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Phillips 66
2015 Citi Global Energy and Utilities Conference
May 13, 2015 – 9:30 a.m. EST
Clayton Reasor
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Phillips 66
2015 Citi Global Energy and Utilities Conference
Clayton Reasor, Executive Vice President, Investor Relations, Strategy, Corporate and Government Affairs
Faisel Khan, Managing Director at Citi Research
May 13, 2015
9:30 a.m. EST
Faisel Khan:
...from Phillips 66, which is the largest refining company in the US by market
capitalization is Clayton Reasor, who is the Executive Vice President of Investor
Relations, Strategy, Corporate Development and Government Affairs. So it’s a
long list of responsibilities that you have. But we’re going to hear some prepared
remarks from Clayton and then we’re going to open it up to Q&A and hopefully
have an interactive discussion on the refining market.
Clayton Reasor:
Thanks, Faisel. Always good to be in Boston. Hate to correct the person
introducing you, but we’re more than a refining company. We’re really the only
downstream company that has significant exposure to petrochemicals in NGL
market. So hope your questions are more than just about what crack spreads are
going to be doing or what the Brent WTI is expected to be at the end of the year.
I guess we’re on our path of transforming our company from primarily a refining
business to one that has significant exposures in petrochemicals and in the
midstream space. And midstream to us is not only refining logistics but it’s also
NGL gathering and processing, Y-grade movements, fractionation and LPG
export facilities, and I’ll cover that over the next 20 minutes or so and then look
forward to your questions at the end.
The obligatory Safe Harbor Statement. I’ll be making statements over the next
hour or so and actual results may differ materially. Elements that drive those
differences can be found in our filings with the SEC.
Phillips 66: We don’t call ourselves a refiner. We call ourselves a diversified
downstream company. As I mentioned, we’re the only refiner with significant
petrochemical, primarily olefin and polyolefin exposure. We also have a growing
NGL business and we think these things differentiate ourselves from others in the
refining space. This combination of refining with chemicals and midstream
provides us with what we believe are more resilient cash flows than others in the
space. And then what do we do with that cash? We’re pretty good about
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2015 Citi Global Energy and Utilities Conference
May 13, 2015 – 9:30 a.m. EST
Clayton Reasor
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allocating between distributing that cash back to you, our shareholders, and also
reinvesting in our business. And you’ll see that over the next few slides.
I wanted to cover first quarter quickly. We announced earnings a couple weeks
ago. Generated about $1.8 billion of EBITDA. We funded $1.1 billion dollars of
capital programs and returned about $670 million to shareholders in the forms of
dividends and share repurchase. We also received $1.3 billion dollars from our
MLP PSXP from an asset drop that we did in the first quarter.
The graph on the right shows the last nine quarters of EBITDA and the relative
stability that we’ve seen in spite of the commodity price movements. Now this
market was, is, always will be volatile. We expect to see crude price volatility
going forward. This is not the first time we’ve seen a collapse in crude price the
way we’ve seen between the fourth quarter and first quarter. But we put this up
just to demonstrate that in spite of these movements in crude prices or other
commodity price, we generate a fairly stable level of EBITDA that’s almost $2
billion. I think the average over this period of time was like $1.9 billion dollars of
EBITDA. And you can see the bar on the far right really shows the averages for
each of these different segments. And over time, we would expect the chemicals
and the midstream bars to expand.
We also announced results in Phillips 66 Partners or PSXP. You can see the first
quarter highlights on the right-hand side. We had distributable cash flows of $42
million. During the quarter, PSXP acquired Phillips 66’s interest in the Sand
Hills, Southern Hills and Explorer Pipelines and to fund this acquisition, PSXP
had its first follow-on equity offering, raising roughly $400 million of equity and
issuing $1.1 billion of debt. The graph on the left shows strong distribution
growth on a per unit share since PSXP IPO’d in the third quarter of 2013.
This is the portfolio that we’ve got as a company. As I mentioned before, we’re
pretty unique given each one of these businesses is very competitive within its
space. They’re well-positioned. They’re good assets. Of course, our midstream
business is comprised of not only our joint venture DCP, but also our own NGL
business and a transportation business that’s centered around refining logistics.
Chemicals, we compete through our JV CPChem, which is a 50/50 with JV with
Chevron, a leading olefin and polyolefins business centered really in North
America on the Gulf Coast and in the Middle East. So no real assets in Asia and
Europe outside of marketing assets.
