Cimarex Energy (CIMXP) 5 Nov 202020 Q3 Earnings call transcript

Good morning, and welcome to the Cimarex Third Quarter 2020 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Karen Acierno. Please go ahead.

welcome third and conference XXXX everyone, call. morning, to quarter our earnings Good was website to updated posted An presentation our yesterday afternoon. We call today. presentation on that may reference our

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

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

Tom Sirgo, CEO, followed So and provide an Operations, update. remarks overview cost few our from by will operational today with comments our prepared a begin CFO, will from Mark VP then Jorden, Cimarex SVP brief Burford; a Blake of

the limit Feel free accommodate question always, of queue, we during follow-up. your call. so yourself and like. to one back questions get for if hour, We'd that ask to you we As like and one you can the in more the to allotted that have

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

all us making on on thank landscape I'll and QX, and changing outlook and go-forward Karen, discuss their mergers I'll with on and our our impact finish operating acquisitions results are of financial this who you ESG future. you, our briefly the morning. for Thank to Cimarex's perspective joining issues.

our our in of company's in very good history. the results. financial third recap a environment We First, quarter challenging most midst operational and had macro a of the

our averaged Our guidance. with production XX,XXX oil line which barrels day, in per was

quarter barrels million of our of our on after XXX,XXX with equivalent free averaged of million the guidance. the cash and production total $XXX end finished $XXX dividend hand. day generated Our oil per at We high cash

excess well with finish million the are flow free $XXX hand cash $XXX We over on an million after year-end. of our at track year having cash to generated dividend of on

is organization. achievement this determination grit adaptability, and extraordinary reflects the of an face, our and the we year Given

total be $XXX our We within XXXX guidance revised expect million. of to CapEx our

has The $X.XX needed the we changed, you a capital inadequate the XXXX to describe reminder seems our faced let volatility initial for any of year guidance XXXX. billion. remind that word how conditions in billion of As us market if to me $X.XX was

We Eve behind Year's New XXXX forward are and us. looking to putting

reductions We to Blake G&A. in cost well these Mark sustain as reductions of and categories, meaningful CapEx, LOE cost on including will achieve continue all many and will the that organizational and our us allow to comment cost reductions. as improvements operational

faced are We better the in company a challenges have owing to we XXXX.

our As we organizational beyond, XXXX and confident ahead we momentum top-tier completion XXXX. cadence, as highly we have will are financial results. and fourth we With into look enter sustain quarter our that can QX we significant

we not guidance, XXXX have we into and the year single-digit high do first oil finalized full XXXX. quarter QX Although volume look over growth expect

XX if our well-positioned. has speak BOE. in will and our quality, steps efficiency. capital detail. the ability continuously sustainable. of it's sustainability performance our to are progress meaning We The we making our X have expenses improve lowering performance is will ongoing Mark Slides to little structure, in financial the cover cost XXXX improve enter Slide and very recently illustrates capital quality and cash to margins asset and this our efficiency. by more underpinned Financial not taken asset per our XX we

in we're XX-year these generate our that of dual both that results decisions price, and performance. performance than high-quality forward lens the look time. a improve over inventory testing have PVI our locations of greater discussing we and We than with our PVI will X.X a return inventory landing We sustain XX-year new guide zones backstop that drive to more these inventory financial a XX. through a you further the considers to does of and This rate potentially have capture We fully deep future. ability that delineating, will our oil exciting not results At XX. locations investment $XX

few a far, comments goals our intensity progress we we reduce and made our reduce to the has year, tremendous flaring. aggressive goals. Now methane environmental have organization crushed on adopted corporate on these front. This the Thus

Our target for operated was methane volume gross of intensity gas divided methane intensity, by fugitive production, defined as an target rate of X.XXX%.

We gas to flaring. our intensity X.XXX%. XXXX, production. XXXX a flared track we of are on X.X% Permian methane achieve In to of rate On

reduction XX% stretch was of Our flaring, XXXX goal Permian for X.XX% from a XXXX.

