Q3 2022 NorthWestern Corp Earnings Call
Board meeting was the presentation by PUC Chair, Chris Nelson and sure Nelson.
Minded us of our responsibility to focus on the reliability of our system and sure Nelson is very very clearly focused as are his colleagues on reliability and affordability. It's a message that would be also delivered very eloquently.
The ribbon cutting for the BOP lens are generating station. So we were really honored and appreciated the team made time for us.
And what I would say a couple of things about.
The ongoing renewal of our leadership with both the board and the executive level at the board level as probably most of you know Kent Larson.
As a new member of our board of directors.
Have you probably know cancer is a key leader capex sell until his retirement and one of the key contributors to excels.
Growth sustainable growth over a number of years. So Canada is already providing great contributions to the board of director at the executive team. Our General Counsel, who also leads our regulatory affairs efforts.
Heather Graeme has announced her retirement.
In early January along with the other.
We'll be among other things pursuing her.
Passion for triathlon, where she is world ranked.
There has been a great leader for the company key in all of our legal regulatory compliance works and also a key contributor to our corporate strategy.
Because heather is as good as she is.
We will be elevating to people.
To take care of place Shannon Jaime coming in as General Counsel, and Shannon, saying, becoming vice president for regulation.
In addition, Curt Pohl, our vice President for distribution has already moved into a new position focused on.
Business development and Jason Merkle has.
<unk> taken over the role of distribution Vice President so.
Ryan is going to be leading it.
Great team with veterans and some new faces, but very much aligned with the <unk>.
Direction that Brian and the board and the executive team will be taking the company over the next few years.
Turning to financial results.
Net income was for the quarter was $27 4 million 47, a diluted diluted EPS non-GAAP EPS was $24 three.
$1 42.
Diluted EPS, our expected long term EPS growth rate is 3% to 6% off the 2020 base.
As you know we filed a Montana rate review on August eight this was <unk>.
Seven months into the year as opposed to.
The nine months cadence that were typically on very impressively.
Montana Public Service Commission issued.
An interim order on October .
On October on October one so basically two months.
After the filing.
It was a unanimous order based on a staff recommendation.
Order will.
Significantly mitigate regulatory lag and under recovery of our purchase power costs and well certainly reinforced our credit metrics and then that will also.
Provide the retroactive date for a final order couple of other notable items in the rate case, then Brian is going to come back and talk to this in.
Much more detail first of all.
Some key procedural steps the commission issued a procedural order in.
We're past the period during which the application could be deemed inadequate.
Which could have.
Triggered.
A refiling or modification to the filing we're doing some.
I think interesting.
Very constructive things in this case, including Brian kicked off.
<unk>.
Filing process.
Very well attended.
Webinar.
Cindy Bang.
Leading a series of.
Technical discussions on key points.
The case is obviously driven by recovering are substantial.
Investments in capital electric and gas infrastructure since our last filings.
Cost recovery of flow through Boston.
A set of about four important policy.
Our resourcing and Brian is going to be providing more detail on that but we're very very pleased.
To be where we are right now, yes, I appreciate that.
The professionalism of the Montana Commission and staff, we file of our South Dakota integrated resource plan on September six.
<unk> two <unk>.
Implementation of the actions under that plan.
We are on.
On track for our $582 million capital plan for this year.
The board has voted 863 per share dividend payable on December 30 of this year. So first I will turn it over to Crystal and Crystal will hand, it off to Brian .
Thank you Bob.
Slide four and discuss a bit further details of our financial results and then hand it over to Brian here. So far in the third quarter of 2022, you'll see net income at $27 4 million as Bob said that 40000 tons tonnage loaded EPS basis and that compares to the third quarter of 2021 net income of $35 2 million or <unk>.
The eight on agility of data slide.
Slide five lays out a bit as a significant drivers of that performance with our partner with a branch from the 68 cents for the quarter and on a GAAP basis in 2021.
