Earnings Call: Q4 2018

Feb 8, 2019

Good day, ladies and gentlemen, and welcome to Brookfield Renewable Partners' fourth quarter and year-end 2018 results conference call and webcast. At this time, all participants are on a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star then zero on your touchtone telephone. As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Chief Executive Officer, Sachin Shah. You may begin. Thank you, operator. Good morning, everyone, and thank you for joining us for our fourth quarter 2018 conference call. Before we begin, I'd like to remind you that a copy of our news release, investor supplement, and letter to unit holders can be found on our website. I also wanna remind you that we may make forward-looking statements on this call. These statements are subject to known and unknown risks, and our future results may differ materially. For more information, you're encouraged to review our regulatory filings available on SEDAR, EDGAR, and on our website. 2018 was another strong year for the business as we continued to execute on our operating, funding, and growth initiatives. We invested considerable time during the year enhancing our operational and investment capabilities around the world. We also raised significant amounts of capital to ensure we are well-positioned to invest on a value basis during this next cycle. Since our inception in 1999, we have delivered a 15% per unit compounded annual return to unit holders, and we remain focused on delivering long-term stable returns as we build the business. Of note, in 2018, our FFO increased 14% on a per unit basis over the prior year as all of our businesses performed in line with expectations. Key operating priorities included cost reduction initiatives in North America and Colombia, which should improve our margins by approximately $20 million annually in the future. We continue to build out our operating teams in the U.S., Europe, India, and China over the year and continue to support our longer-term plans in these markets. From a growth perspective, we commissioned approximately 60 MW of new wind and hydro development, advanced over 350 MW of development in our pipeline, and maintained our opportunistic approach to development, which minimizes funding obligations and ongoing costs. We invested $550 million into growth during the year, including acquisitions and share buybacks. Accordingly, we repurchased approximately 2 million BEP units, primarily in the fourth quarter, at $27 per share. Our balance sheet and funding capabilities are strong. We executed on our asset recycling strategy, selling a partial interest in mature assets and exiting non-core markets. We extended all near-term debt maturities during the year, increasing the average duration of our debt to 10 years. We now have no material debt maturities until 2023. We also maintained our investment-grade balance sheet, increased available liquidity, which should exceed $2.2 billion once previously disclosed asset sales are closed. Finally, we continue to improve our distribution payout ratio, which ended the year at 95% of FFO on an actual basis and 90% of FFO on an annualized basis. With that, I'll now turn the call over to Wyatt to discuss our operating and financial results. Thank you, Sachin. Good morning, everyone. In 2018, we generated FFO of $676 million, a 16% increase over the prior year. During the year, our focus was on integrating recently acquired assets and enhancing our operational depth. At TerraForm Power, post the acquisition and sponsorship by Brookfield, the company was able to stabilize operations, reinstate preventative maintenance programs, engage with suppliers, and establish new teams and processes. This should lead to improved asset availability, more predictable capital expenditures, and enhanced operating margins over time. In addition, in TerraForm Power, we completed a significant acquisition of recently built wind and solar assets in Spain, which almost doubled the cash flows of the company on an annualized basis and facilitated the overall improvement of the company's capital structure. This also assisted us to eliminate negative financing covenants and improve TerraForm Power's balance sheet rating. The acquisition should provide stable long-term cash flows to TerraForm Power at accretive low teen returns, and based on recent announcements of improving tariffs in Spain, could exceed our expectations. We have one of the largest hydroelectric businesses in the world, which we have doubled in size and expanded across multiple geographies over the last 5 years. These assets contributed $671 million to FFO in 2018. Hydroelectric assets benefit from long useful lives, often over 100 years, low operating and ongoing capital costs, and the ability to match power supply with demand given their embedded battery-like characteristics. Operationally, we continue to lengthen the term of our power purchase agreements in Colombia and Brazil, where power price volatility provides opportunities to enhance and stabilize future revenues. Our contracts in both markets are generally at or below market, and therefore, we see term extension as a unique opportunity to lock in upside. In North America, power prices remain low, and therefore, we continue to sign shorter term contracts at our hydro facilities to ensure we retain upside optionality if prices spike. We have several large legacy PPAs rolling off over the next three years for assets that deliver power to New England. Fortunately, these contracts, on a net basis, deliver power at prices in the range of the current market. Therefore, on renewal, we expect overall revenue to be impacted by ±$5 million. Beyond these contracts, we do not have any material PPA