Qep Resources (QEP) 28 Oct 172017 Q3 Earnings call transcript

Greetings, and welcome to the QEP Resources Third Quarter 2017 Earnings Conference Call. At this time all participants are in a listen only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. William Kent, Director of Investor Relations. you. Thank

begin. may You

President and and the everyone. XXXX QEP me and and our Stanley, call. Donna Doleshek, of Officer; joining Vice Head Torgerson, Executive results you Executive us With President Chairman, Chuck are for Resources Financial today business. Chief good you, Executive Thank Richard Officer; morning, Chief for conference and Jim Thank E&P third President quarter Vice

our qepres.com, done with not go already, release, to of obtain tables so of with a maps along website, you’re If and materials. to our copies other please earnings presentation results, contains which supporting our financial slide

reconciled For today’s the earnings net and is in which adjusted income SEC conference EBITDA, release EBITDA filings. call, is we’ll our earnings non-GAAP SEC to measure to and as a in referred release use It filings.

In making addition, control. our of that beyond which We our materially remind statements are results statements. reasons, for everyone forward-looking from could a variety differ of forward-looking we’ll actual numerous many be our

If in over you these our turn I’d call view facing to forward-looking robust Richard. and factors risk discussion more business, disclaimer like our and earnings filings. statement With of release the SEC that, ever to our want to

everyone. morning, you, and Will, Thank good

was XX% XXX,XXX production million are XX,XXX guidance barrels, up up lease to XXX,XXX the second is million barrels XX% down Bcf, quarter which per total from was and from which On was higher about million second down which about third second level XXXX. result compared up inflow resulting quarter. in is of in normal barrels we X third NGL we were and quarter, a second from the barrels. than of we that per the million, quarter. up per X.X per quarter third lower operating was year and in almost quarter weather inflow BOE, quarter this which was problems and X.X charged higher the weighted XX% $XX.XX up $X.XX Energy’s Transportation expenses for quarter equivalent XX, of the were of lower barrels, transportation Permian of XX.X realized $X.XX BOE, were primarily in volumes up to equivalent production to declines $XX.XX second Bcf million $XXX.X part quarter to volumes levels. midpoint XX% per $X.XX and from oil BOE which up per Basin gas The than due Derivative operating us quarter. our in last were $X.XX $X.XX refrac price from includes issues. up expenses. the is second delays the in field year. Bcf, the to barrels, quarter, oil which from of Williston quarter realized last about in quarter equivalent million there the averages oil quarter X.X $X.XX by million recovering Natural updated repair volumes the about in third quarter. the changes level With due XX.X the XX.XX the the per than Haynesville $X.X quarter. which we from from no natural NGL second XX% prices prices from down quarter, Bcf gain per an production crude last second And and XX% production field-level barrels, midpoint by for third Pinedale the in quarter of barrel. year. that in impacted in sale number I’ll as We statements end second the third $X.XX as million realized the adjusted quarter continue a lease and basis, quarter front. are of that third of generated of second higher $X.XX were average of BOE oil per on activity were million subsequent capacity. quarter barrels, million $XXX from revenues, of quarter, minor is of higher than for XXXX. Basin settlement the a per of BOE BOE $X.XX other the EBITDA BOE BOE In in barrel, a in our acquisition $XX.XX on and second million price, on Boes the transportation quarter well in relatively gain $XXX the of an closed Permian the per-unit price million than BOE, XXX,XXX X.X equivalent, to the and The commodity unutilized is of Pinedale and of to the field-level the acreage per in realized derivatives, of gas volumes million of items compared the $XX.XX on our expenses of of XX% about barrels basin In settlements work-over Field-level the X% bit. on a an it third were we oil the in A&D our the adjusted quarter, to XXXX. of Robertson reported the The during XXXX, touch the line which and BOE gas field A&D operator Production financial that barrels is to the $XXX be the and the production quarter EBITDA active third fees central issued the equivalent platform. the the down Combined from second QEP of from from was the sale revenues oil closed And quarter quarter down the second volumes Mcf. per quarter, were X.X Bcf were and that gathering million is or XX.X for regards $X.X third crude $XXX second production we XXXX, quarter midpoint Ranch third the up outside reflects are we per is we $X.XX NGL asset Oil were to the prices of sales quarter second was guidance account the net XX.X oil expense as $XXX for September for year. from year. in XXX.X a caused

result Our $XX.X is guidance legal the lease $XX quarter, G&A operating expenses from and as were lost transportation increased stock XXXX million million expenses for compensation, for quarter expenses. unchanged. the of contingency second in up and

