Q4 2022 Spire Inc Earnings Call

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Good morning, and welcome to the spire, Inc. 2022 year end conference call all participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by to your house. After today's presentation, there will be an opportunity to ask questions.

I'll ask a question you May press Star then one on a touchtone phone to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Scott Dudley. Please go ahead.

Good morning, and welcome to our fiscal 'twenty, two fourth quarter and full year earnings call.

Issued our earnings release this morning, and you may access it on our website aspire energy dot com under newsroom.

There's also a slide presentation that accompanies our webcast and you may download that either from the webcast site or from our website, which can be found under investors and then events and presentations.

Before we begin let me cover our safe Harbor statement and use of non-GAAP earnings measures.

Today's call, including responses to your questions may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Although our forward looking statements are based on reasonable assumptions there are various uncertainties and risk factors that may cause future performance or results to be different than those anticipated. These.

These risks and uncertainties are outlined in our quarterly and annual filings with the SEC.

In our comments, we'll be discussing net economic earnings, which is a non-GAAP measure used by management when evaluating our performance and results of operations.

An explanation and reconciliation of this measure to its GAAP counterpart is contained in both our news release and slide presentation.

On our call today is Suzanne <unk>, President and Chief Executive Officer, Steve.

Steve Lindsey Executive Vice President and Chief operating Officer.

And Steve Rasche, Executive Vice President and CFO .

Also in the room with US today is Scott Carter President of spire, Missouri.

And Adam Woodard, Vice President and Treasurer, and CFO up our gas utilities.

That I will turn the call over to Suzanne.

Thank you Scott and good morning, everyone. It is our pleasure to speak with you today about fires performance for the fiscal year, just completed to update you on recent developments and to share our outlook for the future.

Last year, we remain squarely focused on our long term strategic priorities and commitments, while being mindful of the vital role of our natural gas businesses play in it.

Alright, and sustainable energy future physical.

Fiscal 2022 it wasn't your challenges and the opportunities we collectively to happen both with equal energy and as we close the year, we delivered for our customers, while achieving strong operating performance.

We reported earnings for the year, a $3 86 per share, reflecting the strong performance in our midstream and marketing businesses.

And at our gas utilities, we met the headwinds of weather and a lower rate of return in Missouri.

With a path for improvement in fiscal 2023.

We continue the robust investment in our gas utilities, the upgrade infrastructure drive new businesses and advance our technology.

Had to further gains and safety system integrity, environmental performance and overall service experience with a 1.7 million homes and businesses, we proudly serve.

We successfully met important challenges head on including working to settle the contested issues in our Missouri rate with you.

Along with other parties have fallen proposed agreement this fall.

And subject to Missouri Commission review and approval, but we are pleased by the prospect for a timely resolution to the case.

At the same time, we dealt with the challenges of higher natural gas cost and inflationary pressures.

We continue to work hard to manage all of our costs and minimize their impact on our customer bills. In fact part of the Missouri rate case settlement includes a commitment to enhance programs that provide support and financial assistance to customers.

While it is our job to manage through challenges for our customers I want to thank our 3600 employees for stepping up this year and remaining focused on ensuring people have safe and reliable natural gas delivered with great service every day, while supporting our communities.

In fiscal 'twenty. Two we also had success in advancing our midstream businesses, we remain focused on securing a permanent FERC operating certificate for spire STL pipeline and we began the expansion project at spire storage. These are both great natural gas businesses that serve their customers and region.

As we step forward into fiscal 'twenty to 'twenty three we are further increasing our capital investment plan and expanding our time horizon to 10 years. This long term commitment to capital deployment ensures our continued growth, while delivering innovation and safe reliable and sustainable energy for decades to come.

Recognizing our performance in 2020, two as well as confidence in our long term gross prospects. Our board of directors recently increased buyers common dividend by five 1% to an annualized rate of $2 88 per share. This is the 20th consecutive year of dividend increases, which we have continuous.

We paid 1946 now I'll pass the call to Steve Lindsey.

Thank you Suzanne let me begin with an update on our very recent progress we've made on our Missouri rate review.

Remember foreign spire, Missouri, and other parties to the case, most notably the Missouri Public Service Commission staff and the office of public Counsel filed a full unanimous stipulation and agreement as Suzanne mentioned this was a proposed settlement of all issues in the case.

