Pioneer Natural Resources (PXD) 5 May 222022 Q1 Earnings call transcript

Welcome to the Pioneer Natural Resources First Quarter Earnings 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 presentation slides to supplement comments made today. These slides can be accessed on the Internet at www.pxd.com. Again, the Internet website to access slides presented in today's call is www.pxd.com. tab then the select Investors web of the and page Investor to found top at the Navigate Presentations. Today's call is being recorded. the XXXX. of through replay call archived be A on May XX, will www.pxd.com, statements The today harbor of XXXX. Private company's the of to Litigation Act will forward-looking provisions Reform comments Securities the made include safe pursuant from and prospects future cause may actual in the the These are to that statements business and a uncertainties subject to forward-looking differ materially periods Pioneer of number statements. of risks results are uncertainties X presentation in with and These Pioneer's Page Pioneer's Commission. in made risks release on Exchange described of news filings and the and the slide Securities public At this Senior would Pioneer's Vice to time, President and turn Officer, I like the Chief call Shah. to opening for over Financial remarks, Neal ahead. Please go

morning, us investment everyone, for excellent call. Good quarter earnings first you thank the for our framework. underscore we which first power Jake. will discussing joining Today, and of quarter you, be our Pioneer's Thank results,

strategy our world the We with highlight the intensity will and creating that affordable, providing we oil and value reliable also low leading shareholders simultaneously gas. are emissions of for while and return capital

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

morning. Good Neal. you, Thank

of with in more Ukraine time, in to that a Ukraine. those relief million in want and unprovoked which results path invasion. to impacting is $XX direct Pioneer could we Russia's of of recognize the help most to quarter, committed humanitarian result during peace of Before terrible people, situation We to discuss period people extended millions We've will an of innocent take safety suffer. the Ukraine freedom acknowledge the I that need. stands the the which is organizations

emissions X. delivered providing a Pioneer's Shifting stand decades quarter, barrel on focus of Slide that for per I'll to for quarterly we needed a the lowest significant come. produced Pioneer one with During this first source resolute of can and generating results. so shareholders. value knowing the begin time, do world we affordable energy our much strong are to our

peer-leading stock This last margins, on generation annualized from drove unhedged quarter's which reflects top-tier the capital return yield, $X.X our today's share represents returning first Our $X calculated of dividend. is annualized flow billion, oil to high-quality quarter free stockholders cash returning price dividend. it's a translates through significant variable per This are Pioneer the XX% to position XX. April That billion we assets, to framework our plus second dividend $X.XX of yield. shareholders. Based of about more of increase on than during stock a dividend the XX% base based which XX% XX% price, quarter

dividends, the million When strong quarter. payout, yield. delivered quarter total of share you Pioneer return in repurchases the we quarter and addition dividend In second annualize XX% stock a first repurchased first the to $XXX

Our is than robust on return by capital strong cash employed greater free We our XXXX be flow underpinned XX%. forecast corporate to returns.

billion. $X.X the range of upper Going X. total free continued our to guidance execution the with Pioneer's in production significant flow cash during first half supporting Slide quarter, strong of generation

X.XX Additionally, top-tier to our at we year-end by that's EBITDA will further profile on forward approximately net forecast leverage strip. the strengthened be based debt

quarter and shareholder quarter which provides share to being opportunistic additional dividend. share cash cash returns. dividend plus to base Resulting program best-in-class. free variable our payout, This enhanced is XX% shareholders. is dividend, underpinned total Slide our the base return quality approximately is Pioneer's free and return return of strong flow peer-leading reflects XX% yield Going post second up represents is the X. of which annualize flow. by our to capital Again, when first repurchases, This cash dividend repurchases you growing approximately variable a base compelling by XX% returned

resulting cycle, Going payouts significant of impact to Slide taxes. dividend through commodity cash prices, in is resilient the when over X. of even Pioneer's capital including wide return range a framework

were for graph, $XX prices dividends oil have on $XXX, receive approximately upside on the we per if seen would oil as prices $XX the share. to $XX. X year, remainder As At approximately Shareholders in average XXXX hedges. Pioneer's higher significant of shareholders oil have the

