Nine Energy Service Inc (NINE) 2023 Q3 法說會逐字稿

Greetings, and welcome to Nine Energy Services third-quarter 2023 earnings conference call. (Operator Instructions)

您好，歡迎參加九號能源服務公司 2023 年第三季財報電話會議。 （操作員說明）

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Heather Schmidt, Vice President of Strategic Development and Investor Relations. Thank you. You may begin.

提醒一下，本次會議正在錄製中。現在我想將會議交給東道主、策略發展和投資者關係副總裁希瑟·施密特 (Heather Schmidt)。謝謝。你可以開始了。

Thank you. Good morning, everyone. And welcome to the Nine Energy Service earnings conference call to discuss our results for the third quarter of 2023. With me today are Ann Fox, President and Chief Executive Officer; and Guy Sirkes, Chief Financial Officer. We appreciate your participation.

謝謝。大家，早安。歡迎參加九號能源服務公司的收益電話會議，討論我們 2023 年第三季的業績。今天與我在一起的有總裁兼執行長 Ann Fox；和財務長蓋伊·瑟克斯 (Guy Sirkes)。我們感謝您的參與。

Some of our comments today may include forward-looking statements reflecting Nine's views about future events. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations.

我們今天的一些評論可能包括反映九號台對未來事件的看法的前瞻性陳述。前瞻性陳述受到許多風險和不確定性的影響，其中許多風險和不確定性超出了我們的控制範圍。這些風險和不確定性可能導致實際結果與我們目前的預期有重大差異。

We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Our comments today also include non-GAAP financial measures. Additional details and a reconciliation to the most directly comparable GAAP financial measures are also included in our third-quarter press release and can be found in the Investor Relations section of our website.

我們建議聽眾查看我們的財報以及我們向美國證券交易委員會提交的文件中討論的風險因素。我們不承擔以任何理由公開修改或更新任何前瞻性陳述的義務。我們今天的評論還包括非公認會計準則財務指標。我們的第三季新聞稿中還包含其他詳細資訊以及與最直接可比較的 GAAP 財務指標的調節，並且可以在我們網站的投資者關係部分找到。

I will now turn the call over to Ann.

我現在將把電話轉給安。

Thank you, Heather. Good morning, everyone. Thank you for joining us today to discuss our third-quarter results for 2023. Revenue for the quarter was $140.6 million, which was within our original guidance of $140 million to $150 million. We generated adjusted EBITDA of $11.6 million, reflecting an adjusted EBITDA margin of 8%. Diluted EPS was negative $0.39.

謝謝你，希瑟。大家，早安。感謝您今天加入我們討論 2023 年第三季業績。該季度營收為 1.406 億美元，在我們最初 1.4 億至 1.5 億美元的指導範圍內。我們的調整後 EBITDA 為 1,160 萬美元，調整後 EBITDA 利潤率為 8%。稀釋後每股收益為負 0.39 美元。

We continue to see activity decline throughout the quarter. Since the end of 2022, the rig count has declined by over 150 rigs or approximately 20% through Q3, with over 80% of rigs coming out in the second and third quarters. These rig declines led to additional pricing pressure in Q3 affecting all of our service lines.

我們整個季度的活動繼續下降。自 2022 年底以來，截至第三季度，鑽機數量已減少 150 多台，約 20%，其中超過 80% 的鑽機在第二季和第三季問世。鑽機數量的下降導致第三季的額外定價壓力，影響了我們所有的服務線。

For Nine, July began on a normal trend line. However, we experienced activity declines as well as operational inefficiencies in August, leading to elevated white space in the calendar, significantly impacting revenue and profitability.

對九號來說，七月開始於正常趨勢線。然而，我們在 8 月經歷了活動減少和營運效率低下，導致日曆中的空白空間增加，嚴重影響了收入和獲利能力。

September returned to normalized levels. And as we look forward, we are not expecting a recurrence of what happened in August in Q4 and expect the business to be back to trend for Q4, though some normal holiday and winter seasonality is expected. Within our existing service lines, cementing is driven by the rig count and new wells drilled and is typically impacted first with activity changes.

