Enbridge Energy Partners' Management Discusses Business Outlook and Updates 2012 Financial Guidance Conference (Transcript)

Jul. 3.12 | About: Enbridge Energy (EEP)

Enbridge Energy Partners, L.P. (NYSE:EEP)

Business Outlook and Updates 2012 Financial Guidance Conference Call

July 03, 2012 10:00 am ET

Executives

Sanjay Lad - Director, IR

Mark Maki - President

Steve Neyland - VP, Finance

Dave Wudrick - Treasurer

Analysts

Mark Reichman - Simmons

Brian Zarahn - Barclays Capital

Sharon Lui - Wells Fargo

TJ Schultz - RBC Capital

Louis Shamie - Zimmer Lucas

Ted Hayden - Point State Capital

John Edwards - Credit Suisse

Operator

Good day ladies and gentlemen and welcome to the Enbridge Energy Partners, L.P. business outlook and 2012 financial guidance conference call. My name is Chaney and I’ll be your coordinator for today. At this time, all participants are in listen-only mode. We will be facilitating a question-and-answer session toward the end of today's conference. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the presentation over to your host for today, Mr. Sanjay Lad, Director of Investor Relations. Please proceed, sir.

Sanjay Lad

Thank you, Chaney. Good morning and thanks for joining us for the second quarter 2012 business outlook and financial guidance update conference call for Enbridge Energy Partners. This call is being webcast and a copy of the presentation slides and news release associated with it can be downloaded from our website at enbridgepartners.com.

A replay will be available later today and a transcript will be posted to our website shortly thereafter. As a reminder, the Partnership’s financial result and business outlook are also relevant to Enbridge Energy Management or EEQ. I will be available after the call for any follow-up questions you may have.

Our speakers today are Mark Maki, President and Steve Neyland, Vice President, Finance. Available for the Q&A session, we also have Mr. Steve Wuori, President Liquids Pipeline, Enbridge Inc., Leon Zupan, President, Gas Pipelines Enbridge Inc., Terry McGill, Senior Vice President, Natural Gas Operations and Engineering; Dave Wudrick, Treasurer and Bill Ramos, Controller; I’ll leave then others.

This presentation will include forward-looking statements. The risks associated with forward-looking statements have been outlined in the earnings release and the Partnership's SEC filings and we incorporate those by reference for this call. This presentation also contains certain non-GAAP financial measures and the reconciliation schedules for these non-GAAP measures to comparable GAAP measures can be found in the Investors Section of our website.

Please turn to slide three and I'll now turn the conference over to Mr. Mark Maki.

Mark Maki

Thank you, Sanjay. Good morning, everyone. Management of Enbridge firmly believes the importance of being open to our investors. We have completed the reforecast of our 2012 financial results in light of declines in commodity prices, in particular NGL prices over recent months. Accordingly, to provide investors with current information, we are updating our financial guidance for full year 2012.

Our guidance reduction is due to lower expected performance of our Natural Gas Segment as a result to lower NGL prices and related lower natural gas production. Local, national and global fundamentals are all impacting the North American NGL price environment.

Although our Natural Gas business is being impacted by the current commodity price environment, the long-term outlook for the partnership remains strong and the distribution is secure. We continue to believe our cash distribution will grow in line with our previous 2% to 5% per year distribution growth objective over our planning horizon.

The Partnership’s foundation business is our Crude Oil Pipeline Systems and those systems continue to perform well and generate a stable stream of cash flows. Commencing early 2013, we have a number of growth projects coming on line that will elevate the Partnership’s distributable cash flow profile. These growth projects are predominantly underpinned by a long-term low-risk commercial framework in the form of cost-of-service and ship-or-pay contracts.

Please turn to slide four and I’ll turn it over to Steve Neyland to discuss our revised financial outlook for 2012.

Steve Neyland

Thank you, Mark. The Partnership expects full-year adjusted net income for the current year to be between $440 million and $470 million with adjusted EBITDA forecasted to be between $1.12 billion and $1.17 billion. Adjusted net income is down from our originally communicated guidance range of between $510 million to $550 million and adjusted EBITDA is down from our original range of $1.19 billion to $1.25 billion.

