WPX Energy (WPX) 6 Aug 192019 Q2 Earnings call transcript

Good morning. My name is Sylvyne, and I'll be your conference operator today. At this time, I would like to welcome everyone to the WPX Energy Second Quarter Earnings Call. [Operator Instructions]. I would now like to turn the conference over to your host, Mr. Investor of Director Sullivan, Relations. David Please go ahead.

presentation. team our Good second Kevin, members quarter you. WPX review Rick Clay the management morning, CFO, presentation of Vann, your with everybody. Energy WPX Energy. Rick, Gaspar, for CEO; questions our morning. the prepared to Muncrief, and XXXX will other available after are in Kevin our Welcome the interest Thank COO; this call. Along slide appreciate We and Clay the

our will issued of the the remarks, important them. are our On you forward-looking press disclaimer oil release later to market so integral Also, statement please and review and wpxenergy.com, today's presentation the on filed and website, find yesterday. Please presentation. be that after Q our end gas the They review and the today. reserves was will closed at

I'll So with over that, Rick, to you. turn it

joining interest and Thank I you, today. you everyone results our us company, your who's for our our Thank appreciate David. plans. in

them look are and expected. strong WPX at together as with today. quarter here up we've nicely, We've you wrapped just to another of visiting forward All quite coming

are our never our we're many and which Everything delivering release, make essential business to but incredible a with They're foundational nonetheless. of press things, accomplishing people. starts

know in Let just worked weather that's I've out the in celebrated how you an extreme to North winter me we there lost give lines Dakota. mention much manage, time accident. not on I two Williston five and without Basin, first-hand examples. common is Up the front employee straight to years the

lot barrels of operations top producing in for staying has moving north and now especially and production Bakken. are tier. kept you revenues we our about when flowing, our record lot team think the volumes keeping to up the Congrats a That track of record a safe

percentage gathering and in way with X.X%. pay our building processing, rapidly in gas Permian, all midstream our July, In ways to We a flaring early business solid an midstream to down investments continuing even forward further we water off all-time systems. out are nearly look as crude, Secondly, to our low, our to the numerous we're and cut improvements. the

revenues supports mix investments. whatever care a capturing deeply In pipes, come of the our our contracts, right about working doing value, of to a speaks and partnership we but how thing and planning, That involved challenges gas has our key very timely case, also complex a too, through strategic processing capacity, way. capture series increasing

the happen paying for the map certainly of in by It's simply That the assembling our because people volumes. our our realizations considering and accident. didn't off, It the road price Permian. happened right ahead strength of started game got

strong team can do. here amongst be shareholders, said said are get we how we'd companies. for very we things a things we done. Permian to of WPX, at there strive our peer as same for some we that's just best is we're on the our working be lot The not it like all, who That's and simply technical in And shows

Back in progress. the continued we we our our along, Oryx of shareholders we'd the look to dividends stock XXXX. monetization additional to said said in to adjusting Now retirements, return of and/or involve February at then capital our All accelerating that let's in timetable. system, after our X repurchases. Page And turn April, debt discussed examine we and desire feasibility beginning could

to in our our through the the efforts next implement word on return This step we shareholders. decision share Yesterday, followed to to capital program. repurchase announced a is and

to next As WPX million $XXX in shares you Board to our program buy the months. of our over a of saw news, approved has XX up worth Directors

Doing so remains production. to market's an circumstances continue action in if market this, impact be like grow ability development not for irrational, the favorable has created will and opportunistic. our to current our about sentiment The XXXX we our cadence sector or will

capital metrics as the expect $XXX million our keeping our Permian, outlook with cash $XXX confident, sale very in the and half people, year, today, our program. momentum is well. and help realizations by months. first bullish shareholders. accomplishing in the our all pipeline our support seen company We of free our key of year, flow And in the am our guidance doubled in our We've generating Permian. plan in and project raising of other from X% and we're half to which guidance increased few to our see what execution, Oryx of flow the in in free by the XX% full cash $XXX are will the plant pleased back repurchase more of generate ahead undaunted cash the the volume unchanged. interest X%, belief the company. in oil and future have price showing our outcomes full The we We're our our capacity million outstanding by next our flow processing plans received while in year for We're our I strength in million joint venture in year the and

