Atlas Pipeline Partners' CEO Discusses Q3 2012 Results - Earnings Call Transcript

Oct.31.12 | About: Atlas Pipeline (APL)

Atlas Pipeline Partners, L.P. (NYSE:APL)

Q3 2012 Earnings Call

October 31, 2012 10:00 AM ET

Executives

Matthew Skelly – Head, IR

Gene Dubay – President and CEO

Pat McDonie – SVP and COO

Tery Karlovich – CFO

Analysts

Ben Wyatt – Stephens

James Spicer – Wells Fargo

Sharon Lui – Wells Fargo

Derek Walker – Bank of America

Helen Ryoo – Barclays

Operator

Good day, ladies and gentlemen and welcome to the Third Quarter 2012 Atlas Pipeline Partners’ Earnings Conference Call. My name is Karris, and I will be your coordinator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. (Operator Instructions)

As a reminder, this call is being recorded for replay purposes. And I would now like to hand the call over to your host for today, Mr. Matt Skelly, Head of Investor Relations. Please proceed, sir.

Matthew Skelly

Thank you very much. Good morning, and thank you for joining us on today’s third quarter 2012 earnings call. Before management team provides comments on our third quarters’ results, I’d like to remind everyone of the following Safe Harbor provision.

During this conference call, we may make certain forward-looking statements that is statements related to future, and not past events. In this context, forward-looking statements often address are expected future business and financial performance and financial condition and often contain words such as expect, anticipate, intend, believe, and similar words or phrases.

Forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected in the forward-looking statements. We discuss these risks in our quarterly report on Form 10-Q and our annual report on Form 10-K, particularly in Item one. I would like to caution you not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof.

The company undertakes no obligations to publicly update our forward-looking statements, or to publicly release the results of any revisions to forward-looking statements, which may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.

Lastly, management’s discussion this morning includes references to such items as adjusted EBITDA and distributable cash flow, which represent non-GAAP measures. A reconciliation of these non-GAAP measures is provided in the financial tables of our quarterly earnings release as well as our Form 10-Q.

With that, I will turn the call over to our Chief Executive Officer, Gene Dubay, for his remarks. Gene?

Gene Dubay

Thank you, Matt. Good morning, ladies and gentlemen, and thank you for your interest in Atlas Pipeline Partners. Atlas Pipeline is participating in a wave of new energy development, which is transforming our industry and greatly benefiting our country. The results of this resurgence are illustrated by our operations in the third quarter. The volumes of gas produced have continued to increase across all of our operating areas. We completed the new plant at Waynoka, which added 200 billion cubic feet per day of capacity to our WestOK system. We now have approximately 860 million cubic feet per day of processing capacity online.

Our third quarter volumes, our gathered volumes in the quarter were at 860 million cubic feet per day, up from 621 million cubic feet per day in the third quarter of last year, an increase of 25% from the prior year. However, the industry and Atlas Pipeline are continuing to play catch up.

Our liquids production has been constrained at WestOK and West Texas by a lack of pipeline takeaway capacity. But we believe that the DCP pipelines are on track to be completed by the second quarter of 2013. The completion of these pipelines will allow us to maximize the production of our liquids. We have begun the construction of our new Driver plant in West Texas. And we anticipate that it will be completed in the first quarter of 2013. The addition of this plan will add another 200 million cubic feet per day of processing capacity in West Texas.

Our total processing capacity will exceed 1 BCF per day with the completion of this plan. We continue to hedge our production forward in an effort to reduce our commodity sensitivity and stabilize our distribution. Our balance sheet is strong. We refinanced $325 million in our revolving credit facility in the quarter and ended the quarter with over $500 million in liquidity. The producer activity around our systems continues unabated. We are fortunate to operate in the states; Texas, Oklahoma and Kansas that have supported the energy industry in the development of the energy resource in responsible manner with strong oversight.

As we look ahead to the next two quarters, we expect to see the results in line with or incrementally better than those results of the third quarter. And then we anticipated significant lift to margin upon completion of the DCP pipelines in 2013. We are pleased with the progress of our business and we will endeavor to build on the success that we have experienced the last couple of years.

