Q4 2022 Frontera Energy Corp Earnings Call
Good day, ladies and gentlemen, my name is Sergio.
Your conference operator today welcome to something I hear your support for it.
Operating and financial results going forward.
All lines are currently on mute to prevent any background noise.
I'd like to remind you that this conference call is being recorded today I saw somebody walked through audio webcast on the company website.
Following the speakers remarks, there will be a tax questions analysts and investors I reminded that any additional questions can be directed to the company.
Hi, art upfront there are energy T a.
This call contains forward looking information with many of our people to kind of integrate the loss.
Linked to activities events or developments to company belief or expect.
Sorry.
Or made of course in the future forward looking information reflects our current expectations assumptions and beliefs of the company based upon information currently I believe well do.
Do it.
Although the company believes are reasonable forward looking information is not guarantee of future performance.
Forward looking information is subject to a number of risks and uncertainties that may cause the actor where suddenly company to the affirmatively from those discussed in the forward looking information.
The company's MD&A for the quarter ended December 31st 222 at the company's annual information for data March 1st two into 'twenty three.
All other documents filed from time to time with Securities favorite dairy authorities. These strike the risks uncertainties assumptions and other factors that can influence actual results.
Any forward.
Information and speak only as of eight one which Eddie Smith and.
The company disclaims any intent or obligation to update any forward looking information, except as required by law.
I would like to turn the call over to me.
I really Alba chairman of the board for their energy. Please go ahead.
Yeah.
Thank you operator, good morning, and welcome to <unk> fourth quarter and year end 2022 earnings call.
Joining me on today's call.
Orlando Cabrera.
<unk>, Chief Executive Officer and.
And Renee Bucharest.
So instead of Chief Financial Officer.
Also available to answer questions at the end of the call we have.
Victor Vega, VP field development reservoir management and exploration Alejandro <unk>.
General Counsel, Ivan Lendl VP operations.
But yes, it'll BP marketing logistics and business sustainability. Thank.
Thank you for joining us.
2022 was a strong financial and operational year for pentair.
The company delivered average daily production of 41382, B O E per day at <unk>.
9% increase compared to 2021 production at risk and in line with its increased and tightened our 2022 production guidance.
The company increased full year operating EBITDA by 70%.
$641 9 million within the company's 90 to $100 per barrel in the 2022 guidance range.
The company finished the year with a total cash position of approximately.
<unk> three <unk>.
$13 million, including restricted cash of $23 million.
So there remains committed to enhancing shareholder returns.
In 2022, the company returned over $91 million to shareholders through its <unk> and <unk> programs.
Since 2018.
Has returned more than $300 million to shareholders through dividends and share buybacks, while maintaining strong credit metrics.
In addition, since 2017, the company has resolved more than $2 $6 billion in contingent liabilities and commitments.
Permanently eliminating legacy issues.
The company's focus on unlocking shareholder value from each upstream, Colombia, and Ecuador business.
<unk> alone and growing midstream business and its potentially transformational offshore exploration program in Guyana.
In 2022.
For data advanced the company's exciting development, a lower risk is duration portfolio in Colombia, and Ecuador, and as tonnage investments in additional water handling facilities at Keefer CPC.
He has supported the company's 50000 barrels per day production target.
Also in 2022 from Dennis strengthened as midstream portfolio with the acquisition of the remaining 40% interest in pipeline investments limited.
Now 35% of the LDL pipeline with.
Each generated over $215 million in EBITDA in 2022.
2019, the company has increased its interesting point about yes by approximately 60% to 99, 8%.
So there is interest in <unk> pipeline and the importance of IEA creates a unique standalone midstream business, which provides shareholders with significant upside potential.
In Guyana, the joint venture discovered light oil and condensate at capital one well.
Offshore Guyana and has successfully drilled the first prospective geologic horizons in Delta administration at the way one well.
The joint venture has shaken inspirational willing to current and block Chevron, which is performing several days ahead of schedule.
So jess assets.
