Q3 2023 Gran Tierra Energy Inc Earnings Call
Okay.
Good morning, ladies and gentlemen, and welcome to Gran Tierra Energy's results conference call for the third quarter of 2023 my.
My name is Shannon and I'll be your coordinator for today.
At this time all participants are in a listen only mode.
Following the initial remarks, we will conduct a question and answer session for securities analysts and institutions.
Instructions will be provided at that time for you to queue up for questions.
I would like to remind everyone that this conference call is being webcast and recorded today Wednesday November <unk> 2023 at 11 o'clock a M eastern time.
Today's discussion may include certain forward looking information as well as certain non-GAAP financial measures.
Please refer to the earnings and operational update press release, we issued yesterday for important disclaimers with regard to additional information and reconciliations of any non-GAAP measures discussed on today's call.
Any production volumes are based on working interest sales before royalties. Finally this earnings call is the property of Gran Tierra Energy, Inc. Any copying or rebroadcast of this call is expressly forbidden without the written consent of Gran Tierra energy.
I will now turn the conference call over to Gary Guidry, President and Chief Executive Officer of Gran Tierra. Mr. Guidry. Please go ahead.
Yes.
Thank you operator.
Good morning, and thanks for joining Gran Tierra, and our third quarter 2023 results conference call.
Name is Gary Guidry, President and Chief Executive Officer, and with me today are Ryan Nelson Executive Vice President and Chief Financial Officer, and Rob will.
Vice President of asset management.
On Tuesday October 31, 2023, we issued three press releases that included detailed information on our third quarter 2023 results.
Another release.
I'll take the appointment of Sebastian Moran, our new Chief Exec, Chief operating officer in a separate press release announced.
Announcing the intention to make a normal course issuer bid for our common shares all of which are available on our website.
We are very pleased to welcome Sebastian back to Gran Tierra, and the new position of Chief operating officer.
<unk> has a proven track record of delivering value added results and demonstrated excellent mentorship and communication skills <unk>.
Sebastian was integral in Gran Tierra, becoming best in class and drilling operations and execution of our capital programs.
<unk> will be focused on continuous improvement and optimization of our capital investments and our operating cost and will be leading the functional integration of asset management plans to achieve optimum value for all of the Companys assets.
Ryan and Rob will now make a few brief comments and then we will open the line for questions I'll now turn the call over to Ryan to discuss key financial highlights from our third quarter results right.
Good morning, everyone Gran Tierra had another solid quarter.
Our financial position remains robust and we continue to focus on maximizing operational efficiency and managing costs effectively to ensure sustainable growth and profitability during the quarter Gran Tierra delivered $79 million of funds flow, which is up 49% from the prior quarter and resulted in $2 37 funds flow per basic.
Sure.
After incurring approximately 43 million in capital expenditures the company generated free cash flow of approximately $36 million.
Adjusted EBITDA was $119 million for the prior quarter up from $97 million in the prior quarter.
As of September 32023, the company had a cash balance of $123 million net debt of $499 million.
On the liability management front, we are very pleased with the successful completion of our bond exchange offering subsequent to the.
The quarter, which we believe is highly beneficial for both Gran Tierra and <unk>.
And our stakeholders.
The company's balance sheet is now stronger than improved amortization schedule and less restrictive conditions.
The bond exchange exchanges in tandem with our solid operating cash flow provide additional financial flexibility and a stronger platform as we execute our strategy of delivering profitable production growth free cash flow generation and value creation for stakeholders.
Agenda continue to high grade our portfolio through our integrated strategy of acquiring exploring developing producing and enhancing our high quality oil and gas assets.
Also subsequent to the ended the quarter the company entering the oil hedges covering approximately 15000 barrels a day throughput options from October one 2023 through March 31, 2024, with a floor price of $80, Brent with no ceiling for premium of $3 per barrel.
Gran Tierra is average production for third quarter was 33940 Boe per day, which was slightly up from the prior quarter. Gran Tierra is production of the quarter was the company's highest quarterly average for the total production since second quarter 2019.
Looking at pricing during the quarter, the Brent oil price averaged $85 92 per barrel up 11% from the prior quarter.
The companys quality and transportation discount narrowed to $11 83 per barrel down from $14 10 per barrel in the prior quarter. The company's operating netback was $40 87 per barrel up 18% from the prior quarter.
