Evolution Petroleum (EPM) 13 Sep 232023 Q4 Earnings call transcript

Good afternoon and welcome to the Evolution Petroleum Fiscal Fourth Quarter 2023 Earnings Release Conference Call. At this time, all participants have been placed in a listen-only mode and floor will be open for questions and comments after the presentation.

I will now turn the call over to your host Brandi Hudson, Investor Relations Manager. Please go ahead.

Thank you. fiscal XXXX Petroleum's call. Evolution to full earnings year Welcome Mark Chief Loyd, Ryan Financial I'm Officer. and Kelly and Officer, Chief Executive Treasurer; Chief joined by President, President Officer; Operating Vice Stash, and Bunch, Senior

released these results the our results. financial earnings We fourth release for refer yesterday. after fiscal year market XXXX and our additional quarter Please press closed to full information concerning

earnings of access our release our can Investor section in You Relations website. the

as provided note not date of any later only and today's Please any be may a today's information XXth, information in and that at XXXX, date. September speak statements time-sensitive accurate

Our described currently of obligation available statements our statements. results Actual in discussion assumptions, materially subject management's on forward-looking forward-looking These assumptions risks, statements SEC are those no filings. based contain undertake today differ expected. information. We will may to to as beliefs from any uncertainties forward-looking update the and and

certain net measures adjusted we including non-GAAP earnings may measures today's release. closet the found to Reconciliations During income. can in comparable GAAP our discuss call be financial measures adjusted of and EBITDA these

today's year call back to begin Ryan COO, Kelly CFO comments; closing then few our Bunch; a operational turning results will Kelly from followed by Mark review will comments. Stash, financials and opening before fiscal our with for over

After team the answer will management our remarks, any prepared be available questions. to

being is conference recorded. a call this As reminder,

be available Investor to a today's the to webcast it wish on listen will you of of If our replay section website. call,

the With call to that, over I will Kelly. turn

of fiscal operational thanks us our appreciate for interest for successful joining today's Thanks XXXX reporting We Brandi. everyone's results. Good everyone call. in and financial and afternoon our

results, the general San morning related to It's jointly to in announcement a oil-bearing Permian put the to comments make like field conventional this develop of our begin County. to in first play New Northwest we agreement located I'd Andres before out oil Southern Chavez participation Chaveroo the in discuss Shelf Mexico. concerning the we our PEDEVCO definitive with recent Basin However, some

and of PEDEVCO, We're will highlight later, this providing proud with out details to point biggest total arrangement superior of partner let to values to I into first. this a that returns want Mark the the go strategic partnership shares goals I but of our company shareholders.

exciting The a opportunities. order quiver in the our deal adds and grow new reserves, In and capital heavily A&D we arrow relied our past, allocation have of production to in market. the on

or asset that quality we've what While this are continue be agreement strategy, successful reserves, covered its in to times even maintain where high grow unattractive levels. and locations plan been quite XX-plus consider will priced by and to production to we at Evolution the transactions allow level

the for we turn, here highly In market Basin, an in to this come. important dividend oil wells Permian our and years XX%-plus located be supportive want is to which which to believe exposed. we will be program are The to

our results. XXXX to on Now, fiscal

results again for solid and our shareholder capital dividends. to to fund used Our free to flow. operations, spending, ability flow cash We assets' strong continued generate demonstrate our the once cash and were period

that exited report liquidity. of all flow debt, with cash from $XX.X the we to I'm In increased and free repaid debt pleased addition, and sheet a million balance year again,

we'll cash years meaningful to over previous flow objectives. our the use acquisitions fund the from strategic free to We generating completed and continue continue these

accomplishments value and for our and to and team Evolution direct long-term member of thank want a driving is success ongoing every our reflection contributions of and to the I our course, each for team. shareholders. near of continued Of hard their work dedication the

than clear During we fiscal business. strength for year, growth of view the dividends was the cash This XX% a of which our we as share. totaling fiscal paid and common per indicator higher XXXX, $X.XX

XXth, marking of returned for approximately share Our dividend. we've in of on our September XXXX, consecutive dividend Since of $X.XX capital the $XXX.X cash XXth fiscal or began investors. dividends XXXX, a the December company Board per paying payment $X.XX million declared payable per recently to of quarterly QX share

there that a in dividend small As tumultuous can very cap the consistently we length throughout E&P paid commodity companies cycles. they've are past, say for time few of price have discussed several that

long-life reinforces Board the that We quarterly dividend strategic center for immediate dividend for decline and remains the the believe support cash front this continue acquisition and Board payment sustainable in the growing our and quarterly a maintaining as we long-term, grow of short, assets through team. a our ultimately targeted and the of will view prudently takes to business low solid and management

turn now to over Mark to will the I call discuss operations.

the production X,XXX natural X,XXX equivalent quarter thousand XXXX crude of feet gas of per of per for day barrels and day of day per day, barrels Thanks Kelly. oil consisting gas, X,XXX XX,XXX fiscal natural net liquids. was Total barrels oil; fourth of per cubic

to per facilities due our for primarily at at the Field, decreased barrels efficiencies. day to a install production shut in oil was Looking and Delhi fourth quarter, detail, quarter X,XXX exchanger in prior results week plant one the where upgrade increase of more heat X% the downtime in approximately from oil to

due maintenance decreased from per Barnett Shale thousand with per to associated downtime extreme issues. conditions, along XX,XXX compressor production cubic equivalent X% and oil weather day day in line prior feet gathering of the barrels quarter, properties in with gas or Natural X,XXX summer primarily the

factors Delhi X,XXX the production. primarily barrels decreased to install exchanger, quarter, our production heat to Shale gas NGL of our perform maintenance. that our plant at from the attributed NGLs XX% Barnett volumes impacted per affected NGL day in Field prior properties, properties our At natural by downtime NGL same the were

for day, per in full our gas, day oil barrels with per NGLs. consisting thousand net of detail, the of per X,XXX fiscal results and cubic natural XX,XXX day day XXXX X,XXX equivalent production full barrels X,XXX per of feet year total oil, more year at Looking barrels of crude

