Brava Energia S A S/Adr

Good afternoon, everyone. Welcome to 3R Petroleum Second Quarter 2020 for Earnings Conference Call. The presentation and comments about the results will be presented by the company CEO, Matheus Dias, by Rodrigo Pizarro, CFO and IRO, and by the Exploration and Production Officer, Mauricio Diniz. We inform that the simultaneous translation tool is available on the platform. To access it, simply click the interpretation button at the bottom of the screen and choose your preferred language. This conference has been recorded and will be available on the company's investor relations website, ri.3rpetroleum.com.br, as well as the presentation that we will show here. Be advised that all participants will be in listen-only mode during the presentation, and then there will be a Q&A session when further instructions will be provided. Before proceeding, I take this opportunity to stress that forward-looking statements are based on the beliefs and assumptions of 3R's management and on current information available to the company. Forward-looking statements may involve risks and uncertainties because they relate to future events and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists should understand that events related to the macroeconomic environment, the industry, and other factors may cause results to differ materially from those expressed in such forward-looking statements. We will start another presentation with the company CEO, Mr. Matheus Dias. Mr. Dias, you may begin. Good afternoon, everyone. Initially, we would like to apologize for the delay in starting this call. Welcome to the earnings conference call of three, our petroleum referring to the second quarter of 2024. As mentioned, the presentation will be made by myself, Denise, COO, and Rodrigo Pizarro, CFO and IRO. To start on page three. We have the introduction with the main highlights, achievements and points that are noteworthy in the quarter. According to the material fact released yesterday, June 30th, the conditions precedent of Enalta and Maha were achieved, and today, the 31st, we concluded the integration of Enalta's shares by 3R as well as Maha Holding. Again, I reinforce the merit and the potential of this deal. Through a relevant gain of scale in an industrial environment of commodities puts the company at a level of greater protagonism among independent companies with a portfolio and level of production which are robust. It carries a number of opportunities of optimizations due to financial, operational and other synergies. This event represents a landmark among independent companies. We are very optimistic about the new potential of this new period that starts for the company. In terms of production, the company ended Q2, achieving an average production of 46,600 barrels of oil equivalent daily, which means a substantial increase year on year, but only 5% increase over the previous quarter. This increase had as main contributor Papa Terra cluster, which, still in a very intense phase of maintenance and workovers, contributed organically to this slight increase compared to the previous quarter, supported basically by the reconnection of wells to our production grid in the context of workover activities. It is worth noting that part of the increment recorded happened because of the process of compulsory assignment exercised by 3R Offshore, which is still being debated as a legal at the courts and in the process of formalization at the regulatory agency, given the continued default of the partner as part of the contract of the consortium. Regarding the financial performance, the company achieved 2.6 billion BRLs of net revenue, considering upstream and mid-downstream segments, which Pizarro will detail, and an adjusted EBITDA of approximately 850 million BRL, up 18% quarter-on-quarter. in terms of EBITDA margin and not considering intercompany and corporate eliminations, the upstream business unit posted 43.3% and the mid downstream 3.1%. Again, this will be explained more during the financial section. I don't want to give any spoilers to Pizarro's presentation. I also highlight A different level, an improvement compared to the previous quarter. Free cash flow generation of almost 600 million being also driven by an increase in the volume of products sold, given what I mentioned a minute ago regarding Papaterra context and strategy of managing. the inventories and working capital. From the operating standpoint, we highlight the initial drilling campaign started at the Potiguar and Reconcavo basins. highlight going to the campaign in Macau cluster that has a potential production per well, which is very relevant in the onshore environment of our portfolio and with an NPV per capex that is very advantageous in our basket of investments, which is very competitive. Lastly, I reinforce what I already mentioned, the completion of work over activities carried out at Papa Terra. Most of the wells of the asset are in production with new brand new pumps. Like also to mention that integrity and project and maintenance project activities continue according to the plan and the schedule. We still have the unit of maintenance and safety mobilized to complete the work and the scheduled downtime. which we have already mentioned previously. Given this overview, we move to slide four now, please. Here we have the charts showing the operating performance and financial performance of the company. As I said during the introduction, overall from the operational aspect, the result of Q2 was 46,000 barrels of oil equivalent daily with a slight increase quarter on quarter. Regarding the average oil daily production, the company achieved 37,000 barrels of oil equivalent a day, 8% up quarter on quarter. And this is explained, as I already mentioned, partly given the organic growth of Papaterra and also the compulsory assignment in the scope of the contract of the consortium. Regarding our financial performance, as already mentioned, I reinforce a 28% increase in net revenue quarter on quarter, which is justified in addition to external factors related to the Brent and depreciation of the dollar compared to the BRL. given the increasing production of Papaterra in upstream and in mid downstream, given the higher volume of sale of oil products, including a part of the inventory of the previous quarter, given the unitization of loads for batches that end up for offloads that make sense, considering MDO and bunker. In EBITDA, also increasing, we reached 850 million BRL for the same reasons, external reasons, Brent, Dole Internal, Papaterra Production, and oil byproducts in the mid downstream, but negatively offset by a higher lifting cost. which we can see in the right bottom hand corner. It increased to $22.6 per barrel of oil equivalent. This is because of workovers at Papaté, the compulsory assignment process, given the default of the partner, and a series of regularizations of environmental licenses in the Potiguara cluster. Moving to the next session, before turning the floor to Mauricio Diniz on slide 6, here we bring you the evolution by quarter of commercial metrics and conditions regarding commercialization of oil. In Q2 2024, the average selling price was $76.8 per barrel, or 90.4% of the average Brent price. In other words, a slight decrease over the previous quarter. Considering a higher revenue in Papaterra given the assignment process, because this is an oil with a greater discount than in other oils of the portfolio, the weighted average is pushed down. Regarding gas, we continue to be very competitive in monetizing the molecule but with a reduction compared to the prior quarter at a level of 11.7% of the Brent reference value. This is due to a reduction essentially in demand in the contract with the Disco in Paraguay and consequently of volumes sold. Here, basically, with a weighted average effect that is similar but opposite to what I mentioned for oil. The unit value of the molecule for Peter Weiss is the most advantageous for the company. And given this reduction in volume, so this reduces the value compared to the brand. Well, having said all that, I now turn the floor to Mauricio Diniz for the operating highlights of the company's portfolio in the second quarter of 2024. Thank you very much, Diniz. Over