Q2 2024 Veren Inc Earnings Call

Good morning, ladies and gentlemen. My name is Ina, and I will be your operator for VEREN's second quarter 2024 conference call.

Operator: for Veren's second quarter to 1024 conference call. This conference call is being recorded today and will be webcast along with a slide deck, which can be found on Veren's website. All amounts discussed today are in Canadian dollars, with the exception of West Texas Intermediate pricing, which is coded in US dollars.

Operator: This conference call is being recorded today and will be webcast along with a slide deck which can be found on Veren's website. All amounts discussed today are in Canadian dollars with the exception of West Texas Intermediate Pricing, which is quoted in US dollars.

Speaker Change: This conference call is being recorded today and will be webcast along with a slide deck which can be found on Veren's website. All amounts discussed today are in Canadian dollars with the exception of West Texas Intermediate Pricing which is quoted in U.S. dollars.

Operator: Online sub-inplacement mute to prevent any background noise.

Operator: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session for members of the investment community. If you would like to ask a question over the phone line during this time, simply press star 1 on your telephone keypad. If you would like to withdraw your question, press star 2. During the call, management may make projections or other forward-looking statements regarding future events or future financial performance.

Operator: After the speaker's remarks, there will be a question-and-answer session for members of the investment community.

Speaker Change: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session for members of the investment community.

Operator: If you would like to ask a question over the phone line during this time, simply press star one on your telephone keypad.

Speaker Change: If you would like to ask a question over the phone line during this time, simply press star 1 on your telephone keypad. If you would like to withdraw your question, press star 2.

Operator: If you would like to withdraw your question, press star two.

Operator: During the call, management may make projections or other forward-looking statements regarding future events or future financial performance.

Speaker Change: During the call, management may make projections or other forward-looking statements regarding future events or future financial performance.

Operator: And if such statements are made subject to the forward-looking information and non-gov measured sections of the press release issued earlier today, I will now turn the call over to Craig Briska, President and Chief Executive Officer at Veren. Please go ahead, Mr. Briska.

Craig Bryksa: Any such statements are made subject to the forward-looking information and non-GAAP-measured sections of the press release issued earlier today. I will now turn the call over to Craig Bryksa, President and Chief Executive Officer at VEREN. Please go ahead, Mr. Bryksa.

Operator: Any such statements are made subject to the forward-looking information and non-GAAP measures sections of the press release issued earlier today. I will now turn the call over to Craig Bryksa, President and Chief Executive Officer of VEREN. Please go ahead, Mr. Bryksa.

Craig Bryksa: Thank you, operator. Welcome everyone to our Q2 2024 conference call. With me today are Ken Lamont, our Chief Financial Officer, and Ryan Gritzfeld, our Chief Operating Officer. Throughout the first half of this year, we have focused on operational execution, strengthening and optimizing our balance sheet, and consistently returning capital to our shareholders. During the quarter, we again demonstrated our operational success with well results in the Alberta-Montney and K-Bob DuVernay ranking among the top in the Western Canadian Sedimentary Basin. We produced 192,500 Buie per day comprised of 65% oil and liquids, and continued to successfully optimize drilling and completions across our asset base.

Craig Bryksa: Thank you, operator. Welcome everyone to our Q2 2024 conference call. With me today are Ken Lamont, our Chief Financial Officer, and Ryan Gritzfeldt, our Chief Operating Officer. Throughout the first half of this year, we have focused on operational execution, strengthening and optimizing our balance sheet, and consistently returning capital to our shareholders. During the quarter, we again demonstrated our operational success with well results in the Alberta Montaney and Cape Aub-Duvernay, ranking among the top in the Western Canadian Sediment

Craig Bryksa: Thank you, Operator. Welcome everyone to our Q2 2024 conference call. With me today are Ken Lamont, our Chief Financial Officer, and Ryan Gritzfeldt, our Chief Operating Officer.

Speaker Change: Throughout the first half of this year, we have focused on operational execution, strengthening and optimizing our balance sheet, and consistently returning capital to our shareholders.

Craig Bryksa: During the quarter, we again demonstrated our operational success with well results in the Alberta Montaney and Cape Aub-Duvernay, ranking among the top in the Western Canadian Sedimentary Basin.

Craig Bryksa: We produce 192,500 Buie per day comprised of 65% oil and liquids and continue to successfully optimize drilling and completions across our assets. We also generated $195 million in excess cash flow for the quarter and returned 60% of that back to our shareholders through sharer purchases and base dividends. We allocated the remaining 40%, along with the proceeds from our non-core Saskatchewan asset disposition, to reduce our net debt. Since the beginning of this year, we have reduced our net debt by almost $800 million and remain on track to exit this year with $2.8 billion of net debt or one times debt-to-cash.

Craig Bryksa: We produce 192,500 BUE per day comprised of 65% oil and liquids and continue to successfully optimize drilling and completions across our asset base.

Craig Bryksa: We also generated $195 million in excess cash for the quarter and returned 60% of that back to our shareholders through share purchases and base dividend. We allocated the remaining 40% along with the proceeds from our non-cores to scheduling asset disposition to reduce our net debt. Since the beginning of this year, we have reduced our net debt by almost $800 million and remain on track to exit this year with $2.8 billion of net debt or one times debt to cash flow. Also during the quarter, we received an investment grade rating of triple B low with a stable trend issued by Morningstar DBRS.

Craig Bryksa: We also generated $195 million in excess cash flow for the quarter and returned 60% of that back to our shareholders through shareware purchases and base dividend.

Craig Bryksa: We allocated the remaining 40% along with the proceeds from our non-core Saskatchewan asset disposition to reduce our net debt.

Craig Bryksa: Since the beginning of this year we have reduced our net debt by almost $800 million and remain on track to exit this year with $2.8 billion of net debt or 1x debt-to-cash flow.

Craig Bryksa: Also during the quarter, we received an investment grade rating of triple B low with a stable trend issued by Morningstar DBRS. Achieving this milestone was a direct result of our strategic transformation over the past few years, where we added significant premium drilling inventory, increased our production and cash flow, and strengthened our balance. Our investment grade rating allowed us to access the public debt market and diversify our capital structure. Subsequently, we issued $1 billion of senior notes at a favorable rate. We directed all proceeds to repay our existing debt, including fully retiring our bank term loan.

Craig Bryksa: Also during the quarter, we received an investment grade rating of BBB low with a stable trend issued by Morningstar DBRS.

