Q2 2024 Vermilion Energy Inc Earnings Call

Sylvie: Good morning, my name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vermilion Energy Q2 conference call. Note that all lines have been placed on mute to prevent any background noise.

Good morning, My name is Sylvia and I will be your conference operator today at this time I would like to welcome everyone to the Vermilion Energy Q2 conference call note that all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If she would like to ask a question. During this time simply press star.

Sylvie: After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press start in number one on your telephone keypad. And if you would like to withdraw your question, please press start too. Thank you.

Number one on your telephone keypad and if she would like to withdraw your question. Please press star two thank you.

Dion Hatcher: Mr. Dion Hatcher, you may not begin your conference.

Mr. <unk>: Mr. <unk> you May now begin your conference.

Dion Hatcher: Thank you, Sylvie.

Speaker Change: Thank you Sylvie well good morning, ladies and gentlemen, thank you for joining us Andy on catcher President and CEO of Vermilion energy.

Dion Hatcher: Well, good morning, ladies and gentlemen. Thank you for joining us. I'm Dion Hatcher, President, CEO of Vermilion Energy. With me today are Lars Glemser, Vice President, CFO, Darcy Kerwin, Vice President, International and HSC, Brandon McQuade, Vice President, North America, and Kyle Preston, Vice President, Investor Relations.

Speaker Change: With me today are Liars lobster, Vice President CFO, Darcy Kerwin, Vice President International and HFC.

Speaker Change: Equate Vice President North America, and KOL, Preston Vice President of Investor Relations will be referencing a powerpoint presentation to discuss our Q2 2024 results presentation can be found on our website under invest with us.

Dion Hatcher: We'll be referencing a PowerPoint presentation to discuss our Q2 2024 results. The presentation can be found on our website under and best with us in Events and Presentations. Please refer to our advisory and forward-looking statements at the end of this presentation. It describes a forward-looking information, non-measures, and oil and gas terms to you today. And it relies on risk factors and assumptions relevant to this discussion. Production during the second quarter averaged 84,974 buoys per day, which was at the top end of our Q2 guidance range of 83 to 85,000 buoys per day, mainly due to the early start-up of a RBC Mommy battery.

Speaker Change: And presentations.

Unknown Speaker: Please refer to our advisory on forward-looking statements at the end of this presentation. It describes forward-looking information, non-GAAP measures, and oil and gas terms. We repurchased 2.8 million shares during Q2 for total proceeds of $47 million and also paid approximately $19 million in dividends for a total return of $66 million, or 62% of excess free cash flow for the quarter. I'll expand on each of these in the upcoming slides

Speaker Change: Please refer to our advisory on forward looking statements at the end of this presentation describes forward looking information non-GAAP measures and oil and gas terms do you see.

And there were lots of risk factors and assumptions relevant to this discussion.

Speaker Change: Production during the second quarter averaged 84974 <unk> per day, which was at the top end of our Q2 guidance range of 83 to 85000 views per day.

Speaker Change: Mainly due to the early start up of our BC Montney battery on a year over year basis production increased 2% or 6% on a per share basis.

Dion Hatcher: On a year-by-year basis, production increased 2%, or 6% on a per-year basis. We generated 237 million of fund flows and 126 million of free cash flow, which was lower than Q1, mainly due to lower realized commodity hedge gains. During the second quarter, we reduced net debt by further $38 million to $907 million, and significantly increased our pace of share buybacks, as we transitioned to return a capital pay with targeted 50% of an annual excess free cash flow. We were purchased 2.8 million shares during Q2 for total proceeds of $47 million, and also paid at approximately 19 million dividends for a total return of $66 million or 62% of excess free cash flow for the quarter.

Speaker Change: We generated $237 million of fund closed at 126 million of free cash flow, which was lower than Q1, mainly due to lower realized commodity hedge gains.

Speaker Change: During the second quarter, we reduced net debt by a further 38 million to $907 million and significantly increased our pace of share buybacks as we transition to a return of capital payout target of 50% of an annual excess free cash flow.

