NuStar Energy L.P.

Good day and thank you for standing by. Welcome to the New Star Energy fourth quarter 2022 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press Star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star 1-1 again. I would now like to hand the conference over to your speaker today, Pam Schmidt, Vice President, Investor Relations. You may begin.

Good morning and welcome to today's call. On the call today are New Star Energy LP's Chairman and CEO, Brad Barron, our Executive Vice President and CFO, Tom Shove, and our Executive Vice President of Business Development and Engineering, Danny Oliver, as well as other members of our management team. Before we get started, we would like to remind you that during the course of this call, New Star Management will make statements about our current views concerning the future performance of New Star that are forward-looking statements. These statements are subject to the various risks, uncertainties, and assumptions described in our filings with the Securities and Exchange Commission. Actual results may differ materially from those described in the forward-looking statements. During the course of this call, we will also refer to certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to GAAP measures. Reconciliations of certain of these non-GAAP financial measures to US GAAP may be found in our earnings press release, and if applicable, additional reconciliations may be located on the financials page of the investor section of our website at NewStarEnergy.com. With that, I will turn the call over to Brad.

Good morning. Thank you all for joining us today. I'm excited to tell you about our great fourth quarter and solid performance for full year 2022, as well as our positive outlook for 2023 and beyond. Let's get started with a few highlights from our fourth quarter 2022 results. We generated $197 million of total adjusted EBITDA in the fourth quarter, 16% higher than adjusted EBITDA in the fourth quarter of 21, and the highest fourth quarter in NewSTAR's history. Our pipeline segment EBITDA was up in the fourth quarter by 18% over the same period in 21, thanks in large part to the continued strong performance of our Permian crude system. Our Permian systems volumes hit another high in the fourth quarter. handing in a record-breaking average of 584,000 barrels per day. That's up 13% over the same quarter last year. Our mid-continent refined product systems once again delivered a solid, dependable revenue contribution in the fourth quarter of 22. In South Texas, we're pleased that our Corpus Christi crude system throughputs averaged over 368,000 barrels per day in the fourth quarter, which is above our MVCs for that system and 8% higher than our third quarter volumes. We're also encouraged by the continued improvement we saw in January on that system, as our average volumes rose to almost 400,000 barrels per day last month. Our fuels marketing segment also had a great fourth quarter, generating $12 million of EBITDA, up $7 million over the fourth quarter of 2021. With that, a few observations about 2022 before I turn it over to Tom. 2022's historic inflation and volatility made for a bumpy ride around the globe and across financial markets. Given that economic context, I'm particularly proud of our 2022 results, which demonstrate once again the stability and strength of New Star's business. Our 2022 revenue was up from growth in our Permian crude system, growth in our West Coast renewables network, the positive impact of indexation, the outperformance of our fuels marketing segment, and the steady, solid revenue contribution from our refined product systems. We generated higher adjusted full-year EBITDA for 2022 through a combination of revenue improvement and expense optimization, which helped mitigate some of the impact of 2022's historic inflation. And by continuing to high grade our capital spending program, we were once again able to self-fund our business, including our capital spending and our growth footprint in the Permian and on the West Coast. Through optimization and careful planning over the course of 2022, we were able to meaningfully reduce our leverage, which positioned us to get a head start on kicking off our plan to simplify our capital structure. And in November, we were able to repurchase about one-third of our Series D preferred units, while keeping our debt-to-EBITDA ratio under four times per year in 2022. We're now planning to redeem the remaining Series D units in 2023 and 2024, which is about two years ahead of our original schedule. I'm also proud that in 2022, once again, New Star outperformed our industry in terms of safety stewardship, With a total recordable injury rate, or TRIR, it was 13 times better than the bulk terminal industry and twice as good as the pipeline industry as a whole. And then we published our second sustainability report, which provides more information about the culture of responsibility that has distinguished NuSTAR throughout our history. And with that, I'll turn the call over to Tom.

