Qep Resources (QEP) 21 Feb 192018 Q4 Earnings call transcript

Greetings and welcome to the QEP Resources Fourth Quarter and Year-End 2018 Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Investor of Director Kent, Relations. William Thank you.

begin may Kent. You Mr.

today Eastern everyone. for fourth the President Jeffery Chief the joining you, With and and and for Executive of you Financial morning, good me call. Executive HSE. conference Senior Resources Tommerup, & of Thank Officer; us Richard President Vice President Thank the and Officer; XXXX Vice Joe results Western Tim Region Vice Doleshek, Region; are Cutt, year-end President and quarter Chief QEP Redman,

measures, If qepres.com, we'll done the as and which costs. with measures earnings comparable maps the so use non-GAAP which our our adjusted you've including with already, our in not with filings, call, to tables to please processing to earnings in other to transportation earnings supporting and and go and our EBITDA contains of reconciled along presentation, website, most referred financial materials. release results, are obtain In is copies SEC adjusted slide SEC filings. conference These release, today's release GAAP the measures and EBITDA, certain

our of are In forward-looking over results call our for many from could release SEC the filings. materially and statements. disclaimer to and be I'd our numerous our beyond which reasons, earnings our our variety to remind discussion Tim. more turn statement control. everyone robust actual forward-looking facing With everyone refer differ in of these a of making addition, business risks We to like that, we'll that statements forward-looking We

path over results. transaction, I what call means also and and before investment company’s financial will reset call. the be an QEP’s everyone. it us corporate specifically on Basin decision the color our Williston focus turning planed and some going the my good cost Richard update forward, our morning, This details on in to to operating Will joining Thanks, capital structure, including for forward on near-term plans. QEP strategic for of on regarding provide will provide morning Thanks

will of a I I from the majority wanted XXXX. details point out the leave Richard, to While few significant highlights to

in expenses equivalent. the decreased to million our BOE style continue XX% During and by XX operating we well oil These progress barrels optimum most XX% the increased for make production by tank per spacing of a to identifying importantly on Permian Basin year, significant development. Permian the record perhaps

great program. On to the XXXX, the spacing the front, wells spacing forward early as our confidence XXXX with drilling during us expected, move drilled drilling XXXX deliver at continued densities and units we as gives lower which late

We a past have day can current a now market continued owned rate barrel. to water $X into much than frac optimize infrastructure XXXX, the barrel, midstream recycle our of less closure than Permian company we In years. of water built recycling water plant investment operated less clean $X.XX in for barrels and to a our per and XXX,XXX several over the

and look integrity. competitive lower our cost while Permian maintaining safety focus longstanding these While in were our with costs, opportunities we peers, operating to to will continue our on for the

sold organization. gas-weighted XXXX of year natural pivoted a As we operation assets you know, transition more was multi-basin, as a the significant focused from and with multi-commodity our

that the industry. behind with renewed in best enter us, competitive sales a focus structure ensuring asset these we is With the XXXX on cost with our

excluding and We to by intend XXXX. G&A continue reduce costs XXXX to organizational approximately XX% to our forward restructuring when expense, significantly evaluate our comparing needs going

changes the this the the structural We occurring the in changes of of will half with year. be first majority in implementing necessary XXXX

peers. is beginning I’ll discussing of Basin Williston with Our $X few the our competitive in XXXX, a ultimate establish long-term spend is status than goal of to transaction. structure now a minutes the BOE less which overhead per

agreement for at Assets $XX barrel $XX price sale QEP and dropped barrel aware, At on time, are was X, a XXXX. November you Near-term As the recovering Energy of subsequently barrel. that before trading today. $XX purchase Williston and per approximately Vantage to a oil signed to

Williston touch are and to at and product value QEP flow for unlikely closing current remaining briefly asset. that agreement. in with Williston that it deterioration satisfied, understood, that of the are With over cash and QEP’s and terminate positive development guidance Vantage the conditions focus to natural We capital intend our foreseeable be the gas. to on price would became agreed purchase return strategic on pace as oil the XXXX. for Inventory a now backdrop; a high oil move aligned the well the maximize I’ll price remain with assets forward versus future s Given sale to the