Speaker Change: We repurchased two 8 million shares during Q2 for total proceeds of $47 million and also paid approximately $19 million of dividends for a total return of $66 million or 62% of excess free cash flow for the quarter.

Dion Hatcher: Here to date, we have returned $121 million, or 36% of excess free cash flow.

Speaker Change: Year to date, we have returned $121 million or 36% of excess free cash flow.

Dion Hatcher: During the second quarter, we also achieved key operational milestones with the start-up of the Micah and Monty battery in British Columbia, and the SA-10 gas fund in Croatia. This is in addition to the five successful expiration wells during the first half of the year. We'll expand on each of these in the upcoming slides. Production from our international operations average 29,987 views per day in Q2, reflecting scheduled maintenance on several assets during the quarter. In Croatia, we commissioned our gas plan on the SA-10 block, slightly had a schedule. We currently have both wells on production, and they are expected to ramp up through the third quarter.

Speaker Change: During the second quarter, we also achieved key operational milestones with the startup of the bike battery British Columbia, and the SA 10 gasoline increase yet. This is in addition to the five successful exploration wells drilled in Europe. During the first half of the year <unk>.

Speaker Change: Span in each of these in the upcoming slides.

Speaker Change: Production from our international operations averaged 49987 yesterday in Q2, reflecting scheduled maintenance on several assets during the quarter.

Speaker Change: In Croatia, we commissioned our gas plant on the SA 10 block slightly ahead of schedule.

Speaker Change: We have both wells on production and they are expected to ramp up through the third quarter.

Unknown Speaker: Yes, a 10 asset will support the European gas waiting in our portfolio, which represents approximately 40% of our corporate natural gas production or over 100 million cubic feet per day. This new gas production also benefits from higher natural gas prices in Croatia for gas sales at a premium to other European natural gas producers. For the past two years, we have grown our European natural gas production by over 15%. And we continue to organically grow our European natural gas franchise. The TTF benchmark gas price averaged $13.62 per MNPTU in Q2.

Dion Hatcher: The SA-10 asset will support the European gas waiting in our portfolio, which represents approximately 40% of our corporate natural gas production, or over 100 million cubic feet per day. This new gas production also benefits from stronger natural gas prices in Croatia, for gas cells at a premium to other European natural gas benchmarks. For the past two years, we have grown our European natural gas production by over 15%. And we continue to organically grow our European natural gas friends.

Speaker Change: Yes, Hey, Ted asset will support the European gas weighting in our portfolio, which represents approximately 40% of our corporate natural gas production or over 100 million cubic feet per day. This new gas production also benefits of a stronger natural gas prices increase yet for gas sells at a premium to other European natural gas benchmarks for the.

Speaker Change: The past few years, we have grown our European natural gas production by over 15%.

Speaker Change: We continue to organically grow our European natural gas franchise TT.

Dion Hatcher: Chess. The TTF benchmark gas price averaged $13.62 per MNVTU in Q2, which represents a 16% increase over Q1, and based on forward strip, is expected to further strengthen in the second half of this year and next year. The TTF 4 price is currently trading at approximately $17.25, and we have We're very excited with the long-term development potential of our Germany and Croatia assets, and I will speak more about how we expect these two countries to provide meaningful organic growth in the following slides. In Germany, we are focused on the successful discovery of first deep gas exploration well.

Speaker Change: TTS benchmark gas price averaged $13 62 per <unk> in Q2 that represents a 16% increase over Q1 and based on forward strip is expected to further strengthen in the second half of this year and next year.

Unknown Speaker: That represents a 16% increase over Q1. And based on Ford Strip, it's expected to further strengthen in the second half of this year and next year. The TTF forward price is currently trading at approximately $17 for 2025, and we have approximately 44% of our European natural gas hedged at an average floor price of $17 for 2025.

Speaker Change: Tcf for price is currently trading at approximately $17 2025, and we have approximately 44% of our European natural gas hedged at.

Speaker Change: <unk> floor price of $17 for 2025.

