Thank you for standing by, and welcome to the Kirby Corporation 2021 Second Quarter Earnings Conference Call. [Operator Instructions]. Today's program maybe recorded. I would now like to introduce your host for today's program, Eric Holcomb, Vice President of Investor Relations. Please go ahead, sir.

Good morning, and thank you for joining us. With me today are David Grzebinski, Kirby's President and Chief Executive Officer; and Bill Harvey, Kirby's Executive Vice President and Chief Financial Officer. A slide presentation for today's conference call as well as the earnings release, which was issued earlier today can be found on our website at kirbycorp.com. During this conference call, we may refer to certain non-GAAP or adjusted financial measures. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings press release and are also available on our website in the Investor Relations section under Financials. As a reminder, statements contained in this conference call with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties, and our actual results could differ materially from those anticipated as a result of various factors, including the impact of the COVID-19 pandemic and the related response of governments on global and regional market conditions and the company's business. A list of these risk factors can be found on Kirby's Form 10-K for the year ended December 31, 2020. I will now turn the call over to David.

Thank you, Eric, and good morning, everyone. Earlier today, we announced net earnings of $0.17 per share for the 2021 second quarter. The quarter's results were improved across both segments as the U.S. economy continued to rebound, the Gulf Coast petrochemical and refining complex recovered from Winter Storm Uri and oilfield activity and spending ramped up. Overall, our activity levels increased significantly in both marine transportation and distribution and services, which led to a 13% sequential increase in total revenues and a material improvement in earnings. Looking at our segments, in marine transportation, the inland market experienced a strong improvement in demand with overall barge utilization increasing into the low to mid-80% range. The quarter started with some softness as many petrochemical plants struggled to restart following the February winter storm, which shut down up to 50% of the Gulf Coast production for a period of time. But by early May, however, most of the petrochemical complex had resumed production, refinery utilization was firmly in the high 80s and demand for refined products was steadily increasing as the U.S. economy reopen. As a result, activity in the barge markets started to ramp up nicely and barge pricing moved off the bottom. The inland market tightened further in mid-May when the Colonial Pipeline shut down, and many of our customers turned to barges for transportation and storage. In a matter of days, our barge utilization increased to near 90%. While this event was temporary, and overall activity levels moderated in June, the inland business experienced a favorable shift in market dynamics. As a result, inland ton miles increased 17% when compared to the first quarter. Average spot market pricing also improved sequentially for the first time in more than a year, and even - and although is still down relative to…

Thank you, David, and good morning, everyone. In the 2021 second quarter, marine transportation revenues were $332.9 million with an operating income of $18.5 million and an operating margin of 5.6%. Compared to the 2020 second quarter, marine revenues declined $48 million or 13% and operating income declined $32.9 million. The reductions are primarily due to lower inland and coastal barge utilization, and significantly reduced pricing in inland, partially offset by increased fuel rebuilds due to higher diesel prices. Compared to the 2021 first quarter, marine revenues increased $31.9 million or 11%, and operating income increased $16.6 million. These increases are primarily a result of increased inland barge utilization and improved spot market pricing. As expected, second quarter operating margins were somewhat impacted by increased maintenance and ops costs as we continue to ramp up our operations. During the quarter, the inland business contributed approximately 76% of segment revenue. Average barge utilization improved into the low to mid-80% range compared to the mid-70% range in the 2021 first quarter. Inland barge volumes increased sequentially as the U.S. economy continued to improve as the COVID-19 pandemic lessened and Gulf Coast refinery and chemical plant activity recovered from the effects of Winter Storm Uri. Barge demand also benefited from the Colonial Pipeline outage in May. Overall, these factors contributed to a 70% increase in ton miles as compared to the first quarter. Long-term inland marine transportation contracts or those contracts with the term of 1 year or longer contributed approximately 65% of revenue with 57% from time charters and 43% from contracts of affreightment. The significant increase in barge activity in the second quarter contributed to average spot market rates improving approximately 10% sequentially. However, average spot rates remained down approximately 10% to 15% when compared to the 2020 second quarter. Only…

