Good day, everyone, and welcome to the EOG Resources' Yates Announcement Conference Call. This call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to the Chief Financial Officer of EOG Resources, Mr. Tim Dragars. Please go ahead, sir.
Good morning. Thanks for joining us. Early this morning, we issued a joint press release announcing the combination of EOG Resources and Yates Petroleum and other Yates companies. Slides containing additional details have been posted on both websites, yatespetroleum.com and the Investors section of eogresources.com. First, I will remind you that this conference call includes forward looking statements and Oil and Gas reserve estimates.
The risks associated with forward looking statements and the cautionary notes to investors regarding reserve estimates are in the press release and on page 2 of the slides. We incorporate those by reference for this call. Participating with me on the call this morning are Bill Thomas, Chairman and CEO Gary Thomas, President and Chief Operating Officer Billy Helms, EVP, Exploration and Production David Treiss, EVP, Exploration and Production Lance Terveen, VP, Marketing Operations and Cedric Berger, Senior VP, Investor and Public Relations. Under the terms of this private negotiated transaction, EOG will issue 26,060,000 shares of common stock valued at $2,300,000,000 based on Friday's closing stock price and paid $37,000,000 in cash subject to certain closing adjustments and lockup provisions. EOG will assume and repay at closing $245,000,000 of Yates debt offset by $131,000,000 in anticipated cash from Yates subject also to certain closing adjustments.
Yates has net production of 29,600 barrels of oil equivalent per day, 48% of which is crude oil. Net proved developed reserves are estimated to be 44,000,000 barrels of oil equivalent. Closing as anticipated to occur in early October. Now let me turn the call over to Bill Thomas, Chairman and CEO.
Thanks, Tim, and good morning, everyone. Let me start by expressing my sincere gratitude to the 8th's family and companies. We have a tremendous respect and admiration for what they've done to build their companies and for their many contributions to the industry since they began operations 93 years ago. It's an honor to combine our high quality assets to bring continued success for all of us. This transaction clearly illustrates Yates' confidence in their acreage and in EOG's technical and operational expertise to bring forth the most value from that acreage.
This combination substantially increases EOG's position in the Delaware Basin and establishes a large position and a new potential resource play on the Northwest Shelf in New Mexico. In addition, EOG's position in the Wyoming Powder River Basin will double in size. Yates demonstrated great foresight in assembling large acreage positions in these stacked pay multi zone plays and we are excited to join forces with them. We expect Yates and EOG's combined acreage in concert with EOG's technical edge and operational scale will be transformational to the development of these plays. For EOG to undertake an acquisition, it must meet a strict set of criteria.
The acreage must be high quality as good as or better than EOG's existing acreage. The acquisition must come at a fair price and it must be funded in a prudent manner allowing EOG to maintain a strong balance sheet. The Yates transaction checks all of these boxes. Most importantly, the H acreage substantially increases EOG's ability to increase returns and capital efficiency. This really isn't about getting bigger.
It's about getting better. Yates improves the quality and depth of our acreage position in some of the most important resource plays in the United States. It immediately competes for capital within the existing EOG portfolio and raises the overall quality
of the
portfolio. By enabling EOG to concentrate more of its capital in the most premium parts of oil resource plays, it will drive even higher growth and returns in the future. This combination is truly a rare gem that meets EOG's high rate of return hurdle. It's no secret anymore that the Delaware Basin is one of the best resource plays in the country. EOG's acreage position will increase by 78% through this transaction to a whopping 424,000 net acres.
EOG has drilled some of the most prolific wells in the basin and this expanded acreage position provides more inventory and the highest return parts of the play. EOG will be able to accelerate its growth in the basin and leverage technology and prior learnings over a bigger and better asset base. We plan to get right to work and commence drilling on this new acreage shortly after closing with additional rigs to follow next year. Yates also brings opportunities to boost our long term growth and returns through expanded exploration opportunities and 2 emerging resource plays. In the Northwest Shelf, the industry has been drilling productive wells in several shallow oil prong formations.
We are excited to leverage EOG's technical acumen with our low cost structure in these plays. Although the wells do not generally produce eye popping IP rates, the low cost offer the potential to generate rates of return that could be very competitive with our traditional Delaware Basin program. EOG also plans to begin development activities in 2017 in the new Powder River Basin acreage. The new acreage and the sweet spot of the play blocks up nicely with EOG's existing acreage, where we have an ongoing premium development program. We also see opportunities to generate high returns in several emerging plays in an expanded Powder River Basin exploration area.
