EOG Resources, Inc. (EOG) Earnings Call Transcript & Summary

Good morning, and welcome to the next session of Citi's Global Energy Conference. It gives me great pleasure to introduce Billy Helms, the Chief Operating Officer at EOG, a position he's held since 2017. And previous to being named COO, Billy was EVP of Exploration and Production, and EVP of Operations at EOG. [Operator Instructions] Feel free to simply send me an e-mail at [email protected]. I'll also receive questions over e-mail and post those as well. So with that, Billy, many thanks for joining us here today.

Thanks, Scott, and thanks to everybody for joining us. We're -- I'm excited to be here and talking about some of the updates in EOG. Everybody is certainly aware, we gave our earnings release last week. And so I'll follow up with some updates. If it's all right, Scott, I'll give just a few talking points here at the first 5 minutes or so, and then we'll go jump right into Q&A. So to start with, we did have earnings release last week, and we're really following through on some of the priorities we've talked about for some time, both on our cash flow and our strategy to maximize our returns. So on our -- we declared a $1 per share special dividend last week. That's in keeping with the strategy of free cash flow priorities that we laid out some time ago. Combined with the regular dividend, we expect to return about $1.5 billion to the shareholders this year. So that's, again, in keeping with the cash flow priorities that we set out earlier. We did shift to our double-premium strategy earlier in the year, and that we expect is going to continue to show improvements in the financial strength of the company. And I think you're seeing that already. We've had the earnings and the cash flow performance this year. The first quarter, we generated a record $1.1 billion of free cash flow. We're also generating the highest returns of our capital that we're investing in our program than we ever have in the history of the company. And we earned $1.62 per share of adjusted net income for the quarter. So again, that was the second-highest quarterly earnings we've ever had in the history of the company. Operations continued to show and see a strong performance. First quarter, we exceeded our oil production target, and we're 6% under on our CapEx target for the quarter so, again, driven mainly by well cost improvements. And then this year, we plan to test several new prospects that -- in our exploration program that give us exposure to a lot of upside. These are very low-cost entry in new exciting plays. And hopefully, over time, we'll continue to lower our decline rate. These are better rock properties -- or have better rock properties. So hopefully, the decline rate will continue to lower in the future to allow us the ability to generate even more free cash flow in the future. So we couldn't be more excited about the future potential of the company than we are today. So maybe with that, Scott, we'll turn it over to some Q&A.

Great. Thank you. Yes, and obviously, it's great to hear the special dividend announcement along with earnings. So maybe I'll just start there, obviously, a lot of questions on the call around it. If you could just provide a little more color on the discussions around why go with a onetime special cash dividend over buybacks. Are buybacks potentially still an option down the road? Or is there a clear preference based on what you're hearing from investors for cash? And if buybacks are still in the mix, kind of how do you evaluate buybacks versus a cash-type special?

Yes, Scott, the way we think about it is we want to have the flexibility to do what's best to maximize the long-term value to the shareholders, so without being, I'd say, bound by a very strict formula that gives us a lot of flexibility to maximize the returns based on what the market conditions are at that time. In other words, we don't want to be forced to grow into an oil market that doesn't need the oil or limited on how we return cash to the shareholders based on what the product prices might be. So it's very much in keeping with the long-term strategy we've had for our free cash flow priorities we laid out several years ago. First is our commitment to a growing and sustainable dividend. So this year, we increased the dividend about 10%, and that's going to generate almost $1 billion in dividends this year, just on a normal dividend. The second thing was continue to strengthen our balance sheet. We paid off a $750 million bond that was due in February. So again, that's in keeping with making sure we have a strong balance sheet to weather the commodity cycles. The third thing was to look at other cash return options for the company. We did do about a $600 million special dividend this quarter. And we look at the balance between -- or the timing between doing a special dividend or a share repurchase. And we feel like at this point in time, with commodity prices rising, the best selection would be do a special dividend and wait until we see the right opportunity in the market to even think about a share repurchase program. And then the fourth thing would be -- for free cash flow would be low-cost property acquisitions, so really bolt-ons that enhance our existing inventory of locations and our activity as well as emerging new plays in our exploration program. So those are the 4 priorities that we've laid out for some time. And so what you see with the specialty dividend is just following through on the priorities we've already stated.

