CVR Partners LP (UAN) 2013 Q3 法說會逐字稿

Good morning and welcome to the CVR Partners' third quarter 2013 conference call.

(Operator Instructions)

As a reminder, this conference is being recorded. It now my pleasure to introduce your host, Wes Harris, Vice President, Investor Relations for CVR Partners. You may begin.

Good morning, everyone, and thanks for joining us today. With me today are Chief Executive Officer, Byron Kelley; Chief Operating Officer, Stan Riemann; and Chief Financial Officer, Susan Ball. Also joining us today is Executive Chairman, Jack Lipinski.

As is typical, before we discuss our 2013 third quarter results, we are required to make the following Safe Harbor statements. In accordance with federal securities laws, statements in this earnings call relating to matters that are not historical facts are considered forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions using currently available information and expectations as of this date. These forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, including those noted in our filings with the Securities and Exchange Commission.

In addition, today's presentation includes various non-GAAP financial measures. The disclosures related to such non-GAAP measures including, reconciliations to most directly comparable GAAP financial measures, are included in our 2013 third quarter press release. Adjusted EBITDA is an example of such non-GAAP measures. Adjusted EBITDA represents net income, adjusted for depreciation, amortization, net interest expense, income tax expense, and share based compensation. With that, I'll turn the call over to Byron.

Thank you, Wes, and good morning, everyone. We certainly appreciate your participation this morning. I've got a lot I want to cover today, but I'm going to begin with a few highlights on our financial and operating performance for the 2013 third quarter. During this quarter, we recorded net income of $19.7 million, on $69.2 million of net sales, this is compared to net income of $31.6 million on net sales of $75 million in the third quarter of 2012. Our adjusted EBITDA for the quarter was $28.2 million versus $39 million in the same period last year. This mornings we announce a distribution of $0.36 per common unit outstanding for the third quarter of 2013. This distribution will be paid on November 18 to unit holders of record as of November 11.

The third quarter marked the second full quarter of operations for our expanded urea ammonia nitrate plant that you may recall we placed in service in February. The expansion drove a more than 30% increase in our UAN production as compared to last year's third quarter. This increase actually would have been higher, but as we discussed with you on our last earnings call, an unexpected and sudden electrical outage on May 31 of this year forced an immediate shut down of the plant. This resulted in some damage to our catalyst in the shift reactor that had reduced our ammonia production by approximately 50 tons per day. As we mentioned on that call, it was our plan to take the plant down for seven days in late July to replace the damaged catalyst. This work was completed. It was completed on time. Our full ammonia production was restored to the plant, and the plant has run extremely well since placing it back in service.

However, due to the down time, it did impact our on-stream factors for the third quarter because of the seven-day outage. During the third quarter, the gasifier ran at 91% compared to 99% in 2012. The ammonia synthesis loop operated at a rate of 90%, versus 98% last year. The UAN plant operated at 90% compare to 97% in the third quarter of last year. However, if you exclude the seven days, you can see a down time we had for replacing the catalyst, you can see just how well the plant has been running since the change-out. The on-stream rates without those 7 days would have been 99% for the gasifier, 98% first for the ammonia synthesis loop, and 98% for the UAN plant, all very good numbers.

In the third quarter, we produced 100,400 tons of ammonia, and we purchased an additional 1,000 tons from third parties. During the period, 3,400 net tons of ammonia were available to sell with the rest upgraded to a record 239,300 tons of UAN. This is compared to the 2012 third quarter when we produced 104,200 tons of ammonia, with 29,400 net tons available for sale. The remainder was upgraded to 181,900 tons of UAN. Those numbers easily show you that 30% increase in UAN production.

Turning our attention to pricing in this quarter, the average netback price we received for UAN and ammonia in this past quarter was $259 per ton and $505 per ton, respectively. That's again, $259 per ton UAN and $505 for ammonia. This is compared to an average netback in 2012 of $290 per ton for UAN, and $578 per ton for ammonia.

I will discuss our forward view on pricing and some other consideration related to our outlook after Susan reviews our financial results in more details. With that, I'll hand the call over to Susan, our Chief Financial Officer. Thank you, Susan.

