Evolution Petroleum (EPM) 14 Sep 222022 Q4 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Evolution Petroleum Fiscal Year-End 2022 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. to Stash. call like Financial to now Ryan Officer, would turn over the Chief I ahead. go Please

Thank you, year afternoon, the Ryan and good Chief fourth call our Stash, quarter for earnings and Officer. full Financial fiscal I'm everyone. XXXX. Welcome to

a Kelly Board with return Joining our will and Chief member Directors. review statements, operational Kelly After then I key Interim Executive me Loyd, provide President along and results. Officer I'll to today a forward-looking highlights is of of detailed cover then it closing and note more And and comments be at before information take Please may some review. will provide time-sensitive accurate and a financial Kelly questions. today statements we up that later are not provided date. open any your the

will assumptions with forward-looking Actual beliefs and These expected. contain differ available information. uncertainties management's of described materially based filings from the and statements listed currently in today are to and forward-looking statements our that SEC. Our subject risks may on discussion results those are

As well note release, as is this moving these Please detailed primarily us in conference yesterday's this and strategy, will our available earnings readily affect focus on being key results numbers recorded. and call operational forward. financial how everyone call that as to are

the December listen until If to XX, going will Kelly. be XXXX. to of that, you available call wish to replay today's With to now by via or the replay a call, over turn recorded it company's I'll website

want our drove many Thank for today's marked strong exceptional and a the Good dedication And fiscal an you, everyone, quarter that to fourth accomplishments. work workforce for call. end The Ryan. thank afternoon, company's continued us I for thanks their hard and to joining XXXX.

more we EBITDA year-end that XX% June XXX% across ‘XX fiscal higher, replacing of increase XX than XX, reserves ‘XX, production. year-over-year revenue production adjusted including an that and fiscal posted the higher increases During XXX% was than growth XXX% of proved XXX%, of were ended material months including board, in the XXXX,

invest. on and total focused we shareholder dollar that are return We maximizing optimizing every

significant enhanced million dividends operational used generated maintain shareholders $XX sheet to a pay such, and our almost cash flow development during debt, and the balance our fund through strong of cash in As rapid by needs, year. we reduction base to the asset our

We December $X.XX longstanding has XXXX. are our that proud capital program of approximately consistent since returned million common and $XX share per or

We long continue the key A that have with for and capital. to low of decline support the added gas proved term, located our our life a the long substantive quarterly and County, strong assets return Bcfe Xst will of benefiting shareholders dividend in a fourth Sublette immediate Wyoming, the of of XX.X was April acquisition closing natural reserve inventory. of Field quarter highlight weighted that assets in Jonah steady

from weighted financial operational on XXth. also and asset benefit quarter a targeted and a enhanced assets We fiscal the with generation working and North immediately purchase. assets across sustainability supports operators the reserve transactions they source further support strategic diversification flow both and significant for collective us XXXX and in into the our as return time with We accretive XXXX, onshore key develop capital expanded look overall and at geographic expectations Most well-established plays. full provides growth playbook multiple The of the in in we position beyond. purchase from for operational two of base move These that cash places saw flow opportunities, oil to locations, Williston as funding acquisitions closely effectively were our in our in to of place categories practices businesses. program, that has leverage that during of best forward visible years follow Basin January of provides these cash exceeded strong shareholder our future closed the proven further acquisition a mix in XXXX U.S. enhanced of our our important, Dakota our an fiscal product executed footprint the providing combination long-term

fourth BOE per was which net in per quarter, day, X,XXX net third we than higher the that we produced day the During quarter. the X,XXX BOE produced XX%

from resulted in on pricing, we down pricing additional of can debt debt cost and the fiscal from significant remaining we to remain as of to fourth down do September end XXXX, quarter, additional million, the million outstanding before EBITDA the cash million opportunities credit combination the XXXX, the quarter that operating by During paid flow almost the paying we for generated increased the third benefited quarter We fiscal balance debt Jonah under Xst. closing the of fourth free acquisition. was production increase to execute prudent assuming and XXth, $XX.X we down control our a facility expect The acquisition commodity Field We $XX be pay have then. of quarter. of fourth no which committed adjusted management higher quarter and of expenses June exception. following of $XX.X not well and as quickly XX% during as have Since used we second

