Chord Energy (CHRD) 3 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the Chord Energy’s Second Quarter 2023 Earnings Results Conference Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Michael Lou, Chief Financial Officer. Please go ahead.

Megan. you, Thank everyone. Good morning, are operational reporting XXXX we second our and results. financial Today, quarter to our We're you have delighted on call. I'm joined members other Rimer, Chip today by of Danny the Brown, and team.

different your our be to to statements risks those are could releases Reform within from the that the advised Act. we of forward-looking remarks, cause meaning and to Securities conference be statements that and uncertainties in that answers Please be disclosed actual subject to our Private questions, the These include believe statements materially including currently results Litigation forward-looking earnings calls.

and others, statements. that Commission, quarterly releases Exchange filings XX-Q. Form among forward-looking include, risks any reports our in the in with have including earnings our Those to on well our our as update disclaim matters these XX-K We we annual and described obligation report Securities as Form on

will conference our find our reconciliations GAAP presentation, can the on applicable call, this measures, earnings which current non-GAAP our and During be our and we also reference you reference to We in may releases can make measures investor to website. found website. on

that, the I'll to over CEO, Brown. With call Danny our turn

joining Thank is you thank Michael. everyone call. to know you, what And I a who's morning. And busy very our

integrate Chord a to done organization. expectations our the what XX and to more new, resilient over with of that, So the in stronger addition premiere the has to for operators like months recognize discussing two Basin briefly balance quarterly and results and year, also past Williston I'd form

practices expand synergies. financial including capitalize capture accomplished, very using never legacy what is team of on of fulfilling significant has and organizations two commitment integration to I and our operating am to that the and proud While easy, the best the

that returns our out also we program to very investors. to return delivering both sheet believe a what rolled year our we to of on peer capital our the One balance showed commitment and leading We've be shareholders. ago, to been focused

dividends. $XXX For the repurchasing returned XXXX transaction via another And share billion X, XX, XX shortly discounted steeply form buybacks, the aggressively in after XXXX, to months June million from July closed. we’ve of shares $X.X the including

We've and anniversary assets, operations including have to advantages. non-core portfolio, where XTO streamlining the close and of the also scale bolt-on closing and one-year selling directing on our acquisition strengthened focus the we competitive

recently to pleased very she team, experience also Shannon that was XX General legal I'm as announce where Shannon Vice Counsel over brings Corporate most of Executive added our General joins Kinney, member ConocoPhillips, we've and Vice President key years a from to President, our and Deputy us and her with executive Secretary. Counsel

absolutely forward We to the Shannon expertise have her as and we of from look as and are team benefiting part her forward. with working thrilled move to

the Michael base wells, underlying the more sequentially. detail topic this operational again strong will performance, acceleration in realizations very performance turning organization asset Now, on in gas the provide softer expectations. volumes turned-in-lines were or while early the delivery quarter, and from NGL TILs And shortly. quarter, attention of once and delivered total to resulting underpinned above by solid new volume oil This our was and

other items and guidance. Capital with expectations in right and were generally line

share. of variable in with unchanged this reimbursed return given our will us. declared at non-operated account, million a in of to free the base with $X.XX which capital and been framework, $X.XX $XX a So booked sold around cash and flow wellbores dividend we And free is flow adjusted $XXX which had of quarter, dividend share of removal per all generated this which we generation of which include presented taking deck million remains into be on cash keeping during capital, does per from our

free words, adjusted generated XX% between variable reminder, second $XX As quarter million million $X aggregate minus of payment is difference approximately of approximately dividend the in base million minus the flow of the cash the is In share the second flow of a $XXX $XX target repurchases. variable payout, through the of repurchases. dividends amount our dividend share free distributed designed base and to any quarter the and and million cash other difference make between up

to said capital intrinsic to program in we last quarter, share demonstrates the to Accordingly, before, recognition discount in dividend. as share of I've percentage value. and the capital as shareholder trades increase accounted peers return capital our pure is As leading we commitment returned we we relative after repurchases our for capital our noted believe core both that And believe and base discipline XX% our our repurchases of of quarter, return at returns. second and almost aimed