Thank you, Byron, and good morning, everyone. As Byron discussed, net sales for the 2013 third quarter was $69.2 million, as compared to $75 million in 2012. Contributing to the decrease was lower sales prices for UAN and ammonia, and lower ammonia sales volumes which was primarily due to the increased conversion of ammonia afforded by the expanded UAN plants. Partially offsetting the overall decrease in net sale was higher UAN sales volumes and related freight revenue due to the plant expansion, as well as the net impact of increased hydrogen sales to the adjacent refinery. Cost to products sold for the 2013 third quarter was $13 million, as compared to $11.3 million in the third quarter of 2012. The increase was primarily associated with the ammonia purchases previously mentioned, as well as higher freight expense and distribution costs in this year's third quarter.

Partially offsetting the overall increase in cost of products sold was reduced consumption of pet coke in the 2013 third quarter, due to the previously discussed plant down time. During both 2013 and 2012, our average cost for consumed pet coke during the third quarter was $30 per ton. Direct operating expenses were $23.7 million for the third quarter of 2013, as compared to $21.1 million in the prior-year period. The increase was primarily attributable to higher utilities, due to the expanded UAN plant, increased repairs and maintenance expense, and catalyst amortization related to the replacement of the damaged catalyst in the shift reactor, and to a lesser extent, higher costs for chemicals and outside services. Partially offsetting the overall increase in direct operating expenses were lower property taxes, resulting from the settlement with Montgomery County which we entered into in late February of this year.

Selling, general, and administrative expenses were $4.6 million for the 2013 third quarter, as compared to $5.1 million in the third quarter of 2012. The decrease was primarily due to lower based share compensation expense, partially offset by higher management services expense. Depreciation and amortization expense increased to $6.6 million in the third quarter of 2013, from $5.2 million in the 2012 third quarter. This was substantially due to the UAN expansion assets being placed in service in the year's first quarter. The increase in interest expense from $900,000 in the 2012 third quarter to $1.6 million for this year was primarily associated with decreased capitalized interest due to the completion of the UAN plant expansion.

Net income to the 2013 third quarter was $19.7 million, or $0.27 per common unit, compared to $31.6 million or $0.43 per common unit in the third quarter of 2012. During the 2013 third quarter, we spent $4 million on capital projects, including $800,000 for maintenance, cap spend. Capital expenditures for the nine months ended September 30 were $35.8 million, with $2 million associated with the maintenance CapEx. The substantial majority of the remaining $33.8 million of capital spending was associated with the UAN plant expansion. For 2013 full year, we expect to spend $40 million to $48 million on capital projects. Excluding capitalized interest, this amount includes $5 million for maintenance CapEx, and $35 million to $43 million for growth projects, including approximately $25 million associated the UAN expansion project earlier in the year. As we've discussed in the past, our planned profit and growth spending will be fully funded by cash on hand that originated from our IPO in April of 2011.

Turning to the balance sheet, we enjoy an enviable financial position that should continue to allow us to grow our business. As of September 30, we had $87 million in cash and cash equivalent, $25 million available under our revolving credit facility. Additionally, our long term debt remained low at $125 million. With that, I'll turn the call back over to Byron.

Thank you, Susan. We now have nine months of actual results behind us. We have orders in place for our expected product deliveries throughout the remainder of the year. With those fundamentals in place, we're raising the lower end of the range of our 2013 full year outlook for cash available for distribution by $0.05. As such, our full year outlook is now $1.85 to $2 per unit. While we will not provide any formal guidance for 2014 until we report our 2013 fourth quarter and full year results, I would like to spend a few minutes discussing some of the things we're seeing in the market as we head, begin thinking, and turning our attention to 2014.

Following an active period in July of this year, where we secured orders for product deliveries during this year's field season, basically the US nitrogen fertilizer market has been relatively quiet. It appears most producers, dealers, and distributors want to get a better feel for this year's expected corn harvest before entering into transaction for additional 2014 first quarter deliveries. We see this all the way across our industry.

Getting a good handle, however, on crop harvest and yields this year has been a little bit challenging due to several factors. First is simply related to a late harvest that we're seeing. This year's crop progress report from the USDA showed that 59% of the corn crop had been harvested so far, and this is significantly less than the 91% that we saw harvested at this point last year. Initially, due to the government's shut-down, the USDA did not revised crop estimate in October. Actually, the next estimate we should see roughly a week from today, sometime next Friday.

