Q3 2025 Tourmaline Oil Corp Earnings Call

Good morning, ladies and gentlemen, and welcome to the turbine. Q3 2025 results conference call at this time. All lines are in listen-only mode.

Following the presentation, we will conduct a question and answer session. If at any time during this, call, you require immediate assistance, please press star zero for the operator.

This call is being recorded on Thursday, November 6th, 20.

25, I would now like to turn the conference over to Scott, Kirker, please, go ahead.

Thank you, operator. And welcome everyone to our discussion of termine Financial and operating results as at September 3020 2025 and for the 3, and 9 months ended September 30th 2025 and 2024

My name is Scott Kirk, and I'm the chief legal officer here at Germany.

Before we get started, I refer you to the advisories on forward-looking statements contained in the news release, as well as the advisories contained in the Term Sheet, Annual Information Form, and our MD&A available on SEDAR and on our website.

I also draw your attention to the material factors and assumptions in those advisories

I'm here with Mike Rose. Termines President Chief Executive Officer, Brian Robinson, our Chief Financial Officer and Jamie heard from Lees vice president of capital markets.

On the Q3 25. Average production of

634750 views per day was at the high end of our anticipated. Guidance range of 620 to 625 to 635,000 views per day, despite storage injections and shutting during the quarter.

Uh we're pleased to announce that we have entered into a long-term natural gas storage agreement with Alta gas at their Dimmesdale storage facility. And we've used the addition of another large storage position as a strategic opportunity, to enhance financial performance and strength and operational flexibility in volatile natural, gas price environments, like we just went through this past summer. Uh, We've also entered into 2 short term and 1 long-term LNG, gas supply contracts, which complement our existing extensive portfolio looking specifically at production. Fourth quarter production is expected to average between 655 and 665,000 bews per day with a 25 exit volume of 680,000 to 700,000 Bes per day.

Uh, our third quarter liquids production of a little over 147,000 barrels per day, was up 4%, uh quarter over quarter and our 26 average production guidance of 690,000 to 710,000 bees per day remains unchanged. As does the current multi-year EP plan which is forecast to yield 30% high margin production growth to 850,000 bees per day by 2031.

Third quarter, 2025 cash, flow with 720 million and third quarter 25. Erne were 190 million.

Our third quarter realizations were impacted by unusually large natural gas, export maintenance outages.

Uh both the Eastgate and the Westgate, as a result of these outages acho and Station, 2, pricing average, 64 cents, and 48, cents per mcf, respectively during the quarter. And while we curtail gas supply during the weakest local price days, the sustained low, local prices. Were the primary reason for lower than our expected, third quarter cash flow. The curtailment on export pipelines, reduced our volumes accessing Downstream markets as well and that includes our premium markets, you know, such as the Gulf Coast and the Western us, uh, by approximately 155 million cubic feet per day. So instead, these volumes were sold into Echo and Station 2, spot prices and that

Meaningfully impacted our September natural, gas revenue on a positive, note, the force measure on the Great Lakes pipeline ended in early October. And Eastgate exports are at normal levels and the Westgate M maintenance and during this month of November,

Looking ahead with the benefit of lmg, Canada's demand, creating additional capacity on local egress pipelines. Second and third quarter 2026. Eco pricing is currently averaging 3 dollars in mcfar compared to a dollar 18 for the same uh, period in 2025

And we think additional upside should be created, uh, if a basis tightens further, and that is what we anticipate happening.

Uh, third quarter 2025, um, EP expenditures were 825 million the full year. EP capital budget remains, unchanged at 2.6 to 2.85 billion.

We closed a 71.7 million, uh, dollar transaction with topaz energy Corp. Uh, whereby topaz purchased a, a Gore on the recently acquired saguero and Strathcona, ground Birch, Northeast BC montney development lands. And in addition on October 28th, uh, we completed a secondary offering of topaz, common chairs for gross proceeds of approximately 230 million.