Got you. And then there's also some questions here on the call around the growth strategies for when it's time to grow. You guys have been very clear about what signals you're looking for in terms of when it's time to grow with your OPEC or production capacity, being more fully utilized and inventories normalizing, et cetera. But when you think about kind of what that right rate of growth is given the market conditions, and it now sounds like there's some potential flex in the growth strategy, what factors are you looking at to say we should grow at 8% to 10% versus maybe it's a market we should grow at 5%?

Yes. Yes. We did replace those slides with our now Slide 13 in our deck. It clearly lays out what we're looking for. But first of all, we're not going to grow into a market that doesn't need the oil. And the way we think about that market is, first of all, demand has to recover to kind of the pre-COVID numbers that we've seen before. So we're on our way there. Hopefully, we continue that trend. The second thing is we want to see global inventories pull down to the pre-COVID levels or normal levels. And again, that's occurring, we think, but we're not quite there yet. And then the third thing would be keeping an eye even more closely on OPEC spare capacity. We want to see that pull down to normal levels. And we think that's occurring, but it's not quite there. So as we go into each any given year, we'll always look at those fundamental 3 things. And we've got a very sophisticated, very strong macro team that's keeping track of where we are and trying to help understand those issues. So we do a lot of our own internal forecasting to try to help guide those evaluations. So as we approach any given year, we'll look at those to determine what level of growth is needed for that market outlook. So we could be anywhere between 0 where we are today to the 8% to 10% number. Now clearly, if all 3 of those conditions exist and the world is clearly indicating that they need more oil then the right number for EOG to grow is somewhere in that 8% to 10% number, that helps maximize our free cash flow potential and our earnings growth over time. So that, we feel like is the right optimal level for us. We're now growing more than that, [ can destroy some efficiencies ]. But that's kind of the optimal level. So it could be anywhere between 0 to 8% to 10%.

Got you. And then thinking about the double-premium strategy now, if you look at the distribution of activity in '21, you're still very focused on your bellwether assets, your Delaware and your Eagle Ford positions. If you start to grow next year under the double-premium strategy, does the activity set in some of the other plays start to pick up? Kind of, how do you think about the mix of investment across basins within the context of this double-premium strategy?

Yes. Thanks for that. I think just to maybe clarify the double-premium strategy a minute. It's the same exercise we went through back in 2016 when we shifted to the premium strategy. At the time, we were drilling only wells that kind of met that hurdle. So we thought, well, why aren't we drilling anything but the wells that would generate those kind of returns? And then this last year, through the pandemic, we recognized that all the wells we were drilling at that point in time were essentially achieving this double-premium strategy. In other words, at least a 60% rate of return at $40 oil flat. And we thought, well, we've got a large number of those wells that meet that inventory requirement, so why aren't we drilling anything else so, hence, the shift to this double-premium strategy. And we think you're starting to see the benefits of that reinvesting capital, this really high rate of returns, roll through our financials. So that's largely in keeping with that. Now looking back -- and also, you talked about our inventory, how we're investing largely in our bellwether plays, Eagle Ford and the Delaware Basin. And what I would want to do is give you some color around that. So the Eagle Ford has been growing for over a decade. It's been a great revenue growth and value growth for the company. And -- but that's a more mature play. It's been around for over 10 years, and you're seeing activity slow there a little bit. In the meantime, you've seen the Delaware Basin come on. Early in its life, we were delineating the play, understanding spacing patterns, and now we're more into an active growth phase with the Delaware Basin. So that's taken on a larger role in the company. In the future, you'll see maybe a little bit more incremental capital in other plays that are emerging. We're seeing more activity this year in the Powder River Basin than what we had in the last couple of years. We hope to see that continue based on the performance we see this year. And we've built out some infrastructure there. So that's kind of the way that plays evolve. You test and delineate these plays and you build out an infrastructure to lower your cost basis and grow them in that way and then, maybe a little bit later down the road, what might be something like the Dorado play. So you've got a number of these different plays, which is the beauty of having a decentralized organization, working on multiple plays at a time, is that growth can move around, capital can move around, where you can best maximize your returns and your growth potential.

Got you. And then just thinking about your activity in the Northern Delaware. One, did the regulatory environments spur you to accelerate some of the permitting and the direction of capital to the play this year? Two, how has permitting progressed recently? And how are you thinking about the overall regulatory environment, particularly on federal land? We get a lot of questions on sourcing and disposal of water, uses of water, air permits, wild life, et cetera.

