Q4 2024 Black Stone Minerals LP Earnings Call
Okay.
Operator: Hello, and thank you for standing by.
Regina: Hello, and thank you for standing by my name is Regina and I will be your conference operator today at this time I would like to welcome everyone to the Black Stone Minerals' fourth quarter and full year 'twenty 'twenty four earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
Regina: My name is Regina, and I will be your conference operator today.
Regina: At this time, I would like to welcome everyone to the Black Stone Minerals fourth quarter and full year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise.
Regina: After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press star one again.
Regina: If you'd like to ask a question. During this time simply press Star then the number one on your telephone keypad.
Mark Muth: Jogger question Press Star one again I would now like to turn the conference over to Mark Muth Director of Finance. Please go ahead.
Mark Meaux: I would now like to turn the conference over to Mark Meaux, Director of Finance. Please go ahead. Thank you. Good morning to everyone. Thank you for joining us either by phone or online for Black Stone Minerals fourth quarter and full year 2024 earnings conference call. Today's call is being recorded and will be available on our website along with the earnings release which was issued last night. Before we start, I'd like to advise you that we will be making forward-looking statements during this call about our plans, expectations, and assumptions regarding our future performance. These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements.
Mark Muth: Thank you good morning, everyone.
Speaker Change: Everyone. Thank you for joining us either by phone or online for Black Stone Minerals' fourth quarter and full year 2024 earnings Conference call. Today's call is being recorded and will be available on our website along with the earnings release, which was issued last night before we start I'd like to advise you that we will be making forward looking statements. During this call about our.
Speaker Change: Plans expectations and assumptions regarding our future performance. These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward looking statements for a discussion of these risks you should refer to the cautionary information about forward looking statements in our press release from yesterday.
Mark Meaux: For discussion of these risks, you should refer to the cautionary information about forward-looking statements in our press release from yesterday and the risk factors section of our 2024 10-year We may refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliation of these measures to the most directly comparable GAAP measures.
Speaker Change: The risk factors section of our 2024 10-K, we may refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance reconciliation of these measures to the most directly comparable GAAP measure.
Mark Meaux: and other information about these non-GAAP metrics are described in our earnings press release from yesterday, which can be found on our website at www.blackstoneminerals.com.
Speaker Change: Other information about these non-GAAP metrics are described in our earnings press release from yesterday, which can be found on our website at www Dot Blackstone minerals Dot com.
Mark Meaux: Joining me on the call from the company are Tom Carter, Chairman, CEO and President, Taylor DeWalch, Senior Vice President, Chief Financial Officer and Treasurer, Carrie Clark, Senior Vice President, Chief Commercial Officer, Steve Putman, Senior Vice President and General Counsel, and Fowler Carter, Senior Vice President, Corporate Development.
Speaker Change: Turning me on the call from the company are Tom Carter, Chairman, CEO, and President tailored to Walsh Senior Vice President Chief Financial Officer, and Treasurer, Kerry Clark Senior Vice President and Chief Commercial Officer, Steve Putman, Senior Vice President and General Counsel and salary Carter Senior Vice President corporate development I'll now I will turn the call over to Tom.
Mark Meaux: I'll now turn the call over to...
Speaker Change: Tom.
Tom Carter: Good morning to everyone on the call and thank you for joining us today to discuss our fourth quarter. and Full Year 24 Results.
Tom Carter: Good morning to everyone on the call and thank you for joining us today to discuss our fourth quarter.
Tom Carter: In full year 'twenty for herself beginning before getting into those details I want to congratulate our harder on his recent promotion to SVP of corporate development.
Tom Carter: Before getting into those details, I want to congratulate Powell Carter on his recent promotion to SVP of Corporate Development. where he will continue to lead our acquisition program and work with all of the team on our ongoing long-term initiative.
Tom Carter: Where he will continue to lead our acquisition program and work with all of the team on our ongoing long term initiatives.
Tom Carter: 2024 can be described in two halves. We started the year with additive oil production and revenue from our strong oil assets. but weak natural gas pricing hindered production in the second half. Despite the natural gas headwinds, our robust portfolio of both oil and gas assets enabled us to remain within our production guidance and hold our distributions at $0.375 for the fourth quarter. We're encouraged by the stronger natural gas pricing fundamentals, which coupled with our attractive oil assets puts Blackstone in a solid position for 2025.