Thank you, Bill. The last 15 months have been challenging with weak markets, poor operating conditions and declining financial performance. As economies reopen in the second quarter, we experienced a welcome increase in overall demand and greatly improved market conditions. With the U.S. and international economies continuing to reopen and demand for refined products and oilfield equipment and services increasing, we see this positive momentum continuing into the second half of the year. As a result, we expect to see improvement in revenues and earnings for both of Kirby segments. While we are very encouraged about the recovery, we are, however, cautiously watching the rising number of COVID-19 cases in parts of the U.S. and around the world just now. There is a risk that these spikes, which are already resulting in new lockdowns in some locations, could adversely impact the recovery, refinery utilization and refined products demand. Although we expect this could slow the pace of the recovery, we do believe that momentum will continue to build. Additionally, as many of you know, labor constraints across the industrial supply chain are creating delays in manufacturing lead times and other supply chains. It is possible that we could see some anticipated product sales or deliveries of our manufactured equipment delayed in the second half of the year. In the inland market, our outlook remains positive. As of today, our barge utilization is in the mid-80% range, driven by strong activity levels in the refining and petrochemical complex. Barring a significant step change in COVID, we expect barge activity should continue to increase during the last 2 quarters of this year as a result of improving demand, including increased refinery activity, higher refined products consumption and new petrochemical plants coming online. With minimal construction of new barges and barge retirements still…

[Operator Instructions]. Our first question comes from the line of Jack Atkins from Stephens.

Bill, I just want to say congratulations on your retirement.

I appreciate it, Jack.

So I guess maybe my first question here is with regard just to how things are trending within inland. You mentioned you're currently running at about 85% utilization rate. Just be curious to know, are your customers giving you any indication for how they're expecting their activity levels to trend over the balance of the year? And how do you think that's going to impact utilization as we move through the third quarter? And I would just be kind of curious as well, David, could you talk about where we are with spot rates relative to contract rates? Are spot rates back at or above contract rates? And if you could just sort of update there, I think that would be helpful.

Sure. Yes, Jack, look, the inland trends continue to improve. We've - in the first quarter, we were down in the mid-70s in terms of utility. We got to low 80s at the beginning of the second quarter kind of ramped up into the mid-80s and then the Colonial Pipeline outage had a little spike, got us up to high 80s to essentially 90%, and little less than 90%. But then it started to taper off as Colonial came back in and better weather started to help transit time. So we did end the quarter kind of in the mid-80s. But the important thing is spot pricing and contract pricing improved a bit. Contract pricing was still down year-over-year. You go all the way back to the second quarter in 2020. So we kind of lapped that quarter. Those were higher prices back then. So contract pricing was down kind of mid- to high single digits, but spot pricing was up in the double-digit range, around 10%. And that, to your question, put spot pricing above contracts now. And that's what we need. We need that to stay above contracts. We need the customers to believe it's going to stay that way for a while. And then that contract portfolio start to renew higher. That may take another quarter or 2 before we kind of lap contract prices and they start renewing higher. But look, margins improved. We kind of went from low to mid-single digits in inland in the first quarter to kind of high single digits. We'll be in double digits next quarter in the third quarter. Fourth quarter is going to be hard to say because weather can impact us a bit. But all the trends are in the right direction. I mean, when you think about…

Well, that makes a lot of sense and understand the need to maybe be a little bit cautious given the rise in COVID that we're seeing out there. So I guess for my follow-up question, David, as we think out over the next couple of years, I would be curious to get your thoughts on how you would expect industry capacity to trend? What's your expectation around net retirements for 2021? And given the rise in commodity prices and steel prices, where do you think rates would need to go to or maybe if you want to think about magnitude of an increase from where we are right now, just to support building for replacement much less thinking about building for expansion on the inland side?

Sure. Yes, thanks for that question, Jack. We're - look, we're - we think the order book is about 70 - between 70, 75 barges, maybe I don't think the actual count that we have is 72 barges for delivery this year. About half of them have been delivered. The first half were really all ordered pre-pandemic, and they just started delivering. But new barge pricing is at an all-time high. If you look kind of price changes from 2020 to 2021, a Clean 30, the price for a Clean 30 is now almost 40% higher than it was last year. Steel prices are driving a big part of that. Clean 30 now is probably $3.8 million. In 2018, just to reference that, it was about 2.5; in 2017, it was around 2 to build a Clean 30. So steel prices have driven that up labor to a lesser extent. But look, nobody is building a lot of barges right now and retirements are up. Scrap steel prices are up, so retirements are a little more palatable. So it's pretty constructive right now. We don't see really a net add in terms of new barges. And in fact, what we saw with Colonial makes us feel pretty good about kind of the unutilized overhang. For us to - in the space of 2 weeks to see the industry kind of go to sold out in Clean 30 market, it shows you how little overhang there really is. And I think a lot of that's because of the retirements that have occurred and there's not a lot of new equipment coming in. And to be fair, a number of our competitors, including us, still have some equipment on the bank. So from a supply and demand standpoint, it feels pretty good right now.

