Pioneer Natural Resources (PXD) 4 Nov 212021 Q3 Earnings call transcript

Welcome to Pioneer Natural Resources Third Quarter Conference Call.

Joining us today will be Scott Sheffield, Chief Executive Officer. Rich Dealy, President & Chief Operating Officer. Joey Hall, Executive Vice President of Operations and Neal Shah, Senior Vice President & Chief Financial Officer. Pioneer has prepared PowerPoint slides to supplement their comments today. accessed Internet be www. can slides over at the These pxd.com. slides to today's Again, site the related the Internet access to www. Call is pxp.com. at select then select Webcasts. website, Earnings the and Investors, recorded. This is being call archived replay on XXth A call the will XXXX. the site through of internet November be comments XXXX. forward-looking statements today Safe to made Litigation Securities include the of Provisions Private will Reform Company's pursuant the The Harbor's Act of future of cause prospects and Pioneer are in number the actual a may that business of to from risks statements materially uncertainties These to and statements. differ the periods results subject forward-looking news risks on presentation are These public Securities uncertainties described and Pioneer Commission. in X in filings slide Pioneer the Exchange 's with the and release of made 's page and call Officer, Pioneer's Chief over President and At Shah. Neal Vice to would this time for the remarks, Senior Financial opening I turn like to Please go ahead, sir.

David. us joining of Today, excellent Thank strategic and you everyone. Conference for will their Pioneer's morning, third be you, thank Call. assets. Quarter discussing Delaware our basin Earnings results we And for Good quarter our Third divestiture

will for We peer that, call and strong our up will leading the capital and outlined, strategies as to Then, focus over call With turn ESG published our also report. we risk Scott. XXXX the sustainability recently discuss climate your return report questions. of will the open I and

you, Thank Neil (ph). Good morning.

to that's that including flow, obviously, which returning quarter Slide And I the quarter throwing base just one in cash anniversary. from history plus billion Company dividend, $XXX think see obviously in XXth $X.X XX-year variable. probably up in and Pioneer a free coming the is one like of X, next regard can out hard imagine headlines million on of the quarters to during Pioneer's year, in it's year you best our

Glasscock quarter of for Delaware recent makes transaction the the After $X.XX million a Pioneer assets third big billion shareholders increasing divesting expected XXX to very I and of variable Probably of by $XXX XXX made Our our lot year-end. total base. for from our quarter. that you $X.XX several County is about divestiture continue a the a last Tremendous when on to to the share close it's up the to from weeks, quarter the our dividend payments headline were add of talking from important increase our think over $X.X billion. base. We're the base. And

dividend as like they continues increasing reports. prices continue have we're reduction base increases our goals XX%. That commence talk to with Sheet our So regard to at will over over our and payment. Balance and intensity. in improve in it. if perform two we'd Neil to years few released greenhouse it We'll again next been. January gas look to significant commodity And that lastly, the later. But again, We it methane XX% about in to about intensity increasing talked XX% Then continue

of next detail give X, of what slide few quarter minutes us. effect the to regard in the half production upper in will a the sale in Turning Rich to guidance. on third again you slide the Delaware does the more number

EBITDA the point end on focused Will of of I both the Basin. County end strongest the -- in high-margin, the Obviously, Midland here think by history, the important in Company's we're having a the most year. X.X of with it Delaware. now divestitures sheet balance the high-return Glasscock the up debt

return total with the capital long-term later beyond, in total at When XX return. ROCE, year. that just and focus at slides thesis X. to on our a one of XXXX, When we're on really of flat, those gets of mid-teens growing Again, the flow to It's growth, at on look in keep return production the going both X% and change to us a fairly in mid-teen of the minimal strategy to of low-to-mid-twenties return. regard That in employed most unheard to the numbers. cash about the look in XX% you year, next investor. the Going you that yield really XX% look XX in to to range. dividend you down number cash going When look our XX. generation. Reinvestment slide at XX% deliver to it's When at of flow you right free back

billion flow. flow at of Our be will will a When over look next free generation XXXX. year you free generate X-year from cash up strip, XX% cash $XX

billion essentially flow. X the just -- $XX XXs the year, strip you today price just first will keep by next for by oil end for we XXXX. free we're debt-free current mid-XXs, time, take to we're essentially years, next you the in cash the the pricing, When end low If the flat the at of over and it of of look

will Pioneer the one industry. the in continuing So Balance Sheets end to have up of best