Speaker Change: We're very excited with the long term development potential of our Germany, and accretion assets and I'll speak more about how we expect these two countries to provide meaningful organic growth in the following slides.

Unknown Speaker: In Germany, operations are focused on the successful discovery of our first deep gas exploration well. Testing was rescheduled to Q3, and we will continue to prepare for tie-in operations for the anticipated on-stream date of early 2025. In Croatia, as noted earlier, we completed construction of the gas plant on the SA-10 block in Q2, and then we commissioned the plant. Substance Through the quarter, we also completed drilling on the final well of this four-well program and discovered hydrocarbons across multiple zones.

Speaker Change: And Jeremy operations are focused on the successful discovery of first deep gas exploration well testing was rescheduled to Q3, and we will continue to prepare for tight operations for anticipated Onstream date early 'twenty five.

Dion Hatcher: Testing was rescheduled to Q3, and we will continue to prepare for tight operations for anticipated on-stream date early 25. We also plan to commence drilling on the second deep gas exploration well in the upcoming weeks. Second well is a higher risk prospect targeting a varied large structure, over 300 BCF growths of gas in place based on our internal estimates. Success on this prospect could allow for follow-up drilling given the size of the target structure. We have a 60% working interest in this well, which produces a risk exposure by limiting our dry-hole cost to the less than 10 million on an after-tax basis.

Speaker Change: I also plan to commence drilling on the second deep gas exploration well in the upcoming weeks second wells are higher risk prospect targeting a very large structure over 300 Bcf gross of gas in place based on our internal estimates.

Speaker Change: Access on this prospect could allow for follow up drilling given the size of the target structure.

Speaker Change: We have a 60% working interest in this well, which reduces our risk exposure by limiting our dry hole cost is less than $10 billion on an after tax basis.

Speaker Change: Okay great.

Dion Hatcher: In Croatia, as noted earlier, we complete a construction of the gas plan on the SA-10 block in Q2 and then we commission the plant in June. Both of the previous drilled gas wells are currently wrapping up production, which will increase our exposure to high net-back European natural gas. On the SA-7 block, we drilled one exploration well and completed two wells from the prior quarter. The first well tested over 300 barrels of light oil, while the second well tested at 4.5 million cubic feet per day of natural gas. Substance to the quarter, we also completed drilling on the final well of this four-wheel program and discovered hydrocarbons across multiple zones.

Speaker Change: Croatia as noted earlier, we completed construction of the gas plant on the SA 10 block in Q2, and then we commission the plant in June both of the previous drilled gas wells are currently ramping up production, which will increase our exposure to high netback European natural gas.

Speaker Change: The SA seven block, we drove one exploration well executed two wells from the prior quarter. The first well tested over 300 barrels of light oil while the second well tested at $4 5 million cubic feet per day of natural gas subsequent to the quarter. We also completed drilling the final well this four well program and discovered hydrocarbons across multiple zones.

Dion Hatcher: Three of these four wells are natural gas wells, allowing with their intention to organically grow our European natural gas franchise. Testing operations on the remaining two wells are planned for the second half of '24, while we continue to move forward with the permitting process and evaluating the long-term development potential of the SA-7 block. These four new discoveries are very encouraging as they represent a 100% success rate on our inaugural SA-7 exploration campaign. The service of validity are geological models while setting the foundation for future growth in Croatia. Production from our North American operations averaged 54,987 views at ANQ4 and increased a 4% from the previous quarter due to new production from our recent Micah Montenewells.

Speaker Change: Three of these four wells are natural gas false aligning with our intention to organically grow our European natural gas franchise testing operations of the remaining two wells are planned for the second half of 'twenty four.

Speaker Change: We continue to move forward with the permitting process and evaluate the long term development potential of the SA seven block.

Speaker Change: For new discoveries are very encouraging as they represent 100% success rate on our inaugural SA seven exploration campaign.

Speaker Change: To validate our geological models, while setting a foundation for future growth in Croatia.

