Attached files
| file | filename |
|---|---|
| 8-K - 8-K - EVOLUTION PETROLEUM CORP | a8-kearningsq32018.htm |
Exhibit 99.1
 | Company Contact: |
Randy Keys, President & CEO | |
(713) 935-0122 | |
rkeys@evolutionpetroleum.com | |
Evolution Petroleum Announces Results for Fiscal 2018 Third Quarter Ended March 31, 2018 and Declares Quarterly Common Stock Dividend
Houston, TX, May 8, 2018 - Evolution Petroleum Corporation (NYSE American: EPM) today announced financial and operating highlights for its fiscal third quarter ended March 31, 2018, with comparisons to the fiscal second quarter ended December 31, 2017 (the "prior quarter") and the quarter ended March 31, 2017 (the "year-ago quarter").
Highlights for the Quarter:
• | Net income was $3.1 million for the quarter, or $0.09 per common share, compared to net income of $2.4 million, or $0.07 per common share in the year-ago quarter. |
• | Commenced the planned twelve-well infill drilling program in the Delhi field in late March 2018. |
• | Realized oil price for the quarter was $63.56 per barrel, our highest quarterly average oil price since December 2014. |
• | Revenues were $10.2 million, an increase of 7.6% over the year-ago quarter. |
• | Paid eighteenth consecutive quarterly cash dividend on common shares, in the amount of $0.10 per share and announced a dividend of $0.10 per share for the quarter ending June 30, 2018. |
• | Ended the quarter with $28.4 million of working capital, an increase of $0.8 million from the prior quarter, after paying $3.3 million in common stock dividends. |
Financial Results for the Quarter Ended March 31, 2018
During the current quarter, Evolution reported operating revenues of $10.2 million, based on an average realized oil price of $63.56 per barrel and an average realized price for natural gas liquids (“NGL’s”) of $34.05
per barrel. The Company has seen steadily increasing oil prices throughout this fiscal year and West Texas Intermediate (“WTI”) prices have further strengthened since the end of March. In the year-ago quarter, operating revenues were $9.5 million, based on an average oil price of $49.29 per barrel and an average realized NGL price of $23.71 per barrel.
Operating income was $3.7 million, down slightly from $3.9 million in the year-ago quarter. Net income for the quarter was $3.1 million, or $0.09 per diluted share, up from $2.4 million, or $0.07 per share, in the year-ago quarter.
Production costs in the Delhi field were $3.4 million in the current quarter, up 19.5% from $2.8 million in the year-ago quarter. The majority of the increase resulted from higher purchased CO2 costs, as there were increases in both volumes of purchased CO2 and the cost of purchased CO2, which is tied directly to realized oil prices in the field.
General and administrative expenses were $1.8 million for the quarter, up from $1.3 million in the year-ago quarter. The majority of this increase resulted from litigation costs and final settlement of legacy litigation in a matter dating back from 2006.
With passage of the Tax Cuts and Jobs Act ("Tax Act") in late December 2017, Evolution’s federal income tax rate dropped from 34% to 21%. The Company’s statutory rate for the current fiscal year ending June 30, 2018 is a blended rate of 27.55%. The Company’s provision for income tax expenses declined significantly from $1.5 million in the year-ago quarter to $0.6 million in the current quarter. The majority of this reduction resulted from benefits of the Tax Act, but there were also other permanent tax differences that we will continue to realize.
Delhi Operations and Capital Spending
As previously reported, the Delhi field experienced weather-related disruptions from abnormal sub-freezing temperatures. Consequently, both oil and NGL production rates suffered from multiple days of shut-ins in addition to scheduled downtimes for maintenance and other repairs both in the field and at the NGL plant. However, production in February and March returned to normalized levels of approximately 7,000 barrels
of oil per day (BOPD) and 1,100 barrels of NGL's per day. The net production volumes of 1,884 barrels of oil equivalent per day (“BOEPD”), were down 16.6% from 2,260 BOEPD in the year-ago quarter.