<unk> 47 on a GAAP basis 42 on a non-GAAP basis in 2022 with that Youll see utility margin $3 2 million or <unk> <unk> after tax detriment there in a quarter, where we had favorable weather I'll speak to that in a little bit more detail on the next slide.
The next two columns, you'll see or the impact of our operating costs, which are in line with our expectations for the year. When we laid out our guidance for the year, we talked about a sustainable operating cost structure. Certainly we are seeing pressures there, but in line with our expectations a manageable field <unk> on those items are $4 1 million on a pretax basis.
Youll see us interest rate pressures, which I think everyone's experiencing at <unk> of impact to the quarter from that perspective, and then of course solution from the share count.
Equity issuance that we announced and transacted last year in November on a forward basis, the impact of that dilution. This year funding in the amount of investment capital as Bob mentioned on track for another record year capital.
Investment in 2022.
And then on a.
GAAP basis 47, essentially the adjusted we're reducing five on.
On a non-GAAP basis, driven by weather utility margin is detailed on slide six and a bit more detail on that Q3 margin impact overall of $3 2 million detriment when you consider that versus prior period and what impacts net income from.
From a utility margin standpoint.
First impact there is transmission margins being lower revenue.
Driven by lower Formula rate, there and also volume that is in line with what we expected to see on the transmission side, but importantly, a bit outside of what we expected to see as the next column, which is your peak Cam impact as a reminder, that the supply cost mechanism, where we recover our costs and our Montana jurisdiction.
And you'll see that that's $1 3 million versus the prior period, but importantly, $4 million to the quarter of negative impact on an absolute basis, we certainly saw higher market prices overall, but certainly price spiking think at the end of August early September we thought over $1000 a megawatt hour prices on the market to <unk>.
Deliver to our customers and we see that when we see that sort of exposure certainly provides a headwind for us at the margin line basis.
I would also mentioned on the <unk>.
Electric retail volumes $2 1 million of favorable there and while that certainly.
Solid performance of that piece, you'll see that we are.
Show favorable weather for $2 million versus normal for the quarter. So that's what we're backing out on a non-GAAP basis. So when you only the $2 1 million of favorable versus the prior we would expect to see a bit better performance. There the retail volume line and certainly including commercial loads, we're seeing lower commercial volumes for the quarter on 2% customer growth.
And a bit of warmer weather, so a bit of headwinds there and how we're seeing the commercial load shape up for Q3, all of that leading to $224 1 million of utility margin.
Falling to net income and again, that's $3 $2 million lower than the prior period.
Slide seven shows you the look of our GAAP to non-GAAP adjustments.
So for Q3, the only non-GAAP adjustment, we have as weather and again I just spoke to the impact there of about $27 4 million on a GAAP basis, adjusting out $4 2 million of favorable weather versus normal.
$3 1 million on an after tax basis.
Resulting in $24 3 million on a non-GAAP earnings basis, and that compares with $33 6 million in the prior quarter and again Youll see the prior quarter, we had very warm weather in Q3 of 2022 broadly across our service territory, but we also had very warm weather in Q3 of 21 that you see for.
2 million pre tax.
Favorable weather, we've adjusted out versus $3 4 million in the prior period.
With that I would move you to cash flows and impact there on slide eight while operating cash flow show significant improvement of $87 7 million from the prior year year to date, you'll see that <unk> actually decreased by $15 6 million.
Definitely driven by the lower net income the other thing I would mention there is that while we are collecting significant costs from the prior period. The winter storm year in gas costs that are still coming through and a significant amount of <unk> under collection from prior period that we are collecting currently you also see the significant impact this year of continued high.
Market electric supply cost and then what we're seeing is higher.
Cost to fill storage in the off season and higher natural gas prices.
All of that is impacting cash flows here in the near term and certainly we will be rolling through and impacting customer built and how we think about that in the future. So with that I will transition a bit to your expectations for closing out the.
