Qep Resources (QEP) 7 Aug 192019 Q2 Earnings call transcript

Greetings. Welcome to the QEP Resources Second Quarter 2019 Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] Please note, this conference is being recorded.

the Investor to Relations. turn Kent, host, now of Director will conference your over William I Thank you.

begin. may You

Thank you, Executive XXXX David, joining and Officer; Tim good morning, everyone. Chief and and the With today Executive Resources' Chief Cutt, Call. Officer. President us Richard Thank QEP Second President Conference Quarter Doleshek, Results and me are Vice for you for Financial

our obtain which already, not go to materials. with to done contains qepres.com, release, earnings so supporting please results the copies you've with our If website, of with along slide financial tables our presentation

In comparable and including flow. and cash today's conference measures GAAP filings. call, SEC adjusted we to SEC release will earnings free most use and These certain in the measures EBITDA, non-GAAP is EBITDA measures, filings, earnings are which in reconciled release our as the referred to

addition, making In 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 be actual numerous many we'll our

We release Tim. refer facing our call to to more in the disclaimer statement With business our these forward-looking earnings discussion turn robust of SEC I and would risks filings. over that, like everyone and to our

begin for the into Thank our joining an with update good first-look a before business operational thank and alternatives morning, Today, providing I'll XXXX you, process Will, to and the strategic the and you call call. update a plan. brief

same-loan morning, release to and As is best have read on for the the you determined this our forward we has value comprehensive move our earnings quarter strategic a board second concluded review alternative in basis. shareholders

many levels of impacted the our deliver current appropriate that parties value the likely that aware ability conditions market As these of have you shareholders. our for would transacted significantly kind of are

process go-forward a maximize engaged company to in I a first value for I review an Upon wide will a range primarily January, about today's effort and alternatives performance we strategy, of in focus shareholders. in proposal to acquire commentary share would the few the itself. strategic our remarks receiving review on While unsolicited of an

today's granular strategic team getting of times legal coupled of is both our our the to a basins, our the launched experienced the the and new the determined of Williston a dynamics value advisers the Directors as for financial with process market company in February standalone Without shareholders our reviewed detail, and potential that transactions. with in strength a we Board executing operations met help numerous of strategic of and XXXX, since with review the Ultimately in create range best board Permian path long-term plan.

evaluated opportunities, we our deliver new strategy, it transactions to long value of As believe of assets we these none but we value assets recognize that potential with and was shareholders. term the our optimize intrinsic to our the can apparent

the talk let's strategy. go-forward that, With about

a standalone sheet we balance laser-focused and generating returning company, shareholders. flow, on our to As are strengthening free capital cash

completion deliverability of oil-dominant drilling successful in XXXX. of as sustainable the ability of in a quality a confident as the facility of deliver commitment as overhead this costs, our half the on are We and high decrease significant -- improved and performance asset-base to our corporate first of result well in reduction

overhead board been focused January, on of QEP keenly on capital corporate coming with in intensity Since business. I've reducing the the and

$XX by normalized us XX% during goal decrease keeping quarter, taken expense to the of result million of G&A a quarter, compared the first XXXX. to actions deliver XX% the by of year-end a As XXXX and approximately quarter, between reducing second on in expense on-track dropped our first

business we deliver plans. we'll our successfully these have reductions, our team and XXXX. the future believe able technical per expense we as to Despite processes and infrastructure controls, majority reductions significant We be the and have are execute implemented highly-talented for BOE well to necessary plan operating that the $X that of G&A sub target retained as systems, to a confident

deliver operations time Our improvement both capital to front, which continue positively and is team on efficiency. efficiency continuous cost impacting cycle and

result and our continued in have completion wells facility of cost million have confidence less approximately deliver and decrease we to those work, ability a Permian the As $X.X for drilling in in XXXX producing than to basin.

foot complete drilling with TV less XX $X [ph] well now averaging to Our below drilling per average is from days. lateral, spud cost million time per than XX,XXX

