Earnings Call Transcript - RNGR Q4 2021

Operator, Operator

Good day, and welcome to the Ranger Energy Services Fourth Quarter 2021 Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Stuart Bodden, CEO. Please go ahead.

Stuart Bodden, CEO

Thank you, Operator. Good morning, everyone. This is Stuart Bodden, President and CEO of Ranger Energy Services. I'm joined today by Ranger’s CFO, Brandon Blossman. Welcome to the Q4 2021 Ranger Energy Services Analyst Call. Before we begin, I would like to recognize the citizens of Ukraine. The Russian invasion of Ukraine has made it difficult to celebrate the most recent run-up in oil prices, but the Ukrainians' bravery and resilience is an inspiration to us all. Regarding Ranger, Brandon and I have been looking forward to speaking with you for some time. We're excited about the basic integration, Ranger's Q4 results, and our outlook for 2022. As you may have noted, we have changed our reporting lines to provide greater transparency into our primary service lines. We are now reporting three segments: High Spec Rigs, Wireline and Processing Solutions, and Ancillary Services. High Spec Rigs includes production and completion-related well servicing work. The Wireline segment includes production and completion-related wireline work. Processing Solutions and Ancillary Services includes our Torrent in-field gas processing business, Coiled Tubing, Plugging and Abandonment, P&A-related Cementing Services and Rentals, and Fishing Tools. Like everyone, we are experiencing increased demand for our services and better pricing. However, supply chain and labor issues persist, and attracting new labor into the industry, in particular, remains a challenge. That said, we believe Ranger is set up for a very strong 2022. The High Spec Rigs business continues to perform in line with our aggressive expectations. We are the clear market leader; demand is increasing, and we have been successful in increasing price and leveraging the performance of our High Spec Rig fleet. The Wireline business has a more competitive landscape. However, both pricing and operational performance are now showing improvement. We definitely see a clear path to a very successful second half of the year, both from a demand and pricing perspective. The legacy business lines embedded in our new Processing Solutions and Ancillary Services segment were already material and successful businesses in their own right. The basic acquisition brought several new lines of business to this segment, and we have evaluated each of these businesses for fit. We have decided not to sell any of these businesses at this time. Upon review, we now believe they are all capable of generating solid returns with growth prospects beyond what we experienced in Q4 of 2021. Before we dive into the Q4 results, it's important to remember that the fourth quarter represents the first quarter where we can see the impact of all of our recent acquisitions. The impact of the basic asset acquisition can be clearly seen when comparing Q4 to Q3. The third quarter represented a full quarter of our Wireline acquisitions, whereas the fourth quarter represents a full quarter of the addition of the basic assets. Revenue for Q4 was $123 million, with adjusted EBITDA of $9.1 million. At the segment level, High Spec Rigs had revenue of more than $59 million and segment-level EBITDA of approximately $8.8 million, generating approximately 15% EBITDA margins. Wireline had revenue of $45 million and segment-level EBITDA of $1 million, generating 2% margins. Processing Solutions and Ancillary Services had revenue of $19 million and $3.6 million of segment EBITDA, generating approximately 19% EBITDA margins. Corporate G&A, after adjustments, represented a very modest 3.5% of revenue. I will now turn it over to Brandon to discuss Q4 in more detail.

