Good morning, everyone, and welcome to the Flotek Industries' 2024 Q2 Earnings Conference Call. This call is being recorded on Wednesday, August 7, 2024. I would now like to turn the conference over to Michael Critelli, Director of Finance and Investor Relations. Please go ahead.

Thank you, and good morning, everyone. We appreciate your participation in Flotek's second quarter 2024 earnings conference call. Joining me on the call today are Ryan Ezell, Chief Executive Officer; and Bond Clement, Chief Financial Officer. First, we will provide prepared remarks concerning our business operations and financial results for the second quarter 2024 as well as our updated guidance for the full year 2024. Following that, we will open up the call for any questions you may have. Flotek's second quarter 2024 financial and operating earnings press release was issued yesterday afternoon. We also posted to our website an updated Q2 earnings presentation that we will be referencing on today's call. These can all be found on the Investor Relations section of our website. In addition, today's call is being webcast, and a replay will be available on our website following the conclusion of this call. Before we begin, I'd like to make some brief remarks about forward-looking statements and the use of non-GAAP financial measures. Except for historical information mentioned during the conference call, statements made by Flotek management on today's call are forward-looking statements that are pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. In addition, certain non-GAAP financial measures as designed under SEC rules may be discussed on this call as required by applicable SEC rules. The company provides reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures on its website. Please refer to the reconciliations provided in the earnings press release and corporate presentations posted on our website. With that, I will turn the call over to our CEO, Ryan Ezell.

Thank you, Mike, and good morning. We appreciate everyone's interest in Flotek and for joining us today as we discuss our second quarter 2024 operational and financial results. I'm extremely pleased with our performance during the first half of the year that continues our trend of delivering revenue and profitability growth. With that in mind, I'd like to turn to Slide 5 and touch on our key highlights for the quarter that Bond will discuss in detail in just a moment. Against the backdrop of slower North American oilfield service activity, we grew revenue 14% sequentially, highlighting our strong execution and the continued progress we've made in capturing market share. This is an impressive accomplishment when considering that the active rig and fracturing fleet counts declined sequentially during this same period. Our Q2 2024 external customer chemistry sales were up 40% from Q1 of 2024, and our Data Analytics segment saw a 22% quarter-over-quarter increase. We delivered significant year-over-year improvements in all profitability metrics, resulting in the fourth consecutive quarter of net income and the seventh consecutive quarter of improvements in adjusted EBITDA. We also raised our full-year adjusted EBITDA guidance by 23% at the midpoint. We've amended our ABL facility, resulting in a sizable increase to our loan commitment with a reduction in the interest rate. And in addition to this progress, we received approval from the Environmental Protection Agency for the JP3 analyzer system for utilization in flare emission monitoring, facilitating access to a new upstream market application with an estimated annual total addressable market of $220 million. Most importantly, all of these achievements were accomplished with zero recordable and lost time incidents. I'd like to take a moment to thank our employees for their hard work and commitment to safety and service quality in achieving these outstanding results. I expect us to continue to build upon this momentum in the second half of 2024. Now looking at the quarter with a bit more granularity. Revenue grew 14% compared to Q1 of 2024. This increase was mostly attributable to a significant growth in external customer chemistry sales compared to Q1 of 2024 through the execution of our prescriptive chemistry sales strategy. As shown on Slide 6, external chemistry sales in the Permian Basin grew by 186% from the first quarter of 2024 and 68% year-over-year. Notably, we saw an 89% increase in our proprietary Complex Nano-Fluids technology sales in the first half of 2024 compared to the first half of 2023. Flotek will remain at the forefront of innovation and multidisciplinary advancements as we bring new technologies to the market, including AI-driven reservoir modeling to address the impacts of water inhibition, drive preferential microfluid behavior in nanopore environments, and improve the ultimate recovery of hydrocarbons from each asset. Our Data Analytics segment revenue increased 22% in the first quarter of 2024. We remain focused on converting to a Data as a Service model, combined with the launch of our next-generation measurement system, unlocking significant upstream market opportunities as we expect the business to see continued growth during the third quarter. As part of our commitment to being at the forefront of innovation, we recently announced that the EPA approved the JP3 system as an improved measurement technology concerning recently enacted flare regulations. A picture of our new flare monitoring cart that is currently on location can be seen on Slide 9. This state-of-the-art optical instrument is designed for the precise measurement of net heating values in flare gases, and it is the first to be approved as an alternative method under the new regulations. According to the EPA, there are over 55,000 existing flares in the U.S. expected to be subject to monitoring regulations by 2028. This approval positions Flotek for growth in this new upstream space. We believe we are well positioned to capitalize on this opportunity with approximately 75 units available to be deployed, and we have already received numerous orders with three units currently on customer locations. The EPA's approval not only validates our cutting-edge technology but provides Flotek with another pillar of growth, given the tangible ESG benefits that flare monitoring can provide. By integrating real-time autonomous and continuous data analytics with rigorous environmental measurement, we are providing our clients with innovative solutions that meet regulatory requirements while minimizing operational risk. Despite the near-term volatility in natural gas pricing, the long-term fundamentals for energy-related services remain strong. The North American E&P consolidation transactions are taking time to integrate, impacting near-term drilling and completion activity. We do expect activity to rebound in 2025 and further accelerate in 2026 as non-core assets assimilated during the consolidation phase are divested and developed. Our international opportunities will continue to expand as unconventional related activity grows in the Middle East and Latin America. The demand for oil and gas is expected to expand for the next decade with further requirements needed through 2045. For the first time in nearly two decades, the demand for electricity in the U.S. is projected to climb by 15% by 2030, and natural gas is expected to provide the bulk of this incremental demand. We expect the overall expansion of the global economy to continue to create substantial demand for all forms of energy, which will increase service intensity within the sector. As we look at the remainder of 2024, our efforts remain focused on revenue growth, market share expansion, cost efficiency gains, and creating value for our shareholders. We are well positioned to capitalize on opportunities both domestically and internationally. We are confident that our expanding suite of services positions us to deliver unique and superior solutions to maximize our customers' value chain. We believe there is no company better positioned to provide strategic solutions to a variety of the industry's most challenging problems. Now I'll turn the call over to Bond to provide key financial highlights.