So far, we have been seeing some local reports coming in from locations in the Corn Belt that have indicated some very strong yields. While it's premature to extrapolate a nationwide average from this limited information, I would have to say that it appears right now that this year's final year figure may be in line with the current USDA forecast, which is in the range of 155 bushels per acre. Next week's [WASDE] report, we do expect the USDA to update the number of corn acres planted this spring. Their current estimate is 97.4 million acres of planted corn. This was primarily based on field surveys that were compiled in the first half of June before the planning window had actually closed for this year's crop. Given the extremely wet conditions that we saw in mid-June, we expect that as much as 3 million acres of the USDA's estimate may actually have moved to prevent plant or move to soybeans.

If you look at the USDA's dimension -- we'll have to go back to October, but if you look at their published estimate from then, they were estimating a 14.6% year-ending stocks to use ratio, based as I mentioned earlier, 155 bushels of harvested acre. As we look at it, if the actual planting ends up roughly 3 million acres lower than their 97 million acres that were in their last estimate, the year-ending corn inventory level could be around 11%. That, of course, assumes all else is constant, in terms of exports and market demand. If you look at the 11% number, it's actually below the 20-year average of 13%. If this is the figure we see at the end of this year, it could certainly be a very positive sign for the industry going into next year's planting cycle.

Another thing that we're keeping a eye on is China's production of urea and exports into the world market. Similar to our plant, the Chinese producers utilize mostly a gasification process to produce the base ammonia for its urea production. However, instead of using pet coke as we do, their feed stock is coal from China coal production. For the past 2 years, typically the urea plants in China have run about 75% of capacity. Last year, due to a slow-down in certain parts of the Chinese economy, as well as some higher domestic coal production, the China source coal price came down, and the urea plants did run at a higher utilization rate. This ended up and resulted in higher urea production and larger than normal Chinese urea exports into the world market. In addition, it appears there may have been a few million metric tons of urea actually exported outside of the Chinese government's four months lower export tariff window.

With that as a back drop, what do we see in regard to China as we look forward into 2014? First, industry sources are indicating that the low coke prices that led to some of the increased urea production in China have hit a floor and may have actually begun to increase. Supporting even future higher coal prices increases is the Chinese government's indication that it plans to shut down 11% of China total coal mine capacity by the end of 2015. Third, it also appears that the Chinese custom agents may be more stringent than they were last year in accepting vessels for loading outside the lower tariff export window that actually ended yesterday. As we look going forward, we could see less China-produced urea in the world market next year.

Turning our attention a little more specifically to our own operations, we see a number of very positive events for 2014. The first has to do with the small expansion project and reworking of our turn-around schedule. On our last earnings call, we disclosed that we were doing a $6 million capital investment and expansion to our pressure swing adsorption unit. The project will allow us to recover sufficient hydrogen to produce as much as 25 tons a day of additional ammonia beginning in the third quarter of 2014. This event will require a seven-day plant shut down to complete the project and to tie in the expansion. The benefits of the extra production, even allowing for the seven-day shut down, we will see from the expanded PSA unit, equates to approximately four additional days of full plant ammonia production in 2014. Basically, you take six months production and average it over the year, and you're essentially looking at the equivalent of four days of current production incremental that we should see next year.

Another benefit though I mentioned, we would take the plant down seven days to make this tie in, during that period, we now intend to complete a mini turn-around of the rest of the facility. By so doing, we will eliminate the need for the two- to three-week biannual turn-around that previously was scheduled for the fourth quarter of 2014. You take all these factors and put them together and you compare them to 2013 projected production levels, we think the combination of all of the events I just mentioned should result in almost two additional weeks of incremental production in 2014 as compared to 2013, so a very positive year ahead for us in production levels. A second positive that we expect to certainly see in 2014 is the fact that we'll have a full year of our UAN production from our expanded plant that was put in service in February. This will allow us to capture two additional months of nitrogen content price premium afforded to UAN as compared to ammonia.

Then there are two smaller projects that are nearing completion that will also contribute nest year. The construction of our distribution facility in Dartmouth, Kansas, is proceeding smoothly and we expect to being using this facility by the end of the year. This terminal, combined with the Phillipsburg terminal we installed last year, as well as additional leased storage in our market area should allow us to further optimize the product prices we received by potentially deferring the sale of a portion of our inventory in the spring planting season when prices are typically higher.