Basin Jonah half of acquisitions to interest as non-operated downtime the in XXXX at oil by mentioned due the barrels previously. prior increased This X% Oil working Williston from Field our second XXXX. of of X,XXX in was the day offset the the the and fiscal fiscal Delhi in primarily per increase in year, Field

XX% increased gas second Natural acquisitions the of our in the feet Shale as in primarily interest cubic due is the in per properties day Jonah previously. working Williston prior year, by and Field of Basin XXXX. The from thousand downtime in non-operated fiscal to half offset production the XX,XXX partially increase Barnett mentioned

the Barnett in of property Shell downtime factors XXXX, natural our the XX% day that production previously. attributed in XXX year, at same barrels the Field in fiscal per mentioned NGL increased to offset acquisitions and attributable by primarily impacted as to from decreases Delhi prior our two our gas production NGLs

to operators, the with in of workover on fields. our capital for XXXX, expect continue to discussion fiscal to Based expect million $X projects $X budgeted range acquisitions. we which capital in we Overall, million, excludes potential the be all any year

at include for by drill Our next Field wells Delhi XX months operator, the two our Denbury. new expenditures expected capital drilled

As wells Kelly Mexico. originally PEDEVCO really strategic in on formation was The the in XX-acre gross and we're Permian. covers Andres The said, already developed the XX,XXX in around excited approximately acres partnership Chaveroo the the vertical about agreement Northeast, New our with San Field targeting spacing. Field with Chaveroo

the be vertical and San analog extensive horizontal XX-acre based San of data very the results of Field. non-waterflooded control, the in from previous well on developments other Field vertical wells, Andres Andres compelling view and horizontal We the development Chaveroo to PEDEVCO

success to will years for We significantly expect come. contribute this Evolution project the of to

the amount We ultimate expect wells $X on existing of fiscal budgeted our The due CapEx XXXX this Permian year. capital and over completing million $X three agreed increase during depend with to to year our the the schedule our to will partner. in for spent fiscal in million drilling drilling assets for expected

highlights. our will With to the I to turn Ryan back that, over call discuss financial

Thanks Mark.

XXXX. to My earlier, XXXX information comments and between for release concerning will fiscal earnings results yesterday's please today focus results. refer on additional comparative financial mentioned As primarily and highlights our

maintenance During and the multiple downtime assets quarter, lower and much extended gas we fourth NGL and impacted by negatively realized experienced prices. natural were across

still However, production income. revenue net represented and XXXX results fiscal our record year

cash fiscal current to year prior in past which for XX% generation solid million compared we was year, $XX.X million the year, the including adjusted During had $XX.X EBITDA, increase. of a flow, the

operations, outlook, of all share During our development debt for drawn this capital repurchases acquisitions. year, expenditures, flow paying out we funded also our fiscal operating while dividends, and

our of $X.XX dividend flow $X.XX outlook, of cash share XXth. dividend paid declared of and fiscal share and operational per by a for a we quarter per QX continued in on Supported the September payable fourth XXXX,

importance Our cash has recognize top dividend to program our value be will returning priority to of we continue a shareholders. as strategic the been clearly and

$XX We and equivalents $XX $X.X million. million. at our ended June cash cash fiscal free borrowing million year XXXX, base was and working capital and On remained totaled XXth, the debt

This represents immediately since acquisitions the of increase is result of on $XX of liquidity As a million, cash was liquidity including our and This accretive equivalents. XXth, June couple June a XXXX cash and years. past targeted total of XX% in XXth XXXX. direct over result, an

ideally $XX.X the from of and fiscal increase our of in are acquisitions future million the Field Primarily continued in year Basin, operating $XX.X that Williston million occurred vision. execution for the latter the overall which We meet growth strategic targeted half opportunities increased of costs positioned the to XXXX. XXXX. driving Lease was fiscal Jonah

addition associated with benefits to fees search year and due our the our contributing public added The in approximately increase Cash fiscal to our the is services $X.X fees million due in expenses G&A size increased personnel reporting CEO. and to and increased of $X.X from employee for in in for year professional the XX% audit-related are accounting increase expenses $XXX,XXX $XXX,XXX expenses million XXXX. salary Also additional prior company. to since the of from

compared million per income $XX.X year fiscal Net diluted $XX.X XXXX. or was per year or in share share for diluted $X.XX fiscal $X.XX million the to

back call his turn over now remarks. Kelly I'll to for the closing

Thanks Ryan.