Craig Bryksa: Achieving this milestone was a direct result of our strategic transformation over the past few years, where we added significant premium drilling inventory, increased our production and cash flow, and strengthened our balance sheet. Our investment grade rating allowed us to access the public debt market and diversify our capital structure. Subsequently, we issued $1 billion of senior notes at a favorable rate. We directed all proceeds to repay our existing debt, including fully retiring our bank turn loan. We are very pleased with our efforts to reduce our net debt and optimizing our balance sheet, which will provide many long-term benefits for our company.

Craig Bryksa: Achieving this milestone was a direct result of our strategic transformation over the past few years where we added significant premium drilling inventory, increased our production and cash flow, and strengthened our balance sheet.

Craig Bryksa: Our investment grade rating allowed us to access the public debt market and diversify our capital structure.

Craig Bryksa: Subsequently, we issued $1 billion of senior notes at a favorable rate. We directed all proceeds to repay our existing debt, including fully retiring our bank term loan.

Craig Bryksa: We're very pleased with our efforts to reduce our net debt and optimize our balance sheet, which will provide many long-term benefits for our company. In addition to proving our financial outlook in the quarter, we continue to demonstrate our successful operational execution, which remains the company's top strategic priority. In Montigny, we had the top four light oil producing wells in the Western Canadian Sedimentary Basin based on recent results. We brought on our first fully operational pad on stream in the quarter, utilizing our drilling and completions design on the lands we acquired in late 2023. This pad, located in Car West, generated an average peak 30-day rate of 1,300 B.E.

Craig Bryksa: We are very pleased with our efforts to reduce our net debt and optimizing our balance sheet, which will provide many long-term benefits for our company.

Craig Bryksa: In addition to proving our financial outlook in the quarter, we continue to demonstrate our successful operational execution, which remains the company's top strategic priority. In the Montany, we had the talk for light oil producing wells in the Western Canadian Sedimentary Basin based on recent results. We brought on our first fully operated pad on stream in the quarter, utilizing our drilling and completions design on the lands we acquired in late 2023. This pad located in Car West generated an average peak 30-day rate of 1,300 Buie per day per well and consisted of over 65% oil and liquids.

Craig Bryksa: In addition to improving our financial outlook in the quarter, we continue to demonstrate our successful operational execution, which remains the company's top strategic priority.

Speaker Change: In the Montany, we had the top four light oil producing wells in the Western Canadian Sedimentary Basin based on recent results.

Speaker Change: We brought on our first fully operated pad on stream in the quarter, utilizing our drilling and completions design on the lands we acquired in late 2023.

Craig Bryksa: per day, per well, and consisted of over 65% oil and liquid. In Gold Creek, we drilled a new pace setter well in a record nine days, with the pad averaging 11.3 days drilling per well. This is an improvement of three days since entering the play just over a year ago.

Speaker Change: This pad located in Car West generated an average peak 30-day rate of 1,300 B.E. per day per well and consisted of over 65% oil and liquids.

Craig Bryksa: In Gold Creek, we drilled a new paste set or well in a record 9 days, with the pad averaging 11.3 days drilling per well. This is an improvement of three days since entering the playlist over a year ago. We are in the process of bringing 11 wells on stream in Gold Creek that were completed in the late second quarter and planned to bring on an additional 22 wells on stream in the Alberta Montany during the remainder of 2024. In the K-Bob Duvernay, three of our recent wells ranked among the top five producing wells in the area.

Speaker Change: In Gold Creek, we drilled a new pace setter well in a record nine days, with the pad averaging 11.3 days drilling per well.

Speaker Change: This is an improvement of three days since entering the play just over a year ago.

Craig Bryksa: We are in the process of bringing 11 wells on stream in Gold Creek that were completed in the late second quarter and plan to bring on an additional 22 wells on stream in the Alberta Montney during the remainder of 2024. In the K-Bob Duvernay, three of our recent wells ranked among the top five producing wells in the area. We brought three pads on stream during the quarter in the volatile oil window of the play.

Speaker Change: We are in the process of bringing 11 wells on stream in Gold Creek that were completed in the late second quarter and plan to bring on additional 22 wells on stream in the Alberta Montaney during the remainder of 2024.

Speaker Change: In the K-Bob DuVernay, three of our recent wells ranked among the top five producing wells in the area.

Craig Bryksa: We brought three pads on stream during the quarter in the volatile oil window of the play. One pad has been on stream for over 30 days and has generated an average peak 30-day rate of 1,300 Buie per day per well, consisting of 75% condensate and liquids. We plan to bring an additional 22 wells on stream in the K-Bob Duvernay area throughout the remainder of 2024. We continue to refine our technical expertise in both the Alberta Montany and K-bob Duvernay and will rely on consistent regularization, optimize drilling and completions, and knowledge transfer across our assets to further improve results and drive efficiencies.

Speaker Change: We brought three pads on stream during the quarter in the volatile oil window of the play. One pad has been on stream for over 30 days and has generated an average peak 30-day rate of 1,300 BUE per day per well, consisting of 75% condensate and liquids.

Craig Bryksa: One pad has been on stream for over 30 days and has generated an average peak 30 day rate of 1300 BUE per day per well, consisting of 75% condensate and liquid. We plan to bring an additional 22 wells on stream in the Kaibab DuVernay area throughout the remainder of 2024. We continue to refine our technical expertise in both the Alberta Montany and Cave Aub Douvernais and will rely on consistent rig utilization, optimized drilling and completions, and knowledge transfer across our assets to further improve results and drive efficiency.

Speaker Change: We plan to bring an additional 22 wells on stream in the Kaibab-Douvernay area throughout the remainder of 2024.

Speaker Change: We continue to refine our technical expertise in both the Alberta Montney and K-Bob DuVernay and will rely on consistent rig utilization, optimized drilling and completions, and knowledge transfer across our assets to further improve results and drive efficiencies.

Craig Bryksa: In Saskatchewan, we continue to advance our decline mitigation programs to further enhance our long-term sustainability and access casual generation. These long cycle properties continue to play a valuable role in our overall access casual profile, as they feature minimal sustaining capital requirements driven by low decline rates. Looking ahead, we remain on track to meet both our 2024 production guidance of $191,299,000 buie per day and our development capital expenditures guidance of $1.4 to $1.5 billion. We anticipate generating $825 million of excess casual at $80 per barrel WTI pricing, with 60% of that expected to be realized in the second half of this year.