Our newly combined 400,000 net acreage position offers significant exploration opportunities in areas with stacked pay columns 4000 feet to 5000 feet tall. In conclusion, the combination with Yates allows us to bring together our companies with superb core acreage and some of the best emerging plays in the U. S. As we move forward,
I
want to reemphasize EOG's commitment to building shareholder value through returns based decision making, financial discipline, exploration, technical leadership and low cost operations. EOG's goals are to continue to be the U. S. Leader in returns and in absolute oil growth and to be competitive with the low cost producers in the world oil market. This transaction is another significant step in accomplishing our goals.
Thanks for listening. Now we'll go to Q and A.
Thank you. The question and answer session will be conducted electronically. And we will take our first question from Evan Claywell of Morgan Stanley.
Hey, good morning. Good morning, everybody and congratulations on today's transaction.
Thanks, Evan.
I think my first question is, that was an important part of the last call, the earnings call, But how does the acquisition impact your 10% to 20% oil production CAGR guidance out to 2020? And any color on associated CapEx here for Yates and rig or well counts into 2016 or 2017?
Evan, the first thing is that the guidance we gave in our 2nd quarter call, which was 10% growth with a $50 flat oil price compounded annual growth rate from 2017 to 2020 and then a 20% compound annual growth rate with a $60 oil price did not include any of this Yates acreage position. It was clearly independent of that and was relied solely upon what EOG owned at that time. This transaction will certainly increase our growth potential. The acreage is very, very high quality as we said in the opening remarks. It fits and joins our position very strongly.
We can take extreme amounts of benefits from the combined infrastructure and just the operational synergies going on in the area. So this is a big addition for the company. It truly is the inventory that we said the 1700 premium inventory that we've given to the Yates acreage position is really just a first pass. And we believe that as time goes on, we'll convert more at the premium going forward. And it certainly is potential from a rate of return perspective and growth potential that will be right at the top of our list to begin drilling.
And on the I guess,
it was a follow-up on the CapEx, if you had any guidance there, but also a follow-up to, I think, it would relate to capital efficiencies. Any color on how you think about asset disposal or monetization targets now that you've materially added to your premium inventory, likely increased your outspend? Any color there would be helpful.
Yes. The CapEx impact of course for 2016 is fairly low. So we're going to keep our CapEx guidance that we have in place and we'll update that as we go forward maybe in the Q3 call. But as we go forward into 2017 forward, we will be adding capital to the Delaware Basin. And I'm going to ask Gary Thomas, if he can give a little bit of color on the rig count.
Yes. As with any strategic acquisition, we'll just get right to work on this so we can begin our development. But right now, we're just watching current oil prices and we'll increase activity with price improvement. We do plan to add 1 rig here in the Q4 and we'll add more in 2017 as we continue to work our budget for next year. But yes, with more capital being spent in the Delaware Basin.
Great. On the
sales or potential sales? Sure. Yes. The potential for asset sales, this gives the company a lot more potential. So as we have done, if some of the assets won't be in the Delaware Basin, but some of the other assets that come with this merger don't turn into premium drilling potential down the road, certainly they would be candidates for asset sales.
So they would go into mix with the existing EOG asset sales and it just really firms our position to continue to monetize properties as we go forward. Great.
I'll leave it there, guys. Thank you.
And we will move to Scott Hanold of RBC Capital Markets.
Thanks. Good morning and again my congrats to you all. If I could maybe dig in a little bit more on the rationale for the acquisition. Obviously, you guys had some pretty strong confidence in your ability to grow through 2020. When you step back and look at this transaction, it certainly is got some significant size to it.
But considering what you all had in your inventory previously, what was the key driver of looking at this? Was it an opportunity at this commodity within the commodity price cycle? Or was it the eventual maturation of the Eagle Ford and Bakken and this providing a little bit more growth beyond that?
Yes, Scott, it really all boils down to we just see a unique past. Most of them have been bolt on a little bit smaller, but this is a bolt on in a lot of sense of the word. It's just a really large bolt on, especially for the Delaware and the Powder River Basin. And it really boils down to this acreage quality is so high that we just see as a very unique responsibility. In the same light, we have continued confidence in our exploration efforts.
