Cimarex Energy (CIMXP) 6 Aug 192019 Q2 Earnings call transcript

Good day, and welcome to the Cimarex Energy Call XEC Second Quarter 2019 Earnings Release Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would like to turn the conference over to Karen Acierno, Vice President and Investor Relations. Please go ahead.

everyone. morning, Good second our conference call. Welcome quarter to XXXX our updated presentation and afternoon, was on to presentation posted website we call yesterday today. An our may reference that

of contain As differ to what statements, discussion reminder, from could will discussed. a a actual our materially number actions we results that cause forward-looking

for forward-looking December our XX-K risk and news of the our on latest release XX, was and our should read statements which yesterday, You in the filed ended year for XXXX, disclosures on with associated our our XX-Q, factors course, business.

Margaret CEO, with operations We'll any answer our then Jorden, our John well COO, might Ford prepared you begin replay questions and Albi, production including today an [Operator are remarks overview Joe here A Instructions]. on from our expiration, cost. Tom to will have. and you update of and Lambert

over So Tom. with to the I'll turn that, call

in morning. call you, a good thank on Thank and Karen, quarter the challenging to all us Cimarex had joined a that market this you second environment.

midpoint. offset XXXX. annual it. our guidance Mid-Continent. to oil prices CapEx Permian this flow barrel both and growth got with growth in an guidance year is per in and had the our grew of equivalent production, projected oil Oil while raising expected almost continue growth cash Our remainder by and the the the is and for XXXX into came X% X% the day our to Total volumes oil declining Commodity expected impact growing sequentially. midpoint We range. earnings with barrels sequential oil above of Permian full of production, reaffirmed on our XXXX sequentially oil

otherwise. gas have to and for been natural price the faced, expect environment it would With natural liquid, foolish gas we're particularly

dividend, expect However, be our pleased in borrowing. the spite we we over time. cash Furthermore, these without intend are incremental form grow returning to to of we which in to to exit shareholders year headwinds, the of

in online return. that fully are some delivering but excellent outstanding We're projects bringing

we consistent for the Constant completing consistency cost. inefficiencies to transaction more and best ahead, As returns, lead and stops opportunity cash field generation. look to consistent creation Field a cadence. our operational increased and value we starts are provides flow

control. Our consistency, organization and cost is on smooth execution free focused

tremendous into site We have continue work understanding we resource the development. put from benefit to

development good within each function spacing and I effects; There presentation, As the for of requirement fourth element: fractured X optimum comes understanding growing from development these window a referring forth, our XX the Cemex borehole of efficiency. a we've both well reservoir testing, economic issues said reservoir and and we requirement properties, first, and and quarter and of have good answer the capital away into parent/child understanding is optimum borehole; in in these optimum our the along points. the would, design. which past, gained configuring conditions. of understanding discussed the understanding approach on infrastructure third, from profitable project network, is years again, our one-size-fits-all the Through stimulated to X and interface understanding has key approach. no of spacing; each on proper size XX The well an to issue. a slides learnings second, provides

This areas confident and observe projects development outcomes. operating we to us our projects, of predict give in design to projects areas, have ability out stand some has non-operated their more studied we've projects. all to insight As development to also our grown our capital-efficient through of in operating

answer of making questions We we're themselves. give this to wouldn't comments XXXX, have. a Our our you in any results, for year course, thus open be speak productivities in I'll detailed overview a you prepared a far additional remarks, of may quick

Lea currently Upper are is flowing XXXX Reevs Obin, this our with Wolfcamp in the Four single back. County. definition, XXXX the to expected the of of producing primarily development our online. developers Three breeze going X majority County and are in to know, allocated year Reeves already Culberson online Andrew X Professor, capital is you did As mention development

We on several underway impact have on this that would XXXX. production be year. additional later X will projects Operations that

have the along X currently crew. X with We completion rigs in running Delaware

turn Albi, I'll it Now more Joe will over discuss in to operations who detail.

finish Thank full you on a comments on few today. up second service for on LOE year joining then our XXXX and you, production thank cost. call Tom, and and guidance, us QX touch our all our production, quarter and I'll I'll with

start jump With in to quarter the nice second our strong with XXXX. our continue we production,

at of our in BOEs production BOEs XXX,XXX at came range to of XXX,XXX per of net per day, QX right Our day. guidance the company record top-end equivalent the XXX,XXX

'XX equivalent our 'XX net over was 'XX. over XX% With the and production QX X% up QX mark, QX

increase. our 'XX oil in Permian day came our volume QX and side, of the our the our record QX early day barrels XX.XXXX over XX.X up 'XX per above 'XX. On per a of QX midpoint, barrels QX per The volume we from With respectively. X,XXX day company oil and oil produced in postings, drove and XX.XXXX was [indiscernible] XX% X% BOEs QX XX% up day, Permian the guidance

