Q1 2025 Tourmaline Oil Corp Earnings Call
Good morning, ladies and gentlemen, and welcome to the <unk>.
Q1, 2025 results conference call.
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Speaker Change: This call is being recorded on Thursday may eight 2025, I would now like to turn the conference over to Scott Kirker. Please go ahead.
Scott Kirker: Thank you operator, and welcome everyone to our discussion of term lease financial and operating results as at March 31, 2025 for the three months ended March 31, 2025 and 2024.
Speaker Change: My name is Scott Kirker, I'm, the Chief legal officer here at term needle up.
Speaker Change: Where we get started I refer you to the advisories on forward looking statements contained in the news release is supposed to be advisory is contained in the term leap annual information form and our MD&A available on SEDAR and on our website.
Speaker Change: Draw your attention to the material factors and assumptions in those advisories I'm here with Mike Rose term Lynch, President and Chief Executive Officer, Brian Robinson, Our Chief Financial Officer, and Jamie heard everybody's Vice President capital markets lets start with like speaking to some of the highlights of the last quarter and our year so far.
Speaker Change: After his remarks, we will be open for questions go ahead, Mike.
Speaker Change: Thanks, Scott and good morning, everybody. Thanks for dialing in and being online. So we're pleased to review our first quarter twenty-five results update E P activities and update the outlook.
Speaker Change: A few of the highlights our first quarter twenty-five average production was 638000 BOE a day.
Speaker Change: 8% over first quarter of 'twenty, four and slightly ahead of our first quarter twenty-five expected production range first quarter twenty-five cash flow was 963 million on total capex of $825 million you can spend equals about 800 million and that generated free cash flow level.
Speaker Change: 50 million for the quarter.
Speaker Change: As you've seen we continue to consolidate the northeast B C. Montney are one of the most profitable gas plays in North America, we're doing that in concert with our North East BC infrastructure build out and we're doing it ahead of the expected improving natural gas market, which to some extent has already started.
Speaker Change: Yeah.
Speaker Change: Board of directors has declared a special dividend of 35 cents per share payable on May 26, 2025, and the company intends to declare a quarterly dividend of 50 cents per share payable on June 30th F. 'twenty 'twenty five.
Speaker Change: A little on production March 'twenty 'twenty eight 'twenty five average production was 645000 Boe's a day, so higher than the quarterly average.
Speaker Change: The full year forecast production range remains the same however at between 635 and 665000 Boe's per day and production actually averaged 660000. So the high end of the range for the first half of April as we finished off our completion activity from the winter.
Speaker Change: And then the volume came down for the second half of the month given weaker prices are.
Speaker Change: We expect second quarter twenty-five average production in the 615 to 625000 B OE per day range as we've moved a significant amount of maintenance into Q2, given weaker prices currently are and particularly at station too.
Speaker Change: On financial results of our first quarter earnings were 213 million or 56 cents per fully diluted share.
Speaker Change: As mentioned first quarter E. P. Capex was 800 million, so a little less than originally forecast and we.
Speaker Change: We expect our E P capital spending during Q2 of 560 million as activities are always a little lighter during spring break breakup and that should yield an estimated first half 'twenty five free cash flow in the $430 million range.
Speaker Change: We do expect commodity prices to improve in the second half of this year with the start up of the LNG, Canada facility on the West Coast and that should result in higher free cash flow in the second half of 'twenty five relative to the first half.
Speaker Change: On the 25 capital program are the full year twenty-five program remains unchanged at between 2.6 and 2.85 billion.
Speaker Change: Given the weak station to gas prices, we will defer some of the planned Q2 frac activity into the third quarter of this year and will continue to match planned production growth to the.
Speaker Change: This debated increasing natural gas price curve in the second half.
Speaker Change: We will release the updated multi year E. P plan, including the full northeast B C montney gas and liquids infrastructure Buildout and incorporation of the recent acquisitions, we will do that in the second half of this year inclusive of projects not yet incorporated in that plan and the recent act.
Speaker Change: Physicians were looking at very strong production volumes are heading into the next decade as high as 850000 <unk> per day, but you'll see that our full plan the second half of this year.
Speaker Change: Just looking at the two acquisitions that were announced yesterday are in the north Montney, we've entered into an agreement to acquire the balance of the jointly owned the priest Conroy assets through the acquisition of swirl resources and in the South Montney, we've entered into an agreement to acquire assets in the greater Septimus area for them.
