Good morning. My name is Anis, and I'll be your conference operator today. At this time, I would like to welcome everyone to Keyera Corp.'s second quarter 2021 conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you'd like to withdraw your question, please press the star, then the number two. Thank you. I would now like to turn the call over to Dan Cuthbertson. You may begin.
Thank you, and good morning. Joining me today will be Dean Setoguchi, President and CEO, Eileen Marikar, Senior Vice President and CFO, Jamie Urquhart, Senior Vice President and Chief Commercial Officer, Bradley Lock, Senior Vice President and Chief Operating Officer, and Jarrod Beztilny, incoming Senior Vice President, Operations and Engineering. We'll begin with some prepared remarks, after which we will open the call for your questions. I'd like to remind listeners that some of the comments and answers that we will provide speak to future events. These forward-looking statements are given as of today's date and reflect events or outcomes that management currently expects. In addition, we will refer to some non-GAAP financial measures. For additional information on non-GAAP measures and forward-looking statements, refer to Keyera's public filings available on SEDAR and on our website. With that, I'll turn the call over to Dean.
Thanks, Dan. Good morning, everyone. We've had a great first half of 2021, with strong performance in all three base business segments. Recovering commodity prices, along with the actions we've been taking to drive further efficiencies, are delivering excellent results. In our Gathering and Processing segments, we've been focused on driving higher margins by utilizing available capacity. Volumes are up over 10% year to date, including about 25% growth in our north region, and that's led to record quarterly margin contribution from the segments. Of note, the Pipestone plant operated at a high utilization in June, well ahead of our original expectations. In mid 2022, we look forward to welcoming an additional producer who has contracted out the remainder of the plant under a long-term take-or-pay agreement.
In our south region, we are also seeing an increase in drilling activity in our capture areas as properties change hands to stronger, better capitalized producers. Our Liquids Infrastructure segment continued to see high demand for its services. Deliveries from our condensate systems remain strong as oil sands production continue to ramp up. Although we had some planned maintenance at our Fort Saskatchewan complex, our fractionation assets remained highly utilized, as did our storage facilities. The Liquids Infrastructure segment generates returns that are amongst the highest in our portfolio, with high barriers to entry and stable long-term cash flows. We'll continue to direct most of our future growth capital to this business segment, which includes the KAPS Pipeline project, currently under construction. The Marketing segment continued to add significant value, enhancing overall corporate returns.
There, we leveraged our infrastructure assets and logistics expertise to connect customers to the highest value markets. Due to improving commodity fundamentals and our disciplined risk management program, we now expect to come in at the upper end of our marketing guidance of CAD 260 million-CAD 290 million for 2021. Turning to our company's leadership, here I'd like to inject a note of pride in Keyera's breadth, strength and succession planning, which allows for a few smooth transitions. On November 1, 2021, Bradley Lock, Senior Vice President and Chief Operating Officer, will retire from Keyera. Brad has been with us for 17 years in various senior executive roles. We thank you, Brad, and wish you well in retirement. Succeeding Brad will be Jarrod Beztilny, who has been appointed Senior Vice President, Operations and Engineering.
Jarrod is currently Vice President of Operations for the Gathering and Processing business unit and has been with Keyera since 2004. Our aim is to deliver superior shareholder returns over the long term, and we will do this by focusing on capital discipline, increasing the competitiveness of our assets, strengthening our integrated value chain, and demonstrating leadership in ESG performance. Overall, we're pleased by our results year to date and encouraged to see an increase in activity in the basin. I'll now turn it over to Eileen to provide an update on our Q2 financial results.
Thanks, Dean. Adjusted EBITDA for the quarter was CAD 224 million. This reflects a 23% increase over the same period last year. This result includes the impact of a CAD 20 million non-cash accrual for long-term compensation. Distributable cash flow was CAD 148 million compared to CAD 158 million in the same period last year. The decrease was mainly driven by higher maintenance capital spending in the quarter. Net earnings were CAD 79 million. The Gathering and Processing segment delivered a record margin of CAD 86 million as we reached new throughput highs at both the Wapiti and Pipestone gas plants. We delivered CAD 96 million of realized margins in our Liquids Infrastructure business. This result includes the impact of a planned maintenance outage at Keyera's Fort Saskatchewan complex. Our Marketing segment delivered a realized margin of CAD 78 million.