Thanks, Brad, and good morning, everyone. As Brad mentioned, our fourth quarter adjusted EBITDA was up 28 million or 16% over the fourth quarter of 2021. Our fourth quarter 2022 adjusted DCF was 89 million, and our adjusted distribution coverage ratio was 2.01 times. Turning to our segments, in the fourth quarter of 22, our pipeline segment generated 176 million of EBITDA. up 27 million or 18% over fourth quarter 21 EBITDA of 149 million, largely from a strong performance of our Permian crude system as Brad described earlier. Higher contributions from our Permian crude system were complemented by higher results from our McKee system pipelines and our refined products pipelines. Turning next to our storage segment, Our EBITDA for fourth quarter 22 was $41 million, which is about $6 million lower than fourth quarter 21 EBITDA. That decrease was due to customer transitions and required tank maintenance at our St. James Terminal and an amendment and extension of our customer contract at our Corpus Christi North Beach Terminal. Our West Coast region's revenues continue to grow, driven in a large part by our West Coast renewable strategy, up 20% over fourth quarter 21. And for our fuels marketing segment, EBITDA was $12 million, up $7 million from fourth quarter 21, largely due to stronger margins. I'm also pleased to report on our continued progress in reducing our debt and building our financial strength and flexibility. We ended fourth quarter 22 with a debt to EBITDA ratio of 3.98 times. At the end of the fourth quarter 22, our total debt balance was $3.3 billion, and a revolver availability is over $775 million of the facility's $1 billion capacity. Moving now to our outlook for 2023. For full year, we expect to generate EBITDA on the range of $700 to $760 million, and we plan to spend $130 to $150 million on strategic capital in 2023. We expect to allocate about $60 million to growing our Permian system And we plan to spend about $25 million to expand our West Coast Renewables Fuels Network. Turning to reliability capital, we now expect to spend between $25 and $35 million on reliability in 2023. And now I'll turn the call back over to Brad.

Thanks, Tom. As I mentioned, our optimization in 2022 was integral to New Star Solid results and it facilitated an important first step to improve our capital structure last year. Optimizing our business and maximizing our free cash flows in 2022 was more than a one and done effort. By systematically scrutinizing every dollar of spending, we've been able to significantly increase our cash flow with systematic changes that will continue to reap benefits in 2023, but also in 2024 and beyond. And by investing that increased cash flow in our growth footprint, we're already on the path to compounding those benefits. With the EBITDA growth we expect from organic capital projects on our Permian system, and our West Coast Renewables Network, as well as the projects we hope to announce later this year across our ammonia system. We plan to continue to optimize our business and build our financial strength and unit holder value, while we continue to safely and reliably store and transport the essential energy that fuels our lives. As we embark on this new year, the future looks bright, and we look forward to talking to you next quarter. With that, we'll open up the call for Q&A.

Ladies and gentlemen, if you have a question or a comment at this time, please press star 1-1 on your touch-tone phone. If your question has been answered or you wish to leave yourself in the queue, please press star 1-1 again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Theresa Chems-Barclays. Your line is open.

Good morning. Thank you for taking my question. I wanted to ask about the puts and takes to the high versus low range of guidance for the year, just given the wide range. Can you help us walk through what aspects of your business could drive the higher versus lower end?

Yeah, Teresa, this is Danny Oliver. It's kind of the same story we had last year. We've forecasted some growth in the Permian, although it's you know, a little bit lower growth rate than we saw in 22, but if our producers are, you know, more active than what we have forecasted, we could see some growth there. Our Corpus Christi crude system, we have forecasted at the MVC levels, and so there's really no downside there, but we could see some upside if we see volume start to pick up, which we've actually seen some at least in January. And then on our West Coast volumes, on the West Coast biofuel system could be a little bit stronger than what we've anticipated.

I would also say that we conservatively forecasted our fuels marketing segment.

Yeah, we reverted back to the norm for our margin-based businesses after having a record year in 2022.

Got it. And given the elevated maintenance and turnarounds for your refining customers this year, it seems to be somewhat industry-wide. Does that have any read-throughs on your crude system, either to the positive or negative?

We've got all that, you know, forecasted. That's in the guidance, obviously. But, you know, those turnarounds are not always the same across our system. We have some refineries that when they go down, we actually see you know, a pickup in volumes where we ship more refined products on other lines to cover the refinery outage. And then other refineries, you know, we feel the pain, like at McKee. But McKee had a heavy turnaround period this year, and it's pretty light going into next year. So we're not expecting any significant impact.