and dividend XXth, of $X.XX XXXX on fiscal a We share also consecutive pleased cash share pay flow June paid dividend September. the to declare our cash common per used operating per to are end XXth of be to quarter at of $X.XX first quarterly common

thesis. are an repurchase our of maximizes shareholders. so light, a December dividend as XX, substantive it cash announce to returns As The repurchase has shareholders We our I program XXXX. that commitment shareholder view unwavering, authorized is ongoing to we our complement share program. dividend repurchase In $XX authorized share investment to return, as and to to quarterly our fundamental up pleased million that is a for paying total long-term to augment our to a can visibility Board through our we newly mentioned program earlier, our

ability we accretive the participate expect assets. existing acquisitions outlook, our don't to repurchase price the commodity to increased limit complete share current or drilling or the on in on based dividend Additionally, our any program

fourth the X% Looking oil barrels at detail, XXX.X per oil our the results equivalent Delhi quarter of at equivalent X,XXX of from declined net third at and in XX.X slightly conformance oil Hamilton volumes. production days slightly per in Delhi approximately the they primarily to MBOE increased the or quarter, barrels to a fourth barrels the quarter more third in thousand quarter. during operator net was day to NGL perform decrease sequential per downtime from at XXX day. a related production facilities. NGL in higher the to turbine number XX.X upgrades natural XX% April plant extended primarily that as XXX of production operating production the Denbury as is declined to continuing lower was are to decline On workovers Driving due Dome from to and due day. a MBOE issues, basis, to well

expense During AFEs we workovers. from Merit for the in capital received XX quarter fourth

our support day, Basin calendar maintenance which volumes, to of decreased the wells, very for to including was running and We restore XXXX active day. Energy XX% or other for October, Williston MBOE increased MBOE Net projects. since throughout or approximately our their execute previously oil. X,XXX workover assets at on net to will continue XXX.X Barnett in shut-in last operator production injection one locations targeted X% quarter continuously X% rig to-date. production BOE fourth per BOE Shale them for efforts has Fourth to per XX.X production quarter and adjust becoming Diversified water been XXX assets

immediate In During due our the and levels locations. expense April, recompletes underway fourth high we the downtime operator with drilling and reduced and to production. workovers, our evaluations impacted Foundation Three that extended and saw opportunities. Pronghorn, temporarily Management quarter Energy to winter closely continue weather Technical high term, Forks drilling sidetrack severe grading to work oil production we on grade assess remain

low acquisition in I gas gas. As April Wyoming. Jonah on in of natural quarter MBOE. Field production embodies earlier, X for the weighted closed XX% natural a day, The This natural to on fourth of acquisition the future closely cash Jonah or With Jonah Xst, our field. was the now we The that, markets, the financial Energy was that will discuss of sharp for Net X,XXX on efforts Bcf per production I highlights. Western gas to assets development long their included generate support reserves and continued focus also transaction XXX discussed decline turn BOE our work total to our the attractive in Ryan of Field with and continue life, will provides access call flow. to significant we over

Thanks, Kelly.

of for XX% comments fiscal today A fourth afternoon earlier, fourth refer key will XXXX results. between basis, to concerning a was of our full the fourth million $XX.XX results adjusted quarter XXXX. and comparative a year of EBITDA million quarter My increase $XX.X primarily the quarter quarter quarter. generation release our additional which yesterday focus EBITDA, higher highlight was press mentioned on third in third information $XX.X fiscal the quarters. a As on fiscal adjusted from from third of per the please BOE and than Fourth which was XX% was

outlook, share on represent a strong of of has first shareholders while importance debt. of small of capital million $X.XX the returning paid of record per unique XX. the share as our through the September solid a and and cash of out XXXX. positive operations, view This of or recently flow years payable per value to XX, dividend. in consecutive authorized evidenced to in of down to we the in our dividend development E&P paying fiscal fund generation XXth operational This XXth space, to expenditures program paying our outlook, quarter, repurchase the $X.XX cap dividend XXXX share clear million representation December an fourth $XX increased shareholders. a by for flow dividends quarter will a is of up nine declared Further cash we our cash operating continue financial and also how We Board of quarter highly cash and flow, our Supported $XX by September but

incur fund to our a operating maintain to We cash expect enhance repurchase strong repurchase Consistent on returns the means flows sheet. squarely our with debt. as working ensuring expect not balance do the program remain We any financial focused with view to a our efficient management, conservative shareholders. to we capital program and we tax and