Brandon Blossman, CFO

Thank you, Stuart, and good morning to everybody on the call. Let me try to provide some incremental color to our Q4 numbers. First, I'll start at net income. So here, net income moved up quarter-over-quarter from a loss of $9 million in Q3 to a gain of $24 million in Q4, an increase of $33 million, driven essentially all by the positive impacts of the basic transaction on both an operational and an accounting basis. The spread between last quarter's numbers and this quarter's numbers, and also between the adjusted numbers for Q4 and the unadjusted numbers on both EBITDA and net income are particularly wide. So I'm going to take a little bit of time here to run through all of the adjustments that make up the delta between the net income and EBITDA as reported and as adjusted. So first on the net income, there is an adjustment of $6 million; that $6 million is a release of a tax valuation allowance associated with the 2021 tax year. And that is driven largely by the shift from a loss to a gain on the net income tax book basically. Now everything else will also be included in the EBITDA adjustments. So here, we posted $9.1 million of adjusted EBITDA from Q4, and as you would expect post the major acquisition, the adjusted numbers include meaningful adjustments related to particularly the basic acquisition. So specifically, the bridge between an unadjusted $32 million of EBITDA and our adjusted reported number of $9.1 million includes the following items: One, a reduction in EBITDA of $37 million, net of tax, on the booking of a bargain purchase for the basic transaction. In this case, the minimum reasonable net book value that we recorded for the basic assets was well above our purchase price, putting us in the unusual position of needing to book a gain on that acquisition. Next, on the add-backs side, we recorded $7 million worth of transaction costs, which were associated with the basic acquisition itself, a related equity capital raise, and the termination and refinancing of our revolver and Term Loan A, along with the addition of the Term Loan B. Additionally, as previously disclosed, we terminated our tax receivable agreement, which was settled with a $4 million stock issuance. This was also an add-back to EBITDA and net income. The unadjusted number also includes $1.5 million worth of bad debt expense, which we were adjusting out, which primarily relates to the still ongoing bankruptcy process of a former customer and this is related to work completed in early 2019. Finally, we recorded $1.4 million worth of Wireline perforating gun expense in Q4 on an inventory true-up, which was more properly related to Q3 Wireline operating expenses. The sum of all of these ins and outs returns the reported $9.1 million of Q4 adjusted EBITDA. All right. So that's over with and let’s move on to the segment details. As Stuart noted, this reporting season marks the beginning of our new segment reporting structure. As I go through the segments, I'll take a moment to share some additional notes related to that reporting structure along with our historic KPI details that we generally provide. First, the High Spec Rigs segment. This continues unchanged in structure from our legacy reporting here, we capture the revenue and expenses of our service rig fleet, along with the revenues associated with any additional related equipment or on-site services during that service delivery of the High Spec Rig. What is new in this segment this quarter is of course the addition of the basic service rig fleet. However, note that beyond the addition of the basic employees, the location and the service rigs from the basic deal, this segment remains fully comparable period to period. On a quarter-over-quarter basis, so again, this is the pre-basic versus post-basic comparison. The High Spec Rig segment revenue was up sequentially two times from $30 million to nearly $60 million of revenue, while segment EBITDA margins moved down slightly from 16% to 15%. Average rigs working during the quarter moved from 67 to 167, an increase of 150%. Period revenue hours moved from 51,000 to 111,600, a 120% increase. Note that this 120% increase is fully attributable to the addition of the basic service rigs. The legacy Ranger hours were approximately flat quarter-over-quarter. Offsetting that increase in revenue hours was a drop in the composite revenue rate, which moved down 9% from $5.84 an hour to $5.33 an hour. Let me provide some color around that Q4 average rates. As we entered into Q4, the average was 5.32, but we exited the quarter of Q4 at a $561 per hour rate. I'll also note that as we move forward through Q1, a little bit of a teaser here, we're back to at least the rates that we saw pre-basic acquisition on a composite basis. Now moving to Wireline. A standalone Wireline segment is new to our reporting structure. In the past, the Wireline business was co-mingled with other Ranger-branded services and reported on a compositor collected basis. We are now disaggregating Wireline as a stand-alone reporting entity. This segment, as a reminder, includes last year's Patriot and PerfX acquisitions along with the legacy Mallard business. Here, we will continue reporting the same set of operating metrics for the completion of Wireline business as we had historically. But note that this segment now includes three largely integrated Wireline services, completion work, production work, and also rely Wireline-related pumping work. Overall, this segment, again on a quarter-over-quarter basis had revenue moving down slightly from $46 million to $45 million, a drop of about 3%, while margins dropped from 3% to 2%. And then for the operating metrics, again, note that the operating metrics that I'll provide are like what we have provided historically and relate just to the completion side of the business. However, this still constitutes more than 80% of the segment's total revenue, so obviously very relevant to the overall segment. So, again just for completion trucks, the average working truck count moved from 20 to 18, a 10% decline, while the total completed stage count moved down from 11,400 in Q3 to 9,900 in Q4, a 13% decline. Here, comparing Q3 to Q4, both the average working truck count and the periodic stage count declines were largely attributable to the weather and holiday schedule disruptions that we typically see in Q4. On the revenue side, the rate largely offset the declines in stage count and increased from $3,400 a stage to $3,800 a stage. This is a combination of both customer mix shift and individual customer price increases. Finally, our last new recast segment, the Processing Solutions and Ancillary Services segment is the sum of our legacy Torrent businesses, along with several other service lines, both legacy Ranger and new to us from the basic acquisition. Given that this segment includes such a wide-ranging group of business lines, we do not yet have a single set of operational metrics that stand out as useful in understanding the segment as a whole. We will continue to evolve on that front, and hopefully as some of those businesses grow in size, we'll be able to break out some operating metrics. But we have nothing to share today on the operating metric side. To wrap up on a Q4 comparison basis, revenues in this new segment moved up from $6 million in Q3 to $19 million in Q4, that's more than three times, again, like the rigs business largely on the addition of the basic service lines. Offsetting that slightly, margins moved down modestly from 23% to 19%. That's it for the segments, and now back to the overall company. CapEx for the quarter in total was $2 million with the majority of that spend associated with a multitude of small upgrades to the basic rig fleet necessary for those rigs to meet Ranger standards. At the end of Q4, net term debt stood at just over $34 million, that consists of a Term Loan A and a Term Loan B, each with an approximate balance of $12 million, and our PerfX acquisition debt, which has a current balance of approximately $10 million. Liquidity at year's end stood at $19 million, that was up $5 million from Q3's ending $14 million, and that $19 million was composed of $27 million draw against a $45 million borrowing based on our revolver, plus approximately $1 million of cash on hand. Mid-week this week, that number was largely unchanged and stood at approximately $18 million of liquidity. I think that's it from me and the numbers, and let me hand it back over to Stuart.