Craig Bryksa: In Saskatchewan, we continue to advance our decline mitigation programs to further enhance our long-term sustainability and Access Cash Flow Generation. These long-cycle properties continue to play a valuable role in our overall Access Cash Flow Profile because they feature minimal sustaining capital requirements driven by low decline rates. Looking ahead, we remain on track to meet both our 2024 production guidance of $191,000 to $199,000 BUI per day and our development capital expenditures guidance of $1.4 to $1.5 billion.

Speaker Change: In Saskatchewan, we continue to advance our decline mitigation programs to further enhance our long-term sustainability and excess cash flow generation.

Speaker Change: These long-cycle properties continue to play a valuable role in our overall

Speaker Change: Access Cash Flow Profile as they feature minimal sustaining capital requirements driven by low decline rates.

Speaker Change: Looking ahead, we remain on track to meet both our 2024 production guidance of $191,000 to $199,000 BUI per day and our Development Capital Expenditures guidance of $1.4 to $1.5 billion.

Craig Bryksa: We anticipate generating $825 million of excess cash flow at $80 per barrel WTI prices, with 60% of that expected to be realized in the second half of this year. I'm very pleased with our execution year to date, the progress we have made across our business, and remain excited about our trajectory. I'd like to thank all our employees for their hard work this quarter and our shareholders for their ongoing support. I'll now turn the call back to the operator to begin the Q&A. Thank you.

Speaker Change: We anticipate generating $825 million of excess cash flow at $80 per barrel WTI pricing, with 60% of that expected to be realized in the second half of this year.

Craig Bryksa: I'm very pleased with our execution year-to-date, the progress we have made across our business, and remain excited about our trajectory.

Speaker Change: I'm very pleased with our execution year to date, the progress we have made across our business and remain excited about our trajectory. I'd like to thank all our employees for their hard work this quarter and our shareholders for their ongoing support. I'll now turn the call back to the operator to begin the Q&A.

Operator: I'd like to thank all our employees for their hard work this quarter and our shareholders for their ongoing support. I'll now turn the call back to the operator to begin the Q&A. Thank you. As a reminder for members of the investment community, if you would like to ask a question, please press start and the number one on your telephone keypad. If you would like to enjoy your question, please press start too. We will pause for a moment to compile the Q&A roster.

Operator: Thank you. As a reminder for members of the investment community, if you would like to ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star two. We will pause for a moment to compile the Q&A roster. Your first question comes from the line of Dennis Fong from CIBC World Market. Please go ahead.

Speaker Change: Thank you. As a reminder for members of the investment community, if you would like to ask a question, please press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star two. We will pause for a moment to compile the Q&A roster.

Dennis Fong: Your first question comes on the line of Dennis Phong from CIBC World Market. Please go ahead.

Speaker Change: Your first question comes from the line of Dennis Fong from CIBC World Market. Please go ahead.

Dennis Fong: Good morning, and thanks for taking my question. The first one that I have here is just around. As we look in the back half, it looks like you have about 44 wells to be brought on. Can you talk to us a little bit about the cadence of bringing on that production and how that sets you up for a 2025 production loss?

Dennis Fong: Hi, good morning, and thanks for taking my question. The first one that I have here is just around. As we look in the back half, it looks like you have about 44 wells to be brought on. Can you talk to us a little bit about the cadence of bringing on that production and how that sets you up for 2025 production?

Dennis Fong: As we look in the back half, it looks like you have about 44 wells to be brought on. Can you talk to us a little bit about the cadence of bringing on that production and how that sets you up for 2025 production levels?

Ryan Gritzfeldt: Paul. Hey, Dennis. Thanks for the questions. It's great to talk to you.

Craig Bryksa: Hey, Dennis. Thanks for the questions. It's great to talk to you. So, it's Craig here.

Craig Bryksa: We've got a fairly consistent capital program, and I'll let Ryan provide some color on the timing of how these pads are coming. But when you think of how we've laid out our capital program here for 2024, it's actually a fairly even split between half one and half two. So we've got about 48% of our capital remaining for the remainder of the year. And we are running fairly consistently the three rig program in the Montany and then the two rig program in the Duvernay and then following along with a frac spread in each of those areas. So I'll let Ryan maybe give you some color on timing of how we're looking through pads here in the back half.

Craig Bryksa: So it's Craig here. We've got a fairly consistent capital program. And I'll let Ryan provide some color on timing of how these pads are coming. But when you think of how we've laid out our capital program here for 2024, it's actually a fairly even split between half one and half two. So we've got about 48% of our capital remaining for the remainder of the year. And we are running fairly consistently the three rig program in the Monney and then the two rig program in the Doverney and then following along with a frax bread in each of those areas.

Craig Bryksa: Hey, Dennis. Thanks for the questions. It's great to talk to you. So it's Craig here. We've got a fairly consistent capital program and I'll let Ryan provide some color on timing of how these paths are coming.

Ryan Chad Raymond Gritzfeldt: Yeah, so we, you know, maybe, maybe I can speak to results a little bit in that question too. Obviously, you know, in the Montney, Craig spoke to that Car West result, really pleased with that 1300 Buoy a day on our typo. Actually, those were a little bit shorter laterals, so probably beat our typo there a little bit, and still hanging in at that 1300 Buoy a day. So it'll be interesting to see, you know, what our wider spacing, kind of how those those results hang in.

Speaker Change: When you think of how we've laid out our capital program here for 2024, it's actually a fairly even split.

Ryan Chad Raymond Gritzfeldt: between half one and half two. So we've got about 48% of our capital remaining for the remainder of the year and we are running

Ryan Chad Raymond Gritzfeldt: fairly consistently the three-rig program in the Montigny and then the two-rig program in the Duvernay and then following along with a frack spread in each of those areas, so I'll let Ryan maybe give you some color on timing of how we're looking through pads here in the back half.

Ryan Gritzfeldt: So I'll let Ryan maybe give you some color on timing of how we're looking through pads here in the back half.

Ryan Gritzfeldt: Yeah, so maybe I can speak to results a little bit in that question too. Obviously, you know, in the Monney, Craig spoke to that car west result. Really pleased with that. 1300 BUE of day on our type. Well, actually, those were a little bit shorter, lateral. So probably feed our type while they're a little bit. And still hanging in at that 1300 BUE of day. So it'll be interesting to see, you know, what are wider spacing, kind of how those results hang in.