So we have a number of exploration ideas plays that we're testing currently and some we're just buying acreage on. So we've got a lot of confidence that we'll be able to add additional potential and we have really raised the bar in the company when we switched to the premium drilling only mode back at the beginning of the year. So we've got a lot of confidence that we can find rocks in place that will be accretive, it will be better than the existing inventory we might have now. So we've got a lot of potential to continue to grow the company and improve the inventory going forward.
Okay. And as a follow-up in the shelf, obviously, it seems to be an area that you highlighted a little bit in terms of building a position there that's fairly scalable. What does it take in your view for that to become more of a premium play and competitive with some of your other premium locations?
I'm going to ask David Trice to comment on the shelf.
Yes. It's one thing to be clear on is the 1700 premium locations that we announced, those are all in the basin. None of those are shelf locations. But on the shelf, the industry has been active up in that area for a number of years and using new technology, better completions and that sort of thing. So it
does lend itself to EOG's abilities
to go in there with our cost structure and our technology to be able to move locations into the premium status. And so that's what we're looking at there. Really, like I said, we haven't been active there, but just based on the industry activity we've seen, we do see the potential to add some value.
Okay. So if I could summarize it, it's something where obviously you guys haven't been quite active, but it seems like it's both the cost and the well productivity side that you'll work to continue to enhance returns. Is that correct?
Yes. That's right.
Okay. Thanks.
And we will take a question from Irene Haas of Wunderlich.
Yes. Following on the personally congratulations on this really nicely negotiated deal. On the North West Shelf continue the whole line of reasoning. I was curious as to the Wolfcamp formation. Is that prospective?
I mean from what we understand it's more of a base note type play. Then additionally, what is the prospective in terms of sort of north of the shelf area in Travis County and then North and Lee County? What kind of play? Are those acreage that can be converted into premium status as well?
Yes, Irene. Yes, I think all of that acreage is prospective longer term. We're going to need some time to kind of just work through it and see if it will over time fit into the premium status. Of course, we're that's what we're mainly focused on. As far as the Wolfcamp, yes, I mean, if you think in Wolfcamp shales and classics, of course, that is in a basingal setting.
But in this setting, these are platform carbonates and some of that has been productive over the years.
Great. Thank you. And we will move to Doug Leggate of Bank of America Merrill Lynch.
Thanks. Good morning and congratulations everybody. Bill, you already had a pretty strong and deepening inventory in premier locations. So I guess I'm trying to understand where does this fit in terms of changing what you would have been able to do anyway in terms of your growth rate? I guess what I'm thinking is living within cash flow has been your mantra.
So adding more inventory, how does that change the growth rate on what you could already do with your existing inventory?
Doug, what it does is there's 2 things. So the Delaware Basin, our current return to their and well productivity equal the best things that we have in the company, the Eagle Ford and the Bakken. And the thing that's unique about the Delaware is it's really in the very early innings of development. So we see tremendous improvement as we go forward. So at some point down the road as we continue to learn the returns on the Delaware will just continue to go up and up and up.
And this truly enhances, we feel like is truly going forward. So we'll be able to grow oil with less capital more efficiently than we currently do now. And so it's really just a very significant addition to allow EOG to continually improve capital efficiency going forward. So it's a that's directionally why we wanted to make this move. We thought it's a very unique opportunity to add very, very high quality acreage.
So wider set of options,
I guess, is the way I should think about it?
Yes, that's right.
Great. Thank you. My follow-up is really it's kind of related to Evan's question. 1,100,000 acres that you haven't really ascribed any description to, can you give us some idea as to what that is and whether I mean, if you put a very low acreage number on it, one could very quickly get to a value that means you got the rest of it for a fairly low cost. So I'm just trying to understand what is that?
And what any idea what kind of value you ascribe to that in the transaction? And I'll leave it there. Thanks.
Yes. David, Travis, would you address that?
Yes. So as far as the acreage, most of the additional acreage is really throughout the Rockies basins. Obviously, we highlighted the Delaware Basin and the Powder River Basin. Those are the 2 key positions there. In the Powder, we picked up and kind of the exploration core, Yates had about 200,000 net acres there.
But really across all Wyoming, including the Powder River and the Green River Basin, Yates has about 600,000 acres there. And across New Mexico, including the San Juan, that's about another 600,000 acres. And then the rest of it is in the Piazza Basin, Paradox and then some in the Williston. So it's really kind of across the Rockies Basin. Some of it may be adjacent to our current positions there.