Tom Carter: 2024 can be described as two halves, we started the year with additive oil production and revenue from our strong oil assets, but weak natural gas pricing hindered production in the second half of the year.
Tom Carter: Despite the natural gas headwinds, our robust portfolio of both oil and gas assets enabled us to remain within our production guidance and hold our distributions at 37%.
Tom Carter: For the fourth quarter.
Tom Carter: We're encouraged by the stronger natural gas pricing fundamentals, which coupled with our attractive boil assets puts blackstone in a solid position for 2025.
Tom Carter: In addition, we continue to focus on our targeted acquisition strategy, which further builds on our long runway of high-interest development opportunities. On the acquisition front, we added another $43 million in minerals and royalty acquisitions during the quarter, bringing our total acquisitions since September of 2023 to around $130 million. In 2025, we're confident that we will continue to identify and execute on accretive opportunities, which enhance our existing asset position. increase development opportunities, and ultimately add long-term value to the shareholder.
Tom Carter: In addition, we continue to focus on our targeted acquisition strategy, which further builds on our long runway of high interest development opportunities.
Tom Carter: On the acquisition front, we added another $43 million in minerals and royalty acquisitions during the quarter.
Tom Carter: Our total acquisitions since September of 2003 to around $130 million.
Tom Carter: 2025, we're confident that we will continue to identify and execute on accretive opportunities, which enhance our existing asset position.
Tom Carter: Kris development opportunities and ultimately look at long term value to the shareholders.
Tom Carter: Overall, it was a solid quarter and a solid year despite a volatile pricing environment. We're pleased to hold our distribution flat during the year with excess coverage. Our clean balance sheet and ample liquidity position enable us to continue to execute on our commercial strategy, including targeted grassroots acquisitions and working with operators to achieve full field development across our assets.
Tom Carter: Overall, it was a solid quarter and a solid year. Despite a volatile pricing environment. We're pleased to hold our distributions flat during the year with excess coverage, our clean balance sheet and ample liquidity position enable us to continue to execute on our commercial strategy, including targeted.
Tom Carter: Grass roots acquisitions, and working with operators to achieve full field development across our assets.
Tom Carter: Constructive natural gas outlook buoyed by growth in LNG demand and robust oil production from multiple bases. provides a solid outlook for 25 and long, profitable runway for the company to ultimately drive strong, long-term shareholder.
Tom Carter: Constructive natural gas outlook buoyed about growth in LNG demand and robust oil production from multiple basins provides a solid outlook for 'twenty five and long profitable runway for the company to ultimately drive strong long term shareholder returns.
Taylor DeWalch: With that I'll turn it over to Taylor to walk through the financial details of the quarter. Thank you, Tom, and good morning, everyone. As Tom pointed out, we had a solid quarter despite continued commodity price volatility. Mineral and royalty production was 34.8 thousand BLE per day in the fourth quarter, and total production volumes were 36.1 thousand BLE per day, both of which are down from last For 2024, mineral and royalty production was 36.6 thousand BOE per day while total production volumes averaged 38.5 thousand BOE per day. Net income was $46.3 million for the fourth quarter with adjusted EBITDA being $90.1 million.
Tom Carter: With that I'll turn it over to Tyler to walk through the financial details of the quarter.
Tyler: Thank you Tom and good morning, everyone as Tom pointed out we had a solid quarter. Despite continued commodity price volatility.
Tyler: And royalty production was $34 8000 daily per day in the fourth quarter and total production volumes were $36 1000 Boe per day, both of which are down from last quarter for 2020 for mineral and royalty production was $36 6000 Boe per day, while total production volumes averaged $38 5000.
Tyler: Yearly per day.
Tyler: Net income was $46 3 million for the fourth quarter.
Tyler: With adjusted EBITDA being $90 1 million.
Taylor DeWalch: 59% of oil and gas revenue in the quarter came from oil and condensate production. For the full year 2024, net income was $271.3 million, with adjusted EBITDA totaling $380.9. We maintained our distribution at 37.5 cents per unit for the quarter, or $1.50 on an annualized basis. Distributable cash flow for the quarter was $81.9 million, which represents 1.03 times coverage for the quarter.
Tyler: 59% of oil and gas revenue in the quarter came from oil and condensate production for the full year 2024, net income was 271 3 million with adjusted EBITDA totaling $389 million, we maintained our distribution at $37.05 per unit for the quarter were $1 five.
Tyler: On an annualized basis.