The operator began the planned twelve-well infill drilling program in the Delhi field during the quarter ending March 31, 2018. This program, which has an expected net cost to the Company of approximately $4.7 million, targets productive oil zones in the developed areas of the field that are not being swept effectively by the current CO2 flood. This infill program is expected to both add production and increase ultimate recoveries above the current proved producing oil reserves. In conjunction with the infill drilling program, the operator plans to drill the last three wells of a six-well water injection program on the eastern edge of the planned Phase Five expansion of the Delhi field. Evolution’s forecast for the remaining net cost to the Company for this project is approximately $2.1 million. The Company expects all of these projects to be completed by the end of calendar year 2018. In addition to the planned capital spending discussed above, the Company continues to identify and execute successful capital workover projects to improve conformance and production in the field. These projects are not individually material and are unlikely to have a significant impact on capital spending going forward.
During the nine months ended March 31, 2018, the Company incurred approximately $2.3 million of capital expenditures at Delhi. This spending included $0.4 million for capital upgrades to the recycle plant, $0.9 million for CO2 conformance projects and capital maintenance, $0.7 million for Test Site 5 infrastructure, and $0.3 million for the infill drilling program.
Liquidity and Outlook
“Evolution ended the quarter with $28.4 million in working capital, an increase of $0.8 million from the prior quarter, after paying $3.3 million in common stock dividends during the quarter. Our cash balance was $27.2 million with no debt outstanding. In February, we increased the borrowing base under our credit facility to $40.0 million to better position the Company for a potential acquisition of primarily producing properties. We believe our financial resources are more than sufficient to fund continuing development of the Delhi field, beginning with the infill drilling program, continue our dividend program and capitalize on potential new acquisition opportunities going forward,” commented Randy Keys, President and CEO.
Cash Dividend on Common Stock
The Board of Directors declared a cash dividend of $0.10 per share of common stock, to be paid on June 29, 2018 to common stockholders of record on June 15, 2018. This will be the nineteenth consecutive quarterly cash dividend on the common stock. Common stock dividends, which have been paid since 2013, are a core component of the Company’s strategy.
Quarterly Conference Call
Evolution will hold its quarterly conference call on Wednesday, May 9, 2018 at 11:00 a.m. Eastern Time (10:00 a.m. Central). The call will be followed by a question and answer session. To access the conference call by phone, please dial 1-855-327-6837 (U.S. & Canada) or 1-631-891-4304 (International). To listen live via webcast or to hear a rebroadcast, please go to www.EvolutionPetroleum.com.
A replay will be available two hours after the end of the conference call through May 16, 2018, and will be accessible by calling 1-844-512-2921 (US & Canada) or 1‑412-317-6671 (International) with the passcode 10004763.
About Evolution Petroleum
Evolution Petroleum Corporation develops and produces petroleum reserves within known oil and gas reservoirs in the U.S., with a focus on maximizing value per share. Our principal asset is our interest in a CO2 enhanced oil recovery project in Louisiana's Delhi Field. Additional information, including the Company's most recent annual report on Form 10-K and its quarterly reports on Form 10-Q, is available on its website at www.EvolutionPetroleum.com.
Cautionary Statement
All forward-looking statements contained in this press release regarding potential results and future plans and objectives of the Company involve a wide range of risks and uncertainties. Statements herein using words such as "believe," "expect," "plans," “outlook” and words of similar meaning are forward-looking statements. Although our expectations are based on engineering, geological, financial and operating assumptions that we believe to be reasonable, many factors could cause actual results to differ materially
from our expectations and we can give no assurance that our goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic documents filed with the SEC. The Company undertakes no obligation to update any forward-looking statement.