Ryan Chad Raymond Gritzfeldt: Yeah, so we, you know, maybe maybe I can speak to results a little bit in that question too, obviously.

Ryan Chad Raymond Gritzfeldt: In the Montney, Craig spoke to that Car West result, really pleased with that, 1,300 Buoy a day.

Ryan Chad Raymond Gritzfeldt: on our typo. Actually, those were a little bit shorter laterals, so probably beat our typo there a little bit. And still hanging in at that 1300 BOE a day. So it'll be interesting to see, you know, what our wider spacing kind of how those those results hang in.

Ryan Gritzfeldt: We're going to be moving to a pad off setting. That pad that, you know, has the top four Monney wells. So we'll be moving to that here shortly at the seven well pad, and that'll be coming on early in 2025. In the Doverney, you know, we announced that another really strong result just showing how kind of repeatable and consistent the Doverney has been: 1300 BUE of day. That's that's our FC 807 pad. We're actually drilling a pad right off setting that that'll be coming on early in 2025. You know, a couple more exciting pads coming on.

Ryan Chad Raymond Gritzfeldt: We're going to be moving to a pad offsetting that pad that, you know, had the top four Montney wells. So we'll be moving to that here shortly at the seven well pad, and that'll be coming on early in 2025. In the Duvernay, you know, we announced that another really strong result just showing how kind of repeatable and consistent the Duvernay has been, you know, 1300 Buoy a day. That's our FC807 pad.

Ryan Chad Raymond Gritzfeldt: We're going to be moving to a pad offsetting that pad that, you know, had the top four Montany wells.

Ryan Chad Raymond Gritzfeldt: So we'll be moving to that here shortly. That's a seven well pad and that'll be coming on early in 2025.

Ryan Chad Raymond Gritzfeldt: In the DuVernay, you know, we announced that another really strong result, just showing how kind of repeatable and consistent the DuVernay has been.

Ryan Chad Raymond Gritzfeldt: 1,300 BOE a day. That's our FC807 pad. We're actually drilling a pad right off setting that. That'll be coming on early in 2025.

Ryan Chad Raymond Gritzfeldt: We're actually drilling a pad right offsetting that, that'll be coming on early in 2025. You know, a couple more exciting pads coming on. We're bringing on that FC601 pad here in August in the southeast part of our plate that had really strong initial fallback results earlier in the quarter and then over to the west in Simonette. That pad will be coming on later in the year, in November. So, you know, great results, you know, exciting to see the results here for the rest of the year.

Ryan Gritzfeldt: We're bringing on that FC 601 pad here in August in the southeast part of our place that had really strong initial flowback results earlier in the quarter. And then over to the west, and Simon net that pad will be coming on later in the year in November. So, you know, great results; you know, exciting to see the result here for the rest of the year in terms of cadence. I mean, you know, we're probably going to be in and around that, you know, low 190,000 BUE a day Q3, growing to high 190,000 BUE a day Q4, and then obviously into 2025, kind of over that 200,000 BUE a day mark.

Ryan Chad Raymond Gritzfeldt: A couple more exciting pads coming on, we're bringing on that FC601 pad here in August in the southeast part.

Ryan Chad Raymond Gritzfeldt: of our play that had really strong initial fullback results earlier in the quarter.

Ryan Chad Raymond Gritzfeldt: and then over to the west in Simonette.

Ryan Chad Raymond Gritzfeldt: That pad will be coming on later in the year, November .

Ryan Chad Raymond Gritzfeldt: So, you know, great results, you know, exciting to see the results here for the rest of the year. In terms of cadence, I mean, you know, we're probably

Ryan Chad Raymond Gritzfeldt: In terms of cadence, I mean, you know, we're probably going to be in and around that low 190,000 VUE a day in Q3, growing to high 190,000 VUE a day in Q4, and then obviously into 2025, kind of over that 200,000 VUE a day mark. So hopefully that gives you a little bit of color on that, Dennis.

Speaker Change: Going to be in and around that low 190,000 VUE a day Q3, growing to high 190,000 VUE a day in Q4, and then obviously into 2025, kind of over that 200,000 VUE a day mark.

Ryan Gritzfeldt: So hopefully that gives you a little bit of color on that.

Dennis Fong: Dennis. No, thank you. I appreciate that that context.

Speaker Change: Hopefully that gives you a little bit of color on that, Dennis.

Dennis Fong: No, thank you. I appreciate that context.

Speaker Change: No, thank you. I appreciate that context.

Dennis Fong: You touched on it a little bit just around productivity and definitely what you're seeing both obviously from car east and in the volatile oil window in the K-bub BUE per day. Can you talk towards a little bit around, I think back at the investor day, you discussed the idea around. Optimizing well design, completion design, placement of well as well spacing. And as you continue to execute the program, what are some of the things that you're looking for and that we on the cell side and the buy side should be looking for to deem kind of the successful implementation of your revised completion design as well as potentially upwardly revising or revising your type of expectations going into the future.

Speaker Change: You touched on it a little bit just around productivity and definitely what you're seeing both, obviously, from Car East and in the volatile oil window in the K-Bob Kubernetes. Can you talk to us a little bit around, I think back at the investor day, you discussed the idea around

Dennis Fong: You touched on it a little bit just around productivity and definitely what you're seeing both obviously from CAR East and in the volatile oil window in the KBOB Kubernet. Can you talk to us a little bit about, I think back at the investor day, you discussed the idea around kind of optimizing well design, completion design, placement of wells, and well spacing. And as you continue to execute the program, what are some of the things that you're looking for and that we on the sell side and the buy side should be looking for to deem kind of the successful implementation of your revised completion design as well as potentially upwardly revising or revising your type curve expectations going into the future?

Speaker Change: of optimizing well design, completion design, placement of wells, well spacing. And as you continue to execute the program, what are some of the things that you're looking for and that we on the sell side and the buy side should be looking for to deem kind of

Speaker Change: The successful implementation of your revised completion design as well as potentially upwardly revising or revising your type curve expectations going into the future.

Craig Bryksa: Thanks for that, Dennis. Again, so it is Craig here. So, like Brian mentioned, when you think of that car Westpad, so that's our first pad that came on with the Veren well-spacing and completion design as well as our landing profile and how we've been landing the wells. We're excited about that when it looks really good. Like Ryan mentioned, so we're in that called 1300-ish billy per day per well in that 65% oil and liquids rate. So, a good strong oil well when you think of it from that standpoint, we're sorry pad, so we're excited about that. And Ryan alluded to really what we're looking for, and that is to see how long that profile hangs in at those levels and just the consistency and steadiness of that. And so far, it looks pretty good.

