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Executives

Zeke Zeringue - President and Chief Executive Officer

Steve Batchelor - Executive Vice President and Chief Operating Officer

James Hill - Chief Financial Officer

Analysts

Jason Sawatsky - AltaCorp Capital

Scott Treadwell - TD Securities

Andrew Bradford - Raymond James

Brett Reiss - Janney Montgomery Scott

Gasfrac Energy Services (OTCPK:GSFVF) Q2 2012 Earnings Call August 9, 2012 11:00 AM ET

Operator

Good morning, ladies and gentlemen, welcome to the Gasfrac Second Quarter Results Conference Call. I would now like to turn the meeting over to Mr. James Hill. Please go ahead, Mr. Hill.

James Hill

Okay. Thank you, operator, and good morning, ladies and gentlemen. I'm here with Zeke Zeringue and Steve Batchelor. I'll provide a review of the financial results for the quarter and then Zeke and Steve will discuss operations and then we will open it up for questions.

In the quarter, revenue was $16.7 million as compared to $14.2 million in the same quarter of 2011. We had 40 revenue days at an average $418,000 per day as compared to 32 at $443,000 per day. Looking at that geographically, in Canada revenue was $12 million for the quarter, similar to the $12.3 million achieved in the second quarter of 2011. We had 28 revenue days at $429,000 per average day, as compared to 24 revenue days at $513,000 in 2011.

In the US, revenues were $4.7 million as compared to $1.8 million in the same quarter of 2011. Twelve revenue days at $393,000 per day as compared to 8 revenue days at $231,000.

Looking at costs. Our operating costs are comprised of two pieces; direct cost of sales, which are directly variable with sales volumes, and direct operating costs which are about 75% fixed in nature.

Also, sales for the quarter were $10.4 million being 61.9% of revenues as compared to $8.1 million, 57.3% of revenues in 2011. Our direct operating costs were $11.3 million as compared to $7.3 million in the second quarter 2011. The increase is represented by $2.4 million for additional crews, approximately $800,000 in facility costs with added facilities and $800,000 in equipment rental costs.

Looking at those operating costs again between Canada and the US, costs of sales in Canada was $6.8 million or 56.7% of revenues compared to $7.3 million or 61.1% in 2011. Our direct costs were $7.2 million compared to $5.5 million. The increase is comprised of $1.2 million for additional crews and $300,000 of added facility costs. In the US, cost of sales were $3.5 million or 75.2% of revenues versus $600,000 or 31.6% of revenues.

The larger percentage cost of sales is largely represented by a one-time added cost for demurrage for propane in our Black Brush project. We don't expect that to continue going forward. Direct costs were $4.1 compared to $1.8 million. Again, the increase is $1.2 million for crews, approximately $500,000 added facility costs and $600,000 in equipment.

Looking to our balance sheet, we had a net draw on our credit line of $4 million as at the end of the quarter represented by a draw on the credit line of $7 million in the cash position of $3 million. Based on our trailing 12 months EBITDA as defined by the bank, we have approximately $41 million available on the credit line going forward, approximately $8 million capital commitments remain for the remainder of the year.

That said, the summary of the financials, I'll now turn it over to Zeke.

Zeke Zeringue

Yes, thank you, Jim. Good morning, everyone. I'd to begin the overall review of the second quarter results with maybe a look back when I had the opportunity to visit with everyone after about four months on the job and the May 8 call concerning our focus for the remainder for 2012 and that hasn't changed in terms of what the fundamental strategy and that was to look opportunities in particular basins that we could certainly gain critical mass because of the concentration of other operations by operators in those basins and those basins were the Permian, Niobrara, and Uttica down south and, of course, a continued emphasis on the Cardium with particular emphasis on doing the Montney and the Viking. That foundation is still in place and we are actively pursuing opportunities in those areas.

Now when we kind of go over to now come forward to the second quarter '12 results as it pertains to activity there, the big disappointment was as we set our leadership and our management team into specific accomplishments and I think we've tried to cover this adequately in the management discussion and analysis was the cancellation and I was reporting or we were reporting at the time an opportunity in the Uttica, which was one of our targeted basins, and due to circumstances not in our control, that job was cancelled, which was in the forecast a considerable portion of the forecast revenue as articulated on May 9 of the conference call.

