Good morning, everyone, and welcome to Parex Resources Fourth
Quarter
and
Year
End 2021
Conference
Call
and
Webcast.
[Operator Instructions]
I would
now
like
to
turn
the
call
over
to
Mike
Kruchten,
Senior
Vice
President
of
Capital
Markets
and
Corporate
Planning
at
Parex.
Please
go
ahead,
Mike.
M
Michael Kruchten
Thank
you,
operator,
and
good
morning,
everyone.
On
call
with
me
today
are
Imad
Mohsen,
Parex's
President
and
CEO;
Ken
Pinsky,
Chief
Financial
Officer;
Eric
Furlan,
Chief
Operating
Officer;
and
Ryan
Fowler,
Senior
Vice
President
of
Exploration.
I
would
like
to
remind
you
that
this
conference
call
includes
forward-looking
statements
and
non-GAAP
and
other
financial
measures
with
the
associated
risks
outlined
in
our
news
release
and
MD&A
which
can
be
found
on our
website
or
at
cedar.com.
All
amounts
disclosed
today
are
in
US
dollars,
unless
otherwise
stated.
Please
go
ahead,
Imad.
I
Imad Mohsen
Thanks,
Mike
and
good
morning,
everyone.
As we
reflect
on
2021,
we
are
extremely
proud
of
our
records
results
and
our
team
that's
consistently
executing
in
both
Calgary
and
in
Colombia.
Looking
back,
we
started
the
year
at approximately
45,000 barrels
a
day,
increase
our
capital
budget
significantly
and
exited
that
same
year
at
roughly
51,500
barrels a
day
production
rate.
In tandem with
increasing
our
production,
we
also
saw
an
increasingly
constructive
global
commodity
price
environment
that
ultimately
contributed
to
Parex's
generating
annual
funds
flow
from
operations
of
$578
million,
which
was
a
record and
the
largest
in
the
company's
history. More
to
come
with
that.
During
the
year,
I'm
pleased
to
say
that
we
materially
improved
the
depth
and
the
quality
of
our
land
in
management.
We
acquired
18
new
blocks
in
2021
Columbia
Bid
Round,
as
well
as
expanded
our
strategic
partnership
with
Ecopetrol
in
the
Northern
Llanos,
which
combined
represent
the
nearly
four
times
increase
in
our
total
acreage
in
Colombia.
Parex
is
now
the
largest
independent
acreage
holder
in
Colombia,
which
is
a
development
of
the
cornerstone
to
our
long
term
strategy
and
vital
to
our
commitment
to
grow
our
Colombia
on
the
oil
and
gas
production.
Other
noteworthy
achievements
for
the
year
include
our
corporate
ESG
initiatives
that
Mike
will
briefly
talk
about,
as
well
as
our
return
of
capital
track
records
that can
Ken
will
touch
on.
Therefore,
I
make
some
final
remarks
on
the –
our
outlook
– before
I
make
some
final
remarks
on
our
outlook,
as
well
as
Parex's
positioning
for 2021
and
the
long
term.
Please go ahead, Mike.
M
Michael Kruchten
Thanks,
Imad.
In
2021,
we
advanced
our
climate-related
disclosures,
such
as
our
inaugural
Task
Force
for
Climate
Related
Financial
Disclosure
Report,
achieved
above
industry
average
ESG ratings
for
major
providers
such
as
Sustainalytics,
DVP,
and
Bloomberg.
Critically,
during
the
year,
we
publicly
committed
to
a
50%
reduction
in
our
greenhouse
gas
emissions
by
2030,
and
Parex
is
actively
progressing
on
its
ambition
to
become
one
of the
least
greenhouse
gas
emissions
intensive
oil
and
gas
exploration
companies. In
2021, we
made
progress
towards
this
commitment,
reducing
our
greenhouse
gas
intensity
from
our
operated
assets
by
approximately
14%
and
a
total
reduction
of
approximately
35%
from
our
2019
baseline.
Moving
forward,
we
expect
to
see
more
reductions
from
advancing
the
implementation
of
geothermal
energy,
all
lines
to reduce
transportation
needs,
gas
plants
to
reduce
flaring,
and
energy
efficiency
initiatives.