During the quarter, we also announced that we had completed and met all the conditions associated with disoriented continuation. While we're very excited we'll see that's where your extension on the block we are even more excited about the development corridor. This opens for future growth between three oil discoveries in 2022, and disorienting continuation, we have secured a strong portfolio of organic.
<unk> opportunities and the Sofa tomorrow.
We have $18 48, a block where we discovered the rules for yield.
We are sort of empty block, which includes the <unk> field is under waterflood.
Both of the border in Ecuador, we have a drop of block, which has a drop in north of the discovery in the <unk> block, which includes our brokerage equal discovery.
This large contiguous development quarter will be a key focus of the company and provide a long runway for our future capital projects in production growth.
Finally, as Gary mentioned at the opening of this call. We are pleased to announce our attention to resume our normal course issuer bid, which will allow us to purchase up to 10% of the public float of our common shares over the next 12 months.
Now I'll turn the call over to Gary discussed to Rob to discuss our operational highlights from our third quarter results.
Good morning, everyone as Brian mentioned during the quarter, we incurred 43 million and capital expenditures, which were lower than the prior quarter's level of $66 million as a result of no wells being drilled during the quarter due to our development program, having been completed in the first half of 2023.
In terms of upcoming activity following our successful 2023 development campaigns at a coronary.
In the northern extension of the cardiac fulfilled we are accelerating our development program and plan to commence drilling at both of these fields in December 2023.
In terms of asset performance the waterflood across our four core assets continue to be effective at increasing ultimate oil recoveries.
And we are excited to resume drilling by the end of this year.
We are also delighted that we closed the series anti block extension agreement during the quarter as we believe this block will be a key growth area for the company over the coming years.
As seen in our mid year reserve update.
SaaS and our waterflood and the extension of the sheer anti block agreement resulted in record highs in the Companys proven and proven plus probable oil reserves for the company.
Added proven reserves of 16 million barrels and proven plus probable of 26 million barrels.
At the end of 2022.
Upon completion of the development drilling program and costs Jaco expected in March 2024, the company plans to move the drilling rig to Ecuador to begin to exploration drilling program.
Now I'll turn the call back to the operator, and we'll be happy to answer any questions.
Greater please go ahead.
Thank you, ladies and gentlemen, we will now conduct a question and answer session for Securities analysts have you have a question. Please press the star key followed by one one on your Touchtone phone.
You will then hear an automated message advising your hands raised.
Your questions will be pulled in the order. They are received please ensure you lift the handset if youre using a speakerphone before pressing any keys.
One moment. Please for your first question.
Our first question comes from the line of Robin Rossi with Canaccord Genuity. Your line is now open.
Thank you good morning, everyone and thanks for taking my question Congrats.
Great quarter.
I kind of few questions. We can go sequentially.
First one.
What's your view on crude differentials in the coming quarters.
I don't anticipate more pressure now that Venezuela will be entering the market.
Yeah. Good question I think there's a few things out good optimism Venezuelan crude entering the market as well as the dropdown pipeline opening up in Canada, which could lead to additional pressure.
We expect them to be around these levels, maybe do widen a.
$1 or so, but we don't expect any major build outs.
Okay great.
Regarding <unk>.
Rob you mentioned that you had spent $41 million.
What should we expect for the last quarter of the year.
Additionally, in the breakdown of the Capex.
Thank you.
$10 3 million line either.
Other.
Tony will give us more color on what that includes.
Sorry, you broke up a little bit on that.
Second question here, what was the second part of the question I heard the first part of <unk> or Capex I missed the second part.
Okay. The second body regarding.
In the breakdown of Capex you have a Linux other that include $16 3 million.
If you can give us more color on that.
Yes part of that was.
Just adding some some pre investment just for our upcoming Q4 and Q1 drilling program sometimes.
Sometimes.
These are the pads take a long time to build so there is a lot of pre investment that needs to go in and order some of the long lead items for the drilling program that would be the bulk of it.
And then for the second half.
For Q4.
We expect capital expenditures in the $30 million to $40 million range.
Awesome and just the last one.
Regarding energy costs.
We are seeing that Neil.
Neil.
With our increasing back.
Do you expect additional pressure in the coming quarters.
Thing that actually prices.
Yes, we are seeing.
Increased energy prices electricity.
We're making an effort and have been over the last several years to remove ourselves from the grip generate our own electricity using natural gas those efforts.