The second disappointment, obviously, was the horizontal Eagle Ford, which it hasn't been cancelled, but it has been delayed due to operator decision based commodity prices, etc. The stream delay in the start of our bellwether customers, Husky up in the north and Black Brush really contributed to the disappointing results as it pertains to the forecast we're trying to represent to our investment people and people who are interested in our stock.

With that being said, the positives that have come out of that and we will be able to talk more about this because normally when we get into these opportunities, where (inaudible) hold or signed a confidentiality agreement was the successful implementation of the technology in the Niobrara which I mentioned earlier has been a targeted area for us and by the nature of that contract, we'll be able to share more information in the public domain about results. And I am happy to say and I have checked with the operator and we are authorized to report that we have performed our first recapture job of the propane that we used on that job, which is a significant milestone for this company as we continually that will be an integral part of our offerings to customers in the use of this technology as we go forward.

I'm also happy to report that we will be doing our first Montney horizontals in the north division, which is very significant and it meets a milestone that we set forth to us, which then, as we are able to operate and gather data as we've kind of been consistent in saying this data is so important for comparative analysis, but it certainly gives us an opportunity to broach other areas where we feel we will then be able to demonstrate the ability of this technology or compare this technology to what's currently out there.

With that, I will turn it over to Steve. If he has anything to add to my analysis at this point and then, obviously, we'll get into the specific questions the MD&A. Steve?

Steve Batchelor

Thank you, Zeke. Just to reemphasize Zeke's comments. We're focusing a lot on the growth areas in the south. There are some disappointment in the south with the well problems and getting those resolved with our customers down there and then, of course, we're dealing with unfortunate weather in the north with our kick-off Husky contract and so that's pretty much what we've been dealing with. We're manning our (inaudible). We've got seven spreads active. Right now there's three still in the south and at one time we were catching, I think at one point, we had three jobs going and we were able to man all of those crews pretty effectively using some of the personnel from the Canadian operation down south.

We seem to be getting a whole lot better on our delivery part of that and that's all very pleasing to us to see. So, with that I guess we'll open it up for questions. Jim?

Question-and-Answer Session

Operator

Thank you. (Operator instructions) The first question is from Jason Sawatsky from AltaCorp Capital. You may now proceed.

Jason Sawatsky - AltaCorp Capital

Hey, good morning, gentlemen.

Zeke Zeringue

Morning.

Jason Sawatsky - AltaCorp Capital

Just wondering with all of the marketing efforts that you guys have doing over the past few months here, and I know, Jim, you've talked about, in the past, wanting to potentially have six contracts signed up by the end of the year. So, we look at the current situation, you've got Black Brush, Husky. Do you think it's still realistic kind of looking at the back half that you could get to six contracts signed potentially by year end.

Zeke Zeringue

Yeah, Jason, this is Zeke. I don't think the six contracts are attainable for the remainder of the year, but I don't think, based on the situation we see, and I'm not wanting to compare us to what happening contractually in North America, but because of the ultimate glut of what's out there and pumping equipment, I doubt very seriously anyone will lock in to any particular long-term contract. But I don't think I mentioned, as we mentioned in the press release, the opportunity that we have established in the Niobrara. What I do see is a commitment to what would be more project oriented type work where we, for this particular cycle of activity, we see so many wells in the forecast and we like what you guys have done and we'll contract you out do that, but I think, in general, the majority of those long-term contracts that people are hearing about and seeing about in the water world are 24/7 type contracts and which is kind of considered a factory type stimulation or fracturing methodology of which, from a delivery standpoint, we just can't compete there.

The continuous improvement that we're putting into our equipment that we're able to deliver more payload I think will ultimately get us to that point, but I think when you define these contracts that are available, most of them are kind of this factory type application. But I do see very shortly the fact of us being able to be committed as I mentioned in our strategy to one particular area, such as the Niobrara.

Jason Sawatsky - AltaCorp Capital

Right. Okay. An then just circling back to some comments you'd made on the Q1 conference call. You had noted you were in discussions for a longer-term opportunity in the Permian or the Wolfcamp there, potentially a full spread. Just wondering how those discussions went or are they ongoing?

Zeke Zeringue

Well, we have worked with an operator in the Permian. We're evaluating those results and actually I will be visiting with that company upon my return to Houston and we'll give an update on that.

Jason Sawatsky - AltaCorp Capital

Okay. Great. And then just finally just wanted to know if Jim you could just tell what the utilization rates were in Canada and in the US for the quarter?