Tyler: Distributable cash flow for the quarter was $81 9 million, which represents one three times coverage for the quarter.
Taylor DeWalch: In conjunction with the earnings release, we released our 2025 guidance yesterday. As we look forward to the full year 2025, we expect an increase in production from 2024 levels. In addition to activity across our broad acreage position, this production increase is driven by our unique high-interest development activity we highlighted in our press release last night. In East Texas, we continue to work with multiple operators to promote development on our Shelby Trough Acres. Currently, Exco is operating one rig and Athon is operating three rigs on the company's acreage. ATHON has already turned to sales 11 gross wells in 2025, with another 17 expected for the remainder of the year.
Tyler: In conjunction with the earnings release, we released our 2025 guidance yesterday as we look forward to the full year 2025, we expect an increase in production from 2024 levels. In addition to activity across our broad acreage position.
Tyler: This production increase was driven by our unique high interest development activity, we highlighted in our press release last night.
Tyler: In East, Texas, we continue to work with multiple operators to promote development on our Shelby trough acreage currently exco is operating one rig in the <unk> operating three rigs on the Companys acreage.
Tyler: <unk> has already turned to sales 11 gross wells in 2025 with another 17 expected for the remainder of the year.
Taylor DeWalch: In addition, the accelerated development agreements in the Louisiana Haines Mill are well underway, with first production on two high-interest wells during the fourth quarter of 2024 and another 11 gross wells expected to begin producing during 2025. Under these agreements, the operators will provide near-term certainty and accelerated development on BSM's high-interest areas in exchange for a slightly reduced royalty burden. In our Permian position, we are tracking activity across our acreage, including a large development in Culverson County. This development includes 37 gross wells on Blackstone's acreage. Currently, 13 wells have been smudged and we expect eight of the 37 wells to first production in 2025.
In addition.
Tyler: The accelerated development agreements in the Louisiana Haynesville are well underway with first production on two high interest wells during the fourth quarter of 2024.
Tyler: And another 11 gross wells expected to begin producing during 2025.
Tyler: Under these agreements the operators will provide near term uncertainty and accelerating development on Dsm's high interest areas in exchange for a slightly reduced royalty burden.
Tyler: And our Permian position, we are tracking activity across our acreage, including a large development in Culberson County this.
Tyler: This development includes 37 gross wells on Blackstone's acreage currently 13 wells are in slide and we expect 837 wells to first production in 2025.
Taylor DeWalch: These developments across different basins represent unique, high-interest assets within our portfolio and further demonstrate our strong, diverse asset base covering growth opportunities in both oil and gas plays. We expect lease bonus, operating expense, and production costs for 2025 to be in line with 2024. G&A is expected to increase slightly in 2025 as a result of hiring and promotions during the last year, as well as some additional hiring expected in 2025. Again, we had a solid quarter and year despite volatility in natural gas prices. With a strong start to 2025, we are confident in our long-term strategy and our ability to generate long-term value for our shareholders.
These developments across different various basins represent unique high interest assets within our portfolio and further demonstrate our strong diverse asset base covering growth opportunities in both oil and gas plays.
Tyler: We expect lease bonus operating expense and production costs for 2025 to be in line with 2020 for G&A is expected to increase slightly in 2025 as a result of hiring and promotions during the last year as well as some additional hiring expected in 'twenty five.
Again, we had a solid quarter and year despite volatility in natural gas prices with a strong start to 2025, we are confident in our long term strategy and our ability to generate long term value for our shareholders.
Operator: With that, I'd like to open up the call for questions. At this time, I'd like to remind everyone, in order to ask a question, simply press star followed by the number one on your telephone keypad.
Tyler: With that I'd like to open up the call for questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question simply press star followed by the number one on your telephone keypad well take our first question from the line of John <unk> with Texas Capital. Please go ahead.
John Annis: We'll take our first question from the line of John Annis with Texas Capitol. Please go ahead. Hey, good morning, guys, and thanks for taking my questions.
Speaker Change: Hey, good morning, guys and thanks for taking my questions for my first one I wanted to focus in on the acquisitions you made in Q4.
John Annis: For my first one, I wanted to focus in on the acquisitions you made in Q4. Understanding you guys may prefer not to disclose specific locations at this time, could you help frame whether recent acquisitions continue to be focused on the Gulf Coast region and whether it's oil and gas? And then perhaps more broadly, how would you characterize the current bid-ask spread for mineral opportunities for both oil and gas?