larger geographically provides past asset support commodity return use targeted and well-established benefit completed to capital result, we and solid we a more enhance with to shareholder cash platform continue that over generation our significant base the acquisitions from as enjoy will us to and mix. years This the and few for have program. continue flow a we a We diverse

we consistent return as a investment and expect maintaining increasing appropriate, cash their and dividend over shareholders to Our our time. committed and, meaningful remain payout on

past, as cyclicality a the management business. of maintain conservative the of we recognize will disciplined and we in fully our in capital sheet As balance our remain

closing to of position, acquisitions. Our most the debt paydown ongoing our recent was remaining our evidenced prompt following commitment our by of fiscally-prudent

we rate as are As result, high growth accretive well-positioned of execute on immediately to return a and opportunities appropriate. targeted

optimizing our to and continue execute invest. strategic plan, we maximizing total shareholder on will focused returns every dollar that We

With today's announcement, to a we have added meaningful component. have organic growth an opportunity

of the compete decisions, with allocation this any dollars all and As be of for to our capital here nature that. used allow arrangement with drilling elsewhere must will

is This for companies unlike other pay immediate the which cost other anything entry to for for a will upfront developing required block, than well acreage the advance locations. development in not into next. where we pay situations field prepay We're must be for and

is We results where to forward occur moved will decision a on the PEDEVCO produce many expect come. partnership sequentially that This and will true development based positive this with success. partnership years strategic for

questions. the for turn operator over call Thank the I'll you. that, With to

begin We the will [Operator now Instructions] question-and-answer session.

And Please from ahead. our first comes of White ROTH go Capital. John question

Good attractive. you, afternoon and on deal. agree it congratulations I I with very PEDEVCO think the was

John, question, get make Hey, before additional can I John. one you, Thank just comment? your to we

Yes, of course.

Okay.

production a we flow So, forecasted resulting expectation reiterate, so our generated as that the and on cash based when and Board with do our horizon said want that dividends, from before, to we pricing set is we I just we I've production and levels. -- multiyear

reset this sheet per than in the and dividend, share. be -- pristine that which with our not equivalents, by fully way, cash our It With our will cover and combined at balance able more cash cash fully our just we flow fully mind, mentioned, $X.XX our we to you we confident, partnership believe including, any some cover John, this highly We're it planned all it time. up do cover dividend, our for drilling to, should strategic that only dividend capital needs will will be activity. our and quite of of supportive as expect

on. I that Okay. add appreciate

PEDEVCO Mr. Bunch deal, with some regarding respect expenditures, offered commentary. capital the [ph] to So,

commentary this say, or would conditioned highly However, highly I was, qualified.

the terms minimum a detail the more of potential timeframe any a in offer it you whatever timeframe, a PEDEVCO CapEx XX-month or deal, Can or a maybe at comfortable? put about you're six-month maximum or

in fluid up are we're these you partner Initially, this. to I'll we're going our and PEDEVCO. tell with finalize come what both look, absolutely -- that thinking on can plans their with I

want initial to an which working expectation that we we're We three rather have the than finalize we is The on. It's later. need permitted. been to Again, well to sooner pad details. that three pad, get all well

essentially depending in change we've fluid In the this, general thinking budget is we general, about year this environments, about the on is but way all can eight together. wells this on basically, about per started how thought conditions again, gross

half at have million So, is copy per X roughly payments. again, three are we that X.X wells and acreage million of

million for So, expectation be well X.X our three would to X million the pad. initial

I at least we'd And year goal roughly initial again, XX% which game then and but wells our we sort which is is be highly fluid around as of eight go, we'll together, plan adjust and the of. mentioned, dynamic per as initial

of That's appreciate really and a that, detail extra I lot Kelly.

of So, the on just working? the exchanger that Is and heat we the make or maintenance at the all Delhi, work, understand. installed some infrastructure work sure let's completed? Is is

this expect The was has the plant that turnaround running. And and at load. is up running John, and Bunch. heat Delhi back is Mark is we so exchanger -- completed rated

to. is see we performing that would expected be we -- So, we're as Delhi

running And that of it's but line obviously same compressor question Barnett we on that We up it completely -- the -- was be? kind issues. related whether is compressor demand, and you. to stuff. back and supposed is as The is Barnett the the as on and Shale to believe see generally is maintenance right that with whether we know that that all gathering Okay. Shale, don't that now, gathering Thank of

As get you compressors but clearly starting Fort always they're act run going don't issues, and to it's summer, much that XXX they of think degrees see know, when for in the which I did properly John, we're to better. into Worth,

turn operator. you. I'll to the call Thank and back that appreciate I Okay. the

Thank you.

Schafer from Markets. comes Northland Please Jonathan Capital [ph] of question ahead. next go The

this, thanks guys, for sure it's the Donovan but Schafer. taking questions. know Hey you I'm

Barnett, Williston data on where -- in part. we So, actually a picking up start error this the I but honestly -- covered entry want and The off. to John left be Delhi the could so the my and

that quite to bit quarter-over-quarter. north down XX% able looks Am double but too. the a just that? have Williston Williston been like down wrong something haven't on like this, I I it check was I of

was or there a model? is in that decline my So, there an just error

was month, NGLs Donovan, Yes, there and affected and side we gas -- Bunch, there this the it main that's so during cause. and on affected downtime is the and production Mark compression also one had

this Well, is I'm the the about talking -- saying Bakken, that are true Williston? for the is you this --

Yes, Yes.