Uh, moving to marketing. Um, lots of activity. As we continue to vertically integrate our gas business and maximize future realized prices.

Um, we have an average of 1.2 BCF per day of nat gas. Heads for the remainder of 2025, at a weighted average fixed price of 433 per mcf Canadian. This includes 57 million cubic feet per day hedged at a weighted average price of $20.13 per mcf Canadian and international markets and 109 million cubic feet per day at a weighted average price of 686 per mcf in the western us markets.

And as mentioned that negatively impacted cash flow, however, prices are improving thus far in the fourth quarter and the 2026 strip price Outlook continues to migrate upwards.

Uh, we are pleased to enter into that Dimmesdale, storage deal. Uh, we'll have access to 6 BCF of storage capacity, starting in April, uh, for a 10-year term with the ability to increase to 10 BCF, uh, in the event that, uh, all the gas takes FID on Phase 2. And, you know, we view the addition of another large storage position as a really strategic opportunity, uh, to enhance financial performance. Um, and provide operational flexibility, uh, with these, uh, very volatile prices on the lmg front, we've entered into several new Supply, contracts as detailed in the release and I I won't go through them, but they're there for you to read.

Uh, in aggregate. Uh, we'll have an average of 213,000. Mm BTUs exposed to International pricing in 26. That'll grow to 250,000 by Exit 27 and 330,000, uh, by exit 28. So a very attractive progression.

Turning to the Capitol budget and the EP plan. Uh, as mentioned spending in the quarter was 825.5 Million. As we executed capital projects, deferred from Q2 along with the original uh Q3 budgeted items. Really to prepare for incremental production volumes in advance of higher anticipated, winter, gas prices, uh which are materializing our full year. Uh EP spending remains unchanged for 20205 and 2026. The 26, EP Capital program uh is 2.9 billion. Uh and that is unchanged from the release on July 29th of 2025.

Uh utilizing current strip pricing uh our EP plan. Anticipates 26, cash flow of approximately 4 billion and free cash flow of approximately 0.9 billion. Uh, the strip pricing includes the 26 acre basis of a $1.66 per mcf and we anticipate that basis tightening towards a dollar, uh, us as the Basin Dynamics adjust for LNG, Canada's demand. And for every, uh, 10 cents per mcf us that ACO basis Titans, uh, are 26, cash flow and free cash. Flow would increase, uh, by approximately 50 million and should natural gas price prices weaken in 2026. Uh, we certainly have the option to reduce Capital spending as

Appropriate to Optum to optimize free cash flow and our plan for shareholder returns. Approximately $200 million to $250 million of currently planned capital spending could be deferred in such a low-price scenario, and that would really have only a minor impact on 2026 production guidance.

On our cost reduction, uh focus and margin Improvement initiatives. Uh the ongoing Northeast PC development project and infrastructure build out, uh will provide both significant growth and margin expansion by improving all of our operating metrics.

Um Q3 2025 uh corporate Opex of 480 per Boe was down. 34 cents a bee from the first half of this year. So, approximately a 7% Improvement and early components of the Northeast PC, build out have been completed and that has initiated the cost reduction progression and is contributing to the reduction uh, in off effects in the third quarter. And this process will uh, really accelerate going forward.

Uh, the Northeast PC development project is anticipated to systematically reduce combined corporate Opex, and transportation costs by at least a dollar per Boe. Uh, as it is put in place over the next 6 years and we see the opportunity for Meaningful progress on this Target in 2026 and all subsequent years. And uh, there is potential.

To increase the overall total long-term Target, uh, moving forward.