Sure. So for the Northern Delaware Basin, as I mentioned earlier, this is kind of a natural progression in the maturity of our plays. The Eagle Ford used to command a lot more activity and capital. And now it's kind of moderating some as it's a more mature play, and the next growth engine was really the Delaware Basin. And you're seeing that activity shift from the Eagle Ford to the Delaware Basin. And so that's really the reason for more activity in the Delaware. It's not related to the permitting. We did have an active permitting effort going into this change in administration just due to the uncertainty and wanting to protect our activity level there. So we're very active on that front and have secured enough permits to be able to actively develop our program there. And then since the Biden Administration's come into play, and we worked with them real well through that change, we're also -- we're seeing our permits continue to come in. And I think there's been -- I wouldn't say it's back to normal, our activity back to normal on permitting federal land, but I think there's always nuances you have to be able to navigate with the change in administration and regulation. Some of that color on that might be things that require more approvals on access to the surface that require a little bit more time than they did before, but they're still going through the process and still getting approved. Other things, because of the 60-day moratorium, their work -- the BLM is working with us really closely to prioritize our near-term needs to make sure they process those permits more quickly. So working again with the regulator to make sure that we meet their needs and we get the permits we need for our activity level has played out very well. So it's part of that building relationship with the teams in place and working through those issues. So that's kind of where we see that go. But I think Biden has been very clear on his efforts to -- he wants to maintain existing activity on valid leases. So everything we're doing is in keeping with that. Now issuing new federal leases, we haven't seen any effect of that on our business, and we'll keep monitoring that situation if it does happen. But right now, we have all the federal leases we actually need to execute a program we have. So that's how we're thinking about that. And I guess on the environmental front, as far as any new issues on air permitting and those kind of things, I'd say we're well ahead of the curve. We anticipated the need internally to continue to improve our performance on the environmental front. And so we've been well ahead of any regulation that's been in place for some time, whether it's a federal regulation or any state regulation, again, trying to set the standard for the industry. And so the last year, our gas capture rate was 99.6% of the gas we produced, we put to sales. So that means we only flared 0.4% of the gas we produced. So already pretty close to 0. So as we set any goal every year to get better, and we're already pretty close to 0, that's what led us to adopt the World Bank initiative of no routine flaring by 2025 as we could see a path or line of sight on how we can get there. So that's in keeping with that. So I think as far as the environmental front and the impact of the new administration on us, we're already well ahead of those issues internally just driven by our continued need to get better at what we do, in our performance. So we've seen no issues with adopting any new regulations that come out of the new administration.

Got you. One other issue that's been rising in terms of investor questions and concerns is inflation. Obviously, we've seen steel move a lot. I think you guys are in a relatively good position there. But as we start to think about 2022, what are you guys seeing in terms of inflationary pressures? How are you guys going about trying to mitigate those pressures as you think about purchasing consumables into next year, service contracting? Give us some color on the pervasiveness and kind of magnitude of inflationary trends and your ability to offset it.

Okay. So certainly, I think this year, we're very confident we can achieve the 5% well cost reduction target that we put in place. It's really on the back of 15% well cost reduction we achieved last year. The way we're doing that is we currently have about 65% of our well costs locked up in either agreements or self-sourcing ourselves. So some of those agreements we have in place for our major service providers actually extend through 2022. So we already have a large part of our well costs locked in for 2022 as well. You mentioned tubular, certainly, there's been a rise in steel prices. We saw that coming. We purchased pretty much all of the tubular needs we needed for this year's program last year when prices were relatively low. And we'll be looking to continue to add to that program as we go into 2022, looking at how we can do that in an opportunistic way. We have great relationships with the tubular manufacturers, and we'll be taking advantage of that on a go-forward basis. Some of the service costs increases that we are seeing inflation pressure on would be anything naturally that is petroleum-based, so like fuel, diesel fuel, that's going up. Chemical costs are going up. But that's a relatively small percentage of our well cost in general. And then on top of that, we're seeing some pressure on the cementing side and maybe the wireline side. But again, those are areas where it's a fairly small percentage of our overall well cost. So the way we're going to offset those small percentage increases in their overall well cost is continue to drive efficiencies in our business by drilling wells faster and cheaper. And of course, that's a relatively smaller piece of the puzzle today than it was years ago. The bigger piece is on the completion side. And so the way we're attacking that is with technologies like we rolled out here at the earnings call, in our super zipper technique. That lends itself very well to the 5 electric frac fleets that we have in our capacity today. And it really is -- it helps lower the cost quite a bit in well -- in packages of 4 wells or more. And so we're shifting a lot of our activity to those kind of packages on a go-forward basis. It helps us reduce our drilling costs simply by less rig moves and more greater efficiencies on a single pad, but it also benefits widely from the adoption of this new super zipper technique. So those are the kind of things we're doing to try to mitigate the inflation cost that we're seeing is just through efficiency gains and new techniques to lower our cost.