maturities in North America until 2029. Our wind assets delivered $160 million of FFO in 2018. Over the last 18 months, we more than tripled the installed capacity of our wind fleet through large-scale and tuck-in acquisitions and development projects coming online. Given that we now have a portfolio of wind assets across 10 countries and 4 continents, this geographic diversification provides a significant mitigating benefit to resource variability and is a good example of why we prioritize diversification as a key value driver of our business. Our solar, storage, and other operations contributed $104 million of FFO in 2018 as we benefited from large-scale acquisitions in 2017 and 2018. Today, we have nearly 1,800 MW of PV, concentrated thermal, and distributed generation solar, as well as 2,700 MW of both pumped and battery storage. Our solar facilities are underpinned by highly contracted cash flows with an average remaining PPA term of 17 years. Our storage facilities continue to provide critical grid-stabilizing ancillary services and backup storage capacity, products that are becoming increasingly valuable given the intermittency of wind and solar. With regards to our balance sheet and liquidity, we currently have no material debt maturities over the next four years, and our overall debt duration is 10 years. We have limited exposure to rising rates, with only 7% of our debt in North America and Europe exposed to interest rates. We are well protected from foreign exchange volatility as we hedge all of our developed market currencies. We also hedge currencies when we are in the process of an asset sale, as we did, for example, with our select Canadian hydroelectric assets and our South African portfolio, locking in very attractive returns on these disposals. Accordingly, an overall 10% move in the currencies of markets we operate in, both developed or emerging, would have an overall 4% impact to our FFO. Post-completion of recently announced asset sales, we will have $2.2 billion of available liquidity. Over the course of the year, we announced or completed key capital-raising initiatives across the portfolio. These initiatives included the sale of a 25% interest in a portfolio of select Canadian hydroelectric assets, as well as the announced sale of an additional 25% interest, a small wind development project in the U.K., as well as sales of our non-core assets in South Africa, Thailand, and Malaysia, which were agreed in 2018 and which we expect to close in the first half of 2019. Looking forward, we have a robust pipeline of assets that we believe would attract low cost of capital buyers in the sales process. Therefore, we expect the majority of our growth to be funded by the proceeds from asset sales, cash flows retained in the business, and issuances of preferred equity or corporate debt. As such, while we may issue equity when it makes financial sense, given the above-noted funding sources, we are not reliant on accessing this market to fund our growth. In light of our recent growth, strong balance sheet, and access to capital, we are pleased to announce that our board of directors has approved a 5% increase to our quarterly distribution, bringing our annual distribution to $2.66 per unit. On a final note, and on behalf of our employees and directors, we would like to express our sincerest appreciation to our unit holders and many business partners for your contribution to our success. Thank you for your continued support, and we look forward to updating you on our progress in 2019. That concludes our formal remarks. Thank you for joining us this morning. We'd be pleased to take your questions at this time. Operator? Thank you. Ladies and gentlemen, at this time, if you have a question, please press the star, then the number one key on your touchtone telephone. If your question has been answered, or you wish to remove yourself from the queue, please press the pound key. To prevent any background noise, we ask that you please place your line on mute once your question has been stated. Our first question comes from Sean Stewart with TD Securities. Please proceed. Thanks. Good morning, everyone. Couple questions. It seems like you're still predisposed to asset sales, given the valuations you're seeing in the market. Can you give us an idea of the scale of that opportunity set in terms of how much you'd be willing to part with? I assume it's fractional stakes of assets you still own. An idea of, I guess, the scale you're looking at potentially over the next little while. Oh, hey, Sean. It's Sachin here. Look, we're not programmatically selling assets. I hope that's not what anyone thinks. We will sell assets when we feel we have a robust growth pipeline. Today, our M&A pipeline is very strong around the world. Therefore, making sure that we have strong level of liquidity is just prudent in that regard. I think it's gonna be opportunistic. It's not a programmatic type of response to generating liquidity. The reality is, as long as there is a significant supply of low cost of capital around the world, whether that be from institutions, private investors. Asset managers or other power companies, then, we think the bid will remain strong. We don't see that changing anytime in the near future. I'd say right now with a line of sight to over $2 billion of liquidity, we're in great shape. That you know should allow us to fund our growth over the next few years very comfortably, without stressing our balance sheet or without needing to tap public equity markets. Beyond that, it'll be again based on the strength of our M&A pipeline. Okay, thanks for that. Next question is on Colombia. We saw some good margin gains there. Can you give us an idea of, I guess, costs you're still