Chord Energy (CHRD) 8 Aug 242024 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Chord Energy Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. This call is being recorded on Thursday, August 8, 2024. I would now like to turn the conference over to Bob Bakanauskas, Managing Director of Investor Relations. Please go ahead.

morning, good and Matthew, everyone. Thanks, Bakanauskas This second we're our today, XXXX is financial Bob quarter and reporting and operating results. We're call. you on have delighted to the be Lou, we of Commercial the Securities questions, today statements Chief meaning our COO; Act. remarks, forward-looking CFO; joined by including as Brown, answers believed be Robuck, CEO; I'm include of other advised well members our Danny and Richard your Strategy team. Please the statements Darrin Officer; Private Michael and to as Henke, the that our to within our the our Reform that Litigation forward-looking These be that materially to and in risks to could those from and releases currently disclosed statements uncertainties subject are different our results cause calls. actual earnings the conference others, earnings to any that in our XX-K filings among described quarterly including Exchange our as Form on matters releases disclaim forward-looking well the annual Form have our obligation Securities with and and update reports our these Commission, we Those statements. risks on as report include, XX-Q. We

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

And our turn with that, the Brown. I to CEO, Danny will call over

overview year very morning, capital on our second and our of a I as Good outlook. morning, updates busy our our a of it's thank and everyone, recognize so brief Bob. to call. well Thanks, you for full quarter I joining as return plan performance provide

on to for then on financial Darrin. it with integration before a little Enerplus up passing Darrin We'll it on passing Richard I'll Additionally, color synergies give results. it will Q&A. details give and some to to more open our operations our before

quarter, great another delivered returns. strong Chord shareholder resulted which summary, in in So,

lease timing of costs. reflecting Capital top adjustments by done. So versus below expectations, in also volumes results performance toward guidance, some team downtime. our less second lower reflecting and was maintenance thanks program operating Well and end Many diving our quarter the favorable came operating oil expectations, expense and the board. were well across to the delivering favorable to driven in, really less downtime strong for

divestitures. cash a cash quarterly Chord and forma this our free basis, above return million expectations, was of and of was includes the will quarter flow not Given in $X.XX dividend flow of framework, In asset and dividend $XXX To share. $XX through of share free second base Enerplus' $XX cash of excludes strong and was million. performance, variable pro accordance results with we a on original of adjusted quarter of be adjusted XX% declared approximately full shareholders. guidance the approximately capital, will nonoperated contemplated that which This a capital million, share course per given repurchases per in normal return free flow $X.XX end, our to reimbursed our

made the the would nonpublic during impacted acquisition and the repurchases material timing of with somewhat information filings the share that our note possession by various was I quarter. associated Enerplus of

Additionally, third full and night, last guidance. updated we quarter year issued

on do discussed fall and per focused in will increase count late activity resulted day. pro program. We new strong lower plus summer the in versus winter. mind, as executing Chord frac a which With currently cash range. toward this year. end And turn-in-line crew in expectations by forma to of crew us Chord early we performance I've year year being plan in X even efficient guide full to frac generation, before, due in and free in fairly As and slowed one down year. the results as the sustainable of operated we faster oil above mentioned increase original than year full Chord raise is program not mild the barrels and is in first capital earlier capital development our our to maintenance well This its expected we that volumes half into May, a the and went year and This result as the in move XXX

non-op per result of in unchanged. a the that reflects will basis, the nutshell, full detail. our a increasing versus likely I forma year investing discuss is Richard some we our we combination of you'll Chord should transaction Net with at expected moments the outlook by is But, Concurrently, barrels these seen versus and in year initial while second increasing mentioned Enerplus of few ago, a capital spending we've full nonoperated day team good performance when apples-to-apples XTO an is a LOE for that changes as running with Enerplus. guidance the our expectations. half LOE accounting account of to volumes is that the in acquired note to more May opportunities I capital And as number impacts, the on capital, in XXX our is in will unchanged offsetting as guidance year favorable and notice attractive looking oil date. be combination our pro that capital

asset downtime. techniques enhance efficient of we cash peer-leading Chort past of level in assets program. We benefits our as move core confident The capital The optimized sustainable applying returns years, XXst. of and as return combination laterals, returns, Enerplus. base operations, the has several developed these integration, can and on expect supports a flow the assets Turning and closed free brings the continues top-tier transaction. remained including longer basin, the And strategic by over grow. strong expected we combined in on the conviction it through spacing financial extremely to reducing to and May Enerplus

has some off original well operational very $XXX -- our of estimate technical, enhanced believe from presentation, million. Slide by and the operational know investors any on material in one Williston are am Williston which I resurgence onshore the utilizing we progress and operational ball and in our basin. opportunities the is play oil it and we $XXX the target, to new integration The value revisiting. Number recent in better for I putting what is and let Chord an positive state evolve combined margins lower from realize Our no updated instrumental highlights their the transaction. And importantly, pushing and continued major in company helping one, taken recent dedication of a grateful to integration forward. impressive million improve understand has Basin some deck been going incremental teams how are supports driving achieving basin, best greater combined continues which of marketing of our the great in how attitudes the some operating their focused and our effective efforts up cut, driving XX and will returns. eye and results. Also, going and see scale confident the practices want is current of I up than XX to our synergies you our attractive to is, highest Basin currently strong worth think the if is have organization

wells understanding extending my accurately opinion, modeled. is Second, be understood we the our which only parent-child of isn't it the in play, across means Bakken, with footprint entirety This well Slide generally ratio, learnings, basically more chart the subsurface but our fulsome. both target With interference well our advantage. The productivity differential and the can basins, risk-adjusted well is as of across sharp a basis Bakken a with relative upper an for right-hand a very important shows you will. volatility competitive lower on on are variance. The XX bit adjusted pseudo if screens prolific