We continued to apply a disciplined risk management approach to lock in our future. This approach is especially important in the context of funding our KAPS Pipeline project. A couple of notes in respect to guidance. We now expect our realized margins from the Marketing segment to come in near the upper end of our guidance range. Second, as a result of strong performance so far this year and our expectations for the balance of the year, we now expect cash taxes for the year to increase to the CAD 30 million-CAD 40 million range. We exited the quarter in a strong financial position. Net debt to adjusted EBITDA was 2.7x . This is well within our conservative target range of 2.5x-3x . The company has CAD 1.5 billion in available liquidity with minimal near-term debt.
I'll now turn it over to Jamie to provide an update on our commercial activities.
Thanks, Eileen. Good morning, everyone. We remain constructive on the pricing environment for the commodities we move through our systems. For natural gas, LNG off the west coast of Canada and major pipeline expansions will enable more exports to key growth markets, supporting a continued strong pricing environment for natural gas. Our outlook for propane pricing remains strong, with low levels of inventories throughout North America currently and the potential for strong demand in the fall. Our assets give us the ability to store product during low-demand seasons. We can maximize margins by selling in the higher demand fall and winter seasons. We were able to lock in attractive butane supply costs for the 2021 contracting season, supporting the value of our iso-octane and blending businesses. Overall strength in crude prices and RBOB supports increased value for our iso-octane and condensate businesses.
Finally, condensate demand continues to climb as our oil sand customers grow into expanding oil pipeline export capacity. The current pricing environment and renewed optimism has incented many producers to increase drilling activity throughout the basin, pushing up volumes across our integrated value chain. I'll now turn it over to Brad to provide an update on the KAPS project and speak to our operational highlights.
Thanks, Jamie. I'm pleased to share that we have moved into the execution phase on the KAPS Pipeline project, with construction officially underway. In Q2, we successfully completed our first horizontal directional drill for the first river crossing of this project. A key part of our execution strategy is to complete the more challenging sections of construction early. It's a great first step to get this river crossing completed. Costs for the project, including steel and labor, are under contract with inflation protections in place. Costs remain on track, and the pipeline is expected to begin operations in early 2023. At the Wildhorse crude oil and blending terminal in Cushing, Oklahoma, we are fully operational, having completed commissioning in July. The new terminal includes 12 above-ground tanks with 4.5 million barrels of working storage capacity. It connects by pipeline to two existing storage terminals in Cushing.
This business will be ramping up through the remainder of the year and into 2022. Turning now to the optimization program in our G&P segment. We safely completed turnarounds at the Zeta Creek and Brazeau River gas plants in the second quarter. These were completed on time and on budget. Because of our integrated network of plants, we were able to redirect volumes to our other facilities, minimizing any impact to our customers and overall volumes. As part of our planned optimization program, we successfully shut down the Brazeau North gas plant in July and will be shutting down the Ricinus facility in the coming months. We expect to realize the full benefits of the optimization program on completion in 2022. In July, we completed some work at the Wapiti gas plant.
The facility was taken offline for about 10 days to install a new waste heat recovery unit and perform other minor maintenance work. This planned outage was completed on time and on budget and will support the future reliability of this facility. With that, I'll hand it over to Dean for some closing comments.
Thanks, Brad. Keyera's value proposition continues to be the delivery of a sustainable and growing dividend. That proposition is underpinned by low debt leverage and investments in projects that generate strong returns, which contribute to expanding distributable cash flow per share. Looking ahead, Keyera will continue to be focused on being a safe, reliable, and sustainable operator dedicated to serving our customers and generating value for our shareholders. We're excited about the future, and we're confident we have the culture, people, and assets to deliver results. On behalf of Keyera's board of directors and our management team, I thank you for your continued support. With that, I'll turn it back to the operator for Q&A.
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have any questions, please press star followed by one on your touchtone phone. You'll hear three tone prompt acknowledging your request and your questions will be pulled in as received. Should you wish to decline from the polling process, please press star followed by two. If you're using a speaker phone, please your handset pressing any keys. One moment for your first question. Your first question comes from Matt Taylor with Tudor, Pickering. Matt, please go ahead.
