Ring Energy (REI) 10 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to the Ring Energy's Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Al Petrie with Investor Relations. Please go ahead.

good and Operator, you, morning, everyone. Thank our Chairman of begin an of the call who with our McKinney, overview quarter. for matters Paul from key the provide comments will We'll Board CEO, and

Q&A and call the who Also open Alex return Corporate Executive for the before Officer, and website. our our available to of turn then Strategy; earnings our that, review of and call VP Marinos Executive us note have Operations; also will over Travis Resources Land, we on Brooks, plans Chief will XXXX will Thomas, Paul results. session corporate of questions. we Marketing. future posted Dyes, call presentation are, joining I'd to QX Engineering the financial discuss [Operator Legal, Human for to Baghdati, and Financial Ring's Executive then Steve today instructions] the VP outlook We and VP a

financial Accordingly, to that intentions this statements result and company of such Energy forward-looking materially will Ring not statements, projected statements of results cautioned those company or should that, of a and as update and be information, section conference of in Commission. statements these the measures results materialize described forward-looking Reconciliations meaning with risks or Securities no course may These yesterday. release developments you to documents in to GAAP issued or one Laws. references website statements. whether actual contained are Investors risks in from more forward-looking under earnings conference Securities obligations on performance in non-GAAP forward-looking future materially. not These comparable directly the will or Exchange undue place financial of prove certain the other new and can Federal events measures. non-GAAP and guarantees should within the to most During can incorrect, assumptions Investors call, the our forward-looking Should This those any give be the or are forward-looking are vary yesterday's the filings making assurance otherwise. or release correct. measure differ be prove statements also disclaims these underlying revise are www.ringenergy.com. future of any our of may can our found actual press call include reliance in the

a is being as recorded. like conference Finally, Chairman McKinney, over call Paul CEO. and this call turn now to to I'd reminder, the our

you discuss and for for of interest Thanks, appreciate our thank us today Al. We results Welcome you to and recent your everyone, the joining Ring outlook year. Energy. in rest the

mark we quarter announced and period assets. third the acquisition company Stronghold as for shareholders The our of our Energy's completed and transformational a

you in Basin Permian these where operations. also know, Central on conduct operations the we acres Basin’ net As the XX,XXX development are of focused platform

a full results we only closed reflected the As record with will of on quarter three quarter we reminder, the XX, year. the is our month should focused set for reflection value proven results, pleased ability up Stronghold a to were our finish our We on strategy. during This August operations. acquisition one bodes which execute quarter third which fourth months assets, of third so which to for us well the of direct extremely strong with the Stronghold a

and well as performance quarter completion, of recompletion acquisition our capital addition programs, assets, workover as third our focus ongoing operating legacy cost our drilling, the continued benefited stronghold In the from control. to the on of strong

income, production, quarter, during experienced adjusted combined some the While were pricing result and strong we did levels from quarterly revenue, was the second and they still The EBITDA. pull continued to overall, back net benefit. record

XX. we quarter generation, $XX since million closed pleased were on and pay to XXth another posted our of free August cash quarter, debt also We down of the consecutive acquisition

for XX,XXX second volumes day, quarter. barrels sales which than were higher the posted the equivalent of was Our oil XX% per quarter

I previously from earlier, our sales fourth increase XXXX oil volumes and programs. quarter, recompletion month stand and per the respect expect XX,XXX was and drilling to the between due assets. full completion, to as day to from we of of of the stronghold the months three a one capital be addition by primarily volumes well barrels driving as workover success said released of our guidance XX,XXX of sales equivalent continued With the As Stronghold production the assets

the program, horizontal nine Looking bringing during XX. we the wells, five specifically during Basin the three of including number platform, months the the shelf Central third drilling drilled drilled in of wells eight in quarter at Northwest first year total our thereby horizontal and the to

wells, third and quarter, number second horizontal the in nine date to including completed we the the quarter, in wells to on year drilled were bringing wells placed completed quarter drilled total four of wells XX. and that third five horizontal production the During

and from wells, methods. horizontal our to Northwest best Central focus and the results and completion zones the our selecting very our Basin are improving with remaining We shelf the attribute geology, on landing success pleased platform