Thanks, Ryan. Good morning, everyone. There's obviously a lot to like about our release yesterday, and we're very excited about sharing our continued progress. During the quarter, we grew both chemistry and Data Analytics revenue, we increased our full year guidance, we reported an expansion of our loan agreement, and we continued our quarterly streak of improved profitability. Our second quarter results continue the financial and operational momentum that began back in 2022 with the execution of our long-term supply agreement. In the face of softer oilfield service fundamentals, our ability to grow revenues, profitability and liquidity is a validation of our strategy to build resilient and complementary businesses that allow us to deliver impressive results through industry volatility. Moving to the specific results, I'll run through a handful of key financial items for the second quarter and refer to the slides in the presentation posted yesterday. Slide 5 highlights our second quarter achievements and growth and profitability. Headlining our results were year-over-year improvements in net income, gross profit, and adjusted EBITDA compared to the second quarter of 2023. For the second quarter, we reported total revenues of $46 million, which was a sequential increase of 14%. As Ryan mentioned, this increase was driven by the strong growth in chemistry revenue from external customers. We indicated on last quarter's call that our first quarter results were impacted by seasonality, so we were excited to see the strong recovery in 2Q that we said we believed would occur. Gross profit during the quarter increased for the sixth consecutive quarter. Second quarter gross profit grew to $9.2 million, a 136% increase compared to gross profit of $3.9 million in the comparable 2023 period. It's important to note that the minimum chemistry purchase requirements in our supply agreement were in effect during the entire second quarter of 2024 but were only in effect for one month during the second quarter of 2023, as the measurement period for the minimum purchase requirements began on June 1, 2023. The additional revenue from our supply agreement requirements, combined with our continued focus on cost improvements, allows us to deliver strong margins as we realized a gross profit margin and adjusted gross profit margin of 20% and 23%, respectively, for the second quarter compared to 8% and 10%, respectively, for the year-ago quarter. While revenue did grow 14% sequentially, gross profit margin was down approximately 200 basis points versus the first quarter as a result of product mix changes during the quarter. During the second quarter of 2024, we saw a meaningful increase in the percentage of sales from friction reducers, which are generally a lower-margin product. The increase in friction reducer sales was related to the geographic shift that Ryan touched upon earlier as we are supporting ProFrac's penetration into the Permian Basin as well as increasing our sales in the Permian to external customers. We continue to focus on driving down SG&A costs as our second quarter SG&A declined to $6.3 million, a 25% improvement from the year-ago quarter. Moving to Slide 7, second quarter 2024 adjusted EBITDA increased by $6.4 million compared to the second quarter of last year, representing a 10% sequential growth. On a trailing 12-month basis, we have now reported $15.8 million in cumulative adjusted EBITDA compared to negative $19.3 million for the 12 months ended June 30, 2023. That change represents an incredible $35 million improvement. Touching on the balance sheet, at June 30, we had $5.8 million drawn under our ABL. Our June 30 debt to trailing 12-month adjusted EBITDA ratio was 0.4x. As noted in our release, on Monday, we closed an amendment to our ABL agreement. We were able to increase the loan commitment by 45% to $20 million while securing a 50 basis point reduction from prime plus 250 to prime plus 200. While this amendment will provide some increase to our current credit availability, the more significant benefit is that our credit availability will now scale proportionately with the growth in assets supporting the borrowing base versus being capped out under the prior commitment level. There were no changes to covenants. There were no additional fees incurred in connection with this amendment. So we're very pleased with the outcome. Turning to our updated 2024 guidance. Based on the strong operational performance we delivered during the first half of the year, our outlook for the remainder of 2024 now expects adjusted EBITDA to be in the range of $14 million to $18 million, which is an increase of 23% at the midpoint compared to the previous range of $10 million to $16 million. Based on current projections, we continue to expect our 2024 adjusted gross profit margin to be between 18% and 22%, which compares very favorably to our 2023 adjusted gross profit margin of 15%. In closing, we're pleased with our second quarter results, having gained market share, grown profitability, and improved liquidity. While the rebound in the natural gas market has been slower than many expected, we continue to believe that LNG buildout later this year and continuing into 2025 will lead to higher prices, ultimately incentivizing natural gas producers to increase activity. We continue to believe that we are well-positioned to capitalize on the improvement in natural gas fundamentals and the resulting opportunities that will be available. I'll now turn the call back over to Ryan to close it out.