XX and use track How and we smart XXXX a Permian to The analytics of radar of simple; technology. ground-based tankless an rate done achieve technology true technology have includes innovative commitment, of adoption and ongoing design. focus flat which deployed, We have adoption on of X.XX%. facility we surveillance, Slide engineering, amazingly data are the effective the creative emerging highlights is of organizational this? some answer aerial

the low-carbon aggressive imaging our regimen and We the of in gas exceeds have also inspection challenges through a state financial delivering production presidential face increasing industry optical our products winning results footprint. of contest, our an adopted will outcome that consistent requirements. Regardless back with investors far federal and

into may stringent will and look reporting difficult beyond. to face and is Cimarex Going a XXXX certainly more forward, requirements. more forward ready challenge, for we we face regulatory and continuing our the framework momentum

alone comment in inevitable. mergers Each is however, consolidation and unique viewpoint on would, acquisitions Finally, on of of within and for transaction. not right to any do is its the merits. and sector. recent the that own rash the is offer its comment stands essential like We that on announced opinion particular an on prospective I let scale deals our me success

performance, whether excellent we be fronts. all Cimarex's grade to As on ability we our it Cimarex environmental, on or operational be financial, grade

will subpar tier not be every meaningful metric, as excuse top use we We and committed on are period. to for size an performance,

big will all and We in sector, small. with our compete companies

We will our Cimarex top-tier our by measured of consistently excellence delivered be financial not scale. has results, the results.

time. continuous can improvement, a will and we and assets aggressive support industry an ESG for be an has issues. that a passion leader goals We organization history that are operational can has excellence, demonstrated have on We over and our

have repeatability project the is infrastructure business range to lateral nonsense. continuity and investors and offer prices. to proper improve discipline gas peers operating and midstream another. sustainability. through We our Cimarex exposure parts important. it. fair, Any of suggestion Lowering offer our are scale quality, that of we acreage one; upside be investable a the there of for is sheet of costs size gas not on now development significant within We To balance management positioned and is is terrific and not long market our in wherewithal simply are is natural where cap oil, significant liquid gone, With preserve a and and to uniquely few it

capture fracs, we lowest of and is As on simul per This can have full offered true cost structure. savings development benefits harvest the a unit of mode, to resource advantage the pivot by impact and ability in ability take long-term the the to significant facility the particularly scale to optimization the projects electrification.

to majority current these capture has efficiencies. overwhelming the program Our scale of sufficient

we history, to ventures with entering chosen scale have our further by our leverage outstanding into throughout Additionally, partners. smart joint

example. development is agreement one such with Our Chevron Culberson and County joint

multinational preserve plays. would company explore we smartly-crafted As we If relationships. success, majors resource of will were capitalize dominate variable and the for on forward, similar size our opportunities U.S. to nimbleness controlling the the go

Our size. focus not excellence, is on

through be company. our at to we the company last that no on were merger, to waiting Our If become could Board playground not is of goal convinced Directors of has we it, a picked But one mistake opportunity. always a kids build great would been make about the a better team. a build to jump the for Cimarex

our has We have choice is to opportunities we the determined time. at Board remain that this independence because many had merge, best independent strategic but

been have we turn they and and future. every then, to of company our future value the for with me recall before, As and will people rundown me an a our we now. compete. look a go has up any will financial call life, in many there each option building great wrong With a uncertain capability Mark shareholders. were consider I Until builds forward, show day exactly what the like. progress. to around deal furthers telling time will I'll be that, flexibility the They our will on over Cimarex my wrong we so and that goal cannot and for and

Thank you, provide on details outlook. third and results some everyone. financial Tom. quarter I'll morning, our Good

reducing which future expenditures On third third a Our adding million to million in million $XXX In to the XXXX $X.XX per free total includes million On million credit macroenvironment of X our by a on total G&A unit hand basis, of free cash cash costs We $XX total no to $XX activity settlements flow exit revolving $X.XX BOE. in operating borrowings Year-to-date average. $XXX first this in flow severance we year-to-date, adjustments project severance XXXX in BOE these We operations from is after of the align quarter expected per XXXX XXXX and the quarter comprised cash basis, on billion totaled unit with the we flow and cash $XX received to cash million from from of in cost totaled expense $X.XX hedges, for staff transportation, cash generated cost. decrease levels. of XX% $XXX Adjusted received million, lower overhead and pression prevailing to we XXXX XXXX quarter, dividend. LOE, of of cost months the million. $XXX our operating taxes of and $XXX $XX third dividend, cash to approximately quarter the and per as the we compared facility. G&A million. the approximately reductions result go-forward and per our cash organization our had

a a a and retained at BAA corporate X outlook. S&P Moody stable stable had minus family rating This us remains now at trading BBB and quarter, at with a also we a added rating outlook. at outlook their BBB and stable fit