on we We shelf drilling in the pumps, acquired horizontal Stronghold and the we CTRs ESPs newly activities CTRs. Five three well to with technologies something CBP also legacy completed one in other the activity on acreage converted the wells With of the wells on acreage. properties. focus bode rod the third to recompleted Northwest completion remaining our and these were was Stronghold acquisition six will and believe call that during respect quarter, future in our

operations. fewer point, As $XX.X CTR know, be spent our and inventory many investment quarter. our transaction, our $XX.X quarter of of converted respect cost the have CTRs. this during we'll a program compared spending, performing for majority has the of excluding to candidates stronghold we third significant forward million reducing With second to CTR you capital we the contributor of total been our moving the during million to At

additional efficiencies designed increase and rates. drive on efficiently to to completion execute that and continue program We our drilling production is

which expect to quarter, acreage. the million $XX on For on horizontal a of drilling our wells four million, to X wells X acreage to and fourth our we legacy $XX includes spend stronghold vertical

two place strengthen had production the the we third of combined horizontal quarter generation than reduce of lower which was seven the with XX% vertical to the our and leverage X.Xx end to X.Xx, than the used and XX% year, ratio wells The expect our to date, quarter, that our efforts flow a exceeding and the leverage beginning debt and wells. cash ourselves. set sheet. at ratio second lower the balance for we expectations on at further X.Xx was complete free results of ended to We been has three We of

and plans after million of the credit was increased as $XX ended our our make more the the than base million year debt, know, the continued business. you And to $XXX and facility XX% than and strong legacy we paying of As acquisition down strength liquidity, XXXX. which with to a quarter bar million in more in finish $XXX places position we for of us due

Travis So will discuss it detail. in over more results financial to with I our to that, turn Travis?

call and Paul, Energy. Thanks good your interest today's appreciate We participation and morning, Ring in everyone. on

focus comments position the As results. sequential today will past, financial my primarily quarterly on our in and

the press our yesterday concerning comparisons please last SEC. with year's and see to discussion detailed we XX-Q release quarter, third For filed

of our as total and the a barrels quarter of X.X campaign or efforts by of August XXXX natural This strong that further Mcf of and NGLs were oil BOE. discussed, well of performance XXX,XXX barrels total the for XXX,XXX acquisition to the quarter of Mcf for of ongoing gas, of XXXX in the positively operational quarter sold barrels we natural our XXX,XXX to XXX,XXX and continued of targeted BOEs is backdrop, closed XXX,XXX results As third compared as Stronghold oil, efficiencies impacted business. the second Paul of during XXX,XXX development XXst, million With drive which on XXXX. gas sales third

XXXX, beginning we basis, the X and of on oil, reporting NGL reporting result began a transaction, separately a stream Stronghold gas, revenues As natural Xst, crude sales. July

periods XXXX, in and Xst, included for natural were prices For reserve to prior volumes, NGLs sales revenues gas. and July

gas and of $XX.XX Mcf pricing per of NGLs, and realized quarter BOE. $XX.XX barrel oil per or $XX.XX Third crude per of per was $X.XX natural barrel

second Mcf BOE. $X.XX realized the had and per per per barrel $XX.XX $XXX.XX we During pricing quarter, of or

barrel from XXXX. $X.XX barrel the WTS, barrel $X.XX a a average CMA quarter WTI Argus per which averaged in quarter positive compared versus negative which positive per oil role, second barrel per Our differential This the for difference positive $X.XX Argus NYMEX of WTI, in the quarter. mostly to per to is in and quarter third second was second quarter a a $X.XX third $X.XX in the and price $X.XX the the attributed third averaged the

the compared differential second negative to Hub differential the for of third per Our Mcf $X.XX for gas per average natural $X.XX Henry negative a Mcf, quarter was quarter. a from

two revenues realized stream Our GTP as WTI. than revenue was from May of higher was were Contributing as $XX of second conversion costs averaged starting or record million $XX.X result stream the of XX% the three a processing that XX% combined NGL difference gathering, quarterly in to the to well The netted of XXXX. transportation revenues and the million. the quarter

increase $XX.XX significant the compared assets industry-wide million expense income million Higher the with on increase second labor in in the resulted at in and per acquired and higher legacy record also per We Looking combined statement, or per items the Higher $X.X additional the to more to BOE from the quarter. contributed inflationary BOE. quarter. the assets $X.XX line for did on BOE third primarily production costs to production GTP was pressures any $XX LOE or our overall not contributed LOE. LOE cost the

