Q1 2024 Enservco Corp Earnings Call

Speaker Change: [music].

Okay.

Operator: Greetings, and welcome to the Enservco 2024 First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A 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. Please note this conference is being recorded. And I will now turn the conference over to your host, Wes Harris, Investor Relations for Enservco. Wes, you may begin.

Speaker Change: Greetings and welcome to the <unk> 'twenty 'twenty four first quarter earnings conference call. At this time all participants are in a listen only mode. A question answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone Keypads. Please note this conference.

Speaker Change: Is being recorded.

Speaker Change: The conference over to your host Wes Harris Investor Relations for <unk>, whereas you may begin.

Wes Harris: Well, good morning, and thank you, operator. We welcome everyone to Enservco's 2024 first quarter earnings conference call. Presenting on behalf of the company today are Rich Murphy, our executive chairman, and Mark Patterson, our chief financial officer. As a reminder, matters discussed during this call may include forward-looking statements that are based on management estimates, projections, and assumptions as of today's date and are subject to risks and uncertainties disclosed in the company's most recent 10-K as well as other filings with the SEC.

Speaker Change: Well good morning, and thank you operator welcome everyone to our surf goes 2024 first quarter earnings conference call presenting on behalf of the company. They are rich Murphy, our executive Chairman and Mark Patterson, Our Chief Financial Officer.

Speaker Change: As a reminder, matters discussed during this call may include forward looking statements that are based on management's estimates projections and assumptions as of todays date and are subject to risks and uncertainties disclosed in the company's most recent 10-K as well as other filings with the SEC.

Wes Harris: The company's business is subject to certain risks that could cause actual results to differ materially from those anticipated in its forward-looking statements. Enservco assumes no obligation to update forward-looking statements that become untrue because of subsequent events.

Speaker Change: The company's business is subject to certain risks that could cause actual results to differ materially from those anticipate in its forward looking statements.

Speaker Change: In Serco assumes no obligation to update forward looking statements that become untrue because of subsequent events.

Wes Harris: I'll also point out that management's ability to respond to questions during this call is limited by SEC Regulation FD, which prohibits selective disclosure of material non-public information. This conference call also includes references to certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in our earnings release. A webcast replay of today's call will be available after the call. Instructions for accessing the webcast are available in the R&D... So with that, I'll turn the call over to Rich Murphy.

Speaker Change: I'll also point out that management's ability to respond to questions. During this call is limited by SEC regulation, G, which presents which prohibits selective disclosure of material nonpublic information.

Speaker Change: This conference call also includes references to certain non-GAAP financial measures reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in our earnings release.

Speaker Change: A webcast replay of today's call will be available after the call instructions for accessing the webcast are available in the earnings release, so with that I'll turn the call over to rich Murphy rich.

Richard A. Murphy: Thanks, Wes. Good morning, everyone.

Speaker Change: Okay.

Thanks, Wes good morning, everyone. We appreciate you joining us for today's call. We began 2024 with solid first quarter results that outperformed last year on a number of key financial metrics, including revenues segment and operating profit and net earnings as well as 125% year over year increase in adjusted.

Richard A. Murphy: We appreciate you joining us for today's call. We began 2024 with solid first quarter results that outperformed last year on a number of key financial metrics, including revenues, segment and operating profit, and net earnings, as well as a 125% year-over-year increase in adjusted EBITDA. Significantly benefiting this year's first quarter was substantial profit growth in our completion services segment, which is primarily comprised of our frack water heating business. As a reminder, this business is highly seasonal, with any potential profits focused on the first and fourth quarters. Financial success during those periods is dictated by winter weather; the colder for longer, the better.

Speaker Change: <unk> EBITDA <unk>.

Speaker Change: Benefiting this year's first quarter with substantial profit growth in our completion services segment.

Primarily comprised of our Frac water heating business as a reminder, this business is highly seasonal with any potential profit focused on the first and fourth quarters.

Speaker Change: Financial success during those periods is dictated by winter weather.

Speaker Change: Colder for longer the better.

Richard A. Murphy: As such, we were pleased to take advantage of the colder winter weather on average for the first quarter of this year versus the same quarter last year. The first quarter of 2024 also benefited from our concerted efforts over the past couple of years to drive increased efficiency across the business. These efforts have been multifaceted and include shutting down our North Dakota operations in 2023 and reallocating assets to more productive operating areas that offer increased potential for revenue and profit growth.