With our the accounts now of for posting, the total company Permian production. or XX%

our midpoint XXX tightened XXX reiterating by As equivalent keeping production the We've to day, we full with equivalent same net pay day, we've guidance, as QX. into average activity or up oil range with X.X% full approximately forecasted MBOEs our XX,XXX look year to of forwarded XX,XXX XX,XXX guidance net the and midpoint average our day, XXX net projecting our production XXXX, at raised to midpoint X,XXX our -- per year and the barrels of barrels XXXX full levels. guidance per from year per MBOE BOEs previous QX, volumes to from to guidance we're per to With day XX,XXX XXX net day. are midpoint the capital volumes we

of $X.XX and it's per came BOE. properties of average $X.XX at XXXX on guidance Shifting That's OpEx. per in QX over midpoint the to $X.XX, $X.XX now above With our from lifting just our to books, slightly down revenue of our BOE $X.XX. our costs

with range within some completion the the conditions $X.XX market focus both comments general transition April, on our We've wells the reduction, With design, $XXX,XXX operating and each our completion completion lifting X% by the per tweak design relatively reductions our in call on cost to focus, by Permian costs. efficiency, with we've seen program. which to and well X-mile guidance lastly, of $X.XX of our our program, for flat year continued completion growing on remain and And we've our an ruling total X% And attractive reduced continued the last our depending X-mile since completion in on range or lateral dropped $XXX,XXX That cost to since retightening our APV BOE. our of to the full completion Wolfcamp challenging $XXX,XXX. side. said,

running $XX.X As from down a logistics. million, design facility depending million down from is our last result, $XXX,XXX That's to year. estimate our well on and last Reeves Wolfcamp $XX County, $XXX,XXX late X-mile generic frac and call,

design A drilling I gains that AFE shallower $XXX,XXX derived than about Wolfcamp end funding our at in low Wolfcamp throughout multiple wells completion million. treatment development are programs. improved project of A efficiencies, projects, point both with wells, in running to Meramec average our And to County well -- costs in are well $XX.X reduced out the these the operating within million Culberson costs ranges. of and refined Woodford want efficiency the development Our less Mid-Continent, $X.X we've per completion with our County Reeves

$X the call, another million current down more quoted That's from from in million. X-mile Meramec AFEs down million we running $XXX,XXX the cost $X.X Our XXXX late early are million $X last and XXXX. down to $XX from than

resulting our in June, planned QX year. X forecasting coming X,XXX at production year for So an last for in are second our online early solid full wells of to our previously the X gives QX, ramp oil compared of second springboard us a guide the a day QX in closing, first increase call. the we into of our half during guidance net last midpoint per in quarter the weeks as rent With great and production

well full lifting deliver as projecting to that plan at activity for we capital production completion is out design. costs laid We're year. to healthy. significant to and We structure guidance call, the very reductions efficiency you Our last similar derived and the cost remain cost compared and well-positioned we've the year of -- through beginning

call to turn over Q&A. the that, I'll So

Instructions]. [Operator

first question You're Jayaram from from JPMorgan. Arun was

gas the the wondering year and headwinds was allocation sequential per you you're if side some of the of guide when your the expectations thinking your some given prepared comments Tom, could capital of about your elaborate And you're NGL we've year equation? half about on second next just the growth how of seen XXXX? into into and on on talking

energy, a our effectiveness remarks, quarters. a long feels that yes, XXXX in to I oil I in as Arun. tell my cadence. said would this for go putting about field growth. smoothing right Certainly, We sequential -- full of you planning just be we're past will is our We Well, talked way out now. ready lot and on

revenue, surprised our major with more factor. and as not a seeing said, energy our the are to commodity certainly that little a formed We're we particularly gas you we're on on haven't are pricing. Now The and that, me plans. XXXX probably say hear contribution bullish headwinds oil environment on

and to when XXXX the going capital, plans, to to say our informed allocating haven't our So emphasizing plans make that oil we'll be have XXXX want probably sequential for then, and more although appropriate. prepared we'll growth, we although be formed I would extent we're of we decisions

was marketing Mark, around light crude. of wondering a new your And Great. talk your I there. follow-up, arrangements you out I Texas Great. West just of for there's can know benchmark but through maybe if Permian

you're if Permian us as just thoughts you on health give a some on So the can wondering differentials go-forward basis? model

XX% the of less is this the the contract have $X. the maybe an to is price. WTI I'm WTL or May those might we by oil of total of was the the under push part a representation seen most the relative fall -- when our current we're of overall to the in compared gravity quarter. Permian the to here during have on the on as XX% that index, QX, oil to second pricing, that, We Joe. had based already volume price, the beauty hit impact seeing in that next of our in total high we that extent anticipating at one that the for now it, on September. anywhere, anticipate The strip, adjust And Really, look of than received Arun, neighborhood our basis we'll contributor

of to if helps that So with you looking that $X, than the now, getting at that -- and don't contract basis out? the beauty we're know less we're the revised a I right premium September.

beauty the an posting much of helpful. of maybe approximate would And would just primate That mix versus leveraged how upward, be be your of new corporate that and WTI?