The quarter and looking to the full year 'twenty two results on slide nine we are narrowing our guidance range. As you. All know we started with the guidance range of $3 20 to $3 40, or 20 range and we are nearing that to 15% range of $3 20 to $3 35.
While results in a quarter.
Certainly were lower than we expected they were impacted by headwinds.
The high level of market supply pricing in Montana, certainly that <unk> impact that I mentioned and talking about utility margin for the quarter. It's the gift that keeps on giving because while it also impacts the margin line. It also drives higher unrecovered supply path.
With pressure on our revolver balance and of course, then ultimately the interest rates on that and then also timing of the draw on our forward equity.
So with that I will say will helps us out of that is and the most significant item for the quarter other than the thing Bob last earnings call for you all are asking very intriguing and interesting questions.
B that we filed a rate review in Montana, obviously thats critical to how we think about the growth of the business going forward and resetting to a reasonable cost structure and recovering the amount of investment that serving customers currently.
<unk> as Bob mentioned held a substantive work session and authorized an interim rates for both the base rate fees antique Cam, thus youll see our updated guidance assumptions here.
To reflect those impacts and with that I will turn it over to Brian . Thanks.
Thanks Crystal on page 10, we speak to capital investment.
Historically over the last five years, we invested $1 7 billion as you can see from under $300 million in 2017 to over 402021, that's a compounded annual growth rate of 12%.
Two as you saw even a much larger capital plan, primarily as we continue to build up Yellowstone County.
582 million capital plan and that those remain on track you may recall, some time ago with.
At the beginning of I would say the supply chain crisis and rising cost. We suggested that our plan is likely to come on track due to two variables. One we do expect higher costs, but you also expect that some delays in projects and we definitely have seen both during the year, but net net our plan remains on track.
In essence of that $2 4 billion that we're looking to invest over the next five years, including in 2022, a substantial amount of that is for our delivery business. Thank T&D.
I think to modernize the grid and an increased capacity and also on the supply side. We obviously continue to invest in capacity, but also resources to integrate continued renewables added.
Our business.
Is this a sustainable level of Capex is expected to drive an annualized rate based growth of approximately 4% to 5%.
The best way, we think about it from financing.
All of this capital spend is really to achieve a 14% to 15% <unk> to debt at the end of the year. So capital continues.
To grow the company and we need to invest in critical resources.
Going forward basis.
And when that occurs on slide 11.
Periodically you need to come in for a rate case in Montana. It's been some time in 2015 since the last gas case from a test your perspective in 2017 since the last time from the electric perspective, and during that time, we've invested over $1 billion in both.
Combined electric and gas business in Montana, and 49% of this rate case is the recovery of the cost of capital and depreciation of that over $1 billion investment.
<unk>, 42% of the request for both the total electric and natural gas increase is driven by flow through costs, including the market power purchases and property taxes and even with the increases here.
We would acknowledge it's a pretty big increase for both electric and gas customers, but it's been a long time coming for many many years, even with those increases.
They will be in line with inflation over that time period.
Since we've last filed a rate case.
Moving forward on page 12.
As Bob mentioned earlier on the call in late September we received approval effective October one.
Interim rates to go into effect and again to acknowledge the good work by the commission to acknowledge our issue of not having sufficient cash flow to manage our business and the importance of interim rates that interim rate allowed us to collect base electric rates of $29 4 million.
Improved where we stand from a PJM perspective by $61 1 million.
Then base natural gas rates of $1 7 million in terms of what we asked for and what we received we are pretty happy with we received approximately 80% of the interim request.
On the electric side of approximately 60% on the gas side and equally important is in terms of a good outcome there is that.
October 1st once final rates are approved that will be the retroactive date or the effective date of an outcome from the final rate case, so thats very very helpful from a procedural schedule standpoint.
Next key date is 12 19.
That's the early Christmas President of receiving intervenor testimony.