Stuart Bodden, CEO

Great. Thanks, Brandon. I’d like to spend a couple of minutes discussing the integration of our recent acquisitions. Given the size and complexity of the basic asset acquisition, evaluating, purchasing, and integrating the basic assets has been the primary focus of the senior management team over the last several months. We are very pleased with our progress to date. As noted earlier, incremental revenue and EBITDA from Q3 to Q4 is primarily related to the addition of the basic assets. In Q4, we had $42 million of incremental revenue and approximately $6 million of incremental EBITDA, suggesting a non-optimized pull-through of approximately 14%. Basic was our largest acquisition to date, and we have been very focused on getting it right. With Basic, we brought all employees and assets onto Ranger systems on day one. That was not possible with the Wireline acquisitions. Although smaller, the Wireline acquisitions had been more complex from a systems and processes perspective; we are now giving them increased attention. Current asset sales, which include both basic and some Ranger legacy assets, was $8 million at the end of Q4, and we expect to wrap up another $2 million to $4 million by the end of the current quarter. We have line of sight to an additional $5 million to $7 million in asset sales before the end of the year, which does not include physical properties. There are seven additional physical properties that we intend to sell, which we believe will realize another $5 million to $7 million. All told, we expect asset and property sales to be more than $20 million in total, with approximately $8 million completed to date. To date, we've taken 135 rigs out of the U.S. land market through our rig recycling impact program or RRIP. This includes the 120 rigs that have been destroyed and recycled and 15 rigs that have been sold internationally or out of the market. We have recycled approximately 4,500 U.S. tons of steel to date from our RRIP program. We have posted links to videos about our program on our social media accounts, and I would encourage you to take a look. Before I turn our attention to the outlook for Q1 and for the full year 2022, I would like to quickly review the accomplishments of the Ranger team in 2021. Through the acquisitions of Patriot, PerfX, and the Basic assets, we tripled the size and revenue potential of the company, building meaningful scale in both our rigs and Wireline businesses. We also acquired several new business lines as part of the Basic asset purchases that we feel bring meaningful upside to the earning power of the company. Additionally, we greatly simplified our capital structure. We refinanced our entire balance sheet, eliminated our TRA, and collapsed our multi-tiered equity structure into a single class of stock. As noted in our call in early October about the basic asset purchase, we modeled approximately $30 million of EBITDA in 2022 with $15 million plus of asset sales. Given the success of the integration and results to date, we believe we will meet or exceed those numbers, meaning we purchased the Basic assets for less than one times EBITDA. We are proud of what we accomplished in 2021 and we're excited about what lies ahead. For full-year 2022, we expect revenues to be between $520 million and $560 million, which is an increase from our previous guidance of $450 million to $500 million. We expect EBITDA to range between 11% and 13% for the full year. We are still targeting a 15% EBITDA run rate by the end of the year for Ranger as a whole. For Q1 2022, we are anticipating revenue of roughly $120 million, although we anticipate exiting the quarter at a run rate closer to $130 million. We are expecting similar revenue growth quarter-on-quarter for the rest of the year. We should highlight that we expect the pattern of margin and EBITDA development to be more weighted to the back half of 2022 than originally anticipated. The primary reason for this is that we expect Q1 to underperform relative to Q4 because of challenges in our Wireline segment during the first couple of months of the year. I will elaborate on this shortly. For rigs, we're expecting steady increases in revenue and margin throughout the year. Again, this business is performing well and as expected. We modeled modest growth for Processing Solutions and Ancillary Services, but we do see further upside in these businesses. As an example, both Torrent and our P&A business have positive ESG benefits and are seeing increasing interest from customers. Another example, coiled tubing, which is primarily a DJ Basin business has already realized more than $6 million in revenue and segment EBITDA margins of approximately 20% in the five months we have owned it. Now back to Wireline. There have been two primary issues in Wireline and we are actively addressing both of them. First, the typical structure for plug and perf operations or completion operations leave service companies at the mercy of supply chain issues, such as delays in sand deliveries or the late arrival of frac crews. Common industry practice has been to charge plug and perf services on a per-stage basis regardless of the number of stages completed that day. Unfortunately, we have had instances of sand delivery delays that resulted in zero stages completed for several days and therefore zero revenue, despite Ranger incurring costs and needing to pay our crews for their time and location. Given the tightening market, we are now working with customers to implement a day rate or standby charge to eliminate or minimize this risk. Second, the tight labor markets have limited the flexibility of our labor and service model. In anticipation of increased work, we decided to hire additional personnel ahead of expected demand. When some of the work did not materialize as expected, we strategically decided to pay our crews to keep them working for Ranger. Normally, we would have had the flexibility to send these individuals home, but we decided we did not want to risk losing them as we wanted to ensure that we have available crews in a growing market. As indicated, both of these issues are being addressed, and we expect to see considerable improvement in Wireline as we move into the second quarter. When looking at the full year, we expect to generate meaningful cash flow in 2022. We are projecting free cash flow of $35 million to $45 million, which does include the asset sales highlighted above. This range represents expected EBITDA, deducting CapEx, light-duty vehicle leases and working capital build, plus additional asset sales. As we begin to generate positive cash flow, our first priority will be to pay down our long-term structured debt, which today totals approximately $32 million. Once our long-term structured debt has been retired, we would like to keep some capital available to position us for future acquisitions, and we will also consider a dividend depending on the market conditions at that time. Thank you for listening to our commentary. This is the end of our prepared remarks, and we'll open it up for questions.