But really again, the main value is in the Delaware and in the Powder. But we'll be working to see how well the rest of it fits with
our current position.
Great. Thanks again guys and congratulations.
And we will take a question from Charles Meade of Johnson Rice.
Good morning, Bill. I'll join the course and offer my congratulations to you and your team for bringing this one time opportunity into the tent. And in to help put the whole setting together, can you give us a narrative of how this deal originated and matured and how your views on the assets evolved during the process for you?
Yes, just to start off, Charles. I think we've had just tremendous respect for the Yates family and integrate working relationship with them in New Mexico for years years years. We have a lot of admiration for each other as operations and people and culture and certainly asset based culture, the acreage. So it's been developing over the years. And I'm going to ask Billy Hams.
He was very involved in the negotiation part of the deal. So I'm going to ask Billy to kind of share some color on that.
Yes. Thanks, Bill. Yes, Bill is right that through the years, we've just maintained a great relationship with the Yates employees and had really admired the company, the employees and the acreage position that they've been able to establish. And so in early earlier this year, we initiated contact with Yates and we're able to continue to work through several issues and ultimately agree to this combination of the 2 different entities to the EOG to join EOG to join forces with the company such as Yates and we are excited about the value that not only we see in the acreage, but also in the people and we're excited about the combination. So it really has been a long standing working relationship that led us to have this opportunity to start with and it was something that culminated over many months of negotiations to reach a mutually agreeable deal.
That's helpful color. Thank you, Billy. And Bill, if I could just go back, you touched briefly on this point. I want to drill down a bit on the location counts that you have, you've identified. If I just do a kind of simple math of dividing the 186,000 acres in the Delaware Basin by the 600 locations you premium locations you've identified in the Bone Springs, it works out to about one location for every 300 acres.
And so I'm wondering if you could maybe give a little bit more insight or granularity on how you came up with that location count? Is a lot of the acreage not suitable to long laterals at this point? Or are there some parts of the Delaware Basin position that you are excluding from that or are excluded from that premium location count right now?
Charles, the 1700 are premium only. So just like in each one of our acreage position, whether it's in Eagle Ford or whether it's in our existing Delaware position, we have a lot of additional locations. So the 1700 is really just it's a very first pass, I would say, a conservative location count of what we would consider premium only. So there is a quite a few additional location potential as we work the geology in more detail, get more data on the targeting, the different targeting and different pay zones in each one of these sections as we work on spacing, etcetera, and as we work on well costs going forward, we believe that there will be a lot more premium location potential come forth from both our acreage position and the Yates acreage position. So this is really a tremendous acreage position that will be highly beneficial to the company for many, many, many years.
Thank you, Bill. That's helpful.
And moving on, we will take a question from Subash Chandra of Guggenheim.
Yes. Hi, good morning. I was curious where the Leonard Shale potential was, the 67,000?
Yes, Shubhrant. The Littard is equivalent to the Avalon. It's kind of the upper part of the Bone Spring section. So, it's what many in the industry called Avalon and it's a very significant shale play for EOG over the years. It's historically been our oldest play in the Golar Basin, but it's a very strong producer.
Do you think of that as being a sort of a lead county potential or do you see it throughout your acreage?
Will let David Trice comment on that.
Yes. I think as far as the Leonard, Lee County is the main area, Southern Lee that's where we've been active mostly in the Leonard. It is perspective as you move west into Eddy, it becomes a little more gassy in that direction. But really throughout the area, throughout the Southern Lee area and Southern Eddy County, it is prospective. Okay.
Thanks. And my follow-up is PRB. I seem to recall and this might be stale, but
there were some glitches in permitting and activity in how anyone can be an operator of record out there and sort of sorting that out. Could you just perhaps update me on what's happening
in PRB and if those limitations do exist anymore?
Is an
area where you have is an area where you have to do your homework and have to do your homework upfront by sometimes several years. So we've been active in that basin for many, many years and we've got a very, very experienced staff there, land people, operational people. And so you have to start the permitting process, the surface access agreements, etcetera, well in advance of the drilling. And so we're experienced at that and we don't see that as a significant hindrance to us fully developing the property. So we've taken all that in consideration.
Great. Thank you.