The strong operating performance and so on balance sheet has positioned the company to deliver its 2023 objectives and to continue generating value for shareholders by locking into some of the parts.
I will now turn the call over to Orlando, Cabrales, Frontera, CEO , and our CFO <unk>, who will share their views on the fourth quarter and full year results.
Andrew.
Thank you Oleg Odeon on and.
Good afternoon, everyone and thank you for taking the time to join US This morning.
I am pleased with <unk> 2022, operating and financial results.
We delivered record production at <unk>, which contributed two 2% quarter over quarter production growth to 40806 Boe per day.
<unk>, 9% year over year growth to 41382.
Good day.
The company increased water handling capacity at <unk> to approximately one point 55 million barrels of water per day at year end and we plan to grow to 2 million barrels of water per day by mid 2024.
The water treatment facility comes online.
And that CPC.
The company expects to increase oil and water handling capacity to 240000 barrels of water per day in 2023 and.
480000 barrels of water per day in 2025 building the foundation to grow production to 50000 Boe per day.
The company safely and responsibly execute at $314 million in capital spending in support of Colombia, and Ecuador upstream onshore business.
$104 million on its exciting Guyana offshore exploration program.
I'm also pleased with the company's continued efforts to manage its cost structure.
<unk> costs were higher year over year due to increased energy types maintenance internal truckload transportation costs in well services.
But on that transportation cost and G&A.
In line with 2021.
The company also increased its operating netback by 60% to 59 point $78 per Boe.
Increased its net sales realized price by 40%.
82.5 $59 per Boe.
Reduce restricted cash position by approximately $40 million.
Greece, it's on collateralized credit lines.
$118 million.
In our midstream segment.
We bought what the Ies leadership.
Our expertise in the container business to drive incremental opportunities in the dry cargo.
For the year ended 2022.
Over 80% of what the Ies EBITDA is now generated from.
Third parties.
For 2020 towards the midstream business generated approximately $47 million in segment cash flow from operations.
Gran Tierra achieved 102% of its 2022 ESG rules.
Offsets 52 of emissions.
Reserve and restore 1747 hectares of key quality quarterly dosing <unk> Nathan.
Recycle, 15% of its operating water and 17%, albeit solid waste in the Colombian operations.
The company invested approximately four points, we $34 31 million on allocation.
Inclusive economic development and quality of life initiatives benefiting 773000 people through.
280, <unk> social projects in Ecuador, Peru, and Colombia.
Importantly, I am pleased to confirm the company's 2023 production guidance of 40000 to 43000 Boe per day.
In 2022, we further diversified our production mix, increasing our conventional natural gas production to approximately 9700 Mcf per day.
94%, there through 2020 one.
We also grew in Nashville gas liquids production.
<unk> 960.
Per day in 2022.
144% compared to 2021.
In the fourth quarter of 2022 we drilled 17 development wells at key FA Cup or CPC.
<unk> blocks.
One injector well at Keith.
This compares to 14 development wells in the prior quarter.
In 2022, the company through 60, 70, but I'm in wells.
<unk> 242, your political anyone.
Currently the company has five rental rates are three workover rigs active keeper CPC.
<unk> and <unk> and beyond 'twenty two blocks in Colombia.
In Guyana.
But on data on CTX joint venture partners in the petroleum prospecting licenses or correcting block.
Commenced drilling operations on the wave one well on January 2023.
The well is currently at 15400 feet measured depth.
There have been no lost time safety or MRO ample ECS sees is starting operations.
Trading operations have gone as planned.
The first prospective geological horizons in the upper mass Iii's young have been successfully successful Israel.
Several days ahead of schedule.
Geophysical locks are currently being obtained in the open hole section within which hydrocarbon shows where encounter.
When drilling operations with you.
Deeper prospective horizontals in the lower <unk> companion Santonio sections will be targeted.
The wave one well is located approximately 14 kilometers northwest of the joined <unk> previous capital, one light oil and condensate discovery.
The wave one well is targeting <unk> companion as Antonio H stock Science within channel and fund complexes in the north the northern section of the quarantine block.
