Q1 2024 SM Energy Co Earnings Call -Q&A

Operator: Greetings and welcome to SM Energy's first quarter 2024 financial and operating results Q&A. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jennifer Samuels, Vice President, Investor Relations and ESG Stewardship. Thank you. You may begin.

Greetings and welcome to the that some energy's first quarter 2024 financial and operating results Q&A.

At this time all participants are in a listen only mode.

A brief question and answer session will follow the formal presentation.

Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded it is now my pleasure to introduce your host Jennifer <unk>, Vice President Investor Relations and ESG stewardship. Thank you you may begin.

Jennifer Martin Samuels: Thank you, Maria. Good morning, everyone.

Thank you Maria and good morning, everyone. In today's call. We may reference the earnings release, IR presentation or prepared remarks, all of which are posted to our website.

Jennifer Martin Samuels: In today's call, we may reference the earnings release IR presentation or prepared marks, all of which are posted on our website. Thank you for joining us to answer your questions today. We have our President and CEO, Herb Vogel, and CFO, Wade Purcell.

Jennifer Martin Samuels: Before we get started, I need to remind you that our discussion today may include forward-looking statements and discussion of non-GAAP measures. I direct you to slide 2 of the accompanying slide deck, page 5 of the accompanying earnings release, and the risk factors section of our most recently filed 10-K, which describe risks associated with forward-looking statements that could cause actual results to differ. We may also refer to non-GAAP measures. Please see the slide deck appendix and earnings release for definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures and discussion of forward-looking non-GAAP measures. Got that out of the way. Also, look for our first quarter 10-Q file this morning. And with that, I will turn it over to Herb for just a brief opening comment. Okay, Herb? Thanks, Jennifer.

Thank you for joining us to answer your questions today, we have our president and CEO her bogo and CFO Wade Pursell before we get started I need to remind you that our discussion today may include forward looking statements and discussion of non-GAAP measures I direct you to slide two of the accompanying slide deck page five of the accompanying earnings release and the risk.

Factors section of our most recently filed 10-K, which describe risks associated with forward looking statements that could cause actual results to differ we may also refer to non-GAAP measures. Please see the slide deck appendix and earnings release for definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures and a discussion of <unk>.

Looking non-GAAP measures got that out of the way also look for look for our first quarter 10-Q filed this morning, and with that I will turn it over to her for just a brief opening comment.

Herbert S. Vogel: Thanks, Jennifer. And good morning. Thanks for joining us. We're obviously very excited about how 2024 is shaping up for SM Energy.

Thanks, Jennifer and good morning, Thanks for joining us. We're obviously very excited about how 'twenty 'twenty four is shaping up for SM energy. So let's go ahead and get started I'll turn the call back to Maria to start taking your questions Maria.

Herbert S. Vogel: So let's go ahead and get started. I'll turn the call back to Maria to start taking your questions.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone. A confirmation tone will indicate that your line is in question. You may press star 2 if you would like to remove your question from the line. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key.

Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue for.

Using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Operator: One moment, please, while we poll for questions. Our first question comes from Zach Parham with J.P. Morgan. Please proceed with your question.

Yes.

Our first question comes from Zach <unk> with J P. Morgan. Please proceed with your question.

Benjamin Zachary Parham: Thanks for taking my questions. I just wanted to ask about the buyback first. You've talked about in the prepared remarks a rateable pace for the buyback for the remainder of the year. That would apply around $60 million in buybacks per quarter. But at current commodity prices, it seems like you'll have a significant amount of free cash flow that will allow you to build a lot of cash even after paying the base dividend and finishing off that buyback authorization. How do you think about using that excess cash? Could further accelerating that buyback make sense? Just trying to get a sense of what will happen with that cash.

Zach: Thanks for taking my questions I just wanted to ask on the buyback first you you've talked about in the prepared remarks, a ratable pace through the buyback for the remainder of the year that would imply around 60 million in buybacks per quarter.

Zach: At current commodity prices. It seems like you'll have a significant amount of free cash flow that'll allow you to build a lot of cash even after paying the base dividend that finishing golf that buyback authorization. How do you think about using that excess cash could further accelerating that buyback makes sense just trying to get a sense.