Our next question comes from the line of Ken Hoexter from Bank of America.

Great round out on the details, and congrats, Bill, as you enter the next phase of your career.

Thanks, Ken.

Dave, just a quick wrap up on one of Jack's questions there. But you noted the rates down mid to high single digits, utilization at 80%. What's the normal flipping point for those rates to be positive? Is it the mid-80s that do you need to get utilization into 90s? And are there parties that are still pressuring rates in the market?

Yes. It's historically been in the mid-80s, maybe that's moved up a little. Maybe it's got to be 87, 88. I think there's a key psychological piece too and we've seen this. The customers got to believe it's going to stay there. And so I think as the economy improves and this utilization hits the mid-80s and it's in the mid-80s now that customer view that it's going to stay that way for a while or perhaps even get tighter, really helps the pricing dynamic. So we're right there at that dynamic. And we're very encouraged. Spot pricing is now above contract, and we had a nice move. It was helped by the Colonial. And I think what that did is it let the customers know just how tight we can get in a short period of time.

I thought that was a great rundown in terms of the supply/demand. Can you provide the same thoughts on coastal and where that market stands with respect to your supply-demand pricing dynamic?

Yes. The market is pretty much in balance now. I'd say in balance, I mean, we're still kind of mid-70s utility, but some markets are less utilized than others. Again, I think Atlantic Coast is better utilized than, say, the West Coast. But there's no new construction that we're aware of. No new barges are being built. In the coastal market, there is - it takes a long time. It could take up to 2 years or longer to get a new coastal tug and barge unit. Now that said, the Bushard assets are out there. You may have seen that they were sold out of the bankruptcy court. Somebody's going to have to sink a lot of money back in to get some of that equipment moving. So that's a slight overhang in the market. But as you heard in our prepared remarks, coastal pricing kind of held flat, but its utility is less than on the inland side. Look, as you know, the coastal market is more about refined products than it is chemicals, whereas the inland market is a little more chemical heavy. So again, we need to see the refined market just continue to expand, and I think that will soak up capacity with the caveat the Bushard equipment may come back over a period of time. I think it takes several years for that equipment to come back in any meaningful manner. Just knowing how much maintenance will need to be done on that equipment.

Just last one, real quick. You mentioned the labor tightness. Is it tough to get labor now? I know you've had long-term employees, but is this - what's your - how are your training prices? How is it getting the guys on the water in this or your teammates on the water in this environment?

Yes. We're able to do it. We started our - opened up our training school in January. We've been running classes ever since then, been getting pretty good traction in hiring. Similarly in D&S, we've been hiring mechanics. I wouldn't say it's easy at all, but we're able to get the employees. It's working, but it is getting tighter for sure. But right now, we're not short labor. We're able to crew everything and continue to add employees. We're still running new deckhand classes in our marine business, and we're still adding technicians both in commercial and industrial and in our manufacturing business at KDS, but we're able to find them. It's just not easy.

The next question comes from the line of Jon Chappell from Evercore.

David, in one of your responses to Jack's question, you said you're probably a quarter or two away from lapping contract pricing. So I assume that to mean going to year-over-year improvement. It's important, I think, maybe to understand the timing of your contract renewals throughout the course of the year. I mean, you said in 2Q, you had a few term contracts renewed lower. What does the third quarter and the fourth quarter look like as a percentage of the term contracts? And I ask this because if you're still resetting those kind of lower year-over-year in the back half of this year, then clearly, that puts a little bit of a delay into the financial impact of term resetting higher as opposed to if you still only have a few more left to go this year, then everything kind of comes with the upward momentum starting in the second half - starting next year?

Yes. I would say, the third quarter renewal portfolio is about similar to the second quarter, but the fourth quarter will be heavier. Our fourth quarter is always a little heavier. The other 3 quarters are pretty similar. You get a lot of fourth quarter renewals. And sometimes, those fourth quarter renewals get extended a little bit and end up closing into the first quarter. But we're generally a little heavier in the fourth quarter.