9 月恢復至正常水準。展望未來，我們預計第四季度的情況不會再次出現 8 月發生的情況，並預計第四季度業務將恢復到趨勢，儘管預計會出現一些正常的假期和冬季季節性因素。在我們現有的服務線中，固井是由鑽機數量和新鑽井驅動的，通常首先受到活動變化的影響。

In conjunction with the rig decline, cementing activity was down this quarter compared to Q2. Nine's cementing division operates in the Permian, Eagle Ford, and Haynesville. And since the end of 2022, the collective rig count in these basins is down by almost 100 rigs or approximately 20% through the first three quarters of 2023.

隨著鑽機數量的減少，本季固井活動也較第二季下降。 Nine 的固井部門在 Permian、Eagle Ford 和 Haynesville 開展業務。自 2022 年底以來，到 2023 年前三個季度，這些盆地的總鑽機數量減少了近 100 台，即減少了約 20%。

This has impacted both volume and pricing for this division. We do expect Q4 revenue to be slightly higher than Q3 and cementing. Completion tool revenue was down this quarter due to a significant reduction in international sales quarter over quarter, as well as reduction in US completion activity. As you may recall, during Q2, we had a large one-off international sale that inflated Q2 international revenue.

這影響了該部門的銷售和定價。我們確實預計第四季的營收將略高於第三季並鞏固。由於國際銷售額季比大幅減少以及美國完井活動減少，本季完井工具收入下降。您可能還記得，在第二季度，我們進行了大規模的一次性國際銷售，導致第二季度的國際收入增加。

During Q3, international sales returned to more normalized levels. The EIA reported US completions were down by approximately 10% in Q3 versus Q2. There is always a lag between rigs coming out of the market and completion activity. And in Q3, we really began to see completion activity catch up with rig declines, specifically in the Haynesville where completions were down approximately 18% quarter over quarter.

第三季度，國際銷售恢復到更正常的水平。 EIA 報告稱，美國第三季竣工量較第二季下降約 10%。鑽機退出市場和完井活動之間總是存在滯後。在第三季度，我們確實開始看到完井活動趕上了鑽機數量的下降，特別是在海恩斯維爾，該地區的完井活動環比下降了約 18%。

The industry is pushing towards longer laterals, some of which are reaching as far as 4 miles and pushing beyond what the industry thought was possible. Longer laterals are beneficial in reducing costs and driving efficiencies, but also make the completion far more complex and riskier, especially with the drill-out of floods. Not only can coil get stuck, but as the laterals extend, it can also require additional trips in and out of the well to replace the bit.

該行業正在推動更長的支線建設，其中一些長達 4 英里，超出了該行業認為可能的範圍。較長的支管有利於降低成本和提高效率，但也會使完井工作變得更加複雜和風險更大，特別是在洪水的鑽探過程中。不僅線圈會卡住，隨著支管的延伸，還可能需要額外進出井來更換鑽頭。

These macro trends are helping drive the adoption of Nine's dissolvable plugs as well as shaping where we focus our R&D resources. As part of that, we are extremely excited to announce the commercialization of our new Pincer hybrid frac plugs. The Pincer is comprised of 47% less material than our predecessor Scorpion fully composite frac plug, which has seen over 350,000 successful runs.

這些宏觀趨勢正在幫助推動 Nine 的可溶解塞子的採用，並決定我們的研發資源的重點。作為其中的一部分，我們非常高興地宣布我們的新型 Pincer 混合壓裂塞已商業化。 Pincer 的材料比我們的前身 Scorpion 全複合壓裂塞少 47%，後者已成功運行超過 350,000 次。

The new Pincer plug offers industry leading drill-out times and significantly reduces bid work allowing for more plugs to be drilled on a single trip. Nine was able to utilize both composite and dissolvable materials to create this plug and we are confident it will provide substantial completion efficiencies for our customers.

新型 Pincer 插頭提供業界領先的鑽孔時間，並顯著減少投標工作，從而允許單次鑽探更多插頭。九號能夠利用複合材料和可溶解材料來製造這種塞子，我們相信它將為我們的客戶提供顯著的完井效率。

We have tested the plug with multiple customers and similarly to our other plug technology, we believe we will be able to increase volumes. We believe we will gain new market share by winning new customers while simultaneously switching existing Scorpion composite plug customers to the Pincer, which has a higher margin profile.