repurchases, we to mix share and continue a and return dividends, variable share be will of As look capital through forward, base dividends. with opportunistic repurchases, we

development, of shifting Now most part important our topics of know, XXXX to on an and the call are X-mile as beyond. those in laterals program

we've seen and performance day, a specifically, by So Either around X-mile from contribution time the strong out. are XX clearly little we're and on seeing protis portions going are is stimulated and so and from cleaned we I once forward. performance encouraged what want far. with expecting rock the seeing the performance we've I'm that laterals, of improving when More spend XXXX, combined latest well lateral to discussing delivery XX tilled our the a wells

X-mile shows, and schedule. of presentation materially drilling we over wells running nine little few now reduced At are for ahead times our past of the a Slide year, have

stimulate steady clean vast to of the have improvements and the able also outside, we've been the X-mile. On generally majority and access made

about longer EUR uplift As a XX% for lateral wells, X-mile reminder completion a we drilling assuming costs. are and and XX% more XX% for

miles. percentage XX% out. we're volume third way, a only practice what seeing productive we're the cleaned the mile is the as two as In mile proportional assuming is the response to another third first that's Said of

clean been XX% all a TIL an to again, instances, we've our well to out last just in to out some that discussed. once But I So generally with unable and longer uplift of this production for portion assumption anticipated delivering the a lead small the in XX% a approximate way that mile. cleaned can In is productivity the the TIL was XX% EUR. we've reduction

analysis performance on more outperforming same our the wells in of are shows which investor presentation area. wells the X-mile two provided nine mile clearly We slide

Additionally, we as contributing using at production on performed a see you side which slide to are left of points to study time. of in can lateral XX, determine tracer the portions the specific

a test, this plus stages cleaned from total that observed further For only production initially, lateral, intentionally in out using response plugs. one stages out. or we was despite were the the cleaned not dissolvable well And the strong two

TIL response from the XX to a unclean saw production stages to back came later portion weeks strong subsequently the We weld and the previously wellbore. out of clean the

a results improved large has exciting, laterals, Given are these opportunity, number represent our the the X-mile that an and execution of are has seeing laterals we efficiency been performance potential quarter improving. capital

is to capital are XX% And lateral, outs the third obviously that time to could Tubing increase allow number the which the for cost we believe operation more even Coiled efficiency little our very effective efficiency all the would us enhance our which ensure a drill the a low spending further. mile way to TIL of

mile spacing, we be of both increase XX, per running believe slightly attributed in reduce slide can we is the three laterals our discussed, aggregate, to can and which practice capital improve well just well of performance the of asset. Finally, variability This as favorable well across to expectations. efficiency that wider on the well recoveries performance as effectiveness our see you of

of XXXX. $XX development, second million. million approximately of Moving This results, from non-operated additional we announced approximately $XX of Chord concurrent on properties includes sale for for had spinning, noncore capital budgeted with quarter the for not proceeds reimbursement

capital the guidance. return. and the second cash Given quarter capital free will We it was not this of be flow part of from our reimbursed excluded purposes adjusted CapEx for and original

you in our deck. see As can

non-core Well XXX per volumes barrels day. of these sales oil associated with approximate

scattered not sales the XXX oil For per outside but associated the are Basin. with wellbore wells day clarity, the with are of Williston associated barrels legacy non-up

second Chord a is announced updated position oil million the which was excellent day natural is XXXX. in the demonstrates reflect year acres. $XX X to per asset Year-to-date, This over sales which our We've now and of bolt-on day to of supplement guidance half assets inventory, in acquisition over of gain contributing and million production synergies approximately XTO Bakken, these full from the scale XXXX barrels our our core has an bolt-on non-core sales. from