Speaker Change: A third party both transactions are expected to close in June and our forward guidance any P plan will reflect these acquisitions in the next update and aggregate. The two transactions added approximately 20000 boe's per day of current production.
Speaker Change: An estimated 363 million BOE ease of current two P reserves and approximately 410, a tier one future net drilling locations production and reserves from these assets are expected to experience significant future growth as each asset has systematically developed as part of the north.
Speaker Change: E P C Montney buildout.
Speaker Change: Okay, and real tier one inventory is scarce in North America, and we've been systematically ensuring we have decades of tier one inventory tier one a if you like secured at terminally.
Speaker Change: They'll appraise Conroy asset is the key component of the North Montney Phase II project and the greater Septimus asset is complementary and adjacent to our planned groundwork a 400 million a day 20000 barrels per day to phase gas plant development.
Speaker Change: Ah the South Montney transaction also included a land and a high quality inventory in the north deep basin.
Speaker Change: We'll issue a total of approximately 13 million common shares as consideration for the two transactions, leaving the balance sheet and a very strong position for potential further acquisitions in our core areas going forward briefly on marketing our average realized natural gas price in the first quarter.
Speaker Change: <unk> 430 per Mcf Canadian so meaningfully ahead of the April five a benchmark price, which was $2 19 per Mcf. So we continue to benefit from the expanding diversification portfolio and our strategic hedging program.
Speaker Change: From Q2 to Q4 'twenty five.
Speaker Change: Long term lean will average 2.1 Bcf per day of natural gas sales that are not exposed to floating local market prices at equal and station too.
Speaker Change: And we have an average of 1.16 Bcf per day hedged in 25 at a weighted average fixed price of $4 95 per Mcf Canadian.
Speaker Change: We continue to be highly encouraged by the growing demand driven natural gas price outlook in all of North America and that includes the western Canadian gas trading hubs.
Speaker Change: The company, though continues to remain disciplined so as to not oversupply. These local hubs.
Speaker Change: And just remind that the natural gas growth that we achieved in 23 and 24 was almost entirely matched up with new export contracts out of the western Canadian sedimentary basin.
Speaker Change: And for the approximately 200 million a day of gas growth that will occur during calendar 'twenty $595 million of that or about 50% will actually commence flowing to the Gulf coast in November of this year.
Speaker Change: E N P. A we had very strong EP performance across all of our operated complexes.
Speaker Change: In the quarter and we set production records in all three complexes.
Speaker Change: In D. C. We had a series of pads that are well ahead of performance type curves are and their details are in the verbiage in that bullet.
Speaker Change: The strong 24, well performance that we delivered in the Alberta Deep basin in 2024 continued in the first quarter of twenty-five with record March average production of 330000 Boe's per day from the total deep basin complex.
Speaker Change: Notable exploration successes were realized in the south deep basin.
Speaker Change: In the greater Williston Green area, our first belly River horizontal test it at 700 barrels per day of oil lots of 1% water cut down about a million a day of natural gas.
Speaker Change: And several new wells on pads in the down dip Glock plate.
Speaker Change: Where that inventory continues to expand and youll see that well performance unfold over the next few quarters.
Speaker Change: And I think that's it for the formal remarks, so we can move into Q&A.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, well now begin the question and answer session.
Speaker Change: Should you have a question. Please press the star followed by the number one on your Touchtone phone.
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Speaker Change: One moment. Please for your first question.
Speaker Change: Your first question is from Eric Lukowski from P. D. Cowen. Please go ahead.
Eric Lukowski: Good morning, Thanks for taking my question I guess the spirit of my question is related to capital allocation would you be able to talk about the benefits and drawbacks of spending capital on knees, and maybe future acquisitions relative to allocating our capital to organic growth.
Eric Lukowski: Oh sure Yeah, Thanks, Eric well, we're actually doing both so the north northeast B C. Montney development is underway. We spent 200 million on facilities and 24, there's $300 million in that Buildout allocated in 2025, which we're not going to cut.
Eric Lukowski: The first plant are in that build out comes on stream in the second half of 'twenty 'twenty six that's in Aitken. So we're well into that plan, which ultimately involves a four plants a series of regional pipelines and a whole liquids infrastructure build.
Eric Lukowski: Build out associated with the gas build out as well on acquisitions, there are vendor driven and so we're not out seeking anything but we've been tracking as you know what fits and what doesn't doesn't for years and over the past couple of years, a number of people will come.