Operator, Operator

We will now begin the question-and-answer session. The first question today comes from John Fichthorn from Dialectic Capital. Please go ahead.

John Fichthorn, Analyst

Hey guys, nice job in integrating all those deals. It's really impressive. Stuart, you said something on the call that caught my attention. You said post all these acquisitions you've tripled the size and revenue potential of the company. I'd just love it if you could kind of expand on what that means over the longer term? And maybe also on the potential of these new businesses in the Processing Solutions and Ancillary Services segment if you might?

Stuart Bodden, CEO

Yeah. Thanks, John for the question, appreciate it. I mean, I think kind of how we're thinking about the business is really maybe just take the three segments. On the rig business, it is really kind of all systems go. It's performing exactly like we had hoped; we expect margins to continue to grow, revenue to continue to grow. The Wireline business is very material; it’s not performing as we want, but we really do think that we got our head around it and can turn it around. Then we have all this upside stuck in our other service lines. What I would say is we're projecting modest growth in those right now and that's really just a function of they're pretty new for us. We think in their current state they would just take the normal amount of maintenance CapEx. But what we're really trying to do is to figure out are these businesses that we might actually want to put growth CapEx into, which could provide further upside. We will be pretty conservative in doing that, but again, I think just as we look at the second half of 2022 and then into 2023, we're pretty excited about what we got.

John Fichthorn, Analyst

Great. Thanks a lot, guys.

Operator, Operator

The next question comes from Don Crist with Johnson Rice. Please go ahead.

Don Crist, Analyst

Good morning, guys. How are you all this morning?

Stuart Bodden, CEO

Good morning.