Uh, we have a comprehensive corporate, focus on reducing all aspects of the cost equation, as well as our per well EP Capital costs in in 2026. So we're targeting a, a 5% Opex reduction in the Deep Basin, uh, next year and targeting a further, 5% reduction in DNC costs over currently budgeted levels. Uh, and these reductions are not captured in the multi-year, EP plan. Yeah. Uh, because we'll make sure we realize them first

Had a very strong, uh, cost structure and uh, we plan to make it even stronger. Uh, going forward, uh we have elected to pursue the potential sale of our Peace River, High light oil and gas complex. So the charity Lake play which we actually pioneered back in dub, Renee oil, Corp days. Uh, if completed this sale would further lower corporate Opex, uh, and provide proceeds, that could be reinvested into our higher margin, uh, BC growth assets or emerging EP opportunities that, uh, We've assembled in the, the Deep basin

Uh, so this initiative is just a subset of the significant. Internal value, creation opportunities, that exist within the company's overall portfolio.

Specifically on EMP in the quarter. Uh, we drilled 68 Wells. Uh, completed 88 Wells and entered, um, the fourth quarter, uh, with 38 Ducks, uh, the majority of which are expected to be completed in the near term, uh should gas prices continue to improve.

Uh, we were, uh, very pleased, our 25 Northeast BC montney ip90 well performance today is up 26% over the 5-year average performance. As we drill steadily longer, horizontal, wells in that complex and the percentage of plug and per style. Uh stimulations has been increased and despite these more expensive completions our 2025 Monty DNC costs are trending down

On a per lateral foot basis.

Our new pool new Zone, expiration success continues across all complexes. Uh and we have 12 to 15 new pool or follow-up delineation Wells. Currently in the 4 2425 and 2026 drilling program. So lots of exciting opportunities on that front

Uh, on the dividend. Uh, our board is declared a special dividend of 25 cents per share. That'll be payable on November 25th, uh, to shareholders of record on November 14th, 2025 and the company intends to declare the quarterly based dividend of 50 cents per share in December. Um, we commence pain special dividends in September of 2021 and that special dividend has varied between 35 cents per share, uh, and 225 per share, uh, until this quarter where it's 25 cents. And while the 26th free cash flow Outlook continues to improve, we will continue to find the balance between the planned EP growth program and the size and Cadence, uh, of the special dividend. And uh, I think that's enough for formal remarks and there's 4 of us here. Um, ready to answer questions, you may have

Thank you.

Ladies and gentlemen, we will now begin the question and answer session.

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1 moment, please for your first question.

Your first question is from kalle, aqumin from Bank of America. Please go ahead.

Hey, good morning guys. Hi Mike. I want to start by asking on the Peace River sale. I wonder if you can give us any clues as to how you're thinking about the value of that asset and I guess fundamentally if you don't see the price that you want, would you consider retaining the asset? And the part B to the question is um this is essentially a fully developed position that comes with mine. Gas processing, Etc. Is there any chance that you would hold on to certain assets?

Uh,

I'll kind of uh, thanks Cole. Um,

For the Charlie Lake, uh, and it's, uh, worked at extremely well. So, uh, you know, why are we selling it? Uh, well, the reality is that the, the returns from investing in our 2, very large gas complexes kind of always outstrip, uh, the returns from growing, uh, the Pea River High asset in a, a material way. Uh, and so it's been essentially on maintenance capital for 4 to 5 years. Uh, and we think, you know, we have a whole gamut of opportunities, uh, in both gas complexes, uh, and we can use the proceeds, um, to kind of more profitably grow with lower offex in those 2, gas complexes. So that's kind of the rationale behind it.

That's great. Mike, I appreciate that. And and this for the second question in the release you called out a handful of what I'll call cash, management items, and given the recent price environment, break out gas. I think that's prudent, although things seem to be on the men today. If we're looking at a go prices, um, we just talked about the Peace River sale, but there's also a toe pads equity and there's capex referrals that you have in your back pocket. I'll leave the toe pads question for someone else, but I'm wondering how you would characterize the capex deferral of 200 to 250 million dollars, is that drilling related or is that infrastructure related?

It would be primarily drilling related if we exercised on that in a a weaker price environment than we're we're in today. Um, we would carry on with the BC infra build up, uh, and I think you can see the rationale for that. That if prices are significantly weaker, you know, we'd hold the volumes back. And so that would mean the DNC budget would would be reduced.

