Canacol Energy Ltd.

Q4 2022 Earnings Conference Call


spk_0: good morning and welcome to the chemical energy fourth quarter and for your twenty twenty two financial results conference call all participants be a little only mode could you need assistance please ignore conference buses represent the starkey followed by zero after today from fission they'll be an opportune to ask questions to ask a question you ever star than one your touched on phone to withdraw from the question que prefer starting to please note of that it's being recorded our knowledge turn contradictorily know roscoe vice president investor relations please go ahead
spk_1: good morning and welcome to can have called for quieter and year two thousand and twenty two financial we saw a conference call i am with my third call gamma president and chief executive officer unless your job and bad not chief financial officer before we begin it is important to mention but the comments on be called mechanical senior management can include projections of the corporation future performance these projection of me they're comfy good any commitment of the future we thought that nor take into account risk or uncertainty that good materialize of a result chemical of films no responsibility in the event that future results are different from their projections shirt on the conference call please note that old final figures on the goal are denominated in us dollars will will begin to britain a geisha with our president and ceo mister charles gamba look over the operational highlight for the fourth quarter mr gave them bednar our for your fault will down the caught financial highlight with your gamba will close with a discussion of the corporations outlook for twenty twenty three and beyond and finally it will will have a two and a fishing i will now turned the cold over to mr chow down that president and ceo of chemical and
spk_2: based early the you good at noon agriculture goes to doesn't forty two year and confiscate it without it will you do the corporation achieve several what he goes with respect to created by were shareholders and other stakeholders including an increase in relied natural gas fields year over year in line with guide huge to thirty percent return on capital employed we also generated i'd people operating margins averaging seventy seven percent the complete reports stronger people financials which allowed to continue to return to happen to shareholders and that way to be alert in the didn't a granted share bike in addition to announce your financial results yesterday we also announced a year and reserves of the week prior discoveries we made in two thousand twenty two or it me to that it actually ninety three billion cubic feet of new proven last round gas reserves replace you production in two thousand to buy more than one hundred and fifty percent they also made it is a chameleon in the middle make valley that literally evaluated also have an expiration well that we drilled in two thousand twenty two were successful or gas exploration girl you don't you the past nine years of view that an inch shooting eighty five percent hit rate a commercial discoveries the get ahead to two thousand twenty three we are excited to get a position to continue during a combination of low risk the government or ish was senate which will be do you do our prospects based on seismic with wired into doesn't really teach as well it's and higher impact exploration was who planned to drill outside of our are scenario which is that your he has to achievements we continue lead in the industry is one of the clean it will get producers in both columbia in north american with scope one it's scope to greenhouse gas emissions that are eighty percent lower than our oil focus peers and fifty percent lower their gas focused views on average three gb thousand twenty two to the continuous and successful implementation of the corporate used to strategy you take several achievements such as the every parish so brasil from you and eighty and gender equality we were accepted as an engaged corporate member of the very principles initiative and achieve cheap significant and outstanding upgrades and show relive the most important just cheap ratings and rankings internationally well now turn presentation old adjacent that know she awoke will discuss our sport or financials in more detail what he's done a provided people on the outlets they're made of two thousand twenty feet
spk_3: thanks shirl twenty twenty two a good year financially for chemical and stakeholders as we continue to execute er planet develop are drawing natural gas business we report at approximately two hundred thirteen million dollars in adjusted people tax for the for york twenty twenty two a nine percent increase from a sharp and twenty twenty two percent increase from twenty twenty one and roughly in line with that ten percent increase in net revenues adjusted funds flow from operations
spk_4: it would also i've been up
spk_3: which was for presented a hundred fifty nine million if it weren't for a corporate restructuring that we undertook in the fourth quarter in order to better optimize their business which caused a one time sixty five million dollar current tax expense however the corporate restructuring also increased are different tack that that by two hundred two million net income for which we reported a very large increase would have been lowers around ten know enough for work for the restructuring looking past a decline and funds for from operations that was purely due to structuring the restaurant financial results that allowed us to maintain or quarterly dividend paying or twenty seven million the shareholders and applying over thirty million dollar purchase of shares during twenty twenty two the pre preempt potential questions given that are twenty twenty three guidance announcement did not provide cash tax or after tax casual guidance our mention that in the high and case in which we got a tv dot two hundred sixty three million we would expect to