We're at water-gathering of with parties. and flow cost capital and for expertise. cash deliver third value opportunities their another to water companies represents a leverage from ability water to shareholders of to Our high-quality partnerships, our through process water evaluating create additional opportunity low treat recover work in generation produced frac the and investment

expect We this call. on our update clarity in next provide to some

expect and We continuous operating cost forward the leveraging the overhead moving organization reduce by to that mindset improvement has adopted. further

G&A, and of sight I in in have performance, generation reduction capital efficiency well clear a flow now quarter line our a my improvements cash free runway a in going comments brief XXXX. the look to into improving operations Given of we now turn and and forward. the will our DSU for

reduced I'm XX% the develop pleased production sales remains capture facilities, second were natural basin. or ability the increased method to basin midstream to and was to our forecast wells Permian with, from Oil report Permian compression, higher than Midland better the that to the all quarter-over-quarter. in categories in-line due condensate primarily also best need by than quarter operational that of is confident development addition that in guidance. performance during improved tank-style the clear. the our acreage the to gas which QEP GAAP

drilled or using best continues results most are effective industry above is ahead methodology assumptions plan. develop spacing the the that implemented our techniques. stay and The us this completed to on assumptions basing believe profile, slightly of in predicted our XXXX completion DSUs to currently producing and their production our EMP enabling efficient our acreage volume go-forward's proper way when we debate the confirm While development that to approach,

with into XXXX. the have plan move the rig We forward two-rig program in third released to a Permian and

future in the develops plan in areas to XXXX of issues County initially in the derisked XXXX. Line Our Mustang before returning development Springs

The XX XXXX complete XX wells allows and approximately between production to grow We old two-rig XXXX to by in XXXX. expect X%. and between program

Our plan of growth approximately XXXX years delivers our over compound forward Under price. inventory this flow greater above five and X% annual X%. the than generates of develops rate moving $XX in a oil cash from plan, Permian

by conditions market program. full XX% current with Permian supported, to flexibility retains rig approximately annum to the Although a are the plan not grow per up

on the Finally Permian.

and encouraged this very operator offset looking forward are activity Ranch the recent the area developing by We Robertson of the future. acreage we're to results around in

Williston. the onto Now

provide flow quarter the anticipated the cash during Our declining despite production. Williston to basin assets continue

Drilling the early Vegas quarter-to-quarter in bed when wells We forecasted put the August. early the finished be decline on expect reversed now is will fourth and Vegas wells production will quarter. seven in are we in begin these the activity new completing production

Fort way to or to existing develop As have believe in We drilling the performance our Reservation of remaining is wells on on refracs there. the Williston, best we economical is new refracs accommodation the perceive acreage South most reserves our on evaluate continued changed that Antelope. regarding philosophy have way to the wells the now our the while refracing Indian South on Berthold we in-field Antelope wells of

all candidates remaining returns a Fort quality and price. locations approximately particularly Fort more South to Berthold, strong primarily identified $XX down Antelope delivering XXX drilling have XXX between and in Berthold We economic frac oil than high

the to note is over balanced commodity budget this drilling for to strong excited maintain It program XXXX. to are inventory significant flat and XXXX next expect development plan and flow will maintain also to We the important a the to We're $XXX million asset be to production flat channel, for cash of approximately million per a with upside continue annual $XXX compared on an next price years. there generating Williston years The next development seven we that anticipate plus being refrac XX to us depending Williston environment. annual to annum. relatively production and execute allow to years the a basin able capital several

to overview financial the With of Richard that performance. performance I'll turn our discuss plans, to forward high-level our call and over recent

