W&T Offshore Inc (WTI) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the W&T Offshore First Quarter 2023 Conference Call. (Operator Instructions) Conference is being recorded, and a replay will be made available on the company's website following the call.

女士們，先生們，感謝你們的支持，歡迎來到 W&T Offshore 2023 年第一季度電話會議。 （操作員說明）會議正在錄製中，通話後將在公司網站上提供重播。

I would now like to turn the conference call over to Al Petrie, Investor Relations Coordinator.

我現在想將電話會議轉交給投資者關係協調員 Al Petrie。

Thank you, Jamie. And on behalf of the management team, I'd like to welcome all of you to today's conference call to review W&T Offshore's First Quarter 2023 financial and operational results. Before we begin, I'd like to remind you that our comments may include forward-looking statements. It should be noted that a variety of factors could cause W&T's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements. Today's call may also contain certain non-GAAP financial measures. Please refer to the earnings release that we issued yesterday for disclosures on forward-looking statements and reconciliations of non-GAAP measures.

謝謝你，傑米。我代表管理團隊歡迎大家參加今天的電話會議，回顧 W&T Offshore 2023 年第一季度的財務和運營業績。在我們開始之前，我想提醒您，我們的評論可能包含前瞻性陳述。需要注意的是，多種因素可能導致 W&T 的實際結果與這些前瞻性陳述中表達的預期結果或預期存在重大差異。今天的電話會議還可能包含某些非 GAAP 財務指標。請參閱我們昨天發布的收益報告，了解前瞻性報表的披露和非 GAAP 措施的對賬。

With that, I'd like to turn the call over to Tracy Krohn, our Chairman and CEO.

有了這個，我想把電話轉給我們的董事長兼首席執行官 Tracy Krohn。

Thanks, Al. Good day to everyone, and thank you for joining us this morning. With me today are Janet Yang, our Executive VP and Chief Financial Officer; William Williford, our Executive VP and Chief Operating Officer; and Trey Hartman, our Chief Accounting Officer, who will also serve as interim CFO as we search for a Gen successor. They're all available to answer questions later during the call. So we began 2023 by redeeming all of our outstanding 2023 second lien notes and issuing new 2026 second lien notes. Significantly reducing our debt and interest payments moving forward while strengthening our balance sheet and moving forward our debt maturities. We also delivered another quarter of free cash flow generation and strong adjusted EBITDA generation. Our strategy has always been simple: generate free cash flow, maintain high-quality conventional production and opportunistically capitalize on accretive opportunities to build shareholder value.

謝謝，艾爾。大家好，感謝您今天早上加入我們。今天和我在一起的是我們的執行副總裁兼首席財務官 Janet Yang；我們的執行副總裁兼首席運營官 William Williford；以及我們的首席會計官 Trey Hartman，他還將在我們尋找 Gen 繼任者時擔任臨時 CFO。他們都可以在稍後的通話中回答問題。因此，我們從 2023 年開始贖回所有未償還的 2023 年第二留置權票據並發行新的 2026 年第二留置權票據。大幅減少我們未來的債務和利息支付，同時加強我們的資產負債表並提前到期的債務。我們還交付了另外四分之一的自由現金流生成和強勁的調整後 EBITDA 生成。我們的戰略一直很簡單：產生自由現金流，保持高質量的傳統生產，併機會主義地利用增值機會來建立股東價值。

Over the years, we have seamlessly integrated producing property acquisitions while maintaining strong operational excellence, and we plan to continue to do so at infinitum. I'd like to point out some key highlights and accomplishments for the first quarter. We reported net income of $26 million or $0.17 per diluted share and generated solid adjusted EBITDA of $43.1 million. We have generated positive free cash flow for 21 consecutive quarters. And in Q1 2023, we produced $12.4 million of free cash flow despite a downturn in both oil and natural gas pricing.

多年來，我們無縫整合生產性資產收購，同時保持強大的卓越運營，我們計劃在 infinitum 繼續這樣做。我想指出第一季度的一些主要亮點和成就。我們報告的淨收入為 2600 萬美元或每股攤薄收益 0.17 美元，調整後的 EBITDA 為 4310 萬美元。我們已連續 21 個季度產生正的自由現金流。在 2023 年第一季度，儘管石油和天然氣價格雙雙下滑，我們仍產生了 1240 萬美元的自由現金流。

We reported production of 32,500 barrels of oil equivalent per day. Production was temporarily diminished by planned facility and pipeline maintenance projects at Mobile Bay and by unplanned downtime at other non-operated fields. As I mentioned earlier, in January, we pull -- we fully paid off the remaining $552.5 million principal outstanding of our 2023 second lien notes and issued $275 million in 2026 second lien notes. This benefits us moving forward as it reduces annual interest payments by about $22 million and eliminates any near-term maturities in our capital structure.