and it's a count actually free generate sheet had years, dividend Again, assets. We But time we look during quarters, the we in we balance $XX our which around mentioned, XX% we'll over billion energy as XX. do shareholders. the million I've our dividend, up program next cash important great share we $XXX bought of We stock the continue we history, over flow of increases Deepwater go previous As strong, we XX% and annual about back back variable restated, our our bought as back at it's market X%. $XXX XXXX, regard base that sold base of strong and about think stays the spent flow, in commodity went going above in the up long to we over growing other was rate one repurchase dividend, pandemic opportunistic few free to stock we and dislocations. to be in where over We million continue the about growth we'll XXX. cash be after of But deducting shape, share the expect, in we the distributing to $X.X and we XX% say we stay XXXX Again, prices our the to that in back of cash had the are our flow back or significantly spent time. XXXX. bought and at reduce X free We if companies $XX do billion spent to XXXX during sector. stock to

acquisitions due up last is I of EBITDA the certainly, be that point think the the year key XX% will very next XX% here minimal in full year, to fact hedging both to with our XXXX. and about primarily

slide number on declared dividend to also go Going yield. exceed a year, again fourth dividends X of share estimating the XX%. near X, XX 's something XXXX all they dividend. we show $X.X and Basically our you at dividend base variable billion XXXX. in the about at It'll XXXX, quarter When be number increase our X% to from returning growth Pioneer totaled a majors one When in increases peers significant XX just in XX already annual per dividend payout over in we'll We're XXXX. in We're for $XX XXX. based next the slide XXXX. S&P look the you from

majors, see variable [Indiscernible] below us, drop strong the dividends. European two U.S. majors. significant then with strong Culterra, a are companies other But you to obviously, The

When we're at when are S&P the look X.X%, European XX Our I'll higher majors. around or which our to rest over base. the dividend it over now to the the S&P look XX of XXX, peers. times is you XXX. about turn we basically the Neal, peers, XXX over Xx US And rest over XX over times the and yield a you is and the excluding of versus dividend Culterra, [Indiscernible]

our you, shareholders Thank a of demonstrates and Scott. dividend Slide our a commitment and key pillar base X investment growing thesis. a maintaining to strong as

annual As XXXX earlier, Scott this base than an which increase, dividend than an XX% exceeds further our you X-year rate greater U.S. growth dividend of see stated base the dividend greater acceleration peers XX%, graph, of increase. Inclusive majors. our increase strengthening as we're can is with all and our in base of of compound

value Additionally, -- dividends, dividend, and over return has dependable our suspended the consistently its capital. cycle period, shareholders Pioneer and creating peers or to grown through have same maintained commitment base many through their steadfast base our demonstrating while of cut

the comprised costs, continue controllable XXXX, Midland X, to cash and G&A Turning in pressures our we servicing are interest, reduce cash inflationary page cash Slide LOE. even next of horizontal which with to

capture. of operational As and high results efficiencies our synergy acquisition the

We oil cut, be high combination cash approximately that controllable to low underpin costs cash return Pioneer's levels. capital expect XX% costs, strategies. top-tier of of XXXX unique lower NRI free our and flow than cash cash XXXX margins generation and strong compelling drive

cover it hand Rich will I over to outlook our to Now, update.

on Neal. am updated I good And going XX, guidance we slide morning, Thanks XXXX. to our everybody. show production start where

total happened narrowed -- that capital. range guidance in production to full-year we've includes third capital thousand of will our narrowed guidance, comments closing over You see includes our BOEs to also our was and is a and September the of oil the guidance XXX per through day XXX combination oil XXth day. here and barrels full-year This to that to thousand thousand reflects of which production per XXX thousand impact QX XXX production the our production to Delaware night well. divestiture the year as near the see did our on includes guidance a in the but reported October. I couple a Delaware for Due production notes to divestiture not year-end, quarter Delaware there our Glasscock full that unchanged, of for --

did QX we a want are double upfront amount assets that and that include we work where related of our their standard. in point fair the to tank capital batteries did facilities Just hit our to integration partially in to that upgrading

that's So higher driving little what was a capital.

the the running as do will expected move integration is Xth average have and less rig one during quarter, frac less be our less capital down activity, fleet to one you to If and come we quarter. on

Turning we the As did slide announce talked Neal divestitures. XX, to mentioned, about, Delaware and Scott

net slide did a BOEs completed drilling about a and can XX,XXX day placed see production of that the about and the that'll program about currently running cash quarter were is there, you billion completed BOEs if per is once and XX,XX have quarter, You once We about sold -- production. wells some are day. from acres being consideration XX,XXX are here of first in those $X.XX be those on production first -- so

As And we've this high-return in return is sale to Midland Pioneer it at does acreage that about acreage the At also, we of get were BOEs announce to monetizing inventory million XX,XXX our this our day we the $XXX to our position while. focus time barrels October, close during oil of XXXX per basin. mentioned, on high-margin, Post to was close XXX% a day. acres head the transaction going of transaction, producing about to net for Glasscock did the in core or acreage XXXX year-end. being a sale of long-dated for County Laredo the expected

of and billion continue our these of in X.X evaluate on about acreage trades which Balance will Similar pursue the Sheet. fourth year, assets inventory continue further quarter to to small-scale to So will drill we'll to basis, cores we and strengthen -- combined a on invest divestments long-dated value shareholders. we're divesting this strategic to accelerate transactions,

divestitures, XXXX. Glasscock our flat to levels. Basin Looking and for adjusting QX we Delaware After do with forward expect relatively to both production keep Midland

