U.S. Silica (SLCA) 31 Jul 202020 Q2 Earnings call transcript

Greetings. Welcome to the U.S. Silica Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Instructions]. [Operator conference this being is note, recorded. Please now your host, would like to to over conference the Mr. turn I Arjun Sreekumar, Manager of Treasury and Investor Relations for U.S. Silica. you. Thank

begin. may You

Thanks. and XXXX Officer. thank U.S. and today Chief are me Good Financial joining Chief call Executive morning for Executive Vice Shinn, us and Officer; on you the Silica’s Merril, conference earnings for quarter Bryan call. Don With second everyone President

remind are all include Before to participants our like we begin, uncertainties. will which I comments and forward-looking risks to statements, subject would certain today that

For encourage a on company’s and complete uncertainties, discussion of these documents you press risks and our file we SEC. the with the to read release

press Shinn. and over refer full EBITDA and the during Please margin with And turn release I we measures of contribution public today’s adjusted call. net to filing of for or our segment to to may definition reconciliation CEO, the our a of segment like contribution margin. the adjusted Bryan EBITDA would this Additionally, Bryan? to non-GAAP to call now that, income Mr. refer

review then oil our the unprecedented I'll in conditions. to economic an the good pandemic field deterioration and with today's and call the to colleagues. on we general, key challenges quarter our decline activity our performance I'll response of how factors that drove in the second continue safety begin Arjun, strong morning, the despite and COVID-XX everyone. and health various Thanks, a update by prioritize

tremendous aligning market the discuss operations reality. logistics swiftly current our I'll Next, with in our have structure and teams progress cost made

the ahead share remain oil environment. macro with industrial thoughts despite and and a an segments Finally, outlook opportunities I'll challenging about for and remarks we conclude on excited why our my gas prepared both

needs am families business has the sector you effects healthy of of priority. resilience volatility, I the pandemic and fortitude of COVID-XX First top and health remains oil heavily in displayed proud remaining of safe and navigating time. customers continuing many difficult we the in communities colleagues and models been good The of extremely operate. are my and and in and for foremost, have dynamic colleagues the resulting our particular The nationwide our and lockdowns while safety gas I and the staying this the hope impacted. this upended which during meet your to members

been best Our practice and team COVID-XX with action communications has providing in plans. instrumental regular employees

I'm report As in production safely key an to nationwide best industries and that energy, and the our local operate a recordable to in supplier including accordance we're food facilities of beverage medical, delivering injury performance with year-to-date to company we X.XX. also across pleased history federal guidelines. the with rate essential and of continue the safety

total revenue turning of company the Now to second declined $XXX.X sequentially. XX% quarter, million

of customer adjusted helped segment. key Solid EBITDA execution initiatives strong shortfall deliver our cost on $XX.X million, of us which included and million gas in penalties reduction $XX.X oil

of automotive Our Product idling segment customer of month May to a weaker as in housing XX% and generated decline. contribution margin, due a in Specialty end of Industrial Volumes quarter-over-quarter impact the segment plants the in this from sequential million fell temporary glass markets demand result XX% and some generally COVID-XX. of $XX.X and the representing

and and across media the cost volumes, demand particularly the and by Specialty fixed as segment's Earth sequentially beverage food for remained were In margin robust. and mixed-use was mix. lower contribution Diatomaceous business margins reduced customer filtration Clays to addition industry impacted absorption unfavorable volumes flat In plants from however,

customers silica whole grain trials the and that that our we during key plasma blood filtration for initial exciting our with new also to commercial several and in products. pleased bench-scale new companies bio-pharma product building results. line for business share materials I signing initiated had quarter including multinational am industrial multiple yielded contracts with testing promising also two ground long-term developments We multinational both

portfolio down than more on the progress share the in million customer gas make XX% and on better much products million to continue our contribution execution minimal. strength doing oil in pressure will well pricing Northeast of slightly customer cost-out the was solid pricing better on down million Oil in X% Despite We testament sold segment, and pipeline our coming initiatives quality sharp we overall strong contract other that $XX.X and completions. of mostly our decline the expected and quarters. basins with X.X margin were activity in gas due and $XX.X proppant's new shortfall our completions, information of Quarterly the experienced the basin we approximately to In sales decline sequentially, base. Permian estimated a and than in penalties. and XX% of tons to in the minimal was well sequentially, our

expected as quarter SandBox to the the We more in activity, increase quarter. meaningfully reduction work single-digit line third expect the third low declined crews. return key to decline and loads add in completions pricing in frac XX% are with but customers in

