Chord Energy (CHRD) 7 Nov 242024 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Chord Energy Third Quarter 2024 Earnings Call. [Operator Instructions] This call is being recorded on Thursday, November 7, 2024. I would now like to turn the conference over to Bob Bakanauskas, Vice President, Investor Relations. Please go ahead.

Thank you, Dion, and good morning, everyone. Bakanauskas. Bob is This our XXXX reporting results. and third we're financial quarter operational Today,

Reform our advised Private Commercial are on Richard team. Brown, by within Lou, believe you to including to Robuck, Act. our Strategy forward-looking call. Michael We other have today our the our statements CFO; the delighted our Darrin Securities statements answers Officer; Henke, members I'm and joined CEO; Chief COO; and of that include we the to meaning that the of the Litigation Please be remarks, your questions, be Danny

well others, Form are these to earnings risks release that results on earnings those described annual These our subject forward-looking as our we cause Commission, different filings disclosed and could our currently uncertainties We and actual report on conference obligation XX-Q. statements our have disclaim be from Securities matters materially to release update among and quarterly calls. in our that with Those Exchange forward-looking in the in to statements. include, risks reports including and Form XX-K as any

Danny During also the turn GAAP our presentation, can call this non-GAAP found reference make I'll the find And and be Brown. release our CEO, which reference may over on applicable our in can earnings current website. that, measures you reconciliations and We call, on will to website. with measures we to to investor our our

morning, Good everyone, for our Bob. Thanks, thanks joining call. and

there, our outlook, who discussion turn I return X-year capital a Darrin which think support will capital Chord's quarter resulting what third improvements, Over which our including plan of night. we released to is comment provide last it of overview the turning performance the to on efficiency From Chord outlook. compelling next few operations, a I'll minutes, brief before and to

spread to in which to to take before on property more wanted Dakota. recent a results events damage some North on it open moments and state, pass portion Q&A. will comments X to northwest But for then Richard in quick well to that, led our the make October, wildfires up fatalities as Darrin details as financial and it equipment. of several the I In early we before tragically few

We the safe. Chord are that very thankful is team

However, with our prayers and affected as are and rebuild. thoughts communities citizens the they

grateful we MHA and shut Chord fires proactively the Nation with quarter curtailments per and expect local leadership authorities. and The our is both the production of state also and our in fourth about barrels sites XXX impact efforts oil for is volumes by of coordinated to during various the to day, short-lived, the and be guidance. oil the personnel, were for facilities field our reflected shown which in which of

free operating yielding Turning cash quarter with another above delivered robust results. which to third returns. solid shareholder great results, supported quarter flow expectations, Chord

well Specifically, reflecting end lower by guidance, cost driven to lower-than-expected strong third as execution, efficiencies, expectations, quarter below operational adjustments and volumes were oil performance Capital of was toward downtime. as program. the the well timing top

improve operating flow strong XX% and This to My million, field, for performance came teams and job of shareholders. amount expectations margins. development Chord board, adjusted continues really the this results execution to as returning free by led also the $XXX favorable will the to below expenses thanks to Operating all. across team approximately of quarter cash fantastic in our delivering for be

variable per share. course $X.XX we dividend and declared repurchases dividend share our a $XXX per Given of the our of base share of of quarter in $X.XX million, normal

X.X% After share bought the XX% capital we of represented quarter, over outstanding. of base return repurchases dividend, the and for shares back

expect current this share lean environment. see buybacks into valuation to compelling we at in continue the our price, Given we to

use to acquired announced via the well and of net proceeds opportunities as divestiture repurchase acquisition the assets Basin DJ shares. Enerplus fund Chord to Additionally, expects the as transaction

course any to incremental related DJ We would normal to the capital to be the program. sale of return repurchases expect

divestiture, Additionally, full increased impact pro year, we guidance. last for year second the the oil forma from third outperformance night, issued guidance this the fourth mostly the Net updated time full and we in reflecting despite quarter year the fires, quarter. of

full guidance trimmed also We reflecting year improved efficiencies. program capital

are We year this with we're also are the and on on progress over last operating trending front. so well pleased expenses or the seeing

volumes reflect gas our to nonoperated lowered estimates production. we our latest for Finally, Marcellus