Taking
a
step
back
and really
looking
at
sustainability
as
core,
with
the
current
volatility
that
we
are
seeing
in
energy
markets
today
and
considering
the
follow
on
effects
of
that,
Parex
is
in a
position
where
we
can
do
our
part
to
provide
secure,
reliable and
environmentally
friendly
energy.
Plus,
we
can
do
that
while
continuing
to
improve
the
local
communities
where
we
operate.
On
that
note,
we
look
forward
to
2022
and
updating
our stakeholders
throughout
the
year
as
we
look
to
continually
advancing
our
ESG
story
and
meeting
our
overall
sustainability
objectives.
I
will
turn
it over
to
Ken
to
briefly
describe
our
recent
results
and
return
of
capital
track
record.
K
Kenneth George Pinsky
Thank
you,
Mike.
We
closed
2021
with
a
strong
fourth
quarter
where
we
generated
record
funds
flow
from operations
of
$168
million:
that
was
up
200%
quarter-over-quarter.
I'll
add
that
Brent
averaged
in
Q4 2021
approximately
$8
a
barrel.
And
as
Imad
will
tell
you,
we
remain
unhedged
to
global
oil
prices.
Quarterly
net
income
was
$96
million,
while
Q4
2021
production
averaged
nearly
50,000
barrels
a
day,
and
that
was
up
7%
quarter-over-quarter.
Over
the
full
year
2021,
we
generated
over
$300
million
of
free
funds
flow and
continued
to
add
to our
return
of
capital
track
record.
We
paid
a
special
dividend
as
well
as
initiated
a
quarterly
regular
dividend
last
year,
which
was
just
increased
by
our
board
to
12%
in February.
During
the
year,
we
also
repurchased
10%
of
our
company's
public
float,
which
marked
the
third
year
in
a
row
where
we
have
bought
back
the
maximum
allowable
shares
pursuant
to
our
normal
course
issuer
bid
programs.
At
the
end
of
February
2022,
Parex
has
now
returned
over
CAD 1
billion
to
shareholders
through
share
repurchases.
Since
2017,
we
have
reduced
the
fully
diluted
share
count
by
over
25%,
repurchasing
over
47
million
shares
at
an
average
price
of
less
than
CAD 20
per
share,
compared
to
our
close
yesterday
of
CAD 28.89
per
share,
for
reference.
Stating
it
in
another
way,
when
we
started
buying
back
shares
in
2017,
we
had
in
excess
of
164
million
fully
diluted
shares
outstanding,
which,
by
year-end
2022,
we
expect
to
have
approximately
110
million
fully
diluted
shares
outstanding.
To
add,
over
the
same
period,
our
oil
and
natural
gas
production
has
grown
by
approximately
32%.
We
continue
to
have
an
unmatched
balance
sheet,
ending
the
year
with
no
debt,
and
working
capital
of $326
million,
plus
an
undrawn
$200
million
credit
facility.
As
we
look
to
2022, and
even
while
spending
on
a
comprehensive
capital
investment
program,
we
have
expanded
our
return
to
capital
plan,
raising
the
base
dividend
this
year
already,
as
I
have
mentioned,
and
we
are
on
track
to
repurchase
10%
of
our
stock
for
the
fourth
year
in
a
row.
I'm
extremely
proud
of
our
accomplishments
for
2021,
and
I
look
forward
to
2022 and
beyond.
Now,
I'd
like
to
turn
things
back
to
Imad
for
some
final
remarks.
I
Imad Mohsen
Thanks,
Ken.
This
year –
the
year
2021
was
a
record
year
for
us,
and
I'm
excited
for
what
is to
come
for
Parex
in
2022
and
the
long
term.
For
2022,
there
is
no
change
to
our
capital
expenditure
reduction
guidance
that
we
released this
past
November.
We
continue
to
invest
across our development,
exploitation
and
exploration
programs
with
our
current
production
guidelines
expected
to
generate
year-over-year
absolute
production
growth
of
13%
or
22%
on
the a
per
share
basis.
Along
with
our
ambitious
capital
expenditure
program,
we
still
expect
to
repurchase
10%
of
our
stock
this
year
via
NCIB, as Ken
mentioned,
while
also
having base dividend
upside
growth
potential.
Building
our
track
record
of
returning
meaningful
capital
to
shareholders,
moving
forward,
we
want
to
be
clear
that
we
are
targeting
to
return
at
least
a
third
of
free
flow
from
operations
to
shareholders
through
share
repurchases
and
dividends.