We will continue and accelerate into next year. So part of our capital spending next year is on using natural gas as a fuel and generating as much electricity as we can.
Everything across the board we're seeing in.
In Colombia on fuels drive us to be efficient and diesel costs going up electricity costs going up and so.
Body benefits by us generating our own electricity using our own fuels.
Great. Thank you very much.
Great. Thank you.
Our next question comes from the line of Josef Schachter with Schachter Energy Research. Your line is now open.
Thank you very much congratulations on the quarter and also the debt restructuring, which took away a little bit of a concern so congratulations on that.
Given youre going to probably spend as you mentioned in the prior call.
<unk>.
About 220 million U S. This year.
With the free cash flow you mentioned the CIB are you also thinking about paying down that credit facility of $49 million.
As well in terms of the focus to knock that down.
Yes, I think the credit facility does repaid fairly quickly we're amortizing that over 10 months fully repaid by August next year. So we already have a fairly aggressive.
Graham on that as far as repayment and then similar to this year. The first half capital program is going to be weighted towards the development program.
As Rob mentioned, we are starting a rig in accordant arrow and cost Jaco.
<unk>.
December of this year. So we expect capex in the first half of the year and then trail off similar to this year.
The free cash flow in the second half of the year, but we're already.
The worst case scenario.
The drug group facilities repaid fully by August of next year. Okay. Second question, you're talking here about success in two places in Ecuador or any of those wells on production or is this something that will come on in.
First half 'twenty four.
Yes, we are we continue to produce about 12 to 500 barrels a day.
We will continue producing.
Throughout <unk>.
Don't ever anticipate stopping.
We would be producing more today.
But we're collecting information on reservoir. So these are these are new discoveries that are very prolific wells and we're quite excited we're quite excited about.
Getting out and seeing just how big these are we.
You may have noticed that we deferred a couple of wells we had some blockades.
We're in Ecuador long term and so we're working through.
What those blockades are about and we shifted.
That capital on those wells back up to our coast to outgrow field, where we've had some really good results.
And Joseph in your new slide deck to we actually have a slide in there that just shows where the discoveries are along with disoriented discussed.
Extension and the Roes discovery, which really shows the corridor.
Your growth highlights of where we are and what Gary is talking about.
Sure.
Last one for me when do you expect to have your guidance for 2024, and Capex budget et cetera.
That will be after the new year, we're working through that now as a management team, we will be discussing that with our board of directors.
Bye.
First second week of December and we.
We'll release that guidance after the first of the year.
Alright, thanks, very much for everything and again congratulations.
Thank you.
Our next question comes from the line of Oregano cobalt with balance your line is now open.
Hi, Thanks for taking our questions. This is Adam.
Just had two quick follow ups. The first one with regards to <unk> expansion on thank you Danielle.
And we know what it is.
Okay.
So looking forward, we will be going down from 27%.
From the current 52% so just any color or thoughts you can provide in terms of.
Cash flow from operations.
Okay.
And.
That is all of that.
It was really a negotiation.
That was what we've negotiated and coupled with that though is if you look at the Opex right now which.
<unk> paid $6 per barrel now.
Now that will increase to a maximum of $11. So there is some give and takes in the negotiation.
Okay understand.
And just one last follow up okay. Thanks, Jason.
This negative is a restricted payment basket for dividend came out with quick question Tien tsin.
Okay.
Okay.
Operator: Good morning, ladies and gentlemen. Welcome to Gran Tierra Energy's results conference call for the third quarter of 2023. My name is Shannon and I will be your coordinator for today. At this time, I will participants on a listening mode. Following the initial remarks, we will conduct the questioning at the session for securities analysts and institutions. And instructions will be provided at the time for you to queue up for questions. I would like to remind everyone that this conference call is being broadcast and recorded today.
Thank you Robin Hello, David.
Yes.
Just thinking on de risking baskets and propel for users.
That's helpful. Thanks Ashwin.
Our company owned or their mistakes.
Oh, yes.
There are there are restrictions still.
So really if we meet certain criteria and that's based on free cash flow generation net debt to EBITDA under one five times.
Operator: Wednesday, November 1st, 2023. At 11 o'clock a.m. Eastern time. Today's discussion may include certain form-looking information, as well as certain non-gaps and natural measures. Please refer to the earnings and operational update press release. We issued yesterday for important disclaimers with regard to this information and reconciliation of any non-gap measures discussed on today's call. Any production volumes are based on working interest sales before royalties. Finally, this earnings call is the property of Gran Tierra Energy Inc. Any copy and or rebar testing of this call is expressly forbidden without the written consent of Gran Tierra Energy.