James Hill

Well, they were 8% in Canada and 7% in US.

Jason Sawatsky - AltaCorp Capital

Okay, great. Thanks, guys.

Operator

Thank you. The following question is from Scott Treadwell from TD Securities. You many now proceed.

Scott Treadwell - TD Securities

Thanks. Morning, gents. Obviously the press release had the good level of detail in it and I was interested to see that it certainly from my point of view, it looks like you're a little bit more encouraged by what the back half looks like today than you were three months ago. We're sort of six weeks maybe into the third quarter. So far operations are in line with your expectations. You're not seeing any incremental hiccups in terms of getting back to work in the field? Or if you have you're going to be playing catch up and you're still fairly confident in how things look for the back half?

Steve Batchelor

Hey, Scott. This is Steve. Yeah, we're pretty optimistic of where we are. We're getting a little-, we're still getting a little slippage on our weather issues with [Husky] up North. We're not getting that started as quickly as we want to. They're still plagued by a tremendous amount of weather up there and locations are in pretty bad shape. In the South, we're getting some traction and looks like towards the latter half of this month, we'll be back on track with this month. So I'm still encouraged that yeah, we're pretty darn close to where we ought to be.

Zeke Zeringue

And Scott, with that being said, we still are optimistic in what I think we had reported in terms of what that revenue, most of our revenue will come in the back half of Q3 and Q4. Yes, we're on track and if I have to give a range I would have to say it would due to variability. I don't want to use that as an excuse, obviously, but it has affected not only our operations, but just about anybody involved in this so-called fracking world anywhere to 100 million to 150 million for the back half of the next two quarters.

Scott Treadwell - TD Securities

Okay, great. That's good. And then you've talked about seven spreads active today and that's what you've got staffed for a very small amount left on the capital budget. Fair to assume that seven spreads is the right number for GASFRAC today and the remaining equipment will be idle until such time that demand requires it?

Zeke Zeringue

Yes. That's exactly right. Obviously when we look at our costs and what we're able to support and what the what-if's of our types of business and the variability in our business, we will conclude the remainder of this year with the ability to accrue seven spreads.

Scott Treadwell - TD Securities

Okay. Turning to the cost side. Obviously, you've pointed a lot to the incremental cost of propane being a sticker shock for your customer. Propane costs have come off pretty materially since January. I'm just wondering do you have any visibility at this point about how that's going to affect your revenue per day, your margins as you go forward? I know you've got away from the big logistics side, so maybe that opens the door for customers to supply their own fluid. But just where you see that playing out if propane price kind of stay roughly in the areas they're at?

Zeke Zeringue

Well, I think, as I mentioned, as the leadership team here, we try to put in a base strategy obviously of what we've mentioned before and then ultimately their strategies within that. And obviously, one of the distinct strategies that involves the propane has been our ability to look at this technology from A to Zed or A to Z depending on what side of the boundary you're on. And that still remains a cornerstone of that as it pertains to propane.

The announcement that I made just a few seconds ago about the ability to recapture propane was on a propane job in the Niobrara Wattenberg field where we were able to capture roughly 90% of the propane that was used on the job supplied by the customer and that particular customer was then able to sell that mix to a sales company.

So what the strategy here is to look at the life cycle of this technology as it applies to implementation for our customers. Heretofore, we would say, yes. The sticker price of propane is this. Let us continually articulate the value to you about the enhanced production and/or the increased EUR and the mentality, and I'm not saying this is a bad mentality, with the majority of these companies are reservoir exploitation. So at the end of the day, we need to get a return as quickly as we can. We've got infrastructure in place to support that.

But now we feel even more confident that we're able to look at this on a life cycle concept of the propane and be able to articulate to the customer a net back to some extent, rather than what we mentioned earlier, the sticker shock for the cost of propane. So that's a strategy within a strategy. The most important progress made to date was the recapture of propane in a propane job, from that, we'll obviously look at what kind of business opportunities that represent us. But right now we're basically using that as an enabler to illustrate to customers that we do know how to handle and represent this technology from A to Z.

Scott Treadwell - TD Securities

Okay. And in the news release as well you talked about hybrid NGLs. From the minimal amount of research I've done so far it seems like that kind of involves the ability to pump bigger stages in terms of tonnage of profit. Has that been a competitive disadvantage or a segment of the market where you'd really like to operate but couldn't until the introduction of this hybrid system? Obviously it's earlier days, but is that something that you think is going to have obviously some positive impact on customer interest?