Yeah, thanks for taking my questions here, guys. If I could just start at AEF, I wanted you to talk about some of the opportunities you're seeing that are possible for that facility to take advantage of the Clean Fuel standards that could come next year. I know you've talked about it briefly in the past. I'm wondering if you're looking at having to spend CapEx or other opportunities now that we're getting closer to when it might come.
Matt, thanks for the question. We definitely see some opportunities, the majority of them are really around the emissions intensity optimization opportunities. The potential for biofeeds into that facility as well to ultimately create a bio-isooctane. Nothing to report as of yet, we're certainly dedicating resources to it and optimistic that we'll be able to show some meaningful benefit to our shareholders in the future.
Yeah. Thanks for that, Jamie. Would you say it's still fairly early stages, or are you starting to move into the thinking about types of project, size of project?
Yeah. I would say it's early stages with respect to us being able to announce a project. We're well in the process of evaluating the opportunities and doing the necessary engineering work to be able to ultimately sanction those opportunities.
Great, thanks for that. I wanted to touch on your comments about propane strengthening significantly. My understanding is liquidity is quite weak in Alberta, and you hedge most of that against your U.S. benchmarks. Do you have any broader comments about how you are positioning the business to take advantage of better long-term pricing and whether that will materially impact your results going forward?
Yeah. Well, a couple of comments is that, I think as we noted, the inventory of propane in North America is at lower than usual levels. In order for propane to be incentive to be put into storage that ultimately will serve what we anticipate will be the winter demand, we're going to have to see an increase in pricing in the forwards. Otherwise, those barrels are going to find their way into the export market. Just from a fundamentals perspective, we're very bullish and that's one of the primary reason why we believe propane prices will have to strengthen between now and the fall and winter demand season. Now, prices are already very strong and that's driven primarily off of some supply demand dynamics, but also more so on the global demand for that product.
As we've shared with people before, we have the assets in place, whether it's storage and/or logistically, to be able to hit the highest value markets throughout North America when those higher prices ultimately materialize. We're using our risk management program to basically lock in those margins when we see those differentials materialize. The last point I'd make is obviously the strong pricing for propane supports our producers. That is going to allow them to see the economics of drilling more wells, and also sees the value of our deeper cut value proposition in our Gathering and Processing business.
Great. Thanks for that, Jamie. Just a follow-up to that. Those positive fundamentals, is that reflected in your revised commentary now that you're looking at the top end of your Marketing guidance?
It would be, Matt.
Great. Thanks. That is all for me.
Thank you. Your next question comes from Rob Hope with Scotiabank. Please go ahead.
Morning, everyone. I guess, first off, Brad, all the best in the new endeavors and congrats.
Thank you.
Maybe just, great, turning the attention to the go forward outlook here. Volumes are increasing nicely, offset by some kind of heat-related weakness in June. How are your conversations progressing with customers regarding potentially to add some contracted volumes on your northern plants or even your southern plants? I guess then a follow-on would be how are conversations going on KAPS for additional contracts?
Okay. Sorry. I'll start with the first question. The fundamentals are really starting to translate into increased drilling activity, that we expect to see positive continued momentum into Q3 and into Q4 for the remainder of the year. From a contracting perspective, typically, we wouldn't see longer-term contracts unless we were looking to spend capital. We're just talking to existing customers around our facilities that ultimately are giving us positive indications on increasing utilization in our gathering processing facilities, specifically the south. Also around our Simonette gas plant as well in the north. Wapiti and Pipestone are contracted primarily to existing producers that similarly are drilling actively, and we're starting to see some positive increase in volumes there.
As it pertains to KAPS, I think we've talked about this probably on the previous conference call, is that, as we get into the construction in full force on that facility or that opportunity, and ultimately gives line of sight to being able to be complete in Q1 2023, which is certainly still our expectation. We expect that we're going to be able to-
Increase the contracting. At this point, customers are waiting to see how we're progressing on construction. The one thing I would note is our existing producers were certainly very encouraged with respect to their ability to meet or exceed their contracted volumes on KAPS. Some of those customers have step-up rates, of which we're obviously talking to them about the potential for those step-up rates. Similarly, like any option, they're being patient with respect to when they might want to exercise those step-up rates.