metrics. We to which enhanced flow further immediately range year six cash In importantly, able added to also mile two convert light we we free our flow, million This deal, accretive DSUs above, into net were and to approximately return a the of of have full XXX million. to $XXX locations forecasts Chord of is the our mile DSUs. the three economics capital and $XXX updated to cash

investment CapEx million $XX additional larger with midpoint completions capital, drilling maintaining million, the increased due $XX associated non-operating annual of to largely and base production reimbursed approximately of moving forward. activity the a Excluding

on while expects year. thanks Chord piece update to of brief sustainability its the a to ESG. this finally, publish company as the team a we combined safety to and proudly other great quarter energy the our report and putting a My operations, third in together for the And world continued first improving -- commitment aspects work, emissions will delivering sustainable of on it our highlight will and needs. of continuous focus and improvement

than through the become up, either things and sum substantially organization integration we are stronger are company. merger well, performing have To assets a legacy

support high are and compelling levels keenly we sustainable flow free focused a and on as continuing have of We forward. deliver outlook, move to financial cash

I'll Michael now to updates. some additional turn it for over

handful and financial and discuss guidance. XXXX the I'll second key our Thanks highlight a updated Danny. quarter operating for of items

midpoint volumes by were strong were over high volumes volumes. oil the guidance about mentioned Daniel of Total second above guidance. NGL X.X% quarter, As the in driven end

Bakken This ethane ethane midstream but a recovery portion of to weaker from as ethane the became in rejection in quarter our second higher barrel. overall to NGL realizations the saw we quarter. As pivot larger volumes, first led NGL providers

combination were Conway a associated realizations impacted NGL [ph] addition, by TNF fees. prices with impacts In and our lower of

quarter and impacted TNF based gas on second gas a were With prices are residue realizations allocated percent of in the disproportionately NGL Our fees revenues. quarter-over-quarter. NGL Uyghur

realization updated market recent have to guidance We conditions. reflect

improve a higher which both and NGLs times gas fees gathering with for a Bakken should as other into seem hurts second Henry higher pricing, prices does but are Hub leverage, basins. quarter operating drives in realizations bottom prices weaker It and of improving Clearly processing late third recover. like has along the higher the and gas versus quickly This NGL hit in prices. quarter bit

the schedule is concentrated similar third increases and in we expected activity fourth Our XXXX to quarters. production sequential activity leading TIL second quarters, and the what earlier to is in third in year, the

activity we Danny fourth the some As frac quarter. to added mentioned,

most However, be until wells out XXXX. cleaned of not early the will

XXXX. no impact there's in So volume

to contract was quarter, little in oil beginning a a Turning GPT a On a contract above. to contract. from second was while transportation crude below the GPT converted cash sales LOE costs, midpoint guidance, we marketing

profit operating were which so better Dakota to based, at on standpoint, tax revenue, our in change change higher a the going of an of From resulted our than end weaker this coupled Production forward. higher it higher taxes expected but neutral. was range. this oil X.X% as higher does percentage realizations. gas result in We've with reported crude But GPT of is production guidance prices the taxes In result volume gas a and also oil production, of production updated North are guidance gas reflect revenue.

it will recover, percentage lower of prices gas drive revenues. As a

at become larger and a and addition, revenue gas higher portion is rate continues taxed than to In of NGLs. oil a

Chord gas contribution million reflects extraction within as guidance Dakota Our the higher was quarter, G&A to well expense cash as forward revenue was July. $XX.X second in North which the oils escalation range. an tax in guidance in