During the Ford Permian work three basin. quarter Eagle in leading the operators full-service SandBox was with and awarded

agreement We customer. energy a a delivered also new signed to with the well leading

in addition now offering market. the the that last recent Arrows believe of to Up our we have a With one third mile roughly we portfolio, share logistics

XX% our in crude our in oil in seven our rapidly We reduction which sudden and de-rating right became We COVID-XX-led at and change sharp idling sized of oil update cost on plants segment gas in capacity. responded in others, active gas market higher now that oil by six and through capacity and cost March on prices. decline progress initiatives. to resulted a swiftly a move to the Let's early apparent demand conditions combination the reduction reduction an

difficult match XX%. reduce to significantly market reduce staffing demand. quarter the approximately of the to made Since first also company decision our We by we headcount XXXX,

believe staffing enterprise in result, the is approach a of the our $XXX expect We this this current run to appropriate from our As million environment. XXXX. we of level by fourth annualized expense down in $XX rate an SG&A the quarter year, million for

quality continue out teams of ensure logistics on diligently to bringing products. and high the colleagues of safety our operations wherever work to while costs and possible, continuing Our our the

continue is primary Our market as responsiveness variable, to maximize to variable possible flexibility and conditions. to cost changing goal make

Our are in $XX the plans. $XX targeting our cost now previously, up initiatives, through and million efficiency in-depth reviews, identified property as over improvement from opportunities and additional plant cost teams XXXX million purchasing tax plans reductions, savings center cost execution of plant department

will given have partners we, pleased results this been we actively engagement railcar working optimistic that which remaining executed far railcar our be long-term of the lower towards lessors effort, required having emphasize see to you lease as in costs invasive Silica As and complete key value a determining sand quarter. lessors We're we're decline the the to they ongoing thus the US sand. lease that part the to are a the with the sustainable and dramatic in to modifications as reduce the to process and partners of like third that lease well. demand modifications strategic in believe will important with level. customer railcar frac in We're quarter, cost in working us I'd and I having long-term as second strategic shift initially

starting we continued in strength where May whole shut We remains business rebound commentators market silica expect with as back our forecast higher-margin ground industrial. customers market have and in ramp up. third grain down with in to conclude volumes me let In filtration Now demand the quarter, temporarily robust.

result, As be X% sequentially. XX% ISP segment the up contribution we to a expect to margin

quarter year Looking in year, later further this we ahead, the third expect where the unlike to experienced we fourth similar the the more have past in to seasonal declines quarter. look

effect higher mid-single uncertainty stronger. activity QX oil economic the QX a should ahead well gas of rest shortfall but However, that lingering and a In volumes well. resurgence our and down the year, of but margin remain of the our given the we sandbox segment, lockdown customer do Due as second imposition the increase we that in from be the the profit heightened unemployment. the the increase be for expect virus quarter below levels meaningful we quarter of and acknowledge first we benefits sequentially digit possibility to contribution business additional penalties, underlying as percent as expect are will loads in to forecasting of

we've manage our summary, and leading modest fourth a In activity minimize prudently proppant risk of position conditions. the in we're to in our oilfield further to expecting a once For low-cost activity key two has the visibility potential proppant impact resulted Unlike the cost-out the acted quarter. for executed is the provider. again, increase successfully have initiatives budget We weaker limited. presently there decisively in us fourth in sequential volumes indicated both is but activity, past quarter loads, another and customers increase digit drop-off mid-single exhaustion years a sequential quarter, economic lower fourth where E&P in improving some that as the and

continue underway, the remarkably seen actively businesses led sheet. thrive balance while other tax we're balance have end serving macro started to maintaining to to earth sheet Despite customers and year little strong recent challenges, impact economic pursue no by diatomaceous a liquidity work keenly cost-out from the the through we with. aiming maintain and and financial and peers that many to specialty restructuring, Our finally, contraction. product And industry are we focused our on line industrial clay the more on unprecedented legislation working cash with are we strong our than efforts,

and act can, remain best turn Don. interest neighbors to call in where continue operate. to the over our control will in the we good that, We And of stakeholders we communities the I'll now with what Don?