So were midst day, and consistent oil of production per growth $XXX Delaware starting thousand we're with Basin to capital, grow in a might I we seeing X XXXX to also framework the production the evaluating look in long-term BOEs note rate at we thousand thousand XXXX to the of divestitures oil $XXX We XXX at growing that as still are investment XXXX. in spend to about of day. annual there that. expected production to million to between in expected X%. XXX for or This XXX result is XXX per our adjusted XXXX barrels

So there on I'll operations. turn details stop more and [Indiscernible]

be on good Thanks, morning Rich, going to I and picking am slide XX. to everybody. up

rigs approximately when compared one XXXX the XX% year. unchanged their set in to remains of increases full We rigs per continue several I and rig equate foot would than their gains on did full to for efficiency to XX record XX% day QX, XXXX. with year. Our to are mobilize XX greater strong plan respective track between which average completions the the Drilling Delaware and and metrics and for

are frac simul We fleets, efficiencies and still two further which increases is operating costs. reducing

Pioneer having long XX. to execution also a XXK adding teams QX. lowest to are committed time, Once sustainable operations across laterals. congrats going in the this to current I'm move XX,XXX-foot Slide peers. on again, has completions one the team at successfully future for to position. planning time, on drilling resulted intensities has the our our land development great of Our and emissions And same in for amongst executing laterals been Pioneer our continue and teams acreage and

net than projected can most coupled detection with continued in you and and progress was XXXX XXXX majority of possible demonstrating point investments for Pioneer's the on aerial As our starting intensity our including one minimize emissions and emissions lower X. through only represent to our trajectory facilities to industry of years XXXX. aggressive targets of thoughtful see, made XXXX goals the intensities our program, This peers repair at comprehensive the routine leak planning reduction is Pioneer's surveys.

with Scott compete it break-even Slide that, and to intensity moving low reduction targets. the improve combined story expect with oil for which XX resilient Pioneer This scale, to the will up. over produces extremely low very Now And we our global as turn wrap I'll long a the to toward will global progress that in previous line time. exceptionally we continuing marketplace same our XXXX slide, things on back results emission from a also and production

Thank Yeah. XX% significant our number XX baseline we Joey, XX%. targets. XX, to and with We've on new in from indicated reduction you, slide our about their XX progress, talked as had

freshwater targets think companies for in freshwater, reducing of that we're I the in the U.S. one completions only has

just World defined for about less for Again, published risk new aspiration to report. XX%. said, we X.X% gas X%. with X climate than routine was XXXX Xand of XX% significantly by for was by expect goal XX% first emissions And scope our accomplish intensity flaring it flaring our both XXXX greenhouse as by targets end and Neal as Our we the XXXX. to Bank XXXX Also recently previously and are methane,

industry two Going number the the still compensation CEO annual think see in other leadership, I ESG to to of years and Most all around I'm incentive changes XX%. we executives, shares. slide tied XXX% XX executives. last our the for has only on components over focused you can in significant the made it's performance that the

our key to of last Goals Chairman, picture You a Board Directors recently can ESG and shareholders director two asset Committee, year. expanded we read Sach's and on with we our align We see responsibilities up the second is by targets Ken HSC the added are increased that we've XXX% focuses, year, Thompson, last ESG. and for sustainability this Jelescu which Dreyfus XX% Non-Executive a interest. Oversight Climate encourage led years. Maria Director Partners these expert reports. Again, secondly, in X We management On who over to Goldman an X. Managing the Investment has reports. the several was our And everyone have and of to

in enhancing back Again, secondly, the probably is cases, that ROTCE. $XX to We strip to the got the leadership XXXX. continue longest debt in returning at Company shareholders. buybacks about any have the level. will time period. price. into XX% flat of the I that Return that inventory. there. And by end strong mentioned several that Balance today, we'll inventory performing different XX% to be ESG mentioned earlier, going about best stop will years Preserving Significant price roughly we we a a couple mentioned reinvestment do in we shareholders end by slide, to on Company's to the be on on on to highest I'm the XX about Sheet, low-to-mid this our U.S. just returning billion of of capital the discipline, both be history XX. over the we and quarter. Sheet next Going and shareholder mentioned the XXs to and our that spending rate. Capital value returns, I Balance to of $XX any zero I that focused I in We'll the also plus ROCE we're and largest you during have last move be Slide remind of as

We Q&A. it for will open up

Doug of first line Doug, [Operator is Leggate allow question live. you. for our an Instructions]. Thank a We'll America. from for We'll just Bank your signal to take moment questions. to with pause everyone opportunity

Doug, can't hear you. we

the go us to next question. Let to

Thank you.