$XXX beyond return $XX to of expect in The if to provides We durability high-quality flow prices dividends share, representing XX% remain depth this dividend free of oil cash or Pioneer's XXXX. excess a a inventory greater generation barrel. above compelling a

that cumulative $XX the is prices For to with next flow, in X% current and years. oil dropping strip current cash exceed forecasted prices, free X-year the $XX about at X from combination current example, growth, over over are strip Pioneer's billion price

dividend Slide to annualized X. previously resulted an XX%. approximately yield in outlined The Going significant of payouts dividend

that of As return exceeds the I stock S&P of price cash yield yield our the the of April on of XX. strength demonstrates was majors and peers, and power, Pioneer's capital underlying average mentioned, XXX. assets quality peer-leading generation top-tier the all This the strategy. This flow yield

to every case than XX% sector S&P is company compelling. Slide to share for Pioneer's in our owning by market, XXX the looking S&P XXX higher complementary yield, any XXX. Going at nearly oil repurchase dividend double-digit peer surpassed the broader dividend X% beyond Pioneer's individual again growth, Pioneer is the With and group our the stock When yield dividend S&P Xx. average X. far surpasses

This longest substantiates and X. oil the as of third-party peers. Pioneer inventory independent Slide high-quality to premier with Going company our gas data the

the Midland than quality inventories is slide, highest exclusively home Midland this has of world. As Delaware remaining the in some gathered Basin. where Represented from the Pioneer top-tier the in operates the on right, the acreage more Basin, Xx the Basin

core periods, inventory has long-term from XX, the our compared peers outperformed Midland the the over U.S. exceeding over Pioneer XX-year high-quality position the legacy of its XX expansive a XX-year within X-, longest Basin. major duration has XX%. the foundation to of ago, seen On the when peers, total on group and Pioneer's cap Slide with by Basin Midland outperformance. been nearly the founding Pioneer majors left, resulting the our returns position of contributor return As again, large since period company success. previous the years been peer has XX- and to has

deep development of performance turn now and experience over I'll Pioneer years Rich. for Our it come. to consistent outperform decades to positions to inventory,

$X dividends midpoints both Thanks, Consistent guidance free in $XX.X Scott, flow guidance where approximately cash This free same XXXX. strip forecasted announced represents in greater last start more levels and since on on an framework, can back billion increase Slide see free investment production than billion current cash full in growing flow we this everybody. to Based pricing, plan reiterating for update going results via of year morning, I'm a that February. XX, good to and for are production February. shareholders flow, with expect to of the than cash of capital cash are you with our less share than generate year operating XX% repurchases. this XXXX of we rate our in we with and of capital which over plan production flow reinvestment $X XX%, our our and billion at the modestly and of returning we

rigs the for level year. production and run of XXX simulfrac to remains XXX to average fleets. Our drilling XX the activity plan XX those X and between in activity new which fleets, wells during unchanged. placing This are on of results approximately We X frac roughly year

to As adding expected mitigate capital, frac experienced quarter that quarter latter second during increase quarter. we the be second week, highest year. the spend the first part disruption are quarter a during is temporarily sand which we capital fleet outlined we the last the will of to This our of

commodity of driven higher our drilling gains improved lower. work continued helping These contributing efficiency operational history our operational on prices. average XXXX. are increasing expect established the would the to Pioneer hard consistently these towards our per given we primarily Despite has and foot upper as driving diesel and full in outlook. completion lateral price persist, of the Thanks inflation cash budget the year the demonstrated capital billion, pressures to effects inflationary $X.X Slide improvement factor inflationary across length, billion capital efficiencies to pressures, dampen of track current steel to increases these the to cost our teams than flow offsets is XX. half a Assuming our continued more One our record migrate operating of $X.X of by strong of company,

lateral on that to over as add Looking gains feet our to we expect further expect we that than feet XX,XXX count are with place XX,XXX-foot XXXX. laterals XX,XXX-foot well to we program. approximately XX wells to future, increasing production with XXX the in more In XXXX, longer wells laterals

adding the per next per a consistently on this completed with widened of from see can and have day outperformed since further fleets our you fleet a doubled Additionally, third on the even day the nearly gap later feet right, completed simulfrac feet simulfrac The year. XXXX, basis. and have with we've we peers peers of XXXX, early we or has deployment X the in goal year graph

to Slide to Pioneer Turning best-in-class the have XX. cash margins. continues

You team the BOE can work production. per oil-weighted amongst which our maintained highest XXXX, price see left great peers the of marketing that value on realized our our Pioneer the chart demonstrates in and by the

significant chart, of XXXX, returns operations, peer-leading low efficient and translates maintained inexpensive corporate the demonstrated into corporate free costs flow high cash as the low rates. and strong This resulting best-in-class combination right Scott revenue in cash we QX additionally and by discussed combination highly Looking of results. borrowing to our the that overhead costs from generation, our margins,