morning, good and Brian everyone. Thanks

Bryan's in and adjusted strong American in team condition. I $XX.X and like generated reiterate First in North quarter to a energy the delivering comments we EBITDA which weaker economic our million unprecedented would downturn despite on market second well-documented

for the effects Moving and caused the on segments, a COVID-XX the to industrial due Contribution quarter, segment quarter million Huntsville the specialty revenue $XX.X segment a oil reduction a COVID-XX for was XX% tons by due sharply in specialty disruptions from earlier. a sold $XX.X XX% frac in the the quarter disruption. result well the $XXX was and The on our to of on to two economy activity as and the million, XX% at first due lower the second decrease results gas of negative first decline million quarter industrial from mostly XX% and down came during XXXX, to operating completions first representing from of quarter. margin revenue segment mentioned product of due down the to XXXX, dramatic

The basis only $XX.XX customer X% However, shortfall compared contribution one first segment per $XX.XX penalties, generated a was per of ISP down year. segment on increase largely basis the due with the compared to quarter a which of $XX.XX in for lower volumes. on ton offset million XXXX. The ton quarter gas was this oil and when $XX.X margin dramatically

our by the swiftly segments Additionally, for the leaders, from reduced business but necessary benefited decisions were quarter. spending both difficult company and across cost which very during allowed that lower

associated Let's administrative due now look fees last quarter of at with an one-time and the defense mostly from in from fuel than of and quarter entirely increase total $XX.X reduction first the estimate the to higher quarter the the of charges and expenses company the in The staff. general million our severance right-off results to unsuccessful XX% of in actual XXXX. the million of selling, related were million patents segment to $XX.X results, payments represented provided of of related second latest legal $XX.X oil gas the

the our spending. XXXX SG&A million, asset in idled for total a driven second fourth of from the $XX.X million XX% run of in the quarter and by depreciable quarter. an we due subsequent impairments capital approach decrease Depreciation, rate plants, stated, first to annualized assets decrease expect a $XX to totaled quarter reduced depletion amortization Bryan and As expense expense

slightly DD&A of the We up in remaining expect be to XXXX. quarters

ended a rate be effective rate Our including was of benefit approximately tax our June for benefit company the believes items. year discrete full XX%. of The XXXX a tax effective quarter XX% XX, will

first the as for facilities quarter, by cash of of Act million, Cares allocated this total balance tax quarter June cash XX, letters million. reduced liquidity to and of cash balance company in under on thanks the credit during million $XXX.X in $XXX.X the Moving capital expenditures $XX including XXXX, equivalent available increased resulting refund of related credit, has reduced spending sheet, million year. company $XX and focused laser its of The to the the and million the a versus on million a $XX $XX.X

liquidity totaled to maintenance, was under growth with in company's of mainly the at second position. now quarter. spending cost cash the debt like quarter Capital the and We the net our and focus and end improvement $X.X were projects. expenditures Additionally, $XX maintain I'd million billion the $X.X XXXX. million approximately to expectations full year capital our prior on and for be associated

the mature XXXX have term everyone and call, reminder loan near-term facility our revolving doesn't conference expires a we as first to credit obligation no in quarter As during until XXXX.

incremental refunds cash This the income our refunds to our million brings Cares we identified for attributable in XXXX. $XX help of Act Additionally, and flow tax $XX the XXXX. we loss operating and that have provision will the recover goals business of to million carrybacks estimated total related expect support net to

end collapse to Finally, oilfield and we back lower Brian. end it with despite activity that, in And sharply XXXX. the growth, expect a than of turn with was economic cash year to higher the the over at the balance still I'll that call

would Operator, questions? Thanks the up for Don. open you please lines

question Kurt with first Hallead Markets. from is [Operator proceed. Capital RBC instructions] Please Our

respect segment the second industrial the margin. contribution to with gave So Brian, good on commentary today, year with you maybe the directional of the some half start off

just volumes that quarter? are So to after think decline I occurred you second how rebound was the curious substantial in the kind going the of

few of we'll So customers facilities and our up facilities particularly pretty really quarter those idled some it looks demand the volumes restarted glass and already substantially second that strong. of in I a and was large start pretty to of so June occurred think they've lack in that industrials on we in sand the Where saw July come see some we decline side. back the for see

performance of of think that we'll industrials year, we'll we and believe ramp out really So look the for in have I pretty a rest I business. the as volume nice see the

maybe in volume a fourth context, in quarter So kind ramp then the of bit? guess I plus XX% and moderates the

that QX. think of say I So XX% something in level volume to like at up and let's XX% for then QX