pay forty two million in cash taxes are given a payment for share after adjusting for recent five to one shirt consolidation has also remained unchanged since before the pandemic and currently represents an annual leo yield approximately ten percent with the last quarterly dividend paid and jan january in the next what do they be paid on april seventeenth twenty twenty three the resilience and growth and our chief financial metrics also allowed us to recently closed the new and expanded revolving credit facility which is providing significant financial for flexibility as we plant for continued investment and growth in our business looking at are operational results on a quarterly basis or operating at back was unchanged at three dollars and seventy three cents per mc up in the fourth quarter of twenty two compared to the third quarter but up for percent relative to the same quarter and twenty twenty one these results again i the stability and high margin nature of our business to further highlight the strength and stability ever been that's and financial results we want to highlight the return on capital employed implied by or financial statements or last four years it has remained above ten percent for the fourth year in a row and at thirteen perfect for twenty twenty two a significant event subsequent year and was according ever new two hundred million dollars us we're all the credit facility we replaced to facilities with total get capacity of one hundred twenty one million that were set to expire this year with a new facility that it's very similar terms but doesn't require any repayments until february ten twenty seven giving us increased flexibility over the medium term i'll note that the revolvers expiring twenty twenty seven should be well after the company had significant additional corporate cash flows realized traditional gas shells come from the madigan pipeline and it's associated take your pick contracts the revolver also simple five our capital structure as we immediately paid out ten million of bank that with that was outstanding and columbia as well as paid off the twenty five million that votes standing on the medicaid bridge along these actions did not affect the fact that can call will still be in are reimbursed by said court for the twenty five million or any other amounts the chemicals and on the pipeline prior to the environmental permit being released by the government which triggers the second reimbursement all said and done can call now as to deck components the new revolver expiring and twenty twenty seven and the on expiring and twenty twenty eight given the interest rates have been increasing i'm very happy the variable it's secure the term for this facility that were very similar to what we previously had except for an experience extended period of time in closing our twenty twenty two financial results were strong it relatively stable we have significant financial strength in cash deck to pass the unstable high margin operations as a result of were trapped for see as being able to maintain our turn a capital of shareholders while maintaining flexibility to wrap up investment levels when we think it makes sense to do so at this point they will have the back to cheryl thanks everyone
spk_2: thanks chasing a results for the we're we're in the year showed up i didn't that in a destination long term growth and demonstrate stability work as inch or two thousand twenty three were optimistic that we will continue to see demand and related field lines and patients and strengthen a relatively strong dry cycle related to and nino is predicted to commence in june of this year and last three two april two thousand twenty four as a result nukes at interoperable gas demand related to them electric power generation is very strong to the second half of two thousand twenty three incorruptible prides himself scientists to be strong during this period during the last el nino in two thousand and sixteen we stop writing for intractable binds reach fourteen dollars for mbp you or can relax contractual get for cheap as point three i anticipate ranged between one hundred and sixty two hundred six million and feet per day i guess sales have averaged one hundred and eighty nine that are tbt per day for the first two months of two thousand twenty three so we're starting up year about the midpoint guide gracious from two thousand twenty three take up a contract alone averaged one hundred and sixty million that a cubic feet per day we expect that vision capital and operational resources to execute aren't you get this for the year which include the drilling of up to ten exploration and development wells the acquisition of two hundred and eighty square kilometers of new the seismic on the the i am bad contract to expand expand our exploration prospect inventory computer progressed and you get pipeline ultimate aim continuing our return of capital to shareholders in the form of dividend been share buybacks and finally continue with our commitment to continuous improvement in our gets to process she's i'd like to thank the entire chemical thing as well as or contractors partners and clients for their support and hard work during two thousand twenty two it is our team partners inclined better allowed to continue operating safely sustainably reliably and profitably one best for the future or now ready to answer any questions the might have
spk_0: we will now begin the question and answer session to ask a question my star than wanting a touchstone phone if using a speakerphone please pick up and before pressing the keys he withdraw from the question que please press starting to at this time will pass momentarily december roster
spk_1: thank you
