Q2 2024 Methanex Corp Earnings Call

Operator: Update Disguidance Between Quarters. For clarification, any references to Revenue, Ibiza, Adjusted Ibiza, Cash Flow, Adjusted Income, or Adjusted Earnings for Share, Mayden Today's remarks reflect our 63.1% economic interest in the Atlas facility, our 50% economic interest in the Egypt facility, and our 60% interest in water friendship. In addition, we report adjusted Ibiza and adjusted that income to exclude the market impact on share-based compensation, and the impact of certain items associated with specific identified effects.

For clarification any references to revenue EBITDA adjusted EBITDA cash flow adjusted income or adjusted earnings per share made in today's remarks reflect our 63, 1% economic interest in the Atlas facility, our 50% economic interest in the Egypt facility and our 60% interest in waterfront shipping.

In addition, we report adjusted EBITDA and adjusted net income to exclude the mark to market impact on share based compensation and the impact of certain items associated with specific identified events.

Operator: These items are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP, and therefore unlikely to be comparable to similar measures presented by other companies. We report the non-gap measures in this way because we believe they are a better measure of underlying operating performance, and we encourage analysts covering the company to report their estimates in this manner.

Items, our non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP and therefore unlikely to be comparable to similar measures presented by other companies. We report. These non-GAAP measures in this way because we believe they are a better measure of underlying operating performance.

Speaker Change: And we encourage analysts covering the company to report their estimates in this manner I would now like to turn the call over to Methanex is president and CEO, Mr. Rich Sumner for his comments and a question and answer period.

Sarah Herriott: I would now like to turn the call over to Methanex's President and CEO, Mr. Rich Thumbner, for his comment and a question-and-answer period.

Sarah Herriott: is guided between quarters. For clarification, any references to revenue, EBITDA, adjusted EBITDA, cash flow, adjusted income, or adjusted earnings per share made in today's remarks reflect our 63.1% economic interest in the Atlas facility, our 50% economic interest in the Egypt facility, and our 60% interest in waterfront shipping. In addition, we report Adjusted EBITDA and Adjusted Net Income to exclude the mark-to-market impact on share-based compensation and the impact of certain items associated with specific identified events.

Richard W. Sumner: Thank you, Sarah, and good morning, everyone. We appreciate you joining us today as we discuss our second quarter 2024 results. Our second quarter average realized price of $352 per ton and produced sales of approximately $1.6 million, generated adjusted EBITDA of $164 million, and adjusted net income of $6.5 million. Adjusted EBITDA was higher compared to the first quarter of 2024, primarily due to a higher average realized price. Our second quarter was negatively impacted by $13 million of G3 delay costs recognized in Adjusted EBITDA, which was comprised of costs associated with monthly utility pay contracts and employee costs. Excluding these G3 costs, adjusted EBITDA would have been $177 million.

Rich Sumner: Thank you, Sarah, and good morning, everyone. We appreciate you joining us today as we discuss our second quarter of 2024 results. Our second quarter average realized price of $352 per tonne, and produced sales of approximately 1.6 million tons, generated adjusted EBITDA of $164 million, and adjusted net income of 62 cents per share. Adjusted Ibiza was higher compared to the first quarter of 2024, primarily due to a higher average realized price. Our second quarter was negatively impacted by $13 million of G3 delay costs, recognizing adjusted Ibiza, which was comprised of costs associated with monthly utilities pay contracts and employee costs.

Sarah Herriott: These items are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. We report these non-GAAP measures in this way because we believe they are a better measure of underlying operating performance, and we encourage analysts covering the company to report their estimates in this manner. I would now like to turn the call over to Methanex's President and CEO, Mr. Rich Sumner, for his comments and a question and answer period. Thank you, Sarah, and good morning, everyone. We appreciate your help.

Richard W. Sumner: Thank you Sarah and good morning, everyone.

Richard W. Sumner: Appreciate you joining us today as we discuss our second quarter 2024 results are.

Richard W. Sumner: Our second quarter average realized price of $352 per ton and produce sales of approximately one 6 million tons generated adjusted EBITDA of $164 million and adjusted net income of 62 cents per share adjusted.

Richard W. Sumner: Adjusted EBITDA was higher compared to the first quarter of 2024, primarily due to a higher average realized price our second quarter was negatively impacted by $13 million of G. III delay cost recognized in adjusted EBITDA, which was comprised of costs associated with monthly utilities take or pay contracts.

Richard W. Sumner: <unk> costs, excluding the G. III. These G III costs adjusted EBITDA would have been $177 million.

Rich Sumner: Excluding the G3, these G3 costs, adjusted Ibiza would have been $177 million.

Richard W. Sumner: The safe restart of G3 continues to be our company's top priority. During the quarter, the G3 team completed the repair to the autothermal informer and implemented conditions to allow us to progress back into startup. I'm very pleased to report that yesterday we reached first methanol production from G3, and we expect the plant to ramp up to full rates in the coming weeks. The safety performance of our team and partners on the T3 project has been outstanding, and I would like to extend my personal thanks to the team for their continued hard work and dedication to completing this project safely.

Rich Sumner: The safe restart of G3 continues to be our company's top priority. During the quarter, the G3 team completed the repair to the auto thermal informer and implemented conditions to allow us to progress back into startup. I'm very pleased to report that yesterday we reached first Beth and all production from G3, and we expect the plan to ramp up to full rates in the coming weeks.

Speaker Change: The safe restart up Q3 continues to be our company's top priority during the quarter. The G. III team completed the repair to the auto thermal and farmer and implemented conditions to allow us to progress back into startup.

Speaker Change: I'm very pleased to report that yesterday, we reached first methanol production from tier three and we expect the plant to ramp up to full rates in the coming weeks the safety performance of our team and partners on the G. Three project has been outstanding.

Rich Sumner: The safety performance of our team and partners on the G3 project has been outstanding, and I would like to extend my personal thanks to the team for their continued hard work and dedication to completing this project safely. G3 significantly increases our cash flow generation capability and has one of the lowest emissions intensity profiles in the industry.

Speaker Change: I would like to extend my personal thanks to the team for their continued hard work and dedication to completing this project safely.

Richard W. Sumner: G3 significantly increases our cash flow generation capability and has one of the lowest emission intensity profiles. Now, turning to the second quarter, methanol pricing, and market dynamics. In the second quarter, the global average realized price of $352 per ton was $9 higher than the previous quarter. Through the first part of the quarter, methanol markets tightened with increased demand outpacing supply, leading to a significant global inventory drawdown and increasing methanol prices. Markets remained tight in the Atlantic Basin and rebalanced in China in June when demand slowed down with several methanol to olefin or MTO units taking maintenance or lowering operating rates.

Speaker Change: <unk> significantly increases our cash flow generation capability and has one of the lowest emission intensity profiles in the industry.

Rich Sumner: Now turning to the second quarter, methanol pricing and market dynamics. Our second quarter to global average realized price of $350 per ton was $9 higher than the previous quarter. Through the first part of the quarter, methanol markets tightened with increased demand outpacing supply, leading to a significant global inventory drawdown and increasing methanol prices. Markets remain tight in the Atlantic basin and rebalanced in China and June when demands slow down, with several Methanol to overfins or MTL units taking maintenance or lowering operating rates. We believe operating rates from MPO producers are increasingly becoming the balance on the global market as supply struggles to keep pace with the mangrove.

Speaker Change: Now turning to the second quarter methanol pricing and market dynamics are second quarter global average realized price of $352 per ton was $9 higher than the previous quarter.

Speaker Change: Through the first part of the quarter methanol markets tightened with increased demand outpacing supply.

Speaker Change: Leading to a significant global inventory draw down and increasing methanol prices.

Speaker Change: Markets remain tight in the Atlantic Basin, and rebalanced in China in June when demand slowed down with several methanol to olefins or MTO units, taking maintenance or lowering operating rates. We believe operating range from MTO producers are increasingly becoming the balance on the global market as <unk>.

Richard W. Sumner: We believe operating ranges from MTL are increasingly becoming the balance on the global market as supply struggles to keep pace with demand. Overall, global methanol demand was higher compared to the first quarter of 2024. Traditional chemical applications and energy-related demand grew above 3% compared to the prior quarter.

Speaker Change: Supply struggles to keep pace with the mangrove.

Rich Sumner: Overall, global methanol demand was higher compared to the first quarter of 2024. Traditional chemical applications and energy-related demand grew above 3% compared to the prior quarter, driven by increased economic activity globally, seasonally high construction and transportation activities. And favorable energy pricing, which continues to support methanol demand into energy applications. MTO demand decreased in the quarter as plants took outages or lowered operating rates in line with methanol supply constraints and increasing methanol prices. MTO operating rates decreased from around 85% in the first quarter to operating rates between 50 and 60% through June and into July. With various improvements in methanol supply through the quarter, we've recently seen one large MTO unit restart, but three large-scale units are currently idle, representing approximately 4 to 5 million tons of annual demand.

Speaker Change: Overall global methanol demand was higher compared to the first quarter of 2020 for traditional chemical applications in energy related demand grew above 3% and compared to the prior quarter driven by increased economic activity globally seasonally high construction and transportation activities and favorable energy price.

Richard W. Sumner: Although driven by increased economic activity globally, seasonally high construction and transportation activity, and Favorable Energy Pricing, which continues to support methanol demand for energy outputs, MTO demand decreased in the quarter as plants took outages or lowered operating rates in line with methanol supply constraints and increasing methanol prices. MTO operating rates decreased from around 85% in the first quarter to operating rates between 50% and 60% through June and into July, with various improvements in methanol supply.

Speaker Change: <unk>, which continues to support methanol demand into energy applications.

Speaker Change: MTO demand decreased in the quarter as plant took as clients took outages or lowered operating rates in line with methanol supply constraints and increasing methanol prices M.

Speaker Change: MTO operating rates decrease from around 85% in the first quarter, so operating rates between 50 and 60% through June and into July.

Speaker Change: With various improvements in ethanol supply through the quarter. We've recently seen one large MTO unit restart, but three large scale units are currently idle representing approximately four to 5 million tons of annual demand.

Richard W. Sumner: We've recently seen one large MTO unit restart, but three large-scale units are currently idle, representing approximately four to five million tons of annual demand. On the supply side, we saw various planned and unplanned outages and feedstock constraints restricting supply availability in the second quarter.

Rich Sumner: On the supply side, we saw various planned and unplanned outages and feed stock constraints restricting supply availability in the second quarter. This limited supply from various regions globally, and in particular, methanol production from Iran was slower to enter the market after seasonal gas restrictions. As a result, global inventory levels were under meaningful pressure, reaching 18-month lows, low levels in China, and increasing prices to have operating lower operating rates from the MTO sector, which led to a more balanced market in China. Towards the end of the quarter, we've seen various improvements in methanol supply in inventory globally, although markets remain quite tight, and as I already noted, there remains considerable MTO demand available to restart.

Speaker Change: On the supply side, we saw various planned and unplanned outages and feedstock constraints restricting supply availability in the second quarter.

Richard W. Sumner: This limited supply from various regions globally, and in particular, methanol production from Iran was slower to enter the market after seasonal gas... As a result, global inventory levels were under meaningful pressure, reaching 18-month low levels in China, and increasing prices drove lower operating rates from the MTO sector, which led to a more balanced market in China. Towards the end of the quarter, we saw various improvements in methanol supply and inventories globally, although markets remain quite tight, and as I already noted, there remains considerable MTO demand available for restart.

Speaker Change: This limited supply from various regions globally and in particular methanol production from Iran was slower to enter the market after seasonal gas restrictions as a result global inventory levels were under pressure, reaching 18 month lows low levels in China, and increasing prices drove operating lower operating rates from the MTR.

Speaker Change: Sex sector, which led to a more balanced market in China.

Speaker Change: Towards the end of the quarter, we've seen various improvements in methanol supply and inventories globally, although markets remain quite tight and as I already noted there remains considerable MTO demand available to restart.

Rich Sumner: We are seeing methanol pricing around $290 per ton in China, and we continue to see premiums above these levels in all regional markets. We estimate the marginal cost of production based on coal pricing in China to be around $270 to $280 per ton.

Richard W. Sumner: We are seeing methanol pricing around $290 per ton in China, and we continue to see premiums above these levels in all regional markets. We estimate the marginal cost of production based on coal prices in China to be around $270 to $280 per ton. Looking ahead to the third quarter, we expect to see continued tight methanol markets. We're seeing healthy demand growth across all traditional and energy-related downstream sectors, with MT operating rates influenced by the availability of supply.