able to take out of that portfolio going forward? What are your objectives there? Yeah. When we acquired Isagen, we had a seven-year program that we had undertaken to you know, reduce costs, improve capitalization, manage the tax profile of the company, start to build out the development pipeline and increase term of contracts. You know, we're three years into that. I'd say we still have very, very good line of sight for the next four or five years. You know, naturally, when you get into a business, you find things that you didn't realize would be there when you underwrote the transaction. I'd say it's been a really positive surprise coming into that organization and working with the management team. I think we have, you know, at least five more years of very strong improvement from a margin perspective, and more importantly, opportunities to grow the portfolio through development. Okay. I'll get back in the queue. Thanks, Sachin. Thank you. Our next question comes from Andrew Kuske with Credit Suisse. Please proceed. Thank you. Good morning. The first question relates to the buyback that you did in the quarter, the 2 million units. Would you have done more, or were you actually liquidity constrained, you know, at certain points in the market? Hey, Andrew, it's Sachin. We definitely would've done more. You know, I think, given our available liquidity right now, you know, we had set a price target in our mind of where we wanted to buy shares back, considering other investment opportunities and our target returns. For us, buying back stock, it has to make sense for us from a return perspective relative to other opportunities we see. In and around that $27, you know, we had a line of sight to mid- to high teens type returns from what we believe the intrinsic value of the business to be. therefore, if the stock persists at that level, we see it as, you know, very, very good value and are happy to continue to put dollars to work, reducing the share count of the business. Okay, appreciate that. Maybe just to follow up, when you think about the public-private market divide that exists, you know, clearly that presents an opportunity from, you know, selling certain assets. You clearly have bought back your own units. You can develop things. How do you look at the equation on balancing all of those interests? You know, also to throw into the mix just the complexity that's associated with say, selling partial interests in certain assets. Yeah. Look, I think I'll start with your last comment, which is the complexity of selling assets. You know, I think today, given the stage we are in the business where almost everything we acquire is through our private funds, you know, we've become very adept at being regular sellers of assets, recognizing that our funds have, you know, 12-14 years of life attached to them. Therefore, if we can create the value that we envisioned when we acquired an asset, and we can generate that very strong return, then taking some money off the table and redeploying it into, you know, an attractive opportunity, is really a good use of capital. From a shareholder's perspective, if you can sell to a single-digit cost of capital, a 5%-7% type return buyer, and redeploy in that mid-teens type of return range, there is very, very meaningful accretion that drops to the bottom line. In fact, I would say you could see it in our business. You know, we had a pretty difficult payout ratio 3 or 4 years ago, and we've steadily chipped away at that and brought it down below 100%, and we continue to do that. All of that is largely because most of our growth in the last 5 years has actually come through asset recycling and through redeploying that capital into stronger M&A opportunities. We did do a few equity issuances, but not nearly of the quantum of the capital we deployed. I think you can actually go back and look at our track record over the last five years and see the value of that accretion. If we continue to use that strategy, I think the accretion will be even stronger going forward. In terms of balancing out between M&A development and share buybacks, we've never been a large developer of assets. For us, development we think about as really it has to have better returns given it has higher risk than M&A. I think what we've seen in the developed markets around the world today is that the returns that investors are chasing are so low that many of them have also gone aggressively into development and bid those returns down to very low levels. The differentiation of risk is not being factored into those returns. Today, development in the Western world, you know, North America and Europe, still continues to attract a single-digit type return. You're taking all of that development risk, and you're creating a funding obligation. What I would tell our investors is you shouldn't expect us to have a large development program in parts of the world. Unless we start to see the risk reward profile change, and more importantly, we don't have the obligation to have to fund development pipeline and development burn rate, like some of our competitors do, which is a huge advantage when you wanna protect your capital and your balance sheet. Lastly, on share buybacks, it's completely opportunistic for us. We have a Normal Course Issuer Bid program under which we can buy back stock. If we see markets, you know, become highly volatile like we did in December, we're gonna be aggressive in buying back the stock. That's very helpful. One quick one if I can. Did you have any benefit from polar vortex in the month of January in the North American portfolio? Yeah, a little bit. You know, we saw prices spike for a few days here and there. I'd say the bigger impact was really on the forward curve