Williston. the For

really? Oh, Also there. Okay.

the So, yes, the compression Got Okay. issues compressor in in Barnett? both and also it. down

Yes.

information. Williston turn comes -- Ryan production maybe to the so year-over-year want full year. and were for having and year-over-year But year, year the year being partial part and contribution the of -- for a I up, full and contribution then good from numbers the And Okay. to having the production course, has this a acquisition this last but that of Jonah

production? change of of versus the information? the to us stripping pro able decline. Presumably anything kind just of or you So, year that terms some either give in is is year, like this kind you in Do to compare of them year what there can last be last year have -- for apples-to-apples a out including apples-to-apples form those full amount

a haven't we that to quarter-to-quarter look can you full to trying sequentially as we right acquisitions out we those them to on try and pro forma. full We forma done so Donovan, pro at for tend or back come Yes, if it year. own the with

but reasons, right, the ultimately, maintenance in think with we've declines pretty of extended years. I our with the major I the lowest downtime fields assets quarter, which unfortunately, we our in for end hit prices fourth But this seen -- of day, got the have three combined asset fields, natural two we seen much are mean, at realized in last

you to field back wasn't we can it for is, -- to great think of kind we hasn't timing all actual to but what -- the -- us, trying of-- you're it what get certainly get on So, unfortunately, field-by-field decline

factoring Well, increases out getting into step from kind just we're of decline blended your function those transaction.

a, X% I does from -- a guess, decline think sitting still situation do is where know, as are usual you that this -- you a answer annual don't decline for know we could in you if you to, the rate acquisitions incremental at So, or business rate like without something standpoint? feel I

I think at decline. don't I of high to things to rate. throw before we've changed, -- is XX% but that's single-digit when necessarily going to guided We don't annual decline fourth quarter off the you're some like that sort obviously think looking

And also Sure. Yes, go okay. then -- ahead. yes,

Yes.

and It Just a understand I quick downtime was was one that month you like up. it's also compression and deal, back want the make a to quarter. the sure during Williston, issue resolved just

Okay.

movement don't in numbers maybe just word, -- decline? think be a a but and of normalized don't get And because this of for kind total of be a from to of back it of things reasonable a from of like there -- where has an I might so up kind fair pop I back to you then it a a reversal like of going -- the little fixed strong mean, upward to on too a of us production terms know, but that that does kind I quarter quarter guidance, is bit give this there's expectation? been will know just a Is lot to next a,

we guidance, understand Yes, I some unique lot order that think there on happened. a say to you were that, Donovan, that events in but, won't whole avoid

did ask at with Okay. about PEDEVCO costs associated And then John I think the the that.

it, too incremental contribute this start asked maybe the but I kind have some just would production? of that amount timeline may to of missed of and You when

working again, something we are with So, that's them on.

to well and comfortable initial practical we're those going three and is as soon doing parties are excited think get both pad as anyway I both that. incentivized

look, give and later expect will you I be that. sooner it any specific I'm to -- going than hopeful not So, I'm rather but timing,

in be the an which might is they an Is there same M&A? of bucket? then, put similar that drive guys way, is are you avenue right? differences of Willow can mean, idea conceptually it I market And some through when the it's the not same a in for to the did kind you two to terms with this the what growth to attractive appropriate having

is will Chaveroo everything -- marginal the for the in like look, economics next mind, dollar. think time, are we We else It our compete do this capital they our and PEDEVCO. in attractive with with those at very field are just

point the a to These gone So, yes. moved think of they've that's good are they're We the absolutely very economics. to it's just where line. front

you good. can talk you know deal? how relationships kind you the conventional That's there okay. interested you're They pass of come about second you you with to some some you atypical of would can already be And sometimes Did nuggets any familiar taking Okay, type this stuff. source this a I just I and EOR, technically know into the this channel or have? that but came in Just at there. be isn't And things. interesting understand

So, come yes, kind how about? did of this

Shick several we've used known believe something. to had and came it We whom call coach Doug spoken about actually I deals. other years. business a Football I've I've looking PEDEVCO -- got an Doug known Well, in over each and against do to years mostly from for PW I at advisor various Doug And the

for guys very nice sense. them. who it think to have the made can was business someone trust. good It you natural It's with I do ROTH been

my the helpful. questions Okay, guys. of offline. I'll Thanks take All right. rest that's

Donovan. Thanks

Robertson of Water go Please from ahead. comes Jeff Research. question next Tower The

you any one downtime, your expect that into over couple providers next Shale? the Barnett quarters are service question from aware Mark, of of Thanks. you midstream on the

No, not really

I this but going know do wish let we about I us right. when don't. talked they'd that, they're before mean, I unfortunately think to

growing right. they sold way they've length and to took of optimize in had run So Crestwood extended the trying area. pains system the for the Crestwood, over

lot. certainly diversified partner talk to a and operator Our them is

so a issues, they're hope to unfortunately, and they're or expecting going us to And not downtime them certainly to going better do have give insight to unfortunately. job as we But forward. any going

to operating pad end the by to X-K agreement one of in I I goal respect think drill that those Thanks. and talk think be three back first this then the well Kelly, filed an Can how think you well with Partially would the read wells, be year. one three drilled, about was spud be you of them one PEDEVCO the your to all initial morning. the completed? said by this Would that through to back would back you development? complete expectation initial to back or it about

little talk deal. economic that, to an let bit just pad but a I'll more better on standpoint, a look, package a from drilling as a Mark them is

So, that's certainly our expectation.

back-to-back. viable the because that's and no, way back-to-back drilled economically the be brought to expectation then makes same -- the most it -- completed then they'll most the do Yes, that's now at right time. most and they'll be online That's

you with talk wells. share, Mark, it infrastructure, I you to can of I just move infrastructure would area that was what's in terms know -- production, you all vertical I into? costs any developed there's the In oil about related believe, know initially the can