Don Crist, Analyst

Can you talk about demand? The basis of the question is, a lot of people have come out on calls over the last six weeks or so. And so the demand was super strong, but then we're hearing a little bit of a slow start to the first quarter from some people, due to some of the things that you highlighted in your prepared comments, sand, et cetera. Can you talk about how demand has kind of ebbed and flowed and where it is going into the second quarter? How do you see it today?

Stuart Bodden, CEO

Yeah, sure. Thanks for the question. And Brandon obviously chime in. So, I think what we saw is, if I just kind of walk through the quarter, I think like a lot of people, we actually had a bit of a slow start in early January. That was a combination like we did see a holiday impact. But really started to build very steadily through January. February was a short month; there were, if you remember, two weather days that hit on a Thursday and Friday in the Permian Basin. So we were shut down for four days. So I think all of that combined to make it feel like Q1 was a bit of a slow start. And then, obviously, as we highlighted, we are seeing frac crew delays and delivery delays; all of that is impacting operations. That said, I think we are exiting the quarter at a pretty high run rate and we think that will continue to grow. So we're pretty excited about what we're seeing there. I guess, from the last comment, when I listen to the E&P companies, there is still talk of, hey, we're not going to over-invest; we're going to remain disciplined. On the other hand, we're seeing a lot of inbound calls, I would say more inbound calls about equipment than would match that commentary. So it will be interesting to see how that plays out. But what I would tell you is we're getting a lot of inbound calls right now.

Brandon Blossman, CFO

Yeah. And I'll just wrap it up, Don, with a general comment. I think you have to parse out the demand versus the logistics of it. So weather early in the year, COVID, or weather or supply chain issues, that doesn't mean the demand wasn't there; that means that the systems just stretched so tight that a disruption anywhere along the path means that the effect of that disruption is magnified at the service delivery and at the process. So I think we have a queue of customers that are looking for services that are currently unmet. Again, the demand is there; it is just getting crews that are healthy and out on location and all the supply chain necessary to make sure that service, whether it's a completion or production, is going to happen on time.

Don Crist, Analyst

Okay. I appreciate the color there. And with the demand being where it is in your eyes, are you able to push meaningful price increases, or are there competitors out there that are keeping those prices kind of in check right now?

Stuart Bodden, CEO

I would say we're pretty encouraged by what we've been able to accomplish on the pricing side. Referring back to the comments that Brandon made about if you look at, as an example, rig rate pricing on an hourly basis. We almost have absorbed all of the lower basic pricing by the end of this quarter. So we're definitely seeing that ability. On the Wireline side, an example I would give is, I think even three, four months ago, to walk into a client and say, hey, look, we need to put in a standby charge for a day rate; they would have said, we're not going to take it. It's different today, where we're having success doing that.

Don Crist, Analyst

I appreciate all the time this morning; I'll turn it back.

Stuart Bodden, CEO

Thanks, Don.

Operator, Operator

The next question comes from William Kim with Presidio Asset Management. Please go ahead.

William Kim, Analyst

Good morning, Stuart and Brandon. How are you guys doing?

Stuart Bodden, CEO

Good morning.

William Kim, Analyst

I have a few for you today. So if you can just provide some of your time here.

Stuart Bodden, CEO

Are you still writing them down?

William Kim, Analyst

I was looking a bit at your working capital as we go through kind of the growth phase here. There is quite a bit of fluctuation in your receivables, and I wanted to get some context around what you would consider a normalized payment term like going forward. If you go back to 2019 to today, we see a range of somewhere between 45 and 75 days, and obviously with the business continuing to grow, I want to get a better idea of how much working capital usage we can see in 2022.

Brandon Blossman, CFO

Okay. Well, I will take that one. I probably have way too much color to provide on that, so I'll keep it relatively short. So we're at 63 days currently; we believe that's too long, and we believe we can bring it down. The color around that is that many of our largest customers have done acquisitions and/or combined those acquisitions with the trend of moving to a third-party cloud invoicing system. This all sounds like a lot of noise and unnecessary detail, but it's actually quite meaningful. We have to revamp our side of that process in order to submit and monitor the invoices in these third-party systems. Our largest customers have all moved to these systems over the last couple of years. We are actually ahead of the curve in terms of service providers in providing our side to be fully automated. If we can just bring that down, it should significantly improve our cash flow.