With
this
philosophy,
at
current
strip
prices,
Parex
expects
to
return
approximately
40%
of
2022
annual
FFO
to
shareholders.
The
remaining
free
flow
from
operations
will
be
invested
to
grow
the
company
and
replenish
development
inventory
to
support
future
return
of
capital
activities.
There's
an
important
point
I'd
like
to
comment
on
right
now.
Over
the
last
year,
we
have
positioned
Parex
to
capitalize
on
the
current
market
cycle.
Parex
is
100%
unhedged
and
has
a
clear
first mover
advantage
in
today's
oil
and
gas
market
as
we
move
into
2022.
Firstly,
we
are
entering
the
year
having
acquired
the
most
extensive
land
base
in
the
company's
history –
for
steel,
I
would
add.
Second,
we
have
secured
[indiscernible]
(09:40)
under
long-term
contracts
to
have
equipment
in
place
to
cater
for
our
capital
investment
programs
for
years
to
come.
It
does
give
you
some
feeling
of
warm
heart
to
see
with the –
the
last
heavy
rigs
in
Colombia
are
under
contract
with
Parex.
Third,
we
have
increased
critical
organizational
capabilities,
hiring
significant
staff
both
in
Calgary
and
Bogota.
I
would
recall
around
30%
in
Calgary
in
2021
increase
to
help us
ramp
up
our
programs.
And
lastly,
we
have
placed
orders
for
long
lead
items
for
the
foreseeable
future:
that
includes
casings,
well
heads,
steel
compressors,
turbines,
you
name
it,
in
order
to
provide
insulation
from
supply
chain
shortages
and
disruptions
and
the
relative
hedge
against
cost
inflation
going
forward.
Combined, these
actions
put
us
in
an
extremely
competitive
position
organically
to
harvest
upside
opportunities
as
you
are
seeing,
which
is
Brent
pricing
that
could
go
well
above
$100
per
barrel,
which
I
guess
is
$110
today.
So
for
me,
not
waiting
for
steel
when
you're
drilling
a
well
that
pays
back
in
a
month
or
two
gives
you
use
optionality.
With
that,
I
would
like
to
thank
everyone
for
their
continued
support
for
Parex,
and
our
employees
for
their
continuous
hard
work
as
we
execute
our
strategy.
This
concludes
our
formal
remarks
and
I
would now
like
to
turn
the
call
back
to
the
operator
to
start
the
Q&A
session
for
the
investment
community.
Thank
you.
Operator
Thank
you.
[Operator Instructions]
We
have
a
question
from
Luke
Davis
from
RBC.
Please
go
ahead.
L
Luke Davis
Analyst, RBC Dominion Securities, Inc.
Hey,
good
morning,
guys.
Imad,
you
mentioned
preorders
for
long
lead
items.
I'm
just
curious
if you
can
provide
a
little
bit
of
commentary
around
what
you're
seeing
or
forecasting
for
kind
of
base
inflation
through
the
balance
of
the
year?
And
then
wondering
how
long
in
advance
you
can
order
for
you?
Just
talking
2022,
does
that
go
multi-years? Just
a
little
bit
more
detail
there
would be
helpful.
Thanks.
I
Imad Mohsen
I
would
say,
something
like
eight
months
ago,
I
agreed
with
the
management
team
that
there
is
a
– first
for
COVID,
but
also
the
way
the
cycle
was
working,
there's
a
chance
for
supply
disruption.
So
what
we
started
to
do
since
that
moment
is
define
our
needs
with
three
years
in
mind,
and
wherever
we
could,
to
place
orders
to
fix
the
terms.
That
doesn't mean
you
don't
get
any
inflation.
So
let's
say,
you
buy
steel
pipes,
you
wouldn't
be
having
some
indexing
on
steel
prices.
But
that's
very
different
than
having
to
go
in
a
bidding
war
against
that
same
price.
Sitting
in
somebody's
yard,
we
can
get
3
or
4 times
that
inflation.
We're
not
seeing
much
inflation
right
now
in
Colombia
just
because
of
the
local
conditions
on
rigs
and
other
items.
But
I
can
see
some
very
–
I
can
see
some
signs
for
inflation
going
up,
but
within
numbers
that
doesn't
affect
our
margins
any
significantly.
Do
you want
to add
to
that,
anything,
Eric?
