Q2 2019 Earnings Call
At this time I would like to welcome everyone to the silver Bell resources second quarter 2019 earnings Conference call.
All lines have been placed on mute to prevent any background noise.
After the speakers remarks, there will be a question and answer session.
If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad.
If he would like to withdraw your question press the pound key. Thank you I would now like to turn the conference over to Mr., Jeff Magic.
Thank you Amy and good morning, everyone.
Thank you very much for joining us for our second quarter 2019 conference call.
With me on the call today are Sean longer Chen our CEO .
Steve Adam our COO and Gleeson van Riet our CFO .
We posted a new corporate presentation onto our website and will occasionally refer to during this call.
We encourage investors to review it.
Please note that we may make references to certain non-GAAP financial measures, which are reconciled to the closest GAAP measure in the earnings press release.
Our discussion today will include forward looking statements, which are subject to risks and uncertainties many of which are beyond our control.
These risks and uncertainties are described more fully in our documents on file with the FTC.
Which are also available on the silver SaaS website.
And with that I will turn the call over to show.
Thank you, Jeff and thank you everyone for joining our call. This morning.
So we're both second quarter results released yesterday, highlighting highlighted our execution on our development program.
Opportunistic investments and further improvements to our operations as we better position the company across multiple fronts.
Our key objectives on the path to sustainable free cash flow are growing our liquids production increasing operational efficiencies.
In expanding the portfolio balance between oil and gas inventory.
This will give us a unique optionality to quickly ship near term development based upon prevailing commodity prices.
We expect to achieve these goals, while also protecting the strength of our balance sheet.
Our development program in the second quarter delivered 56% growth in oil production.
And 32% growth in NGL compared to the first quarter.
We also compared favorably to our cost guidance.
Even as liquids have become a higher mix of our total production.
Our be across the board for the second quarter speaks to the quality of our asset portfolio and our highly talented team.
I'm very proud of our accomplishments to date.
As announced yesterday.
In which Steve will go over in more detail.
We maintained our 2019 capital budget range in mid point of our production guidance, while increasing our oil production guidance and lowering our ela we costs.
Overall, our capital program supports a 25% growth in total production.
The 85% increase in liquids production.
And a 17% reduction in capital spending year over year.
During the quarter, our Lasalle condensate and Macmillan oil areas generated some of our best wells to date.
And we expect continued strong performance from these areas going forward.
Additionally, in our web county gas area.
We made some opportunistic additions to our acreage.
Including 12 high return locations through a farm in agreement directly adjacent to our Baskin property.
As Gleason will highlight our adjusted EBITDA of $58.4 million for the quarter Revpas represents an 87% increase compared to a year ago.
On a per unit basis, our adjusted EBITDA continues to benefit from our low cost structure and focus on liquids development.
Our second quarter adjusted EBITDA of $2.73 per Mcf, He was a 27% increase compared to a year ago.
Even in the face of lower realized prices.
Looking across the NP sector investors are focused on free cash flow and capital efficiency.
For silver, though this complements our strategy of growing let's liquids production and adding inventory locations and attractive full cycle returns.
Despite gas and NGL price volatility of late.
We still see a path to positive free cash flow for the fourth quarter.
However, we're not focused on nearsighted goals.
Instead, we are building a scalable best in class operational platform with deep in basin technical expertise.
Admits declining sector valuations are favorable balance sheet low cost structure and repeatable execution.
Presents us with a compelling path towards becoming a larger more efficient and more profitable Eagle Ford Basin leader.
Specifically in regards to M&A deal flow is active within the basin and we are currently evaluating the timing of our next acquisition.
The number of deals on the market combined with the harsh reality for Sun and the synergistic potential for others.
We believe they Andy market will present opportunities for us to acquire quality assets at favorable valuations.
Meanwhile, we are uniquely positioned to avoid chasing high cost growth.
Instead, focusing our efforts on successful organic development in complementary bolt on inventory additions.
Finally, we continue to benefit from strong basis pricing in the Eagle Ford and our geographically advantaged position near the Gulf Coast in international export markets.
My focusing on two key variables within our control.
Liquids production growth in greater operational efficiencies.
We remain on track to achieve our stated objectives for 2019.
And with that I will hand, the call over to Steve.
Thank you Sean.
Moving onto our operational results.