Thanks, Bond. We are excited about the remainder of 2024 as we believe that Flotek continues to represent a compelling investment opportunity. Our second quarter results delivered revenue and profitability growth as part of our chemistry as a common value creation platform strategy. The approval of our JP3 analyzer provides a strong catalyst for revenue growth later this year and into 2025. I'm quite proud of the progress we have made, and I'm confident in our ability to execute going forward. We continue to be an industry leader, driving innovation and delivering differentiated chemistry and data solutions that are tailored to our customers' needs. We strive to anticipate future challenges that will impact our industry, so we are at the forefront of delivering chemistry and data solutions before they are needed and creating measurable value for our customers. We appreciate the continued support of all of our stakeholders, and we hope that you share our excitement regarding the future of Flotek. We look forward to reporting further progress. Operator, we are now ready to take questions.

Your first question comes from Jeff Grampp of Alliance Global Partners. Please go ahead.

Good morning, everyone. Thank you for your time. I want to start with the Data Analytics side. In your presentation, you mentioned that you already have orders for over 50 flare sites in just the past few weeks following EPA approval. Could you clarify how many different customers that includes? Are they new customers? Are they from the upstream sector? Any additional details on those orders would be appreciated.

Yes, most of our customers are in the upstream sector. We have a balanced mix of traditional midstream clients and some new ones. Currently, we have orders for over 50 flare sites, with a lead time of about four to six weeks for each cart as they begin to ship. Most of these orders are projected to be delivered in the third and fourth quarters of this year and early 2025, and those numbers are steadily increasing. It's an exciting time as the flare cart represents a comprehensive solution for monitoring flare emissions.

Great. I appreciate that, Ryan. And for my follow-up, the external customer growth was noteworthy, and I think you guys kind of alluded to seeing that even on the last call. Industry activity seems to be heading the other way. So I'm curious, what's kind of the view in the back half of the year in terms of the sustainability of continuing to kind of buck that trend when the industry is kind of flat to down? You guys have obviously outperformed quite significantly. Can that continue? When does that start to become a bit of a headwind for you guys, if at all?