Great, I appreciate it. Thank you, Mike.

Thank you.

Your next question is from Patrick oror from ATB Capital Management. Sorry ATB Capital Market please go ahead.

Hey, good morning guys. Um, maybe just a a follow on with respect to the 200 to 250 million dollars in potential. Uh, reductions here just wondering, you know, what sort of the time frame for those decision points, um, rolling out into 2026. Uh, and then I, is there any sort of quantification on 2728 Etc, from a volume perspective. Um, or with this, uh, you know, my thought is, um, being a company with such a large Supply and inventory. Um,

Really well-defined growth on the back of that inventory. Would at any point you consider sort of gearing back on exploration in the near term to preserve capital?

Uh, we could do that, although uh, the expiration program is generated opportunities, that you know, should we proceed with the sale of the Peace River, High complex, uh, that over 2 or 3 years we think would fully replace the volumes from that, uh, complex? Um, and as far as timing on, uh, you know, when we make those decisions, I think we see if the Peace River High sells first because obviously there's a a maintenance Capital, uh, but budget item associated with that complex in the current 26 budget. So we'd be adjusting the the 26 budget uh at that point. And uh, you know, by year end I think we'll have a pretty good look at, uh, where the 26 strip is going to be where basis gets to uh, and yeah, I think it was referenced already. That Echo is uh, starting to repair itself the West Gates back open today. But there is another restriction, uh, in a week or so. And then it's free and clear. So we should be switching to, uh, or flip.

To withdrawals from Storage, you know, and then that will drive price and receipts were a little higher in the Basin over the past week and a good portion of that was due to gas backed up because the storms on the west coast and uh LNG Canada was not taking the same volumes West that they have been, which I think has gotten up as high as 800.

Is that right? Yep. Yeah.

Okay, great, thanks for that color. And then, um, just thinking about sort of the interplay between the balance sheet and potential for special dividends. I know, um, I don't want to call it caution but obviously, you know, it's been a sweep of free cash flow. Um, that was a little higher. You've got the proceeds coming in, uh, from this topaz share sale. So that will help. But how do you, how do you think about, um, above and beyond the base dividend free cash flow allocation between uh, that special dividend and maybe, you know, a little bit more uh debt reduction in in the current environment.

We said it reasonably clearly in in the press release, we do not intend to use the balance sheet to fund. Special dividends. I think, having 2 quarters of the lowest Echo prices in 30 years is a rare circumstance. And, uh, for Q3, uh, paying the special using the balance sheet was 1 of those rare circumstances, but we will continue to look at uh, the Capital Growth Capital. Uh, and the special dividend uh um potential uh and find that balance.

Okay, thank you very much.

Sure. Next question is from Sam. Burwell from Jeffrey's please. Go ahead.

Hey, good morning guys. Um, it's another question on the uh, capex flexibility. Just curious. Like, what? What drives that for decision. What's how do you frame it? Is it based on not wanting to outspend after paying the base dividend? And then like what sort of time frame in terms of like viewing the strip or or your view on gas prices? Are we looking at is this like months some sort of medium-term time Horizon, just just curious about how you're you're thinking about um potentially uh flexing down the capex.

Yeah. I mean the the main control of course is the gas price uh and then everything flows from that. Yeah. Like this winter. We're already seeing cash gas prices recover, we're seeing very strong November December January. We think there's potential for that to get stronger still. Um, I think all operators are reacting to that. We wouldn't expect any curtail volume today. So you're kind of seeing fully loaded receipts and it's not scary. Your your growth is very modest and we think that'll allow this winter strip to improve

Terminally as a natural recalibration Every Spring and break up. So as we come out of this winter and look ahead to what summer and winter following strip, looks like in the months of March, April May, that's a very natural time to calibrate the intensity of drilling for the back half of the year. And I think that would be a good time for us to also calibrate on free cash and make sure we're still delivering what we've always, you know, planned, which is that 5% growth in in excess of a billion dollars, a year of free cash flow,

Okay. Understood. Um, and then sort of tying into that a little bit on the Canadian gas macro, um, like supply has come up a bit. Granted, let's shut in coming back and it's sort of typical seasonality on the prices come up. Um, but do you think that there's more room for a supply to come on? And just asking this, because we are going to get more demand from train 1, pulling more consistently and then train to pulling another BCF a day next year. So just curious about your view on Supply demand balance and how much Supply um Can realistically come up?