XXXX loss also to a the million income to Net third compared quarter, related from net Pinedale In quarter. the a the $X.X the at higher the of the the is unchanged. on loss of gas $XXX million, of gain June at was conjunction reflecting quarter net for was $XXX sale portfolio asset third derivatives second to quarter, a with commodity a reported for divestiture. $XX million $XX third end loss million we our to we derivatives portfolio, prices of the the X/XX, million guidance for sales net on primarily for At unrealized reported XXth. natural the Our compared forward expenses curves oil of the net liability of asset G&A and contributing

quarter not million the DD&A record held for it the down $XX.X second In did addition, as Pinedale we DD&A for quarter during expense for was because sale. was expense

were an under in expenditures conjunction CapEx basin $XX.X quarter. was Basin and million, about exploration Haynesville the the for about the assets, from $XX incurred the Capital of Williston with million from in $XXX of quarter. was million. CapEx accrual and decision impairment Platform $XX $XX sell which of about infrastructure, our million from for the Central $XX.X $XXX.X $XX.X for activities Finally, to million, million we basis in included increase midstream million E&P quarter the second CapEx third Permian million the for expenses the expenses was Basin

we million acquisition. deposit the which quarter, acquisitions Robertson addition, for the reported the In Ranch million $XX.X of $XX.X includes for

$XXX total acquisition the this at over senior Ranch We shareholder sale, billion were unchanged. $X.X is used of held We Pinedale had for Our $XXX total hand cash, intermediary. a XXXX the assets $XX the CapEx now to million Chuck. to for have remain $XXX the And sheet, our billion, close $XX.X in call $X.X all regard from guidance of also approximately billion our of end turn were qualified $X.XX currently Robertson approximately equity in to was is week. the but about and the proceeds million balance QI. debt I’ll which cash million million of notes. on of quarter, cash in and With about million

added some and spend minutes already detail morning, discussed Good operations. the I’ll next our Since financial results. our operational several providing everyone. has quarter on Richard third

we XXXX can for XXXX forecast our Q&A. outlook of for then move Our to on and the remainder and

as as Six drilling oil front, On the the one the as Williston during many wells some on mid-September, in Haynesville nine had quarter. Pinedale operations asset. quarter, Basin, rigs our one in our drilling Permian and and of the third of assets one rigs in portion during our Basin, gas we on

And per in addition, had refrac drilling net a record active XX% Williston properties. XX,XXX and equivalent Haynesville an we In program, in Permian we active production oil water had barrels liquids. that’s also averaged running volumes our disposal our rig both Basin the wells. a Permian, of day,

We year-ago. during last in were end, up XX% completed of of had wells quarter, new wells these third sales third cleaning from rate. all the terms and XX% hit up and the not quarter the peak During quarter XX at quarter from and still

basin quarter. in an of of phases a -- an County on equivalent. IP XX barrels And in X,XXX Mustang turned average but the County X,XXX IP the third to As still XX of barrels lateral we the feet. flowback average and XXX oil XX the Line at equivalent the per of wells XX Early with quarter, our assets the Midland we’re rate quarter, early reminder, day achieved wells average on of during end we’re Line peak oil on of an that second not completed on length sales X were Springs. XX-hour

the that had completed our Mustang formations first tank press wells, all barrels important well them even so Springs after addition September offset described second in that per as won’t Spraberry of the development during operating of those that of has an shift put wells per our IP putting late wells in these equivalent downtime of caused where of not an Spring average lift XX been note that month from Mustang sequence this an peak some the tank It’s lateral in we XX comparable initially, XX at lift completion oil to release, operators to I X,XXX day, artificial design, It’s to that or wells we’ve the a these point equivalent so achieved by a an artificial flowing oil Springs, XXX of performance we��ve the X initial installed been the have barrels being a well wells been Mustang early been to note from of shale of in cleanup. because unscheduled X also day into drilled average early drilling the our changing online drilled we impacted online. which the also or where ourselves of have be important performance has production. with to make average day single length until IP X,XXX quarter feet. While and

presentation multi-well plus illustrates investor And and our results some quarter, greater stimulated interesting complexity Midland additional the on our see think that of we had fracture end on our rock development. microseismic asset approach had X diagram At X tank-style that a completions. can wells and tank-style we volume waiting X frac details You increased indicate also, for completion. on in of and crews rigs basin active our the very XX we Slides to X