Zach: Of what happens with that cash.

Wade Purcell: Yeah, good. Good questions, Zach. This is Wade. Good morning.

Zach: Yeah. Good questions asked this is wade and good morning.

Wade: Yeah, I you know, we just that.

Wade Purcell: Yeah, you know, we just The guidance on assuming rateable buybacks, I think, is just the best way to model it right now. Obviously, things never happen that rateably, right? And, you know, as we go through the quarters, we opportunistically repurchase during the open windows. And, you know, under your scenario with higher commodity prices, that's generating more free cash flow. You could see us buying back at a little bit more of an accelerated pace than that, given what the opportunity set is before us.

Speaker Change: No the guidance I'm, assuming ratable buybacks I think it's just the best way to model it right now.

Speaker Change: Obviously, yeah.

Things never happened that Ratably, right and as we go through the quarters.

Speaker Change: We opportunistically repurchased during the open windows and yeah.

Yeah, you could see under your scenario with higher commodity prices, that's generating more free cash flow you could see us buying.

Speaker Change: Buying back at a little bit more accelerated pace than that given what the opportunity set is before us so that could happen and you know.

Wade Purcell: So that could happen. And, you know, many people have asked, you know, what are you going to do when you get through the commitment? And the board will consider that. And I can imagine it being possible that we would, you know, continue on with a new buyback. But certainly no guarantees of that at this point.

Speaker Change: Many people have asked you know what are you going to do when you get through the commitment and the board will consider that and I can't imagine it being possible that we would.

Speaker Change: Continue on with it with a new buyback, but certainly no guarantees of that at this point.

Wade Purcell: Thanks, Wade. And just to follow up on your prepared remarks, you mentioned flattish production in 3Q and then kind of another step up in 4Q. That seems to indicate you would exit the year with oil in the upper 70s. Is that a fair number? Just trying to get a little bit more color on what that trajectory of volumes would look like through the back half of the year.

Speaker Change: Thanks Wade.

Wade: Just a follow up in the prepared remarks, you mentioned flattish production in <unk>, and then kind of another step up in for Q U S seems to indicate you would exit the year with oil in the upper seventies.

Wade: Is that a fair number just trying to get a little bit more color on what that trajectory of volumes would look like through the back half of the year.

Wade Purcell: Yeah, I think that's reasonable in the mid-70s ish, given what we said about the third quarter being flattish, I mean, it'll be up. I think, you know, what's changed a little bit is the second quarter is obviously with acceleration higher than it was before in our guidance. So so you're, I think you're, you're reading that pretty well. But you can assume the third quarter is up somewhat over the second quarter. Thanks, Wade.

Speaker Change: Yeah, I think that's reasonable mid Seventy's ish.

Given what we said you know what we said about the third quarter being flattish I mean that it'll it'll be up I think you know what's changed a little bit as the second quarter is obviously with acceleration higher than it was before in our guidance.

Speaker Change: So you're I think you're reading that pretty well, but you can assume the third quarter is up somewhat over that over the second quarter.

Benjamin Zachary Parham: Thanks Wade; I appreciate the call.

Speaker Change: Thank you I appreciate the color.

Speaker Change: Yeah.

Operator: Our next question comes from Gabe Daoud with TD Cowen. Please proceed with your question.

Speaker Change: Our next question comes from Gabe Dodd, but PD Cowen. Please proceed with your question.

Gabriel J. Daoud: Thanks. Hey, good morning, guys.

Gabriel J. Daoud: Thanks, Hey, good morning, guys. Thanks for the time.

Gabriel J. Daoud: Maybe I was hoping if we could start a condo.

Gabriel J. Daoud: Thanks for the time. Maybe I was hoping if we could start at Klondike. You mentioned you did some science there during the quarter and maybe starting to complete those eight to nine wells, where I think results should be ready by the third quarter call. But I'd be curious if you could maybe talk a little bit about some of the science work there. You know, some of the deans in the area look quite prolific on an oil productivity per foot basis. So just trying to get a sense if we could assume or expect similar results out of your program.

