Q3 2022 Pembina Pipeline Corp Earnings Call
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Yeah.
Good morning, ladies and gentlemen, and welcome to the Pembina Pipeline Corporation 2022 third quarter results Conference call. At this time all lines are in listen only mode. Following the presentation, we'll conduct a question and answer session. If at any time, joining this call you require immediate assistance.
Please press star zero for the operator, this call's being recorded on Friday November 4th 2022, I would now like to turn the conference over to Cameron Goldade Chief Financial Officer. Please go ahead.
Thank you Colin and good morning, everyone.
Welcome to <unk> conference call and webcast to review highlights from the third quarter of 2022.
On the call today, we also have Scott Burrows, President and Chief Executive Officer.
Jared stroke, senior Vice President and Chief operating Officer.
And John <unk>, Senior Vice President external affairs, and Chief legal and sustainability officer.
I would like to remind you that some of the comments made today maybe forward looking in nature and are based on <unk> current expectations estimates judgments and projections.
Forward looking statements, we may express or imply today are subject to risks and uncertainties, which could cause actual results to differ materially from expectations. Further some of the information provided refers to non-GAAP measures.
To learn more about these forward looking statements and non-GAAP measures. Please see the company's management's discussion and analysis dated November three 2022 for the period ended September 32022, as well as the press release permanent issued yesterday, which are available online at <unk> Dot com and on both SEDAR and Edgar I will now turn things over to Scott to make some opening remarks.
Arcs.
Thanks, Ken in the third quarter permanent delivered strong financial results highlighted by adjusted EBITDA of nearly $1 billion.
As with the prior two quarters of this year the third quarter benefited primarily from rising volumes on key systems and strong performance within the marketing business. We benefited this quarter from a wider Chicago eco gas price differential and a wider condensate price differentials between Western Canada, and the U S. Gulf Coast, However, while commodity prices and <unk>.
Freshman differential certainly works in our favor overall the quarter was a great combination of volume driven results in the base business and tailwind in the marketing business. We are pleased that stronger than expected year to date results have allowed us to raise our 2022 guidance yet.
Full year adjusted EBITDA is now expected to be.
In the range of $3 625 to $3 $75 billion.
Along with strong financial results the quarter was punctuated by the closing of the transaction to create how many gas infrastructure or pgi with our partner KKR and the three 6% increase to 10 minutes common share monthly dividend. The integration of Pgi is going well and we look forward to realizing the benefits of this transaction, we see tremendous opportunity to enhance utilize.
Asian across Pgi asset base, and look forward to working with KKR to pursue future growth opportunities through this premier Western Canadian gas processing entity.
In fact, a key area of focus at Pembina over the next 12 to 24 months, we'll be growing cash flow by increasing utilization at all of our existing assets gas plants pipelines and fractionation facilities. This is highly accretive growth given the modest capital spending required.
As volumes grow permanent continues to have success signing new long term contracts. In addition to the previously disclosed commercial agreements recently signed with three leading northeast BC producers has successfully contracted incremental volumes on its conventional pipelines and fractionation facilities. The latter reflective of a broader trend of increase utilization.
Ization and tightening of capacity across the industry.
Further the re contracting success, we've had during the first half of 'twenty two on the alliance pipeline continued in the third quarter, albeit for smaller volumes.
And with rising activity in the Clearwater oil play we are exploring options to reactivate the nib to see pipeline and are in discussions with various customers regarding long term contractual commitments.
We also continued to progress our portfolio of growth projects, notably by completing construction and undertaking commissioning activities at the <unk> co Gen facility and advancing construction on our phase <unk> and phase nine peace pipeline expansion projects as well, we advanced development of Cedar LNG and an additional fractionator at our Red water complex and continue to work towards final invest.
Decisions on both projects finally, I would like to note that permanent recently released its latest sustainability report, which is available on our website. The report features that many accomplishments Pembina has had over the past two years, including those related to our greenhouse gas reduction target our progress on equity diversity and inclusion metrics and our transformational indigenous partnerships.
And notably the report enhanced our disclosure in key areas and better aligns us with leading ESG disclosure standards, namely.
And Tcf D I.
I'll now pass the call over to Kam to discuss in more detail the financial highlights for the third quarter. Thank you Scott.
As Scott noted, Panama reported quarterly adjusted EBITDA of $967 million.