During put XX XXXX, Williston to planned one value XXXX. activity operate second including in in investment, price half first the but while two lowered decrease growth, expect operate to invested we production, the part environment rigs capital, will our to of the Permian in the level increase on rig XX% $XXX wells; three of Basins, we year company Permian infrastructure mid-stream total gross we $X guidance X result production. Williston, half capital the Permian gross focusing in billion put a delivery production. XXXX will of by in volume have level and approximately the recognizing lower of XX% before and an in price, X% and year will oil be versus oil our on and $XX full-year expect be spent half rigs Permian. flow oil the second on to At in we dropping year, expense the late planned the is wells Permian in the interest At which This for including flow the positive of for cash XX% in approximately we in positive of cash to million, a and the

bolster balance strategic XXXX, activity reason plan liquidity our in inventory alternatives non-operated we we further recovers, in our no aggressively to our to In higher assets deliver strengthen see and prices. an Permian evaluate While our effort and remain our at around increased develop midstream as premier growth we the will of currently business poised Williston. to and price drilling current sheet

system advantage a result diminishing the operating strategic in to have our the as gas-gathering that there market asset year. in of half Permian, is We first we intend the the in determined

We our also for discussions partnership makes initiate plan companies water evaluate water to Martin sense to whether County our with facilities.

We in our current neutrality of business and will lower overall reaching to of price activity cash intensity with imperative the dual environment our capital our flow matching XXXX. commodity

our me my forward. discussing strategic comments wrap Let path up by

a out public shareholders many including to have determine proposal. have our from QEP take interest both the We of and acquisition few best During of past forward. the months, perspective, Elliott’s this expressed number and reached companies merger seriously path in an interest

goal on is believe As always, process our is run to our way this by to the the for goal shareholders to we will identify oil alternative path two to identify forward the and potential best standalone comprehensive Whether to assets a a through confident our or of a are company. that we accomplish to for value these best develop maximize continuing alternatives. premier we value strategic basis, strategic be able the clearly

the Richard cost the results, peer and a guidance. to business to on we on remain our along continuing with turn and focused capital, efficiency. result, operational assessment delivery to now leading will As financial of process provide summary call focus I’ll additional out, while and our operating improving the strategic plays operating

barrels the lower in year down which were of about XX.X refracs were down volumes activity of from color activity of assets, year. barrels drilling gas barrels, Williston million with in half guidance which our sale down in Basin with guess than poised in the but guidance, consisted for about third in down about from quarter results In XXX,XXX volumes second Oil in the volumes were the some the oil were third I the from you, open was in X.X XX.X barrels that we Permian the the the in quarter into the the barrels down into Permian quarter we fourth on Bcf, Basin barrels quarter, barrels, third the the Williston then XXX,XXX of EBITDA, we XXXX X.X in compared production [X%] the the The third developed quarter. produced Bcf Williston our of Production generated price quarter third the the Q&A. of $XXX oil the quarter, and oil lower million for of quarter XXXX. the of $XXX XXX,XXX million came in quarter refrac oil EBITDA equivalent be natural consideration. to X.XX up the our We gas guidance. million million will fourth a Thank wells Natural last primary on to the million quarter, quarter, four XX.X in in line X.X adjusted fourth lack barrels were BOEs million contributor year. which quarterly in which was to barrels production million third Bcf volumes were in which Basin lower development volumes during Haynesville, XXXX, quarter. outline third volumes XX yearly XX% will level. quarter. down barrels third X.X adjusted in XXXX produced equivalent, quarter. call to The environment or The million the million fourth X.XX X.XX $XXX was NGL X.XX Tim. is Bcf generated million of XX quarter in November. taking XX% quarter

to planning at We drop rigs have We’re half the three two of first XXXX. plan mid-year. basin the to Permian in rigs drilling

Williston seven We basin. also during drill the summer to plan the in wells

are As a oil million XXXX barrels. for result, XX.X guidance XX.X our to for volumes