Speaker Change: Understanding you guys may prefer not to disclose specific locations at this time could you help frame whether recent acquisitions continued to be focused on the Gulf coast region, and whether it's oil and gas and then perhaps more broadly would you characterize or how would you characterize the current bid ask spread for mineral.
Speaker Change: Opportunities.
Speaker Change: For both oil and gas.
Tom Carter: Hi, this is Tom. I'll take a shot at that. Our acquisition program is generally focused in the Gulf Coast region around expanding our relatively large Shelby Trough footprint, where we have had, from many prior acquisitions, a very solid footprint. And in the natural gas environment, LNG growth opportunity sets that we see in the future, we are conservatively growing this footprint. in that area to take advantage of long-term, add to our long-term inventory.
Speaker Change: Hi, This is Tom.
Speaker Change: I'll take a shot at that.
Speaker Change: Our acquisition program is.
Speaker Change: Generally focused in the Gulf Coast region around expanding our relatively large.
Speaker Change: Shelby trough footprint, where we have had.
Speaker Change: From many prior acquisitions.
Speaker Change: A very solid footprint.
Speaker Change: In the natural gas environment LNG.
Speaker Change: Growth opportunity.
Speaker Change: Sets that we see in the future we are conservatively.
Speaker Change: Growing this footprint.
Speaker Change: Hi.
Speaker Change: In that area to take advantage of long term add to our long term inventory.
Tom Carter: And I don't remember the second half of the question, if you could repeat that. We are, we're not actively looking at acquisitions in other basins at this time. Got it. That makes sense.
Speaker Change: And I don't remember the second half question, if you could repeat that.
Speaker Change: We're not actively looking at acquisitions in other basins at this time.
Speaker Change: Got it that makes sense.
John Annis: For my follow-up, shifting over to the accelerated drilling agreements entered into during 2024 in the Louisiana-Hainesville, how should we think about the duration of these agreements? Are they multi-year type agreements? And then with the constructive outlook for natural gas, especially the call on growth from the Hainesville, how does that backdrop impact your calculus of executing additional ADAs?
Speaker Change: For my follow up shifting over to the accelerated drilling agreements entered into during 2024, and the Louisiana Haynesville, how should we think about the duration of these agreements are they multi year type agreements and then with the constructive outlook for natural gas, especially to call them.
Speaker Change: Greg from the Haynesville, how does that backdrop impact to your calculus of executing additional andas.
John Annis: I guess another way of asking it, do you let activity naturally accelerate across your position while retaining a higher royalty, or does the certainty of activity that ADAs bring still remain attractive?
Speaker Change: Another way of asking do you like activity naturally accelerate across your position, while retaining a higher royalty or does the certainty of activity that 88, bringing still remain attractive.
Carrie Clark: Hi, this is Carrie. So, on the ADA, they are not generally these multi-year, you know, like the contracts that Joint Exploration Group we have with ATHON, these are much more targeted opportunities that we've gotten out and identified, both based on, you know, how much opportunity is there from a first and interest perspective, as far as, you know, where we might have interest already concentrated in a smaller area, and then, of course, the resource and the location of it. So in the aggregate, these accelerated agreements add up quite a bit, but they are typically much more limited than a contract like a multi-year joint exploration agreement.
Carey: Hi, This is carey.
Speaker Change: So on the 80 acre they are not.
Carey: Generally.
Carey: Please note the year.
Carey: The contract that figure.
Carey: Concurrently we are not sure.
Carey: The opportunities that we've got.
Carey: And identified.
Carey: Based on how.
Carey: How much opportunity is there for me.
Carey: First an interest perspective as far as where we might have interest already concentrated in a smaller area and then of course.
Carey: The resource.
And the location of it so.
Carey: In aggregate these 600.
Carey: Turning to the agreements add up quite a bit but they are typically.
Carey: That's where our limit.
Carey: Yes.
Carey: Contract labor and join Us and.
Carey: Multiyear doing exploration agreement.
Carrie Clark: And then I think I answered question two in that response, but just to be clear, we are intentional in seeking out those opportunities to try to We call them accelerated. It's accelerated development, but it really goes to the point of our whole strategy, one of the tenets of our strategy, to try to maintain some more predictability on the production side and consistency on volumes, since we can't do anything about commodity price. And as a mineral owner, since we're not the one out there drilling the wells. That's how this is one of the tools that we have to influence the activity without being in charge of actually drilling the wells.