我們報告每天生產 32,500 桶石油當量。由於 Mobile Bay 的計劃設施和管道維護項目以及其他非運營油田的計劃外停機，產量暫時減少。正如我之前提到的，在 1 月份，我們完全還清了 2023 年第二留置權票據剩餘的 5.525 億美元未償還本金，並在 2026 年第二留置權票據中發行了 2.75 億美元。這有利於我們向前發展，因為它減少了大約 2200 萬美元的年度利息支付，並消除了我們資本結構中的任何短期到期。

So we use some of our cash along with the proceeds from new notes to redeem the prior notes and still ended the first quarter with cash and cash equivalents of $177.4 million. So this decreased our overall net debt to $225.9 million at March 31, 2023, and our net debt to trailing 12 months adjusted EBITDA continued to improve significantly to 0.4x compared to 2.5x a year ago, which is well below our stated goal of less than 1x. So we clearly adhered to our strategy and delivered sustainable and consistent results. I believe that our continued success is driven by the ability of both our operations and finance teams to execute at a high level and our outstanding assets in the Gulf -- asset base in the Gulf of Mexico helps a great deal with that.

因此，我們使用部分現金以及新票據的收益來贖回之前的票據，並且在第一季度結束時現金和現金等價物仍為 1.774 億美元。因此，這使我們在 2023 年 3 月 31 日的整體淨債務減少至 2.259 億美元，並且我們的淨債務與過去 12 個月的調整後 EBITDA 相比，繼續顯著提高至 0.4 倍，而一年前為 2.5 倍，這遠低於我們規定的低於1x。因此，我們明確地堅持了我們的戰略，並取得了可持續和一致的成果。我相信我們的持續成功是由我們的運營和財務團隊高水平執行的能力以及我們在海灣的優秀資產——墨西哥灣的資產基地對此有很大幫助的。

So again, the first quarter of 2023 marked the 21st consecutive quarter that we've generated free cash flow through record low prices and changing geopolitical and economic conditions, we have continued to deliver free cash flow. So coupled with our ability to pay down debt and improve our balance sheet, we're clearly in a much stronger financial position today, and we remain focused on operational execution in 2023 to continue building on our outstanding results. For the last call, we discussed that in the first quarter of 2023, we would have planned periodic facility and pipeline maintenance projects underway at the Mobile Bay field that required us to temporarily shut in the field.

因此，2023 年第一季度再次標誌著我們連續第 21 個季度通過創紀錄的低價格和不斷變化的地緣政治和經濟條件產生自由現金流，我們繼續提供自由現金流。因此，加上我們償還債務和改善資產負債表的能力，我們今天的財務狀況顯然要好得多，我們仍然專注於 2023 年的運營執行，以繼續取得出色的業績。在上一次電話會議中，我們討論了在 2023 年第一季度，我們將計劃在 Mobile Bay 油田進行定期設施和管道維護項目，這需要我們暫時關閉該油田。

These activities shut in production at the Mobile Bay field for 35 days compared to 25 days that we estimated in the guidance range provided for the first quarter of 2023. We also experienced unplanned downtime at some non-operated fields that also temporarily reduced our production volumes in the first quarter. These 2 events contribute to the lower Q1 2023 production levels, but most of the nonoperating fields that were shut in are now back online and the maintenance project at Mobile Bay was completed.

這些活動使 Mobile Bay 油田停產 35 天，而我們在 2023 年第一季度提供的指導範圍內估計為 25 天。我們還在一些非運營油田經歷了計劃外停機，這也暫時減少了我們的產量在第一季度。這兩個事件導致 2023 年第一季度的生產水平較低，但大多數關閉的非運營油田現在已恢復在線，Mobile Bay 的維護項目也已完成。

Despite the lower overall reduction, our Q1 2023 oil production of 1,350 million barrels for the quarter was above our guidance range. Total company production has mostly recovered and we're currently having approximately 38,100 barrels of oil equivalent per day. You see the recovery in our production numbers at Q2 2023 production guidance, an expected midpoint at about 37,000 barrels of oil equivalent per day. We haven't changed our full year '23 guidance.