Let's move forward to slide five. The Partnership’s operating income is currently comprised of predominantly fee-based business representing 75% of operating income with the remaining 25% sensitive to commodity price movements prior to hedging. Although, the near-term outlook for our Natural Gas business is being impacted by the recent decline in NGL prices, this decline is partially mitigated by existing commodity hedging arrangements.

Our January guidance presentation represented our Natural Gas businesses sensitivity to fluctuations in NGL prices as shown on the right side of the slide. The table quantifies the impact of a 20% downward move in liquids prices. The recent deterioration in liquids prices has been pronounced resulting in an approximately 40% decline since the beginning of the year. The significant move in NGL prices effects our full year earnings forecast by about $50 million.

Additionally, reduction in natural gas volumes and associated NGL production will result in earnings to be approximately $25 million lower than originally forecasted. The volume forecast change is in part due to the third-party upstream issues on our Anadarko system encountered during the first quarter.

Please turn to slide six. As Mark noted in his opening remarks changing industry fundamentals have resulted in significant downward pressure on NGL prices. Increasing NGL production in the rich gas producing regions combined with downstream ethylene cracker and fractionator downtime has elevated ethane and propane inventory to extremely high levels. This has created a bearish outlook for NGL prices through the balance of the year.

Moving forward to slide seven, we have secured attractive expansion projects that will provide a sustainable and predictable stream of cash flows to the Partnership and our investors. As we noted earlier this year, the substantial growth on the liquids side of our business will shift the Partnership’s earnings and cash flow profile which is more heavily weighted towards crude oil over the coming years; resulting in a 75% to 80% liquids and 20% to 25% natural gas business mix.

The cost of service and ship-or-pay commercial structures underpinning the liquids growth projects control key elements such as commodity price fluctuations invariably provide highly certain long lived stable cash flow.

Let's turn to slide eight. The partnership’s distributable cash flow profile will progressively ramp up over the coming years as our previously announced growth projects in liquids and natural gas businesses are placed into service starting in late 2013. These accretive growth projects are predominantly secured by a long-term, low risk commercial framework that will ultimately drive a distributable cash growth trajectory through 2015.

And we will continue to secure additional attractive growth opportunities beyond 2014 to elevate our growth story. The long-term growth outlook for the partnership remains strong and we are optimistic about the partnership’s future.

Please turn to slide nine. In light of recent events in the NGL commodity’s market, our natural gas business will face challenges over the near term planning horizon. As such, we will exercise prudent financial management and optimize our capital and plan to reduce capital investment into the national gas business in the near term.

We will continue to consider opportunities in natural gas business that will elevate the partnership’s long-term fee based profile. From a financing perspective, we are currently pursuing opportunities to enhance our liquidity position by upsizing our bank credit facilities, additionally the partnership has some financing flexibility pursuant to the option in the Eastern Access joint fund arrangement with Enbridge Inc. which will reduce the partnership’s funding requirement by over $300 million if management deems appropriate. Let's be clear that maintaining our investment grade credit rating remains a priority.

Please turn to slide 10, and I will now turn it back over to Mark to discuss the partnership’s distribution growth outlook.

Mark Maki

Thanks Steve. Management is confident that the current level of partnership's cash distribution and we do continue to target the 2% to 5% annual distribution growth. Although our distribution coverage for 2012 is forecast to be less than 1%, our coverage is expected to strengthen through 2013 and 2014 from our secured growth projects. The partnership has successfully managed through our comparable period when Alberta Clipper and Southern Access pipelines were under construction amidst the 2008 and 2009 financial crisis.

Cover strengthened once those projects were commence service and began delivering cash flows as expected. So we've been through this kind of thing before. The partnership’s distribution is sustainable and our distribution growth target is achievable.

Turn to slide 11 please. Key takeaways are a few points I want to emphasize. I want to reiterate the most important point of this call that is the long-term outlook for the partnership remains strong and the cash distribution is secure.

Management expects to grow our distribution on an annual basis in line with our 2% to 5% per annum target over our planning horizon. And although we hit a month in the road for 2012 the future is bright. 2013 and 2014 growth outlook is underpinned by strong business fundamentals and forecast cash flow growth is driven by low risk commercially secured projects. With that I would like to now turn it over Chaney for the Q&A section of the call.