Representing a $117 million or 14% increase over the same period in the prior year.
Relative to the prior period, the third quarter was positively impacted by stronger marketing results due to higher margins on crude oil and natural gas sales at a higher share of profit from our stable, partially offset by lower NGL Martin over NGL margins as a result of lower propane prices and higher input natural gas prices.
Likewise, a combination of higher volumes on the peace pipeline system and higher inflation adjusted tools.
Contribution from Alliance pipeline.
Higher contribution from the T G I assets.
Lower realized loss on commodity related derivatives.
These positive factors were partially offset by a lower contribution from Ruby pipeline and higher integrity costs.
Notably in our marketing business, we typically see a lower contribution in the third quarter due to the seasonality of our NGL business. However, this quarter permanent benefited from a favorable oil price environment and certain price differentials that lead to an outsized contribution from the crude oil marketing business, which more than offset the typical ngl's.
Seasonality.
Earnings for the third quarter were $1 8 billion.
Representing a $1 2 billion or 211% increase relative to the same period last year in.
In addition to the factors impacting adjusted EBITDA, excluding the impact of a lower contribution from Ruby.
Earnings in the third quarter were positively impacted by a $1 $1 billion gain on the Pgi transaction.
Lower income tax expense as a result of the Pgi transaction.
At a higher unrealized gain on commodity related derivatives related to NGL and crude oil marketing.
Facilities results were negatively impacted by lower share of profits from equity accounted investees due to higher depreciation interest expense and an unrealized loss on commodity related derivatives, partially offset by higher revenue all within pgi.
Further relative to the prior period lease in the third quarter were lower given the $350 million received from the termination of the arrangement agreement with inter pipeline in the third quarter of 2021, partially offset by the higher income tax on that payment.
Total volumes of 342 million barrels of oil equivalent per day in the third quarter were consistent with the same period last year.
A 1% decrease in pipeline volumes compared to the same period last year was largely driven by Ruby pipeline and an efficacy and Mitsui pipeline systems.
These factors were partially offset by higher volumes on the peace pipeline system Cochin pipeline eggs.
A 5% increase.
In facilities volumes relative to the same period last year was largely due to higher volumes at the red water complex and at younger due to less outage days during the third quarter of 2022.
It is worth noting that excluding the volume volume impact of contract expirations on the Nipissing on Mitsui pipeline system, and Ruby pipeline entering bankruptcy protection.
Third quarter volumes would have increased by approximately 5% over the same period in the prior year.
Scott noted in his opening remarks <unk> has raised its 2022 adjusted EBITDA guidance range to $3 65 to $3 $75 billion, which is $50 million higher than the previous guidance range and primarily reflects stronger year to date results.
We currently expect a 5% year over year increase in volumes on our conventional pipeline systems, demonstrating a level of growth in the western Canadian sedimentary basin that is exceeding the expectations at Pembina and I would expect the broader capital markets had entering sure.
The revised guidance also incorporates our expectation of a lower contribution from the marketing business in the fourth in the fourth quarter relative to the third quarter, given the outlook for lower commodity prices and narrow price differentials in the fourth quarter to date and implied by prevailing forward price curve.
M&A is generating substantial 2022 free cash flow, which is being allocated to strengthening the balance sheet and returning capital to shareholders.
During the third quarter, we raised the dividend by three 6%.
We repurchased $155 million of common shares toward our target of $350 million.
And we repaid $540 million of debt.
Additional incremental free cash flow generated in 2022, and 2023 is currently expected to be used to pay down additional debt further strengthening our balance sheet and preparing the company to fund future capital.
Finally, we announced yesterday, our intention to move from a monthly to a quarterly common share dividend payment in 2023 payments to be made in March June September and December of each year.
This change aligns come in as dividend practices with the vast majority of its peers and companies within the <unk> hundred 60.
Subject to approval by the board of directors. The monthly dividend is expected to end with the dividend to be declared in early December and paid on December 30th the first quarterly dividend is expected to be effective for the dividend to be paid in March 2023.
I'll now turn things back to Scott for some closing remarks.
Thanks, Ken.
<unk>, we are fortunate that our industry, leading midstream footprint affords us the opportunity to engage with most producers within the western Canadian sedimentary basin and therefore, we are uniquely positioned to gain valuable insight on industry dynamics. In addition to the current volume growth. We are seeing on many of our key system. We continue to observe significant positive momentum that we expect will.