Gabriel J. Daoud: You mentioned you did some signs there during the quarter and maybe starting to complete those those eight to nine wells, where I think results should be ready by the third quarter call, but just curious if you could maybe talk a little bit about some of the science work. There you know some of the.

Gabriel J. Daoud: The deans and the area look quite prolific on.

Gabriel J. Daoud: Oil productivity per foot basis, so just trying to get a sense, if we could assume or expect similar results out of your program.

Herbert S. Vogel: Yeah, Gabe, this is Herb. Yeah, we're quite excited about the Climb Back Anchorage, and we've already drilled a four-well pad and are completing it right now. I will say on the science side, we did take a vertical pilot hole down quite deep and did a lot of sidewall cores and high-end logs through that interval so we could assess all the intervals that are potentially prospective up there. But we're focused now on the development of those, initially the Dean, and those eight to nine wells this year, and the first four will be online during the second quarter. So it looks like a great play for us, and you know we have quite a few wells offsetting it to the southeast, plus the wells that came with the acquisition from Reliance.

Herb: Yeah, Gabe this is herb.

Herb: Yeah, we're quite excited about the Klondike acreage and we've already drilled a four well pad.

Herb: And completing you're right now are I will say on the science side, we did take a vertical pilot hole down quite deep and did a lot of sidewall cores and a high end blogs through that intervals. So we could assess all the intervals that are potentially prospective up there.

Herb: But we're focused now on the development of those initially the Din in those eight to nine wells this year and the first four will be online during the second quarter. So it looks like a great great play for US and you know we have quite a few wells offsetting it to the south East plus the wells we that came.

Herb: With the acquisition of reliance from Airlines.

Herbert S. Vogel: Yep, no, that's right. Thanks, Wade. That's helpful. I guess as a quick follow-up to that, just sticking to Klondike, 20,000 net acres, if you were to progress towards a true development program, is there any type of infrastructure spend that we should be thinking about up there?

Speaker Change: Yeah, No that's right, but thankfully that's helpful. I guess as a quick follow up to that just thinking declined 20000 net acres. If you were to progress towards a true development program is there any type of infrastructure spend that we should be thinking about up there.

Herbert S. Vogel: Well, there is quite a bit of infrastructure there, but mainly it's getting the gathering lines in place so we don't have to truck as much and getting the gas lines built to scale, which is a lot of the midstream, and then but otherwise, it's just pretty much normal equipment up there.

Speaker Change: There is quite a bit of infrastructure, there, but mainly it's the getting the gathering lines in place. So we don't have to truck as much and getting the gas lines built to the scale, which is a lot of the midstream.

And then but otherwise its just pretty much normal equipment up there.

Herbert S. Vogel: Okay, okay, great. And then just the last one, the South Texas tool to earn any additional color you can provide on that. Thanks, guys.

Speaker Change: Okay. Okay, Great and then just the last one the south Texas skills to earn any additional color you can provide on that thanks guys.

Herbert S. Vogel: Yeah, you know, a lot of people wonder how a drilled urn works if they're not familiar with it. And, you know, generally, a drilled urn is where you agree to drill a well or wells in return for acreage. In this case, we're going to operate and drill wells to gain a 50% working interest in around a 16,000 acre block, so that will give us about 8,000 net acres. The other details around that drilled urn are really kept confidential between us and the company that farmed it out to us.

Speaker Change: Yeah, you know a lot of people are wondering you know how does the drill to earn works if they're not familiar with it and.

Speaker Change: Generally a drill to earn its where you agree to drill a well or wells in return for acreage in this case, we're going to operate and drill wells to gain a 50% working interest and around 16000 acre block so that will get us about 8000 net acres.

Speaker Change: Other details around that drill to earn.

Speaker Change: Confidential between us and the.

Speaker Change: The company that farmed out to us.

Gabriel J. Daoud: Okay, okay. I got it. Thanks, guys.

Speaker Change: Yeah.

Speaker Change: Okay. Okay got it thanks guys.

Operator: Our next question comes from Tim Rezvan with KeyBank Capital Markets. Please proceed with your question.

Speaker Change: Our next question comes from Tim <unk> with Keybanc capital markets. Please proceed with your question.