Speaker Change: We are seeing methanol pricing around $290 per ton in China, and we continue to see premiums above these levels at all regional markets. We estimate the marginal cost of production based on coal pricing in China to be around 200 and.

Speaker Change: 70 to $280 per ton.

Rich Sumner: Looking ahead to the third quarter, we expect to see continued tight methanol markets. We're seeing healthy demand grows across all traditional and energy-related downstream sectors, with MTO operating rates influenced by the availability of supply. We anticipate this increasing demand will be met by increased operating rates in the industry, as well as new supply from G3, which will be partially offset by our supply reduction in Trinidad in September when we shut down Adless and restart tighten. Additionally, the $1.8 million ton plant in Malaysia has announced it will be starting in 2024.

Speaker Change: Looking ahead to the third quarter, we expect to see continued tight methanol markets, we're seeing healthy demand growth across all traditional and energy related downstream sectors with MTO operating rates influenced by the availability of supply.

Richard W. Sumner: We anticipate this increasing demand will be met by increased operating rates in the industry, as well as new supply from G3, which will be partially offset by our supply reduction in Trinidad in September when we shut down Atlas and restart Titan. Additionally, the 1.8 million ton plant in Malaysia has announced it will start in 2024. As always, we continue to monitor the macroeconomic environment and its impact on global methanol.

Speaker Change: We anticipate this increasing demand will be met by increased operating rates in the industry as well as new supply from G. Three which will be partially offset by our supply reduction in trend out in September when we shut down our atlas and restart tight.

Speaker Change: Additionally, the $1 8 million ton plant in Malaysia has announced it will be starting in 2024 as always we continue to monitor the macroeconomic environment and its impact on global methanol demand.

Rich Sumner: As always, we continue to monitor the macroeconomic environment and its impact on global methanol to math.

Rich Sumner: Now turning to our production. Methanex production in the second quarter was lower compared to the first quarter, due to gas constraints in Chile, Egypt, and New Zealand. In Chile, we're currently in the period of lower gas supplies available from Argentina, so we're operating one plant that less in full capacity. We continue to make progress on gas availability from Chile and Argentina. And based on production year to date, a successful turnaround at Chile 4 that will improve efficiency on restart. And progress we've made securing gas from Argentina for the non-winter period this year. We expect 2024 production will be slightly above the high end of our guidance of 1.2 million tons.

Richard W. Sumner: Now turning to our production, Methanex production in the second quarter was lower compared to the first quarter due to gas constraints in Chile, Egypt, and New Zealand. In Chile, we're currently in a period of lower gas supplies available from Argentina, so we're operating one plant at less than full capacity. We continue to make progress on gas availability from Chile and Argentina, and based on production year-to-date, a successful turnaround at Chile 4 that will improve efficiency on restart, and progress we've made securing gas from Argentina for the non-winter period this year, we expect 2024 production will be slightly above the high end of our guidance of 1.2 million tons.

Speaker Change: Now turning to our production methanex production in the second quarter was lower compared to the first quarter due to gas constraints in Chile, Egypt in New Zealand.

Speaker Change: In Chile, we're currently in the period of lower gas supply available from Argentina. So we're operating one plant at less than full capacity.

Speaker Change: We continue to make progress on gas ability availability from Chile, and Argentina and based on production year to date, a successful turnaround in Chile for that will improve efficiency on restart and progress we've made securing gas from Argentina for the non winter period. This year, we expect 2024 production will be slightly above.

Speaker Change: The high end of our guidance of $1 2 million tonnes.

Rich Sumner: In Egypt, the plant produced at high rates after the sin gas compressor maintenance completed in mid-February. In early June, the plant was temporarily idle when significantly increased seasonal demand for power generation due to elevated temperatures in the country led to various measures by the government to manage gas balances, including curtailments to industrial plants. The plant restarted at reduced operating rates shortly thereafter and has operated fluctuating rates based on gas availability, with current operating rates at approximately 80%. We've seen some stabilization of gas balances in the country, but we expect to see some continued limitations on supply as we progress through the third quarter.

Richard W. Sumner: In Egypt, the plant produced at high rates after the syngas compressor maintenance was completed in mid-February. In early June, the plant was temporarily idled when significantly increased seasonal demand for power generation due to elevated temperatures in the country led to various measures by the government to manage gas balances, including curtailments to industrial plants. The plant restarted at reduced operating rates shortly thereafter and has operated at fluctuating rates based on gas availability, with current operating rates at approximately 80%.

Speaker Change: In Egypt, the plant produced at high rates after the syngas compressor maintenance completed in mid February in early June the plant was temporarily idled one significantly increased seasonal demand for power generation due to elevated temperatures in the country led to various measures by the government to manage gas balances, including Curt.

Speaker Change: <unk> two industrial clients.

Speaker Change: Restarted at reduced operating rates. Shortly thereafter and has operated at fluctuating rates based on gas availability with current operating rates at approximately 80%. We've seen some stabilization of gas balances in the country, but we expect to see some continued limitations on supply as we progressed through the third quarter.

Richard W. Sumner: We've seen some stabilization of gas balances in the country, but we expect to see some continued limitations on supply as we progress through the third quarter. In New Zealand, we operated one plant through the second quarter due to both lower than expected gas deliveries from upstream suppliers, as well as from the redirection of some of our contractual gas for use in the broader energy sector. The country's overall energy balance is currently very tight, with demand seasonally high during the southern hemisphere winter, combined with low hydro levels and relatively lower gas supply in 2024 compared with previous years.

Rich Sumner: In New Zealand, we operated one plant through the second quarter due to both lower than expected gas deliveries from upstream suppliers, as well as from the redirection of some of our contractual gas for use in the broader energy sector. The country's overall amount of energy balances are currently very tight, with demand seasonally high during the southern hemisphere winter, combined with low hydro levels and relatively lower gas supply in 2024, compared with previous years. As a result, we believe some of our contractual gas has been redirected to the electricity and other domestic energy markets. We're in continuing discussions with our gas suppliers to ensure our contractual entitlements are being respected, as well as engaging with our gas suppliers and government agencies in supporting efforts to improve energy balances in the country.

Speaker Change: In New Zealand, we operated one plant through the second quarter due to both lower than expected gas deliveries from upstream suppliers as well as from the redirection of some of our contractual gas for use in the broader energy sector.

Speaker Change: The country's overall about energy balances are currently very tight with demand seasonally high during the southern hemisphere winter combined with low hydro levels and relatively lower gas supply in 2024 compared with previous years.

Richard W. Sumner: As a result, we believe some of our contractual gas has been redirected to the electricity and other domestic energy markets. We're in continuing discussions with our gas suppliers to ensure our contractual entitlements are being respected, as well as engaging with our gas suppliers and government agencies to support efforts to improve energy balances in the country, based on our production year-to-date and current gas delivery.

Speaker Change: As a result, we'd be believe some of our contractual gas has been redirected to the electricity and other domestic energy markets. We're in continuing discussions with our gas suppliers to ensure our contractual entitlements are being respected as well as engaging with our gas suppliers and government agencies and supporting efforts to improve.

Speaker Change: Energy balances in the country.

Rich Sumner: Based on our production year-to-date and current gas deliveries, we expect 2024 production will be below the low end of our previous guidance of 1 million tons.

Speaker Change: Based on our production year to date and current gas deliveries. We expect 2024 production will be below the low end of our premiums previous guidance of 1 million tonnes.

Richard W. Sumner: We expect 2024 production will be below the low end of our previous guidance of 1 million tons. Now, turning to our current financial position and outlook, we ended the first quarter with approximately $390 million in cash, with the G3 plant now in the process of startup. The project is now complete.

Rich Sumner: Now turning to our current financial position and outlook, we ended the first quarter with approximately $390 million of cash. With the G3 plan now on the process of startup, the project is now complete. The total final capital cost is slightly less than 1.3 billion, excluding fixed costs related to the delay, and we did not currently have any further growth capital commitments.

Speaker Change: Now turning to our current financial position and outlook. We ended the first quarter with approximately $390 million of cash with.

Speaker Change: With the G. III plant now in the process of startup the project is now complete.

Richard W. Sumner: The total final capital cost is slightly less than $1.3 billion, excluding fixed costs related to the delay, and we do not currently have any further growth capital commitments. Our primary focus for capital for the remainder of 2024 is to repay rather than refinance the $300 million bond due in December. Turning to the third quarter, our European quarterly price was posted at €535 per metric tonne, a €10 per tonne increase. Our North America, Asia, Pacific, and China prices for August were posted at $695, $400, and $380 per ton, respectively.

Speaker Change: The total final capital cost is slightly less than one 3 billion, excluding fixed costs related to the delay and.

Speaker Change: And we do not currently have any further growth capital commitments, our primary focus for capital for the remainder of 'twenty 'twenty four is to repay rather than refinanced $300 million bond due in December.

Rich Sumner: Our primary focus for capital for the remainder of 2024 is to repay rather than refinance the $300 million bond due in December. Turning to the third quarter, our European quarterly price was posted at 535 euros per metric ton, a 10-year-old per ton increase. Our North American, Asia Pacific, and China prices for August were posted at $695, $480 per ton, respectively. We estimate that based on these posts of prices, our July and August average-realized price range is between approximately $350 and $360 per metric ton. We expect adjusted EBITDA for the third quarter will be lower than the second quarter due primarily to lower-produced sales from Chile and New Zealand and G3's initial inventory build post start-up.

Speaker Change: Yeah.

Speaker Change: Turning to the third quarter, our European quarterly price was posted at 535 euros per metric ton or 10 euro per ton increase our North America Asia Pacific and China prices for August for posted at 695, 400 and $380 per ton respectively. We.

Richard W. Sumner: We estimate that based on these posted prices, our July and August average realized price range is between approximately $350 and $360 per metric ton. We expect Adjusted EBITDA for the third quarter will be lower than the second quarter, due primarily to lower produced sales from Chile and New Zealand and G3's initial inventory built post-startup. We expect sales of produced products and earnings for the fourth quarter of 2024 to be more representative of the run rate of our company with G3 at full production. We'd now be happy to answer questions.

Speaker Change: To me that based on these posted prices our July and August average realized price range is between approximately 350 and $360 per metric ton.

Speaker Change: We expect adjusted EBITDA for the third quarter will be lower than the second quarter due primarily to lower produce sales from Chile, and New Zealand and G. Iii's initial initial inventory build post startup.

Rich Sumner: We expect sales to produce product and earnings for the fourth quarter of 2024 to be more representative of the run rate of our company with G3 at full production.

Speaker Change: We expect sales of produced product and earnings for the fourth quarter of 2024 to be more representative of the run rate of our company with G. III at full production, we'd now be happy to answer questions.

Rich Sumner: We now be happy to answer questions. Thank you.

Speaker Change: Okay.

Operator: Thank you. Ladies and gentlemen, at this time, I would like to remind everyone that in order to ask a question, simply press star and then followed by the number one on your telephone keypad. Our first question comes from the line of Ben Isaacson with Scotiabank.

Speaker Change: Thank you.

Operator: Ladies and gentlemen, at this time I would like to remind everyone that in order to ask a question, simply press star and then followed by the number one on your telephone keypad.

Speaker Change: Ladies and gentlemen at this time I would like to remind everyone that in order to ask a question simply press Star and then followed by the number one on your telephone keypad.

Ben Isaacson: Our first question comes from the line of Ben Isaacson with Scotiabank. Your line is live.

Speaker Change: Our first quest.

Speaker Change: Question comes from the line of Ben Isaacson with Scotiabank.

Speaker Change: Your line is live.

Ben Isaacson: Thank you very much.

Benjamin Isaacson: Thank you very much and good morning everyone. I have two questions for you. The first one is about New Zealand. New Zealand seems to be disappointing on a fairly consistent basis.

Benjamin Isaacson: Thank you very much and good morning, everyone. Two questions for me first one is on New Zealand, New Zealand seems to be disappointing on a fairly consistent basis does it makes sense to indefinitely idle one of the two months of UE pumps I mean, there are several benefits for the.

Ben Isaacson: Good morning, everyone. Two questions for me.

Ben Isaacson: First one is on New Zealand. New Zealand seems to be disappointing on a fairly consistent basis.

Rich Sumner: Does it make sense to indefinitely idle one of the two monitoring plants? I mean there's several benefits for this. The risk profile of your portfolio of assets improves. You have reduced variability of free cash flow, which may result in a higher multiple. You take out a little bit of capacity from the market.

Richard W. Sumner: Does it make sense to indefinitely idle one of the two Montaigne plants? I mean, there are several benefits to this. The risk profile of your portfolio of assets improves. You have reduced variability of free cash flow, which may result in a higher multiple. You take out a little bit of capacity from the market. Can you just comment on that? Thank you.