The plan. drive capture to diligently X-year the our working to been and integrate synergy Enerplus has efficiency. our Chord assets, Turning enhance team capital

providing at with XXX,XXX confident from a the per we medium-term billion barrels to integration We $X.X of holding that our along oil with are annual XXXX for year. namely XXXX per capital XXX,XXX through far outlook feel organization, expenditures now enough steady volumes day

plan annually team synergies of Our operational has created their inventory. strong quality on capturing represents the through and over value focus reflects improvement, our continuous and depth performance, of $XXX million the the

and see across aspects to to upside these lengths, work reduction push we plans to all lateral look, we as Importantly, wells extend incorporating including our business. X-mile improvement continue this current cost and further is of and our continuous

our have economic, feel accomplished have confidence deliver and Our to lower-risk, of production is yet paired valuable great believe decline a a oil of high and highly a assumptions and conservatively coupled increasingly a inventory. We which deep what our strategic and with about oil-rich what and actions, operational rare spaced base, low underlying asset. in our has cut substantial lot performance fantastic created operations team, Chord we've we plans. is with portfolio

reminder, a oil from recovery major Williston graph well per XX contrasting of presentation, basins in better a the standpoint. material investment average cumulative time. our investors included versus added attractive We've helping lower is the terms we've in how an As focused some on Basin understand

wells simplistic can is and if as But of We does think of misconception the versus basins. clearly cost, favorably with a is that data the out well admittedly other such you quite Bakken's higher as a other highlight oily This other see competes other look Williston cost Basin are you the than materially at well is basins. ignores there measures, of it productivity Williston it supply factors how that productive there but basins. bit basin-specific

assets and delivered us team folks production state-reported our opportunity an about in help understand early queries understand beat recently to we quarter, in the investors third data seen data. better led have had call may that trying to guidance. the I our oil as concerns to production from meeting this While have another use wanted to trends

do of production First, ultimate of a capacity related factors. other productive by and the inherent wells' is to host a issues, may artificial recovery. testing early to time and that have disposal These constraints, or myriad water volatile factors midstream include expected lift installation, inherently impacted downtime with nothing

sharper there's methodology. at instances, wells the In across are a also Second, variability basin online IPs flowback and brought high declines. on some

you instances, online wells other time more While resulting longer-term less gradually, early in production but see brought performance. improved

others more As average spaced drilling laterals than a reminder, to longer shifted and the widely has on in basin. Chord

these our we initially from time. wells back don't ultimate recovery higher as declines benefit While hard as operators, lower flow over we and wells believe some other

we Note as the on rates initial is production Cum while we X, oil This our move lateral longer shows with best laterals, well Cum that the and our up average Slide more the demonstrated which X-month are increased are length. performers. as in lockstep that are XX-month among to basin, moving not Chord's

show divided program production will So early will when looking length at well a perfect increases, by the productivity, as the be denominator average lateral time and lower greater of productivity.

meaning resulting Slide two these per and to laterals average This X-mile program. up of the for it catching foot cost we and wells. analysis as foot the and by are the see overall well dividing drilling the and XXXX lower, lateral completions higher capital the things: shows adjusts to misses per productivity X completions due we returns well One, decline; foot, dramatically over productivity factors per longer drilling to two, a recovery lower for efficiency time XXXX significantly as are cost. costs length well By Chord's gives adjusted sense and to relative move

of to job great for up conservative light do ESG sum to I generate upon couldn't coming I'll variability be we due see, nature more feedback team the efforts from flowback investors and stakeholders it finally, reductions, but turn welcome strategy, I To the and our in report. progress look state to communities program an it of value quickly business, discussing below with before this concentration and last our and it and highlighting are shape As wider substantial Thank ultimately and working of together governance, and returns. turn lateral spacing, the delivering long-term In say efficiency and a so as that a stakeholders, up, capital responsible the sustainability higher of a business and health years. inherent we we the With transparency ever in with well philanthropy building in does the longer published over on to sustainable future summarize, our to to Chord's safety, of We little observe X-mile committed pleased stronger that, Chord and want it longer topics. We surpasses a a greatly XXXX, on forward I and other efforts can you to near-term to starts data our program we are Darrin. improved affordable serve. recently and laterals. And for fabulous putting the corporate to To wells. spirit delivering our energy data our emissions and in workforce, XXXX the catches off manner. our to our XXXX Darrin, you position to reliable in is year encourage

quarter themselves deliver. it giving momentum efficiencies into and base impressed XXXX have leveraging the the team discuss continuous drive year few all been a the the of take strong and now asset the our I've at and improvement been innovation. as Operationally, constantly was of want Danny. and to beyond. team to culture a Chord minutes operational to challenges Chord with and Thanks, strength factors a continues technology I as through almost

been past improve. line wells the times over and turned industry an cycle in impressive. executing in few while the years, lateral remains have continue XXX X-mile laterals longer D&C We've Chord and to cleanouts leader results in

type we quarter, recoveries X-mile the XX our original updated highlights yielding wells third be efficiency. than presentation mile formally essentially ultimate and over our with is identical miles. production to to assumption This to investor higher curves, better history X recovery sufficient increased X our the Slide productivity capital illustrate of first

mile team the has materially on we that consists few Pro increase cleaning out can TD drilling technical forma, longer approximately over out Chord next percentage One of most years. and reaching plugs frac XX% the inventory believe successful accomplishments the we been of the involves largest Chord's third routinely where laterals, and wells. the

spud lateral lateral on update X-mile quick X-mile Chord plans XXXX. a several wells. Just in and recently its more first