Third, ratio. peers. a the regulatory environment develop efficient as Longer is lateral laterals are other land longer more resource support Chord way added in the to low XX excellent and benefit, been as well leader to as the and Lower has Chord's strong compared development returns reinvestment and an

manner. reflecting a sustainability publish year basis culture expect the on around areas, and continuing aspect finally, improve the business or crude oil to is on Williston has to sum on XXXX, years report driving so to we revolves across and only really improvement this the key past ESG Bakken continuous do every reliable a expects over is Lastly, later company. combined returns. And and number affordable improved our remain to and up, a a of consistently Chord Chord's a legacy team it focused many a business in making and Chord the and and also better a to key core Enerplus. In of provide delivering safety. WTI sustainability is place report of the close and phenomenal sustainability energy to full publish running. To decade focused performance committed for differentials summary responsible traded we for including sustainable has emissions takeaway and metrics

half second first So profile great in the shareholder result the the year, to it excited with Darrin. to and the essentially the returns accelerated to summarize, and Chord as and delivered to flow half and as ever We I'll of the start executing high remain in Enerplus XXXX that, transaction turn a production in forward should which look free on beyond. And cash into year.

execute Thanks, Danny. front We continues with operations the had a as excellence. solid the team quarter to on

assets we're performance, make a benefited talking production lower while Chord's the downtime. even thought asset things spend base production I about levels robust of benefited and of wedge well our time from Our better. base to little from we'd great kind doing

a we're lateral increase of asset Enerplus The X-mile Chord's leader in we Pro bottom lateral and last post-frac program Basin of by forma, as productivity the Since to in percent the we the inventory most is longer the is early was know expertise. see, cleanouts. Again, at an on the see to the materially shows the compared shows can well started of First, top Chord we year. right the over of group. half technical high-grade is peer development. a consists next depth second total the of which X-mile longer when left our percentage few applying days peers. years. chart consistently to year, on you relative at approximately Chord's top can believe pack. that opportunity new Chord longer XX% we X that of reach Chord's And lateral laterals, as and wells that It you upper Williston Slide to laterals, last Chord's

delivering coiled to base uplift, approximately X-mile for more routinely wells. since process, is more improved wells model the outperformance already than more most team XX% getting TD EUR in forecast, that especially whereby likely XX% has we're currently PDP reaches some capital. cleanout that XX% on wedge being the tubing It's we our While XX% captured Chord

formally November we what like and our see third mile in results. We to rates update the as quarter to we on relative flowing productivity assumption third part decline certainly portfolio, of Across pressures. expect market our the productivity,

Chord's shows upspacing clients right Referring to chart upper Slide has spacing keep rates basin helped The X. across and than other reinvestment the flat wider production This average operators. the on is low. the shallow,

assets, exists been integrate returns we overall Wider economic opportunity and we spacing spacing efficiency chart the driver case which recent key The shows assesses widely Enerplus to Chord's of [indiscernible] the to optimize with enhance in As spaced from spacing. development well improve an in the has program. half of think Invis DSU the versus lower a enabling Chord's capital those years. tighter study performance a

to The Board all, adding aggregate wells our similar continues DSU most, the core with analyzes deploying peers. spacing, capital. basin. spacing wells shows is Chord capital recovery wider DSU our less the efficiency of result and is across maximize wells well less and substantially and across core success removing merits draining capital opportunities Slide or fewer not if to Continuing continually with Again, position. with entire evaluate X with materially the in than

on just some the where we've we see opportunity. Williston items On asset before drilling thoughts drilling the Like Richard. we ago. to leader [indiscernible] closing times of is in seen performance considerable it applying in the Basin highlighted Chord's Just couple XX, quick continue a since the Enerplus drilling get and on a to by what synergies couple Slide the months we as teams already we integration, Danny techniques, in like improvements passing into mentioned, of deeper see. key

efficiencies has its past the increased completion over with Additionally, zipper fracs. Chord legacy year

We efficiency further expect improvements that completions to the with simul-frac Enerplus achieve used extensively.

progress in the our wanted to XX I months. highlight to over past XX downtime reducing Finally,

further our has continues core As we Chord exciting Richard. and continuous to really curve new improvements made these a see expertise. I'll an side can advance sum its now of on slide, it to for of time team quite and the relentlessly credit downtime it the S by turn expanded right-hand significant that to the innovation want lower operational give on the company, over to front, technical pushes opportunity execute to this meaningful team applying and will strives jumping see you and portfolio. To the a top-notch areas improvement. I and It's proficiently, for on the up, assets