William Kim, Analyst

That's great color. It seems like if we kind of work through about a 45 to 50-day AR window, there is potential here to kind of get some more capital benefit into the rest of the year, even if we move furthering this up into 25 to 40 rigs, is that kind of accurate?

Stuart Bodden, CEO

That's accurate. Yes, the lower end of our range we would expect that benefit; we would expect that benefit to be offset with the incremental revenue at the higher end of the revenue forecast.

William Kim, Analyst

Great. Thanks. Moving on to the next question on the well service side, if we look at the hourly rig rates that you're seeing now and the color you gave a minute ago, looking at $5.84 coming out in kind of current quarter. Can we look at that as some sort of normalized run rate going forward? Or is there still some more improvement less that you see out there?

Stuart Bodden, CEO

Yeah. I'm looking at our SVP of well servicing right now. I do think that there is still some upside. The market is getting increasingly tight; labor is tight. I think we are fortunate in that we still have assets that we can put into service if we can get the crews without a lot of CapEx. But you are starting to get to that point where the next rigs coming off the defense line need CAT 4s. They actually need some work on them. So the market feels tight; I think there is still more upside.

Brandon Blossman, CFO

On a longer-term historic basis, we're nowhere near the margins that we saw in '13 and '14. Given the tightness on the macro side, it would not be unreasonable to expect us to be able to return to at least a historic number here as we move through the macro landscape over the next 24 months.

William Kim, Analyst

Got it. Great. Next, I want to kind of move into more the Wireline and Ancillary Services businesses. Is this the first quarter, and forgive me if I missed it, that you gave more of a stage count number? I wanted to see how that was relative to kind of previous years and quarters? Do you have any number in front of you that you can share as far as completed stage count in 2019, 2020, and the first half of '21?

Stuart Bodden, CEO

We are happy to circle back with anybody that's interested in historic numbers. However, the only issue with it, historically, is going to be colored pretty strongly by the tripling of the size of the completion fleet post-acquisition of PerfX versus pre-acquisition.

William Kim, Analyst

Okay, got it. And then on the Wireline side, are you now dedicating certain Wireline units to P&A work and going forward, will that revenue show up only in the Ancillary Services side? It seems like, if you look at previous quarters, some revenue was taken from the Wireline segment and pushed into the Ancillary Services side. I want to get a better idea of how assets are dedicated to the Wireline units into each segment. How do you see that going forward?

Stuart Bodden, CEO

Going forward, Wireline will only be in the Wireline segment with one small exception. We do have a P&A business that uses Wireline trucks in the Ranger branded businesses, but that is de minimis in size and in revenue. For all practical purposes, a Wireline truck will sit in the Wireline segment.

William Kim, Analyst

Okay, got it. The last one just revolves around your capital structure. What are the other financing liabilities in the net debt number that you provided in the press release?

Stuart Bodden, CEO

That would be the sale leaseback that we did last year on the Milliken facility.

William Kim, Analyst

Okay, great. And just looking at your guidance here, last question I assume. If we kind of take your ongoing G&A number of roughly $16 million and take a midpoint on your revenue guidance and a midpoint on your EBITDA margins, that's kind of been playing an $80 million segment EBITDA number and getting closer to a $100 million run rate at year-end. Am I thinking about that correctly or am I double-counting?

Stuart Bodden, CEO

No, I don't think you're double counting. That brings up the conversation on General and Administrative expenses. Ironically, our internal discussions indicate that we might be running too light on G&A, so you may see G&A increase a bit, at least in the first part of 2022. Essentially, this is to ensure that we are fully optimized and prepared for another acquisition if that should come into our focus. We have had a lot of work to do over the past six months, and now we are shifting our focus to getting everything up and running. So we are actively adding headcount and G&A right now to ensure maximum efficiency. We'll evaluate how that plays out by the end of the year; we may be very successful and return to the historic G&A number, but our corporate team has been quite stretched over the last six months.

Brandon Blossman, CFO

For sure.

William Kim, Analyst

Great. Okay. Very good. Thank you, guys, both. Great quarter.

Stuart Bodden, CEO

Thanks, William.

Operator, Operator

This concludes our question-and-answer session. I would like to turn the conference back over to Stuart Bodden for any closing remarks.

Stuart Bodden, CEO

Again, thank you, operator. Again, I appreciate everybody joining the call today. Don't really have much to add. Hope everybody has a nice rest of the day and a great weekend. Thanks, everyone.

Operator, Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.