Zeke Zeringue

There's two parts to that. And obviously, you are right. It's very early on, but it is significant as it pertains to our ability to offer options to our clients. Let's take the delivery standpoint. We get a whole bunch of inquiry about what kind of marketing do you have in place, what kind of analysis, how many sales people. And I think we alluded to the fact of bringing those types of resources on board. But again, it's always been the vision of this leadership team to give our clients options.

So in one of the in depth marketing surveys that was concluded both in North America, north and south within the divisions in North America, everybody was telling us we really like your technology. We do think you're technology has applicability in our operations but we want you to do more. And as I've been able to meet a lot of people, it's comes as somewhat of a surprise that currently we're only doing daylight operations. And because of our delivery system and that's still an applicable opportunity for us, so we were just limited to I kind of think the situations you're talking about, continuous pumping.

Well, the hybrid part of the delivery system will address that. We'll be able to deliver more sand or more stages per day. It's not so much a vision of ours to say that we have to use as much sand as currently being used, or compare it to what water fracking is, it's just that we're able to pump more stages per day which allows us to lessen the cost to our clients as we stay on a 15 stage horizontal for 15+ days. Whereas typically, those horizontals are completed if you want to do a comparative analysis within seven days in the water world. So, yes. We feel that ultimately we'll be able to provide options for those clients that want that.

On the Fluid side, obviously we see a distinct advantage in being able to, and this is what our IP is really all about, is our fluid management system. And then as we look at (inaudible) under our current our delivery system, how propane is handled, not only-, I mean if you look at where this concept, obviously here in North, a lot of the activity to be able to handle the propane is a direct result of the processing facilities that are in place up here in the North. And so therefore, propane is more readily handled here because of the deep cut nature and the transmission system already in place.

So I'm not saying we need to change that up here, but down South, in a lot of situations, we have to deal with the content of the propane as it pertains to gas transmission and the gas line. And everybody knows the problems that exist in trying to put something with the gas glut etc., etc. But this focus on NGLs allows us, or different types of NGLs, allows us to offer and to recapture in flow back situation, offers our clients a way to handle this technology, either be it propane in the recapturing bode, or in the NGL where our early tests indicate that it can be put on the oil line. So, the whole basis for the strategy are different options for our client to handle this technology.

Scott Treadwell - TD Securities

Okay, guys, thanks for the color. Appreciate it.

Operator

Thank you. the next question is from Andrew Bradford from Raymond James. Please go ahead.

Andrew Bradford - Raymond James

Thank you very much. Zeke, you went through and outlined several plays that you said that you were focusing on or that you articulated that you're focusing on back in May. And notably absent from that list was the Eagle Ford. Was that just a an error, an omission? Or did you purposefully exclude that from the list.

Zeke Zeringue

Actually, that was one of the big disappointments since we had a multi-stage horizontal lined up for an operator. The operator looked at that opportunity in light of what happened with commodity prices, and we're actually revisiting that client as we speak. So, yeah. I am remiss in admitting. That's still an obviously a goal of ours is to do a multi-stage horizontal in the Eagle Ford.

Steve Batchelor

Andrew, if I may, this is Steve. We're very active in the area that the Eagle Ford is in. You kind of used the terminology Eagle Ford. Well, that's geographically south Texas, okay? So, yeah. We're active in south Texas. We're just not as active in the Eagle Ford formation. We're more active in more of the San Miguel, the Buda, and some of those.

Andrew Bradford - Raymond James

Buda, yeah. Okay. Fair enough. What did your customer there not see in commodity prices given the Eagle Ford's one of the truly hot plays?

Zeke Zeringue

I think it had to do with the pricing pressure in terms of comparative analysis to what that customer could do the job for as compared to a propane frac.

Andrew Bradford - Raymond James

So, you think they proceeded, but just with more conventional approaches.

Steve Batchelor

Sorry, say that again, Andrew. I missed it.

Andrew Bradford - Raymond James

Do you think they proceeded with their program using conventional fracturing?

Steve Batchelor

I think they're continuing to use conventional fracturing, but they were willing to try this. Also, just to keep in mind this job was scheduled to go at about that time oil prices began to drop rapidly.

Andrew Bradford - Raymond James

Right.