On to fill the incremental demand from uh LG Canada to train 2.

Yeah, we regularly refresh this work because I was saying, November looks relatively flat to last year, and we don't believe we're curtail much at all as a basin today. Uh, our expectation is next year, grows well shy of a billion cubic feet a day and an animal. We're anabasis you know our number would be around 6.7 exit of our exit growth. We think actually might even be shy of that around 0.5 BCF a day. And to your point LNG, Canada will go from not doing anything in the first half of this year to doing close to and up to 2 billion cubic feet a day. We think as early as the first quarter of 2026, so that's a very meaningful demand change, and the Basin will need to react to that with Lex, with less exports to the United States and the mechanism to achieve those less exports will be a tighter basis. And we think that will transpire over the next several months. We think there's other Tailwind at play. Uh, we believe the Biden expansion on the northern border is a, is a benefit to the Canadian export picture. It tightens up our Basin ever still, and we also think there's going to likely be, um, you know, power.

Consumption and power announcements over the next 12 months that helped spur long-term demand thinking and tighten up that 272829 basis picture as well. From our perspective, everything we are looking to see for this winter and the year ahead is transpiring. We are not seeing a wall of gas. Instead, we see stronger gas cash prices. We are seeing LNG Canada ramp very well.

And we continue to see lots of green shoots in local demand, whether it be power or rescom, and I think it will take Canada and Alberta specifically getting a little cooler here in the next 3 weeks to see what the drawers. Um, ultimately look like on a year-over-year basis and I think when we look at draws per week, uh in December and compare them, to what we were drawing last year. It could be almost a double. And I think that starts to wake the market up

Yeah. And the last time the Basin had a demand increment like LNG, Canada adds the 2 BS a day. Uh what startup of Alliance and I think that's what the differential for 3 years. That's right. Yeah yeah.

Really helpful color, guys. Appreciate it.

Your next question is from Aaron Bosque from TD Cowen, please go ahead.

Thanks, good morning guys, I have another question on the Peace River High. If you do ultimately sell it, should we expect you to use the proceeds to add Capital to the multi-year plan? Or is the plan to Simply redirect some of that maintenance Capital? That was being spent on the Charlie Lake into the modern me and the Deep facing

Yeah, more the latter Aaron, uh, at at this point.

I think in order for us to add capital in the VP plan, we would want to see strong commodity prices provide that signal. So at this point it's going to deliver the balance sheet and it's another source of funding for this infrastructure growth. That's going to start to add that incremental cash flow and precash flow that I frankly we're going to see we saw some of it this quarter we're going to see more of it in 26 and then as they can comes on and ground, Birch comes on over the years ahead. You're going to see that structural cash flow and free cash flow starts. So it's funding that build out.

Perfect. Thanks.

Yeah, thank you.

Your next question is from Jamie cubic from CIBC please. Go ahead.

Yeah, good morning. Thanks Aaron. Sort of asked the question. I was going to ask her, but I I'll ask a little bit of a different 1. Can you, can you just talk about how you're thinking about debt levels in the business? Is there a Target in mind that you're driving to? Is it a function of forward cash flow uh just a bit more color on your thought process around. Uh this would be great. Thank you.

Uh, well, I think we hit our our kind of peak debt metric right now, at 0.5 to 0, 6 times at the bottom of the cycle. So that will drive down to 0.2 to 0.3. Uh, as we move towards the, we think a, a more sustainable long-term price cycle. So we're going to keep that pristine, balance sheet, Focus that we've always had Jamie.