It was our desire to settle the case in a timely manner and we were on path to do just that.

I only represents a somewhat all contested issues without a determination of each component that goes into the calculation of new rates.

Elements of the pending settlement include additional annual revenues of $78 million pre.

Pre tax interest rate of return of 8.25%.

Resolution of the overheads issue from the last case with all costs capitalized or expense beginning October one as confirmed in our cost study approved earlier in the year and all deferred amounts as of September 30 are being recovered in rates.

<unk> funding by spire, Missouri for various customer assistance programs with expanded eligibility.

Our Missouri as requested rates to be effective on December 26, right before the beginning of 2023 winter season.

Given that there is a proposed settlement the procedural schedule for the rate review has been suspended however, Missouri Public Service Commission has scheduled and on the record public hearing on the settlement. This Friday.

The service Commission could take up the matter.

One of the two upcoming agenda conferences later this month.

Our filings both rates and recovery in natural gas costs were very sensitive to the impact how our utility bills have on our customers.

Understand that any increase the bills can be concerning and we wanted to everything we can to help.

Example, we requested that the additional natural gas costs, we incurred during winter storm Yuri.

Brett over three years to minimize the impact on our Missouri customers.

In Alabama, we share the cost savings, we achieve under the cost control measure, 50% going back to the customer we're collecting our benefit over a five year period again to reduce the impact on customers' bills.

For all of 'twenty FY 'twenty, two excuse me FY 'twenty, two and help connect customers who are struggling in more than $27 million in federal state and spire energy assistance funding.

Already this month, we're expanding eligibility requirements to our dollar health program, providing an additional funds to assist even more customers.

Let me provide some other updates starting with Missouri as far as the Missouri Public Service Commission approved a 10 and a half million dollar increase in Israel effective October 21, bringing our annualized interest of $19 million.

In Alabama spire, Alabama inspire golf each filed their 2023 budgets the annual rate setting process under the rate stabilization and equalization mechanism or RSC.

Despite the new rates will be effective in early December .

You know our spire STL pipeline continues to operate under a temporary certificate all the FERC considers approval of a new permanent certificate.

A court order reman.

There was no formal schedule, we believe the process will likely continue into 2023.

Well, firstly issued a positive environmental impact statement last month, which clears the potential hold up in the recertification process.

Turning to an update on our capital expenditures in.

Fiscal 2022 we invested $552 million with almost all of that spend going into our gas utilities.

But nearly $280 million towards pipeline replacement are investing $114 million in new business. We also continued our investment in technology, including about $55 million for the further rollout of ultrasonic meters.

Midstream investment this year included $12 million for spire storage expansion in the fourth quarter.

For FY 'twenty three our capital investment is expected to total $700 million, reflecting higher gas utility spend as well as the substantial increase in capex for midstream to $150 million, mostly related to the storage expansion project.

The gas utility investment this year infrastructure upgrades account for the lion's share of our capital spend as we continue to focus on reliability and system integrity of our distribution network.

Also plan to continue our robust investment in new business.

Overall, we expect the majority of our utility spend to be recovered with minimal lag reflected in earnings we'll keep investing in innovation and technology.

Our investments continue to drive further advancements in operating performance and sustainability as.

As you can see our key metrics for resilience safety and system integrity continue to show improving trend over the last five years.

Boy entry rates damage rates and links on our system all hit record lows at the same time, we're continuing our progress in reducing methane emissions from our gas utility operations.

These reductions support our commitment to becoming a carbon neutral company by mid century.

We hit our target for fiscal 'twenty, one to reduce emissions about 46% from 2005 levels and we expect to see a further reduction for 2022.

I'll turn it over to Steve Rasche, you for our financial review and update Steve.

Thanks, Steve Good morning, everyone and thank you for joining US today, let's start with a brief review of results and then I'll provide some updates as we look into 2023 and beyond.

For our fiscal fourth quarter, we reported a seasonal loss of $31 million, which was $4 million or seven cents per share higher than last year on a run rate basis. As you may recall, we had several significant events that flow through the income statement last year, including for the quarter.

Defense from Winter storm urea and.

And adjustments for the 2021, Missouri rate order.

It makes the comparison of as reported results for last year, a bit difficult to understand.