I Let's see you can ballpark a give if here.

me First about made in it's a love a pricing of in lot the end. already X/X say to I'd that place. is But probably room. again, the X.X

You're next Neil SunTrust. question from is with

Tom, that with the balancing you that wondering the just how about forward? the pass optimal a consistent cadence. I'm John Delaware I going do and you of about in think mentioned size

but are kind really size reservoir of of those look in does extent at issue. look add-ons from and at the stands issues. alone amount related, the add-ons infrastructure is looking parent-child optimum is forgiving reservoir two extent at Well, away but water peak, look we at independent handling competitions The at requirements, first We what capacity, what and of we and cadence. we take to introduce foremost, the the

else all X equal to of projects X resourceful me go So large at we probably if on these forgiving, and smaller would I host wells and than projects all just comment whole will were look But per let that. then say this, that. for we a and of let rather John maybe region. project for

think to I the the hit relevant most Well, Tom part that.

X there's controls thing are time can website Tom you of areas well us of amount the many to, of And frankly, fit of out X I lot there. we terms find the of is consistent we'd in a I problems to also cadence infrastructure getting because think investment. with that, think required for on to on infrastructure bring pretty seems both then at pace were we to to that the when potential on, growth quite parts both side. our alluded much subject to If go our well then, is in of the moving what is be most gas beyond good but a the that,

to looking whether right most in So X right or or that now, Culberson driven, range now. well even Mexico, that the or X up of Reeves we in typically building projects projects were New

Jorden Thomas - A

we factors many the consider, the among we asset But evaluate our Yes. of throughout the life. assets economics

the will production future is on in what and determining the the come size of will what development, when have impact impact both and to So development production considerations that add-on we'll to X efficient we that back the have of one development production. for have project impact and future

area And important that's so an gain we by to consideration -- area us. and understanding, by as reservoir, you reservoir

very reservoirs Some are forgiving.

You back they and impact. can no come have will

also Some section. within you where involves reservoirs unforgiving. your understanding are barriers vertical very It are frac

I say so, just it's daily particular one-size-fits-all. to And We'd a again, project. around not make decisions like

Great. Great. follow And up. just one

of wells You do budgets, of of you CapEx CapEx already XX% year? capital looks if the How so address the brought could that. the at talked it about midpoint XX% you've It you about expense specific. of the on about like arrive was and

forecasting CapEx, at you report, got 'XX over carry or a what When dollars there's and that We've we're for 'XX parts. moving what Joe. is were This Yes. activity. incurring we of lot look

that You've infrastructure got dollars 'XX dollars weeks. X.X June, soil that, dollars going in ultimately Crittenton on brains guys. wells, at timing into to is of the of that, and QX during we're and the relative given to of those We've a line two that came spend result we've you ultimately on water going we've activity brought net top over dollars, in In then of anticipating as carry that wells that activity. XX.X recorded. completed a last over got blow we're and we our And XXXX got to that, we've when then carry on got

The is Matthew with TPH. from next question Portillo

little highlighted meaning what of wondering was you optimization if to on and might call? the some bit completion at you driving the be a I of those elaborate be design say able may the that costs

And Well number that per first stab pump completion cluster, design, between those of I that. fluid, fracking return take facing, focused and a all states down types efficiency rate, and lots of cost your and are cluster certainly, one of of I done effectiveness. foremost, mean, has design. or in not, add We a have to of work of spacing, balance a But whole to at to and field. staged, completion knobs lot effectiveness want amount of productivity speed on on the effectiveness. zipper up sand cluster There's we completion effectiveness, the we've on and

the that we strike And all and look to at so of try right balance.

always an excellent We're but I always getting our I'll think of let questioning and we and core just assumption, do it. better then job finish John comment.

can you as have you your geometry some understand First decision. assumptions and to through foremost, dumb reflecting flows bad or other it really make the

Really said. on to Tom what just add

little tweaking see to going with of few see we parameters. been little details over We're go of I'm is, not bit of faster have nice benefits parameters. to those week. see We starting cadence into our to to the What is those time, starting weeks. bit of a

any of the way, we're those in not, So and with the tweaks, degrading well. we're yet, cause-and-effect, nice seeing a minor performance

like, pretty ERU some kind always leads have the that up The cases, to basis, of design of a from going performance a overall better lower making we've overall a we're cost as get more and bit jobs few an done well. optimal performance just design smart wanted now we what set and we're weeks little we a to not the and that efficiencies. in it's do to So the well

more adjournment bringing I think we're to and project see that with starting more on. we're the of