Haynesville Basin Our of the owning XX XXXX guidance for Valley. Bcf to reflective no for the Cotton Uinta in and national range in XX and assets gas longer the volumes of is is

for assuming or and there recovery will locations election a recovery Our million year the is which for we be to X.X can an guidance ethane all X.X NGL rejection million barrels. make volumes at XXXX,

about barrel, which QEP of was was expenses higher $X.XX $X.XX the oil lease the operating of quarter reflects that fourth quarter. a loss On which guidance our quarter quarter. in lower third equivalent. higher $XX.X release were price revenues, the field-level the fourth field-level The than $XX was of field-level is oil total a $XX.XX quarter and $X.XX revenues resulting the $XX.XX the million third the Boe per X.XX Boe for Boe X.XX $X.XX Boe an price, up per that Boe, quarter. quarter third realized million third third equivalent quarter, per were than equipment Boe the a in barrels which operating from and million of prices oil crude see equivalent price transportation NGLs $XX were basis, Adjusted the quarter, that to that field-level from barrel, the $X.XX for which per we million, gas $XX.XX first $XXX a X% XX% derivatives, weighted unit net were netted Mcf, which than $X.XX than and includes quarter for compared in prices realized was including adjusted Boe, crude per higher the earnings realized Boe were details. per of volume transportation third settlements to Boe expenses expense Derivative which the about per the of the were of of our in was outflow in fourth expense, quarter. our the lower an third account prices $XX.XX revenues in per down Please XXXX. of XXXX. averaged commodity settlement $X.XX quarter. million oil we $X.XX was we per per Combined averaged average additional transportation is $XXX for The of fourth in Energy’s in than Boe per in million per or in lease were Field-level and a $X.XX $XX.X against $X.XX natural barrel. quarter, outflow per loss per in For quarter, million

to was Our per guidance Boe. for lease $X for XXXX expenses adjusted $XX transportation operating and

for expense transportation XXXX, lease the Uinta Basin you about combined year $XX Haynesville if the Boe. operating For and calendar and was adjusted exclude assets,

third million G&A million $XX.X were million related quarter, we of compares initiatives, in continue So, $XX.X million the expenses $X.X to that the strategic the third expected quarter. $XX.X in which area. up our in from Included expenses was to the to improvement quarter. in quarter

of G&A million XXXX, $XXX.X our which expenses initiatives. expenses full-year For to strategic $XX related were included million,

of million Our million for $XXX is guidance expense. which $XXX expense for G&A to XXXX is based compensation $XX approximately million share

our Our to guidance severance million $XX of includes employee associated our retention million $XX programs. expenses strategic to and initiatives,

in expenses incur half of the We instruction the a portion of expect the to significant year. first

to $XXX less an of million were loss was of assets. impairment DD&A associated million, our net $XXX which Williston third XX of the million, a in XX, on December Basin with $XXX the the fourth Permian net to the million of in Offsetting was reported million. gain was a we we expenditures, accrual than associated asset directed net portion million of reported quarter $XXX and compared quarter, portfolio Capital was expense was liability was basis derivatives the the $XXX loss $XXX September acquisitions billion Driving At fourth derivatives $XXX.X value unrealized to $X.XX the XX. $XX that of For Williston Basin. at the excluding million which expense Basin our quarter. with the portfolio. a net expense commodity

which of friends our family the reported we was XXXX Robertson of also million acquisition. final with associated quarter. with the of Ranch associated addition, acquisitions In acquisition in majority and the instalment The $XX.X

proved we XXXX, expending mid-stream Basin mid-point budget. the be million XX Basin XXXX. expenditures of million. in be of year-end XXXX about million, infrastructure. million the to $XXX divestiture of oil of capital equivalent, Permian the XXX allocated XXX in Year-end million forecasting excluding for For be down X% Uinta barrels about excluding which and the $XXX were range XXXX Capital year-end million capital activity about at reserves. barrels first reserves acquisitions $XXX are quarter, from should that X% the proven had Recall includes will acquisitions and from