Okay. And based on where the market was in last year's fourth quarter, which not quite at the depths, but getting pretty close. And given the utilization trends that you pointed out, I know you said a quarter or 2, but are you kind of cautiously optimistic that by the time we get to 4Q this year, at least we'll be back to kind of breakeven, if not a bit higher on the term pricing?

Yes, I would say, that's fair. Everything seems to be headed in that direction with a caveat as the COVID situation. But you heard me rattle off some of those macro statistics. And so we feel like it's headed that way for sure and that feels right.

And in your closing comments, you mentioned realigning the cost structure of D&S, which is obviously something you've been working on for some time even before COVID. Can you speak to the cost structure at inland? Maybe some in-house power from acquisitions, maybe a bit more aggressive with trimming the fixed cost base because of the pandemic. And what you think that means to the pace of a margin recovery once you finally start to see that term in sight?

Yes. No, we've - as you would imagine, we've taken out SG&A heads kind of through the downturn, you'll remember '15, '16, '17 were downturns. We took out quite a bit of SG&A overhead. But then we bought Higman, Cenac and then Savage, which basically came - had some shoreside support and some shoreside overhead. And we've basically taken that back out, and we're back down to where we were pre all those acquisitions. So we feel pretty good about the SG&A. I mean, you always want to improve it, but it feels pretty good. I do think our margins should have some more upside leverage given our fleet is larger and when things start to move, that leverage should help push to higher margins.

And you can also just look across all company and you'll notice SG&A quarter - second quarter to second quarter is down about 9%. So there's a lot of activity last year marine, but that's incorporate to really focus on that.

I did notice that, Bill, is that kind of sticky, so to speak? Do you expect it to stay at the second quarter level?

Yes, SG&A bounces around, but especially the first quarter, but excluding the first quarter, which has some jumping around points, it's really the new level of SG&A of the company.

Our next question comes from the line of Randy Giveans from Jefferies.

Two questions from me. First, obviously, the oil and gas market, you mentioned still has the negative operating margin despite the increased drilling activity, the improved sales of the new transmission parts and services. So I guess, was that just due to timing delays and as a result, 3Q '21 is set up to be that much better?

Yes. Let's talk about it. As you know, in our D&S business, we've got commercial and industrial and then oil and gas business. The commercial industrial was profitable kind of in the low to mid-single digits - kind of mid-single digits, if you will, in terms of margins. Oil and gas was still a little negative. The good news there is we've had good inbound. Our backlog is up pretty meaningfully. One of the things we're seeing is we've got a lot of new products. Really, if you think about electric microgrids and supporting the electric frac equipment and electric frac build-outs, we've got some new generation products. And in that new generation products, there's kind of the first set of them, the margins are really thin and there's a lot of engineering and testing that goes on. So that's a long way of saying, yes, we believe the margins will improve in that business next quarter and certainly into 2022 as we deliver more and more of the eFrac and power generation support equipment for eFrac. Backlog continues to build. We continue to take new orders. It's pretty exciting. I would say that all of our pressure pumping customers are very focused on ESG right now, which generally means more eFrac. There is some dynamic gas blending, dual fuel work, but the bulk of the orders we've been receiving have been in eFrac and the new generation eFrac has basically some start-up lower margins. I think we'll be solidly profitable in the coming quarters around these new eFrac products.

Okay. And then a good segue with your ESG comments. Any updates on Jones Act, wind vessels or LNG equipment? And then speaking of electric, right, from your oil and gas comments, a competitor of yours is building an all-electric tugboat. So is there any interest from Kirby to get into that as well?

Well, the short answer is yes to the last. We, frankly, are starting to build a diesel hybrid electric towboat here in the Houston area, we'll try it in the Houston market. That all-electric vessel you're talking about is more for ship assist rather than pushing barges, which has a different load profiles. And we're constantly moving barges in the towboat industry. So ships is a little different, although they do move a lot of ships around. But on the wind, we got to be careful. We're under a couple of NDAs, so we can't say a whole lot, but we're optimistic that we'll get a chance to build some Jones Act equipment to support the wind build-out, and we just can't say a whole lot more than that, Randy.

All right. We'll be waiting. But hey, Bill, sad to see you go, but obviously enjoy your retirement.

Well, thanks so much, Randy.