Unknown Speaker: Production from our North American operations averaged 54,987 BUC in Q4, an increase of 4% from the previous quarter due to new production from our recent Micah-Montmey Wells. Construction of the BC Montany battery was completed during the quarter. The completion of this battery was an important milestone in our Montany development as it provides the runway for future production growth on our Montany assets. The startup of the micro battery will allow us to nearly double our monthly production to approximately 14,000 views a day in 2025. It will provide the platform for future expansion to 28,000 views a day. The commissioning of the facility went very smoothly, and the plant continues to perform very well.

Speaker Change: Production from our North American operations averaged 54987 be used today in Q4, an increase of 4% from the previous quarter due to new production from our recent Micah Montney wells at.

Dion Hatcher: At Micah, we drilled one and brought on production six BC Montenewells in advance of the start-up over BC Battery and late Q2. This is the sketch one we drilled two and completed one well. While in the US, we participated in the drilling and completion of five gross, 0.2 net non-operated oil wells. Construction of the BC Montenewe battery was completed during the quarter. The completion of this battery was an important milestone in our Montenewe development as it provides the runway for future production growth on our Montenewe Assum. Start-up of the Micah Battery will allow us to nearly double our monthly production to approximate 14,000 views today in 2025.

Mike: Mike can we drilled one and brought on production six BC Montney wells in advance of the start up of RBC battery in late Q2.

Speaker Change: The Saskatchewan, where we drilled two PD, one well while in the U S. We participated in the drilling and completion of five gross.

Speaker Change: Two net non operated all of us.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Construction of the BC Montney battery was completed during the quarter. The completion of this battery was an important milestone in our Montney development as it provides the runway for future production growth at our Montney asset.

Speaker Change: Startup of the mic at battery or allow us to nearly double our montney production to approximately 14000 be used today in 2025.

Dion Hatcher: I will provide the platform for future expansion to 28,000 views today through further devolulating the infrastructure in the coming years. Our team did a great job of getting these infrastructure projects completed and started on time and on budget. Commission of the facility went very smooth, and the plan continues to form very well. During a second quarter, we brought up production six new wells on the 16-28 pad prior to the start-up of the new battery. As shown on the blue line on this chart, these wells worked the strain prior to the start of the battery, and production is in line with our expectations for these wells.

Speaker Change: Provide the platform for future expansion to 28000 abuse a day.

Speaker Change: Richard through either further debottlenecking of the infrastructure in the coming years.

Speaker Change: The team did a great job of getting these infrastructure projects completed and started on time and on budget Commission of the facility went very smooth plant continues to perform very well.

Unknown Speaker: During the second quarter, we brought six new wells on the 16 to 28 pad prior to the start-up of the new battery. As shown on the blue line on this chart, these wells were constrained prior to the start of the battery, and production is in line with our expectations for these wells. Substance to the quarter, we completed five wells on the 9-21 BC pad and expect to bring these wells on in late Q3 2024.

Speaker Change: During the second quarter, we brought up production six new wells on the 16 to 20 pad prior to the start up of New battery is shown on the Blue line. On this chart. These wells work is trained prior to the start with the battery production is in line with our expectations for these wells.

Dion Hatcher: Substant to the quarter, we completed five wells on the 9-21 species pad, and expected to bring these wells on in late Q3, 2024. Construction of our water hub infrastructure adjacent to the data through three-batting was also completed substance to the quarter. Start-up of this water hub is expected to allow for up to 55% recycling water means and reduce capital costs by approximately 650,000 per well. On our most recent wells on the 9-21 pad, they were completed in significantly less time than previous wells used at approximately 30% less water, resulting in a approximately 15% completion cost savings or a million dollars per well.

Speaker Change: Substitute the quarter, we completed five wells under 90, 21, BC pad express to bring these wells on in late Q3 2024.

Unknown Speaker: Construction of our water hub infrastructure adjacent to the 833 battery was also completed subsequent to the quarter. The startup of this water hub is expected to allow for up to 55% recycling where water needs are, and reduce capital costs by approximately $650,000 per well. We continue to drive efficiencies in our Montany operations as our activity level increases. I will now pass it over to Lars to discuss shareholder returns and a...

