Pioneer Natural Resources (PXD) 17 Feb 222021 Q4 Earnings call transcript

Welcome to Pioneer Natural Resources Fourth Quarter Conference Call.

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

thank results morning, be return Lauren. our joining call. you Thank quarter for quarter Pioneer's will of Today, program. we And fourth you, and for strong Good everyone. earnings fourth capital best-in-class discussing our us

our encompasses In return will outlook, cash high through generation and a significant rate, margin addition, free our discuss low all Basin shareholder reinvestment asset. flow we XXXX Midland which

Scott. will up then for to call questions. that. We I'll over it the With turn your open

represents X% on than would an $X.XX paid paid March. variable through of Slide you and base Good be strong and quarter returned Good dividend the everyone. morning. of number and increase flow a X% cash generated billion the in of repurchases. billion week great plus dividends yield additional free which greater payment morning share dividend material include $X.XX Thank first a base a $X.X of this X, to we XX%, closing Starting in basis you, delivered year on Pioneer With a yield shareholders the base Neal. January. fourth quarter’s out dividend dividend a record annualized This back will $X.X approximately

ensure dividend want capital. have check, payment yield and reflect now to providers properly represent one our thank into in dividend and X% dividend variable in to current how or I that base We Bloomberg working to third-party look quarterly forward. will one and components which return show merged data our it. they'll about will And past, Bloomberg past FactSet quarters do FactSet that's the with and take will the going dividend four us. yield, our the

our So we're now getting recognized dividend. with variable

share due our second variable to dividend Additionally, of dividend second about XX% of greater strong yield. quarter equate repurchases by flow prices, poised quarter. than cash the will in opposition $X.XX, fourth and payments $XXX is of quarter first million to we’ve When unhedged returned to our our from XX% shareholders. approximately take quarter to account into XXX% commodity and fourth greater the increase free than Payable quarter

billion XXs mid return a $X share to amount of this by asset XX% In in stock. has repurchases, program, our provides at a authorization this employed. our our to high These Board year quarter to authorized generate are expect on new results previous employed, base addition repurchase we 'XX a which of return capital mid-XXs significant stripped around current driven XX% on to record capacity replacing the quality increased capital which increase prices fourth purchase

Slide drives fourth solid X. strong quarter number Going Again to execution results.

the And volume end we fourth in that boxes it Delaware the quarter guidance our the Continued Delaware half adjusting until divestiture. production without one and the when during the production two days. you numbers, of sold as upper one see the with of can year all and the last total both with in showed for XX the

flow record strong cash XXXX. supported $X.X production flow, resulting the I free cash on mentioned in another As prior of of in this billion slide, quarter

and quarter $X.XX horizontal leading low year. remain $X.XX Midland and peer the during LOE for at Our the

a company's profile remain Essentially, history. balance net to at in we expect the to approximately the XXXX. at leverage best low debt sheet year XX-year had Looking X.X forward, end EBITDA very we

in shareholders to core are cash corporate in return number total significant of times dividends, to at rate, Moving At Committed approximately thesis, Slide we low cash cash capital, expected our increase investment this exceed flows free representing to X. variable through reinvestment flow. from 'XX, the to strong prices our returns almost Majority leverage of base by a underpinned with dividends three per dividends low strip form plus $XX total shareholder to of XX% which free current of remain share XXXX. committed representing significant free generates flow. returned return

base continue billion to under $X share and pristine sheet with repurchase framework dividend balance We plus maintain opportunistic will our authorization. new compelling a variable repurchases, supplement are share

flow Our is free next five strip the at years the over billion. $XX cash over five-year

run In model addition, out we our life of through inventory.

$XXX assets flow well it's cash well billion strip free long-term the and Our is last last the until over over has produced, of life at our the pricing. well drilled

to best-in-class a number returns Slide to high cash to of back highest Obviously, base at X, shareholders. returning shareholders. are we the variable, cash plus with percent Going the

framework Our when is any compared returned investors This free of to majors. highest of returns dividends one the directly percentage our peers cash through investment to cash the to or flow investor.