Got it. And lastly, just on the Series D pay down, so I believe that you had negotiated a premium with the holder to front load a portion of the pay down in 2022. Does that impact the premium that you were scheduled to pay for 2023, 2024? Can you just give us an update on that?

Yes, Teresa. In all likelihood, the premium we pay will be the stated premium or called premium that's in the agreements, which in 2023, that'd be 125% par.

Thank you. One moment for our next question. Our next question comes from Gable Marie with Mizzouho. Your line is open.

Hey, everyone. This is Chris Jeffrey on for Gabe. Congrats on the quarter. Just curious about the strategic spend, kind of the balance of, besides the $25 and $60 million, any particular areas, projects that's marked for?

You know, I suppose one mentionable is we're forecasting spending some money on our ammonia system. Brad mentioned in his comments about some deals that we hope to be able to discuss in further detail a little later in the year when we fully execute those. But we are forecasting some spin there. The rest of it is we say every year we have a basket of what we call singles and doubles, smaller projects, good return projects just scattered out across our various systems. And that's what makes up the balance of that number.

Right. But it's mainly focused in our growth areas, which are the West Coast Renewable Fuels Network and then the Permian.

Great, thanks. And then just curious on the blending margin backdrop, how that kind of impacted the quarter and the outlook for 2023, if you're kind of taking into account at all.

So, I mean, we just had, you know, historically high margins in that business last year. Just, you know, as a reminder, A lot of the margin that we make in that butane blending business, we lock up in the summer months. We buy butane in the summer when margins are typically at their widest and sell the fall and winter gasoline, and then we store the butane and blend it in the transition period in the fall. We saw, again, historically high spreads last summer. It's still early to be predicting what's going to be going on this summer, but it looks like at least currently margins have reverted back to what we would consider normal. Great.

Thanks, everyone.

Thank you.

One moment for our next question. Our next question comes from Michael Blum with Mizuho. Your line is open. I'm sorry, Wells Fargo.

Sorry, Michael Blum, Wells Fargo.

Good morning, everyone. I wanted to ask about refined product or gasoline volumes on your system. At least nationwide, it looks like, based on EIA data, that volumes have been a little bit weaker of late, but it looks like your pipelines are holding up better. Can you just talk through why that's the case, and do you expect that to continue into 23?

Sure. Michael, this is Danny. We saw in the fourth quarter, you know, our volumes running, you know, right at or above pre-pandemic levels. I'll tell you that we've, in January, we've seen volumes increase pretty significantly, at least, you know, versus what you would anticipate even pre-pandemic in January. Most of that is due to A Suncor outage at their refinery in Denver has created a really tight market up there, and some of our refiner customers have reacted by running higher utilization rates at their refineries to help supply that market than you would normally expect in January due to seasonal demand issues that they usually experience.

Yeah, I would add that we don't typically see the variability that some of the other regions of the country do, just given where our pipelines are. I mean, I would remind everybody, you know, our pipelines return to pre-pandemic levels by September of 2020. So, I mean, we've been running there pretty much since then.

Okay, perfect. That helps. And then I just wanted to ask about the Permian growth expectations for 2023. It sounds like you think the rate of growth could slow a bit for 2022, but do you have an exit rate that you're sort of pointing us to for year-end like you typically provide?

We're looking at somewhere around 600,000 barrels a day next year. We have a little lull in activity forecasted just in the first few months of the year. It's just really kind of a timing thing. But, you know, for annual averages, obviously, we'll, you know, beat 2022. We expect to be 22 in 23. But from an EBITDA perspective, we expect, you know, some of that growth to be offset by PLA prices, you know, going back to the current forward curve versus what we realized in 2022.

Okay, great. Thank you very much.

Thank you.

And I'm not showing any further questions at this time. I'd like to turn the call back over to Pam Schmidt for any closing remarks.

Thank you, Kevin. We would once again like to thank everyone for joining us on the call today. If anyone has additional questions, please feel free to contact New Star Investor Relations. Thanks again and have a great day.

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.

The conference will begin shortly. To raise and lower your hand during Q&A, you can dial star 1 1.