We a the end water at wells drilling also disposal rig quarter. had of the

our If you see XX for details. Slide presentation investor in more

X barrels meet our to from second than quarter, X% project additional well determined the equivalent shale. drill XX,XXX rather elected play That last to liquids that’s year ago. for Central a the wells averaged quarter, Fort was continue evaluating to sales oil And and results. a of as XX% the to during report the only to from the exploratory per equivalent targeting peak Williston We’ve time gross IP Antelope black production quarter on and barrels the lease of well net results hold oil alive. of achieved X,XXX-foot barrels XX% X,XXX and turned South day return on completed the of oil we result, period exit did expectations from operated the X exploratory a a In the and equivalent a day and X during X wells, rate wells We day. sufficient Basin South from Turning IP of to XX keep X,XXX to that down Berthold. of a oil peak Woodford per X per the Antelope our Platform Basin, on lateral. Of project, not XX-hour after production from

had of of X,XXX end early in the of an average stages had lateral peak X,XXX barrels Middle two we South average wells were three Middle of feet. at in equivalent the an with still the addition, XX five day and In length quarter, the wells per Antelope Bakken the The in cleanup second three Bakken Three Forks. of oil that IP

little day XX lateral a X,XXX feet quarter. XXX from per IP peak the during of achieved equivalent the wells Forks Three two oil of of a barrels over length the third While

to what completed them completed, one turned in the stimulated they Forks. pounds little they Middle Berthold. four stages, on the a four a proppant concentration refractured would first wells completion wells lateral of all were the sliding and Additionally, of to XXX to Gen-X sales Bakken four of well sleeve completions a three And and All the Fort refractured of call we we XX and Three those average per were that’s was bench type originally XX and were were in an foot. over had originally

per-day the inside XX per successful existing and pounds a X,XXX we an four proppant to uplift of the the rig restimulating on refrac XX% well, over foot. sliding we levels. casing one of oil The refractured in to XXX the Williston, Haynesville, At we the per as cemented four production casing pre-refrac of Antelope. on the and about from were the these concentration active sleeve had them of equivalent do waiting one a did Just plug over with lateral per traditional per barrels XX-day XXX that’s day barrels on about Then average completion wells well. restimulation a averaging of XX ran Prior wells, well perf string string. equivalent and peak the of we South our oil end approximately were the program average oil, quarter, stages in

that Antelope or We that being for for also includes refracturing Fort South four five had undergoing on prepared wells and nine were and Berthold.

the We the total wells rig. drilling first the of a since XX we on details this XX in from Slides began by the a rates. that’s In during the October of we You XX% success prefrac incremental nine our day sales Presentation our results last new Haynesville time Haynesville/Cotton third of can we’ve XX.X complete refrac equivalent the our our primarily September, refrac $XXX.X day XXXX, to from the on the per XX% drilling production production and refrac million feet during up cubic see per XXXX. gas second cubic XXX from gross program, more Williston and Valley, gas asset. Investor strong commenced plan year. year the third day equivalent through feet quarter Since that into refractured for quarter, increased for based In averaged refrac gas of that feet million XX was and by been Driven we and our program to returned well from and wellbores net Haynesville per quarter all the rig million cubic ago. of production without over the averaged over quarter moved of of a for nearly program, during

We rig complete new program of already plan lateral the drills. June the the to back that intermediate a had laterals. point continue schedule The this utilize the in XXXX. series first activity that frac these of was drilled to our between first refrac casing to a moved roughly finished crew the well on planned to to well, time in XX,XXX-foot the we of X,XXX-foot Once been in we

closing and of our early for announcing On XX, along our see for issued October guidance can remainder this for September the XX more Pinedale release the XX in You Slides presentation plans at of year we XXXX. and with a our details. updated divestiture look

For changes repeat so and million barrels again in of Permian our I during original to from million questions annual an Basin lower behind detailed assets. these answer XX.X drivers from release may revised Williston XXXX, range driven to Q&A. volumes a range We XX review won’t XX of we production volumes by to them forecasted XX of oil I’m oil but a any you happy both our million, have to forecasted the September gave

XXXX We while likely still next final it some year XXXX outlook directional to where in our our give next approval to Board thought headed early gas budget a our oil give to until won’t to capital work $XX are sense plans a in and also world. update and our release since we’re year. We an the provided $X September a in progress, on is for important

closely Our number on all margins be our drive and results CapEx invested our particularly assets, will in the while execution, while managing flow, on outspend Permian in capital. down BOE production per oil growth returns those forecasted more mid-teens from improving one match cash to delivering focus XXXX of to

had Mmbtu. approximately of XX, barrels at of barrel. price XX.X $X.XX average are $XX.XX XXX have oil production is an note of we XXXX, per million Our to a goal approximately swapped the that achieve that swaps growth. delivering which also million have with It’s And Mmbtus, we to assuming $XX still before and also XXXX, do while oil oil in October place we derivative in of flow covered believe free we generation crude portfolio can per important gas $X we cash end as mid-teens strong