$XX.X XX, cash of liquidity and of $XX June working million $X.X $X.X we million. of had cash XXXX, of of and equivalents, As million, debt million capital

additional any have of us paid any our was and as facility what on June Also, in additional add credit We have remain did below million incremental threshold we that requires our the not XX, enter down hedges discussed, filing. September Kelly $XX.X outstanding Xst. hedges. debt previously of quarterly disclosed As to debt beyond last since we into

in in million and or $XX.X $XX.X more General chemicals, expenses compensation Net to from was maintenance, higher primarily and due the a downtime severance. a lease $XX.X for million was million included in increased the the to quarter. was from the or financials million quarter. were to stock-based in in driving quarter gas Jonah increased which diluted administrative water million, $X.X $X.XX increase XX% in Xst, to XX% by in to closing fourth in pricing; Substantially prices. volumes, higher reduction driving due Lease acquisition $X.XX due per revenue, at increased in the we a income operating Adjusted $X.XX with $XXX,XXX and Field X% third expenses forfeiture quarter. which increase Also the Field diluted per hauling, On April, fourth to expenses Looking the and payments, the for Substantially basis, $XX.X million offset to revenue unvested the $X.X This quarter. Jonah the pricing; the for Field compared result the sequential the acquisition connection NGL quarter, XX% $X.X share million This Field related on Delhi the third total to to third was Jonah taxes. $XX net million share to in the the of Included an BOE per slightly Jonah NGL increase detail, to of quarter. revenue at to $X.X a fourth quarter increased revenue from grew the to in increase that and per higher in $X.X the the $X.X oil $XX.X as $XX.X Jonah or the in million from production natural in diluted and million fourth cost million realized compared a acquisition an shares at as plant the Barnett $XX.X in per well an of non-cash April partially in charges commodity increase million the third million operating decreased the as $XX.XX share due quarter severance quarter volumes XXXX. realized share primarily sales increase commodity acquisition. to was million third contributing transaction $X.X the $X.X income was were the quarter. or third third acquisition. $X.XX delivered versus million was increase quarter Field in fourth repairs,

quarter and in $X.X invested development million fourth full XXXX, million we approximately the and During capital respectively of year and $X.X maintenance expenditures. fiscal

include development Forks. fiscal development we $X.X central Three the the at $X.X in total Jonah risk to the currently projects Basin. upgrades the Williston Barnett For million. of of Shale expect includes Delhi and XXXX, facility, This to This and Pronghorn capital Field expenditures estimate Hamilton development not low the workovers million and does Dome,

on our As past, with in partners, operating other pricing conversations depending considerations. the our change commodity and may outlook spending

I turn call to So for the back closing over his remarks. will that, with Kelly

Thanks, Evolution was year its Ryan. clearly Fiscal a and transformative XXXX for shareholders.

Through and in low-risk a with transactions, Basin footprint secured quarterly optionality opportunities, capital share while our important, our prolific onshore key cash acquisitions into visibility Williston drilling accretive provide Field our and newly partners. and increased program. additional growing our invest and production regions. meaningful we dividend U.S. immediately through maintaining announced and for repurchase these these longstanding producing acquisitions strategic shareholder our development for of program Our return Most also organic ongoing expanded have have mix Jonah to operating and further further product diversified

Board staunchly our increasing a with the to we our on value of their long over term. efforts. remains our return We and payout cash investment. the ongoing clearly and, appreciate providing substantive tangible Our maintaining their appropriate, as And dividend recognize committed of support truly shareholders consistent

past, and transaction and our acquisition do in result provide and the established dilution. a our support to accretive, oil of we providing that on are must any strategically industry inherently long assets base Any is targeted opportunities in gas evaluate life longstanding expand not return total material our clearly closely production, for continue thesis As volatile. The also will immediately execute significant of shareholders.

ensure that long and we cycle. So sheet take we to continue through a the to us will the view maintain allows strong succeed balance