That's a great question. As we mentioned in our last call, we've typically observed a cyclical pattern post-COVID, with activity rebounding strongly in Q2 following a dip in Q1. When comparing Q2 of 2023 to Q2 of 2024, there's a 10% improvement projected for 2024. Additionally, we've noticed a decrease in the average number of frac fleets during the quarter, which suggests we are gaining market share. Looking ahead to the second half of the year, we still believe there are growth opportunities for our chemistry business, despite anticipating a 5% to 6% reduction in the average frac fleet count. The average activity level in June shows just over a 6% decline. However, I do anticipate some slight growth, although it won’t match the significant increase from Q1 to Q2. We expect to maintain solid market share performance, but the growth might be slow, and the second half of the year may represent a low point in activity within this cycle.

Yes, that makes a lot of sense. I appreciate the time. Thank you.

Your next question comes from the line of Don Crist of Johnson Rice. Please go ahead.

Good morning, gentlemen. I wanted to start on the orders for the 50 orders that you received for the Calix sensor so far. Any breakdown as to how many were outright sales versus on subscription model? I know you were toying around with kind of shifting over to more of a subscription model. Just any color around that?

Currently to date, all the ones that we've received now have been on a subscription basis, which has been fantastic for us in terms of the strategy and moving towards that Data as a Service and service revenue model. It will be interesting to see as the market matures because there are substantial benefits to having these units monitoring continuously on a single well throughout the year as they can calculate a destruction number, which can actually improve the performance of the well potentially by 2% to 3%. But right now, 100% of the orders have been on a subscription model.

Okay. And taking that a step further, obviously in the presentation you talked about an addressable market of $220 million. How many sensors just roughly speaking would that take? Is that double or triple the orders that you've gotten already?

Yes, it's likely larger than that. We estimate that the 55,000 wells need servicing approximately every five years, which gives us a total market of just over $1 billion in that timeframe. This translates to an estimated recurring revenue of about $220 million each year. As we grow and increase adoption, we aim to capture a market share of around 15% to 20% of this segment, although this process will likely take over 2.5 years to achieve. To effectively engage with this market, we would need to increase our sales by 2 to 3 times what we currently have.

Okay. And on the other side of the measurement business, from the production side, any traction on sales there? I know you've added a bunch of salesmen over this year and gone from a small number to a very large number. Any follow-through on sales on the production side, not just on the flare side?

Yes. I assume you are referring to the chain of custody aspect related to production. There is significant interest in this area, and we have deployed several units on site to take measurements. The results are aligning with our expectations, and our customer base is expanding. One consideration is understanding who the final buyer will be, whether that will be the operator or the leaseholder. Typically, the leaseholder would likely see the greatest benefit. We're noticing substantial interest, and while the flare aspect is heavily regulated, this is more about growing interest. We have demonstrated our proof of concept, but it is essential to share how impactful the chain of custody can be. We recently completed an advanced customer presentation on the solution and the considerable effect that chain of custody monitoring can have. We are quite excited about this progress.

I agree. And once people understand that they can make more money from their production, that should take off. I appreciate the color, guys. I'll turn it back.

Thanks.

Your next question comes from the line of Gerry Sweeney of ROTH Capital. Please go ahead.

Hi, good morning, Ryan and Bond. Thanks for taking my call.

Hey, Gerry. How are you doing?

Good. Just wanted to follow up on the flare gas side. I think you just mentioned a $220 million sort of addressable market, looking to get to upper teens, even 20% market share. Curious if you could give a little bit of detail, sort of maybe the roadmap as to how you achieve that over the next couple of years.

Yes, we haven't provided specific public revenue guidance on that growth rate yet. I can say that our expectations for growth are more promising for '24, particularly in the November-December timeframe, as operators are still within the 180-day period from May. We're starting to get many purchase orders, but deliveries will occur in November and December. Some customers are already on location, and they're beginning to see the benefits of full-time monitoring. However, I anticipate that we will begin to see significant acceleration in '25. We're committed to spending another $1 million in the latter half of this year to support that growth. Regarding the 18% to 20% market share, we will likely see that develop closer to the 2026 timeframe, once all necessary capital is deployed to tap into that market fully.

Got it. Sure. And then secondly, just a follow-up on the external chemistry side. Obviously, great growth. Margins got hit a little bit due to mix. But I'm just curious, is there an ability as you grow in the Permian and maybe even some other basins to convince some customers to move to more of the higher-margin, more advanced chemistries that you're using? Is there sort of an upsell then?