X-mile well of next more the to first X-mile our to implement from expect by second in We are likely have XXXX. results wells year and half

but capital remain Turning across longer Chord's operators. improve benefits to favorably. integration, well highlights Wider extremely compares been recent wells flat than production strategic spacing. laterals It's of spacing as relative not in it we has spacing to This financial important as tend to peers, Chord's declines Slide keep spacing and the advantage a to driven transaction. shallower the basin the less quite initial our helped to by conservative other wider average delivered shallow, Chord's X capital. Relative only recoveries declines with years to rate well. efficiency similar reinvestment DSU substantially in has is Enerplus have spacing low. rates which has confident This key decline and and wider consider is driver

a Our and driven outlined people, is our X-year the by outstanding assets, has combined job an remarkable performance integrating plan advancements all synergy quarter. operational and processes where improvement done delivering capture. systems, Danny operational the team while

downtime. developed assets years, Board techniques several on optimized legacy it expects longer past enhance laterals, to and returns spacing reduced including over has the Enerplus by applying

we management for addition to and In lower times drilling to approach, cycle completion continue drive our both asset operations.

quarter. To the X set put are per the this with over of than year wells drilling specs, feet to more of X in the we the ago. Enerplus new in are perspective, On we legacy side, X being XX% we our drilling drilled we rigs process and continue in third were fastest just day records Chord upgrading to

which has on On in feet in the has are [ pads, per completion side, operations getting Simul-frac frac increase savings nonproductive and driven well time, leading production we day. to implementing down a resulted quicker. most XX% ] cost simul-frac

profit practices including continues Our across sand. operations asset XXX% down costs especially driven to wellbore, has entire as team while utilizing local improve, entire costs across adopt driving our improvement. we the also Chord's by continuous Downtime best

strong and has long-term to it We over delivering returns. impressive Chord consistent on of outlook. up, record now To it Richard. sum track an look execution I'll forward our turn to

our comments discuss and volumes, on above the Oil volumes million good the cost in to the focus the top of updates flow I'll quarter were Chord then third Oil with total contributing free top results were quarter volumes generated WTI. and $XXX realizations of the In $X.XX third capital Darrin. guidance, averaged control to quarter, cash the about end third adjusted my Thanks, upside. strong lower towards guidance. while below end.

the impacted prices which are mostly our dislocating and a discount per percent low outlook, pricing which Henry dislocation our into averaged as from quarter Realized at time. end guidance time gas correlated. started Hub which end historical range of the realizations last set its hub by negatively at AECO range the was weaker the the around $X.XX NGL WTI earnings X% realizations Henry prices the Hub and the of released is depressed at in at gas of Henry were third in of which the than of that AECO, Bakken XX% second were quarter. low was at Hub. the were gas we natural MMBtu, to strip below gas continued

from marketing This times NGLs as both hurts weaker percent fixed lower and in we've which deducted are for natural in NGL of fees higher trading low like experienced. benchmark quarters fees realization gas a leverage, at of prices. certain operating gas results prices price. from gas price the our the Additionally, levels, natural prices, recent With most realizations and our deducted drives

higher Boe, our excluding sales of third in Cash $XX.X Turning to million, workover averaged commodity per was better costs. below contribution the Production downtime per reflecting X% and merger-related in costs. $X.XX million. LOE reflecting at $X.XX Boe. Cash revenue expectation was lower of was operating taxes quarter, GPT mix. costs $XX.X oil G&A

and million below program was expectations. in program CapEx million guidance, timing. $XX our of minor of our below reflecting taxes low efficiencies Cash of the $XXX was end shifts

$X.X under of September Chord of of had billion million its our of at XX credit of $XXX September of commitments. and was XX, billion $X XX. billion, including elected availability billion $X of was net has credit $X.X letters approximately $XX X.Xx which As cash drawn million on Liquidity credit. Net as leverage September facility, facility,

dividends decreased $XXX back our out Enerplus by million, senior the notes million XXX million net During shares we of $XX third even quarter. approximately quarter, million bought during and of we as paid of $XX paid debt and second quarter the

Chord barrels marks As now, XXX we its look forward on about this a pro by volume oil day, which the consecutive basis, increased increase year. a forma second guide guidance

our wildfires. so the guide. Oil the fourth in and year, the to Basin related differentials to day oil all shut-ins The XXX,XXX midpoint Williston barrels of divestiture day quarter that seen improving our in levels adjusting we're approximately have XXX,XXX are quarter the guide DJ oil fourth of per per the the been for we've oil of would of barrels impacts capturing of best

expected quarter. recent earlier, be Our basin-leading the similar realizations continues discussed I gas our due deliver gas realized improvement weaker pricing And The in as AECO is oil been are to pricing. natural to reflected third have realizations pricing to team in guidance. NGL differentials. marketing to AECO natural