I'll walk the second a for which from remainder the combination contribution you quarter on the May Thanks, include Darrin. both closed results, contributions of from the Enerplus companies. through reflects year Guidance XXst. after

You'll notice through and and through stand-alone might and handful will presentations. Enerplus reclassifications made expected that of Chord's different Chord LOE Enerplus' of presentation statements Enerplus key look historical have through been to a capital. certain items than items at the expensed financials. in or policies accounting looking NGL deduct you gas to what have guidance charge by Certain conform financial revenue Chord

the second as on revenues these of volumes lower adjusted were impact million operating Slide as of and strong Oil offset investor quarter, and NGL [Technical cash especially capitalized pro $XXX alignment between above costs changes a were the In the X% to basis, Additionally, and expense. slightly X% lower that is guidance accounting higher LOE, cash expense. The bridges G&A volumes gas net NGLs. reporting lower the changes is relative Enerplus impact well is of will pricing, to in in about and our Enerplus flow. charges the certain volumes XX second policy presentation about capital and flow accounting neutral lower strong and quarter, capital gas G&A stand-alone Chord impact generated the Difficulty]. midpoint weaker-than-expected differences. free The natural adjusted total for of Chord free forma

gentlemen, and please stand by. Ladies

We are presentation will difficulty shortly. resume experiencing the technical you. and Thank

our lost for to going back This interruption, but Robuck, on again. is Richard I we the you. where where difficulty I'm apologize end, kick little I a up technical think

talking in versus the $X.XX noting were second Hub. the second and at second about for we our of half was and in the of improve WTI that were XX% WTI we percent and NGL were the approximately we expect in were we quarter, quarter, gas realizations realizations a as So WTI year. differentials where to of XX% Henry natural

guidance our Looking placed market structure. top forward, expectations cost our on of reflects

prices drives from fees deducted results our certain percent As gas at NGL benchmark operating higher levels, gas with which both fixed the reminder, of trading deducted weaker from low lower hurts a leverage, and of marketing a are realizations price. prices the for NGLs This in and gas realizations in price prices. as the times fees our

However, where in realization should also improve quickly environments gas prices rise.

a was Turning on BOE quarter costs. maintenance in $X.XX to costs. per below LOE the second our basis was better lower comparable reflecting expectations, and which downtime

to second quarter, we year, expect the back quarter. down down some this step G&A, excluding increase of timing. the year. half was we Cash half in quarter, expect per the during BOE were in $XX.X million workover the come modestly second second forward, to to half which year. Cash the of we the of million Merger merger-related in and expect in $X.XX the $XX.X the reflects costs, costs materially in was this which a the Looking bit back second GPT

which X.X% commodity $X.XXXX to expect in Our is per the G&A Dakota from merger-related guidance the the impact prices. cash gas Mcf to items. Production averaged excludes natural quarter, come to this previously, down on the of we of lowered approximately in gas and trailing sales second second tax production recently North $X.XXX half. taxes related

XX% lower are cash be X% of discussed in than which that expectations are adjusted as expected to May. Chord's of second well. expectations down from full Second cash our guidance year half taxes is tax cash slightly original EBITDA, our half, we the taxes for to XX% original X% to

to transaction paid credit. Net facility, expectations of million liquidity $XXX credit Chord drawn $XXX of in of Chord $XX $XXX facility, had was available we XX, Enerplus million $X.X announced as billion was XXth with June As when $X.X and leverage consistent quarter, senior June of notes. its on credit XXth closing. out at billion, of the on letters Subsequent of X.Xx on million that including about June we million set May approximately cash net the the

some update. our since on put Chord Additionally, last hedges

Our closing, time derivative of an found hard can like work position to been for for it's sincerely dedication presentation. In latest the to exciting their August and investor be I'd thank the company. entire Xth our in Chord. team as

in to Your efforts to position have succeed that, questions. put the the strong going hand I'll over back a company forward. With Matthew for call

[Operator question comes Instructions] Ladies RBC. Scott and begin now gentlemen, Hanold we first the of session. And question-and-answer your will from

seems with it remain it's really update spacing -- and on like wider of working question now. a your basin nicely also EURs your you pretty have latest seems X-mile across the confident with like your I out strategy in

to how you on, length is spacing being to XXXX ERF development going strategy, much your you and be Enerplus quickly to are Chord contemplated of on say, reoriented legacy us about As remind versus think can lateral the start of able some acreage. you assets that the the and

So see you of get into some ground as that running XXXX. the hit we'll

This is Scott. Thanks, Danny.

together know, plan the you we're XXXX full development putting As currently.