And out of efficiency sand, I fluid that of in times add the et cetera, paramount. the on the amount of the I'd top execution design, guess wilderness that, on

and an quicker overall efficient more itself program. all translate into quicker cost-effective stages, So cleanouts, that

of more show of of high-level indications are I works May at an know the could of strip little this things things action? in might of into growth incremental was the terms you capital XXXX? then the follow-up the things where call should of the there. kind on in into or still quarter But -- and MidCon just gas thinking some profits how be you question but a And move for just for the next from year-over-year planning any of continuing perspective about how the in works, come XXXX? kind for a in current out order guess, oil is growth sequential wondering if then, around I on a to as NGL of wondering volumes I I terms was you bit, there. you're flush at kind And moment out allocation mentioned in beginning to in I could if know And quarter Tom, the just a the country prices, versus year year right the XXXX. given Great. comment potential bit you

Yes.

stab I think at a both those.

haven't would we changing. our capital Although not significantly allocation anticipate I plans, our formed XXXX

the about into develop We significant talked We've Basin, new Anadarko we some new We're the what in Now can concept. and argue past in and plays to Mid-Continent, we'd means. like really find the some that a like process, in there. find and new things of

we on, we certainly sequential say XXXX But I will fashion. And have work in will sequential a Delaware of up But in look capital. lot we of have favor Anadarko field of asked the haven't we past, plans. the at organizational soul-searching And will, and to growth. smoothing be I the in delivering progress, certainly is be Basin, would put with in discussed so but what our then probably into the that the being environment going And really we which you've execution. plan. a and the me that the growth our planning formed be that and Basin. what to that work and a ability, on on in we macro meaningful there's we able have have efficiencies, for And a to a as made made our of effectiveness XXXX lot capital again, comments yet to terms follow we into allocation to field out the on our as do formed in operations disproportionately have capacity some we tremendous put focus dominant that XXXX, got that we consistent and we've deliver oil that a capacity, of specifics quarterly

You're next with of is from Bank question Doug Leggett America.

continues high-level philosophical position what question happening disciplines excellence so capital on to today with more to a the that exactly pressure My for the compete to is focus the Tom, years, in if. question, really your Because appetite over and clearly, as to of returns, no Cimarex execution you putting do do energy how kind focus I what's is on -- relate the of broader question on. you space. It does to exposure investor market? guess,

And So repositioning how what with industrial broad compete think growth the in right do is we How sector? this company you somewhat challenging time about now? the in great? the we're potentially right

those great question, Well, are Doug.

all think And free that, want What think, I cash? those mean but is the of do is you growth right what's we the now. we are proper the capacity should be generated? cash rate rate can amount have to the then what growth free and with that questions similar do to go of I all? I is what are if the think question to sent you questions We no asking for at us ask other have we appropriate?

questions, work beholding at done, and but returns there we We about it's we behave do those to I I can capital Cimarex, some we effort decisions get say wrestling that we're I'll more we terms bit inside that these that for all investment cadence work executing, if we the with and the of challenge. little were have talked generating think internal let the say, accept predictable, getting off. of we're had projects think our us than field and I'd into good showing like that, in put prudent deliver believe look upon to we've to are returns are consistent are people are paying of shareholders. that and word would open this, man We've I to factors, being we work that learnings returns which out that. and stand good now a that development us at do, once challenged But to

plans challenge. the to XXXX wrestling, our that? see we accept reflecting want you'll do think And, I on comment that and Mark, you

other industries that growth Doug, text as Yes, contemplate. Tom. returning more and definitely it competitiveness in on. taking different broader some investment, full attractive our measures, of the will demonstrate it against we countries through shareholders. past for return we on attractive We've cash from, making shareholders something markets future flow cyclic and how Cimarex return the our the make sure we make European our returns business free to focus we're That's generate should and and can on definitely items and stock step that EMP and further our that conference, discussed focused and the And next the committed of and making up getting to

to or products extent fact macro take We've changes You and the I'm And going to being good are making I'm effective. demonstrate always capital could X the conversation things world to that to up and our things we conditions it, that. do, developing asked confident and we're world the the subject remain are decades that withstand efficient are in focused all regardless X produce we of subject show thinking. the that's prudence markets that we're show permanent free that we We're of investments saying for you do commodity. And finish, cognizant the and long-term, of stewards short-term and on materially. to philosophical, capital new we this of so finally, cash modestly grow events that that We in change the can the very will environment. it, to We're cycles normal come. current a are flow, sustainable, and to Doug, discipline, remain and to cycles, going Those that needs in and business. on by markets We're on condition. the we a business know, seen be lots cyclic can executing

we're to mission experience. the and see But been our So we're today want get and feel business we're and remind the be around that the going also can certainly we not ourselves to we're for forever. to may adapt. in long-term, going the things after, That's that we

haul. for here long the we're So

I answering appreciate up. going that. XXXX. certainly on you're moving Tom. you question, quick follow agree on the the infrastructure, of a I on question answering year, you in right half I a obviously, the of into just lot There's parts may, If with operation in the second going

was wondered you can kind like, you I it just for guys to of with prognosis the as if on it sum and that some differentials there next but for this help So see reached the any there. realizations your moving I see and you into if prognosis, year gas evolving? realized NGL how from up quarter, XX you leave your I'll gas funny