Thank you. Thank you. Thank you. Thank you. Thank you. Bye.

Good day and thank you for standing by. Welcome to the New Star Energy fourth quarter 2022 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to your speaker today, Pam Schmidt, Vice President, Investor Relations. You may begin.

Good morning and welcome to today's call. On the call today are NuSTAR Energy LP's Chairman and CEO, Brad Barron, our Executive Vice President and CFO, Tom Shove, and our Executive Vice President of Business Development and Engineering, Danny Oliver, as well as other members of our management team. Before we get started, we would like to remind you that during the course of this call, NuSTAR management will make statements about our current views concerning the future performance of NuSTAR that are forward-looking statements. These statements are subject to the various risks, uncertainties, and assumptions described in our filings with the Securities and Exchange Commission. Actual results may differ materially from those described in the forward-looking statements. During the course of this call, we will also refer to certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to GAAP measures. Reconciliations of certain of these non-GAAP financial measures to US GAAP may be found in our earnings press release, and if applicable, additional reconciliations may be located on the financials page of the investor section of our website at NewStarEnergy.com. With that, I will turn the call over to Brad.

Good morning. Thank you all for joining us today. I'm excited to tell you about our great fourth quarter and solid performance for full year 2022, as well as our positive outlook for 2023 and beyond. Let's get started with a few highlights from our fourth quarter 2022 results. We generated $197 million of total adjusted EBITDA in the fourth quarter, 16% higher than adjusted EBITDA in the fourth quarter of 21, and the highest fourth quarter in NewSTAR's history. Our pipeline segment EBITDA was up in the fourth quarter by 18% over the same period in 21, thanks in large part to the continued strong performance of our Permian crude system. Our Permian systems volumes hit another high in the fourth quarter. handing in a record-breaking average of 584,000 barrels per day. That's up 13% over the same quarter last year. Our mid-continent refined product systems once again delivered a solid, dependable revenue contribution in the fourth quarter of 22. In South Texas, we're pleased that our Corpus Christi crude system throughputs averaged over 368,000 barrels per day in the fourth quarter, which is above our MVCs for that system and 8% higher than our third quarter volumes. We're also encouraged by the continued improvement we saw in January on that system as our average volumes rose to almost 400,000 barrels per day last month. Our fuels marketing segment also had a great fourth quarter, generating $12 million of EBITDA, up $7 million over the fourth quarter of 2021. With that, a few observations about 2022 before I turn it over to Tom. 2022's historic inflation and volatility made for a bumpy ride around the globe and across financial markets. Given that economic context, I'm particularly proud of our 2022 results, which demonstrate once again the stability and strength of New Star's business. Our 2022 revenue was up from growth in our Permian crude system, growth in our West Coast renewables network, the positive impact of indexation, the outperformance of our fuels marketing segment, and the steady, solid revenue contribution from our refined product systems. We generated higher adjusted full-year EBITDA for 2022 through a combination of revenue improvement and expense optimization, which helped mitigate some of the impact of 2022's historic inflation. And by continuing to high grade our capital spending program, we were once again able to self-fund our business, including our capital spending and our growth footprint in the Permian and on the West Coast. Through optimization and careful planning over the course of 2022, we were able to meaningfully reduce our leverage, which positioned us to get a head start on kicking off our plan to simplify our capital structure. And in November, we were able to repurchase about one-third of our Series D preferred units while keeping our debt-to-EBITDA ratio under four times per year in 2022. We're now planning to redeem the remaining Series D units in 2023 and 2024, which is about two years ahead of our original schedule. I'm also proud that in 2022, once again, Neustar outperformed our industry in terms of safety stewardship, With a total recordable injury rate, or TRIR, it was 13 times better than the bulk terminal industry and twice as good as the pipeline industry as a whole. And then we published our second sustainability report, which provides more information about the culture of responsibility that has distinguished NuSTAR throughout our history. And with that, I'll turn the call over to Tom.

