rig.
No we don't have to give it back if we get this third rig.
As for the Delaware, So as we pick up this fifth rig and get it it'll be ours, and we will be able to keep it as long as it performs.
Got it good to hear and if I can sneak in one last one.
Operating cost guidance crept up a little bit in the back half I guess is that largely kind of workover related or kind of any moving factors. There that you can provide some color on that would be great.
Yes, we did a great job in the second quarter, reducing LOE below guidance and Steve and the operations guys did a fantastic job, maintaining but theres still some inflationary pressure there is no doubt that the workovers that we've done to date and those that we have scheduled.
Add a little bit to that and then the tightest acquisition as well every time, we do an acquisition Steve.
Steve starting in the hall.
And he's got to climb out of that hole by drop in LOE. So we've incorporated that for the back half of the year.
Got it makes sense appreciate the time.
Thanks, Dave.
Thanks, and just a reminder to ask a question press star one.
Our next question comes from Jeff J with Daniel Energy Partners. Please go ahead.
Hey, guys.
I was just kind of curious where the additional rig is there any additional frac capacity required with that addition.
Yes, we've got three rigs and Thats about what it takes to.
To engage a frac crew full time.
And so we see some opportunity too.
With tightest going away they were using some frac crews a couple of different ones with them going away, we see some opportunity maybe to slide some of that work for us in the future. So it doesn't seem like there is a.
A lag there that will cost us a whole lot of time.
Excellent and then just quickly I know once again 2023, nothing formal but we've heard a lot of comments from other e&ps about their efforts to sort of start locking up capacity or at least keep the crews that they like.
What are you what are you guys give us a little outline on what your efforts are there how that's progressing for you.
Sure.
I'll take a stab and then Steve can chime in here.
We've renegotiated or are in the process of renegotiating rig contracts. So we got those guys locked up they've obviously done a great job for us.
And the cost has creeped up a little bit as everybody expects, but.
It's manageable.
Got sand and.
And frac companies lined up for next year already the sands sort of committed contracted in the Frac company, we've been using Python in the Midland side for five plus years, now and they've done a great job and its a partnership its not.
Typical vendor relationship it's worked very well for us we feel pretty good about and then we've got casing ordered well in advance and knock on wood.
We have continued to keep our practices from the past of ordering casing well in advance and that served us well this year.
Excellent that's all for me thanks, guys.
Thanks, Jeff.
Thank you and there are no further questions at this time I'll turn the.
Floor back to Robert Anderson for closing remarks.
Yeah. Thanks, everybody. We appreciate your time and we'll talk to you next quarter or in the interim if you have questions give us a call. Thanks.
This concludes today's conference all parties may disconnect have a great day.