[indiscernible] Waha for we're and at $X.XX into or index, index, going at over looking $X.XX of at starting QX. the bit so serve, half 'XX, half looking price the -- future around gas the year. for They're averaging little looking the second Doug, of looking at second QX the we're the in

press which improve. against half the $X.XX realized Gulf Coast with in a costs in the So ASC to for for price payable. that cost realized the to and relative And that which, will translation surprise, in the we an our the reported on. order Mcf, then processing the second second and you so to a the of continue. QX, XXX, the impact processing get has and naturalization was Future XX we the model mentioned that, it, is some spark release accounting against reflecting half differential amount of coming we in and improving full corporate year price Sino to there expect see Express into price

a of transfer though, said, on that? There's

see There's a transfer Doug. into curve we going forward said. that oscillates XXXX. right, I amount mean right. That's a into exactly of fair That's XXXX, a

or premium to the second, type realization $X.XX, the but year, prices similar quarter to orders Our this first seen second $X.XX we've first either in to in $X.XX year. going compared our to going improvements hires what $X.XX, or

from Goldman question Sachs. is next The Singer with Brian

I Couple wanted earlier. follow-ups that of to ask

First come midterm. the on

you'd need more about be concepts what that are that on You see in And would to working stand? just capital where XXXX? working those there to on. Can talked talk you you to you allocate

it do an allocating the inventory what can adorable. seeing it capital heads not to they the But on resulted there we is them. talk as Mid-Continent about Well, have a what returns Delaware any the be, from the a I in comment talk don't evolution same. robust today compete we We things want the inventory of up Mid-Continent lot particular that that Certainly, because what easy. it about is one we compete in you with Basin. Delaware. see with have need in the have that those we we of or the When a place and second to deep talk material Delaware for capital of the to

would deep so inventory emerging plays. new And his some what need and and to great returns see of

just place rigs among you relative back on the allocate would And normal -- to levels? current base a legacy

would money make good to to and make money bias to profits here make -- I able to moon make cycle. you we if money and Brian, we're so. that's commodity doing the send only through would be rigs the our

So he our was thought best relocate in of we shareholders. would it capital interest the absolutely, if

precise touched on that XXXX. point earlier, is, a you're you've trying of but plan flow, free doesn't or corporate that then your optimal to for process it's find importance soul of particularly like sounds of my It this searching a part follow-up bit And maybe with but about calculus free think asset corporate-level versus level and of returns? cash [indiscernible] exhibit growth any you cash XXXX flow as

that doing searching yes, than sole Well, we're broader anybody I a know else. do deeper,

we're but think the signals, not and what and want, question capacity we're what we're getting listening growing maximum I long is a asking -- that's market clearly of not clear. all people

We cognizant certainly demand the of fundamentals also we bottleneck. deeply and market that have some

grew I'll the we're many some by we could just today, this industry, the that's talking group to through clearly in do. of of many national where sustain. -- So us this, we need expert a -- not what say not we And rate world

I'm with anybody asking to -- sector portfolio, it's you and growth sheet if do throw think all so, on if a up between tension repeating and EMP in your And so our myself, the what and that's answers it. we'll mean our doing but paying based question. same want I do you And then back, flow you different making the is our I attention generate our have a And read cash free may balance decision, all? you assets. just

question is from next next You're [indiscernible].

long My allocation. question going capital on is

I company on do lot is I no-growth least does was The you trading that call. to And went what current can the the it, into free flow think to, a it, us, on you about an state? stock than you tremendously, to down a [indiscernible] point and talked as a to at thinking? Fast-forward would time, in higher a much this your it back. you you where bit, about of no is today, the one. wondering, update what measure, if especially discussion stock buy to alluded at with of buyback? give into is, price. about not is stock us it guys the anybody's Why by would but I'm liquidity talk talking little With NAV, management cash year currently, half a recall was the just I ago initiate do are whether a discussion think look all than Discussions your you and board decide as prices down it

once make and or Well, But we for how that them. more we that the is free and deploy any certainly, we a it's always ago. it do persuasive announce your much into spec likes do are X cash it decisions make condition. year get that than taken was want really ago argument have, a today I it. buyback at you to mean we years question We and a will looking of to where team points you well drawn not is

you of we want You in analysis our past the good is made certainly price think and follow to is and at where point them an that that? outdated. Mark, acknowledge that share the on do

Yes.

evaluating. containing that's think I

continue in an look expect our at we what in experience, taken now, we've to the be compared forward the is we this is, the stock the at right buyback I you at sheet, this this cash if had think account. into with right price, at this time looking we think of And stock definitely, free But between into think, free be the still investments. and in other we to and it's point, investment And time. free point relative think looking If had cash And something validated. always to we're that. stock have point. is itself so think which I And kind going to it's relation cash balance we to I to cash to the would realizing as flow. I flow be relation neutral that you we're flow now, the

have you I significant the value just with, strong on the stock own reserve discount recognizes have especially we the and that pretty it I company the leave it's of that think, on long given investors valuation. the

and that agree comment. appreciate with We your

Jeanine is The Wai with next Barclays. question from

My is on first efficiency. question

you far detail? deficiencies a your you discussed or more in Can I quantify year, but which end anticipated completed bit sustainable forward? to your how you going result, or guys is just So cost, looking prepared terms you some know little the on these in remarks think for more And better and completion of wells this of efficiencies. due days? you drilling commented