Okay. And can I ask, is the peak debt level where you're at sort of right now? Is that a bit of a driver on the Peace River High disposition, or is it more a function of just capital allocation between your various assets? Thanks.

It, uh, for sure the latter it's uh, Capital allocation. I mean, we've been uh, you know, thinking about selling the Peace River, High complex for, for 2 or 3 years to be honest. Simply because it wasn't getting rewarded with growth Capital because we had, you know, more attractive, uh, projects in the 2 gas complexes. And so it feels like, uh, this is probably the right time and there's considerable interest in it and and worth flagging. Jamie

The interest is also what helps spur the process. You know, there is interested parties that are looking to enter this Basin and they have unsolicitedly, you know, giving us, uh, indications of value or interest in acquiring the assets. And so, now running the process allows all of them to come to the table with their best number, at the same time.

Okay, thank you. That's all for me.

Thanks.

Your next question is from Joseph shakar from shakar Energy Research. Please go ahead.

Good morning everyone. And thanks for taking my questions. Uh, 2 of them first thing. Um, you guys have a great track record of making Acquisitions in the past. When you look at your 2 core areas versus the m&a market, we just saw, you know, the New Vista deal. Um do you see m&a as as part of the growth opportunity or is your internal opportunities just that much better?

Yeah, we went through um like 5 years of putting the primarily uh the BC montney gas complex um together through our expanding it, through a whole series of Acquisitions from coid on uh, and

We have put in place now the BC buildout uh, infrastructure for the next 5 or 6 years. Now we're going to go realize all the upside uh, and all the value from those, you know, really well-timed Acquisitions. So um, we'll always look at perhaps small asset tuck-ins but uh right now it's uh the focus is much more on organic growth from the uh extensive inventories. We have really in bulk gas complexes

Super. Uh, second question. Uh, the Topaz question, you know, did a big sell down here? Um, do you see, um, you know, using more, um, you know, sales and then get below 10%, which then allows you to, to move, uh, without market, um, you know, fluctuations.

But we're super excited about that. The whole Topaz story has unfolded and grown, and I think it's just been um,

Great all the way along. So we're happy to be shareholders.

Super, okay. Thanks very much that answers my questions.

Your next question is from fa, Li from Autumn Brown. Please go ahead.

Thanks. It's F here. Um, hi Mike. You just uh, touched on a little earlier about um I guess Growing Power demand. Um this obviously some bullish projections for gas demand to meet, you know,

Growing electric demand from data centers or to feel some intelligence. And I'm just wondering, you know how this, you know, longer term basis could maybe possibly affect your strategy for marketing gas. And if you've had any considerations specific steps, you could take to capitalize on these opportunities. Um, for example, do you think you'll ever have like direct gas, supply agreements with data center Builders? Or I'm just wondering how you're thinking about that. Thanks.

Yeah. Uh we're evaluating uh that opportunity by um and you know we would look at it as just another sleeve of our overall gas diversification. Um but you know we do have lots of offer and you have many plant sites, we have water, we have power redundancy, we're close to 5 or we're close to the grid. We can provide the ccus solution, although we have very low CI gas, uh, to begin.

And so, yeah, we're assessing whether that's an opportunity to further diversify our already very diversified marketing portfolio.

Okay.

You're looking at that and I'm just wondering on the other side. Have you been approached from data center Builders or people saying you know, looking at the advantages that you can offer and say maybe working with them? Is that kind of have we gotten to that level? Or it's just kind of just to preliminary at this point.

Yep, there's been lots of conversations, I would say early in stage, where people are trying to understand how this is all going to work. Um, you know, 1 of the first things that people are trying to understand first was what, the ASO allocation would be and who would be a recipient of the ASO allocation. So that happened. And, you know, we would be the first to cheer on projects like green light because that'll help consume gas and Basin. And the reality is we can build a lot of these, uh, 1 gigawatt. On a high efficient power plant will only consume roughly, 150 million cubic feet a day. Uh, so we think you could do 10 in short order and, and you'd still find the Basin, um, you know, in balance, and we'd be able to answer that call. And so, as operators, understood how much us allocation they might get. Now we're starting to move to that kind of phase 2, where to bring your own power, effort and operators are looking to add generation to their projects, um, and then they need gas supply for that generation. So we would fit naturally into all those conversations we're having them. As Mike was saying, 1 of the areas, I think we were probably most interested in is those co-location opportunities.