Speaker Change: As such we were pleased to take advantage of the colder winter weather on average for the first for this year's first quarter versus the same quarter last year.

Speaker Change: The first quarter of 2024 also benefited from a concerted effort over the past couple of years to drive increased efficiency across the businesses. These efforts have been multifaceted, including shutting down our North Dakota operations in 2023, and reallocating assets to more productive operating areas that offer the increased potential for revenue and profit growth.

Richard A. Murphy: In addition to these efforts, we executed on several opportunities to right-size and take costs out of the business. The success of our combined efforts contributed to a 10% increase in our quarterly gross profit margin. In addition, the first quarter benefited from an 18% year-over-year decrease in G&A expense, primarily due to lower legal costs.

Speaker Change: In addition to these efforts we executed on several opportunities to rightsize and take cost out of the business.

Speaker Change: The success of our combined efforts contributed to a 10% increase in our quarterly gross profit margin.

Speaker Change: In addition, the first quarter benefit of 8% to 18% year over year decrease in G&A expense, primarily due to lower legal costs. We continue to focus on ways to improve margins and deliver consistent profitability as we focus on improving the pricing environment and gaining market share in the basins, where we operate.

Richard A. Murphy: We continue to focus on ways to improve margins and deliver consistent profitability as we focus on improving the pricing environment and gaining market share in the basins where we operate. While improved seasonal conditions benefited our Frack Water Heating Services business in the first quarter, this does not overshadow another key highlight of the first quarter, that being the announcement of our intention to complete the acquisition of Buckshot Trucking by the end of next month.

Speaker Change: While improved seasonal conditions benefited through our frac water heating services business in the first quarter. This is not overshadow. Another key highlight of the first quarter that being the announcement of our intention to complete the acquisition of buckshot trucking by the end of next month.

Richard A. Murphy: As we discussed in our last call, our focus on deleveraging the balance sheet and improving market share and margins in the basins in which we operate has enabled us to begin the growth phase of the company's turnaround. We view Buckshot as a great first step in transitioning the company toward a more consistent cash flow generator. As important, we believe adding Buckshot to our existing business will prove transformational as it helps us transition away from a primarily seasonal business, subject to commodity risk, to a logistics business that generates strong year-round cash flow with significant growth prospects. I would note the transition will not require substantial new overhead or capital.

Speaker Change: As we discussed in our last call our focus on deleveraging the balance sheet and improving market share and margins in the basins in which we operate has enabled us to begin the growth phase of the company's turnaround.

Speaker Change: We use it we view buckshot is a great first step in transitioning the company towards a more consistent cash flow generator as important we believe adding <unk> to our existing business will prove transformational as it helps us transition away from a primarily seasonal business subject to commodity risks.

Speaker Change: Just a business that generates strong year round cash flow with significant growth prospects I would note the transition will not require a substantial new overhead for capital.

Richard A. Murphy: So with that, I'm going to have Mark take you through some of the quarterly numbers before I provide a few closing statements. Mark. Thanks, Richard.

Speaker Change: So with that I'm going to have Mark take you through some of the quarterly numbers apply provide a few closing statements.

Speaker Change: <unk>.

Richard A. Murphy: Thanks Rich.

Mark K. Patterson: Our first quarter 2024 heating season saw a surge in cold days in January within the Pennsylvania and Colorado regions. These coal blasts primarily impacted our completion services.

Mark K. Patterson: First quarter 2024 heating season got surge in cold days in January within both Pennsylvania, and Colorado regions.

Mark K. Patterson: These coal black primarily impacted our completion services.

Mark K. Patterson: As Rich mentioned, our seasonal-focused brack water heating business enjoyed solid growth from 2023 that was mostly driven by increased activity levels and pricing adjustments in our Colorado and Pennsylvania operations, on the production segment side. Our hot oiling and acidizing operations saw a bit of weakness in demand that we view as temporary and mostly driven by some decreased demand for our acidizing service. The net result was first quarter 2024 revenue of $9.8 million.

Speaker Change: As rich mentioned, our seasonal brokers frac water heating business enjoyed solid growth.

Speaker Change: 23 that was mostly driven by increased activity levels and pricing adjustments.