to you. Thank you, Matheus. I'm now going to provide some operating information by cluster, starting with the Portigua complex. is the old potiguar cluster that we had before with Macau Fazenda Belém and Areia Branca and the more recent areas Canto do Amaro and Alto do Rodrigues and surrounding areas. In the chart presented we can see the production progress of the whole complex quarter on quarter. We highlight two points. Increased production in Canto do Amaro, Amaro and Alto de Rodrigues 3.1 compared to the previous quarter. mainly due to workovers and pull-ins we are carrying out in the area. This was offset by a 7.9% reduction in the production of Macau given the temporary limitation of the water injected in the reservoirs with an effect on secondary recovery of the fields. In the end of July, there was a workover in some of the wells. Part of the water injection has returned and production is getting close to that of Q1. Another positive point in the quarter is the the resumption of well drilling in Rio Grande do Norte. Now we have two drilling rigs in Serra and Canto do Amaro. And for Q3, more towards the end of August, we'll have another rig operating in Salina Cristal. In the second quarter, 226 interventions were carried out, considering work-over, pullings and reactivations, 12 rigs working in the area. Regarding topside facilities, we can highlight in the Potiguar complex the completion of the installation. of electricity among the main Macau fields and the Guamare Asset. This allows us to reduce those instability electricity outages that we had before. the continuity of the process of recovery and relocation of the steam generators. And I'd like to remind you this project is divided into some phases. Some initial ones of relocation were completed, others are underway. An adaptation of the disposal and water injection systems at Canto do Amaro field. Next slide on Reconcavo complex. We had a 22% growth compared to the same period of last year and a 2.7% reduction quarter on quarter. And we can highlight some points here. First, the increase in the number of interventions of wells to exchange equipment. We also had a limitation in the volume of gas processed. given the capacity of our NGPU and also we had a lot of rain in this quarter which led to the closing of some wells for some periods and intermittency due to arrival at the wells and intermittent electricity supply. An important and positive point in the area was the start of the drilling campaign of wells in the C X field. We had activity in 38 interventions, workovers, holdings, reactivations supported by five rigs. We have a lot of work to recover integrity in the region of the recovery of the integrity of the collecting stations and pipes. Now moving to Papa Terra on the next slide. Here we can see the production in Q2 remained in keeping with the previous quarter. Here we highlight, as mentioned by Matheus, the gradual resumption of the wells 37, 17 and 12. As mentioned in prior calls, the two rigs that operate at Papaterra have been working in recovering the wells that had the ESP working for many years now. Now, six wells of the field are in operation. Of these six, four have undergone interventions and the pumps have been replaced. As Mathilde said, they're brand new, which will ensure good production stability in the coming years. As regards Papaterra 50, intervention has been completed. It should start producing in the coming days. With inclusion of this well, production at the field should be slightly over 20,000 barrels daily. We will probably be getting back to that level. But the other wells, 16 and 51, they did not undergo any intervention. There was no need to exchange the pump, but we have the pumps and the equipment ready in case of problems. As regards the platforms, we highlight the maintenance unit connected to the 3R3 platform in May. We have more than 200 professionals there doing a number of services to recover integrity of the unit. The number varies to 100, 150, depending on the activity we carry out. We estimate to finish it by September, but remind you that there will be a downtime of production now in the first 15 days of August. The offload system. Since the closing, we have been operating with a backup system because the main one was not operational. The whole system has been set up, tested and will be used in the next offloads, releasing the vessel that is all the time holding that reserve system. As for the tanks, we have capacity to offload 500,000 barrels daily. I'd like to remind you in the beginning of last year, whenever there was some instability, we had to stop production because we didn't have enough tanks in tankage to support production at the unit. We also highlight the overhaul of the generators, improving the efficiency of the unit. With that, the whole A unit is now more reliable, which has been translated into greater operating efficiency that we have recorded at the unit. As for the new well to be drilled, the rig is already contracted and we are just waiting for the environmental license to start. We have frequent meetings with IBAMA, the environmental agency. All studies were submitted. We had a last meeting just last week. and we should get the technical opinion in the next few days with some comments and the actions requested are being implemented. So we're just waiting for the license now. As for Peroa, on the next slide.

Production follows market demand. The camp can produce 600 cubic meters a day and it produced 500,000 on average in the last quarter in line with our agreements. The next slide. Here, we show production evolution considering the stake of triar in the acids. In the second quarter, we reach 46.6 barrels a day. Of those, 79% refer to oil production. And from that production, 69% comes from the potiguar complex. The growth in relation to production in the first quarter occur mainly in Papaterra, and through the incorporation, according to the amount already mentioned by Mateos, as demonstrated in the slides. And if you look at production, the fields that closed longer, I mean, with the best knowledge we have improvement in integrity and the excellent quality of our assets, all of that allows us to Continuously increase our production, promoting better results for our assets. And now we will talk about the financial highlights. Thank you, Denise. Good afternoon. We will now talk about the financial highlights of the company. Slide 13 brings our net revenue that reached a record number in the quarter, surpassing 2.5 billion BRL. This increase in revenue is related to increase in production, production and inventory of oil and byproducts and the effects of the depreciation of the USD and Brent. In the following slide, we present the upstream revenue per basin and the highlight goes to an increment in the Potiguar and Papaterra basins that since May it contemplates the stake of 85% in the asset due to the default of our partner. Slide 15 shows adjusted EBITDA of the company that was 850 million BRL in the second quarter with the increase in sales from Papateja whose EBITDA margin is slightly lower than the average of the company. There's a reduction in the combined EBITDA margin, something that that will certainly improve with the increased production and improvement in the operating efficiency of the assets in the coming months. Next slide, slide 17. Here we show lifting cost of the company. In the quarter, there was an increase in operating expenses and pulling campaigns. in replacement of pumping systems in important wells, as well as a non-recurring effect with expenses in the renewal and also environmental licenses. Once again, the increase in that ratio of oil with Papa Terra has the effect of weighted average of the lifting costs, something that tends to be lower after the Flotel campaign that is supposed to be concluded in September, as previously mentioned by Denise. In the following slide here, we bring the company's capex. We concluded the first half with over $500 million. Most of it allocated to the upstream segment with the construction and expansion of facilities plans. steam generators work over campaigns and in the drilling of wells, both onshore and also the assembly and preparation for drilling up the wells in Papatea, meaning