a frac side, service comfortable the gas stood the the oil about the of sure. providing fourth side than visibility number out on so me to other lot right So that's companies quarter just more your frac sand kind comments in so providing, of for oil that were initially

those So just which can sense their going of business sense, are customer in that accelerate do telling you're give fourth quarter, you customers to a completion you me they're mix continue general you to that most activity. the the with gaining

seen frac I maybe July. wind somewhere terms we've are a So May bit trajectory neighborhood we is just April, hit start interesting active little saw and in have back substantially to in what rebound of clock really the things completions even crews come off so the that point that pretty going well, less. in and in believe things Kurt XX of at June a back that We has in dropped faster

to today at frac the by we a year. crews XX believe get more few back I least So we maybe to think of XX we're somewhere XXX working end could and the crews between

business a come share our then and simple that math out think about frac on that as So to customer feel and than really hand it's that with will folks, have conversations demand customers when base of folks your our one got will question crews and perhaps the think back serve excellent there of the specifically, you come faster sand get we to blue-chip share the lot back, we others. our we've and that we've like I tend we obviously we had

remainder So of to we frac the crews adding throughout certainty relative some going the equipment be frac our coming with back large customers of know and adding that are year.

optimistic hearing to based our like pretty that sand standard and from customers. in strong demand on but doesn’t never see know with of a and quarter, we'll what it fourth us directly rebound we're oil So you just into the year we're gas terms feel

gas oil to the commentary your sure on make One of the nature margin. and I again additional just contribution understand follow-up

something percentage. So think the shortfall back you contribution XX% with come I payment you out when about up margin

Your third commentary said get quarter. the that it should in better

and XX% then using first number margin of what would foremost expect I at So from you improvement am the right and contribution kind there?

Kurt. Yeah, right you're

you in for did out and ton if contribution If it you we back in you're you $X.XX you and talk back XX second, think and saying QX QX, if ton margin about QX just as numbers at roughly role the out, plus. we're XX I per per it a

Kurt, think but demand, than on demand more up a that pretty faster I ramp about SandBox actually. the sand talked sales little we just color seeing substantially in sand we're QX

So bounce well. a as I year SandBox the think remainder the big we'll in see for

Our question next is Stephen with Please from Stifel. Gengaro proceed.

of and there for There was and versus talked about benefits some longer-term hearing far a production Northern White demand Have Northern Northern study pretty have that in-basin? White. from as benefits you similar been more recently seeing the the the the history you in-basin of -- and what customers a with White as versus of

interesting I customers We that in we and that that and place the maintained going and always for certain indicate think benefits and we're with well-specific. cases In it's think study I in certain would some and White who referenced. in So choices Northern it's for that you locations have think in all a White for point basins there's seeing be of really subset behavior referenced Northern wells it's certain that out I Stephen the along want that cases to you customers some other certain customer there and general do that.

We surprisingly only feel White sand deftly there down home still was were a I and right. White in like a amount saw second Northern X% had we Northern about that for pricing the So decent down sales have quarter. of out the will Things pretty White and substantially. Northern quarter-on-quarter

there. well very pricing held we So

certain speaks it and I to that. the willing are customers recognize the of that pay value for to think fact to it want that

on give based shortfall adjusted you gauge. in then for Are place, forward. of and us the expectations quarter, of but reserve expecting just are the this, going not the it's clean much a you revenue on as that over are am can quarter in for shortfall your follow-up revenue you expecting couple and contracts to color third and just how quarters, I you Thank you're sure more any giving sort hard the potential next

and Well but probability somewhere upside enforce contracted hope in $X much contracts there potential the but don't, if would our we're shortfall that the a is our million get actual proven they they're the willing higher $XX between buy, that we've good to I it's range, but potential, know, say tons that our is never would is and to the customer million definitely estimates buy wide [indiscernible] put it you that to but weighted I penalty. think of to the those contracts worth have

So one benefit. way or another, the get we'll

Great. as just for one how the all? Has any there? sales then you And sand any me, We've inventories and in visibility one disconnect some several the inventory frac at over your companies have quarters that ramps? have out and restocking volumes final some things see about there much sand kind next through of working into seen you of we activity activity there between might phenomena is been do

out the based So situation the and cost of locations most design is details the speculated of on "stranded been I the bit feel like inventory overblown going the where that's quote of of that there in our now. right understanding on activity inventory" amount a order unquote is reality is

in of too basin XXX like or not is miles it It's can in a it's part a expensive. sell basin. move you So to different it a different somewhere just

it's ongoing impacting there haven't interesting practical out business haven't much our discussion but just impact. these things that much I one a like feel we terms So it's in of seen we standpoint, an point, that really for of like and seen