Thank our before [ph] have everyone. Q&A. and some quickly second give a plans quarter on the results, I'll we Tim, around for open up you, conditional you better the and guidance call good thoughts XXXX morning, color XXXX

million is were higher the reflected quarter quarter second we EBITDA. just expense, XXXX, lowered taxes among compared quarter. first per first compared fuel the In which to $XXX.X The BOE and LOE generated with other G&A [ph] and higher of prices $X.XX up the things: adjusted to EBITDA transportation level

compared to at portfolio a the million net of quarter second driving gain income net that derivatives the at of first net associated liability the commodity our the was second the $XX the million $X $XX quarter, million, we liability of end million of with For derivatives of quarter. with income unrealized portfolio, $XX the a reported end

an In to addition, Haynesville Cotton we $XX reported the related down primarily million Valley. sale

to production contracts in We and about XX% off continue in basis during forecast invest commodity, excluding June XX.X as contracts we XX, which and million oil the covers XXXX totaling hold of of the second production. of swaps derivative oil XXXX barrels in quarter oil forecast XX% of

at were end $X.X was the senior approximately had total about We our million $X.X that quarter, nothing the of to which equity quarter. total of $X.X sheet, assets credit and outstanding billion. billion, In balance our end regard our billion, cash the all of $XX shareholder notes. of With had at was revolving facility the was

we the have the additional cash, $XXX at to million second about for the end Excluding the of investment ability quarter. incur

recent to XXXX year, of XX.X in improved for overall we overall basin of in at guidance. million terms guidance, of the With Permian better our regard of our several gas XX previous on guidance collection to range million guidance a production results equivalent, updates. midpoint to first half the barrels of the there are low recoveries increasing increase a to the oil based the year, X% are In

divestiture year barrels asset like increasing barrels, guidance XXX,XXX the in months last the for million just at million oil these forecasted the a are the XX contribute seven an approximately Williston of range full of of midpoint to non-core for basin to several XX.X XXXX. barrels of XXX,XXX the were increase to that We

increase gas basin. our We guidance a previous which for for natural of XXXX our are rates midpoint XX of gas Permian in reflects to DCF, lines the the natural guidance increasing at our range improved XX X% capture to the

to cost for XXXX increased guidance. at by our improved from the [ph] efficiencies NGL in is previous guidance $XX the X.X then lower leverage Finally, barrels volumes million us XXXX stride team's million to midpoint. to The and and capital significant at our the guidance million reductions increase midpoint X.XX for position

million our earnings in we guidance at guidance XXXX lowering In our G&A at addition release. by are midpoint. $X our additional details There's

company's As Tim cash flow to mentioned, the XXXX is at structured being oil. $XX plan positive

$XXX flow approximately $XX million at of free deliver our We of cash $XX of expect cash tax with million free will that XX% the the and expected yield based oil, oil $XX before free $X At cash oil million. $XXX expected flow approximately price. be development to around is share a plan a refund flow on $XX

sheet to a dividend based yield at Our us enables generate reinstatement capital free to improve quarter share the a pleased the flow $X.XX our per We're of price. ability share X.X% announce to on dividend extremely $X cash balance complementary represents shareholders. of and which

cash In fund the senior XXXX mature with sheet. million expect the of to balance in in addition, we notes $XX March that

we're cash a flows notes strengthen [ph] us paying positive at cash with be that have price our sufficiently but on expect XXXX year, extent our balance $XX flow structures dividend price, further our dependent we and came will to free cost even the oil in of next the allowing the we sheet. such oil, senior of Clearly, decreased generated

a questions. the to provide turn to call back the for call now before will brief Tim opening I summary

Thanks, teams a of investment of Richard. strength allow the program program assets to will of to In and on and operations Williston us selected highly this our summary, low-cost, with delivering high-return in a believe the the refrac we're drilling that opportunity our the through commitment. in Permian the committed our basin development combination competitive deliver We basin. quality execution high

dividend of a flow a corporate payment and reduce free program fair investors to debts. return and deliver efforts to concerted shareholders to cash soundly level capital and position of Our yield to the expenses a business overhead through our competitive with

we strategic and Our each reviewing them future and we outstanding of teams ahead been want have I'm work to through commitments process. product thank the this progress sharing ongoing our forward on while I about months past patience during enthusiastic execution and as results delivered our the ahead. their of look months for six new and in the the alternatives to performance have our strategy

questions. to over it turn now We'll

this Gabe you. Company. Thank with time Cowen Instructions] question-and-answer from At Our will question Daoud a session. we & [Operator first be conducting is

the I that volatile. Good curious still how little the Tim, you all kind commodity reinstating and the XXXX? discuss XXXX kind sorts then was plan good dividend on level leverage with a term dividend just I being with Hey. guess of morning, just comfort the balance of bit and through and that your maybe plan and of balance maybe morning, you with how the everyone. longer then about through