Eric Lukowski: To us and it's right in the middle of where we're going to develop and we know we can grow the volumes and we know we can improve the efficiencies and dropped the costs on those assets and so we think it's quite prudent of us.
Eric Lukowski: To consolidate our head of.
Eric Lukowski: Our build out and be a much improved pricing, which I think we're all.
Eric Lukowski: Expecting to happen here over the next few years in Western Canada.
Eric Lukowski: Does that help.
Speaker Change: Yes, that's perfect.
Eric Lukowski: A quick follow up question.
Eric Lukowski: Sure. This is something that maybe I should already know, but can you remind me what the total incremental production from Gronberg expansion would be in the north Montney phase two extension would be.
Eric Lukowski: Sure in ground Birch the acquisition, we did actually changes the configuration of the plants a little bit we'd been eyeball in 400 million a day of growth it'll probably be a little bit more than that now and you'll see that in the release in the second half of the year when we update the plan.
Eric Lukowski: I mean buying saguaro, obviously, we bought the first half of squirrel back during Covid and.
Eric Lukowski: Head of developing Laprairie Conroy, we always wanted to have that at 100%. They finally decided they were ready to sell so that actually changes the timing on that because that's 50% it's sort of decided at the end of the the various series of projects. We have in the north Montney all of a sudden out of 100 person.
Eric Lukowski: And it's one of the lowest capital cost.
Eric Lukowski: Wedges of resource we have to develop up there so it probably moves up as well, but the total production volume from the north Montney growth will be between 100 and 150000 Boe's a day if you extend this out to a 2030.
Speaker Change: Perfect. Thanks, Mike I appreciate that.
Speaker Change: Yeah, you bet thanks for the questions.
Speaker Change: Your next question is from Eli are coming from.
Speaker Change: America. Please go ahead.
Eli: Hey, good morning, guys like Brian.
Speaker Change: For my first question, it's kind of a follow up on one of the previous questions I wanted to ask about that long term production outlook. It seems like the new messaging and suggest that the new plateau is around 850000 do we use by 2030, just trying to get a sense of what the bridge looks like from 2025 I E. How much can you grow with your current capacity.
Speaker Change: How much do new projects add and how much do new acquisitions that and when you look that far out do you see a need for more infrastructure be it pipeline egress on the crude oil side or more LNG nor to accommodate the growth plan that you've laid out.
Speaker Change: One of basin scale you know.
Speaker Change: Even filling the two Bcf a day of LNG, Canada Phase one is probably going to take our industry. You know just based on the pace of how quickly new volumes can be brought on stream into the infrastructure is probably going to take three years, plus you'll see all the elements of that full development.
Speaker Change: And you know, adding 2030 and 2031 and much element.
Speaker Change: Volumes are that are associated with groundbreaking and the north Montney phase two you'll see that hole.
Speaker Change: A.
Speaker Change: Series of projects and plants, when we released the full plan in 'twenty five and as I mentioned in the acquisitions actually changed that the cadence and the costs are and the volumes in in that whole plant.
Speaker Change: Yeah.
Speaker Change: Thanks, Mike for my second question I wanted to go back to M&A and look I don't know if that's what the market is responding to today, but this is how you built the business over the last 20 years with kind of a sustained commitment to picking up good assets and geologic setup that you do believe in it.
Speaker Change: Any case, the two acquisitions I think have strong industrial logic. It's on your lease line and an area that you plan to grow just can you kind of help us understand whether these are unique situations or if there are other opportunities to do similar deals under the same context or if M&A does take place it would be more of a step out from areas that youre currently.
Speaker Change: That you're currently consider core.
Speaker Change: Yeah no. Thanks for that question, we don't plan to step out from our existing core geography, and never have really for the full 17 years of thermal liens corporate existence. So we know what fits and what doesn't we learn as we drill more wells are we.
Speaker Change: How to make more money off these assets and as I mentioned almost all of these deals are vendor driven they come to US hard was a great example of the New Zealand a mud.
Speaker Change: Mothership, if you Blake approached us in the fall and said you know where we're ready to sell the Canadian portion of our operations, where we own the other out and that was very liquid rich tier one rock that just made sense to buy so similarly with square all I mean, we're obviously very friendly with them we've been jointly developing.
Speaker Change: Reprise at a pretty modest pace really for the past four years and then now we can accelerate that into what I think you know hopefully we're all right, but we all expect a much improved.