<unk> results and producer sanctioning new development, leading to significant additional volume growth in the basin, we see several positive developments within the Montney, the Duvernay and Clearwater as examples and we continue to have a high degree of optimism regarding future basin activity and corresponding growth opportunities for pembina through three quarters of the year results have been outstanding and we are on track.
And to deliver another record financial year, returning capital to our shareholders, while pursuing opportunities that will benefit <unk> and its stakeholders in the coming years.
Thank you for joining us this morning.
Operator. Please go ahead and open up the line for questions.
Thank you, ladies and gentlemen, we'll now conduct the question and answer session. If at any time you'd like to ask a question. Please press Star then.
Followed by the number one on your telephone keypad, if you'd like to withdraw your question. Please press star followed by two if you're using a speaker phone. Please lift the handset before pressing any keys one moment for your first question.
Okay. Your first question comes from Jeremy Tonet from J P. Morgan Jeremy. Please go ahead.
Hey, this is Steve Mcgee on for Jeremy.
I guess just starting out on the on the guide you hit on it a little bit there but.
Just wanted to see if theres anything that we should think through on the other side on facilities and pipelines are there any.
Downtick, there or is it purely.
Just marketing going down.
Yeah. So let me provide some context first of all I'd say you know obviously, we raised the guide by $50 million on each end.
I think it's at this point our outlook is that we'd likely be trending towards the upper half of that guidance range.
When we look at the business you know first of all on the marketing segment I mean, I think you look across the commodity complex and pretty much all the spreads we are deeply in the money for Q3.
When you compare that to Q4 the curves across the board almost universally show compression, whether it be crude ngls or gas spreads.
On the NGL side, we were adding inventory during Q3 at levels that are obviously in excess of where the prevailing prices are today to the tune of.
20% to 30%.
And last year, we saw was an important quarter Q4 is for the full year results. So.
With all those factors in mind that was the biggest piece of it.
I'd say in the rest of the business you know there are some there are some puts and takes I mean, obviously, we've got the benefit in the fourth quarter of a full quarter of the pgi transaction in Pgi incremental contribution it's a bit of a tailwind.
We did have some some sort of more unique or.
Or a circumstantial wins in the pipeline business in Q3 that did did offer another tailwind there.
Our current outlook would see normalizing.
And when you roll all those factors together.
That's where we got to on the revised guidance.
Okay, great. Thanks, Sam.
Then just hopping over to the caps with Pgi now.
Fully in.
I guess the next thing to look for as the as the caps.
Just wanted to see progress on that.
What are you thinking about proceeds there.
Where do you see them going could this go more towards buyback authorization is it.
How are you thinking about about that aspect of it.
Yeah. Thanks, Steve.
I appreciate everyone is quite interested in the outcome of this.
What I'll say and stick pretty tightly too is that the cap sale is progressing.
And until there is a signed agreement we probably don't have much more to say on it.
Out of respect for the process and all parties involved.
But it is progressing along nicely.
Okay.
Thanks, guys I'll leave it.
Yes.
Okay.
Okay.
Hi, Colin is there more questions on the line.
Oh, I apologize sorry, I had a brief technical issue there, yes, we have another question from.
Rob Hope from Scotiabank, Rob. Please go ahead.
Good morning, everyone.
Question is on the the next Frac, our next potential frac at at Red water.
With.
As a stronger than expected volume outlook, some contraction and as well as your existing advantaged land opportunity there.
Else do you need to see before you want to sanction that project.
Good morning, Rob Jaret here.
Yes, great point that you just made we obviously do believe that that we obviously have a really competitive advantage here to provide our customers a great opt.
Opportunity to expand fractionation you mentioned the land.
We wouldn't require any incremental spec storage.
<unk> and let storage we've got the unit train capabilities is that high end contract.
Goodbye in Asia, and that obviously keeps our customers opex per unit extremely low across the entire complex and then it gives us significant flexibility around outage planning, having four fractionator.
But the significant storage being able to accommodate our customers' volume sale.
We do think that we haven't really good solution for our customers, but we need to see Robert we're just going through the process of firming up and extending some of the base contracts you may recall that RFS, two and three I think they were.
2016, 2017, so wanting to firm up a little bit of that base and pushed that out.