making to the assets, fronts of evaluate year. assets continue both summary, we Haynesville. balance additional and and early-stage the tank-style development bolster gas liquidity further our oil on and cash successful in on add Permian midstream divestiture and our to next numerous portfolio Basin Finally, including to the refrac non-core programs to progress we’re from our Basin In assets across our Williston sheet

investment growing into current cash Basin on managing still year, to closely our mid-teens drilling and to flow lines leveraging Permian focused our continue new Permian base to our for we by expertise production in next our portfolio. development growth completion on down and more while we growth We’re driven can the from Robertson and our while open Ranch on as oil properties our match our oil focused We profitable XXXX pad-based core production oil assets that, asset remain into volumes capital Donna, acquisition beyond. With drive delivering execute questions. program cost integrate crude delivering

[Operator from Gabe question coming JP Morgan. ahead. of Our go first Instructions] Daoud is Please

and Maybe $XX? made kind next growth, you you mid-teens with $X, outspend comments the or on just slope under that envision $XX year oil starting do the today on scenario XXXX, what for based of based

to around to we’re outspend million trying minus manage $XXX EBITDA our So CapEx.

EBITDA Got actually million. around it. $XXX a minus to that’s So CapEx

in South And or the reservation could just whether to on acreage bit could the Okay. Williston, Antelope? program the apply maybe this a more not then you you refrac about just talk little and

Great question.

four of initial In by on encouraged which three stimulated first per quite focus GEN-X those we encouraged mentioned, over our the this and from wells a very the lateral levels roughly wells in four of -- we’re wells, production saw performance going on that. increase XXX refrac year is the proppant. after completions, by with the been first as foot Fort did six I fold were pounds Reservation, the Berthold we four We’re

completions. Antelope out on beginning also South are Those targeting drilling We’re our GEN-X first currently refracs wells. flowback and five

over well barrels performance, couple at per of of been We two with days, X,XXX have but grand strong. pretty days of it one production oil total equivalent a of looks It’s it’s day. a IP-ed on

do the four another year South so wells, four plan end right performance we’re but So Berthold to in Antelope online. of South to we’ve early in get the mentioned as the other Antelope excited my how let’s We about on five see stay before quite that and obviously, we got plan tuned. remarks, I the prepared done and over in Fort progress now reservation look get

bit? work? follow-up The just one in I with that explain more guess, now tank-style all I Is moving just then all instead Permian. them bucket, of -- two and together? Spraberrys guess the one to gone that maybe could a you’ve just first, so from I’ll to buckets you completing completions, little all complete Is to it’s how Wolfcamps the effectively that once the going

the great That’s summary. Gabe. on side, turned a its simple simply tank We’ve

travel four two in we in the So horizons of target tank-style talked Spraberry, early going the And and some up calls that we’re all on we saw jobs you’ll the development conference the caused rethink that architecture the way encountered where the in on simultaneously. drilling issues working fractures from completions. ago, frac us of in on and which wells Wolfcamps, all had the design we recall hit about our

which four section rock doing more by all interval. frac So stimulated with results hope think we recovery of the the over time, the energizing better entire we fractures complex and in energy, volume, higher basically place would at oil in same we’re ultimately entire

Rezvan Please ahead. Our next from Securities. is question coming Mizuho of Tim go

questions. you maybe far like success payback talk had North about cost as of to what the you’ve details. can refracs, follow-up side? I Gabe’s appreciate on some And given first, the on the Dakota seeing the period guess Haynesville? as potential I the I’d you’re in

and is low the $X million, Antelope, than wells, a these average, its per million on cost logistics. reservation $X well like early $X.X Antelope, would between payout because $X.X of well’s more if mid-XXs years. first million refracs just even ones South harbinger the couple million little average. time refracs costs on the within early-stage, that we’re from These So end a of returns, The look the is right on better doing at performance of we least after-tax X first that the did be any so that. now

and are we can X and obviously, South pound first excited But of refrac in very couple well. the before wells I flowing, performance the So we’re the of said, with days as time early the as good the of which flowing, well Antelope production is sign middle very give a a is performance well this about table. we’re us more program

appreciate trying a quarterly then heading kind of know here that be to XQ? next decline more. decline it’s one full-year guidance, winter single-digit of North we And been in this couple comments, give Should the pull into of Okay, think color. expect about, high bit we Just guess kind to the In activity can’t assume think I intensity production to you’re about your highlighted I little so that the operations How in you quarters? are there. of I projection prepared should over a Dakota. you that going but would of out challenged you trajectory Bakken? the

these how similar we them Berthold saw see Let’s the wells. We uptick forecasted to from refracs had that perform. Fort the

performance So of before we granular outlook more more asset. we for Williston the can the just time give really need

of will we’re rig and mind, in keep itself there Just X rig keep production running not X and in flat.