Question-and-Answer Session

Operator

(Operator Instructions) your first question comes from the line of Mark Reichman with Simmons. Please proceed, sir.

Mark Reichman - Simmons

Good morning. I just have a few questions. I will start off by you know as you mentioned the coverage dipping below one time, is there any flexibility I know it would be just kind of more optics but would the parent company be willing to sacrifice some of the IDR income to ensure that you have an adequate level of coverage on your distribution or at least it might support the distribution?

Mark Maki

Thanks Mark for that the question. We do, we’ve been through in the past situations like this for coverage that below one and what we look at when we are managing distributions going forward and in the current is how we see company performing over our planning horizon which is a five year look and certainly with the projects we have coming online we don’t see this is being other than transitory thing that we got to work our way through and doesn’t require kind of remedy that you are suggesting here. And really it’s not a subject that we’ve discussed with the parent.

Mark Reichman - Simmons

Okay. And then the other two items are while there could be further downsizing in commodity prices and you are updating your outlook based on NGL’s volumes following a decline, could you speak a little bit to your commodity price assumptions now and then also talk a little bit about the potential capital investment reductions in the natural gas business and that’s all I have.

Mark Maki

Okay. I will take the first couple of parts of that and I am going to look to Steve Neyland to help me with little bit more detail on the price deck. But basically Mark what we’ve done is we take a look at forward prices and historical correlations along with some projections from external experts and to develop a price deck and so what you will see the components that are the most difficult at the current time is ethane and propane and we do see some improvement in ethane prices over the planning horizon although they are not back to where they were say even coming into this year as an example.

So I think it is relatively conservative. We have seen some folks publish price decks at different pieces of analytical work that have been done and our price deck really aligns pretty well with that. With respect to the natural gas business and capital investment there and then I will go back to Steve for anymore color on the price deck that he wants to offer.

But you know we are going to look at projects that strengthen existing franchise and make the mistake about what we are not going to let that business slide. It is a very important business plus it's an important diversification for the partnership and you know it's a valuable part of the company.

So we are going to maintain that business in the right way. I think we are going to be high grading the investments that we are making we are looking more for opportunities that enhance the value chain in that business, strengthen the core business and you know something more of a step out from our platform and it comes with commodity price risk.

I think we are going to look at that differently than we have historically.

And Steve anything else you want to add to the price deck or is that a pretty good description.

Steve Neyland

Yes a pretty good description. I just want to add there would be that the price deck used for 2012 is very consistent with market prices that are available today. So for market looking at today’s price is very consistent with what we have used in our forecast for 2012 and our re-guidance.

Operator

Your next question comes from the line of Brian Zarahn with Barclays Capital. Please proceed.

Brian Zarahn - Barclays Capital

Can you talk a little bit about the change here 2012 CapEx budget?

Mark Maki

Steve can you take that?

Steve Neyland

First of all, Brian, we'll look to give a more robust profile for our 2012 capital at the end of the month when we do our typical analyst call. But capital, by and large, is fairly consistent from the prior versions that you've seen. So we'll be modifying it. But there are some changes that where we've taken some reduction on the gas side of the business, and we'll look to provide more transparency on that at the end of the month.

Brian Zarahn - Barclays Capital

And can you maybe talk a little bit more about the equity financing plans for this year?

Mark Maki

Yeah, Dave, do you want to take that?

Dave Wudrick

Yeah, sure. Hi, Brian. Effectively, we'll continue to manage our balance sheet sort of on a 50/50 basis. And I would say generally the spend has been slower than we had originally anticipated but have a very defined profile ahead of us. And really our financing requirements will be driven by the speed or at the velocity of which we're spending on CapEx. So generally, not a lot of differences from the last call that we had. We are also looking to embellish liquidity just to continue to make sure we're in good shape as we move forward into 2013.

Brian Zarahn - Barclays Capital

Okay, thanks Dave. And then last one for me, appreciate reaffirming your long-term distribution growth guidance. Can you give a little color perhaps as to for 2012? Do you think perhaps you would keep the distribution flat for this year, and then as the projects come online in '13 and '14, the growth would come more in those years to get to that target range?