Get a little bit more tenure, there and then just where we're finding the capital as we speak so that's kind of where we're at right now, but those are kind of the two triggers let's get the capital online obviously theres been some inflationary pressures. So we're working really hard on to offset those by.
Different construction practice practices procurement contracting strategies et cetera.
Coming on that base.
Alright, thank you for that.
And then just on the volume outlook, Yes, you are.
Correct, the 5% volume outlook I would say has been a nice surprise in 2022, when you look into 2023 and what are the tailwind to the headwinds that youre seeing for further volume growth, we did see a little bit of pipeline constrained on the gas side there through the summer but.
Uh huh.
How long do you think you can get this above average volume growth to persist.
We are seeing that continued strong volume like it is kind of that slow and steady increase I think if you were to see some potentially.
Step changes would be and Janet could speak to this more if there's more clarity required but the blueberry River first nation resolution.
Obviously, we have some strong dedications in and around that area. So that could be a step change, but regardless of the step change Rob we're just.
<unk> seen that.
Strong.
Drilling performance and a lot of wells being drilled right. So it just it just keeps coming it's not any one organization our customer that's really focus it it seems to be mulch.
A multitude of all of our customers just continuing to do.
To grow at a fairly moderate pace.
That's it from me thank you.
Your next question comes from Robert.
Cat Taylor from CIBC capital markets. Please go ahead Robert.
Yeah, Hi, everyone just a.
Quick question I, just want to make sure I understand the motivation to cellular.
Interest in <unk> six.
And how does that really change your frac spread exposure.
Does it is there any interplay there with PVH for example.
They have less access to propend that otherwise could have been used.
For PVH facility other your own or a third party.
Good morning to get Great question. So this is a little bit complicated so just bear with me.
We had so what we did was created a win win solution with <unk> with our partner.
At the complex so we had.
Working interest capacity in.
Third party non operated facility that commercially it was extremely hard to access due to various reasons.
So what we did was we got together on a on a cashless transaction and we essentially.
Sold down our working interest ownership, but we in return we received a long term.
We'll call it a virtual processing agreement, so actually the physical volumes that that will be extracting liquids from across that virtual processing is.
Is it in excess of what we.
Typically would've processed across that asset.
So it's a long term deal and what this will also do is provide the owner now there are the sole owner of that entire site it'll allow them to optimize the facility.
To.
Drive efficiencies specifically around the operating cost side of the business. So it's not a straight up disposition of <unk>.
Working interest capacity in return we received incremental virtual capacity.
I hope that makes sense.
Yes, I think it does I'm just curious.
<unk>.
Is there a frac spread exposure increased as a result of this or is it effectively unchanged.
It's very slightly modestly increased.
Okay.
And then.
You know we've had news of.
Tax coming eventually on the.
On share buybacks.
Wondering how that impacts how youre looking at I know, it's early days, but how you might look at.
Returning.
Capital of the shareholders or other capital allocation priorities.
Yeah, Rob even Scott even before yesterday's announcement.
I think you heard on the call today and messages over the last couple of months that with where we're seeing rates going in with our optimism around potential future projects incremental free cash flow in the near term here is going to go towards debt repayment.
Both.
Obviously with the rising cost of debt, but also in preparation of hopefully a build out in 'twenty, three and 24 or so.
It's not like right now we are allocating significant capital in 2003, and 2004 to two share buybacks, where that that may be an issue. So for now it's a bit of a moot point for permanent obviously that could that could change, but for now I think our allocation priorities towards debt repayment.
Okay got it thank you.
Okay.
Yeah.
Your next question comes from Ben Pham from BMO.
Please go ahead.
Alright, Thank you and good morning.
Potential caps.
<unk> proceeds.
Are you actually able to our plan to take out.
The proceeds into parameter for that or is that all staying at PEGI level.
The proceeds would would likely be dividend it out to the partners.
Okay got it and then.
On the Frac.
Expansion opportunity.
Or is there something to think about in terms of.
Restrictions on market share and that that Frac business, our competition act to that.
Pat.
As there are restrictions on that market share just level of ownership.
This is Ed is that Newbuild with third parties.
Not really signing up for this capacity. So we don't see any issues with that at all.
Okay. So it's not a situation do you had a couple of parties running fracs in the province, and then there are certain percent market shares and other restrictions.
Yes.
Okay, and then maybe lastly on on Cedar LNG.
Im wondering you have there is some noise around us competing <unk>.