that with the acquisition of pumps and equipment for the subsequent campaign that should be initiated this year. Slide 19, here we bring the capital structure of the company at the end of the second quarter. with an operating cash generation quite robust in the period after the optimization of inventories, reduction in working capital. We also increased by 1 million BRL our cash position vis-a-vis the end of the previous quarter. And by looking at our US denominated gross debt the second quarter, we stood at 1.5 billion, contemplating all the portfolio agreements with Petrobras. The following slide brings our hedge position. We have slightly less than 1,000 barrels hired in NDF with an average price close to $78.6 per barrel and about 6,300 collar contracts. and $91.6 and putting around $56.8. I would like to highlight that with the prepayment of time long recently concluded, we do not intend to do any more hedging in the company with creditors. And finally, the last slide here, we highlight the next steps of the company. And as presented yesterday to the market, we met all condition precedents for the merger of Enalta and Maha Energy in Brazil that have 15% of share in 3M offshore. And from now on, our focus will be in the integration of the companies and the strengthening of synergies and also in extracting the best possible value from this robust portfolio that now has a very significant scale, both offshore and offshore. We also have Papa Terra in Atlanta to be concluded in the next month and this will allow us to generate good cash and this will tend to reduce the level of leverage of the company as a whole. Onshore, the main results are linked to the drilling campaign in Macau, particularly related to the Serra field in the beginning of the ramp up of the steam generators in Estreita and Rodrigues in the Potigua cluster. We are very excited with the future. And finally, we would like to thank our employees and leaders who work diligently to help us conclude such an important phase of our trajectory. And also, I would like to thank our shareholders who have been with us for a long time. They trust us and trust our capacity to create value in the short, mid and long term for the company. And now we'll be proceed with the Q&A session. Thank you very much. We will now start the Q&A session. In case you have questions, please click in the Q&A icon that appears in the bottom part of your platform and type your question. Questions using the mic. Please click in that same icon and type your name and company or click and raise hand. Our first question comes from Vicente Falunga from Bradesco BBI. Mr. Falunga, you can proceed. Good afternoon, Mateus, Pizarro and Denise. First of all, I would like to wish you a great success in the company's new phase. My first question is, I mean, I think the board is in the process of defining what will be the capital allocation of the new company. At least in our spreadsheet, the impression is that the company will generate a lot of cash in the coming years. But I would like to understand as much as possible, if you can tell us what is in the pipeline in terms of capital allocation? How can you can you pay good dividends? Clearly, the company has great potential without discussing the priority of the company, because I know you have to develop projects. And then my second question. Is that we notice. that you resume negotiations with PGN. We thought it was a very positive thing for both companies. I would like to know whether you envision other opportunities given your onshore and offshore portfolio. And if you allow me a third question, I would like to understand how was the performance of Papa Terra in July and what do you expect for this feud after these initial 15 days of production? Thank you. Thank you, Falunga. I will start with your first question that refers to the portfolio and the capital discipline of the company in relation to dividends or organic growth. Basically, today, the company has an increasing production level, both in terms of 3R and an ALTA. This new company will have a very relevant production volume with costs that tend to be lower once we reduce our fixed costs. And naturally, operating cash generation tends to increase. Cash position of both companies is quite robust. So on the 1st of next month, we start with a very healthy position of this new company, 3R Plus and Elta, and certainly our board will have a chance to discuss that in the next coming days. With a focus starting with defending, you know, I mean, dividends and also growth. Certainly this new company is capable of doing A little bit of both, both organic and inorganic growth, as well as dividend payout, which should be constant throughout the coming years. But this is something for the board to decide, and we will be able to give you more details in other subsequent meetings. In terms of PGEN, I will turn the floor over to Mateus, Papaterra, and Denise. Well, thank you. Good afternoon. Thank you for your questions. In fact, we resume conversation Now, we are having deeper conversation with Petro Recôncavo because a transaction of this magnitude, I think it becomes very clear to everyone, we all need a solution. I think a potential partnership in equity would be the best option. And now, giving you a straight answer, if we have other potential assets or possible ways to go, we understand that, yes, there are other avenues. And as we said, there is a mid downstream path where we could have a more robust partnership that could be potentially in equity, maybe with some distributing company or a trading company. Having in mind that all of this mid downstream part is not what generates the largest EBITDA margin. I mean, it plays an important role in the integration of the productive chain and logistics as well, which brings good benefits to our onshore composition, but in fact is mostly concentrated in upstream. So having someone that has there as part of its core business will certainly bring good benefits to this specific activity. There is also a portfolio analysis that was initiated at 3R in the upstream segment. We initiated that early this year and certainly this is a topic that will go on for a long time. I mean, we have to to evaluate the capex basket. Where do I locate things? And also look at potential assets that will become core for the company. Very, very small fields, for instance. And on on our side, especially onshore, we have about 60 concessions and 20 of them account for over 20% of reserves and more than 95% of production. Therefore, certainly we know that we do have very small assets that we either Dedicate a lot of resources and at the end of the day, we just go even. But certainly the study will go on and there is good potential to have someone that could be like a sale or a partnership in a different format that 3R could, you know, focus on its core fields. Thank you. And then I'll turn back to Denise to talk about Papa Terra. We started July with two other wells, 37 and 50. So 37 was put into operation throughout the month. I mean, production was between 16 and 18,000 in the beginning of the month. Well, we were missing Papaterra 50, which was under intervention. That was TLWP. This intervention was concluded. The well was ready for operation. Now, there is a downtime schedule for August 1st for two weeks approximately. And in this downtime, we intend to adjust two things. One is a pump and a heat exchanger to exchange the measurement system. Well, we anticipated that intervention, so we started Saturday and we should be concluded that between today and tomorrow. And then we will resume production and we will go back to Papateja 50 and we will just wait for better conditions to do that, you know, downtime that should be around August 4 or 5. So that's when we should have our downtime. Okay, OMS working in the area is having good results. We concluded the painting, we changed all the pipes, we cleaned the tanks, all of the generation part. So these OMS campaign of that maintenance unit should go on until the end of September. So by the end of August, production will go back to normal, meaning Papa Terra. around 20 to 22,000 barrels a day, approximately. Great. Thank you. Thank you once again. Wish you all the best. Thank you, Falanga.