several dividend all dividend dividend employees are seen looking compelling always the funds culture the the who attracting benefit X, also to significant Slide tremendous own a yield seen check. among and amongst and stock over a last peers. number value quarters, have change forward our of We the that

the Slide quality that average a XXX of of S&P sector. versus XXX. XX% based bring capital power top-tier assets industries Pioneer's looking cash a X, we Again, our expected when quarter cash every to underlying up and yield yield of and price. to generation, exclude our quarter. yield of number peer-leading X% and would flow peers S&P share our peer S&P you comparison strength on percentage return dividend return and free the and function demonstrates which beyond the As next XXX all Pioneer's the base extra yield in to When X% the This exceeds quarter, our all dividend, shareholders, increasing flow return to the current all of strong had high group, strategy. majors first first yield that's for far in -- it surpasses approximately same the

yield, the this growth yield for X.Xx modest based pricing, on the compelling. than of S&P is more the almost the Pioneer's is fact, stock owning average strip average XXXX repurchases Pioneer's investor With the and share Xx In of yield, oil the perspective, case majors. and strong from dividend XXX

of and number to key commitment is dividend investment return Going of framework. growing X, our Slide our We thesis. base a and a a strong pillar believe to capital shareholders

impact And have augmenting strength Inclusive the with annual dividend increased peers Further approved shareholder our last of on increase repurchase we of than authorization. than fourth of durability earlier, the increase mentioned majors. strengthened increase growth across further has all Directors the third growth compound base share continue balance rate sheet the greater to dividend cycles. base cash quarter's XXXX. in prior X-year a the new is I strong U.S. This quarter significantly. base billion $X excludes quarter our our of straight the authorization This and of the since second greater of predicated represents As forward, increase. in already returns, flow commodity we XX% new our our authorization. of base exceeds under This purchased dividend increase will the is the an from XX% quarterly based Board $XXX price million dividend XX% our going and

will basis. We shares on buy to continue a quarterly

is share count. objective to reduce long-term Our

industry in sheets one of amount best the significant the have to opportunistically. balance We of stock repurchase a

to sector this a us we the to get price Going dividends breakeven $XX retail of return chart to cash through in provides high-quality is calls more promoting funds cycles. have Slide free around the also retail ability Pioneer, the of and sector. number Pioneer's XX, people the assets, the flow on commodity lot a cycle. through dividend significant continue regard capital as to asked discipline to low

As it's prices over I strip billion $XXX mentioned, term. long well at

graph, and at than we zero oil the share dividends $XX have prices significant prices forward, all Pioneer with greater higher on to shareholders oil $XX. seen hedges per going upside as above have XXXX As

Additionally, of employed a lower it capital strip to oil return remain but Rich. current mid-XXs our lower of sustainable Also at it return now I'll amount flow, prices. in a generates material XXXX. of capital at cash dividends generate prices, resilient free over prices significant providing commodity turn

is and between per morning, consistent third Delaware after County a oil and And the per good BOE guidance we XXXX we production to where start of Thanks, assets, I'm average day. production with XXX,XXX the XXX,XXX forecasted going in forecasted to billion flow, for strip With basis plan. call, everybody. between expected is and barrels in on discussed XX, sale expect we Scott, BOEs to XXXX on total oil XXXX for our annual Slide Capital quarter XXX,XXX our Glasscock and of XXXX day. average to XXX,XXX at over production backing to of a roughly XX% capital subject midpoint. which midpoints results billion both billion that preliminary free cash expect inflation. Of and to with record to our and is will we along on any $X of be this not operating in ranges, pricing, $XX.X XXXX. $X.X flow total over generate the billion for capital, billion cash be incremental $X.XX the further of After company. $X.X the Based capital or the locked budget, outline

cash operating account our the a as rate flow, than into the is taking see can XX%, reinvestment the you lowest of our capital less percentage company's history. in So

reiterates program, and XX% that reinvestment of Slide at base discussed. the through this dividend being XX%, our of XX, and our to to our see looking cash of program, can flow rate repurchases you representing large Turning program capital graphically returned remaining investors share with majority Scott the a variable slide really

approximately our inflation. which incremental the a out fund WT of slide, embedded in, efficiency previous midpoint I capital is our locked budget of on oil asset forecasted basis, also as from The quality of which, XX% capital capital mentioned protected program. it approximately in program XX% combined the remaining and our range. our the to guidance of includes prices program, $XX the inflation, on Importantly, of at is And high-margin of our drives in that XX% points base breakeven,

XX. Turning to Slide

return our that has You contiguous the that Pioneer right, can we're -- the on our high over portfolio. of the graph Basin margin, in high our see well from on XX there the we Midland and most position locations acreage XX,XXX have largest focusing development where in