LNG export project pivot north with North of I think cliff.
Jason first nation challenges is that that's something you're hearing with your project in particular that Jason first nations around area.
No we're not hearing anything of that sort.
Okay, great. Okay. Thank you.
Your next question comes from Linda as a <unk> from TD Securities Linda. Please go ahead.
Thank you I'm wondering if you could just help us understand a little bit in this dynamic environment when youre thinking about your dividend policy and balancing.
Growth sustainable growth and the dividend versus.
Retaining.
Free cash flows to finance projects, how do you.
Balance that and can you give us a sense of over the next couple of years as you're.
Looking at some of the opportunities what your thoughts are on the on the guardrails around that.
Linda the approach to dividends has been relatively consistent I think over the past few years and it's always obviously been anchored around the fee based business.
So if you use 2022 for a more.
As an example, obviously we saw outperformance in the marketing business throughout the year.
<unk>.
And really that cash flow as we said was redirected towards both.
Share buybacks and debt reduction what we've looked for a previously for consistent dividend growth as is the reliance on the on the fee based.
Growth in the business.
I think we obviously have been through an interesting time over the past two or three years here.
And obviously, we'll be out more formally with.
With our guidance in December .
Okay.
The environment is quite constructive obviously and as you can hear from the comments that Sharon scar, making on some of the project opportunities that we have that we do have ample fee based opportunities in the portfolio, which should continue to support.
That trend.
The teachers.
And maybe just also and I don't know if youre able to provide us today or maybe when you provide guidance.
It be possible to get <unk>.
Aggregate a sense of your views on your aggregate direct commodity price exposure.
And any key sensitivities recognizing that they might be in perfect that would be very helpful.
Yes, I think I think we'll certainly provide that information for 2023 in December in our budget release, our guidance release.
For now I think we've provided that information back in the 2022 guidance release for this year.
And I think the way we think about it is.
We see the marketing business contains our commodity exposed cash flow.
The pipelines in the facilities business is our fee based businesses and so you know that.
That would be a fair way to think about the delineation.
Thank you Kim.
Your last question comes from Robert Kwan from RBC. Robert Please go ahead.
Great. Thank you good morning.
Just starting on volumes you noted that.
Ex some of the runoff that that volumes were up 5% year over year in Q3, So I'm just wondering.
Okay has that trend continued into Q4, but where our volumes sitting on your core systems.
The minimum take or pay levels.
Hey, Rob, Yes, I would say that you know it obviously varies it varies by business.
If you sort of look at.
Sort of looked at the Frac business to start with maybe backing up from there obviously the frac business is running very high utilization and you'll recall that the fracs that we built in the 2016, 17 timeframe, where essentially 100% take or pay so.
We're right at running right up against those.
On the conventional business.
It does it does vary.
According to segment, but if you look at the capacity.
Which we've talked about in.
Really at the Fox Creek region, we're running right around the take or pay levels.
Have been running just just shy of them and as we've seen sort of a obviously gerets comments to continued and modest growth.
Bumping right around those and I think you can see that is.
In some of the disclosure around our take or pay recognition, particularly in this past quarter.
If you back up from there and then start to look at the gas business I would say, it's a similar story generally speaking across the board varies from facility to facility, but.
With with those facilities that have a take or pay component to them, which would be the legacy <unk>.
<unk> facilities are now sitting in Pgi, again, where were running right around take or pay levels in those businesses and those assets are in aggregate.
Got it so in short it sounds like where a lot of the volumes are growing in the basin are kind of now on the cost base starting to.
So you got a little bit more directly in the results that a fair characterization.
I think that's fair.
Okay.
Just turning to guidance.
I know you said that you are training to the top half of the range, but you got $100 million top to bottom, which is pretty wide with one quarter to go I'm. Just wondering is that just being conservative or are you seeing some benefit in the quarter.
Whether thats being less hedged or what have you.
Thats being more volatile than usual.
I think it's a fair comment, especially as we sit here on November 4th.
Keep in mind, we we haven't we haven't seen.
Our October results just yet.
We're a few days away from that and we're just recognizing that you know obviously, we saw where Q4 was four <unk> last year in 2021, and how you know obviously.
A sharp change in the price environment in Q4 really led to outperformance in that year I think we just recognize that clearly that there is a lot of volatility in a lot of external factors influencing markets right now across the board both.
Commodities currencies interest rates and so.