E
Eric Furlan
Chief Operating Officer, Parex Resources, Inc.
That
summarizes
it
quite
well.
I
think
the
big
things
we've
done
to
secure
the
rigs,
especially
the
big
rigs
and
go
forward.
Those
are
our
long-term
contracts.
And
as
Imad
has
alluded
to,
we're
not
seeing
a
big
inflation
component.
We
secured
the
critical
equipment
we
need
and
the
pipe
for
the
next
couple
of
years.
So
I
think
we're
sitting
in
pretty
good
shape.
I
Imad Mohsen
And
that
also
expands
on
surface
facility
equipments
where
people
were
brave
enough
to
say,
let's
order
power
generation
kits
or
turbines
or
compressors
or
even
gas
treatment
facilities
before
the
wells
were
put
on
the
ground.
I
can
tell
you
these
things
coming
– to
deliver
in
the
coming
few
months
and
years
will
be
very
handy
and
trying
to
expand
compared
to
our
competitors.
L
Luke Davis
Analyst, RBC Dominion Securities, Inc.
Got
it.
That's
really
helpful.
And
if
I
could
just
ask
a
follow
up
to
that.
Curious
to
just
get
your
general
thoughts
on
the
upcoming
elections
here,
something
that
comes
up
a
fair
bit.
So
just
if
you
go
through
kind of
a
couple
potential
scenarios
and
kind
of
where
you
guys
are
sitting
right
now,
that'll
be
helpful.
M
Michael Kruchten
Sure.
This
is
Mike
Kruchten.
Regarding
the
election, that's
going
to
play
out
over
the
next
couple
months
up
into
June.
Really,
we're
not
seeing
anything
too
different
than
what
we
saw
the
past
in
2018.
There'll
be
some
consolidation
of
all
the
candidates
that
are
running.
And
we
really
don't
think
we're
well
positioned
to
work
with
Colombia
and
continue
investing
heavily
in
Colombia
no
matter
what
the
outcome
is.
We
have
a
very
strong
land
position:
gives
us
lots
of
exploration
running
room
and
production
running
room
over
the
next
five
years.
And
yeah,
we're
–
we
think
it
won't
really
change
our
overall
strategy.
L
Luke Davis
Analyst, RBC Dominion Securities, Inc.
That's
helpful.
Thanks
very
much.
Operator
Thank
you.
[Operator Instructions]
There
are
no
further
questions
on
the
phone
for
now.
I
would
like
to
turn
the
meeting
back
over
to
Mike.
M
Michael Kruchten
Thanks
very
much
for
all
the
participants
joining
our
call
today.
If
you have
further
questions,
feel
free
to
contact
me
at
Parex.
Have
a
good
day.
Operator
Thank
you.
The
conference
has
now
ended.
Please
disconnect
your
lines
at
this
time
and
we
thank
you
for
your participation.
Good morning, everyone, and welcome to Parex Resources Fourth Quarter and Year End 2021 Conference Call and Webcast. [Operator Instructions]
I would now like to turn the call over to Mike Kruchten, Senior Vice President of Capital Markets and Corporate Planning at Parex. Please go ahead, Mike.
Thank you, operator, and good morning, everyone. On call with me today are Imad Mohsen, Parex's President and CEO; Ken Pinsky, Chief Financial Officer; Eric Furlan, Chief Operating Officer; and Ryan Fowler, Senior Vice President of Exploration. I would like to remind you that this conference call includes forward-looking statements and non-GAAP and other financial measures with the associated risks outlined in our news release and MD&A which can be found on our website or at cedar.com. All amounts disclosed today are in US dollars, unless otherwise stated.
Please go ahead, Imad.
Thanks, Mike and good morning, everyone. As we reflect on 2021, we are extremely proud of our records results and our team that's consistently executing in both Calgary and in Colombia. Looking back, we started the year at approximately 45,000 barrels a day, increase our capital budget significantly and exited that same year at roughly 51,500 barrels a day production rate. In tandem with increasing our production, we also saw an increasingly constructive global commodity price environment that ultimately contributed to Parex's generating annual funds flow from operations of $578 million, which was a record and the largest in the company's history. More to come with that.