We During frac to and XXX production XX of fleets fleets, X roughly wells. on to run plan place simul frac are X XX to XXXX, specifically, which run new plan just to XXX approximately we rigs. on

see, longer more XX basically foot on in feet couple of XX,XXX in this putting the a XXXX, creep XX,XXX-foot up years. add and XX% As can feet wells a compared in on our lateral in Inclusive XX,XXX-foot that program, from to and continues up the as range. And we drilling laterals completions XX,XXX average it into are we drilling XX,XXX-foot last you for length to well. expect save lateral these is program that to per approximately basis

we cycle frac fleet time As well as earlier, frac in this later I operations, year are or which from are said company. in to spud-to-POP, to costs our release, mentioned XXXX. early evaluating we the a utilize And reduces shortens we the benefit continuing simul and press simul another third

on. to Turning that Neal early best-in-class really XX, margins Slide our mentioned

production. You really and our -- our peers the see our of realized here amongst as side that wells on can oil anyone, our quality high highest percentage prices the percentage our left the a of reflects is

the also highly efficient borrowing you look our our cash at you we structure, reflecting corporate low our costs, can overhead operations, If low costs. of side with best-in-class field right see the have combined chart, that

it translates those margins. you into two together, put peer-leading when that really top-tier is combination So a

that sustainable XX. This free with high-returning with slide. the peer-leading that per Slide slide for years inventory wells BOE, It breakeven oil combined flow our with efficient program highly previous to cash generates given many Turning the margins low company's shows great capital nicely of dovetails our duration best-in-class is prices.

upper high seeing a And margins inventory so of of the where we're the and shows great benefits right, kind just it base.

Slide XX. to Turning

recently of same in debt our about one the cash return to return the flow Scott high talked balance cash significant we to industry, capital allowing us combined to margins per having at retiring capital really that what improve coupon higher BOE, framework, best the underpins continuing time, sheets on by announced. shareholders with Our while

shareholders mentioned, generation with to our plus roughly program via our balance flow return remainder XX% to base cash cash free sheet variable strong free Scott and As allows flow of for the us great share available dividend repurchases. our

continued here, reducing emissions. to stop to I'll and it So back I'll turn over discuss Scott progress on our

leading XX, Slide on Starting sustainability Rich. you, Thank plan.

report, emissions sustainability we Scope initiatives reducing outlines right our support Throughout our by greenhouse key the highlight emissions our XXXX reduction third ambition seen for our published X. zero XX% X and reduction report, methane goals, and targets, XXXX. a and underway on which the the by quarter, XX% robust we XXXX During strong enhanced Scope that both achieve by environmental intensity including to practice, emission are by reducing emission gas emissions net side,

in addition a by emissions-related adopted to to used reduce activities freshwater our In XX% goals, XXXX. target we've to completion

to Our social on environmental, governance the our in the has continues continues emissions lowest rating place a Pioneer Pioneer with again, high leader focus on as intensities established peers, and among to XX, environmental of current many priority agencies. be which comparison has in by industry, On stewardship. reflected and a Slide third-party peers one

private balance recently. see Pioneer Long to primarily The X.X% remaining make the less lower the period 'XX on flaring emission Pioneer's have the net countries. you XXXX the emission When a chart in And world U.S. we intensity emission strongest again, of sheets driven XX-year XXXX compared go left, and the companies, to goals majority to some intensities industry. zero. industry, and one records to of represent Pioneer's eventually market, lead XX, term, already ESG. than compared past, Pioneer and reduction in anniversary been need goals. will continued operators this bring with our Slide reduction other number the reduce peer, And of down are barrels producing low lowest the publics breakeven had the demonstrating a any shareholders longest as from inventory, progress continue seen XXth best brought is one our side, the again, one over production past. On many return again, just pathway their for great and take among on that emissions this shareholder the Continue to peak As and Slide the of have very actually on one time. the oil companies. made actions celebrating We a XXX the in and in to our targets Shell year. of best Pioneer, continue of barrels of industry of operate again, barrel, that with in low to greatest returns, of continues greater that the to years. others, companies as it's capital XXX to on discipline, vent peers' in XX, our used to more responsible probably on other primarily the reported the slide going reason day a place Basin marketplace venting flaring or have global can XX expect Slide we used the has last industry, we reducing continue capital, a much in show primary and still will On XX, flaring focus the XX the than the to type on The $XX past a million X%. provides track to a to on somehow exceptionally under have that number -- Permian capital million take allocation X%. we less intensity. They strides maintenance the resilient we back hope than the Obviously, for day during to action necessary long of in than X.X%. a we're the to flare price Shell improvements. longest Pioneer of right-hand need those flaring years, return