Speaker Change: Colorado, and Pennsylvania operations.

Speaker Change: On the production segment side.

Speaker Change: Our hot oiling and advertising operations saw a bit of weakness in demand that we view as temporary and mostly driven by decreased demand for advertising services.

Richard A. Murphy: The net result was first quarter 2024 revenue of nine 8 million that was 10% higher than the first quarter of 2020 three.

Mark K. Patterson: That was 10% higher than the first quarter of 2023. However, on a segment basis, production services revenue was lower at $2.5 million compared to $2.9 million a year ago. First quarter 2024 completion services revenue increased to $7.3 million from $6 million in 2023. First quarter adjusted EBITDA came in at $2.2 million, compared to $1 million in the first quarter of 2023, a year-over-year improvement of 125%. Net income in the first quarter was $0.8 million, or $0.03 per diluted share, versus a net loss of $1 million, or $0.07 per diluted share, in the same quarter last year.

Richard A. Murphy: On a segment basis production services revenue was lower at 2.5 million compared to $2 9 million a year ago.

First quarter 2024 completion services revenue increased seven 3 million from $6 million in 2023.

Richard A. Murphy: First quarter adjusted EBITDA came in at $2 2 million.

Richard A. Murphy: <unk> two 1 million in the first quarter 2023, a year over year improvement of 125%.

Richard A. Murphy: Net income in the third quarter was 8 million or three cents per diluted share versus a net loss of 1 million or seven cents per diluted share in the same quarter last year.

Mark K. Patterson: We remain focused on right-sizing our business and continue to evaluate and execute opportunities to reduce costs across the business. As we've discussed in the past, we've seen a significant decline in our SG&A expenses over the past couple of years, and we're getting closer to our internal growth and annual SG&A run rate of $3.6 million. That excludes some one-time legal and non-cash expenses, such as stock compensation expense. I would like to remind our shareholders that the previously filed class action lawsuit was dismissed, and plaintiff's counsel has indicated there will be no further appeals.

Richard A. Murphy: We remain focused on right sizing, our business and continue to evaluate and execute opportunities.

Richard A. Murphy: These costs across the business.

Richard A. Murphy: As we've discussed in the past we've seen significant decline in our SG&A expenses over the past couple of years, and we're getting closer to our internal growth and annual SG&A run rate of $3 6 million.

Richard A. Murphy: That excludes some onetime legal and non cash expenses, such as stock compensation expense.

Richard A. Murphy: I would like to remind our shareholders that the previously filed class action lawsuit was dismissed in plaintiff's counsel has indicated there'll be no further appeals.

Mark K. Patterson: As you know, the cost of that defense has been significant over the past year. Turning to the balance sheet in 2023, we made material progress in reducing our debt levels. We remain focused on improving the financial position of the company, including further reducing our overall reliance on seasonally focused business activity. The Buckshot Acquisition clearly places us on the right path, and we will look for additional accretive opportunities that enhance the balance sheet through increased year-round cash flow, visibility, and provide incremental opportunities for profitable growth. So with that, I'll turn the call back over to Rick.

Richard A. Murphy: As you know caused that dependents with significant upside here.

Richard A. Murphy: Turning to the balance sheet in 2023, we've made material progress in reducing our debt levels.

Richard A. Murphy: We remain focused on improving the financial position of the company.

Richard A. Murphy: Adding further reducing our overall reliance on seasonal focused business activities.

Speaker Change: The Buckshot acquisition clearly places us on the iPad.

Speaker Change: For additional accretive opportunities that enhance our balance sheet through increase year around cash flow.

Speaker Change: [noise] ability and provide incremental opportunities.

Speaker Change: Profitable growth.

Speaker Change: So with that I'll turn the call back over to Rick.

Rick: Thank you Mark.

Richard A. Murphy: The strategic actions we took in 2023 placed us in a much better position as we moved into 2024, further supported by a strong heating season in the first quarter and the related positive impact of our frack water heating service.

Rick: The strategic actions, we took in 2023 place us in a much better position as we moved into 2024 further supported by a strong heating season in the first quarter and the related positive impact of our Frac water heating services business we.

Richard A. Murphy: We posted material financial improvement year over year, and we continue to have a solid outlook, not only on the completion service side of the business, but also in our production services segment. We base our view on customer feedback, which points to further demand growth for our services, combined with our strategic efforts over the past year to right-side the business, further rationalize the position of our assets, and enhance our financial position.