The well is expected to take approximately four to five months from a spot.
To reach total debt.
Subsequently acquired through the government of Guyana approve an appraisal plan for the northern section of the current in block, which commenced with the wave one well.
Following completion of wave one drilling operations and on detail analysis of the results.
Joint venture May consider future wells.
So its appraisal program to evaluate possible development facility in the kawa underscore this core area out throughout the northern section of the current in block.
Any reassured drilling is contingent on positive results at wave one.
And the JV has in order to really navigate obligations beyond the way well.
I would also note that on February 27, 2023.
JV completed the process of relinquishing the Damietta block through a more short term EHR remember with the government.
Turning now to 2022 reserves I am pleased we felt that as 2022 results reserves results.
As I mentioned earlier, we increased average daily production by 9% in.
In 2022 compared to <unk> 21, while delivering two P. Gross reserves of 175 medium barrels with an NPV before taxes of $3 7 billion an increase of 22.
22% year over year.
Importantly, we grew <unk> six two P net reserves.
241 million barrels, while increasing our average production to approximately 5000 Boe per day, demonstrating our success in increasing reserves from less developed fields and passing key fab four the most reserves by block in the company.
And we and we increase our cross PDP reserves replacement ratio to one 150%.
Primarily driven by the advances in the development of Copa America being one.
We also increased gross gas and liquids reserves by 11% year over year.
21 million barrels.
In our efforts to further diversify our production.
Thanks.
Over the last three years for data has offer US 16.6 million barrels gross two P reserve additions.
<unk>, 108% reserves replacement ratio.
Alright, 11 six years, we serve.
<unk>.
Looking ahead, we will invest between 170 million to $200 million in 2023 on our exciting global risk and near field exploration portfolio in Colombia and Ecuador.
And the high impact exploration program reloading, our reserves opportunity set for future growth.
I would now like to turn the call over and I won't go.
Data.
Chief Financial Officer.
Thank you Orlando. Thank you all for joining us today as well I'd like to take a moment to highlight a few key financial aspects of our fourth quarter and year end results.
The company recorded net income of $197 8 million or two not $2 29.
<unk> per share in the fourth quarter of 2022.
This compares with a net loss of $26 9 million or <unk> 30 per share in the prior quarter.
And net income of $629 4 million or six six per share in the fourth quarter of 2021.
The company's fourth quarter net income included operating income of $286 8 million.
This included a noncash reversal of impairment of $229 8 million.
Partially offset by $68 6 million of income tax expense.
Foreign exchange losses up $28 2 million and finance expense of $14 two.
Yes.
This compared to net income of $629 4 million in the fourth quarter of 2021.
For the year ended December 31, the company reported net income of $286 6 million.
This included operating income of $643 four.
And included a noncash reversal impairment of $229 eight.
Million.
The offset by income tax expense of 249 three.
This compared to net income of $628 1 million for the year ended December 31 2021.
Cash provided by operating activities in the fourth quarter of 2022.
$138 3 million compared with 128 $128 million in Q3, and $113 5 million in the Q4 of 2021.
The increase in cash by operating activities quarter over quarter was primarily due to positive variations in working capital offset by lower benchmark Brent oil prices.
The company generated $625 million of cash from operations in 2022, which compares to 327 million in 2021.
During the year the company, primarily invested $417 6 million in capital expenditures, which included $60 million to $62 million in exploration expenditures in onshore, Colombia and Ecuador.
And $100 million in Louisiana.
$94 million in debt service payments and $91 million in share buybacks and $36 million to increase its indirect interest in the audio pipeline due to 35%.
Operating EBITDA.
It was $145 million in Q4, compared with $173 2 million in Q3 and $1 48, six in Q4 2021.
The decrease in operating with that quarter over quarter was primarily a result of lower commodity prices.
Lower volumes sold in the fourth quarter and higher energy input costs.
From data weighted average Brent price was $98 per barrel in 2022 generating $641 million of EBITDA up 70% compared to 2021 and within the company 90 to $100 barrel Brent price 2022 guidance.