Craig Bryksa: Thanks for that, Dennis. Again, so it is Craig here.

Craig Bryksa: So like Brian mentioned, when you think of that Car West pad, that's our first pad that came on with the Varen well spacing and completion design, as well as our landing profile and how we've been landing the wells. We're excited about that one. It looks really good, like Ryan mentioned. So we're in that called 1300-ish BOE per day per well, at that 65% oil and liquids rate.

Craig Bryksa: Thanks for that, Dennis. So again, so it's it is Craig here. So like Brian mentioned, when you think of that car west pad, so that's our first pad that came on.

Baron: with the Varien

Speaker Change: Well spacing and completion design, as well as our landing profile and how we've been landing the wells. We're excited about that one. It looks really good, like Ryan mentioned. So we're in that 1,300-ish BUE per day per well.

Craig Bryksa: So, a good, strong oil well when you think of it from that standpoint, we're sorry, pad. So we're excited about that. And Ryan alluded to, you know, really what we're looking for in that is to see how long that profile hangs in at those levels and just the consistency and steadiness of that. And so far, it looks pretty good.

Ryan Chad Raymond Gritzfeldt: In that 65% oil and liquids rate, so a good strong oil well when you think of it.

Ryan Chad Raymond Gritzfeldt: from that standpoint, we're sorry, pad. So we're excited about that. And Ryan alluded to, you know, really what we're looking for in that is to see how, how long that profile hangs in at those levels and, and just the consistency and steadiness of that. And so far, it looks pretty good. So that's got us fairly excited.

Craig Bryksa: So that's got us fairly excited, and then the other thing keep in mind, Dennis, like Ryan mentioned, you know we've got a number of pads coming on here in the back half of this year that are our design. The other thing about them is they're spread out across the place, so it's not like there's zeroed in and focused in on one area, right? We are we're doing a very good job, a very disciplined job of delineating the entire asset base so that we have a full understanding of this as we move forward. So, you know you get a pad in each of the areas coming on, and it certainly gives you more of a data point, and that really has a six-sided.

Craig Bryksa: So that's got us fairly excited. And then the other thing, keep in mind, Dennis, like Ryan mentioned, we've got a number of pads coming out in the back half of this year that are our design. The other thing about them is they're spread out across the field. So it's not like they're zeroed in and focused in on one area, right?

Dennis: And then the other thing, keep in mind, Dennis, like Ryan mentioned, you know, we've got a number of pads coming on here in the back half of this year that are our design.

Dennis: The other thing about them is they're spread out across the play. So it's not like they're zeroed in and focused in on one area, right? We're doing a very good job, a very disciplined job of delineating the entire asset base so that we have a full understanding of this.

Craig Bryksa: We're doing a very good job, a very disciplined job of delineating the entire asset base so that we have a full understanding of this as we move forward. So, you know, you get a pad in each of the areas coming on, and it certainly gives you more of a data point. And that really has us excited. So, you know, as these things come online, we will bring you more and more of that data.

Dennis: As we move forward, so, you know, you get a pad in each of the areas coming on and it certainly gives you more of a data point and that really has us excited. So, you know, as these things come online, we will get you more and more of that data, but we'd like to, you know, you'd like to see data for COD.

Craig Bryksa: So, you know, as these things come online, we will get you more and more of that data, but we'd like to, you know, you'd like to see data for, call it. Three, six, nine months before you start making material revisions to type wells.

Craig Bryksa: But we'd like to, you know, you'd like to see data for COD, three, six, nine months before you start making material revisions to typewells; you want to see how they hang in at that spacing, that landing, and then again with that different completion design. But as far as the 213 pad goes, it looks really good. And then the other thing Ryan noted is keep in mind, six to seven, which is the Gold Creek West pad, which has just been an outstanding pad for us. It's in and around that 2000 BUE per day per well, plus 85% oil on that pad. And it's just a great pad.

Dennis: 3-6

Dennis: nine months before you start making material revisions to typewells. You want to see how they hang in at that spacing, that landing, and then again with that different completion design. But as far as 213 pad looks really good.

Craig Bryksa: You want to see how they hang in at that spacing, that landing, and then again with that different completion design. But as far as two to 13, pad looks really good. And then the other thing noted is keep in mind, you know, six to seven, which is the Gold Creek West pad, which is, you know, has just been an outstanding pad for us. It's in and around that 2000 BUE per day per well plus 85% oil on that pad, and it's just just a great pad. We are moving the rig in there shortly. I'm going to be dribbling a seven well pad off setting that, so I guess it's going to take us a bit of time to make some of those revisions. But we need to see how these play out over the long run, and again we are delineating the entire asset base as we go to, so.

Speaker Change: And then the other thing Ryan noted is, keep in mind, 6 of 7, which is the Gold Creek West pad, which is, you know, has just been an outstanding pad for us. It's in and around that 2,000 BUE per day per well.

Dennis: plus 85% oil on that pad, and it's just a great pad.

Craig Bryksa: We are moving the rig in there shortly and gonna be drilling a seven well pad offsetting that. So I guess it's gonna take us a bit of time to make some of those revisions, but we need to see how these play out over the long run. And again, we are delineating the entire asset base as we go too.

Speaker Change: Moving the rig in there shortly, I'm going to be drilling a seven-well pad offsetting that. So, I guess it's going to take us a bit of time to make some of those revisions, but we need to see how these play out.

Speaker Change: Over the long run, and again, we are delineating the entire asset base as we go too.

Dennis Fong: No I appreciate that that that color as well.

Craig Bryksa: No, I appreciate that color as well. If you would permit me kind of one more here, flipping to the balance sheet, you've already announced, obviously, some non-core asset sales. Can you talk a little bit about your comfort in terms of the pace of the leveraging, obviously making good headway with respect to free cash flow generation, and there's obviously other checks and balances that you have, but can you just talk a little bit more about the pace of lowering outstanding leverage and how much comfort you feel around that?

