Q4 2024 ARC Resources Ltd Earnings Call
Speaker Change: Good morning, ladies and gentlemen, and welcome to the ARC Resources Limited Q4 2024 Earnings Conference Call.
Speaker Change: At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. During this time, should you wish to ask a question, please press star and 1 on your touch-tone phone.
Speaker Change: And if at any time during this call you require immediate assistance, please press star zero for the operator.
Speaker Change: His call is being recorded on Friday, February 7, 2025. And I would now like to hand the call over to your first speaker today, Dale Lewko. Please go ahead.
Dale Lewko: Thank you, Operator. Good morning, everyone, and thank you for joining us for our fourth quarter earnings conference call.
Dale Lewko: Joining me today are Terry Anderson, President and Chief Executive Officer, Chris Bibby, Chief Financial Officer, Armin Jahangiri, Chief Operating Officer, Laura Conrad, Chief Development Officer, and Ryan Barrett, Senior Vice President, Marketing.
Dale Lewko: Before I turn it over to Terry and Chris to take you through our fourth quarter results and 2024 reserves, I'll remind everyone that this conference call includes forward-looking statements and non-GAAP and other financial measures with the associated risks outlined in the earnings release and our MD&A.
Dale Lewko: All dollar amounts disclosed today are in Canadian dollars unless otherwise stated. Finally, the press release, financial statements, and MD&A are available on our website as well as CDAR+. Following our prepared remarks, we'll open the line to questions.
Speaker Change: With that, I'll turn it over to our President and CEO, Terry Anderson. Terry, please go ahead.
Terry Anderson: Thanks Dale. Good morning everyone and thank you for joining us today. I'm excited to take you through our fourth quarter results and 2024 reserves and provide some insight into how things are shaping up in 2025.
Terry Anderson: 2024 can be summarized as a milestone year for AHRQ and one that was defined by operational excellence, capital discipline, and long-term profitability.
I'll begin with our fourth quarter results.
Terry Anderson: The quarter was headlined by production of 382,000 BOE a day, the highest in our 29-year history.
Terry Anderson: This included record condensate and light oil production of approximately 105,000 barrels per day, which represents a 20% increase year-over-year.
Terry Anderson: The increase was primarily driven by two material events, production contribution from Hitachi and strong results at CAQA.
Terry Anderson: At CAQA, production averaged approximately 195,000 BOE per day during the fourth quarter, which included greater than 100,000 barrels per day of condensate and natural gas liquids.
Terry Anderson: The growth in constate is a result of focusing our development in areas with higher constate-to-gas ratios, which we plan to continue in 2025.
Terry Anderson: In addition, we continue to optimize our completion design, resulting in more effective frac placement, and ultimately better capital efficiencies.
Terry Anderson: Moving on to ATACHI, it's been four months since we began commissioning phase one last October and overall we are on track to achieve what we set out to do in 2025.
Terry Anderson: The facility is operating as anticipated, with the majority of start-up wells now on production.
Terry Anderson: Production continued to increase in December, averaging about 29,000 BOE per day. This included 18,000 barrels per day of liquids, of which 14,000 barrels per day was condensate.
Terry Anderson: Production currently exceeds 30,000 BOE per day, and we are on track to deliver average production in the first quarter between 30,000 to 35,000 BOE a day, 60% CONSATE and NGLs.
Terry Anderson: For 2025, we expect full year average production of approximately 37,500 BLE per day.
Terry Anderson: I'd like to thank our staff and service providers for their support in the safe and successful construction and startup of Hitachi. Phase one is the first milestone in delivering on our long-term plan and your efforts have ensured we are right on track.
Terry Anderson: Our 2024 results were achieved executing a $1.85 billion capital program, which represented one of our largest and most efficient development programs.
Terry Anderson: We delivered annual free funds of $627 million, which was all returned to shareholders through our base dividend and share buybacks.
Terry Anderson: With the upfront capital associated with Phase 1 behind us, we anticipate a material increase in free cash flow in 2025. At current strip, we expect to generate free cash flow of approximately $1.8 billion.
Terry Anderson: Looking back, our low-cost structure and market diversification once again provided a material competitive advantage in achieving high margins and being profitable through cycles.
Terry Anderson: Our operating costs in the quarter were $4.20 per BOE. This low-cost structure is a result of owning and operating our infrastructure.