Yes, the right any vertical because are -- use the plan wells now of is not more the facilities really wells. well prolific the than vertical much horizontal the to wells

with we're for are actually wells. that infrastructure, the capital at new optimize And in costs costs we're new in putting tank putting involved we'll that also. batteries that looking horizontal being the So, --

what in a formation I've from San not it's wells, most Horizontal Andres read areas. Mark, about unconventional

more a in that true line as not steep formation. as well? is initial this Is the shale as rate So, as area

typically would Wolfcamp, Delaware that in have say above part of where XX%. say a like probably the decline -- I those in the the Permian you Yes, Wolfcamp are rates

that. Here, than to it's be going less

have funding, it available capital lastly dividend. to in the fund Ryan program with on of or just liquidity the program, or flexibility you Kelly, then flexibility will And could terms to funding and -- appears the still continue remarks in program mentioned the your have have the the you -- Okay. maybe funding drilling

really at this point. risk that at be shouldn't so And

look, Yes, dividend is first.

the that opposite order. to want put don't I So, in

yes, for So, sure.

wanted after. you. to that was make sure I just Okay. Thank

of question Old next Locke Investments. David comes Please from The Mammoth go ahead.

guys you doing today? Kelly how and Ryan, are Hey

Been better.

answer I for just them want again to I just -- Hey, kind want I to to so these clarity. answered think questions, ask but you've

expect particularly particular March those to but related go in also back would areas in at that in were production we fixed being Delhi, would downtime, you it Barnett, those they issues where as as forward? the get compression the So, to

So, listen, will those issues expect better better, we see compression get do as you results.

that. say I'll So

then the you said. Permian that just clarity a for And I'm some on Okay. to things trying assets, triangulate few

wells expectation a and is So, think year the can four you you sorry? gross --

eight The four gross yes, wells, net.

sorry. Did My I'm I apologies. say four?

So, you. four to

Yes.

you at can So, that the, the free under, out sort the that look cash curve for if you and dividend forward we expect fund of of flow oil and gas today?

Yes, right, mean, saw have forward no, obviously, David. at NGLs in that's when kind right. and just a NGLs like us so is, we about in in That's right, said in too. pricing I we side, from certainly long where we that assuming fourth quarter increased impacts look -- already you curve, what the time of were so the fourth the and the quarter, oils

there, going take been from we issue But that we're self-funding any PEDEVCO, to the plus other proportionate some drilling get see but wells cash generate cash assets do covering into that right, think per that year. when asset share of quickly. you eight have there our funding delay become pretty We prices plus don't flow consideration, our free is this

goes money on starts drills one to again, within the goes small with about days. mean, for XX but basis, money a we're Just deal that's into spending March producing that's the acreage We're into block-by-block ground get of to and of the a and probably ground rest this the excited number. reiterate, oil paying is that things I the in about wells. we're relatively The

somewhere Yes, but longer than very that, reasonable, maybe three -- months.

-- a you multiyear not payback. spent gets you it's money getting wells when the to the revenue when the For huge from start drilled, oil from

you and this then You excited making are the going oil get the fact upfront ground a PEDEVCO into us. and both money about the for starts that and We into payback. of pay get goes

basis So minimum delay pro the a on spend a other assets the expect capital oil a that when coming, expenditure this at you forma between offset in and the the portfolio? the the starts understanding the that declines when under there's would of would you in money

I'm that not level but prepared So, track. certainly wrong look, detail, I'm not into sure go the to on we're of

Williston if that's then, of which closing. Okay. the for I have guys and not owned And I months date part of better to back assets, now, could the or of guess announcements date cycle maybe the you the XX sort of

pretty close. That's

We putting later development about again, here had several conference months times we're maybe those -- capital and And assets. well, hasn't previous really talked XX that on into sitting calls happened.

development not What's So, to said up? you kind it I why to didn't these because has there? that minutes of ago makes few line. holding What assets a you they've capital superior look misunderstand, Permian if gone jumped the

Okay.

because So, yes, a primarily I purchase were and was large was foremost, they a this existing large, producing. mean, PDP it when evaluated assets We acquisition primarily Williston like and the way first the -- again, great was how in purchase. really liked

makes them, a locations, and after cost drilling drilling it was XX%, evaluate returns XX%, the good. time certain I pretty is, don't was, which when we again, was at it -- which had it there say a up It moved number. just shortly but the completing what let's the number also that Very remember

associated jump is drilling think do return attractive. in something just the that with It the got, you've them to out But risk that and we go it's need now. we at it still didn't us

see across some plenty been you sector. the there's If service of -- inflation

abate prices some, those that attractive. see project could we becomes then if more So, certainly

the here modern are time just But superior the very reviewed, a point we the which drilling to out like returns today current are the at in there world and with costs said, that wells AFE, I in this there.