XX the had Basin, million from million XX approximately resulted and Basin, equivalent in Permian barrels discoveries, equivalent primarily turn was million Uinta XX or XX% We of up of So, higher year. extensions excluding last in the revisions pre-income of SEC reserves reserves were at prices barrels the positive the barrels million XXX of to about of were Approximately equivalent, proved our and additional to developed acquisitions of are Haynesville reserves year, defects. comments, facility. debt billion PV-XX added received proved barrels call reserves $X.X proved assets of SEC million over escrow million tax about $X.XX a regard PV-XX a The an equivalent. XX% now XX% oil. was debt of total $X XX were and equivalent of reserves was ready was With the sheet, $X.XX of equity previously were divestiture announced billion, into cash our of approximately million the of about closed and In was With [indiscernible] XXX billion. an account assets, we credit $X.X January, billion revolving we of XX and cash prepared placed to the those balance end which Total Q&A. of under and shareholder billion.

Thank Company. go-ahead question Daoud, is Mr. from Cowen Gabe [Operator The Please Instructions] first sir. & you.

wells. just doesn’t you on assuming level the if transaction. high just review and you in morning rigs the good wondering the obviously everyone. the the strategic and seven could at about second into thinking Williston, Hi, two Was a business looks start the bring half how Permian, a In go

that growth do do cash XXXX? about generation? you appropriate how point? you for cash push think in any free could against pace there is more the for this And, pace guess see I just flow know, that at is about flow and that overall XXXX, way quantify So, you if And to you the free think

I appreciate Gabe. thanks the Yes, question.

need we and that. giving an we look have do of quarter-on-quarter, the back; bit you of know, I but Williston. little dropped rigs used overview thinking of a think reset a by both more Permian -- in I’ll think is what a to we around know, the we little I bit start we I to running;

Permian. start let me So, the with

tougher we expect the to first you in and a to get two about second Basin. go two EBITDA. in growth flat. similar about rigs, rigs, results Permian an relatively three you and stay in annum that a to as think also should XX% rigs down we’re about production If expect growth would in price three half, should Once year, I increase. recovers, This run very to a see X% high-level per going a we So, rigs half,

So, that. how we call do to about need to make a

at price important, prices cash within Our view lower is living very the have been is volatile. flow

living $XX is important. future. with You’ll to the barrel, think we’re so it balanced recall, I I you an growth down eye cash said, within recently to a as needs to think But in be

And look we’re that. so, hard at taking a

when about model. you few You getting in work the the trying think know, to company model and quarterly give some of thinking, to your away a numbers I’ll for you

rig about rig know, run year and the you can you a Permian a for – Basin So, wells. deliver to about run million XX $XX in per

add $XX and XX you about wells million to or facility those hook $XXX know, cost then, about up about $XX costs complete, to to got of million. million You

So, about two $XXX to rigs to $X or it’s million from about step-up million three well. per rigs,

Wolfcamp with I Xs. of Xs, in XX% $XXX [neutral shift think the wells the are think oil] that an million. Spraberry from think, low with kind growth I increase about But about production high to of the kind know wells you of about a you

price be but in short-term So, to want want move going move paced as to to we price a we’re watching want closely. thinking; don't we with see harder price We forward pace. recovery, to forward react lags, to our and we’re

program, and We steep flat. on about expected, XX% happens, that can we part of steep we base, to stopped is you year, the modeled Basin, which you we’ve then, XX, when and decline. do saw Williston last think Switching been higher low little curve one-rig XX that prices to with the about the in and as very decline that. XX, of very very about We you had to the hyperbolic over have that we’ll know, prices get and the and activity. prices Basin I pretty on be a believe keep So, we see poised Williston activity

to we rigs, of two so plan an do We’ve Williston these see can then to good the And you don't when going lower have got refracs, prices, forward. you can with the with inventory back again, refracs, you inventory We get grow. growing. Basin about

how we that asked balance you’ve the the to the higher growth, We out retaining good prices, is of it which the simple inventory about for the more. overall, down do. to we’re right the It’s go So, thing company. thinking on and about is really want borrow that's kind don't Gabe think and [rattling]

today. debt, we have we’ll and enough We are where stay

a a the we’re to of about going it’s it know short thinking sets but business forward. think answer quote I kind So, long I how question,