During the year, I'm pleased to say that we materially improved the depth and the quality of our land in management. We acquired 18 new blocks in 2021 Columbia Bid Round, as well as expanded our strategic partnership with Ecopetrol in the Northern Llanos, which combined represent the nearly four times increase in our total acreage in Colombia. Parex is now the largest independent acreage holder in Colombia, which is a development of the cornerstone to our long term strategy and vital to our commitment to grow our Colombia on the oil and gas production.
Other noteworthy achievements for the year include our corporate ESG initiatives that Mike will briefly talk about, as well as our return of capital track records that can Ken will touch on. Therefore, I make some final remarks on the – our outlook – before I make some final remarks on our outlook, as well as Parex's positioning for 2021 and the long term.
Please go ahead, Mike.
Thanks, Imad. In 2021, we advanced our climate-related disclosures, such as our inaugural Task Force for Climate Related Financial Disclosure Report, achieved above industry average ESG ratings for major providers such as Sustainalytics, DVP, and Bloomberg. Critically, during the year, we publicly committed to a 50% reduction in our greenhouse gas emissions by 2030, and Parex is actively progressing on its ambition to become one of the least greenhouse gas emissions intensive oil and gas exploration companies. In 2021, we made progress towards this commitment, reducing our greenhouse gas intensity from our operated assets by approximately 14% and a total reduction of approximately 35% from our 2019 baseline.
Moving forward, we expect to see more reductions from advancing the implementation of geothermal energy, all lines to reduce transportation needs, gas plants to reduce flaring, and energy efficiency initiatives. Taking a step back and really looking at sustainability as core, with the current volatility that we are seeing in energy markets today and considering the follow on effects of that, Parex is in a position where we can do our part to provide secure, reliable and environmentally friendly energy. Plus, we can do that while continuing to improve the local communities where we operate. On that note, we look forward to 2022 and updating our stakeholders throughout the year as we look to continually advancing our ESG story and meeting our overall sustainability objectives.
I will turn it over to Ken to briefly describe our recent results and return of capital track record.
Thank you, Mike. We closed 2021 with a strong fourth quarter where we generated record funds flow from operations of $168 million: that was up 200% quarter-over-quarter. I'll add that Brent averaged in Q4 2021 approximately $8 a barrel. And as Imad will tell you, we remain unhedged to global oil prices. Quarterly net income was $96 million, while Q4 2021 production averaged nearly 50,000 barrels a day, and that was up 7% quarter-over-quarter. Over the full year 2021, we generated over $300 million of free funds flow and continued to add to our return of capital track record.
We paid a special dividend as well as initiated a quarterly regular dividend last year, which was just increased by our board to 12% in February. During the year, we also repurchased 10% of our company's public float, which marked the third year in a row where we have bought back the maximum allowable shares pursuant to our normal course issuer bid programs. At the end of February 2022, Parex has now returned over CAD 1 billion to shareholders through share repurchases.
Since 2017, we have reduced the fully diluted share count by over 25%, repurchasing over 47 million shares at an average price of less than CAD 20 per share, compared to our close yesterday of CAD 28.89 per share, for reference.
Stating it in another way, when we started buying back shares in 2017, we had in excess of 164 million fully diluted shares outstanding, which, by year-end 2022, we expect to have approximately 110 million fully diluted shares outstanding. To add, over the same period, our oil and natural gas production has grown by approximately 32%.
We continue to have an unmatched balance sheet, ending the year with no debt, and working capital of $326 million, plus an undrawn $200 million credit facility. As we look to 2022, and even while spending on a comprehensive capital investment program, we have expanded our return to capital plan, raising the base dividend this year already, as I have mentioned, and we are on track to repurchase 10% of our stock for the fourth year in a row. I'm extremely proud of our accomplishments for 2021, and I look forward to 2022 and beyond.
Now, I'd like to turn things back to Imad for some final remarks.
Thanks, Ken. This year – the year 2021 was a record year for us, and I'm excited for what is to come for Parex in 2022 and the long term. For 2022, there is no change to our capital expenditure reduction guidance that we released this past November. We continue to invest across our development, exploitation and exploration programs with our current production guidelines expected to generate year-over-year absolute production growth of 13% or 22% on the a per share basis.
Along with our ambitious capital expenditure program, we still expect to repurchase 10% of our stock this year via NCIB, as Ken mentioned, while also having base dividend upside growth potential. Building our track record of returning meaningful capital to shareholders, moving forward, we want to be clear that we are targeting to return at least a third of free flow from operations to shareholders through share repurchases and dividends.