Slide XX. Turning to

generate with depth highlighting though, that it's margins inventory and Pioneer's is a program capital of slide flow breakeven Most our decades extensive think best-in-class sustainable our BOE. for prior importantly, the nicely fits per low efficient free cash I given cost. peer-leading slide, combination this with the that

it So Neal. over to to going that, I'm with turn

Thank you, Rich.

the supports opportunistic corporate strong balance leverage strength rate. provides sheet, the profile. strong robust financial the on share This graph Maintaining financial peer-leading this dividend program. demonstrates flow The our combination returns margins, our peer-leading and sheet for our free the supplementing fortress-like discipline XX. cash balance Pioneer flexibility our of highlighting low cash Slide to Turning average right of coupon repurchases, and

this one operations strong exceeds the to believe valuation combination the I'll sectors. relative and ROCE to slides turn best-in-class projected believe When S&P market-leading and to to sectors deck. XXX, cash broader inventory, XXX, Scott. all of yet This looking discounted the Turning across Pioneer over of the compared ROCE We these key within favorite opportunity now other high-quality next investment discounted back when the trades various our efficient returns. a drivers our broader makes margins Pioneer's at S&P it page. compelling valuation We is a market. to my are in corporate

risk the including ones Slide strategies, Thank we you and Late you, updated climate on published reports, leading slide. sustainability which XX. XXXX ESG see our year, last our Neal. this outlined

to be rating continues has by Our which ESG established many focus the on third-party reflected a leader as in Pioneer industry, agencies.

the On risk sustainability working than we later emission of While on to our some Scope our best date Scope of we and the in will are of Slide reports intensity and more one this highlight climate year. that sector, initiatives X lowest many updated our are Pioneer maintaining X the that XX, is focused on peers. in

this X emissions significantly reduction in of X are seen and higher Scope than peers intensity graph, As our Pioneer. the targets

one intensity $XX of shareholders. commitment breakeven the charts supply industry. barrels while the maintenance with several this barrel representing Our goals, produced, is minimizing Pioneer oil one Again, barrel. in the emission is is the targets world price emission per Slide affordable long-term emissions of world, strongest lowest emissions On reduction with demonstrated through the in XX. combined the of XXXX favorite by to of low producing helping per energy some

resilient, fact XX for global We'll our Slide market and very, again, in now have remains to place very returning a time. for the we capital driving that shareholders. for expect it a Q&A. up to products production and Pioneer committed is Our the open summarizes our long value

Instructions]. [Operator

Wai Jeanine with begin will We with Barclays.

on inflation the of We want top because kind all mind. of of maybe obviously medium-term to is maybe on this. hit it's question implications First just

modest adding So year. your of activity X% -- a plan every requires that medium-term amount X% growth to X%

or to like is are et cetera, from just for It people overall so about your up And like and are current peers about supply, year E&Ps that start the tightness labor deals service that really think it contracting to just on implications sounds term either getting lot starting earlier XXXX? how differently talk 'XX, causing market, take longer. you sounds a to you latest how next can

Yes, you're think I exactly right. Jeanine,

are and a starting contracting like really, and at services I think us, such make to want the this are strategy that 'XX that past, looking our years in that we start out others, locked on -- is we look focus we've is in to not inflationary than those lot we for year -- just but sure services of at to it in aren't already about it, we We're got 'XX, our that's concerned maybe earlier that locked there. ample something supply. pressure but have given

most I seeing is on mentioned. the I of inflation think we're as really steel that diesel, and

we as X about it's also adding think think our to I X% year. rigs X X%, per to

the activity efficiency we add we focused getting really but at on thought So key it's it XXXX. gains, on our of to can that And changed a efficient have around modest process hopefully, amount just doing. That's we're minimize and X% think that what program, terms more for in work about things of we're we the with increases. as hasn't the 'XX growing by