Speaker Change: Construction of our water hub infrastructure adjacent to the 83 three batting with also completed subsequent to the quarter startup of this water how does he expects that allow roughly 55% recycling water needs.

Speaker Change: Capital cost by approximately 650000 per well.

Speaker Change: At our most recent wells on the 90 21 pad. They were completed in significantly less time than previous wells use approximate 30% less water, resulting in approximately 15% completion cost savings or $1 million per well.

Dion Hatcher: We continued to drive efficiencies and our mountaineer operations as our activity level increases.

Speaker Change: Continuing to drive efficiencies in our Montney operations as our activity level increases I will now pass it over to Lars discuss shareholder returns and it would look.

Lars Glemser: I will now pass it over to the lawyers to discuss the shareholder returns, and they will look.

Lars Glemser: Thank you, Dion. As Dion mentioned during the beginning of the presentation, we significantly increased our pace of share buybacks during the second quarter. As you recall, we achieved our 1 billion net debt targeting Q1, and in early March, we announced that we were increasing our ROC allocation to 50% of EFCF on an annual basis.

Lars: Thank you Dion as Dion mentioned during the beginning of the presentation, we significantly increased our pace of share buybacks during the second quarter.

Lars: As you recall, we achieved our $1 billion net debt target in Q1 and in early March we announced that we were increasing our R. O C allocation to 50% of FCS on an annual basis.

Lars Glemser: The chart on the left of this slide illustrates the steady increase in shareholder returns since 2021. In addition to dividends and share buybacks, debt reduction is an informal return to capital as it transfers value from debt holders to equity holders. Including these three components, we have returned over $10 per share of capital to our equity holders over the past three and a half years. The chart on the right shows a cumulative effect of share buybacks over the past three and a half years.

Lars: The chart on the left of this slide illustrates the steady increase in shareholder returns since 2021.

Lars Glemser: In addition to dividends and share buybacks, debt reduction is an informal return of capital as it transfers value from debt holders to equity holders. The chart on the right shows the cumulative effect of share buybacks over the past three and a half years. The achievement of our debt target in Q1 of this year marked a pivotal change in our return to capital framework, and Q2 2024 was the first full quarter operating under our revised ROC parameters.

Speaker Change: In addition to dividends and share buybacks debt reduction is an inform our return of capital as a transfer of value from debt holders to equity holders include.

Lars: Including these three components, we have returned over $10 per share of capital to our equity holders over the past three and a half years.

Speaker Change: The chart on the right shows the cumulative effect of share buybacks over the past three and a half years. The achievement of our debt targeting Q1 of this year marked a pivotal change in our return of capital framework.

Lars Glemser: The achievement of our debt targeting Q1 of this year marked a pivotal change in our return to capital framework. And Q2 2024 was the first full quarter executing under our revised ROC parameters. To date this year, we have already repurchased and canceled 6.1 million shares, which is more than we repurchased in the full year of 2023. We have further reduced our share count to 157.3 million shares at July 31st, 2024. We continue to believe our share price is significantly undervalued, and as such, we plan to allocate the majority of our shareholder returns to share buybacks.

Speaker Change: In Q2 2024 was the first full quarter executing under our revised our Oc parameters.

Lars Glemser: To date this year, we have already repurchased and cancelled 6.1 million shares, which is more than we repurchased in the full year of 2023. We have further reduced our share count to 157.3 million shares at July 31st, 2024. We continue to believe our share price is significantly undervalued, and as such, we plan to allocate the majority of our shareholder returns to share buybacks. Given the strong operational performance year to date and anticipation of new production growth during the second half of the year in Micah and Croatia, offsetting some planned downtime, we are increasing our annual production guidance to 83,000 to 86,000 BOE per day, while maintaining our capital budget guidance of 600 to 625 million. All other financial guidance remains unchanged.