Craig Bryksa: If you would make me kind of one more here, flipping to the balance sheet, you've already announced obviously some non-core asset sales. Can you talk to or and then achieving your IGD rating? Can you talk to a little bit towards your comfort in terms of the pace of deleveraging? Obviously, making good headway with respect to free casual generation, and there's obviously other checks and balances that you have. But can you just talk towards, I guess, a little bit more about the pace of lowering outstanding leverage and how much comfort you feel around that. Yeah, so if you look at where we started the year, Dennis, we were about $3.7 billion of absolute debt ending in this quarter right now at in and around $3 billion of absolute debt. It ends up being about just about $800 million of debt repayment that we've made in the short six months of this year. So, you know, we feel really good about that. Part of that was excess cash generation, and then the other part of that was the non-core dispositions that we did in Saskatchewan to really strengthen the balance sheet on what we've milling. So from that standpoint, really good. I'd also tell you we're extremely happy with how the investment grade rating played out for us, and then what that allowed us to do is we went into the bond market and were able to issue, you know, basically a billion dollars of notes at very favorable terms. When you think of the first tranche of that $550 million of five-year notes at sub 5%, and then the second tranche $450 million of 10-year notes at just over 5% and that 5.5% range. So, very happy with that. All that being said, like we've talked about in the past, Dennis, you know, if you ask can myself a Ryan where we'd like to be, but we certainly like to get the absolute debt level down. We'd like to be near term, like we talked around $2.2 billion debt.

Speaker Change: No, I appreciate that color as well. If you would permit me kind of one more here. Flipping to the balance sheet.

Speaker Change: You've already announced, obviously, some non-core asset sales. Can you talk to, and then achieving your IG rating, can you talk a little bit towards

Speaker Change: your comfort in terms of the pace of the leveraging, obviously making good headway with respect to free cash flow generation, and there's obviously other checks and balances that you have, but can you just talk towards, I guess, a little bit more about the pace of lowering outstanding leverage and how much comfort you feel around that?

Craig Bryksa: Um, yeah, so, you know, if you look at where we started the year, Dennis, we were about $3.7 billion in absolute debt, and ending this quarter right now at around $3 billion in absolute debt, it ends up being about just about $800 million of debt repayment that we've made in the short six months of this year. So, you know, we feel really good about that.

Speaker Change: Yeah, so, you know, if you look at where we started the year, Dennis, we were about $3.7 billion of absolute debt.

Dennis: Ending this quarter right now at in and around $3 billion of absolute debt. It ends up being just about $800 million of debt repayment that we've made.

Dennis: in the short six months of this year. So, you know, we feel really good about that.

Craig Bryksa: Part of that was excess cash flow generation. And then the other part of that was the non-core dispositions that we did in Saskatchewan to really strengthen the balance sheet on what we've been building. So from that standpoint, really good.

Dennis: Part of that was excess cash flow generation. And then the other part of that was the non-core dispositions that we did in Saskatchewan.

Dennis: to really strengthen the balance sheet on what we've been building. So from that standpoint, really good. I'd also tell you we're extremely happy with how the investment grade rating played out for us.

Craig Bryksa: I'd also tell you we're extremely happy with how the investment grade rating played out for us. And then what that allowed us to do is we went into the bond market, and we were able to issue, you know, basically a billion of notes at very favorable terms when you think of the first tranche of that $550 million of five-year notes at sub-5%, and then the second tranche of $450 million of 10-year notes at just over 5% in that 5.5% range. I am so very happy with that.

Speaker Change: And then what that allowed us to do is we went into the bond market and were able to issue, you know, basically a billion dollars of notes at very favourable terms when you think of

Speaker Change: The first tranche of that $550 million of five-year notes at sub-5%

Dennis: And then the second tranche.

Speaker Change: Very happy with that. All that being said, we have talked to you about it in the past homeowner fantasticals. If you ask Ken, myself or Ryan where we would like to be, we like to get the absolute debt level down.

Craig Bryksa: All that being said, like we've talked to you about in the past, Dennis, you know, if you ask Ken, myself, or Ryan where we'd like to be, well, we'd certainly like to get the absolute debt level down. We'd like to be near term, like we've talked about around $2.2 billion in absolute debt. If everything stays status quo at the commodity price range that we're in today and around that 80-ish dollars, we'll be somewhere around $2.8 billion at the end of the year, which is about basically one times debt to cash flow. I'm so happy with it.

Speaker Change: We'd like to be near-term, like we've talked, around $2.2 billion.

Craig Bryksa: If everything stays status quo in the commodity price range that we're in today and around that $80-ish dollars, we'll be somewhere around $2.8 billion at the end of the year, which is about one point, basically one times debt to cashflow. So happy with it. And we do have a significant amount of excess cashflow generation here in the back half of this year. Like I mentioned, about 60% of our excess cash flow comes in the back half. So things are working that way.

Speaker Change: of absolute debt. If everything stays status quo in the commodity price range that we're in today, in and around that $80-ish,

Speaker Change: We'll be somewhere around $2.8 billion at the end of the year, which is about one point

Speaker Change: basically one times debt to cash flow so happy with it and we do have a significant amount of excess cash flow generation here in the back half of this year like I mentioned about 60% of our excess cash flow comes in the back half so things are working that way.

Craig Bryksa: And we do have a significant amount of excess cash flow generation here in the back half of this year. Like I mentioned, about 60% of our excess cash flow comes in the back half. So things are working that way.

Craig Bryksa: The other thing, keep in mind, Dennis, you know, as far as the upstream A and D, we were absolutely taking a good long pause as far as the acquisitions, as we've talked. On the back end of those dispositions, we're very comfortable with our portfolio. So don't look for us to do any dispositions on the upstream assets. But we have also talked to you and the market a little bit about potential infrastructure.

Craig Bryksa: The other thing, keep in mind, Dennis, you know, as far as the upstream, A and D, you know, we were absolutely taking a good long pause as far as the acquisitions, like we've talked. On the back end of those dispositions, we're very comfortable with our portfolio. So don't look for us to do any dispositions on the upstream assets, but we also have talked to you and the market a little bit of both potential infrastructure. So, you know, that is one of the things that we'll continue to look at and work through, and we'll see how that plays out.

Speaker Change: The other thing to keep in mind, Dennis, you know, as far as the upstream,

Speaker Change: A and B, you know, we were absolutely taking a good long pause as far as the acquisitions like we've talked.

Speaker Change: On the back end of those dispositions, we're very comfortable with our portfolios. So don't look for us to do any dispositions on the upstream assets. But we also have talked to you and the market a little bit about potential infrastructure.