Today, Trey Karlovich, our Chief Financial Officer will speak in greater detail to our financial results and Pat McDonie, our Chief Operating Officer will speak to our operating results. We also have with us today, Denny Latham, our Vice President in Charge of West Texas Operations. Denny is available to answer questions after our prepared remarks. I think that hearing from the individual most involved on a daily basis with West Texas will provide you with insight as to the energy and excitement being experienced in our field operations.

With that, Pat, you have the floor.

Pat McDonie

Thanks, Gene, and good morning everyone. As a result of the unabated producer activity around our systems that Gene mentioned, gathered volumes in the third quarter increased 11% to 860 million cubic feet a day. Despite the significant increase in gathered volumes, liquids production decreased 8% as compared to the second quarter. The decrease in liquids production was primarily due to constraints in fractionation capacity at Mont Belvieu, which have subsequently been resolved.

We have already experienced relief in October, but we will continue to be restricted in our ability to fully process our inlet gas volumes until additional liquids takeaway capacity becomes available in the second quarter of 2013. This continued producer activity is enabling us to invest additional capital to expand the infrastructure around our existing processing facilities and consequently, provide attractive returns to our unit holders. We remain optimistic about the future organic growth projects in all three of our core asset areas.

At WestOK, we have 41 rigs running behind the system, and during the third quarter, we connected 124 wells, an 8% increase from the prior quarter. This increase in producer activity resulted in a 20% increase in gathered volumes over the previous quarter.

The big news in our WestOK area is that during the quarter, we completed the installation and commenced operations of our new 200 million a day cryogenic plant at the Waynoka site. The addition of this plant increases the WestOK nameplate processing capacity to approximately 458 million cubic feet a day. We are currently processing 370 million cubic feet a day, offloading another 25 million cubic feet a day and bypassing another 15 million cubic feet a day. That equates to a utilization rate of the WestOK system of 89%.

We continue to operate in partial ethane rejection and expect to do so until the start up of DCP Southern Hills NGL line which will provide additional NGL takeaway capacity. We anticipate start up to be early second quarter 2013.

At Velma, there are currently 12 rigs working behind our system and during the third quarter, gathered volumes remain flat. We connected 7 wells during the quarter, but as a reminder, we receive a significant portion of our new production on this system from behind existing central delivery points. On our last call, we mentioned that we had begun processing volumes at our new 60 million a day cryo facility built to accommodate our long-term fee-based agreement with XTO Energy, Inc., a subsidiary of Exxon Mobil.

At that time we expected the capacity to be fully utilized by the end of this year. XTO remains extremely active in the area, but we do not expect full utilization of the 60 million a day of capacity until sometime in the first quarter of 2013.

At WestTX, we have 61 rigs dedicated to the system, and we realized an 8% increase in gathered volumes over the previous quarter. This growth was mainly due to increased volumes through existing delivery points as a result of producer infill drilling and recompletions.

As of the end of the third quarter, the WestTX system was utilizing a 101% of the total 255 million cubic feet a day nameplate capacity. Liquid production fell 13% in the third quarter due to a declared (inaudible) event at a third-party fractionator, which cause them to operate at a reduced capacity. The fractionators’ downtime resulted in our systems being placed on a reduced NGL allocation and caused us to operate in ethane rejection.

During October, our NGL allocation was returned to normal. For the remainder of the year, we expect the WestTX facility will operate in partial ethane rejection due to transportation and fractionation limitations. As third-party transportation and fractionation projects are completed in 2013, we expect to return for ethane recovery. With the expected continued increase in volumes, construction of the new Driver plant remains a priority.

The first phase of construction of the Driver plant, which will increase processing capacity by 100 million cubic feet a day, is progressing on schedule and is expected to be in service in the first quarter of 2013. The second phase, which will increase the plant’s capacity to 200 million cubic feet a day, will be operational as dictated by the growth in the inlet volumes, which to date continues to move forward.

