ConocoPhillips (COP) 8 Feb 242023 Q4 Earnings call transcript

Welcome to the Fourth Quarter 2023 ConocoPhillips Earnings Conference Call. My name is Liz, and I will be your operator for today's call. [Operator Instructions]. I will now turn the call over to Phil Gresh, Vice President, Investor Relations. Sir, you may begin.

Thank you, Liz, and welcome, everyone, to our fourth quarter 2023 earnings conference call.

Vice Executive are Lance, of Leach, Executive Chairman the Bill today team, ConocoPhillips Adviser Vice call Chief CEO; Ryan and including and Bullock, President the of Lower several Will XX, Global Dominic the Corporate and Johnson, Operations; President, members leadership Sustainability of Senior to Financial Strategy, On Nick Giraud, Assets Senior O'Brien, Vice Executive Olds, Andy Officer; Technology; Lower President and Kirk and Operations; Vice Macklon, Vice CEO; Senior President President, Development. and Vice XX; Tim President Planning of Ryan the it team kick questions. A off which available be remarks, for your after and Bill will reminders. few with will quick opening

financial you presentation, materials and First, with along a can Relations website. on supplemental which the Investor today's release, published find slide we

call, current on factors in this filings. statements during due expectations. in Actual we our today's will forward-looking to may release and differ SEC noted make based Second, periodic results

reference to to website. And measures. be to release turn Instructions]. With our on will that, GAAP remarks, Reconciliations and prepared found when over in I We we can the corresponding nearest some it Q&A third, move measure make Ryan. [Operator the today's to financial after will non-GAAP

execute everyone shareholders. its Thanks, another our conference to call. fourth commitment the strong as to for Phil, It to returns quarter you on and quarter thank to continued team was our deliver joining XXXX earnings for ConocoPhillips

at We across strategic Arthur we been to record preliminary durable of and across and looking continue replacement milestones at XXX%, also diversified able an price ramping Alaska up our through Qatar, the opportunistically agreements. delivered LNG financial triple remaining at achieved deep, back of season. our our several And strategy and initiatives. demonstrated of we And reported execution delivering fit reserve proposition global accomplish a adjusted Willow the progressing construction asset all Now ConocoPhillips production were FID base. or employed We acquired generated in to return capital and XX% to attractive We a regasification our basis. of returns-focused ratio project several expansion winter this that on our our a FID-ed Surmont and stepping our to solid trailing replace across our Port on offtake portfolio. We're mandate. this cash have XX% We ability value reserves XXXX, aspects several in key advanced framework. all highlighting and XX-month shareholders. We while of XX%

Methane of our return also which $XX We was shareholders, to further we to well through-the-cycle capital billion were targets Initiative XX% Oil a by Pathway And Last intensity in XX% awarded Gas XX% XXXX the a on our Standard reduction annual X.X. our recently emissions delivered to baseline of strengthened plan commitment. the from excess greater spring, than GHG to designation and Gold Partnership

ahead to morning, This looking $X we plan year. announced XXXX. a distribute to shareholders Now this to billion

accomplishments execute of conclusion, on once Meeting will cash per We outlined of as also into Investor organization. the last cash to to proud we and as be earnings our of the $X.XX of VROC business reinvested share our and Analyst flows our first announced the quarter. remainder year. In The again, flow continue at for the plan grow entire I'm a we

returns Our cash decades to and flow competitive generate portfolio for well come. is positioned to

over performance and our fourth to XXXX call to the in guidance quarter turn me more Bill our let Now detail. cover

Eagle Fourth of XX of We Ford underlying representing growth the underlying In per quarter we roughly the per fourth full Ryan. barrels X% averaged growth Lower underlying year X,XXX,XXX year-over-year. adjusted produced from in Lower year-over-year. from from growth X% was for day Bakken. XXXX XXX,XXX a Permian XXX,XXX represent production which X%. and with barrels We the the XX equivalent X,XXX,XXX growth $X.XX also. X% per oil our day, equivalent XXXX This and of was produced quarter, share the Full oil underlying rate Thanks, generated consistent XXX,XXX earnings. year

flows. capital for to billion, Full and of which $XXX cash $X.X for APLNG Fourth longer-cycle $XXX $X.X CFO which included quarter were million. projects. Fourth included billion, expenditures this were expenditures distributions million included $X was Moving capital year billion, projects. quarter billion $XX.X longer-cycle

we of XXXX. regarding to capital, Now $XX in billion returns shareholders delivered

buybacks in quarter, We ended $X.X dividends we billion as billion. in and well investments. returned ordinary VROC investments billion year and For of was share $X.X the with the billion $X.X This via as and billion fourth $X long-term short-term in payments. $X.X cash

