Crestwood Midstream Partners LP Management Discusses Q2 2013 Results - Earnings Call Transcript

| About: Crestwood Midstream (CMLP)

Crestwood Midstream Partners LP (NYSE:CMLP)

Q2 2013 Earnings Call

August 06, 2013 10:00 am ET


Mark G. Stockard - Treasurer of Crestwood Gas Services GP LLC ,Vice President of Investor Relations of Crestwood Gas Services GP LLC and Assistant Secretary of Crestwood Gas Services GP LLC

Robert G. Phillips - Chairman of Crestwood Gas Services GP LLC, Chief Executive Officer of Crestwood Gas Services GP LLC and President of Crestwood Gas Services GP LLC

Steven Michael Dougherty - Interim Chief Financial Officer of Crestwood Gas Services GP LLC ,Chief Accounting Officer of Crestwood Gas Services GP LLC and Senior Vice President of Crestwood Gas Services GP LLC

Michael J. Campbell - Chief Financial Officer of Inergy GP LLC and Senior Vice President of Inergy GP LLC

J. Heath Deneke - Chief Commercial Officer of Crestwood Gas Services GP LLC and Senior Vice President of Crestwood Gas Services GP LLC


Ethan H. Bellamy - Robert W. Baird & Co. Incorporated, Research Division

Edward Rowe


Good morning, and welcome to this morning's review -- call to review June 30, 2013 quarterly results for Inergy, L.P., Inergy Midstream and Crestwood Midstream Partners. [Operator Instructions] This conference is being recorded today, August 6, 2013. I would now like to turn the call over to Mark Stockard, Vice President of Investor Relations at Crestwood, for introductory remarks.

Mark G. Stockard

Good morning, and welcome to our call. We hope that you have had a chance to review our earnings release that we issued this morning. As a result of Crestwood Holdings' acquisition of Inergy, L.P.'s general partner in June, we've decided to hold a combined conference call for Inergy, L.P., including the underlying partnerships, Inergy Midstream and Crestwood Midstream Partners.

Before we begin, I'd like to remind you that during the call, we'll make certain forward-looking statements as defined in the Securities and Exchange Act of 1934, based upon the beliefs of the company, as well as assumptions made by and information currently available to management. Although management believes that these expectations are reasonable, we can give no assurance that they will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially.

In addition, we'll be discussing certain financial measures, such as EBITDA, adjusted EBITDA, distributable cash flow and adjusted net income, which are non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in the news releases that each of the partnerships issued earlier this morning. These press releases are posted on the Investor Relations section of the respective partnerships' websites at and

A reminder that information reported on this call speaks only as of today, August 6, 2013, and therefore, time-sensitive information may no longer be accurate at the time of any replay.

With that, I'll turn the call over to Bob Phillips, Chairman, President and CEO of the general partners of Inergy L.P., Inergy Midstream and Crestwood Midstream Partners.

Robert G. Phillips

Thanks, Mark, and good morning to all that have joined us on this call. We're very excited about the call today. This is our first time to present Crestwood and Inergy together as kind of a combined company. I'm going to update you on the merger in a second. But again, right off the bat, I want to express our thanks to all of our investors and appreciation to all the teams that have worked through this quarter and are working very, very aggressively to get these 2 companies together.

First, I'll update you on the merger timeline; secondly, cover the current quarter for all 3 partnerships, just give you some high-level observations there. I want to talk a little bit about some of our growth projects, some have been announced, others we're working on right now, all very exciting for us. And then finally, I'm going to turn it over to Steve Dougherty to review Crestwood's quarter and Mike Campbell to review the NRGY and NRGM quarter. And then I'll come back for Q&A, to the extent you have any.

So first to the merger update. As you know, we announced a historic transaction on May 6 -- it seems like a long time ago, really just a couple of months ago -- between the Crestwood companies and the Inergy companies to form a fully integrated midstream partnership, which we believe will ultimately have an enterprise value in the neighborhood of about $7 billion. We completed the first step in that process on June 19th of this year by combining the general partners of Crestwood into NRGY. And at the same time, Crestwood Holdings, which, as a refresher, is the partnership between First Reserve, our controlling shareholder, and the Crestwood management team, Crestwood Holdings also acquired control of NRGY and, indirectly, NRGM, on the 19th. And I became Chairman and CEO of the Inergy partnerships in addition to Crestwood. So today, as we speak, NRGY is a consolidated, general partner entity with some legacy assets, but more importantly, the GP IDRs of both of the underlying partnerships. NRGM and CMLP will remain separate entities until the merger is complete. But we are already working together on merger integration plans, and our teams are working together on a number of future acquisition opportunities, as well as joint development projects.