儘管總體減產幅度較低，但我們 2023 年第一季度的石油產量為 13.5 億桶，高於我們的指導範圍。公司總產量已基本恢復，目前每天約有 38,100 桶石油當量。您會看到我們在 2023 年第二季度生產指導中的生產數據有所恢復，預計中點約為每天 37,000 桶石油當量。我們沒有改變 23 年全年的指導方針。

We have focused on acquisitions over the last few years rather than on drilling many new wells. Our guidance reflects the low natural decline of our asset base compared with much higher declines in unconventional onshore reservoirs. On the cost side, we continue to see inflationary pressures in the industry, but our first quarter results were encouraging as we were below the midpoint of guidance and about 4.0% actually lower than quarter 4 2022.

在過去的幾年裡，我們一直專注於收購，而不是鑽探許多新油井。我們的指引反映了我們資產基礎的自然遞減率較低，而非常規陸上油藏的遞減率則高得多。在成本方面，我們繼續看到該行業的通脹壓力，但我們的第一季度業績令人鼓舞，因為我們低於指導的中點，實際上比 2022 年第四季度低約 4.0%。

We remain focused on cost control and margin expansion. And despite the inflationary environment we're in for the second quarter, our guidance for lease operating expense is expected to be between $63 million and $70 million. We continue to control our G&A costs in the first quarter cash G&A costs were within our guidance range at $18 million. For the second quarter, we're expecting cash G&A to be between $16.5 million and $18.5 million. So that's the trend is downward. So we will continue to manage controllable costs to help maximize our margins.

我們仍然專注於成本控制和利潤率擴張。儘管我們第二季度處於通貨膨脹環境中，但我們對租賃運營費用的指導預計將在 6300 萬美元至 7000 萬美元之間。我們繼續控制第一季度的 G&A 成本，現金 G&A 成本在我們的指導範圍內，為 1800 萬美元。對於第二季度，我們預計現金 G&A 將在 1650 萬美元至 1850 萬美元之間。所以這是向下的趨勢。因此，我們將繼續管理可控成本，以幫助最大限度地提高我們的利潤率。

During the first quarter of 2023, we reduced total debt by almost $300 million from year-end 2022. At the end of the first quarter, we had net debt of $225.9 million, which was total debt of $403.3 million, net of cash and cash equivalents of $177.4 million. At the same time, last year, net debt was $504.8 million, so a huge reduction from them. So the net -- So that's not our first rodeo. And although we have opted to pay down all $552 million in the previous second lien notes, instead, we paid down 50% of the previous second lien notes and maintain significant cash liquidity. Our current opinion is that we're glad we did.

2023 年第一季度，我們的總債務比 2022 年底減少了近 3 億美元。第一季度末，我們的淨債務為 2.259 億美元，總債務為 4.033 億美元，扣除現金和現金相當於 1.774 億美元。與此同時，去年，淨債務為 5.048 億美元，因此大幅減少。所以網 - 所以那不是我們的第一個牛仔競技表演。儘管我們選擇支付之前第二留置權票據的全部 5.52 億美元，但我們支付了之前第二留置權票據的 50% 並保持大量現金流動性。我們目前的意見是我們很高興我們做到了。

As I mentioned previously, the large reduction in total debt was driven by issuing 2026 second lien -- senior second lien notes at par totaling $275 million in a private offering and using the proceeds along with a portion of our considerable cash position to retire all of those 2023 senior second lien notes. So we continue to have the flexibility and dry powder to make additional acquisitions, drill our current prospects and continue to build cash, all while further paying down debt. Because we have no long-term rig commitments or near-term drilling obligations, we have flexibility to ramp up or deferred capital opportunities.