我們已經與多個客戶測試了該插頭，與我們的其他插頭技術類似，我們相信我們將能夠增加產量。我們相信，我們將透過贏得新客戶來獲得新的市場份額，同時將現有的 Scorpion 複合插頭客戶轉向利潤率更高的 Pincer。

We will keep you updated as we introduce this technology to the market. Wireline continues to be challenging from a pricing perspective but remains an important part of Nine's portfolio. We are focused on growing market share in the Permian Basin, and our team has done a great job maintaining our strong market share in the Northeast. Pricing in this region has been depressed, and we'll need to see significant activity increases and sustained gas prices over $3 for any pricing leverage to move back to OFS companies.

當我們將該技術推向市場時，我們會及時向您通報最新情況。從定價角度來看，有線仍然具有挑戰性，但仍然是 Nine 投資組合的重要組成部分。我們專注於增加二疊紀盆地的市場份額，我們的團隊在保持東北地區強大的市場份額方面做得非常出色。該地區的定價一直處於低迷狀態，我們需要看到活動大幅增加並且天然氣價格持續超過 3 美元，才能將任何定價槓桿轉移回 OFS 公司。

Coiled tubing had a very difficult August but has rebounded nicely in September and thus far into Q4. Coiled tubing operations in the Permian, Eagle Ford, and Haynesville and any rig increases in these basins will provide nice growth opportunity for this business.

連續油管在 8 月經歷了非常困難的時期，但在 9 月以及迄今為止的第四季度出現了良好的反彈。二疊紀、伊格爾福德和海恩斯維爾的連續油管作業以及這些盆地的任何鑽機增加都將為該業務提供良好的成長機會。

I would now like to turn the call over to Guy to walk through detailed financial information.

我現在想把電話轉給蓋伊，讓他了解詳細的財務資訊。

Thank you, Ann. As of September 30, 2023, Nine's cash and cash equivalents were $12.2 million with $22.7 million of availability under the revolving ABL credit facility, resulting in a total liquidity position of $34.9 million as of September 30, 2023. At September 30, 2023, we had $57 million of borrowings under the ABL credit facility.

謝謝你，安。截至2023年9月30日，Nine的現金及現金等價物為1,220萬美元，循環ABL信貸安排下的可用金額為2,270萬美元，導致截至2023年9月30日的總流動性部位為3,490萬美元。截至2023年9月30日，我們在 ABL 信貸安排下擁有 5,700 萬美元的借款。

We had a number of vendor payables go out before September 30, and the delay in some accounts receivable collections until early October. As a result, our cash balance as of September 30 was at a trough. As of October 31, our cash balance had recovered to $34.8 million.

我們有一些供應商應付帳款在 9 月 30 日之前就結清了，一些應收帳款的催收也推遲到了 10 月初。因此，截至 9 月 30 日，我們的現金餘額處於低谷。截至 10 月 31 日，我們的現金餘額已恢復至 3,480 萬美元。

As per the terms of the indenture governing our senior secured notes, we are required to periodically offer to repurchase such notes with a portion of any excess cash flow. We did not generate any excess cash flow as defined in the indenture and the most recently ended two fiscal quarters. As a result, no excess cash flow offer will be made to noteholders this month.

根據管理我們的優先擔保票據的契約條款，我們需要定期提出用任何超額現金流的一部分回購此類票據。我們沒有產生契約和最近結束的兩個財政季度中定義的任何超額現金流。因此，本月不會向票據持有人提供超額現金流要約。

A reconciliation of this calculation is available in our Q3 earnings release. During Q3, we also had an inventory reserve of approximately $1.2 million in our completion tools business, which was higher than normal and negatively impacted adjusted EBITDA.

我們的第三季財報中提供了該計算的調節表。第三季度，我們的完井工具業務的庫存儲備約為 120 萬美元，高於正常水平，並對調整後 EBITDA 產生了負面影響。

During the third quarter, revenue totaled $140.6 million, with adjusted gross profit of $22.9 million. During the third quarter, we completed a 171 cementing jobs, a decrease of approximately 13% versus the second quarter. The average blended revenue per job increased by approximately 3%.

第三季營收總額為 1.406 億美元，調整後毛利為 2,290 萬美元。第三季度，我們完成了 171 項固井作業，比第二季度減少了約 13%。每個職位的平均混合收入增加了約 3%。

Cementing revenue for the third quarter was $51.9 million, a decrease of approximately 11%. During the third quarter, we completed 5,640 wireline stages, a decrease of approximately 8%. The average blended revenue per stage decreased by approximately 1%. Wireline revenue for the quarter was $28.3 million, a decrease of approximately 9%.