We the This underlying translates in acquisitions dispositions. X% day. oil Turning to to forecast of per X.XX of million growth be to guidance. to for range and forma equivalent pro XXXX X.XX X% production barrels to

We XX to international. expect this well be growth between both balanced Lower and

impacts to barrels about Our XXXX. XX,XXX which full-year forecast XX,XXX XX,XXX of in turnaround includes per higher than day, is

concentrated be and when quarter Surmont every turnaround, the completes turnaround once in X-month a Now occurs years. X that turnarounds expected third to are

For production in barrels guidance range or oil per X.XX to X.XX to equivalent growth. of the roughly million a first day X% quarter, is of X% underlying

turnarounds, While day the it barrel fourth minimal XX,XXX will include does quarter similar from weather the per January quarter, to impacts. headwind a first have

$X.X $XXX full of first For the APLNG, the we for in year. and expect billion million distributions quarter

to corporate segment that's in $X.X expect range to XX% with XX% XX% our to billion. essentially $X.X million, expenses year-over-year of onetime $X.X we see a $X.X exploration be rate XX% range shifting in the adjusted prices, to strip million costs billion, to $XXX items. any full in that's taxes, cash cash to costs $XXX to for net effective to and to Full unit corporate guidance. billion. DD&A are is basis. expense year representing expected to We an $X.X adjusted year be on And in flat and range be $X billion And Full the Now rate cost expected tax billion tax billion of range. operating excluding is loss effective guidance of a the year

guidance billion, between to million capital is billion $XX.X $XXX year $XX our includes range interest. For which million $XXX full to capitalized of spending,

LNG to in for remaining tieback XXXX bridge These account $XXX of a XXXX and of deflation discussed $XXX of most presentation, to million Willow in spending, $XXX prior $XXX from Now projects, to Norway key of in million X our and in our These in $XXX in of and provided to on the million earnings million at we've we some include variables, XX% calls. of to on the expectation Montney. Slide primarily increase benefits, which the to $XXX addition X acquisition of to second are year-over-year mostly a of $XXX million offset XX. at the of with subsea startup a decreases billion million the following million Arthur. $XXX the Port the $X lower spending million Canada lower Surmont Lower million rig increase by the $XXX

to half spending XXXX more construction the expect Arthur, to the we the our first is Willow, towards weighted we timing this will for For expect the of equity be season. first weighted that Port winter quarter, of year. also and with And $XXX heavily in contributions be of normal consistent million

CapEx could billion. be a as $X a quarter bit result, Now first above

we quarter. ended up, year solid the So to with wrap another operational

shareholder our initiatives on durable on distributions. our and And to remain highly portfolio. diverse deep, we across strategic continue deliver our We competitive

to our Now remarks. the it back start to Q&A. the over I'll turn operator prepared that concludes

Instructions]. [Operator

Mehta comes from with Our first Sachs. question Goldman Neil

were Ryan, XXX,XXX and barrels want number XX, about I barrels year that wrong, of a to many to you We production day. up us XXX,XXX to predicted of to the closer a going Lower the day. was XXX,XXX correctly your last thought ask XXX,XXX had is being number be to

So XX tie into thinking development exit to U.S. plans, about as own you Lower that year? over this course about you year, about of how how are think thinking production oil prosecuting your acreage exit the and the that are you

of from U.S. de-acceleration Thanks, No, around driven the number efficiency by rig we the in a see rates. rate growth Yes. factors coming the Neil. of a and bit

So That's We -- total growth growing in XXX,XXX XX. we're peg liquids. to barrels Lower XXX,XXX -- of but the still we the peg equivalent. oil that would at between growth

we're some relative still last growth. shale, from driven Relative Lower primarily -- the we our we entered what to that single-digit of out that the of the coming kind yes, to So kind growth range, in of Permian same level to year's XXXX. coming activity in -- rates low Lower the modest to out more growth similar see into of U.S. XX, on expected XX, pretty but much