We have made strides significant strides toward our goal of increasing liquids production in both a timely and cost effective manner.
Second quarter production of 235 Mmcf per day came in above the high end of our guidance.
Representing nearly 47% growth compared to a year ago.
Our liquids production increased 43% from the first quarter.
And 2019 production guidance reflects a higher mix of liquids and implies more than an 80% year over year growth in liquids production.
We continue to optimize our drilling and completion designs for every well we develop.
The diversified commodity mix within our Eagle Ford position is a unique advantage, but requires hands on experience and an in depth technical understanding of the underlying geology.
The 30 plus years of operational experience and Silver Bowl has in the Eagle Ford continues to be an important differentiator for us against our peers.
In the second quarter, the company realized 100% hybrid design and locally sourced sand for all wells completed during the period.
Overall due to pad drilling and continued operational efficiencies, we achieved an 18% increase in completion stages per day.
And a 14% reduction in average cost per stage compared to the first quarter.
The second quarter represented an 80% improvement in stages per day compared to the full year 2018 average.
Furthermore, the company ran an average of 1.4 frac spreads for the quarter and reduce cycle times by approximately seven days compared to the prior quarter.
Customized completion intensity has averaged approximately 2500 pounds of proppant.
And 37 barrels of fluid per lateral foot.
In total we drilled six net wells completed 12 net wells.
And brought 15 net wells online during the quarter.
In our web County gas area, we completed one well during the quarter, which was completed in less than five days, an average eight stages per day for a single well operation.
Well has been online for about two months and continues to produce over 10 Mmcf per day.
While it is early in the life of this well performance. Thus far is in line with expectations.
In our Lasalle condensate area, we drilled each of three wells under 10 days based on majored averages from spud to total depth.
We completed seven net wells consisting of a briggs three well pad and an Evans four well pad.
The three Briggs wells were completed in 10 days at an average of 10 stages per day.
Initial IP from this pad was approximately 2900 Boe per day.
With a 73% liquids mix.
Additionally, we completed the Evans four well pad in just 16 days at an average of nine stages per day.
The IP 30 from this Evans pad was approximately 3300 Boe per day with a 51% liquids mix.
Finally late in the quarter, we brought online a three well Denali pad, which had an IP 30 of 3500 Boe per day with a 60% liquids mix.
All three wells continue to perform as expected.
The strong results from our Lasalle condensate area are the primary driver of our liquids growth strategy and we expect similar results from this area moving forward.
In our southern Eagle Ford gas area, we completed a two well bracken pad.
And both of these three string wells were brought online in late April slightly under budget.
The IP 30 for this pad was 19 Mmcf per day.
In our Macmall on oil area, where we have been deploying more capital.
We brought a haze two well pad online early in the second quarter with an IP 30 of over 2500 Boe per day, and an 85% liquids mix.
As mentioned in our previous update each wells lateral length exceeded 11000 feet with one being a silver bowl record lateral of 11400 feet.
These two wells continue to perform in line with the Macmall in oil area type curve.
We are excited about the results in this area and are preparing for a new generation infill development of this legacy liquids rich acreage.
Additionally, we have been successful in identifying new inventory locations at attractive economics, such as the 1000 net acreage position. We recently added directly offsetting our baskin property.
This will allow us to drill and complete two six well pads utilizing 10000 foot laterals in both the upper and lower Eagle Ford benches.
We expect high rates of production from the first of these pads towards the end of the year.
This leaves us with an additional six well pad, which we plan to develop in 2020.
As Sean mentioned, we are maintaining our 2019 capital budget range of $250 million to $260 million.
We plan to continue running one rig through the remainder of the year.
We expect to drill 26 to 27 net wells and complete.
30 to 31 net wells in 2019 with 19 net wells or the majority of our completion activity having occurred in the first half of the year.
Over the past 18 months, we have added 36 wells to our inventory to bolt on acreage acquisition.
Which is about the same cadence as our annualized drilling program.
Additionally, we see a pipeline in place to continue adding inventory at favorable acquisition costs over the near term.
With that I'll hand, it over to Gleeson.
Thanks, Steve.
In my comments this morning.
I'll highlight our second quarter financial results as well as our hedging program guidance and capital structure.
Second quarter revenue was $74.7 million.
With natural gas, representing 77% of production and 58% of revenue.
We continued to benefit from strong basis pricing in the Eagle Ford.