Next question from Mr. Pedro Soares with BTG Pac-12. Mr. Soares, go ahead. Good afternoon, Matheus Pizarro and Denise. Good afternoon, everyone. I have two questions. My first, whether you could help us perhaps try to reconcile recurring generation of the company. I don't want this to be very boring, but perhaps you could speak about operating cash flow. It seems that there were some non-recurring impacts during the quarter. In the release, you actually mentioned some of the impacts. But perhaps it could help us understand that those $958 million that we see in operating cash flow, what should we consider recurring? Adjusting for abandonment, et cetera. And my second question is a follow up on the previous question. It's very clear. Now that these discussions of investing or paying dividends, that will be up to the new board of directors. But perhaps Matheus and Pizarro, you could speak a little about 3R. What is the cash position that you see is ideal to support organic growth of 3R as standalone so that we can kind of do our exercises of regarding the optimal capital structure looking forward. Thank you. Thank you, Pedro. Thank you for the questions. Let me start with the operating cash flow. We mentioned in the prior earnings call that in the end of the quarter, we ended with an inventory slightly higher than the level of the previous quarter, both for oil and refined products. Basically, we always have the inventory position at Papa Terra, the position of refined products, particularly bunker at Potiguar cluster. And depending on the moment, on the month and on the week, We have refined products which are acquired for blending. So it is natural that we should have an impact on working capital depending on the quarter. More and more we've been doing work, monitoring work to optimize working capital. Unfortunately now and fortunately in the second quarter we were able to maintain inventory slow. We still have a balance of oil and refined products. We make this very clear in the earnings releases. and in the income statements as well. We still have some oil and buy products, refined products in the inventory that could be sold. But of course, this matches the logistics of each one of the assets. But we had a better position in terms of inventory, cash flow, and working capital in Q2 compared to Q1. If we look at the company's EBITDA, we have slightly over $165 million of EBITDA for the company in the quarter. Net of taxes, we would have about 80-90% of conversion of EBITDA into cash flow in a more recurring fashion. So net of the working capital variation, we expect to be able to maintain a volume of working capital that will be closer to Q2. But again, it will depend on the moment, on the week. It is possible that we'll have a position slightly higher in terms of blocking more working capital if it is a very specific moment of buying refined products and increasing the inventories. I think that this is the answer for the first question regarding the second question. Indeed, the definition of the strategy, dividend policy, portfolio, organic versus inorganic growth, it will all be left for a second moment after the board deliberations. When we look at 3R standalone, the leverage target, as we have mentioned before, is between 1.2 and 1.8 net debt over EBITDA ratio. This was always our standard, slightly under two times. However, we always knew, and we always stress that with the market, that in certain moments after the start of the acquisitions and after a big acquisition, as was the case of Portugal cluster, that we would have a net debt over EBITDA ratio slightly higher, above two, because that's a moment when we're investing in recovery integrity of many systems. And that's when we're in a phase of increasing production. Only in a subsequent moment will we reduce fixed costs, reduce the lifting costs and see a better EBITDA margin of the assets. So this is a level which we see that is healthy for 3R and a minimum cash position that we always try to maintain. Looking at the mid to long term above $130 to $150 million. I'd like to remind you that we have an onshore and an offshore portfolio. If we had just the ownership portfolio, perhaps this level could be a little lower. I guess this is it. Matos, anything's right? No? Okay. Thank you, Pizarro. Thank you, Pedro. Next question from Gabriel Barra with Citi. Mr. Barra, go ahead. Thank you for taking my questions. I'd like to second or to stress what I said in the call of your new partner. Congratulations on the M&A and the merger of the companies. Perhaps one of the big questions we have regarding the thesis is regarding execution and considering a larger portfolio, the challenges that will come with this opportunity. Looking at this year in terms of production and what we talked about in the beginning of the year, it seems that production fell slightly below what we expected for this year. I do understand there were some setbacks. Several things happened. over the year, which kind of deviated a little the focus of the company, but I want to understand from you, how should we think about this? Is this the right diagnosis? Was this just a focus deviation or was there something, anything operational impacting? Also regarding production and how the IBAMA and AANP issues can affect the curve looking forward. What should we pay attention looking forward? Where and what fields would this, the AANP strike have a bigger impact? We'd like to understand that a little more. Also, we got the arbitration process. I just would like to get an update from you to understand the timeline of the solution, how long it would take to have a final arbitration or ruling, what the next steps are in terms of negotiation, et cetera. I just want to understand where we stand. These are my questions. Thank you very much.

Hi, Gabrielle. Thank you for the questions.

Well, if you don't mind, I will start with the third question referring the arbitration process. And I have to give you a disclaimer. We have some limitations in what we can say. I will say what I am allowed to say. The process of starting arbitration, given the default, the continued default of NTE, this led the company to ask for a compulsory assignment because in the draft operating agreement, which is the contract that dictates the whole relationship with the consortium members, well, we exercise our right of starting a compulsory assignment process. We submitted this to A&P. In this context, the arbitration was started by the partner, by the other company, as was expected. Overall, What do we expect considering the timeline and considering similar issues in the industry? And of course, based on the technical support of the lawyers representing us, the whole process should take about a year and a half.