the as previous operational brought expect now have which at oil weeks, Our $XXX average brought quarter day, end our to equivalent to X expected volumes to come XXX,XXX X.X barrels at million. of Fourth per efficiencies, in expected January wells a day. XX,XXX which to fourth of very XX,XXX by are with are Prussian This wells per X well volumes quarter. XX.X the result projected average unchanged remains net XXXX barrels from on XXXX to of oil on We XXXX. XXXX to about forecast now from to is forward capital projected XXX,XXX

nearest completion We asset With great to in generate $XXX drilling and flat a base underlying free growing of momentum with our our expect At than of 'XX, $XXX position are in we goal structure, With to increasing our assumption I'll flow clear higher modestly call XXXX gas a have to with heading cost notes, flow of the excess which have activity. to strong production. of is retire cash over having cash Blake. prices, we funds strong into and free maturity. significantly to dividend and to more higher sufficient that, the turn million

Mark. Thanks,

quarter marked frac decline. caused and return X The X incremental now rigs and changes continue our costs running to Permian. activity with to Structural our in to third efficiencies have the operational crews

to trend this expect continue. We

services continued efficiency driven While market we rates for in operations. are out, cost gains reductions seeing by our leveling are

per of our a feet in When completed average per feet XX.X costs, average. levels, we drilled on per Improvement a example record. is fleet County, increased foot go-forward such, Wolfcamp per pad efficiencies As cost with across combine well XXXX D&C per has co-mingling total XXXX $XXX XX% D&C [indiscernible]. savings, average with detail, foot. range to day as result lateral count completion to all and to new drilling such up to flowback foot provide lateral the pushes A is the our of great from Culberson new reducing drilling our foot from XXXX as year-to-date decreased our low A TD our $XXX offline cost of where cost some To X-mile and in days, the XXXX end per $XXX well from development the this programs. $XXX of operational day continues result XX% year-to-date additional company go-forward these to facilities side a surface

$X.XX we down report contract capital are hit. at well all when always, are XX% costs include to drilling, is including will before and BOE, associated foot, labor, XXXX QX facilities and that XX% $X flowback. which in structural from of in QX online, down LOE lifting including XXXX We field maintenance gained completion, XXXX pandemic QX and reductions be these of estimate These efficiencies XX% As new since costs per we structural programs from per sustained. bring changes and the through automation. implementation reductions QX came

ensuring to teams challenge. component is to delivers and a structure up cost Our ops flow, Cimarex our strong critical free the cash are

drive we forward. value pushing With our chain, innovating across and turn as questions. that, continue it to entire our costs down we'll which will over are efficiencies We move for

Instructions]. [Operator

from Jayaram comes question of JPMorgan. first Arun Our

could in I you your elaborate inventory Tom, prepared that mentioned was wondering if the remarks. you on comment

it think heard said you I call had X.Xx as you inventory, a I years PVI of ratio. XX

that of to go-forward assuming on flattish here what give but bit a terms more So just is little your maybe meat in estimate the inventory? bone done us you've activity,

PVI better. - I I appreciate that we use we we XX emphasizing started a that's to at look also kind or - grading certainly, the of and lower extending, I've at is generates, were as rate to give our of years is, rate return, XX a of rates current X.X necessarily are of our that's at that's - question, PVI should answered but to speak question. That current said us $XX my at a if that it direct but - investment or that our though, inventory a hopefully, communicate If increases, XX% an that's on combination landing but question. in increases, years said What have take, than include I does Obviously, that decide rate those lower your changes in additional I rate as remarks, where is inventory If our rate. return structure draw some heard about we we and to that view inventory your of decreases, of addition in return, but zones loosely line adds that answer developing, cost that XX not to or new We of speak. of kind externally. high return. new that oil we IRR rather investment language rate and ago, you've investment externally

a Just cutoff. price to was deck for and using XX XXX a clarify used the to that $XX using a is is that we the PVI to PVI deck price that the of off so deck result to, price at cut NGLs deck price $XX XX% you, you XX $XX use, to gas $XX X.X

development. team, that, if it lateral on before looks thoughts that the follow-up fleet come wider I you us clear if My is talk bit just now for to a wanted is using looking of could I been spacing. plans in spacing, land and give you're Slide and mind and A to thoughts couple to wanted could like see our below the to pretty relax you had Upper you about Tom in see the again, Wolfcamp, you versus XY zone are XX, little [indiscernible] about some to the

implications maybe a about to of on the So of and productivity talk the well learnings go-forward some some basis?