第三季固井營收為5,190萬美元，下降約11%。第三季度，我們完成了 5,640 個有線階段，減少了約 8%。每個階段的平均混合收入下降了約 1%。該季度有線收入為 2830 萬美元，下降約 9%。

For completion tools, we completed 25,940 stages, a decrease of approximately 6%. Completion tool revenue was $32.6 million, a decrease of approximately 16%. During the third quarter, our coiled tubing days' work decreased by approximately 13%, with the average blended day rate decreasing by approximately 4%.

完井工具方面，完成了25,940級，減少了約6%。完井工具收入為 3,260 萬美元，下降約 16%。第三季度，我們的連續油管工作天數減少了約13%，平均混合日工作量減少了約4%。

Coiled tubing utilization during the quarter was 47%. Coiled tubing revenue for the quarter was $27.9 million, a decrease of approximately 17%.

本季連續油管利用率為 47%。該季度連續油管收入為 2,790 萬美元，下降約 17%。

During the third quarter, the company reported general and administrative expense of $13.1 million. Depreciation and amortization expense in the third quarter was $10.2 million. The company's tax provision was approximately $0.4 million year to date. The provision for 2023 as a result of our tax position in stay and non-US tax jurisdictions.

第三季度，該公司公佈的一般及管理費用為 1,310 萬美元。第三季的折舊和攤提費用為1020萬美元。年初至今，該公司的稅收撥備約 40 萬美元。 2023 年的準備金是由於我們在中止和非美國稅務管轄區的稅務狀況而做出的。

The company reported net cash used in operating activities of $9.9 million. The average DSO for Q3 was 55.7 days. CapEx spend for Q3 was $3.9 million, bringing the total CapEx spend through Q3 to $16.2 million. Our full-year CapEx guidance was $25 million to $35 million, and we anticipate coming in at the lower end or below the range. I will now turn it back to Ann.

該公司報告經營活動使用的現金淨額為 990 萬美元。第三季的平均 DSO 為 55.7 天。第三季的資本支出為 390 萬美元，使第三季的資本支出總額達到 1,620 萬美元。我們的全年資本支出指導為 2500 萬至 3500 萬美元，我們預計將處於較低水平或低於該範圍。我現在將其轉回給安。

Thank you, Guy. The third quarter, specifically the month of August was very challenging, but we do believe we have reached a bottoming of the rig count. Thus far in Q4, we have already begun to feel a shift in sentiment, specifically in our cementing division, which is a leading indicator in market activity and trends.

謝謝你，蓋伊。第三季度，特別是八月非常具有挑戰性，但我們確實相信鑽機數量已觸底。到目前為止，第四季度，我們已經開始感受到情緒的轉變，特別是在我們的固井部門，該部門是市場活動和趨勢的領先指標。

Bid for work have increased in October, and customers are talking about rigs coming back on the market in early 2024. The pace and magnitude of these additions are unknown, but it does provide us with confidence that activity will improve next year. It is too early to provide specific outlooks on potential 2024 activity levels, but we do believe activity will increase next year, mostly driven by private operators, assuming commodity prices remain supportive.

10 月的工作出價有所增加，客戶正在談論鑽機將於 2024 年初重返市場。這些增加的速度和幅度尚不清楚，但它確實讓我們有信心明年的活動將會改善。現在對 2024 年潛在活動水平進行具體展望還為時過早，但我們確實相信，假設大宗商品價格保持支撐，明年活動將會增加，主要由私營運營商推動。

We are a spot business, and our financial results move very closely with US land activity levels, and we have demonstrated our ability to capitalize on an improving market. For Q4, we anticipate overall pricing and activity levels to remain mostly flat. We do not anticipate a recurrence of August in Q4, but do anticipate holidays, weather, and budget exhaustion to impact operations, especially in the Northeast.

我們是一家現貨企業，我們的財務表現與美國土地活動水平密切相關，並且我們已經證明了我們利用不斷改善的市場的能力。對於第四季度，我們預計整體定價和活動水準將基本保持穩定。我們預計第四季不會再次出現八月的情況，但預計假期、天氣和預算耗盡會影響運營，尤其是東北地區。

Because of this, we expect Q4 to be flat or up slightly compared with Q3 was projected revenue between $137 million and $147 million. We also anticipate that adjusted EBITDA and our adjusted EBITDA margin will increase slightly as well. We have shown our ability to capitalize quickly on market shift and our business is nimble. I believe our service and geographic diversity provides us good balance, and we remain focused on diversifying more of our topline revenue streams to completion tools and the international markets.