up We it will for Q&A. now open

Mehta comes Sachs. Neil from with Goldman question [Operator Instructions] Our first

your helpful. share share Thanks great, in opportunistic at box the see to dividend I you Scott be be tool ratably, XXXX, different was question that That's and guys would about oil sensitivity And Neal. you yield and And appreciate team. My do prices. the that around repurchases. we intend around think as how tool do execute a repurchases framework as

mean, Neil, Yes, the two we got yes, here. Neil, -- I Neils

realize didn't that. I

to balance we're a buy got is what great -- quarterly. We've I said, still going sheet. The

we exercise at to fourth So it in we'll quarter, and did that. look the continue

But obviously, -- long-term of sheet said being to provider the So more confident have coming to it's history. sheet the great have I'm like we'll more remain primary shareholders than we getting substantially. We to strip return And the oil in higher much to a easier last you when continue secondly, the continue and dividends. best is lot balance year. expected balance some about had I just your happen to before, going a reduce the to I’m buy. shares

We So Delaware up. sale. all of had move strips our continue the closing to

So us continue see fairly in market to the buying you'll be aggressively.

Yes. on macro, production. tie was follow-up your but Thanks Scott. just the into The it to

production As there curious, 'XX, you to how to that clear we the your 'XX. you've same-store to you moving the versus to this go in we lot see that? think pieces, pieces. exit 'XX but how exit. a think are number past, U.S. are oil notably And you are as But about should the about basis, a on And about the X% broader of Iran, do call be moving compare thinking call then of There around lot does the a shale now how in said up on it most put of context plan through out the macro, industry? on I'd

in the to confident the some to not $XXX are as regard It's they In we're at going cash so line. return that of not going in rates the no X%. range. to our stay Long to announcements to oil, of XX% to there's vary. growing all far, said, in No, The they've X% to line. year know, announced important in We change private $XXX term, growth staying We're the shareholders. we're will independents XX% few change, as are going industry, I'm the continue think a still independents, oil, I change for to us. watching it's public back rate. been them, we it's interesting growth -- per to

As written run out quickly. they're I've weeks, at they're to going experiencing Journal that all XX% that of in growing written a eventually, issues, lot to you are not as Street companies, last prevent the stated, out Wall of article run articles people issues, equipment -- fairly are rig been ramp going inventory on of by are two privates experiencing of came the that's the XX% out call. lot inventory experiencing Also, the is to of some there's going we're -- by There get a can't cost the labor up. so to

go those those hoping will over don't the reduce growth will end at I'm the that amount than portfolio. So significant at other time. two of quickly. know rates companies Basin. grow I type rates down has I the fairly DUCs. DUCs announced They've One to the balancing can of inventory significantly in a entire of continue are majors, higher Those X% their day, they Permian think they their in or

it. Got

comes question Kumar next from Nitin Our with Wells Fargo.

your Hi, the to XX, side, oil question. you where morning, financial with the good of dividend you my show prices. Slide discussed want maybe I on thanks start for taking and to different sensitivity Scott, the

got also your rid hedges. You of

So you're highlighting. I'm -- a downside that not case case preserve curious, protection? why financial investment some It's

So rid hedges? of why get

different. it's realize totally to have you Yes,

ever could even OPEC you've in 'XX. is Plus by to oil and think the going by OPEC of world $XXX. That's OPEC go easily to the has several been it I plus out and capacity stronger and stated than been OPEC articles, enough of is end run seen countries. Demand

no and obvious the it's them, up that the a there's putting hedge So Ukraine easily Iran Both of reason on that's situation. when could things move ignoring obviously, north.

strip -- hedges the totally the are is in Secondly, backwardation. oil

now, we're when XXs. right in a go So years. $XX about low you out the It drops barrel five

question, buy a five can't. years, for that's So a you could if $XXX put you different

going only $XX That's can probably or a the where the bottom buy out to put. next And several $XX are over oil prices so end you years. bottom of

put at to it on So $XX. sense make put a doesn't

So that's your answers I hope -- Nitin. that question,

my guess That's great. an becoming second And Permian gas takeaway is issue. question, I

talked pricing for You about what to majors. about a and terms your oil you gas away how private drilling bit positioned talk in basin? the of and the to take exposure on the you little thoughts are Could are

Yes, Nitin, it's Rich.