We continue to believe strongly in the merger thesis that we announced back in early May. After our announcement, you may have observed that a number of small- to mid-cap midstream MLPs are now aggressively searching for a merger partner. It's clear to us that size does matter in this business as the projects seem to just get larger and larger, so sector consolidation is certainly well underway right now. The value chain gross strategy continues to drive our project development teams, as it drove our merger strategic rationale.

Post-merger, the combined partnership not only will be larger and more capable of participating in larger projects, but will also have a broader view of the midstream market, from the well hit to the burner tip, which will allow us, as we grow in the future, to look for the best value to invest in the best assets, to offer our customers a full range of competitive services and to use that size and diverse portfolio to continue to build on a world-class portfolio of high-growth assets, which are largely focused on rich gas, NGLs and crude. So it goes without saying that in the post-merger world, we're going to have collectively much more visible growth opportunities when you consider our current positions in the Bakken Shale, the Marcellus Shale, the Niobrara Shale and a soon-to-be-announced Permian Shale project.

Now to the merger timeline. We filed the S-4 on May 29. We've been in the process with the SEC since then. Our best guess is, as of today, we'll be mailing proxy materials to the Crestwood unitholders sometime in late August. We'll hold the CMLP unitholder vote in late September, resulting in a merger close by late September, early October. Our goal, of course, is to have that completed before 9/30. In the meantime, we're very active on a number of fronts. I've engaged Booz & Company to facilitate the organizational merger integration process, very similar to those that we conducted at both El Paso and Enterprise. So we're very experienced in this process, and we're managing it exactly as we have in the past. We're making good progress on the integration front with a combined group of executives from both partnerships acting as a steering committee. We're probably 40% to 50% through with the integration process at this point in time. And certainly, we'll have our Day 1 activities ready by merger close and a full plan to be rolled out in the fourth quarter of this year.

Our goal is to create a scalable and efficient operating platform for our 3 business units, gathering and processing the traditional Crestwood business, NGLs and crude and storage and transportation, the traditional energy businesses. We're going to surround that with a low-cost shared services model built for scalability and long-term growth. As I said, our teams are working hard to be ready for Day 1, and they will be. We'll be executing the consolidation plan for the organizations in the fourth quarter, and ready to roll out combined 2014 guidance early next year for our investors. So I'm very pleased with the merger track that we're on.

Now to the current quarter performance. While we have been integrating for the future, we've also been taking care of business at the operating level. The current quarters, I think, were both solid for Crestwood and Inergy, with key assets performing largely as we expected them to. But clearly, some new opportunities are emerging in both asset portfolios which will drive future growth, so I hope you observe those.

At Crestwood, to begin with, aggressive expansion of our Marcellus gathering system continues to offset natural production declines in the Barnett Shale region. Antero, particularly, is even more aggressive. Recently, they've increased their rig count to about 15 rigs in the general area of our system. They've got 3 full-time frac crews underway. They have a number of drilled but uncompleted wells. And our infrastructure project list is growing as well. I think it's probably increased by a factor of 50% just in the first 6 months of the year. Some of our first half 2013 pipeline and compression projects were delayed by somewhere on the order of 45 to 60 days. It was a combination of permitting challenges early back in the spring, weather in the early summer and then just the generally challenging environment of rapidly building infrastructure projects up in that part of the world. We know that we were disappointed in our second quarter volumes as projects got completed at the end of the quarter, so we're going to see that volume metric increase beginning in the third quarter. We know that Antero, our producer, was disappointed as well.

Two very important expansion projects, the Zinnia 20-inch pipeline, which is a major new trunkline serving the rich gas Greenbrier area of our area of dedication, or AOD, as we describe it; and the West Union compressor station, which was our first major project over in Antero's Western acreage area, were both completed in the last week and are being commissioned as we speak. In fact, Zinnia has current volumes flowing through at roughly on the order of about 50 million a day, so we're pleased with that. We haven't announced that. We'll wait on Antero to announce first flow to sales, if they do, on those projects. But just let me be clear, the projects -- those 2 major projects are complete. And we're beginning to see volumetric flows, and so there'll be contribution in the third quarter from those very important projects. We think these projects will free up a lot of gas for Antero, and we expect the second half of the year to get back on track. Ultimately, by the end of the year. We expect to exit at a 2013 volume in excess of our original guidance. So a little bit slow here in the second quarter and the early third quarter, but picking up speed and probably exceeding our volumetric forecast as we exit the year.