that overload up our midstream and area is, it, any more system talk the in, as So we that intent having in end overwhelming think spot. too would on if the in we've mentioned I benefit probably concentrate diversity reason we'll our We of some that of from that The that seen previous programs, we development we've tremendous year. providers. are area. geographic occasions, call the people various sometimes at crews. And overload rigs candidly, we in one the in a location let's be couple end -- about much, the We overload of the

do see drilling the positive -- longer, program the spread really acreage of we at a benefit So the look those a out if historically. at Enerplus areas. delivery wells effect a from a of benefit as can maybe there's And well were we're acquired portfolio wider look than can We bit little as we Enerplus incremental wells particularly a nature position. bit. We little those core we recognize to from or just the we think they little going spacing those in some that

a some to works we'll you'll drill look the on little think year I that full going I it lot just in at opportunity a those how see than is so longer, putting as require that And but that from respacing to and little at we're it differently the been little a feel see together is for how is delivering. program. suspect of some out that great But done about a asset now news It we the really bit 'XX, plan developing we're looking there where wider. historically. we're good program, has benefit and

then of make XX for good XXX pro kind your oil. to to still sense? you And Okay. about feel XXX million that pretty million Does XX still forma

talked of a we've about we long thought for XXX X-mile So -- well. XXX% at a a were time we well least getting about with X-mile

to to getting on a that in, definitively in So the on XX% talk now about some what talk we going the we're final program with the mile. next our slightly mile to good we've bit of we're to seeing. What us that And be we're were you'll contributing. I hear years' that data some on been Xrd the next for, recovery. little anticipating of last that getting about our what Xrd probably because feeling really cases, now this, is a performance seeing. out that pleased across in observe more contribution What went I'll ensure lateral we're wanted being But were Xrd we're those of of think call, that say We mile we to appropriately. lateral in come couple we're still conservative We that we on intend -- underwriting we definitively able call. were more in as areas, really

also those the now. what Can -- on Obviously, And and you the in terms seeing Okay. And so both Enerplus pads. specific things you've Enerplus to drilled far about locations think adopted on the there to things like you're prior talk of question. Chord the relative that here And assets. gotten follow-up what assets? you've improvement are see for on asset is my had some you so month a already -- I of you're have the combined able on but performance, the or

what at you least that So improve well? seeing all what far as are you're could doing

but ensure We steal maybe out thunder to I'll to leverage going team into hopefully ask getting really with let's just this we we're I'm not up the in Yes, Darrin have. by transaction. weigh of approach and an saying on this as have that, gone full of

we're so legacy regardless take organizations. And of seeing practices let's best the

are good on seeing of practices as forward forward. well Chord completion on And as move -- we So move a the Chord already benefits drilling that Enerplus we're some seeing some legacy lot practices and side. both

to Darrin. I'll So turn over it

you what if closed acquisition Scott, at months the Yes, seen Enerplus assets. in a showing we've drilling ago Slide is times XX, XX% improvement we've on here we're just the look of side, cycle left-hand on couple since a

that X continue picked combination, so drill rigs those Enerplus to legacy we as of and on And up part the acreage. rigs

overnight, been able the program the as implement their pumping. and our to the be put times. Then, to barrels simul-frac just panel on showing simul-frac our cycle we're Enerplus zipper innovation crews adopting we're XX% you will be middle legacy a So down frac frac we're expecting there, of ground to drive immediately more able going we've program day program, they that way in more from to are every those

So those at. are a couple looking items we're of

a Another the our that design prefab all forward, we'll across be facility cost well. on going there uses as there'll Chord savings use and of front, significant one acreage

to are items mind that come those So immediately. the X

synergies? -- you relative $XXX the there, us improvement points just million of seeing million incremental showing And Yes. $XXX that synergies? there, the in you're Or are those you're of that data some already those what's is the are contemplated to

of They're giving basket. us $XXX that They're confidence. all part million

number. we'll be that million obviously, exceed to $XXX So that able

And your next question comes Neal from Dingmann.

it guess, were some guys, D&C, definitely comes to you of wondering just Danny, improvements. really continue hitting Mike or on. I and type when see notable you to just Darrin changes, on something what the the I'm

maybe that were think So besides the improvements? spacing? highlight wondering of the these you what even some these? return laterals the Or do extended can type changes just talking in about, could what other of if resulting just for just all it results I'm just be And you are you upside? Is

if things about driving I seen the to, be mean, improvement X it, improvement things laterals. here, call we've the And wider driving talking that. that we're historical So got deck spacing the are material the would the that we've in and biggest relative are longer think I programs the a lot of about

would -- really so really able going stay times? And jumping got in proppant phrase of just and curve there's overlays how how used always aspect spacing this big we we're all and laterals to formation from be, of that we've us. screening how in this your continuous to cycle all practices out, I sort our improve were learned completions S addition you've this what better are better but to drilling sort We without opportunities Those the can for the down improvement curves get to S continuous of work within can better, wider longer X that, before. improvement move jump say drilling, that we organization. completion

the latter we year look X-mile and we're we next year. toward aware to folks are of get laterals planning well forward, As as this as spud think part I into that some

resource. practice the drilling way drain laterals, we more is efficient of far to our that's so just longer to us really continue which advance And opportunity a a great think for to

all is about because of all your of the portion the If that you roads, incremental that drill it, cost the the foot of leverage well, you connections. drilled most efficient infrastructure, foot the of to theoretically midstream you're vertical all able all of the facility you think fixed

it's just of the capital efficiency so a -- it's great way improve to And program.

So I'll thing think opine of come, that's us little to big the Darrin maybe ask for but a next as to I sort biggest well.