Craig Bryksa: So, you know, that is one of the things that we'll continue to look at and work through. And we'll see how that plays out. But that, you know, if something like that was to happen, that would allow us to further strengthen the balance sheet a little bit more rapidly, I would say. A very long-winded answer, Dennis, of me saying we are very happy with pounding our debt down by just about $800 million in six months. No, I-

Speaker Change: You know, that is one of the things that we'll continue to look at and work through and we'll see how that plays out. But that, you know, if something like that was to happen, that would allow us to further strengthen the balance sheet a little bit more rapidly, I would say.

Dennis Fong: But that, you know, if something like that was to happen, that would allow us to further strengthen the balance sheet a little bit more rapidly, I would say. A very long-winded answer, Dennis, is me saying we are very happy with pounding our debt down by just about 800 million bucks in six months. I guess I'm going to appreciate that and look forward to what you're able to do in the second half year as well. Thanks, Dennis. Thanks.

Speaker Change: A very long-winded answer, Dennis, of me saying we are very happy with pounding our debt down by just about $800 million in six months.

Dennis Fong: [inaudible] I can appreciate that and look forward to what you're able to do in the second half here as well. Thanks, Dennis. Thanks. I'll turn it back on.

Speaker Change: I can appreciate that and look forward to what you're able to do in the second half here as well.

Operator: I'll turn it back. Thank you.

Speaker Change: Thanks Dennis. Thanks, I'll turn it back.

Operator: Thank you. And your next question comes from the line of Travis Wood from National Bank Financial. Please go ahead.

Travis Wood: And your next question comes from the line of Travis Widow from National Bank Financial; please go ahead. Yeah, thanks. I wanted to dig in a bit on Dennis's last question there on infrastructure. And if you're able to kind of goalpost kind of what types of infrastructure you're thinking about in terms of transmission type of infrastructure processing. And then, if there's any kind of wide-range goalposts of value, you could kind of put around each of those buckets if I could get incremental color from you on that.

Speaker Change: Thank you, and your next question comes from the line of Travis Wood from National Bank Financial. Please go ahead.

Travis Wood: Yeah, thanks. I wanted to dig in a bit on Dennis's last question there on infrastructure. And if you're able to kind of set the goalposts, kind of what types of infrastructure you're thinking about in terms of transmission type of infrastructure processing, and then if there's any kind of wide range of values to kind of put around each of those buckets. If I could get incremental color from you on that.

Travis Wood: Yeah, thanks. I wanted to dig in a bit on on Dennis's last question there on infrastructure and if you're able to kind of goalpost kind of what types of infrastructure you're thinking about in terms of

Speaker Change: transmission type of infrastructure processing and then if there's any kind of wide-range goalposts of value you could kind of put around each of those buckets if

Craig Bryksa: Hey, Travis, thanks for the question. I'll hit some of the, maybe the higher points in Ryan can give you some colors as he's been looking into this for us. But if you remember when we did the last on e-transaction, when we posed the deal with Hammerhead, late in December, one of the things we liked about the Hammerhead asset base is the infrastructure that they had in place that was built out. Keep in mind that when we did the original transaction, some of the infrastructure in that area from that original transaction is not owned and operated by Baron.

Speaker Change: If I could get incremental color from you on that.

Craig Bryksa: Hey, Travis, thanks for the question. I'll hit some of the higher points, and Ryan can give you some color as he's been looking into this for us. But if you remember when we did the last Monty transaction, when we closed the deal with Hammerhead late in December, one of the things we liked about the Hammerhead asset base was the infrastructure that they had in place that was built out. Keep in mind that when we did the original transaction, some of the infrastructure in that area from that original transaction is not owned and operated by Barron.

Speaker Change: Hey Travis, thanks for the question. I'll hit some of the maybe the higher points and Ryan can give you some colors as he's been...

Speaker Change: I'm looking into this for us. But if you remember when we did the last Monty transaction, when we closed the deal with Hammerhead late in December , one of the things we liked about the Hammerhead asset base is the infrastructure that they had in place that was built out.

Speaker Change: Keep in mind that when we did the original transaction, some of the infrastructure in that area.

Speaker Change: from that original transaction is not owned and operated by Varen. So there is a way for us to to put this together and I would say more harmonize that from a high level where you can and put that that

Craig Bryksa: So there is a way for us to put this together, and I would say more harmonize that from a high level where you can put that together with maybe one single owner and potentially harmonize that deal for us. So I'll let Ryan give you some color on that. But you know, Travis says, as we work our way through things, you know, know that there's a lot of balls in the air and this sort of thing.

Ryan Gritzfeldt: So there is a way for us to put this together, and I would say more harmonize that from a high level where you can put that together with maybe one single owner and potentially harmonize that deal for us.

Speaker Change: that together with maybe one single owner and potentially harmonize that deal for us. So I'll let Ryan give you some color on that. But you know, Travis says, as we work our way through things,

Craig Bryksa: So I'll let Ryan give you some color on that. But Travis says, as we work our way through things, you know that there's a lot of balls in the air in this sort of thing, and you've got to just very disciplinefully make your way through this. So we'll see how it ends up playing out. It's absolutely got to make sense for Baron in the long run, and we'll see how this goes.

Speaker Change: You know, know that there's a lot of balls in the air and this sort of thing and you've got to just very disciplinedly make your way through this. So we'll see how it ends up playing out. It's absolutely got to make sense for Varen in the long run.

Craig Bryksa: And you've got to just very disciplinedly make your way through this. So we'll see how it ends up playing out. It's absolutely got to make sense for Varen in the long run. And we'll see how this goes. But Ryan, do you want to? Yeah, I think

Ryan Gritzfeldt: But Ryan, do you want to?

Ryan Chad Raymond Gritzfeldt: Yeah, I think I would just say, Travis, you know, obviously pursuing opportunities and what I'd say, I think, what we'd be looking for in an infrastructure partner, obviously, you know, first and foremost, like Craig said, maintain or obtain operatorship. I think that's key for us. We feel we're good operators; we'd want to maintain that. You know, obviously, you'd always, always look to leverage, you know, selling your infrastructure assets to try to reduce your fees or lower your cost structure, especially, you know, as we grow volumes, locking up capacity at key processing plants, to give us greater certainty on our five-year plan execution is obviously also key, and then even, you know, potentially, a future infrastructure partner for So, I think, you know, if we could check all those boxes, that would be pretty strategic for us. That's what we're looking to do.