terms No a that. Yes. maybe two-part that’s level that the zones Any color results, in latest perfect. question Thanks can on Tim, a share gathering the and you water follow-up in Permian an then, for to number And or asset give density lot And related batch of you tested? at infrastructure just assets? invested being just Permian. and the of the capital is there know, you then, EBITDA could

message now the they are are of more at is, No, and you effective. the DSUs the Permian of the – following spacing curve. into when spacing curve. DSUs each on has was I bit that of zones type XXXX XXXX and tighter wells the on Each the type know, rest done I increase hyperbolic, the All the of different following the and to on on were been a The work the decline. declining late biggest exponential wells are have think or in an the drilled

and takes DSU. good each technical to spent feel And and of going operating about time time long I’ve Joe through a so, lot dissect the folks a with every It the we of that. folks that. and zone kind

are those offline. right kind So, better I questions of to think take

calls to that later past We usually there. answer a takes you to at as pretty are and type from a detail, take complex calls, but it’s those of date happy know kind

and about associated talk to Yes, we’re with the mid-stream not assets that ready just assets yet. the in with Basin, regard various the Permian EBITDA to

Understood. Thanks Thanks Richard. everyone.

Gabe. Thanks

go-ahead, Our next question is sir. Stifel. Derrek from Please Whitfield,

Thanks, good morning all.

Hi, Derrek.

development. PowerPoint, on on detail of touch was I’ll last tank-style technical recent was, specifically in but there a question views the lot spacing where Tim, on and most

tank-style touched on fair on views the to intact? it opening past be While you space would and development remarks, all remain in assume

what? the Could you that? last repeat part All of

be it development to intact? that all of the views past assume tank-style Would Sure. spacing and fair remain on

each Exactly. And each team and with here, I about several Eric again, got the of each of the with through I kind and Joe DSUs, of zones the of the curves, when decline going feel it. individual spent days good

a growth, now pick-up we dial-in. think we can with we of that. and can a deliver we certain I When So, say, rig feel amount confident

it’s You what pretty mean an know, is variation we economic will some partially there decision spacing we as well. I be the across and acreage acreage, decision but the consolidated on seeing. are like

think $XXX spacing; more oil, make by not in the lower might XX% an a you pretty in spacing oil, seeing zones, $XX money. the we’re know, it and now, I have decline You little $XX tighter I to we’re of lower average and little build by well a dialed Right increased curve with influence spacing. different the to seeing zone, probably on XX% we’ve

the Perfect. then, back the you it greatest what you as assess relates operations And as of and XXXX/XXXX extra your your gives Permian Thanks concern the step plan? to for state probably, detail.

No, back pulled conservative so a don't to a we lot there we’ve have plan, concern. of relatively

LOE cost all-in think the on well. got our cost we’ve very both control, I and we’re well in competitive per the

deep No. satisfied long operating from background and come are conservative Now, companies. that? fairly we a with I with

to looking I'm and so, Joe And Jeff.

down that. We’re go keep and that excited every day going to to do we’re driving

to you very the that. wells able – On the know, volume about again, on unless see we’re do deviation good now, should some being drilling side, we feel we’ve we

curve to into know, manufacturing the in think their decline weather pretty overall, long You wells, and we’re much we’re more and predictable going things, as fluctuations mode now. they is but as for different well have that treating getting I stand,

PV-XX you and for year-end? that specifically the on at question value. have Bakken follow-up Permian the Great. And one quick Do

you’d the get giving to just allocate but not at we’re I Derrek, you a reserve idea if think of good pretty number No. it, go that how look breakdown, out.

guys. Very helpful. Thanks

you. thank Alright,

Mr. from Neal We Please have sir. SunTrust. Dingmann, question go-ahead, a

of of Bakken. based decline see the do anticipate the minimizing and value, kind sort Good year you on how How through morning, maximizing you question know, My on plan do into you XXXX? this and all and, is guys.

got Yes, two so we’ve opportunities.