正如我之前提到的，總債務的大幅減少是由於發行了 2026 年第二留置權——高級第二留置權票據在私募中總計 2.75 億美元，並使用收益連同我們可觀的現金頭寸的一部分退休所有那些 2023 高級第二留置權票據。因此，我們繼續擁有靈活性和乾火藥來進行額外的收購，挖掘我們目前的前景並繼續積累現金，同時進一步償還債務。由於我們沒有長期鑽井承諾或近期鑽井義務，我們可以靈活地增加或推遲資本機會。

Last year, we focused on reducing net debt and invested $41.6 million in capital expenditures and $51.5 million in acquisitions. In Q1 2023, we spent $7.4 million in CapEx and continue to anticipate our CapEx range for 2023 to be between $90 million and $110 million. Included in this range are planned capital expenditures related to long lead items, front-end engineering design for our Holy Grail prospect at Magnolia as well as 3 shelf wells that we're considering drilling a little later on and capital costs for facilities, leasehold seismic and re-completions.

去年，我們專注於減少淨債務，並投資了 4160 萬美元用於資本支出和 5150 萬美元用於收購。在 2023 年第一季度，我們在資本支出上花費了 740 萬美元，並繼續預計我們 2023 年的資本支出範圍將在 9000 萬至 1.1 億美元之間。此範圍包括與長期項目相關的計劃資本支出、我們在 Magnolia 的 Holy Grail 勘探區的前端工程設計以及我們正在考慮稍後鑽探的 3 個貨架井以及設施的資本成本、租賃地震和重新完成。

As always, we'll monitor commodity prices through the year and adjust our spending plans accordingly. With our modest capital range in 2023, we expect to generate meaningful free cash flow and which provides us flexibility to quickly execute on accretive opportunities as they arise. So before I close the call, I'd like to provide some more information about ongoing ESG efforts, environmental stewardship, sound corporate governance and contributing positively to our employees and the communities where we work and operate our cornerstones of our culture. ESG metrics are incorporated into our 2021 short-term incentive plan, and we're continuing with that practice moving forward.

一如既往，我們將全年監控商品價格並相應地調整我們的支出計劃。憑藉我們在 2023 年適度的資本範圍，我們預計將產生有意義的自由現金流，這為我們提供了靈活性，可以在出現增值機會時快速執行。因此，在我結束電話會議之前，我想提供更多有關正在進行的 ESG 工作、環境管理、健全的公司治理以及為我們的員工和我們工作和運營我們文化基石的社區做出積極貢獻的信息。 ESG 指標已納入我們的 2021 年短期激勵計劃，我們將繼續推進這一做法。

As reflected in our 2023 definitive proxy statement, we recently filed, we've made a concerted effort in addressing shareholder concerns and improving our ESG metrics. Last week, we announced the addition of a new Board member, Dr. Nancy Chang, whose highly successful career and broad-based experience will bring a new voice and unique perspective to our Board. She is also the Chair of our Environmental Safety and Governance Committee that oversees our ESG efforts. We believe that Dr. Chang will help guide our continuous improvement and assist us in our commitment to the highest standards of ESG and corporate governance. Nancy is a world-class scientist and problem solver successful in business and brings a unique perspective to our business as she did to the Federal Reserve Board here in Houston.

正如我們最近提交的 2023 年最終委託書所反映的那樣，我們齊心協力解決股東的擔憂並改進我們的 ESG 指標。上週，我們宣布增加一名新的董事會成員 Nancy Chang 博士，她在事業上的成功和廣泛的經驗將為我們的董事會帶來新的聲音和獨特的視角。她還是我們的環境安全與治理委員會主席，負責監督我們的 ESG 工作。我們相信，張博士將幫助指導我們的持續改進，並協助我們實現對最高標準的 ESG 和公司治理的承諾。 Nancy 是一位世界級的科學家和成功的商業問題解決者，她為我們的業務帶來了獨特的視角，就像她對休斯頓的聯邦儲備委員會所做的那樣。

So in closing, we're very pleased in how well we have started 2023, both operationally and financially. I'd like to thank our strong team at W&T as I believe we are well-positioned for continued success in 2023 and beyond. So our strong financial position, which was enhanced with our net significant debt reduction and debt maturity extension, our remaining debt from 2023 to 2026, provides us with optionality and flexibility moving forward.