Company Contact:
Randy Keys, President and CEO
(713) 935-0122
rkeys@evolutionpetroleum.com
Financial Tables to Follow
Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
March 31, | Dec. 31, | March 31, | |||||||||||||||||
2018 | 2017 | 2017 | 2018 | 2017 | |||||||||||||||
Revenues | |||||||||||||||||||
Crude oil | $ | 9,639,238 | $ | 9,060,796 | $ | 10,185,635 | $ | 27,654,128 | $ | 25,184,468 | |||||||||
Natural gas liquids | 610,328 | 464,641 | 881,276 | 2,200,220 | 464,730 | ||||||||||||||
Natural gas | — | — | — | — | (4 | ) | |||||||||||||
Total revenues | 10,249,566 | 9,525,437 | 11,066,911 | 29,854,348 | 25,649,194 | ||||||||||||||
Operating costs | |||||||||||||||||||
Production costs | 3,360,603 | 2,811,258 | 2,914,512 | 9,166,701 | 7,448,320 | ||||||||||||||
Depreciation, depletion and amortization | 1,360,885 | 1,523,475 | 1,633,868 | 4,513,296 | 4,104,424 | ||||||||||||||
Accretion of discount on asset retirement obligations | 22,263 | 13,562 | 23,023 | 66,865 | 39,892 | ||||||||||||||
General and administrative expenses * | 1,842,548 | 1,283,906 | 1,666,256 | 5,078,508 | 3,760,348 | ||||||||||||||
Total operating costs | 6,586,299 | 5,632,201 | 6,237,659 | 18,825,370 | 15,352,984 | ||||||||||||||
Income from operations | 3,663,267 | 3,893,236 | 4,829,252 | 11,028,978 | 10,296,210 | ||||||||||||||
Other | |||||||||||||||||||
Gain on realized derivative instruments, net | — | 3,350 | — | — | 3,440 | ||||||||||||||
Gain on unrealized derivative instruments, net | — | 47,965 | — | — | 33,833 | ||||||||||||||
Interest and other income | 21,345 | 13,099 | 15,841 | 52,036 | 39,905 | ||||||||||||||
Interest expense | (30,525 | ) | (20,317 | ) | (20,456 | ) | (71,436 | ) | (61,373 | ) | |||||||||
Income before income taxes | 3,654,087 | 3,937,333 | 4,824,637 | 11,009,578 | 10,312,015 | ||||||||||||||
Income tax provision (benefit) | 585,733 | 1,518,190 | (5,052,211 | ) | (4,076,156 | ) | 3,768,463 | ||||||||||||
Net income attributable to the Company | 3,068,354 | 2,419,143 | $ | 9,876,848 | 15,085,734 | 6,543,552 | |||||||||||||
Dividends on preferred stock | — | — | — | — | 250,990 | ||||||||||||||
Deemed dividend on redeemed preferred shares | — | — | — | — | 1,002,440 | ||||||||||||||
Net income available to common stockholders | $ | 3,068,354 | $ | 2,419,143 | $ | 9,876,848 | $ | 15,085,734 | $ | 5,290,122 | |||||||||
Earnings per common share | |||||||||||||||||||
Basic | $ | 0.09 | $ | 0.07 | $ | 0.30 | $ | 0.46 | $ | 0.16 | |||||||||
Diluted | $ | 0.09 | $ | 0.07 | $ | 0.30 | $ | 0.45 | $ | 0.16 | |||||||||
Weighted average number of common shares | |||||||||||||||||||
Basic | 33,171,514 | 33,062,297 | 33,109,448 | 33,123,185 | 33,021,865 | ||||||||||||||
Diluted | 33,191,312 | 33,115,699 | 33,140,278 | 33,155,870 | 33,064,708 | ||||||||||||||
* General and administrative expenses for the three months ended March 31, 2018, March 31, 2017 and December 31, 2017,
included non-cash stock-based compensation expense of $352,420, $291,151 and $484,326, respectively. For the corresponding nine months ended March 31, 2018 and 2017 non-cash stock-based compensation expense was $1,324,230 and $878,023, respectively.
Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(Unaudited)
March 31, 2018 | June 30, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 27,186,809 | $ | 23,028,153 | |||
Receivables | 3,949,973 | 2,726,702 | |||||
Prepaid expenses and other current assets | 682,645 | 387,672 | |||||
Total current assets | 31,819,427 | 26,142,527 | |||||
Oil and natural gas property and equipment, net (full-cost method of accounting) | 59,589,750 | 61,790,068 | |||||
Other property and equipment, net | 34,144 | 40,689 | |||||
Total property and equipment | 59,623,894 | 61,830,757 | |||||
Other assets | 243,011 | 295,384 | |||||
Total assets | $ | 91,686,332 | $ | 88,268,668 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 2,786,518 | $ | 1,994,255 | |||
Accrued liabilities and other | 628,663 | 724,639 | |||||
State and federal income taxes payable | — | — | |||||
Total current liabilities | 3,415,181 | 2,718,894 | |||||
Long term liabilities | |||||||
Senior secured credit facility | — | — | |||||
Deferred income taxes | 10,754,077 | 15,826,291 | |||||
Asset retirement obligations | 1,319,291 | 1,253,628 | |||||
Total liabilities | 15,488,549 | 19,798,813 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity | |||||||
Common stock; par value $0.001; 100,000,000 shares authorized; 33,171,514 and 33,087,308 shares issued and outstanding as of March 31, 2018 and June 30, 2017, respectively | 33,171 | 33,087 | |||||
Additional paid-in capital | 41,890,553 | 40,961,957 | |||||
Retained earnings | 34,274,059 | 27,474,811 | |||||
Total stockholders’ equity | 76,197,783 | 68,469,855 | |||||
Total liabilities and stockholders’ equity | $ | 91,686,332 | $ | 88,268,668 | |||
Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(Unaudited)
Nine Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities | |||||||
Net income attributable to the Company | $ | 15,085,734 | $ | 6,543,552 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 4,555,496 | 4,146,898 | |||||
Stock-based compensation | 1,324,230 | 878,023 | |||||
Accretion of discount on asset retirement obligations | 66,865 | 39,892 | |||||
Settlements of asset retirement obligations | — | (157,910 | ) | ||||
Deferred income taxes (benefit) | (5,072,214 | ) | 3,079,342 | ||||
Gain on derivative instruments, net | — | (37,273 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Receivables | (1,223,271 | ) | (723,161 | ) | |||
Prepaid expenses and other current assets | (294,973 | ) | (445,597 | ) | |||
Accounts payable and accrued expenses | 73,678 | (1,808,566 | ) | ||||
Income taxes payable | — | (164,544 | ) | ||||
Net cash provided by operating activities | 14,515,545 | 11,350,656 | |||||
Cash flows from investing activities | |||||||
Derivative settlement payments paid | — | (318,618 | ) | ||||
Capital expenditures for oil and natural gas properties | (1,668,820 | ) | (10,096,475 | ) | |||
Capital expenditures for other property and equipment | (6,033 | ) | (32,260 | ) | |||
Net cash used in investing activities | (1,674,853 | ) | (10,447,353 | ) | |||
Cash flows from financing activities | |||||||
Cash dividends to preferred stockholders | — | (250,990 | ) | ||||
Cash dividends to common stockholders | (8,286,486 | ) | (6,116,323 | ) | |||
Common share repurchases, including shares surrendered for tax withholding | (395,550 | ) | (459,858 | ) | |||
Redemption of preferred shares | — | (7,932,975 | ) | ||||
Other | — | 32 | |||||
Net cash used in financing activities | (8,682,036 | ) | (14,760,114 | ) | |||
Net increase (decrease) in cash and cash equivalents | 4,158,656 | (13,856,811 | ) | ||||
Cash and cash equivalents, beginning of period | 23,028,153 | 34,077,060 | |||||
Cash and cash equivalents, end of period | $ | 27,186,809 | $ | 20,220,249 | |||
Supplemental disclosures of cash flow information: | Nine Months Ended March 31, | ||||||
2018 | 2017 | ||||||
Income taxes paid | $ | 1,456,754 | $ | 1,383,773 | |||
Non-cash transactions: | |||||||