second as are a an GTP earnings gas price not maintain we to the ownership control May sales we of longer line now quarter As costs our change gas call, to processing. Xst, and as through natural natural in no expense effective discussed reflected and reduction item. due contractual

second with quarter lenders. On in the the X%. second respectively, BOE Included quarter. DD&A $X.X Interest modeling million $X.XX less due $X.X million the the compensation, $X the quarter to should taxes in a the with basis. versus expense quarter exiting $XX.XX XXXX little million associated gas XXXX. used rates interest G&A transaction was such, daily higher steady quarter, Also and for credit Production $X.X of As and of DD&A facility third $X.X $XX.X financing $X.X to of the versus compared $X.XX, deferred second was $X.X to remaining borrowings rate lieu the was higher on and be in in to $XX.X price from second share for additional for G&A, the versus expense. third BOE at based August closing basis, quarter average the quarter. transaction million which Cash a million in $XX.XX million write-off excludes decreased for substantially second increase million contributing million deduct long-term the were GTP tax the with Stronghold the than costs a new for unamortized the purposes, related were balance million on the increase cost. the the at debt was our XX, the per revolving a to of of

posted or of income During $XX.X the we net quarter, million diluted per share. third $X.XX

tax $X.X for our acquisition, million is of per income items, $X.XX second million $X.X net non-cash after gain share. or net $XX.X This million and the million compared the per income including was compensation million adjusted quarter $X.XX or pre-tax for of quarter transaction hedges cost third for Stronghold impact $XX.X share. and Excluding on the diluted share-based XXXX $XX.X to of unrealized expense

$XX.X tax after gain net share. compensation estimated million including second non-cash share adjusted based or $XX.X million for Excluding impact income million expense, hedges of $X.X on quarter for $X.XX pretax items, per and our the unrealized was

credit September facility. XX, revolving we million drawn $XXX had As on of our

on discussed, XX% a the who increased made credit As owe special especially this possible. base you the our the to than closing million We our $XXX facility Paul to borrowing of the increase more transaction. thank banks, upon underwriters was

we in credit. for As of a million $XXX.X ended including available $XXX.X the reduction letters quarter million $XXX,XXX result, cash which in reflects for in a $XXX,XXX and the with liquidity, revolver,

XX, of the of pleased down the pay million reduction to based on $XX August the our subsequent the conditions. and further moving an to transaction debt are capital we closing by and overall look forward spending We on facility additional forward to market timing

of quarter currently third of the total are during warrant. a of reflect X.X X $X.XX million X our of at common XX cash. price common per the exercised warrants and million Accordingly, third count, common share in shares our receipt a quarter results at that of of unexercised. warrants had we million remain approximately issuance million our a Looking There

The average convertible the of XX.X we In the our addition, basic Stronghold the of stock shares is million as the the October preferred of approval approximately stock common and following the by assets. third shares convertible a for for conversion outstanding of shares primary shares count driver XXX,XXX XX.X part the on stronghold to This stock the of vote variance stockholder common approximately quarter. preferred owners and consideration acquisition, stock of issued was diluted million into converted in of XX. the

As a have million currently shares approximately result, common we XXX.X outstanding.

the outlook. to Turning

For expect our with per to the continuous guidance Stronghold This day sales continue program XX% full drilling the to midpoint assets fourth late XX,XXX acquired the we reflects benefit of production initiated we of BOEs from the of a quarter XXXX, third representing January. increase from of the and quarter. XX,XXX the quarter in of a volumes

approximately capital XX% fourth we than discussed, anticipate million which prior Paul quarter our $XX expenditures to estimate. $XX lower is of As million,

placing third horizontal and Basin three completing wells, to including to vertical in two and and including Platform wells, wells online remaining Drilling North and eight Central completing two shelf in includes in outlook spending in South. quarter. drilled the four the Northwest CBP four the the wells nine Our five

expect to in XX also X platform recomplete south. We the basin central to wells

targeting we $XX.XX quarter $XX.XX a per fourth LOE, the cents are BOE. of to For cents range

capital horizontal XXXX of to quarter wells volumes full-year the the compared sales and materially, assets CBP our to flexibility acquired year, Hub XXXX gas to the of and based of Henry all sales the assumed fourth reiterating prices well ‘XX are note Mcf. or projects grow in assets, a were capital have and Capital combination vertical to $XXX CTRs. on million would $X that necessary. estimates $XX to anticipated recently balanced outlook efficient plan price oil a on as legacy South slightly include back terms on recompletions we that calendar as expenditures In to volumes. per performing to $XXX If I spending prices barrel natural $X million are pull of as reduce drilling WTI of of per we $XX wells average maintain