spk_2: when we receive one first question from then you're going to be i left him with the hit but while it why did the current progress of the drilling of polack can you share with as the expected timeline cap bags expected you are ip and potential reserves get up get job full and jason in and help with the second half so the polar one exploration well will be the first deep it hatched we drill in the middle magdalena valley were targeting a conventional he basin center ghastly within the cretaceous i read it was there last year we had planned to drill that well however we were unsuccessful insourcing a drilling rig this well as will be thrilled to run a few thousand will require at three thousand horsepower rig and there were none available in colombia or even south married last year that situation has changed ecu patrol contract the majority of the three thousand horsepower reeks of for their drawing programs the piedmont the at the as basin are starting drop those rich are so we're currently negotiating a three thousand horsepower rate which we assume we will have contracted by june of this year and that in mind we bharti to treated the shouldn't
spk_1: the drill the well from and we anticipate split the well or in third quarter of this year
spk_3: thanks charlie have a fearful a question from the same analyst a widely expected free cash to generation for twenty twenty three are you considering to raise additional that to find the catholics expected to be deployed twenty twenty three and do we have a maximum threshold or cabinet in terms of even if it up ah shirt thanks carolina so our free funds flow ned of cat backs the free ones flow for approximately be enough to pay our twenty seven million dollar david and waving at the outpost evident it's actually a neutral in terms of cash generation of what goes up the door with that said and given this additional sixty five million dollar tax bill with respect to the corporate restructuring i do expect to draw on that two hundred million dollar revolver to pay that particular build made year and once bad at all said and done i expect our he read a three eighty at even thought to that's it you could ah rachel rather to be at approximately two and a half times and that compares with our bond covenant which is three point two five times and the two hundred million a revolver is a bit more room at three and a half time so
spk_1: at to and at times where well within those cover
spk_2: thanks jason the next question is can you share with that how is progressing the environment to life has related to the construction of the managing pipeline when do expect to the cure all required licenses to kick off construction
spk_1: we expect there to obtain the the required licenses by august this year and we anticipate a in the construction process eighty four this year
spk_2: thank you and we have one last question from that and which is what are your overall thoughts on the current administration view on the gas industry do you consider venezuela to be a really thick threat to your business in colombia i think could stick to the current administration in colombia they are very supportive of of the gas industry both the upstream a midstream and downstream given that it it played a key role with this current administration's plan for the energy transition towards that renewable so the current administration's very focused on the elimination of of the use of of oil and coal in the power generation which in colombia and so such to shun of those those fossil fuels would guess so so very optimistic with respect to the current administration's view on on the gas industry which respect venezuela i don't consider venezuela to be realistic threat to our be small gearing columbia are given the fact that that recently that as well as know x a gas export currently all gas in venezuela is either consume domestic be have flared nobody is drilling any gas wells are building any stretch related to to learn to gas transportation in venezuela and third be you know the situation in venezuela remains a their leader they're least slow with respect to investment so no i do not considered
spk_0: the implication that gash of those well to be about short or midterm at what it is rosary
spk_5: a first question from fans will come from oriana cover lack from the lands you may not go ahead hi thanks for taking my question to his identical vote on with balance i had three questions that to crescent i eat when they go by one by one that would be great
spk_2: i'm from having to the with editor thirty done with operations now fully running perhaps you could share more color and how have you think valiant evolving it any thought into the haitian factors and the plant thinking like your yeah yogesh that the kids read through that plant entered operation in september of last year our generation the has been generating on average about it be presented a time but half time weeping selling volumes up to forty million cubic feet per day which have the capacity to plant generate two hundred megawatts at prices ranging up to seven dollars of sixty cents at the wellhead so that's a regular is working out very well it had the advantage of been able to dispatch at a at a lower price even that there's no trans vocation cost associated with getting a gash actually the plan there is the government here had announced another a bit round for the cargo to continue that the they stand by our generation and we are currently registered to participate in that it round up for another two hundred megawatt plant or we expect that be drowned currently scheduled for july this year so we knew very happy with yeah sales and pricing the pets a repo we seek has read though generating upwards the full capacity during the second half of this year i will get it to the el nino in the dry season cut be particularly hard this year and me also dissipate to participate in another
spk_5: it has cerebral like project for another two hundred megawatt stand by plant in the puke