And then into early March we will have our rebuttal testimony and cross intervenor testimony and then in early April the hearing will actually commence.
Moving to slide 13 on the supply side of our business and looking forward. We continue on our construction that Yellowstone County that construction began back in April of this year we.
We've invested just under $100 million of date of the $275 million project in our current schedule anticipates commercial operation during 2024.
And from a resource plan perspective, we've already filed our South Dakota plan.
Filed that in September of 2022, and an identified 43 megawatts from our retire and replace candidates.
With a potential for a competitive solicitation during the $23 2004 time periods.
In Montana, we expect to file by the end of the year.
Our IRR if you will to.
Followed by an all source competitive solicitation request for capacity available at the latest.
<unk> 2026 last thing I'd, just say on this page is upper right. We're so pleased that not only to get the Bob Ramsey stations built on time on budget and in advance of the supply chain issues and rising costs, but even more importantly, a that is the plan has been dispatched even more than our expectations.
So it's added capacity $24 seven power that offsets the intermittency, it's doing exactly what it should do help us move forward with our.
Needs from a supply perspective.
And lastly, it's it's.
It's my pleasure and honor.
To acknowledge Bob and I will do that on behalf of the executive team and the more than 500 employees at this company to.
To acknowledge I'd be remiss not to acknowledge during his tenure what he has helped this company achieved under his watch.
Through the investment of critical energy infrastructure dedicated to serve our customers. We've tripled the size of this business and the value of this business. We've done that through leaves his leadership, we've invested more than $1 billion in clean energy resources that would put us approximately 60% of our electricity will provide his car.
<unk> it certainly is better than industry average.
$1 billion of energy resources, primarily that was our 456 megawatt Montana hydro system and I can't imagine how it would be serving our customers today and we didn't own those resources plus 130 131 megawatts of owned wind.
In our total system and also three gas plants that were critical to provide the 'twenty four several reliability that we need to serve our customers. In addition to that I guess I'd add in.
In addition to that it's also reduced the customers our customers exposure to volatile regional energy markets that we participate in every day.
We also invested during his tenure here over $1 billion in our T&D infrastructure to modernize it and increase the reliability and the flexibility of that system.
Bob was that having us do have long before people were talking about hardening their systems.
What I'd also add from my perspective is our safety culture at when Bob arrived wasn't as good as it should have been and during his tenure.
Group vastly we're sending our employees home just the way they came in the morning, and we're happy to see that our safety has improved vastly under his leadership.
Leadership in the tone of the top you've said and speaking of tone at the top I think the most important thing Bob is doing this company has set a culture of high integrity, and respect and a family like environment and with that of basketball.
Brian Thank you very much I can't imagine.
Anyone I would've rather work with when you are a group of people.
I will reserve my rebuttal until after it.
Sure. Thank you Brian .
Questions.
And I would just remind you for joining us by computer and would like to ask a question. Please signal your intent by using either raise the hand button found at the bottom of your toolbar.
Can also simultaneously press Alt and why on a PC or option why on a map to raise your hand. Please make sure. Your microphone is on muted if you are in the queue.
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We will take our first question from the line of Shar Peraza at Guggenheim.
Sure can you hear us.
Can you hear me guys sure Ken Alright promised you can wait to technological here.
Got it.
As we're thinking about next year I mean, obviously, you're not issuing 23 guidance right now on I think it would be helpful. Maybe you can just give us a sense on the 'twenty two headwinds you just highlighted in your prepared remarks, as we look to bridge into 'twenty three like the lower usage interest interest rates, peaking.
Recovery I guess is the <unk> enough to offset sort of these 22 impacts as we look into next year.
Could we see some drag with these items into 'twenty three.
Sure. It's crystal a couple of things with that regard, but one that <unk> is a huge driver when you think about the impact of PJM on the quarter.
And as I said it has multiple impacts on our financial statements at <unk>.