Our $XX unchanged remains at million. to million guidance XXXX G&A $XX

And no Chord oil quarter. second expects $XX and taxes between taxes barrel. the the and paid to cash second year in half Chord $XX the XX% EBITDA at second of approximate per of between cash half X% prices during

mostly $XX midpoint, Our capital with higher activity quarter frac reflecting associated fourth increased guidance the XTO full about budget year was million bolt-on. at

commitments cash that June on borrowing Turning net million billion, deal remains XX. at closed Cash drawn XTO of remain of to $XXX liquidity, June was final XX, of payments XX. Chords approximately the bolt-on nothing made is June $X for to $X.X as base elected which as with the billion,

profile, In as and drive closing, continues program. execute which leading as the strong supports of Chord our our capital returns, team peer sustainable cash flow to well return well, free

for program this returns Bakken more to team led capital our has Our the superior drive efficient in a to and our shareholders. continues

last we to result, XX share a cash $XX along the of per XXX of returned share with in have buybacks. the As about million shareholders months,

since driven return approximately this And has last total a July. closed shareholder of the XX% merger

also energy, courage continued of care cost We and world. to right. what each to for always and to are do proud team, communities, a a incredibly our who We're proud better provider of and the safe the is which reliable other Chord for show be feels low entire

With that, call I'll to for over back Megan hand questions. the

question with first Hanold from ahead. Please Scott [Operator Markets. Instructions] The comes RBC Capital go

longer good mile wells, is Dan you some us give wondering, and Can was more three take make sure shallower leads like just total higher EUR? cost it's more of that give I does that kind cleaned does details some And Thanks, curiosity. sense, those it cleaning do the that you out on you you morning. of Is out? or properly influence of IP to when the rate? out more get to do ultimately a it contribution, when decline that typically,

for question, Thanks Scott. the

go different if additional over at the and with And first, from see, more I the think a of to early need a the really take laterals what rates, general, and X-miles. the time. time IP going have I'm ask So really is X-miles ultimately, larger part think in question, in than a But, production second to because is longer about then we too ended X-mile isn't your decline of facilities, up color feeding that a this, for to shallower I'll then just on early with with to. stab Chip that running we for you period time in way we designing production flat we reservoir not X-miles just we mile X- X-mile we're going

the to Coiled part the me, the but is IPs a actually And the things that's so the operation out From in EUR Tubing better is one exciting of one on X-miles versus big perspective, cost a really that uplift TILs clearly capital in getting portions the of efficient. to lot and generally involved operations X-miles operation. more lowest much cleanouts not the of of

cost making further at And that that from much it actually so can spending end But all. significantly and cleaned get time of us out portion the getting improved is sure contribution well. the doesn't end to a all little we the way some deliver very volume

a may we but not where be There will out, XXX% there, incremental of third that to that which lot get essentially to has be, the to longer entire get any yes, out So, operations closer contribution a times fantastic. spending for. from don't entire there whole maybe in of cost little mile XXX% the cleaned up be big that us XX% a to mile, move will lateral opportunity contribution the for cleaned third

Chip let I'll as in So weigh well.

what Yes, clean then, versus flatter Scott, of on this is Chip. Yes, see I doing. said, dissolving agree the Danny not. IPs. And do were have dissolvable plugs wellbore actually we run We're XXX% for to we a what the course have longer, test or

and test ran see So on. be to and, that at able going we what's look those tracers and

understanding Danny contribution and is dollars lot across out better amount that a identifying the a done, able what of bit, indicated, but little of we So wellbore. be all very small to knock when as said and last it's have is the

is the they're for of as to get to thing really XX% possible. to finding of time, certain designs knocking certain as can make wellbore. [ph] get really fluids, I'm out thank we excited, very sure hopefully I are this quickly team a So amount small want But additional, ways

factors. I milers is, or with online good. efficiency that guess three improvement bit a I given those that guess these that be about seems And say momentum getting an OFS of ducks sounds and it leads early of XXXX it, back to we to moving with program more, a I'd me be next on more of guess reductions, bit little your then Does XXXX? think a cost you you because say that to the as have And gets does into little That those question in coupled I to able capital What going mentioned. two see should the favor? obviously

all capital aspects I look think Scott, efficiency So, business. trying clearly, in we're efficiency, we improve capital drive as to of our forward,

obviously, always coil that that. with opportunity this helps X-mile with just outs the And laterals additional that's tubing the here. we us the see for drill over we discussed, So and driver

we obviously have that's for very certainly higher sort early some lower, items to well. costs sticky. We've that, it's encouraging which process. that provide and as prices, items but also services, some still we're that are deflationary a seeing but I to maybe likely in line we're are probably bit service environment a From our really recovery roll to full think And I'd we've that labor generally now certainly some in oil is that bit cost to with service some got forward signs say, support of a oilfield planning line thankful and seen