Terry Anderson: And despite low natural gas prices in Western Canada, ARC realized an average price in 2024 of $2.37 per MCF, which is 65% greater than the ACO benchmark.
Terry Anderson: This was another year of incredible activity and I'm pleased with our operational and financial results.
Terry Anderson: It's also worth noting that these accomplishments were achieved while maintaining strong safety performance, which will always be our top priority.
Terry Anderson: Finally, before I turn it over to Chris, I'll speak to reserves.
Chris: We delivered another year of consistent reserve growth, positive technical revisions, and low finding and development costs.
Chris: This is a track record we have established over the years and what you should expect from ARC going forward, validating the inventory depth and reaffirming the profitability of our Montney assets.
Three notable takeaways from this year's report.
Chris: First, it was another year of record reserves across all categories, PDP, approved, and 2P.
PDP reserves and 2P reserves grew by 5%.
Chris: At Hitachi, ARC booked an additional 50 million BOEs of 2P reserves, bringing the total at Hitachi to 174 million BOEs.
Chris: This represents just 9% of AHRQ's internal inventory estimate at Atache, providing a runway for long-term reserve growth.
Chris: As well, we received positive technical revisions across all categories. This was due to relative outperformance across several assets, most notably at CACLA.
Chris: Positive technical revisions and extensions represented a 28% increase to 2023 PDP reserves.
Chris: CAQA technical revisions were noteworthy, representing 41 million barrels of oil equivalent on a total approved basis.
Second, AHRQ's before-tax NPV of 2P reserves, discounted at 10%,
Chris: increased to $41 per share, an increase of 6% per share. For perspective, that value is based on the development of just 23% of our internally identified inventory.
Chris: As always, the pace of capital investment and development underpinning ARP's reserves report aligns with the long-term plan we provided to our investors in 2023.
Chris: Finally, PDP F&D costs of $11.87 per BOE, including future development capital, equated to a 1.9 times recycle ratio.
Chris: and a 2P recycle ratio of 2.4 times based on a 2P F&D of $9.19 per BOE.
With that, I'll turn it over to Chris.
Chris: Thanks Terry. Good morning everyone. I'll provide a summary of the financial results and then turn it back to Terry for some closing remarks. After that we'll open it up for question and answers.
Chris: Fourth quarter production was a record despite AHRQ's curtailment of natural gas production at sunrise due to low gas prices.
Chris: Production of 382,000 BUEs per day was in line with company guidance as well as analyst forecast.
Chris: Record volumes were driven by Hitachi and industry-leading results at CAQA.
Chris: AHRQ has consistently been recognized in several top well reports across several assets.
Chris: most notably having achieved all 10 of the top 10 condensate wells in Alberta based on recent public data.
Chris: Full year production in 2024 averaged just shy of 348,000 BOEs per day.
Chris: Light oil, condensate, and NGLs were all within guidance, while natural gas was slightly below due to curtailments at sunrise.
By curtailing production at Sunrise, we accomplished a few things.
Chris: First, we were able to preserve resource for a time when pricing strengthens. Second, it allowed us to defer about $20 million of capital expenditures that we would have had to previously spend to offset declines in 2025.
Chris: We will always operate with profitability in mind versus achieving a top-line BOE production number.
Chris: As we closed out the year, natural gas prices in Western Canada recovered, and production at sunrise was fully restored.
Chris: Turning to our financial performance, ARC reported fourth quarter cash flow of $770 million and free cash flow of $420 million, which was 5% and 17% above analyst estimates.
There were three primary contributing factors.
Chris: First, ARK is Canada's largest condensate producer and it represents approximately 70% of our revenue. In the quarter, we delivered record condensate production into a strong pricing environment, with benchmark condensate pricing averaging above $100 Canadian per barrel.
Chris: Second, we continue to realize relatively strong natural gas prices by utilizing our transportation to reach more attractive end markets in the U.S.
Chris: AHRQ's realized natural gas price of $2.58 per MCF in the quarter equated to a 77% premium to the average ACO 7A monthly index price.
Chris: For the year, ARC realized $2.37 per MCF, which compared to the local ACLE benchmark of $1.44 Canadian and the average at Henry Hub of US $2.27 per MCF.
Chris: This marks the 12th straight year that AHRQ's market diversification strategy resulted in a realized natural gas price that exceeded ACO by 20% or greater.