Lower into don't program what XX and XXXX level So we to we coming at a at the don't the in this similar time, intend are ramping -- be we intend at. to year exited our

question will Bank with of line next come Leggate from of America. the Doug Our

sure Ryan. I Ryan guess or one. this wants who take thanks, not to either I'm -- Bill,

for capital. is capital dividend I'm part your see that portfolio given really so So know B it in what of couple And or to a interested we're of you're to here current level. If currently cash dividend the evolving as you maybe a that -- sheet sustaining that balance about a years? relates much it breakeven relates not on to to trying you how always get post-dividend spending I period to to cash how may, breakeven whether entering as is curious that benefits as priority we're returns that, elevated think breakeven a but context,

question deck, can a and give but around let mid-cycle at in, AIM, at specifics answer I'll give Doug. kind I Dominic he of let pretty out to can our breakeven, details what with that I can few think more consistent it's we Thanks, Yes. price -- Dominic specifically. roll you the some laid more you

Yes.

take at Analyst average $XX our as last flow through cash first cash flow the half maybe prices, our free That of free we plan, highlighted breakeven, the April, for you starting you I and our plan, XX-year our about mentioned. So is back WTI. with breakeven to higher mid-cycle is Meeting

increasingly half As that plan in of first lower as plan projects have the the XX-year stream. of half sort then during capital second and pre-productive come we on those of the the

that's so. flow that add dividend, So And cash to free would additional now, on of our $X $X for then sort breakeven. an you our right

the balance sheet? cash helpful. That's Maybe on the on

balance really we're happy at on the We're right sheet now, sure. with Yes, Doug. where

we long-term mentioned. $X of So cash year billion billion with exited and of $X.X like investments, the worth I

a and turns, debt-to-CFO we're post-Surmont. ratio spot, net at good X.X in really that's is Our

sheet company. is So where for we're strategic now. balance the quite a asset strong right the a balance sheet And happy at having is with

We continue year. billion of of as this good why that's view $X fundamentally to the we such. feel reasons about really distributions it one And

a we of softer arguably In relative Yes. light where to -- XXXX. commodity in the price started

Read Our will next Wells with of Roger Fargo. come the question line from

out the thoughts, how just there, and be to year. you last guess I'd that's did anything elsewhere? I to approach Ryan, the like XX side. about M&A going Lower There's think get on Obviously, cost-of-supply on or it transactions the acquisition thing Surmont your you on still front your

-- to we all on. Roger, there a think come there's of in Yes, obviously activity lot along our business. M&A And be the think said we are appreciate business. going consolidation that yes, in going surprising not It's needed even, as more the that's yet to about that we've

changed. hasn't approach Our

cost the of is X Our out years. of to we've market X, last we that think executed some approach activities. We the That's laid think framework about our about M&A over supply. the we've how

diverse that again, market. Last by got low is The asset price. to cost and plan a think framework, underpinned pretty strong, the how mid-cycle of supply, fit think So to we year, that it's make we got base. a our plan It's to financial XX-year about it's we better. outline

of a approach way I to M&A approached we the forward, think see any And that we M&A. make better dictated about inorganic think got how consistent. So to asset it we've way see finally, make years. and the really to that's over a through to then plan number And that got we as last is better, going

will of the Nitin with Our Kumar from Mizuho. next question come line

mix this both know channels variable reduced how was the who across the take one, return but the we billion you about very Ryan think X or buyback, the and evenly cash billion. year, between $XX I don't those Last your fixed target Bill, to should XXXX? the from in to dividends, it and $X distributed wants

Yes.

shareholders. really thing total So start $X distribution. the continues an plan happy on. be return we to to we to what important with of We to think we're billion initial That's what year the focus that's matters the and think first, quantum most

Now the when factors number prices, mix, look own a different of it other commodity price our and we at stock to and comes considerations.