Our our the to to remains during months, debt don't our assuming within key timeframe. a corporate pay we're below annualized on the that conclusion, track proven leverage goal is on and down of In all Xx execute of strategy believe few our pricing of we is Evolution. further strong, our acquisitions keep EBITDA, differentiator consistent outstanding we and next any and needs squarely focusing for shareholders on commodity

by where we We dollar pursue invest basis, will the a total shareholder on the value optimizing in to are to designed on return depending maximize of every we initiatives risk-adjusted continue cycle.

our building open to of to to ready Operator, has come. benefit for we take reserves shareholders for to supporting questions. With approach base, continue past asset decade, PDP shareholders years Our that, and questions. a payments cash are a served please the targeted well line capable the over us will of many

question [Operator Instructions] from is ROTH Capital John White Your first with coming Partners.

for very And see before the results in of have on CEO or been just a CEO on a appointed? hold acquisitions quarter. terms until acquisitions Congratulations timing, acquisition we you is could have -- permanent new find strong an put additional the

follower you appreciate and question, coming our it. the we help a and on appreciate know John, help and really of because you are people So, us valued understand here stock

an there's potential be -- acquisition in make the search it we efficient that case if done ahead before forward or acquisition go that other a of to timely act to appreciate and acquisition exists. that words, that come to finalized, on no if the makes CEO said, we'll get Listen, deal based get sure that's it really In spread. But in right of acquisition is person go in accretive, pretty be really I an and sense. really sellers Listen, goal But timing and happy buyers bid ask our there's couldn't and between will be to will place. So highly if hope the question. about, manner that that. a now. required an it's we The manner. with has to reason the a think were the happens gap be sort right right wide on whether something is

I answer. I buyback. think stock investors an I appreciate stock and words dividend and were expecting that saying, would my and conclude on any the and and especially expecting increased that move in size don't expecting, I increase very dividend the wasn't as dividend I buyback, expecting And increase don't announced, wasn't investors I as was large a on the your nice appreciate an of coverage. the don't was not were kind think announced. I I think by

shareholders. to operator. it you those moving I'll return for capital So pass kudos to And on for items on that, back the with

Your Schafer question is from Markets. next with Northland Capital coming Donovan

did So because pleased to results, me seems it have like have you you now. the was fields more -- with I

so COX, And down also I'd I winter with headwinds know, of at had I get There's average was impacts but like the you to that kind more the NGL in some this Delhi. COX. maybe manage, as reservoir still plant Denbury where weather kind the have production their feel Williston. see an issues the they number assets with of their of above

lower. results And So COX the were was injection good. quite bit yet, a

Field, transportation that with X% you like it. expected, looks a was something into closed Henry up or the up basically, oil getting difference all you're of like the production came on the and because and for pricing to numbers, nice the pricing it I a the at than that made end guys, as those of oil, lower very and Jonah up Hub because differential kind got basis improved versus actually -- for, of think, selling then I differentials, I made quarter. premium stuff And you lot of me, discount, it but was have in rest seems differentials. modeling to all an surprised costs analyst pipelines. to reasons And significant everything, that At a peers see the -- the the significantly then

in there if of don't headwinds, better So There's almost pricing even Coast what average production -- headwinds? gas, in -- around issues. there there's of improvement -- at as I was every sort some going be maybe of But or That's level, to a a West to -- quarter, I like but above But this seems would these getting not something, there. nature kind you you sort business. the for the of think then that made maybe high know just consider kind this the the seem the been the am always going it basis at would it I'm with what's production in high on natural sure Is up to spite of seems accurate? of and differentials. Williston that characterizing level thesis I was of accurately, above average, for have

Thanks for the question, for call. Donovan, and the thanks joining

it’s think talk you're good mean to I So I Look, here. you to right.

certainly headwinds June, in as of actually, the and really, as a the there's little some goes, bit production think headwinds And in April at Williston on in far side side, to due too. of the NGL had oil some I Delhi. the weather some windstorm on we

point differentials So bit did perform your well. to of there headwinds. But was production a little

have some you as benefits, Delhi. know, seen nevertheless, on in We pricing,

on Jonah obviously our play out gas helped And in the pleased that had we the the in point, your So were we Delhi. asset see pretty of thesis right. on and buying well the sort to side. to well, side, really, really in came Williston differentials

hoped especially Henry that a premium hope Hub, which for going there. into months. to is had the we've And So, winter and seen we we think to continue

in again differentials right? base, have I even So different headwinds, have of thesis were and was our -- regions diversifying assets sort geographic think came with it's of as some nice in overall, and asset that but we we our how to pleased I well for commodities. spite production mean, different in

asset is in going one the the continue can other it And pick up. when that's so hopeful down, of And kind of to future we're here.