因此，我們預計第四季的營收將與第三季持平或略有上升，預計營收在 1.37 億美元至 1.47 億美元之間。我們也預計調整後的 EBITDA 和調整後的 EBITDA 利潤率也將略有增加。我們已經展示了快速利用市場變化的能力，而且我們的業務非常靈活。我相信我們的服務和地理多樣性為我們提供了良好的平衡，我們仍然專注於將我們的主要收入來源多元化到完成工具和國際市場。

Our strategy of providing an asset-light business with forward-leaning technology coupled with excellent service is unchanged and unique within oilfield services. We will now open up the call for Q&A.

我們提供輕資產業務、前瞻性技術和優質服務的策略在油田服務領域保持不變且獨一無二。我們現在將開放問答環節。

(Operator Instructions) Tim Moore, EF Hutton.

（操作員說明）Tim Moore，EF Hutton。

Thanks. For chronic revenues, was there any type of maybe one-off that maybe happened during the quarter? I know you gave guidance for the fourth quarter. I was kind of curious, was there anything different going on or anything that might shift into the fourth quarter?

謝謝。對於長期收入，本季是否可能發生任何類型的一次性事件？我知道您給了第四季度的指導。我有點好奇，有什麼不同的事情發生或有什麼可能轉移到第四季嗎？

Yeah, we tried to highlight we had an unusually large international order, Tim, in Q2. So I think that completed the move down from Q2 to Q3. Q3 was a much more normalized level. So we did highlight -- we tried to highlight that on our last call. So this will reflect a more normalized level.

是的，我們試圖強調我們在第二季度有一個異常大的國際訂單，Tim。所以我認為這完成了從第二季到第三季的轉變。第三季是一個更標準化的水平。所以我們確實強調了——我們試圖在上次通話中強調這一點。所以這會體現一個更規範化的層次。

Yeah, that makes sense. I remember that international -- so how are the Stinger dissolvable frac plugs doing? I mean, they're still pretty steady. And any pickup in the extended range ones?

是的，這是有道理的。我記得那次國際比賽 - 那麼 Stinger 可溶解壓裂塞表現如何？我的意思是，他們仍然相當穩定。還有增程型拾音器嗎？

Yes. So we're actually very excited about this push for even longer laterals from our customers. We're seeing that they're really realizing the efficiencies of these. And that obviously gets exacerbated in long laterals. So we've been extremely pleased with the uptake of that.

是的。因此，我們實際上對客戶推動更長的支線感到非常興奮。我們看到他們真正意識到了這些的效率。顯然，這種情況在長支線中會加劇。因此，我們對這一點的採用感到非常滿意。

We are fielding the Pincer because, of course, there's a huge addressable market for more -- for composite-based plugs. So you see us not just sitting down there. We're constantly evolving and innovating on our technology, which is important because our customers are still driving efficiencies even to this day. So we want to be the best, both in the dissolvable space as well as in that hybrid composite space.

我們部署 Pincer 是因為，當然，還有一個巨大的潛在市場需要更多——基於複合材料的插頭。所以你看到的我們不只是坐在那裡。我們不斷發展和創新我們的技術，這很重要，因為我們的客戶直到今天仍在提高效率。因此，我們希望成為最好的，無論是在可溶解空間還是在混合複合材料空間。

So that is what begs the introduction of the Pincer. But we're tremendously pleased with the uptake of dissolvables, and we see that trend continuing with the 4-mile laterals.

這就是為什麼需要引入Pincher。但我們對可溶解物質的使用感到非常滿意，我們看到這種趨勢在 4 英里側向比賽中得以延續。

Great, Ann. I just have a -- my last question is a two-parter. I mean, it's actually two different questions. You had some comments maybe -- about maybe seeing a little bit of sentiment for the maybe more predictability of private operators in the market. And there was a lot of lumpiness for everyone in the sector. May through August, the rig count went up a little bit. In September, that came back down.