During the quarter, our realized pricing was 103% of Nymex to BTI, 101% of Nymex Henry hub.
And 24% of Nymex WPS for Ngls.
During the quarter NGL prices retreated from first quarter levels on the back of lower ethane and propane prices, which did not reflect from first quarters winter heating seasonality, sorry, which did not benefit from first quarters winter heating seasonality.
While WK prices increased slightly on average.
We are forecasting continued NGL pricing softness in the near term.
And our guiding our NGL price realization to approximately 25% of the third quarter.
We continue to monitor NGL pricing month to month to make informed decisions regarding product recoveries.
Our hedging gains on contracts covering production for the quarter was approximately $4.3 million.
In support of our multi year development plan, we are minimizing our downside risk through disciplined and Upton and opportunistic layering of hedges as prices remain volatile.
Based on the midpoint of our full year guidance. Our total estimated production is 60% hedged for the remainder of 2019.
Our gas production is approximately 75% hedged.
With a weighted average price of $2.85 per MBT you.
Our oil production is approximately 57% hedged with a weighted average price of $60.02 per barrel of oil.
And our NGL production is approximately 37% hedged with a weighted average price of $27.93 per barrel of NGL.
Assuming the midpoint of our 2019 full year guidance is held flat through 2020.
Our gas production is 43% hedged with a weighted average price of $2.68 per MBT EU.
And our oil production is 42% hedged with a weighted average price of $57.85 per barrel of oil.
Note. The 2020 figures are inclusive of gas hedges entered into subsequent to quarter end.
In addition.
We have also used oil and gas basis swaps to manage our exposure to differentials.
For the remainder of 2019, we have gas basis hedges of 159 Mmcf per day.
Priced approximately flat to Nymex.
For 2020, we have gas bases hedges of 129 Mmcf per day.
With a weighted average differential of negative four cents.
As new pipeline capacity toward the Gulf is coming online.
We anticipate slightly lower basis premiums going forward.
Turning to costs.
Lease operating expenses were 23 cents per Mcf.
Down, 11% compared to a year ago.
Primarily driven by our continued cost reduction initiatives.
Transportation products.
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We are experiencing a technical issue.
There will be a slight delay in todays teleconference.
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Thanks, Jay we're going to pick off with Gleason section sorry for the technical difficulties.
Hi, It's Gleeson van Riet since we had some telecom issues I'm going to start from the top again so.
Leaving off thanks, Steve.
In my comments this morning.
I will highlight our second quarter financial results as well as our hedging program guidance and capital structure.
Second quarter revenue was $74.7 million with natural gas, representing 77% of production and 58% of revenue.
We continued to benefit from strong basis pricing in the Eagle Ford.
During the quarter, our realized pricing was 103% of Nymex WTI, 101% of Nymex, Henry hub, and 24% of Nymex Wi Fi for Ngls.
During the quarter NGL prices retreated from first quarter levels on the back of lower ethane and propane prices, which did not benefit from first quarters winter heating seasonality.
While BTI prices increased slightly on average.
We are forecasting continued NGL pricing softness in the near term.
Our guiding our NGL price realization to approximately 25% of W. W tie for the third quarter.
We continue to monitor NGL pricing month to month to make informed decisions regarding product recoveries.
Our hedging gain on contracts covering production for the quarter was approximately $4.3 million.
In support of our multiyear development plan, we are minimizing our downside risk through disciplined and opportunistic layering of hedges as prices remain volatile.
Based on the midpoint of our full year guidance. Our total estimated production is 68% hedged for the remainder of 2019.
Our gas production is approximately 75% hedged with a weighted average price of $2.85 per MBT EU.
Our oil production is approximately 57% hedged with a weighted average price of $60 or two cents per global oil.
And our NGL production is approximately 37% hedged with a weighted average price of $27.93 per barrel of NGL.
Assuming the midpoint of our full of our 2019 full year guidance is held flat through 2020.
Our gas production is 43% hedged with a weighted average price of $2.68 per mmbtu.
And our oil production is 42% hedged with a weighted average price of $57.85 per barrel of oil.
Note. The 2020 figures are inclusive of gas hedges entered into subsequent to quarter end.
In addition, we have also used oil and gas basis swaps to manage our exposure to differentials.
The remainder of 2019, we have gas bases hedges on a 159 mmcf per day.