Okay.

costs oil sort still So, development of opportunity, of some be combination would in price you backlog like consider that a wells, the to to then? subject Williston theoretical and those service

Absolutely. Yes.

the guys And of better of have part since XX Okay. implied. acquisitions, it's done now any then you kind been again, you

it guess That get at So, too expensive acquisitions and that's stuff? I'll I PDP organic you're bit why a to little outright. you still, to-date you try to feel looking some more

there us Well to always never was or, either to clear, some it look have to when there. us, right? we into the to going acquisitions money like make -- criteria highly that are aren't are ground. And we years be potential just put okay, past year, the It sure be let's to for accretive -- to so require that were was this the when able really

a But and for line just so and we I mean, sort years. to even know, process many on good just required use the weren't in proven we offered screening it, seller's I have said, with expectations make it of We us. what screen, you the candidates. evaluate evaluation processing acquisition same we like for

We're as never has it speak, deals. we're evaluating strategy we away. doing several still gone That

we it's and still those well much think very So, this complements to do something want anyway. and, very we

make to goal find we're accretive We well. is is to PDP sure this do. leading not all highly want I go with to going our acquisitions I'm as the So, impression --

Okay.

-- Ryan. ahead, go So,

Yes, we year as through that of We a maybe I beginning look the to marketed market we acquisition come and saw way deals try the of lull has And probably towards fair been to negotiated, it's this really a say source connections, at out. to it. deals through quality was there -- think choppy through that describe processes. also

to We honest. be have seen that pick up

would didn't was pick near-term, lot that flows a here up a liked We deal see portion the in we have we just but as too. more us fit much as of seen there might deals have

low We just it, it's we there's mean, kind come acquisitions, I'd way there. flatten XXX% on Ryan our to like look out problem kind kind of of know the be lumpy risk to adds. as a top on at they to just tends rely it's a those, groups. this because oil follow-up what of in I area. with of you if with And

we for because flatten year. to we're bid as go just kind we're and not having production organically, And this profile it it out way, our every go of out developing helps

sort bit accelerate it a when mean, we little declining, the you're I accelerate for Yes, asset, your -- pay easier prices. much buy if and when in on backwardated curve to see a right, -- that's right? then oil, you're a that those right than especially rather flow drill now It makes we'd oil in to curve cash of have you'd rather now commodity

to lately. these prices picked love soon drill current wells with up as had prices, as because And really Yes. possible would obviously we the

don't just and buyers is between by happening just and big calling sort there aren't A&D like value in deals aren't I'd Is bid of and there. you happening? still market think differentiation stuff as So, you be ask guys insulting the a you I

little it's to Well, early say. a

like I that haven't stopped we said, process. So,

about want So, market little because say, I realistic to I on a that don't think there, don't perspective. How say we are would who too just excited phone. the we our opportunities more much I the about the has are is that? know from out become seller's listening

opportunity, after gone while We had developing were offers were actively actively we've acquisitions -- at this Permian even we making them. on And Basin other and we equity. looking

like wildly market. of don't I the like out we feel were And

just us So, to We're I'd upon not things trying of like to dependent totally make too. able expect still it type be do we're those to acquisition so work.

course acquisition couple cash probably internal CapEx we've conference Okay. just general flow that funded about gets a growth and calls from the And talked would like come on then then description of through prior accurate the notion the of the be over years. to of next still sort like following high the that an level strategy? couple facility the paid credit Is down of

base our plan that’s Yes, for sure.

are You on. dead

gentlemen. over. right, I'll it for and turn I'm monopolizing All time sorry

call. the Thank appreciate No, you.

question next ahead. of Brown from Brown The Capital. Please go Bruce comes

Hi, Fellas. the all us. given color Appreciate you've

in and success And drilled? they deal, On they how have been? field rate have many how the that PEDEVCO what's wells long been their active

I Timing in, of XXXX. they that -- Maybe started think, XXXX.

we they trying sciency and characterized than X, -- -- for they So had way look where of their a for sort more had wells the it, kind better Generation what PEDEVCO of question it's but were of me, and resins how sort of are the zones, sort of spacing the I the size clusters of, know, landing and between sands ways frac and don't different kind clusters trying different and different things. different they different

Then or of sort this tried they which going style some is could X to they see of Generation to some went that to And expand with on work would or and the I frac, things call their worked. if what of better stuff worse? more they tried experimented

we and upon. science produce that way and they think through be gained, and call we land the Gen have what than can a a up design we all with and also they a of, if return. very case, And plan But X, we to base to sort attractive improved have of sort where still think they've a that as better that did, sort don't come I these of and style been any do would certainly a completion those learnings that

is And But looking months we both which is did technical this has four all walked detailed in of this there lot, experience staff in-house analysis as expect a something been be again, they we to again, you expert even this has an consulted and we plenty just at room and science and the can. we -- excellent of into. think industry at and upside, we I for had This with. our isn't

where we've that also be comfortable is what can very so know very, we'll that done strong we anyway. and become we're expectations And beat

up you the as would well learning on it. they're so curve probably Well, put

a can sounds knowledge and carefully more targets would a point -- their the point it be planned at maximize they're like they've at they they're So, a where selected. -- target perhaps And accumulated. drilling

I think what the we in here, maybe might it biggest want put the get get two like we hey, you're land we try, you to here, zone If learnings wells Andres if anywhere the is to going pay that of it put one we difference it. of really San zones. and else,

to stuff as so And the you much did all can. they when as you're learn right do you trying

the and whole from sort from have that Gen they away it just sort Gen as move a as have a obviously, ideas learnings. lot lot ways walk been There's X. have learned of and and that call they -- to again, of and we expectations We science we've -- of X

so Yes, we're excited. it's

horizontal drilled wells Just so you out XX there. they've know,

they, -- so Okay. yes, yes exactly. Well, so they --

So, that's sounds process, good Well, that luck very whole it that with good. right. All a promising.