太棒了，安。我的最後一個問題是一個由兩個部分組成的問題。我的意思是，這實際上是兩個不同的問題。您可能有一些評論——關於可能看到市場上私人經營者可能更具可預測性的一些情緒。這個行業的每個人都遇到了很多困難。 5 月到 8 月，鑽孔機數量略有增加。九月份，這一情況又有所回落。

So you just can maybe talk a little bit the sentiment kind of what you're seeing? And then just for the gross margin within services segment, do you think that gross margin for the December quarter might be in the teens? Or do you think you get up to 20%?

那麼你可以談談你所看到的情緒嗎？那麼就服務部門的毛利率而言，您認為 12 月季度的毛利率可能會在十幾歲左右嗎？或者你認為你能達到20%嗎？

So I'll take the first piece of the question and then the second. I think the sentiment has certainly shifted. When we were inside of August, well, it was really nice to see the sequential bounce into September then continued into October. We're always looking to our cementing business as an indicator of forward activity and the amount of customer calls and the activity level really -- the needle was really move there coming into Q4.

所以我將回答第一個問題，然後是第二個問題。我認為這種情緒肯定已經改變了。當我們進入 8 月時，很高興看到連續反彈到 9 月，然後持續到 10 月。我們一直將固井業務視為遠期活動、客戶電話數量和活動水平的指標——進入第四季度，情況確實發生了變化。

So when we talk about sentiment, I would say it's actually more than just sentiments. It's real activity levels and customer activity. So I'm very confident that we've passed through that, you know, very ugly trough we saw this summer and excited that Q4 is a bit more stable here. And as you know, I think most people are expecting increased activity in 2024. Many people wondering how much is that, and how fast those rigs come into the market. But regardless, we see that as stronger than H2 '23.

所以當我們談論情緒時，我想說它實際上不僅僅是情緒。這是真實的活動水平和客戶活動。因此，我非常有信心，我們已經度過了今年夏天看到的非常醜陋的低谷，並且很高興第四季度在這裡更加穩定。如您所知，我認為大多數人預計 2024 年活動將會增加。許多人想知道這個數字是多少，以及這些鑽機進入市場的速度有多快。但無論如何，我們認為這比 H2 '23 更強。

And as far as the margin goes, I'll flip that over to my CFO, Guy Sirkes.

至於利潤率，我會將其轉交給我的財務長 Guy Sirkes。

Yeah, thanks, Ann. So, Tim, we're not providing specific guidance in terms of the breakout between the products and the services. But we are anticipating that overall adjusted EBITDA and adjusted EBITDA margin will increase. Obviously, August was very difficult, and we had a lot of whitespace and EBITDA margin, gross margin impact in that month, which we don't expect to recur. So hoping for a better Q4 than Q3 in that sense.

是的，謝謝，安。所以，提姆，我們不會就產品和服務之間的突破提供具體指導。但我們預期整體調整後 EBITDA 和調整後 EBITDA 利潤率將會增加。顯然，8 月非常困難，我們在那個月有很多空白和 EBITDA 利潤率、毛利率影響，我們預計這種情況不會再次發生。因此，從這個意義上來說，希望第四季比第三季更好。

That makes sense. That's really helpful, Guy, and thanks for that color. We definitely agree with that. Ugly trough, we've already passed that. So it's nice that it's bottomed and 4Q stability makes sense. And it seems like investors should look forward to a pretty darn good early next year and a reacceleration of activity. And then your stock just seems totally cheap today. But that's it for my questions. Thanks a lot.

這就說得通了。這真的很有幫助，蓋伊，謝謝你的顏色。我們絕對同意這一點。醜陋的低谷，我們已經過去了。所以很高興它已經觸底，並且第四季度的穩定是有道理的。投資者似乎應該期待明年初的良好表現以及經濟活動的重新加速。然後你的股票今天看起來非常便宜。但這就是我的問題。多謝。

Thank you so much.

太感謝了。

We have reached to the end of the question-and-answer session. I'd now like to turn the call back over to Ann Fox for closing comments.

我們的問答環節已經結束。我現在想將電話轉回給安福克斯徵求結束意見。

Thank you for your participation in the call today. I want to thank our employees, our E&P partners, and investors. Thank you.

感謝您參加今天的電話會議。我要感謝我們的員工、勘探與生產合作夥伴和投資者。謝謝。

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

今天的會議到此結束。此時您可以斷開線路，我們感謝您的參與。