Richard. Hey, Dave. It's

I the turned demonstration think confidence and ability to shareholders. is to we the dividend free cash to our of and capital the generate tangible our credit flow that

felt generate for far tangible generating just of terms free year to right, do production the for it of our our You're volatile XX% us cash. the a foundation thing flow. year and gives to is cash the rest coming next that like It demonstration that's right commodity XX% so covered again, in in was of of confidence that this free about solid

got to do and You've the management in anything that's we'll on maturity cash liability coming the claiming due to fund we if don't delever March even front. 'organically' continue

Got it.

that moving to then appropriate think The helpful. spacing Permian I And forward? and If taking how question And guess represents just a review just complete, of some in terms the you thinking terms also about the does does just thanks, Permian water represent candidate? water in divestiture that the that of your issues the highlighted, development asset I asset? as potentially sticking guess the impact Richard. Okay, infrastructure also the That's still then that you spacing to Permian. of process

going the over so what are other The is news the County in very Will the some positive of getting Good Camp and only a last there main those, or minus Will Shale, through dialing one I in or more spacing, believe of we one also don't so saying little the about first. in or in in we and we're results downspacing think right. to A of spacings the the want plus the of take are but I'll of think [indiscernible] I that now like Spring, proclude I B some Line, represented bodies not some Spraberry Mustang appropriate. we're but the Camp

infrastructure, the excited we're water On pretty about that.

margin water lower a most, a For good solid We're infrastructure. company, there. a so small got fairly there's we than processing big

and little You the can bring water more it turn bit back back out water in the settle system, and clean frac market. then upsize out back a in

I think there's a good cash flow opportunity.

in be we buttoned to water our doing get a so So that a with the for between all update. what think some may company we're all ultimately much but the process looking quarterly Those more leverage very selling keeping we low us, We down we're control think at we partnering able asset. move are and and up the premium, balance frac it. can high LOE, we'll decide best a that, that's working pretty to next take quarter, but that way obviously But update at do. keeping maintains those hope skilled a get and there, with the infrastructures look governing at the contracts, that it and in next to an we can in up I signing we calls

sneak Okay, could. Thank great. I you. one more in Tim, if super I'll helpful. That's

when with thought about County Ranch from maybe guess Just block? why start Robertson Springs Is any XXXX, rig any development Line. could particular on Mustang what there reason on just the there? acreage Is I then away in the allocation the focus there and on moving

develop of we there. a have get we there. lands. back bit develop, one with We're some best we're in County there Shale The On [ph] is to the drilling County forward Line we obligation horizons point. to probably we Yes. and to look density only have reason Line, the excited over can that We're October good Spraberry do stopping university a really higher in going is the getting

look the back it's the look the to and This a stopping year you the with row in the after issue a all of If XX, get that chance tank at our we at us come a finished back give again. at data, will so really good end maps, point.

pretty showing it, is each operations bought horizons when strong on about interesting. results. we the going a Ranch now Robertson are excited really lot we super of and Obviously of have were really

to little years couple in get down we're while So information doing we're being get from future. of us DSU contemplating takes going be gathering a that all down. but offset But there, down big got and anxious there. It and we're to We we're probably potential pretty tests a out individual the inventory. test wells to a

again, Okay, great. Tim. Thanks

is question next Our Dingman SunTrust. with Neil from

I'm Tim, if Good wondering, guys. just address. you morning, could

doing free guys getting job nice a cash to and flow. You efficiencies are closer with cost

cash So my given how with you the question address the tank the would free style plan that you sustainability of be development flow Permian? all the

Yes.