Lars: To date this year, we have already repurchased and canceled six 1 million shares which is more than we repurchased in the full year 2023.

Speaker Change: We have further reduced our share count to 157 3 million shares at July 31, 2024.

Lars: We continue to believe our share price is significantly undervalued and as such we plan to allocate the majority of our shareholder returns to share buybacks.

Lars Glemser: Given the strong operational performance year to date and anticipation of new production growth during the second half of the year in Micah and Croatia, offsetting some planned down time, we are increasing our annual production guidance to 83,000 to 86,000 B.O.E. per day, while maintaining our capital budget guidance of 600 to 625 million.

Lars: Given the strong operational performance year to date in anticipation of new production growth during the second half of the year in Micah and Croatia.

Lars: Offsetting some planned downtime we are increasing our annual production guidance to 83000 to 86000 Boe per day, while maintaining our capital budget guidance of $600 million to $625 million.

Lars Glemser: All other financial guidance remains unchanged. Our Q3 2024 capital program includes completing and bringing on production of the five wells from the 9-21 pad in the BC Monty and commencing per second half 2024 drilling program in Alberta and Saskatchewan. In addition, we will commence drilling operations on the second exploration well in Germany while we conduct further evaluation and testing of the successful exploration wells in Germany and Croatia. We expect Q3 2024 production to be in the range of 83,000-85,000 BUE of A, taking into account plan turnaround activity, including a third party turnaround deferred from Q2 2024 in Alberta.

Lars: All other financial guidance remains unchanged our.

Lars Glemser: Our Q3 2024 capital program includes completing and bringing on production the five wells from the 9 to 21 pad in the BC Montany and commencing our second half 2024 drilling program in Alberta and Saskatchewan. In addition, we will commence drilling operations on the second exploration well in Germany while we conduct further evaluation and testing of the successful exploration wells in Germany and Croatia. We expect Q3 2024 production to be in the range of 83,000-85,000 BWE a day, taking into account planned turnaround activity, including a third-party turnaround deferred from Q2 2024 in Alberta.

Speaker Change: Our Q3 2024 capital program includes completing and bringing on production to five wells from the 90 to 21 pad in the BC Montney and commencing per second half 'twenty 'twenty four drilling program in Alberta and Saskatchewan.

Lars: In addition, we will commence drilling operations on the second exploration well in Germany, while we conduct further evaluation and testing of the successful exploration wells in Germany and Croatia.

Lars: We expect Q3 2024 production to be in the range of 83080, 5000 BOE a day, taking into account signed turnaround activity, including a third party turnaround deferred from Q2 2024 in Alberta higher downtime during periods of high temperatures and approximately 800.

Lars Glemser: Higher downtime during periods of high temperatures and approximately 800 BWE a day of dry gas production in Alberta that we have curtailed due to low gas prices. With that, I will pass it back to Dion. Thank you, Lars.

Lars Glemser: Higher downtime during periods of high temperatures and approximately 800 BUE of A dry gas production in Alberta that we have curtailed due to low gas prices.

D.: Are we at a dry gas production in Alberta that we have curtailed due to low gas prices with that I will pass it back to D. On thank you Lars.

Dion Hatcher: With that, I will pass it back to Dion and your Lars. While closing, it was another strong quarter of a million as we delivered on our production guidance and achieved several milestones on our strategic growth assets. In addition, we benefited from our diversifying for full of rising exposure to premium price European gas, which resulted in the corporate realized gas price of $5.69.4, or a 4.8 times multiple to the equal benchmark. We are excited about the upcoming test results from the recent discoveries in Germany and Croatia, as well as the ramp-up of our Monteney battery and Croatia gas plant.

Unknown Speaker: Well, in closing, it was another strong quarter for Vermilion as we delivered on our production guidance and achieved several milestones on our strategic growth assets. In addition, we benefited from a diversified portfolio that provides exposure to premium-priced European gas. This resulted in a corporate realized gas price of $5.69 this quarter, or a 4.8 times multiple to the ECO benchmark.