are attractive returns, which cash Okay. for And Great. on maybe then clearly Pioneer. hitting very

being the just as or that now million. Is think this QX basis? that coincidence kind should a quarters a opportunistic. noticed level a on we at being -- X same minimum as QX that your buybacks consistent You level past quarterly We've they've that of the was as for and been $XXX framed about

on basis our quarterly strengthened. as Yes, a continue buy has to sheet Jeanine. We'll shares balance

objective to And stock count. reduce we of have sheet balance and a amount the is share significant the continuing the authorization opportunistically. Our long-term to repurchase

the will be that continued So strategy.

question, come Mehta from moving to next will Sachs. your with which Goldman Now Neil

start just perspective. Yes. and Great here dividend question quarter. distribution a wanted your Scott, macro this I to get with

exit to over a do much thrown or within million fit to constraint whether On that about barrels oil? wide you of range broadly X.X is that pumping, Permian bottlenecks in think been terms which exist, to gas going numbers the natural U.S. million production, a a of Permian there's be day. a growing. the around there X how is, of for range the day pressure out specifically, you barrels from Where And given that as it's

you months to now Yes, EIA just Neil, And in XXX,XXX. been several if published February, look production. interesting, we've data, I've always what what's and probably the now toward they and XXX,XXX January had of at flat

count, the So rig already know, U.S., we have several as some has and the And months the the Permian growth. moved rig count ago. you should up in seen production

what's to think constraints. inflation too think to fleet on tank now happening you I constraints, to of in think hit the firms some frac numbers. high so way going And many of put then tough production. are regard U.S. And too on labor top just it's constraints, be it I

So the makes it more even even numbers -- me there. price are oil bullish of out about that some

right. a 'XX. your on like in seems All Scott, love in And takeaway Great. it problem, then, tight could natural -- resolvable a little but perspective gas here the Permian. be get the It would situation

Pioneer do of how positioned you some fix So you How mitigate the see to here? those see do risks?

good a a briefing. there's always Brazil out Yes, -- puts Rusty good morning

adding, that each deals the it, towards to summarizes takeaways 'XX have And that vying X on For and that compression be pipelines There's are large then billion a the day situation. that -- quarter day fourth don't XXX the report. are vying a come today's think, help for are I will that million access third in people it all for X that 'XX. in will three early the there's to Bcf X.X of

pipelines. those really obviously one going will I'm so upgrades those participate, obviously, not in of of get to it's And concerned in also some and Pioneer soft. and X

it have I add every pipelines will years and X.X think then forward. So quickly, X, we'll going about fairly to more room be resolved

solved the fairly problem really will So concerned quickly. and get not

Freeman we'll with James. Now John Raymond from hear

you of view said much in into budget budget of locked to was me lot that's give your you guess, point, CapEx 'XX, for of at source about locked Can all of the your do of on the a for the exposed this a year, just question how 'XX. inflation? materials all for services. just same inflation. how then of a rest nature you of have going you sort of this the Just Rich, in question follow-up in. And I already you I versus locked 'XX, sort that and both sort as sense the cost Jeanine's on XX% know

now Yes, John, that we're and subject to 'XX a that of right all around in really steel, are and are still XX% smaller for probably to say items the much I'd were diesel, biggest locked inflation extent, sand. chemicals

XX% we're that So But have those other it face of are some be in to you still we to probably sand on incremental XX% we'll because the some on being at that inflation. and way kind the we're mostly on contracts assured that the of I'd items subject in key we're say the lot inflation, potential a such the but locked assured in where 'XX, drilling advance. supply, side for could When look ones supply we've supplies. locked

worried So got may Hopefully, be inflation it program, the helps. still not the for locked execution XXXX. locked about of of I'm we've that subject in out not that's but we or that -- to -- some

does. then mentioned which XXX will the this year. be next XX,XXX-foot And looking and That at you laterals, year XX

of of of your of assume if maybe to your sort kind extra-long total of next of inventory is large Can differently, you a closer us these idea Or activity percentage about just how reasonable it drilling I just be guess, X laterals? or give a year. kind out it's X an of applicable said would look percentage your sort of and XX% activity this to of to as years? much how I So kind year XX%

to extensions to basis our per efficiency reduction is we've in XX% it's of talked think out small drilling that got locations to or X,XXX working of there, costs important. identified and trades on and about -- acreage because that and land the add with acquisitions foot completion clearly just capital we've that Yes. a We've interest getting we're I hoping to continue incremental

be So in program. we're XXXX. the would XXX will going the in to I it to future go expect XXX

that, XX% it's program will be you X years those laterals longer said, of probably. to X foreseeable like in our next for So the to XX%

from will Now moving to that Meade our come Charles Johnson next and question, with Rice.