June, throughout add our on discussed to Stronghold and in late we CBP to third we pricing As began in to support we our strong opportunistically levels secure of position acquisition continued assets, call, add hedges last the our of hedge to quarter. more

expanded Our us production basis. to our on RBL XX% a hedge month PDP of requires rolling XX

We're for a now off forward gas and included it have summary table earnings the to remaining a our hedges our also and COVID. closing of in on looking comments before For roll we Paul? to low-price turn release reference, we with XX-Q oil answer Paul we hedge during his the positions. put will I back questions.

Thank Travis. you,

As of the said third for our shareholders. period truly the call, quarter the of beginning at our beginning and transformational the a represents I company

that to are we changes position take much flexibility in to marketplace the in As now financial a of with and stronger opportunities advantage the appear. react may

to believe we continuing natural for reduce enjoying In will our absolute spending regard. targeted closing, today, to program operations are available return from a have in our levels to pursue our higher long-term our production, oil whether use and be our enjoy capital During to cash the XXXX, production because focus flexibility accelerating organically maintaining that we workforce the pursue debt shareholders. value, prices opportunities debt, to this justify to their dedication. company our maximize efforts slightly debt capital acquisitions further target what on program want If that reduction, shareholder development and thank sustained expanding and or we grow the gas or our than excess I tireless growing plan we

success we we shareholders and continued the that, turn I forward as Ring support will though, position answering creation. Operator? long to and value to I thank want questions. operator, With for their your call As further the our for important back term also to look

Campbell [Operator from Instructions] Global -- today will Jeffrey be from Partners. Alliance

relative Looks new is was area strong the for want two, the one on expectation XXXX? more measurement Paul, target area two drilling compare whatever new could using preferentially positive the based indicate to wondering be whether about XX on versus drilled over target on ask the drilling wanted one if in in drilling these area two areas data Congratulations Stronghold their will first quarter. data. I area new can size target I with production And Slide target somewhat you to? you you like

a stab to turn going I'm Yes. color. of to give first give then that, to some I'll but over to my it guys more

we've the And made production to decisions we'll past. so in and the talked infrastructure. we've about we maximize existing that allowed When be of got several juggling, the and we our on legacy the allocation our utility things moved acreage, rig this

up drill the Platform systems Northwest would Shelf we go in drill we'd drill where in The example, the down back for we disposal up. by well. rooms and Central we southern thing that's had the the to again so declined time, And acreage happen fill where and wells that until And wells we and until will same in we'd the as more that filled, move our saltwater will Basin we North. could

have areas with economics to drill. the new strong We we that of a plan wells that couple very have got respect to

We saltwater limitations, disposal it or have whether infrastructure electricity. be

us rigs to will to you'll moving so drill and wells Like, example. non-performing forth to want we much capital. basically minimize so And -- the what we that saltwater don't our disposal find call we be non drill for it back additional forces

how go highest again, that rates the the the so that's be will value forward. just But the targeting returns. have. And maximizing of we of a existing of all infrastructure It's of program kind function will we

that. you if And always so be next top have the it typically will best well at want the the to will list, drilled next call things of

over little more. him And on to Marinos to love explain I so bit and my would it. have this take turn that's a

in about infrastructure perfectly. in one it's Paul, area all target Yes, the the assets, it you assets. vertical versus southern the two hit

working resolved, Paul able capital a non-performing will so get have things that to be bottlenecks we that have once now. We pivot to couple we like the moment's right a spend of we through notice are those we And mentioned. don't at

I That that. appreciate was excellent really color.

at Basin horizontal the maybe completion be you the a had in if Basin lessons some unsold. of might just worth you Delaware commodity in or have period have another assets We the I point. that very look that for shallow supportive programs learned still assets it Delaware the remain your wondering was will Stronghold prices completions yet had or time, make learn giving improvements some