Speaker Change: Canadian natural gas pricing environment. So.
Speaker Change: As a responded.
Speaker Change: We responded to Aaron's question, we're doing both we're building the infrastructure and we're very excited about it and as these opportunities come along on the M&A front, if they makes sense and they can improve our free cash flow yield which is one of our key screening criteria.
Speaker Change: Then we'll act on them.
Speaker Change: Great. Thanks, Mike.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Your next question is from Jamie Kubik from CIBC. Please go ahead.
Jamie Kubik: Yeah, Good morning, and thanks for taking my question I've got a couple here, but just.
Just curious on the liquids volumes in Q1, these were a bit lower than the range that terminally provided with its Q4 can you just comment on some of the nuances in the quarter that drove that and how you expect these to recover.
Jamie Kubik: The coming quarters.
Jamie Kubik: Hey, Jamie its Jamie here here, we actually have so he has seen liquids continuing to push higher through the quarter. This quarter. It had a feature where we started you know basically the base we had communicated in an exit in 2024, and then volumes steadily ramp quickly hire into March and then to hit that 660 in April and in <unk>.
Jamie Kubik: We are doing well over 150000 barrels of liquids and really happy with where liquids are today what are the other things that accentuates mix at Terminalling as our storage assets. So we obviously sell gas out of storage in the winter and then injected in the summer and I think sometimes that catch those people a little bit off guard that I'll add some natural gas to to winter period.
Jamie Kubik: But from our perspective, and how we see the rest of the year, we see no deviation to our original thoughts on how liquids or trend and I think youre going to see great liquids rates through Q2 through Q4 and 2025.
Speaker Change: Okay. Thanks, and then maybe just circling back to the capital allocation question Slide six of your presentation too does show most of the free cash flow expected on strip for 2025 is largely spoken for through the base and base dividend and special can you just talk about how you're thinking about capital allocation for.
Speaker Change: For the balance of the year with respect to that thank you.
Speaker Change: Sure well the five year plan update that we released yesterday were consistent with our methodology. So we pick the strip on the 15th of the month prior to the release of the quarter that was a particularly bad stripped to use. So you know we're happy to report that if you ran it today.
Speaker Change: 25, and 26 free cash flow were both up a couple of hundred million dollars over more already so we got a little bit more of that capital.
Speaker Change: Allocate but you know as it stands right now our maintenance is about $1 9 billion a.
Speaker Change: Gross he is in the sort of six to 800 million. This year and then the balance is going to the base, which remember we increased the base and reduce the size of the special with our March release, and we will continue with that program through the balance of 2025 and then.
Speaker Change: You want that Guy is doing okay.
Speaker Change: Okay that helps Jamie Yeah, you bet and then last one for me just theres been obviously a lot of commentary on LNG projects in North America through road.
Speaker Change: News can you can you talk a little bit about your your part and Rockies LNG, how that project is progressing in the background and things things of that nature.
Speaker Change: Sure well the the leader of the project Western did secure a significant amount of capital to do the full engineering $150 million. So there proceeding with that they continue to seek landed deals.
Speaker Change: To put them in a position to F. D. A I mean, you'll have to check with them. When they really think that F. D is going to come where I. Thank all the participants on the supply side are expecting you know perhaps in the first half of 2026. So we're excited about that one there is the opportunity to make it.
Speaker Change: Larger are I'd say the credit quality of the producer group has steadily improve so there's multiple large producers lined up.
On the supply side, and we have more than enough supply and hopefully you know there's Canadian momentum.
Speaker Change: To start approving these projects because I think we're aligned on our thinking Jamie on just how important LNG as to Canada, because it's great for the economy of the entire country. It reduces emissions and the global atmosphere, and it's a great opportunity for improving indigenous prosperity.
Speaker Change: Okay. Thank you that's it for me I'll hand, it back.
Speaker Change: Your next question is from Josh Silverstein from UBS. Please go ahead.
Josh Silverstein: Yeah. Thanks.
Josh Silverstein: So an M&A question as well I was curious about the financing of the transaction.
Speaker Change: You should stop for this why stock versus cash given where the balance sheet. As you mentioned, Mike that you want to leave a strong balance sheet for further acquisition. So do you have appetite for a large acquisition here and like you also just mentioned if you read the current strip cash flows a couple of hundred million dollars higher so I'm just curious why.