Priced approximately flat to Nymex.
For 2020, we have gas basis hedges on 129 Mmcf per day.
With a weighted average differential of negative four cents.
As new pipeline capacity towards the Gulf is coming online, we anticipate slightly lower basis premiums going forward.
Turning to costs.
Lease operating expenses were 23 cents per Mcf fee.
Down, 11% compared to a year ago.
Primarily driven by our continued cost reduction initiatives.
Transportation and processing cost for the quarter or 31 cents per Mcf.
While production taxes for the quarter were 5.3% of oil and gas revenue.
Both coming in below the midpoint of our guidance range.
Adding our lovely Tempe and production taxes together.
We achieved total production expense of 73 cents per Mcf fee.
Which we believe stand out amongst our peers.
Cash DNA of 5 million was in line versus guidance of $5.1 million.
For the third quarter, we are guiding for cash DNA of five $4.8 million to $5.2 million.
Our cash operating expenses, including DNA.
Totaled 96 cents per mcf fee in the quarter compared to $1.12 a year ago.
We remain on track to reach our 2019, all in cash operating expense target of $1 per Mcf fee.
In total.
Strong liquids production and efficient operations resulted in adjusted EBITDA of $58.4 million.
At $2.73 per Mcf fee.
Our adjusted EBITDA per unit continues to benefit from higher liquids production mix.
Albeit slightly below first quarter levels on a per unit basis as gas and NGL prices retreated.
On a GAAP basis.
The company reported net income of $64.7 million for the second quarter.
Which includes an unrealized gain on the value of the company's head portfolio of $24.9 million and a $21 million net deferred tax benefit resulting from the release of evaluation allowance against our net deferred tax assets.
Looking ahead, we are guiding for third quarter production of 236 to 240 Mmcf per day.
And tightening our full year guidance range to 230% to 34 Mmcf per day.
Which is unchanged at the midpoint.
However, we have increased full year oil production guidance by 23% and total liquids production guidance by 10% compared to prior guidance.
Additionally, we have reduced our full year elouise range to 24 to 26 cents per Mcf fee.
A 21% reduction at the midpoint compared to prior guidance.
As Steve and his operations team continued to perform at a high level.
Please refer to our corporate presentation for the full breakdown of our latest guidance.
Turning to our balance sheet.
We had $273 million outstanding under our revolving credit facility at the end of the quarter.
And our liquidity position was approximately $140 million.
We expect to fully fund our 2019 capital program with cash generated from operations and borrowings on our credit facility.
At the end of the second quarter.
We were in full compliance with all our financial covenants.
And had significant headroom.
And with that I will turn or turn it over to Sean to wrap up our prepared remarks.
Thanks Lisa.
To summarize the second quarter illustrated the company's ability to execute on its goals.
The Silver Bowl team continues to add high quality inventory increase operational efficiencies and capitalize on opportunities that strengthen our competitive position as a best in class operator.
Our borrowing base provides us the liquidity to continue assembling our balanced commodity mix portfolio and to pursue our low cost development program.
As we think about the second half of 2019 and beyond we are moving toward a more liquids weighted portfolio, while retaining the advantage of our low cost gas optionality.
Our plan is to continue increasing liquids production as a percent of our overall production.
With an eye towards consolidating quality assets at attractive valuations.
In that regard we are evaluating investments on a dollars in dollars out basis.
With development dictated by prevailing commodity prices.
There are a number of catalyst that could expedite or shift the timing of our goal to further diversify our portfolio as commodity mix as we become the partner of choice in the Eagle Ford and continue to strive towards sustainable free cash flow.
We appreciate the support of our shareholders and look forward to providing an update to our business in the coming quarters.
Building on the success of the first half of the year.
And at this point.
I will turn the call back to the operator for the Q portion of our call.
Thank you if you would like to ask a question at this time. Please press Star then the number one on your telephone keypad again that is star one to ask a question and we'll pause for just a moment to compile the Q and a roster.
For me.
Your first question is from Dan Macintosh.
Hey, good morning, guys.
You talked a little bit about further bolt ons, and really impressive, which you're going to get done at asking adding 12 more locations and thats been linear better areas, especially on the dry gas side.
I Wonder if you could provide a little more color around where specifically you're looking I mean, obviously, you've got a big focus on build up your liquids exposure, but any color additional color would be appreciated.