Hey, Rob, it's Dean. Maybe I can just add a few other comments. Quite frankly, six months into the year, we were sort of surprised at maybe how fast activity rebounded. If you look at drilling activity, you're back to sort of five-year norms. Overall, obviously, balance sheets are improving very quickly. As you would know, a lot of the producers have hedged volumes. Those hedged volumes, especially in the first quarter and second quarter, were hedged at low values because they would have put those positions in in 2020. As every quarter rolls off, so you get into Q3 and Q4 and into 2022, those hedge floors are at much higher levels. Again, I think their ability in actually capturing the economics of the pricing environment that we're seeing today, that's going to be more fully realized as we go forward.
Again, generally, the feedback we receive from our customers is that they are going to ramp up activity in a bigger way as we look forward towards the end of the year and into 2022. Maybe other comments would be is that I think in some of the M&A activity that we've seen over the last six to nine months is probably helping us because there's some players that weren't very active in some of the areas that we have facilities. Again, under new ownership, better capitalized companies, they're demonstrating that they're going to be more active. Again, overall, I think that's a good tailwind for us.
All right. Excellent. I appreciate the color. I'll hop back in the queue.
Thanks, Rob.
Thank you. Your next question comes from Linda Ezergailis with TD Securities. Please go ahead.
Thank you. First of all, I wanted to congratulate Brad Lock on a successful career and wish him all the best.
Thank you, Linda.
Thank you. I'm wondering, as it relates to your Gathering and Processing optimization strategy, you've realized benefits already in the first half of this year. I'm wondering how that might ramp up for the balance of the year in Q3 and Q4, and what factors might determine where in the CAD 20 million-CAD 30 million range that Keyera achieves in 2021 and might it ramp up further potentially if you only achieve at the lower end this year, might you achieve even more in 2022?
Hi, Linda. It's Eileen. I can start with that. I think we have certainly started to see the benefit in the first half of the year. It does take time for some of those operating costs as we continue to shut down plants to see those come out of the system. We expect that to continue, and we have a final plant yet to close in 2022. There will, of course, be some offsets. These are costs that are well within our control, that we have reduced. There will be some offsets such as power, I would say, that could offset some of that, but we are well within that range.
This is Brad. The only other thing I would say is I think the optimism we're seeing out there in volumes is certainly a positive tailwind as well. Our strategy was to get our cost structure in place, but to still provide opportunity for growth volumes to land within our network. I think we're starting to see some of that occur, and we're optimistic that that's going to continue to occur in the back half of this year into 2022 that will allow us to hit the kind of objectives that we've laid out.
Thank you. On a separate note, I'm just wondering as it relates to working towards a lower carbon future. We're starting to see some partnerships announced and also some positioning in terms of different parts of the value chain as it relates to carbon capture, hydrogen, et cetera. I'm wondering how you think about the levers to accelerate that transition as it relates to potential acquisitions or divestitures or partnerships. How do you think about your in-house competencies versus how you might look for other ways to position yourself for those opportunities?
Hi, Linda. It's Dean. Very good question. Obviously, we think that we're very well-positioned for a lower carbon future. It's something that we have a dedicated team, our new ventures team that's headed up by Bradley Slessor. Really, they're looking at new opportunities to help us transition in the future. As you know, we have a lot of partnerships, so we're not shy about leveraging our strengths and combining that with strengths of other partners to create a better result. When we think about this from a macro perspective, I think that we need to be thinking more about how do we make our basin more efficient to create great solutions like this and working together to make that happen.
Because I think if we all try to solve, again, carbon transition or lower carbon future by ourselves, it won't be as efficient as if we try to do it together. We've talked a bit before about some of the assets that we have to leverage. We have acid gas injection at six facilities already. Can we leverage that to actually capture and store more carbon using existing facilities and things like that? We're definitely looking at. We have our 1,300 acres of land in Industrial Heartland and a pipeline that's rated for hydrogen that basically extends through the Industrial Heartland as well. We do have some assets and expertise to bring to the table to help enable, again, hydrogen development.
Again, we are certainly open to working with others that are more experienced in that space to, again, leverage combined expertises to make it successful. At the end of the day, with all these ideas, we certainly know the world's moving in this direction. It also has to be profitable for our shareholders. Again, we're also working with the end consumers in the future to try to underpin that service. We're trying to work with different partners at the same time, I guess, to try to advance these ideas.