Resetting that base and getting something that we can actually work with I think it's critical to how we think about our performance going forward and that not being a drag. It certainly has caused under earning breath in the past and it's something that we're working with the commission on resetting and moving forward on sorry, I would say that certainly.
Key piece of how the <unk> will impact us and probably it's us and everybody else in an inflationary cost environment and we will have to manage that but I would see strong growth we've talked about the need to take this year as a REIT that essentially and investing for the future in the sense of the equity that we issued.
So Phil I think a net income increase this year, but your question is while we continue to grow the business on absolutely and I think the biggest platform to that is certainly getting back to earning our returns from our Montana basis in the geography is the most critical piece of that and I Couldnt probably.
Understate the importance oversight of Wunderlich.
Getting that rate review filed bringing that investment in front of the commission and moving forward quickly with interim rates as we talked about and getting to a reasonable outcome there.
Got it so you don't just with some of the moving pieces you don't.
Depending on where rates shakeout, we shouldnt assume the recent can continue into 'twenty three.
That's the key takeaway I guess, Matt.
I would just say it this way us and everybody else will be dealing with the interest rate pressure. So I don't think thats going to be determined if the determination between us and others and we will manage that along with the outcome from the rate review that certainly what I would expect to see and what we talked about from a 'twenty two guidance is taking this year.
To get a solid rate case filed that gives us a sustainable amount of cost capture there and the platform from growth off of that.
Got it Okay. That's helpful. And then how should we sort of think about the potential outcomes of the appeal you have right now with what's in front of us.
The Supreme Court, Montana Supreme Court regarding the pre approval is there a scenario where.
They could retroactively be applied tomorrow, or how would win the appeal impact sort of your plans going forward.
Recall we.
Decided not to use pre approval.
For the Yellowstone stations, because we were concerned because the plant in service as quickly as possible.
To move ahead with construction before we got caught on the wrong side of it.
The inflationary environment and supply chain challenges so.
<unk>.
Supreme Court decision, one way or the other we will have no effect on that particular resource.
Well go beyond that.
Okay.
As you I'm sure recall, we had also identified a 50 megawatt batter.
Battery project.
Out of the RFP that was going to be.
Our purchase power arrangements.
We had used we have.
Proceeded with a pre approval application for that based on the district Court decision invalidating the statute.
Commission closed that docket.
Unfortunately that project.
Not going ahead.
Got it.
Great and then just one last one just on Colstrip I mean, obviously your preferences for sort of fast ramping generation like the rice units, but at the same time, obviously, we've seen some major cost increases versus the <unk>.
Plan for instance went to Aberdeen getting canceled last year.
If you were to acquire more of Colstrip than is currently plan I guess, how would the cost of that capacity comparable versus what youre seeing in the market right now for you Bill. Thank you.
Yeah.
That's a hypothetical question I assume you're asking there.
We continue to lean heavily on colstrip, its a valuable resource to us and will be for some time.
Obviously, depending what the cost of acquiring that resource.
I would tell you our biggest used for that capacity is in that peak day of course, when we're seeing you know.
Increased demand and higher prices close to would be extremely helpful to us not technology, even more of it than we currently have would be helpful.
Got it.
Okay, great. Thanks, guys I appreciate it thank.
Thank you thanks Shar.
We will take our second call from the line that engine for $3 77.
91, four area code.
Your microphone should be on muted.
Yeah.
Alright, we're going to skip that one and maybe if you want to get back in the queue.
We will take our next call from Sophie Karp at Keybanc.
Hi.
So I think they're ago gotcha.
Good afternoon.
I know, where you got how the system works.
Thanks for taking my question.
So I was just curious to hear your thoughts on how you could incorporate I guess the colstrip situation in your Montana, Montana IRB.
So is this would you need a resolution of that.
One way or the other before you can move forward with the process or would there be a scenario analysis in the IOP that could contemplate various outcomes. So any color would be appreciated.