The company reported a total cash position of $313 million at December 31, 2020 to gradually flat when compared to September numbers up $209 1 million and $328 million at December 31, 2021.
Well I'd like to take a minute to talk about our midstream business.
Following the company's purchase of <unk> interest in the <unk> pipeline in Q3 from Deere has strengthened its midstream cash flows and created a standalone and growing midstream business.
To provide better clarity on this important part of our business.
And in direct response to requests from many segments of the market.
You will note in our Q4 financial statements and MD&A, we have disclosed additional information about franchise Mr business.
We look forward to your questions.
The company's Mr. Semi reported income from operations for the three months and year ended December 31 2022.
A $14 9 million and $54 3 million respectively.
This compares with 19 4 million and $77 8 million for the same periods in 2021.
Each included Frontera, Colombia liquid terminal take or pay which ended in December 2021.
As Randall mentioned earlier for the year ended 2022 revenues from third party liquids and general cargo throughput that way, yes. It was up to $39 6 million are up 41% compared to 2021 levels.
Today over 80% upward OIS EBITDA is generated from third parties.
For the year ended 2022 ODM.
<unk> $215 1 million of EBITDA and $120 1 million of net income.
This represents an 11% year over year growth on both ends.
From the data that we told the answer ciliary pipeline investments limited now owns a 35%.
Percent equity interest in the <unk> pipeline.
Lastly, I would like to talk about our risk management strategy.
For internal use of dairy commodity instruments to manage exposure to price volatility by hedging a portion of its oil prices.
Consistent with this strategy the company entered into new put hedges totaling $2, one 6 million barrels to protect a portion of the company's production through May 2023. These.
These hedges were at a price greater than $70 per barrel.
As of March one 2023 from <unk> enter into FX hedges totaled a $150 million.
Using zero cost collars protecting various levels, depending on the quarter.
I will point to you as well to our MD&A financial statements for <unk>.
Further information I would like now to turn the call back to Orlando for closing remarks.
Thank you Renee.
You have heard from data had a very successful quarter on a full year in 2022.
Turning our attention to 2023.
I am very excited about our capital program.
We aim to deliver stable cash flow.
$425 million to $475 million opioid operating EBITDA at $80 per barrel of rush brand prices from our program and diverse asset base, while also investing for future growth.
Through facilities expansion on both near field high impact exploration.
We anticipate investing approximately between $185 million to $250 million to deliver approximately between 40 and 43000 Boe per day.
A 13% decrease in development spending as compared to 2022.
The 2023 program is fully funded from existing cash and 2023 cash flows.
Futures balanced capital allocation across our most productive and prospective blocks bases and countries too.
Our ongoing efforts to diversify our production mix and lays the foundation for the company's path to grow production to 50000 Boe per day.
In 2023.
We advanced the company's exciting development and lower waste exploration portfolio in Colombia and Ecuador.
Investing in infrastructure and facilities have kifah CPC to increase production.
Leveraging our advanced transportation and logistics cost structure to maximize realized prices.
I'm not sure our self sustaining and growing midstream business, including political yes and audio.
Execute our hedging program to protect our revenue generation and manage our exposure to price volatility.
And seek to build on our tower, one night oil and condensate condensate this corey.
The way, one well, our second exploration well offshore Guyana.
In 2023, we anticipate total capital spending of approximately $385 million to $465 million, which is approximately 10% lower at the midpoint compared to compared us 2022 guidance.
We anticipate total, Colombia, and Ecuador with capital expenditures of $265 million to $350 million, which is approximately 70% at the midpoint of the company's 2023 capital budget.
Capital expenditures will be divided between development and exploration activities.
We anticipate directly directing approximately $250 million to $255 million towards the company's base Columbia on a qualified opportunity.
In Colombia, we also anticipate spending approximately $110 million to $130 million to drill 55 production wells, mainly keefe, our CPC kawa Copa fields.
Complete 24, well interventions and drill two injector wells and approximately 75 million to $85 million on development facilities right.