Meanwhile,

The company, again, in light of the joint operating agreement, has some remedies. There are some preventions regarding the operator. As much as there are discussions, the agreement is very much used in the market, not just in Brazil, but internationally as well. And having said that, we will apply these remedies which are defined in the JOA. In other words, managing costs of the asset, managing revenues, managing commercialization of 100% of the oil is all done by our company considering these remedies, which at the end of the day exist to deal with these issues. Now, moving to the first question regarding execution. Well, Gabriel, I think, well actually I don't think, but there were some forecasts. They were totally forecasts, statistical forecasting that led to some more relevant changes in the level of production compared to the plan. The main one was Papa Terra. In other words, wells that we had expected, and this was estimate based on lifespan, expected lifespan of the pumps. Well, we had imagined that the declines would happen more towards the middle of the year and we started some having some decline, which was expected in pumps that were three, four years old and started in February. So the trough that we had expected more to May, June started ended, started happening in Q1 and carried over during the interventions. So this had a more important impact on the curve Of course, we believe that we can recover that, not achieving the planned curve, 100% of the curve that we had estimated in the beginning of the year, but we can resume production at Papa Terra and with a much higher efficiency after the exit of OMS. so we should reach 22 23 000 barrels i'm a little more optimistic than my my friends here but i think it is feasible to achieve 22 23 000 given the history and get into a second question there is a license that we requested to ibama to drill Well, 52, you didn't ask, but we are in the process of waiting for the first weeks of August. A technical opinion. We should be able to answer the main questions posed by IBAMA in this last round. We expected to obtain this license and to drill even this year. And this will bring us closer to the estimated curve by year end. Of course, there is some delay, some slow progress, but that is not under our control. We're doing our role. We are very diligent. But I guess that this is the biggest risk starting now and considering everything that we have gotten so far, OMS and the licenses and the authorizations. So this is the only factor that could cause a reduction in production. Onshore reductions are not as substantial as the fact of Papaterra given the characteristic of each industry. But we also fell a little below what we had imagined, particularly in the ramp up of production in here. This was partially due to delays in some projects in the supply chain and in production, these are not. 2 important, particularly in the steam project. We are close to the curve and in water projects as well and other fields and he'll granted the royalty. And there's a certain delay in the issue issue ones of some licenses to drill some wells. So, the crap we had planned. We. Well, it was impacted by some slow license obtaining whether we had lost focus to be very candid with you. I think that this was a very intense year. It has consumed a lot of time of the management. And, of course, this has an impact. I cannot really precise and measure the practical effect of that. But to be very transparent, we dedicated a lot of effort in the beginning of the year with a potential deal that was not concluded. And with this one that was completed, that was closed. But of course, this does have an effect in this basket of parameters and variables. and in the context of total production. And very briefly, IBAMA and ANP. I believe that the main risk for the company is obtaining the license of PPT52 from IBAMA. Another point I forgot to mention is that the place where we're going to drill the well, as we mentioned before, because this is a twin well, we already know the location. So from the environmental standpoint, from the standpoint of all of the metrics that IBAMA requests, It's all very well mapped by us. We understand that there is an extra simplicity in this case, and that's why we remain optimistic that we should. Everything should come through in the coming months as regards to the floor to Denise. But. We've been going through some processes, as you know, of auditing, particularly for onshore fields, but also offshore. But I think that Denise can speak more about this. Thank you. Regarding ANP. Well, we went through a recent auditing in all of our fields related to one of ANP's practices. We didn't have any problem in our units and we should undergo other audits in the next weeks and months, similar to what A&B is doing with all other areas. So regarding A&B, this is what we would have. As regards the strike, it is possible that there will be an impact for us of the ANP strike. Today, the operation of ANP is working normally. Some areas not that much, but in terms of effect for 3R, so far we didn't feel any significant impact from ANP. So we continue, and our concern would be the operational audits that will happen in the next weeks. In the first audit, we had no problems whatsoever. Excellent. Very clear. Thank you, Bah, and thank you for the initial message.

Our next question is from Luis Carvalho from UPS. UPS, you may proceed, sir. Hello, good afternoon. First, Congratulations on the completion of the transaction. And I wish you the best of luck in this new phase. And I hope that we continue there together. I have two questions. My first question, I mean, I would like to go back or maybe Pizarro or Mateos, I would like to revisit the cash generation issue. Generation was quite healthy, I would say, in the quarter. And then I would just like to understand. What do you expect? In terms of cash generation, in particular, probably looking at the remaining part of 2025 and then 2025 or whether it will be too premature, given the fact that the transaction Just occur. It will be difficult for you to give me any estimate, but I would like just a view about operating the operating aspect. How do you see that now? And my second question is, I do understand that you have some limitations in terms of the comments that you make, but. Throughout time, you made a series of acquisitions, both onshore and offshore, and then obviously without Comparing the purchases of these fields, I mean, the assets that involve the merger of two companies, but also taking advantage of your experience after almost 10 acquisitions you made. I have two questions. First, What do you see as being the main risks and challenges with this integration within ALTA? And the second question is, what would be the best organizational structure in your view, given all of your past experience? Thank you. Thank you, Louise, for the message and the questions. Well, starting with cash generation, as I said at the beginning, what impacts the variation of cash flow and working capital the most is the meat stream activity. So if in the next quarters we have moments in which we end the quarter with the acquisition of refined for Brent, this will impact cash generation. And this is what happened in the first quarter. Otherwise, I mean, unlike that, if we have a quarter very similar to the second quarter, which is a quarter where we're able to control working capital in an optimized way, we should then have a similar cash generation, similar to what we posted. Obviously, we intend to to increase production. We are trying to control costs and have a delusion effect, especially in the offshore segment. This should happen once we conclude the maintenance of the FPSO of Papa Terra in the offshore segment. This is when we should have more clarity about the reductions in fixed costs and more efficient lifting costs. And this is what we expect to see going forward. with the integration of an auto, of course, that involves commercial and financial synergies. But if we look at the operating synergies, the main focus is in optimizing all of the hires for Atlanta, Papaterra, and eventually even to Perua. For instance, all of the emergency programs, vessels, support, helicopters, All of the logistics elements and also fuel and chemicals, all of that can be done in a more integrated fashion with more synergy. So we hope that in the next six to 12 months we will be able to capture most of operating synergies. And this also has a positive effect in the in our cash generation. Now, speaking about risks and challenges of the integration. We come from a very intense moment since 2019. And I would like to remind you that the current 3R is already the combination of two companies, the old 3R petroleum together with Orupetu oil and gas that we acquire in the past. In 2019 and 2020, we went through The first integration, so professionals from 3R came from Ouro Preto. And after that, we also acquired Duna, a company from Rio Grande do Norte, and some 3R professionals came from that integration. And as we acquired Petrobras assets, a lot of the people were also people that were there, you know, operating as third parties. Therefore, we are very familiar with this integration process. I believe our team