Timothy A. Rezvan: Good morning, folks. Thanks for taking the time to answer the question. I want to follow up on Gabe's question on Klondike. You know, we did an analysis of the area, and you all have talked about the middle sprayberry and the Dean. The Wolf Camp A looks extremely strong with sort of offset results. And so I was curious, kind of among these three initial wells being completed, excluding the science well, can you talk about what intervals you're targeting and kind of maybe why you haven't talked about Wolf Camp A as a primary target on that acreage?

Tim: Hey, good morning folks thanks for taking the question I.

Tim: Wanted to follow up on Dave's question on Klondike.

Tim: You know we did analysis of the area and I know you all have talked about the middle Sprayberry and the Dean and the Wolfcamp a looks extremely strong with sort of offset results.

Speaker Change: And I'm, just curious kind of among these three initial wells being completed excluding the science well can you talk about what intervals are you targeting and kind of maybe why you haven't talked about the wolfcamp a is a primary target on that acreage.

Herbert S. Vogel: Sure, Tim, but one thing I want to correct you on is that there would be four producers, just one of them we took a pilot hole down first, then we plugged back in and drilled the lateral. So there are four wells there, just one of them we have that vertical that we just gathered data on. So, you know, it's great to hear that there's prospectivity in the Wolf Camp A. But I would say we are not counting that.

Speaker Change: Sure, Tim, but one thing I want to correct you on that there. They were there before producers just wanted when we took a pilot hole down first then we plug back and drill the lateral so there are four wells there just one of them we have that vertical.

We just got this data on.

Tim: So you know it's great to hear that there is prospectively in the Wolfcamp a I would say we are not counting that Ah if we're surprised in the thermal maturities higher for some reason. There then we expect it to be that'd be great news, but we're really counting on this being more of a migrated oil play, which I've talked about before.

Herbert S. Vogel: If we're surprised and the thermal maturity is higher for some reason there than we expected it to be, that would be great news. But we're really counting on this being more of a migrated oil play, which I've talked about before, which is oil that comes from a bit deeper in the basin and migrates into the sandstone intervals. And that's why they are so prolific up there.

Tim: Which as oil comes from a bit deeper in the basin and migrates into the sandstone intervals and that's why they are so prolific up there.

Herbert S. Vogel: Okay, and then are these initial four wells Dean? All Dean, or not? Yes, they are. They're all Dean wells.

Tim: Okay and then there are these initial four wells Dean I'll, Dean or yesterday, they're all Dean wells.

Tim: Okay.

Timothy A. Rezvan: Okay, that's great; I appreciate that. And then, as a follow-up, you know, I think the comments on the Brisco pad and the stacked pay opportunities are pretty interesting. Some other public companies are talking about that. I know it's early days from one pad, but, you know, the big marketplace debate was on the validity of your claims that you had 300 locations there. And I guess just to help kind of frame the resource: If the stacked pay proves to be something you can replicate, does that 300 location count kind of move up dramatically? I'm just trying to understand sort of what the significance is of this test that you do and that you disclosed. Thank you.

Speaker Change: Okay, that's great.

Speaker Change: I appreciate that and then a follow up.

Speaker Change: Comments on the on the Briscoe pattern.

Speaker Change: The stacked pay opportunities are a pretty interesting some some other public companies are talking about that.

Speaker Change: I know, it's early days for from one pad, but.

Speaker Change: A big marketplace debate was on the validity of your claims that you had 300 locations there and I guess just to help kind of frame the resource it.

If the stacked pay crews you know.

Speaker Change: To be something you can replicate.

Speaker Change: Is that 300 location count kind of move up dramatically I'm, just trying to understand sort of what the significance is of of this testing that you're doing that you disclosed. Thank you.

Herbert S. Vogel: Yeah, Tim, you know, I would say it's not that much of a big increment in the test. The only difference is really that the lower wells are fully bounded versus other places they've been half bounded, but we've had fully bounded wells in the upper interval on several other pads. The thing to note is these are spaced at about 625 feet, and we've done that before. These go between two different subtle differences in the landing zone in the upper Austin shock or the middle Austin shock and the upper interval that we developed.

Speaker Change: Okay, Yeah Tim.

I would say, it's not that much of a big increments in the test the only difference is really the.