Yes.

more about think that, get way our at today and laterals, we about really DSUs. the the to thinking laterals good the see really economics how we'll think of X-mile X-mile those drilling DSUs X-mile X-mile efficient convert X-mile we'll Neil, We're all X-mile as time, wells higher we wells. And some DSUs that better thinking drive at supply into can are X-mile not the point then going we're get comparable DSU the in the across executing and we their sense. hopefully to convert that If have over X-mile supply may at X-mile make How portfolio future. inventory than costs. team our portfolio. a back really DSUs to see and X-mile really is really do the down economics costs expand entire to go and wells, we then and It I

details second maintenance guys. Great. Great And just question. then question on capital. No

think You going job the efficiencies about really have guys because a way, asked with how to do of do to plan there? drop maybe less. mentioned forward the all taken wondering, Is just D&C doing Danny, more a continue you you you maintenance that one great guess go spread. some, I'm I some And on on a forward? another Or

we fairly really a mild we good count around count year, modeled. year, in and was and some if winter, think saw forma performance, a we both at had the the beginning the pro really we the what of had X% early legacy you I and of combined lot What is crew X. in at had we the year early organizations rig sort look in than was the combined more the around got originally done

about -- sustainable not growth. so chasing We're said times, cash generating about production and strong and free flow. we're And we've many

the but execute that going sort that's -- count, crew our the type at of here. going stayed not were the we through to -- growth trying what outspend we capital also we we're had so and X to were to that's really And drive system, production of not plan some

that we So Obviously, and total the back on really obviously, volumes for our about and a to of raising our sort it capital impact one our program with we the near-term brought pull but longer-term feel back. down production, to some has year. good expenditures. a oil on volumes crew volumes, dialed still of those We very

spot. we'll -- good forward. back We pulled So march we -- dropping that We'll as we capital crew. pick in were that back as crew up get we'll by a we move go thought we a on up

back increase sort summer, end So pick back prepared up. see as late we'll get that that we year. -- the And you'll of toward my mentioned reincrease crew count as in late fall, of I the remarks,

and It's level ongoing a that those and that it, X time, with may swing I fluctuate a intent of get program, base It's given an be sort bit with an it to good gains. of probably a going X say just to be to At see drive where goal try point of, call we going X have. in synergies would push crews call is On and X X good basis, forward. amount the to a But would our crew. you below that and on? weather of pro to to numbers the the going have as move good -- given that sort going little weather one vagaries any to good can we have lower winter X been production. efficiency on to make our than and with We're Do forma. we basis it, sort as average opportunities try

Well said.

of TD comes question next from your Deckelbaum Cowen. And David

something just going back huge Danny, progression -- curious, operations. synergy already a Michael, again, the Richard. particularly to that's If legacy you've Chord around slide, downtime. I obviously, was with seen

moderation? the the already Or synergies that's that something something or use be in terms you for production Is into decline base some Enerplus could of baked practices own cost? of of tailwind sort a that capital assets. your on that's As

we forward. the what Yes. -- into we're and us million it, We've dig of into excited baked for we We giving what see a reason. have we plus $XXX it with opportunities we day, that new baked Every see it us. expectations again, confidence teams, say our generally, going synergy we and the our into like with ahead

just years I heard helping combination, a sand. performance that's time been tailing in you talk think run saw David, That's with And the on longer. ESP this transaction. the that out wining that's about lot play couple something the us, the before something you Oasis past helpful for of super over go resin-coated new in

applicable done that will to LOE start through that and through is on that the on those we'll run flow and this, to playbook front. management same that think we in flow and once So we time wells completions getting see

that's do on drive going to we're So it's better the that that of parcel be part performance and thing to going work to type downtime. with

really the on laterals. follow-up is extended My just

like inventory. I all now with pro forma came in highlighted I in think the Enerplus extended to that is extended laterals acreage you about laterals. the XX% XX% know of amenable

all As with acreage, foresee should repermitting leases do incremental of think on how Enerplus' think this Or next just development? laterals and it of should extending the redesigning sort and you treating you we spend? you're land be about year, as

Yes.

tackling I in going be up that's think, longer can the incremental we front us we the generally laterals, speaking, that. to in it's always front bid, acreage we to than the out the latter for looking -- and a can to pick program blocking if former. There's more rigs, extend do of of like

as a well. big Trades we do thing that are

offset provide let and for at same laterals look opportunities core ours. operators for do we longer for trade acreage their and acreage we as up the so their And

of there programs. level -- be there's will some out of in always there your so always spending land And rig front could --

I well otherwise. through the be with geometry just sort It's than think we existing more to have anticipated that don't the working got the replating course changing and going developing would really been would that appreciably spend this. with we and have modeled we've differently differently that units of associated as and see normal that done that -- as

given that. to just 'XX, be to forward on and laterals would follow the you Would beyond? to and of weighted least imply move 'XX that program the relative the sort heavily all as just at 'XX acreage Chord extended the efficiencies more else could equal, I on that If focus

an it's think really around of issue an I -- issue timing.