One final project that is underway and nearing completion is the expansion of our ability to sell diesel exhaust fluid, or DEF. We're expanding our storage and load-out facilities at the plant. The first phase will go into service by year end and will allow us to produce and sell about 6 million gallons per DEF in 2014, up from the current level of about 3 million gallons. Then a second phase will be completed around mid-2014, and it will double our capacity so that we'll have the ability to sell, load out, and move 12 million gallons per year of DEF. As you recall, we've talked about this in the past, we talked about UAN sells at a premium to ammonia, DEF sells at a premium to UAN. Every ton or gallon of this that we can produce and sell is just another premium over what we even get for selling our urea ammonia nitrate.

Finally, on our last call, we also discussed briefly another project that could materially increase our ammonia production. Over the past three months, we made substantial process in review of this opportunity. While signs are favorable, we've not yet firmed up the final cost estimate for the project. We are now targeting a decision by the end of the year on whether to proceed with the full front end engineering and design analysis. If we do move forward with the project, we expect that the increase of ammonia production would come on line in 2017.

One additional comment I would make about this project is one of the reasons that our analysis time has been extended is that we have expanded the number of options that we're looking at around the size of this plant and trying to optimize the right size. I can tell you this, that the options we're looking at can vary from 100 tons a day to 500 tons a day. This could be anywhere from a nice to very substantial project. We'll continue working on our valuation throughout the end of the year, and hopefully be at a point to make a decision about moving forward at that point.

Let me do a quick summary. I've covered a lot of information. We posted a good third quarter, highlighted by record UAN protection. We raised the lower the end of the range of our 2013 full year distributional outlook by $0.05, that range is now $1.85 to $2 per unit. This could represent as much as a 10% increase over 2012. In regards to 2014, we believe that we should see the stock to use ratio end up around 11%. This could point to well in excess of 90 million acres of corn to be planted next year.

We anticipate, in terms of our operations, almost two weeks of additional production next year. We also expect the benefit of a full year of our expanded UAN plant. We'll see the benefit of the PSA expansion as well in the last half of the year and the two smaller projects around our storage and DEF. As I mentioned just a minute ago, we continue to work in getting close to finalizing our thoughts about expanding the ammonia plant. If we do that project, it will be in service in 2017 most likely.

In a minute, we're going move to Q&A, but before we do that, I'm going to turn the floor over to Jack.

Thank you, Byron. Good morning, everyone, and thanks for joining us. I'm sure as you're aware, in this morning's press release, we announced that Byron has decided to retire, effective January 1, 2014. When Byron let me know about his plans, I truly had mixed emotions. I was disappointed he'd be leaving us, but I was happy that he gets to spend more time with his wife, Melva, his family, and specially his one-year-old grandson, Nolan. It's been an interesting couple of years. We were very fortunate to have Byron come out of retirement shortly after CVR Partners went public in April 2011, and he took over as his current role of President and CEO. Byron's experience in growing companies and his executive leadership was what attracted me to him, and I couldn't be more pleased with the job that he's done over the last couple of years.

During this period he successfully led the Company through a number of key initiatives. He led the expansion of our UAN plant. He broadened our distribution footprint. He increased our presence in the DEF market, as well as many other initiatives that you guys have heard about, and I know. There's no doubt Byron is leaving CVR Partners in a much better position than when he started, and for that, I and the Board are truly grateful.

As we discussed in our release, I will be reassuming the role of President and CEO of CVR Partners. I'll also continue to remain Executive Chairman. Over the coming months, we'll evaluate whether I continue as President and CEO for the long term. Whatever path the Board decides on will be based on what's best for our partnership and unit holders. I just hope you join me in wishing Byron a heartfelt thanks for everything he's done and wishing him a happy retirement. I will be staying in touch with him. He's done a great job for us. It's hard to see a good friend leave. With that, I'll turn it back to Byron and Q&A.

Thank you, Jack. Certainly, thank you for those very nice comments you made. I want everybody to understand that I really enjoyed my tenure here. I've enjoyed working with Jack, and actually all the staff at CVR Energy. They've been very supportive of what we wanted to do. Our Board has been very supportive. I'm very appreciative of what they've done and how they've supported in the business.