Speaker Change: The risk profile of your portfolio of assets improves you have reduced variability of free cash flow, which may result in a higher multiple you've taken a little bit of capacity from the market can you just comment on that thank you.

Rich Sumner: Can you just comment on that? Thank you. Thanks, Ben. Yeah, so right now we're working through a lot of, you know, I say two big issues right now. One is, as you say, I think the gas from the upstream, you know, the investments that are being made in existing fields, both new wells as well as investing to enhance performance of existing wells. I think we've seen gas deliveries lower than expectations. You know, I think we're also working through the short-term dynamics in the industry where we believe some of our gas that would be coming to us may not be.

Richard W. Sumner: Thanks, Ben. Yeah, so right now we're working through a lot of, you know, I'd say two big issues right now. One is, as you say, I think the gas from the upstream, the investments that are being made in existing fields, both new wells as well as investing to enhance the performance of existing wells, I think we've seen gas deliveries lower than expectations. You know, we also are working through the short-term dynamics in the industry where we believe some of our gas that would be coming to us may not be, and that's something we're also working through.

Ben: Thanks Ben.

Speaker Change: Yeah. So right now we're working through a lot of you know.

Speaker Change: Two big issues right now one is as you say I think the gas from the upstream.

Ben: The investments that are being made in existing fields.

Speaker Change: With new wells as well as investing to enhance performance of existing wells I think we've seen gas deliveries lower than expectations.

Ben:

Ben: We also are working through the short term dynamics in the industry, where we believe some of our gas that would be coming to us may not be and and that's so that's something we're also working through but certainly right. Now I think you should be thinking about in the in the foreseeable months here of one plant operation and over the next few months, we'll be assessing what our views.

Rich Sumner: And that's something we're also working through.

Rich Sumner: But certainly, right now, I think you should be thinking about, in the foreseeable months here, on one plant operation, and over the next few months, we'll be assessing what our views are for the rest of the year and considering how we should be operating those assets. So I think there'll be more to come as we assess the rest of the year here.

Richard W. Sumner: But certainly, right now, I think you should be thinking about, for the foreseeable months here, a one-plant operation, and over the next few months, we'll be assessing what our views are for the rest of the year and considering how we should be operating those assets. So, I think there'll be more to come as we assess the rest of the year here.

Ben: Saar for the rest of the year and considering how we should be operating those assets. So.

Ben: I think there'll be more to come as we as we assess the rest of the year here.

Ben Isaacson: Thank you for that. And my follow-up question is on the entropy deal, which is really quite interesting. But it's also a little bit scary because there's the potential for others to do this as well.

Benjamin Isaacson: Thank you for that. And my follow-up question is on the entropy deal, which is really quite interesting. But it's also a little bit scary because there's the potential for others to do this as well. So can you run through what are the constraints that are preventing everyone else from kind of copying what you've done and adding another five to 10% of supply? That would be helpful. And actually, if you could actually maybe give a number in terms of how much capacity there is, that could also do this. Thank you.

Speaker Change: Thank you for that and my follow up question is on the <unk> deal, which is really quite interesting, but it's also a little bit scary because there's the potential for others to do this as well. So can you run through what are the screen for that's preventing everyone else from kind of copying what you've done in adding another 5% to 10% of supply.

Rich Sumner: So can you run through what are the constraints for that's preventing everyone else from kind of copying what you've done and adding another five to 10% of supply. That would be helpful. And actually, if you could actually maybe give a number in terms of how much capacity is there that can be that could also do this. Thank you.

Ben:

Speaker Change: That would be helpful and actually if you could actually maybe give a number in terms of how much capacity is there that could be that could also do this thank you.

Richard W. Sumner: And maybe I'll just give a bit of background on that project. You know, I think, first and foremost, we're happy to be working with Entropy, which is a technology provider who already has this technology in place at gas processing plants in Alberta with sequestration. I think when you think about the framework you need to make this work, you have to think about it. One is going to have a regulatory and supportive regulatory framework. We also have to have sequestration available. And so I wouldn't say it's just easy to replicate.

Rich Sumner: Maybe I'll just give a bit of background on the on that project. You know, I think that first and foremost, we're happy to be working with Entropy, which is a technology provider who's already has this technology in place in a gas processing plant in Alberta with sequestration. I think when you think about the framework you need to make this work, you have to think about jurisdictions that one are going to have a regulatory and supportive regulatory framework. You also have to have sequestration available. And so it's not, I wouldn't say it's just easy to replicate.

Speaker Change: Maybe I'll just give a bit of background on the on that project.

Speaker Change: I think first and foremost we're happy to be working with <unk>, which is a technology provider who is already has this technology in place and in gas processing plant in Alberta with sequestration I think when you think about the framework you need to make this work you have to think about.

Speaker Change: Yeah.

Speaker Change: Jurisdictions that.

Speaker Change: One are going to have a regulatory and supportive regulatory framework.

Speaker Change: You also have to have sequestration available and so it's not I wouldn't say, it's just easy to replicate but.

Rich Sumner: But you know, we're excited to be exploring this opportunity in the pre-FEED stage here just to give you a sense. It'll capture about 400 metric tons of CO2 per day. About two thirds of that would be used in our production, and a remaining third would be sequestered in underground caverns close to our plant. And that's all being worked on the infrastructure on making this commercial. And so we're excited to do it. You know, I think this deep all making will add, you know, like we said, around 50,000 tons of low carbon ethanol. And so, yeah, we'll work through everything in this pre-feed stage and trying to get to a point of decision making sometime in the middle of 2025.

Richard W. Sumner: But, you know, we're excited to exploring this opportunity in the pre-feed stage here. Just to give you a sense, it will capture about 400 metric tons of CO2 per day. About two-thirds of that would be used in our production, and a remaining third would be sequestered in underground caverns close to our plant. That's all being worked on, the infrastructure for making this commercial, and so we're excited to do it. I think this de-bulb necking will add, like we said, around 50,000 tons of low-carbon methanol. We'll work through everything in this pre-feed stage and try to get to a point of decision-making.

Speaker Change: We're excited to do be exploring this opportunity and the pre feed stage here just to give you a sense.

Speaker Change: It'll capture about 400 metric tons of Cotwo per day about two thirds of that would be used in in our production and the remaining third would be would be sequestered in underground caverns close to our plant and that's all being worked on the infrastructure on on making this a commercial.

Speaker Change: And so we're excited to do it.

Speaker Change: This debottlenecking will add.

Speaker Change: We sat around 50000 tonnes of low carbon ethanol in and so yeah, we'll work through everything and in this pre feed stage in and trying to get to a point of decision, making sometime in middle of 2025.

Ben Isaacson: Thank you very much. Thank you for your question.

Speaker Change: Thank you very much.

Speaker Change: Thank you for your question.

Mike Leithead: Our next question comes to the line of Mike Leithead with Barclays Capital. Your line is live. Great. Thanks. Good morning, guys.

Operator: Thank you for your question. Our next question comes from the line of Mike Leathead with Barclays Capital. Your line is live. Good.

Mike <unk>: Our next question comes to the line of Mike <unk> with Barclays Capital. Your line is live.

Mike Leathead: Great, thanks. Good morning, guys. First question, just on G3. Congrats on successfully starting that up.

Mike <unk>: Great. Thanks, Good morning, guys.

Mike Leithead: First question, just on G3, congrats on successfully starting that off. What is your expectation for when that should be sort of fully, fully running, fully utilized, fully flowing? Then through the P&L and you guys are getting commensurate earnings, and then if we just kind of use where we are roughly today, in terms of nothing all in the ass, just what's your sort of latest death estimate of the annualized EBITDA we should expect from this plan.

Mike <unk>: First question just on G. Three congrats on successfully starting that up what is your expectation.

Richard W. Sumner: What is your current expectation for when that should be sort of fully, fully running, fully utilized, fully flowing then through the P&L, and you guys are getting commensurate earnings? And then if we just kind of use where we are roughly today in terms of methanol and gas, just what's your sort of latest best estimate of the annualized EBITDA we should expect from this plant?

Speaker Change: When that should be sort of fully.

Speaker Change: Fully running full utilized fully flowing them through.

Speaker Change: Through the P&L and you guys are getting commensurate earnings and then if we just kind of use where we are roughly today.

Speaker Change: In terms of methanol and gas just whats your sort of latest.

Speaker Change: Our best estimate of the annualized EBITDA, we should expect from this plan.

Speaker Change: Okay.

Speaker Change:

Richard W. Sumner: So, I guess I'll start with a wrap-up period. You know, we expect, as we disclosed, we'll be wrapping up to full rates in the coming weeks. You know, as of today, the plant's operating at 70% operating rates, which is how we start up a plant, and then we steadily increase it over time. There could be points in time where you're testing all the different elements of the plant, and you may, you know, take it down for a period to bring it back up.

Rich Sumner: So I guess the wrap up starts with the wrap up period. We expect, as we disclose, we'll be wrapping up to full rates in the coming weeks. Today the plants operating at 70% operating rates, which is how we start up a plant and then we steadily increase over time. There could be points in time where you're testing all the different elements of the plant. And you may take it down for a period to bring it back up. But as of right now, we're at 70% operating rates and will be there for a period to increase, steadily increase in the coming weeks here.

Speaker Change: So I guess the wrap I'll start with a ramp up period, we expect as we've disclosed that it will be ramping up to full rates in the coming weeks you know as of today the plants operating at 70% operating rates, which is is how we start up a plant and then we steadily increase over time there could be.

Speaker Change: Points in time, where you're you know you're testing all the all the different.

Speaker Change: Elements of the plant and you made you know.

Speaker Change: It down for a period to bring it back up but as of right now we're at 70% operating rates and will be there for a period to increase steadily increase in the coming weeks here. So so that the ramp up is relatively we plan it to be relatively quick in terms of how it will actually impact earnings.

Richard W. Sumner: But as of right now, we're at 70% operating rates, and we'll be there for a period to steadily increase in the coming weeks. So, the wrap-up is relatively, we plan it to be relatively quick. In terms of how it will actually impact earnings, I think that it's safe to say we don't expect a lot of G3 coming through in the third quarter, but we would expect that to be fairly, you know, sometime around the end of this quarter and the beginning of next quarter.

Rich Sumner: So the wrap up is relatively, we plan to be relatively quick.

Rich Sumner: In terms of how it will actually impact earnings, I think it's safe to say we don't expect a lot of G3 coming through in the third quarter. But we would expect that to be a fairly, you know, sometime around the end of this quarter and the beginning of next quarter. So, you know, inventory flows are not all that easy to track through our system. But I would say it's, you know, we've guided that 2020, the fourth quarter should look something like a run rate with G3. In terms of the run rate evada from G3, we've guided that at $350 a ton, which we think we're slightly above that, that it generates around $200 to $250 million in evada per year, depending on gas between $3 and $4 an MMBTU.

Speaker Change: I think it's safe to say, we don't expect a lot of G III coming through in the third quarter.

Speaker Change: But we would expect that to be a fairly you know sometime around the end of this quarter and the beginning of next quarter. So.

Richard W. Sumner: So, you know, inventory flows are not all that easy to track through our system, but I would say it's... We've guided that in 2020, the fourth quarter should look something like a run rate with G3 in terms of the run rate. EBITDA from G3, we've guided that at $350 a ton, which we think we're slightly above that, and that it generates around $200 to $250 million in EBITDA per year, depending on gas, between $3 and $4 in MMBTU. So hopefully, that answers your questions there.

Speaker Change: Inventory flows are not all that easy to track through our system, but I would say, it's we guided that 2020, the fourth quarter should look.

Speaker Change: Like a run rate with with with G. III.

Speaker Change: In terms of the run rate EBITDA.

Speaker Change: EBITDA from from G. Three we've guided that at $350 a ton, which we're we think we're slightly above that but it generates around $200 million to $250 million EBITDA per year, depending on gas between three and $4 in F&B to use so.

Mike Leithead: So hopefully that answers your questions there.

Speaker Change: So hopefully that answers.

Speaker Change: Your questions there.

Richard W. Sumner: Yep, that's super helpful. And then just a couple quick follow-ups on the Entropy announcement. First, is that correct to hear that if everything goes to plan, you should expect to make FID by mid-2025? Two, can you just speak to how dependent this project going forward is on receiving government funding? And then just briefly, is this sort of a one-off opportunity just because of the plan and the location, or if this goes well, is something you could seek to replicate at some of your other plans as well? Yep, so I'll start with...