With respect to our remaining facilities, transported volumes on West Texas pipeline, which we jointly own with Chevron averaged approximately 256,000 barrels a day. We gathered 8.3 million cubic feet a day on our Tennessee system and the APL Barnett system gathered 22.8 million cubic feet a day. All three of these facilities generate stable earnings under fixed fee arrangements and have very little capital requirements. That concludes my remarks and I’ll now turn the call over to Trey Karlovich.

Tery Karlovich

Thanks, Pat. We are very pleased with our financial results and part of our achievements during this quarter. As mentioned by Pat and Gene, we successfully brought out our new 200 million a day cryo plant in Western Oklahoma, and each of our facilities had record gathered volumes during the quarter.

We also completed a $325 million senior note issuance and established a continuing offering program both of which will enable us to fund our future growth projects and maintain our strong balance sheet structure through 2013 and beyond.

We continue to add to our risk management portfolio during the quarter including putting on positions into 2015. We recently announced our quarterly distribution of $0.57 per unit, a $0.01 increase from last quarter and a 6% increase over our distribution in the same quarter last year. We are able to increase our distribution with coverage at about 1.14 times for the current quarter. As we have continuously communicated, we have looked to maximize our distribution while maintaining adequate distribution coverage over the next few quarters as we await NGL takeaway capacity on our WestOK and WestTX systems.

Our quarterly results are in line with the guidance we issued for the year. And we currently do not expect any material changes to those expectations in spite of the lower than forecasted commodity prices. Our volumes and growth opportunities continue to exceed our previous expectations and our hedge position has provided additional support to lower than forecasted NGL prices.

Our balance sheet remains very strong with leverage of 3.8 times, and we believe we have an enviable risk management portfolio. As I mentioned during the quarter, we completed a senior notes offering for $325 million with what we believe was a very good interest rate at 6.58%. In conjunction with this offering, our unsecured credit rating was increased by Moody’s to B2 and S&P confirmed our current rating of B.

Our corporate family rating remained unchanged to both agencies. The proceeds from this operation were used to pay down borrowings on our revolving credit facility, and we had a $520 million of liquidity as of the end of the quarter. This transaction is a further indicator that we will continue to maintain a strong balance sheet and adequate liquidity as we pursue new opportunities to grow our business.

Covering the financial highlights for the quarter, our adjusted EBITDA for the quarter was approximately $55.9 million, an increase of 14% compared to the second quarter and 13% better than the third quarter last year. Distributable cash flow was $37.6 million, a 15% increase from last quarter and about 1% higher than the same period last year.

As we have discussed, key factors in the current period include further increases in gathered and processed volumes offset by the impact of restricted liquids takeaway including approximately 20% reduction of WestTX facility due to continued issues at a third-party downstream infraction and continued lower NGL prices.

Liquids takeaway restrains and low price of ethane during the period resulted in our WestOK and WestTX facilities operate in ethane rejection during most of the quarter. We had weighted average NGL prices during the quarter of $0.87 per gallon. This is compared to the prior year quarter average of a $1.27 per gallon, and over 31% decline in NGL prices. The price decline was mitigated by our hedge positions, which provided a $2.5 million benefit to distributable cash flow for this quarter.

Despite continued low NGL prices, our unhedged gross margin was about $68.7 million for the quarter, compared to $60.8 million for the second quarter of this year. A summary of our volumes and prices was included in the earnings release that went out yesterday.

Plant operating expenses of $15.2 million, and G&A cost of $8.5 million, excluding non-cash comp remained in line with our expectations and our guidance. Interest expense totaled $9.7 million this quarter, a slight increase to prior quarter, but also in line with expectations. We expect our interest cost to increase slightly going forward as we have completed certain projects and termed out a portion of our revolver with unsecured debt.