you years Bcf we're day, Basin, terms, and think when another going in about for couple I X to Permian broader of Basin. think pipeline macro need every the a the Permian the

rates basin, And about, so level is think talk I you're even that going of still growth that modest that capacity the we takeaway. at need to the

are those take likely, relates the are Specifically, the looking those. to in works months. and right for here of of volumes we to Pioneer, four a will as be most the pipelines couple there's We're Gulf one in now evaluating that on will that next it three And commitments. Coast that into

I think of at pipelines those done. gets will get whichever one announced things those

market today. Hope exposure as we the In Waha out probably terms is, XX% and term, I Waha move to basin, sit to at XX% of where our of more in think reduce XX% what California gas market, the XX% move to but our of we down exposure the we currently. really to that's we'll it, that helps. Gulf that the call XX% Coast gas out least Longer market

your answers. Yes, Thank for much you so awesome.

comes question James. with next Freeman Raymond from Our John

least some My goes free of flow. and around the on of that kind strip cash long-term of understand determining of base sort the oil like kind to methodology long-term the appropriate first base of dividend on dividend, it guys. kind grow. remind the price continuing kind assumption? in us current flow XX% ballpark Scott, trying It into terms percentage or of just morning cash looks somewhere you the question, of was Good to the that Can like of dividend just which that base at see on nice to framework the

a we're to up move get roughly been significantly that's it up going to. pretty $XX WTI And that open long-term to Yes. it fairly price. we're going about I've where have up to to move we where

be at we'll the calculate to continue for WTI. that over you very but aggressively everybody years dividend to a WTI So $XX that easily easy would up can base we move -- next of $XX that it that, long-term it to couple pay can

And then, that certain flow at cash is the to of represent do Scott, level? $XX percent want base -- you a free

don't No, that it doesn't look -- at we way. it

So of a we either of industry, companies stopped cycles. lot our history the the look have dividends at lower know, you as dividends or during it, price

So our we long-term down the it $XX it's projection come below back opinion. a in going why we're fairly are making cycle. That's quickly on drops If to XX%, to using a test. $XX as

it. that's the the of water on just just past, going going frac, amount of to year the simul you're think just big the maybe of about Got the in frac of about sort water relative more side go spend impediments year, we're then sort aggressively looks we're if And water mentioned on I one obviously, capital to I my like the just how things good to continue toward infrastructure to the infrastructure. expand question last a fleets third. add expanding of of and last logistics believe a -- simul I'll was the had and frac to think Joey million like simul water the got sand $XXX which other on seeing savings likely to bit and like to

sense item the exactly we're John, of that the key working being got that -- right. we've In on logistics water Yes, on. that's

$XX we're to we the goes advantage spreading real the in our in But north, budget, is it are north that that In the take infrastructure for one for of really capital water, this our system and or moving those simulfrac is recently and to the middle water with and in fleet logistics. water gives to a to us our roughly significant working a on board amount that ability meet the full our most so one the water is move because thing pipeline allowing we've the Interstate of out think north we've got water have way, million and under XX south South. year got I XXXX. in

water can such really on is that And benefits we're putting in potential. that just so run what and the that that's together their to use working investing fullest we all really three of now infrastructure

working what that XXXX, that's this early we're so really at point. be And by end we'll hopefully, year, today. on of And

guys. Great. Thanks

from Our with next comes Charles question Meade Rice. Johnson

Good your team response there. I want comments got morning Scott Neil's to to in bit to question. Scott to you into you back and go a

thing and the peers you're are It's we see line. between PXD the are that But So season there the this public this what been acceleration one earnings like staying that its the the there and of and of delights is large independents. seeing. tension of the seems there's the same in independents -- doing both majors

large you break that on between those is the of that break tension with not part you if you oil, opinion growing concern seems more. $XX sure want tension your like a another. of to to form it's The agree that's or it's and but how independents that see spending going investors it's to -- the that this, offer some is on going that So in if think to more the well, way I -- returning thing. have there And answered one you could your I tension to make two? I resolving understand But

only tension that Yes, is world it's the the need extra doesn't oil.