Tim: Lower wells are fully bounded versus other places they've been half bounded but we've had fully bounded in the upper interval on several other pads.

Tim: The thing to note is these are spaced at about 625 feet and we've done that before.

Tim: These have go between two different subtle differences in the landing zone in the upper Austin chalk or the middle.

Tim: Middle Austin chalk and the upper interval that we developed.

Herbert S. Vogel: So it's, it's, it's just really exciting because of how productive they are, how oily they are, and how NGL-rich they are. And those wells on that one pad are between 11,600 and 14,500 feet long. So we didn't have difficulty executing there. And The other three are between 11,900 and 14,000 feet. So they're long laterals too, and that just really helps the economy also, and they're oil rich. So, really excited about it in that area. And you can see the strength of the wells and just how they started, but it's not like they're a really big step in any way, other than the bounding of the lower Austin shock well.

Tim: So it's it's a it's just really exciting because of how productive they are how oily they are and how our NGL rich they are and those wells on that one pad or between 11000 and 614500 feet long. So we didn't have difficulty executing there and the other three are between 11900 and <unk>.

Tim: 14000 feet, so theyre long laterals too and that just really helps the economics also and they're they're all right. So really excited about it on on that area and you can see the strength of the wells and just how they started.

Tim: But it's not like there a really big step in any way other than the bounding of the lower Austin chalk wells.

Tim: Yeah.

Timothy A. Rezvan: Okay, I appreciate the color. Thank you.

Okay I appreciate the color. Thank you.

You bet.

Operator: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Our next question comes from Oliver Huang with Tudor Pickering Holt & Co. Please proceed with your question.

Speaker Change: As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.

Our next question comes from Oliver <unk> with Tudor Pickering Holt <unk> co. Please proceed with your question.

Oliver Huang: Good morning all, and thanks for taking my questions. I just wanted to start on the efficiencies.

Oliver: Good morning, all and thanks for taking my questions.

Oliver: Just wanted to start on the efficiencies certainly good to see the continued capture of there. It was just kind of wondering of what you all have kind of changed in Q1.

Oliver Huang: Certainly good to see the continued capture there. I was just kind of wondering what you all have kind of achieved in Q1. Is it something that's already been baked in for new plant activity starting in Q2 when you're kind of providing the quarter ahead of all your outlooks? Or is there kind of a wait and see aspect to it since it's kind of only a quarter before kind of making that fully on that incrementally classroom page that we saw?

Oliver: Is it something that's already been baked in for new plant activity starting in Q2, when you're kind of providing the quarter ahead of full year outlooks or is there a kind of a wait and see aspect is to it since it's kind of all only a quarter before kind of thinking that fully on that incrementally a classification that we saw.

Herbert S. Vogel: Yeah, Oliver, you know, when we change guidance, that means we've got a lot of confidence that it's appropriate to include it. So we're continually working new aspects of efficiencies in, and we have quite a laundry list that our team's running through right now. That looks quite attractive, but we're not counting ones unless we see them working. So the big ticket items for us right now are the increased substitution of natural gas for diesel and frac pumping operations, those DGBs. Fleets that we're employing, and Wade mentioned those in his prepared remarks.

Speaker Change: Yeah, Aldo you know when we change guidance that means we've got a lot of confidence that.

Speaker Change: It's appropriate to include it so we're continually working new aspects of efficiencies and we have quite a laundry list that our teams running through right now that looks quite attractive, but we're not counting ones unless we see them working so the big ticket items for US right now are the increased substitute.

Speaker Change: Natural gas for diesel and Frac pumping operations, both D. G beef fleets that we're employing and Wade mentioned those on the prepared remarks and that has the added benefit of the reduced C. O two emissions from completion operations.

Herbert S. Vogel: And that has the added benefit of reduced CO2 emissions from completion operations. And then we're seeing quite a bit in the way of efficiency gains in drilling. So this translates to the number of feet we drill per day. There really is more advanced and reliable downhole equipment. So you don't have to trip the bit as much. And we're using a rotary steerable assembly, so we can keep the bit on the bottom longer. That also helps.

And we're seeing quite a bit in the way of efficiency gains in drilling. So this translates to a number of feet we drilled per day.