Our maintenance capital expenditures totaled approximately $4.7 million this quarter, which is above were we expected it. Looking in our balance sheet, we had debt to total capital of about 39%, and debt to adjusted EBITDA 3.8 times, both below our maximum thresholds. As we have continually communicated, we expect our overall leverage to peak around 4 times through our construction program and assuming status quo operations for to be around 3.5 times soon after NGL takeaway projects come online, and our expansion begin generating strong cash flows.

As I mentioned, our liquidity at the end of the quarter was approximately $520 million. We spent approximately $91 million this quarter on growth capital, primarily related to our new processing plant expansions on our WestOK and WestTX facilities. We have incurred approximately $266 million of growth capital and acquisitions this year, which is funded a very compelling list of projects including completion of two new processing plants, down payments and construction of another plan, two acquisitions, and significant infrastructure expansions on each of our systems. Once all of our projects are completed, our processing capacity will be almost 1.1 BCF per day, almost double our processing capacity at the beginning of this year.

As Gene and I mentioned, we added to our risk management portfolio during the quarter, which was a $2.5 million net benefit to distributable cash flow and it was in an asset position of about $43 million at September 30.

Our projected margins in cash flow excluding ethane for the remainder of 2012 are approximately 74% protected. We are 76% protected in 2013, as well as being approximately 37% protected in 2014. We have recently begun adding positions into 2015 as well.

As a reminder, our targeted risk management levels are up to 80% for 12 months, up to 50% for 24 months out, and up to 25% for 36 months out. So we are in line with our targets. We believe our portfolio and targets provide us with the protection we need, yet allow for potential upside should commodity prices increase. We expect to continue to add to our portfolio as we elongate our book. As a reminder, a copy of our hedge portfolio is included in the earnings release we put out yesterday.

In closing, we are pleased with our results for the current quarter and look forward to continuing our growth going forward. Our producer customers continue to deliver strong results in our operating areas and volumes continue to increase. We believe our balance sheet remains strong in our price risk management, objectives are being attained. We increased our distribution this quarter to what we believe is at the least a very sustainable level in the short-term and look forward to more meaningful increases in our distributable cash flow once all of our new facilities are online and NGL takeaway and fractionation infrastructure is complete.

I will now turn the call back over to Gene for any closing remarks.

Gene Dubay

Thank you again for your participation. We believe that the results of the past quarter are good, but we will endeavor to improve upon those results as we move forward. We are excited to be involved in the energy business in these exciting times, and we are pleased to be a part of the Atlas Energy family of companies developing this energy resource. Thank you. I think we are now ready for questions

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line Ben Wyatt with Stephens. Please proceed.

Ben Wyatt – Stephens

Good morning, guys.

Gene Dubay

Good morning.

Pat McDonie

Good morning, Ben.

Ben Wyatt – Stephens

Hey, just quick question, Trey, I hope I didn’t miss this, but you talked a little about, a little bit about growth, CapEx, the maintenance CapEx may be coming in a little lighter than I’d expected. Should we see a bump in the fourth quarter or it’s kind of that $4 million to $4.5 million, is that a good number?

Trey Karlovich

Maintenance capital, we estimated between about $4 million and $5 million per quarter. We are a little light in the second quarter. We are right about where we thought we would be in the third quarter.

Ben Wyatt – Stephens

Okay, so no jump or anything. I think you guys were talking $19 million to $20 million for four years. So, okay, that’s good. And then, I know a lot of good things are happening on West Texas, but just curious if you guys have had any dealings or gathering lines extended out (inaudible) maybe the Kiowa counties and this Northwestern Miss Lime where a lot of the new drillings happening. And if so, what you’re seeing? Is higher BTU gas or you’re just seeing more of the same? Do you have any commentary on what’s happening that way?

Gene Dubay

When you say the Kiowa counties et cetera, that’s Oklahoma, which is outside of the WestTX area. Are you speaking more in relationship to the WestOK area?

Ben Wyatt – Stephens

Yeah, WestOK, I’m sorry, yeah. So as you move northwest, what kind of the new drilling that’s happening with SandRidge and some of those gas within Miss Lime. Are you guys seeing anything new on – are you seeing more of the same, is there any uplift in the gas, higher BTU gas or anything like that as you move northwest?