So maintenance essentially quite that's with probably going talk working completely that that yet, early think seeing encouraging manner respect signs, roll we're specific in is further. XXXX, little we'll and about to And need possible. we’re in that to going We're provide to to his later I our deflation XXXX. ready we'll efficient a a the come do as I'm we're develop think this more I full current plan not see through And plan -- a year. capital with level versus guidance out year to

that. Understood, thanks for

Stifel, question next Derrick ahead. Whitfield go with from Our please comes

Thanks. strong Good Congrats another all. on quarter. morning,

first question, build on Scott's to I my question. wanted for So

that for the of tracer proof you recovery the that Given to is mile? your the bias show inch up last data slide on you XX, assumptions

that time, say one Derrick. sorry, I'm more

assumptions mile proof your lateral? presentation, inch given data, that the on your the of of to up Sure, you XX for last recovery of tracer does the bias slide the

if vision wells, recovery see, we're think we're more the this, I on mile get to gotten implication. we've the is I we able way the data to successful, gotten in essentially to to that’s for able out as to that as the XX% last able toe, we're the have been think all think I lateral six last out entire plane That down. we've Derrick, getting the

that. up if implications that the lines start moving other to can we with last the from early results sort laterals is we've in that of recovery mile. seen results see So up recovery the we'll the that done, last XX% coming And through closer XXX% we've mile

So here. that's goal the

stabilized if guys well at now private follow to wanted equity you are I to Thanks, in Willesden as my Danny. speak And the ask the could was flow environment in deal affluence? present. specifically, More greater up, trending seemingly is AMD seeing higher you that

Yes, Derrick in been my a of private of sort across bit small say perspective there's of a equity from opportunities. you variety from I'd I'd assets positions little whole always private say assets know, equity, trades to chatter Willesden from different

we've know and I've that noticeable a so don't of we our some steady of don't in some that seen got position our lot come that been I through it's if a ear and been just Willesden. things And but bit with ground the in I uptick of them the a it's to think transact them transact evaluate

in act organization we we that XTO value acquisition, for on. equate pay saw opportunities accomplish going what's The and the are like with basin -- consolidator trying going think to that it is we which and you out -- we We attention that we as so and can there the within think, it's fit did. a acquisition feel for have with really we natural to what And to shareholders. we're well when XTO to

your time. Thanks for great. That's

with Neal question Dingmann go next from Our Truist. Please comes ahead.

point you from you some see driving details Good remarkable in just if laterals, that Indian -- just, could wondering Could you there? tell is results spacing, efficiencies, know, me the what's to you still Hills? water guys. I'm morning,

thanks, Neil. Yes,

and color wells laterals. Chip off have we lead those moved the additional in just Hills, we've toward wider, some spot Indian it's we spaced then with good think commentary. I'll In a and want basin, out it's again, ask So here more I weigh X-mile

of I really so it's a of it's a, of it's And X-mile a, think and subsurface quality spacing, a combination laterals. and wider

of got great and that, shows of we're that a it's, portion the on but of contribution the slide so three we but combination the in with. happy deck it's asset, really variant And all things, think of can, graphic those it's us we've and of our where a a it's one super some I

exactly right. you're no, Neal,

year, going I in We're going this different think that what's shows half back slide same on there. areas across spacing and those spots with think taking on you're page thoughts to and basin. other some laterals and the I of longer see is the going basin nine, this

that's we're of So to what rest some the excited year, I have year the working. season. do early going how think able be Indian results or really we'll next for Hill, to next later that's probably the what and seeing But see about