spk_2: and perfect and maybe just is taking your last comment on on participating and you billion round for for activity to like planned on is it already and better for have your twenty three budget on and in and how would the incremental volume for the net yeah which is projects you recall that we we were awarded the has no the consortium of part of was awarded the read the project in two thousand and eighteen are these these these projects as four years and duration and and the new project as well his planned for two thousand and twenty seven to endure operation so he's a quite long term projects we will maintain a relatively low work in interest in the new pope it as we did it as repo and the our main objective of course is to sell gas to to the power projects so so any got filled associate with the new
spk_6: project will not comment until two thousand twenty six or two thousand twenty better going to plant a new kind of enters operation
spk_5: perfect that that fake near and and finally with regards to your typing three exploration program a if you could share more color and which areas will be at the core of your strategy minding that polo on is expected for the last the third quarter and enduring exploration can they meant that may maybe will drive you to the groin area that i'm
spk_2: that i may not be unpopular professional as suggested by your technique how are you planning to balance there it's we have three types of exploration program were executed this year the first it is a very near field exploration program which consisted free wells a new low been yeah and sorry that it really well that will target the video reservoir which was or mean producing has worked a deeper levels so so we're drilling the upper part of the studio and in the near feel very around mobile had been exploited by previous operators added did not drill all the way down to the bottom of the shield and we know that there is gas throughout the see the also those three near field exploration was will target sort of that lower gas gas within the lower part the studio a we're we're looking that bad for the three wells have a tomb target the of about sixty dcf unrest source and the that the value of be near future prospects they can be tied into production immediately one of the was low one is actually been drilled from our production facility that hello or drilling right right underneath a hobo processing plant for people get in the shields let the first type of near field very low risk very rapid commercialization exploration what we're doing the second is on the i am by contract will be shot significant five hundred square kilometers the the seismic program that year so their fight about twenty prospects up that three the the they're all respects within the shield the conventional producing that's why we've prospered all have amplitude an army the socially with them and will be drilling two or three of those the sheer so expiration of at least two of them this year or momo and that other one is the inscription let's move on a bridge to either these are relatively large new prospects based on the t sided required last year and finally in the middle name as i mentioned earlier we plan to drill the call a one well i started in the third quarter of this year so those the that adding athletes are or exploration program generally low risk certainly very low risk in in or near field operations
spk_5: relatively low rate in the new area that will be shot three be and then of course the high risk all a one though
spk_6: okay okay perhaps help that that will take about about think that seven of the total ten next version wealth a lot and i doing them math fragment or fail to understand that
spk_2: our the area that you can't i get the other would be commitment inflation commitment a that correct
spk_5: but greg
spk_0: perfect thank you very much and hang for the make your him
spk_7: and you are next question will come from joseph schachter with se are you may not good thank you very much or good morning a child and jason through questions for me the salon you gotta a very good years you mentioned sugar in your opening remarks on adding reserve hundred ninety one million for three p and you got below fifty nine for for one pr for it
spk_2: how do you move though it's that three be reserved for into love and into a one key and ptp is there any specific drilling that you need to do is are talking the wells up how do we see that that big movement up into the one p category of been and into the pdp category are going forward joseph prevention of the questions with respect to the one p reserves or the reserves we added in two thousand twenty two three of those well really seven was will drill were drilled very late in two thousand twenty two they've been the be pvpv well the dvd discovery the saxophone discovery and each mellow discovery so we were not able given that that those was we really had logged results up in those whilst so we only able to book lot pay debate pay so what we need to do and we're doing right now is where production has been those free wells and with production tests we can move more of the probable reserves into the proven category so a little light on proven reserves based on the fact that we drilled those three wells rate a year in and were not able to production has been in time for booking which is what we're doing now and with that we expect see he a good the a good bump in one piece reserve one of the wanted particular saxophone we drilled in the southwest corner of our be i am i block very close to some recent discoveries made by who call and the energy energy as an artifact at saxophone might actually be good in the same field in general so we're we're very
spk_7: keen to quit the moves that on onto production we're currently working on the tie in about well into orbit which is about seven kilometers away the thing that will not production and with that we can book additional one pew research their job okay wonderful of the second one is mentioned of course the august you ought to get the government the permitting and then they can start construction of of the effect of construct construction and you for oh at any have issues with any have a lead time i am the pipe compression our in old issues where they from environmental area there are tougher as as don't care about with the imax it cost of gas pipeline the cost of have gone nuts and their way way out of line with the original budget