And will earlier, inventory said on they get is all it's like demand. and their I to the issues, question and go how into you so long back

day X.X to seeing X And million said, in capacity in you We're OPEC increasing OPEC at happens, several other X. demand world. various the demand extra we're barrels million around Once demand in the in look When and plus. record is -- has as that X.X So this everybody countries seeing all they reports XXXX. at I have around it between ranges no a country. record

going have the end And before. this so test never been at there of we to year. It's

in barrels the are in them be and The Permian the need 'XX And today. because extra to those about question flares the do And 'XX? so reined The may made privates. need what the we will in the privates And do? need we they I is, biggest Basin. point companies then

regulation, in, And in bond somehow, Permian the be are state, need investors, it's Basin. to EPA, privates through to investors, reined need privates the but rein the we whether in

that happens. hopefully, So

So.

to At into that And up guys oil, clarity in $XX I follow-up, forward capital I you there's a baked -- XX% is 'XX you bid 'XX. there's offered point the availability then the in. inflation which this, plenty a if starting the service pricing and is and wonder for appreciate Permian. got cost room to locked you've question. $XX the the play into privates related movie you to oil, XX% even of in on But to be made that in bid service your

'XX how in So this 'XX -- as you but could a for hand, in in beyond? an and PXD the issue industry whole become do

what think the 'XX mean I their continue something Charles, work. work it mean it so vendors, and raw price we make lot to materials particularly those producer, it's the relationship early to out there, sure of will depend best and Basin Permian to always have that we're cognizant relates with -- largest on activity can I our get as that's on working -- we at it's costs be a I step are. and and on what we have Yes, in that our to ability are we're I the the pioneer given X, think but largest level

like in And may can that pressure so as But that -- to confident continuing time. we anybody navigate that as well our or over improve what mitigate by we'll that. of I'm continue it look efficiencies and to terms how cost we'll do

on to comment thing. And Charles, one also I'm chime point Rich's out other going and to

X% If at you position our at look hedged oil. now hedge on

of $XXX about oil now for incremental change cash price a flow an talking you're $XX us. is environment, every $X million If in

would that's opened of of kind on peers. move real that reasons one benefit us oil in the any vis-a-vis would on discussion about Scott in So where early inflation. talking really zero offset And that up hedges the the really our

$XX as may a So to environment our while flow they higher so more in cash flow, relative their oil cash well. them think inflation impact is

way I together. Thanks, Rich and see fit the Scott. the Neal, pieces

Whitfield with comes Derrick next Our from Stifel. question

development. the morning with my success question, having good and Thanks focus you're all. first to wanted lateral on I long With

increase stated locations at accelerate the of if your laterals development? could think more in foot to further XX,XXX the many presently you which this And we XX,XXX XXXX? those locations could about on were you how for or be capital based XX,XXX-foot Page suitable broadly, to degree XXXX speak on noted are of perhaps could in the Specifically XX, program,

Yes. past Derrick, that X,XXX in about type laterals that to talked XX,XXX-foot drill. that of the we've great wells identified would XX,XXX about that be are we've locations

We've the about think XXXX. that that program we grown started in we something As XXXX. in is

than we and it wouldn't going wells complete So XXXX. XXXX into surprise the do me higher of it that those to XX more in we're even push

XX,XXX something So the a but that will be obviously, as because wells very I have they're continue on rate same come foot at basically flatter to capital-efficient wells. mean, the decline. a

us of huge get that's get going So there one to things acreage a to otherwise benefit to those that as just to it's well. and -- and potentially allows develop weren't we

into those did that and So the to there's limits XX,XXX-foot over you? we portfolio of lots to push Derrick, benefits the put continue lose to time. we'll laterals,

here. I'm Well,

Sorry, last my guys. I Railroad December. focus And follow-up, that. the letter Commission Thanks from for Texas wanted as on to

business have With if and can to extensive disposal guys water infrastructure projected an speak the network capacity, any? excess impacts that your you near- understanding longer-term saltwater and you

we in impact Yes. water what Derrick, move facilities that did production. we where had one to regional time have we But that And deep our had -- and call water, area. reuse we around our had they only that that we in area no there of given we also in on for the around they wells near But about infrastructure, have the about wells response at in area mobile impacted shut the wells other we question, on capacity being I this talked water that, seismic we the in disposal to plenty SRA, was term, higher that new point. field on John's can the have water so move that that. coming have talked

system the we'll keep and and to really frac down away from that disposed water just reuse and being it it having so our in continue And job. do move

to for our places. water the good manage given that continue can look to we'll infrastructure. in move extensive situation term, we're different place water that just opportunities longer foreseeable So to we a But future,

time. for And thanks Great update. your

from with next Wai Jeanine Our comes Barclays. question

Hi, good my Thanks morning everyone. taking questions. for

doing? Yes, how you’re Jeanine,

you. Thank good. doing am I

that First results? of efficiency? look just capital you sense. XXXX if any Parsley makes flow little that was Can either bit question better about deals you there then maybe and DoublePoint And maybe back doing will XXXX that that or through and a forward, a impacted how talk understand look the unexpected somewhat anything been has addressed