have really I place, the completion can a drilling, Where cost in We really have our on at and get When perspective real with of does advantage a the drilling it's these tank-style. cheaply. on you that nothing sustain think from look our is speed and tank-style to it. we facility. cost a low-cost things

issues across back; doing to these longer we're to more no do the in to we going this to the across. other and come turn and going we're So where across, go the complete side corner coming instead road, of going back the a

use that, DSUs when it. facility developed do come we've As as previous below able just the we we're we the to back on

up issues the single to facility. able DSU the we're access XX recently, to had of we One that wells

that's do very that. way to think I efficient a

last we've done and I keep helps months. a cost that lot us actually tank-style maintain think to the more down seven the the efficiency

more the to the need things understands when I think come Everybody to deliver are cash. motivated. there's

us enables tank-style carry So to forward. I think the just

Richard think has I some...

go drilling well to comment up, you back $X the around about in million of follow a if about Tim's cost as million Neil, numbers Permian, at the before. the $X.X that's

about tell free XX begins you that numbered of right million, there. that cheaper, cash The confident free wells, G&A $XX that's reduction million to that's flow. million $X.X We're $XX the If during is. sustainable think how round cash you free cash flow incremental very

As $XX done a as remarks, what what to It's combination done regard organizational down with drill bit the a we're the as well the barrel. we've we've at we've of in said structure. prepared to through

feel we a just very, from sustainability flash it's about, and pan. very good standpoint, So a not

And I know up little and helpful, plan got rig just Bakken. you've follow the wells. on Very seven then lastly the the a guys. with one

Just optimal wanted there. to was you you've area. -- past In about level attack plan the mentioned three you to forget, or that or now or the the Bakken? sort have was that an of address four wondering attacking the with just so what you've really could thought depletion new just color any number -- that the I talk thoughts I'm finished, much. Thanks

Yes.

think the I we've what and most the five just a now. Bakken years kind next said matters we've that's pack, over studied hard got in detail but looked we of for good at the and

at of well. to we Fort inventory Fort of so develop on, kind ones in the that are are and a basic $XXX we and work really typical probably you prices, refracs then are in and and per drill Williston -- minus drilled over $X with that XXXX $XX, the easily that's enough but of at and And an and production carry the can wells $XX quite are our large F&D well, for that that I'm split pretty about for more talking very and a say of to XX% refracs did Berthold have and year. share completed have think at Berthold. and long years, just do decline to flat The cause lightest final we've higher to million best can an deliver such annum The a between drill asset that's technology, wedge going on of refracs through early a cash of Antelope and the wells to to South the activity I'd a refracs casual that all We the plus the very you wells inventory cost that upside bit strong, versus about about, maintain flow proportional XXX thing got then decline we're occasional the production refracs on XX a activity about or of primarily continuing We evenly a South flat that XXX maintain we're able maintain time. for the keep can we if Antelope about positive as very price, we the $XX believe. next you a are solid is economics line

guys. much, Great. Thanks so

Our next Harrison Simmons is question with Kashy Energy. from

you thank questions. and morning Good for my taking

incremental in you free in The are for first do flow use to the cash one me, when to going excess XXXX? dividend the of

Richard start debt we turn off over due -- out. to year. and the to it We then turn have coming to maturity maturity I'll paid then have off that additional following million a Richard. and debt did it I'll $XX build be will obviously that coming

do with the little it Yes, Kashy, sheet sheet, into if going managing be, get to the balance maturity, or the $XXX bit what to to out basis Permian that's is figure combination water the increased we'll to Tim want more pretty be the million we through and it mentioned not there, where million dividend balance regard million. million. with right total on so the annual $XX -- the up remainder, monetization. it's it The $XX money in there's $XX of other comp to it's

variety it's of a So really things. more through

But not our is activity. team to our increase

thought we reductions over cash the all can deliver We we flow volume of this. $XX looking a in frankly price oil a and have April, going last now at a lot deliver were to to and at levels months time six we the when have higher quite significant activity talked with I the spent this

gives X% or think life. the you you years, So next only a inventory about off of working for X% that long our year, for few the

cash delivering against wall you're on very positive inventory the pressed and a flow. You're not

stability opportunistic, periodically, key. delivering thing. the say raising this to only smart is really have way flow. we going a Williston We're confidence be of that's going in to do I'd level consistent but periodically the we're We'll the are focused drilling and very a on activity cash of to So Permian, fracing

we And about your to the Great. how price oil should ones XXXX? CapEx your is two How at maintenance maybe hold QX flat XXXX should think then in quick flow which and about rates for oil think Richard. into program XXXX? And cash neutral we