And our refining and marketing businesses are competitive in the US. We have 14
refineries globally, 11 in the US, 2.2 million barrels a day of capacity. And that’s
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2015 Citi Global Energy and Utilities Conference
May 13, 2015 – 9:30 a.m. EST
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supported by a marketing and specialties business that provides pull through for
the refineries but also generates very high returns.
These businesses, there are synergies between them. The fact that we have a
refining business allows us to grow our midstream business more quickly. It also
allows us to recognize market opportunities and allocate capital across this entire
chain.
The last point on this slide I’d raise is that all of these businesses, with the
exception of midstream, are free cash flow positive. So we see significant cash
flow generation out of chemicals, refining and marketing and we use that free
cash flow after sustaining capital to fund growth in midstream.
Speaking of midstream, as I mentioned this business consists of our NGL,
transportation, DCP and PSXP business. By 2018, we plan to more than double
the 2014 EBITDA and excluding DCP only 20 percent of the EBITDA is exposed
to commodity prices. We’ve made good progress on the NGL fractionator project
down at Sweeney. It’s now over 70 percent complete. We also advanced the LPG
export terminal due to startup in the fourth quarter of 2016.
We acquired a terminal in Nederland, Texas, the Beaumont terminal, and it will
create a number of optionalities for us and we would expect several new pipeline
connections to move crude and products in and around the Gulf Coast. We’re also
planning to be able to move crude from the Bakken field to Illinois and then on to
Beaumont and other US Gulf Coast locations. And to fund this growth we use
free cash flow from our other segments and of course PSXP.
The next slide really shows the estimate of our MLP qualifying EBITDA that we
have today and the projects that are in flight. So in total, starting on the left-hand
side of the graph, you can see that we have about $700 million of EBITDA
currently at Phillips 66, $300 million in PSXP with $400 million at PSX. Coming
across the graph we have around $250 to $300 million of refining logistics that
are droppable today, so these would be assets that are inside the fence line at the
refineries. We are building the frack and the LPG export facility at Sweeney.
We’ll generate $400 to $500 million of incremental EBITDA. And then the last
part, the $900 million are the additional assets that we will be building that come
from around a $2 to $2.5 billion capital program annually. These would be things
like the pipeline that runs from North Dakota down through the central part of the
country. It contemplates building a second frack at Sweeney, a condensate
splitter, potentially a pipeline out of Eagleford into Sweeney and then connections
in and around Beaumont.
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The bar on the right, you can see that we expect to have $2.3 billion of EBITDA
that would be MLP qualifying by 2018. And of that $2.3, $1.1 billion will be -we expect to have in the MLP. So within PSXP we would expect to have $1.1
billion with remaining $1.2 of inventory left to drop. Of the $1.2 billion we would
expect about three-quarters of that to be EBITDA that would be available at PSX
and another $300 million of the $1.2 would be projects that are in flight.
Looking at Phillips 66 Partners growth and what that means, Partners, the
business model there is providing a stable fee-based business model, consistently
growing cash flows. We expect a 30 percent distribution CAGR through 2018 and
as the GP owner and as the current owner of assets that we expect to drop into the
MLP, there’ll be significant cash flow generation for PSX shareholders. So we
expect $8 to $10 billion of cash flow out of the MLP through either asset sales or
distributions and IDRs.
Moving onto our joint venture, DCP, one of the largest gas processors, NGL
producers and NGL pipeline operators in North America, an important part of our
business. We like DCP. We think the NGL value chain will be attractive over
time. And DCP currently is focusing on running their assets safely and reliably.
They’re targeting a 20 percent reduction in their corporate costs and have cut
capital. We’re working together with our JV partner to address the DCP credit
considerations and capital structure and also working on strategic alternatives
around DCP.
CPChem is our 50/50 joint venture with Chevron. It has assets globally but
primarily centers of production are in North America and the Middle East. It’s
underpinned by advantaged feedstocks and CPChem is self-funded. It has a very
strong balance sheet and you may have noticed that we issued about $1.4 billion
of debt or of notes last week with plans of distributing that cash 50/50 between
Phillips 66 and Chevron.