For the analysis here, we excluded those items to provide a better comparison and we've included a full reconciliation in the appendix.

Looking at our businesses on a run rate basis.

Our gas utilities typically have a seasonal wash this quarter due to reduced usage in the warmer days of summer for the quarter segment loss of $38 million or nearly $20 million greater than last year.

As we discussed earlier this year, but 'twenty, one, Missouri rate order change the cadence of our recovery shifting a greater share to our winter heating season and out of our fiscal third and fourth quarters.

One our results also reflect lower margins in Alabama due to the spread of the cost control measure over a multiple year period as Steve Lindsey discussed a few minutes ago.

Gas marketing goes well positioned in the southeast this quarter and was able to capture value from a transportation and inventory positions earnings at roughly $12 million compared to a run rate loss last year.

Slide 10 summarizes other key variances for the quarter.

Hitting on a couple of the highlights operation and maintenance expenses net of the pension re class were up roughly 1% as higher marketing and utility costs were offset by lower corporate spend.

Interest expense was also higher reflecting higher short term debt levels tied to the commodity cost and higher short term interest rates.

Let me provide commentary briefly on our full year fiscal year 'twenty two results.

Overall, our net economic earnings were $3 86 per share down 32 cents from last year's run rate as lower gas utility earnings were partially offset by stronger marketing results.

As a reminder, the gas utility results reflect the headwinds first a lower rate of return in Missouri from the 21 rate order.

And second warmer weather in Alabama that was not fully mitigated as we discussed last spring.

That in part by higher off system sales in the second half of the year.

Our marketings earnings in the current year of $27 million includes a $6 $2 million benefit from the favorable settlement of your commercial disputes.

The remaining earnings roughly equal to last year.

Turning to our outlook.

We remain confident in our long term per share growth target rates of 5% to 7% driven by our rate base growth.

And speaking of rate base growth, we have updated and extended our capital spend plan from a full 10 years, reflecting the long term nature of our utility investment plan.

This updated plan totaling $7 billion supports our safety reliability and sustainability goals and is covered by good regulatory recovery mechanisms.

Our plan for 'twenty, three as Steve mentioned, the $700 million, including our expansion and investment in spire storage.

We've also updated our financing guidance, reflecting the spire storage expansion.

And steadily decreasing level of equity required beyond 2023.

We also updated our debt forecast, including operating company debt and refinancing activity to support ongoing investments.

Two quick additional financing out there.

First spire, Alabama inspire golf issued a total of $205 million of long term debt last month.

And secondly, our liquidity is well positioned heading into the winter heating season.

Turning to fiscal year 'twenty, three operating forecast the summary here and provide some context on the headwinds and tailwind we see as we enter our new fiscal year.

You hit on a few points.

Pending regulatory recovery, we expect to benefit from new rates in all jurisdictions and recovery of overheads in Missouri.

Do you have plans in place to address higher commodity cost inflation overall.

And we expect that our cost will increase net of our mitigation efforts by approximately 4% next year.

We are well positioned from an interest rate perspective for long term rates given our ongoing hedging program.

As noted earlier, we do anticipate higher short term borrowing cost as we work through this period of higher deferred gas cost a portion of which is recovered through rates.

Finally, I would also remind you that we anticipate the spire storage expansion to have a dilutive impact on our earnings per share during its development period in fiscal year, 'twenty, three and 'twenty four.

Our 2023, we estimate that impact to be nine cents per share, reflecting both interest on borrowings and the equity issued in advance of the project completion in late fiscal 2024.

Our project financing plan targets, a 50 50 cap structure.

And it is our intent to separately disclose this impact each quarter and excluded from our net economic earnings calculations during the development period.

Those are a few of the items we focus on.

Heading into 2023.

Much more to say on guidance after we complete the regulatory process in Missouri.

In summary, we enter fiscal year 'twenty three in a strong position operationally and financially.

We're focused on delivering for our customers communities investors and all stakeholders and we look forward to updating you on our progress as the year progresses.

Let me turn it back over to you Suzanne.

Thank you Steve in closing we delivered another successful year, we managed to a number of challenges and have emerged in fiscal 2023 poised to grow and deliver even stronger overall performance for our customers communities and investors.

Look forward to updating you and others on our progress and successes. Thank you for your continued interest and investment in spire. We're now ready to take your questions. Thank you.