working formulate Yes, And I Danny you diverge to about were be return. second it really this I -- remarks, think of doing you shareholder more you wondering bites. to you'll kind just this from about well, plan? guys. opportunistic they'd my before. prepared seems of in then And just know, does would talked on talked what go a mean you as you've

there's thoughts So of I'm maybe if there. to going unique like just any wondering plan a

we some compelling the us we more intrinsic thought allowed do opened we were about a particularly some We too on restrictive our we Neal, aperture share to performance, always were how more, to we've was as it's thought value to opportunity. just repurchases. being talked us allowed is others. quarter, As there, standpoint, up And from it's the judging do last an relative were pretty

we were is keeping with the early focused this what departure, dividends, think bit a being, I we on quarter, this program percentage of last in from what the clearly did in variable talked a through. capital of we looking framework, standpoint. And at we were a return again, So about where least just because at more

But repurchases. think that continue more opened So flowing opportunistically. about more that to was share up, as we've we'll aperture fluid toward

is part ethos of great just of committed program. very to I is, the a return organization. thing the the strong we're think It's

value to think undervalued versus our continue And and we do that. intrinsic versus our we'll so And we're peers.

of lot And sense made share us. so repurchases to a those

this. Thanks, It's great guys to with well you Dan. see doing have

Thanks, Neal.

Capital with from please ahead. Johnston next Philip One, Our comes question go

Thanks. Hey, guys.

context that for a implies in some And in spending momentum maybe production CapEx large next what should we'll about fairly reduction you QX. Can how provide see that into we Your year? means think there? guidance going

Yeah, thanks, Philip.

early we about, -- year together talked guidance we really a put we out sort the set crew. We the of one a when months year. where frack we as of budget of and added started for to that through We've the third So program warmer get winter And into got easier the operate got North quarter. frack the crew as in essentially Dakota. we end with lasts

quarter And quarter two third and crews only predicated so we will really frack weather quarter, North ran around just second and run winter first fourth in quarter and that's And Dakota. one.

really that we'll spinning there. So capital the drop crew away the are off, frack commits will completion, explains from program and fall that the drop all

to continue well. we'll we'll get wells first capital activity. And quarter a as and the fourth those as resuming bit we into quarter the then into Now, tilt start

run winter So capital avoid provide to cyclicality to it's real the program think production you it from we the perspective. some the in I recognize way some harsh does efficient just some an difficulties really operations more weather of that but profile we have where that that produced, can

Yeah.

Or you do significantly mix And you next of it'll so. kind directionally, sense. out Obviously, year be of think you you or on rig of a and so? kind the three-mile it's be intention think about keep into around year, program volumes makes just next Okay, looking do do of sort early it'll year? that's kind to relatively half-ish then then, flat. that similar the think of XX% laterals, And mentioned a three different but or this

the perspective, year, we'll relatively through And probably from Lateral year. is Three pretty run think next think should a still the program year, around to will it similar be I but anticipation I program we're be that similar. specific Mile drill drilling working four-rig a DSU my next this

good. Okay, sounds Thank you.

Yep. Thanks Philip.

Our go question TPH. comes Please from ahead. Oliver next with Huang

running morning, taking just improvements Michael, been side of drilling Danny, wanted for of over rather kind The things. hit and questions. Chip my had to how on room the Three all this you team. Thanks on sizable Good I much wondering on laterals, just do fruit six captured? at Or last already see the hanging more the months, Mile low front? been the

end? how continue? potential dovetails pace And also, how for to think this or should accelerated And might program? the increase If we into XXXX help about the year were

Appreciate done the And going It's we on best the companies really Chip we Rimer. think practices team from script at about mentioned I was, Yeah, forward. the excited in here. both best his practices, what question. earlier I'm the looked has Danny capitalize

prior averaging assembly you XX see things, it's they're every and So or bid can just from lot best or little two different And it's to bottomhole, just probably designs different put through the time. a one The merger, together those BH bit to days. to of fluids not guys things. practices, a designs, tweaking system

prices also, right they've what be excited, right been board on knock and the the move just So able putting together. those with Finding down. rigs people to quicker and be to able

three the do? But another now to more six harder from I make going and say for they're to chase continue things to months they it going days a So, do little to efficient. am down