Mike Leithead: Yep, that's super helpful. And then just a couple quick follow-ups on the entropy announcement. First, is that correct in hearing that if everything goes to plan, you should expect to make FYG by mid-2025.

Speaker Change: Yeah. That's super helpful. And then just a couple of quick follow ups on the entropy announcement first is that correct in hearing that.

Speaker Change: Everything goes to plan.

Speaker Change: You should expect to make F y E by mid 'twenty 'twenty five two can you just speak to how dependent this project going forward is on receiving government funding and then just briefly is this sort of a one off opportunities just because of the plan and the location or if this goes well. This is something you could.

Rich Sumner: True, can you just speak to how dependent this project going forward is on receiving government funding? And then just briefly, is this sort of a one-off opportunity just because of the plan and the location, or if this goes well, this is something you could seek to replicate at some of your other plans as well?

Speaker Change: Seek to replicate some of your other plants as well.

Rich Sumner: Yep, so I'll start with the initial phase and the timelines here. So this is actually this project is part of a two-step phase project. The first phase is a unit that would capture 400 metric tons per day. About two-thirds of that would be used in our production. And about a third would be sequestered underground. So that, when you think about value, what we will be paying, we'll be paying for that CO2 value in methanol production for two-thirds of it. And another third will need to get carbon credits for sequestering CO2. And there's obviously a regime of carbon taxing and carbon credits in Canada that will support this project.

Speaker Change: Yeah, So I'll start with.

Richard W. Sumner: Let's start with the initial phase and the timelines here. So this is a phase, this is actually, this project is part of a initial two-step phase project. The first phase is a unit that would capture 400 metric tons, per day about two-thirds of that would be used in our production and about a third Would be sequestered underground so that when you think about value What we will be paying will be paying for that co2 value and methanol production for two-thirds of it and another third will be Will need to get carbon credits for sequestering co2 and there's obviously a regime of Carbon taxing in and carbon credits in in Canada that we will be That that will support this project in addition to that.

Speaker Change: To start with this this this the initial phase of the timelines here.

Richard W. Sumner: There are other incentive programs provincially and federally that this will look to access, and we think that we will be eligible for All of those things we'll be looking at through the pre-feed stage. The phase two of the project is actually to really scale this such that you would triple the size of it, and you would capture all of our scope one emissions and sequester effectively all of the CO2 from the scope one of the plant. That will take more work, more infrastructure that would be required, and a lot more certainty around the carbon framework that would support and carbon pricing framework that would support that second phase investment. So hopefully, that helps answer your question.

Speaker Change: So this is a phase this is actually this project is part of our initial.

Operator: Thank you. Thank you for your questions. Our next question comes from the line of Josh Spector with UBS. Your line is live.

Speaker Change: A two step phase project. The first phase is a unit that would capture 400 metric tonnes.

Speaker Change: Per day about two thirds of that would be used in our production and about a third would be sequestered underground. So that when you think about value are what we will be paying we will be paying for that C. O two value in methanol production for two thirds of it and another third will be will need to.

Speaker Change: Get carbon credits for sequestering, Cotwo and Theres, obviously, a regime of carbon taxing and carbon credits in Canada that we would be that that will support. This project. In addition to that there's other incentive programs provincially and federally that this well will look to.

Rich Sumner: In addition to that, there are other incentive programs provincially and federally that this will look to access. And we think that we will be eligible for. All of those things we'll be looking at through the pre-feed stage.

Speaker Change: To access and we think that it will be eligible for all of those things we'll be looking at through the pre feed stage.

Rich Sumner: The phase two of the project is actually to really scale this such that you would triple the size of it. And you would capture all of our scope one emissions and sequester all of the effectively, all of the CO2 from the scope one of the plant. That will take more work, more infrastructure that would be required, and a lot more certainty around the carbon framework that would support that second phase investment. So hopefully that helps add to your question.

Speaker Change: Phase two of the project is actually to really scale. This such that you would triple the size of it.

Speaker Change: And you would capture all of our our scope one emissions and sequester all of the effectively all of the C. O. Two from the from the scope one of the plant that will take more work more infrastructure that would be required and and a lot more certainty around.

Speaker Change: The carbon framework that would support and carbon pricing framework that would support that second phase our investment. So hopefully that helps answer your question.

Mike Leithead: Great. Thank you.

Speaker Change: Great. Thank you. Thank you.

Speaker Change: Thank you for your questions. Our next question comes from the line of Josh Spector with UBS. Your line is live.

Joshua Spector: Our next question comes from the line of Josh Spector with UBS. Your line is live.

Speaker Change: Okay.

James Cannon: I think this is James Cannon on for Josh.

James Cannon: Hey guys, this is James Cannon. I'm for Josh.

Speaker Change: Because this is James Cameron on for Josh.

Richard W. Sumner: I just wanted to, uh... I just wanted to poke around. What's going on with the discount rate? It seems like, while it's crept up over time, this year it's been a lot higher so far. I think, based on all your comments, Third quarter to date, it seems like we're relatively stable at the last quarter's levels. But kind of looking beyond that, how should we think through the rest of the year and kind of into next?

James Cannon: I just wanted to poke on what's going on with the discount rate. It seems like, while it's crept up over time this year, it's been a lot higher so far. I think based on your comments on third quarter to date, it seems like we're relatively stable at the last quarter's levels, but kind of looking beyond that, how should we think through the rest of the year and kind of into next? I think when we look at our pricing, we've been guiding for the second quarter. We've guided to around $345 to $350 per ton. I think we averaged $350 per ton for the quarter.

James Cameron: I just wanted to.

James Cameron: Just wanted to poke on.

Speaker Change: What's going on with the discount rate.

Speaker Change: It seems like while it's crept up over time this year, it's been a lot higher so far.

Speaker Change: I think based on your comments on <unk>.

Speaker Change: Third quarter to date, it seems like were relatively stable with the last quarter's levels, but kind of looking beyond that how should we think through the rest of the year and kind of into next.

Richard W. Sumner: Well I think, I think when we look at our great... When we look at our pricing, you know, we've been guiding for the second quarter, we guided to around $345 to $350 per ton. I think we averaged $352 per ton for the quarter. For this coming quarter, we're guiding to $350 to $360 per ton. And when I look at where pricing is, you know, we've got cost curve levels at $290 to $300 per ton in China.

Speaker Change: Well I think I think when we look at our Franklin.

Speaker Change: Okay.

Speaker Change: When we look at our pricing.

Speaker Change: We've been guiding for the second quarter, we guided to around 345 to $350 per ton.

Speaker Change: We averaged $352 per ton for the quarter for this coming quarter, we're guiding to 350 to $360 per ton and when I look at where pricing is.

Rich Sumner: For this coming quarter, we're guiding to $350 to $360 per ton. When I look at where pricing is, we've got cost curve levels at $290 to $300 per ton in China. I think when we look at it, we're setting price as to what a reasonable market price should be in all the regions we're selling into, and we're achieving significant premiums, which is reflective of tight market balances, which we expect to continue for the rest of the year, as I said in the earlier remarks. We're not as focused on the discount; we're focused on realizations, and I do think you've seen discounts creeping up, mainly because that's the competitive way of pricing into the market.

Speaker Change: We've got cost curve levels at $2 90 to $300 per tonne in China. So I think when we look at it we were setting price as to what a reasonable market price should be in all the regions, where we're selling into and we're achieving.

Richard W. Sumner: So I think when we look at it, we're setting prices as to what a reasonable market price should be in all the regions we're selling into. And we're achieving significant premiums, I think, which is reflective of tight market balances, which we expect to continue for the rest of the year, as I said in the earlier remarks. So we're not as focused on the discount. We're focused on realizations. And I do think you've seen discounts creeping up mainly because that's the competitive way of pricing into the market, not what we think is reflective of lower realizations.

Speaker Change: Significant premiums I think which is reflective of tight market balances, which we expect to continue for the rest of the year as I said in an earlier remark. So we're not as focused on the on the discount brokers on realization and I do think you've seen discounts creeping up mainly because that's the competitive way.

Speaker Change: Pricing into the market are not are not what we think is reflective of lower realization.

Rich Sumner: Not what we think is reflective of lower realizations.

Rich Sumner: Okay, got it, and then I think through the quarter, I saw some reports on curtailment to trade it out gas. I think you called out a couple of unplanned outages. I was wondering were those related, and can you comment on how you're seeing that develop through this quarter?

Speaker Change: Okay got it.

Richard W. Sumner: Okay, I got it. And then.

Speaker Change: And then.

Richard W. Sumner: I think through the quarter, I saw some reports on... to Trinidad Gas, calling out a couple of unplanned outages. Were those related? And can you comment on how you're seeing that develop this quarter? Yeah. So those were...

Speaker Change: I think through the quarter.

Speaker Change: Saw some reports on curtailments to Trinidad gas.

Speaker Change: You called out a couple of unplanned outages I was wondering where those related and can you comment on how you're seeing that develop through this quarter.

Rich Sumner: Yeah, so those were not gas-related. Our outages were our air separation unit went down in Trinidad, and we had to report some maintenance in Trinidad, but there were gas outages in the upstream during the quarter. It didn't affect our operations, but it did affect other producers in the point piece of the state. So, but yeah, unrelated is for our Atlas operations.

Speaker Change: Yeah. So.

Richard W. Sumner: So those were not gas related. Our outages were we had our air separation unit went down in Trinidad, and we had to perform some maintenance in Trinidad, but there were gas outages in the upstream during the quarter. Didn't affect our operations, but it did affect other producers in the Pointlesas Estate. So, but yeah, unrelated is for our Atlas operation.

Speaker Change: So those were not gas related or outages was we had our air separation unit went down in Trinidad and we had to perform some maintenance in Trinidad.

Speaker Change: But there was gas outages in the upstream.

Speaker Change: During the quarter didnt affect our operations, but it did affect other producers in the at the point leases the state so, but yeah I'm unrelated is for our Atlas operations.

Rich Sumner: Okay, thank you. Thanks for your questions.

Speaker Change: Okay. Thank you.

Speaker Change: Thanks for your questions.

Joel Jackson: Our next question comes from the line of Joel Jackson with the MO Capital Markets; your line is live. Hey Rich, I'm going to ask three quick questions you're allowing. First, on your maintained guidance for seven million tons of net and X produced volume, how round is that seven million tons? Is it more like six and a half to seven million tons? And the reason I say is to make all your numbers work; it's kind of hard. You know, you say Q3 production will be a little bit lower than Q2 to get that seven million for the full year.

Operator: Our next question comes from the line of Joel Jackson with BMO Capital Markets. Your line is live.

Speaker Change: Our next question comes from the line of Joel Jackson with BMO capital markets. Your line is live.

Joel Jackson: Hey, Rich. I'm going to ask three quick questions if you'll allow me.

Joel Jackson: Hey, rich I'm going to ask three quick questions if you'll allow me.

Joel Jackson: First on your maintained guidance for 7 million tons of Methanex produced volume how ground is that 7 million tons is it.

Richard W. Sumner: First, on your maintained guidance for 7 million tons of methanex, like the volume produced, how round is that 7 million tons? Is it more like six and a half to seven million tons? And the reason I say this is to make all your numbers work; it's kind of hard. You say Q3 production will be a little bit lower than Q2. To get that 7 million for the full year, you need to run at a run rate of, I don't know, like a 10 million ton run rate in the fourth quarter. That'd be everything going full out. Can you maybe talk about how round the 7 million ton number is?

Rich: More like six five to 7 million tons and the reason I say is to make all your numbers work its kind of heard you say two three.

Speaker Change: Production will be a little bit lower than Q2 to get that 7 million for the full year you need to run rate I don't know like a 10 million ton run rate in the fourth quarter that'd be everything going full out can you maybe talk about how round the sudden return number.

Joel Jackson: You need to run rate, I don't know, like a 10 million ton run rate in the fourth quarter. That'd be everything going full out.

Rich Sumner: Can you maybe talk about how round the seven million ton number is? I think we feel good about the 7 million ton with G3 where it is right now, and our expectation for G3. I've talked about some ups and downs as it relates to Chile and New Zealand, and I think most of the other things are factored in. So we feel pretty good at the 7 million ton range for the quarter, or for the year, sorry. For the year, gotcha.

Richard W. Sumner: I think we feel good about the 7 million tonne range with G3 where it is right now and our expectations for G3. I've talked about some ups and downs as it relates to Chile and New Zealand, and I think most of the other things are factored in, so we feel pretty good about the 7 million tonne range.

Speaker Change: I think we I think we feel good about the seven 7 million ton with G. Three where it is right now and our expectation for <unk> I've talked about some ups and downs as it relates to Chile, and New Zealand and I think most of the other things are factored in.