Unities cuz it allows us to offer more than 1 service. And when you offer multiple services to a counterparty, you can enjoy that business. And so we we have great sites across our asset base, that many of them actually are very, very suitable for this kind of activity. Um, and I think over the next 12 months, we we should see all sorts of different data center announcements, some of, which would be in the Heartland, and we connect ASO. Um, and some of which will be be closer to the resource and, uh, have a behind fence strategy. And I think we're working hard on making sure we're positioned, well, uh, to participate in those that are attractive to us,

Okay, that's great. Excellent color there. Thank you.

Thanks. Bye.

Your next question is from Neil Mehta from Goldman Sachs. Please go ahead.

Yeah, thank thanks for all the color and and talking through 2026 as well. And, you know, as we think about 26, maybe you can talk about, um, what cyclical versus structural cost. Deflation. Uh, we continue to be in a relatively favorable oil services environment for the INTP uh, entps. And so just your C, curious, if you're able to capture some of that cyclical, deflation as opposed to maybe uh uh some of the structural benefits as well. So just the cost environment going into um going into 26.

Yeah, it it is. You're right. Uh, Neil. It is a little bit more favorable on the, the service cost side and, and DNC costs, uh, through this winter. And I think we kind of eyeballed 5% reduction in the press release from where we were mid 2025. Um, we're most excited about the, uh, operating cost reductions that we've started to achieve already, and their structural and, and repeatable, and they will accelerate over the next couple years, and they marry up well to base dividend increases.

A little bit about uh, the LNG ramp in western Canada, but maybe you could spend a little bit more time, talking about the shell ramp specifically, and how you guys are thinking about that and as the driver that could potentially tighten acho because the counter to that is, there's just seems to be a lot of gas behind behind pipe and so does, do you actually get the price response at with the the LNG, pull?

Do you think we will? Um, uh, I think, uh, Jamie outline that we really don't think there is a lot of gas behind pipe. Uh, right now, we think we're seeing, you know, pretty much everything, uh, that's available, uh, on stream, uh, at this point. Um,

We expect another VCF plus of uh intra Basin demand. When we get cool whether we're not cold at all yet here. But that is coming in the second half November you've got you know another 1.2 V's yet to come from uh LNG Canada when they get uh uh Phase 1 and both trains fully on stream. And I think, you know, we're eyeballing q1 of 20206 for that and you you still have although as I mentioned, you know, for a few days here, the westgate's fully open like that's an extra 550 million a day. That's still being backed into the Basin. That's going to go away when the maintenance is done at the end of uh, November. Um so you know in aggregate, you're well,

For 2vc a day flip. Uh, and that's why Jamie was referencing. It'll be very instructive to see what the actual drawers are, uh, from our storage during December because the we think they're going to really drive a a basis tightening. Once people figure out what's really happening and you know as far as refilling from uh the supply side uh by our gas industry, kind of the best, we seem to be able to deliver on an annual basis is that 6 to 7 BC firm. So you know it's going to be close to 3 years, to replace that sink and a lot of that relates to, you know, getting onto the system and, and basing Hydraulics, and getting meter stations and the long cues that are, uh, there already before you can bring new gas on the system. You want to bring gas on the system today or in 2026. You had to be organizing your firm service 4 years ago.

Yeah, great color, guys.

Ladies and gentlemen, as a reminder, should you have any questions, please press the star key followed by the number 1?

It will pause for further questions.

There are no further questions at this time, please proceed with closing remarks.

Thank you, everybody. We'll talk to you next quarter.

Thank you.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you, please disconnect your lines.