$X.X spent seen that $X.X you've buybacks weighted About would in be so for to to we XXXX, we shares. bit billion. total about continue And And XXXX planned of mix our the flat of shifted more XX% buybacks. our essentially towards distributions. what we've our put value billion, a with -- That our like that's

with and cash distributions cash It's component continued mix said, share really the really and a that, a XX% mix. tool buybacks. And expected on in of that of And we our solid as cycles. our to per always against us our provides distribution that's flexible the VROC. represents represents about think well total So both VROC prices balancing as targets to to we've give adjust serve $X.XX

line question Byrne Jefferies. from next the of will come Lloyd Our with

details Thanks and for plans or whether so then and going hoping thoughts your positioning to maybe the administration's LNG all on Conoco's it the Ryan, capital impact any get was has far. forward? I your your in pause just particular, on

that unfortunate, fundamental better it's ask I a we're have Yes. we Bill doing feel more to what the more LNG on just and feel we makes as add driven good. it's well. pretty think politically details do little Thanks, us Lloyd. about in than a because permitted. bit But clearly It side of I few can what maybe chime

a think more X, about shortsighted long it provide I Bill it's hopefully, can X term. as maybe thinking specifics can the few about Phase -- was we're of we the in short Phase around implications Arthur in I what be how will Port announced. think the fixed term,

fully really but is Ryan. X. it's permitted. permits Port It's Phase It's in agreement We're got permit. trade got, environmental agreement Sure, only pleased not Yes. free non-free Arthur place. that trade permit, It's

in seeing Port now that We Phase makes more pleased to right X. think you're that So we're what quite actually valuable. investing be Arthur

fourth And think We're is low We going so our we of for come. at year to developing that X.X offtake. in on be of million we off a good project resources a you continuing decades diversified tons intensity the of on focusing in look for that to a of million fit we're ECA number Sempra's coast gas announce of MPL it's interested X portfolio And to the years. greenhouse opportunities portfolio. And cost quarter, strong pathway. remain low last at market signed transition Saguaro. X.X saw from because LNG And supply, meet us in west the tons Mexico

that permitting that fit framework. a we're on for continuing look to is regarding opportunities Port now, spot. So in great really But right your Arthur question

Okay, great.

change it going any doesn't So plans forward?

It's not impacting us right now.

the line question John of with will next from Royall JPMorgan. Our come

Willow. on is question my So

that. some seen speak around You you speak cause in we've I of and And the you're to assume way can then confirm that which what an build maybe can just terms can have as now of the confidence sanction year the post-sanction, beyond out of that, specifically. construction to flow even some the any have in organization lawsuits, hoping 'XX you -- progression news maybe won't delays, the you to for the and in we just accomplish plan but

take that this Andy. John, is can I question.

legal give update point had So now in start at a yes, you activity and bit a your you just mentioned, also project a that because not fourth will -- nice with the a given fair it's be question, of where start quarter the But update. of about legal I'll on as we front. positive a talking can bit pretty to we we

Slope. And legality just then summarize pleased both where Alaska are on separately, allowed of and to upheld Circuit ROD Alaska proceed BLM. So now construction we're the District of to issued right be is Ninth sort District Court the we North the work very Court that the the the of the

their this all the before, really that approvals. a to requirements the we to them So Ninth thorough agencies legal said cooperating process as to but we believe the you being for grant satisfy BLM currently mentioned, is and Circuit, appealed as conducted

us gave FID rulings make decision. positive certainty these the to the So

gravel going be to pretty the terms the we're also in We're mobilizing the beginning now who second pipelines. roads, fabrications. how are FID, facility And taking for our on up making North with laying of construction on part modular pads progress quickly question workers winter with right the execution the pleased then really significant itself, since your gravel facilities of Now activity. the our second into building some we're now Slope. ramped season We're and we've X,XXX

we billion $X be We're the X project XX% the estimate range of unchanged production just exposure first the so are or our unit-rate you the point So of more capital to contracts. inflation. year. limited have progress. that under either for price firm issued in give bit those a now upper where contracts billion sum these a XXXX to to we far, And of $X But have to in at of to at expect by a do of contract the annual billion end $X.X end we capital the expect remains to communicated per $X.X And scope then of billion. And previously kind we to we've terms lump so now contract 'XX. under agreed quarters of of contracts, have that then XX% future and color have

it's with very major Willow. to this with But we're fast building pleased. still now what Willow. great really teams exactly really full we it it's important That's in early, see actually to we're get point on a it's execution but like up, and projects, to doing mode, just focused So all at off our wrap start

will with next of the question Securities. Truist line Neal come Our from Dingmann

how My production you're thinking question is more of on kind about growth.