Speaker Change: Why is your stock again for this you did for ground birds versus a cash transaction to further kind of leverage now the potential for rising natural gas prices.
Speaker Change: Yeah.
Speaker Change: Well both vendors Oh for these transactions wanted stock. So that's probably the simplest answer and yes, there may be other opportunities that arise.
Speaker Change: It you know it is a busy market out there obviously, it's got to fit and we talked about our screening criteria already. So we are preserving that pristine balance sheet for a potential other opportunities that might come along.
Speaker Change: Alright.
Speaker Change: And they won't be large sorry cause us debt saving it for a large.
Speaker Change: Our M O over the decades as we don't do anything extremely large I mean, the largest we do is sort of one to $1 3 billion and we're not looking at anything of that size right now either so just so you know and we don't do merger of equal style deals. That's just not what we want to do.
Speaker Change: Yeah, and then maybe just I guess a follow the financing question on that.
Speaker Change: You guys already have decades of inventory why not maybe sell some of the noncore stuff to finance this to further high grade the portfolio.
Speaker Change: We don't really have much that doesn't fit in the long term. So I mean, the deep basin producers about the same as the the BC Montney right now, but I mean, you know the M&A. We're doing right now is really ensuring we have a third decade of tier. One then you know.
Speaker Change: I do point to what's happening in North America, particularly south of the border.
Speaker Change: There's less tier one available than there used to be and we see the western Canadian sedimentary basin, becoming much more important for supplying the whole north American gas complex, including the Gulf coast in the U S and a growing hopefully.
Speaker Change: Gee industry on the Canadian West Coast, and so securing tier one a is really the name of the game right now for longevity and and profitability and we take a very long term look at Terminalling and the overall natural gas business. So it's hard to break out.
Speaker Change: N and sell it because it actually all fits in the long run when it didn't we did like if you recall after we acquired one of US that we quickly sold the duvernay. So if there ever is a struggling asset we were quick to get the position back to where we're going to be core and drilling it.
Speaker Change: Got it Okay and then my.
Speaker Change: My question was just on the long term outlook that you guys.
Speaker Change: <unk> put out there you know volumes are up 100000 Boe per day Youre spending drops 400.
Speaker Change: $25 million and yet the free cash flow outlook goes down.
Speaker Change: Is there anything that I know.
Speaker Change: Obviously like you know the strip prices is changing there but is there anything else that we should be thinking about in the forward that hat for it I looked at has.
Speaker Change: Lower free cash flow to it is there are some costs that go up at a certain time or anything like that that we should be thinking about thanks.
Speaker Change: No I mean, the main reason that free cash flow drops in the out years in the five year plans is.
Speaker Change: <unk> strip backwardation AR and what we also have important in that plan is as we execute the northeast B C infrastructure build out it will drop our op costs and just that wedge of sediment that we're developing in northeast B C. It is our lowest cost both capital.
Speaker Change: And operating and the most liquid rich and so you know all of <unk> operating metrics are going to improve and that sort of 27 through 29.
Speaker Change: Frame as this wedge of lower op cost production comes into the base and you know even at it'll be at least a 50 cent per BOE Opex reduction, we havent put that in the plan yet that's at least $150 million of free cash flow per year in the back half of the.
Speaker Change: Plan and if we make it larger the overall northeast B C development that operating cost reduction and the resulting free cash flow will realize increases as well the other thing that we fully burden the plan with their Josh is taxes.
Speaker Change: 2026 forward cash taxes or towards $400 million year, but of course in reality as we execute acquisitions on an annual basis here or there that often has a tax benefit and so this year's cash tax will be much lower than that.
Towards a $100 million, depending on the stripper running and so we don't forecast acquiring pools, but that is something that will probably result in additional cash on free cash flow in each and them as we're in it.
Speaker Change: Got it thanks, Jeremy Thanks, Brian.
Speaker Change: You bet.
Speaker Change: Your next question is from fair excuse me Bailey from autumn Graham. Please go ahead.
Speaker Change: Hi Fi from Ireland.
Speaker Change: Oh, Mike.
Speaker Change: What your thoughts.
Speaker Change: Oh sure sure them on.
Speaker Change: Long term natural gas prices and some of them will start some backwardation that looks like.
Speaker Change: All of the years.
Speaker Change: Nymex gas prices around 315 complied by somewhere in that range.
Speaker Change: Hmm.
Speaker Change: How do you view that kind of price are up on the contactless.