Change in accounts payable used to acquire property and equipment | 622,185 | (3,181,640 | ) | ||||
Oil and natural gas property costs incurred through recognition of asset retirement obligations | (778 | ) | 14,119 | ||||
Supplemental Information on Oil and Natural Gas Operations (Unaudited)
Three Months Ended | ||||||||||||||
March 31, | December 31, | Variance | Variance % | |||||||||||
2018 | 2017 | |||||||||||||
Oil and gas production: | ||||||||||||||
Crude oil revenues | $ | 9,639,238 | $ | 10,185,635 | $ | (546,397 | ) | (5.4 | )% | |||||
NGL revenues | 610,328 | 881,276 | (270,948 | ) | (30.7 | )% | ||||||||
Total revenues | $ | 10,249,566 | $ | 11,066,911 | $ | (817,345 | ) | (7.4 | )% | |||||
Crude oil volumes (Bbl) | 151,665 | 177,767 | (26,102 | ) | (14.7 | )% | ||||||||
NGL volumes (Bbl) | 17,926 | 26,033 | (8,107 | ) | (31.1 | )% | ||||||||
Equivalent volumes (BOE) | 169,591 | 203,800 | (34,209 | ) | (16.8 | )% | ||||||||
Crude oil (BOPD, net) | 1,685 | 1,932 | (247 | ) | (12.8 | )% | ||||||||
NGLs (BOEPD, net) | 199 | 283 | (84 | ) | (29.7 | )% | ||||||||
Equivalent volumes (BOEPD, net) | 1,884 | 2,215 | (331 | ) | (14.9 | )% | ||||||||
Crude oil price per Bbl | $ | 63.56 | $ | 57.30 | $ | 6.26 | 10.9 | % | ||||||
NGL price per Bbl | 34.05 | 33.85 | 0.20 | 0.6 | % | |||||||||
Equivalent price per BOE | $ | 60.44 | $ | 54.30 | $ | 6.14 | 11.3 | % | ||||||
CO2 costs | $ | 1,459,349 | $ | 1,265,582 | $ | 193,767 | 15.3 | % | ||||||
All other lease operating expenses | 1,901,254 | 1,648,930 | 252,324 | 15.3 | % | |||||||||
Production costs | $ | 3,360,603 | $ | 2,914,512 | $ | 446,091 | 15.3 | % | ||||||
Production costs per BOE | $ | 19.82 | $ | 14.30 | $ | 5.52 | 38.6 | % | ||||||
CO2 volumes (MMcf per day, gross) | 75.7 | 69.7 | 6.0 | 8.6 | % | |||||||||
Oil and gas DD&A (a) | $ | 1,353,340 | $ | 1,626,324 | $ | (272,984 | ) | (16.8 | )% | |||||
Oil and gas DD&A per BOE | $ | 7.98 | $ | 7.98 | $ | — | — | % | ||||||
(a) Excludes $7,545 and $7,544 of other depreciation and amortization expense for the three months ended March 31, 2018 and December 31, 2017, respectively.
Supplemental Information on Oil and Natural Gas Operations (Unaudited)
Three Months Ended March 31, | ||||||||||||||
2018 | 2017 | Variance | Variance % | |||||||||||
Oil and gas production: | ||||||||||||||
Crude oil revenues | $ | 9,639,238 | $ | 9,060,796 | $ | 578,442 | 6.4 | % | ||||||
NGL revenues | 610,328 | 464,641 | 145,687 | 31.4 | % | |||||||||
Total revenues | $ | 10,249,566 | $ | 9,525,437 | $ | 724,129 | 7.6 | % | ||||||
Crude oil volumes (Bbl) | 151,665 | 183,811 | (32,146 | ) | (17.5 | )% | ||||||||
NGL volumes (Bbl) | 17,926 | 19,594 | (1,668 | ) | (8.5 | )% | ||||||||
Equivalent volumes (BOE) | 169,591 | 203,405 | (33,814 | ) | (16.6 | )% | ||||||||
Crude oil (BOPD, net) | 1,685 | 2,042 | (357 | ) | (17.5 | )% | ||||||||
NGLs (BOEPD, net) | 199 | 218 | (19 | ) | (8.7 | )% | ||||||||
Equivalent volumes (BOEPD, net) | 1,884 | 2,260 | (376 | ) | (16.6 | )% | ||||||||
Crude oil price per Bbl | $ | 63.56 | $ | 49.29 | $ | 14.27 | 29.0 | % | ||||||
NGL price per Bbl | 34.05 | 23.71 | 10.34 | 43.6 | % | |||||||||
Equivalent price per BOE | $ | 60.44 | $ | 46.83 | $ | 13.61 | 29.1 | % | ||||||
CO2 costs | $ | 1,459,349 | $ | 1,049,035 | $ | 410,314 | 39.1 | % | ||||||
All other lease operating expenses | 1,901,254 | 1,762,223 | 139,031 | 7.9 | % | |||||||||
Production costs | $ | 3,360,603 | $ | 2,811,258 | $ | 549,345 | 19.5 | % | ||||||
Production costs per BOE | $ | 19.82 | $ | 13.82 | $ | 6.00 | 43.4 | % | ||||||
CO2 volumes (MMcf per day, gross) | 75.7 | 66.3 | 9.4 | 14.2 | % | |||||||||
Oil and gas DD&A (a) | $ | 1,353,340 | $ | 1,515,368 | $ | (162,028 | ) | (10.7 | )% | |||||
Oil and gas DD&A per BOE | $ | 7.98 | $ | 7.45 | $ | 0.53 | 7.1 | % | ||||||
(a) Excludes $7,545 and $8,107 of other depreciation and amortization expense for the three months ended March 31, 2018 and 2017, respectively.