Got you. And how widespread could the super zipper completions will become within your operations?

Obviously, we can't do it everywhere. As I mentioned, we need to have at least 4 wells on a pad, but we're moving to a greater degree of that. I think, on a go-forward basis, each of our plays is trying to utilize that where we can. But I would say this year, it might be something about half of our inventory or wells we complete this year might be able to use that technique. And then hopefully, we see that increase in the future.

And peers have talked about a couple of hundred thousand dollar a day kind of well cost improvement, $200,000, $300,000. Is that...

Yes, that's probably in the right range, yes.

Got you. And so thinking back to the broader inflation trend, obviously, with super zippers and just your scale and your purchasing power, you can mitigate a good bit of inflationary pressure, is there a certain level of kind of, call it, input cost inflation, whether that's consumables or service cost, that you feel like this is kind of how much we can absorb and anything above that becomes a little more problematic? Say, like 5%, that's something we could offset in '22. But if it gets to 10%, then that's going to become a little more difficult. Kind of how do you guys kind of think about those thresholds?

Yes. A lot of it -- so that's a good question. I think we're looking at a lot of those things now. And it's hard to pin down a percent on that. All I can say is that it's part of the active program we go through every year. As we evaluate the next year's program, we look to see what products and what services we need to secure for that upcoming year's program, how do we leverage some of our relationships we have with vendors to make sure we lock up some of those costs and provide them some security on activity levels that they need to run their business. And so we look at those 2 things. And then the rest of it, we try to secure either through self-sourcing opportunities. That's one of the things we've done over time. We've been self-sourcing a lot of our sand, as you know, for many, many years. Through our reuse program, water recycling program, we're starting to see the benefits of that payoff by lowering our water cost to the well. So there's lots of things we can do to try to address those situations individually. So it's hard to say, a given percentage, it depends on how much we have secured and what the technology we have. But I guess I'm saying that I'm very comfortable we can keep costs in a downward pressure even going into next year.

Great. [Operator Instructions] Moving on to the A&D market. Obviously, it's been a pretty healthy market. But your thoughts around securing acreage, particularly within the hybrid plays that you guys are attacking in the new exploration plays. Do you feel like you generally have the acreage footprint you want? And how active are you guys kind of in the A&D market to build those out today, particularly just in the areas that are more exciting?

Yes. Just in talking about that, our focus largely has been on the smaller bolt-on acquisitions. And those really are in 2 different ways, the way I think about it: one is in our existing active plays, and we've been very good at being able to accrete acreage in those plays; as well as our new exploration plays, and really, we're not finding a lot of roadblocks and being able to accrete acreage in those new exploratory plays. It just takes time to put the acreage position together that we want based on our understanding of the geology and our delineation efforts. So those will come along with time, and we'll be able to talk about those more based on success at the time. But on the M&A market, that's largely what we're focused on. We're certainly aware of all the large deals that have been announced, and we've certainly evaluated everything that's been out there for the last year or 2. And we've largely been on the sidelines. We look at these M&As maybe a little bit differently than some of our peers and that we really understand the accretive dilutive math and how that works on a cash flow and earnings per share basis. But we also look at the inventory the acreage would bring to us and is it competitive with what we're drilling today. If it goes to the end of our inventory and only adds length to our inventory, we don't need more, we want to get better. And so it needs to compete with the best of what we're drilling today to go to the front of our inventory list. If it doesn't do that, then we'll pass because we see lots of opportunity to continue to add to the front end of our inventory through our exploration efforts. So that's the way we simply think about M&A activity. The last big one we did was back in 2016, and we're very happy with that one, and we'll keep poised and with the balance sheet strength to be able to do that in the future, if we see that opportunity arise.