We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys.

Any time your question has been addressed and you would like to withdraw your question. Please press Star then two.

At this time, we will pause momentarily to assemble our roster.

Yeah.

Yeah.

Today's first question comes from Richard Sunderland with J P. Morgan. Please go ahead.

Hi, good morning, and thank you for the time today.

I appreciate the disclosures on the 'twenty to 'twenty three outlook slide wanted to dig in a little bit more to the commentary around inflation higher interest rates higher gas prices. If I heard you correctly. There was a 4% cost increase you anticipate net of mitigation efforts.

This is inclusive of all of those headwinds and across all the businesses, maybe if you could parse that a little bit more into the component pieces and how you expect that impact the bottom line is.

Is it fair to assume that 4%.

The drag you're anticipating on the Bottomline that'd be helpful. Thank you.

Good morning, Richard that there was about five questions buried in there. So let me see if I can if I can get them all straight and I'm looking at Adam across the table he'll help out to yeah. As we looked at as we looked at everything we have ongoing and let's keep it all in perspective.

We generally report reduced O&M year on year or its up sub inflation, including this year as you can look at the at the material and in the earnings.

Presentation, and then we have ongoing investment and plans in place technology.

And process improvement in order to continue to stay well below inflation as we look at the current year.

We've actually been able to offset most of those early headwinds that us and all companies are dealing with in the market.

We look forward, we do see some headwinds that we won't be able to offset when we look at our utility which is really where our focus was and looking at the impact of inflation.

That number is 4% give or take half a percent. It really we're not that precise but I figured I'd just give you a marker to point to and it's really driven by cost that we can't control.

We know have a pretty good feel where our employee line is going to go in terms of salary costs. It's really the other things that tend to be firing a lot faster and that is a net number of the things that you are already doing and will continue to do in order to drive down cost Adam what else did you want to add to that.

Okay.

Rich it's a good question I would agree.

We that isn't that is a kind of a net number for us and.

You know there are other puts and takes there.

As we've chatted about before but.

I think 4% on an O&M basis, they are obviously talking about interest.

There is.

Obviously rising interest rates. So I think we've seen most of the rise there on a short term side.

And we feel pretty good about where we sit from a long term interest rate standpoint.

Understood that's very helpful.

And maybe switching gears to the storage side and I'll try to keep this below five questions and my question here, but the nine cent drag for 23, how do you see that trending in 44, you're going to appreciate this will be stripped out of operating earnings and as your 2025 outlook changed at all for storage in licensing some of these other factors.

As a matter of fact, our outlook on storage hasn't changed one bit from when we made the announcement in July and Youre right.

We've disclosed the drag for the current year at nine cents and that's really interest cost on the borrowing side and then the dilution on the equity side in order to keep our cap structure at the spot that makes the most sense for that project.

When you get into 'twenty, four we will actually see some of the capacity being used and useful through that winter of 'twenty.

'twenty 'twenty three 'twenty four.

And so we should expect and you should expect that dilution to decrease a little bit because we're starting to see some margin pull through it's really when you get to 25. After the project is complete and all of the capacity is available that all of that all of the financing costs are more than offset and we're getting the return in the mid teens that we talk.

About earlier for that project and I would add and Steve mentioned it in his prepared remarks, we are on track both from a cost and a timing perspective with the project. We're early in the project, but we're wrapping up the early prep work that that we could do before the winter season hit us and in Wyoming, and we're very pleased with their progress.

Understood understood and maybe one last one from me just the rate case settlement, obviously, great progress there I'm still a little work to be done in terms of a final Commission order.

Any thoughts on kind of the backdrop feeding into that process your ability to reach a settlement now.

How do you feel about where you've gotten in your outlook here in the states you are coming off this disagreement.

Yeah Rich this is Scott Carter, we Oh.

As Suzanne mentioned, we're happy to be at this point of the process. We have filed the case resolved obviously many of the maybe the deficiencies coming out of the last case and the timely resolution is important to us.

Getting all parties on board and having a unanimous stipulation that the commission can consider it as a positive for us.

And we expect the commission to take that up and take seriously you know all of the parties interests that got settled through that through that collaboration through that negotiation process. So we feel like we're well positioned from that standpoint.