And so program. and It takes replate time assets, at get the all to as the we look amount opportunity within the development of to some that really re-permitted. that change Enerplus

your those some need front rigs You out by in of of period time.

there we quickly and NPV possible. the get it we in as -- make sure to best recognize capital that that as do into to want as possible, sure manner as make area too, possible, but aware we first. as in a the We and efficient areas so get And do we we great to maximize we that recognize develop right want to that's like

again, time some XXXX take replated, about will out to get going working we as put the development And for us into we year. -- more our And as we're as plans so to can. later we're quick it that that more development towards information specific get

And your next Wolfe Research. question comes from John Abbott of

say they did sorry, I'm John Abbott.

John. Yes,

of a quick Yes. here. quick One couple questions --

has possibly house, discussion when biggest contemplate where biggest you the you Enerplus now guess did assets, surprise? assets, deal, were you and the improve. had of the assets you've [indiscernible] in-house what the in you that been when I now? What synergies not look the you surprise the So has Danny, could the once been what there's lot been contemplating at see have about a

anything I don't a entire the asset -- offsetting would subsurface to thing we've so full this basin. We level basin from great this we we're sure have to across there's the thrilled been markedly we've We fully knew recognize been how don't make think got subsurface. say, work seen transaction this an to with from is that move teams working that together I perspective, because know surprising the integration I think is know through the have great value -- the is us. I as acreage John, The of the was -- able well, a asset forward. we been perspective asset. to

there's us. think position thing our We big the modest seen we've is, was that acreage. of been that I this I just everything we're what to be we whether know going a -- almost don't really And so the And the so great subsurface, or we've legacy been understood because a We just how And about the knew -- looked great we it's surprise that within seeing. at, think with from synergies to it's in think we're wells are upside do? what perspective pleased basin.

the end that contemplating is What starting with potentially of that? of then risk million the $XXX that us moving -- how walk you're of you Could And forward? XXXX. respect to synergies, -- synergies Appreciate. the the at your through do you about think

Well, toward administrative and sort about X we'll is those One of program think combined running historic place result understood. we've part synergies, in capture that programs, looked a really we're reality because of permits at bit. G&A those But the place, really we've in starting involved that's of really, in just talked different et in I some well contracts look synergies year. is instead synergies, this getting as of X a of the think got The to and those understandable we capital just think full probably XXXX, more and I legacy historic we the be we've and we'll get latter of having a -- at categories, sort cetera. in and The XXXX.

so really those capital 'XX, synergies pull in we'll start seeing And through.

first. But those I'll on working them the Richard expense that. that additional that, we're And But We last. of standpoint, to great some well not capture pretty we as have have not gave of getting on this, somewhat later. It's -- we're synergies give of from up an because operating not show we've we that that's we operating about example. early. a why, lot capture in and that talked an a top the ones are interested

resin-coated -- dissynergy been completions. and that's have with sand we we in typically modeled. tail is capital the with our wells a So This

and you with amount found it's more because having And a your operation. of importantly, it into sand is your ESPs. we little to coat this see in capital up so all that facilities the and over include resin into expensive coat dissynergy associated into Replacing prevents an back actually resin is synergies ESP disruptive your down tremendously significant the ESP with and time your wellbore in tremendously tailing well expensive. What flow a fixing

that, in you operating synergies. great real and doing can it it's prevent And so if results

capital we've this that we're this proven dis-synergy so lighting this we it happen a on within synergies. see Oasis to we've We that and occurred. again the expect happen legacy And combination -- happen occasions. saw relates multiple saw program. operating fully this Oasis taken to -- seen different we've because yields the And when We

a takes not that So for ESP -- but that operate while it fail. to

you doesn't don't a tail got you've resin then to with the over. do fail and first, ESP that have the So work and in then

so one And that's example.

that Another our metallurgy that for used proven effect. going out Enerplus, in the really a -- different operations. example installation but in that rate failure moving strings Oasis forward. practice in results on time we've is results something transaction. been through to workover is take the And and historically lower practice in again, implementing Whiting this lower be that different operating we takes a the put We're to There's that's

benefit. synergies, have have a to some benefits obviously practices consolidating and obvious operating so take new lot And will and us, efficiently, it some yield running more we'll routes, the comes hold operating yield but of -- new some then practices to from the that those

And so don't 'XX. that this the really helpful. end until of that's then to color why is we model 'XX and Hopefully,

Danny. helpful, very is That

Capital from next One. Phillips comes Johnston Your question of

a a You've maintenance you low sort cost? maintenance give the can But of current what crews. us like rough as these capital X in your looks at and days program X highlighted terms sense annual rigs of of what

if for XXX,XXX, forma of XXX,XXX, at probably that barrels call pro is standpoint, it, the say, oil of equivalent forma pro from sort billion you around I'd look the Yes. delivery a day. $X.X per XXX,XXX

at so kind of currently. we're where And that's

then you asset an just lateral And us pro about declines. shallower your Okay. on is, corporate longer XX-month the update the rate forma PDP what talked Can on supporting next you give base. decline

had -- I longer few mid-XX% we the magnitude? increases if of then see? a we Or what just a of laterals just of what think kind rate range, as talking I I of kind the follow-up, of my sort I'm not low has mean notes mistaken. And in I points? we guess to to time, impact are kind hundred are basis could over talking mix

Yes.