Got you. I do have a question coming in on your strategy. The question is, can you just provide a little more color around your preference not to put forth a kind of reinvestment formula and kind of a cash return formula like some of your peers have had versus the flexibility provided by your current strategy? Is there a risk that investors won't capitalize any incremental cash return to the same degree if you would put forth a formula?

Certainly. We think we want to look at what's best in the long term for generating value for our shareholders. And we think the flexibility that we need to be able to do that based on market conditions is very important. We don't want to be locked into a formula that says, in any given year, we're going to grow oil production into a year of maybe a 5% or something or we're going to be exercising a stock buyback program over the next 3 years will -- when the oil prices may turn against you. So the flexibility to be able to make those decisions to maximize the value at that given time back to the shareholders, we think, is the right strategy. We think the premium strategy, now the double-premium strategy, that we've adopted gives us the cash flow and the clear balance sheet strength to be able to do those kind of options. And we've just demonstrated our commitment to do that with the special dividend we just declared. So I think we've been saying all along what our 4 priorities were for returning cash to the shareholders. And we're committed to those 4, and we've just followed through on that. So we'd like to maintain the flexibility to be able to do what's best at any given time.

Got it. Then another question here. Beyond inflation, are you worried about any physical kind of supply disruptions of critical kit that could actually cause you to defer some activity as the economy recovers?

So I guess that would mean -- just clarifying that, I guess you're thinking about services like drilling rigs or frac fleets or those kind of things?

Yes. I mean there's not clarity in the question, but I would assume on a -- I know people source wellheads from China, for instance. If there's backlog on shipments, are you seeing anything that would cause you to say, well, we just can't do our current level of activity because there's physical shortages in the marketplace?

Yes. Well, for a company that is -- has the activity levels and the history of that, that we have, we certainly try to get ahead of that as best we can. And just like this year, we purchased our tubulars this year -- or for this year's program last year in anticipation of shortages and rising prices going into the year. We do that every year going into the next year's program. We'll be looking at that as we approach that time. At this point, I'd say we're not seeing any pinch points, but I think there certainly will be some for industry. For EOG, we've been active for a long period of time. We've had great relationship with many of our vendors and service providers that they value as well just as we do. And so those relationships help us both to weather the ups and downs in the cycles. For industry in general, I think there could be some shortages coming up as the activity increases. A lot of the activity has been increasing on -- based on the private operators' desire to increase activity. And so I think you're going to see some of that ebb and flow based on their ability to continue to secure services and materials to execute their program. But for EOG, we're pretty comfortable with what we have and what we see going forward.

Got you. Another one has come in on the base dividend. And what is your overall view on how to grow the base dividend? Is it a certain percentage of cash flow at a normalized crude price that you pay out? Kind of how do you guys think about the growth rate of the base?

Yes. That's -- so that's our #1 priority for free cash flow is to have us very sustainable and hopefully improving dividend over time. And just to remind everybody, we've never cut our dividend in our history. And it's increased about 146% since 2017. So it continues to be our first priority for that. And I think our Board looks at it every quarter and evaluates what is the right level of increase that the shareholders need and deserve based on the outlook for our industry and the commodity outlook. This year, we increased it 10%. So it's already up to $1.65. The Board will look at that each quarter as we go through the year based on the market conditions and determine what the right level of the base dividend needs to be. But definitely, the commitment is there to have a very sustainable and hopefully a growing dividend in the future.

Got it. And then some of your efforts on the ESG front, you guys have a goal of eliminating routine flaring, I think it's by 2025. And obviously, you guys have done some innovative things on the flaring front. But as we think about you're striving to meet that goal, is there any meaningful incremental capital costs associated with it? I know you have a little bit of environmental spend within the budget. Is that kind of -- does that spend stays more or less flat? Or is there a ramp on that ESG spend to get there?