hydraulic for and And petroleum you or from another. upper critical one our networks zone then Slide fracture that and X is [indiscernible] thank Arun. barriers is, up, are to the passing No, graphic there the that system, petroleum to Referring question Wolfcamp that follow we XY, XX. system. one ourselves ask that frac It's freely

up see move landing So vertical you XY few but little an gives of added separation, the is what zones, to there this us we've is includes tip. us others well a outcome a just wells really interference that more the the really a XY, calls, have And of that and we in lot we've out did the - that bit XXXX Wolfcamp, permeable talked What highly observed drainage see impact recovery that our we of last a past is and about this a particular, is so Upper in is as did modest years data. collecting program quite them rock we that complete beyond And observe to big system can we fracture for well section. compared of on a in which fewer experimented, XXXX. we of very drill found that in that the was learning call

spending front mean, And wells. XX% doesn't you, facilities. so of have the in include you we're capital on case less that in I

generating it more arm is something a only And XX% but doing present there, more less has the spacing. than spacing efficient, bit not the Cimarex capital that's I'm value, little value relax of more capital higher So creates waving actually net learned. and

has was not different something at project, X to It's we've either well learned, return that the of XX, capital and that's incremental right the I put or industry is that you and because if total think of a the have side look in those or rate is project you learning really just Slide slide. incremental well-invested on through learned lesson and look project the capital and point total it's taking from that return of wells that of the should left the going to rate that both that's you XX. and go great

Gabe [Operator Instructions]. Our next comes question of Cone. Daoud from

guess remarks or similar far. volumes slightly improvements the there Wolfcamp, the the facing expectation whether particularly to [indiscernible] all in perhaps further XXXX, on on of appreciate on Tom, I that efficiency the your as for you so I any CapEx. your outlook, side, noted? productivity flat side in embedded capital cost up Are as oil

No, today. we model where we are

So achieved. generally, don't forward, haven't what as we we go project we

capital but we're said, is what and that? comment current So on costs, Mark, that to I'm invite current current - to you seeing going efficiency

into of Tom. that No, current using the discussed, as Tom we that's into - would well. as all are redacting, sort forecast those looking we productivity, measures further And our have we efficiencies leading-edge on And as do 'XX, then we correct, with at on we're costs our discussed, built Gabe. be the

flow cash through on our debt, would And Then Mark, helpful. post dividend would kind the particularly flow pay numbers, to growing you that we prepared as notes. as XXXX look cash as to noted more I of the characterize dividend? guys free it had use dividend Okay. be cover XXXX, the than guess, And guess a generation notes you That's remarks, and did while you guess, XXXX appear I in I follow-up, through just also still your enough free to that the the growing. XXXX, down

we increases just to magnitude And anticipate in annual guess, through So question extent look is, the the should dividend what like? would XXXX? the I

our expectations that We're make Yes, dividend going that we is manageable. very growth, have regular grow Gabe. to sure to do Sure, dividend.

make and it as for at on have looking on priorities to probably there. and the in in first We're and we're of cash it's cash and flat price that. other our something flow making debt cash XX% again, relative options, secondly, flow the some variable make have decisions And sustainable. to measure right cash a of discussing our measured growth dividend, extent well regular our we'll but we publicly the target that Board with our regular dividend to So the at our have are - now then again, around flow sufficient with free cases dividends very repayment sure that, Gabe, sure we

come Our next question is Barclays. of going Jeanine from Wai to

of Tom. My majority overwhelming and capture exploring Cimarex we efficiencies maybe go that is back on your Maybe in mentioned efficiencies the top you size, to that could of partner capturing opportunities first scale, to you're but you, to order is open if question your additional comments to for that. on current at

capture kind on is a - on additional into the the things that So more to opportunity side? efficiencies of is wanted opportunity more side that I just upstream midstream? on Or the little there a to comment bit. more of Is that dig related to

into can not can because Culberson flaring whole midstream yes. are, basin there ability very value also we've flexibility savings compression. benefit we fracs. and times, midstream partnered that and because a chain. our There agreement is for can our we our and project outcomes, that disposal, just own to water we where destiny because the disposal our of our saltwater Culberson us low point XXX% introduced a but costs good size allow I'll our good and we're are on our an very flows only in take advantage and because in set tremendous and of example. It cost, water not also partner tremendous and of control every that does with And very, low absolute of we're sourcing at I important Well, operating has County Saltwater efficiency we midstream disposal savings And bigger, of XX-XX, gathering of in as that the optimize is We Chevron use have cost longer projects recycling. network. only joint the Jeanine, use costs, another outstanding laterals. leading built also development it at think, but zipper share is County own