is quite flexible and again, very optimistic, and they've been working very hard in a coordinated fashion. And we are very excited with this integration within Alta. Obviously, this required intensive work from both parties. We all know a lot about the leadership and professionals that operate in both companies. Therefore, my view, and Matheus and Luis can also add to my comments, I'm sure We won't have any problems with the integration. Well, certainly at some given moments, we will have to look carefully at the segregation of scopes. We've been working together, you know, all four hands on deck, looking at what the company will be going forward. And in the next phases, we will have the final approval of the structure. But everything is well underway. And in my view, I don't think we will find any major integration challenges. We have fortunately experienced professionals on both sides, and they've been through similar situations several times, both at 3R and in Alta. We do have a challenging avenue ahead of us, but we are very, very confident in this integration. That's very clear. Thank you very much. Bye. Thank you, Louise. Our next question comes from Leonardo Marconges with Bank of America. You may proceed, Leonardo. Good afternoon and thank you for taking my questions. I have three questions. My first question is about Potiguar. We noticed that You had a very intense quarter in the cluster with more than 200 activities. But even then, production was down during the quarter. So my question is, what were the effects that impacted the production in the quarter? And what should we expect from that cluster, at least in the short run after a lot of activities? And my second question may be thinking about the long run for Papaterra. How do you see the production potential of this field? When we look at the certification, at least 2P, it seems like the upside is large in terms of production. But today, what could we expect in terms of drillings and production for that field? Mostly thinking in the long term, probably 2025, 26 and even 27. And my third question, maybe you know, more precise question is that we saw a significant increase in Portugal's lifting cost. What was the effect of the environmental license and how could we look at this effect going forward? Right, Leonardo, we'll start with your last question and then Denise will follow. In terms of Portugal's lifting cost, We have a series of environmental licenses. Part of them had been paid by Petrobras at the end of the transaction. Some other licenses in their vast majority are annual licenses and some other licenses go beyond that year term. And this quarter, there was a non-recurring effect when we had to regularize licenses from the previous quarter and the current quarter. But from now on, we shouldn't have any agency costs which contemplates environmental and environmental license and programs that could be this significant. It could be between five to 10% lower than the current cost and that the cost that we are reporting to the market. Therefore, there should be an optimization of putting wars lifting costs due to the reduction of expenses and costs with environmental licenses. Denise, if you want to continue and talk about Portugal and Papaterra. OK, starting with Papaterra. And let's split Papaterra into three phases, the current phase, we are just concluding the work over of the wells and the work over of that maintenance unit that is being concluded. Therefore, production should reach the level that we mentioned before between 20 to 22,000 barrels a day. That should be the production for the next coming months. And the second phase involves the drilling of two wells, you know, 42 and 53. Each one should produce between 6,000 to 7,000 barrels a day. This is the phase where all of the equipment is in place, already purchased, the rig has been hired, and we are just waiting for the environmental license in order to start drilling these two wells. And the third phase of Papa Terra involves the drilling of new wells. And we are now Analyzing it, looking at the reservoirs and analyzing the field. So that should be started in 2026. And that's when we will start a new drilling campaign between 2026 and 2027. Start drilling new wells to reach a new production level. I mean, the potential today is very low when compared to the huge potential we see going forward in Papaterra and its reserves. About Potiguar, we had a large number of workovers in the area. And now let's split the two areas. Today we have Estreito and Alto do Rodrigues areas. And just to refresh your mind, we are working to replace the steam Process. Part of the process has been replaced. Some generators already in place. They were still lacking a few more generators, but that should be concluded by the end of the year. I mean, the first quarter of next year. And this will resume the the steam injection that we had before. And with that, we are able to increase production. And in terms of Canto do Amaro, In terms of work overs, we had a limitation related to water. And that's the Guamare asset. In order to solve that issue, we had to do some work in the previous stations with projects of water utilization within the station itself. So in the next coming months, the project should be concluded. And with that, we will be able to benefit from all of the innovations with an increase in production instead of just taking production from here or there and putting that in areas that have a higher oil production. So this is what we should expect for the next coming months in Potiguar. Just to add one more thing, as we go From the very beginning of the operation, we went through a process of the acquisition of steam generators, preparation of the area, reallocation of the generators. We spent a long period of time without injecting the volume that we were supposed to inject. That's why that decline is normal. Even though things were higher, it takes some time until we reheat the reservoir and resume growing production. By the same token, we are still reactivating wells, water shut off, which is what we call, which means that we are shutting down zones of the reservoir that are producing more water. And with that, we will have a better capacity of water processing. So we have more water in the surface. However, all of this campaign allows us to have a very significant production volume that has been, you know, had been like limited. So the effect, once we conclude all of these works, is that we should have a quicker production increment when compared to what we had in the past months. So this is the effect in Potiguar. Now, Papaterra, as Denise was saying, the recovered fraction is very low, but I would just like to add that in Papaterra, We do not have what other assets typically have, which are limitations in the surface for oil processing and water and gas processing. The FPSO Papaterra is relatively new. It has a very large capacity to connect to new wells. So once we connect a new well, we don't see the need to remove the worst well in production. We can add a production of oil and gas that is quite relevant. And this is part of this increment in production that we intend to see going forward. Very clear. And thank you and congrats on your new face.

Next question from Ms. Melanie Carvalho with JP Morgan. Ms. Carvalho, go ahead. Hello. Good afternoon, everyone. Hope you're well. Thank you for taking my question. Again, congratulations on this successful deal. I'd like to go back to some of the points. I mean, most of the subjects have already been addressed. But I have one regarding the deal. I know that the whole capital allocation part, the dividend policy, new investments, I know that it depends on the new board of directors. But thinking that as of tomorrow, you're a new company. We spoke a lot about synergies. So what are the initiatives that you will be focusing on in terms of financial gains or restructuring? And my second question is, in the beginning of the month, you announced an MOU with Petro Reconcavo to discuss potential agreements with Mid Downstream, with the Natural Gas Processing Unit. And I think you spoke about the Mid Downstream results in Vicente's question, but I'd like to understand the timeline and how these discussions are evolving. Thank you, Mileni. Well, the first phases very much related to the merger and take advantage of the synergies. Initially, we need to assess the portfolio as Decio mentioned in the ANALTA earnings call. In parallel, we have the process of integrating the performance monitoring systems. The ERPs of the companies need to be integrated in the subsequent moment and we'll work intensely in the coming months for this to happen and eventfully in a coordinated fashion in all the subsidiaries of the new group, 3R Plus and Alta. And speaking about synergies in the short term, we have some opportunities related to the financial part. So we intend to continue with a wave of optimizations in corporate ownership so that we can accelerate, for example, solving tax losses so that we can take advantage of the gains linked to the deal related to goodwill. of the merger deal and also gains related to allocation of the debt in the portfolio. We have some debts that can be prepaid. There are debts that were already