So yes, let's talk about -- a little bit about our environmental performance and ESG. This last year, the reason we adopted the net zero or the net -- no routine flaring goal or the World Bank initiative in 2025 is because last year, our gas capture rate was 99.6%. In other words, we only flared 0.4% of the gas we produced. So we're -- as a company that strives to get better every year, we're already very near 0. So we have a clear line of sight on how we can get there. Part of that is just better operation focus. But part of it is also the adoption of new technology and new innovation. One example of that is our closed-loop gas capture project that we've talked about where basically, it's used to address third-party midstream interruptions in downstream of our well production. When those occur, typically, a well goes to flare rather than shut in. What we've designed is a way to divert that gas. Instead of going to flare, it goes back down hole into an existing well to be later produced when that interruption gets remedied and we can return the wells to production. So that's one way we can achieve our Zero Routine Flaring by 2025 is the adoption of a new technology and the rollout of that through our operations. Then longer term, so we -- so each year, we set annual goals to reduce our emissions and get better. So that's very short-term goals. And those are things that go into our compensation. So they are very well aligned with the way we manage our business. We have near-term goals, like the World Bank initiative, the Zero Routine Flaring by 2025, as you mentioned. And then we have a net zero ambition in 2040. So that's going to involve really to -- focus on 2 things: one is continued reduction in our own emissions from our operations, and then it's going to involve some new technology that we're investigating. So we formed a new sustainable power team that looks at ways to improve our efficiencies of our operations but also looks at these bigger initiatives that will include things like carbon capture. And so that will definitely be part of the equation, we're evaluating those options today, and probably some other new technology that we've had yet to put our hands around. So we're evaluating all those things to continue to improve our environmental performance. But at the end of the day, we know that in the next several decades, oil and gas is going to be a critical part of the fuel needed to power industry in this country and in the world. And our commitment is to be part of that solution by being a low-cost operator and also a low-emissions operator.

And you mentioned your 2040 goal. How do you think about the pathways to get there? Obviously, it's a long time away and technology is evolving. The pathways themselves could change over time. But we start here at least one other peer talk about buying offset credits. Is that kind of the last resort? Will you pursue these different pathways? And then whatever you can fulfill yourself or reduce yourself, you end up buying offset credits. Is that kind of core to the plan? And then any other color on some of these technologies that can really make a difference for you.

Certainly. I think the offset credits have a place. But for us, it's kind of the last thing we think about, mainly because everything we do, whether it's reducing our emissions like this closed-loop gas capture, maybe the solar project, the hybrid solar natural gas compressor project we put in New Mexico, was an effort to try to reduce our emissions but also lower our operating expense. So it actually generates a return. Everything we invest in is going to be return-focused. So offsets would be the last thing we consider in that line because the returns just aren't there, at least today. So maybe it's part of the solution down the road, but we're looking in other technologies that really make a bigger dent in our overall emissions and our goal towards a net zero ambition. And those will be things like carbon capture or other technologies that we're looking at evaluating. And then maybe at the end of the day, there's some form of credits or things we look at to that last little bit, but it will be the last thing we think about.

And how do you guys think about carbon capture? Is it something that you look to utilize in conjunction with EOR program? Is it something that you'd invest in third-party projects that would then create an offset to your own operations? Is it a point source capture and sequestration, kind of pure sequestration project? And how do you guys think about approaching CC?

So we're -- first of all, I'd say we're looking at trying to apply those opportunities to our existing operations. That's the first look. We're open to lots of ideas and evaluating lots of ideas today. But we recognize the biggest impact we can make is to try to capture the carbon and the emissions from our existing operations. So that's probably the first thing we think about. But we're going to be looking at all kinds of things. But -- and it will be on either a EOR or just carbon sequestration and capture and sequestration. So it will be evaluating all available technology and opportunities.

Got you. And then lastly, just on how management compensation is tied to ESG metrics. It's become a point of focus, obviously, for investors. So just some quick comments on that front.

Certainly. All of our ESG metrics are important. We've been -- we've had those tied to our compensation for a couple of years now, I guess. And safety is a big part of that, making sure we meet or continue to improve our safety metrics every year. Our environmental performance, we have certain targets set out to try to hit every year, whether it's reducing emissions, reducing the amount of freshwater we use, increasing water reuse, those kind of things in the company. As I mentioned, everything in the company is driven on improving our performance. So whether it's the wells we invest in or improving our environmental or safety performance, it's all tied to our performance and ultimately to our compensation.

Excellent. Well, we've run out of time. But Billy, thank you very much for joining us today. It's been a very informative session. So very much appreciate your time and insights.

Well, thanks for your interest and thanks for your support. And I'll just leave you with one -- maybe one final note. The company's performance continues to improve, and we've never been more excited about the future of the company than we are today. So thanks again and everybody, hopefully, stays safe.

Thanks again, Billy. And for the audience, up next is our keynote on hydrogen. So please tune in to that. Thank you, everybody.

Thanks.

Thanks, Billy.