So that's it. exciting about piece

count, then the by drilling this do we'll doing play your keep duck And we'll excited on our is really just but So it. right the teams now, what side. by

to really so sides, I excited the facility the they're organization, across what to grave, the side from it's cradle whole think completion And doing. it's

And wanted Mile on Thanks, just Three appreciate kind the up of color there. follow side but on the Laterals, things. facility just to of the

in Bank, more and start As activity you Butte. Painted Red to do like just areas Foreman Woods all

historically? Three Lateral less is walls, level just understand, areas would activity we the good an on increased be probably where Or given Mile to at side facility there's constraints there? little trying in looking of other shape Just bit the pretty the been a

a great a that's I think Oliver, question. that's So

make have sure takeaway facilities. long we're our we there, local or systems to and we're more our As through development or pipelines the that drilling the be put volumes we have whether through infrastructure haul program cautious together, gathering to do that

where And so plan of that we goes all on time. into drilling over kind

So significant there anticipate result of as us because constraints areas, go the of these we I any other in. sort have we'll don't infrastructure precede a as going into

design that's that's, program. the how So we'll

inventory strong a the have acreage Now Oliver, large is Bakken. we the across in here the nice portion of thing

efficiency. They larger we you're we out drilling infrastructure, as over are in get capital area. constraints the all different program that areas. a spreading spread have good minimized because out, So And actually

pipeline every is it So one you're going to all bit a in concentrating be because better little not area. off

the other gas Rimer, gas Chip so one those but capture area. also I is concentrated capture. high, it's thing keep in numbers Oliver, We not it's to think aim you're up the,

color. the guys. appreciate for Awesome, Thanks time, the

Bank from Our next Instructions] America. go with ahead. of question [Operator Please comes Abbott John

you if GP&T. to no that, thank understand for from is But you a the benefit and understand that to better to impact accounting on there's I just the morning, change if Good make the the versus is So assuming you could benefit what our the change contract? and taking to see there's first no neutrality? margin. sales question realisation are And questions. why the My if transportation switching is you? --what we of going

a it's of question, We contract Yeah, of good a kind form we're. some we're changes is of just terms The in John. how small how made operating.

actually think I so, changes overall don't it margins. And

of kind talked we so that. about And

and very But is move realization strong bit. were. TI. we make strong, Part that taken they very, as And still didn't not just we side. differential up in little on of a realized the have realizations just to that positive where GPT the base, We there's they're overall still a quite as that they're same

but reality, take that it deal, it side And does take up. didn't specific up, In that one realizations GPT on that on move contract. up so that we does realization

helpful. for quickly very just Michael. then And That's

cash rates thoughts year, understanding for What's cash would guidance how of to in for look XXXX the Mike, your beyond as half of tax that X% terms So the of so to your zero XX% have just tax trends? latest and the EBITDA. you second

taxes, of price. oil zero $XX this of so and at XX% part to Yeah, $XX year, cash later kind

of If thing you look kind of at range, in $XX that is kind to next somewhere forward, in going year same X% to $XX neighborhood. XX%, probably that the

that's are cash kind range going we So thinking be going to be of about. forward. taxpaying the be going But to to

questions. Very helpful. Thank you for taking your

John. Thanks,

would session. Officer back the for our concludes conference This question-and-answer Executive Chief Brown, to to over Danny closing any turn I remarks. like

succeed And their for the team to companies just thank Last pivotal to want Megan. put for capital know shareholders integrate going value efficient and our a to employees call. close our committed to year our while commitment pivotable dedication in us Chord and to company. maintaining for through Thanks, balance strong sheet to worked say operations organization. I Well, hard great year positioned position I investors, And to and the joining to predecessor was disciplined our to of out everyone forward. a deliver Chord's its a for allocation, I'd operations. Thanks, responsible remaining

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

You disconnect. may now