and year would stable efficient X if quarter, certainly to boost those One, kind laid the first growing from have back to around fashion? And then even and comes follow secondly, savings production out in what for for just for plan that. guess ground couple I'm to the of have You growth. Permian. or [ been, than the flattish more more will go take of wondering you when pretty, as it Or savings to you you macro a continue you your large of a I you I -- peers call, year. the back questions to be bit shareholders a production that sort position, be how some bit your continue to those in more? the responsibility view -- ]

it's here. Dominic Yes, Neal,

really activity mean, there. that. I get Lower take seeing first one, of focused we're holding modest year I'll some think versus and on -- We think probably there we efficiency I year. this I actually. like there's the XX still activity our were all, We're we questions last X there, -- growth flat

And so think we're capital more suspect on -- we I because hold efficiency. around. want there we and focused there, things if pretty we flat I did that don't get felt headroom some was efficient would just much We to our swing programs so

an that's terms of our returns. is focused not return the growth remember total really We're plan. of growth. outcome It's In a outcome growth rate, of an chasing on

so with modest with pretty pretty It's what happy sort level And that we're at of said growth. AIM. consistent we

of terms a I just color, sort underlying give In profile, this year, the lot this the across range international we you Bill we're X% X% last overall not of in the just portfolio. our of bit is seeing his prepared thing versus remarks, of in growth growth year the that mean, And a this to but expect it to good mentioned production of but Lower XX, about from year. coming also from do

portfolio Surmont top to XX% see the additional course, nice that. And diversity of through. it's on of top So interest of on that, we coming have of growth, organic the then, that

for shape have we the QX, QX, XX,XXX impacts. the In terms Bill a QX. see for we mentioned quarter, by day And have our fairly year, we'll weather in growth that ratable turnaround the about impacts. except in barrels then of whether, year-over-year

Most every third month-long have at a of be year. includes will XX,XXX So years. about quarter. sort And to turnaround Surmont, in of XX,XXX occurs barrels that have which the this X we impacts of day that we turnaround

coming very is So -- just all we're but pleased where from. anyway, with the growth

committed We focus steady, with the to level program pretty the And are growth. of think stable pleased on I we're and efficiency. keep

maximum, just maximizes of or pace up we returns our teams want find efficiencies constant to don't reiterate, a execution our the like the either that -- the just at of might returns. and whipsaw gets down. I the just really gets -- We Yes,

line Our Silverstein the next of question UBS. come Josh will with

touch last of in So the had Montney. I to highlighted that growth is wanted just you April one year. the back on This areas key

those price processing of is there? And know to the in started know natural way I uptick facility thinking environment you're about a as the mentioned the more I You there's I along development lines, this. back related the it's change how than Canadian the year. year in only that that, XX% small well. spend figured the be same for half but liquids, up might Surmont lower gas

be help any great. would So there

long-term context in gas. have just taking a the Maybe it gas Andy. putting is natural first impact question, we natural your And is user where of, then -- impact gas, part also of This really our actually our doesn't our doesn't of that sort of plans. Surmont position really sort the natural are in development we

doesn't our change that Montney really So development plans.

give I going a in think additional the also of a the grow in Montney. in numbers the equity day our but then modest to the of we growth to terms making progress to in And the in production sort the a adding it this we 'XX about in barrels XX,XXX of second here Surmont, you expecting terms day. XX,XXX the that's of ramping we're was the Canada, And be just context just barrels where year. And our averaged now CapEx, quarter. have on -- the combination second we're you're seeing Montney, throughout of in fourth year full rig are year. We that of is rig. started We've CapEx

question Bob Bernstein. line Brackett from the of Next with will come

impact what at parts. Willow the looking triple-digit kind that? of of play organic I wondering reserve was on ratio replacement moving of some sanctioning did I'm and curious the

this strong Yes, And portfolio. mean, to strong we're replacement contributions seeing year. here. we're across organic again very from reserve total Dominic see pleased I Bob. and the

piece of ratio our all, XXX%. We've from of piece, And the Montney. So on organic really first that's there, excess strategic then side, advancement replacement organic XX of in yes, the Willow with got resource is development well a its Lower the for is doing us. contributions well plans

projects, an initial So and as we the the develops, -- bookings have project major that's booking with that on book you way works you then normal.

initial booking XXX million on Willow. -- about our So barrels was XXX

So up million wells project, case base develop that's And sanction. approach we'll on that and estimate the resource for what we we XXX barrels Willow. then our of the book development see as towards