Steve Batchelor

And that's when they pulled in. We're still in conversations with them. They still want to do it. We're going back to them. Of course, oil prices are kind of reviving themselves a little bit, so we still intend to do something there.

Andrew Bradford - Raymond James

Okay. Just a broad question here. Because you are looking at a lot of different plays, I'm kind of curious as to given you've been I think its nine months now or so, Zeke and Steve, do you still think that the approach of trying to tackle many different plays or a fairly large selection of plays or regions at once, what do you think of the merit of that versus an alternative, which would have to be a bit more focused on a fewer number of plays?

Zeke Zeringue

It's kind of like, and, Andrew, don't take this response, remember we only had three sets of equipment. We still only have three sets of equipment and with Black Brush occupying one of those, I don't think the perception, if the perception is tackling many bases, but I think the strategy was, as I mentioned early in the Niobrara, lets get in there. Everybody's going to watch what everybody else is doing and then that ultimately can be a base of operations for us in which we can deal with the critical mass there.

It was no secret and we alluded to it that we were running all over the United States. Fortunately, when you want to look at that we mentioned that we did other formations also, but I think the opportunity for us to get the perception of the utilization that we want are going to be best served as we're able to build a foothold in those types of basins where there is a large percentage of activity going on.

So, yes, we're still going to stick with that because, I mean, that's where we feel we can get the best opportunities for the equipment and the technology.

Steve Batchelor

And, Andrew, I might say as well, as far as these different basins, we're just now beginning to learn more about now the formations respond to our technology the best. So we're focusing in. I mean, like Zeke said, we keep a spread busy most of the time in South Texas operating in several formations. We keep one tied up most of the time in the Niobrara and then we have a third one that floats around from Nebraska to Wyoming to wherever.

So what we're learning; how the formations are responding. So are our customers learning the same. As we focus in on that naturally we'll focus in on those formations.

Andrew Bradford - Raymond James

Okay. Okay. Also in your prefaced remarks, Zeke, you mentioned Uttica was a particular disappointment. My understanding, back in May, that that was just a couple of wells that you were looking at, but you thought it was going to be program than that.

Steve Batchelor

This is Steve. It started off a couple of wells and that was with the performance wells and we had really looked at this formation and how we could effect that and which was all very favorable. So if the two wells responded as we had predicted they would, it was a long-term contract for many, many wells.

Andrew Bradford - Raymond James

But you didn't get the two wells going, so the door slammed shut. Is that how it played out?

Steve Batchelor

That's correct.

Zeke Zeringue

That's it and we had went as far as safety, operational review, MSAs in place and, again, I obviously can't mention that client, but its an unfortunate situation, but it is what it is.

Steve Batchelor

But I will say, Andrew, those two wells are still there. They're just changing ownership, if you will. So we're trying to shift with that.

Andrew Bradford - Raymond James

Okay. Question for anyone who can provide it. What sort of, okay, you were 7% utilization in the Lower 48 in the second quarter. Where were you in July?

Zeke Zeringue

In July I think it was, waiting for (inaudible), I'd have to look it up, Andrew. I don't have it right in front of me.

Andrew Bradford - Raymond James

Say roughly 20%?

Steve Batchelor

It began to pick up significantly in July.

Andrew Bradford - Raymond James

So your revenue run rate in July is roughly three times what it was throughout the quarter. Is that about... does that sound about right?

Zeke Zeringue

Andrew?

Andrew Bradford - Raymond James

Yes?

Zeke Zeringue

Okay. Yes, I said yes.

Andrew Bradford - Raymond James

Okay. Sorry, I didn't hear the answer.

Zeke Zeringue

Oh, I'm sorry. Yes, we're just sitting here, yes.

Andrew Bradford - Raymond James

It might have been that my headset died. The last question and I promise and then I'll leave you alone. Okay so you've articulated that the second half is going to be meaningfully different, but from here it sort of sounds like it still pieces need to fall into place that quite fallen yet. Not much different than say back in May. So what is it today that has bolstered your confidence that these adoption rates that you've been discussing are going to materialize fairly quickly here? What has changed?

Steve Batchelor

Andrew, it's Steve. There's probably three things that I can just say we've made some significant changes in some of our personnel and leadership in the south. And we've also beefed up, considerably, our sales force in the south. With that said, we expect that things... we're beginning to see good things from that effort. There's an awareness that Zeke mentioned that we're trying to get more and more awareness out there. More and more sales calls and we've also beefed up our technical confidence with the engineering group that we're seeing some good results from both the north and the south. So that's what we're seeing.