The roughly $6 billion US Gulf Coast petrochemicals project is over 40 percent
complete today, on schedule for a mid-2017 startup and this would expect or we
would expect to increase CPChem’s US olefins and polyolefins capacity by about
30 percent and EBITDA by about $1.5 billion.
Refining continues to be an important part of Phillips. It generates around $1.5 to
$2 billion a year of free cash flow after sustaining capital. It’s a real big cash
generation for the company. It also provides a platform for midstream growth. So
a lot of our midstream growth projects are built around existing facilities and their
brownfield developments. We have a regionally diversified refining portfolio. We
operate in every PADD and have assets across the US. The business, the strategic
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focus here within refining is not on increasing capacity but rather improving
returns through optimizing our crude slate, increasing refined product exports and
improving yields.
In addition, we’ll take steps to improve returns in refining by rationalizing our
portfolio. You may have seen in the fourth quarter we sold our interest in the
Melaka Refinery in Malaysia. We also sold an interest in refined product and
crude terminal in Ireland called Bantry Bay and still have interest in rationalizing
our portfolio in refining further. We’ve also reduced capital employed in this
business over the last two years.
The last segment is marketing and specialties and it obviously consists of our US
marketing business, which is a wholesale model. We have around 8,500 - 8,600
branded franchisees that market under the Phillips 66, Conoco and 76 brand. We
have an international marketing business which is more of a retail or dealer
network where we operate in Germany, Austria and Switzerland and those 1,500
units are branded under the Jet or Co-op brand. And then in addition we have a
specialties business. We have a growing lubricants and specialty coke business,
needle coke business and also a lubricants business that both works in finished
lubricants but also base oils. You can see EBITDA here, very stable, and also
generates significant returns. So we’ve seen returns here north of 30 percent in
2014.
Our financial strategy remains unchanged. Both PSX and PSXP are investment
grade with plenty of liquidity. We continue to target a 20 to 30 percent debt to cap
ratio at the C-Corp and debt to EBITDA ratio of about 3.5 times at PSXP. We
utilize cash from operations. Our balance sheet drops into PSXP to fund our
capital program while enabling dividend growth annually and continued share
repurchases. And over the 2014-2016 timeframe we expect about 60 percent of
our capital to be allocated toward reinvestment in the business and 40 percent to
distributions.
Our 2015 capital program is largely directed at midstream growth. So as you can
see in the chart on the left, about 65 or 70 percent of our capex is going to
midstream. This is the biggest capital program we’ve had. We would expect this
to be our peak capital year as we kick start our midstream program and expect
2016 capital to be in the $3 to $4 billion range. Most projects that are shown here
are in flight, largely anchored by fee-based contract. And then you can see about
25 percent of our capital goes to sustaining, of which about $900 million is
refining sustaining capital.
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2015 Citi Global Energy and Utilities Conference
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Clayton Reasor
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An important element in Phillips 66’s value proposition is our return of capital to
shareholders. Since the spin in the middle of 2012, we’ve returned over $9 billion
of capital to shareholders, $2.5 billion in dividends and $6.6 billion in share
repurchase. We plan to grow dividends annually at double digit growth rates over
the ‘14, ‘15 and ‘16 time period. You probably saw last week the latest quarterly
dividend increase was up to $0.56 a share. That’s up 12 percent, our fifth increase
since the company was formed. And through share repurchases and an asset
exchange we’ve reduced our share count by about 96 million shares or 15 percent
of the company since August, 2012. And as long as we continue to trade at
discount to intrinsic value we expect that we will do significant share repurchase.
This is my last slide. I hope you can see we’ve been fairly successful at executing
our strategy, our focus on midstream and chemicals growth, capital efficiency and
returns in refining, ongoing growth in distributions to shareholders and we build
this on a culture of operating excellence and a high performing organization. We
expect to see more than 30 percent growth in EBITDA from the expansion in
midstream and chemicals. And as a result of growing these higher value
businesses, we expect multiple expansion to occur as we shift our portfolio to a
more stable, high growth and higher value business.
We have a strong balance sheet. We want to keep it and it provides us with the
capacity and flexibility to fund growth in distributions through the volatile
commodity price cycles we expect. We’re confident and excited about
opportunities that we see in front of us and look forward to answering any
questions you may have. Thank you.