The where improved have kind on you of have first last in a other some, I natural can have first to percentage prices quarter. range what your done time broad but in risen impact oil very of gas fiscal substantially that the ended appear -- have just I since cash quantify the this what period quarter? with mean, sense. percentage flow fiscal might impact -- quarter we're during of question they prices And from XXXX, had almost is, the

Yes.

what obviously, seen, getting field, than quarter-over-quarter on just prices on still which So, challenge on can right, being you're of of delayed mean, the gas that some the talk non-op the right? we sequentially, was more looking The right. gas we're sometimes in just side really the if differ I side, But -- estimate. actual we've lowest is prices and I'll

a gas Channel we And look QX our was the sell on trough, right? we've up hubs what so -- Barnett for of if So, you side, gas Rockies. Opal then in the seen and is Ship one pricing at Houston the that pricing

so $X.XX average, they of it, higher than are this both on And were those $X.XX quarter-to-date last maybe call indices to quarter.

that. So, but about right. percentage -- can adding if small move $X but I if last pretty less we're to talking right, $X.XX gas don't exact you $X gas, have it's quarter you're $X not the Barnett percentage, That's to on a a material the than

gas. improvement see this expect quarter certainly, the on So, to some we

the down cliff NGLs a June, Also look were April off June being kind they month, I down that it at traded kind to NGLs, right? earlier, you bit. quite of talked a if falling low about but of from

XX%, since of X%, bit The some XX%. as as last up are XX% ethane, Ethane a to of XX%, XX% heavier much itself up quarter. has components is the Barnett from quite anywhere

those price are the NGL -- So, is think pieces. overall I two

and I realizations. You where be are noticeable it think two more mentioned oil, gas on NGLs natural but might

the obviously, of -- in That's those two your is bulk production areas. Sure.

a company, I yes, yes, as So, yes, understand.

great. that's So,

Okay. I appreciate the color.

I for so me. think it you that Thank does much.

interest. thank No, I your you. appreciate

Christy, Please go next The Investor. Joseph a from ahead. comes question Private

as of closes. by the flowing of that's to per Delhi to good of cost thinking the this? anticipate afternoon positive too the ExxonMobil it. of Field, operational Yes, question field of Exxon this is gentlemen. it changes development in due you. result any in a asset the Do barrel and you the about structure or transaction to My development Hello. Thank potential about cycle size begin changes acquisition soon scale is the future structure And Denbury through or assuming the

that. appreciate We

one to just and would thing that do I dumb. question going And you the we've know thing. -- they're not yes So, that's going thing. They're about right say, They're to do to is a think Exxon the to smart need had about. that,

would better. -- as I So, I operations good anticipate or be will look,

done terrific think job. a I has Denbury

as do even think well Exxon and perhaps to has I the get scale capability prices just and cheaper.

the past whether I to -- don't will the honestly, permitting you permit. we we've capture, -- things we tell the get way all is and that. of One carbon been about asked in any have Delhi that And still

Exxon of do benefit I towards But pushing on that was kind would just do some that. it. Denbury it I don't why look, be could and it, Denbury working there suggest can So, And see just on if for as couldn't planning well.

I would thing only had is thing capital Delhi. Denbury one at in the we've is The add just past constraints with

plans the know thing the capital is Exxon what so we right? specifically for not field, don't one Exxon's And constrained, are is while

period from a Denver perspective. That through a so, an be issue went whereas, spending at they of bankruptcy, And here through all. capital shouldn't went not money much

very happy such gentlemen. you. being Thank of Thanks stewards prudent Very I'm shareholder, a good. capital. for

Thank you. important Very Appreciate that. to us.

go is a The Please follow-up Research. Jeff ahead. Tower from Water question Robertson next of

Mark. you, Thank

the oil Evolution's WCS of you As you -- Permian kind this model wells, you what those price you also or talk think impact Permian realized and receives Ryan, right? I asset or Kelly that LOE? could pricing, on about as can have sour, mean

to a I to will expensive it's to Yes, particularly be these about a don't deduct more expect little maybe $X operate. Yes, kind And $X to bit WTI, it's that. about $X of WTI. It deduct than $X.

better is margin would you have margin lower just of either expect or would the COX margin typically would flooded, of that yes, the lot company low a we because, be waterflooded expect -- other stuff -- So, is for operation. is the overall I which type

the margins would improve. would think I So, yes,

think it be to mean, I play. low-cost stacks certainly done, operating-wise high-margin -- definitely I up it well, a we've fairly the oil work

drilling have new and into it's you rate wells, translates and wells, higher typically whenever going you're new wells higher Well, you're to that's like margins. be

Thank you.

Thanks Jeff.

ahead. Ascend comes of from Wealth John Advisors. The next Please question Bair go

gentlemen. good Thank afternoon you and

John. Thanks

through move the you your forward flow. pad, cash well guess I clear, should as operations, Just real simple and be paid correct? develop be the all to three that question. that to Is drill for other

so you've words, forth. year the cash with and on and debt books ended quarter the other free In the

kind if or just I'm reading this of curious right I'm So, correctly? this hearing

Yes, where prices market in expect, at aside, yes. right the where and Obviously, John, now are that's the but pricing we plan. forward

plan those. would it's we wouldn't We and So, right? to flow, goal always out cash those funding to drill drill additional of our

Right.