We’re so declines that and reduce hopefully if ongoing still help to will program that drilling activity further bolster eliminate we’re not hoping the the it. going decline, refrac see

deal. on quickly. timing optimization. mandate Board the of any thanks, if Is sneak sense that? you guess, portfolio you it and I may look as the of sort a Obviously, to last one one I kind Because on the Okay, took that clear that? of guideposts urgency that close some what’s into in gave just from of could when and discussions look complete you to were while XXXX on in know there I kind Pinedale on marketplace, the out

Tim, both on going to presented won’t year. Hey, before to and work optimization. upstream the midstream as not major well announcement. to have the probably talk do and a it’s of it’s number the announce more before portfolio the of probably Board ideas a about I’d more fourth But end Richard. we’re We quarter say, as anything some the side side we

Our Heikkinen Heikkinen from next question Energy coming David Advisors. of is

on side. bit the Permian little talk wanted operations a to Just about

cumes As been looked happening that your of things rates Wolfcamp, lift your little assets? bit how one and about you’re talk and your you Can rates transition the year what’s assets? artificial Spraberry what XX-day of in at flow Permian the you watching. first we’ve on a on you think of And kind is operating how the kind natural and is the about

a results little that we’re surprising to Sure, the Mustang been The on us. seen have David. Springs

a interval the obviously, initially supercharging expected of while. think things. Spraberrys we’re early in this water as on we we’re couple the ground, they’re flowing the the reflection And other Wolfcamps are flow energy And a a to We the The really for well. of on. abundant wells it’s frac hand, around is putting obviously, making the and causing

As flowing prepared mentioned remarks, my in I wells are the naturally.

pumps artificial those or Our lift can’t was design electric utilize wells submersible ESPs. initial to naturally. We run in the while flowing they’re

can get run to in. the create to pump well wellbore if running severe is ESP problems we in up let without those and down while a trying where you’re the pumps, to the tangled the enter causing a them the cords which power to that decline the with run and point to bird’s wells we can have and nest basically So bottom live flow

or two-step read think and, much the than A through going one, process these too because submersible well very through an I energy pump not off we’re cumulative rather as XXX-day performance in foot I of into help XXX letting running David. all then to two-step wells, lot lift, go will having come a us this or day EUR. which utilizing expected barrels zones our above at would commented these electric down, As process XXX-day, folks which on still our allow supercharge from wells, and barrels forecasting And to XXX producing operators the of result, On caution lateral rethinking well lift. remarks, decline of basically my gas early starts the across to for be we’re will up basically are the curves. set this and lift allow it average, prepared we’re successfully per initially, I first the type when be us to to four artificial well rates

of indications Anything of? changes, tightening escalation? the cost or particular, Midland in basin, Any in service

Well, day services providers there’s facing Jim’s pricing. tight. on there’s that And every certainly a, from are our certainly service pressure

what We today I calls date, either. would not call a seen material have cost phone and not increase we’re accepting in to later

tubing frac? What as and being wireline heard about comments not nonproductive on as stimulation. available maybe going through about coil you’re like readily time the I’ve

having time the you’re on just essentially stim So more crew? nonproductive

prior in you the rock in been to mode, us time, calls to take obviously, date. with in being we’ve drive there also with that drilling of a advantages to it subsurface tank-style far of it our et to share get a both as completion activities an advantage fracture wells, down time completion, working respect place. utilization surface, talked between and over the volume driver us and is and the to oil things cetera. in it major efficiency the times completion then facilities down as service of side-by-side of because out provides cost. opportunity cycle increase in one Slight providers but maximize stimulated we the But as to that say And we think their to hopefully, would well of And equipment the able are recovery hasn’t complexity, our in drilling as provides to about I manufacturing on maximize

you. Thank

Please is go Neal from of Our coming Dingmann SunTrust ahead. Robinson next question Humphrey.