Neil Our Mehta Sachs. comes next question from Goldman of

Thanks morning, morning. this the for Good content team.

the XXXX look spending. dividend you you'll tying like. into with year? you think And us as range? about share reinvestment look was be had XX% The of XXXX to first capital as early XX% I'm I cost you then that you X, do up what base turned next about think case inflation you us rate might as think the different that Can of elements it where you in make how here slide number question the an give could pop into where on payout managing

question. the appreciate Neil,

cash When XX think it's that Scott I to flow about in rate mentioned, what XX% before. XXXX. I've similar inflation, of about projections to reinvestment talked is as think for you the

but, We we're little mid-single-digit toward mainly overall labor materials as we're us Sand, inflation which capital probably see to push up side. about it's starting of for year our move been the will pressure upward Cement, offset and year long-term some some to We've for end toward we impact in capital tighter the in that when have seen range. the with contracts dampen you to labor, range efficiency the on And of Diesel, some as closer the improvements that chemicals. Tubulars, think helped to probably -- year able XX% guidance that a higher on end the see expecting our with the inflation, gotten

looking in really with plan that, offset efficiency think that at hopefully you at some overall something we'll with us and our to I the we're still be to still of the inflation But to XX% driving be up, we will As to And XX%, rate gains. and all still commodity stronger higher an able to standpoint. still from from to XXXX. down reinvestment which is mid-single-digits look XX% XX% said for for the probably allowing come XXXX, having margins, the inflationary offset prices to we'll or able offset allow

up proceeds? as spend time you it here the just made procyclical Why just talking and is think sense? color payout? It dividend core a that, really then is sales. part about big I about you this Midland, some sounds to and is of like to want into think sound -- just appreciate buyback of did you it's a with how It like the be eminent doesn't bolster monetizing the the asset Delaware use do a

Neal. Yeah,

First of Basin, it we doesn't that under Midland long Delaware acquired the term. all, we price it that compete knew the ranked versus and when various scenarios

roughly And we and take and had, of I approached process as quarters had in we call, had complete by that go wanted process to so so it. we to a been evaluate vest. period Company, and a we the -- that several started mentioned And last decided

Let's go Balance Sheet. into the

like X.X think price. shares will our stated we to I but me I'd dislocations have to and like targets It to-EBITDA that buying we X be run lowered to - during we've it it gives think significantly, creep. us We a It a I've debt forward, X.XX, to I'd prefer dislocations definitely stated buybacks, we if And XXXX. during reduce new surprise the going on debt of back do some already lot at to debt long-term. we'll XXXX. have we used good wouldn't had options. several

see during you'll XXXX. shares be us the buying So in marketplace

Thanks, Scott.

Leggate next Bank take America. with question from Doug We'll of our

hear you now? me can Guys,

Perfect. Doug. Yes,

happened, I on do don't what you. appreciate I and me. Thank apologize Awesome. know calling

any inventory industry the E&P in best the on. probably and of in so So visibility, of Scott, longevity, terms you've got

variable ordinary discount is dividend lowest my Company. recognition I get oil Think of know even. an don't the question major dividends does. the that a that models the issue that, got dividend break also My or You've sustainable about

the dividend? recognition, You've longevity out base got to the raise why not get

Devon made only We've variable third Doug, will make -- our mass already second this dividend made be their when they is payment, it.

mid-XXXX yield dividend when get companies the out getting of and started, And of coming so firm variable just that we'll see I'm that lot when credit. more you -- get a now XX% used believer a

don't plus So I a to into that regard, I'm being in habit. patient want get

increased base. to the get You over the to But can base, half over going XX%, I we'll Neil base, to want had mean, I it increase over base talked increase what continue we cut increase don't into year. majors last their to the cut are our half their the about, base, we peers [Indiscernible]

to the base your you to get situation to So we price you have It increase careful. have be you into long-term impacts where point cut very significantly want don't to a where a stock so, it. to

have I dividends, lots think sheet buybacks, a balance having and great and between choices debt, we X of dividends. base variable

so And in to most of is shareholders the return three forms. goal to those that our

we'll back for ran this one's on, technical thanks start and the real. I it you understand plugging little guys keep tax follow-up to move going capital wells maybe bit break-evens seems taxes become on Because a answer, I me roll-off (ph). of as answer, sustaining model, about up and cash that, is Neal. the business the to a and so the I this away the are cash of concern the Scott. guess are into issue, My we IDC but to leading coverage now that, to you is has as want transition talk as embraced clearly market have for that

So forward? tax on levels, we as about basis going sustaining current the spending cash but still runoff, Neal, think how a for you're should NOLs maybe at

Hey, morning. Doug. Good

not If that much a capital equals basis. an go-forward could -- about cash break-even. where seeing on And that you think see being Net operating relatively you really about X, environment, that talking really, your flow in your about you're think won't break-even, you Income on impact we're

equaling capital slightly we won't Now it on that margin, the in I'd I'd impactful. be that the again, say break-even view cash quantify so it's program, the not way we way and operating But breakeven will higher. the migrate it. say environment, flow Where Doug, ever

lot, That's a Thanks helpful. Neal.