And we will move to Brian Singer of Goldman Sachs.
Thank you. Good morning.
Good morning, Brian.
I wanted to follow-up on the Leonard question as it seems that the premium locations on a per acre basis is actually more attractive for the ACE acreage than your legacy acreage. Can you talk about what's driving that? And when you look at the economics, obviously, you have a threshold to call it a premium location, but are the economics and the oiliness for that matter more attractive, less attractive or the same as your legacy Leonard Acreage?
David Tross?
Yes. I think on the Leonard, I mean, we've always been very high on the Leonard for the last several years. It's a very economic play for us. It tends to be a low cost play for us. We haven't been as active lately in the Leonard.
And really the main reason why we haven't done that is we've been focused on the Wolfcamp deeper objectives. So what that's allowed us to do is to collect a lot of data on the shallow objectives such as the 2nd Bone Spring and the Leonard. And then so in the future when we get back to drilling those formations on a more of a routine basis, we'll have a lot more data on them to be able to target better and get our completions better and such. So we're still very, very high on the Leonard. And really, I think the acreage fits well together.
So you can't really say that the ACE acreage or EOG acreage is better. It's they're both kind of continuous. So I think going forward, we're going to, like I said, continue to collect the data and add premium counts.
Great. Thanks. And then as we think about the synergies and scale of the transaction, wondering if you could provide more specifics on a couple of items. First, the impact that this could have on drilling longer lateral wells on your legacy acreage and if you have any numbers for how many additional locations either already classified as premium or not where you could as a result of having this acreage drill longer laterals? And then second, what are the specifics that we should look for as indicative or as an indication that you're applying your technology on the Yates well?
Should we expect improvement in well performance versus Yates' historical drilling record?
Brian, I think you hit on one of the important points is that much of our acreage is very it adjoins each other, it's bolt on acreage. And so increasing the lateral length has been a recent, but a very big driver in converting wells to premium category. And so we've considered that. So the 1700 has a very significant amount of longer laterals in that. But again, it's the first pass and I think we'll make improvements on that going forward, both in the per well productivity and in the numbers of wells too.
And the second part of your question, again?
I guess, what should we look for specifically on how you apply your technology? Should we expect well performance versus Yates' historical well performance to improve and what specifically is driving that?
Yes, performance will definitely improve. As I said earlier, we think one of the great things about this acreage position is that we're really in the second and third innings. So cost reduction is an ongoing thing and that will continue to drive returns improvement. You'll see the typical curves that we have or decreasing well cost per year
will just continue to
go down and we're really in the early stages in the Delaware on that targeting each one of these zones whether it be the Wolfcamp, the Bone Springs, the Leonard, etcetera, has multiple pay targets and different kinds of quality of pay. So as we get more information, as David described earlier, we'll be able to improve the targeting. And then the frac technology, we believe that the EOG brings a quite advanced frac technology to apply to this acreage. So that will be a big driver in well performance going forward. So again, we see just a lot of upside at current costs and current operations and we see a lot of upside as we continue to learn, improve in all these different areas.
Thanks.
And we will take a question from Paul Sankey of Wolfe Research.
Hi, everyone. I was wondering in terms of closing the deal, are there any complexities or other concerns? And are there any existing contractual commitments or other issues as regards to what you're taking over? Thanks.
Yes. Thanks, Paul. I'll let Billy Helms address that.
Yes, Paul. We anticipate closing in early October, really just waiting on some regulatory approvals that we have to get, the HSR approval that's going to be filed. And outside of that, there's really no other hurdles that we have to overcome. There's really no other commitments or anything like that to worry about.
Understood. So it's fairly straightforward. Could you just comment further on the relatively high resource that you're talking about here relative to the lower production number? Is that a function of underinvestment do you think in these acres? I assume it is.
Thank you.
Nilly? Yes. I think that as Bill alluded earlier, that's really the attractiveness of our of this opportunity is they have a symbol of just a premier acreage position across many basins that fit real well with our exploration focus of the company. And we really didn't buy it for the existing production. Certainly, it has a good deal of value.
But really what attracted us to this opportunity was their acreage position that they've been able to accumulate and maintain for so long and the opportunity we see on that.
Great. And then just a final for me is that there's obviously I assume a relatively low cash flow associated with the relatively low production. Are you guys going to remain committed to the idea of basically having CapEx within cash flow or are you going to start out spending in order to develop these acres? And I'll leave it there. Thank you.
