Contango Oil & Gas (MCF) 10 May 192019 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Contango Oil & Gas First Quarter Results Call. At this time, all lines are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions].

As a reminder, today's conference is being recorded. turn over to Wilkie like now the to conference Colyer. I'd ahead. go Please

you. Thank

appropriate may as based want Before Exchange concerning the strategic Such release morning press we Commission, operations. related for future plans, assumptions forward-looking to this everybody we under comments begin, believe Contango's I which remind may that the and Securities by to defined the circumstances. the on include earnings be discussion expectations are contain and objectives statements assumptions statements and and

had are those of My Good call. including through first earnings that this However, and in should are I'm President statements and cautionary future apply CEO Contango's performance just earnings on of context. statements and to estimates, be name not is has to press or yesterday's time non-GAAP release, Contango. call. morning, that therefore, forward-looking to XXXX everyone regarding guarantees information I statements and measures Wilkie welcome results Colyer, the and, read hope quarter considered

again, press matter to big with release what's to progress our update, and in weeks our which ours, a A of align I know, you of around as been controlling the is at G&A last ago. on around our only color repeat focus move will has better So company the since not costs base. asset

during call, second the the expenses. so be marks starting the of with lease, the quarter. a quarter savings April will first flowback month the Subsequent XX% new that had end and last during We we recurring time our on reflected expectations progress were in forward first cash TD-ed drilling, our for our saw shares well operations completion Around results cost lateral, our we well Northeast Our during G&A met pretty the of front under with Bullseye drilling we XH. those to decrease position. in office we first QX. our in by of to excited oil Snake the XX,XXX-foot that begun the and have Iron our the quarter, look just

expected to continued our currently three and to Northeast portfolio. will is be Our and offset rig we very to release. the to two then from our has Hornet moved down this operators The be precision American legacy to rig before drill head more back near Northeast XH. Bullseye The Bullseye Bullseye wells valuable results to rig expect area will have addition impressive, drilling

priority portfolio add Last done said at We management continue for as the tool. we the a a and hedges quarter, to we've XXXX, to to look would make risk since hedging company we that.

We are XXXX XXXX. close and hedged both extent to maximum for and now the allowable

return asymmetrical our Mid-Cush hedged delayed. for is an case at our measure exposure from but in you to next should protect capacity crystal $X.XX. in as something ball the a differentials, a with to we profile us represent out base's Additionally, Hedging seeing the respect We base's year the hedges future precautionary pipe West have of in don't have risk basin downside. Texas is continue

laid we the several over great risk out in of We are costs, allocation last and initiatives controlling making management. progress on quarters intelligent the capital

your continues and interest questions. for ready your line will that to offense ownership play and value benefit of the energy to period time Thanks for ways dislocation in We all look continue operator, insider this incentive This markets. for its stock, in right in to of also during for the company the structure for open enjoy which up creates Contango. to I'm With that, today of the shareholders. to increase large

Instructions]. [Operator Okay.

Johnson line the from first Ron Our with of Rice. question will Mills come

question. One Wilkie. morning, Good quick

but refinancing a borrowing going with kind of availability expand the a it so facility? the that just little -- bit you sounds what's it, your to have liquidity, like and that Or under on fact review? the borrowing relates base under talks on currently million of you with the it of issue -- As base can is or $XX this

Yes.

scheduled of that alluded of that but getting QX got terms going very redetermination, -- we've thus in But no or our in We year, facility still are normally and process, our kind of on it's as We're report information far. is high refinanced. something thing that to, matures undergoing through so we as you've currently regularly this that do. in list priorities the

and process other in table? credit similar -- thought the facility Or BL-type terms -- options everything any are the is with the And on lien? is of second

think, on profile risk structure I allocation It just cap of mean that plans ends up how capital be depends I everything anything terms the of your the table. looking. should and Yes. on in

is drilling a And when is start that I'm concrete of and the once XXXX, that gets up, then will together forward, I I and then latter but the know XXXX? from plans point you'll your those that standpoint obligations is once cleared a -- debt what year situation for guess assuming resolved. part are formulate come in plan to from that don't this more

Yes, a Ron. That's good question.

that which little are in So obviously lease wells is drilling Bullseye. Northeast we've this of got away. obligation a ways year, bit these XXXX we're wells

you at are zero. budgeting wells obligation It's very, -- But XXXX. our on of way Northeast that we But We one. have believe little have may XXXX. on for least made lease There the we in for no schedule I wells. very tell Bullseye, be haven't that any in I obligation lease decisions will it's

gives of flexibility just our a lot that us of where at terms in looking capital. spend So to

will lot about flexibility XXXX, say to early there. of we've say that too a got again, definitive I but So anything

queue. have we in questions further no And

of guys I But everybody our take want I up Well, it. didn't their results. to with hope time, I Great. much too QX catching for again and after forward -- look to thank and you

morning. So thanks, great again. Have a

ladies to thank conclude want conference. you And gentlemen, participation. today's for that does and I your

disconnect. You may now