Carey: And then I think.
I think I answered the question.
Carey: That response, but just to be clear.
Carey: We are intentional and seeking out those opportunities to try to.
Carey: We call them accelerated its accelerated development that it's really good.
Carey: To the point of our our whole strategy.
Carey: One of the tenants of our strategy to try and maintain.
Carey: Some predict more predictability on the production side and consistency on volume.
Carey: Can't do anything about commodity price and as a mineral owner since we're not the one out there drilling the well.
Carey: This is one of the tools that we have to influence the activity.
Carey: Without being in charger actually drilling the wells.
Carey: Sure.
Tom Carter: One follow-up, John, I'd just say is that while the agreements that we've entered into thus far are certainly targeted, as Carrie mentioned, we do still see other opportunities to potentially continue this type of a program into additional years, so there are additional opportunities that we continue to look at.
Speaker Change: One just wanted to follow others tailored to watch one follow up Jon I'd, just say is that while the agreement that we've entered into dust far are certainly targeted as Carey mentioned, we do still see other opportunities to potentially continue this type of a program into additional years.
Carey: So there are additional opportunities that we continue to look at.
John Annis: Thanks, guys.
Speaker Change: Thanks, guys.
Tim Rezvan: Again, for any questions, press star 1 on your telephone keypad, and our next question will come from the line of Tim Rezvan with KeyBank Capital Markets. Please go ahead. Good morning, folks, and thanks for taking my questions. As a start, I just wanted to... say that we appreciated the operational detail in the release, it was a helpful sort of update.
Speaker Change: Again for any questions Press star one on your telephone keypad and our next question will come from the line of Tim <unk> with Keybanc capital markets. Please go ahead.
Tim <unk>: Good morning folks and thanks for taking my questions as it start I just wanted to.
Tim <unk>: Hey that we appreciated the operational detail in the release it was.
Tim <unk>: Helpful sort of update.
Tim Rezvan: As we think about this increasing line of sight and activity in the Haynesville, do you think that the activity like now as in first half of 2025 is reflecting this increase or do you think this will be more of a back half in 2026 impact? Just trying to understand with the long cycle times because this increase seems to be setting up for a pretty good kind of multiyear period of growth. Just curious if you could have any kind of context on when this would be reflected and should we get a little more constructive on 2026 from this news.
Tim <unk>: As we think about this increasing line of sight and activity in the Haynesville.
Tim <unk>: Do you think that the.
Tim <unk>: Activity like now as in first half of $2025 is reflecting this increase or do you think this will be more of a back half in 2026 impact just trying to understand what the long cycle times. Because this this increase seems to be setting up for pretty good kind of multiyear period of growth.
Tim <unk>: Just curious if you can have any kind of context on when this will be reflected and should we get a little more constructive on 2026 some of this news.
Tom Carter: Tim, this is Tom. I'll take a shot at that and maybe give you a little more information than normal. in our Haynesville area, especially in the Shelby Trough. We are hopeful for a very long cycle of modest to better than modest annual growth in activity in and around our property.
Tom Carter: Tim This is Tom.
Tom Carter: I'll take a shot at that and maybe give you a little more information.
Normal.
Tom Carter: Yeah.
Tom Carter: In our in our Haynesville area, especially in the Shelby trough.
We are hopeful.
Tom Carter: For a very long cycle.
Tom Carter: Modest two better than modest annual growth and activity and.
Tom Carter: And in and around our properties.
Tom Carter: specifically. The acquisition area that we're working on encompasses in excess of 450,000 acres in various counties in East Texas and there's Athon is the most active in that area, but they only control about 40% of the acreage. in that area. And we are moving towards owning minerals and or leases. in that area, totaling almost half of the total acreage in the area. And we see a very long runway with very large amounts of additional activity out there for many years to come. And we are also trying to meaningfully expand our operator subset out there to have multiple operators operating in that area.
Specifically.
Tom Carter: The acquisition area that we're working on encompasses an excess of 450000 acres in various counties in East Texas.
Tom Carter: There is there is.
Tom Carter: Avon is the most active in that area, but they only control about 40% of the acreage in that area.
And we are.
Tom Carter: Moving towards owning minerals <unk> leases.
Tom Carter: In that area totaling almost half of the total acreage in the area.
Tom Carter: And we see.
Tom Carter: A.