Speaker Change: So we feel pretty good at the $7 7 million ton range for the quarter or for the year sorry.

Richard W. Sumner: for the year. Got you. And then same question. Second question, the Egypt repair that you had, you obviously put back online seven months ago. You've got some insurance settlement maybe coming from that. Can you talk about that? And that's obviously not included in your EBITDA forecast, but I imagine that would be put into EBITDA one of these quarters coming up. Yeah, we expect...

Speaker Change: For the year got it.

Joel Jackson: And then site question. The second question, Egypt repaired you had, you obviously put back online seven months ago. You've got some insurance settlement coming from that. Can you talk about that, and that's obviously not including your either forecast, but imagine that would be put into either one of these quarters coming up. Yeah, we expect to collect on insurance in the coming quarter. So, you know, I think that's going to, you know, we should expect to see insurance proceeds coming in in Q3. But that's not including your in your guidance in the outlook last night. No, it's not including the guys.

Speaker Change: And then second question.

Speaker Change: Second question.

Speaker Change: Egypt, a repair that you had you obviously put back on line 10 months ago, you've got some insurance settlement, maybe coming from that can you talk about that and that's obviously not included in your EBITDA forecast, but I imagine that would be put into EBITDA one of these quarters coming up.

Richard W. Sumner: Yeah, we expect to collect on insurance in the coming quarter. So, you know, I think that

Speaker Change: Yes, we expect to collect on insurance in the coming quarter.

Speaker Change: So I think that's going to you know, we should expect to see insurance proceeds coming in in Q3.

Richard W. Sumner: But that's not included in your guidance in the outlook last night. No, that's not included in the guidance. And finally, I mean, now that you know, you've got G3 starting up the last day or two, hopped over probably wrapped up over the next month or so, got the maturing debt later in the fourth quarter. What is the signpost now to be comfortable to buy back stock when you're ready to go again on the buyback?

Speaker Change: But that's not included in your in your guidance and the outlook last night.

Speaker Change: Not included in the guidance.

Rich Sumner: And finally, I mean, now that you know, you're just, you know, you've got G3 starting up the last day or two, up to the early round of the next month or so, got the maturing debt later in the fourth quarter. What is the signpost now to be comfortable to buy back stock when you're ready to go again on the buy back? I mean, right now our first priority is to the debt, and, you know, we still have some cash to build in advance of that. So, that's our main focus today. I think once we move past that, we don't have any, you know, major growth capital.

Speaker Change: Finally, I mean now that you know you're just you know you've got G. Three started up well out there too.

Speaker Change: October fully ramped up over the next month or so got the maturing debt later in the fourth quarter. What is the sign post now to be constant to buy back stock when you're ready to go again on the buyback.

Speaker Change: Yeah.

Richard W. Sumner: I mean, right now, our first priority is debt, and we still have some cash to build in advance of that. So that's our main focus today.

Speaker Change #102: Right now our first priority is to the debt and you know we still have some cash to build in advance of that so that's our main focus today I think once we move past that we don't have any major growth capital I think we can start looking at use of capital beyond that and we would have said that.

Richard W. Sumner: I think once we move past that, we won't have any major growth capital. I think we can start looking at the use of capital beyond that. We've got a very strong pre-cash flow profile, as you know, and there will be room for considering share repurchases along with. We do think there's some room for the debt, but we think we can do things in a balanced way there, post building up for our $300 million debt repayment. So I think what we want to do is focus on that today, and then once we get confident that we're there, we can consider other uses of capital beyond.

Rich Sumner: I think we can start looking at that. Use the capital beyond that. We've have said that, you know, there'd be, we've got a very strong free cash flow profile, you know, and there would be room for considering share repurchases along with. We do think there's some room for the debt, but we think we can do things in a balanced way there post building up for our 300 million debt repayment. So, I think what we want to do is focus on that today, and then, once we get confident we're there, we can consider other uses a capital beyond.

Speaker Change: You know there'll be we've got a very strong free cash flow profile as you know and and there'll be room for for considering share repurchases along with we do think theres some room for the debt, but we think we can do things in a balanced way there.

Speaker Change: Post the building up for our $300 million debt repayment. So I think what we wanted to do is focus on that today and and then and then once we get confident we're there we can consider other uses.

Speaker Change: Capital beyond.

Joel Jackson: Thank you.

Speaker Change: Thank you.

Speaker Change: Yeah.

Steve Hansen: Our next question comes from the line of Steve Hansen with Raymond James.

Operator: Our next question comes from the line of Steve Hansen with Raymond James. Your line is live.

Speaker Change: Our next question comes from the line of Steve Hansen with Raymond James Your line is live.

Steve Hansen: Your line is live.

Steven P. Hansen: Yeah, good morning guys, thanks for the time. I wanted to follow up on Joel's question indirectly about the buyback. I think in the past you said that 200 to 250 million of cash is sort of like a comfortable position you'd like to keep on the balance sheet at any given time just to operate the business methodically. I mean, has that changed at all with G3 production coming online? Do you need slightly more than that? Just trying to get a sense of that comfortable position so we can think about the excess cash bills and how that might go to other uses.

Rich Sumner: Yeah, good morning, guys. Thanks for time. I wanted to follow up on Joel's question indirectly about the buyback. I think in the past, you said that 200 to 250 million of cash is sort of like a comfortable position. You'd like to keep on the balance sheet any given time just to operate the business methodically. I mean, has that changed all with G3 production coming online. You need slightly more than that. Just to get a sense of that comfort position so we can think about the excess cash build and how that might go to other uses.

Steven P. Hansen: Yeah. Good morning, guys. Thanks for the time.

Speaker Change: Wanted to follow up on Joel's question indirectly about the buyback I think in the past, you've said that $200 million to $250 million of cash is sort of like a comfortable position you'd like to keep on the balance sheet at any given time just to operate the business methodically I mean has that changed at all with G. III production coming online do you need slightly more than that just trying to get a sense of that comfort.

Speaker Change: And so we can think about the excess cash builds and how that might go to other uses.

Rich Sumner: I think we would be in the range of 250 to 300 million. Just when we look at where our cash is earned and how we need to move it around to run the business, that's sort of our comfort level. So I wouldn't think that there's a meaningful change with G3 and not having the capital spend there. But yeah, that's sort of a range to be using, Steve.

Richard W. Sumner: I think we would be in the range of $250 to $300 million. Just when we look at where our cash is earned and how we need to move it around to run the business, that's sort of our comfort level. So I wouldn't think that there's a meaningful change with G3 and not having those. That's sort of a range to be used.

Speaker Change: I think I think we would be in the range of $250 million to $300 million just when we look at where our cash is earned and how we need to move it around to run the business. That's that's sort of our comfort comfort level. So I wouldn't think that there's a meaningful change with good <unk> and and and and not having them.

Speaker Change: <unk>.

Speaker Change: Capital spend there.

Speaker Change: But yeah, that's that's sort of a range to be to be using Steve.

Richard W. Sumner: Okay, that's helpful. And then just jumping over to Chile, you've obviously been successful at procuring some additional gas there. You've talked about increased availability there before, but it's taken some time to ultimately execute on getting the gas. Has anything changed in the market down there that's allowed you greater comfort to secure more gas, or what are we seeing down there?

Rich Sumner: Okay, that's helpful. And then just. It's jumping over to Chile; you've obviously been successful at procuring some additional gas there. You've talked about increased availability there before, but it's taken some time to ultimately execute on getting the gas. Is anything changed in the market down there that's allowed you greater comfort to secure more gas, or what are we seeing down there? Well, I'm very comfortable around securing gas outside of the winter period, right? We've got a lot of gas available to us from Argentina outside of the winter period. In fact, more than our needs, I think we're being offered more than we need for our Chilean operations, which is very positive.

Speaker Change: Okay. That's helpful. And then just jumping over to Julie Ive, obviously been successful at procuring some additional gas there you've talked about increased availability there before but it's taken some time to ultimately execute on getting my guess is anything changed in the market down there. That's allowed you greater comfort to secure more gas or what are we seeing down there.

Richard W. Sumner: I'm very comfortable with securing gas outside of the winter period, right? We've got a lot of gas available to us from Argentina outside the winter period, in fact, more than our needs. I think we're being offered more than we need for our Chilean operations, which is very positive.

Julie Ive: I'm very comfortable around securing gas.

Speaker Change: Side of the winter periods, great. We've got a lot of gas available to us from Argentina outside of the winter period in fact more than our needs I think we're all being offered more than we need for our for our Chilean operations, which is very positive.

Richard W. Sumner: The challenge will be through the winter period because gas is restricted from an export perspective. We are in early discussions there about the winter period because the country is increasingly trying to ramp up pipeline connections and gas takeaway capability out of the Vaca Morta. They're also developing fields in the south, which is going to add another 5 million cubic meters to the grid that's effectively stranded. And so we're a very logical purchaser for that gas. So I think these things are going to develop, but our goal is to have year-round gas in Chile given the dynamics in Argentina.

Rich Sumner: The challenge will be through the winter period because gas is restricted from an export perspective.

Speaker Change: <unk> will be through the winter period, because gas is restricted.

Speaker Change: From an export perspective.

Rich Sumner: We are in early discussions there, you know, about the winter period because the country is increasingly trying to ramp up pipeline connections and gas take away capability out of the vacuum more. They're also developing fields in the south, which is going to add in another 5 million cubic meters into the grid that's effectively stranded. And so, you know, we're a very logical purchaser for that gas. So I think these things are going to develop, but our goal is to have year-round gas in Chile given the dynamics in Argentina. Okay, that's helpful.

Speaker Change: We are in early discussions there you know about the winter period because of the country is increasingly trying to ramp up pipeline connections and gas takeaway capability out of the Bakken water. They're also developing fields in the in the South which is gonna add in another 5 million cubic meters into the.

Speaker Change: Grid, that's effectively stranded and so you know we're the we're very logical purchaser for that gas. So I think these things are going to develop but our goal is to have year round gas in Chile, given our given the dynamics in Argentina.

Richard W. Sumner: Okay, that's helpful. And then, just one final one, if I may, is going back to Ben's question at the very beginning and some of the challenges in New Zealand. I mean, is there the ability to move any one of those plants over time? You've done it in the past. Those are older facilities, of course, but you know, is there any context around whether a move of a facility might make some sense in terms of optimization of the footprint?

Speaker Change: Okay. That's helpful. And then just one final one if I may is going back to Ben's question at the very old said it in some of the challenges in New Zealand. I mean is there is an ability to move any one of those plants over time, you've done in the past those are older facilities of course, but is there any context around whether a move a facility might make some sense in terms of optimization of the footprint.

Rich Sumner: And then just one final one of my may is going back to Ben's question at the very outset in some of the challenges in New Zealand. I mean, is there any ability to move any one of those plants over time you've done in the past? Those are older facilities, of course, but you know, is there any context around whether a move of facility might make some sense in terms of optimization footprint? Yeah, well, I guess the first thing is maybe just the relocation economics and how they work. Relocation economics aren't significant savings over on capital.

Richard W. Sumner: The first thing is maybe just the relocation economics and how they work. Relocation economics isn't a significant savings on capital. If you're looking at that, it's more trying to execute a project to grow methanol supply in a shorter time frame. That's where you get value. I don't think we're in that position today. These plants are not the ones you would look to move. I don't think we're in a position today to be making that decision or exploring that based on our gas outlook at this point. We need to get a better feel for the medium-long term in the country before we'd be looking at anything like that.

Speaker Change: Yeah.

Speaker Change: I guess the first thing is maybe just the relocation economics and how they work relocation economics arent significant savings over on capital.

Rich Sumner: And so it's usually, if you're looking at that, it's more trying to execute a project to grow, grow methanol supply in a shorter time frame, and that's where you get values. I don't think we're in that position today. These plants are not, I don't think, would be the plants you would look to move. And I don't think we're in a position today to be making that decisions or for being exploring that based on our gas outlook at this point. We want to, you know, we need to get a better feel for the medium long term in the country before we'd be looking at anything like that.

Speaker Change: And so it's usually if you're looking at that it's more trying to execute a project to grow grow methanol supply in a shorter timeframe and that's where you get value.

Speaker Change: I don't think we're in a position today. These these plants or not I don't think it would be the plants. You would look look to move and I don't think we're in a position today to be making that decision or or being exploring that based on our on our gas outlook at this point, we want to.

Speaker Change: We need to get a better feel for the medium long term in the country before we'd be looking at anything like that.

Rich Sumner: Okay, for good.

Speaker Change: Okay very good.