QX, saw see Yes, on, first guess, arrests Janine. of to to versus really weeks' production. that about that X show are, as we turn X QX The I they the night were worth online a and we from start both efficiencies are evident up able that an turn really, that are in in benefit to

earlier these any drilling together, relapse than put some and field we, models to plugs is So trying cutting very using obviously, we hydrocarbon forecasted had what without cetera, mines efficiencies we out quarter, et you, we've ready production for line including in facilities everything wells seen, up also and that charts, last they hiccups. We've well. over when we and our the were just our the when started done seen have good just with

little forward-looking we So beat those bit guidance and into built it. a cushion of our restaurants

couple the call is And other on questions. my up kind following follow-up Okay. then of of the

a Can like operational into if were. It way well the deal you the of hardly for sounds then might it's And make it. sounds debts you wells we wells just a in popular question, thing of XX plan, can forward in And the talked year? some extra for the process Regarding process see the in you've the into is the you an in of because it, big the about you those did for going in the there but maintaining pulling back schedule. the that eliminating choose. not of to because at we up Lot heading of considered that shift XXXX timing discuss snidely to and net extra best about? operationally. in terms do talk like of XXXX, half where of you It those scenario consistency XX the that it the maybe to year of quarterly be keep the got of wells would end the that

short-term medium-term asserting So right but adapt mentioned can the focus is perhaps short-term to paying And environment, that now. the him current bit we a you that for also benefit. market

on coming dissect accelerations we thought, QX, of way online really you and into talked in QX when a what some small advance. Well, not weeks just from I've plan, month that, wells like a

over end of pretty tail top amount to as of we're for our And the of year. and we very, The going how technical we're much standpoint. very And and/or capital And 'XX as anything some same what is to do in of the spending be earlier of far even at thought concerned, looking in trying about then as we the QX. the QX result the in right of the decks and 'XX. a end darn year getting cognizant acceleration pulled as 'XX, do we're from QX at this end wells money far, on maybe might

Kaplowitz is Chief Financial The next from question Mike's Officer.

gas, for transfer thoughts you your that now wondering if at you've natural all? revisited agreement Just on oil transfer for

off-road actually into an quarter looking we Permian. commitment, expandable barrels way the from a it also have agreement take the about entered us to to And We've day an at XX,XXX XX,XXX into Mid-Continent, and Coast of up Yes, first XXXX. been Gulf the a have. of and gives begins which out at for

Coast, the amount to the Texas the looking at of year. We've or and us look of of the can, through to up ahead arrangement to So better and And ship same long-term to give gas up the of XXXX. then to with and May the oil us thinking to our West the time, you either the into only sales ability all get we're really question trying Houston locked and area. the Mid-Continent of And not it's for that oil speck Gulf Permian, at all gone in get day. Waha majority particular get the got going a the When side. markets. Texas kind we've Channel it's for all insurance residue up of what on some at and reserve gas of means our we doing, out million into with that West it's getting our gas flow the XXX we've oil fair add basin We're out to then, of project,

at point? You there? go so think Or this is regard that you're to done in that more

speaking. not Do really

take going forward. some we've beyond we're So and steps been, going to and steps taken we've where above additional continue to

Good.

ask, have Sir -- last just you in quarter, mentioned from Tip an Barton And standpoint, wanted and us the pads. and Brokers slide talked operational the about Okay. deck, you

there? was Just were and result the wondering some spacing. X you learn you What I and end testing now Y there? what Sands did

a the Barton us. different we for were more each but up with X a some into of zones Both projects Both them we learnings. crowded testing call important in the pushed of we that with little when what landings lower been part there's Yes. those on Sir can some on. Y Brokers as the development, were landings, basis. indeed economic those and zone. up pads, very instead landing little landing wells are We're a our those of vertical versus that regular get over very they're those Tip, brought pleased being They tier sand with of separation if like more We're we bit results them, vertical further bit definitely seeing get wells definitely the

we're going two number and And in pleased, quicker from alluded this that but about very project so commerce, for $X,XXX the of combined on it's so which where and drilling that projects, lower a the thus, especially side these development just in side good fact, something especially and incorporated adjusted what open next on that expect incorporating, pressure cost on seeing us. standpoint, we're something those, the just a which we're basis a west and is we're far, specifically carryback. much Culberson is is shallower, little very, a project bit seeing that's this, cost the say, I'd for far we so per have of bit into cost foot of a both personal in forward, very have Also, you side, Western to little