So yes, the that acquisition. the of course, add resource very about benefit -- barrels reserves came in strong with the and XXX there. And reserve total on replacement, with that we came get A&D we million of of XX% the Surmont

So us, again, year is total strong another of which replacement good. reserve for

will Wolfe Margolin Our next question from of the come Sam line with Research.

all for over mentioned some that you called detail half on the the you've Maybe activity levels have most is seems commodities, today. course significantly it like of right out. the Ryan, XX and driven consumables follow-up by Thanks It but overall There's a now Lower 'XX. of capital. cooled deflation of

opportunities trend. of not in And you the mentioned, out XX if term maybe as life you move capacity cycle to think different add you're because, more this where presents so are even some scenarios. deflationary I visibility around activity the in was plan spending going Lower you we -- wondering really maybe to And to that if and

that because our plans that frac follow when specific it's and and with other out Yes, of the the a look all I there. think activity the at in can But rig details. certain have kind some don't things we consistent like, change, support ConocoPhillips, consistent a the but And areas goes the Nick spreads the I let the think and business. XX to see we on of side opportunity of of I we of up deflation, I tale term service Nick Sam, certainly, Lower can to let in of opportunity. and chime different business, couple counts execution commodities And spend, any

our Yes, to you Ryan mentioning, look it's was at flat like activity level, XXXX. again, Sam,

So number the teams efficiency, we really on deflation, slides it's going just showed prepared and as stable and frac in there operating driving spending crews. are to we you categories. mentioned, across as efficiency stable range then focusing capturing rigs, that a capital that posted, And of the

So vendors on we've efficiency as that just XXXX. of little got efficiency with well and at looking rigs, them longer-term our contracts up. Typically, at well-to-well, see thing OCTG, for look we we horsepower. We'll as proppant the term level-loaded we if contracts key focusing pad-to-pad some all as capital to our operating got we're spreads, want But across program rig frac far have the the in us as really steady-state especially on and e-fracs. the is

next the Our from come with Sandler. Todd Piper will question of Ryan line

Bakken. hold maybe same Maybe couple production of been has question the for the in to Is XX the production Eagle the to if And few forward? think for on could Ford modestly the I What's about ask or The over way last assets. a us right Lower quarters of goal flat declining XXXX. it the or there? direction decline grow going

Ryan, actually there. as of completion on decision expectations. drop. we've and QX, we our looked at Ford. that It production about, Eagle look X% efficiency. talk the met concerns That no our second had operational you the outpacing are QX or XXXX, There's was productivity issues conscious curve When efficiencies just first talked Yes, half to drilling a as we type

to good have. So problem it's a

we've of down what kind of a, So decided worked DUCs our the XXXX through take gap. frac an of level I to call working and operational second on half

that period then DUCs time in frac reinstated we've crew. XXXX, built of the some and So late

records. really very production So some really from We've Ford Eagle it's going forward. Bakken, similar. hit the good intentional, performance

there we the legacy Bakken, program XXX,XXX got level equivalent and barrels day. We've steady were a well. per as about hitting think asset a You of long like a inventory. up have We'll

question come next the Citi. line Syme with will from Our Alastair of

questions little the and to wanted to just return bit I on circle a Permian. -- around

chain about cost include I you that and of numbers these sort and costs -- efficiency. efficiency and some because up supply guess, assumptions April, You've mentioned it last with forward wrap of cost presented supply

of So I your of a i.e. on cost or where get assumptions, moving to just you sense those down Permian the think supply? to up, sideways wanted you stand relative

what particular into a in up well any downtime, day. a we XX% hook we step had operational continue wells but completion and efficiencies, we're hours in just good side we'll continue itself we our can board, frac out talk manifests overall we thing pumping related have pad, success X-well hook improve first the just on seeing the of as we for on per kind also therefore, to in -- kind to up essentially drilling couple mention have quarter-to-quarter, suite and simul-frac, there, of that To example, we're well hours can you all per different I'll on side. to to completion of application we all see zipper mentioned, I of to really that of Eagle efficiencies. of quickly efficiencies D&C, just the have the differential the we're We've deploy from key as this to see the the efficiency pumping Ford. year-to-year. A field. to stages and both more the drilling both have super Yes. about improvement of I'll changes that here out items move that Eagle and is across day we a year-to-year, well where if Probably improvement few. remind in leveraging Ford. And XX% And down and assumptions those opportunities high and continuing as the