D. On: While closing it was another strong quarter over $1 billion as we delivered on our production guidance and achieved several milestones on our strategic growth assets.

D: We benefited from our diversified portfolio provides exposure to premium price European gas, which resulted in a corporate realized gas price of $5.69 this quarter or at four eight times multiple to the equal benchmark.

Unknown Speaker: We're excited about the upcoming test results from the recent discoveries in Germany and Croatia, as well as the ramp-up of our Monteney Battery and Croatian Gas Plant. I look forward to providing an update at a later date. As Lars mentioned, we have made significant progress on our SURE buyback program and plan to continue this momentum through the balance of this year. We truly believe the compounding effect of combining modest production growth with a growing base dividend and share buybacks will drive shareholder value in the months and years to come. Well, that concludes my prepared remarks, and with that, I would like to open the floor to questions. Ladies and gentlemen, as mentioned earlier, if you have any...

D. On: We're excited about the upcoming test results from the recent discoveries in Germany, and Russia as well as the ramp up of our Montney batteries increased gas flat I look forward to providing an update at a later date.

Dion Hatcher: I look forward to providing an update and a later date. As Lars mentioned, we have made significant progress on a sure buyback program and plan to continue this momentum through the balance of this year. We truly believe the compounding effect of combining modest production growth with a growing base dividend and share buybacks will drive shareholder value in the months and years to come.

Speaker Change: As Lars mentioned, we've made significant progress on our share buyback program and plan to continue this momentum through the balance of this year I truly believe the compounding effect of combining modest production growth with a growing base dividend and share buybacks will drive shareholder value in the months and years to come.

Dion Hatcher: Well, that concludes my prepared remarks, and with that, we would like to open it up for questions.

Speaker Change: That concludes my prepared remarks, and with that I would like to open it up for questions.

Operator: Thank you, sir. Ladies and gentlemen, as mentioned earlier, if you would like to ask a question, please press the star followed by 1 on your touch-tone phone. You will then hear a three-tone prompt acknowledging your request. And if you would like to withdraw from the question queue, please press star followed by 2. And if you're using your speakerphone, we do ask that you please lift the handset before pressing any keys. Please go ahead and press star 1 now. Once again, ladies and gentlemen, if you do have any questions, please press star followed by 1. And at this time, sir, it appears that we have no questions registered.

Unknown Shareholder: Thank you, sir.

Speaker Change: Thank you, Sir ladies and gentlemen, as mentioned earlier, if you would like to ask a question. Please press star followed by one on you touched on the phone.

Sylvie: Ladies and gentlemen, as mentioned earlier, if you would like to ask a question, please press star followed by one on your touch-tone phone. You will then hear a three-tone prompt acknowledging your request. And if you would like to withdraw from the question queue, please press star followed by two. And if you're using your speaker phone, we do ask that you please lift the handset before pressing any keys. Please go ahead and press star one now if you have any questions. Once again, ladies and gentlemen, if you do have any questions, please press star followed by one.

Speaker Change: We will then hear a sweet home prompt acknowledging your request and if you would like to withdraw from the question queue. Please press star followed by two and if you're using a speaker phone. We do ask could you. Please lift the handset before pressing Andy Keys. Please go ahead and press Star one now if you have any questions.

Speaker Change: Once again.

Speaker Change: Again, ladies and gentlemen, if you do have any questions. Please press star followed by one.

Sylvie: And at this time, sir, it appears that we have no questions registered.

Speaker Change: And at this time it appears that we have no questions registered.

Dion Hatcher: Well, thank you, Sylvie. Thank you again for participating in our Q224 results conference call.

Operator: Thank you, Sylvia. Thank you again for participating in our Q2-24 results conference call. Thank you. Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending, and at this time, we do ask that you please disconnect your lines.

Speaker Change: Thank you Silvia. Thank you again for participating in our Q2 24 results conference call.

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Unknown Shareholder: Thank you. Thank you, sir.

Speaker Change: Thank you. Thank you, Sir ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.

Sylvie: Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.

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