We're I of don't probably cash and XXs. if the I'd program position exact any have on XXXX At yet. some drilling Kashy, had we have course use the still high in derivative number. for flow flow we're positive, say not of flow I $XX XXXX, cash and don't we're to XX a barrel the supported by neutral ballpark, cash neutral in that

through putting those We of the price. a of to on. will cash starting That's sort derivatives quick waive kind before recovery neutrality flow at guess

of part Kashy? was question what, first Sorry. The your

QX the rate. CapEx hold maintenance to the Then

X barrels. barrel Bakken. we In Bakken flat the Permian, remarks X oil Tim's is keeping about to But by for XX%. at cetera, this million flatten that incremental it it's grows drill about range. the that million Bakken to only million $XXX-ish million spending $XXX the infrastructure about X talked probably is et This prepared we're of The so to going capital million $XXX million Permian year,

growth that's the I used of production if flat. capital our you to for next million at driven probably remainder year, $XXX grosses to keep think $XXX sort look there's million

typically derivative we We're is XX%. would end I've the at XX% on covered. XX% year average XX% the only built The the and to position price is about already thing

a end certainly build closer up and So we our about about other what to to on good to through carry we're plus. before through XX% feel to in this of ability carry hopefully next year to We done year XXXX. all into it year opportunities good in feel the position and the We way that lot think now. secure we've

associated cash sneak you or Got the creep what tell it. flows one Permian could water were during us more, us assets could you quarter? If in, second the remind with I infrastructure the just one could

barrel for all ourselves it out inter-company. barrel water. a be we Yes $X Kashy, a we charging had don't it's if wouldn't as break and $X.XX reflected It or

we number you as don't told be going get the of million give the So to QEP. it did number. the I It's EBITDA we internal. then to you was and $X not get

million you that's I the that, a we're XXx idea wrong handling worth with gives think that ourselves'. multiple $XXX because 'Oh, only

do if get closer we what that to clearly that, we as third would with trying to if with to we'll more standalone party do visibility As were to on something something decide system. do get to it that, system

All you. right. Thank

next with is Our from Instructions] Rezvan question [Operator Tim Oppenheimer.

said thinking about you Thank hoping going on maintenance a question. that roughly how folks. understand oil this had morning, question, day. that that basin you year. If Good my to last just barrels XX,XXX bit for barrels production level of the up we production. assume a that that XX% oil Richard, taking you little I was Williston? to $X Williston million forward follow cut, gets you for about to Is trying

right. exactly That's

quoted. we years the leveraging just depending to closer you that Years level next numbers XXX,XXX. the a be new you're you seven right how script drilling infrastructure confident year with of overall, about refracs, where will got exactly infrastructure put to to we over and higher. But the I have what numbers be facility you keep XXX,XXX and It about on you put we where primarily in, is associated years, little to XXX,XXX quoted think your on what think flat is the our depending going with much wells. to doing activity, I feel have the infrastructure

say Midland you the comments hoping clarity on the of comments inventory? get Okay. remarks on XXXX you come to would basin. developing I then Thank growth more your Permian in that. And gave oil prepared that the X% you that X% from was from for Did Was in your you gave?

you XXXX, the at growth. In Line, about look an get X% we XX-XX wells drilled, that year-on-year our when develops County of or Yes. X% about inventory and remaining

Okay.

you locations Just about at you're looking your then in to is extrapolate X,XXX what believe that, inventory?

that. us around XX will when to Robertson all do to XX, giving we area. extraordinarily good that We other good -- That We're We're zones X,XXX continue look gives now X,XXX. looking right the Ranch. number Obviously change in the guess to [indiscernible]. in offset time, you results area but activity you might at we're feeling kind of code. with like being that that