Thanks, Brad, and good morning, everyone. As Brad mentioned, our fourth quarter adjusted EBITDA was up 28 million, or 16%, over the fourth quarter of 2021. Our fourth quarter 2022 adjusted DCF was 89 million, and our adjusted distribution coverage ratio was 2.01 times. Turning to our segments, in the fourth quarter of 22, our pipeline segment generated 176 million of EBITDA. up 27 million or 18% over fourth quarter 21 EBITDA of 149 million, largely from a strong performance of our Permian crude system as Brad described earlier. Higher contributions from our Permian crude system were complemented by higher results from our McKee system pipelines and our refined products pipelines. Turning next to our storage segment, Our EBITDA for fourth quarter 22 was $41 million, which is about $6 million lower than fourth quarter 21 EBITDA. That decrease was due to customer transitions and required tank maintenance at our St. James Terminal and an amendment and extension of our customer contract at our Corpus Christi North Beach Terminal. Our West Coast region's revenues continue to grow, driven in a large part by our West Coast renewable strategy, up 20% over fourth quarter 21. And for our fuels marketing segment, EBITDA was $12 million, up $7 million from fourth quarter 21, largely due to stronger margins. I'm also pleased to report on our continued progress in reducing our debt and building our financial strength and flexibility. We ended fourth quarter 22 with a debt to EBITDA ratio of 3.98 times. At the end of the fourth quarter 22, our total debt balance was $3.3 billion, and a revolver availability is over $775 million of the facility's $1 billion capacity. Moving now to our outlook for 2023. For full year, we expect to generate EBITDA in the range of $700 to $760 million, and we plan to spend $130 to $150 million on strategic capital in 2023. We expect to allocate about $60 million to growing our Permian system And we plan to spend about $25 million to expand our West Coast Renewables Fuels Network. Turning to reliability capital, we now expect to spend between $25 and $35 million on reliability in 2023. And now I'll turn the call back over to Brad.

Thanks, Tom. As I mentioned, our optimization in 2022 was integral to New Star Solid results and it facilitated an important first step to improve our capital structure last year. Optimizing our business and maximizing our free cash flows in 2022 was more than a one and done effort. By systematically scrutinizing every dollar of spending, we've been able to significantly increase our cash flow with systematic changes that will continue to reap benefits in 2023, but also in 2024 and beyond. And by investing that increased cash flow in our growth footprint, we're already on the path to compounding those benefits with the EBITDA growth we expect from organic capital projects on our Permian system and our West Coast Renewables Network, as well as the projects we hope to announce later this year across our ammonia system. We plan to continue to optimize our business and build our financial strength and unit holder value, while we continue to safely and reliably store and transport the essential energy that fuels our lives. As we embark on this new year, the future looks bright, and we look forward to talking to you next quarter. With that, we'll open up the call for Q&A.

Ladies and gentlemen, if you have a question or a comment at this time, please press star 1-1 on your touch-tone phone. If your question has been answered, you wish to leave yourself in the queue, please press star 1-1 again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Theresa Chems-Barclays. Your line is open.

Good morning. Thank you for taking my question. I wanted to ask about the puts and takes to the high versus low range of guidance for the year, just given the wide range. Can you help us walk through what aspects of your business could drive the higher versus lower end?

Yeah, Teresa, this is Danny Oliver. It's kind of the same story we had last year. We've forecasted some growth in the Permian, although it's you know, a little bit lower growth rate than we saw in 22, but if our producers are, you know, more active than what we have forecasted, we could see some growth there. Our Corpus Christi crude system, we have forecasted at the MVC levels, and so there's really no downside there, but we could see some upside if we see volume start to pick up, which we've actually seen some at least in January. And then on our West Coast volumes, on the West Coast biofuel system could be a little bit stronger than what we've anticipated.

I would also say that we conservatively forecasted our fuels marketing segment.

Yeah, we reverted back to the norm for our margin-based businesses after having a record year in 22 years.

Got it. And given the elevated maintenance and turnarounds for your refining customers this year, it seems to be somewhat industry-wide. Does that have any read-throughs on your crude system, either to the positive or negative?

We've got all that, you know, forecasted. That's in the guidance, obviously. But, you know, those turnarounds are not always the same across our system. We have some refineries that when they go down, we actually see you know, a pickup in volumes where we ship more refined products on other lines to cover the refinery outage. And then other refineries, you know, we feel the pain, like at McKee. But McKee had a heavy turnaround period this year, and it's pretty light going into next year. So we're not expecting any significant impact.