Supplemental Information on Oil and Natural Gas Operations (Unaudited)
Nine Months Ended March 31, | ||||||||||||||
2018 | 2017 | Variance | Variance % | |||||||||||
Oil and gas production: | ||||||||||||||
Crude oil revenues | $ | 27,654,128 | $ | 25,184,468 | $ | 2,469,660 | 9.8 | % | ||||||
NGL revenues | 2,200,220 | 464,730 | 1,735,490 | 373.4 | % | |||||||||
Natural gas revenues | — | (4 | ) | 4 | n.m. | |||||||||
Total revenues | $ | 29,854,348 | $ | 25,649,194 | $ | 4,205,154 | 16.4 | % | ||||||
Crude oil volumes (Bbl) | 496,169 | 544,628 | (48,459 | ) | (8.9 | )% | ||||||||
NGL volumes (Bbl) | 69,205 | 19,598 | 49,607 | 253.1 | % | |||||||||
Natural gas volumes (Mcf) | — | 16 | (16 | ) | n.m. | |||||||||
Equivalent volumes (BOE) | 565,374 | 564,229 | 1,145 | 0.2 | % | |||||||||
Crude oil (BOPD, net) | 1,811 | 1,988 | (177 | ) | (8.9 | )% | ||||||||
NGLs (BOEPD, net) | 252 | 71 | 181 | 254.9 | % | |||||||||
Natural gas (BOEPD, net) | — | — | — | n.m. | ||||||||||
Equivalent volumes (BOEPD, net) | 2,063 | 2,059 | 4 | 0.2 | % | |||||||||
Crude oil price per Bbl | $ | 55.74 | $ | 46.24 | $ | 9.50 | 20.5 | % | ||||||
NGL price per Bbl | 31.79 | 23.71 | 8.08 | 34.1 | % | |||||||||
Natural gas price per Mcf | — | (0.25 | ) | 0.25 | n.m. | |||||||||
Equivalent price per BOE | $ | 52.80 | $ | 45.46 | $ | 7.34 | 16.1 | % | ||||||
CO2 costs | $ | 3,813,192 | $ | 3,168,909 | $ | 644,283 | 20.3 | % | ||||||
All other lease operating expenses | 5,353,509 | 4,279,411 | 1,074,098 | 25.1 | % | |||||||||
Production costs | $ | 9,166,701 | $ | 7,448,320 | $ | 1,718,381 | 23.1 | % | ||||||
Production costs per BOE | $ | 16.21 | $ | 13.20 | $ | 3.01 | 22.8 | % | ||||||
CO2 volumes (MMcf per day, gross) | 71.5 | 69.0 | 2.5 | 3.6 | % | |||||||||
Oil and gas DD&A (a) | $ | 4,490,545 | $ | 4,080,818 | $ | 409,727 | 10.0 | % | ||||||
Oil and gas DD&A per BOE | $ | 7.94 | $ | 7.23 | $ | 0.71 | 9.8 | % | ||||||
n.m. Not meaningful.
(a) Excludes $22,751 and $23,606 of other depreciation and amortization expense for the nine months ended March 31, 2018 and 2017, respectively.
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