spk_2: are you delay that you're concerned about or anything that needs to be done by a certain date to take that risk down though the key the key m the key factor rate now joe is receive an environmental chronic which we expect in august the dimensional little earlier with respect to because this was awarded a turnkey contrast the be all and a boom we're not exposed whatsoever celebrity any any cost overruns those are borne by the yet consortium which was awarded the project obviously with any pipeline project and the three hundred quandary pipeline project is not particularly a big but obviously they're they're always issues with communities their physical issues with some of the train or but all of that had a not taken into account you clear you see either consumed the previous and executed part environmental permanent process for the government satisfaction and mcneese as action and the technical the technical that challenges will be addressed by having construction in performed or execute and five separate front they should be so so that will move things along roads we could be so i think the console
spk_7: sheehan it was worth the project managing a very good wait the engineering that that played execute project
spk_2: i have one more than the terror figure going to be paying do they have a any escalator the afraid of the cost overruns are or do you have a from price going forward on on transportation
spk_8: it it prices from escalated at the inflation either know
spk_2: there are no
spk_7: contingencies related to cost overruns whatsoever so the price is from
spk_0: it will thank you very much for the response and dad or congratulations
spk_9: backstrom
spk_10: or next question will come from peter hitchens with edison you may not go ahead
spk_2: good morning everyone or afternoon here most my questions have been on third i was just intrigued by the timing of all these events for the coming through what are the key for three times that we should be concentrating on over the next six months it would respect to add the drilling program you're the only well if we have all of that permits enchant girlies worlds are we have direct contracted girl is what would the exception of the three thousand horsepower read the drill hole left a boy anticipate have been that rig contracted or in june the on these things can always flip a little bit fortunately drilling activity in colombia is increasing from last year in particular on the oil side given me the an event hear higher tax rate mouths were corporate tax rate or oil producers so that that's seen an impact the direct impact on on the pay for drilling lot of the oil producers here in colombia will enact patrol scaling back there drawing programs appropriately the cover the at the no tax they have to big and let us get fresh and that rig bill bill is better article for the three thousand horsepower so you know that junior the key date secure that their that article or drilling rig another key dates as i mentioned little earlier relate to oriented question is the new bid round for or power generation stand by pirated version or that be tape is scheduled for for the third week of july so that's another key dates for us in that a week after the pager argue the projects will be awarded so we'll know whether we're gonna be participating in the new from electric power pen fled project okay date there
spk_0: it's late july and then finally with respect to our ogle near a budget that i mention which in environmental permit i to come out in august there's always risk with that in that that is it government or process there's always the potential for delays associated with them would be cheaper the environmental permits i think those are the key you read the key will looking forward year old the next six months peter
spk_11: thank you again if you have a question please post star than one our next question will come from louis serrano with goldman sachs he may not go ahead
spk_2: baggage thank you for the call to the three very quick question i get the first one if i understood correctly drawn about thirty five million dollars of the credit line
spk_11: you probably planned to draw another sixty five for the tax bill
spk_3: certainly you about one hundred million dollars available are given you know how the mighty ducks turn and with your bones now in the eighties would you consider sort of drawing a little bit more on the credit line in buying back some of those bonds in the secondary market that will be the first question he added taped up questions why time my cricket unlikely that we would do that ah you know you have it another year and a bit too many pipeline comes on which with provided more at financial flexibility
spk_12: today with going to take consider things like that at at at a later date but i pick at that point in time it's unlikely we do that
spk_3: i will also metro we actually had a pivot for her rating agency
spk_11: if you know who basically war that's not to do things like that because they were considered a sign of abstract which sounds a bit counterintuitive but damn you know all things considered at i don't believe that something will be doing in the near term
spk_2: well that understand
spk_13: then second me there's been you know the last few weeks
spk_3: a lot of talk about potentially the non deductibility of royalties part of the fiscal reform which is the only thing that the only part of it that sexually impacting you
spk_2: potentially be involved bag or declared unconstitutional has there been any update to that i'm i have no update as to if or when anyone has challenge that it as unconstitutional at this point in time i could be behind our on that particular topic it's conceivable that someone already has but not to my knowledge get us are just that veggies new been there been seven that in they're not to throw out by by the industry against the the ministry last year that so those are currently a be accepted by the judge in charge and those are currently going to be moved from the court and that's related to both