Looking gas at rise. time, in should where prices improve further quickly in also and realizations environments

and side cost the On basically the expecting quarter-over-quarter. flat are LOE business, GPT we of

does to merger-related impact it step not and unchanged, of remains guidance which quarter. G&A are items, continuing Our include each the down

WTI, $XX EBITDA quarter down from be the and are our prices per taxes between original at is to expectations. to fourth Cash of X% expected X% ranging adjusted which barrel $XX in

to to prices reflect $XX barrel of expectations per taxes of XXXX WTI. at preliminary $XX X% XX% cash Our

lowered Chord more full by efficient, million. forma spending capital guidance we get during pro our on the continuing Separately, last some With hedges our update. layered since year team the $XX and to quarter

X our our can So found latest investor November derivatives presentation. position of as in be

in the leader me the our In I integrating great the rolled in closing, that and asset, great operations just same gives out. technical team conviction confidence improving in deliver Williston as on we while hard have operational team's work our the the X-year Enerplus to Basin. day-to-day at ability plan time,

all continue our great You value us Dion have future. to delivered With add over shareholders to that, up to enviable line the for to quarter open place positioned the I'll hand for the and an in in call another questions.

question first Dingmann from Your Securities. of Neal Instructions] comes go Truist [Operator ahead. Please

would then to Or you you'd free Nice you you quarter. activity cash there see question just X-year And you first would suggested just maintain boost? spend. see like yours. operational the continue if have, I'm to My activity? is plan that wondering price scenarios around Danny, as and further the flow that and increase where I'm are efficiencies, you cause of commodity would that the various group wondering, alter

Yes.

So thanks Neal. for the question,

we're On the this candidly, your saw have around respect the latter with around, it been efficiencies of we've seen part what would which increased we be really question to sort of quarter-on-quarter. delivering really gearing teams efficiencies, if increased

And had don't as activity. expect capital so and The what put on increased we at to level be plan. increase to up. we flat holding to in that, going see sort relative reached the We this and not And efficiencies if we're I to we're of when think our the float production train see continue end let we won't station I that. managing that. will of do

if a do just flow if We're system. capital we'll to -- likely fantastic, just cash opposite, more we kind see flattish and the through less the production need exact do to of some And spend let profile. we maintain to so, free

say Were to -- that say something... ahead, going you hoping guys. you'd was go I then

again, was what question No, your first Neal?

how we be? if had a that again, the on just XX, sensitivities, XX just would more plan Was stable price versus

environment. day. I'd are sort We've respond really at going accordingly. asset. around market of great all different a of great what observing -- telling from gear sort the market accordingly allocation where our, We think going the is is allocate of we're got great Obviously, we're decision the the telling now, if we'll inventory. to price to current is a at then commodity right we've say and us we capital I'd be something got This us. plan But say, Yes, vastly respond just capital is the end

plan Simultaneously, prices, we market market as weighed continue if we we commodity do us what's would lower we prices Or dramatically the opportunities, to saw thank the have to if And a allocation contemplated? relative to and execute So this better saw have telling us. capital other we choose the was little opportunities? might spike we do different. undersupplied we telling allocation something our capital should to

it very, a I'll But maybe expect it to better. very be we this conservative, one, at deliver is do of little somewhat around call we're a able to a where -- band and solid we think so today, plan or achievable, upon

just around just maybe And I'm variability Great. now second around maybe large such you've how wondering got this. X.X then million question, position. you acre the a see

seeing given I East breakevens? Williams, throughout going and Specifically, Montreal the of portfolio, do much you done, West do in counties different now versus now that how wondering like, the breakevens completions I'm well see don't if suggest? the just know, how really you McKenzie you're improved in look around

as to the historic is basin, core core more we're lateral of where the acreage about The toward there. just probably plan, look Neal, more interesting of at West legacy in thing development our of the what the historic the out call I'm development relative sort to to going due X-mile the it, we basin

we together able if have so West don't put do differently. and little further can development, legacy X-mile we're more we units look bit out a in much the the at as where to And laterals, you the

the and We of returns two. see really sort between investment opportunity similar

pretty as a moved been to neat do Chord. little able over spacing what that's the we Western so the portion about is laterals acreage deliver And able thing we've to similar out to a longer returns in the you're bit of that wider really are to and

the geology underlying in better. be the continues Now Chord to

longer the the little same, is that West And been of we've similar space are wider. same, and out generate to Chord returns Chord in so Chord, moving to for a able economic the sort drilling by but

next Your Scott question of RBC. from Hanold comes

the if get of color or on as through EURs over are gave per foot? I the So time provide progression you that now you expecting the toe? was confidence wondering you in some like updated challenges overcome you physical performance Just you could similar closer talk seeing EURs. out challenges What to obviously in have some those X-mile that of