I anything there wasn't surprise there XXXX we was make were we operations. -- clearly, make around And areas ways budget say to tank back to us. things of mean, existing wasn't all Yes, our that talk -- synergies went take our about in anything these upgrade that take existing it standards. and would we say how those and I Jeanine, a it, that given areas, batteries, look really in it more on there for I'd as match was capital we advantage look to the we efficient their do -- facilities as

like of infrastructure. benefits is a advantage done water a like And having talked have lot All all, those the that. laterals, you how happy continuous they're seamlessly, hard tremendous and benefits really our have but a real take about And job things took year of of simulfrac, so in work, when we acreage those positions. XX,XXX-foot the alongside in that, just out ours. that the did the contiguous position things added of these it's how last do working company future to from turned all are acreage ability things of we we've teams see lot we're it into But integrating

Great. Okay.

portfolio. to question be seems is A&D The pretty the sticking to second days. these still Our active market

kind still divesting the the on cleanup out you're if And in asset always wondering beyond quality process bases that just has doing. general Pioneer of highest noncore one there. of side of So portfolio you're that, just acreage the of other

just see M&A, any the in given clearly out maybe And you transactions, don't Thank to thoughts so there do need on market. you your updated what but you.

and at Yes. Thanks, we're do Jeanine. large-scale plan that strongest material anything Obviously, and after these not last we two do return transactions, we M&A, think looking look. really have not this to continue It's we'll will we the will stock. an get continue -- to to smaller assets, our divest we regard right price. In to process. to to realize is We upgrading repurchase can continue no and a on need buy. point to We'll of transactions, smaller

Tier divest divest at we'll So we'll continue We'll buy and prices, some. X buy some. some, to and good

In X DrillCo opportunities addition, we'll on with continue assets. Tier our

Thank you. That’s helpful. very

Leggate America. Our of with Bank Doug comes next question from

one I'm everyone. higher your stock its you a when oil price not Thanks. big a prices. at only hereof, sure that Scott, Good observe growing to rate morning the I'm high all-time a is were much and

the working, however, and is the cash on I free don't guess, you on which, is question So to behind rate. decline on production, focusing question, you're that you what's I'm see as a flow. how not curious just you if congratulate growing flush presumably, much want is that my My have strategy evolving? quickly, breakeven. I as And lower means

business over So sustaining how capital/breakeven that you see time? base on the do evolving

up decline rate only we'll our comes definitely X% it bring equivalent I rate, as low quickly our since to hope to time price will up And to base that breakeven to regard dividend term. said, We equivalent decline we're to growing our down to -- X% The in long the $XX in Yes. secondly, over WTI range, down. come a fairly XXs.

drive to inflation to oil breakeven efficiency long help we're in -- gains got price capital market on believe deal And will we what with and of that price what down. type in. depending regard that's term, So then will that and help you

stayed a good couple it XX now, years So at now of Doug. for

So.

Okay.

capital X, level? you on So is you lower Is can think I level it the Or that is? that press what sustaining just X, X than that?

a, long market. a decent lower in be that oil to It's price term it, call going than

So on to it's it it's of X, whether longer our be our going extra guidance that some X, term, things spend that it's that so X, we're than But spending things or term breakeven, EOR long in we're down whether ESG lower capital. capital, whether the should not XXXX. average the some there's water there's drive

afraid, Okay. you a taxes. housekeeping My on follow-up, I'm question Thank that. is for cash

the when as the update NOL in an cash right us position now, you where a full given Just strip position? would to tax you to is just expect and can give be

Doug, no it's problem Neal. at Yes, all.

we've at those cash XXXX. in we with as So the $X flow strip, utilize anticipate We the would NOLs probably high of about at current we progress NOLs year-end would XXXX. that got the free We'll related generation be of end through towards acquisition in be billion $XXX to subject to got cash half million roughly some the of balance. then the taxes about some will the back limitation. $XXX to Parsley we've year, probably That's that million the that of year, majority

a around start tax So probably fullness becoming probably XXXX in of we'd about parent $X billion. cash