Fixing the overheads issue that was created you know calling out of some of the cost of capital issues and updating the capital we've deployed since the previous case, so it puts us at a pretty solid footing.

A place from which to grow and continue to operate.

The next question comes from Christopher Jaffray with Mizuho Securities. Please go ahead.

Hi, everyone. Thanks for taking my question.

Just wondering as far as your expectations were.

Bad debt expense and.

It seems like comparing your PGA for the upcoming winter from two years ago bills are up pretty significantly just kind of wondering how youre thinking about that.

And maybe how much relief do you expect once the year re portion of the bills low off.

And I guess, if you could confirm that.

This is the second heating season, the better the first of the three.

Right Chris.

Thanks for the question. This is this is Adam.

On the under PGA side, we did just file in Missouri and updated PGA increase that that will be approximately a 9% increase on bill's we've I think.

Have done a good job trying to keep that debt to a minimum and and this.

The supply team is a really has done a great job.

Working through our hedge program and as such so.

Yeah, we we we as Steve had mentioned in his remarks, we really have leaned into the.

The customer impact portion of this and continue to do so, but we're pleased to keep that.

Keep that last increase on a more limited basis.

So and then similarly, not too long a little bit a little bit longer ago. We have had some steady increases in Alabama as well that's about that's in the mid teens or so.

On a year over year basis, but again.

Continue to look to keep that under control.

I would add to that Chris This is Scott I would add to that just.

The highlights we gave and where we're putting additional funding towards those.

Low income assistance programs, we are in the second year of trying to work through the year. He calls some of the discounting that we're carrying over there, but as we work through this case, we're really focused on those customer impacts in those mostly impacted at the at the.

The more challenging income levels and so we believe those tools will be helpful. In helping manage through keeping customers all in keeping them served and help us helping us manage bad debt a bit.

Got it thanks, and then maybe just following up on the rate case settlement.

I don't think there are many details as far as the authorized ROE cap structure are there any kind of.

Puts and takes away from it like maybe as far as the resolution on the short term debt issue, where should we expect to hear more from it after Friday when the when the case kind of goes before the commission.

Yeah, Chris This is Scott.

It is a black box so inherently it doesn't spell out a lot of those elements we.

We did we did include a cost of capital that would be used for distress cases going forward.

Think of that as a proxy for the cost of capital again, it's not spelled out in the case, but we.

We feel like we've made.

Large progress on capital structure short term debt issue.

<unk> financing relative to permanent capitalization and so we feel like we're getting back in a good place the number gets us where in the range, we need to be and then it establishes a reasonable return compared to other returns in the state that we've seen in other cases that they were working against and deliver all the interest.

<unk> going forward.

Got it thanks, Rob.

The next question is from Matt Davis with Cowen. Please go ahead.

Hey, guys can you hear me okay.

Sure.

Morning, So just.

I got two maybe three questions can.

Can you just walk through did I hear you correctly that the dilution from the storage investment will not be included in guidance is that correct.

We obviously have provided.

The impact so in the absolute sense.

We've given you the number but we are going to get excluded from net economic earnings, but will keep out of light shining on that because that's our commitment to them to you and the other investors is to make sure that we we outlined what the impacts are but also what the benefits are once we get through the development.

Okay and.

As we think about rolling forward now you've given some of the puts and takes going into 'twenty three how should we think about the roll forward of your 5% to 7% long term earnings growth commitment.

And where that should be.

Based from.

It's a great question, Matt and we'll address that when we launch our guidance and we know that's one of the one of the boxes that we need to check let us get through them.

The Missouri regulatory process, and then we'll be able to be a bit more forthcoming in and what our expectations are going forward.

Okay, and then just lastly in terms of on the cost pressure going into 2023.

What would should we imply from that that your earned ROE.

Should be a little weaker in 'twenty three given the 4% year on year cost or do you still expect to earn your allowed return.

Yeah.

Wait we plan to enter in a dynamic environment and 4% is a little bit higher cost than we've seen in the past and it's a lot higher than we actually deliver because we have long term plans to keep that down. So it does present, a little bit of a drag.

Anybody want to qualify that surprising because we know that that is that's pretty much where the.

Where all businesses are right now we wanted to be forthcoming with everybody about the challenges that we see.

Going forward, but we will continue to work hard to offset as much of that as we possibly can.