As do other than the maximum that we have for restricted payments in our case, which would be share buybacks <unk> dividends would be $50 million per annum, which doesn't roll forward.
And then also gen.
General basket per annum of $10 million.
Okay.
Perfect. Thank you very much open to Quaker Houghton quota.
Great. Thank you.
Thank you gentlemen, there are no further questions at this time please continue.
Operator: I will now turn the conference call over to Gary Gidry, President and Chief Effective Officer of Gran Tierra. Mr. Gidry, please go ahead. Thank you, operator.
Thank you operator.
I would like to thank everyone. Once again for joining US we look forward to speaking with you in the next quarter and.
And I appreciate you dialing in.
Gary Gidry: Good morning and thanks for joining Gran Tierra and our third quarter 2023 results conference call. My name is Gary Gidry, President and Chief Executive Officer. And with me today, Orion Elson, Executive Vice President and Chief Financial Officer, and Rob Will, our Vice President of Asset Management. On Tuesday, October 31st, 2023, we issued three press releases that included detailed information on our third quarter 2023 results. Another release announcing the appointment of Sebastian Morin, our new Chief Executive Operating Officer, and the separate press release announcing the intention to make a normal call. So, of course, issue or bid for our common shares, all of which are available on our website.
This concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
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Okay.
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Okay.
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Gary Gidry: We are very pleased to welcome Sebastian back to Gran Tierra and the new position of Chief Operating Officer. Sebastian has a proven track record of delivering value added results and demonstrated excellent mentorship and communication skills. Sebastian was integral and Gran Tierra becoming best in class and drilling operations and execution of our capital programs. Sebastian will be focused on continuous improvement and optimization of our capital investments and our operating costs. And we'll be leading the functional integration of asset management plans to achieve optimum value for all of the company's assets.
Gary Gidry: Ryan and Rob will now make a few brief comments and then we will open the line for questions.
Ryan Ellson: I'll now turn the call over to Ryan to discuss key financial highlights from our third quarter results.
Ryan Ellson: Good morning everyone. Gran Tierra had another solid quarter. Our financial position remains robust and we continue to focus on maximizing operational efficiency and managing costs effectively to ensure sustainable growth and profitability. During the quarter Gran Tierra delivered 79 million of funds flow, which is up 49% from the prior quarter and results in $2.37 of funds flow per basic share. After incurring approximately 43 million in capital expenditures, the company generated free cash flow of approximately 36 million.
Ryan Ellson: Ajusted EBITDA was $119 million for the prior quarter, up from $97 million in the prior quarter. As of September 30th, 2023, the company had a cash balance of $123 million and net debt to $499 million. On the liability management front, we are very pleased with the successful completion of our bond exchange offering subsequent to the quarter, which we believe is highly beneficial for both Gran Tierra and our stakeholders. The company's balance sheet is now stronger due to improved advertising schedule and less restrictive conditions.
Ryan Ellson: The bond exchange exchanges in tandem with our solid operating cash flow provide additional financial flexibility as a stronger platform as we execute our strategy of delivering profitable production growth, free cash flow generation and value creation for stakeholders. We intend to continue to hydrate our portfolio through our integrated strategy of acquiring, exploring, developing, producing and enhancing high quality oil and gas assets. Also, subsequent to the end of the quarter, the company entering the oil hedges covering approximately 15,000 barrels of day through put options from October 1st, 2023 to March 31st, 2024, with a four price of $80 Brent with no ceiling per premium of $3 per barrel.
Ryan Ellson: Gran Tierra's average production for third quarter was 33,940 B.O.E, per day, which was slightly up from the prior quarter. Gran Tierra's production of the quarter was the company's highest quarterly average for total production since second quarter 2019. Looking at pricing during the quarter, the Brent oil price average $85.92 cents per barrel, up 11% from the prior quarter. The company's quality and transportation discount narrowed to $11.83 per barrel down from $14.10 per barrel on the prior quarter.