Tom Carter: Very long runway.
Tom Carter: With very.
Tom Carter: Large amounts of additional activity out there.
Tom Carter: For many years to come with and we are also trying to meaningfully expand our operators subset out there to have multiple operators operating in that in that area of course.
Tom Carter: all of this is considered, it's no surprise to anybody, it's considerably natural gas price sensitive and you know natural gas prices have been hard to predict forever. We feel like the current environment is as not completely predictable but certainly relatively predictable and so we're optimistic that there's a fair amount of growth to come out here from expanding the areas that are being developed and expanding the number of Okay, that's helpful context.
Tom Carter: All of this is considered it's no surprise to anybody is considerably natural gas price.
Tom Carter: <unk> sensitive and.
Tom Carter: <unk>.
Tom Carter: Natural gas prices have been.
Tom Carter: Hard to predict forever.
Tom Carter: We feel like the current environment is as not completely predictable, but certainly relatively.
Tom Carter: Predictable and so were optimistic that Theres, a fair amount of.
Growth to come out here from <unk>.
Tom Carter: Expanding the areas that are being developed and expanding the number of operators.
Tom Carter: Okay.
Tom Carter: Okay.
Tom Carter: That's helpful context, I appreciate that.
Tim Rezvan: I appreciate that.
Tim Rezvan: And then in your prepared comments, you mentioned $43 million of that $110 million was spent in the fourth quarter on acquisitions.
Tom Carter: And then in your prepared comments, you mentioned $43 million.
Tom Carter: About 110 was spent in the fourth quarter on acquisitions.
Tim Rezvan: I understand you don't want to show your cards too much on the outlook, but can you provide some context on kind of what is still out there in terms of the opportunity set? And then just trying to think like how comfortable you would be putting debt on the balance sheet. It looks like you could theoretically make another $300 million acquisitions and be less than one times leveraged. So, you know, what's your kind of inclination to buy more and what's available? You know, any comments on that would be helpful.
Tom Carter: I understand you don't want to show your cards too much on the outlook, but can you provide some context on kind of what is still out there.
Tom Carter: In terms of the opportunity set.
Tom Carter: And then just trying to think like how comfortable you would be putting debt on the balance sheet. It looks like you could theoretically make another $300 million acquisitions and be less than one times levered. So.
Tom Carter: What's your kind of inclination to buy more and what's available any comments on that would be helpful. Thank you.
Tom Carter: Thank you.
Tom Carter: Well... Thank you so much. There is significant additional identified inventory available to be purchased. There's as much left to go as it has been acquired previously, if not more. And we are taking a conservative but studied look at that. We we do not want to.
Tom Carter: Well.
Tom Carter: There is significant additional identified inventory available available to be purchased.
Tom Carter: There is.
Tom Carter: There is much left to go.
Tom Carter: As it has been acquired previously if not more.
Tom Carter: And we are taking a conservative but studied look at that.
Tom Carter: We do not want to.
Tom Carter: I doubt that you would see us becoming $300 million or $400 million levered, but there are many different avenues that we could take to further expand our position out there. But we're going at it conservatively, trying to watch and monitor what's going on in the natural gas market, and that's going to have as much to say about how long and fast we go after this as anything. Okay, thank you for the context.
Tom Carter: I doubt that you would see us, becoming three or $400 million.
Tom Carter: Levered, but there are many.
Tom Carter: Different avenues that we could.
Tom Carter: To further.
Tom Carter: Expand our position out there but.
Tom Carter: We're going at it conservatively.
Tom Carter: Turning to watch and monitor what's going on in the natural gas market and thats going to have as much to say about how long and fast we go after this as anything else.
Tom Carter: Okay. Thank you for the context.
Operator: And that will conclude our question and answer session.
Speaker Change: And that will conclude our question and answer session I'll hand, the call back over to Tom Carter for any closing comments.
Tom Carter: I'll hand the call back over to Tom Carter for any closing comments. Okay, well, thanks very much for your interest and questions today and joining the call, and we look forward to chatting with you further in the future.
Tom Carter: Okay.
Tom Carter: Thanks, very much for your interest and questions today and joining the call.
Tom Carter: We look forward to.
Tom Carter: Chatting with you further in the future.
Operator: This will conclude our call today. Thank you all for joining.
Tom Carter: This will conclude our call today. Thank you all for joining you may now disconnect.
Operator: You may now disconnect.
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