Okay. differentials, the I'm in and Los -- based on Coast pricing actually, it's West so Yes, Angeles.

these California I've so peaking renewables, Flex grid. plants. out coming means with Alerts increasing the independent of subjected And service been the that more of and the potentially to They're operator penetration

natural Governor kind I the having it gas a from and believe to just like Newsom as and backup. it shutting down it was out of owner become an emergency came Gavin the proposal I a to almost think, state for actually, prevent plant of

into Have is it expecting But of fourth a kind is of, continue? from of of you thinking acquisition, the thesis which is a just Jonah standpoint, differential see see to second Like of with What's the Or kind trend more already reported some Opal you're you that a widen the to hub, that, So you the September? pricing been to in that selling allowed continue? are -- the expect it'll Field I in the trend think seen kind quarter that you August, do you bit July, see and guess but just there? I in already guys realized sustain. sort it's Northwest?

well sort marketing, contract, premium assets the what next currently pricing hope kind Historically the currently what be done the say, quarter gotten on winter we've right, And should to the we of we're certainly has on summer-winter, been better took really going to Henry got over for doing so And with a like. to obviously summer Pipeline, Hub. look we it the winter month Yes. One compared will -- which than which so Northwest right? has feel I field, better would our so pricing. have six a thing of -- out we're we we're actively just marketing way I but contracts,

in see the out certainly winter that we're going optimistic for an the and hopeful to even than better And summer we so there. we're saw months premium

standalone the Field, plant COX actually a the have then capture, think pumping to it's coming or maybe be -- move I the up COX a before, expenditure the as Field, tip, some project from there I'm potential that's Inflation there carbon that down there's expand expanded place or would into sequestration, on deemed just a but phase you sort in curious, were of asked kind Act, the phases, emphasis if capital guys there actually wings and that after you this something? not of. dip, Reduction bypassed where Delhi are later getting like all the for COX that reservoir incremental Denbury, incentives But they're go benefits out And where can in that coal Act of storage might either apply yes like or or they're stuff, you're occurring of coal was something, Reduction just the off and not providing or gets if unless Delhi COX I are Okay. naturally Inflation plant that

I mean.

I'll Ryan, take it. So

consider A COX, couple answer it right, you if guess seen, goes right? Donovan, the line. be remains have it, is that same to of So parts it to to I question fungible would the into

So to into our Do sure out, figure It's we for something credit need we percentage of for line. get or green we're connection looking actually the to is though. that not? some

hopeful And of think the XXQ been it’s in doing I it the right? Denbury mean, something, the sort as we're with, around. that's Kelly I specifically, said, mean, really, And work some has as Reduction I we're as process. credit, right? I far Yes. mean Act, extended

COX a capture are with said next signed, contracts in it, of and field, and one Delhi Kelly's as certified start there's and process to other So around doing I well. going green a actually carbon done then as too. getting past they've industrial Delhi from they've the they're it the fields, taking think step Once it be, with two whole happens, the or would to line that then point, they we

a if field, on little that any COX us we're take that. pretty with a the And that But is a credit, in a for gets we're benefit certainly at looking do certainly we're there to going ways so And off XXQ question closely. to that.

Okay.

some not we a and yes, -- the of each at be oh down So and we point, was unfolding more a cheering, gradual, and hidden act penciling missed and it and okay? passed, like up all should of benefit, out jumping kind just it's all

say change, to moment, its Donovan, this that. we not any would the but moment. at components -- It on that Evolution not at doesn't other I mean have would I we ascribed value may value

sense to perfect me. Makes

And look for then like what we've it a program, the further compared spread solidly, XXXX, repurchase to as Okay. the healthy I that further CapEx think, doesn't non-operated so, can for share -- go or and number, participant a it's done have of I amount, the because small activity portion relatively than face seems just just kind of guys you dollar expect you still the I have, minority versus amount to it be happening. of But every that's or the cash generating.