where we saw sort of that 90-day forward period really spike for a few days and then come completely off as warmer weather came in. You know what, Andrew? I'd say, and I make this comment about both pricing and generation. As we've diversified the business in the last 5 years and become much more global in nature, the impact of either, you know, significant movement in prices or hydrology has really become much smaller relative to the overall portfolio. So it's nice when it happens, but it doesn't move the dial in the business. I wouldn't want anybody to think that that's somehow a key driver of results in the first quarter. Okay, great. Thank you. Thank you. Our next question comes from Rupert Merer with National Bank. Please proceed. Good morning, everyone. On growth, you mentioned you have a robust pipeline over the next few years. How quickly should we expect you to deploy that $2.2 billion in liquidity? If you can talk about where you see the growth opportunities and how important is diversification for you. I imagine diversifying out of hydro and out of North America. I'll start with the pipeline, Rupert. Today, we see a significant amount of opportunities in India, just given that there's been a bit of a dry up of capital in that market recently, especially around renewable power assets. We've been patient in that market, not really building out over the last 5-7 years, given how strong the bid has been. I'd say all of a sudden within the last sort of 6-8 months, the market has really turned in our favor. That's an area where we see continued interest and appetite for growth. Southern Europe is also a very strong market for us, and we see further opportunities like we saw with the Saeta transaction midway through 2018. There's pockets in the U.S., largely around development and repowering, where we started to see the first signs of cracks, as many of our competitors in the U.S. face significant headwinds in their business and have limited, I'd say, capital for growth. I think those three markets today tend to be the strongest for us. LatAm's always strong, but I would say nothing has really changed in Colombia or Brazil in the last year. Both of those markets remain pretty decent for buyers, but still highly competitive. You should expect us to look for growth or have growth opportunities with a line of sight in India, Southern Europe, and pockets of the U.S. you know, in terms of whether or not we can secure those transactions, again, it's completely opportunistic. It'll depend on whether or not we're successful in the various processes we're in. We're building our liquidity war chest in anticipation of those opportunities, but also future opportunities given just we can look anywhere around the world. That generally works to our favor. Okay, great. Thanks for the color. Then just quickly, you mentioned in your press release that you've executed cost reduction initiatives around $20 million so far. You've given us some color on additional cost reduction. How much of that $20 million would we have seen in Q4 or in 2018 versus what we can expect to see in your run rate next year or 2019? You've probably seen. I'd say in Q4, we probably started to benefit from most of it. In the first three quarters, it was sort of dribbling in in a smaller way. I'd say Q4 was really where you started to see the full impact of that. Great. I'll leave it there. Thank you. Thanks. Thank you. Our next question comes from Nelson Ng with RBC Capital Markets. Great, thanks. I was just looking at the development pipeline, and I noticed that there's 35 MW of solar regarding GLP in China. Could you just roughly indicate how many sites that is? And also, I guess big picture, are there a lot more of those rooftop solar projects coming online? Hey, Nelson. I believe it's around 15-17 sites making up that. These are small installations. What I would say more broadly is, look, we're gonna be very modest with our capital deployment in China. We look at it as a very, very long-dated important market for us, but we recognize the challenges around trade actions and around geopolitical risk. We're building slowly in the country. The level of capital is gonna be modest. I think if you look at our supplemental, you know, we talk about $1 million of additional FFO coming into the business as a result of that. I wouldn't wanna place undue emphasis or overemphasize the impact of that. I think it's just gonna be a slow and steady program of building a bit of a footprint. Investors shouldn't expect significant capital deployment in that market for the foreseeable future. Okay. 'Cause I think then when you guys initially announced the JV, I think you had a target of about 300 MW over the first few years. I guess kinda using, like, doing the math, if 39 MW gives, I guess, $1 million of FFO, then we're looking at less than $10 million of FFO. Yeah. We're still on track to that. You know, I mean, remember, this is a 50/50 JV with another company, and then the 50 percent that we have is through our private fund. You know, we're 25 percent of that 50. It's pretty modest. Again, China is one of the most important countries in the world, one of the largest economies in the world. We're building out for the future, but none of what we've built today should lead to significant capital deployment or significant change in the risk profile of the business. You can just do the math and figure out that, you know, even if we built out the full 300, you know, it's less than $10 million of FFO. Okay. Got it. Like, just switching over to M&A opportunities, you mentioned that there are a number of opportunities, but you also say that there are, I guess, very low, kind of, implied returns for operating and development assets. It's