Gene Dubay

It’s really more of the same. We’re not seeing any incremental difference in what they are accomplishing up there as they are in the other areas, so we are dealing with them.

Ben Wyatt – Stephens

All right, very good. I appreciate it.

Operator

And your next question comes from the line of James Spicer of Wells Fargo. Please proceed.

James Spicer – Wells Fargo

Hi, good morning.

Gene Dubay

James.

James Spicer – Wells Fargo

Got a couple of questions here for you. What do you think the financial impact of that third-party fractionator downtime in West Texas was for you during the quarter?

Trey Karlovich

James, so, what we’ve done is we’ve been rejecting ethane in West Texas. So it’s all ethane economics in order to stand our allocation. We’re not given an exact number for that, but we’ve been running that plant at about 45% ethane rejection.

James Spicer – Wells Fargo

Okay. That’s helpful. The next, wondering if you could just quickly review your remaining CapEx requirements for 2012. And what you see on the CapEx front in 2013?

Trey Karlovich

So our guidance for 2012 was CapEx between $325 million and $350 million, we expect is remain in that range for growth capital. A lot is going to depend on the speed at which we’re put it in the new Driver facility as well as some expansions on our systems. We have not given guidance yet for growth capital for 2013. We will give full guidance for 2013 on our next call.

James Spicer – Wells Fargo

Okay. And lastly, I know you have an at the market equity issuance program. And just wondering if you, what your current thoughts were on potentially tapping into that?

Trey Karlovich

So that program will be used to fund future growth capital and primarily as a mechanism to maintain our leverage. Keep our leverage like we’ve said, under 4 times with a target of 3.5 times.

James Spicer – Wells Fargo

Okay, that’s it from me. Thank you.

Operator

And your next question comes from the line of Sharon Lui of Wells Fargo. Please proceed.

Sharon Lui – Wells Fargo

Hi, good morning.

Trey Karlovich

Good morning.

Sharon Lui – Wells Fargo

Question on Velma, just your latest thoughts on a potential expansion given the high utilization?

Pat McDonie

I guess the best way to say that is, there is a lot of activity out there and it’s primarily with one producer. There is other producers in the area. As they continue to define the parameters of everything that all the positions, acreage positions they have out there will better know and understand what the potential for an incremental project is. They are adding wells or adding rigs to their rig count. They are actively drilling in some of the acreage that is undedicated that we’re particularly interested in is being drilled as we speak to kind of test and see what the results will be and to find the quality of the reservoir. So, it’s kind of a matter of time, wait and see, but probably not in the too distant future, we’ll have a better understanding of where we stand there.

Sharon Lui – Wells Fargo

Okay. That’s helpful. And also, I guess, DCP indicated that, I guess, their flowing on Sand Hills are ready, and they expect, I guess, Southern Hills the first flow to occur the first quarter of 2013. Just wondering if you guys might have the opportunity to benefit from additional takeaway before Q2?

Pat McDonie

It’s possible. The Sand Hills line is flowing Eagle Ford gas, which obviously doesn’t reach all the way into the Permian Basin. And as far as Southern Hills and start up in the first quarter, what we anticipate there will be line pack opportunities potentially in the first quarter. And if they do start up early – earlier than originally projected, obviously, we will benefit. But, we haven’t heard anything that would tell us anything has changed relative to a second quarter start up.

Sharon Lui – Wells Fargo

Okay. And then in terms of, just the last question, I think that Gene indicated that cash flow should be, I guess, higher than third quarter results going forward. Does that indicate or support the thought of resumption of distribution increases from this point on?

Gene Dubay

Sharon, this is Gene. I think what I said was, we expect the next couple of quarters, before the DCP lines are done, to be at or incrementally better. So I want to stick with that. But obviously, we – if they are incrementally better and we do have additional cash flow, we’ll look at improving the distribution if we can maintain that. So, we certainly will look that if the cash flows are better.

Sharon Lui – Wells Fargo

Okay, great. Thanks, Gene.