some experimenting that's mention to quarter real power about moved electrification, something I really Culberson taking now, yet, then the that's and do in crew fourth coming off smart haven't be way publicly, electric And to that's think this. that's is we'll have we a may. We but fracture push operated else haven't in the something we on we but County electric that we here and I'll and is an think and with that important, frac grid our owned talked

drilling around power turbine electrical why from elegant we can our bad or get rig a is Roads Dirt solution And your bad that own that much experience you crew idea. electrical it's us a really to if some Turning It's more tells grid. take a have electrical idea. own of on

are things that these add all So up.

some the we've them we and small are are done big-ticket items, opportunities items, replicate scale, County. are them what in but basin are think of they to Some there benefits in Culberson of of other

start the turn Okay. and December. pull of I grow a I to detailed think in was may. given forward question, given the and and timing Cimarex Great. that little to wells that production efficiencies. maybe commentary good And then more all would if lag continues Previously,

to the any completion growth be maybe schedule? wanted frame new if might that on still in given comments if the in the that's just check rate, we case had for to you to And new helpful see exit So us QX? the

us the year, which with that high yes, are of end does do quarter, position into 'XX some we last those stated, XXXX volumes at on net into see digits, Yes, are wells, first of the X.X the up moving first first oil so from the in part quarter. very we as coming the wells but quarter. well single growing And Janine, Tom additional into have our

SunTrust. Our going of come next Dingmann question is to from Neal

[indiscernible], decline see about you're Tom, It activity. to the you you how limited talk baseline holding progressing? nice just maybe could with seems me quite production

So just wondering your there? thoughts

base then and Well, is you profitable very do asset that always have decline, And decline detail overcome. hurdle to we lead to young, does base, don't handle a the but there? Mark, why

That Yes, challenged. something we obviously sure, Neal. is

teams production something to sure the to maintain Our to as defend with but we doing maintain trying E&P that we we're is call production. always are operational in that to base, everything challenged activities can faces make every base base, that it,

the follow-up call, likely. talked just then And X had prior on you Okay. about

more was it on more operational in that Anadarko your a the play returning potentially thoughts think to side? you activity. 'XX, sometime early about talk I bit getting active operated Could on

our at program. looking still we're Well, XXXX

on were it, haven't brought We we on based years. have last We last in wells Anadarko that X.X or room a that of quarter. do finalized oily the but over kind we X online, year, where some the we're project

side measures. returns, opportunities - we past. - We on finalizing which talking our the in wave We all project. we that I'll really XX% be we're those it XX. because but We I program, we've have project, on like we're we if still would heads if about all it's capital. I when measures, returns We're I again, will, or our but I arms rank mean wells. It the do of this to top competes say right small where competes that it's XX% the it they mean capital. my a will say And I with Delaware like up. choose outstanding XXXX the on Anadarko just company-wide, Basin be really believe been something high

of Josh Wolfe Research. Our question next comes from Silverstein

You both the the I to on It those want combination see the acquisition on the of that right is to like right deal? doesn't that pushback involved price conversations it do because appreciate stock just if sounds divestiture time, been sense the recently. and Tom, the or is the are Board? what the in side. now, main you've from right the I said multiple And where just comments M&A. is just a potentially not make

there on going and to the calls, Look, and now, going say surprise have phone as been throughout in lots comes question, your restate of to I'm Well, that XXXX, conversations CEO and CEO Neil. anybody. said past, I'll again we've no

big so we've conversations, I'll and acquire, mergers, from to said, we've looked opportunity We've but opportunity had an we've it. of at both is to And the at sides Board. yes, at looked have looked restatement, make the you pushback

is on highly focused value haul. creating over Board Our the long

on framework the a very calls, And also we very team as cyclic long-term things think is the and to do. you good downside in to in the business. viewing we Board Our and through some a having making executive commentary careful them decisions very, I of a aligned need and this with through that patient lens, there's some We're attention be cycle. pay in been