mentioned in XX about release I is you Perm with XX wells surface completion question and think, the just waiting like another on and looks casing. the first my just, it Chuck, prepared

up you completions? you around on DUCs? the see year, that exit exiting As you the ourselves with Or step will do many

we to less energy narrow completed drilling, but two belt frac that of question at crew? drilled included are wells wells cased buffer of think of how a wells drilling the we look wells wide how inventory the protect summary wide? conveyer on time. maintain the And producing Is the maintain the get the of buffer other that completion, yet tank-style is, you of flowing the ultimately out, And And the we yet it side that tank-style fracked that of given wells energy crew, actively we active I the will either protect completing. development, not frac activity. the a front. be at from frac As wells the will back on or ongoing of wells the a belt design are of side and of or waiting that we optimize frac sort we’ll on if any well from on frac more or wells the drive on one buffer the conveyor wells can number have then of the And not lined on that been diagram, frac will

how crews Chuck, many then now? frac have do right you running And

from get on rigs. have days our with in And Permian times we the down drive We We efficient probably today. six two have as that rigs less maintain more we conveyer belt TD. spud and running to and six rigs can drill

will each to design was And and I and County then where clear in plays of is this the thought areas two. targeting three go after the you Line sort make that that mentioned, wanted continue the where sure just the Mustang, new you on targeting you’re then tank-style to another in I of that. formation? expand in With the you’re the

down Well approach work we to we tank-style them simultaneously producing from that minimizes existing volume, shut having offset you’re where to think activity. it wells rock blocks wells where frac in maximizes stimulated of protect a time on

develop going assets, these on of therefore, all tank-style. to a And approach forward, them in our is that’s so

four depending be be some parts a Spraberry of still formations on still we simultaneously, formation, One frac of that’s Dean able the Wolfcamps of we believe open which things we acreage. work in believe question barrier need and the strength do areas, an our on intervening don’t we may the the can separately, that the in is to to

Chuck, you tightening Line or then lastly, Mustang have spacing to any And plans the do Springs? in County in

We’re it ongoing the ultimate the looking ultimately And convinced oil ultimately our answer be density of density determinant percent will ultimate well at how of variety different formations. well oil ultimate a spacings. you question place in in in well depending of will each of It’s and part recovered. in comfortable is And the of in spacing piloting. it that I’m place. each are on with well zones of those

coming is Please Howard go Brian ahead. Corales from Weil. of question next Our

the what portfolio is ultimate goal accomplish? on the amount ultimate of the to What is the that capital? to raise you’re Just start optimization, certain goal trying to

again. Hey Brian, it’s Richard

have complicated, is Basin. to and about a in with questions refrac program the have the the portfolio Haynesville a a that the ultimate with think program Permian you well refrac the Uinta, is to your talked not do Williston, from going going to other overly in assets to about goal don’t are I relative we the what drilling program do you’re to answer what what you

incur in So indebtedness want we obviously, some it’s to incremental to We outspend. the incurred portfolio. as XXXX, minor simplify don’t

conversation then Simplify better the any is XXXX the you’re your So your a not capital, capital so and incremental strategy and beyond. and have you doing incur through allocate indebtedness about what twofold; portfolio, with can

Okay.

portfolio with Is So of? cash a kind assets basically, neutral you’re streamline less going a going end to more kind up of flow forward? that and type of

Yes, that’s a simpler way it. of saying

have? in you on more the think declines you’ve far? the one the you similar just Bakken potentially new Bakken How a Or what then does and like ultimately, Bakken. look, do -- drill could look does recompletions seen type have? decline? and do thus Okay, And well How a it from then, you many

days they hard drills. new early Using any of don’t wells and obviously, Well, these we’re to of statements. proxy, of performance fast the on as quite make Haynesville we these production history again, to look wells. lot But a in just a have similar

the performance run guide If stimulate still But just tell rock performance the well you we’re basically we we a see them. these pumping as for can we’re -- that What virgin when it’s we’re forecasted look forecasting them as frac obviously, we using stimulating declines, from of hitting we’ve the days. when wells early wells, economics original etcetera. is as we at the

So that’s decline steep. the and performance

The many question. is question how an have in our about interesting inventory second we do

XXX we X,XXX pounds that Our on a well can’t and initial of fracs, I’m well has new even Gen-X But a been contact has over those. that convinced and re-stimulate there’s the rock. not focus per foot lateral

this. is the do one to on that would It that. We in we just ultimately the every could Dakota more the and But that. to across of handle completion different outset. and very to attractive of need North design So the results jury at wellbores amenable out of generations them have our on get we early that a still across asset very be economics better interesting

John Goldman next is of question Our from Sachs. Nelson coming

I’m more inventory you you details give -- XQ? if if many end in wells us on Permian. front any or just was And complete back a I if can to appreciate expect loaded? -- the uncompleted in But the that few how just are you wondering there’s on color well end those

the front scheduled scheduled -- total XX XX remainder quarter, the for sorry. We’ve that’s of of and of shaded the fourth XX, got the half a toward quarter.