Gene Dubay

Thank you.

Operator

(Operator Instructions) And your next question comes from the line of Derek Walker with Bank of America. Please proceed.

Derek Walker – Bank of America

Hey, good morning, guys.

Gene Dubay

Hey, Derek.

Trey Karlovich

Derek.

Derek Walker – Bank of America

I think that most of my questions have been answered and I guess, I know you’re going to give 2013 CapEx guidance next call, but can you give a sense of kind of how you’re looking at the next opportunity set as you’re kind of winding down the current capital program to maybe more organic growth projects or you’re looking at more bolt-ons?

Trey Karlovich

Derek, this is Trey. I would say we have opportunities on each of our existing systems. We are looking at bolt-on opportunities. We’ve done some small bolt-ons on our system this year. We’ve done – like we mentioned in the Barnett acquisition, and the bolt-on in Kansas. I think those are opportunities we have in front of us. We also have opportunities to expand our current systems and the reach of some of our current systems with our existing producers. So those are some opportunities and we continue to look externally as well.

Derek Walker – Bank of America

Okay, great. Thanks, guys.

Operator

And your next question comes from the line of Helen Ryoo with Barclays. Please proceed.

Helen Ryoo – Barclays

Thank you, good morning. Just a question – starting with a clarification question. On your third party fractionation – fractionator problem, is that the one fractionator that affected both your West Texas and WestOK system in the quarter?

Pat McDonie

Yes.

Helen Ryoo – Barclays

Okay. So it’s the Mont Belvieu fractionator?

Pat McDonie

It is the Mont Belvieu fractionator. And it’s caused us issues at both our WestOK and our West Texas facilities.

Helen Ryoo – Barclays

Okay. And then the cash flow loss you had in this quarter, would that get reversed in the fourth quarter?

Trey Karlovich

We will make up some of that. Like I mentioned earlier, most of that is going to be ethane based economics at West Texas. So we’ve got an increased NGL allocation, we should be able to fill that allocation during the fourth quarter, primarily ethane related. So there should be a little bit of an uplift there. In Western Oklahoma, it’s primary a pipeline issue.

We don’t have the pipeline capacity to take out the incremental volumes. So while our plant is online, we are operating ethane rejection in Western Oklahoma as well hydrating the barrels to maximize cash flow, but we have some limitations there as well. So we are operating right now as best as we can with limitations we have downstream and we’ll try to maximize cash flows as best we can.

Helen Ryoo – Barclays

Okay, great. And then question about your leverage ratio. You mentioned 3.8 times, but then based on the terms of your credit facility, I think in the press release, it was said that it’s 3.4 times. So is that just organic project credit that makes for the difference in that calculation?

Trey Karlovich

Primarily, it’s the difference in the definition of EBITDA and our credit facility and what we use for adjusted EBITDA in our financial statements, primarily related to the project add back.

Helen Ryoo – Barclays

Okay. And then my last question is, you have, I mean, you did a bond offering at a good coupon just recently, but – are some of your bonds that have higher coupon rate, you have something above 8%, are those funds – could you buy back those funds?

Trey Karlovich

We could. They are not callable. I mean, we could do a tender offer. But they’re not callable until June of next year.

Helen Ryoo – Barclays

Okay. Both bonds – the 2006, was it a 15 and then 18...

Trey Karlovich

It’s just the 18s that are remaining.

Helen Ryoo – Barclays

Okay.

Trey Karlovich

The 8.75 notes.

Helen Ryoo – Barclays

Okay. And they’re callable after June 2013?

Trey Karlovich

Yes.

Helen Ryoo – Barclays

All right, great. Thank you very much.

Gene Dubay

Thanks, Helen.

Operator

At this time there are no further questions in queue. And I will now like to hand the call back over to Gene Dubay for closing remarks.

Gene Dubay

Thank you. We very much appreciate your interest.

Operator

And, ladies and gentlemen, that concludes today’s conference. Thank you for your participation. You may now disconnect. Have a wonderful day.

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!