issued on the side of an outcome. Of course, they were already conceived for the benefit of the new group, the new company, and all of that tends to reduce the average cost of debt of the company. and reduce the whack of the company. And we are also working and hoping to have an improvement in the ratings of the company. Of course, all of that will be reflected in the average cost of capital, particularly the average cost of debt for the company with a combined business. Other operating efficiencies can be derived from D0, some contracting, some systems, some joint opportunities, particularly in offshore upstream, considering Atlanta Field and Papateha. We have been working on this. We have been evaluating this. Also insurance. Here we have an opportunity to reduce costs. That's something that both companies and AutoEntry have been working on. So we have an intense schedule ahead of us. Some synergies in the six to 12 months horizon can be realized. Others to be realized in 12 to 18 months, some opportunities to improve price for gas and oil. So this will be worked on, but more to the future. Regarding short-term priorities of the new company, they're all linked to execution of these activities. Regarding the natural gas and GPU, Matos can add. Hello, Mileni. Good afternoon. Regarding the MOU that you mentioned that was signed This involves the NGPU plus one pipe. A pipe that extends from the petrol rack fields that crosses the petrol rack fields and gets to the NGPU. So that's kind of the perimeter, the scope. It involves a gas treatment, a gas processing, and other assets in the mid downstream. And basically, regarding what I can tell you, in addition to this scope, the idea is that there will be some kind of equity deal in this partnership. The idea is that this partnership, I mean, what we're envisioning is that while there is a formed committee of the two companies, it is involving some disciplines. So we have the legal team discussing, trying to get to the best design, the best format that will bring advantages to both companies. And there will not be too slow moving from the regulatory standpoint, also considering real estate because it's part of the industrial area. So there is a discussion with that kind of focus. And there is a discussion with a focus on operations and costs. Not just cost, but financial aspects of the NGPU. Some operational aspects, which is the main thing, and there is an interesting exchange considering the companies. What we expect is that there will be a final final design in 45 to 60 days tops. That's our purpose. That's the target of the MOU that was signed by both companies. Excellent. Thank you very much. Thank you, Mileni. Next question from Mr. Tiago Casqueiro with Morgan Stanley. Mr. Casqueiro, go ahead. Well, good afternoon. Thank you for taking my questions. I actually have two follow up questions more directed to synergies. The first is about distribution. How do you envision that NPV of the synergies? How do you imagine that it will be distributed? in the three years of operation of the joint company, considering terms of cash capture? And the other question would be more related to the merged company. How long do you think that the new company will be able to deliberate on a potential portfolio recycling? Thank you. Thank you, Tiago, for the questions. As regards synergies, We have a very integrated process with an outer so that we can accelerate as much as possible, the financial synergies in the next 12 months in the financial synergies are the most relevant. So. The company's intent is to be able to implement this by mid of next year. From the operating standpoint and CapEx standpoint, this will be extended over the next few years, but we'll try to materialize the first operating synergies also in the short term, also this year. So we'll use optimized resources regarding logistics, of shore emergency plans, contingency plans, all of them related to both operation and CAPEX. The classical example here is the operation of a well drilling. We can use similar rigs or the same rig at both Papaterra, Atlanta, Oliva or Malumbe. So the same drilling rig can be used in a single campaign. That makes things a lot easier. It drives down costs, reduces mobilization, remobilization, cash usage, all of that are operating in capex synergies. Lastly, commercial synergies. These are less relevant. They account for 10-12% depending on the scenario and the total volume of synergies. These should be materialized as of next year. We are considering a time horizon of 12 to 24 months. In other words, more than half of the synergies are expected to materialize in the first year and then The rest will be for year two, year three, to really crystallize all of these energies. Second aspect regarding the Liberations. Here we prefer to wait until the next meeting so we can comment on that. Mathis is going to be a board member of the new company. And this will definitely be a priority. This will be definitely debated over the next few months. We believe that by year end, we should have a clear guideline regarding allocation of capital, the portfolio, inorganic versus organic growth, dividend payment, and how to balance all of these fronts. Perfect. Thank you very much, Pizarro.

Next question from Rodrigo Almeida from Santander. You may proceed, sir. Good afternoon, Mateus, Denise and Pizarro. First of all, I'd like to congratulate you for the closing of the merger and wish you the best of luck. I only have one question and it's related to cash generation. So I want to revisit the topic previously mentioned, but I want to focus on and the balance of Petrobras related to the relinquishment of Papaterra. I mean, I think we saw that in the previous quarter and you also talked about the amount. But that balance increased a bit now. So how could we look at this relinquishment process if there is anything else to be done or whether you will continue to do something about it? And even now that we're talking about the subject, can you talk a little bit about the prepayment of receivables? I think it's clear to a lot of people in the market, but the point is that you are I mean, this is a subject from the past, so you're probably just anticipating something that you've done before. I just want to reconciliate the entire process. Okay, Rodrigo, thank you. I would like to remind you that we do have a decommissioning agreement for SPE involving Papaterra and Petrobras that involves about $125 million, give or take, that will be dispersed by the relinquishment of wells in Papaterra. We concluded the decommissioning of two wells. We already issued a reimbursement invoice and one of them, we anticipated something that has been performed and then we prepaid receivables related to sales or products. I mean, when the invoice has been issued. So we are not anticipating any non-performed load or services that were not concluded. Basically, because we were overly cautious, we put everything in a very transparent way in our income statement saying that everything is linked to previous years when the invoice has been previously issued. From now on, We will certainly have some wells to be decommissioned in Papatejo, not in this campaign, not with this rig at the moment, but in the future, we still have some financial amounts to be reimbursed by Petrobras related to the Papatejo field. Okay. Thank you. And I wish you the best of luck. Thank you. Our next question is from Regis Cardoso from XP. Please, Mr. Cardoso, you may go on. Good afternoon, Mateus, Pizarro, and Denise, and all of you joining us today. I know we are running out of time, so I'll try to be very brief. In terms of the NGPU, we talked about the equity partnership. What do you think would be an ideal design Or whether it would make sense to think about a carve out or a meat streaming company, or whether this would potentially contemplate more assets that are in the scope of this MOU. What would be the benefit of bringing A third player, whether the player is financial or whether is a majority player is an operator or not. It's along these lines, you know, whatever you can tell me. And another topic about Papa Terra, I think it's clear that the main priority is PPT 52. But if we could probably zoom out a bit and look at the asset from above, Tell me what would be the capital need or capital requirement, capital requirement versus upside. And what you would have as a counterpart for each of the allocations and whether you will potentialize this energy with Atlanta, if that would help you with the other Papateja projects. Thank you. Good afternoon, Regis, and thank you for your questions. I will answer the first question, and Pizarro will answer the second question. In regards to NGPU, the perimeter we've been talking about only refers to gas processing and treatment with Petro Reconcavou, and that was the subject of the MOU. Other mid downstream discussions we've had it some time ago, but they got cooled down, but they didn't cease to exist. They are still there. But speaking more specifically about NGPU and the conditions of Contorno, of course, I'm limited in terms of the scope I can give you. But the ideal format would involve an equity partnership, as I said before, that would involve potentially as a stake for