I Thank this for of just defend almost was about if the EBITDA, hit equity then reason wondering again. we of a dividend BOE could the tactical first around And under Okay. element last to I lurking in, for leverage and expense could The see if one to interest sneak is I the pressure? company you there's if $X.XX X.Xx. you one talk asked half XXXX on given it's if we that. is annualize been to

can talk do little the more why to as to in you're stronger felt of you opposed now need this about when So you a a position?

of it's of mentioned. combination things you just think I a those all Tim,

I think it tactical. is

like I said think free earlier, tangible a it -- flow. belief tangible I our cash our is to demonstration, ability doing in

we're we year, next be with the balancing we manage need we're how don't foreseeable going what a how due to and have the then the it is to cash XXXX. drives, to anything on be also leverage going $XXX We're and we're just that revolver do how $XX a million go-forward next basis. to we that due what basis I in million what We think position reflective with comparisons to our in on drawn think the deleveraging is revolver, plain on the don't going cash. forecast of for drawn go-forward manage that's the

G&A million $XXX in half million with over I as be cost. think the quarter, result a of the was first $XX restructuring of of third year is the The it first challenging. to need

of we or second your be leverage or deleveraging, and $XX seem down year, Xx annualize the you the opportunistic to we'll If how of dividend, do time XXXX of flow it it company, pointing certainly money into importantly the we south more that what million the we minus million the be generation of would cash call midpoint second to half and manage quarter a of relative but to be like let's about goal the forecasted free is Xx the by can to with that or plus well $XX be get X.Xx balance. good the we

you. Okay, thank

Our question Betty Credit Jiang Suisse. is with from next

I there roughly while the Permian Just cost and high activity that is also savings a understand the seems XXXX? doing morning. not. to in what's and Bakken. in in or next by activity just have trying much outlook you're incremental Is a couple me higher quick XXXX been Good on year being question in what's a that's frac of to CapEx not level captured It that's flattish assumed wells the just XXXX. of

what about If you year predicted talk at been the all a look we've cost those forward. save forward bringing drilling 'XX where mid-year there we deck of kind and we we money down completions cost, facility is on and

about we're completions. $X.X beginning continuing cost, So of pretty close the down million activity per delivered at the that a to, to facility includes rate we're down, and bringing that amount. and at the drilling dollar this that was all well million feel We're that cost, to higher lifting we year $X.X bringing run into

intensity, you to that when and and capital the leverage for run facilities that trying what lower So you lower and math through wells. you also is at is coming that the together existing do do look all we're of yes, intensity to

help plan map detailed most So I out the with we some right, you're you [ph]. think of could certainly

fair Got it. it's reflecting But to ways? both structure your current cost generally say in

Absolutely.

case then a years? put a has revolver the base million follow maturity up does debt. $XXX the me, on Is the assume fair next current Okay. of Haynesville? remind rip And sale reflect could then the to And you over the two it on that

contribution EBITDA assets capacity the the the as well Yes. of the as the covenant under debt does assets. incremental contribution out Haynesville million PDX perform The of $XXX Haynesville

revolver just incremental that's by were million the the as generated were refund next in they're if or So trailing we is year, to those the let flow to year We that just in pro the balance quote $XX because quarter tax to debt combination months. XX last debt cash the half that we that that $XXX fourth we've the forecasted $XX forecasted of sold cash free as that The putting in expect XXX all well do forma everything operations maturing have, the capacity not we the ensure million introspect operating for revolver put We're projecting even they're and that that of next the scheduled of million to we're as cash it other of actually mature available going $XXX matures. to that sources. from when to activity mature not on the XXXX. and the combination of on is us bulk million

Thanks that. Great. for

of to reached session. call closing now the We turn the have I question-and-answer Cutt for Tim remarks. end over will the

and We're with continuing excited look Thank in a to Thank weeks. the thanks of forward position competitive for you you much days coming day. today the the have substantial us. joining we Have opportunities very about us. dialog all ahead joining and the for the We much of and call good very today. you

today's concludes This conference.

time. this your for your may disconnect Thank You participation. lines at you