Rick: We posted material financial improvement year over year, and we continue on a solid outlook not only on the completion services side of the business, but also in our production services segment, we based our view on customer feedback which points to further to bad drilling for our services combined with our strategic efforts over the past year to rightsize the business further rationalize the business.

Rick: Our assets and enhance our financial position, we feel we are in good position to meet increased demand.

Richard A. Murphy: We feel we are in a good position to meet increased demand. We enjoyed a solid start to 2024 and really appreciate our team's efforts that allowed us to capitalize on the solid market conditions presented in the first quarter. However, we continue to recognize the importance of moving our overall business away from the over-reliance on cold weather conditions that occur substantially during the first and fourth quarters of the year. In short, we clearly recognize the importance of adding a non-seasonal business to our portfolio with greater growth potential and synergies that our current service offering does not offer.

Rick: We enjoyed a solid start to 2024 and are we.

Rick: Really appreciate our teams efforts to allow us to capitalize on the solid market conditions presented in the first quarter. However, we continue to recognize the importance of moving our overall business away from the over reliance on cold weather conditions.

Rick: That of course substantially during the first and fourth quarters of the year and short.

Rick: We clearly recognize the importance of adding a non seasonal business for our portfolio with greater growth potential and the synergies there are current service offerings.

Richard A. Murphy: As mentioned in my beginning comments, we previously announced the acquisition of Buckshot as being truly transformative for Enservco and its shareholders. In short, Buckshot provides a strong complement to our current service offerings with the added benefit of not being winter weather dependent.

Rick: Do not offer as mentioned in my beginning comments.

Rick: We previously announced the acquisition of buckshot as being truly transformation transformative for Cisco and its shareholders in short.

Rick: Buckshot provides a strong complement to our current service offerings with the added benefit of not being winter weather dependent.

Richard A. Murphy: Buckshot will also provide a substantial improvement in operational and financial visibility, which benefits our business, shareholders, and other stakeholders. We are targeting to close the transaction by the end of June and are currently evaluating financial alternatives for the transaction. We look forward to evaluating and executing additional opportunities that further evolve our business away from seasonal to a more year-round business activity to drive long-term cash flow generation, profitability, and shareholder value. In conclusion, we remain focused on executing our multifaceted plan to optimize our operations and build a more substantial business model with reduced debt.

Rick: She will also provide a substantial improvement in operational and financial visibility, which benefits our business shareholders and other stakeholders. We are targeting to close the transaction by end of June our current of that currently evaluating financing alternatives for the transaction.

Speaker Change: We look forward to evaluating evaluating and executing additional opportunities that further evolve our business away from seasonal to a more year round business activity to drive long term cash flow generation profitability and shareholder value.

Speaker Change: In conclusion, we remain focused on executing on our multifaceted plan to optimize our operations build a more substantial business model with reduced debt.

Richard A. Murphy: Supporting our efforts is the continued strength of our current operations. In addition, we look forward to completing the Buckshot acquisition and quickly integrating their team's assets and operations into our broader business. Finally, we will continue to evaluate opportunities to build further visibility and enhance financial performance for the benefit of the company and its shareholders. With that, thanks again for joining us on the call today. We will now be happy to take any questions. Operator?

Speaker Change: Our efforts in that continues is the continued strength of our current operations. In addition, we look forward to completing the buckshot acquisition and quickly integrated the 13th of assets and operations into our broader business.

Finally, we will continue to evaluate opportunities to build further visibility and enhanced financial performance for the benefit of the company and its shareholders with that thanks again for joining us on the call today, we will now be happy to take any questions operator.

Operator: Thank you. At this time, we'll be conducting a question and answer session. If you would 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 you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: Thank you at this time, we'll be conducting a question and answer session.

Speaker Change: I would 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.

Speaker Change: You May press Star two if you would like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, please press star one on your phone at this time, if you wish to ask a question on one moment. Please while we poll for questions.

Operator: Once again, please press star 1 on your phone at this time if you wish to ask a question. And one moment, please, while we pull for questions. And we did have a question come in today. The first question is coming from Jeff Grampp from Alliance Global Partners. Jeff, your line is live.