Ryan Ellson: The company's offering netback was $40.87 per barrel, up 18% from the prior quarter. During the quarter, we also announced that we had completed and met all the conditions associated with this oriented continuation. While we are very excited to obtain a 20-year extension on the block, we are even more excited about the development corridor of this open for future growth. Between three world discoveries in 2022 and the Sorianque continuation, we have secured a strong portfolio of organic development opportunities.
Ryan Ellson: In the south through the mile, we have the LA-1848A block where we discovered the Rose field, and we have the Sorianque block which includes the Gohambi field as underwater flood. To the south of the border, in Ecuador, we have the Trap of Block, which has a Trap of Norte Discovery, and the Chinengue block which includes the Boca Chico Discovery. This large contiguous development corridor will be a key focus of the company and provide a long runway for our future capital projects and production growth.
Ryan Ellson: Finally, as Gary mentioned at the opening of this call, we are pleased to announce our intentions to resume our normal course issue a bit, which will allow us to purchase up to 10% of the public flow to the common shares over the next 12 months.
Gary Gidry: Now, turn the call over to Gary to discuss our operational highlights from our third quarter results.
Gary Gidry: Good morning, everyone. As Ryan mentioned, during the quarter, we incurred 43 million capital expenditures, which were lower than the prior quarter's level, a 66 million as a result of no walls being drilled during the quarter due to our development program having been completed in the first half of 2023. In terms of upcoming activity, following our successful 2023 development campaigns at Accord Narrow and the Northern Extension of the Castiaco field, we are accelerating our development program and planned events drilling at both of these fields in December 2023.
Gary Gidry: In terms of asset performance, the water floods across our four core assets continue to be effective at increasing ultimate oil recoveries and we are excited to resume drilling by the end of this year. We are also delighted that we closed the Ciri Antiblock Extension Agreement during the quarter, as we believe this block will be a key growth area for the company over the coming years. As seen in our mid-year reserve update, the success in our water floods and the extension of the Ciri Antiblock Agreement resulted in record highs in the company's proven and proven plus probable oil reserves for the company. We added proven reserves of 16 million barrels and proven plus probable of 26 million barrels since the end of 2022.
Gary Gidry: Upon completion of the development drilling program in Castiaco, expected in March 2024 the company plans to move the drilling rig to Ecuador to begin the exploration drilling program.
Operator: I will now turn the call back to the operator and we will be happy to answer any questions.
Operator: Operator, please go ahead. Thank you.
Roman Rossi: Ladies and gentlemen, we will now conduct the question and answer session for securities analysts. If you have a question, please press the star key, followed by one one on your touch tone phone. You will then hear an automated message advising your hand is raised. Your questions will be pulled in the order they are received. Please ensure you lift the handset if you are using this speaker phone before pressing any keys. One moment, please, for your first question.
Rob Will: Our first question comes from the line of Roman Rossi with Canacorn Genuity. Good line is open. Thank you. Good morning, everyone. And thanks for taking that question, congrats on a great quarter. So I have a few questions. We can go sequentially. The first one. What's your view on three different shelves in the coming quarters? Do you anticipate more pressure now that Venezuela will be entering the market? Yeah, it's good question. I think there's a few things that could happen.
Rob Will: It's some Benaville and crude enter the market as well as the trend of Bitcoin opening up in Canada, which could put a little additional pressure. You know, we expect them to be around these levels. Maybe they'll widen, you know, a dollar or so, but we don't expect any major blowouts. Okay, great. We got a copy. Rob mentioned that you spend for one million. What should we expect for the last quarter of the year?
Rob Will: And then additionally in the breakdown of the copy, you have a 16.3 million line with this other. Can you give us more color on what that includes? So on the first, you broke up a little bit on the second question here. What was the second part of the question? I heard the first part of a key or cat fax, but I missed the second part. Okay, the second part is regarding in the breakdown of traffic.
Rob Will: You have a line that's other that includes 16.3 million US dollars if you can give us more color on that. Yeah, part of that was just adding some pre-investment just for our upcoming Q4 and Q1 drilling program. You know, sometimes in these areas, the pad stick a long time to build so there's a lot of pre-investment that needs to go in and order some of the long lead items for the drilling program.
Rob Will: That would be the bulk of it. And then for the second half, sorry, for Q4 and we expect capital expenditures in the 30 to 40 million dollar range. Yeah, we are seeing increased energy prices of the electricity. We're making an effort and have been over the last several years to remove ourselves from the grid generator electricity using natural gas. Those efforts will continue and accelerate into next year. So part of our capital spending next year is on using natural gas as a fuel and generating as much electricity as we can.