spk_14: the ninety that the duty of world peace
spk_11: as well as the
spk_7: surcharge on on taxes for opens
spk_11: thanks for out
spk_2: ah the top of that you and then the a lot question you've already answered a lot of a lot in a previous question budgets in the reserves on the under on the one be and you're saying it's mostly for that decline that we're seeing and in the reserve the point is most me on a painting issue can you help us out of understand the magnitude a bad timing issue like for example i he about eight percent decline in one be in like thirty percent plus declining in ptp year over year should we expect if we currently live claiming to be sort of laddie show is still down on a lot about growth since one the the order of magnitude would be helpful it is two factors associated with that at first as we had them welsh and him related to to production volumes in december so so shut in wales are nearly moved from pete eat it you can't be basically to their shit that a matter of bringing those many the well the been brought back on it and the production of to two hundred million cubic feet per day stores ordered second as i'm a dimensional earlier was related to that that it
spk_15: real life exploration discovery you are made in december of last year's to we were not able to you production has those lousy kind of book or we are currently doing that production pays the mouse or with at the seat
spk_2: she's done was probably reserves that would put in two thousand twenty two so to those was moved to pee pee have proven category and finally with his at you overlook by she know we can it the experience would be fine made of about ten percent per year
spk_11: which of course we offset to that the drilling you are oh so
spk_0: we typically
spk_16: add more to pee reserves that we produce per year and then she's the timing issue with getting used to be or get you the prowl goes into the pool category as mentioned earlier
spk_1: hurry
spk_3: thank you very much as on i to turn over to catalina roscoe for additional questions from the webcast thank you we will see the couple of questions from going to funny i was filmed cause i am also the first one is please explain better kind of course corporate restructuring process and morty as sure i can take that so you don't back in two thousand and eight when can cause third it until about twenty twelve the company was that chemical was a an oil producer
spk_1: yeah privately twenty twelve we acquired sean i entered the natural gas business
spk_2: you know what that said we've grown by a febrile acquisitions and you know i have such as such have an overly complex organization structure so you know the restructuring allowed us to simplify that we've essentially taken for companies out of the organizational chart
spk_1: consolidated some outset in see whether at fifteen companies and the yolk that offers you know administrator logistical when and caught deficiencies for us
spk_3: he gave him the next question number where to each wage or the extra tory success rates in twenty twenty one and twenty twenty two yeah i that that he got shot sorry so light you thousand twenty one we drilled eight exploration was with a success rate of seventy five percent and into that and like you to we drilled have an expiration was one hundred percent success rate thanks child the next question is from much foundation from oak tree capital management is sixty five million tax bill the here in addition to the forty two million cash taxes assume under the high end guidance for twenty twenty three which is used by tv dot of two hundred fifty three million dollars right so that that sixty five million dollar tax bill associated with their restructuring was a twenty twenty two tax event so if you look that are twenty twenty two financials which were filed yesterday
spk_1: you'd see that our current tax on the p a l was one hundred and eleven million so sixty five of that would relate to list restructuring leaving you know the additional forty six million as i'll call you know regular tax
spk_2: as that december thirty first twenty twenty two on the balance sheet you'll see that their that seventy five million dollar tax bill or story taxes payable at december thirty first and sixty five million of that seventy five would be a result up the up the restructuring process with respect to twenty twenty three on that two hundred and sixty three million of a better it would now generate all me forty three million of current tax think jason a we have another question from nico monotony cause when are you from being gotten snyder one will be the tv one slow test results be available and how long would it take to connect pipeline if successful it's production from these well in twenty twenty three guidance i thank you we currently has been i didn't eat while under a long term catch we were least those results are one that has just completed in april
spk_1: ah and we're currently evaluating development options for that discovery which would include hein well into the he'd yeah i get like one located actually thirty kilometers to the east of the discovery we're also looking at possibility of installing a liquid occasion
spk_2: after fifteen billion cubic feet per day on that discovery the transport the gas liquids one or two to barry's commercial option so we should have ah post production long time production at our results out sometime in equal bank account we have one last question from goulioti that are you feel evaluating potential opportunity to be the one bolivia if so is there any update or schedule for us to follow ah yes we continue to evaluate a natural gas exploration and production opportunities outside of columbia
spk_0: ah and and that is still very much ongoing we're not at this point in time in a position to disclose any of the the current opportunities were looking at

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.