Primarily to increased oil and water handling capacity at Cpc's and keep them.
And finally as mentioned, we intend to invest 170 million to $200 million on our Colombia, Ecuador, and Guyana exploration programs.
We are delivering on our strategy.
We are delivering value focused production cash flow our reserves from our base Colombia operations.
Achieving continuous operational improvement across the business.
Creating a self sustaining and growing midstream business and political year on OBO.
Advancing our exciting development and exploration portfolio in Colombia quote on offshore Guyana.
Turning to capital to shareholders and extending our track record of ESG and elevating our performance across the business.
In summary, 22 was a good year for data at <unk>.
<unk> is looking even better.
We have a solid outlook strong balance sheet and excellent team and we will continue to generate value for our shareholders.
With that I would like to conclude by saying. Thank you to go to another and therefore the comments. Thank you everyone who attended our call.
I will now turn the call back to our operator, who will open the call up for questions.
Thank you.
Can you tell me we will now begin the question and answer if you want to ask a question. Please press star followed by the number one.
You want to withdraw your question, please birth or to your question, who would bolt in the other day.
If you are using a speaker phone please lift the handset before pressing any keys.
One moment. Please for your first question.
Your first question comes from Corona on Rosie from Canaccord. Please go ahead.
Good morning, everyone and thanks for taking my question and congratulations on the results.
I have a couple the first one is regarding way one.
So I just wanted to ask what's the pending cash commitment for the world and when it will be recorded in your financial statements.
Can you can you re ask the question what is about what commitment.
And the cash for weight.
So I think as we disclosed during our GLA.
I'm in discussion, we are committed $130 million due from the well and that is what drove our increased interest as <unk> to 68%.
So they the FTE or recording question, we need to get recorded.
And a coffee question. So it gets recorded as it gets.
Okay.
During 2022 U S patents around 20.
So any 30 million in weight.
So Dave try making commitments should be recorded during first quarter upstream.
Yes.
So remember it takes four to five months. So it will be between the first and second quarter. The second part is at $1 30 is exclusive of.
So that's one thing to comprise a few other points some pre deal activity and I think we highlighted this in the <unk>.
The 22 doesn't necessarily correlate directly to the $1 30.
Great and the second lines regarding the NCI V I know in the.
In March.
Are you expecting to launch a new one afterwards.
Look I think that we are we were focused on driving shareholder value and we'll continue to review all strategic alternatives that create and generate the most value for all of our stakeholders and shareholders.
We're currently discussing that anytime board eight of decision for the board to make.
Awesome.
Yes.
As we have said before we remain committed to returning.
Capital to our shareholders.
Great and final question is regarding.
Fourth English Yana.
So are you expecting any cash out of <unk> for the board.
Do you have like a timeline when CTX wheel.
<unk> been building this.
Okay.
The answer on the cash is no and I will defer this to CTX.
Okay. Thank you.
Yes, thanks, everyone.
Thank you.
Yes.
Thank you.
Your next question call setup offsetting from summer months. Please go ahead.
Great quarter, Great year, just first wanted to commend you on that.
Doing a bang up job.
To start off with that.
But I can assure you if you can see if you can speak a little louder or closer it'll be great.
Can you hear me Okay now.
This is much better yes. Thank you.
Okay, you're welcome Yeah, I was saying first off.
Great quarter, Great year I, just wanted to commend you all on that I think you guys have been doing a great job.
I had two questions.
First question is.
Maybe it was a little bit of interest from the prior.
One.
Is there any interest at all.
And bringing back a dividend I guess my question.
Comes from the fact that there had been a lot of shareholder buybacks.
Over the last year, the stock price really hasnt shown the increased equity value.
So I was wondering if theres any consideration.
Of a dividend and then I guess the second question is more technical related.
The way one well.
Given the kind of more simplified well design.
Is there any interest in keeping that well later for.
For some utility value I know that previously we had abandoned.
Yes.
The previous well, but this one is a different well design that I'm curious if it's just going to be temporarily abandoned or the plan is also to abandon it. Thank you.