Scott. Yes. Thanks,

and So the to to remarks, I'm getting color But then going at length. his out over end. the mentioned I Darrin really, for of to this start think in sort it commentary some Darrin prepared the with off full lateral turn

a confidence around first mile question seen, do way move team third And the from And the for to us it's the so big this toe has cleaning to great sort data. of for us, for of gives which been what is, thing we've the to done out job. part scaling -- factor all it a I XX% just the to up has factor guess really XXX% scaling your

performance well wells had up move how of see to be needed the to mile we needed able see of to XXX% so to performed. that mile the that actually hopes would the see we XX% third over the time. and this data third And from We

look and what are confident from that very pleased data, we And we really third got mile. that here with so I've on how we've we're that now seeing really, been

So turn over it to Darrin incremental comments. for I'll

was way of to the cleaned TD. Yes, getting the started summer all third in we Scott, late 'XX out it really that quarter

be of And the of wells. or look looks last so XXX% the benefits that and X-mile we can the so, production, as engineers really forecast those the well wells X-mile for our when you online spot on you that months -- a a person in at reserves, to brought our XX see

recovery same per on foot basis. a So

a to of follow-up X-year guess, clarify. just my couple questions I And Okay. the, is outlook, on

you contemplating what synergies? is is $X.X the me. of there's Or at all you Number mentioned where context As us the full give like Can the out that getting stand of you the could what today. synergies? is that, to full look Like benefit billion of that things on Dan, one, of based some go? kind know two kind you that

at And pretty of basis be year-to-year ratable? the going number it Or Is your through there how as it certain certain to the areas you the focused do mix mix think as parts a like that look the it? across progresses is properties be about of plan? you on Bakken, more in get could two,

Yes.

So real -- overall I a as plan. to plan, benefit, we're seen having the think in we at we've look think, development the in I going of we portfolio have deliver a effect how little bit

completion got the we've little so I field. So and there spread continue rigs -- move as plan think the a really delivery and across bit that forward. we we'll and where out have contemplates is underlying We'll -- the

frame. With And we but time but in tilt position, the this given to opportunities the will Enerplus Enerplus plan, slightly in X-year clearly, to acreage so out over the time, in not legacy that oil improve dramatically, tilt will follow early cost you to price. slightly I'd it's I a to which spread plan would pretty think respect acreage, service as activity, anticipate, really say follow

overall And -- and to activity that. be service so of levels, cost off which will is pinned pricing we'll goes, which set going see where

the currently I as plans and forward. what in is What we've currently the that assumed that's got in latter the seeing XXXX, so half we're we of And question. well answer cost we move the essentially can't plan have in contemplated

would pressure costs we So down, us. could move service service through. as on costs see come up, that If see flow put we upward could that

D&C seen over the would of seen more I slide what in teams However, the that and And do in we've quarter showing get more the quarter-on-quarter. the say efficient year. got past deck is a I we've some on think improvements costs we've

Again, I anytime soon. slowing don't see down that

think through going mention Last system. any benefit really that -- so And last we're the that this some I mention, thing to efficiencies thing is natural contemplate doesn't X-mile I'll have Scott, wells. I'll from is roll

around we're high that's I drilling expectations this in X contemplated personally have X so now. and results. plan We'll spud We've of but see X miles, all. at hopes And not those.

see potentially that success with converting would over that's so we And well. we upside just as wells, wells, wells X-mile see X-mile as to X-mile here

synergies, into clarify, is think full you the do just And at much run that? pretty fully to the you're rate that that's Yes. the inferred synergy in Enerplus,

from in the of $XXX the only does a improvement, What doesn't And baked anticipating what the synergies because the Enerplus what's system. getting of it know at this point, that better. we're have continuous portion efficiency baked is synergies, just So million plus into the is getting sort synergy some improvement course, of the have is what's better. and but plan capital we're just I capital,

[Operator Instructions] of question next Please Hungness Your comes ahead. Noah America. go from of Bank

the hoping operational to could guys give able was just around TD extended I getting you you were what maybe some coiled do on all to with laterals? us color tubing out -- up to

to down to But technical fluid we pumping for relative our call. admirably peers. that in our good that really the appropriate and a this really area use assembly needless in say, aren't -- that The the very the bottom performing details it hole probably rates comes question. Noah, of we're is to team Yes. lot

someone competitive a for Chord. argue advantage it's might And

leave at I'll that. So it

that then X-mile And the laterals we incorporate to incorporated you're legacy guys to that on sense. on Is those for 'XX? continue acreage looking plan? when laterals you that to Makes that development should be Enerplus start extended Or would mention program think in acreage. the into

portion the -- Enerplus working. asset. got in my a prepared have is plan laterals, mentioned of that We've believers I do we in remarks, We Yes. as X-mile are

is stat together. you miles we don't as really opportunity need It's going have miles from sort to development really And of lend be preclude X really it However, X miles itself that X an out the you to X-mile section of because third -- for that mile. would developed forward. doesn't there's development a that existing really to move to

that of to the roll some of X be to able through see we'll system. won't so We And all transfer miles. wells over their

you'll so in 'XX the see some that And of plan.