the potential partner. But the specific format, this, in fact, involves a lot of things because it not only involves the best format when it comes to an M&A transaction, but it also involves the speed of which we want to do that. The format as well that not only contemplates regulatory issues, but also real estate issues. So within the legal scope, there are several issues that are variables, be it speed or other optimizations. Even in tax terms as well, all of that is being discussed and in fact, I think This will be solved very quickly because the discussion is way advanced. In terms of meat downstream, we did not expand the MOU. It is within its original scope. We had other discussions about it. And again, what do we envision? And now talking about the concept of the company, and this will be rediscussed within the new guidelines of the company, but we What we could see at the time is that, in fact, upstream is the business of the company in terms of EBITDA margins and the EBITDA that we generate. And even though we have a huge potential in the mid downstream, it is an integrator of the productive chain. It is a very good logistic option. So it plays an important role and it represents an advantage in the chain more than when I make a comparison of effective financial margin. It does have its relevance. And in this context, what did we have in mind? Okay, we will bring a partner that is an expert in trading or distribution and also a partner that could add more value so that we don't have to Allocate a lot of resources to draw up strategies for something that once I again compare it to financial metrics, It has no measure of comparison with production, which is the main link of the chain of any commodity where you have a significant margin effect, which is the business of the company. And even though I say very carefully, these are very important assets, but the main focus of the company was in. I mean, that's why there are so many debates about it. the idea would be to bring somebody that could add more value and that we at the end of the day we could you know maximize the NPV and we wouldn't have to deviate you know the resources of the company to something that was not part of our core business okay Regis just to add to that answer about Papa. There has something important that we have already reinforced in other earnings. Earnings calls is that once we conclude that first phase of integrity recovery in the integration of the main systems and Denise mentioned the main offloading system because fortunately now it has been integrated so we don't no longer need a small vessel to which we paid a daily rate just to hold our things in, you know, at high seas. So the main system of system generation and boilers are run by gas rather than sea diesel. We can remove fixed and sometimes variable costs that are linked to the operation. In parallel, when we run an evaluation of investment and capex of new wells in Papaterra, Usually the profitability is very positive when we compare it to our average portfolio as FPSO has a fixed cost. I mean, if you look at the cost tree, most of the costs are fixed. Every five, six, seven, 8,000 barrels we bring Once you exclude royalties and trading discounts and oil sales, the margin is quite high. The epitaph margin or the net income per well is quite high, given the fact that the costs are almost the same costs that are already inherent to the vessel operation. Papaterra is an asset where the first 10,000-12,000 barrels are very significant because they pay for the cost of the operation. And from then on, our EBITDA margin, well, depending on the quarter, I mean, once it goes over 20,000 barrels, our profitability and our lifting costs and the operation becomes very efficient. And that's what we look at in the mid and long range. And that's what we are doing about Papa Terra, thinking about the asset with a more like a bird's eye view. Okay. Okay. I just have two other very quick follow ups. Okay. In terms of NPGU, I understood what you said. My question is whether the partner is Petro Reconcavo. Yes, it is. Yeah, it is Petro Reconcavo. Yeah, as part of the consortium. And in terms of downstream, midstream, you may think about another partner. Yeah, precisely. And Papa Terra, I don't know whether you're already mapped out the total size of the opportunity. I don't know whether it will be cost per well times, you know, or just can you give me an idea of the size of the capital involved? We don't give any capex guidance or guidance on development plan, but what we present is the certification of the reserves. Some assets have similarities between the internal planning of the company and certification of reserves. In the case of Papa Terra, Things are very similar in terms of cost per well, but it's it's important to mention that that's a very typical offshore asset. The depth is about a thousand meters. They use the same rig, the same rig that drilled Atlanta is the rig that came to drill Papaterra. Therefore, the daily rate cost or the cost per well, it's very easy to compare to other companies. Obviously, the first wells are more cautious, meaning that we hope to have an optimization of cost per well. So when we look at it in a more integrated fashion within Alta, we see great opportunities for synergies in the campaigns because of the improvements in synergies and the rig because the utilization can be done by the same team. But the cost per well, if we look at a reserve The results certification ranges between $60 to $80 million depending on the trajectory and whether it is linked to FPSO or TLWP. But in terms of opportunities, Here we say that our reservoir team, every two or three months, they bring some new opportunities at Papa Terra. We continue to select the first seven or eight wells to include in our development, planned production wells and about two injection wells that could help maintain Pressure more stable with the lowest possible decline in the mid to long range in Papaterra, even though they are not extremely necessary. So that is just a complementary strategy to maintain the longevity of the asset that could or could not be implemented. This is constantly analyzed, thinking about the offshore platform together with Atlanta, Oliva, Malumbi, and I think I would just mention an additional aspect. Today we are already the largest onshore operator in Brazil If not Latin America, it's difficult to run a comparison in the little bitty details. But if we add up all of the operations from Colombian operators, we remain as having the largest onshore operation in Latin America. And now, fortunately, we also have a larger scale with the onshore assets. This brings about great opportunities to be efficient in both segments, both onshore and offshore. and gives us also opportunities to look at synergies with operators that are adjacent to our operations, both onshore and offshore. Therefore, we see some good opportunities in the mid and long range of assets that are adjacent to assets already operated by 3R. OK, thank you.

Thank you, Regis. The question and answer session is ended. We would like to turn the floor to the management at 3R Petroleum for their final statements. Very briefly, I'm not going to take up too much of your time, but since this is my last day as a 3R executive, my last day, first I'd like to thank all the 3R teams. All of the employees, this was an intense story. A good part of it during the COVID-19 pandemic, we practically built a portfolio with everyone working from home. And this was a very intense story in terms of equity, debt, M&A's, challenges overcome in terms of production, integrity. So at this time, I can only thank my peers and thank all professionals for their professionalism, patience with me. I tend to be very anxious, so I put a lot of pressure on people. I'd like to thank all of you in buy side and sell side for the criticisms, for the compliments, always making us think, and this has been a fruitful process. I would like to thank the different boards of directors that we had. They were always advising us. and a very fruitful way, giving us good directions for the company. So this is it. Thank you very much. Well, we have to remember that we had a very intense period of work. I would like to thank our employees. And for their respect, the transparency, the good relationship and everyone's dedication. I think it's fundamental. And this is what led us to build this company. The good results stem from the wonderful team we have here. We'd like to thank our shareholders for your trust. I trust in us, the management of the company. I'd like to thank my colleagues and for sure this new company will be very successful. It's a very good company with very good assets. This is going to be a very important phase, a phase of growth. I wish a lot of success to everyone. Thank you, Matheus. Thank you, Denise. All the partnership. Thank you to all of you that follow us. We will continue ahead. We're very excited with this new phase of the company. There are many challenges ahead, but many opportunities as well. So thank you very much for joining us today. We'll end this call. Thank you. This concludes the conference call of three or petroleum for today. Thank you very much for participating. Have a great day.