因此，最後，我們對 2023 年在運營和財務上的良好開端感到非常高興。我要感謝我們在 W&T 的強大團隊，因為我相信我們有能力在 2023 年及以後繼續取得成功。因此，我們強大的財務狀況，由於我們的淨重大債務減少和債務期限延長，以及我們從 2023 年到 2026 年的剩餘債務而得到加強，為我們提供了前進的選擇權和靈活性。

Our liquidity and cash position enables us to continue to evaluate growth opportunities, both organically and inorganically. And we're poised to execute on accretive opportunities that meet our long-standing improvement criteria. We believe the Gulf of Mexico is and will continue to be a world-class basin with strong producing assets. So quickly evaluating and executing on opportunities within our focus area is a pillar of our success. We have a premier portfolio of both shallow water and deepwater properties in the Gulf of Mexico that have low decline rates and significant upside.

我們的流動性和現金狀況使我們能夠繼續評估有機和無機的增長機會。我們準備好執行符合我們長期改進標準的增值機會。我們相信墨西哥灣現在是並將繼續是一個擁有強大生產資產的世界級盆地。因此，快速評估和執行我們重點領域內的機會是我們成功的支柱。我們在墨西哥灣擁有一流的淺水和深水資產組合，這些資產的遞減率低且具有顯著的上升空間。

So our management team's interests are very highly aligned with those of our shareholders, given our 34% stake in W&T's equity, which is one of the highest of any public E&P company. And as a shareholder, I continue to be enthralled about W&T's right future in 2023 and beyond. Operator, we can open the lines for questions.

因此，我們管理團隊的利益與我們股東的利益高度一致，因為我們持有 W&T 34% 的股權，這是所有 E&P 上市公司中持股比例最高的公司之一。作為股東，我繼續對 W&T 在 2023 年及以後的正確未來著迷。接線員，我們可以打開問題熱線。

(Operator Instructions) Our first question today comes from John White from ROTH MKM.

（操作員說明）我們今天的第一個問題來自 ROTH MKM 的 John White。

Maybe getting a little ahead of things here, but let's assume if we get into August or September, and you haven't found a deal and you're not in the midst of working on a promising deal, would that be a point in time where you might pick up drilling activity throughout the latter part of 2023?

也許在這裡有點超前，但讓我們假設如果我們進入八月或九月，而你還沒有找到交易並且你沒有在進行有前途的交易，那會是一個時間點嗎在整個 2023 年下半年，您可能會在哪裡開展鑽井活動？

That's a possibility, yes, sir. Okay.

這是有可能的，是的，先生。好的。

And you previously -- I mean you made no secret you're very active looking for acquisitions. Can you characterize the predominant sellers? Is it major oil companies selling noncore assets? Or is it private equity-backed E&P companies? Where do you see the most activity?

而你之前 - 我的意思是你毫不掩飾你非常積極地尋找收購。你能描述主要賣家的特徵嗎？是大型石油公司出售非核心資產嗎？還是私募股權支持的勘探與生產公司？你在哪裡看到最多的活動？

Yes, it's all of the above, and there will also be probably some others that will present themselves in the interim. Fortunately, what we did was we opted to boost our liquidity in anticipation of these kind of opportunities. We had the opportunity to go ahead and pay out all of our debt, but that would have been at the risk of much greater liquidity. So the decision was made that liquidity would be a good thing, and I think that was the right call.

是的，以上都是，在此期間可能還會有其他一些人出現。幸運的是，我們所做的是在預期此類機會時選擇增加流動性。我們有機會繼續償還所有債務，但這將面臨流動性大幅增加的風險。所以決定流動性是一件好事，我認為這是正確的決定。

Well, you're certainly prepared for dealmaking and you have a successful history of that. So we will stay tuned and I will pass it back to the operator.

好吧，你當然已經為交易做好了準備，而且你在這方面有成功的歷史。所以我們會繼續關注，我會把它傳回給接線員。

And our next question comes from Derrick Whitfield from Stifel.

我們的下一個問題來自 Stifel 的 Derrick Whitfield。

Tracy, I wanted to focus on guidance with my first question. In light of the Q2 guide and your stance on reiterating 2023 guidance despite unplanned downtime impacts in Q1. I would ask if you could speak to the trajectory you're expecting for Q3 and Q4? And if there are any material planned maintenance impacts in those quarters?

特蕾西，我想在第一個問題中專注於指導。根據第二季度指南和您重申 2023 年指南的立場，儘管第一季度出現計劃外停機影響。我會問你是否可以談談你對第三季度和第四季度的預期軌跡？那些季度是否有任何重大的計劃維護影響？

Well, let me address the maintenance first. No, we had some issues at Mobile Bay with a certain contact power and it had a little more corrosion than we had anticipated. You don't know until you open these things up and inspect them. This was a hydrogen sulfide AMI contactor. So it was very important for us to get this right. We have a little H2S production in that field. So we wanted to make sure that we had this repair. The last time it was taken down it was 10 years ago.