Hey, Dan appreciate the question this is Sean.
I'll start by.
Kind of as well.
Macro view of the Eagle Ford, we think the Eagleford.
Is in a position to Deconsolidated, we've built an understanding of the subsurface and operations across the entire base and we have a very active BD team that works with our technical team and our assessment of opportunities our focus primarily those on the western side of the basin.
We are looking like is primarily at liquids opportunities.
And we're looking at a wide range of opportunities from grassroots leasing.
To bolt on acquisition leasing nearby our existing operations as well as a large transformational type deals so.
I'd tell you is that the primary focus is on the west side of the basin, we think theres a tremendous opportunity to expand our portfolio in that part of the basin. They would have a lot of synergies with our existing operations.
Okay, great. Thanks, and then I know you haven't provided 2020 guidance.
Again.
Our focus on liquids.
One is running one rig currently what what is that.
Maybe some goalposts around 2020 is kind of do you go into more of a maintenance mode at 2020 or is there still some growth with one rig.
Any color there.
Yes, yes.
Kind of early on in terms of the 2020 planning, we really start focusing on 2000 budget. The in the third quarter of course, we're always looking forward and Neil thinking through a number of strategies I would tell you for now dependent upon commodity pricing, we're targeting probably a one rig program.
With a focus.
Continuing being on liquid. So this year, we had a 70, 525% split in our DMC with 75% towards liquids liquid so.
I would say our first pass at 2020 would have a similar type of capital allocation with one rig now what does that do for us in terms of year over year growth.
We probably envision single digit growth.
Occurring with that one rig and still will be targeting free cash flow again dependent upon commodity prices and having the optionality.
Either cut back or accelerate capital depending upon our returns.
Okay, great. Thanks, and then just one more kind of macro high level question around.
Okay.
Gas and Ngls have obviously been challenge but.
Specifically as it kind of relates to you being in the Eagle Ford differentiated from what we hear the Appalachian and unit closer to Mexico and.
Mexican exports so.
Anything going on there.
In terms of our rigs continuing to see strong.
Gas and NGL realizations in our area is that yes exactly yes.
Yes, no we continue to see strong realizations in fact on the gas side in market price. Our in basin pricing has been strong as some some new facilities pipelines have come online and have look for increased gas to get those up and operating so we took advantage of that and continue to do that within the basin.
As we do look forward into the out years.
We recognize that there is a tremendous amount of gas coming online are scheduled to come online coming out of west, Texas. So think leasing outline that were very proactive on hedging our basis.
This year.
In through next year, we'll see basis hedges.
Lined out to be really in line with the Nymex So.
We really focus on.
Supply and demand issues still see the Eagleford, South, Texas being in premium markets now and going forward.
All right great, Thanks, and congrats on the strong quarter.
Hey, I appreciate the questions. Thank you.
Your next question is from Jeff Grampp of Northland capital.
Morning, guys.
For just curious.
Sean your comments seem to indicate in the prepared remarks them. Some optimism on the acquisition front I guess first wanted to confirm if thats kind of your view of things right now and then just broadly obviously opportunity dependent but how you guys kind of think about funding any larger acquisitions in terms of kind of obviously stocks now where we all want it and you don't want to take excessive leverage so just kind of balancing I guess kind of those those goalposts from a funding standpoint.
Yes. Your question definitely outlines the the challenge is that not only silver bowl faces, but many other folks face in today's environment.
So let me start with Hey, why why do we think there's opportunities out there and we've seen some pretty strong deal flow throughout the year. Our BD team has been and remains very active.
They've looked at over 40 opportunities this year alone and we've taken those in a number of those down through actual bids.
There's still remains.
Surprisingly some.
Split between sellers expectations and buyers expectations, but we think you know.
Different situations will ultimately drive deals to get done and then like you outlined the challenge is how do you fund those deals.
And in addition to looking at the.
Our BD team being very active our finance group is very active looking at creative ways to fund deals from.
Utilizing stock, although that would be a challenge psyche layout in at this price too.
Taking bringing in non op partners to to dissipate in deal flow. So.
We think that the difficult market, but there's a lot of times difficult markets create opportunities and we hope to take advantage of those.
Got it per se those thoughts and for my follow up Steve you talked about in your prepared remarks looking at I think you used the term new generation of infill drilling in the Macmillan oil area. So was just hoping to get a little bit more details as far as kind of what does that exactly entail for you guys.