Thank you. I'll turn back in the queue .
Thanks, Linda.
Thank you. Your next question comes from Ben Pham with BMO. Please go ahead.
Hi. Thank you, [Mario]. I want to continue on energy transition. You talk about acid gas injection, you talk about hydrogen, and also some of the renewable power purchases. What about the CCS opportunity in Alberta? Is there any positioning from your perspective that you could benefit directly or indirectly from that?
Could benefit from, what was that again, Ben?
It's the carbon capture storage opportunity in Alberta.
Yeah. I'll start. I think, certainly, as we look at decarbonization in the Edmonton Fort Saskatchewan hub and some of the existing infrastructure that's there and new infrastructure that's being proposed, I think there's lots of opportunity for us to participate, both on an equity perspective, but also just from a service perspective, to help decarbonize our existing facilities and support other producers in the area with their decarbonizing efforts as well. I think as we start thinking about our new ventures team that Jamie referred to earlier, it's certainly one of their key objective is to look at all the various opportunities that exist out there to transition as an organization and to support industry transition and try to find the places where we can play.
Okay. Maybe on the growth initiatives, last time we've seen frac capacity reach these levels, you were commenting on potential expansions and on the fractionation side. Is that something that's heating up a bit more in your conversations?
It's obviously something, Ben, that we're looking at. There's lots of things since our last conference call that go into the dynamics of the demand for frac and ultimately where existing barrels will be placed from frac and ultimately future barrels as well. Those are all the dynamics that we looked at. At the end of the day, KAPS is an extremely strategic project for us, and it's going to supply barrels into the Fort Saskatchewan area and into our facilities that we believe will enable us to be able to look at downstream capital investment opportunities that will be very creative and beneficial to our shareholders, whether that's on the condensate side or the C3+ side of KAPS.
Yeah, it's definitely something that we're looking at and believe that once we get line of sight as to those barrels showing up, we'll be able to take advantage of that.
Okay. My last question, do you think you have enough visibility of line of sight of moving towards guidance on EBITDA on a more of a broader level with your asset base? You get the marketing guidance, which is probably the hardest one to figure out. You have gas processing, stabilizing, cost optimization, related infrastructure take-or-pay. Is that ultimately the long-term plan for you to consider that in the future?
Hi, Ben. It is something that we are considering. You're absolutely right, Marketing is the biggest piece. Sometimes the timing of that, we don't know that until our contract season is underway or completed. That's why we provide that in Q1. That is something that we are considering and looking at, especially as we have better line of sight into the Gathering and Processing business, and it continues to stabilize.
Okay, great. Thank you. Also congratulations in retirement, Brad.
Thank you, Ben.
Thank you. Your next question comes from Robert Catellier with CIBC. Please go ahead.
Hey. I just wondered if you had some initial thoughts on the Blueberry River First Nations case and what that might mean for future development.
Yeah. Rob, good morning. Obviously, we're very aware of the decision, and we've reviewed it. We've talked to our customers about it, and consistent with them and other stakeholders, we're waiting the outcome of the negotiations between the Blueberry River First Nations and the B.C. government to assess potential impacts. Really overall, to us, it underscores the importance of having strong relationships with all of our stakeholders, and obviously that includes the indigenous community. It's something we're very committed to.
It looks like Brookfield's closing in on buying Inter Pipeline here. Do you see any opportunities for Keyera falling out of that, perhaps opportunities to work more closely with Brookfield?
Well, like to my earlier comments, Rob, obviously we're always opportunity driven. We work well with others and that would apply to everyone including Brookfield. If there's opportunities to work with them, assuming that they take up the required amount of shares, we'll certainly pursue that opportunity.
Okay, last question from me. You had some comments on the MD&A about some condensate contract renewals. I wondered if you could talk about the relative commercial terms there. I understand there's some volume increases and some extensions, just the relative economics. Any comment on what the expiration schedule looks like from here?
Yeah, Robert. All I can share is that those contracts would've been negotiated on similar terms and traditional length of contracts than we would've seen in the past.
Okay. With that, I'll just congratulate Brad on his retirement.
Thank you, Robert.
Thank you. Your next question comes from Robert Kwan with RBC. Please go ahead.