They're really it's more advanced and reliable downhole equipment. So you don't have to trip a bit as much and we're using rotary steer bull assemblies. So we can keep the bid on bottom longer that that helps also.

Herbert S. Vogel: Then on the cost efficiency side, a big one is using existing central production facilities that are now sitting there with some latent capacity. And that avoids the need for capital to build new facilities. We knew all along about what was going to happen, and we're just starting to see it really happen in a pretty significant way now. And then we're also bundling some services between South Texas and Permian. So we've got the benefits of the scale of the full operation between the two areas, and that helps.

Speaker Change: Then on the efficiency of our cost efficiency side, a big one is using.

Speaker Change: Using existing central production facilities that now are sitting there with some latent capacity.

Speaker Change: And that avoids the need for capital into new facilities. We we knew all along that that was going to happen and we're just starting to see it really happened in a pretty.

Speaker Change: Pretty significant way now.

Speaker Change: And then we're also bundling some services between South, Texas and Permian. So we've got the benefits of the scale of the full operation between the two areas that helps and then you know how activity as reduced so rig counts are down frac spread counts are down so we're.

Herbert S. Vogel: And then you know how activity has reduced, so rig counts are down, track spread counts are down, so we're actively re-bidding services and seeing discounts that way. And I can't tell you when that'll stop or how much more we'll get there, but that obviously is a contributor. So that's a list of things that I'd say we're highly confident in and not a list of things that we're still pursuing.

Speaker Change: Actively rebidding services, and seeing discounts that way and I can't tell you when that will stop or how much more we'll get there but that obviously is a contributor so that that's that's a list of things that I'd say, we're highly confident then and not the list of things that we're still pursuing.

Speaker Change: Yeah.

Oliver Huang: Okay, that's super helpful. And maybe for a follow up on what you mentioned earlier, some of the details on that jewel to earn are confidential. But I just wanted to try and clarify, are you all responsible for 100% of the DNC for that 50% working interest that you kind of referenced? And are there any sort of details in terms of how many wells you're planning to do on that acreage this year? And if that's already embedded within the four-year well count of the South Texas region?

Speaker Change: Okay. That's super helpful and maybe for a follow up on and then you mentioned earlier some of the details are confidential on agile to earn but I just wanted to try and clarify are you all responsible for 100% of the D&C for that 50% working interest that you kind of reference and is there any sort of details in terms of.

Speaker Change: How many wells you're planning to do on that acreage this year and if that's already embedded within the full year, well count out of the South Texas region.

Herbert S. Vogel: Yeah, okay, you got two questions there. The first, you know, we can't reveal or divulge details about the deal, but I'd say no is the simple answer to your first question there. No, we're not paying for everything for 50%. And then the second question was, have we baked this in? Yeah, we knew the deal was far enough along when we set the budget in February that we integrated that into our plans for the year, the three wells that we'll drill there this year.

Speaker Change: Yeah, Okay, you've got two questions here. The first thing that we can't reveal or divulge details on the deal, but I would say no is the simple answer to your first question. There are no we're not saying everything for a fit for the 50%.

Speaker Change: And then the second question was have we baked this in yeah. We knew the deal was far enough along when we set the budget in February that we integrated that into our plans for the year.

Speaker Change: The three wells that we'll drill there this year.

Oliver Huang: Awesome. Thanks for the time, guys.

Speaker Change: Awesome. Thanks for the time guys.

Speaker Change: You bet.

Speaker Change: Yeah.

Operator: There are no further questions at this time. I would now like to turn the floor back over to Herb Vogel for closing comments.

There are no further questions at this time I would now like to turn the floor back over to Herb Vogel for closing comments.

Herbert S. Vogel: Hi, thanks, Maria. And thank you for joining us. We look forward to seeing a number of you at upcoming events. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Herbert S. Vogel: Hi, Thanks, Maria and thank you for joining us and we look forward to seeing a number of you at upcoming events.

Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Speaker Change: [music].

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Right.

Speaker Change: [music].

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change:

Speaker Change:

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Okay.

Speaker Change: Hum.

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: Yes.

Speaker Change: Mhm.

Speaker Change: Okay.