Antero has certainly done their part in the area by continuing to actively develop the AOD and giving us more growth projects, like the new Victoria compressor station, which we've just signed up with Antero. That's also in the Western area and is expected to go in-service in the first half of 2014. So Marcellus driving reduced volumes -- slightly reduced volumes in the Barnett, that's our growth story at Crestwood.

On the Inergy front, the Northeast storage and transportation business is right on budget. Our crew logistics or COLT Hub business is well ahead of plan, and NGL services and traceable [indiscernible] were slightly below plan due to a number of factors, largely seasonality on the NGL side, some NGL seasonality or storage timing in the Northeast, out in the West Coast, compressed butane spreads, which are typical at this time of the year. With increased driving demand, you've got the normal butane prices up, so spreads have compressed. And a softer gas storage market in Texas also, particularly traditional at this time of the year without a hurricane or something like that to drive storage or gas price volatility. So all those things, probably to be expected at the COLT Hub.

In the Bakken, though, we're really excited about recent performance. We averaged over 85,000 barrels a day in the quarter. Our expansion project, which we announced a couple of months ago, is well underway. And I'm pleased to report that in July, the COLT hub moved more railcars through its facility than any other Bakken rail terminal in North Dakota, so we're excited about that.

In the Northeast, our gas storage business remains fully contracted. We think Northeast natural gas fundamentals continue to work in our favor, with the increasing Marcellus supply growth benefiting the location of our storage and transportation business up there relative to the growing Northeast market demand for natural gas. So we're excited about all of those key assets. Again, I think that they performed largely as expected for the quarter.

To the growth projects, our BD teams in both companies are working on a number of joint growth projects, including the recently announced Powder River Basin Niobrara Shale/Jackalope gathering and processing joint venture -- well, that's a mouthful. It's a new emerging rich gas play that will have not only a heavy dose of liquids but also some crude oil. And so our Crestwood and Inergy teams are both working together to fully develop the opportunities in that project. We closed it at the end of the quarter. We announced interim financing with permanent financing with GE, which was done because of the interim basis of our joint -- of our merger, so we have it fully financed. We're excited about the growth opportunities there. It's a joint venture with Access and provides us an opportunity to build out, as I said, an emerging rich gas basin, a substantial gathering and processing system for Chesapeake and RKI in the area. We've got a significant acreage dedication there. It looks a lot like the Marcellus to me, with years of built-in infrastructure growth.

And as I said, with Inergy's help, we're working on both short-term and long-term NGL and crude solutions for Chesapeake and RKI, which our anchor customers were also deploying a business development team up there to start working with producers in the entire converse in Campbell County area. The entire area is starting to really emerge as a high-focus rich gas and crude area. So future projects there could include terminals, using our trucks and our rail capability, all part of Inergy's NGL and crude marketing services. And so we're excited about that. It's a bit of a poster child for the merger, how we're going to develop those opportunities out there.

We're doing the same thing in the Delaware Permian Basin. It's around our Las Animas assets. We've kind of gradually developed a project there. And we have announced from time to time to investors that we're starting to get some traction on projects.

We are moving forward with a 2-phased gas processing project and potentially some long-term takeaway for NGLs there. We're building out our rich gas system, converting the Las Animas dry gas systems. The Permian, as you know, has probably seen the most significant increase in drilling in the first half of 2013 due to crude oil prices and the growing need for infrastructure. So we're excited about the Permian area, and we'll be telling you more about that over time.

So that's the high-level update. Now I want to turn it over to Doc to cover the Crestwood quarterly performance, and then Mike Campbell will cover Inergy. Doc?

Steven Michael Dougherty

Thanks, Bob. Crestwood's adjusted EBITDA was approximately $39 million and $78 million for the quarter and 6 months ended June 30, 2013. This was $7 million and $17 million higher than the same periods in 2012. Our adjusted distributable cash flow was approximately $28 million and $56 million for the quarter and 6 months ended June 30, and that was $4 million and $10 million higher than the same periods in 2012.