Yes, Thank you Jeff.
We have looked at this as I had mentioned in prior calls we'd looked at this in the last year and we saw opportunities there.
From old generation completions and spacing.
To capitalize on quality oil.
Not just.
In the Western Eagle Ford basically quality oil throughout the Eagle Ford and so we went ahead and.
Kind of sharpened our pencil and set the technical teams behind it.
I looked at the history and looked at what was being currently done in terms of targeting today.
Where and how we can improve that targeting and then Furthermore, how could we put late generation completions on that.
And not only half performance, but exceed our performance.
And do it in such a way that we're we're not incurring a bunch of lost production as well through frac interference and so that was the technique that was done and and the performance has been there even better.
And then on top of that we did it all within a cost metric that made sense.
Okay, and if I can just follow up on that is.
The upcoming wells that you guys are targeting for the back half of the year are those going to change at all dramatically from the techniques you guys used in the first half of the wealthy kind of quoted in the release or are you guys sufficiently happy with those and just hoping to kind of replicate that type of performance.
It's largely the latter we're pleased with what we're doing we're pleased with the results and we're looking to replicate that and gain further consistency across those acreage blocks.
Got it understood appreciate it guys.
Thank you Jeff.
Your next question comes from Neal Dingmann.
Yes. So my question is Im just wondering can you talk a bit.
Kind of two broad questions. My first is for you believe some of the guys, how you'd probably have to or ties.
Given this market given kind of your debt levels and everything how you look at growth versus debt repayment versus stock purchases in today's levels.
Yes, Hey, Hey, Neal this is Sean maybe I'll start and then see police and wants to weigh in for US, It's really about returns and so as we think about moving to the free cash flow in debating on where to put that.
Where to put those dollars to work, we're going to prioritize returns and so it'll start first looking at the drill bit.
Are the returns fast by putting those dollars to work there.
Second would be looking at opportunistic acquisitions or leasing opportunities to further advance our liquids portfolio.
Third and then fourth would be looking at debt repayment and equity buyback. So as we think through it. The those are kind of the the order we would look at but again the underpinning of it would be.
It's all return space.
Yeah, and added Echo that and maybe just add it obviously.
When we look at our program for the year and what we're doing a lot of things happen again were center by the end of last year price are going one way and also in December gases got up a five handle on it.
And I guess in a different place so I think within all the things you've seen our flexibility and ability there kind of ramp up or or pullback or activity, depending on where commodity prices are so I think we're continuing modest turning this thing. So when we look at returns we can get to decide where to put our capital but.
I think we do try and bank a little bit longer term than kind of one day or one week or one month. So we're trying to build value for the long term.
And you know Gleason or Sean.
Sort of a follow up right into that question I know right now I'm sure as you talk to him as well investors are certainly asking for more sort of spending within cash flows you will but I'm wondering sort of given your cap size and then given especially the returns that you are seeing here recently on some news will sell wells and other liquid wells I'm, just wondering would you all consider more.
Other short term outspend in order to generate more incremental mid term cash flow I mean, I think you certainly have that opportunity. It just I mean, it's tough question is again I realize what investors are asking but but I would put that by saying that some smaller companies like yours.
Might be better opted to buck that trend, especially given the returns on some of these wells.
Yes, no something that we debate and think about the Austin.
The underlying strategy that Weve always outlined is growth and returns. So that's still our premise that we function under and then prudent management of the balance sheet is there as well so.
In the volatile markets that we're in I think we'll just have to assess the risk of that outspend versus our balance sheet.
And uncertainty around product prices, we obviously try to manage that risk through an active hedging program.
But we try to put that all together so what I would tell you is really what we're thinking about the as we look into 20 and maybe 21 is.
Though moderating our growth moving more towards probably single digit growth to low teen growth and looking to stay within free cash flow and balance.
Maintain good strong liquidity in our balance sheet. So that's that's how we're viewing it.
Got it thank you.
Yes, thanks for the question.
If you would like to ask a question. Please press star one on your telephone keypad again star one to ask a question.
And there are no further questions at this time Sir.
Thank you Amy and thanks to everyone for dialing in the quarter at filling in next quarter. Thanks.
Thank you for participating in today's teleconference. At this time you may all disconnect.