drilling that very looks attractive. have package We a

through We refracs year also on inventory some I confident a quite a issues we’re worked last and mechanical think refracs. worked we and have through the large

into to an asset we You overhead want to cash the we for corporate with also delivers back coming with company. know, included. and want on live folds, The level know, free the Williston, you overall asset too too with go flow flow hard, the didn't cash both the and fast as

believe And decline. year, up picking seven so, rig, drilling a this we wells, will the basically help

also so slow We’re by lower going curve on the hyperbolic – opportunity. we coming going the is be it’s individual the to itself. we on have wells, go as decline naturally to And forward,

turn see you we’ll If year inventory to pick-up a and to probably into going refracs, price, with out then know, you ultimately, a have a we’re some enough growth year, probably, and the you a pick-up half want increasing rig. second

now on quickly; we high know, through we’ve of gotten results that move few confidence pretty the issues. on our refracs, you throttle; that’s mechanical especially So, – hands the is got can our you we’ve the the know, of

So, simple pretty it outcome; again, pretty surprise. no hard; were there dropped

look PDPs Our great.

looks really And backup Gabe how wedge a do inventory lower it's balance now solid. running through price. about pretty that to without growth you asked quickly at really that is, throttle Our high-quality the

it cut. I'm that sense. in Bakken, be you. focus of one broad-based? in Perm obviously It refer wondering [indiscernible] to or material that And that just – the mean, area, you makes will G&A Thank is just in I sort is then lastly, any

impact is the thing to the people. we hardest cut – it's G&A know do, You have they

a short We across it's multiple lot time have reduced company our and listening were have of down. period a of employees with We a the basins fairly board. and in

been had the competitive. in G&A the So, fairly past

So, we do nothing.

XXXX, the XXXX into $X is to Our unacceptable. going $X up forward range into G&A gets

And so, pretty back hard. pull need we to

the Permian, whole that a with here add looking really per at at we're G&A lot volumes you taken And we hard we're now $X was the or we've I when we to we've accelerated competitive, to need see That barrel things. go be we very So, down I and of benchmark in going as data certain look believe going come $X something underway I will to is at, don't forward. got below as increase there's that. at a before time. think look

need. reset and nice for trying need keep the everything is we're what going do to most remove important And the have, have. going we on we're that's all a to So, to thing there's And a to we're everything kind the fundamental industry. to outside we've do of things need to strategic now most to of thing employees. is the on we good are influences best the had going with the We and important and all initiative. our announcement in and maintain some got the communication The trust do

and are the most best things some Permian interesting back We doing the assets. into and of in Williston our now

we're going communicate as going talk kind to about that's and so several And to happen helps. challenge to has to our more forward the but days, fully our I employees focus, of be core this, over we that and next our core go but it's hope something

Thanks That the Tim. does. for details,

Thank you.

Oppenheimer. question Tim Please sir. We Mr. go-ahead, have Rezvan, from a

recently. shareholders CEO. for to since the And Hi. Tim. the reaching I touch you've Board Good in morning, Tim, folks. My first with large became well been is shareholders large has out been actively imagine I question you know

the with a its forward or assume of sort really path initial out large lays was of much QEP talk forward you consistent of plan new As comments plan of kind new or Can as two-asset CEO? moving the your those influenced plan of by this on this as kind from take is about role is company. you really how shareholders

fairly we're guys take we And more that worth that have a you mean, think I of Well, obviously, it's seriously. than you they're doing. you companies are combination when assets trading saying, things. looking your at that's and what

more one that even my We're think going I'll that. hard. is we'll going be have working strategic carve a challenge. sell We primary and to what run a continue taken in calls, try public take we got that. we and going our to process, to obviously I that. the And that an or business positioned more on unsolicited to off just on get on think out, day, be the deal, that to and company to be, of process. pay to focused with the was that stay is and company focus answer we're markets have every to merge with every assessment, but work compare. I a and through healthy got But through you're subset cost this company honestly process public know you you deal is It get I think through Board. how We've when the the small see willing going or with run merger for the And that's fine does biggest to the parallel and