Please Lynagh is Morgan from question Connor next Stanley. Our proceed. with

actually touch to run there. G&A cost production good just the the overhead XX% are in cost rates we're on plus freezing savings I wanted

what a guess would have, of So and restated of little that drivers add you back problem if here the I you were things give could color to big is on side as more flip cost [indiscernible] the just you there? to

a at million It's at were at and think work of cost year. working a We if this we last sure in to be look as we exit rate SG&A We that the get a lot done, for the our run $XXX we'll really team spent has you time good down question. $XX million about SG&A year. of

really over So be last in is and big that XX% XX headcount related, down lot of there company will about to the a XX% so. obviously at changes months or headcount the

things on there, at million cost all we but boy so that, places yield another top to to operational pretty from and plus of those a site So got other all of $XX efficiencies looked other things. decisions the of make many we've and had our are team reductions really some in variety sourcing tough of has process other and kinds

G&A mine dollars our up won't of you there doesn’t counts. can are where but in those because happening site, the all Some save show it naturally it really at matter

variablize cost team to the I has think want the are cost work and now? structure a our fixed I Don about able versus at it's lot has and and and on right they've -- been of amazing do how our well Connor of the do what you done what we think talk really Don structure, end day is variable done this

So if oil it's you and gas the hypercyclic. business that

well as done like the really around to a fixed little our well because out high typically we business which operates turns class and when when and as things mentioned when business right. cycle we've bit really around us reduced differently our we there then protects So the cost around, start down priced turns you business in a as our problem plan move get

with in just some to the to both So drive able -- be [ph] cost business helps it's equation. fixed this really down into the

the each done it's a protecting the one there the has So in of team cycle. and job really fabulous P&L

and we're things on bottom also right and one that there so in substantial to cash the hard Connor, going getting think through accomplish really that worked and And to that, so we've to our what costs railcar get can with maybe just a others out our lessors we up goes way all last work down line. while bankruptcy able I cost are point

the you through here. the is of now -- are be uses things tax Don, going I It flow sort increase on can sounds was us cash maybe walk we and cash you it's to big can in and source bridge why gap probably the wondering year-over-year? the flat of just like side somewhere just if to

Yeah, we to also QX see The and look We've the working by Cares and the as source anticipate the well capital Act. you're million for to we tailwind of big us end going be another year $XX million the cash you're right. is from in $XX to and year tailwind savings a all of be expect by the as end these that a well. cost with as going

So end that those us relatively of than where of cash greater last ended three things end to to end add with a up up at being this confident up year. balance the we're the going we with year

an me things QX turn with And in QX of to and we at that of be quarters positive as remarkable in we we'll oil is QX. worst of I into issues general flow had in we're in the it's to coming kind and and there to pretty the as cash objective off just a out and to as the that Connor economy least out start the be we've the falling we I turn think think company as worst much time able with do what and set neutral flow kind gas get it's and cash that

well terms in when cash We sort get and building to times think cash flow of serve we think about us want be neutral of of that So the worst better. it. that's then will in things what I

Please B. [indiscernible] is next Our Riley from FBR. proceed. question with

Key the Matt question asking here actually is This today.

than I for example, So worse reductions the of guided kind flow management you kind that increase gets further while of balance could sales if pull bolster overhead environment other of longer any further XXXX. the potentially or cash was deposit sheet? advance wondering to to asset you in additional business kind liquidity if or even do levers had extends expected, in that

get conditions any just as here minute of our as months So right as condition, economic I as much the try to cost couple variabilize last side the is that think we can commitment the out a useful well. use ago and be playbook possible think the there kind in to over saying fit was other I

today. take and to to I size our as out our we'll get further we're actions possible. things much So appropriately do for where try think and If to right do worse, businesses as were sized need what look cost we are of to that get

continuously, we more terms In that sales that we asset things properties don’t have that on we're we use always the or opportunity have any when to own example of working for we that ended because for there is they up taking there SandBox equipment we of up with team need didn’t over a excess. forklifts the came lot the that many business that many, were example that for decided arrows were

So we can that sell equipment.

committed always we're if need So we figure we're team to looking cash scrappy as to get generation think to pretty things things at and other do I opportunities and does we're out it worse.