I any good to get of from areas the just where in either the or at our today's Platform. time Shelf, we and when a right But prices. mean, up stack of look Basin it northern isn't And it have out allocate opportunities questions. have those -- they I economic And Central from my Northwest are that in have well. the that's you my the best I do We my the question as in can Delaware opportunities in capital perspective, to returns this Delaware similar investment first Basin, heard now, the Basin undeveloped shareholders. type opportunities responsibility there southern at don't

so a as core this allocate for area And past, have for is to us. non truly Again, mentioned there. in challenging we it's me real capital the

they economic, cost, production, so lower the it's stack up. And much just returns are don't but shallower much still

a invest. to that's can't where something so find nutshell, in have really allocating to we better We the when ourselves And -- place capital Jeff? just

sale the Is compete they since of there to try affect assets left further in anything don't portfolio? to the your to do

they to area all parties Yes, we'll discussions of There are focus we is -- find And with we And might But things. an if of drives don't elsewhere. us will are what believe for of us telling expressed ongoing we couple and because be interest, we and we in site successful area successful, our I up, these no it's that again, whether not and ourselves work somewhat auction. are. say of a have to actually I an with think focus have there set continue think interest we but expressions Alex it do. wants not be will that

to in Alex? want jump there, You

but of echo question. Paul's and had Delaware, assets Jeff, a Shelf this it's that apply asset just one very Northwest it the that and, you guy, bigger shallower from we but asset, on and CBP of here our where I distinguishes Alex. located, to that you're to voice. could also, is learned lessons comments with of is probably big wanted the valid thing you're because big the Yes, a kind competing some

versus for our where economics superior. And be so in just CBP we to those in just assets that competing equipment keep services there are proving Shelf, Northwest and

So still on assets, reason our we why our focus on another just tradition. that's

next And the will be Neal the next from question, Dingmann question from Truist.

you the Could refrac where about you talk said in opportunities guys infrastructure. and

take on. it I'll

we're through. on some there's the multiple of navigating some areas and constraints have So, vertical assets them electrical that

is Our go -- to which they're to bottlenecks changes of those and away lines the middle anticipating substations. partners there, provides XXXX. the And for the transmission through going some electricity, all by the

So things do. can that that'll open up we

on are better have update to what get -- then has has given also and now, more to get navigating and right resolved become compared for things, area. more provided area something we've looking area now far. those we what improve through right allow getting the Basically in those, one maybe information one to certain freshwater at guidance the And we us to. become once areas, of we're provided that Once the we we'll active that'll in Alex other is we as that revise we've that target results. those We area, supply so on production efficient add resolved our the

I'd more like to add Neil, thing. one Yeah,

in is. vertical. And here our sprinkle obviously Northwest obviously so that of we're projects team a through, both types but that to horizontal a point, completions month is to program, you're of able these investment can there's you in variety we But where few to see that re working on Marina's certain the every ops things going there, we and these and both have and drilling as have the CBP, Shelf and in see, depending

that you slide type page we've and a new XX gives performance like. And investment it where on what for what is so, feel and a that added

respect racks, there an you so but question Now, limitations, frac. getting refracs can fresh water limitations back re with have infrastructure is out not we to with water here having Neil, your again, for though, associated to only the opportunity

And will testing those And makes be we’ll us. some results, out into as have believe what so ideas talk and that as for year. I Neil? that question, -- ideas this as generate answer hope go trying we question. such And more there part Did I an XXXX XXXX we year exciting to we'll about of we've answered your your

Research. And from next be will Tower question Jeff Robertson the Water from

Paul, the the you -- as can recompletions then you in capital quarter? assets the on that performance you talk or about allocating And also talk rates the of the Stronghold about on the of ranking bit your you stack? new Northwest of Stronghold amongst or assets. in and provide little detail the Can return just the assets rank a where Shelf highest return rate performed

assets, Historically, Yes, look go Shelf and our Northwest operations return. we quite tended if cost, it provide of lower you back the often. no, the legacy That's and a breakeven higher rates a very good. get question, at good the on very to

you year we legacy tail as if Central we we some last at did what in the new of Basin ideas. our decided acreage so were end to try recall the XXXX evaluating And platform, and

landing prove geologists on Our zones. could we felt our like

with two that up wells year apply some this right could drilled like felt last we've really we that results. one engineers or there still they rank methods. the fact, to Northwest completion their positive Matter year And demonstrated changes got that Shelf wells. and of Our

of return And and the costs so the between very are break the low even areas. two rates similar

to through of rates But the and complete -- the you drill because of capital so too part mentioned that us ones from production they the wells. just just are to help improves have in costs receive to the service in South starting the rates return competitive I the service going less southern And this return. Stronghold, the tanks, the the invoices the benefit acquired added simply you're very the oil I've the time we By the efficiency in into that now just provided and companies get your past. think, the