With this philosophy, at current strip prices, Parex expects to return approximately 40% of 2022 annual FFO to shareholders. The remaining free flow from operations will be invested to grow the company and replenish development inventory to support future return of capital activities.
There's an important point I'd like to comment on right now. Over the last year, we have positioned Parex to capitalize on the current market cycle. Parex is 100% unhedged and has a clear first mover advantage in today's oil and gas market as we move into 2022. Firstly, we are entering the year having acquired the most extensive land base in the company's history – for steel, I would add.
Second, we have secured [indiscernible] (09:40) under long-term contracts to have equipment in place to cater for our capital investment programs for years to come. It does give you some feeling of warm heart to see with the – the last heavy rigs in Colombia are under contract with Parex. Third, we have increased critical organizational capabilities, hiring significant staff both in Calgary and Bogota. I would recall around 30% in Calgary in 2021 increase to help us ramp up our programs.
And lastly, we have placed orders for long lead items for the foreseeable future: that includes casings, well heads, steel compressors, turbines, you name it, in order to provide insulation from supply chain shortages and disruptions and the relative hedge against cost inflation going forward.
Combined, these actions put us in an extremely competitive position organically to harvest upside opportunities as you are seeing, which is Brent pricing that could go well above $100 per barrel, which I guess is $110 today. So for me, not waiting for steel when you're drilling a well that pays back in a month or two gives you use optionality.
With that, I would like to thank everyone for their continued support for Parex, and our employees for their continuous hard work as we execute our strategy. This concludes our formal remarks and I would now like to turn the call back to the operator to start the Q&A session for the investment community. Thank you.
Thank you. [Operator Instructions] We have a question from Luke Davis from RBC. Please go ahead.
Hey, good morning, guys. Imad, you mentioned preorders for long lead items. I'm just curious if you can provide a little bit of commentary around what you're seeing or forecasting for kind of base inflation through the balance of the year? And then wondering how long in advance you can order for you? Just talking 2022, does that go multi-years? Just a little bit more detail there would be helpful. Thanks.
I would say, something like eight months ago, I agreed with the management team that there is a – first for COVID, but also the way the cycle was working, there's a chance for supply disruption. So what we started to do since that moment is define our needs with three years in mind, and wherever we could, to place orders to fix the terms. That doesn't mean you don't get any inflation. So let's say, you buy steel pipes, you wouldn't be having some indexing on steel prices. But that's very different than having to go in a bidding war against that same price. Sitting in somebody's yard, we can get 3 or 4 times that inflation. We're not seeing much inflation right now in Colombia just because of the local conditions on rigs and other items. But I can see some very – I can see some signs for inflation going up, but within numbers that doesn't affect our margins any significantly. Do you want to add to that, anything, Eric?
That summarizes it quite well. I think the big things we've done to secure the rigs, especially the big rigs and go forward. Those are our long-term contracts. And as Imad has alluded to, we're not seeing a big inflation component. We secured the critical equipment we need and the pipe for the next couple of years. So I think we're sitting in pretty good shape.
And that also expands on surface facility equipments where people were brave enough to say, let's order power generation kits or turbines or compressors or even gas treatment facilities before the wells were put on the ground. I can tell you these things coming – to deliver in the coming few months and years will be very handy and trying to expand compared to our competitors.
Got it. That's really helpful. And if I could just ask a follow up to that. Curious to just get your general thoughts on the upcoming elections here, something that comes up a fair bit. So just if you go through kind of a couple potential scenarios and kind of where you guys are sitting right now, that'll be helpful.
Sure. This is Mike Kruchten. Regarding the election, that's going to play out over the next couple months up into June. Really, we're not seeing anything too different than what we saw the past in 2018. There'll be some consolidation of all the candidates that are running. And we really don't think we're well positioned to work with Colombia and continue investing heavily in Colombia no matter what the outcome is. We have a very strong land position: gives us lots of exploration running room and production running room over the next five years. And yeah, we're – we think it won't really change our overall strategy.
That's helpful. Thanks very much.
Thank you. [Operator Instructions] There are no further questions on the phone for now. I would like to turn the meeting back over to Mike.
Thanks very much for all the participants joining our call today. If you have further questions, feel free to contact me at Parex. Have a good day.
Thank you. The conference has now ended. Please disconnect your lines at this time and we thank you for your participation.