little you. this on no Basin, I of fleet big maybe to frac are able Midland to that doubt just up. Rich, guys your the as for that a to companies of you most could crews especially is I have wonder has the bit about no operators you the the It's that getting are. been spot the with us service one available, crew location. process come like you because there spot if a But question share picked you equipment was get messaging right what where spot are

So just insight market that the a the about and of how year. you wonder share -- some delivering kind I service carry is like what that of tight next how as if could was means what into might

sand availability be and to stuff I of sense in Charles, diesel why really such in companies other really the if that a Yes, easy they're chemicals, just is and and some one was lined tight, that have number benefits and Pioneer of have it about up. they companies it our we of still have supply security all of transparent basin operators diesel think that the was have relatively the that sand the of

really fleet really easy. to attract that choices. get of of us think I services it's It allowed when timing spot they we the Pioneer And case a of were and had ancillary go benefit relatively with along it that that so really there. was could the And multiple

defining we came we that really And And another thing that we there why the -- one chose a having it. get the but because one could a spot it drove so a one, could other that made it's the if versus quickest. was the get about fleet. ability of available basis really had the have needed But supplies, those to we really other on that spot couple ones was

question, and delevering That's what us convertible kind in share overall with you what ask. one posture the respect you that is Can to your the is plans the interesting guys have you those remind of if Can this notes buyback remind detail. out sits other what respect and there? in and to could And -- then are? us with of your where stack your context I

certain we Charles, this remainder the the that articulated the amount expectation XX% on about that the We're that cash. of and XX% in shares repurchase and Scott we we do opportunistically expectation as is earlier. convert use to in We've previously. out settle is percent dividend. similar cash paying is got our small that which Neal. The balance it a our a free we when strong. utilized placed flow sheet, I It's through and to engage mean generation of to spoke or

sit cash. So position with now, we'll a be in And as our intention. that's settle that we to

want Any that, do to or... time you frame Neal, on communicate

-- it No. is and to in back it I May XXXX. of not mean, until call we're XXXX, the matures ability even

I to it's the we'll as economic make. to in most what's and think view time those put it are our again, that cash. intention see what But closer to So decision options comes financial reiterating and out

Donnes with next Truist Bertrand the And question. has

an nuanced cash little be higher group. little high might market percent strategy yield hypothetically your Just the stock you flow? do you a Or of about to given it just that buybacks? is few is more payout appreciation? hypothetically, free yields you show output is as -- Can think of the -- to your push your dividend it keeping kind pushing an above just maybe get talk the can versus maybe of a intentional that a and bit group This than these it's it but

with S&P XXX, dividends, to the want people dividend the funds a gives an and up growth Yes. paying income the market it time we're goal spending of that like that lot going especially leg having really highest That environment. feels primary into we've targeting on a now us dividend, inflationary is retail attract been The our And sector. in both. is value and

retail more So very sector Pioneer. to more and retail. in I continue think attract that We small very, still we'll a have

focused So on that retail we're sector. on dividend funds. And we're focused

buy that's to but is. some the into funds where growth our sector We focus are also, getting

that of the then to your going they're update, Or shifting of And some you divestitures? gears. stepping get think to Maybe peers products buyers makes last stuff meet had willing still divestitures, some signaled maybe I sense. with guys at of potential have were as these put On stuff. noncore you of. sold? That large-scale from hold just to M&A get are that just you in on middle away a least the market, Is kind the rid

Yes, I'd that Tier say X-related still entertaining us we're what there people call small here to acreage coming and we are are that divestitures on acreage.