You want to take the persona.
The second one yes, I'll take the dividend question and that's a great question.
We had a dividend policy that ended in 2020.
The at the behest of all of our shareholders and due to certain tax attributes as to how our dividends are taxed because of our holding structure.
We decided to prefer.
Buybacks as a vehicle to do it.
But like I said before we continue to review opportunities to return capital to our shareholders and make it in the manner that is most efficient and we will continue to discuss that at the board level and revert back with any changes, but considering it but as of right now I think that the there is nothing on the agenda regarding dividends.
This is Victor Vega.
The second question second part of the question related to the usage of the world in the future. So two things that I would like to highlight the first one is that.
As you point out that the world decided as much simpler because of the fact that we're going to <unk> with respect to kawa.
In terms of what do we plan to do with the well. So we will have to assess that the way we get to the end of the world with Cvs.
What we have found but most likely what were going to end up is with a temporarily abandoned or permanent of aluminum, but that will be something that we will decide depending on the on the well results on the state of the world at that point.
Okay. Thank you for taking my question again, great quarter and great year. Thank you.
Thank you.
Thank you.
Your next question comes from Christian <unk> from <unk> House. The answers. Please go ahead.
Hello, and a great quarter guys.
And also my questions are regarding the wave one well so first of all I'd like to ask is how closely is the geology comparing to your colleague remodel.
Also what lobs are currently being brand and our plan to be run over each of the open hole section.
How long following the end of the well will it take to provide an official reserves estimate or.
Our resource estimate.
And so also it just well looks really promising at the end and you kind of alluded to this victor.
It's temporarily abandoned I'm, assuming that you would potentially be able to use it for a sidetrack appraisal at late at a later date is that correct.
Yeah. Okay. So let me. This is Victor again, you ask general questions, Let me make sure that that capture all of them correctly.
So the legal first let's start with the last one that you asked about the usage of the world.
As we pointed out we've seen in the previous answer we will see what happens with the Wellbore at that point in terms of what is what we found.
Whether or not in terms of the operational stuff is a little bit will if you would make sense to keep the will of powerful the will to do something like what youre proposing. So that's something that we will have to look at whether we get there, but certainly it's a good question that youre asking its something that we will have to call to your <unk>.
Some of the what we have seen so far with respect to the geology.
March is relatively good but remember that we're still in the operator opinion. So remember that our main horizons are in the <unk> and <unk>.
Sorry.
<unk> and our main targets aimed at lowering companion and Antonio So we still have some ways to go. So therefore, you know right.
Now this is not the.
And part of the World.
Initial parts of the world So when we get into resumed operations.
The operations that we're conducting right now to collect data that we will continue to.
As part of their most important part of the world. So I think that's what I would.
Thanks.
Perfect I think you answered all my questions.
The exception of the logs so during when you're actually going over your your target zones.
Watch series of logs and log and data are you planning on acquiring.
I think we've seen that in the way I would answer that is that I mean.
All our priority now is to is to drill successfully the well I mean, we are on time ahead of schedule, which is which is great.
And we expect that our successful logging in data acquisition.
<unk> will allow us.
To get that information so that preliminary work on north quarantine estimates can be can be further advanced so I wouldn't say anything else on that.
Okay. Thank you.
Thank you Christine.
Thank you Nathan gentlemen, as a reminder, we have a question. Please press star one.
Your next question comes from Oriana co op from balance. Please go ahead.
Hi, Good afternoon, just you said you Nicola balanced thanks for taking my question I had.
Two separate questions moving from day one.
<unk> date first with regards to <unk>.
The income tax that you reported for this quarter and the effective tax rate just wanted to understand.
Higher provisioning needs IV next year with the increased tax burden.
And how would this play out with <unk>, you still have an ongoing tax.
Tax credit that could prevent.
Further drag in cash tax payments.
Thank you.
So two things you want a clarification on our on our.
On a rig or are the taxes that we of course the record in 2022 and years, one visibility as to how we're recruiting Texas plant 23. Another question.