Terry Anderson: Third, and as Terry mentioned, we kept our costs low, a reflection of the quality of our assets, operational excellence, and our infrastructure ownership.
Terry Anderson: Together, operating and transportation costs were below $10 per Buie, which was below the bottom end of our guidance.
Terry Anderson: Total cash costs, defined as operating costs, transportation, royalties, general and administrative costs, and interest, were $16 per BOE, resulting in a $25 per BOE net back.
Terry Anderson: Altogether, ARK generated $420 million of free funds flowed during the quarter, and $627 million for the year. For the second straight year, ARK distributed essentially all free funds flowed to shareholders through a combination of dividends and share buybacks.
Terry Anderson: Finally, AHRQ exited the year with $1.3 billion of net debt, flat, year over year, representing approximately 0.5 times 2024 cash flow.
Terry Anderson: This is a comfortable level of debt given the asset quality and inventory depth that underpin our business.
Terry Anderson: Looking ahead, we have made no changes to 2025 guidance or the long-term plan. For 2025, we expect capital expenditures to trend lower year-over-year, into the range of $1.6 to $1.7 billion, with average annual production between 380,000 BOEs a day and 395,000 BOEs per day.
Terry Anderson: Production guidance includes approximately 105,000 barrels per day of condensate and light oil, representing a 25% year-over-year growth in that category.
Terry Anderson: The result is an increase in corporate margins and record free funds flow expected of approximately 1.8 billion dollars based on the forward curve.
Terry Anderson: Sticking to our strategy, our plan is to return essentially all free funds flow to shareholders in 2025, provide an attractive and competitive total return. With that, I'll pass it back to Terry for closing remarks.
Terry Anderson: Thanks Chris. 2024 was a pivotal year in demonstrating our ability to execute and instill confidence in achieving the goals of our long-term strategy.
Terry Anderson: In 2024, we executed the largest capital program in our history, completing the first phase of ATACHI. At the same time, returned $600 million to our shareholders without adding any debt, which shows the financial strength of our business.
Terry Anderson: 2024 has set us up well for 2025, where our priority is to demonstrate the profitability of AHRQ incorporating a full year of Atachi.
Terry Anderson: This will be measured by a marked increase in free cash flow, which will be distributed to our shareholders through our growing base dividend and share repurchases.
Terry Anderson: In 2025, we'll continue to invest in our new operating area of Hitachi, and our focus has already shifted towards phase two, the next major milestone in our long-term strategy.
Speaker Change: This is an exciting time for AHRQ, and I would like to thank our employees, service providers and partners for your continued support. We look forward to building on our momentum from 2024 and delivering strong results once again in 2025.
Thank you.
With that, we can open the line up for questions.
Speaker Change: Thank you, ladies and gentlemen. We will now begin the question and answer session. And as a reminder, for those who want to ask a question, please press star and one on your touchtone phone.
Speaker Change: And we will now take our first question. And this comes from the line of Aaron Wilkoski. Your line is now open. Please go ahead.
Aaron Wilkoski: Thanks, good morning guys, thanks for taking my question. I was hoping you could provide some details on the water cuts you're seeing at Atache and how that compares to your original expectations.
Thank you.
Aaron Wilkoski: Thanks, Erin. Yeah, this is Laura chatting. As far as the water cuts go, you know, we had to pull off the load fluid. We only had a small facility to clean the wells up through until we started up phase one, so we definitely were expecting to manage that heavier load fluid recovery period.
Aaron Wilkoski: I'd say we were at about 60% water cut even just like two, three weeks ago and we've come down to about 50% at this stage, so definitely seeing the water cut perform as we would expect it and sort of similar cuts to what we see at CAQA.
Perfect, thank you.
Speaker Change: Thank you. And the next question comes from the line of Michael Harvey from RBC Capital Markets. The line is now open. Please go ahead.
Michael Harvey: Yes, sure. Good morning. So, a couple questions for me, I guess, just on the...
reserve bookings at Atache, I think
Speaker Change: I think you went through it, but just confirming it really is only phase one that's booked right now to reserves, and then if that's the case, what would cause the evaluators to start booking phase two? Would that happen at the end of this year or does it require more time and actual drilling results as you get kind of into the phase two?