Paul, we're going to continue to operate within cash flow. So when we run the metrics on the deal, it's accretive 2017 forward in cash flow. So it's a very positive, very accretive and obviously in production. So it really helps the company produce more, find more, grow more within cash flow going forward. Thanks.
And we will take a question from Marshall Carver of Heikkinen Energy Advisors.
Yes. A question on is there any need for any meaningful infrastructure spending in the next few years? Or can you really add a bunch of rigs if you chose to as commodity prices allow? Or do you need to put an infrastructure in first before you can really accelerate?
I'm going to ask Gary Thomas to comment on that. Mark, there is sufficient infrastructure in place here in the Delaware Basin and PBR or PRB there, especially with all the additional midstream that's being constructed currently. And these link up with our existing properties very well. So yes, we've been positioning so that we can go ahead and put wells to sales as we develop.
Thank you. And then one follow-up. I see most of the acreage is held by production, but not totally. Will you need to put rigs to hold acreage by production or will the initial drilling be really development drilling right off the bat?
I think Marshall, predominantly it will be development drilling, but I think the remainder of the acreage that needs to be drilled to hold will just kind of fit normally into the development process. Otherwise, we don't have a lot of immediate commitments like we have to go out there and drill something we don't want to drill. We've got time to earn all the acreage and hold it by production over time just through normal development process.
Okay. Thank you. That's helpful and congratulations on the announcement.
Thank you.
And we will move to Kyle Bickel with Stifel.
Hey, good morning, guys. This is Kyle on filling in for Mike Scialla. I guess my first question is with the increased allocation of CapEx toward the Delaware Basin, will this have any effect on further EOR projects or Austin Chalk test?
Kyle, no. At this moment, we don't have any EOR plans for either the Delaware or the Powder River. It doesn't mean that sometime down the road we may come up with some ideas that we want to test, but it certainly doesn't affect anything at the moment. And then the second part, oh, Austin Chalk, the Austin Chalk, no, that's a South Texas only play. So it doesn't come into bearing on this acquisition or this merger.
Okay. So in terms of the 2017 plans, we won't see any change to what you might be doing there in terms of shifting CapEx towards the Permian and the Delaware?
Oh, I see. Yes, that's a good question. No, I don't think it's going to change our EOR or Austin Chalk emphasis. Those are something that don't have a lot of CapEx at the moment. But we'll make those decisions as we get a little bit more firm outlook on 2017 plan.
And we don't think that those will this merger will deter from that.
Okay. And then I guess on a go forward basis, can we expect any changes to your hedging program, whether or not it's hedging this acquired production or kind of what you're looking at on an overall basis going forward?
No. This won't have any effect upon our hedging.
Okay. That's all for me.
And we will move to John Herrlin of Societe Generale.
Yes. Hi. Just one quick one for me. Everything's been asked. Is there any sort of a lockup for Yates with the shares?
Billy Helms?
Yes. It's a typical graduated lockup provision where I think in the 1st 60 days there is no right to exercise shares. After 60 days, you can exercise up to 50% and following 120 days, you can they can exercise up to all the shares. So it's a typical graduated program that is in this transaction. Thanks.
And we will take a question from Pierce Hammond of Simmons Piper Jaffray.
Congratulations on the transaction. Just two quick ones from me. For the Delaware Basin acreage that you're acquiring, just curious what the average working interest and NRI is on it? And then on the royalty, is the seller keeping any sort of override here? Billy, you want to address that?
Yes. So for the Delaware Basin, we have an average of about 66 percent working interest in the properties that we're focused on. And in the Powder River Basin, it's about 60%. And yes, there is no ongoing override associated with all the properties.
Should we assume a roughly 20% royalty just on average?
It's a typical royalty for all the different areas, whether it's state or federal leases. So it's typical with anything we would have in the basin as well.
All right. Thank you, Billy.
And with no further questions in the queue, I would like to turn the call back over to Mr. Thomas.
Well, thank you very much for your questions and certainly thank you very much for your support. We believe this merger is a very historic moment in the company. It's one of those times where something has happened very significant for the future of the company. So this is a certainly a very positive for EOG and for Yates and we're very excited about the future and the benefits that this transaction holds for the company. So thank you for listening and certainly thank you for your support.