Jack listed some accomplishments, and I wish I could take credit for those, but I can't. Truthfully, I have to give a special to the staff at CVR Partners and all of our employees at CVR Partners. I've been very fortunate to have such a knowledgeable group, such a dedicated group. They made my job very easy during my tenure. So, any success that we've seen here, the credit should go to the folks that operate our assets, and manage our assets, and handle our marketing group, not to me. But it's been fun, and Jack, thank you again for the kind comments. Also, a word of thanks to all of you that have been following us over the years. I'm still going to be here two months until the end of the year. My work's still ahead of me, and I'm sure well be in contact during that period. With that, I'm going to open the floor to questions.

(Operator Instructions)

Vincent Andrews, Morgan Stanley.

Good morning, everyone. Congratulations, Byron, it's been a pleasure to work with you. Good luck in your retirement.

What I would like to get more insight into would be it looks like imports of UAN and into the Gulf have actually been lower than maybe what was going to be expected in the last couple of months. One of your competitors, it looks like they have an outage. What are you seeing in the market today? You made a lot of comments on China, which we would echo. But what are you seeing in the market today and in terms of the price direction that you think coming out of the fall application season, maybe going into the spring next year?

I really think that when you look at actual market signals, there have been almost none. As you typically see, as you move out of the fill season then into the fall negotiation for additional spring deliveries, you get into bid-ask that lingers on for a number of weeks. I think now it's been lingering on for closer to a month. We're not seeing a lot. We've done some localized deliveries, and they're pleased with the prices we've got on some truck deliveries we've made. We're just not getting any firm signals, in regard to pricing for this next round.

I think we have seen less imports. There's some indication there may have been exports as well. I'm still hopeful that things are going to come in, and we're going to see some decent pricing, but actually there's just not much out there yet.

Thanks very much. I'll pass it along.

Adam Samuelson, Goldman Sachs.

Byron, congratulations on the retirement.

On the capacity expansions, first for next year, to make sure we have the timing of the turnaround correct, so you're doing a one-week mini turn-around in the second quarter? There's no planned turnaround in the fourth quarter, and then there's no turn-around again in 2015. Is that correct?

The mini is at the same time we tie in the plant. That may be around mid-July, probably, in that time frame. It could move weeks either way. That should be seven days where we do the tie in on the PSA project, and then we do the mini turnaround. With that, we think that we will not have a need to do what would be the traditionally our fourth quarter turnaround where we're down two to three weeks.

Got it. Then, you'd go back on to your normal schedule for the fourth quarter turnaround in 2016?

That could be, yes. We're looking at some options as to where we go with the turnaround, as we continue to learn. We have our expansion on it. We turn to learn the business. But you would be looking at 2016 certainly before you have another turnaround.

Okay. That's helpful. On the fall sale activity, I appreciate that it's been a late harvest and it's pushed out some dealer activity. Can you comment on how much of the fall sales at this point have been booked? Or how much you have left to price?

Basically, in terms of this year's production, we're sold out. What we're talking about are making some sales for production that we will be doing in the first quarter of the next year and delivering in the first quarter. That business just hasn't been booked at this point.

What we expect to see maybe is some pickup on that after we get the WASDE report next week and people start getting a little confidence about what this year's total harvest is going to look like. The farmers are so focused on just getting their crop in. They're not very focused on next spring yet.

From our standpoint, the good news is we really don't have any production from this year left to sell. We put all that to bed in July.

Okay. That's helpful. Finally for me, your third-party pet coke contract comes up for renewal, or it lapses at the end of the year. Maybe can you talk how you're thinking about that as you move into 2014?

What we think, when we look in the next year, our pet coke price is probably going to be $29 to $30 on average for all of our purchases next year. We saw prices move down this year. That's where I think we will come out on average next year.

Okay, very helpful. I'll pass it along. Thank you very much.

Matthew Korn, Barclays.

Byron, let me pass on my congratulations. I'm still hoping for a tour down [in Wire] road someday.

Come on out, Matt, we'll do that. I'll have time to do it for sure.

Sounds good to me. You just said, right now the farmers are really focused on the harvest at the late season. When you talk to them, or distributors, what are they saying about next year at all? In terms of expectations of planting, are people saying any indications of more corn, less corn? Are they worried about the income levels next year versus this year, what they will be able to pay? Is there any concern about the leak of this EPA, and potential provisions to the RSF? Does any of this come into play when you're talking with them?