And what this does is it gives us an opportunity when we start seeing this, I guess, drop in commodity prices, it's interesting when you have a new technology that nobody wants to hear about, when they're so busy they can't take the time to listen, but now they've got some time and it's like who are those guys? So lets see, we get calls on a daily basis about can you come talk to us about it. So we're seeing more and more interest in the technology.

Andrew Bradford - Raymond James

So, incoming calls.

Steve Batchelor

A lot of incoming calls, yes.

Andrew Bradford - Raymond James

Okay. Okay. I'm sorry, I lied. I have one more question. You said you culminated a program with a customer in July in the Niobrara. Jim, has the revenue run rate slowed since then?

James Hill

Marginally, but I think the expectation is that that customer is going to pick up again.

Andrew Bradford - Raymond James

What sort of confidence level do you have in that?

James Hill

Good.

Andrew Bradford - Raymond James

Okay. Okay. I appreciate your indulging my questions. Thank you very much.

Zeke Zeringue

Thank you, Andrew.

Operator

Thank you. The following question is from Brett Reiss from Janney Montgomery Scott. Please go ahead.

Brett Reiss - Janney Montgomery Scott

Morning, gentlemen.

Steve Batchelor

Morning.

Brett Reiss - Janney Montgomery Scott

Could you walk us through the arithmetic on how you have available on the bank line of credit, the $41 million?

James Hill

It's based on the trailing 12 months EBITDA, Brett.

Brett Reiss - Janney Montgomery Scott

Okay.

James Hill

About $13.8 million, I believe. I don't have the exactly in front of me. The bank will find it somewhat differently than in the financial statements, but that's the basis of it.

Brett Reiss - Janney Montgomery Scott

Okay. What was the EBITDA this quarter?

James Hill

The EBITDA was -$10 million.

Brett Reiss - Janney Montgomery Scott

Okay. So, when you report next quarter, the fact that this was a very weak EBITDA quarter, what will the availability be the next quarter?

James Hill

I expect the availability will be similar. Obviously that third quarter of 2011 falls off and we add this quarter. So it will be similar and perhaps marginally less.

Brett Reiss - Janney Montgomery Scott

But that's the way it works each quarter, it's aged an additional quarter and depending on what the results are, it just kind of chronologically gets baked into the pie?

James Hill

That's correct. Again, it's based on the trailing 12 months is what they refer to. So the trailing we months at the end of each quarter is the basis of the availability going forward.

Brett Reiss - Janney Montgomery Scott

Okay. I appreciate it. Thank you.

Operator

Thank you. (Operator instructions) The following question is from Richard A. Durrett. You may now proceed.

Richard Durrett

Good morning, gentlemen.

Zeke Zeringue

Good morning.

Richard Durrett

I'd appreciate a comment on the future solvency of the corporation.

James Hill

Richard, it's Jim.

Richard Durrett

Hi, Jim.

James Hill

We just talked about the bank line and as I look forward in terms our use of cash, if you will, we've got about $8 million remaining on our capital spend, so we don't have any capital expenditures beyond that. So, effectively, our anticipated cash flows will pay for that capital in the second half of the year.

The draws on the line of credit are going to, therefore, tend to be based on our increased revenues. And, as such, we're going to increase our receivables and to fund that working capital we're going to have to draw on the line of credit. I don't foresee, based on what I'm looking at any point in time at which our raws are in excess of credit or in excess of our account receivable rather. Will it get tight on the covenant, I think its possible, but again there's a lot of asset back there. So that's something that would be discussed with the bank as we go forward with this renewal.

Richard Durrett

Well, hopefully, the utilization will take care of that, Jim.

James Hill

Yeah, of course. I mean that's the primary solution. You're absolutely right.

Richard Durrett

Thank you very much.

Operator

Thank you. This concludes today's Question-and-Answer Session. I would now like to turn the meeting back over to Mr. Zeringue.

Zeke Zeringue

Yes, thank you, operator. I want to thank everybody for their interest and their questions. Obviously, as we discuss and have the opportunity to discuss what we talked about today from an adoption, nuances in the technology, we'll make those opportunities available in the matter in which we can. I want to thank everybody today.

Operator

Thank you. The conference has now ended. Please disconnect your lines at this time. Thank you for your participation.

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