-- of remember But of where I things tax, always companies going acquisitions now those that on confidence it otherwise of that effect materialize, do But open give be the action think the certain into see into and of no don't take the buyback in times relatively course, thing incremental you're understand should would not influence kind may trigger year. be this kind establish more when of can't obligation on actually effect, near-term buybacks? acquisitions buybacks, programs, us versus there's there's I them. greater if we to these So, execution should the goes on factors add does other your everything. I terms and pulling -- an be X% we that that look, sense -- And quickly in

about Yes, be course, of cash amount, great. generation, a just potential So, there though, how is from some And that'd curious there, small and tax capital thinking anything spending if at that? you’re some versus emphasis the there coming X% point, tax?

I'll no, questions. Yes, get

returns. toolbox, think from the to give shareholder for authorizing perspective another you the right, from Board's I is the step us if in program the tool, first will,

extent we for on can we're it be felt it. on in based any was given sized kind size and and on depending to some program you much also Obviously, limited see was going And cash a execute able to day. how good the so, is it to rules, which being buy of outlook the XXb-XX we flow

from intrinsic the value opportunities So, of where are to the feel we we limitations value versus going inherent scale market there some and the the day the program but appropriately on we're is other have. given any for SEC, stock

to think still market flow certainly fair of and right? and I dividend of out buyback the go pending us. plenty is it -- we of some still are have powder bit similar unfold, your And do And we and program, we there with going a seeing cash you're the see we cash to we're sort think there to increase, that even to see some, free So, acquisitions. dry prosecute But potentially rules. SEC the as adjust point, generation,

certainly of wanted the tax, go we hear into the mentioned at that forward, be going have SEC we excise and a reporting as it's to rules place little to but a And took we bit it's consideration something on. You've certainly other well, that dynamic. we'll in execute

a needed somewhere. that Just as listen. the point to to program. need it our total to fits shareholder start complement We make sure is, We return

sure on the it's we best. where to said, fluid, we as it's it's something we're revisit basis going And started. Ryan fairly continual that's So, to make a very be dynamic, doing

or different you shareholders. you returns providing talking the think way guess I I returning about well, two this it -- vehicles, to it, way, thinking guess and if of the methods the wondering you’re I'm about I'm as -- And about got

of the really long dividend grow you base is trying retaining to like a that way do yourselves the -- to with to dividend. timeframe. involves sustain consistent a of enough Basin. reserves over as kind company And through this the cash provides over large and a them you support it One option. Allowing yourself establish you're the base enough along the That grow Williston reserves -- dividend growing yourselves time. organically and can it dividend flows that one gives And

make That's asset another acquisitions. can option. You one

company company, this sort of And kind after already acquire and asset different reserves. So its giving able way and ground. go share the respect And a barrels all you have they we buying sustain add is selling also sit I'm our basically undervalued can reserves, essentially? a can of we ownership and back with by the reserves, that the if You will or dividend that own for this can own your -- and barrels it's remaining different feed organically well, they're outright. buyback valuation reducing dividends. per other go we are multiples, to right? share, in outstanding, to of program, even you even of trying thinking sort after per We sources can or like, a those shareholders develop taking To larger look buyback kind up or, a in in were this barrels kind of the by barrel $X.XX of paradigm, you increases at shares more of a of barrels, larger to reserves of they're the your to companies way, share out share is the their kind shares further and that can back number of spread of all

type that, Board going to accretive be conversations exact of take we so. are advantage are at be we have shares of our I acquisition think to level. opportunity most we and is our to going where times there want to mean the the have These

All Okay. my the and awesome offline. on will as And congratulations that’s guys, leave the Well as quarter helpful. take Well, -- rest will but it right. increase. there I I done. questions far of dividend super Yes

Old is question from Mammoth Locke next Your coming Investments]. [David at

shareholder the and accelerating the for to activity and First a you pausing and acquisition bit Board of little message heeding market and off, Bob the returns. I'd like thank the your

You are see. nice is which to rewarded for it getting today, nicely

That you. our job. thank Well, is

long-term the best to and foremost, capital for evaluating options ultimately is are them. invest, we're what and company shareholders' the sure success setting what in highest up make First the to return