that miles, have to we move where to well. opportunity we'll X do as Although

tilting some miles, probably towards I'd it's more see So legacy but because say that development be mix, of just it, surrounds that too. you'll a miles X going to program X

Johnston question next ahead. of Phillips go from Our comes One. Please Capital

question color just of a on X-year Scott's follow-up I the on terms assumptions the in outlook. appreciate the Maybe there. some of

either as Just significant assumes interest any from year what as average gross of you in you about about think talk of terms gross a in maybe guys lateral given however any can average And or standpoint, working kind modeling are you year? per in feet of expecting it per variability wells year? per those year that well metrics

I'm this question, going February. the out out because we specific for we'll in to on directional as guidance give come comments come Thanks Phillips. you with

the intent plan guide really, to of the here. directional get X-year So was

I'll talk we got decreased forward. forward. see, we're currently, laid going We're expecting we're about largely directionally as length. driven what expecting the slightly I'd going That's count So say, plan to to well out operated we our move see, increased lateral by to move as as we

as plan. drilling as through to the in further, out so we're the to need And we system roll don't order many wells deliver

investment the into are core the with a then the you'll non-op. creep that see of compelling down They little a XTO brought really our opportunities. field. lot slight bit really system with are Enerplus. These just We the wells and and in both so in of acquisition non-op And increase a

those And be a more forward. little putting into so we'll move bit we as

right. All

with think guess of of rate, peers. can how rate. laterals mix the chart regarding that versus Base this laterals? the on impact do you Chord's decline drive I these I And shows your And make you much like the XX% decline good. think a PDP positive that longer I a plan you X by good on X-year guys is having Sounds X-mile here. Page point rate end higher lower the

I have the as little assets, -- from have we're we've growing downward more a to Phillips. going say Enerplus will do of And I shallower that expect number a which going with don't we move with on sort asset is I'd to though, of be specific have a X-mile laterals, a for maintenance program made which -- was it bit we decline. for have a you, got we standpoint inherently up legacy larger that the forward. beneficial certainly pressure obviously, as of portion it, us, -- as

be So both a beneficial decline from of should perspective. things those

comes question Oliver go next of ahead. Your Huang Please TPH. from

of As And it over terms color already night? these of next to sort of cost towards any relates XX what the that program this in could months? XX included last of latest the percent set to in savings simul-frac, the migrate all provided are D&C just kind of you figures

Yes.

that look roughly dedicated the we year's X do and as probably crews year next with frac crew, we're our the crew. forward, to X.X simul-fracs full-time So is at looking plan Oliver, frac frac plan, entire the

to -- just then as a and we're it eye-opening more fracking, -- few getting tell other crew in fracked zipper to per crew. the day we've it's the see feet And frac efficiencies the activity. the will half be you, last simul-frac the switched that a really And is simul the we've expanded So they've of well. team very, really very crew executing that will months I gained the as

pressure Danny out total downward plan. frac crews Like in need more said, that though have -- even to plan. next activity could directionally on come with in relative next That we year. guidance the frac the we'll we'll next X-year year is more amount year's is So it of

second question just maybe on That's helpful. another returns. the just And

that be viewed is something is that's quarterly preference wanted buyback, The more to But definitely within sense the in the of around going Or last going seen moving to over we've programmatic equity increased months. component the the get in better the as that a understanding more something to kind of Just nature quarter? pieces the to move makes more shift few be opportunistic with now? here. given

always Thanks we've have part our repurchases a of I'd for program. played say question, the share -- Oliver.

we've environments. look this, we been we've through as really been -- all in repurchasing shares so And

And so in doing the the would we've along I at share -- always we say environment think as in. way. look we're we now, we've But compelling opportunity repurchases a particularly the all been it's landscape

share I And a repurchases. certainly, repurchases will But so think share heavily very, into we say role would framework. overall anticipate I near in our the within always play term, very leaning

Absolutely.