So that's successful. been really

and plan, optimize success I'll demobing X so on have improvement the We're side. we X, wells Pad in -- seeing demob XX/X promising it. And We've to Pad remote I've we also frac troubleshoot drilling mob we where the mentioned to without we're results, where we and good entire just rig a the that that move the rate that we frac, the pivot can the to intelligence got in On don't finally, can Permian. can steer penetration before. then of can we're real-time deployed out we and drilling there. seeing group that really fleet We've monitoring in XX% spread,

we XX% per again, are on to through So of improvement side. in seeing mentioned combined in all the those improvement XX% day, completion as hours efficiencies and pump that, I

from the with Paul of will question come next line Scotiabank. Our Cheng

industry doing are the have consolidation that need you will for guess not in you have Ryan. you I in past or the share. it's for it's your maybe shy more that Ryan, Bill maybe and said proven

either deal, how it sheet willing from to when how deal. today, Or your to standpoint? your or you put right that from debt? a number fixed better is we the it For for there the or the sheet distribution at a much current fluctuate looking year, understanding? And or some will there sheet a share that least on that Is balance worse is commodity $X billion than a you stretch amount the you're this can the standpoint, ratio are balance If right so you're at or assumption? prices, balance your much based willing on of a better anything get

Yes.

start there, billion, a The said in last let Paul, is in me point. but You we as $X stuck of our kind release couple with starting first. one the a

And approaching Now, mean, WTI prices we up seen commodity down. recognize it the pretty and $XX, are $XX. seen volatile, we've both I approaching we've

folks shareholders we're look at point. And starting well our billion the the our view and $X a above return to our commitment mid-cycle I So to well as pretty again, that history. We're we comfortable should XX% above capital price. feel think

through you adjust. starting So a should we'll comfortable go commodity that we'll prices and the for It's the year. of see how us, the feel remainder point

pretty company. A The look, credit We're On be to cash. asset the the we an X.X is maintain for rating. balance will we sheet net balance -- consider the sheet We've second got inside to strong turn company. debt part, a significant the

-- our for the can the the is $X basis. Surmont, willing gives We've but other do setting, that to we've fit and makes asset side, we've other we're price to it's sheet a spending way and the those present volatile the again, company Paul, to means of kind to to but cash the execute able at, the our that it and and So funded really made that on at look on there's and sense acquisitions. that. and battle -- fund been us grow some with that case-by-case if they we opportunities return with debt, cushion M&A both level we billion. We'll done we're these framework. like what it themselves XX-year that commodity money the where used particular in -- have something at our better we we And -- we'll distribution those framework organically to plan make starting be fit execute to better, financial

So on present it's do. might that opportunities any to pretty we hard say depending what themselves

you're there a willing debt transaction? single maximum a is Ryan, to based add on

don't not I stress Paul. I don't have the -- balance on going a -- sheet. to it circumstance, depends we're the

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will come question Leo of with the line MKM. Mariani ROTH next Our from

obviously, some some any pretty well you decent is I having that Montney during talked growth of contributor maybe seeing? the that It You there chunkier coming color above which, of could would year, around sounded projects be the growth Lower coming about you're in Canada. just like detail online XX, some this that as that the and other from a helpful. international so be nice some international might well. imagine be Can year, the

Yes, Alaskan is discussed right, have call. good can projects. of momentum you're a Andy. this on actually international quarterly that take sure. And question. on We last I bit do we detail some the This our in

from give just you So portfolio. a across coming the feel where about to they're

second Surmont, Pad in the the up Bohai second So first come months. the XB and ramp one ahead that Also the on in came gradually in X in to planned we is online production online October achieved XXX one Norway, first oil in fourth and achieved in over first Phase of we as brought schedule expect to platform we China, the then in December, the of subsea partner from tiebacks coming and our X quarter. In December. expected

in discussed, Montney and quarter, really expect also second growth CPFX In the the see we to of previously from start a XXXX the third I Montney, production in you in and there. start ramping rig. the As CPFX allowed to the us

questions spread the one of of happy in total from. a A&I international earlier said have going Alaskan year. part And to with sort we of really this company the across we're think, So the where is coming be growth as the that significant we providing I is growth

this ladies gentlemen. for and participating. you, This We at you Thank questions Thank have today's concludes time. no conference. further

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