Mark Maki

Well, that's certainly one way of looking at it as opposed to 2012. I think our predisposition, though, Brian, I think is to consider, we've said 2% to 5% a year, and that's I think how we'd want to look at 2012 as well. But keeping in mind that any distribution decision, of course, like any other company is subject to approval of the Board of Directors, and that's something -- it's not something that I can really talk upon any more specifically today than what we just did.

Operator

Your next question comes from the line of Sharon Lui with Wells Fargo. Please proceed.

Sharon Lui - Wells Fargo

So just a couple of questions on the guidance. With regards to the volume forecast, is the decrease primarily attributable to the upstream issue during the first quarter or have you seen I guess the decline in drilling activity around Anadarko system?

Mark Maki

It really isn't a decline I would say in activity around the Anadarko system, Sharon. In fact, we meet every week and talk about the different activity we're seeing around the different systems, and it's been very active up there. In fact, it's picking up I would say in some of the other areas where we thought it would pick up sooner in the year.

I suspect that's really a function of some of the constraints that were there in the infrastructure. So people redeployed assets. So I think it's more of a timing issue on Anadarko as opposed to a bigger source. Maybe activity level in that area is still very, very strong. We haven't really seen a drop off. Some folks publish it as being one of the best or the best place for the producers to put their capital to work.

And processing capacity, we've brought online and others have brought online, the NGL extraction is being built out in the area to take away to Bellevue. I think that bodes very well for that area in the long run. But short-term, we're a little behind than what we thought we'd be at this point.

Sharon Lui - Wells Fargo

And I guess exactly, what were some of the operational issues that you experienced in the first quarter?

Mark Maki

With respect to the area there, there was constraints in NGL takeaway on that side. We had a well issue with respect to one of the key facilities that are attached into the Mid-Continent region. And Terry correct me if I'm wrong on this, but [Netford] and -- those will be a couple of examples Sharon.

Sharon Lui - Wells Fargo

Okay. And I guess in terms of your guidance, are you baking in any ethane rejection in your forecast?

Mark Maki

Steve, can you fill that, Neyland?

Steve Neyland

Yes, Sharon, this is Steve Neyland. Very modest levels of ethane rejection. Obviously in Conway we're going to see that first, given the lower NGL prices in the area. So there is a modest level baked into our numbers.

Sharon Lui - Wells Fargo

Okay. And then I guess you indicated that the utilization of the liquid system has continued to ramp. Does the guidance reflect I guess higher volume assumptions for that business?

Mark Maki

The guidance reflects higher volumes associated with that system but there are some offsets to that Sharon, so there is -- we've considered it as part of our guidance update is a short answer.

Operator

Your next question comes from the line of TJ Schultz with RBC Capital. Please proceed.

TJ Schultz - RBC Capital

Hey guys, good morning. I guess just on producers and obviously we've seen a shift in produce interest to structured fee-based contract. So actually I was just curious just on the recent commodity volatility has changed the thought process here at all from a producer standpoint?

Mark Maki

Well, on that side as it relates to the GP side of the business, there are these windows of time when people are more receptive to the fee-based contracts. And I think a lot of it depends upon competitive dynamic and what you're looking at. But certainly, we do approach that. In the past in some of our basin, in east Texas for example, we did do that; take a payer or fees because the competitive landscape was such where it lent itself to that.

And there are times that it doesn't. So it's something we look to do. We constantly look to do that or at least if we're going to take an element of commodity exposure in connection with a contract, there's also a fee component to it. So typically, TJ, what you'll see is we'll have a gathering fee and then some element of commodity as common. Although if we can go to a fully fee-based that would be preferable for a lot of reasons.

And -- but sometimes the competitive landscape just doesn't let you do that. So it's really a location-by-location determination but there are times producers are more receptive to it and there are times they're not.

TJ Schultz - RBC Capital

Okay, thanks. I guess just on the comment that you're moving to 75% to 80% of liquids pipeline and 20%, 25% natural gas, this move from about a third natural gas operating income in 2012. Maybe just a comment on how long you expect this progression to take and how you expect your fee-based margin to increase into 2013 and beyond.