in And that’s Permian, right? all

Yes, that’s correct.

then going back to in question, didn’t was optimization your more parts just I significant surprised using a highlight highlight Brian’s you guess to as way And the I it plan, in the of the thinking stock. philosophically. sum discount portfolio

So market outspend, to funds to where beyond kind be between in is to with a this ultimate valuation? the any saying with willing you’re kind optimization discount think portfolio valuation that better you the and the you’re would asset you is you see to market portfolio execution, that raising plan? XXXX continue of trading what you the will extent, of cover further and that Or reward place push where is

belong of as presented those in us and I to parts growth, asked to hands of to the they a John, we capital not of ideas and certain think Well, work Richard Obviously, optimization mentioned, more others. we’ve And the allocating we’re around have probably do portfolio them. do. number to assets the drive in have Board some more

reflective value the ultimately or So assets stock then and further extent should core we’re market the value drive the shareholders we bring remaining the that, the assets. value it to of them, think value forward for that monetize us to in drive those in us assets don’t and getting allow to of for the growth

Our Piper Harrison next from Jaffray. Kashy is of Simmons coming question

a back well Just you referring just you wells QX, when to to to are to that say question John’s turned circle completed? second is sales? XX completions Or in ago,

I me. I was next need I sitting XX, said right to myself, said So, to when XX somebody and correct

it’s are ready So XX let back, the and wind me Permian. Most next in that them this wells month month. of

And wells to sales, that’s turned correct? actual

Yes, or call that’s what production. correct. POP put on That’s we

a it. gas you XXXX and then about Chuck, world. Got $XX oil talked a And $X world in

$XX then average do halfway happen you and set year oil, to oil. say let’s out so through the the And $XX budget been turns has of the price

activity year? June, the likely same and unchanged would your we be to outspend? would more and you likely minimize increase you next maintain Or the program be to get outspend say, keep Let’s more to

but interesting couple And in free outspend an I as EBITDA on -- generation minimizing free generation, we’re our in One, flow mentioned next my CapEx That’s focused cash of cash answer. get there’s neutrality it’s remarks, ‘XX. not question, actual minus a to year. cash is goal a and prepared CapEx to total two-part and

of XXXX production program. to cash -- second would flows improve. therefore, the in obviously, half prices invested and we our if CapEx XXXX that, impact cash manage improve have do to The on de flow. need But then capital minimis So a

happens the look to set thoughtful us managing the then What that be for scenarios mindful questions. are if of year improve, the or are a budget but And your the versus for activity at Board along some and have what discussion performance options CapEx of next Board. flow the will it being but again, haven’t increasing cash lines the with asked a improves So plans prices we also outspend. of

And then for me. last one maybe just

As of core versus non-core? you clearly at your you look help consider define what upstream portfolio just current could assets, us you

the two in oil in the Williston, Well, have one one Permian. assets, we look great

the we some Not really that the flows operating discussions midstream is has on monetization we additional only around at That the the develop great Ranch the of midstream refrac frankly, partner the that Haynesville. We in partner it. have had a cash in But have help it. our the some do across Permian quarters to And one we’re few a that performance and the also on we’ve Haynesville we from Mustang core and think assets, need. in really bring long-term been ramp in growing do in benefiting acquired with we we XXXX asset acreage. and associated a question gas until Spring and We that a that EBITDA midstream about have we’ll having now the same conducting is so asset we wait nearly one asset is, will since to EBITDA midstream need to is, timing business that earlier don’t is but to something of for it’s not own as investment infrastructural or continue we us bring that. stage program Robertson

Thank you.

from is go next Our Group. ahead. Please Gail of Nicholson coming KLR question

I’m the refracs. just back going to

oil. the was post producing pre-refrac? are oil XX% What wells composition that mentioned refracs, the the You

expect It little was decline new -- that a Gail, in an GOR oil and performance out to we’re contacting a reservoir increase gassier. X% refrac. so of we would and because And lower seeing X% we’re gas in cut lower

basically Or in kind is And then completion of relatively services services in having an assuming market busy regards the for active program refrac tighter been general? completion how in think crew XXXX. a just year? in full we’ve the place, about a where to hearing the that Would keep for there that you

it sleeve existing has sleeve much the pretty a existing keep once crew. sliding sliding run of because in frac out the smaller think clean prep, that prep and rig we with machine place. crew a diameter And string running We’ve got of the the good Williston. same a crew we use allowed well in out workover the be the have to assembly well assemblies in keep get do in -- and can front inside Haynesville thing casing front to cement we a us in we a busy the of then It to would

completion the of XX-day last driven is between out two performance the out design? a just guys mark, reach two one Page kind XX-mile well and the tank-style delta plus X, X-mile break that to On a then this question. that guidance between versus of The you switch that And from the one tank two tank-style. just the tank

of of -- two are there’s be tests. the in you mile performance in and Spraberry to per not XX consider the Shale a what would all lot these see material the can I Well, difference well