Of course.

Barclays. from Wai We'll Jeanine question take our of next

everyone. Good our for Thanks questions. morning, Hi. taking

Jeanine. you, Thank

I you, first guess is for question our Scott.

X%. that oil right related I updated as view this your it but supply did, heard prepared and remarks sure demand oil or on primarily above I'm caught you such based if to more your not is is I on correctly, the efficiencies Sheet? growing Company-specific factors you your macro think I mentioned I in Balance that that if consider may great

always -- that next the to above several market that did the supply. we're No. Unused next very Plus we're believer used In getting macro, going grow to capacity a X%. I that over to a tighter anything be we're years. is not I've stated so to OPEC the growing I I above years, mention in two did is extra the not in going in regard in mention think going X%, up about $XX of be do I'm there next no firm several to over $XXX publicly scenario years.

Okay. Great.

If not higher.

Thank It apologies. in on check so My we wanted sounded you. weird, to that.

Thank Okay. you.

correlated numbers, on buybacks sales meaning keeping dollar crude that then buyback, say talk or to referred on the just half doing you during say, price for debt a create Thank are half market the turn? will to consider most Pioneer you your you so, does buybacks below that be target a value how opportunistic dislocations about can our execute would leverage, after And the turn think more dislocations, you'll you you that well really closing buybacks shareholders, you. that at

things job of, poor I has Neil, think always buy done top. at the back the our industry they one a Yeah, is of

except don't purchases, the last last the and major at one at during Company independent cycle. bottom. at the quarter know back buy they If bought look the year. and pandemic, you their year I CEOs Pioneer. of of the We always of all the back that top all second look They buy bought in some the or companies never

rather during So look our more price, buy you that's if when a lot several it's X.X XXXX. we at -- they're had and I'd dislocated. dislocations shares And

the those market end see I hope case. of XX%. by flat just so a to in be strip see -- And day are type so dislocations time we X-year we should be go that or the dislocations, you a the at count the there period, price out and able if you'll several expect to share to see into us prices the when at of the reduce least in the We over

So should that's what happens hope what it's so. I and happen

you. Thank Alright.

comes from of question Capital Markets. RBC next Our Hanold Scott

quarter, buyback variable is When that and look Thanks. at the keep fixed variable. a buybacks with But you the discuss of just be again level the as going the fairly dividends? buybacks on be Congratulations to buybacks interplay well. between bit cap and my question the would on and and can max little that, you're between kind Would the in or you all-inclusive variables? XX%, to at firm looking addition of you

Now, that buybacks would seriously look we below gets at to-EBITDA debt we've - stated X.X. our when

So, X.X next X almost of by to it the year below gets this end the it gets year. In

generate goes Balance for we as So free that firepower we'll cash have buybacks. significant on the Sheet, so

buyback 'XX our we bought play. So that still current it's in outstanding, 'XX and still in is

use to after we'll announce obviously, buyback. so And not use or whether go ahead we and Board that that, would another them and the will look at

it's that just long to It's time. it. I about think magic shares -term, nothing important it's over reduce there's so And

Right.

So yes.

and question it could that of return excess certainly that when for buyback, a variable in So to I in were shareholders to [Indiscernible] the could theory, structure, right? capital guess of at you -- total dividends obviously cash you way, look is my at look that variable guys it I XX the you be if utilize fixed

of XX% Yeah. Yes. returning It's excess in the we're already.

So there's to X to addition debt, go so free distributing in we're XX% that generating much you in Once no use. firepower got huge flow dividends. you cash to regard

shares to You reduce got firepower also.

it. Got

all any is. the be hedging were Okay. quarter talking hedging strategy at weeks considering in with the to that investors going Makes at going look on leverages back Do the to long-term sense. right from then I how macro. next hedge that evaluating my commented In forward of last about feedback is to you and above point? of the kind this over where coming you what have you And Great question you've hear. think

the to here. with down. current and the doubling back situation, Yeah, size to as plans of just we're supply given Really that a and bullish room think more at this acquisitions, Scott, things. there's move demand sheet, in about, do then point oil any no you incremental with hedging balance low up And of Yes, prices scale and Rich strong the of gradation then then on couple time rate. And strip. Scott combine tight the after just the the our size investment Company and talked

and the and look and of X at XX you month, any so so, $ hedge to really really XX WTI from drop term. reason out talking in no long WTI to a that, $XX, with front it's strip, they environment you agree on you you years kind And today. plans hedge this $X shareholders, out is can't If really go almost the no just

as So is best strong of on talked balance and for sheet year have and about, we in the point next be end to year. we're going the Scott X virtually hedge a the this

from that's plans. So incremental really standpoint, hedging hedges no a

Appreciated. Thank you.