I that just with had buying that the I add couldn't the transaction, think we would shares. thing Enerplus times is only be we where

would the and to It landing looked I was the actually And transaction, back we the were into you once buy you that heavily. And were us -- those closed to be we we so that times. saw of it at case. June, like month just buying unable variable, wasn't look the

And so quarter. we that did. that June entire the representing buybacks represented of the entire quarter

from next David comes question Your Deckelbaum Cowen. of TD

I legacy to spacing way Or of think weighting you move how you're a -- some there? just in is 'XX, 'XX, you do spacing as to the the it be as on confirm, be as through think based wanted on guess, of spacing the acreage Enerplus acreage, the going more about to you is plan, that Chord about the to 'XX just wells into I the now? going 'XX tighter development identical

So Chord I'll as adjacent to same well. comment in Darrin spacing I asset. assets is field. Enerplus see, to will the ask that you'll course, the It change across are what doing on or you as be what on the this think as an similar area But and of to move we're going

as there's -- those got geology. the with But a tighter even in in so all we there's sort place the in cases, we've Three There's it see slightly in the in you're in that areas Bakken. And oil opportunities as Forks well. And Forks core, of to spacing do in separation and has more areas. Three those legacy legacy few some and more subsurface between Chord more

those do think capital because spacing actually efficiency. for space wider basin wells others preference just within we to differently. need you similar it's better we than the have So a but generally results, But we get

would ask basin, done, I spacing not of you'll entire the think weigh what -- similar I'll across to in ubiquitous but Chord but sort see to you'll Darrin more. have So spacing see there's

today, for. what have Obviously, improvement, subsurface an up hand. there. for. spacing, David, coupled we're it's sleeves that's get produce think we're looking viably, teams, for our the the looking solution we Yes, ever-evolving really embarking that our with most we'll that of that the capitally we we're hand efficient And solution. sure completion intensity now I'm the that rolling and The two -- combined spirit at fewest well most don't wellbores in looking we've not solution can really ideal ever and the in And economically, go looking most and in reserves continuous we're Enerplus, ground the Chord on Legacy that

you It's to and something that improve got continuously evaluate.

right would of A what in would tighter head. and the the so -- we we'll the And the spacing nail some Forks acreage also that middle is Enerplus some on of lot have we're will expect. currently, one but wells, have Three Danny hit

revisit, to the achieved relatively just decline advantaged obviously, Maybe base highlighting this year.

If there, the longer benefit shallower of to workovers distill expect, were to obviously, optimized has years? you management would new declines that we on most Or wells? would attribute and you deconstruct kind down or more it from of organizational that happened to ensuing what that the of continue been laterals base in

think it's the combination It's growth obviously several -- system, that's look we one, program through in we I as So a significant so forward. of been pushing moderating haven't a and things. helpful declines

that say would production XXX impact which well. we're business in of is helpful. you sure to them. laterals, the inherently low think we're about X-mile decline these have the component the downtime laterals it, with certainly, quickly, -- just returned X-mile our our starting if thousands Also lower In getting because think, see that of is the last on and basin larger wells helps of we've one, focus have got I making as about I got the of wells side to our obviously of operating

more And our they're small it overall a got. so wells, fraction of the they but of that some still wells production we've and represents are fairly base productive newer

wider it's done we've taken we've -- over last So of including the few the a combination things, spacing that years.

all that a to lower, the all myriad is sort decline news just make it's is efficient So which us of capitally they're base much it's a more things. making great producer. But combining of --

next from John Research. go comes Your Wolfe ahead. Please question of Abbott

So go here. want base decline I back to to the

you rate. of XXXX, went underlying online. basically granted base I XX%. about the look my your XXXX, of is sort If some longer decline get rate at you at Now of just to base development. XXXX guess XXXX sense that you mentioned, as lateral coming of about think decline talk back long just wells we what period of I Slide lateral long just percentage in -- us XX% just you currently, was the show laterals could those the #X are remind on impact a versus XX% was of the just Just XXXX? decline. sort where to development, that time question what of your

obviously number. a really an -- through and the the a higher there apples position little Chord Yes, clearly specific what assets I this. of rates think their program oranges growth you can't I I'd in than had. decline little this little probably comparison say give than different is a because the a Enerplus make just And the bit legacy

question the more opportunity And different side at expansion spacing. just these inventory spacing assumptions, folks the possible conservative? other in Enerplus goes are and go some spacing to spacing conservative been than the made could out my Understood. add some there back there, on then side this question to you the the assets. on Is discussed where maybe on there spacing of guess have too be you've to you for areas other of how the here, I the an mean, mind opportunities there Danny, for your to point? wells you've this additional I

you really is think in up I things a of I the in think this John, have point. great really, important bring thing. one business And a humility

areas. and we slightly comments the too rolling gotten try forward try sleeves that and and assumptions so know I can the think have and way stay out lends And some we And improve be always And really these develop get is to challenge Darrin's most could go have that we what their that -- that this been in figure best and efficient, that earlier teams go to up it has capital wide better. to itself can humble we that asset.

it's million think but small to position of a in a impact don't acres, around inventory. significant X.X our could I dramatic, acreage have considering change going pretty in spacing be

right this we that get is developing get now. as -- sure or any it making think important to more, we And comments? I'll as really, I so in us. right but Darrin ask Darrin, we're really weigh to can looking other into

just at get and look hand to got of good a it. got think we've that hand, intensity both a again, And completion spacing go I look also think, Yes. really to we're I DSU never those tied on to is a on in basis handle person recoveries really at and optimized.