So, show the it's how how do lower particular for me and us basis. is get our more how for we but do we cost very at from drive my you're – necessarily forward, cost I that they it's think going do we it much we I that don't own. take hear it down to We're do asked and company difficult outreach to think another circumstance going or to about plan, shareholder

assumptions billion total reserves reserve the announced free over same about like Can CapEx Okay, talk bookings the of was for the a lower those aggressive At the associated that possibly to that of with comments And there then figure at report long-term sharply program and your goal of an behind time, sort being $X.X reserves. neutrality. a second on XXXX. I your reserve next looks flow on relative XX% five feedback think methodology? the showed a aggressive and years. okay. PUD cash your you And question booking developing XXXX Certainly, you cost

with PUDs development. Richard. the you for capital demonstrate and are then complying With you the plan can guidelines prosecute that reserve Tim can SEC five that all years Hi, report, to it's regard that

the So, by back-end with capital midpoint rigs very as We is certainly to regard $XXX fully PUDs dropping we issue of in keep an to options your prices of price. $X price this we with billion oil that, the think to million the were observation this clearly I feel relative commodity loaded. the those doesn't environment running to developed rigs the versus whole develop When that and capital recover. driven for year, plan deployment But good. year guidance have it's

We're good So, in liquidity that capital see to dynamic reacting available to what available situation. booked about a the reserves are certainly we today plan. and feel prosecute the five-year just we and

Okay.

cash would So $X.X longer billion number? flow free be consistent that that with term neutrality

correct. That's

Okay. you. Alright. Thank

from [Operator from Sachs. have Goldman Mr. ahead. go Instructions] a We question John Nelson Please

Good morning congratulations appointment. Tim and your on

you. Thank

a program? tank of team petrophysical development my on. you earlier the side been the development Tim the of just is on be efficiently guess the more has I appreciate analysis regarding did early on tank comments leader practice question can executed and kind with two-rig your I QEP

it's good John. Yes, question, a

taking I of think because you're getting right front at that advantage we're and you the trying the pressure now. build you're of edge ahead to

you the to go and you different start and those splitting up. places and As two assets rigs have different we

I on think you're down where the that. right edge of you're

frac you rig crew I for about think we fracs is can X.X and optimum can be The doing effective take rigs. one because real rigs the forward. that Permian, support going – more us some you count X.X in

So, back that's to front. to severe are no of the we four into just going be pace down your be advantage probably sure we're to be tightening There's are the to think three selective, make are tank-style. off. you you of rigs taking that's the a and kind smart, area smaller reason going pressure the to in I mean, optimum of I optimum

it's it price. overly done, potentially not, So, are be encouraged in but we we can also yes, by seeing the optimum recovery

to be to a We’re development price bid if into that, back of we'd move the kind poised stronger on not going forms. of pace but

XXXX uncompleted to well not prices or higher is really – – is the to have set as up? for inventory of the in down Do and you plan how the the of some that kind draw you wait ability

we think I to. don't want really

now. drop for fundamentals The conundrum history price and the You the that's you a have that out I really sustainable and bit once we corner price it we and make to we more big has decisions that we that to to frac a We that's when We're on through, and frac right power versus you're of certain my assets keep It and will have be make frac want kind amount going when to we could the it say, and price committed, have OpEx, for value like overall crews we mean, We rig, to the quit the is If growth running. crew long-term think through of of the basis, the can too and overall inventory. dropped you're longer-term. value think kind back preserve looks or I the on you beauty a the you're uncertain committed for then keep focused do of see frac spike. a to shale up. as confidence sporadic offshore of power it's now in of going, on been us sale, a little fundamental always the rig more off and value reservoir. a turn you decisions often of happen on I crew volume you decision the right the for and go we going. and keep as that kind can not and of see a that something lot can keep in

we're that we kind would watching, say work of want this inventory. point, to down at would just off blow we So, not

And sense. levels to production off XXXXs that flat just implied rig. housekeeping that gave low can the The the XQ earlier? more by that one earlier is you makes hopefully Bakken you or levels with Is items. a of That comment guidance hold off then

Yes.