Great, good morning. If I can come back to the questioning here, just around the targeting, the way you look at your asset mix and your contracting mix. I guess the first question here is, you've said in the past that you don't want to get any bigger in G&P and really trying to focus on more take-or-pay streams. Is that still the case, particularly given just the comments you've been making around producer activity in your drilling outlook?
I would characterize it, Robert, as we want to fully utilize our G&P assets to the best of our ability and to their capacity. We think that there's more growth there, and so we think that that's going to be a larger contributor in the future to our company. In terms of capital investment in the future, we see better opportunities on our Liquids Infrastructure side of our business, and historically, we've generated strong returns from it. Again, they're more basin-type assets where it doesn't matter where the natural gas is produced. The NGL stuff to find a way to the hub, and a lot of that hub is obviously in Fort Saskatchewan. It's not to say there's probably a lot of small enhancements and things like that that could generate strong returns.
Again, our focus is going to be about maximizing what we have.
Just as you talked about larger capital, presumably that also applies to acquisitions in the G&P side or lack thereof?
Generally. I would say our M&A strategy is that it has to be strategic. It's got to be accretive, so we're trying to always add value for our shareholders, so it's got to be accretive on a per share basis. We have to be consistent with our debt and metrics and credit rating targets. When we think about all those strategic fits, could there be G&P assets? It's possible. Right now, we see the best opportunities on the liquid side of our business.
Got it. As I think about contracting mix and on acquisitions, just coming back to the Brookfield discussion. Given what they said today about potentially splitting up some of those assets, would you be interested? How do you think about IPL's NGL assets given a very significant proportion of them have commodity exposure? How do you think about your own marketing exposure in the mix, and then potentially whether it's these or just other assets taking on even more commodity exposure?
Yeah, I guess I can't speak specifically to IPL, but generally, our goal is to add more contracted cash flow stream. I guess, when you look at projects like KAPS, that's exactly what it's going to deliver is just a very strong cash flow stream and a lot of the other assets that we look at as well. The one thing I would say, though, is in terms of our overall asset mix is that sometimes we have outsized years in our Marketing business. We're not going to turn it away. Obviously, that enhances our overall financial position and funds our other projects. We don't count on it, but it's possible that it happens. Sometimes from an optical perspective, it looks like we're too weighted to our Marketing business.
Again, overall, if you look at just the pure growth in our fee-for-service business, we want to continue to grow that part of it.
Perfect. If I can just finish with a micro question here on G&P looking into the third quarter. You highlighted a couple of headwinds, being the ethane curtailments at Rimbey, and I think it's about CAD 5 million somewhat similar impact on the Wapiti outage from a margin perspective. Are there other either offsetting factors to those amounts? I guess the other thing, just as I think about the Q2 performance, what was the benefit, if any, from some of the volumes you received, related to third-party plant outages in the quarter?
Yeah. I'm racking my brain, Robert, let me think. I'm not aware that we would've benefited at all in Q2 from any third-party outages. I guess there was one. Brad's reminding me there was one up in the north where we would've seen some minor volumes from a large facility outage. Other than that, there wasn't a lot of uptick on our business as a result of third parties. To answer your first question, though, is that, yeah, obviously the Dow outage is going to impact all of the industry. We also see some opportunities coming out of that as well from the perspective of a need to manage some liquid that otherwise might be displaced somewhere else.
It might show up in a different part of our business, but there is some opportunities because of our integrated business that we'll be able to realize as a result of that outage as it pertains to some of our assets around Fort Saskatchewan and our marketing business. Around G&P, I think we're just being repetitive with respect to the fact that we're continuing to see positive volume momentum that we'll see in Q3.
The only sort of headwinds that we see that we don't think are material, Robert, would be, obviously we've had some issues in terms of high ambient temperatures, and that affects the performance of our facilities. We saw that more so at the end of June and early July. I wouldn't say that that would be super significant. I think we're into August now, hopefully we don't see sort of 35+ degree days in the future, and that and just our downtime associated with the waste heat recovery bundle that we talked about.
Perfect. Okay. Thanks for the answers. That's all from me. Brad, congrats and all the best in retirement.
Thank you, Robert.
Thank you. There are no further questions at this time. Mr. Cuthbertson, you may proceed.
Thank you all once again for joining us today. Please feel free to reach out to the investor relations team if you have any additional questions. Thank you all, and have a great day.
Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.