Yes. We kind of bifurcate the way we look at our external chemistry sales into two different components: the first one being the E&P operators. When we look at the E&P operators, we have significant success, once we get our chemistry technologies in the door, that we are able to move into higher-end technology applications where you've seen that penetration improvement in our proprietary technologies, not only in our Complex Nano-Fluid sales but all of our value-added chemistry, whether it be flowback additives, scale control, and everything that really is the backbone of our Prescriptive Chemistry Management systems. But when you look at the other components and a lot of the E&P operators, the service companies that we sell to, their big concern is controlling friction reduction and different components like that. So we still move a significant amount of friction reducer to that group of our business. There's not as much, I would say, opportunities to upsell those guys or technology sale them as they just want the operation to exist on the baseline. However, we are seeing, and we talked about this prior, that the consolidation of these E&P operators is pushing through. They're wanting better returns and better production out of every well. So they are starting to listen to us in terms of well spacing, how tight they are, the need for specific chemistry as you down space, and also the impact of where we see that interface between the natural fractures and what we see as the connected systems in the backend. As we continue to push this message, we're talking a lot about it at EnerCom, we're seeing a solid impact coming from the E&P side. This is translating to some of the pressure pumping companies wanting to move those technologies as well.

Got it. I appreciate it. I'll jump back in line. Thanks.

Your next question comes from the line of Blake McLean of Daniel Energy Partners. Please go ahead.

Hi, good morning, guys. Thanks for taking my question here.

Hi, Blake. How are you doing?

I'm good, thanks, man. So I wanted to dig a bit more on the Data Analytics piece. You guys have provided a ton of great information here on the flare gas opportunity. Could you maybe talk a bit more about some of the other applications and market penetration efforts that you guys have? We've hit upstream a bit, but maybe on the midstream and the downstream side, how are you guys prioritizing efforts there? Where do you see the biggest opportunities?

Absolutely. I’d like to begin by discussing the upstream sector, as we believe it presents significant opportunities for rapid growth and showcases our unique technological advantages. In terms of flare gas monitoring, our competition generally relies on sampling, which is costly, error-prone, and often suffers from service quality issues. We see our solutions not only as more cost-effective but also as offering improved accuracy, which has led to the EPA consistently endorsing our technologies for flare monitoring. We observe similar benefits in composite sampling compared to our real-time measurement for chain of custody. Therefore, I believe we have a substantial addressable market where our cost and technical capabilities set us apart. As we transition to the downstream segment, this is where much of our core business has traditionally operated, including areas like trans mix, Reid vapor pressure monitoring, and refined fuel blending as volumes increase. In particular, trans mix stands out due to our autonomous real-time sampling, and we excel in Reid vapor pressure monitoring as well. However, this market may exhibit slower growth compared to the upstream opportunities. Further downstream, we encounter more fixed installations or capital expenditures, and we compete directly with gas chromatography and similar technologies, where we may lose some differentiation. Therefore, we focus our efforts on areas where we have significant price or technical advantages and where we can achieve rapid market penetration.

Your next question comes from Singular Research. Please go ahead.

Good morning, guys. Can you hear me?

Yes. Good morning.

Good morning. Can you provide commentary on your ability to accommodate external customers considering you have close to $200 million in annual backlog with ProFrac? Additionally, could you share more details about the context beyond the $2 billion?

Yes, that's a great question for us and something we're excited about. One of our strategic pillars has always been a capitalized business model. This is due to the locations of our facilities, especially some of our manufacturing sites, where we have significant potential to increase revenue and output while also improving cost efficiency through our blending processes. For instance, our main facility in Marlow, Oklahoma, just outside of Oklahoma City, is currently operating at about 37% capacity with only a single day shift. This facility alone could potentially increase throughput by 2.5 to 3 times, which would enhance revenue in the chemistry sector. We see ample opportunity to grow the business, enhance profitability, and achieve efficiencies without needing to invest heavily in capital for the chemistry side. Regarding our JP3 business growth, we have focused extensively on increasing the sourcing capacity of our proprietary analyzers as well as the speed of their manufacturing. In previous earnings calls, we mentioned that we're expecting a 10-fold improvement in manufacturing speed for our proprietary sensors. We're also making similar advancements in the production rate of our carts for flare monitoring. Without incurring significant capital costs, we have a strong path to continue growing the business.