I future what do gas careful looks come bad are like. And prices natural there mean constructive that voices thinks very but to the back yet, I'll rebound. - don't for oil out doesn't they don't that and in it, a well and poised what are closing, careful. know careful think means mean a some there that said everybody I it's Now doesn't idea my

slammed We doors. want clear be haven't on that. to And any I

do us, now, be. have add decided we considered - Mark, what you to is anything for has have current to flexibility but want our tremendous Board to our available that want given option we any right for to position that? Our where we

add, Tom, there's the value don't I could proposition. much Yes. down think No, I just it comes

our like out - very and Our a pursue now, and Board be management recognizing hard. the that, our if that we shareholders. create value the best our more Board through can Right better for something looking And company and very is make things shareholders the quality said, balance base with asset company point, our basis go-forward monitoring think as But we on Tom we create for a have can we we at the the be again, sheet build. and exposure continue to as stand-alone. can what's of best we value the current a more

those Got appreciate it. there I on comments clarifications.

I Second ask permits up the are it wells was nicely in I'm XX XXXX XX just on curious to through wanted with or either planned that just approved kind progress. lined question federal of that the Or the on backlog current guys to you do the XX up next you actually intend perms development? X it actually years, even wells of speed development the over kind around and the plan, have? is acreage, given

to have Mexico ready. and New Mexico, redirect about are But We permits and right talked we we New do so watch opportunities. wait. recently going at to would bring - we actually permits capital lot forward. the plan permits, We've us the and next the have to value few opportunity would to development are have that going that hold Mexico been give year-end, ability XX great and now, we projects over - we're hopeful of going to New up, the If have pace, but be the is lined a looking decide the by we're we or acceleration accelerate. XXX to we accelerate, we've to proceeding think I a I'm Well, an want we we years. there

[Operator Instructions].

Abbott, John Our America. bank from comes next question of

I'm all And commentary Permian sort Is Doug then of far inventory you clarification. that the by sounds a reduced inventory, it's does around want about $X I make maybe talked $XX think how that around as impact to Leggate of extent Anadarko? How quarter? on include - the of based is the sure some the $XX, we like What is should to I I change just does to back it or wanted at XX-year that $XX. the oil that as inventory. is that? just for this get prices morning. to go that lower

adds deep it's just that how Anadarko deep I includes lower is If incorrectly. to us steep grade. and you about exactly. inventory again, Permian. financial A $XX that. a a year at We can And a again, giving fairly X.X near Well, we $XX tremendous a driven at is the XX-year want see - it XX Permian, by inventory It I for the XXX cutoff, high PVI That's very it's means a PVI don't tell cutoff. cutoff. in economic price. and flexibility and inventory to we it oil has gas our to $XX although X.X At flexibility see returns. overwhelmingly goes price, high XX, communicate

we achieve next so a And we inventory returns. high that we X-year like window, that the deep really have X- means have to over of a outstanding can to degree confidence financial because

the And mid-con. it. the just follow-up here. on going It's then for appreciate be to question I

and that Going to could commentary your of spend sort of back the rock budget potentially next that's XX% to year, area. XX% you loan

increased You've Permian. in Permian, costs in your of the on the you've spacing progress made wells

you go down be loan should spacing do is that we the And than per I did think lower Mid-Con, foot? you thinking If back to you mean, would drive increase? to area, went cost the to rock what lateral ability also,

internally. well less, your economic don't it's debate a on the your need speaking a Anadarko. Anadarko of the particularly is in tip. we to in on I the That's Anadarko, area spacing based said Well, very Woodford question spacing early life least - we combined In area. case the your well, active fracture not the beyond about that's drainage restricted is fracture is Permian, more shale, very to typically the at again, it's - Shale. the in active the we're Woodford that We our to in or say challenge a in draining relax I that think our data, reservoir will the -

we So little we've said, bit the degree around floating in here. of of there's experienced in seen that be sorry a That better Wolfcamp. interference safe that than Anadarko Anadarko not notable

relax Thank which suspect spacing the expect not Anadarko mean, in may Wolfcamp, it I very talked we - our very much. relax likely. in the we're but to to degree would you we to the So going we I I probably that about Anadarko modestly.

turn do the I questions question-and-answer to management any Instructions]. the any further [Operator like would conference to session. this back not over remarks. for now at see This closing time. I concludes

forward been we thank with we've and we've a to what we will have very fronts. Really serious to all you And flexibility back all that Well, hopefully, getting your this deliver. you morning. getting for clear can clear work, back momentum. look tremendous been questions on to with Hopefully,

and questions, for a your wish New you So I'll happy thank you Year now.

you. Thank

you, Thank everyone.

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

now disconnect. may You