That's very helpful.

business What margin ETE side in legacy the contribution percentage the is from Just quick of that of build industrial me. acquisition? for one one kind the more

feel what think silica" It bit will between we're XX-XX in. US key call I Yeah and quote a I then about unquote does minerals though. "old coming different

we we as ago, held that of up extremely downturn, we markets in that out business businesses minerals that the serve at this years a new look found you EP with acquired couple well. If the

do lot in that things think helped filtration a those some of our housing beverage getting Silica of to applications US tied more I where parts more also business food So into and and industrial and the older really we there, automotive. we're counterweight medical all are

and held an up is extremely of in So economic kind we country Minerals well. it's time EP the just contraction have first since this that we've the

the as it that these of add kind you your add now, happy business diversify this So you I know to is love industrial for we've questions got and to at that look to that took investors of I around wanted we I on business part some are a scenarios. assets from lot why and of portfolio more economic leverage and

about happy we Minerals the and assets that EP excited really businesses the I'm and So there. added

Our instructions] proceed. [Operator with J. Please next B. question Lowe is from Citigroup.

on This is for Jamie. actually Stephen

still XX%. GDP amount I'm large and here, contribution can target do are outpace that where So get appreciating range margin it's given you of uncertainty commentary that's economic plus growth any GDP guys the to in outlook down Could in XX% line? on dollars that of looks still to expecting, of have like guys you you don’t want now. go but sort ISP continue year? appreciably year business those ahead I myself dollars next margin guidance based previous here, of a been contribution rate to growth XX% for

we level give side, just all things products moving agreement prepared somewhere X% the X% to in and two additive industrial plus lot just a with side if for well earth example sort to think the the GDP shipping you that agreements that new with would we trials think our pretty service signed actually and of I case margin consumer then those that started target get I plasma can a business new runs international CAGR we've put market, can GDP number had underlying flavor the I growth I customers very have with some qualification plasma the product kind BioPharma our and see easily QX. happening and we my I in for you with long-term at of -- for got remarks customers about have quarter. initial of filtration what to base pretty contribution they're and on pretty can for kind in So that comments. blood you're that countertop my top the are in industrial our a some a exciting prepared new key on of on for actually and specifically of mind businesses in customers. successful to and we've things between terms key products building with pipeline believe in a long-term forward We And But look two that the diatomaceous grows trials of that where of a new is I the that of I course dollars starting the talk there, and backstops some did you things product it products into mention

the of really amount will that feel have I our of the sampling short grow be the good contribution upside but that investors and think coming I with about to a power piece to surprised that's in industrial company. what's our margin of So, we pipeline, the business

pretty if than And seen some guys guys color coming is on guess and think going see had I where you is and side, you back, to gas I go. just was what I curious different you guess regionally proportionally just where you it's gave the activity any see previously. oil good you

the Permian could the QX, say activity Northeast at and starting vast look life in of some XX% we the would of basins. country the as So see and within the majority in to we're I approaching the other

Northeast in I Permian mid-Con think might the and the back we see then and in in we'll and coming the bit bit maybe the as obviously a well. Bakken little see growth

into probably XXXX. what So see longer-term, we get come I other again Stephen that's the further see as Eagle basins [indiscernible] term. in Obviously of alive think and DJ short I Ford the well the some we'll

back like We've reached call to to closing of the session. the I'd end turn comments. for Bryan the over question-and-answer

like Thanks points. call close reiterating operator. a today's I'd few by to

strong another a expectation delivered and on today, ISP about beat detail call of reductions the First, strength resilient the quarter on substantially of talked cost and gas oil financial and in we strong our execution some in we business. which

is to and to want history. great performance believe our I health I our and on and Second, job we're of in a just safety track continuing critically for colleagues the say done has important company the that team again this prioritize year best safety

very excited about that. am I So

Third, July unprecedented believe balance challenges good and in operating end I finally, and want we QX more cash macro the I of today for liquidity for we up and rebound everyone another in and to with. year to despite earnings our with to say very sheet on we're continue we do cash QX our carefully both than manage the to sales volumes the lined expect proud in and I we dialing our call. team of our started am thank segments

everyone. safe stay please and day great a have So

today's This conference. you. Thank concludes

disconnect wonderful time may your have at lines You a weekend. this and