Speaker Change: Rising demand or the data centers LNG export terminals.
Speaker Change: Do you have any thoughts about that long term gas prices when something like selling them up.
Speaker Change: Okay.
Speaker Change: Sure well, we expect them to go up because we do agree with I think where you're going to find that there's a bit of a disconnect. There.
Speaker Change: That being said you know we will continue to ensure that our base business makes money.
Speaker Change: $1 50 to $1 75.
Speaker Change: M C L a and I think consistently that's been our messaging.
Speaker Change: Strips are improving quite rapidly actually even April which is surprising but it's put on 50 cents for 'twenty six and Jamie has it for 27 as well its coming up yeah, it's coming up so it's.
Speaker Change: It's starting to improve kind of right now and we think that's an advance of first volumes are showing up on coastal gas link.
Speaker Change: Like my Big picture, just thinking about what we've seen over the last three months are you seeing the LNG plants continue to announce F. E. We saw now the Woodside plant in Louisiana.
Speaker Change: Was actually a bit of a surprise to everyone. You've also seen production outlooks thin and a slightly lower oil that especially with the comments offered by some of our peers the United States. It looks as though associated gas production might be smaller than previously anticipated and yet the expectation for power LNG and <unk>.
Speaker Change: Industrial gas demand is as stable as ever and looks to be something that will markedly outpace some of the years. Prior we're gonna be in that call. It three to four sometimes 5 billion cubic feet per day of demand annually growth.
Speaker Change: That also has echoed here up here in Canada with LNG, Canada.
Speaker Change: And our own domestic demand story, so we do see a ton of demand coming into market and then all of a sudden a a much more reluctant supply dispatch curve in the United States on the associated gas side, but also on the dry gas side, they want ever more higher prices to grow their basins and.
Speaker Change: That's going to create margin expansion for us are terminally because as Mike mentioned, our supply cost under $2 here 50 those.
Speaker Change: They are stable and they're not going up and so if realized prices can navigate themselves higher on this F&B outlook that means more free cash flow for us.
Speaker Change: Oh great.
Speaker Change: All right.
Speaker Change: All right all right.
Speaker Change: Reading between.
Speaker Change: The lion's share of that 315 in your mind is probably too low as a longer term price.
Speaker Change: If you had to put a peg like it was like a number on what that price might be given the dynamics of where would you put it.
Speaker Change: Well I think many of you followed us for are all existing by you know we're pretty much we're always wrong on our price predictions I think quite consistently but we expect eagle next year.
Speaker Change: Particularly in the winter to be four to five Bucks how's that.
Speaker Change: Because it's almost there now with the ZIP comes in from a Buck 80 to a Buck 20, then you're there.
Speaker Change: Okay.
Speaker Change: Okay. Thanks.
Speaker Change: Yeah.
Speaker Change: Ladies and gentlemen, as a reminder, should you have any questions. Please press the star key followed by the number one.
Speaker Change: Your next question is from Peter Cook.
Speaker Change: From Tourmaline. Please go ahead.
Speaker Change: Mike I was just curious wondering any thoughts on the impact of the tariffs from the U S.
Speaker Change: And are you guys in a with all the political going on it's been sort of a bit of a mess.
Speaker Change: Just curious what of what impact that might have on gas you sell into the U S market. So on.
Speaker Change: Yeah, well, we don't Peter.
Speaker Change: I mean, there are tariffs on Canadian energy at the current time, so there's no impact there.
Speaker Change: Perhaps a little bit of cost inflation on steel Terminalling I in particular, we don't source very much of our tubular from the U S. It might be a modest impact on sand.
Speaker Change: Our fracking business, but nothing material at this point and you know I will reemphasize there are tariffs on energy, which makes nothing but sense given how intertwine the energy systems in the two countries are they really don't make sense and we should be working together to.
Speaker Change: To grow the North American energy complex.
Speaker Change: That's for sure anyway, hopefully hopefully.
Speaker Change: They got this whole thing of squared away at some point soon.
Speaker Change: Well friendly yeah, I wonder with yet.
Peter: Thanks Peter.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Ladies and gentlemen, as a reminder, should you have any questions. Please press the star key followed by the number one goal.
Speaker Change: A woman for further questions.
There are no further questions at this time. Please proceed with closing remarks.
Speaker Change: Thanks, everybody for attending.
Speaker Change: Look forward to chatting with you in the next quarter.
Speaker Change: Yeah.
Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.