Got it. And lastly, just on the Series D pay down, so I believe that you had negotiated a premium with the holder to front load a portion of the pay down in 2022. Does that impact the premium that you were scheduled to pay for 2023, 2024? Can you just give us an update on that?

Yes, Teresa. In all likelihood, the premium we pay will be the stated premium or called premium that's in the agreements, which in 2023, that'd be 125% par. Thank you.

One moment for our next question. Our next question comes from Gable Marie with Mizzouho. Your line is open.

Hey, everyone. This is Chris Jeffrey on for Gabe. Congrats on the quarter. Just curious about the strategic spend, kind of the balance of besides the 25 and 60 million, any particular areas, projects that's marked for?

You know, I suppose one mentionable is we're forecasting spending some money on our ammonia system. Brad mentioned in his comments about some deals that we hope to be able to discuss in further detail a little later in the year when we fully execute those. But we are forecasting some spin there. The rest of it is we say every year we have a basket of what we call singles and doubles, smaller projects, good return projects just scattered out across our various systems. And that's what makes up the balance of that number.

Right. But it's mainly focused in our growth areas, which are the West Coast Renewable Fuels Network and then the Permian.

Great, thanks. And then just curious on the blending margin backdrop, how that kind of impacted the quarter and the outlook for 2023, if you're kind of taking that into account at all.

So, I mean, we just had, you know, historically high margins in that business last year. Just, you know, as a reminder, A lot of the margin that we make in that butane blending business, we lock up in the summer months. We buy butane in the summer when margins are typically at their widest and sell the fall and winter gasoline, and then we store the butane and blend it in the transition period in the fall. We saw, again, historically high spreads last summer. It's still early to be predicting what's going to be going on this summer, but it looks like at least currently margins have reverted back to what we would consider normal. Great. Thanks, everyone.

Thank you.

One moment for our next question. Our next question comes from Michael Blum with Mizuho. Your line is open. I'm sorry, Wells Fargo.

Sorry, Michael from Wells Fargo.

Good morning, everyone. I wanted to ask about refined product or gasoline volumes on your system. At least nationwide, it looks like, based on EIA data, that volumes have been a little bit weaker of late, but it looks like your pipelines are holding up better. Can you just talk through why that's the case, and do you expect that to continue into 2023?

Sure, Michael. This is Danny. We saw in the fourth quarter our volumes running right at or above pre-pandemic levels. I'll tell you that in January, we've seen volumes increase pretty significantly, at least versus what you would anticipate even pre-pandemic in January. Most of that is due to a Suncor outage at their refinery in Denver. has created a really tight market up there and some of our refiner customers have reacted by running higher utilization rates at their refineries to help supply that market than you would normally expect in January due to seasonal demand issues that they usually experience.

Yeah, I would add that we don't typically see the variability that some of the other regions of the country do, just given where our pipelines are. I mean, I would remind everybody, you know, our pipelines return to pre-pandemic levels by September of 2020. So, I mean, we've been running there pretty much since then.

Okay, perfect. That helps. And then I just wanted to ask about the Permian growth expectations for 2023. Sounds like you think the rate of growth could slow a bit for 2022, but do you have an exit rate that you're sort of pointing us to for year-end like you typically provide?

We're looking at somewhere around 600,000 barrels a day next year. We have a little lull in activity forecasted just in the first few months of the year. It's just really kind of a timing thing. But for annual averages, obviously, we'll beat 2022. We expect to be 22 in 2023. But from an EBITDA perspective, we expect some of that growth to be offset by PLA prices going back to the current forward curve versus what we realized in 2022.

Okay, great. Thank you very much.

Thank you.

And I'm not showing any further questions at this time. I'd like to turn the call back over to Pam Schmidt for any closing remarks.

Thank you, Kevin. We would once again like to thank everyone for joining us on the call today. If anyone has additional questions, please feel free to contact New Star Investor Relations. Thanks again and have a great day.

Ladies and gentlemen, that concludes today's presentation. You may now disconnect and have a wonderful day.