And any color on the backlog beyond the $2 billion that you have with ProFrac?

So we consistently talk about it because there's no doubt that it's our longest-standing unique contract, and we're excited to have it and actually work with an advanced partner like ProFrac regarding their commitment to technologies and service quality. But when we look at some of our other external customers, there's no doubt, we're a primary supplier on a multitude of other contracts. However, they tend to be more transactional in nature and can often be penetrated if you have a technical differentiation or they want to test trial something. We think they're a little stickier than they used to be, but they don't represent nearly the magnitude of backlog as what we see from ProFrac.

Can you provide some insights on the Data Analytics aspect? I understand that the revenue model isn't solely dependent on the number of units installed, but rather on the services associated with it. Is there potential to enhance those services to significantly contribute to revenue growth? Do you have the necessary talent available, or would you need to recruit additional staff for this?

I believe that the organization's current strategy focuses on growing revenue, particularly through an increased percentage of recurring revenue and Data as a Service within our model. Although this approach may have slowed overall revenue compared to capital sales, we have been steadily building a backlog of recurring revenue that will ultimately be much more profitable. Furthermore, we expect this to significantly enhance the organization's valuation since businesses in the Data as a Service sector typically trade at higher multiples than those relying solely on sensor capital sales without supporting services. I don’t think we are currently facing a significant bottleneck in acceptance, especially after implementing some manufacturing changes. We are committing more capital to the Data Analytics side of the business than we would have previously on the chemistry side, ensuring that we have the necessary analyzers to support growth. We are not restricted by that aspect.

Okay. As someone who is relatively new to the sector, could you help me understand the differences in economics between an oil-weighted basin and a gas-weighted basin? Specifically, how do the economics change with increased activity in those basins? Also, could you discuss the differences in the types of chemistry needed across the various regions?

Yes. That's another great question. Traditionally speaking, and I'll use, for example, the Permian Basin versus the Haynesville, which is in the Ark-La-Tex region. The Haynesville, the hydraulic fracturing takes place, operates at higher pressures and significantly higher temperatures, and requires a much more complex system, oftentimes a hybrid combination between slickwater and crosslink waters, which also carries more corrosion inhibition products, scale inhibition products, et cetera, due to the significant technical challenges that are taken in those basins. For us, we see better revenue per fleet activity in these gas-driven basins, particularly Haynesville, compared to what we see in West Texas, mostly because of the technology requirements, which also benefits us because we have unique and I say proprietary tech that works very well in those basins. When we model it, we have a little bit different revenue per fleet. You do see a difference traditionally between around 30% of total average monthly revenue per fleet between the Haynesville versus what you see in the Permian Basin and more of these oil-rich basins.

Your next question comes from the line of Richard Dearnley of Longport Partners. Please go ahead.

Good morning.

Good morning.

What was the minimum purchase payment for the quarter and the first quarter from ProFrac?

In the second quarter, it was about $8 million. Are you referring to the shortfall calculation?

Yes, the make-good payment.

Yes. Just to kind of review how this works, we accrue on a quarterly basis the shortfall, but the ultimate settle-up is calculated on an annual basis. So the cumulative amount of the shortfall can fluctuate based upon activity levels throughout the year. At the end of the year, the shortfall is settled up in the first quarter of the following year. As we accrue the 2024 shortfall, it could go up or it could go down based on activity. The accounts receivable balance will grow throughout the year based on what that shortfall does.

Right. Good. Thank you.

There are no further questions at this time. I'd now like to turn the call back over to Mike Critelli for final closing remarks. Please go ahead.

Thank you again for joining us today. I'd like to remind everyone that Ryan Ezell, Flotek's CEO, will be presenting at EnerCom Denver, the Energy Investment Conference on Monday, August 19 at 9:15 a.m. Mountain Time as well as the 2024 Gateway Conference in San Francisco, California on Wednesday, September 4, 2024. He will be joined by CFO, Bond Clement, in hosting meetings with investors. A copy of the presentation that will be used in each discussion will be available on the corporate website prior to the event. We look forward to meeting with many of you at the conference. Thanks again for joining us today. Please feel free to contact us if you have any additional questions. 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.