好吧，讓我先解決維護問題。不，我們在 Mobile Bay 遇到了一些具有一定接觸力的問題，它的腐蝕比我們預期的要嚴重一些。除非你打開這些東西並檢查它們，否則你不會知道。這是硫化氫 AMI 接觸器。所以對我們來說，把這件事做好是非常重要的。我們在該領域有少量硫化氫生產。所以我們想確保我們有這個維修。上一次被拆除是在 10 年前。

So we wanted to make sure it wasn't taken down anytime in the near future. So as far as ramping up in Q3 and Q4, yes, that's kind of the expectation. I think that what we haven't addressed here, there's a lot of other fields that we have interest in that are non-operated as well that we would hopefully see some increases in production there. It's a little bit hard to classify that as quantitatively, but the overall feeling is that, yes, that could help us as well.

所以我們想確保它在不久的將來不會被刪除。因此，就第三季度和第四季度的增長而言，是的，這是一種期望。我認為我們在這裡沒有解決的問題是，我們感興趣的許多其他領域也沒有運營，我們希望在那裡看到產量有所增加。將其歸類為定量有點困難，但總體感覺是，是的，這也可以幫助我們。

Terrific. And then with regard to carbon capture market, I wanted to circle back to your remarks from Q4. Now that you've had more time to advance your efforts, could you perhaps speak to how your thoughts are evolving on the goals that you'd like to pursue with the CCS business?

了不起。然後關於碳捕獲市場，我想回到你在第四季度的評論。既然您有更多的時間來推進您的工作，您能否談談您的想法是如何在您希望通過 CCS 業務追求的目標上演變的？

Sure. We -- of course, we've been keeping a press to this and looking at it for a long time. We have numerous reservoirs in our portfolio of saltwater reservoirs, they can accommodate this kind of injection both onshore and offshore. So we're relatively confident that this will be a part of our portfolio in the future. I don't intend to spend a great deal of money. Most of the research and effort will be the first foot from the flue stack. So that's where most of the technology is going to be.

當然。我們——當然，我們一直在關注此事並關注了很長時間。我們的鹹水水庫組合中有許多水庫，它們可以容納陸上和海上的這種注入。因此，我們相對有信心這將成為我們未來投資組合的一部分。我不打算花很多錢。大部分的研究和努力都將是煙道的第一隻腳。這就是大多數技術的發展方向。

And then there will be adjustments made as to how that is done by people whose expertise is far greater than ours. We expect to be -- we don't expect that W&T is a net zero company. We buy properties from other companies in the Gulf of Mexico, and we take those properties and we produce them out for a long period of time, longer than they probably would have been produced without creating an additional carbon footprint of massive amounts of drilling, fracking, flaring, that sort of thing. So we come into the idea of thinking that we will be more of a follower than a leader in that business.

然後，專業知識遠比我們豐富的人將對如何完成這項工作進行調整。我們期望——我們不期望 W&T 是一家淨零公司。我們從墨西哥灣的其他公司購買房產，我們拿走這些房產並生產它們很長一段時間，比在不產生大量鑽井、水力壓裂等額外碳足蹟的情況下可能生產的時間更長，燃燒，那種東西。所以我們想到我們將更多地成為該行業的追隨者而不是領導者。

(Operator Instructions) Our next question comes from Jeff Robertson from Water Tower Research.

（操作員說明）我們的下一個問題來自 Water Tower Research 的 Jeff Robertson。

Tracy, can you talk about how the lease that you picked up -- can you talk about how the leases you picked up in the most recent lease sale fit into the asset base and maybe your plans not necessarily this year, but 2024 or '25.

特雷西，你能談談你獲得的租約嗎——你能談談你在最近的租賃銷售中獲得的租約如何適應資產基礎嗎？也許你的計劃不一定是今年，而是 2024 年或 25 年.

Yes. Unfortunately, Jeff, that's a very good question. We haven't been awarded those leases yet. So while we were a high bidder, we haven't been awarded the leases. So it's a little premature for me to talk about that. I'll be happy to talk about it as soon as they are awarded.