And get so simply the quicker. to rates be you return and tend because so superior time just turnaround much the revenue

are part that these very, when can that of ones platform. that northern in you out of we the areas Central are them, Shelf at opportunities rival look Northwest competitive all so you in Basin and very have the And or it south find and the equal, the the turns

opportunities. a those But the rig on Basin we'll question, your based also in all we we'll year, see these in have of on we these running find part where of in Central to have And very that's be Shelf Northwest back we'll southern a next Basin to our and the of so ourselves, but the northern then, back rig the what of Central bounce And demo sprinkling you'll and platform going platform, will in of forth. and and perception part the areas up get returns. are competitive, northern all

of similar all measure our they're they're and to -- within rates so them And pre-drill. the very return, ability

payback sounds maybe cycle, And can your there's assets? a on capital shorter Southern the does down cycle you how to quickly CVP some faster some the a of of like allocation it come you so which -- capital,

Absolutely.

very, The And so to the and leads -- that And time important. it that return. is sooner cycle of very investment just that start goes return, rate rate for it paying you your yourself of right? improves can

from get the the horizontal Shelf. away increases created However, wells in hard it's net by large to drilling value also in Northwest present

breakeven and high which, so entire return. portfolio we the diverse of low of costs more the rates have a benefit all of have portfolio, investment And

up, us forward go the profile going make. as And so that by production for capital mixing we steady to investments allow to that it's have more a much we

your answered Jeff. question, that hope I So

blue you fleets that in well re-completion gives on that since X we gray. September Stronghold performance But That's side acquisition. take historical about X. I'll took lot three first of that is on operations the the of Stronghold X recomplete the me wells doing team not Slide the did the you asked right reference only that Again, in to on let those are the of recomplete wells Jeff, the done part Slide us the the of includes which slide hand a chart over three acquisition. there. of recent XXXX, every -- average Those prior in top. question,

XX.

XX, Slide I’m sorry.

Yeah, you said Slide X.

XX.

you. see Slide Thank well I didn't on X. data any

to So -- backed you somebody

that Exactly. word well. on He had a as

is question Please Brothers. go next Noel ahead. from from Tuohy The Parks

morning. Good

of Just a couple things.

could of terms properties, maintenance sort legacy Just in issue had some align the was was with of a permitting wonder things, you status region. you pretty all a you But it I just standards of Stronghold months do also of you about few -- plant tight already being your mentioned talk have and in cleanup asset, as to how wells? practices? electricity what are the management, few well, the an sort the in that, with found bit it if you to or like And own just

it acquisition. the that type good to well up the reason acquisition, all to Commissioner very of you respect keeping job. and the I'd good you typical out part Yes, and neat question. surprise really that's with are that in been the with good they locations to the Stronghold some are a With tidy. proud Railroad of going their come And about find to surprises. we are a encountered associated why these an are of They very get we terms locations But was to of They thing very taken assets always conscientious, any now, well-constructed. clean have have kind targeted to surprise managing. of. a for assets. goes The back be did care They

that our so completely And we very over we're our all although taken all of records of smoothly. gone and everything done all accounting have and has operations integrating far, in, and not

will we quarter. go mid so set these of finish And I think we management we be into these that the quarter integration are will existing And team. in by this assets our before the of just holidays, under assets assets managing another

And with that's happy so very way we are going. the

think I quite about, about want but side, for sort the Services And water expensive maybe about the on I expensive great. as more rig breakeven could last to are on weren't roughly say, materials for a cost we the maybe time being talking the environment, talk handling maybe talked more tight. lot. Okay, of a just Where assets? being it side. assumptions case, given using worst you the of we

roughly just also good inflation economic have you breakeven a maybe mean, component, ballpark, that price? So do just a with or I good

Yes.