Mark Maki

Steve Neyland, do you want to fill that?

Steve Neyland

Sure, hey TJ. Yeah, that change to the lower end of the 80/20 breakout will occur over the next couple of years. So we're fully edging our way there as these liquids projects latter into service beginning in 2013. And then as it relates to future projects, we are looking for opportunities to have more and more cost of service or take or pay like contract structures.

So -- and whether that's on the liquid side of the business or in gas, such as Texas Express, we look to enhance that type of contract structure as we move through our time.

Operator

(Operator Instructions) Your next question comes from the line of Louis Shamie with Zimmer Lucas. Please proceed.

Louis Shamie - Zimmer Lucas

Hi good morning. Most of my questions have been asked, but just wondered if you could a give a little bit more commentary on why you think it’s prudent to de-emphasized the Natural Gas Segment; I know kind of like a year ago came like that that segment was getting more attention and you were investing a lot, bought the systems from Atlas and were investing in this couple of plants in Oklahoma. Can you talk philosophically about why you are moving away from that, because it seems that the returns on those projects can be a lot better than the kind of the cost of service returns and just wondering what’s changed, the commodity prices that’s driving the shift?

Mark Maki

I think we go toward or describe it as our bedrock business or primary business really is when Liquids Pipelines move in and I would say if you look at that business, it’s the highly certain cash flows that come from it and the much stronger competitive the company has in that business. But really the fundamental thing I think that drives if you got to allocate capital, the allocation of capital in the liquids business because of the certainty of the cash flow is really the driver and so the capital is a precious resource and so that’s where it’s going to be allocated first.

And please don’t take our comments to be that we don’t like the gas business and don’t see opportunities there, we do. And the thing that looks Texas Express, the projects looks like Texas Express would be an interest to us in the business or if there's ways we can enhance the existing assets, improve the performance, introduce more fee components or post commodity components to those assets we’re going to look at that.

So the gas business is still very important to us and its an important diversification for the Partnership, but it does come with these swings like we are seeing now and why we are having this call today which the liquids business by and large doesn't see with the structure that it has and so for investors that are looking for stability of cash flow, certainty of cash flows, the liquids business has a leg up when it comes to those kinds of attributes, so that's why we’re working on focus capital there and those opportunities that develop certainly over the near term here we've got a lot of them in front of us.

Louis Shamie - Zimmer Lucas

And then just one final question, you talked about why to maintain the investment grade rating which is obviously very important. I was just wondering what kind of metrics are you targeting there in terms of let's say debt to EBITDA or something like that, where would you like to be and kind of where are you on track to be at the end of this year on the revised guidance?

Mark Maki

Dave and Steve can you take hit on that?

Dave Wudrick

Sure Louis, its Dave Wudrick here. You know generally as we are going through these large organic growth periods with no cash flow our metrics are going to be strained, but given the certainty associated with the commercial arrangements, we are able to be fairly transparent in relation to the recovery.

So I would say as we go through the build out period, the debt to EBITDA will be in sort of the 4.8% to 5.0% range. Ideally, we would like to target something closer to 4% and once we get these projects into service and start generating the cash flow that ultimately will be the target.

Operator

(Operator Instructions) We have a follow-up question from the line of Mark Reichman. Please proceed.

Mark Reichman - Simmons

I just want to follow-up on Louis's question. In terms of the capital budget reduction, I mean you have a pretty significant amount of investment that needs to be funded this year. Are you just purely looking to cut your funding requirements in which case you maybe have a little less regard for prioritizing the returns of projects, I mean maybe you've already committed some projects that may produce a lesser return than the ones you are entertaining not funding at the present time or is it purely an economic decision where the commodity prices have slid such that now the economics of some of these projects don't look so attractive and then I guess the follow-up on that could you provide some specifics in terms of how much investment you think you can cut and which projects those in bulk whether it’s the East Texas expansion you know in the Haynesville, etcetera.