Our comes question John James. from of Raymond Freeman next

guys. morning, Good

Hey John.

profile, of the now XXX X% support higher to last longer-term plan of in quarter, -- sort went really sort guidance have think saw the call XXX cadence talked are The essence? led it's talked has add longer-term again first to sort sort Rich, X talked just do last you and was the the how previous for less well, that that range and question with gains again, pop growth curious presentation, any your integration and in that about updated letting and how the guess and of -- continued those from had more of touched if I'm I about pumps, the the completion that Slide I these joining about XX pop quarter efficiency to as rigs to implications needing efficiency you past on hiring I that on you you to X full-year it gains about XXX of in you

it would to Yeah, rigs. tweaks Delaware, with that love down mean, a view still and gains we'd capture John. better same it's think to That that was in it's little had see to range. don't still some get what moved. at efficiency I in these move of we as we're doing. obviously I that But probably think bigger continue generally, say I bit. and question, Great it we the I that when X those X we so Company

to in of timing this what past transaction So with after. it's acquisitions it of wells think whether side for and is to were those noise similar closing lot the say, just year on overall, I we've us lot prior be popped about a the under X a things I'd very talked to the there's the pop XXXX, going of of what or

And the double we popping, point to number the so closing. expected up a popped wells would we we got that before have ended of

pop it's I'm And wells much hopefully were under so it other just I to we who's higher into that timing got read helps. than those too why as count. wouldn't watch of

more traditional a it position. -- call I contiguous any you just expansion guess -- [Indiscernible] I Got that color how over That the more any then be one is about performed do lateral? give of to given sort and helpful? of And the few you year thanks. relative of laterals you talked would there the nature doing could XX,XXX-foot the are it. just of, your laterals of companies large the XX,XXX-foot XX,XXX-foot additional or does, part call able be context color potentially to have the Is obviously on this to additional

John, we the dozen executing we similar is issues if from year had from this did to perspective. perform bit about more. XX expect From that a economics perspective, positive very which like wells We a will haven't and side. completion XX's, impact and an our well -- a X's year, productivity double we execution little looking perspective, next be to that probably not a and the we'll drilling no on

we So huge to value these we a our to enter see our time continuing on, as being program. have adder these goes as still program

Thanks it. guys, appreciate

of [Operator take from next Morgan. We'll JP Arun Jayaram our Instructions] question

the to Could And you those plan about Arun and tax in perhaps for the Morgan. for retire Jayaram on that thoughts about you. in on JP XXXX, cash -- there Neal world X thinking in a And billion based any sense to you're of holds Delaware get I the implications perhaps talk if the want how strip debt would morning. well follow-up you and $X.X be any -- the Laredo with be from as Glasscock transactions? much transaction would Good how today? Basin as would proceeds.

book focus the Think on the to up about then we base of on carryover We billion with to accounting. you value due the had question debt your Delaware purchase booked on follow and look Delaware $X.X tax assets. a going at I'm $X.X million here. was perspective, the from Arun, that it those

of, it at book we billion. of to would taxable gain of about the date call $X that we If make $X.X approximately have a you loss let's billion approximately proceeds think adjustments X.XX, you will to expect effective due the

bit a and the differences So between tax. there book the little

Scott's appendix, debt. if Scott's XX debt of the That's points. Now, on the retirement call XXXX, -- towers it in that's $XXX you debt and points. if XXXX, it's and million -- at and question XX basis at in million, XXXX, reference $XXX basis In we million. look proceeds are roughly In $XXX X% debt XX about you use in discussion

XXXX. that in XXXX Now, callable is

discussed, flow haven't 's So if profile debt. return staggered you and articulated capital that the model the about actually repaying Scott we think cash we've that free of the into

to long-term at free be as which end By down talk it's factor we cash and up really as to to or that net sheet I'd flow to pay at that how increase we the divestiture cash our of provide in would well, free lower to look target. flow, of opportunistic be gross So Any the greater already, opportunity an free Scott really that XX the about debt year really, of return would target. of that said, X.X. buybacks. then commodity what debt And more due balance with get the the prices, acceleration articulated point Scott will in say due capital.