So...

next of Your Paul go Diamond comes ahead. question Citi. Please from

set. wells incremental of to base part thinking to plan? how on development would want comes we that Just XX% initial XX% the into Or based fruition touch of Should the part 'XX opportunity go? be actually of 'XX the whatever about that or -- of that this X-mile kind on lateral be as longer in

Yes.

of our X-mile long 'XX to are plan plan And X 'XX head, years are laterals nail you point. of not about So the not the half part at our laterals. this over on hit the next

absolutely make it And single the so the a where can X we laterals, X-mile we'll at X-mile as improve with X successful going being area, the laterals. capital I efficiency single take well, be miles shorter to and -- versus wells and wellbore that's very returns think in confident that to the of X-mile

where U-shape, wells that, X-mile X-mile X also X- now constrained to drill J-shape. ways right make might different There's we that wells, necessarily wells, also and J-shaped get of the lengths different to we really above capital increasing efficiency lot and our can we we we're X at lateral well. where looking laterals, shapes well, can't take will is industry a U-shaped trying think Over X-mile improve be a if of as DSU, to and

of that point. in plan at this none X-year So is the

capital-efficient of perhaps as for forward the out, X-mile the just efficient, room capital improvements going more that's additional well. leg something XX% that, on laterals of capital plan pointing If we of move into wells lateral, to a lot you're additional of forward. actually can one, an X-mile a longer us what adds XX% that's efficiency can than actually if there's stool top that the longer And that better going think it's of lateral exciting wells, I you it potentially Well, or in then another more X-mile it's part. the help improvement have just not get

X-mile there's two laterals that parts of are exciting. that So

item bookkeeping in up book Understood. we current guess, ticking where that in I the where how Appreciate view the reaction should do think to about strategy? few quarters. for been the just all you your a is? shift the think the long-term hedge And one clarity. Is right -- more last or on quick level

just what think I we call programmatic seeing is what you're hedging. Yes,

no it's have march matter that sure out the every -- quarter, just we not we continue hedges, of But So forward we kind protection. -- believe continue set hedge we price what make own just -- to that layering do environment still with to people on to for of to commodity the a is us the bit little exposure.

you upside upward. so it And extent price and participation oil the you see of in there's lot program, a -- to what moves see our in really

Please Investment ahead. Your from Brothers Tuohy Noel Research. comes Parks last of question go

came briefly versus there rebound realizations It But of up your and takeaway? don't your earlier. effects different might footprint. your ripple of West sort was know be price through if I how the would scenario East gas parts a wondering on I

it's a the of contracts, think nature the price Yes. really it's prepared function of as function that described just remarks. fixed footprint. a wouldn't of I I say our I in my

So to see to gas a the just go torque on high prices upside up, the extent you'll realizations. our

that move to facility LNG starting Canada, developments I exciting potentially seeing think there's some in gas West Canada year. next into

forward gas the look So year. pricing there's next tailwinds out for as we Bakken we of into some think positive

mentioned operational just leverage there's fixed scenario. Richard of that there And an because

AECO volumes lower just potentially be be he of recently, year. that drawing here While going very comes forward. And Bakken gas hopefully, could more that middle mentioned because that realization will the stuff West online Canada to pricing from next LNG that of we've been beneficial

you've a what about you day with about with still that so kind heard hadn't do some just as really some the lot, Enerplus, And of could are remaining synergies savings. off are them forth? have interesting. as achieved thought I X or mentioned of capture, And Great. more sense to upfront of give and really that to a talked them type contracts so I of the far that's synergies rolling

a a that of as there's as there's Well, forward. we -- certainly, move degree degree opportunity

think think perspective, we we one about over into synergy an increasing is, that time talked about, as largely synergies I included we'll plan the frame. plan capital capture that I in the move thing just that X-year As think, X-year see 'XX. operational From are we

really an because field so of to capture still synergies been we from approach some changed the in some we our perspective. some have operational the able date, And we've to of operational but remaining

wells. includes X failures lead There's we that future. things like the fewer that we organizations think our way And between to will run in legacy rods rod practices so the different the and

a to And and that won't really into work. And from until improve tail resin our bit ESPs our sand year. of And that there. times so with our we run next into really baked materializing we get in that's and have a going flowing coat. completions capital of That we all we plans start have probably dis-synergy the our that's also keep our helps think with back it wellbores, which into rigs it

legacy also completion a we -- different fewer capital organization. little different failures, because our in little and between future anticipate upfront practices the so taking And ESP are the were we're a seeing

as from perspective. of XXXX some synergies of we operational some an So see into upside the go capital plan, the some -- the baked still into but

conference turn Please back ahead. our to Thank Brown. will the you, concludes question-and-answer that over ladies and Danny now go session. I CEO, gentlemen,

Well, thank you, Dion.

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

you concludes for This today's conference. attending. Thank

disconnect now lines. your may You