Ryan Gritzfeldt: Yeah, I think I think I would just say Travis, you know, obviously pursuing opportunities and what I'd say, I think, you know, what we'd be looking for in an infrastructure partner, obviously, you know, first and foremost, like Drake said, you know, maintain or obtain operatorships. I think that's key for us. We feel we're good operators. We want to maintain that. Obviously, you always look to leverage, you know, selling your infrastructure assets to try to reduce your fees or lower your cost structure, especially, you know, as we grow volumes. You know, locking up capacity at key, you know, processing plants to give us greater certainty on our five-year plan execution is obviously also key.

Speaker Change: And we'll see how this goes. But Ryan, do you want to? Yeah, I think I would just say, Travis, you know, obviously pursuing...

Speaker Change: opportunities and what I'd say I think you know what we'd be looking for in an infrastructure partner obviously you know first and foremost like Craig said you know maintain or obtain operatorship I think that's key for us

Speaker Change: We feel we're good operators. We'd want to maintain that. You know, obviously you'd always...

Speaker Change: Always look to leverage, you know,

Speaker Change: Selling your infrastructure assets to...

Speaker Change: To try to reduce your fees or lower your cost structure, especially, you know, as we grow volumes, you know, locking up capacity at key, you know, processing plants.

Speaker Change: to give us greater certainty on our five-year plan execution is obviously also key and then even, you know, potentially, you know, a future infrastructure partner for larger capital projects. So, I think, you know, if we could check all those boxes, that would be pretty strategic for us.

Ryan Gritzfeldt: And then even, you know, potential actually, you know, a future infrastructure partner for larger capital projects. So I think, you know, if we can check all those boxes, that would be pretty strategic for us. You know, that's what we're looking to do.

Travis Wood: Okay, fantastic.

Travis Wood: Okay, fantastic. And just to keep the fire under you a bit, any timelines on that? Is this like a 2024 negotiation finalization? Or should we be more patient on something like this? That sounds like there's a bunch of moving parts, as you say.

Speaker Change: That's what we're looking to do.

Travis Wood: And just to keep the fire under you a bit, any, any timelines on that? Is this just like a 2024 negotiation finalization, or should we be more patient on something like this? But sounds like there's a bunch of moving parts, as you say. Yeah, yeah, I mean, Travis, we're working through that, right? We'll see how, how the remainder of the year plays out, but certainly as things get done and ink that, you know, we put that into the market. But right now it's these; they take a bit of time, especially when you're looking for all the boxes that Ryan just mentioned that need to be checked.

Speaker Change: Okay, fantastic. And just to keep keep the fire under a bit, any any timelines on that? Is this is this like a 2024 negotiation finalization? Or, or should we be more patient on something like this? That sounds like there's a bunch of moving parts, as you say.

Craig Bryksa: Yeah, yeah, I mean, Travis, we're working through that, right? We'll see how the remainder of the year plays out. But certainly, as things get done, I think that, you know, we put that into the market. But right now, these things take a bit of time, especially when you're looking for all the boxes that Ryan just mentioned that need to be checked. So I guess we'll see how it plays out here over the next little bit.

Speaker Change: Yeah, yeah, I mean, Travis, we're working through that, right? We'll see how the remainder of the year plays out, but

Speaker Change: Certainly, as things get done, we put that into the market, but right now, they take a bit of time, especially when you're looking for all the boxes that Ryan just mentioned that need to be checked. So I guess we'll see how it plays out here over the next little bit.

Travis Wood: So, I guess we'll see how it plays out here over the next four bit. Okay, and then just one more question related to that, and I'll turn it back. But I think, as you mentioned, the hammerhead facilities kind of in and around 80, 90,000 a day of processing. Is that the right way to think of that? Yeah, the capacity that we picked up was right in around 80. Okay. Awesome. Thanks very much. I'll turn it back. Yeah, thanks, Travis. Thank you.

Travis Wood: Okay, and then just one more question related to that, and I'll turn it back, but I think, as you mentioned, the Hammerhead facility is kind of in and around $80,000, $90,000 a day in processing. Is that the right way to think of that?

Speaker Change: Okay, and then just one more question related to that, and I'll turn it back, but I think as you mentioned that the Hammerhead facility is kind of in and around $80,000, $90,000 a day of processing. Is that the right way to think of that?

Craig Bryksa: Yeah, the capacity that we picked up was right around 80. Okay, okay.

Speaker Change: Yeah, the capacity that we picked up was right in around 80.

Travis Wood: Okay. Okay. Awesome. Thanks very much. I'll, I'll turn it back.

Speaker Change: Okay, okay, awesome. Thanks very much. I'll turn it back.

Operator: Thank you. There are no further questions at this time. Mr. Bryksa, please proceed.

Travis Wood: Yeah. Thanks, Travis.

Operator: There are no further questions at this time.

Craig Bryksa: I'm Mr. Bricks. I'll be specific. Okay.

Speaker Change: Thank you. There are no further questions at this time. Mr. Bryksa, please proceed.

Craig Bryksa: Okay, I'll pass it over to Sarfraz now. I think he's going to moderate a couple questions from our webcast portion. Thanks, Craig.

Sarfraz Somani: I'll pass it over to Sir Fraz now. I think he's going to moderate a couple of questions here from our webcast portion. Yeah. Thanks big. Yeah. There were a couple of questions online, but I think those good coverage with the questions we just had from the analysts right now. So there are no questions online right now.

Speaker Change: Okay, I'll pass it over to Sarfraz now. I think he's going to moderate a couple questions here from our webcast portion.

Sarfraz: Yeah, thanks, Craig. Yeah, there were a couple of questions online, but I think those got covered with the questions we just had from the analysts right now. So there are no questions online right now. So I'd like to thank everyone for joining our call today.

Speaker Change: Yeah, thanks, Craig. Yeah, there were there were a couple of questions online, but I think those got covered with the questions we just had from the analysts right now. So there are no questions online online right now. So I'd like to thank everyone for joining our call today. Thanks, everybody.

Operator: So I'd like to thank everyone for joining our call today. Thanks, everybody. Thank you.

Operator: Thank you. Varen's Investor Relations Department can be reached at 1-855-767-6923. Thank you all for participating. You may all disconnect.

Operator: Variance investor relations department can be rich at 1, 8, 5, 5, 7, 6, 7, 6, 9, 2, 3. Thank you all for participating. You may all disconnect.

Speaker Change: Thank you. Varen's Investor Relations Department can be reached at 1-855-767-6923. Thank you all for participating. You may all disconnect.