是的。不幸的是，傑夫，這是一個很好的問題。我們還沒有獲得這些租約。因此，雖然我們出價高，但我們還沒有獲得租約。所以我現在談論這個還為時過早。一旦他們獲獎，我會很樂意談論它。

Just do you have a feel on how long it might take the OEM to process the bids and award leases from this sale?

您是否知道原始設備製造商需要多長時間才能處理此次銷售的投標和授予租約？

Yes, sir. They normally process that within about 90 days of the lease sale itself. So we're -- in the next probably 45 to 60 days, we should have a good idea about what they're going to do. And I apologize for not being able to elaborate on that. I just think that it would be premature to do so.

是的先生。他們通常在租賃銷售後約 90 天內處理。所以我們 - 在接下來的 45 到 60 天內，我們應該對他們將要做什麼有一個很好的了解。對於無法詳細說明這一點，我深表歉意。我只是認為現在這樣做還為時過早。

Okay. In terms of acquisitions, Tracy, with the balance sheet liquidity that you have, can you just talk about how you think about financing acquisitions between cash and obviously, depending on the size, how much debt you'd want to use?

好的。在收購方面，特雷西，憑藉您擁有的資產負債表流動性，您能否談談您如何考慮在現金之間為收購融資，顯然，根據規模，您想要使用多少債務？

Sure. In larger transactions and depends on how you define large. Well, let's say, it was a $1 billion transaction. We would lever up a little bit and then we would probably -- you should probably expect to see -- when I lever up, we would expect to see that as a temporary leverage up that we'd be paying down quickly. And then we would probably sell off a little piece of equity as well.

當然。在較大的交易中，取決於您如何定義大。好吧，比方說，這是一筆 10 億美元的交易。我們會稍微加槓桿，然後我們可能會——你可能應該期待看到——當我加槓桿時，我們會期望看到這是一種臨時的槓桿作用，我們會很快付清。然後我們可能也會賣掉一小部分股權。

So obviously, in keeping with your past, you would target assets that generate a significant amount of cash flow.

很明顯，為了與您的過去保持一致，您會瞄準能夠產生大量現金流的資產。

Yes. Yes. This is -- the company doesn't change its policies over time that work. So yes, generating cash flow is quite essential for us. Levering up. We want to stay within pretty known bounds of leverage right now. It's usually around 1. We would probably go a little bit higher than that to accommodate that acquisition and then tamper that with selling off a bit of equity.

是的。是的。這是——公司不會隨著時間的推移改變其有效的政策。所以是的，產生現金流對我們來說非常重要。槓桿。我們現在希望保持在眾所周知的槓桿範圍內。它通常在 1 左右。我們可能會略高於此以適應該收購，然後通過出售一些股權來篡改它。

And ladies and gentlemen, at this point in showing no additional questions. I'd like to turn the floor back over to Tracy Krohn, Chairman and CFO for closing remarks.

女士們，先生們，此時不要再提出其他問題了。我想將發言權轉回主席兼首席財務官 Tracy Krohn 的閉幕詞。

Thank you very much, operator. One other little minor -- well, not minor. One other little detail that I'd like to do is I would like to publicly thank Janet Yang for her service to the company as our CFO and even before that Janet has opted to move out of the city and go somewhere else in other state actually to facilitate some family things that she needs to deal with and her family.

非常感謝你，接線員。另一個小未成年人——好吧，不小。我想做的另一個小細節是，我想公開感謝 Janet Yang 作為我們的首席財務官為公司所做的服務，甚至在此之前，Janet 已經選擇搬出這座城市，實際上去了其他州的其他地方方便一些她需要處理的家庭事情和她的家人。

It's an opportunity for them going forward. We're very sad to see that she's leaving. I wish it was another way but I wish you well. The whole company wishes you well, and we're going to miss her, and we hope that everything comes out 100% for her. Thank you very much.

這是他們前進的機會。看到她要離開，我們感到非常難過。我希望這是另一種方式，但我祝你一切順利。整個公司都祝你一切順利，我們會想念她的，我們希望一切都 100% 對她有利。非常感謝。

Ladies and gentlemen, with that, we'll conclude today's conference call. We thank you for attending today's presentation. You may now disconnect your lines.

女士們，先生們，我們將結束今天的電話會議。我們感謝您參加今天的演講。您現在可以斷開線路。