Speaker Change: Startup period and then Second one just I know it's early days, but any learnings So far from the ramp of a phase one You can apply to phase two or subsequent phases could be related to cost
Speaker Change: Well productivity any of the any of the water items that Aaron mentioned or any facility stuff Seeing it would give some folks a bit more understanding about what could change or remain the same into the next phase
Speaker Change: Yeah, hi Mike, it's Laura here again. As far as reserves, you bet. Right now at Atashi, we only have reserves associated with phase one.
Speaker Change: So how we define phase one border is really the halfway river, so we have not put any
undeveloped locations east of the halfway.
Speaker Change: As far as when we will do that, you know, really, it's not so much waiting on well results. We do have a pilot test over there, and we've got wells that are on production right on our eastern edge of the field. So what we'll...
Speaker Change: Initiate reserve bookings will be the actual moving forward with sanction and investment in a Phase 2. So very similar to what you saw us do with Phase 1, once we actually were committing investment to the project, we started booking the reserves associated.
With that I'll pass over to Armin on
Speaker Change: Hi, Mike Harmon here. So, in terms of Phase 2, what we expect is pretty much the same exact type of design and approach to Phase 1.
Speaker Change: Really, there's nothing new as far as execution of Phase 2 is concerned, you know, we are going through finalizing some of the plans and, you know, make some final adjustment decisions, but nothing that materially changes our approach to Phase 2.
Great, thanks for calling guys.
Speaker Change: Thank you. And the next question comes from the line of Patrick O'Rourke from ATV Capital Markets.
Your line is now open. Please go ahead.
Patrick O'rourke: Hey guys, good morning and congratulations on some very strong performance there and bringing Atachi up here.
Speaker Change: Thanks for the rundown in terms of the performance there as well.
Speaker Change: still some commercial sensitivity, and then with respect to the project itself what the next key milestones we should be watching for are.
Speaker Change: Hey Patrick, it's Ryan. Thanks for the question. Yeah, we're still proceeding with the SPA, with our off-taker on the Cedar project.
Speaker Change: We're extremely close, just haven't got quite across the finish line yet. As it pertains to the project, as you know, the project is fully FID'd. They are obviously fully contracted for the capacity of the project.
Speaker Change: So, from our perspective, right on track, and at this point, we're still very early in the project, and we're just monitoring it as it stands today.
any sort of time frame that you can point to.
Speaker Change: At this point, no. At this point, again, it's very preliminary in the project design.
Speaker Change: Okay, no problem. And then just more of a sort of philosophical question around capital allocation. You know, you're very likely booked at a tax. You just spoke to that. About 75% of your inventory is still unbooked here. How do you think about
Speaker Change: sort of the right mix of growth, pulling, you know, value realization for that inventory, you know, massive inventory that you have against return of capital to shareholders and the scope and scale of sort of capitalization of infrastructure today.
Thank you.
Yeah, Patrick, it's Terry here.
Speaker Change: We're sticking to the five-year plan and what we laid in that five-year plan is this balanced capital allocation approach
cash flow back into growing the business moderately.
and we think that's just prudent to grow moderately.
and another 50% is...
Speaker Change: going back to the shareholders through the base dividend growth and through share buybacks. So last year we had more capital expenditures. This year we have less capital expenditures, so more of that free cash.
Speaker Change: where that cash flow is coming back to the shareholders. So we're just sticking to that plan. We truly believe just having.
Speaker Change: a very disciplined balanced capital allocation approach over the long haul will deliver the best risk return to the shareholders. There's nothing more than that.
Okay, great. Thank you very much.
Welcome.
Speaker Change: Thank you and the next question comes from the line of Josh Silverstein from UBF. Line is now open, please go ahead.
Speaker Change: Good morning guys. Well, performance at Cogwood continues to be really strong and you're at 195 for the fourth quarter. Can you just talk about the gap to that versus the game plan to be at 170, 175 for 2025? Is there downtime, any reason for the decline? Because you've now been above that level for the second half of 24. Thanks.
OK.
Speaker Change: Hey Josh, it's Chris here. I'll take a stab at it and then Lara and Armin might have a comment, but...
Speaker Change: It really what happened was late last year, we saw the results of our slightly modified completion and the effect of that was we had very, very high production coming into year end. If you recall at CAQA, you're going to get
Speaker Change: Some pretty big peaks and valleys just given the high productivity of the wells.
as well as the fact that we've got
Some excess productive capacity at CAQA.
Speaker Change: So, what we do is, as soon as the wells are done and...
We bring them on stream. We do not restrict them.
Speaker Change: What that does lead to is, you know, high production initially and then you will see decline. So when we talk about 170,000 to 175,000 BOEs a day, that's what we're targeting as an annual average. The reality is you're going to see probably prints of 150,000 up to close to 200,000.
Speaker Change: BUEs a day throughout the year to hit that average, and obviously just in the way this one worked out is Q4 high at 195. It will be declining in the first half of the year before we bring on some wells late in 2025 again to target that average of 170 to 175.
Speaker Change: Do you have the potential to flex Sunrise the other way if you do have, you know, prices rising? You know over the course of this year even into next year as well. Thanks
Speaker Change: I'll take it again. It's a pretty simpler answer. The answer is no, we don't. So Sunrise we run, generally speaking, at capacity. So it's different than something like a CAFRA that I just explained where you get a lot of variability throughout the year.
sunrise we would have less variability.
Speaker Change: and and so therefore we can't flex it substantially above colder weather. You can get a little bit more gas through the system but not a not a tremendous amount.
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Okay.
Speaker Change: Thank you. And once again, as a reminder, for those who want to ask a question, just press star and one on your touchtone phone. Star and one for questions.
Speaker Change: And we will now take the next question. This comes from the line of Travis Wood from National Bank Financial. Please go ahead. Your line is now open.
Travis Wood: Yeah, thanks for getting me in the queue. I just wanted to ask around...
Travis Wood: Kind of operating through the winter. Obviously cold weather is great for prices, but makes some operations a little more difficult What types of things do you have in place to help mitigate downtime?
Travis Wood: maybe it's just operating items themselves but also kind of mitigating BC Hydro power outages and I'm kind of thinking specifically that the Atache region.
Thank you.
Travis Wood: Yeah, Travis Armin here. In terms of BC Hydro, we have typically not seen any challenges or issues with winter operations in the region that we are operating and, you know, our connectivity to
Travis Wood: transmission lines. I guess that gives us a certain degree or higher degree of certainty when it comes to our operation.
Travis Wood: In general, this is not our first winter that we operate in Canada, I think it's like we know exactly how to run our facilities in this type of weather condition. There are certain practices that our teams are actively using in terms of moving fluid and operating our facilities to make sure they are running safely and efficiently.
Speaker Change: Okay, and is anything done differently from, let's say, Dawson, just as you built out Atachi? Were there kind of evolutions as you thought about winter downtime potential as you built out Atachi, or is it copy-paste?
Speaker Change: Yeah, the facilities have a fairly similar processing design, obviously every facility has its own unique process built into it, based on the composition of the fluid and the gas and condensate that you're getting in a facility.
Speaker Change: So there are some specific design changes that obviously you need to make sure you factor in the power requirement and, you know, winterization and all of that stuff, but in general, the principles that...
Speaker Change: We followed in Attachi's based on our many years of learning, you know, building facilities in Canada.
Okay, awesome. Thanks for the call, Armin. That's all.
Thank you.
Speaker Change: Thank you and the next question comes from the line of Kali Kameen from Bank of America. Line is now open, please go ahead.
Speaker Change: Hey, good morning guys. Terry, Chris. I want to ask your views on consolidation here.
Speaker Change: What we've seen in the U.S. is that consolidation has imposed discipline, and we believe that's leading to a healthier gas macro. Do you think consolidation in your basin is necessary? Do you think we'll see it in that setup? Are you guys a consolidator?
It's Terry here.
Speaker Change: I think consolidation should happen to make the overall industry more efficient.
from that perspective.
Speaker Change: Will ARC be a consolidator? No, I just don't see that in the cards for us
Speaker Change: We have too many great assets to invest in, and buying back our shares is a great return for our investors, so we probably won't be even consolidated, but generally speaking, yeah, I think the industry should become more efficient.
Speaker Change: At 12% free cash flow yield, I would echo your comment that ARC is a great investment. My second question here is operational. In your slide deck, I think you call out better performance at COCWA due to well designs. Can you kind of characterize what you're doing there and how it compares to your prior designs, but also to offset operators like maybe OVENTIF?
Speaker Change: Sure, Kalea, this is Laura. As far as the design goes, I think we've talked to it a little bit, you know, we used to
have stage lengths that involve five clusters.
Speaker Change: And, therefore, really when you're completing the well, you're looking for, you know, fairly even distribution.
of your fluids and sand across those five clusters.
Speaker Change: What we found is by dropping the clusters per stage down to three, keeping all the other sort of...
Speaker Change: main factors of the recipe the same. Dropping down to that three cluster is really allowing us to get better access into the reservoir and better connectivity. And that's what's really improved our performance and our capital efficiency, more importantly at CAQA.
Awesome. I appreciate that, Keller. Thank you.
Speaker Change: Thank you. And the next question comes from the line of Jamie Kubik from
Speaker Change: CIBC Capital Markets. The line is now open. Please go ahead.
Jamie Kubik: Yep, thanks for taking my questions. I've got two here. So just maybe on the on the profile for Q1
Jamie Kubik: You noted Attaché producing at about 17,000 BUAs a day in Q4 against corporate production at 382 and then Expectations for Attaché to produce between 30 to 35,000 BUAs a day in Q1 can can you just talk a little bit more about the Q1 production guide of 370 to 375 and
Jamie Kubik: and maybe the contribution between the various assets and what's driving the reduction quarter-over-quarter.
You bet, Jamie. It's Chris here. Thanks for the question.
Jamie Kubik: The main factors that are kind of moving around in the background, so you'll have a full quarter of sunrise production we would expect at this point, and then the other two main things, we talked about CAQA coming down from 195,000 VOEs a day and then ramping up ATACHI to closer to the full 30,000 to 35,000.
Jamie Kubik: BUE the day of contribution relative to the contribution of roughly 17 and a quarter as you mentioned So those are the big moving parts
Jamie Kubik: Dawson and everywhere else we would expect to stay relatively flat quarter over quarter into Q1
Jamie Kubik: And then just for a little more color, you know, we would expect Q1 at this point in time to be the low print of 2025, so 370-375 is reasonable for Q1, and then growing throughout the remainder of the year to get to the midpoint of guidance for 2025.
Speaker Change: Great, thank you. And with respect to the reserves report, can you just touch on the economic factors and the bookings on on that side?
Speaker Change: and then it looked like CACWA demonstrated a sizable increase in positive technical revisions. Can you talk about how the remaining assets contribute to the tech revisions there?
Speaker Change: For sure. So as far as the economic factors, we use the 3CA forecast.
and then once you've got your whole book set.
Speaker Change: You run it against the last price file and see what, at the end of life, comes off.
Speaker Change: So, despite an 18% drop in pricing, our economic factors removed about 1% of volume at end of life. So, I think what that really showcases is how strong our portfolio is and the low-cost structure that we have.
Speaker Change: So, that's the economic factors. As you mentioned, we talked to CAQA as far as the positive revisions we saw there. Overall, we saw strong performance across the portfolio. We don't normally talk or sort of pull a whole bunch of detail out on our specific properties.
Speaker Change: But, you know, we noted that the 1P technical revisions were about 41 million barrels.
equivalent out of CACLA in the 1P category.
Speaker Change: We had total 1 P-TECH revisions of 74 million barrels, so that came in from the rest of the properties. Again, just seeing strong performance, our designs are working. We had a good year in 2024, and the reserve book always reflects sort of what the business performance is.
Okay, thank you. That's all for me.
Speaker Change: Thank you. And we have a follow-up question from Aaron Bilkoski from TD Calvin. Your line is now open. Please go ahead.
Aaron Bilkoski: Thanks for taking my second question. I was curious to what extent the capital efficiencies you're seeing from the modified completion at TACO have been incorporated into your 25 guidance or your five-year plan?
Aaron Bilkoski: Yeah, thanks Erin. It's Lara again. As far as the capital efficiency, I mean, what we do from a forecast perspective is we always look at our results.
Aaron Bilkoski: as we go into budget. And when I say results, that's both on the production side as well as all of our capital inputs. And that's the basis of the next year's projections. Tune for however we're moving around the reservoir and any differences we might see there. So at the end of the day, we're really forecasting very similar results in 25 as to what we saw in 24.
Thanks again.
Aaron Bilkoski: Thank you. And we have no further questions at this time. I will hand the call over to Dale Lewko.
Please go ahead, sir.
Dale Lewko: All right, thank you to everyone for the questions and for joining the call. That concludes the call. Thank you.
Dale Lewko: Thank you. This concludes our conference call for today. Thank you all for participating. You may now disconnect.
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