with question is Campbell from X The Investment. Jeffrey next Brothers

We've ask to existing this if the of want in on Or MidCon. to place acreage? effort? that is the the can trying new some place here, to is take going be talking us, first any stay this any is, there question the we're been second And question would my some to efforts entirely M&A? that two-part. provision I one I'll about increase an these of one success And for organic down

yes. certainly, Well,

And We that were large acreage intervals is originally acreage to was. them by much why be natural lead acquire gas lot in other higher, so opportunities yes, of returns us footprint, footprint as us. say, past, to held prices and might at you said very a have time better I executions will listed, the where landings other were zones are have establish in of a increase for which Anadarko, production. that and much that footprint that all A drilled that among essentially high there the

drilling of complete which, understanding of had the be that oil clearly be and the alluded, column of would Tom Permian luxury could cost means in, we to So for time digging the program. right mix, or have intervals with hydrocarbon returns then, that in case, this looking overall those our competitive the as kind

that: sustainable. M&A? and don't beyond then to a, be we have must we ongoing cited, there but see and existing to which our complement acreage And think that might would zone as above footprint. in be then, obviously, far must it know. that I that have convinced an that's capital basis, could lead As be I found option that, I could be mean, this scenario, for a opportunities out first other there that's we herself yes, means foremost, what on

and will see in New the Appreciate color, Thursday. on you York we

from is Advisors. Energy Heikkinen Michael question Hall with Next

talk capital to little a just wanted I bit. about

maintenance into to midpoint indicate Then If your volumes pro the then guide, of year-to-date XX XQ at at this about that that Is suggest your XXXX capital which look Or is forma if inappropriate a XXXX of look at point? and efficiency the third think deal. that may the the way around level volumes fair relative looking for at of maybe capital kind basically at oil was Resolute of kind flat of about? that to this per transfer oil fourth a quarter we MBOE it you fair quarter way point? 'XX basically oil day, is to think to factors for kind it's capital,

And very accomplishes both Yes, if to definitely And pro maintain to a and -- the guess, cash lot of and the look as fourth look down year-over-year to fourth with that ways both our I capital on in forma fourth a of is lose ramping year. quarter the capital a Michael, capital you at along with significantly quarter, efficiency. flat capital fourth the pro fourth we the quarter. had we're rate pro fourth rates. capital high that overpay forma trying there's That look a at to forma is abundance Resolute exit I'm the some has XXXX. quarter capital quarter to how maintenance basis a into quarter

So see with on flat, capital I a production our would I roughly to argue -- that guess, our that. in adjustments holding going by capital,

also we you pain. remind certainly the pretty bring the in wells outspend really and this plans of We're project we you incorporated anticipated, high I face their within number been like forward was back, so that want the a on had to some asset our recovery, and which of share we X and talked the I wanted the but with why a we haven't Resolute flow pulled project, combined Sandlot a we of to lot On phases. very, we And the want some massive a of have call that we we flow. currently our an reasons the performance as essentially just about average on of we made of say, very those in that, those back would hand. all an detail decision flowing seeing cash Resolute project fruits been we with I assets but wells oil that entity as pleased earnings had them extension certain But operational at our we was are we and assets. Yes. those with to and development we commodity environment extension, the brought, that sing revenue we're

guess I follow-up. a And there Okay. is

to of think above the the that's how would normalizing count, does trying end sort As X year, relative is to more sort if normal, you timeframe down? what that think of around what And -- exit, counts, predictable to normal? think at look you Just expectations back about completion efficiency. that to recounting the timeframe relative of suggest about

Are now, beginning talking what about certain to. that year? we're of right of, say, versus running frac you you're let's alluding number the plays the not I'm

No.

that a completion XXXX. year-end count you for provided wanted Just

to end of that at If does to crew's rig you normal? that year, And relative of compare the how completion should look at and expectations the we...?

from bit and, 'XX, but first up At two But that. factors kind XX bearing but to normal we little production. at the is waiting 'XX. is X it production increased or there's A to we of we on on level, two, it That network X that gone sufficiently crews year-end have some end crews. XX a of [indiscernible] has from waiting the had obviously,

we're That's it's we we As book the one and and size different offering. 'XX, of to biggest that of timing And of projects the bigger X. expect to our projects. the developing the back going

wells think how are now, I slipped nine being of net playing kind QX of a rest we're are quarter's the in half out now of for there. year, we're XX guess the weeks last role and of for perceived the net we the projecting last those wells a couple guidance, at XX. right really I But in year,

right of slid So happened end all wells at QX is QX. very into this a the few

crew think I particularly up completion reflected It just -- like tailwinds XXXX about about from And you're that particularly there? really doesn't think was if XXXX I going backlog up of efficiency that's trying wells. the completion potential capital out normal, begin on to sound to what Okay.