The increase in our adjusted EBITDA and DCF was primarily the result of higher gathering volumes in our Marcellus operations, which increased by over 60% quarter-over-quarter. In addition, compression assets we acquired from Enerven in December 2012 contributed about 50 Bcf of compression volumes during the first half of 2013, which added approximately $8 million to our revenues in the first half of 2013.

Our Barnett operations were relatively flat quarter-over-quarter and year-over-year, which is primarily the result of the additional contribution from the West Johnson County assets we acquired from Devon, which were acquired in August of 2012, being offset by natural declines experienced by our other Barnett assets. All of our other operations were relatively flat quarter-over-quarter.

Now I wanted to note that when you look at our earnings per unit on a GAAP basis for the quarter, it's a $0.01 loss compared to what we'd previously reported. And that was primarily due to expenses that Crestwood incurred related to the merger with Inergy. Absent these expenses, we would've reported approximately $0.07 of earnings per unit for the quarter. We also announced earlier that we'll be keeping our distribution steady at $0.51 per unit this quarter, which will be paid on August 9.

Now for an update on Crestwood's liquidity. We had approximately $778 million of debt outstanding at June 30, and CMLP's credit facility's debt to last-12-month EBITDA ratio was 4.3x at June 30. We had approximately $80 million of capital expenditures through June 30, which we funded primarily through our public equity offering that we did in the first quarter of 2013. These capital expenditures primarily related to the growth capital projects that Bob referred to earlier in the Marcellus, which are anticipated to fuel Crestwood's growth in the area in future quarters.

Now I'll turn it over to Mike to review Inergy's results.

Michael J. Campbell

Thank you, Doc. I will walk through the results from operations for NRGM first, followed by the results for NRGY. At NRGM, we reported adjusted EBITDA of $47.7 million and $123.3 million for the 3 and 9 months periods ended June 30, 2013. This represents a $14.3 million and $29.4 million increase over the same periods in 2012.

The adjusted EBITDA increase year-over-year was driven by increases in gross profit in our natural gas storage and transportation and crude businesses, which were the result of placing the Marc 1 pipeline in-service and the acquisition of the COLT Hub, both events occurring in December of 2012. This was offset by slightly lower gross profit from our Salt segment. Adjusted EBITDA was also impacted in the quarter by slightly higher cash operating expenses.

NRGM DCF for the 3 and 9 month periods was $39.1 million and $101.3 million, an increase of $9.3 million and $20.7 million over the same periods in the prior year. NRGM declared a $0.40 per unit distribution for the quarter, a $0.005 increase over the prior quarter or a $0.02 annualized increase, which will be paid on August 14.

Moving on to NRGM's balance sheet. The debt balance at June 30 was approximately $737 million, comprised of $237 million drawn on our senior secured credit facility and approximately $500 million in senior unsecured notes. Our total leverage ratio as calculated under the credit facility was approximately 4.2x at June 30.

Overall, as Bob has commented in his opening remarks, NRGM posted solid results, and we're right in line with our expectations for the quarter.

Now moving on to the NRGY results of operations. I want to take a moment to explain the accounting treatment for the transaction with Crestwood Holdings and the impact to the reported financials present in our earnings release distributed earlier this morning. The transaction between Crestwood Holdings and NRGY completed on June 19 was treated for purposes of GAAP as a reverse merger, whereby NRGY is the surviving legal entity but Crestwood Gas Services GP LLC, the general partner of CMLP, is deemed to be the accounting predecessor. Thus, NRGY's GAAP reported financial results for the quarter reflect a full quarter of Crestwood Gas Services results plus the consolidated results from operations of NRGY and NRGM for the 12 days from June 19 to June 30.

In addition, as a result of the transaction, NRGY has changed its fiscal year end from September 30th to December 31st. Overall, the accounting for the Crestwood transaction makes the financial's comparability somewhat challenging, and I would encourage investors to read NRGY's earnings release in 10-Q in conjunction with the separately reported results of NRGM and CMLP, and also the NRGY pro forma financial information for the year ended December 31, 2012, filed on an 8-K/A dated July 23. Based on this, adjusted EBITDA for NRGY for the 3 and 6 months ended at June 30 was $47.8 million and $87.2 million. The increase in the adjusted EBITDA over the prior year is primarily driven by CMLP, as Doc has described in his remarks, and the contribution from the consolidated results of NRGY subsequent to the June 19 closing date of the transaction.