So that's for sure, things. the look way at we

So a CapEx you if mind. couple wouldn't of questions,

is investments just hold The gave the release, thing to be blocking existing that first tackling the the which from press sort enough that, your looks plus of production minus expect and Would on here? you that in you or things like flat would numbers assets.

development question. And tackling, a at and standpoint, probably what's And think known, say And from your of Forks right? with there. partner a and No, our Williston, a some least workovers, bit the return what little production. I lot the think locations blocking a production there I that's point, of some we full drilling Pronghorn still is that's kind Foundation. mean, to I that I we to great development it's in is Three of There's would of on in the valuing mentioned, there. we're not with But just other budgeted sidetrack

in be we the diversified to that it's is Shale specifically, Barnett we've completely keep itself in out we think going decline going production but seen to enough the do say and Williston. to help to going of rest wouldn't to flat, from it's the think and and in I help as certainly So

Okay.

to thinking should budget XXXX? I'm like that, I the about if to something CapEx, fiscal for add So maintenance

think I fair. that's

you're bit organic the maintenance get to could the opportunities we've which sort think that add, up either come true acquiring of past, assets -- yes, with maintenance at If capital be extra with amount. you I or little a up capital come done a of the which would capital in looking need from drilling, number, to we would would

make available? Okay. And make and to potential to make a then that or equipment partner? investments and happen covered any that happen to operating then, internal timeline do people that your by development what sort making guys to to will you get on humans of also And moving are in extent essentially that have the in for decision, what plan not Williston, the

it. has it So And good details very very, a of lot question. to

go we there like very than had faster could know, -- several Foundation. we're We've that crazy, be ways working do. can have a goes, And And it operating be drill the together. gangbusters, opposite. and wants be good partner relationship it As you we this with to could our

together are going we're out be figure in on to trying we that'll to that so working everybody, happy. and this suit And the plan ways best

when shakes affect you do Pronghorn, a know from is then grading I But right, I the so to depending it's because This active it. hard something is the something And guess basis time assessing ones to at want high how that, let we're looking looking and kind can it is out we're us. bigger the see answer. very you'll if your Forks. on actively together. question. on And the answer at of And Three that are we and

sort is of -- other vertical together. we some do there's PUDs that [Baird, that that The can side Nisku] could of some Bakken recompletes the we together. There's also do

sense. it's that's do, win and -- if that will going to priority, there's one a competition for best And what ultimately right, out. So the we're makes dollars,

know extent makes theirs, you your that of to on AFEs try That the bunch To Financially, rather sense. your the lot any but our risk by can of you a and large total fall? show a future back just hedge the absorb lap, of drill so sort how flow what, if prices or would either up cash you commodity election approach production would say, of got that? then we these we sit wells, we've

it's that You at that that's to going but drill, sense discuss would we're commodity the a and it leap standalone pricing. if projected we something because project general, know further the our to that we philosophically, -- decide makes in take do

think commodity does do to also in going and it's be We when We'd want us prices hedged. commodity to in people markets. exposure we the rather to they So unhedged. up going job And outperform better our remain invest -- Board not are because when are things the choose general, down.

we hedges unless want from So in away necessary. stay to general,

David, would the would We're just that. as to cash how add with not drill. would going within to past, flow mean, quick, I we to right? mean, in cash flow, -- outspend drill been I Yes, we've we real conservative I

we case, taken a certainly the sense, And or about so, where would be debt, to to but evaluate it flow. As deck to going think the on that at to would than right? case cash And certainly not economics down that lower in will, they’re sensitivity debt, to strip, we're be if we project we're unless worried needing we not hedge pay on Kelly a again, you sense. going makes within test strip do said,

Okay.

of as do some capital utilize the then you'll should think drilling kind I growth, internally. that then sort subject go that constraints probably external sort acquisitions, of and of any to you yourselves? to So of growth you will And extent that self-impose Xx you EBITDA guys out internal fund on like

say horrible this, look can at it. to I not it's way a

performance But a bunch. only it's was I on the expecting for the glad really one. one I I'm Thanks what today. increase the stock was worth. the of Maybe congrats for and