Yes. Let's be clear. Bill is going to be around for a little bit longer. It's not until the first part of '22, but his golf game needs the help.

That is true. Sounds good.

Our next question comes from the line of Ben Nolan from Stifel.

I wanted to get back to something that you sort of touched on, I think it was on Jack's question initially. And the idea is effectively on the term and contract pricing. Where would you say that we are right now relative to sort of mid-cycle levels? And then to Jack's point, do you think those mid-cycle levels have moved up at all as a function of steel inflation and perhaps wage inflation that I think you'd mentioned earlier. Do you think the new normal is a little higher than the old normal?

Yes. Well, let me take your - the last part of that question first. With barge pricing for a brand-new clean 30,000-barrel barge being $3.6 million to $3.8 million, in order to get a return on capital on that, that's got to be materially higher. We're talking for 2 barge to kind of north of $8,500 a day to get double-digit IRR. So the short answer is, yes. With the cost of price of new equipment and of course, with some labor inflation on top of that, and by the way, we are seeing food inflation. When we do crew transport, whether it's renting cars or flying, we're seeing those costs come up, hotel costs are coming up as we have to put crew members in hotels before they crew on. So we are seeing some inflation. And all things being equal, that labor and cost inflation and the cost of the equipment inflation should drive higher - the need for higher, as you stated, mid-cycle pricing. The other thing is, we haven't talked much about this, but as you get into ESG and look at the engine packages on towboats and tugboats, you've got to start moving to Tier 4 engine packages, which are much more expensive and frankly more expensive to operate. So when you put all that together, yes, we're going to need higher mid-cycle pricing throughout the industry to recover any kind of capital.

And maybe going back relative to the 8,500 that you mentioned, I mean, sort of how should we think about where we are at the moment?

Yes, I'd rather not talk directly about where market pricing is now. If you looked at, I think, OTR, and there's a couple of other people out there that can talk about market pricing, I think my attorney would kick me if I start talking about direct pricing on the call.

All right. Fair enough. And then my second question is, you had mentioned it. We haven't really talked a lot about it, but some supply chain bottlenecks with respect to the D&S side. I was just hoping that maybe you could flesh that out a little bit? I mean, are there any specific areas or how big of a headwind is that? Is it on the margin or is it substantially?

Yes. It's on the margin. Obviously, it's very minor. It's something we're watching closely. Anything with electronics and as you might imagine, with electric frac stuff, there's a fair component of chips and control mechanisms in that, anything with that has seen a little delay. Has it gotten acute or anything with us? No, not yet, but it's something we're watching closely. The other thing is cast and forged parts. We're seeing a little backup on that. But I would say it's all on the margin right now.

Our next question comes from the line of Greg Lewis from BTIG.

David, I was hoping you could talk - I mean, clearly, things are starting to line up for D&S, at least on the oilfield service side. Could you talk a little bit about as utilization has moved up in the pressure frac fleet, like what is - how are you thinking about what's on the sidelines, what type of status is the equipment in? Is there an opportunity there where we're going to have to do rebuilds like we've done in previous cycles? Or is it more along the lines of, hey, a lot of that stuff is kind of seen - is done and it's going to be more of a shift towards the eFrac, which you've been touching on?

Yes, it's probably closer to the latter than the former. I would say, look, there's a lot of installed equipment out there that is still functional, it still can be remanufactured and have quite a bit of life left in it. We're seeing a little bit of that come back now. But I would say any new capital, the definite trend on new capital is for eFrac. That said, maintenance and maintenance capital - look, the economics are still good. If you've got these fleets, traditional diesel-driven fleets, it still makes sense to remanufacture them. We're just not seeing a lot of it, to be honest. Essentially, most of the new orders in period have been ESG related. As we get tighter, that dynamic will, in my opinion, change, and we'll see more remanufacturing. Will this be kind of blowing and going like we saw in 2011? I don't think so, Greg. I think it feels, rightly or wrongly, a lot more capital discipline. I think many of the private companies, in particular, there's not as much capital available. So - and if there is capital, the lenders kind of want to see an ESG flip forward. So all that said, I still think reman makes sense, and we'll see more reman than less as we go forward. It's just been pretty thin now. We're starting to see more of it, but it's still kind of early days in that area, in my opinion.