Faisel:
Thanks, Clayton. And I also forgot to mention that Kevin Mitchell is here too
from Phillips 66. Kind of going back to your last comments on the strong balance
sheet and the commitment to the dividend and share repurchases, you’re sitting on
a large amount of cash, roughly $5.5 billion. How do you deploy that cash in an
efficient manner over a period of time and how much cash do you think you need
to hold on the books to keep the business going?
Clayton:
So to answer your last question first, maybe the easiest, we probably need $1.5
billion to $2 billion dollars of cash just to maintain liquidity in the buying and
selling of crude and products that we’re involved in. So we’re probably carrying
$3 to $4 billion dollars of excess cash today. We’ve been fairly clear at saying
you should expect us to allocate capital on a 60/40 basis between reinvestment
and distributions. That’ll happen over time. We had entered 2015 a little less
optimistic about the performance in our refining business and didn’t expect to see
the margins that we’re seeing right now. So we’re generating quite a bit of cash
that maybe didn’t expect to see. But I don’t see us rushing out to either go out and
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buy something to use that cash or to do one big block of share repurchase just to
move cash off the balance sheet. We recognize we’re probably holding too much
and over time we would expect that number to work down to lower levels.
Faisel:
Is the way to think about it as the refining business keeps outperforming your
guys’ expectations the cash will build probably at a faster pace than you would
have expected?
Clayton:
I’d say that’s true and obviously depending on there may be opportunities in the
midstream space that come about that we haven’t seen as yet. But if there are
midstream opportunities in the M&A space, that cash could be helpful in that
environment.
Faisel:
I do want to keep the mics open for anybody else who wants to ask a question.
Otherwise, I can always keep asking. Go ahead, please.
Q:
Sure. Could you just give us some sense of the EBITDA multiple that you’re
creating your new growth capex projects at? Sweeney, LPG export, I mean how
should we sort of think about...?
Clayton:
Yeah. It’s around six times. So, the LPG export facility and the frack, the first
frack at Sweeney, those are going to be built somewhere $3 - $3.25 billion. And
then they’ll generate four to 4.5 times. So we think about building these things
around 6 times and selling them at 10 times.
Q:
Got it. And what was the drop down multiple that was used for the latest pipeline
transaction?
Clayton:
So the Sand Hills and Southern Hills Pipelines were dropped at around 10 times.
The Explorer Pipeline was a little bit less than that because of I think there were
some tax questions or not questions but there were -- it was part of a taxable entity
so it didn’t get the same multiple as Sand Hills and Southern Hills received. And
but in total the drop was I believe 9.5 times.
Q:
Thank you.
Q:
You recently did debt at the CPChem level and you said you want to grow
capacity there by 30 percent. So are you interested in buying chemical assets on
the market such as buyers or if you could comment on that.
Clayton:
Sure. I think when we look at expansion in chemicals we’ll probably have higher
returns through organic investment versus M&A. CPChem has a very strong
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olefins and polyolefins business. We have proprietary technology. We have good
locations. We have a strong marketing organization and don’t really think we
need to buy anybody to expand our olefins and polyolefins business. We are
considering what the next step is after the cracker that we finish in 2017. Whether
or not there will be a second cracker post-2020 is being reviewed now. But there’s
really no plans for M&A within CPChem at this point in time.
Q:
Hi, just to continue on the M&A theme, what sort of opportunities would you be
interested in or looking for in the midstream and other sides of your business
besides CPChem?
Clayton:
Sure. So we would, you know, when we think about M&A opportunities within
midstream, we would first look at assets or companies that would complement our
existing positions. So you think about right now we have a pretty substantial NGL
gathering and processing through DCP. Of course we move a lot of the Y-grade
through Sand and Southern Hills fractionation business and export business on the
Gulf Coast. So assets that we could bolt on to that existing infrastructure could
make sense for us. We probably approach it from more of a complementing the
existing portfolio versus stepping out into a new region or a new business.
We also would look at crude oil pipelines and terminals and then refined products
pipelines and terminals that we could use to supplement or complement our
existing refining logistics network. One of the benefits we see when we do build
or buy pipes that are either going into or out of our refining system is then you
also raise the profitability of those manufacturing facilities. So not only do you
have a midstream asset now that’s generating EBITDA that can be dropped into
the MLP but also you’re strengthening the refining business.
The last element I would say is we’re probably looking for assets that are more
fee-based than commodity price exposed. But we wouldn’t be adverse to taking
on that exposure if the numbers were compelling. Obviously we would want
anything we would do to be accretive to either PSX or PSXP.