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Wealth. from question Ascend is next coming Your with Bair John

conversation the you at that sense, going look congratulate development going gas predominantly off a this bigger spot to are in as on those to and put on into increased to season additional some we're I'll given of kind preference development at the in to on the I I or echo any kind were and opposed prices decent dividend and that ones oil provided in winter got do previous guess have you is, basins, color lot -- there? get. various you out just wonderful these and the drilling of A we've way out as in I'll of one a other a at it comments good but point quarter always was there, the going look gas pretty another,

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say, of advantage that well to exists real a right in drill differentials of, to I I us any able think prices, a for it term be online get in would near to take the sort don't now. timely just manner and in

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deck real the I either to the to I a or of or and need the aggressive, we're norms. some in flow kind think Potential strip. aren't sell. is kind to to to look, need in discount are price a situation reason where a sellers be So some cash elevated, they their internal a at they point wanting cycle versus reasonable where buyers, highly are has feel it in position think This a where deals prices historical to producing significant of really commodity unless most relatively have amounts led or price of

pricing strip. And So sellers want bid spread. wide and to forever. are pretty to to ask cash need the the month front printing backwardated sell kind discount it's a lengthening don't really of a want Buyers and

lots I of say out seeing The we're will still So deals. this, is flow there.

be are find here. our professionals the harder of this on beauty transactions say have them. I has accretive a outstanding I out we accomplished last you little will there. and They're bit to what just team point find. think the some want to there and just currently, is, some But to there There's highly got

the terrific, at, functioning, we deal sheet, we decline, long partners, clean, can regarded one soon portfolio, here, talking the and Ryan any You're anything. low look he's to evaluate a team balance the capital motivated highly that to built operating look very of of on the highly have them any deal. to pristine do diversified We highly life, be execute phone, rest and they’ve on folks

a that deal we if better get position can can a we out at ensure that at So a done of will but have sort execute can deal. be that than to. deal, consider we metrics that in where philosophy rather we that any transact bad we want no in is activity we we're And a position will to than M&A to live

are So I know in where hope let you that helps philosophy. we that

from Instructions] Old have additional question an [Operator We [David at Locke Investments]. Mammoth

Just M&A environment. on question a quick the

you of I in Foundation the ask at where's of paid the is kind bid sort the you now look where guess? flowing what and per from those barrel too and If Jonah, flowing market MCF or from deals, owners? And

So, I the of get back with been -- can yes. tracking chart deals. front we've to where me, I have it have in I've a but don't I you this. got

from there can trend on by if enough but not on say a -- or sure up moving line the normalized we a where you it, last at gas deal you there's mean, course, purchase And a steadily Of indicative, flowing for everything a looking basis, is oil, stellar we that I'll the is this, it's MBOE say did time. where I is Jonah transacted. fairly like

Okay.

do if they'd to at today, were deals the like you year? had if paid that earlier in you what those the to market say those on you'd deal, So be premiums significant

Unquestionably.

because back the so one was was too, of asked the end. they one John want lot that us of traction getting came and deal that earlier sort the M&A Jonah a It wasn't brought right? in us, flowing broker half, to our probably XX,XXX not right? I barrel when a -- closer So of lot Yes, do the bought no, assets, mean XX,XXX whereas probably it right? are I without it the was metrics one the market, point trending on to at just one environment, to roughly in we surprise, make I to mean, the per

broker There And in here bit that deals been, so heard there out are you side haven't of have come just a those coming like months. the of activity are out. of I feel seeing have that necessarily little come and see slowed closed. lot has from a But certainly lot have teasers teasers that opportunities the up the market could a may next in that the few I

things I sellers out. for want could so coming really back to And right, that see get around,

we're So the something always lookout buyers that that that's we always, we're on because clearly. are value for,

Yes. everybody when a be buyers It's to value tough cash. washing is

true. is This

right. You're

to time. in like There remarks. be queue turn the questions further Lloyd at closing for to Kelly appear floor now would this I any over no back

your total We in We the taking appreciate and appreciate everyone continued our return. to here and of long our for term shareholder participate to support maximize enhance efforts value listen time our being and call.

if please quarter formally forward again you and our questions. I always, team to have when November. we here us feel additional look any ‘XX first our speaking As and fiscal in to Ryan report free contact

again. Really guys. appreciate it, So thanks,

you, Thank conclude ladies today's gentlemen. and conference does This call.

lines Thank at your this wonderful and day. you phone have for may You a your participation. time, disconnect