Okay. Okay. Great. And then just one more from me. And you touched on refining utilization is back over 90%. It's been there for the last couple of months. Is there any way to think about how long we need that refining utilization to be in that plus 90 market to kind of help tighten the coastal market, right? I mean, it seemed like back in '17, it dropped below 90 for a few months. Is there any kind of way to kind of try to track that and think about coastal really improving?

I think that's the right thing to look at. I would just tell you on refinery utilization, be a little careful in that, in the last 1.5 years, about 5% of the refining capacity was either shut down or idled. So yes, we're back up above 90%, but that's on a lower base. It was about 1 million barrels roughly, plus or minus a little bit 1 million barrels of refining capacity that's been shut down and idle. Now we've seen some good signs recently, the health issue refinery came back online, and so that's coming back. But as you think of refinery utilization, you've got to factor in that about 5% of the total complex was shut down and we need some of that to be restarted. Now the other interesting thing is rather than restarting that, we're seeing more biodiesel and renewable diesel, which particularly if you take soybean oil and make it into diesel, that's - those are going to be barge moves kind of most likely coming out of the Midwest as they make renewable diesel. So we're watching all that. Does that help the coastal market, the renewable diesel? Maybe, we've actually had coastal unit go and move some renewable diesel. So we're watching it. But again, we're still at lower levels. And I think we need some of the export market to come back and some of those refineries that have been idle to come back to really make a dent in the coastal utilization.

Okay. Great. Bill, hoping to catch up with you in early October.

Very good. Thanks.

Operator, we're going to take one more caller.

Certainly. Your final question then for today comes from the line of Bill Baldwin from Baldwin Anthony Securities.

Good to hear nice comments and better business outlook. I'm interested and once you can talk to us about - regarding your new natural gas power generation equipment, particularly as you focus on the industrial markets. I mean, you talked quite a bit about the power generation, I think, you utilize now more in your eFrac equipment for the oil and gas markets. And that sounds like as interest there, definitely expanding and broadening out as far as the user base is concerned. In the industrial markets, what's your go-to-market strategy there? What markets are you really focused on there? And can you just shed a little bit of insight and color on that?

Sure. Yes. Well, I'll tell a little bit more on eFrac before I go into the commercial and industrial power generation. In eFrac, Stewart & Stevenson started making its first generation eFrac back in 2013, which was all around the gas turbine driving electric drive. And the newer kind of generation that everybody is excited about is using natural gas, power generation, engine packages from CAT or MTU to basically develop electric power with, say, 10 natural gas power generation engines on a micro grid on a well pad. And there is an element of having backup energy storage there so that you can run all the natural gas generation equipment at its peak efficiency and take them on and offline correctly. When you start to look at the commercial market, it's more one-off rather than big microgrid that generates huge numbers of megawatts. What we've seen is a lot more standby backup power. We have a power generation rental fleet that, frankly, we get a lot of business from our hurricane backup. During hurricanes, the lights of the big-box stores will put us on standby in case there's an outage. I think as you've seen with the Texas storm, which took out a good part of the grid and some of the challenges in California with the electric grid, and then as you think of EVs taking more of the electric grid, I think businesses, in general, are looking more and more at backup power. And we're really trying to capture parts of that market with our OEMs that we represent, the engine manufacturers. And that's how we are. We're a distributor, as you know, Bill, for a number of people. And essentially, we're using that relationship to go to market for backup power. We have a pretty good presence up in the Northeast, and we've been working to get into backup power for big financial institutions, to a lesser extent in Florida for some of the kind of healthcare, nursing home, hospital type backup power. It will be interesting to see if the grid gets more and more utilized and electricity becomes more and more important as electrification occurs across both the passenger car market and other markets, what the demands for backup power will be. We're trying to position it. I would tell you that we're - going to market in the future will be to take that backup power and couple it with our energy storage system, i.e., our battery system. So that there's a situation where you can charge the battery and you'll always have backup power and not need as much in terms of diesel to drive backup power. Maybe there's a couple - coupling with solar on certain rooftops of commercial buildings. So that's all kind of new areas that we're working on. There's nothing to put in the model yet for that market. But that's what we're looking at and what we're pursuing from an ESG standpoint, Bill. End of Q&A:

All right. Well, we'll go ahead and then close it out on that note. Thanks, Bill, and thank you, everyone, for your interest in Kirby today and participating in the call. If you have any questions or comments, you can reach me directly at 713-435-1545. Thanks, everyone, and have a great day.

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.