The virtually same little the effect Indeed, are No. on more a going bit about a forward. docs

So a going moving some a really just wells slight of couple on. again, it's that's net all is

The Mark next question from with is Seaport Global.

there. expect or hoping versus be would which I'm was to Culberson ultimately, in range have more to figures your relative massive Culberson hopefully in of Delaware. acreage the we sweet acreage, and a of in the other productivity, kind returns big acknowledging fan spot. to is that [indiscernible] I you of at wanted Reeves Slide But and our counties XX, County guys a thoughts just productivity, get what terms the to highlights can With this may mind, year be,

county. of the the rate, that well. much the craft. site of that from the And as Culberson, I'm state Cimarex. at operators Reeves with months graph trend and comprised to as see, is from good of a said, through production what have doubt, see Culberson, and you XX rhetoric, definitely on commutative yes, I shows. the look you And have separate Resolute that entire wells, in see just there that's which county. what you the the that that and making better can basically, certainly those And tell fan in Whereas separately we've pretty the particular When mean after a Reeves of Cimarex to some feel County is the to you to we or and when recently lateral that does can very graph, X-mile we that very going we've well, fall yes. lower at you with you course big is big we acquired average is into amalgamated I not the background yes, done themselves as significant a tends performance highlights, all acreage which without that the Reeves end looked end. that that's it very We're upside a that need for

water can't infrastructure. And a you And we system? get on event updated monetize next peg any your think high-level what is to And in you notice to this desire could there's kind that? line men thoughts value said your potentially help just on to thoughts that of the in wanted good then of got if

there be that obsessing We're talked our indeed point Well, some again, in value in part is monetizing of I've and Basin past, and a say may, bigger bigger and [indiscernible] water is I'll becoming the Permian water infrastructure. way value of a business. time, always that, the footprint operating now, it we're assets midstream say good designed recycling out really get cost, the the the a environmental and we of to I'd water we've for with make to us. Right the is access sense

these With OpEx. that a system. tradeoff of we're it needs, certainly, invested monetization I CapEx ultimately of becomes capital mean in

if a is monetize appropriate also But we business an be the helping as it select, keep now, low time indeed, fee where to -- at would really capital operating a from cost we'll in right we it's recycling. to operating there and higher through efficiency, us, were a it. and that you have decide us have biggest benefit Evergreen, operational savings you water for structure. If look may, But analysis cost

great a it's asset. So

we'll informative building move and Our an team sense, a it job forward. we from of, it something it. but And but accretive when monetizing has makes footprint. is this, It's in look not from say just think at we I'll constantly off it proud just table, operating both done the really we're efficiency, an very

alone further anywhere from per potentially just to little is a cost is from well the Tom's $XXX,XXX to development and elaborate an saving point. recycling To bit point, $XXX,XXX

wells, we're by months number potentially, So of fair a reduction virtue of the owning many the amount by rather of it. Culberson, capital talking

from blanker with The is Morgan last question Stanley.

funded And to talk fax the shifting looks level about thoughts that of consistent just cashless that pace activity about can and kind assuming right You're rig like? be you what the where count fully of or activities parents.

measure? high-level Some to qualify way more that

the We're yes. forward. rings reasonable that's much as and cadence running Permian, Well, think currently in I a

we XXXX. deploy, biggest decision particular what decided X Of we frac and doing make Well that release third course, the that's this many efficient and also the what crews be third that. to to project I'd a third involves deployed crew. often is continuously don't we can have bring and in the keep do say the release do we third how the when and to frac in we want row bring is X, in and that

demand more on completion of about cost talked this and that on that no we X/X or prior and the as events well drilling needs where in site longer the area rig of total the our facility things that calls, project of that itself means One control are is we timing. the an again, we plan field our

out the understanding to really better, a manage bring consistent of projects. function peak It organization a and in demand as XXXX. slowdown, how valleys And getting peak But smoothing what management I'm at capital more our to tremendously it's and these and so looking we lot the into at is. pace, these slowdown. say, things to level what how gotten we on has we're question your distribute will to better demand right learning I'll and particularly We're be So look in project a activity not do a on lot that facilities peaks we're activity. decide not completion eliminate just answering fieldwork

color, that. X follow-up Thanks that tom. for on I guess

additional progress have on more reducing more play how made lot will there consistent cadenced that cost. You Is that? cost reductions? much a room well And into activity guys of for would

cost answer reduction. looking will I for that, will that would always

see and X% a to data from that looking the obtain we well been years and to saw reduce potential over and trying to focus plethora we're in find ways we've these reduction to frac wells due able at just were optimize really continue So we've the completing the X% of operational these efficiencies. that been ingredients to to April to that completion And design to cost. of the costs the our

know can So since maybe there possible more produce investments I can better a we we don't is but want that potentially is happy to our give economic. standpoint, well certainly, out capital that this it efficient net don't and providing that asset from what may that not know I great, because do have value as

everything. we're looking So at

over I would like to Tom This question-and-answer concludes the for our any session. turn Jorden back closing to remarks. conference

to for deliver talking good Yes. a In got it. We had next good questions. everybody just want We excellent it. closing, results and the to I looking thank to to look forward forward got continuing to you. you Thank

attending presentation. The conference has today's now for you concluded. Thank

now may You disconnect.