Hassan Ahmed: Thanks for your questions. Our next question comes from line of Hassan Ahmed with Olympic Global. Your line is live.

Operator: Thanks for your questions. Our next question comes from the line of Hassan Ahmed with Alembic Global. Your line is live. Good morning.

Speaker Change: Thanks for your questions. Our next question comes from the line of Hassan Ahmed with Alembic Global.

Speaker Change: Your line is live.

Hassan Ijaz Ahmed: I just wanted to revisit a bunch of questions that were asked earlier about New Zealand. Obviously, you guys have gas contracts in place over there. I'm just trying to get a sort of, if you could dig a bit deeper into the structure of those contracts. Is there any restitution? Could you receive any payments, maybe for the gas deliveries that did not happen?

Hassan Ahmed: Morning, Rich. You just wanted to revisit a bunch of questions that were asked earlier about New Zealand. I mean, you know, obviously you guys have gas contracts in place over there. I'm just trying to get a sort of if you could dig a bit deeper into, you know, the structure of those contracts. I mean, is there any restitution? You know, could you receive any payments, maybe for, you know, the gas delivery that did not happen?

Hassan Ijaz Ahmed: Morning, Richard just wanted to revisit.

Speaker Change: Two questions that were asked earlier about New Zealand.

Hassan Ijaz Ahmed: Obviously, you guys have gas contracts in place over there I'm just trying to get a.

Speaker Change: If you could dig a bit deeper into.

Speaker Change: The structure of towards contracts I mean is there any restitution could you receive any payments maybe.

Speaker Change: For.

Speaker Change: Gas deliveries that did not happen.

Rich Sumner: So I think maybe I'll start with the contracts themselves. You know, these contracts we're, we're, we're, you know, we have entitlement to gas per year, but that is based off of what they are bringing to market. Right. And, and there is priority in terms of in terms of gas. And so if the gas is available and our contracts should be fulfilled. Yes. There's restitution that that that should be should be should be paid. And that's certainly when we say we're in discussions with our gas suppliers. These are some of the discussions. Now, if the gas is not available and their portfolio is not delivering, that's another issue.

Richard W. Sumner: So I think, um, maybe I'll start with the contracts themselves. Uh, you know, these contracts, we're, we're, uh, we have entitlement to gas per year, but that is based on what they are bringing to market. And there is priority in terms of gas, and so if the gas is available and our contracts should be fulfilled, yes, there's a responsibility, that should be should be should be paid. And that's certainly when we say we're in discussions with our gas suppliers. These are some of the discussions are.

Speaker Change: So I think I'm, maybe I'll start with the contracts themselves.

Speaker Change: Contracts, where we're.

Speaker Change: We have entitlement to gas per year, but that is based off of what they are bringing to market right and.

Speaker Change: And there is a there is a priority in terms of in terms of gas and <unk>.

Speaker Change: So if the gas is available.

Speaker Change: And our contracts should be fulfilled yes, those restitution that today that are that should be should be should.

Speaker Change: It should be paid and that certainly when we say we're in discussions with our gas suppliers. These are some of the discussions are being had.

Richard W. Sumner: Now, if the gas is not available, and their portfolio is not delivering, that's another issue. We don't have delivery or pay obligations on those gas contracts if the gas is not producing. So I think there are two issues there, and we're dealing with both of them right now.

Speaker Change: Now if the gas is not available in their.

Speaker Change: <unk> portfolio is not delivering that's another issue, we don't have deliver or pay obligations on those those those gas contracts. If the gas is not is not producing so so I think there's two issues there and we're dealing with both of them right now.

Rich Sumner: We don't have deliver or pay obligations on those gas contracts if the gas is not producing. So I think there's two issues there, and we're dealing with both of them right now.

Richard W. Sumner: Very helpful. And as a follow-up, on the demand side of things, in the press release, you guys talked about global methanol demand being up sequentially. I just wanted to get a better sense of what the inventory situation looks like. Is demand improving, maybe potentially because of a restock? And part and parcel with that, what are you guys seeing above and beyond just the MTO side in terms of Chinese demand? And maybe, if you could, on the Chinese side, also parlay that with if you are possibly seeing any possible shutdowns in Chinese capacity as well. I will try.

Hassan Ahmed: Very helpful. And as a follow-up, on the demand side of things, in the press release, you guys talked about global methanol demand being up sequentially. You know, just wanted to get a better sense of, you know, what the inventory situation looks like. Is demand improving, maybe potentially because of a restock? And, you know, part and parcel with that, what are you guys seeing above and beyond just the empty outside in terms of Chinese demand. And maybe if you could on the China side also parlay that with, if you're possibly seeing any maybe shutdowns in Chinese capacity as well.

Speaker Change: Very helpful and as a follow up.

Speaker Change: On the demand side of things.

Speaker Change: And in sort of the press release, you guys talked about global methanol demand being up sequentially.

Speaker Change: Wanted to get a better sense of what the inventory situation looks like is demand improving maybe potentially because of a restock and part and parcel with that what are you guys seeing above.

Speaker Change: Above and beyond just the MTO side in terms of Chinese demand and maybe if you could on the China side also Paul laid out with if you're possibly seeing any maybe shutdowns in Chinese capacity as well.

Richard W. Sumner: I will. Thanks, Hassan. In terms of overall demand, maybe I'll just give a snapshot of the market globally and look at last year and where we are this year. Last year, we would say the market was probably around 92Mt. That does include a slow start in China. But today, for the first half of 2024, we're probably in the 95Mt to 96Mt range.

Rich Sumner: I will, thanks, Asana. You know, in terms of overall demand, maybe I'll just give a snapshot of the market globally and look to last year and where we are this year. Last year, we would say the market was probably around 92 million tons. And that does include a slow start in China, but today, for the first half of 2024, we're probably in the 95 to 96 million tons. And that's with MTO; flats are slightly lower than last year. So when we think about demand growth, it's actually been pretty strong and healthy around the different sectors compared to last year.

Speaker Change: I will thanks Hassan I.

Speaker Change: And then in terms of overall demand, maybe I'll just give us snapshot of the of the market globally and look to last year and where we are this year last year, we would say the market was probably around 92 million tonnes.

Speaker Change: And that that does include a slow start in China, but today for the first half of.

Speaker Change: 2024, we're probably in the 95 to 96 million tonnes, and that's with MTO flat or slightly lower than last year. So when we think about the macro with it's actually been it's been pretty strong and healthy around the different sectors compared to last year.

Richard W. Sumner: That is with MTO flat or slightly lower than last year. However, when we think about demand growth, it's been pretty strong and healthy across the different sectors compared to last year. When we look around the markets outside of China, growth rates are about 3% over last year. But when we look in China, we're seeing growth rates for traditional demand at about 4% to 5% over last year. The energy-related demand that's in China, which is quite meaningful, is also at around 4% rates over last year.

Rich Sumner: You know, I think when we look around the markets outside of China, growth rates are about 3%, you know, over last year. And then when we're looking in China, we're seeing growth rates for traditional demand at about 4% to 5% over last year. And then the energy related demand that's in China, which is quite meaningful, is also at that around 4% rate over last year. So I think that's actually, you know, really putting stress on the methanol markets and the ability to meet that demand with supply. And that's where the MTO sector, I think, is really becoming that balance.

Speaker Change: You know I think when we look around the markets outside of China growth rates are about 3% over.

Speaker Change: Over last year, and then what we're looking in in China, we're seeing growth rates or traditional demand at about 4% to 5% over last year and then.

Speaker Change: Energy related demand in China, which is quite meaningful is also at around 4% rates over last year. So I think that's actually a.

Speaker Change: Really putting stress on the methanol markets and the ability to to meet that demand with supply.

Speaker Change: Lie and that's where the MTO sector. I think is is really becoming becoming cutting that balance.

Richard W. Sumner: I think that's really putting stress on the methanol markets and the ability to meet that demand with supply. That's where the MTO sector is really becoming. The Domestic Economy is still something we watch really closely, and domestic consumption, which we don't think is strong. Export markets have been stronger this year, which has helped bring that demand up. In terms of operating rates in China, we're seeing operating rates in China above 60%, which is reasonably high relative to past performance there, and so we don't think there's a lot of latency.

Rich Sumner: When we think about China demand, the domestic economy is still something we watch really closely, and domestic consumption, which we don't think is strong. Export markets have been stronger this year, which has helped bring that demand up in terms of operating rates in China. You know, we're seeing operating rates in China above 60%. So that's actually reasonably high relative to past performance there. And so we don't think there's a lot of latent capacity that can come on in China to meet this growing demand. So our view is that we are in a tight market. Inventories are reflective of that.

Speaker Change #124: When we think about China demand the domestic economy, it's still something we watch really closely and domestic consumption, which we don't think is strong export markets have been stronger. This year, which is has helped bring bring that demand up in terms of operating rates in China.

Speaker Change: We're seeing operating rates in China are above 60%.

Speaker Change: So that's that's actually.

Speaker Change: Reasonably high relative to past performance there and so we don't think there's a lot of latent capacity that can come on in China to meet this growing demand. So that's our view is is that we are in a tight market inventories are reflective of that there could be swings between when M. D O shuts down and when it.

Richard W. Sumner: Capacity that can come on in China to meet this growing demand. So we do, that's our view that we are in a tight market. Inventories are reflective of that. There could be swings between when MDO shuts down and when it starts up. But we would say we're in a pretty structurally tight market right now with inventories pretty tight.

Rich Sumner: There could be swings between when MTO shuts down and when it starts out. But we would say we're in a pretty structurally tight market right now, with inventories pretty tight.

Speaker Change: But I would say we're in a pretty structurally tight market right now with with inventory is pretty tight.

Richard W. Sumner: Very helpful, Rich. Thank you so much.

Hassan Ahmed: Very helpful, Rich.

Rich: Very helpful. Rich. Thank you so much.

Hassan Ahmed: Thank you so much.

Operator: Thank you for your questions. Our next question comes from the line of Nelson Ng with RBC Capital Markets. Your line is live.

Nelson Ng: Thank you for your question. Our next question comes from the line of Nelson Ng with RBC Capital Markets. Your line is live.

Speaker Change #107: Thank you for your question.

Nelson Ng: Our next question comes from line of Nelson, Inc. With RBC capital markets. Your line is live.

Nelson Ng: Your line is live. Great. Thanks. And good morning, everyone.

Nelson Ng: Great, thanks, and good morning, everyone. First question is on Trinidad in terms of tighten restarting and mothballing, Atlas. Now that you're kind of heading up to that point, should we expect any kind of one-time cost to impact EBITDA in Q3, and then also is the gas contract, the current one that's expiring, does it expire like in early September or at the end of September? So yeah, in terms of cost, you shouldn't expect any cost, and we are planning this to be quite a seamless transition from Atlas to tighten. So we are not expecting a lot of downtime or periods where we're not producing at all in Trinidad.

Nelson Ng: Thanks, and good morning, everyone. First question is on Trinidad in terms of tightened restarting and Mothballing Atlas.

Richard W. Sumner: The first question is on Trinidad in terms of Titan restarting and mothballing Atlas. Now that you're heading up to that point, should we expect any one-time costs to impact EBITDA in Q3? And then also, is the gas contract, the current one that's expiring, expires in early September or at the end of September?

Nelson: Now that you're kind of heading up to that point should we.

Speaker Change: We expect any kind of one time costs to to impact EBITDA in Q3.

Speaker Change #126: And then also is the gas contract. The current one that's expiring does it expire like in early September or at the end of September.

Speaker Change: Yeah.

Richard W. Sumner: In terms of cost, you shouldn't expect any cost. We are planning this to be quite a seamless transition from Atlas to Titan, so we are not expecting a lot of downtime or periods where we're not producing at all in Trinidad. When it relates to the gas contracts, you can think of a mid-September time frame for the change over there.

Speaker Change: So yeah. The in terms of cost you Shouldnt expect any any cost and we are planning this to be quite a seamless transition from Atlas to tightened. So we are not expecting a lot of downtime or periods, where we're not producing at all in Trinidad.

Rich Sumner: And then when you relate to the gas contracts, you can think mid-subtemper time frame for the change over there.

Speaker Change #114: And then when it relates to the gas contracts you can think mid mid September timeframe for the for the changeover there.

Richard W. Sumner: Okay, and then just to clarify on the Atlas asset: are there any, do you expect any like write-downs, or is there any debt still at Atlas that needs to be repaid? No debt.