Q:
Quick question on DCP and DPM. In terms of the assets that sit at DCP, LLC
today versus those at DPM was there any kind of guiding or can you give me a
sense of kind of the guiding strategy or approach in terms of what was dropped
down versus what wasn’t, whether in terms of commodity exposure, kind of asset
type or any other characteristic? Thank you.
Clayton:
In the past the assets that have been moved to DPM from DCP, LLC have been
largely the assets that have a lesser amount of commodity price exposure and kept
more of the commodity price exposure at LLC.
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Faisel:
Go ahead.
Q:
Can you just talk a little bit about DCP and its credit rating and what your
thoughts are around that, if you want to defend investment grade there and would
you ever put more equity into that business to help with the rating?
Clayton:
Yeah. We were disappointed to see the loss of investment grade credit at DCP. It
was not something that we would’ve chosen to do. I guess we would’ve preferred
to put capital into DCP rather than lose IG. This is a joint venture and all
decisions made there have to be with unanimous consent and so that option of
putting capital into it wasn’t really available to us. We’re working with our
partner now to find a way of I guess getting DCP’s capital structure fixed so that
it can go back to the growth that it had been developing over the last two or three
years.
It’s a very good business. They’re number one or two in every basin that they’re
in. The capital structure needs to be addressed and it’s something we’re doing
with our partner right now and I would expect that we would have something to
say about how that’s going to be, what our approach is and how DCP’s capital
structure will be fixed going forward within the next couple of months. So
sometime this summer you should expect to hear something.
Faisel:
Go ahead.
Q:
Could you also talk about some of the hedging strategy between DPM and DCP
for NGLs?
Clayton:
Yeah. Typically if there were POP contracts that were at DPM they were hedged
at LLC. And as part of this restructuring that we’re going through right now
between DCP, LLC and DPM, that commodity price exposure will have to be
considered in whatever solution we come up with. But the idea is to keep
commodity price exposure off of the MLP.
Faisel:
Then shifting back to refining for a second, in your forecast to 2018 you’ve got
refining cash flow sort of growing very slightly over the next few years. Can you
talk about sort of the quick hit projects that you guys are working on to sort of
boost margins and cash flows over the next few years?
Clayton:
Sure. I guess the one that has probably got -- well, there are really two areas that
we’ve spent money in refining on discretionary projects. So in 2015 we’ll spend
somewhere $100 to $200 million dollars in refining and discretionary projects.
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They go in two places. First would be the logistics side. So it’s rail racks or
pipeline connections that would allow us to get crudes into the refineries that we
currently can’t get in. It also could be truck unloading.
We just completed a rail unloading in our Ferndale refinery in Washington and
also in Bayway Refinery in Linden, New Jersey. So those projects are completed.
Those kinds of projects around refining logistics, you could classify them as
midstream I guess but right now they’re inside of the refining capex.
Probably the more dollars are being spent in allowing us to run lighter, sweeter,
lighter crudes. So we built or we’ve repurposed a fractionation unit at our
Alliance refinery to allow us to run greater amounts of the Eagleford crude. There
are things that we’re doing at other refineries to increase light ends compression
and the front end of the refinery around the crude units that would allow us to run
lighter, sweeter crudes without bottlenecking the crude farther down the facility.
So the projects are typically let’s say $30 to $50 million, so they’re relatively
modest in size. They have very fast payouts because you’re never sure how long
the environment that we’re seeing is going to last. But they’re not around
increasing capacity of the facility. They’re more directed toward ability to run
cheaper feedstocks or more economical feedstocks at the facilities.
Faisel:
So along those lines of running more Eagleford through Alliance or trying to
improve the amount of lower 48 crude that can go into some of your other
refineries, if you look at your entire system as a whole, what’s the flexibility to
consume more domestic light versus what you could import at competitive prices
too?
Clayton:
Yeah. So we probably import somewhere in the range of 100,000 to 150,000
barrels a day today of light sweet crudes. It’s primarily at Bayway. But from time
to time if LLS prices get very strong we may back LLS out and run light sweets.
So there’s a piece there that we would look at. You could continue to push out the
imported light sweet barrels and take in domestic assuming those differentials are
wide enough to cover the cost of transportation.