It's a fair comment that the range could be perceived as a little bit wide.
With a quarter to go here I think we're just reflecting that.
The wild World right now and we.
We just want.
Want to make sure that.
We are appropriately capturing that.
Got it you mentioned currency, but just within the commodities is there any particular spread that you would point to you that your medicine.
Sorry about that where you might have more exposure or.
Maybe the range of outcomes is wider.
Okay.
I think it's just it's a it's a bunch of different things I mean, obviously.
You sort of mentioned it in a prior comment but if you look at say for example, the.
The ACO to Chicago spread.
That that was a shooting the lights out really in Q3.
And if you look at where it is today I mean, I think the current forward curve has it roughly half of what it was in Q3 similarly on.
The suite on this on the sweet crude environment.
Those spreads.
Went from areas, where there was.
More opportunities more optionality nowadays, they've certainly narrowed into into Q4, obviously with the heavy spreads still staying wide.
It would suggest that those those opportunities would remain but that's not really much of our business. It's more indicative and then clearly just back to the NGL price environment for a second to my earlier comment we've been we've been putting inventory into the caverns throughout Q2, and Q3 at levels, which are 20% to 30% higher than.
We're seeing in Q4 so.
Just.
A bunch of those factors together just lead us to create some yes, some words to that guidance range.
Got it okay. Thanks very much.
We do have another question. This is from Patrick Kenny of Dash.
National Bank financial Patrick Please go ahead.
Hey, good morning, guys.
Back to your comments around prioritizing debt repayment into next year.
We've seen some of your peers sell down a minority stake in certain mature assets, which although it might be slightly dilutive financially.
It would.
It would be very accretive to your social license as an operator.
And then again raise some cash for paying off maturing debt. So I'm just wondering as you look ahead at the strategy for 2023 and beyond.
How important you think it is to execute minority interest transactions with.
Various stakeholders across your legacy portfolio of assets.
A key part.
The overall balance.
Thanks Pat.
Starting off we're pretty proud of that to indigenous partnerships that we have today and.
And we think we're working really well with our partners and looking to build and grow those partnerships. So we feel like we've made good progress on that front as it relates to asset sell downs I mean, thats always a tool in the toolbox and something that we consider whether it's.
Outright dispositions or minority sell down so.
Things on the docket right now, but certainly it's something that we run in our scenario analysis and talk about internally, but I do think as we sit today.
We're pretty happy with where the balance sheet is.
So there is no need to do anything like that.
But theres always the opportunity if there's financial benefits, our intangibles that come along with it so on the drawing board, but nothing thats, an active negotiations or discussions.
Got it and then I guess as a segue to the <unk> pipeline.
Apologies, if I missed it but.
Would you be looking to bring in a partner for that system as well if you do reactivate.
And maybe you can just remind us.
I guess back in the day with the revenue or our EBITDA profile looked like on efficacy.
But the capital requirements might.
It looks like to reactivate the system going forward.
So great Great question, Pat So right now we're just in the in the throes of executing some preliminary work to reactivate that pipeline.
We're fairly bullish on the Clearwater, obviously everyone's seen the results, but we expect to have that pipeline.
<unk> service, you know kind of like Q3 of next year.
Do require some capital we're just working through that right now just some integrity dig some normal course.
And then some different options once that pipeline gets into Edmonton.
Currently we have not explored.
The reactivation and with our partner.
Working with this partner as you were asked but that's.
That's not to say that.
No Adam strategy or in strategy, it's just focused on the execution and getting it back online here right now.
And then that's great Pat around around the EBITDA I think it was around roughly $32 million to $35 million of EBITDA.
Full run rate prior to.
Shutting down.
And Directionally.
I guess, if it does get reactivated.
Cash flows above or below historical contributions too early to say.
I mean, I think ultimately our goal would be to get back there and to exceed it but it's not going to happen in year, one it'll it'll be a ramp.
Okay perfect. That's great guys. Thank you.
There are no further questions at this time I will turn it back to the salt burrows for closing remarks.
Thank you everybody. Thanks for taking the time on a Friday to listen to our call. We're really proud of the results and just before I sign off.
To all of their staff on the phone and to everybody that we're involved in the quarterly results is just a fantastic quarter. So thanks, everyone.
Ladies and gentlemen. This concludes your conference call. We thank you for participating and ask that you. Please disconnect your lines.