Rob Will: Everything across the board, we're seeing in Colombia on fuels drive us to be efficient and diesel costs going up, electricity costs going up. And so everybody, everybody benefits by us generating our own electricity using our own fuels. Great. Thank you very much. Thank you.
Josef Schachter: Our next question comes from the line of Joseph Shactor with Shactor Energy Research. Your line is now open. Thank you very much. Congratulations on the quarter and also the debt restructuring, which took away a little bit of the concern. So congratulations on that. Given you're going to probably spend as you mentioned in the prior questions, about 220 million US this year, with the free cash flow, you mentioned the NCIB. Are you also thinking of paying down that credit facility of 49 million as well in terms of the focus to knock that down?
Josef Schachter: Yeah, I think the credit facility does repay fairly quickly. We're advertising that over 10 months. It's fully repaid by August next year. So we already have a fairly aggressive program on that as far as repayment. And then similar to this year, the first half capital program is going to be weighted towards development program. So as Rob mentioned, we're starting to rig in a cordon arrow and cost the accol end of this in December of this year.
Josef Schachter: So we expect quite a bit of capex in the first half of the year. And then trail off somewhere this year, you know, we'll generate the free cash flow in the second half of the year. But we already, you know, the worst case nail that the trucker facility is repaid fully by August of next year.
Gary Gidry: Okay. Second question, you talk and hear about success in two places in Ecuador. Are any of those wells on production or is this something that will come on in, you know, first half 24? Yeah, we continue to produce about 12 to 1500 barrels a day. We will continue producing throughout. We don't ever anticipate stopping. We would be producing more today, but we're collecting information on reservoirs. These are new discoveries. They're very prolific wells and we're quite excited.
Gary Gidry: We're quite excited about getting out and seeing just how big these are. We, you may have noticed that we deferred a couple of wells. We had some blockades. We're in Ecuador long-term and so we're working through what those blockades are about and we shifted that capital in those wells back up to our coasty aqua field where we had some really good results. In Joseph, in a new slide deck too, we actually have a slide in there that just shows where those discoveries are along with the story and the discussion extension and the rose discovery, which really shows the corridor of future growth. We've got highlights of where we are and what Gary's talking about.
Gary Gidry: Super. Last one for me, when do you expect to have your guidance for 2024 and CAPX bugs, etc.? That'll be after the new year. We're working through that now as a management team. We'll be discussing that with our Board of Directors by first, second week of December and we'll release that guidance after the first of the year. Super, thanks very much for everything and again congratulations.
Operator: Thank you.
Oriana Covault: Our next question comes from the line of Oriana Covalt with Balance. Your line is open. Hi, thanks for taking a question. This is Codialca with Balance. I just had two quick follow-ups. The first one with regards to the extension of the Codialca agreement. We noticed that there's a shift in your working interest this after 2024. You will be going down to 47%.
Gary Gidry: So from the current 52% to just any color or thoughts that you can provide in terms of the Codialca agreement and the cash consideration that you paid. And that is on that. It was really a negotiation and so that was what we negotiated and coupled with that, though, is if you look at the ARPX right now, if we don't pay $6 per barrel, now that will increase to a maximum of $11. So there's some give-and-takes in the negotiation. Yeah, you understand.
Gary Gidry: And just one last follow-up on clarification. This negative is the restricted payment basket for dividend payment, which was appeared on the exchange of cash from the utility last quarter. You're thinking on potential damage. Yeah, just thinking on the restricted payment basket and potential uses for digital payments being the cash for generation. I wasn't cleared or they were straight from the end. Oh yeah, there are restrictions still, and so really if we meet certain criteria and that's based on free cash flow generation net net diva under one and a half times, and it's true other than the maximum that we have for restricted payments. In our case, which would be shared by Vax, not dividends would be $50 million per annum, which doesn't rule for, and then also a general basket per annum of $10 million.
Oriana Covault: Okay. Perfect. Thank you very much. Great. Thank you.
Operator: Gentlemen, there are no further questions at this time. Please continue. Thank you. Thank you, operator. I would like to thank everyone once again for joining us. We look forward to speaking with you in the next quarter, and appreciate you dialing in. Thank you.
Operator: This concludes today's conference calls. Thank you for participating. You may now disconnect. Thank you very much.