just mainly in, I guess, India and, I guess, like Spain and pockets of the U.S. where you see, like, I guess those returns diverge from other markets, and is that why you're focusing on those areas kinda near term? Yes, is the simple answer right now. Look, I mean, I think I'll give you this example, Nelson. It was only three or four years ago where you would've asked this exact same question about wind and solar in the U.S. We would've said, "Yeah, it's expensive. The market's expensive." Then the TerraForm transaction showed up. I think what we would say to people is, we're opportunistic investors. We're gonna move our capital where there's scarcity, and that scarcity is not something that you can predict to a high degree of reliability. Today, based on where we see those pockets of distress and where we know that we are in advanced stages with counterparties, you know, those three markets tend to be the most robust. If we see an opportunity open up in another part of the world, then we're gonna be aggressive in pursuing it, and we have the liquidity, the balance sheet, and the operating expertise to be able to capitalize on that. Okay. Got it. Just one last question. In terms of the sale of the second 25% interest in some of the Canadian hydro assets, has an agreement been, like, signed and finalized, or are you still in the like stages of negotiating with potential purchasers? We can't comment. It's an active process right now, so we just won't comment on where we are, but you know, other than saying we're advanced. Okay. Got it. All right. I'll get back in the queue. Thanks, Nelson. Thank you. Our next question comes from Mark Jarvi with CIBC. Please proceed. Good morning. Morning, Mark. Yeah. Just wanted to touch base on, you talked about extending contracts and re-upping in Brazil and Colombia. Just wondering what your views are on in terms of the EPM, you know, project pretty substantial in the Colombian market, how that's gonna sort of inform your views about maybe taking sort of shorter-term views on exposure, or would you rather just keep locking in for longer to extend the duration? Yeah. Look, I think, in Colombia, the reason that we are prioritizing longer-term contracts is because it opens up the financing markets for that business. There's a huge benefit to both increasing the level of financing in the business, but also the duration of the financing, from a returns perspective, from a return on our capital invested in that business. I would say you should expect us to continue to prioritize longer-term contracts. More than half of the contracts we've signed since we've acquired that business have been between 5 and 10 years, and we've actually started to sign some contracts in excess of 10 years. We've increased the debt to EBITDA in the business from 2.5 times when we bought it, you know, up to about 3.25 now. That business can comfortably manage, you know, close to 4 times debt to EBITDA. If you could do that because you have more certainty on the revenue profile and length to your contract terms, then that will really drive the returns that we underwrote and it's a good strategy for the business to employ. Okay. Just going back to the commentary about, you know, where your contracts rolled off on, like, Lièvre and then going down into New England. Given where capacity prices have been clearing the last couple auctions coming down, does that capture still within that ±5% revenue band? Yeah, it is. Because the contracts we have for Lièvre and for some of our other domestic New England assets, it was an all-in price that included capacity. In fact, what we were factoring in was around, you know, $3.50-$4 a kW a month, which is kind of where the markets are clearing. We never really underwrite or plan in excess of that mark. I think from a long-term perspective, that's generally where we've seen the markets gravitate to. Okay. That's helpful. Thanks. Thank you. Our next question comes from Robert Hope with Scotiabank. Please proceed. Hello, hello, everyone. Just want to circle back on the comments regarding opportunities in the U.S. in certain pockets. If we go back to the Q3 call, it seemed that you're looking more at corporate acquisitions, just given commentary regarding, you know, volatility in the equity markets. Just wanna get a sense of, are you looking at asset packages, development opportunities, or even corporate acquisitions there? I'd say it's the latter two. We're seeing in the U.S. some distress in the developer community, and we're also seeing some, I'd say, pockets of smaller corporates, not necessarily public, but you know, platforms that do operate in the U.S., solely operate in the U.S., both struggling for access to capital and looking for an operational partner. I'd say for that, we think we are really well-positioned to execute on a few of those opportunities. Obviously, it's gonna be dependent on how these markets play out and what alternatives those groups have. All right. Thank you. That's it for me. Thank you. As a reminder, ladies and gentlemen, if you do have a question, please press star then one. Our next question comes from Ben Pham with BMO Capital Markets. Please proceed. Okay, thanks. Good morning. I wanna go back to your commentary on India. I know you've been pretty bullish on the supply-demand on there for some time, and it sounded like a few years back when you mentioned it was more just trying to get a better understanding of that market. As you sit here today, Sachin, and just hearing your comments, it seems like a lot of the due diligence and comfort levels reach a level where you can actually look at deploying capital, and it's just really the opportunities have to avail themselves at this point. I'd say it a