They only scenarios associated with Colstrip is here are.
Closure dates.
Don't have full control over.
When these units are shut down at this point in time with our 30% interest in unit four.
Obviously, we'd like to have the plant open as long as we are.
As long as our depreciable period.
And in essence to provide service to our customers, but we also acknowledge that there is a possibility that shut down sooner and so we'll likely to have scenarios showing.
At least one alternative data from a shutdown perspective.
Okay.
And then maybe on the crime Theyre looking into 'twenty, two 'twenty, three Reits and as a follow up on lineup for thinking that Shar was.
Asking you.
So you have sort of narrowed tightening your guidance with when you're pushing you to even though you've got the interim rates due to the all of the offsetting factors that you've listed.
Do you expect those headwinds to persist or abate I guess going into 'twenty. When you say as you contemplate.
The outcome of the rate case here like how much of in the I guess, the drag would that be to the new rates impact.
How should we think about it.
We expect full again and what I would just point you to hear that we walked through the narrowing of our guidance and I alluded to that the multiple.
The impact of <unk>, both the 10% sharing and what we've seen from <unk>.
$4 million to the quarter on a just a statement of impact there also driving we filed our annual tracker.
Shouldn't use the word tracker with all of our <unk> filing its not a tracker.
And that showed over $50 million of deferred costs on our balance sheet that I'll remind you. There is no carrying cost for that mechanism currently and rates and obviously as you know.
The capital used to be almost three it isn't anymore and so we're seeing those headlines and then that causes us to.
Pull down that board, a little sooner all that being said to say a reset in the pecan base. As we have proposed that has multiple elements about the design et cetera that JRC proposal would help alleviate that multi factor <unk>.
Implications of that pecan is its impacting our headwinds today, so I would tell you.
The <unk> is critical to offsetting.
Only equal Blagging our returns.
Uh huh.
Alright. Thanks.
That's all from me.
So.
It does look like the line of four 377 has on muted now so I'll try that one again.
Okay.
This is one of them.
Alright very good.
I don't know one day at a time here.
Thank you very much.
If I could ask just a little bit the anniversary the questions in the last couple of how do you guys figure out O&M.
Operating budget inflation going into 'twenty, three any way to think about that and put some context around I guess you guys are early in the earning season.
So I was just wondering how you guys are kind of.
Tackling that conversation it also looking at offset here given that.
This will be a full year in terms of offsetting the headwinds.
And first of all before Crystal answers you don't you can actually put your name in there somewhere we can take your questions even regardless of the number just so you know that.
Okay.
Got it.
I'm happy to pass it on to critical data.
So.
It's really a bit of your costs. Your question on operating costs I'll walk you back to when we laid out our 22 brands one of the things that we said when I have to say that the Permian at the net income line that impacts the dilution driving our lower earnings for this year was a sustainable amount of cost. So I will certainly tell you that there's headwinds there, but they are manageable.
<unk> six cents for the quarter, certainly manageable and in line with what our expectations are.
As we get to 'twenty three part of your question is for US and everybody else is some of this latent inflation and price impacts that I think havent flow through that will be continuing to manage but I certainly think the way. The operating costs are today, we're able to do that the other thing I would just highlight and I think you guys know that we benchmark very well already on an O&M.
Basis, it's part of the the case were making our DRC that we manage the business efficiently I will continue to do so but my other side of that is I don't think we have a.
Materially large cuts to be made there in the center.
How you manage other impacts, but again the operating policy impacts of the quarter in line with our expectation and that piece of our as we've narrowed our guidance range, you'll see we didn't adjust any of the operating cost reductions.
A little footnote to your question.
Rates that come out of the case, whether it's apparel, a downer or <unk> are retroactive to October one, but again that was one of the several reasons.
Getting the interim implemented as efficiently as the commission was able to do is valuable and I think so the other way of saying that Julian is when we do give you 23 guidance. The key piece. There is our new rates will have been in effect for the whole year.