slightly what if they longer. is looking the BOE, They in the on. but the longer decline out neat you're thing come standpoint, laterals, comes come about the from about slightly that higher, XXs we're for online from stay at higher flat than maybe oil low very higher, they XX% perspective, low an in higher same, a well overall total X-mile slightly there. them I'd not still say come they an on XXs but The historically corporate So low -- than

obviously that's X-mile then does. that more so they from shallowly than And just perspective, a do beneficial. And decline decline well

wells, should percentages expect those moderation -- X-mile mass small in a And but be, see get and so it, decline bigger I in corporate as we And would single-digit that bigger overall we rate. I critical call some of to [indiscernible]. decline our

Your comes Citi. Paul of next from question Diamond

to X just I X little bit. a on touch want Slide and

cumulative the from of kind the you're the about up talked seeing DSUs. on guys spacing that existing You your

variability you're how to at do And is of about want number? see more kind do numbers? much ongoing? you Or right tweaking think to talk Just the there you in those

to leverage and to thing a in to in and Darrin to great field, oil demonstrate There through these bit this our ground wider on seeing. it's seeing obviously I'll maybe across improved change fairly it's we working is it's more -- the is a and this on working little we're just well. is, predictable neat upspacing as is proportional what the The tried fairly different field, investment, to slide consistently as ask spacing just it's in upfront less a weigh out areas of performance the almost pretty thing, increased -- capital spacings. But move get we're we manner. of the practices that the obviously, completion ability for and that

we that conservative recognize side currently the we are We of -- are this. on more

one all we of talk inventory, about the sort -- on predicated new our as of we very so is as look. that's our talk this And about things conservative

across that at basin, is but there's to to our tighter we're are be slightly are do spacing we looking we've going We recognize looking got at -- ways want really and what this practices. things. about and We Enerplus think well, and working had other we the humble back

don't dramatic a increased want spacing that well spacing well could going be back be and and be go sure slightly make in X.X the that, we by may we're looking per program. It some looking may see is section. here. optimized. much And so more the or it been from to spacing And well X we're to you I across conservative program areas, we've than at will this think but us

know really we're a so who that don't And improvement. said I it remarks, values continuous the prepared company in

We're where in better. going to going of to work now thick we're it. So But on the the we're doing be we're trying with development is really at. program. never to satisfied be that right And Darrin always get

it to I'm to over turn So maybe going him.

Yes.

much at have time I is to is drill DSU that when to well drill production and spacing data, the maybe we thing more parent we're wells sure with from greatest think detail time. Again, the cumulative But we really most are think that spacing the only look latest at to I schedule Danny's DSU assemble were spacing the the at data in drain actually together, and [indiscernible] we that it recent going all when make every comes and when real drilled. the look in out most at figure correct optimal remarks putting and actually what go add make would optimally. and we from wells the about that we inventory, to look that what the just AFEs sure that we and that

it again iterative when schedule comes gets then inventory, So it's really the part an process to put of at done initially time as together. but gets relooked that drill

the clarity. appreciate I Understood.

ahead? I Just of Is out more? where kind you a if with number the happy of the current you where environment? modeling right see you're months do at all quick right were do the kind some follow-up you of now What 'XX quick adding guess are kind I in as or kind of the for potentially to around number, look guys see kind hedging. of XX forward in it --

current relative a need has the in few of of some we've what say production Yes. here commodity our the over done the majority environment have just speaking, we the Well, we a have is program oil clean and underlying healthy sheet and and interesting Generally to the low seen balance weeks. a think reinvestment past the we've think commodity. I'd is of dividend volatility think capital defendable low commodity to to that we very a exposed got down rate. very return And have of obviously we've We got to to very levels.

do lot put a into to sense level don't so And some within makes business. to predictability think we hedging. We some hedging -- of the need of

we'll the pricing. areas emotion take think, little of And lean of in pricing. a of more we lower and of we bit programmatically. We'll a lean XX%, do it, in times a sort out generally, little and to little quarters, To call a historically it so higher XX% of try to over build times hedging, out in historically we book bit hedge pretty X

We'll a majority commodity the XX% about would over exposed. we'll up over again, hedged. be the and so it quarter always And build never X quarters prompt have of

Hungness America. comes of question And Bank your next of Noah from

are buyback here. versus deal, I I the be wanted variable buyback and thinking wondering impacted thinking has I today but versus how was Enerplus is to start on know dividend changed that the buybacks maybe kind guys about how of ago? by you the a window month

thought both we've that Yes. there's the always for the Well, room variable repurchase. dividend and share

flow an now the in effective as free like that outlet well. -- just true program, our return It's at our think see where quarter, it, nice we trading every great an cash as a up way shares. But to I generated have equity capital we versus as the of plus the a shares we intrinsic to is a, This we as a where the XX% are to quarter. currently the opportunity being dividends we to repurchase pricing, particularly well. think variable given see of call conservative where are value mid-cycle

with free up the repurchase flow past. of year get you so get quarter, good earlier little CapEx. or by you seen done, weren't the certainly a -- We've or end those good maybe the what LOE in share all in in you you incremental anticipated to cash than early that sometimes, so And able is surprised

you have market. could where can't and you be in positions material in just nonpublic the be you Or information

in And plus variable thing. delivering a at XX% of is so good that free dividend a flow those to with an outlook least we're ensure instances, having cash