Speaker Change: And we did have a question come in today. The first question is coming from Jeff Grant from Alliance Global Partners, Jeff Your line is live.

Jeffrey Campbell: Good morning, guys.

Jeffrey Scott Grampp: A couple of questions on production services for you, Rich. So I know you guys commented that the acidizing was a little bit weaker. You know, revenue is still up sequentially, though. But I'm just kind of curious how you guys kind of handicap future performance there. Is this kind of a steadyer state than Q1 was? Or can you get back to some of the higher revenue levels from last year where you were pushing, you know, kind of three million a quarter or so from that segment?

Jeffrey Campbell: A couple of questions on production services for you rich. So I know you guys commented that that asset is in was a little bit weaker yeah revenue was still up sequentially, though but I'm just kind of curious how you guys kind of handicap future performance. There is this kind of a steadier state where it where Q1 was that or can you get back to you now.

Jeffrey Campbell: The more revenue levels from from last year, where you were pushing past 3 million a quarter or so for that segment.

Richard A. Murphy: Yeah, I think the way to think about our hotline businesses is predominantly in Texas. I'd say in 85... 85% to 90% of our assets are in Texas, in the southwest basins of Jordan to Carrizo, that they had some asset weakness in November and December, which is somewhat seasonal. And then it carried over to January.

Speaker Change: Yeah, I think the way to think about our our Halloween business was predominantly is in in Texas. That's in 85.

Speaker Change: 85% to 90 for acids are in Texas, and the southwest basins of the Georgia degrees out there.

Speaker Change: They had some asset weakness in in November and December which is somewhat seasonal and then pulse it carried over to January but in general I would I would look at that business has a $3 million revenue business pretty consistently we're back to that trend right.

Richard A. Murphy: But in general, I would, I would look at that business as a $3 million revenue business pretty consistently. We're back to that trend rate. And, you know, it's basically a nice cash flow generator. And the asset stuff, the asset stuff will be a little more up and down at times, and we just had a slight downtick. And the other 10%, I will say on the upside of the hotline. We have started huddling efforts in Pennsylvania, which is starting to gain traction, and you know the rates there are two to two and a half times what they are in Texas. Consistency of that work is not what it is in Texas So that's the, I think, again, $3 million in revenue is probably a good number.

Speaker Change: And it's.

Speaker Change: Basically a.

Speaker Change: A nice cash flow generator and.

Speaker Change: As it's doubtful that itself will be a little more.

Speaker Change: Up and down at times, and we just had the.

Speaker Change: A slight downtick in the other 10% I will say on the upside of the hotline we have started.

Speaker Change: Efforts in Pennsylvania, which is starting to.

Speaker Change: <unk> gained traction and you know that the rates there are two to two and I have to ask what they are in Texas. The consistency of that work is not what it is in Texas. So we're not going to have as big a fleet I'd never gonna have to did you sleep there, but it is very high margin. So.

Speaker Change: So that's the I think again.

Speaker Change: $3 million revenue business is probably a good number.

Richard A. Murphy: Okay, great. And then on the margin side, you know, even though the revenue was down a bit year over year, you guys still have some nice margin performance there. Is some of that maybe the Pennsylvania contribution that you just mentioned, Rich? Or how are you guys kind of seeing the margin progression on that?

Speaker Change: Okay, Great and then on the margin side, you know, even though the revenue was down a bit year over year are you guys still have some nice margin performance. There is there's some of that maybe Pennsylvania contribution that you just mentioned rich or how are you guys kind of seeing the margin progression of that business.

Richard A. Murphy: On the production side, it's just price primarily with, I mean, with the little uptick from Pennsylvania. That's kind of the mix.

Speaker Change: On the on the production side, it's just price primarily with I mean with the little uptick in Pennsylvania.

Richard A. Murphy: I'd say about 80% is probably just price in our Texas base, and then 20% is the kick in from Pennsylvania, which is a much higher margin. And we will probably continue to see that probably going forward because we have a very strong market share position in those basins. And, you know, we're going to continue to push prices. We are not, it's not a huge cost to our customers for the service we provide. So I think there is more opportunity for them there.

Speaker Change: That's that's kind of the mix I'd say about 80% is probably just price.

Speaker Change: But they are in our Texas basin, and 20% is the kick in from Pennsylvania, which is much higher margin.

Speaker Change: And we will continue to see that probably going forward.