And us I opportunistic you that stock. as up XXXX. And even higher market I'd this at points. So to to good and you potentially as to we energy it if volatile. into entry provides look highly more be beta, There's call, is being as look know everyone position all sets opportunities market back buy say and the on the forward within always

we about capital that smart returned that's allocate and think we shareholders think our it's so you'll in to from how see and capital thoughtful XXXX. forward money, move shareholders, we of I terms So, we into as it. us really We try how to be

everyone. Hey,

Just -- or that just able be I is just but to I'm billion question least so tax of still gain one -- paying $X of taxes. our also we'd follow-up the cash we'll really be be know XXX% you we'll at in on tax we're there to XXXX with NOL that know, shelter forecasting in

a some basis to And In your of maybe really you're sounds about crew. the like for at efficiency And two is frac follow-up We've that helpful, zipper of Rich. are a couple the highlight what gains gains Midland peers on a type seen then of the Simon think Joey. That's in from my XXXX. do go-forward how relative it seeing packet, today. crews you and adoption efficiency standard you of Basin

others We like to Simon success see great Frac. continue with

As summer cost Simon number why the I conducive water efficiency and little do the but aren't wells well on I most one odd of coming two we of in bit is add don't fleets will demand we'll to thanks you said infrastructure. going all a that's and $XXX,XXX. We our capital In and just infrastructures significant sand But that have convert pad, always from it's And Frac. one, prepared point so. going frack, X of frack third possibility continue logistics. time one as a significant also lot. a frack just don't you summer well and perspective. nonstop, to of so -- it's all time it fleets support sense neighborhood essence, to number a water play $X we fleet future. pads Simon we're do reductions our in some on if water the your the a Frac But looking just of immediately time, grows we XX% at the not difficult my infrastructure are These more an fleets. gains, able -- a we overcapitalize water in near can at in have asked, get continuous comments, it greater, Great, adopt and in vast the a to are Frac want point to some some have the just as adding of a fleets of Simon the makes pardon, Seeing why at

next Whitfield comes Our Stifel. from with Derrick question

really to to opportunity of size longer-dated on Building similar capital and all, Delaware good move quarter on oil the and -- the transaction, and Thanks, set to we've speak divestiture. prepared comments, you on congrats divestiture the and and Laredo building experienced the both could based markets? that your your the inventory at comment improvement potential desire Midland and more the of success your your on your morning on

year. We're whether as you've and or Derrick, goes. three I think similar about on we've to like previous we've to going evaluate drill done, And that seen outright don't to -- continue Laredo it's years, had sales demonstrate last packages that the we've talked I what four calls then the every transaction. or

And there, is so people interested market in the those. are

be and think continue And at so those annual look strategic to I those basis. we'll about an on

as going acreage mean, to of still look trades no add change. real terms we're to obviously in well. I So

trades, get balancing our that and stuff that we're longer-dated a will to of to for so And portfolio but be not between going while. acreage part divesting then

to Could efficiencies I improve wanted my E&C comment focus on you're ops, maturity elaborate progressing predictive this and Joey. you perhaps follow-up, today. using the your technology And to machine analytics Great. with for and efficiencies how on on of and learning

when frack, really individual you our we big back of give the based whenever how of is And during thus chemicals on well whenever it's turns it those less use you can delivery on huge bucks, our our for example. be into Yeah, a example at I'd things. not back use predictive love look use machine chemical. an not to. where on outcome throttle dollar. waterfall we're that determine a what We've big learning well wells. look may bunch multiply the at we you delivering and I that but chemicals we're it now on one cost times XXX, the to When basis question. of stimulations and of I'll the our the our getting appreciate where one specific charts on analytics was And gone it's things, our little reductions,

the prevent and have a could that had drilling activity. we've see where looked been the on for that, pipe And we've Another I coming use us. we know examples. the successful name predictive analytics machine and thus And stuck we And and back gone can tool, we and by on hugely and how where side, pipe drilling predictive numerous it's doing it. at go learning stuck to events could

it's a mature So my perspective but the that their opportunities I continuously, expand and very to methodology limitless continue say it. would we that adopted from for and have we used

been question, and huge but for look it's benefits going success a its we forward forward. to no, us the appreciate So

your time. That's great. thanks And for

our take Scotiabank. question We'll next of from Paul Cheng

year? will going morning. fully Thank and Two hear And not be I the pack. taxpayer [Indiscernible] the in you. Did it like, Good questions that XXXX any use you NOL a cash right, meaningful to up still cash one, in please. first way you next the on looked because in

think it. Paul, in you No, you're We I cash do -- It's misheard payer tax actually a XXXX. right. become

should that I tax kind cash tax assume? then of that rate -- rate see. what point we that And at

those the XXXX. and we'll then have liability impacts X% full the we the starts have deferred tax into payer as become filter stay I in cash model probably tax have you then so But do have -- at in to that well. and and you'll we'll that XXXX a XX% Well, mean, a way beyond

cash So by your will reported be XXX% of tax tax 'XX?

then Yeah. does that, slightly a smaller but I'd say than step it for up. portion it

see. I

Okay.