So that's kind it. of about how we think

versus at share As relative our standpoint we from do it try relative look the to performance our intrinsic that at a in and peers. value and look repurchases, look we at

a lot this but think both program. we different we've we look a for And lenses got place within at, there's of so that our at

kind have I started Canadian appreciate TMX differentials as And that. have guidance? the then over back here. X. the Clearbook that barrels Slide bounced Awesome. improved differential of clearly later going because the in And that noticed to west? 'XX in that of I to is flow Is captured

kind start the the Early It's differentials supply of you of improve little through some think the things. did come in the refinery coming the with some half differentials Yes. the online, with a back I basin. peaking turnarounds million you're of combination coming little towards back production bit year. of bit think, of little to towards that, in getting half of the seeing with have a year, barrels of improve little along I towards year. will, It's off bit a the off a X.X kind bit TMX basin a

Awesome. Really appreciate it.

[ last your from Oliver Wong question comes TPH. of And ]

Michael, Danny, team. Richard and

the that you laterals. X-mile able hoping was be recent the changes, and have what factors on modifications been I or better based made X-mile off might forward? more program start potentially learnings those initial could recovery Just the of on in to wanted all around to improvements, some laterals on that going comment technologies drive

Darrin ask off, Well, I'll start Oliver, and weigh to in.

better that the at gone that better single unconventional through us you we've this go with is think that really consistently tubing, as say time and to -- do how again, all that I to to learned we've importantly, biggest would it, that. has is get improved, through any something, industry one, have thing with do which is, the toe for way certainly and option and our practices and I and you you practice get cleanout time time as a biggest development. The cost-effective demonstrated thing generally coil and most the -- ton the

to basis, laterals, out space Again, to the ones one learned to this we've things be what of maybe easy but get maybe X -- but think would ton our be ask nothing there, the to but on more. that do that our relative in always on along completion miles associated -- a what some so there. drilling that not some and And easy, fantastic some the do, about thought we a certainly in relative I'll outs confident feel have would but the easier have with our with in accomplish. practices. weigh way, all We've significant with Darrin is how We on we pretty really clean are driven learnings pretty been results we easier. We recoveries

Yes.

Danny look on hit You nail online. peers, wells out upper of to leading look right Slide the if cleaned else head. months pack. Danny. of to and the more getting the mean, coming wells I production I our X, getting is don't And function post at the our we're a know our much add And I out and panel the X really them have frac at I definitely that, It of think versus recent first

Oliver, I a just may things. few add

just to and a great think the team. celebrate question I really it's chance a

the basin the Over really it. think, and X-mile in changed the our think, move and how laterals. we're us of seen, of of trajectory moving months, It's, basin leader last I I to looking the really XX at you've be kind inventory

change. of huge rate just So a

on also that opportunities us as for Enerplus about. think some comes -- what it's I acreage to improve providing the of

all facets seeing, move of XX months. think, You're that last over I the

the faster. really whether drilling much getting So it's times,

were taking it's up. about, is that Darrin and better Our practice then getting really all Danny cleanouts talking the our productivity completion and

and laterals months a do we're make ago, kind hopeful been exciting, that the super leaning laterals I the we're versus for continue going these that were on excited more today, and to team the us a seems X-mile So also team the that opportunity. that I more say to laterals, again X-mile would to that the of that's with norm kind think X-mile it chance X-mile where the show massive can into forward. show of and we gets just of laterals XX progress almost standard We've

just helpful That's Perfect. And super follow-up. maybe quick color. a

potential capture. captured in time to potential magnitude with late million-plus to align closer uplift synergies. on Slide wanted that great 'XX, target? assume fruit that kind Or how of just to the Does ask get show contemplated wanted of to a downtime LOE will of job XX, be be your is should of a lot 'XX that this that on Just early the confirm slide. I low-hanging the this Is already to to upside? improvement potential frame kind that in $XXX there? But might commentary relatively

and the already the we're it's thinking $XXX million contemplated plus. about how synergies Yes, in

earlier comment comes perhaps 'XX Many of the one that in improvements the is 'XX, would add probably going late the remarks I -- to nail he some those even to when see hit the And on it Danny's the we're downtime. head. to

one Chord we that time. we were the might getting doing, well to wells -- when However, see is we historically the Enerplus well on was down, gets that relative sooner on what very in and a quickly about goes half

capture be the into that's to something we that be we workovers able to to We've on that so rig should count, do increased workover -- quicker. able synergy relative queue, is away. And right our should and the one and downtime the getting that we're all

There call like for to to are now no I'd CEO, time. further the questions Brown, Danny this over at back closing turn comments.

Matthew. Well, thank you,

to world-class So change Bakken the strong Chord in a with a drive opportunities accelerate premier is it the And basin, is sees a their our relates our with of efficiency and creation. work I and array close economics operator thanks all out resource continued appreciate to wide call. Chord's of rate to thank joining of dedication. employees returns economic interest, everyone's I for as and and hard to and for that, value want

conference. your lines. you We concludes you ask that disconnect and thank and today's Ladies this for please gentlemen, participating