on wells given once into be guidance able we've we of saying rig I'm we'd drilling for hit on and XXXX kind continue the by So, the year, following running level, the and seven offset flat. see increase production to can the the want want we if that, see that keep pretty We and on an quickly. refracs mobilize in decline, also to some to we we have one we

should Okay. And or exiting the for we of your relative just over that high LOE think then least the towards part guidance company falling, I just will trajectory? how the expect range end about of that year, the because be we to be at to year, should LOE volumes guess, on any color

going hope We're to middle, but lower. the get much we to aim

We're done on out. going working So, don't very to I yet think that cost possible be I mean, take we've to closely. everything

as Williston a take cost next We're of some out. with probably not challenge out the improvement a down just with Then fairly up I just going those – I’m competitive. where little in just a more to a everyday visit we getting bit our take cost are need continuous think week. into going we quickly. just cycle there to the Permian

to the be side, driving to to wouldn’t to we going it aiming middle, hope take side. action to to more low we high hopefully for and So, going aim every we’re is the low, the are ever we the – be going

Well again. Thanks. congrats Great.

Thank you.

The next Energy. Please Harrison, is Simmons from question Kashy ahead. go

and question. taking for everyone thank my morning Good you

full-year So, you Permian if to just was remarks production either the one I in CapEx us was or oil be XXXX. XXXX? XX% for during roughly total looks Earlier that sense from going quick of prepared me. give wondering could you the one of think just total the like I mentioned budge Permian what a

Richard. is this Kashy,

to exit rate what It we’re the but guidance giving we to standalone to to going give kind kind not were, guidance. was, didn’t us guidance so quarter revert going where of really and just last back extrapolate the is, base quarter of year the are first not guidance. give We in Permian fourth are we help us

is if X% year-on-year what being on would expect – for our a can the oil. we what of to for I see say, that Yes, you just Permian look in is, at you do math ends XXXX, full-year up this the

sorry. I’m

for did you up or XX a broke second, X? say You

X.

Okay. Alright. Thank you.

X%.

you in more it to if year-on-year. remarks did stay Again, was part rigs a two, into that So, of years go to prepared we go that. going flat. is three the on you last X% math What had I my take is, got Once two.

would a to say, get I XX% be we growth. able would about three. see You

get Let’s you think into help that with I will the boundaries, math. the

Okay. Thank you much. very

We Advisors. Agarwal, is Mr. Please go-ahead, line a from Raj sir. question Agarwal have open. Oak Hill your

my Yes, hi. taking Thanks question. for

Just question. one clarifying quick

I be in CapEx facilities X On of including XX% think, the was the think number, was of and well, the oil. Permian, I CapEx spent average you you going said, said million to

number, if to Just square lead XX of can how that help that, very helpful? trying sort that be in us you to the bridge was Permian would

Yes.

well. you year math with rig a took yes, probably think to and close we're heavier a about I now is about We've that to And disposal million. XX%, we finished also, $XXX hook-up you if the say had this So, up. would complete that, talking capital. drill you're $XXX And one for and million, drilling so about water

midstream rigs million four top costs then in had first quarter of we you of put worth So, the on and $XX that.

pretty you XXX. quickly that to you do math If get

Thank you.

correct. the XX% have I'll the sounds like Alright. about of is Which Alright. with maybe we math questions. think, are maybe finished my total, I It up

And, place the in begin that complete assets. established We've process the need the but be a frame we but our don't wide be a range immediately. confident marketing test using a So, upon pretty interest ultimately we're and of We few and and think what came that. hopefully market cash but of overhead by best forward. do We'll is shareholders. a $XX let remain time fairly me Overall, XXXX say the and you corporate to go to very of the positive not flat going committed $XX outcomes. I price, They There reduce process to say you can those developer first the to the on But just to whatever wanted competitive we out of close aggressively to at the will the confidence to Williston price, a see before neutral, have end just have in we're LOE differential making updates of of we're this a plan timing including agreed well a being is, kind other flow is a that to cash forward bit I'd and comments a optimized didn't like the delivering flat. clearly. out to continually give half confidence, as against most the BOE. there Committed processes our G&A on We've XXXX. in cost any per deal the volume the ability flow plan for XXXX, that. value to spacing also move interest of improved and of watched company, during at like then in have of

So, Will. with to turn over that, I back think I'll it

we'll QEP Thank and interest you you very soon. to your talk all much in for

this Ladies and Thank gentlemen, you concludes participation. for today's conference. your

this your You at time. may disconnect lines