Thanks, helpful. Appreciated. really Neal. That’s

[Operator Securities. Instructions] Our question next Dingmann Truist comes Neal from with

inventory on to was market your potential Delaware talk First for is mean that credit you sales? on My I A&D, giving thoughts question, predicated had the a just Scott, about given thoughts any sell maybe go on a maybe any any sale. about extended that anything? on nice the asked but you've you there just not have? noncore little Or a of pristine kind been balance bit sheet different, forward, is question is,

the and And Yes. you when -- a we're price. Obviously, the Basin much returns, get the to of the going we our look got return a than the Midland margin part in better great Delaware. always at

So drilling. the zones we zone, in primary were have the primarily in that of It's Delaware. Basin, one where we're we only the southern part Midland X

divesting was the asset with commented competing regard continue And interest so to we'll the Midland on owners -- of In that Basin our and it great divestitures acreage, that term. already time, was in I we'll returns. we'll with price. to same long that continue working to The time, some. acquisitions, practice some our be or X, At Tier our over a buying we're upgrade future not regard basically

sheet. the balance Sure. Certainly makes follow on sense. Then up I just

sheet, certainly have balance a generating. cash a of pristine lot You you're flow

maybe on still billion -- there of wondering So is and side. how to just want quickly Or the that $X given pay just down more what this continuing plans to any -- converts? debt fund I'm the your I plans

million lay the probably debt earlier related that press towards the release the now, a to we of out retiring we're the $XXX that, comes to be it $XXX that's as You in will $XXX retire an upcoming here it put year, land. the third and sits we've as than quarter. due. Other going much shortly. maturity from million saw got pretty the million That But

Thanks. good. Very

Paul question comes with Scotiabank. Cheng next from Our

Hi, you. Thank please. questions, good morning. Two

you when -- we that, at will looking First close there. zero we're argue that be net one much indeed to debt pretty you're pretty

shareholder. to we that at -- free don't I the reason expect any end be returned the think will of close cash XXX% there of the flow release, In is to you over will So your say the any much XX%. pretty should the be we flow cash is several free XXX% you there assume of presentation, next years returned? not reason the why more that But than press

Neal. it's Paul,

exemplified in as And to and to XXX% low right. have You're and I reducing we're us we really debt is a many and purpose financial similar times, cash free of and that's mean voiced go having benefits Rich of and flow. having articulate and again, net think the provide I balance sheet debt flexibility. Jeanine operational of one to the willing question gross that Scott that we early of I XQ,

in saw in in XQ, base, the you quarter, the we was XXX% free repurchased add if and the $XXX million the of that you flow. variable think cash that that I

there to be shy. as related So that. demonstrated quarterly be we've I over market. opportunistic. will But we said, But as there opportunity a in. an I opportunistic the think We buyback, XQ. think and cadence an given we won't an opportunity, with -- during above We'll regular Scott that, And that step in be there's the will buyback again, a associated pullback or

in at provided again. were shy flow cash if be step to and in opportunity won't free XQ, we that XXX% of we So

Actually, my Neal. second to question, that leads

think fourth are guys I Scott you quarter. going the is And to the you market that in million. $XXX quarter, buyback the in be saying On did every

and determined you going much buy some us level? gave that you criteria how back you're about what to to determine So that that that guys think how

We're target not the do just amount. and going that about. exact to exact People give out the don't

a still be each stay So just significant It quarter. tuned. will amount

So.

Yes. with cadence quarterly a Paul. be it, associated There'll

-- that see opportunistic cadence. going be to over quarterly also You'll quarterly be again, that we're cadence. above But and

what Can us quarter that about cadence? you tell

the -- in you the Paul, I $X think got to point, saw Scott's to the we've authorization billion. increase

opportunities going that won't those again, there's a would we substantial similar then themselves. tuned be to quarterly we be say, what and repurchases So Again, look opportunistic for XQ, present cadence, as more to saw to stay in shy. I that

a I I But XQ, think market, don't step you hesitancy opportunity. So that see on you because the want part quarterly to again in that sense demonstrated as we our any we'll provide and will well. into cadence

So just stay tune patience. Appreciate there, your Paul.

And to conference this Scott that closing does back session. to like the I'd or time, turn question-and-answer Sheffield conclude remarks. At for additional

looking to open everyone. looks to forward we to We're everything thank want like road. all getting is up on Again, starting the states. It in the

out, So like. hopefully, and next conferences fairly the we March can of we'll over Again, lot energy several weeks the on months. in aggressively road these all be meet and a looks thank Starting person you. in

for And thank that your participation. conference. you conclude does today's We

disconnect. may You now