Consolidated DCF of NRGY for the 3 and 6 month periods was $28.8 million and $72.1 million, which has been adjusted to reflect the DCF contribution from Inergy in the period prior to June 19 and the distributions that were paid to minority LP unitholders at NRGM and CMLP.

NRGY DCF includes solid results, as we've discussed, from both CMLP and NRGM, and again, as Bob overviewed in his remarks, the continuation of a challenging gas storage environment at Trace and, to a lesser extent, higher corporate overhead expenses related largely to the merger and the NGLs storage timing that was also discussed.

NRGY declared a $0.13 per unit distribution for the quarter, which will be paid on August 14. The NRGY cash distribution reflects the completion on June 18 of the pro rata distribution directly to the NRGY unitholders of the $56.4 million NRGM common units that NRGY owned, in a ratio of approximately 0.4321 NRGM units for each NRGY unit owned. Taking into account the $0.40 quarterly cash distribution declared by NRGM on the distributed units, NRGY unitholders that continue to own those distributed units effectively receive approximately $0.17 per NRGY unit directly from M and $0.13 per unit, as declared, directly from NRGY, for a total distribution of approximately $0.30 per NRGY unit. This represents an increase of $0.01 per quarter from the previously paid quarterly distribution of $0.29.

On NRGY's balance sheet, the standalone debt balance at June 30 was about -- approximately $355 million, and pro forma for the transactions, leverage, as calculated under our credit facility, would be just over 4x.

That concludes my remarks of the results of the quarter for NRGM and NRGY. And with that, I'm going to turn it back to Bob for some closing remarks.

Robert G. Phillips

Thanks, Mike. Thanks, Doc. Good overview. I just wanted to make a note to investors. We've worked hard to give some real definition to the unusual accounting presentation for this quarter. And I would comment that we understand it's a little bit challenging for investors to do quarter-to-quarter analysis, year-to-date analysis. We did touch on quarterly performance for the key assets. And I think that's more important. We've given some continued commentary to the developing projects. And we'll be announcing more on those projects, more on our plans in the Niobrara, more on our development opportunities in the Bakken, more on this developing Permian project as we move through the next couple of months in investor presentations. But I can tell you that we're pleased with how the teams are approaching those opportunities. We're signing contracts with anchor tenants for expansion projects in each of those areas.

I think most importantly, though, I want investors to focus on the progress we're making on the merger, the integration process, our timing, the fact that we're going to have these 2 partnerships combined into a great midstream partnership by the fourth quarter of this year. That's record speed for a combination of master limited partnerships in this business, based on my experience, and I've been involved in a lot of the large combinations over the years. So I want investors to focus on that and on the platform that we're building for growth. So I hope that the strategic merits of the transaction are still very apparent. They still hang together for us.

And with that, I'll turn it back to the operator, and we'll start the Q&A.

Question-and-Answer Session


[Operator Instructions] And our first question does come from the line of Ethan Bellamy with Robert W. Baird.

Ethan H. Bellamy - Robert W. Baird & Co. Incorporated, Research Division

Two questions for you. First, Mike, on housekeeping. What kind of merger-related expenses should we be modeling in 3Q?

Michael J. Campbell

Ethan, relative to 3Q, I think a large number of those expenses would occur really -- and I believe you're talking about calendar 3Q?

Ethan H. Bellamy - Robert W. Baird & Co. Incorporated, Research Division


Michael J. Campbell

Would occur down at NRGM. And I think if you had something in your models in the neighborhood of, again, kind of $3 million to $5 million, I think it would probably cover what we'd expect there, largely related to financing expenses.

Ethan H. Bellamy - Robert W. Baird & Co. Incorporated, Research Division

Okay. That's helpful. And then with respect to the COLT Hub, the commentary was that things are pretty bullish there. Has the decline in spreads recently dampened any enthusiasm for customers or impaired throughput at all?