question so a down. that's complex actually you drilling real start when And

so you basically our at when costs look margins. breakeven operations, our the existing And there are

the And and so, we all both properties acreage. on very south in have high our margins of legacy the

a some the of what And they perhaps lowest deliver our conventional breakeven future rod even pursuing. that of believe in been and winning have we've they're past, we more care resources has enjoyed there's we the assets mentioned it so where our the you a I'm Again, costs much break proven we've about don't type to not decline, but you say we've when applying for with I industry. -- to strategy to of investments the -- this for investments, is a be And production going lowest, nature of tends the because, longer it's costs conventional enjoyed the technology in and much pursuing talk shallower have the lives. a look. to and develop strategy unconventional

there's just, so there. The economics And very superior. are very, a niche

the in are even like Northern part costs have in Northwest just we said, the so, and the as in the break competitive I as Shelf. And of the CBP, southern many CBP

have range. re-completions are we portfolio than balanced, very a a And very now so are now right enjoying less million the drilling that well that's million talking we the $X.X from we're And million opportunities $X.X Everything recompletions, because diverse. but in those to dollars.

We range, have of can $X to $X.X drill and $X.X all slightly the different and million return all break rates can that very have costs. of in for $X.X million even and we that million have million wells low very, that profiles, range which drill wells which are superior we of

generate return. a what does, our so balance a sheet return, predictable that diversity more that with helps stable And helps more

going Marino And to there in here. allow so, to jump that? have I'm anything I've think else I question. answered your Is on you

do problems, alarm these shell So whatnot planning plan that assets. activity types water. we'll We higher, or if the in it. more happen. now. anyone We're solve I have happens, are that And are not challenges plays I the on mean just to in others more we with we it and right problems as talk the can our maybe to the in face we going easy, the on of what in we or everything that didn't not the drills electricity we feel new but not feel to or whatnot. little like on facing about but going based solve -- on the available a services. solve, jump pivot It's we Once productive that bank to until we're can we going I, that and comfortable that's it's do,

solve through have it's go So, our do. of are and work, what not plan. firm we that's we're and planning just about, we or something can't believers going to that We're worried it's something to

just remember thirties our that is price I sort and the so ahead recent that I move this before Well, mean, perspective, seen for in during commodity actually upper call certainly the I and drill. to WTI was way lean of boom thirties, guess we've economic oil doable times. realized

thinking with I for looking at and I'm that still some say the mean, if the $XX of properties? all work So everything, we're WTI, does inflation properties, a

up good bringing very some you're points. Again,

our with G&A, and $XX what at got -- costs like we've environment back we organization during needed got other this the carry. got look got to was an we shareholders. we've and our you to that remember though this, our COVID, you even $XX, If breakeven costs shared were We

the influence of So than that our wells drilling just it's more decision. the cost

believe have seen, So if you the up. to we and costs more inflation going inflation, you whether environment the look that yes, have today's come are post we've at

be We at we during are in we to $XX at because that much today, haven't would bet to but -- to from look of pursue we're $XX? COVID. you calculation, it would cost a barrel, Has so gone at the office as sure And that at gone carry price, good getting activity rent cost were our long investments -- G&A a that could out and and because have. I'm else you and shooting of maintain also activity we from you environment the $XX? for we I $XX a environment probably higher could hip that and at that. And yes, that some if pay here, the everything up also still back were we than as I can. this look continue capital our a standpoint we're but

others today of if investment that in COVID industry to organization, cost we overall believe $XX. say. you back kind and that Is the still But $XX many position, now. $XX the of It's economics very so making look stable carry right are a or we yes, compared at it And XX? the or very it that as it to hard a in is this I position it enjoys is Ring was favorable

and gentlemen, to so showing no I'm over any the at further turn remarks. this conference Ladies back like questions, time closing Paul McKinney I'd to for

Yes. Again, all thank time Thank joined your for for you, investment. us interest our I'd of to and of your today investors Chad. that and trust you like and all

stockholders. that will year and of this We believe for bring. rest are truly the year XXXX bring and XXXX an our We exciting excited about what Ring will

them. Ring. your talk forward And so Thank everybody about meantime, In you interest to for we again care. to time in the the we next take get look

Thank attending now concluded. And thank for conference The you you, presentation. sir. today's

You may now disconnect.