Rich Sumner: Okay, and then just to clarify on the Atlas asset, are there any, do you expect any write-downs, or is there any debt still at Atlas that needs to be repaid over the coming months? No debt. And when we think about the asset values, we look at Trinidad as a group, and that's something we always review. I don't think we're going to point towards any asset write-downs at this time, but we do look at it. These assets are older assets, so we don't have ton of book values associated with them, but that's something we'll look at as we look at our account seats here.

Speaker Change: Okay, and then just to clarify on the Atlas asset are there any like do you expect any like write downs or is there any.

Speaker Change #116: That still at Atlas that needs to be repaid over the next over the coming months.

Richard W. Sumner: No death, and, um... When we think about asset values, we look at Trinidad as a group, and that's something we always review. I don't think we're going to point to any asset write-downs at this time, but we do look at it. These assets are older assets, so we don't have a ton of book value associated with them, but that's something we'll look at.

Speaker Change #116: No debt and.

Speaker Change #134: When we think about the asset values do we look at turn it out as a group and that's something we always review I don't think where we're going to point towards any asset write downs at this time, but we do look at these assets or are theyre older assets. So we don't have a ton of book value associated with them and but that's something.

Speaker Change #116: We will look at as we look at our accounts each year.

Nelson Ng: Great, thanks.

Richard W. Sumner: Great, thanks. And then my next question relates to the development of entropy. So I guess, in the big picture, you're not investing that much capital. So I think your partner is going to be investing most of the CapEx, or it'll be coming from grants. So, from your perspective... Like, from a cost perspective, is it mostly the operating cost and the CO2 feedstock that you'll be using? So, is it... somewhat, neutral from a cost per metric ton of methanol production? Or is it going to cost you more because you're producing lower or less carbon-intensive methanol?

Nelson Ng: And then my next question relates to the entropy development.

Speaker Change #108: Great. Thanks, and then my next question relates to the entropy.

Speaker Change #105: Development, So I guess big picture you're not.

Rich Sumner: So I guess big picture, you're not investing that much capital, so I think your partner is going to be investing most of the catbacks, or it'll be coming from grants. So, from your perspective, from a cost perspective, is it mostly the, are you paying for the operating cost and the CO2 feedstock that you'll be using? So is it somewhat neutral from a cost per metric ton of methanol production? Or is it going to cost you more because you're producing lower or less carbon intensive methanol?

Speaker Change #131: Investing without much capital. So I think your partners will be investing most of the capex or that will be coming from grants.

Speaker Change #119: So from your perspective.

Speaker Change #148: Like from a cost perspective is it mostly the.

Speaker Change #115: Like are you paying for the operating costs and the C O two feedstock that you'll be using.

Speaker Change #113: So is it.

Speaker Change #113: Somewhat.

Speaker Change #113: Neutral from a from a cost per.

Speaker Change #113: Metric ton of methanol.

Speaker Change #105: Duction or is it going to cost you more because you're producing.

Speaker Change #106: Or or a less carbon intensive methanol can you just talk about the economics, assuming the pre feed and feed and all that.

Richard W. Sumner: Can you just talk about the economics? Assuming the pre-feed and feed and all that gives you the green light to move forward with the project. Yeah.

Rich Sumner: Can you just talk about the economics? Assuming the feed and feed and all that gives you the green light to move forward with the project. Yeah, thanks. So a commercial arrangement's aren't finalized. That's one thing I want to start with. We're part of the pre-feed. We'll also be looking at what the commercial structures should look like. And so I think when we, in our initial press release, we said entropy would own, well, construct it own the unit. Obviously, they are the technology provider and the experts on this technology, but we're looking at the commercial arrangements as part of the pre-FEED process.

Speaker Change: It gives you the green light to move forward with the project.

Speaker Change: Yeah.

Speaker Change: Thanks.

Richard W. Sumner: Thanks. So, you know, the commercial arrangements aren't finalized yet. That's one thing I want to start with. As part of the pre-feed, we'll also be looking at what the commercial structures should look like. And so I think when we, in our initial press release, we said Entropy would own, construct, and own the unit. Obviously, they are the technology provider and the experts on this technology, but we're looking at commercial arrangements as part of the pre-feed process.

Speaker Change: So.

Speaker Change #129: Our commercial arrangements aren't finalized that's one thing I want to I want to start with where are part of the pre feed we will also be looking at what the commercial structures should look like and so.

Speaker Change #135: So I think when we what we in our initial press release, you said <unk> would own.

Speaker Change #129: Construct and own the unit obviously, they are the technology provider and the experts on this technology, but where we're looking at the commercial arrangements as part of the.

Speaker Change: Pre feed process, but when you think about the economics you're right.

Richard W. Sumner: But when you think about the economics, you're right. Like the, as I said, two-thirds of the economy will come from what? EPA, or the Economics of Producing Methanol, to produce incremental tons. And then the remainder will come through sequestration, the value of carbon credits for storing and restoring CO2 underground. So you can think of the methanol generating two-thirds of the value and the carbon credits generating one-third of the value. And as it relates to those prices, you know, we're looking at what it takes to make this project work. And in addition, I think what regulatory support is available that will help push this forward as well.

Rich Sumner: But when you think about the economics, you're right. Like the, as I said, two-thirds of the economics will come from what we pay or the economics of producing methanol to produce incremental tons. And then the remainder will come through sequestration, the value of carbon credits for storing, for storing CO2 underground. So you can think of the methanol generating two thirds of the value and the carbon credits generating one third of the value, and as it relates to those pricing, you know, we're looking at what it takes to make this project work. And in addition, I think what Regulus Tory support is available that will help push this forward as well.

Speaker Change #100: As I said two thirds of the economics will come from what we pay or the economics of producing methanol to produce incremental tons and then the remainder will come through sequestration the value of carbon credits for restoring for storing cotwo underground.

Speaker Change:

Speaker Change: So you can think of the methanol generating two thirds of the value and the carbon credits generating one third of the value in and as it as it relates to those pricing you know we're looking at.

Speaker Change: At what it takes to make this project work and in addition, I think what regulatory support is available that will help push this forward as well so it all of that we're looking through the pre feed process.

Rich Sumner: So at all of that, we're looking through the pre-feed process.

Rich Sumner: Okay, so I guess very big picture for it to work from Methanex's perspective given that you're mainly kind of paying for the CO2. Do you want to be kind of cost neutral but generate lower carbon intensive methanol? Is that your, like, is that the benefit you're looking for? I think maybe your question is a little bit: are we expecting to generate a blue premium or something that allows us to market this above cost? I don't think that the blue, if that's the question, I don't think the blue. There's a blue methanol market today that we're expecting is going to support this project, so that market really is undeveloped.

Richard W. Sumner: So, I guess, the very big picture, for it to work from Methanex's perspective given that you're mainly kind of paying for the CO2 is do you want to be kind of cost-neutral or something like that? I think maybe your question is a little bit, are we expecting to generate a blue premium or something that allows us to market this above cost? I don't think that the blue, if that's the question, I don't think the blue, there's a blue methanol market today that we're expecting.

Speaker Change #145: Okay. So I guess very big picture.

Speaker Change #146: For it to work from Methanex is perspective, given that you are mainly kind of paying for the C O two.

Speaker Change: Is do you want to be kind of cost neutral but.

Speaker Change: Generate lower carbon intensive.

Speaker Change #128: Methanol is that you're right is that the benefit youre looking for or I think I think maybe your question is a little bit are we expecting to generate a blue premium or something that allows us to market. This above cost I I don't think that the blue. If that's the question that I don't think the blue Theres a blue method.

Speaker Change: All market today that we're we're we're expecting is going to support this project that that market really is undeveloped.

Richard W. Sumner: That market really is undeveloped, and so what we need is the value of this methanol from a conventional methanol plant to work and to make sense in terms of generating additional earnings or EBITDA from that methanol production.

Rich Sumner: And so what we need is the value of this methanol from a conventional methanol to work and to make sense in terms of generating additional earnings or even from that methanol production. I see. That makes sense.

Speaker Change: And so what we need is the value of this methanol from a from a conventional methanol to work.

Speaker Change: And to make sense in terms of.

Speaker Change: Generating additional earnings or or or EBITDA from from that methanol production.

Richard W. Sumner: I see. That makes sense. I'll leave it there. Thank you.

Speaker Change #139: I see that makes sense I'll leave it there. Thank you.

Nelson Ng: I'll leave it there. Thank you.

Operator: Thank you for your questions. Our next question is from the line of Matthew Blair with TPH. Your line is live.

Nelson Ng: Thank you for your questions.

Speaker Change #130: Thank you for your questions.

Matthew Blair: Our next question is from the line of Matthew Blair with TPH; your line is left. And I thank you.

Speaker Change #125: Our next question is from the line of Matthew Blair with T. P. H Your line is live.

Matthew Robert Lovseth Blair: And I thank you. Good morning, Rich.

Matthew Robert Lovseth Blair: Thank you good morning, Rich could you give us a sense on exactly how much inventory you're looking to build in the third quarter or any sort of metrics like days inventory, you're targeting with Q3 online.

Matthew Blair: Good morning, Rich. Could you give us a sense on exactly how much inventory you're looking to build in the third quarter or any sort of metrics like days inventory that you're targeting with G3 online? Yeah, I think first and foremost, I think a lot of the inventory will be managed through our sales levels, and we don't expect that our sales levels change dramatically with G3. What we will see as a mix of inventory will have more produce product and less purchase product in our system. So it's we're not targeting a change in inventory to support G3.

Matthew Robert Lovseth Blair: Yeah.

Rich: Yeah I think.

Richard W. Sumner: Could you give us a sense of exactly how much inventory you're looking to build in the third quarter or any sort of metrics like days, inventory you're targeting,

Speaker Change #118: First and foremost I think a lot of the inventory will be managed through our sales levels and we don't we don't expect that our sales levels change dramatically with G. III. What we will see is a mix of inventory will have more produce product and less purchase product in our in our system. So we're not targeting.

Richard W. Sumner: Yeah, I think First and foremost, I think a lot of the inventory will be managed through our sales levels, and we don't expect that our sales levels will change dramatically with G3. What we will see is a mix of inventory. We'll have more produced product and less purchased product in our system. We're not targeting a change in inventory to support G3. I do think what you should expect to see is that this is lower-cost inventory that we'll be holding versus buying product on the market. There could be some positives on our working capital that we can look forward to.

Speaker Change #118: A change in inventory to support G. III and do you think what you will.

Rich Sumner: Do you think what you should expect to see is that this is lower cost inventory that will be holding versus buying product on the market. So, you know, there could be some positives on our working capital that we can look forward to on that.

Speaker Change #118: We shouldn't expect to see is is that this is lower cost inventory.

Speaker Change #118: That will be holding versus buying product on the market. So you know.

Speaker Change #118: Now there could be some positives on our working capital that we can look forward to on that.

Rich Sumner: Sounds good. And then the G3 delay costs were 25 million in the first quarter, down to 13 in the second quarter. Should we cancel in anything for the third quarter? Oh, well, yeah, sorry, one month of G3 delay cost for July. And that will be, you know, kind of you could take our number in the second quarter divided by three.

Richard W. Sumner: Sounds good. And then the G3 delay costs were $25 million in the first quarter, down to $13 million in the second quarter. Should we pencil in anything for the third quarter? Nope.

Speaker Change #117: Sounds good and then B G. III delay costs were $25 million in the first quarter down to 13 in the second quarter should we pencil in anything for the third quarter.

Speaker Change #117: No.

Richard W. Sumner: Oh, well, yeah, sorry, one month of G3 delay costs for July, and that will be, you know, kind of like you could take our number in the second quarter and divide by two.

Speaker Change #136: Oh, well, yeah, sorry, one months of G III delay cost for July.

Speaker Change #133: And that will be you know got up you could take our number in that.

Speaker Change #123: And then in the second quarter divided by three.

Rich Sumner: Great. Thank you.

Speaker Change #103: Great. Thank you.

Speaker Change #103: Okay.

Lawrence Alexander: Our next question is from the line of Lawrence Alexander with Jeffries. Your line is live.

Operator: Our next question is from the line of Lawrence Alexander with Jeffreys.

Speaker Change #103: Our next question is from the line of Laurence Alexander with Jefferies.

Speaker Change #104: Your line is live.

Lawrence Alexander: Good morning. Could you give a quick update on, sort of, how quickly the marine demand should be flowing through in the next couple of years? I mean, we see kind of a longer-term build, right? Which is how much of an impact we should be thinking of for next year. And how much of, how are the, those companies discussing with you, sort of, you know, supply, given how the market looks to be getting? Yeah, thanks, Laurence.