So you'll see in an continue option as the first quarter, that we well. had did, at some we DrillCos as look amount of we'll those to

planning So size. have accelerate modest of can we're divestitures that I Tier or that's the type still are that that each amount will think nothing they'll that but we right value acreage X a focus year really of now, on, nonstrategic happen

with we'll next Doug that will come take our Bank of now Leggate And question America. from

just more I talked Obviously, than Scott, if years. dramatically. which using calls, you're dramatically? XX shows about has in you changed of that. third-party to XX-year your I'm the prior this you've macro could think your has view data Pioneer inventory. I inventory changed realize How morning, sustainable speak having wondering And backdrop

No.

Doug, I we've advertised think goes year. We're over I a up. everybody's XX,XXX XXX locations. in drilling I a higher mean But price environment, inventory think

price XX over we've Also, deeper is. It looking It next we've XX using or greater than X going obviously, testing depends instead the all than oil could into years, said be years. all the be could we XX So of a is X at lot on are zones. it years. changed the of some greater what years, XX,XXX,

see you'll that. So do us

X we've We over have zones the last few years. another advertised

have we some so zones. and gas condensate And gas

you'll those So next of probably also. of over couple us years see test the some

change. hasn't been really there So a

more XX of instead away focused on from years. we're than emphasizing getting locations, greater Just

just the historically. maybe we've in where but in nevertheless, to sovereignty you commodity check out my wanted a kind for taxes. want performance, In of I ask but rounding I obviously, change the follow-up cash is this inflection been it's the Scott, of meaningful to presentation. environment, Rich about Okay. or of for Neal,

will just what of the your position, us have [indiscernible] guide? you would the update a thumb with with So a forward can that cash anticipate look of do spending, kind be give of curve an that of rule full today? steepness Pioneer in go-forward you When current like as we

taxes NOL through Yes, it's balance XXXX. balance We'll about that how at Doug, for we the XXXX. the $X approximately if billion about extent Neal. part quarter, cash is last utilize our think spoke most you NOL call of year-end

think taxes, when of I for the of being I $XXX spoke, the That's was I million of the about million cash full number oil to $XXX spoke for price last course, more year. $XXX million a lower year.

full So year. for the $XXX million

on you look we'll speak, tax if Now full our burden, for estimated taxes guidance at year quarter, our prepaying, cash this start so tax to burden.

fullness excuse prices, the that million. you So full and next in But here strip current quarter based it's we'll quarter. and be quarter it in the again paying quarter -- and year fourth me, on this if look at $XXX in fourth the

XXXX, prices, $X.X billion. in strip forward to you're Now let's the fast call at billion to it, more looking $X.X of, range

Deckelbaum Now with move Cowen. to David we'll

that confirm how that's term the wanted second that's full staying coming to the just added just I follow year? in up is long in, quarter, in the not frac and fleet

a No, and couple just of doing will be pads we're released. it then

already location on it's so and working. And

you the process? that ago. whether on And alleviate I for doubled my way -- sort times around have guess How lead of I just And you approaching things now you to in know from anything guess the months is XX of had the and procurement changing? you follow-up -- services, in planning at Scott, front and of I might appreciate looking kind planning that. -- or vertical planning or changing years which now, when it are XX guys being that the discussed growth, few a for tripled would side long-term integration be, are be some to Congress, contracting presented I of

frac I all. No. it comments Miller's that already large I it's are starting pay service type but obvious much with mean are H&P., spec can much with has based to X pricing, John Jeff I pretty fleets you're sign that mean, the even things And covered I you're rigs Lindsay used and comments pretty contracts. think The I new are used have think going do you Rich companies, to X-year mean up. at to good pretty going always higher up. builds, on much from the significantly

think shareholders, returning don't I of capital I this see happening. So world to that in just

oil don't has years X really, -- growth the next firms, of too production. it's EIA U.S. aggressive So some other over I think think that I the think tank for it's profile and the

that And to so regard 'XX the Rich to 'XX, cost. we're in regard has doing in already up some 'XX commented things of and locking on service

We'll Scott Instructions]. with RBC Capital to Markets. move now Hanold [Operator