I'm think I operations, and have obviously And just I payment guess long the very, other you've other jeopardy in your yet, lot might confirmed be a $X.XX and and little -- little reaction about a so other the questions the that and dividend -- forth, of inferring So, a at I'm priority. a that so today. fields I'm stunned made

And so reaction I'm on And if the know the just to at I care that's all here -- of you I'm extent baffled going on or-- don't would comment today. that a little at

sold regret everything our we We're it that? so and can here's okay, sure make back. make do to -- goal. we everyone How buy to Well, about who going it

Right. the understood. Did buyback quarter last do you all? at in any stock

close honestly confirm prior we We'll that really but limited March did more, later in today. let's stock that our we the our XX-K to -- that, we out the the for say already just out buybacks come lot after quarter with were We'll published. a obviously XX-K publish

Right.

Okay. with echo prove that commentators hope thing And forward. do the previous that previous error. have how I been one would today the everybody this Well, been moved good. very or of you've in Well, -- I you pleased that dumping

doing. So, keep you're doing what on

company Thanks things with about you and think this long I think -- we for the pretty for obvious, sentiment. we And the and run run horizons. multiyear look know as is

shareholders going rash run. best the to to So, any we're in going make do what long with us going stock, We're our the in always let that today on see nobody our decisions. likes make in the while not stock interest what's for what's to

that. convinced with very Thanks much. fully I'm

Thank you.

a Please next Investments. ahead. follow-up The question Mammoth David of is Locke Old go from

David, are you there? Maybe he's mute. on

Sorry about that.

go. you There

the haywire Jonah Is quick of what got what the next you recap looks to in civilians way at for in there prices California the of year, nine thinking is least and it course of situation sort over went a a months? regarded like of like last do that sort the you're

the ball But than was I lot wish the I La last maps you I right? due say wouldn't weather but colder sort crystal Nina. going and that recall, past, If going unusually, normal, you if Coast winter of more had to look so on the a West in probably forward. at unusually, California

market. and is the natural to you will buy in And California have spot So, when issue pay so very, everything little have very what they get to heat it need they so really the to strikes, and tend homes right prices these gas, their on to and storage the cold out gas people weather can't get out air. they pull and high you spikes of storage

California Not that unlike heat we've seen, wintertime. you when right, the had waves, Texas, you've in the during in get in market power

July in in that and there spike saw too little we a summer too. a saw little August heat prices with we the out interestingly, where Now, bit bit the

a whether home probably it's or you're home, your your spikes. cool So, power there's see going demand, heat to anytime

premium last bit in the right out days, the premium $X, in in but $X.XX, hedging couple market much as this Henry winter little a down $X here of call last day, out hedge as forward have on you it $X in curve, looked, winter I gone but to maybe for even it California. depends forward prices look the around for probably If may you could Hub, the time it now

If quite expecting the then be winter there. months. some at winters, have the winter unusually So, an in seen we we've sort demand seen but we I saw market warm least past see think of barrels is short not out historically, pop might to that we in still potentially the the over California,

sell it ourselves, also what premium I and think Jonah say, seasonal at contracts Pipeline about of and winter take it kind pretty this Northwest a gas, and talked I'll we or winter we in summer even sell contracts, can to we and since [Indiscernible]. we you kind healthy gas our we get on I've contracts And of before, market sell

coming expect also this would premium we that up winter. So,

Okay.

of works? you're the way kind -- per of nature the in sort market like se, futures you're contracting just not the So, of hedging, given your but

right. That's

as Pipeline. we're much as you selling we sell at yes, price, So, the will, wintertime so firm, fixed comfortable a in Northwest gas basically if

a First healthy fairly plus Pipeline is Northwest a tell in month, which the wintertime you right, a spread, spread. I'll

physical said, And we Like do not subject We're Northwest of contract. heads. is a premium the get it's during a really Pipeline, so the movements that have to price we'll winter. to whatever you but

get, locked going not to the the in price. clear, be we're we base to But premium

Correct.

Yes.

a this what's $Xs. to on And an understand. sort acknowledging awful lot then price as little looks afternoon than allocation stock back low and going I capital $Xs the of with Okay. bit high different cycling

of from about extent you the How committed to do stock a assets? that the think the guys amount for come to buybacks, Permian you cash functionally a have stock would buyback fair where capital now

-- it it's compete -- dollars. for again, it would Well, would

this, So, use again, in at best forward of with every table we all dollar. And are priorities excited But our be and everything's in it. want to times. again, on are this but the very go the -- to going drilling partnership, we be to

everything So, that fair is there.

into obviously, Yes, we're I -- we $X.XX about said and generally saw the allocation, right But always which we've -- think but going base and said to dividend of enter I authorized overall if certainly think the on capital the the said plan, way very obviously dividend XXbX-X is we the we've so as buyback -- we've pay. we sort important, obviously a think kind we is it at think has think we basis. it of have Board share and dividend about you do might quarterly authorize I to now

hard that if stock cash for Does prices more flow, shares and especially versus sense? Permian there assets, another any mentioned capital at a might that of our $Xs commodity make $Xs, be excess our flow. in PEDEVCO asset the us back you with from we some cash excess above buying other Above or any outperformance outperforms look to some high possibly sort reason as below stayed take if with

Okay. Thanks for guys. that

you. Thank

Loyd to This concludes I closing Kelly session. our any conference the question-and-answer back turn would over remarks. like for to

the time. thank to want everyone taking for quickly Just

here we're questions. answer know, you to As always

your and appreciate interest your anyway, So, time.

you. Thank

now has now presentation and disconnect. today's concluded. may attending for conference you you The Thank