I You’re Slide assume? X, referring to

of more I And a the how was I was tank that Yes, outperforming XX-day just X switch a thinking like sure between tank the first two tank-style. second it post the guess breakout kind completion little just a little versus of from that bit if looked that about the there’s where about tank-style bit wasn’t that?

as -- No, view a don’t isn’t there material really difference. that we

mile real XX-well think is spacing wells Gail, drilled the per drilled think spacing, the I test. per well I non-tank or that well XX at little density in mile takeaway at that between from double the difference the very eight see wells style we wells versus per

question? Next

coming next question [Operator McSpirit go Capital of from is Instructions] Please Our Markets. Dan ahead. BMO

to $XXX What’s believed an are then to the how me are the accretion? thought returns if robust, understand manage an maximize all, broadly plan low here, the in help at and be managing process it And why place, XXXX? to are ABA in Permian, million hedges more why leverages to behind XXX outspend a in already I that’s outspend million? mean, is

Dan, Richard. Hey it’s

don’t not a because million yet. or before the three approved I we think $XXX the plus Board precise have EBD months we plus year, is the enter by or minus two budget we’re that

when So we’re at the that the you like looks running that number it’s right a look number. rig schedule

Certainly, incur curve learning with of thing if think kind and even in not year that first we why the think drive the half debt growth if to overreach. the we have capacity. to uncertainty, with the to I general on tank-style, of to just the with just right the do don’t in the prices of have terms to we In indebtedness sell, around assets commodity some it’s with even results regard and we’re

every -- then the and first So I a quarter. let’s the think get it’s plan year of approved, see evaluate progresses let’s part how we

Our go next question Stifel. Please is of coming Whitfield ahead. from Derrick

and development to POP column? Wolfcamp belt from regard full across current conveyer Chuck, With two the on time to spud comment, Spraberry is quick cycle the what follow-ups assuming the expected Midland. your

and that wells different rig are put for has not sales, and the of from or either how of drilling days from me Ultimately, would until going the active frac there’s side between to same to can producing can cycle the frac progress drilling definitions producing inventory spud, let with the amplify crew. wells or activity spud I And If anywhere of are on we on width to XX with the one And initial question of then buffer lessen the different the existing down wells answer. the horizontal wells. on between on the wells frac a -- The the obviously, buffers and to depend in time of XXX frac comfortable sales. time drilling squeeze vertical the other crew the on only safely the the the start then it’s wells first side one turned they we people. lag. stack protect crew, from clarify of just we get wells, drilling we actually row active When the and

imagine just tank Got look it. also or cycle the And Spraberry would I’d Wolfcamp a could also tank time? as at shorten if you a it that

a bringing wells time that do observed. wells. at But bring growth One, in you time. which that XX the our volatility out it basically would that tank wells and of on on in would bringing smooth And the separately, a will we or design at But so was on to Exactly. lumpiness rather, six the lessen XX cycle not in initial correctly also well we each we’re four as when two pace lessen delivery things. it thought time, families the could delivery or production would of

Excel like it a more would look spreadsheet. So

And the it. maybe Bakken. Got on one last follow-up

call wells to next XXX we Can maybe XXX around a pounds will portfolio X, to generation? are Is per mentioned or thought design the present. that like XXX that? What going per you there Gen-X on be pounds within the earlier pointing foot that a So foot? over XXX at it be put

XXXX, pumping ramp jobs. We up foot And we initially to then started all XXX pound the per started out starting in concentrations.

a more to step if X,XXX X,XXX of you a off But cut proppant pounds ultimately, concentration. up The And XXXX, completion would several hundred candidates. as was we not it at wells additional we first there’s able lot the concentration as pounds much wells, that pump to a that I went foot original foot a XXX new I’m of a and stimulation rock during be with there’s sure then design. per arrived about being at and modern foot, contact said, proppant as even matters

we the of out to closing for run floor over today. I questions would back any for Unfortunately, have turn like comments. time

the look in conference Well, year. dialing future day. the today’s thank you Have travel very call. We last some of to forward part to you for conferences in good as much seeing near the during we a to

Ladies gentlemen, for your participation. This you teleconference. thank today’s concludes and

your time, and at disconnect lines may this wonderful have a You day.