Dave Wudrick

Okay, Mark just specifics, really we allocate a certain amount of capital each year to gas business in relation to just the step outs and so forth and so we will be looking at some of that capital to be trimmed. I will look to Steve for numbers in a minute but maybe something we need to take to the July call or later in July call. With respect to how do gas projects look, there are those projects that are basically commodity based and so the returns that have come in on those but they still maybe attractive, it's just the relative spread say to across the capital or spread to a liquids project may not be motivating enough to want to chase it, because the project comes with as we are saying some volatility or variability.

And we are probably better served or we are better served by directing capital to projects that have highly certain cash flows no matter what the commodity price environment it happens to be. And so it’s an allocation of resources response and as far as other examples we are deferring some capital in the hand and so that’s really a function of level of activity in the area given what dry gas prices are.

And those projects can be ramped up down the road when activity levels pick up and gas prices do come back. So in terms of dollars I guess I'll look to Steve and if it’s not something we can take today Mark will get to that question later on in July. But Steve can you add additional color.

Steve Neyland

Yeah, hey Mark I do not have any specific numbers to bring forward at this time although I would emphasize that the projects we are talking about modification and capital projects that are under construction or where we have commitments already in place obviously we are going to honor those commitments and complete those projects, so it’s not a function of that, it’s a function of as Mark noted we have in our capital budgeting dollars set aside for step outs and other build outs that are in process and so that’s the place where we would look to moderate our capital spend on a go forward basis.

Dave Wudrick

That’s Mark otherwise because as we mentioned we have a long range plan and as part of that plan we'll have projects that we haven't necessarily identified to the outside world just yet that maybe part of that, and also a few things that we're looking at trimming as well.

Operator

Your next question comes from the line of Ted Hayden with Point State Capital. Please proceed.

Ted Hayden - Point State Capital

Good morning, just a follow-up on Sharon's question. I apologize to ask you again. But just on volumes in the Anadarko, you said it was timing related. And I just wanted to be clear that is this timing related associated to by the fire and the start-up of some NGL takeaway capacity, not from an expectation that volumes being produced in the region are lower than what you expected?

Mark Maki

Yeah, I don't think there was a fire. I think we had a well blow at that facility. There was no fire. But the -- if I we are to look at a graph where NGL volumes are year-in and year-out and it's basically behind where we thought it would be at this particular point in time. But we do expect that the gap there is going to close over the course of the year.

I don't recall if we get exactly to where we thought we'd be at the end of the year, but it's trending that way. The reason for that is activity levels again in the area are robust. There's people pursuing different zones with good success. So fundamentally, we don't feel there's something going on in the area that's pointing towards drop in activity levels. I think it's actually the contrary.

Ted Hayden - Point State Capital

And then just on the questions regarding the CapEx and how you may be dialing some of the CapEx back on the gas side, it sounds like that's coming more from the drier gas basins like the Haynesville and not any plans to dial back CapEx in the wetter regions given the pullback in NGL prices?

Mark Maki

Yeah, despite that where the NGL prices are pulled back to, they're still very attractive. If you get to Bellevue and get Bellevue pricing, it's still very attractive. It was more attractive back in January or December last year. But that's really where we'd be looking to dial back first, the dry gas area.

Operator

Your next question comes from the line of John Edwards with Credit Suisse. Please proceed.

John Edwards - Credit Suisse

Yeah, good morning, everybody. Just it seems like everyone is asking on the CapEx side and so I guess I'm going to chime in as well. Just in terms of the way we would be thinking going forward, should we be thinking maybe as a percentage of your total CapEx budget going forward, what kind of dial back should we -- what's the range like? 10% or 15% or something like that, or maybe you can give us some ranges on that, if you could? That's all I had.

Mark Maki

I think, John, we're pretty modest as it relates to overall capital budget, given the capital budget is really large this year and next. There's also, of course as we go through the forecast, that we'll be looking at timing and timing maybe be shifting around some of the projects. And so, I think I'd like to really avoid the details on this one until we get to the end of the month, if we could.

Operator

At this time, there are no additional questions. I'd like to turn the call over for closing remarks.

Mark Maki

Sanjay, do you want to close this over?

Sanjay Lad

Yes. Well, I appreciate everyone for joining us for today's call. And I will be available after today's call to fill any follow-up questions. Thank you.

Operator

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a great day.

Mark Maki

Thank you.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!