Once you do that, then you start substituting some of the light sweet crudes for the
medium sours and there we would need to see larger discounts than we’re seeing
today to make that work. But there are probably 200,000 to 300,000 barrels a day
of substitutions that could occur between medium sours and light sweets on top of
the imported sweet crudes that we have today.
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Faisel:
And then can you talk a little bit about what we’re seeing for demand across the
country? Is there anything that you can sort of -- that we can glean from the data
that you guys get from your wholesale business and from your marketing business
that tells us that we’re going to have a strong summer driving season? Or is the
jury still out?
Clayton:
No. We’ve been surprised. We’ve seen gasoline demand increase. So we don’t
have retail stations but what we do have is these franchisees where we can credit
card information and we can look at same store sales. We look at that data. Then
we look at the data that everybody has access to, some of the public data that’s
out there on gasoline demand.
So, we’re seeing somewhere in the range of one to two percent increase year over
year, so ‘15 versus ‘14. And ‘14 was higher than ‘13 and ‘13 was higher than ‘12.
So we’ve been a little bit more pessimistic on gasoline demand in the US. We’d
expect flat to declining gasoline demand. We’re not seeing that.
Elasticity of demand, we felt you don’t really see that happening as quickly as
we’ve seen it in the first quarter. But I would say gasoline demand is higher than
we’ve expected. Diesel demand has lagged a little bit. I think diesel demand in the
US is probably tied more toward industrial production and maybe there hasn’t
been the growth in industrial production that we’ve seen in maybe driving habits
or people actually driving more versus flying. But for whatever reason, we’re
seeing an uplift in demand in gasoline that is in a one to two percent range.
Faisel:
And then lately we’ve -- given the issues in California with downtime at some of
the refineries, cracks have been extremely high. Can you guys capture most of
that crack in the facilities you own in California?
Clayton:
Right. So market capture is always the question when you have high market
cracks as how much actually can you get to the bottom line. In a low crude price
environment, it actually helps your cracks; it helps your capture rates because the
secondary product losses are less. So that’s a help. Crude differentials have been
fairly good on the West Coast with refineries being down and that let’s say local
indigenous crude looking for new places to go. So the crude differentials are fairly
wide relative to A&S and product demand is good. So we’re fairly optimistic on
the West Coast that we’ll be able to capture a lot of what the market’s giving us.
Faisel:
And then on the chemical side, it seems like the decline in profitability in
chemicals in the quarter was pretty consistent with the decline in oil prices. Is
there anything that sort of changes that trend or is there -- how you see that sort of
margin evolving in the current crude price environment?
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Clayton:
So we saw 2014 probably peak, olefins, polyolefins margins somewhere between
$0.40 and $0.45 per pound, a number it fell to is somewhere between $0.25 and
$0.30 in the fourth quarter. Actually it’s higher than that now so we’ve seen some
uplift in the chain margin in part due to higher crude prices and possibly in part
due to restocking. So the philosophy during falling markets, buyers tend to
postpone their purchases and draw inventories. Once the bottom is perceived you
might see buyers come back in to restock inventory levels.
So ethylene and polyethylene demand looks good compared to what we saw in
the first quarter. We would expect margins in chemicals to be better in the second
quarter than the first quarter. A lot of this too is going to be driven by overall
economic activity, especially in Asia. And it’s difficult to know what you’re
seeing in the short-term out of the Asian and Chinese markets on petchems. But I
think we’re optimistic that margins will improve from what we saw in the first
quarter.
Faisel:
And then this last question from me on chemicals. With the ramp up of your
facilities in the Gulf Coast and also the ramp up of some of the facilities of other
peers and competitors, I guess where does all this new supply go? How does it get
consumed in the global market?
Clayton:
Well, so obviously in order to maintain utilization rates that we’re seeing right
now you’re going to have to tap into the export markets. Historically that has been
Mexico, Latin America, South America for US refiners, some into West Africa
and Northwest Europe. But the majority has been into South America. So exports
become important or are important and continue to be important. And to the
extent that we are taking market share, we’re probably taking share from
European refiners that don’t have the natural gas advantage or shale crude
advantages that US refiners have. So we’d probably be taking share from those
facilities overseas.
Faisel:
Okay. Clayton, Kevin, thank you very much.
Clayton:
Faisel, thanks very much for having us.
Faisel:
Appreciate it, yeah.
Clayton:
Thank you.
END
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