The dealers are probably more focused on where the stock to use ratio is going to come out at the end of this year. I think right now, we don't hear much of them at all about where ethanal is going to come out. The opinion is we're probably going to see ethanol about what we saw this year. The amount of corn associated with that then should be level with this year, but we're not hearing a lot from them on that or concern. They just want to see the ending stock to use ratio. The farmers are interested in that because that's going to determine a lot on what they think prices will come out as next year and on the planning.

Generally, if we come out this year at around 11% level, I think you're going to see a decent corn crop next year. You're probably going to see a little rebound in corn prices as we get into pricing for next year because you won't plant 97 million acres next year for sure, or even 94 million. You could well see 90 million to 92 million acres. With that, the farmers are going to expect that at that level, they're going to see improvement in prices as well.

That's generally where we're seeing it coming out is some improvement in corn prices. A good year -- if you planting 90 million to 92 million acres, those are good years historically on the planning of crop acreage. We think you're still going to see a good year. But no, you're not going to see 97 million and probably not going to see quite the 93 million or 94 million we saw last year, or 95 million, I guess. But it should be a good year.

Following up on that, if we're down a little bit in corn acres, and we have more of a normal weather year, where there's maybe less moisture stress one way or the other, it seems that this year's spring UAN demand was pushed from the fact that it was a more attractive product, relative to ammonia. There wasn't as much an availability for ammonia for laying down that ammonia in the spring. Is it fair to think UAN demand overall might be lighter, if that type much prediction plays out?

I think you could see some fall outs from imports next year. I don't think the domestic producers are going to have trouble moving their product. But you could see some of the higher priced Ukrainian stuff. We saw some of that off the market this year, and you could see that continue. You could see maybe the imports come down a little bit next year, but I don't think when we look at our market area that we've any concern about placing our product.

Thanks much.

(Operator Instructions)

Christopher Perrella, Bank of America Merrill Lynch.

Congratulations, Byron.

Thanks, Christopher.

Question for you, with the mini turnaround next year in the third quarter, is that going to have a similar impact to operations to the turnaround you did this year in the third quarter?

I'm guessing you're talking about the catalyst replacement. They were both down seven days. You lose seven days the production. Yes, but what we gain out of that is the extra 25 tons a day for six months that we get out of the expanded project. We also don't have to go through another two to three weeks of turnaround that we would have normally have done next year. Net-net, we will gain days of production next year.

Can you upgrade that extra 25 tons a day of ammonia to UAN? Or is that going to be sold on an ammonia basis?

Yes, I think we can. Certainly part of the year, we know we can. When you have the right temperatures, and when our gauze is fairly new in our plant, we certainly will have the capacity to do that. I would say most of the time, yes. There might be a few occasions where we sell a little bit as ammonia, but we should be able to absorb that and convert most of that.

And last question on a per ton of UAN basis, how much of a price lift do you get for converting that up to DEF?

That number is obviously going to vary. The pricing mechanism on this thing, is really tied to basically urea. We typically see $80 to $100 uplift per ton on that, for a ton nitrogen now, not for ton of UAN.

Thank you very much. Best of luck in retirement.

Thanks, I appreciate it.

Charles Neivert, Cowen and Company.

Good morning, quick question. When you had to replace the catalyst that created the down time, do you think you good a pickup in the activity level over all in throughput? Do you think there's going to be a normal, slight deterioration in activity through 2014? Because in effect, you've got new catalysts earlier than you normally would have put it in. Do you think that's going to have a slight negative next for year?

Obviously, we regained what we lost from the damaged catalyst and put us back on target. The catalyst itself generally doesn't vary that much over time.

The one thing in the plant we have to change out is gauze about every 60 days or so. When you get a new gauze in, you exceed production design. When it gets towards the end of its 60-day life, you'll get a little below it, Overall, you're going to average your design capacity.

No, we just pick back up what we lost, but the catalyst normally does not deteriorate, not that you would see in a year. You might over a five-year period see some deterioration. That's why you change this out in subsequent turnarounds every three to five years, something like that.

Great, thanks very much.

All right. Thank you.

We have reached the end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

Gentlemen, I'm going to close it out. Let me give you my thanks for joining us today. Many of you, I met personally and had plenty of chances to talk to at other events. It's been my pleasure to know you and I appreciate you following our Company and your interest in our Company. And always, if you have any kind of follow-up questions, you can contct either Wes or myself. We'd be glad to attempt other discussions if there's something we need to clarify. Thank you again and have a good day.

Thank you. That does conclude today's teleconference call. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.