Got it excellent well, thank you again, and if I can bring it back on a real time.
Can we talk a little bit about the transmission.
<unk>.
Thought that things would have been a little bit better just given the volumes and the volatility in the quarter in the power markets and then related can you talk a little bit more about the commercial volumes and what your expectations are going forward I saw the commentary in the release on third quarter or does that hold for fourth quarter versus plan and then more importantly, again as you think about 'twenty three I know, we're all asking for the same thing.
Okay.
You guys don't mind, all both of those pieces, but one thing we've seen obviously.
<unk> talked about Montana for example, certainly a growth in new connects overall, including commercial but it really doesn't seem that a lot of the commercial sector is back to.
Fully staffed businesses, so at least part of what's going on.
It seems to be the continued challenges in the labor market.
Sure Dave.
Find your question into two pieces of where we're not giving 'twenty three guidance, but that's how I hear more about what he sees on the transmission side. Your question was a good one which is hey last year prices were high markets are volatile you had really great transmission revenues and margin impact there this year that $4 $7 million lower end and we sat inline with our XP.
Patient the piece I would tell you that our formula rate. There is there is a credit for short term sales and so part of what we knew is that rate will come down a bit even though their solid rate base growth.
So that's part of it both price and volume so I would think about it largely in the sense of maybe around half price driving that $4 seven in the quarter and then the other happy we did see slightly less volumes so demand to transmit over rely on our lines and theres a whole lot of things that go into that.
Recall last year, there were some super dry conditions I don't think quite as bad this year. So all of that we watch that market hopefully, but again that decline was something we did have an expectation for your question on the commercial side and I would just point you to if you look at our 10-Q and the commercial volumes of things that will pop out to you is really warm weather both last year and this year.
<unk> this year even warmer.
And more customer count so we've seen solid commercial growth, but youll see a slight decline in volumes. So that's the piece of you would think on it 2% customer growth above that warmer weather that you would see at <unk>.
<unk> third part there, which obviously, we're in a barbell where it does the fixed.
Fixed price world and a volumetric revenue world.
So our fixed off world and so when we see that sort of a piece there over 80.
86000 customers. So they are not homogenous, but one of the things that Bob alluded to there is that.
You have certainly continued to see labor and staffing challenges with a lot of those businesses.
All that being said to say one quarter does not make a trend so while we're watching that carefully and it certainly won't be talking about that in Q4, we continue to see strong broadly commercial loads and we'll update you on that next quarter and how we're thinking about it.
Excellent well, thank you team and Bob Best of luck, it's been a real pleasure. Thank you as well.
Thanks Julien.
Hey, Karen.
And originally and with that we have exhausted our cubes so Bob Okay.
Well, we will get to see a number of you either in the March 5th.
Or maybe in New York.
In December .
As soon as Brian was finished with.
His eulogy and that was.
Not everybody gets to be alive, when the when the eulogy those rigs. So I really appreciate that appreciate that and that was even better than open basket, but anyway Brian .
Went to grab a box of tissues.
Not unusual after we finish these meetings that we view the box of tissue.
Okay.
Really really appreciated so other is going to be biking, swimming and running us.
Into the Sunset in January .
And.
Hopefully pursuing a number of them.
Other things, including considered into spending more time with my wife.
Amazon's tissues.
What I would say is the last not quite fortunate in a half year or so.
An incredible privilege to work with.
Very best group of people.
Become good good trends.
Doing the most important work in places that are really really special.
I had been.
Lucky Yeah. It is.
<unk> enjoyed getting to.
No a number of you and.
If you about that.
The industry trends and try to.
I'll answer all of your really interesting program question. So.
Again, that's been a real.
Privilege for me and thanks to all of you for your long term support of this very very special company.
Hum.
Thank you for joining us and the Marines are webcast to a close thank you.