Yeah.
So for 2022, you saw mostly an adjustment on deferred taxes and this is a combination of us are consuming some of our Nols and other tax attributes that we've been carrying.
And also utilizing some tax credits.
The second part of that question. After 2023, the way that you should anticipate us provisioning taxes going forward is again accounting driven until you should start us accruing the taxes that are owed but simultaneously with that we are actually also maximizing some of the.
Deferred taxes that we have available.
To minimize the tax burden related to that as well as additional.
Tax credit that we can have on hand.
Best that I can point you to is in our in our guidance, we actually pointed to our expectations.
Tax cash tax income taxes for 2023, and what we did for the market as we provided ranges. So for modeling purposes. What you can do is look at the price ranges that we provided and you would see anywhere from 30 to 50 I think at 75 and then it goes to AE.
Thank you Lee 80, and 85 and you can get a sense of are we are provisioned for the cash cost.
Related to our tax income in 2023.
Three which already includes our view as to the best use of our tax attributes that we have on balance sheet.
Helpful.
Yeah, perfect, that's very clear and maybe just another one in terms of the operations.
Maybe if you can comment on what are you seeing in terms of discounts to international prices.
Have you seen this getting tighter because that was my understanding that for heavy crude during the fourth quarter. The spreads were attending to get wider. So just what are you seeing so far doing the Yang Y your expectation going forward.
Are you talking about Opex.
Yes, no realized prices.
The differentials that represent luxury fashion.
Okay, Let me frame, yes differential yes.
Thank you Rachel Yeah exact.
Exactly.
Yes, no. What we are what we are seeing is that is that the in the first in the first quarter of the year, we are seeing a higher differentials compare with the previous quarter.
In any case, we are we are doing better than that on the benchmark.
But certainly I think we are seeing that in the market for the first quarter.
The good thing for from our perspective.
Is that we have these are really the internal capability to take advantage of the of the of the of the of the of the prices on.
We do the market.
All our products directly so we have been doing better than the benchmark. We are seeing that in the markets. We are going to monitor that on a daily basis try to to get the best price for the company.
Okay, that's clear and maybe sorry, one last one and just going back to your opening remarks with regards to the midstream business.
Initiatives to increase value in both <unk> and LDL. So maybe if you can comment a bit more on where you think and how are you thinking of the business.
Okay. How are we our aim.
I mean, the good I mean, the first thing I would say is to highlight what <unk> already said, which is that we have.
Now a controlling interest in the portfolio.
Would you give us the delta 82 to change the direction of the strategic direction of the of the of the company.
Walking the value.
Out of the of the of the Port we believe that the fourth is a unique asset.
It's a state of the art facility no.
Last year, we the board report minus 50000 barrels per day of oil and oil problems now that gives you an indication of.
The level of activity that we're seeing in the ports.
We have the largest.
Wrong Roelof cargo operators in the country.
And we have a standalone EBITDA between 15 and $20 million as we said at 80% of that is coming from third parties.
So which is which is which is great.
The last thing I would say is that last year, we revamped the management team of <unk>.
We are a patient all of developing the containers business in the in the in the <unk>.
No.
No look I would add just since I'm the finance Guy would add a couple of just extra data points.
We have assets here that has significant value on a combined basis, if you take the or 35% interest.
In Odell and you combine it with our 100% interest in Porto <unk> 99.8, Youre talking a business that has a combined proportional EBITDA in excess of $90 million that's.
That's exciting to us and that's why when we referred to a standalone business is that this is a central it sounds defeat he has growth opportunity and we believe that if we continue to mature the business. This could generate significant equity upside potential for our shareholders that you don't see reflected in our stock today.
Perfect that's very clear thanks.
Thanks for taking my question.
Thank you.
Ladies and gentlemen, as a reminder, kawa question. Please press star one.
Yes.
There are no further questions at this time.
Have any further questions. Please email I art, that's something that energy dossier. This concludes our call. Thank you all for participating.
Okay.
Goodbye.