little bit differently. We got ourselves comfortable with India. Look, we've spent the last six years looking at every renewable power opportunity in India that's come across our desks and come across our group in India. I would say it wasn't that we were uncomfortable from a diligence or understanding perspective. We got ourselves comfortable pretty quickly, you know, within the first 12-18 months on just the overall dynamic. However, valuations were just very, very high for what we felt the risk profile was. That valuation dynamic really just had not abated until very, very recently. You know, I think, as you've seen from us, we're a patient capital, and it doesn't matter if it's gonna take us six years to get into a country or get into a sector, we will take our time. When we do, we will feel like we acquired for value, and we can build the business then at the right returns for our shareholders. I would say India was, you know, one of the markets around the world that was quite expensive for the last six years. All of a sudden, we're just seeing that start to change. We think there could be some unique opportunities to transact for value in that marketplace. Okay. Thanks for clarifying that. When your slides on the assets under construction, you mentioned there's another 200 MW that are construction-ready. Could you detail that a bit more of what that is? I'm also curious, there's your FFO from that $28 million is substantially higher than the implied change in the megawatts from the construction projects. Yeah, Ben, thanks for your question. It's Wyatt here. On the construction-ready assets, this is a mix of projects. This is some development of wind we have in the U.K. region, and this is really just an expansion on some of the wind projects we are continuing on the development of the projects we have in that region. There's also some hydro opportunities in Brazil, and then potentially a few more megawatts with respect to the opportunity we have with GLP in China. You know, it's a variety of projects, and really, we're just kind of progressing to the end of securing a PPA or getting the development licenses we need to do that. Maybe I missed the second part of the question, so can you repeat that? Yeah, sure. Your 150 MW right now, you're building. You're guiding for $50 million in FFO. Then the 200 MW construction. It's almost a doubling of FFO. I'm assuming the construction-ready projects are just high return. Yeah. It's a bit of a mix in terms of one, whether it's, you know, through a fund and obviously, you know, we'll take a lesser percent when it's through a fund or when it comes to the Chinese development, of course, that's through a JV partnership. It's a bit of what is our underlying ownership. Then, as you mentioned, it is also incrementally the Project based on the underlying economics. Yeah, maybe just to be clear, two of the projects in that portfolio of ready-to-construct are directly owned by that. So when they're directly owned, we just generate a higher FFO versus the balance which are owned through funds. Okay. I got it. Thanks for that. Maybe lastly, I mean, this is really just thinking two years from now, your contract profile, you have a good slide that you always produce. 2021, the Lièvre contracts roll-off. Sounds like the financial impact is not gonna really that significant. But I'm just wondering, how do you guys think about your spot exposure? 'Cause it looks like it's gonna go up dramatically. Is that just really a concern when spot prices dramatically increase? Or do you have a targeted contracted percentage that you guys wanna get to eventually? Yeah, look, I think we definitely don't have a target. I think you should be worried about it if you have high spot prices and you haven't locked it in, and all of a sudden you have a cliff of cash flows coming if the markets turn. You know, we've been, I'd say both lucky and good about investing in merchant hydro when power prices were low. A lot of the merchant hydro we've bought in the last 7 years, we haven't put contracts on it, but we bought it in this market that's been dreadfully low as shale gas prices are, you know, down in the $2 range. We're very comfortable holding those in as merchant assets. You know, could we lock in 1-, 2-, or 3-year contracts? We could. We definitely will not lock in long-term contracts in this environment. I'd say where we were lucky was that the contracts that are coming to the end of their term in the next few years just happen to be at the current market price. You know, sometimes you gotta be a little bit lucky, and then other times you gotta be good. Fortunately for us, we don't have any meaningful downside risk until 2029, which is the next real major PPA maturities that come due. I'd say as we've done in the last number of years, we continue to grow the business, continue to diversify, and it continues to mitigate the impact of any one facility or any one PPA coming offline. We have a really good runway ahead of us. We don't have any major cliff in our cash flows for the next 10 years. Between now and then, we continue to have to build the business and deploy capital and diversify around any single market exposure. Okay. That's very helpful. Thanks for everybody. Thank you. At this time, I'm showing no questions in the queue. I'd like to turn the call back over to Sachin Shah for closing remarks. Again, as Wyatt said in the prepared remarks, we thank everybody for their continued support in the business, our employees, our board, our shareholders, and all of our stakeholders. We look forward to updating you on Q1, and we thank you for all your support. Thank you, everyone. Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect. Everyone, have a great day.