One of that. is get things things. budget end And with year adding you clarify towards of sort is this of about that say of spending? a the part end this budget, and would one, it's of at all -- think with growth the tending the the a rigs the on to as just obviously, also -- of point, in top couple XXXX half 'XX X as Number couple X% range? conversation cap back growth in the you in for inflation, to prepare X% higher talked first about you earlier beyond. A on to XXXX the And the

it's do clarity, already for mean, just our to what and XXXX. are we're when capital building 'XX, for program we Yes, going I forecasting for

built So already range. into our that guidance original was

the need we And 'XX. for accomplished so of to what X% growth activity

out. into what already that's So we've really laid built

a think been But and over macro, on strategy important here the oil Scott, you more the little mid-cycle price is last the of course into that what then, terms Obviously, right oil the right again And like the opportunistic play what driver a of now months. now? bit it's obviously, of being on does view the your is little several should bit a it And we're do heightened. right from in longer-term how be? perspective Where buybacks? your Okay.

after fact Yes. in I you more. think to strip question. mean I know, $XX to lot years. big got down There's below WTI, drops be after the mean, On it's a sixty-four-dollar years. on X $XX the X I as that's

that, comfort is going move I up. strip think, to that

marching I forward. think instead it long just will term of

last negative weeks. $XXX of lot had mean, we -- So oil Chinese items X a over and still world we or around I the over we with lockdown the still had X inflation,

So Russian year from phase-in a -- next the of on the between over potential and we're seeing X now EU. and and end and ban months now the the crude to

tighter. things stock. and decide, going to to are And value go when intrinsic we back of to the various price higher. get I company opportunistically buy think going the have stacks to it's still So the obviously obviously, at

So sheet to have the balance it. and firepower we do the

Right.

When oil, including the you've kind of pullbacks bullish though I back, you've through periods? that so the I guess, of this at that that going you're yourselves, with buying to or to the obviously, And continue in would all you're I E&P opportunity. these seen mean, guess, moves wait certainly, to seen even equities, some for, point, you bind

we're have already our disbursing our -- dividend. all We to is framework the realize back XX% of toward

of flow the our going dividend. is it's XX% to So cash

And so we're stabilize for looking won't people that dividends.

the of value back get to X company over half you're the mean over I years, of market the cap dividends. its So going

you at say, I've back whatever got at benefit so look buying And that's in for time, you least it's next can of big the least that back want not something whenever And do is to. and half versus you dividends my in the a price stock back downturn which long stock. got dividends

of return that. appreciate Part to total I Right. the shareholders.

Bob take with Research. Bernstein we'll question from the now Brackett And

case longer argument, their OpEx, margins pure-play yield their had compelling yet bid better up the inventory, around lower say bid peers, peers empty higher or terms a significantly Texas, It's share to down question position dividend lower have almost levels. have of in yield. your prices geopolitical made I bit a to than half a is you've a around which half full pretty of dividend cup

if what to So guys are cash return not it consider on? credit for you're the being valued that And you would begs question, path the lead strategies. you down full dividends, getting other

the You Bob, we that dividend. realize, paid got to unhedged announced first just

-- last And barely we quarter. quarters. so It's up. it's paid creeped X was It X%

yield. to continuing got we're at until me think we So making XX%, -- got not not I to now. it's to XX% -- is made June. -- fact, so It's X be in going history. just It's the -- be got the we're now be payment to to ask got first be XX%, to establish question from But trading you'll If at in that quarters you XX% should see continue.

to So let's if that we're continue where trade get at several payments yield on and quarters see XX% in yield of we XX% basis. a to

Looking at why as at just majors, to as a X% a company X% better XX%, at X% anybody buying inventory, be should year long oil ROCE. there's major no reason We're a Pioneer versus buying yield XX% at yield. growing

got time We X we the on have -- out got those just to road X so first to all sector. the reach that to in dividend to just retail weeks. we last to for And out funds. the out reach And

and give me where XX months, ends about So see we'll up. it

think I time. you'll with yes, Yes. I prove logic with agree correct your and

I think that's good answer. a

Thanks.

that's we turn to for gentlemen, and questions I'll have or for ladies today. time Scott the any the additional back call remarks. over all And closing

everybody's everybody the the and safe. you, out stay to quarter Again, look thanks. seeing appreciate thank on Again, Q&A forward next and road. We and everybody,

gentlemen, your today. With do may thank you will participation, conclude now you disconnect. this for for and that, and We ladies your conference