Robert G. Phillips

Ethan, this is Bob. We don't think so. We're monitoring our customer activity up there. We're signing new contracts for term, our producers -- or our customers, rather, that are using the COLT Hub. They have signed up for essentially firm service there, so they have that availability. The recent contraction of WTI to Brent really has been recent. We think it's being driven by a very strong, if not unusually strong, summer driving season and shortage of inventories there. We don't think that's a long-term situation. Our customers, both East Coast and West Coast, continue to tell us that the COLT Hub and railing out of Bakken is a part of their long-term supply solution. And so we continue to aggressively market the additional capacity that we're building up there. And right now, the utilization rate is very strong considering that very short-term contraction in the spread. So we just don't think that's a long-term issue, and we haven't talked to any existing or potential customers that believe that's going to have a long-term impact on their utilization of the facility.


[Operator Instructions] And our next question does come from the line of Edward Rowe with Raymond James.

Edward Rowe

With the recent Niobrara acquisitions, can you give us some insight on potential organic growth projects and CapEx associated with this area? Because we're hearing a lot of strong feedback around that area.

Robert G. Phillips

Yes. Ed, let me let Heath Deneke answer that. He's run the project team up there. When you say strong feedback, I assume you mean accelerated activity due to high crude oil prices and, as a result, we're seeing an acceleration of development plans. That's exactly what I hope you were pointing out because that's not lost on us in both the Powder River Niobrara as well as the Permian. We're seeing a significant increase in producer development. So we're actually fast forwarding a lot of the opportunities we thought would come maybe next year. We're working on those now. Heath?

J. Heath Deneke

Yes, I would just add, I don't have a capital budget for you now, but what I'll generally tell you is that we currently have a little over 100 miles of pipe installed. And we expect, probably over the next 18 months or so, to double the amount of mileage as well as installing our first of what we hope to be many processing facilities in and around the Jackalope System. So we're continuing to see growing -- volumes grow. We continue to see new wells that come on the drilling schedule. And between now and end of '14, perhaps over 200 wells will be added just to the Jackalope. And in addition to the gas, I mean, this is a rich gas play with a lot of crude oil behind it as well. So we're continuing to explore opportunities to get involved in the crude marketing and logistics in the basin. And we'll have some future developments that perhaps we'll talk about later on this year.

Edward Rowe

Okay, that's helpful. Last question. Within natural gas storage, some storage MLPs are reporting lower contracts heading into winter season. How are contract levels? And do you have any new contracts that you are trying to weigh the balance on either recontracting at lower levels or leaving more capacity available to use for marketing and hub service activities?

Robert G. Phillips

Edward, those are good questions. This is not the right time of the year to be answering that. We'll be making 2014 decisions as we move later into the year. We're very fortunate up there as a segment that Northeast storage business for us has a good, strong contract portfolio to it. We only have about 20% of our capacity rolling off to be recontracted in 2014. It's still a little early in the year to reach final agreement with our customers. What I can tell you is that we -- as I said in the opening remarks, we think the fundamentals continue to work in our favor up there. Storage in general has been softer this year than it was last year, admittedly. We continue to see a very strong supply push. And the demand, while good this year, hasn't been as good as it was last year in the summertime, given the market's ability to take away from coal. So I'm not sure that actual utilization is going to be as great this year as it was last year. But moving into 2014, we've got this tremendous supply push from the Marcellus, which we think really underpins the long-term value of our storage complex up there. And I just think it's a little bit early. When we get to the third quarter call, maybe sometime in November, I think we'll be in much better shape to talk about renewals for 2014. We'll be closer to the time that those contracts get remarketed and renegotiated. So we'll come back to you post -- hopefully, post-merger and when we have some real information. But I will tell you that the long-term fundamentals continue to be very favorable for us recontracting up there in that part of the world.


[Operator Instructions] And at this time, there are no further questions. I would like to turn the call back over to Mr. Phillips for any closing comments.

Robert G. Phillips

Okay. Thanks to everybody for joining us. We had good participation on the call. We actually hit our mark at 30 minutes. Probably could've spent a little bit more time, but I know that everybody's busy with a lot of earnings calls this morning. So thanks again for participating. A final note, we're excited about what we're doing here between Inergy and Crestwood and hope that investors remain optimistic about our timeline and our process throughout the remainder of the year. We look forward to being back to you after the third quarter call with some exciting new updates on our projects. And with that, we'll call it a day. Thanks, operator.


Thank you very much. Ladies and gentlemen, that will conclude the conference call for today, and we do thank you for your participation. You may now disconnect your lines at this time.

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