Speaker Change: We have a very strong market share position in those basins in Oregon.

Speaker Change: We're going to continue to push price as time goes on we were not a it's not a huge cost to our customers. The service. We provide so I think there is more opportunity there.

Jeffrey Scott Grampp: Okay, great. And on the acquisition side, and you mentioned you look to close this in another month or two, can you kind of connect the dots for us as kind of the next steps? I know you have the vote and financing. Does one necessarily need to come before the other or, you know, any kind of guidance or color you can give as to how you see the next couple months planned out?

Speaker Change: Okay, great and on the acquisition side and you mentioned you look to close this in another.

Speaker Change: Month, or two can you kind of connect the dots for US is kind of the next steps that you have the.

Speaker Change: Then in financing that there's one necessarily need to come before the other or just.

Speaker Change: Any kind of guidance or color you can give as to how you see the next couple of months playing out.

Richard A. Murphy: Yeah, it'll be we need a shareholder vote to approve it. [inaudible] We may fund sooner than that and just wait for the vote with Jeffrey Grampp, Unknown Attendee, Mark Patterson, Jay Pfeiffer, Unknown Attendee, Mark Patterson, the vote. So we're pretty confident that this thing will close in early July. The financing is not gonna be that difficult. We're already going down that road

Speaker Change: Yeah, that'd be when each shareholder vote to approve a because we're in a it's a 5 million dollar transactions as we noted 1.25, but it is going to be to equity the buckshot orders you're gonna take an entry 0.75 days is cash.

Speaker Change: So will we.

Speaker Change: We have to obviously put a proxy out that's our shareholders' meeting works aiming for that at the end of June early July then as soon as that happens we should be able to close we may.

Speaker Change: We made fun sooner than that and just wait for the boat with.

Speaker Change: If the vote doesn't go through that the deal will go through but obviously just.

Speaker Change: Just to be clear.

Speaker Change: The vote requires 50% of a quorum.

Speaker Change:

Speaker Change: And as the largest shareholder I'll be going forward.

Speaker Change: Other insiders, so we basically have the.

Speaker Change: The vote. So we're pretty confident that this thing will close and it you.

Speaker Change: Early July the financing is not going to be that difficult or.

Speaker Change: We're already going down that route.

Jeffrey Scott Grampp: Okay, great. Best of luck, and we'll stay tuned. Thanks, Rich.

Speaker Change: Okay, Great best of luck and we'll stay tuned thanks rich.

Speaker Change: Gotcha.

Operator: Thank you. And once again, it is Star One if you wish to ask a question today. And there were no other questions from the lines at this time. I will now hand the call back to Rich Murphy for closing remarks.

Speaker Change: Thank you don't once again it is star one if you wish to ask a question today.

And there were no other questions from the lines at this time I will now hand, the call back to rich Murphy for closing remarks.

Speaker Change: Okay.

Richard A. Murphy: I just want to, on behalf of myself, a large shareholder, and everyone on the call who is also one of these shareholders, it's been a, it's been a long road to get from our $36 million in debt to where we are today. And I appreciate all the patience, but we are really, you know, since I jumped into this seat in September of 2020, I can't think of a better position that this company has been in since then.

Speaker Change: Well I just wanted to on behalf of myself, a large shareholder and everyone on the call. It's also on the.

Speaker Change: Shareholders its been a its been.

Richard A. Murphy: It's been a long road to get from our 36 million in debt to where we are today and I appreciate all the patients, but we are really well.

Richard A. Murphy: And so I jumped in the seat in September of 2020, I can't think of a better positioned company spending and since then so I'm really looking forward to closing the books shot deal and then you know transforming this business to an energy logistics company and being a dominant player in that space. So I appreciate all your patience and look forward to updating you on.

Richard A. Murphy: So I'm really looking forward to closing the buckshot deal and then, you know, transforming this business into an energy logistics company and being a dominant player in that space. So I appreciate all your patience and look forward to updating you on the progress of that as we move forward.

Speaker Change: And on the progress of that as we move forward. Thanks again.

Operator: Thank you. This does conclude today's conference. You may disconnect your lines at this time and have a wonderful day. Thank you for your participation.

Speaker Change: Thank you. This does conclude today's conference you may disconnect. Your lines at this time and have a wonderful day. Thank you for your participation.