Laurence Alexander: Good morning, could you give a quick update on sort of how quickly marine demand should be flowing through in the next couple of years? I mean, we see kind of the longer-term build rate, which is how much of an impact we should be thinking of for next year. And how much of, how are those companies discussing with you sort of, you know, supply given sort of how tight the market looks to be getting?

Laurence Alexander: Good morning could you.

Laurence Alexander: Quick update on sort of how quickly will the marine demand should be flowing through in the next couple of years I.

Speaker Change #120: I mean, we see kind of a longer term build rate because how much of an impact that we should be thinking of for next year.

Speaker Change #137: And how much of them.

Speaker Change #140: How are the booze companies.

Speaker Change #150: Discussing with you through.

Speaker Change #104: Supply given.

Speaker Change #104: Quite the market looks to be getting.

Richard W. Sumner: Yeah, thanks, Lauren. So on marine demand, maybe maybe talk about where we are today and then how that'll how that will kind of develop over time. Right now, we talked about last year being the first year where methanol ships outpaced LNG in terms of the order book. Right now, we're expecting that order book to be well over $300,000. 300 ships on the water in the 2028-2029 time frame, and I think what we're doing is talking about demand potential because it's difficult to say exactly what the demand will be, and when we quote demand potential, we're not saying this is what the total demand will be.

Speaker Change #104: Yeah. Thanks, Lauren so on the marine demand, maybe maybe talk to where we are today and and then how that will how that will develop over time.

Rich Sumner: So, on the marine demand, maybe, maybe talk to where we are today, and then how that'll, how that will kind of develop over time. Right now, we talked about last year being the first year where Methanex all ships outpaste LNG in terms of the order book. Right now, we're expecting that the order book is well over 300 ships on the water in the 28, 29 timeframe. And I think what we, what we're, what we're doing is talking about demand potential, because it's difficult to say exactly what the demand would be. And when we close demand potential, we're not saying this is what the total demand will be, but the demand potential will start off next year, probably. The total demand potential is somewhere close to 10 million tons now.

Speaker Change #112: Right now.

Speaker Change #147: We talked about last year being the first year, where methanol ships outpaced LNG.

Speaker Change #144: In terms of the order book right now we're expecting that order book is well over 300 300 ships on the water and the 28 2009 timeframe and I think what we.

Speaker Change #141: What we're doing is talking about demand potential because it's difficult to say exactly what the demand would be and why do we quote demand potential we're not saying this is what the total demand will be but the demand potential we will start off next year probably.

Richard W. Sumner: But the demand potential will start off next year, probably, the total demand potential. You know, there'll be a million and a half or so next year, and then you build up to three and a half, and then you're up to seven, and then you work your way into the 10 million tons of demand potential.

Speaker Change #104: Total demand schedule somewhere.

Speaker Change #104: Close to 10 million tonnes now.

Rich Sumner: You know, there will be a million and a half or so next year, and then you build up to three and a half, and then you're up to seven, and then you work your way into the 10 million tons of demand potential. Now, the big question is, is what will they actually burn, because these fuel fuel vessels? And to your point, we're having a lot of discussions with the shipping companies about supply. And I think a lot of those discussions start with low carbon or green methanol, because that's the intent here; a lot of these ships are looking to methanol from a deprivonization perspective.

Speaker Change #103:

Speaker Change #103: It will be.

Speaker Change #103: And a half or so next year and then you build up to three and a half and then you're up to seven and then you work your way into that 10 million tons of demand, but that's now the big question is what will they actually burned because these are dual fuel vessels and to your point, we were having a lot of discussions with.

Richard W. Sumner: The big question is, what will they actually burn, because these are fuel-to-fuel vessels, and to your point, we're having a lot of discussions with the shipping companies about supply. I think a lot of those discussions start with low-carbon or green methanol because the intent here is that a lot of these ships are looking to methanol from a decarbonization perspective. I think they're seeing that, one, there's not a lot of availability, and two, the cost is really high to begin with.

Speaker Change #103: The shipping companies about supply and I think a lot of those discussions start with.

Speaker Change #103: Low carbon or green methanol because that that's the intent here is a lot of these ships are looking to.

Speaker Change #109: Methanol from a decarbonization perspective, I think they're seeing that debt that one there's not a lot of availability and to the cost is really high to begin with so were also we are in discussions as well as well about conventional methanol.

Rich Sumner: I think they're seeing that one, there's not a lot of availability, and two, that the cost is really high to begin with. So we're also, we are in discussions of as well about conventional methanol. I think securing supply is going to be critical, and that's where our low carbon solutions team is working on with the shipping company. So it's really hard for us to kind of give you precise numbers until we work through, you know, starting to see securing some contracts and working with the shipping industry more as they make their decisions on these future fuel choices they're going to make.

Richard W. Sumner: We are in discussions as well about conventional methanol. I think securing supply is going to be critical, and that's where our low-carbon solutions team is working with the shipping companies. It's really hard for us to give you precise numbers until we've worked through starting.

Speaker Change #109: I think securing supply is going to be critical and that's where our low carbon solutions team is working on with the shipping company. So it's really hard for us to kind of give you precise numbers until we've worked through you know are starting to see secure securing some contracts.

Speaker Change #109: And working with the shipping industry more as they make their decisions on the on these future field choices, they're going to make so we hope to be able to give you a more more insight as this develops because we're getting we are getting closer to the time frames, where these ships are in the water.

Rich Sumner: So we hope to be able to give you more insight as this develops, because we're getting closer to the timeframes where these ships are in the water.

Rich Sumner: Thank you. Thank you for your question.

Speaker Change #109: Thank you.

Speaker Change #109: Okay.

Operator: Thank you for your question. And ladies and gentlemen, final call. If you would like to ask a question today, remember it's star followed by the number one on your keypad. We have a question from Charles Niver with Piper Sandler. Your line is live.

Speaker Change #138: Thank you for your questions, ladies and gentlemen final call. If you would like to ask a question today remember its star followed by the number one.

Operator: The Ladies and Gentlemen, final call.

Operator: If you would like to ask a question today, remember it's star followed by the number one on your keypad.

Speaker Change #149: On your keypad, we have a question from Charles <unk> with Piper Sandler Your line is live.

Charles Nybert: We have a question from Charles Nybert with Piper Sandler; your line of life. Morning, guys. You talked about MTO being sort of the tipping or balancing point for the industry. Can you talk a little bit about where the price of methanol needs to be to sort of push it out or take it back in? I mean, we're sort of balancing on the line maybe now. Can we go higher and still keep the MTO plants in, or, you know, and this is all assuming that the ethylene and polyethylene markets stay approximately where they are. But under that circumstance, where are we on that price?

Charles Niver: Morning, guys. You talked about MTO being sort of the tipping or balancing point for the industry. Can you talk a little bit about where the price of methanol needs to be to sort of push it out or take it back in? I mean, we're sort of balancing on the line maybe now. Can we go higher and still keep the MTO plants in? And this is all assuming that the ethylene and polyethylene markets stay approximately where they are? But under that circumstance, where are we on that pricing?

Speaker Change #127: Good morning, guys.

Speaker Change #110: Talked about MTO being sort of the tipping or balancing point for the for the industry can you talk a little bit about where the price of methanol needs to be to sort of push it out or take it back in I mean, we're sort of balancing on the line maybe now can we go higher and still keep the MTO plant in ore.

Speaker Change #110: And this is all assuming that the ethylene and polyethylene markets stay approximately where they are but under that circumstance where are we on that pricing.

Richard W. Sumner: Yeah, I'll start with the pricing. We're at a very low price. Low, historically low. So it's hard to see it getting any lower... We've had ethylene propylene prices in Asia between $800 and $900 per tonne for quite some time. And that, just on a historical basis, that would be correlated to about a $40 oil price environment. And, you know, so we think that there really is a low, at a very low cycle right now.

Rich Sumner: Yeah, I must start with the pricing. We're at very low pricing, low, like historically low. So it's hard to see it getting worse. We've had an athlete in Prokaling Prices in Asia, between $809 per ton for quite some time. And that, just in a historical basis, that would be correlated to about a $40 oil price environment. And so we think that there really is a low, at the very low cycle right now. That translates into a C2, C3, kind of straight affordability around where the cost curve is today. So you know, call it that 280 level.

Speaker Change #110: Yeah.

Speaker Change #151: I'll start with the pricing were at very low pricing low like historically low.

Speaker Change #110: So it's hard to see it getting worse, we've had of ethylene and propylene prices in Asia, you between 800 and $900 per ton for quite some time and that just sort of a historical basis that would be correlated to about a $40 oil price environment and so we think that there really is a low at a very.

Speaker Change #110: Low cycle right now.

Richard W. Sumner: That translates into a C2, C3 kind of straight affordability at around where the cost curve is today. You know, call it that 280 level. These guys have integrated, you know; there are a lot of them that are integrated downstream. So when you look at integration and the full value chain, there's usually more value when you go further down. And so it's higher than that. But I think when we start moving into pricing for methanol, you know, kind of getting above, you know, some pressure on their operations.

Speaker Change #110: That translates into a <unk> kind of straight affordability at around where the cost curve is today, so call it that to 80% level.

Rich Sumner: These guys have integrated; you know, there are a lot of them are integrated downstream. So when you look at integration and the full value chain, there's usually more value when you go further down. And so it's higher than that. But I think when we start moving into pricing for math and all, you know, kind of getting above, you know, the 320 to 350 range, we start to see, you know, some pressure on their operations. And today, pricing is in and around that 290 level, and it's holding. So, and we've seen one MTO unit recent large scale just recently start up.

Speaker Change #110: These guys have integrated you know there are a lot of them are integrated downstream. So when you look at integration and the full value chain, there's usually more value. When you go further down and so it is higher than that but I think when we start moving into pricing for methanol.

Speaker Change #110: Getting above.

Speaker Change #110: The.

Speaker Change #110: 320 to 350 range, we start to see.

Richard W. Sumner: And today, pricing's in and around that $290 level, and it's holding. And we've seen one large-scale MTO unit just recently start up. So, you know, I think we're kind of in this where the cost curve and MTO affordability are in this $280 to $320 kind of level, and we've seen that be quite stable in China around that. If there's an improvement in the ethylene and propylene markets, you would expect that the ability to pay goes up. And increasingly, this is a demand-driven industry right now. And so we think that that would further support prices.

Charles Niver: Great, thanks very much.

Speaker Change #110: Some pressure on on their operations and today pricings that at around that 290 level and Thats holding so and we've seen one MTO units raised with large scale. Just recently start up. So you know I think we're kind of in this where cost curve and MTO affordability is in that $2.

Rich Sumner: So, you know, I think we're kind of in this, we're cost curve and MTO affordability is in this 280 level. So, you know, it's going to be a $320 level. And we've seen that be quite stable in China around that. If there's an improvement in definitely and properly markets, you would expect that the ability to pay goes up. And increasingly, this is a demand-driven, driven industry right now. And so we think that that would would further support pricing. Thanks very much.

Speaker Change #110: 80 to $320 kind of level and we've seen that be quite stable in China around that if there's an improvement in ethylene and propylene markets. You would expect that the ability to paint goes up and increasingly this is a demand driven driven industry right now and so we think that that would.

Speaker Change #110: Further support pricing.

Speaker Change #121: Okay. Thanks very much.

Speaker Change #121: Okay.

Rich Sumner: Thank you for your question.

Richard W. Sumner: Thank you for your question, and ladies and gentlemen, there are no further questions at this time, and I'll now turn the call back over to Mr. Rich Sumner.

Speaker Change #143: Thank you for your question and ladies and gentlemen, there are no further questions at this time and I'll now turn the call back over to Mr. Rich Sumner.

Operator: And ladies and gentlemen, there are no further questions at this time.

Rich Sumner: And I'll now turn the call back over to Mr. Rich Sumner. All right. Well, thank you for your questions and interest in our company.

Richard W. Sumner: Thank you for your questions and interest in our company. We hope you'll join us in November when we update you on our third quarter results.

Richard W. Sumner: Alright, well. Thank you for your questions and interest in our company, we hope you'll join US in November when we update you on our third quarter results.

Rich Sumner: We hope you'll join us in November when we update you on our third quarter results. Thank you.

Operator: Thank you, and this does conclude today's conference call. You may now disconnect. Have a great day.

Speaker Change #142: Thank you and this does conclude today's conference call. You may now disconnect have a great day.

Operator: And this does conclude today's conference call. You may now disconnect.

Speaker Change #121: Yeah.

Speaker Change #121: Yeah.

Speaker Change #121:

Speaker Change #121: Yeah.

Speaker Change #121:

Speaker Change #121: [noise].

Speaker Change #121:

Speaker Change #121: