Q4 2024 ARC Resources Ltd Earnings Call
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Speaker Change: Good morning, ladies and gentlemen, and welcome to the Arc Resources Ltd, Q4, 'twenty 'twenty four earnings conference call.
Speaker Change: At this time all lines are in a listen only mode.
Speaker Change: 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 one on your Touchtone phone.
Speaker Change: And if at any time during this call you require immediate assistance. Please press Star Zero Party operator.
Speaker Change: This call is being recorded and Friday February seven 2025.
Speaker Change: And I would now like to hand, the call over to your first speaker today Dell Lucco. Please go ahead.
Speaker Change: Thank you operator, good morning, everyone and thank you for joining us for our fourth quarter earnings Conference call joined.
Terry Anderson: Joining me today are Terry Anderson, President and Chief Executive Officer, Kris Bibby, Chief Financial Officer, Herman Jan Gary Chief Operating Officer, Lara Conrad Chief Development Officer, and Ryan Berrett Senior Vice President marketing.
Terry Anderson: I turn it over to Terry Chris to take you through our fourth quarter results and 2020 for 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.
Terry Anderson: Dollar amounts disclosed today are in Canadian dollars, unless otherwise stated.
Terry Anderson: The press release financial statements and MD&A are available on our website as well as SEDAR plus 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. Please go ahead.
Terry Anderson: Thanks, Dale good morning, everyone and thank you for joining us today.
Speaker Change: We're excited to take you through our fourth quarter results in 2024.
Speaker Change: <unk> can provide some insight into how things are shaping up in 2025.
Speaker Change: 'twenty 'twenty four it can be summarized as a milestone year for arc and one that was defined by operational excellence capital discipline and long term profitability.
Speaker Change: I'll begin with our fourth quarter results the quarter was headlined by production of 382000 Boe per day, the highest in our 29 year history.
Speaker Change: This included record condensate in light oil production of approximately 105000 barrels per day, which represents a 20% increase year over year.
Speaker Change: The increase was primarily driven by two material events production contribution from Hitachi and strong results at CAC laugh.
Speaker Change: A cat, but production averaged approximately 195000 Boe per day during the fourth quarter, which included greater than 100000 barrels per day of condensate and natural gas liquids.
Speaker Change: The growth in condensate as a result of focusing our development in areas with higher condensate gas ratios, which we plan to continue in 2025 in.
Speaker Change: In addition, we continue to optimize our completion design, resulting in more effective frac placement and ultimately better capital efficiencies.
Speaker Change: Moving on to attach it 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.
Speaker Change: So it is operating as anticipated with the majority of startup wells now on production production.
Speaker Change: Continue to increase and December averaging about 29000 BOE per day. This included 18000 barrels per day of liquids of which 14000 barrels per day with condensate.
Speaker Change: Production currently exceeds 30000 Boe per day, and we are on track to deliver average production in the first quarter between 30000 to 35000 BOE a day, 60% condensate and Ngls.
Speaker Change: For 2025, we expect full year average production of approximately 100.
Speaker Change: Approximately 37500 Boe's per day.
Speaker Change: I'd like to thank our staff and service providers for their support in the safe and successful construction and startup of attaching phase one is the first milestone in delivering on our long term plan and your efforts have ensured we are right on track.
Speaker Change: Our 2024, our results were achieved executing at $1.85 billion capital program, which represented one of our largest and most efficient development programs. We.
Speaker Change: We delivered annual free funds flow of $627 million, which was all returned to shareholders through our base dividend and share buybacks.
Speaker Change: With the upfront capital associated with phase one 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 one $8 billion.
Speaker Change: 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.
Speaker Change: Our operating cost in the quarter were $4 20 per Boe.
This low cost structure as a result of owning and operating our infrastructure.
Speaker Change: 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 eco benchmark.
Speaker Change: This was another year of incredible activity and I'm pleased with our operational and financial results. It's also worth noting that these accomplishments were achieved while maintaining strong safety performance, which will always be our top priority.
Speaker Change: Finally, before I turn it over to Chris I'll speak to reserves.
Speaker Change: We delivered another year of consistent reserve growth positive technical revisions and low finding and development costs.
Speaker Change: This is a track record we have established over the years and what you should expect from <unk> going forward validating the inventory depth and reaffirming the profitability of our Montney assets.
Speaker Change: Three notable takeaways from this year's report.
Speaker Change: First it was another year of record reserves across all categories PDP proved in two P. P.
PDP reserves <unk> reserves grew by 5% at.
Speaker Change: It attaches are booked an additional 50 million Boe of <unk> reserves, bringing the total at attach it to a 174 million Boe.
Speaker Change: This represents just 9% of <unk> internal inventory estimate at attached sheet, providing a runway for long term reserve growth.
Speaker Change: As well we received positive technical revisions across all categories. This was due to relative outperformance across several assets, most notably at CAC Lac.
Speaker Change: Positive technical revisions and extensions represented a 28% increase to 2023 PDP reserves.
Speaker Change: Chocolate technical revisions were noteworthy representing 41 million barrels of oil equivalent on a total proved basis.
Speaker Change: Second our before tax NPV of <unk> reserves discounted at 10% 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 internal.
Speaker Change: We identified inventory.
Speaker Change: As always the pace of capital investment and development underpinning Arps reserves report aligns with our long term plan, we provided to our investors in 2023.
Speaker Change: Finally, PDP F&D cost of $11 87 per.
Speaker Change: Per Boe.
Speaker Change: <unk> future development capital equated to a one nine times recycle ratio and a two P. Recycle ratio of two four times based on a two P. F&D of $9 19 per Boe.
Speaker Change: With that I'll turn it over to Chris.
Chris: Thanks, Terry and good morning, everyone.
Speaker Change: 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.
Speaker Change: Fourth quarter production was a record despite arcs curtailment of natural gas production at Sunrise due to low gas prices.
Speaker Change: <unk> of 382000 Boe's per day was in line with company guidance as well as analyst forecasts.
Speaker Change: Record volumes were driven by Apache and industry leading results at capita.
Speaker Change: Arc has consistently been recognized in several top well reports across several asset.
Most notably having achieved all 10 of the top 10 condensate wells in Alberta based on recent public data.
Speaker Change: Full year production in 2024 averaged just shy of 348000 Boe's per day.
Speaker Change: At oil condensate and Ngls were all within guidance, while natural gas was slightly below due to curtailments at Sunrise.
Speaker Change: By curtailing production at Sunrise, we accomplished a few things.
Speaker Change: First we were able to preserve resource for a time when pricing strengthens.
Speaker Change: Second it allowed us to defer about $20 million of capital expenditures that we would've had previously spent to offset declines in 2025.
Speaker Change: We will always operate with profitability in my versus achieving a topline Boe production number.
Speaker Change: As we closed out the year natural gas prices in Western Canada recovered and production at Sunrise was fully restored.
Speaker Change: 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.
Speaker Change: There were three primary primary contributing factors.
Speaker Change: First arc as 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.
Speaker Change: Second we continue to realize relatively strong natural gas prices by utilizing our transportation to reach more attractive end markets in the U S.
Speaker Change: Our realized natural gas price of $2 58.
Speaker Change: Per mcf in the quarter equated to a 77% premium to the average <unk> monthly index price.
Speaker Change: For the year, our realized $2 37 per mcf, which compared to the local equal benchmark of $1 44, Canadian dollars and the average at Henry hub of U S $2 27 per Mcf.
Speaker Change: This marks the 12th straight year that arcs market diversification strategy resulted in a realized natural gas price that exceeded April by 20% or greater.
Speaker Change: Third and as Terry mentioned, we kept our costs low reflection of the quality of our assets operational excellence and our infrastructure ownership.
Speaker Change: Together operating and transportation costs were below $10 per Boe.
Speaker Change: Which was below the bottom end of our guidance.
Speaker Change: Total cash costs defined as operating costs transportation royalties general and administrative costs and interest were $16 per Boe, resulting in a 25 dollar per Boe netback.
Altogether, our generated $420 million of free funds flow during the quarter and $627 million for the year for the second straight year, our distributed essentially all free funds flow to shareholders through a combination of dividends and share buybacks.
Speaker Change: Finally, our exited the year with $1 3 billion of net debt flat year over year, representing approximately 0.5 times 2020 for cash flow.
Speaker Change: This is a comfortable level of debt given the asset quality inventory depth that underpin our business.
Speaker Change: 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 one six to $1 $7 billion with average annual production between 380000 barrels a day and 395000 Boe's per day.
Speaker Change: Production guidance includes approximately 105000 barrels per day of condensate and the light oil representing a 25% year over year growth in that category.
Speaker Change: The result is an increase in corporate margins and record free funds flow expected of approximately $1 8 billion.
Speaker Change: Based on the forward curve.
Speaker Change: Sticking to our strategy our plans to return essentially all free funds flow to shareholders in 2025, providing an attractive and competitive total return.
Speaker Change: I'll pass it back to Terry for closing remarks.
Terry: Thanks, Chris.
Speaker Change: 2024, it was a pivotal year in demonstrating our ability to execute and instill confidence in achieving the goals of our long term strategy.
Speaker Change: In 2024, we executed the largest capital program in our history, completing the first phase of attached.
Speaker Change: At the same time returned $600 million to our shareholders without adding any debt, which shows the financial strength of our business.
Speaker Change: 2024 has set us up well for 2025, where our priority is to demonstrate the profitability of arc incorporating a full year of attach heat.
Speaker Change: This will be measured by a marked increase in free cash flow, which will be distributed to our shareholders through a growing base dividend and share repurchases.
Speaker Change: In 2025, we will continue to invest in our new operating area of attached and our focus has already shifted towards phase III. The next major milestone in our long term strategy. This is an exciting time for arc and I would like to thank our employees service providers and partners for your continued support.
Speaker Change: We look forward to building on our momentum from 2024 and delivering strong results once again in 2025.
Speaker Change: Thank you.
Speaker Change: With that we can open the lineup 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.
Speaker Change: And this comes from the line of a Iran. Bill Co ski your line is now open. Please go ahead.
Speaker Change: Thanks, Good morning, guys. Thanks for taking my question I was hoping you.
Speaker Change: Could provide some details on the water cuts youre seeing at Apache and how that compares to your original expectations.
Laura: Thanks, Sarah and yet this is Laura chatting.
Speaker Change: As far as the water cuts go.
Speaker Change: We had to pull off the load fluid we didn't we only had a small facility to clean the wells up through until we started a phase one so we definitely were expecting that manage that heavier load fluid fluid recovery period.
Speaker Change: Say, we were at about 60% water cut.
Speaker Change: Even just like two three weeks ago, and we've come down to about 50% at this stage so definitely seeing the water cuts at perform as we would've expected and sort of similar cuts to what we see at <unk>.
Speaker Change: Perfect. Thank you.
Speaker Change: Thank you and the next question comes from the line of Michael Harvey from RBC Capital markets. Your line is now open. Please go ahead.
Michael Harvey: Yes sure. Good morning, So a couple of questions from me I guess just on the reserve bookings at attached to you I think.
Michael Harvey: I think you went through it but just confirming it really is the only phase one that's booked right now to reserves and then.
Michael Harvey: If thats the case, what would cause the evaluators too to start booking phase II.
Michael Harvey: Would that happen at the end of this year or does it require more time and in actual drilling results as you get kind of into the phase II startup period and then.
Michael Harvey: Second one just I know, it's early days, but any learnings.
Michael Harvey: So far from the ramp up of phase one.
Michael Harvey: You can apply to phase III or subsequent phases could be related to cost.
Michael Harvey: Well productivity.
Michael Harvey: Water items that Aaron mentioned or any facilities to offset anything that would give some folks a bit more understanding about what could change or remain the same into the next phase.
Michael Harvey: Yeah, Hi, Mike It's Laura here again.
Michael Harvey: As far as reserve feedback right now at Hitachi, we only have reserves associated with phase one so how we define phase one border is really the halfway river. So we have not put any undeveloped locations east of the halfway.
As far as when we will do that.
Michael Harvey: It's not.
Michael Harvey: Not so much waiting on well results, we do have pilot cost over there and we've got wells that are on production rate on our eastern edge of the field.
Michael Harvey: But what will.
Michael Harvey: Initiate reserve bookings will be the actual moving forward with sanction and investment in our phase II. So very similar to what you saw us do with phase one once we actually were committing investment to the project we started booking the reserves associated.
Speaker Change: With that I'll pass over to arm and on the second part of your question.
Speaker Change: Hi, Mike Armenia. So in terms of phase two what we expect is pretty much the same exact type of design and approach to phase one.
Speaker Change: Really there is nothing new as far as execution of phase III is concerned.
Speaker Change: Going through finalizing some of the plans and make some final adjustment decisions, but nothing that materially changes our approach to phase II.
Speaker Change: Great. Thanks for the color guys.
Speaker Change: Yeah.
Speaker Change: Thank you and the next question comes from the line of Patrick O'rourke from <unk> capital markets. Your.
Speaker Change: Your line is now open. Please go ahead.
Speaker Change: Hey, guys. Good morning, and congratulations on some very strong performance there in bringing Apache up here. Thanks for the rundown in terms of the performance there as well and what you've learned maybe just shift gears just slightly.
Speaker Change: You noted the.
Speaker Change: Cedar LNG the potential to sign an LNG offtake agreement there could you maybe walk through some of the parameters around that obviously understanding there's still some commercial sensitivity and then with respect to the project itself. What the next key milestones we should be watching for.
Speaker Change: Hey, Patrick it's Ryan Thanks for the thanks for the question Yeah, we are still proceeding with the SBA with our off taker on the on the Cedar project, we're extremely close to seven quite across the finish line yet as it pertains to the project as you know projects fully.
Speaker Change: They are.
Speaker Change: Obviously fully contracted from the capacity of the project so from our perspective right on track and at this point, we're still very early in the project and we're just monitoring that as it stands today.
Speaker Change: Any sort of timeframe that you can point to.
Speaker Change: At this point no at this point again it's.
Speaker Change: <unk> preliminary in the project design.
Speaker Change: Okay No problem and then just more of a sort of philosophical question around capital allocation.
Speaker Change: Youre very likely booked at Apache just spoke to that about 75% of your inventory.
Speaker Change: It is still booked here, how do you think about sort of the right mix of growth pauling value realization for that inventory massive inventory that you have.
Speaker Change: Return of capital to shareholders, and the scope and scale of sort of capitalization of infrastructure today.
Speaker Change: Yes, 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 balanced capital allocation approach.
Speaker Change: And Thats reinvesting 50 presented that to.
Speaker Change: Cash flow back into growing the business moderately and we think that's just prudent to grow moderately and then the other 50% is.
Speaker Change: Going back to the shareholders through the base dividend growth and through share buybacks and so last year, we had more capital expenditures. This year, we have less capital expenditure so more of that free category, 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: I am very disciplined balanced capital allocation approach over the long haul we will deliver the best risk return to the shareholders.
Speaker Change: There is nothing more than that.
Speaker Change: Okay, great. Thank you very much.
Speaker Change: Welcome.
Thank you and the next question comes from the line of Josh Silverstein from UBS. Your line is now open. Please go ahead.
Josh Silverstein: Hey, Thanks, good morning, guys.
Speaker Change: Well performance of cargo continues to be really strong in Europe 195 for the fourth quarter.
Speaker Change: Can you just talk about the gap to that versus the game plan to be at 170 175 for 2025 as their downtime any reason for the decline because you've now been above that level for the second half of 'twenty four.
Speaker Change: Hey, Josh it's Chris here I'll take a stab at it and then layer in arm and might have a comment but.
Speaker Change: 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.
Speaker Change: If you recall at capital Youre going to get 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 <unk>. So what we do as soon as the wells are done and we bring them on stream, we do not restrict them what that does lead to as high production.
Speaker Change: And then you will see declines so when we talk about 170 to 175000 BOE a day. That's what we're targeting is an annual average the reality is youre going to see probably prints of 150 up to close to 200000 Boe's a day throughout the year to hit that average and obviously just in the way this worked.
Speaker Change: <unk> Q4 hundred 95, it will be declining in the first half of the year before we bring on some wells late in 'twenty five again to target that average of $1 70 to 175.
Speaker Change: Got it thanks for that clarity.
Speaker Change: I'm curious with the natural gas side as well relative to the middle of 2024 period, when <unk> was weak and you curtailed volumes in Sunrise.
Speaker Change: The potential to slip sunrise the other way if you do have prices rising.
Speaker Change: Over the course of this year, even into next year as well thanks.
Speaker Change: I'll take it again pretty simpler answer the answer is no. We don't so sunrise, we run generally speaking at capacity so.
Speaker Change: It's different than something like a catheter that I just explained where you get a lot of variability throughout the year Sunrise, we will have less variability.
Speaker Change: And so therefore recap flex it substantially above colder weather you can get a little bit more gas through the system, but not a not a tremendous amount.
Speaker Change: Thanks, guys.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Once again as a reminder, for those who want to ask a question just press star and one on your Touchtone phone start in one part questions.
Speaker Change: And we will now take the next question. This comes from the line of Travis Wood from National Bank financial.
Speaker Change: Please go ahead. Your line is now open.
Travis Wood: Yes, thanks for getting me in the queue.
Speaker Change: Just wanted to ask around kind of operating through the winter, obviously cold weather is great for prices that make some operations a little more difficult what types of things do you have in place to help mitigate downtime.
Speaker Change: Maybe it's just operating items themselves, but also kind of mitigating BC hydro power outages and I'm kind of thinking specifically the Apache region.
Travis Army: Yes, Travis Army here in.
Travis Army: In terms of BC hydro, we have typically not seen any challenges or issues with winter operations in the region that we are operating in our connectivity to.
Travis Army: Transmission lines, I guess that gives us a certain degree or higher degree of certainty when it comes to our operation in general. This is not our first winter that we operate in Canada I think its 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 <unk>.
Travis Army: So moving.
Travis Army: Moving fluid and operating our facilities to make sure they are running safely and efficiently.
Speaker Change: Okay and is there anything done differently from.
Speaker Change: Let's say Dawson just as you built out a taxi, where they're kind of evolution as you thought about.
Speaker Change: Winter downtime potential as you built out attaching.
Speaker Change: Or is it just.
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 in the gas and condensate that youre getting into facility. So there are some specific design changes that obviously you need to make sure you factor in the power requirement and.
Speaker Change: <unk> and all of that stuff, but in general the principle is that we.
Speaker Change: We followed in attach is based on our many years of learnings.
Speaker Change: Adding facilities in Canada.
Speaker Change: Okay awesome. Thanks for the color I mean, that's all.
Speaker Change: Thank you and the next question comes from the line of Kelly coming from Bank of America Line is now open. Please go ahead.
Speaker Change: Hey, good morning, guys Terry Chris.
Speaker Change: I wanted to ask your views on consolidation here, what we've seen in the U S and that consolidation has imposed discipline and we believe that is leading to a healthier gas macro.
Speaker Change: Do you think consolidation your basin as necessary do you think we will see it in that set up are you guys a consolidator.
Speaker Change: It's terrie here alright, thank consolidation should happen to make so overall industry more efficient from that perspective.
Speaker Change: Archaea consolidator no I, just don't see that in the cards for US we have too many great assets to invest in and buying back our shares is a great return.
Speaker Change: Investors so.
Speaker Change: We probably won't be the consolidator, but generally speaking, yes, 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 <unk> due to a well designed can you kind of characterize what youre doing there and how it compares to your prior designs, but also to offset operators like may be able to enter.
Speaker Change: Sure.
Speaker Change: Kelly This is Laura as far as the design goes I think we've talked to that a little bit we used to.
Speaker Change: Have stage length, setting, Bob five clusters, and therefore really when you're completing the well you're looking for a fairly even distribution.
Speaker Change: Our fluids and sand across those five clusters, what we found is by dropping the clusters per stage down to three keeping all the other sort of main recipe.
Speaker Change: Main factors for the recipe the same dropping down to that three cluster is really allowing us to get better access into the reservoir, a better connectivity and that's what.
Speaker Change: Really improved our performance and our capital efficiency more importantly, capa.
Speaker Change: Awesome I appreciate that color. Thank you.
Speaker Change: Thank you and the next question comes from the line of Jamie Kubik from.
Speaker Change: See IDC capital markets in line is now open. Please go ahead.
Speaker Change: Yes, thanks for taking my questions I've got two here. So just maybe on the on the profile for Q1.
Speaker Change: In order to attach you're producing at about 70000 barrels a day in Q4 against corporate production of 382, and then our expectations for attached as you produce between 30 to 35000 barrels a day in Q1 can can you just talk a little bit more about the QM production guide of $3 70 to $3 75, and maybe the contribution between the various assets and what's what's.
Speaker Change: Driving the.
Speaker Change: Reduction quarter over quarter.
Speaker Change: You bet, Jamie it's Chris here, Thanks for the question.
Speaker Change: 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.
Speaker Change: And then the other two main things we talked about Caf were coming down from 195000, Boe's a day and then ramping up attaching to closer to the full 30% to 35000 Boe's a day of contribution relative to the contribution of roughly 17 in the quarter. As you mentioned so those are the big move.
Speaker Change: <unk> parts Dawson and everywhere else, we would expect to stay relatively flat quarter over quarter into Q1.
Speaker Change: And then just for a little more color. We would expect Q1 at this point in time to be the low point of 2025, so three.
Speaker Change: 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.
Speaker Change: With respect to the reserves report can you just touch on the economic factors and the bookings on that side and then it looks like <unk> demonstrated a sizeable increase in positive technical revisions can you talk about the.
Speaker Change: The remaining assets contribute to the tech revisions there. Thanks.
For sure so as far as the economic factors, we used the <unk> forecast and.
Speaker Change: And on gas in particular, they get price came down and I want to say about 18% year over year.
Speaker Change: And so with that price decrease what we always do as you book All your reserves and then once you've got your full book set you run it against the last price violence see what at the end of life comes off.
Speaker Change: So despite an 18% drop in pricing or economic factors removed about 1% volume at end of life. So I think what that really showcases how strong our portfolio is in the low cost structure that we have and.
Speaker Change: So that's the economic factors as you mentioned, yes, we talk to cackle as far as the positive revisions. We saw there overall, we saw strong performance across the portfolio.
Speaker Change: Normally talk.
Speaker Change: And sort of put a whole bunch of detail out on our specific properties.
Speaker Change: We noted that the.
Speaker Change: <unk> technical revisions were about 41 million barrels equivalent out of <unk> and the one P category.
Speaker Change: Total lumpy tax revisions of 74 million barrels so that came in from the rest of the properties again, just seen 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.
Speaker Change: Okay. Thank you that's all for me.
Speaker Change: Thank you and we have a follow up question from Erin Bill.
Bill Coscheme: Bill co scheme from TD Cowen. Your line is now open. Please go ahead.
Speaker Change: Thanks, Hey, Thanks for taking my second question I was curious to what extent the capital efficiencies Youre seeing from the modified completion of catalog and incorporated into your 25 guidance for your five year plan.
Speaker Change: Yes, 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 as we go into budget and when I say results.
Speaker Change: On the production side as well as all of our capital inputs and that's the basis of the next year's projections June for however, 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 'twenty five as to what we saw in 'twenty four.
Speaker Change: Thanks again.
Speaker Change: Thank you and we have no further questions at this time I will hand, the call over to Dale Vico.
Speaker Change: Please go ahead Sir.
Speaker Change: Alright, Thank you to everyone for the questions and for joining the call that concludes the call. Thank you.
Speaker Change: Thank you. This concludes our conference call for today. Thank you all for participating you may now disconnect.
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