Okay, and I know I said, two or three but I'm going to ask one more in terms of the equity that you need do you think that you can do this via an ATM is it mean is it manageable enough that you wouldn't need it.

Additional discrete issuance.

Yes, that's right.

Okay, Alright, thank you very much.

Thanks, Matt.

Again, if you have a question. Please press Star then one.

Our next question comes from Selman <unk> with Stifel. Please go ahead.

Thank you good morning.

Just wanted to go back to the Capex and 7 billion specifically.

Specifically on slide 12, you've got $5 50 at the utility I guess, that's up from 528 or so this year. So that's 4%, but then as I look into fiscal year 'twenty. Four you have an accelerating up 11% to 610 and then it grows gradually from there can you maybe just talk about what you're seeing in 'twenty four.

Is it takes your utility up there.

Right.

Part of it is that the cadence of underlying projects as you know we have ongoing projects that are that the upgrade of the system. But then you have chunky projects on top of that that tend to fall in discrete time periods and there are a couple of chunky prospect projects, when we get to fiscal year 'twenty four.

So that's really the explanation, we're also ramping up a little bit more of the ultrasonic meters as we get into 'twenty. Four. So there. There is a combination of factors. We have obviously very detailed plans because we we need to be planning 612, 18 months in advance to make sure that we have the right supplies and materials in order to meet our goal.

And this is a stabilized thanks for the question and I think it's the continued capital plan that we have relative to our infrastructure upgrades or new business, which runs in the 15% range.

Steve mentioned, a few of the innovation projects such as ultrasonic meters, but then I think we really started to pivot to other parts of our system such as transmission integrity reliability system improvements pressure improvements and so really as you think about kind of your delta in your temp plan. This is just the next priority in terms of the way we're thinking about long term investment. So it's really I think it's a bill.

<unk> of where we've come to this point relative to for the most part has been infrastructure upgrades on bare steel and cast iron. It's it's the next transition for us.

Got you and then can you just.

Can you remind us or any way to quantify how much of this is going to fall under his first as you think.

Well and again that that's kind of where we start to pivot. The interest primarily covers as you know our bare steel and cast iron replacement and Missouri and so those are almost very specific to those type of infrastructure upgrades I think overtime, we will look for opportunities to really take that type of philosophy and look at it all of your integrity management programs and it goes.

Spent some time with the commission, saying these are the priorities, let's help let's help understand and lay out a longer term plan for these because in some cases are more about system reliability and being able to make sure that that we have pressure and we have gas during the coldest times of the year is not necessarily just replacing old and an aging pipes. So so it's a combination of quite a few things again is for us is.

Civic and and we continue to have that on both sides of the state here in Missouri.

We will look for a potential mechanism down the road, but those are those will be early discussions and again I think it's more around the long term planning for your system and being able to sit down and prioritize.

Another way to kind of look at it if you step back and look at the totality of our capital spend and how much of that is being recovered with minimal regulatory lag or is driving new business. It's about 75%. So it's in the same category that we've been operating in for a number of years.

Okay and then.

I guess, the one time there was some consideration of potentially looking at building another pipe on the west side of the state and so should I just assume that's completely off the table or was this next 10 years.

I know this is Scott Carter, we continue to look at it as a following winter storm here.

Obviously, our Kansas City region West side of the state was more impacted than the east and largely because we had S. T L and placed a brought us a diversity of fuel supply.

From those more impacted regions from actually from less impacted regions.

We look at that we're looking at everything all of our supply portfolio for <unk>.

Missouri West and that includes a number of things from pipelines the storage even the movement of where the population centers are in the load centers. It was is necessitating us taking a good hard look at that so we're tying that together with kind of our infrastructure replacement make sure. We're building a backbone that's going to support that.

That future growth and future needs and demands while also providing a safety and environmental benefit in the short run.

But then we're looking upstream from that and so that's still all in blight and analysis, so more to come as we land what our needs are there.

Alright, Thank you very much.

Excellent. Thank you.

Again, if you have a question. Please press Star then one.

Seeing no more questions in the queue. This concludes our question and answer session I would like to turn the conference back over to Scott Dudley for closing remarks.

Thank you everyone for joining us we will be around throughout the day today for any follow ups and we look forward to that.

Goodbye.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

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Yeah.