determined And rolling will deferred that have off. we tax be liability

or margin EBITDA EBITDA tell why contribution activity your in that is plan attend, increased And much deal and also the us oil those on per that do during assets portfolio? that you is minimum, you BOE lower a those if assume overall basis, unexpected campaign question the at third second to had to thought. quarter assets, can and forward that on The at share on rig can new sell the a this third activity come quarter, a the Delaware have just in assets, a I curious during you already the assets, those from just you to relate or

had as up going divested, routine, it was so to normal couple our still say to as be we're Rich. not follow talked a a things. the I'd One, -- through were planned, unsolicited just whether and the to Scott us Yeah, we in normal planned I process, we would those had we so going or wells which and that course, led the say ahead. I schedule was wells were and interest about. we and drilling on just the mean, was proceed unknown

of a catch In terms XX it's higher of oil kind the asset, it's the in of cut. sense that

bigger obviously, oil barrels, get part higher so, cost. on a a price higher have of And but you those operating it did

environment, in a so, very lower-price But the what competitive it higher-price margin-wise, in And was was Midland environment, Midland. the with were Basin. in clearly margins better

cash of flow that's of generation asset from how a free standpoint generation and cash So that really flow

numbers of quarter terms so have in don't basis and to cash flow exact get we'd on third to the you that. up, have stacks I back the

Thank you. right. All

Deckelbaum next Company. comes David Our Cowen from and of question

making taking for questions just longer-term Scott. one on points this to I the follow morning. the maybe wanted everyone you earlier, up of that were Thanks

very buybacks world for XX% you entering to accrue this of as more just crude, just increase where either plus, dividend that over long-term to being base vision. $XX particularly ordered still The sort We beyond we're support dividend free get As a that used opportunistically more or would point, and used is point think a you cash about and at spare a you're of debt-free. get accrued future capacity, and time, you target, leverage like good payout base and $XXX limited theoretically if the below excess cash cash

of market over And commodity I base. strong time think a variable combination shift X. price to that you'll see in us from

stock see to We're firepower you'll easily the plus just at us $XX market, $XX Secondly, you billion give over prices. to an back of in have idea. buy various

and over the so time. of base distributing showed XX% of free both flow you over just cash for And firepower our have variable that I and potential above we

to our see change PXD and the buying for additional We're to more are funds stock dividend see invest. ownership starting So more we're funds starting dividend dividends.

think firms retail Secondly, of PXD trying overtime dividend reduce count, into all way the to another shift we're share reduce growing go making all to to -- that's increase the But still We're year, important share the because retail starting to to we more it's EBITDA besides to EBITDA. to in. a the effort see that to count increase into to get come yield. X% more

around follow-up, maybe I we've for in Has pick-up but the you just for weeds. activity any increased Certainly, of and sort necessarily general is in in more But activity your And appreciate downtime then private just interested created public seen, private Permian. Joey, little activity. this hadn't that that, the position a in just in as and planned that's Scott. And bit maybe maybe Midlands outpacing a 'XX? acreage increasing significantly you,

private the well us hasn't and No. at We now stay as pretty it all. but contact operators in close impacted

Thank I appreciate you. guys. it,

And our Truist Donnes Securities. Bertrand next question from of comes

I'll so just morning, end. ask about retail Good Thanks me the it just guys. investor. you for sneaking you talk at in one Could the yourself positioning for can maybe wrap up.

you covered think little just that but mostly a addressed bit, I is it by may ESG initiatives. have maybe

we're then appreciated. there and going scenes strong very not the privy else returns the which broadcasting retailers anything well that of you is But maybe that have commentary, You shareholder is kind to on disciplined behind are

of and discussion variable view investor, the retail return the with not capital the but we and how competitive, the on institutional a base, you the be as by on to plus It's And how the great yield deck I question. think investor. can we slide the positioned that across tell

So lot how dividend. across a dividend, managers to we continued lot we had of discussions and we've is base well as making of us some we've in of private there seen of so. institutions those with and focus had you've and will traction large increase momentum there, a some continue wealth are think and really the discussions as a Scott of taking lot lot feedback, And the positive of overtures variable the I had and steps we're we've the the which of the position positive as a part pointed, on do

made we've as overtures outbound of inbound well traction, been a number has number in a there has and discussions. of So calls been there

within holder. So hope see equity increased Pioneer you'll that presence it's anticipation retail our our and

Sounds appreciate good. me, It That's Thanks. sounds the yield. all they like from guys.

They do. Certainly, they do. Thanks.

That the this will time conference question-and-answer any or for concludes session. remarks. I back Sheffield closing Scott at turn to you today's additional

to in again quarters everyone we early of you probably year. see Pioneer's will the listening until know one history. Thank best I you for Again, next

I so travel Thank everybody and safely. a happy holiday Again, hope you. And have

call. today's for participation. your Thank concludes you This

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