the turn to Let's at here definitely past entry company, we pressure made significant our metrics. the Permian We number into transform our on for over We've assets an years but more of so the to or execute, X success X. Basin. and could at doubted put never we're that underlying today. WPX than underpins decisions financial second There's important Page a doing story none whether the a where

allow once it reaping the started acting on shareholders. benefits Today, of house company we how far we we're we've course what could however, slide those for unlocking shows convictions. This But, saw come assets potential. the the a compelling do in very ultimately their us to got for and and

to the an time. all will and is day Now, process ongoing some continues potential it for tapping that this

punctuated Would a production sizably barrels both far and on So reduced turn around Clay to Absolutely. free leverage again? I gas from our our Gaspar, basis. physical turned It do with margins increased our we've oil in over our COO. dramatically, to over and switch generate cash ability share per completely our and drive to it to flow that, ability all higher. And it debt-adjusted I'll

Thanks, Rick, Yesterday guidance, commodity morning, firm same of we at XXXX annual on X announced all and significant guidance the reiteration everyone. capital beats our performance quarterly time and and bumped on a our all metrics, good streams. of critical

I of the this cycle. of low ahead today's our We peers consider that impressive tell you, we the peers staying also commodity product realizations on heard posted be. -- some environment environment price focused of work price bottlenecks. how the very of I've midstream challenges mid talk are about talk years can can

plan world. returns bottom our on can on a our do just team, Our to quite assets costs to $XX $XX is our With driving built down in full focused up stay the $XX We oil. performance cycle line. and and generating well with ultimately we

of RKI XXXX, significant Since cash working hard acquisition and to sheet company-making flow. make balance generate our the in turn been free very get our solid to we've then rock

As incredibly we are there now. is proud said, and for achievement. Rick This we're this milestone a of major WPX

project. from we and talk to our Now Pecos are value creating how X Slide let's groundbreaking State about turn

the work we're pad On last quarter in Delaware. the doing in discussed call third Pecos the I the technical year, State

tangible it most creating one recall, value. I've of I seen as You described tests the successful might real-time ever in

watch Upper inch us ultimately interval, and everyone, the Just to to case our changes. this effective cable, and designs. which frac wells included six which temperature fiberoptic and of X/Y in A still utilized real the the how of lateral, geophones Wolfcamp monitor the changes that of in and tracers, production and lateral. fiberoptics, stimulation the for of well the we've pad, Also, each time we us the to microseismic, perforation watching external pressure Lower further frac impacted to on the of well In monitor along to temperature and pressure continuously the we're leading gauges, impacts remind chemical more allowed the the the these effectiveness design design understand with continued every the

have XX% this We've some the changes State of The the Williston Delores from and Williston lower costs We've to production. well and incorporated to are contributed learnings first the the the have also project pads to able apply Minot learnings in Delaware The significantly been Basin. costs. time the Grady reduction to to which able Pecos the early the Williston been improve two from Basin.

Minot more in in more slides. Grady a detail be I'll about the few talking

also Stateline During develop from the include data, over costs Wolfcamp a the in completion, the artificial times gives the the that to took us point theoretical These of interval Bone well any of vertical and base in X,XXX-foot horizontal giving and that trouble or are world-class cadence development improvements quarter, zones, actual we core resource. the not drilling, the wells should spacing Spring in base now the this Spring as target and we which This These in of vast landing that costs as us B. lift I the core experienced. time cores are well invaluable feet to allows Bone Second as these are X,XXX drilling projections. the Third facilities, optimal out Stateline. us

best are the averages drilling time. any not these The wells; associated all averages is just include these the This times are trouble that release of for rig from to and spud periods. or wells also record include

years the coming improvements come impressive, are very in believe have we While we these more and to quarters ahead.

slide average Slide first is to the the turn summary about the X, talk to This a let's year. of our second Delaware half comparing rigs half the activity. XXXX rigs first the entered Now half of quarter to during running for activity and in dropped about the the year. with and Delaware X X.X rigs first we X the Remember, of year the

to half flat. will continue rigs of year, the second X we The hold

XX benefited our first gains CDC count obligations. on to gross inventory to spread and out For better meet locations understand higher and put the some rig half, first the we efficiency wells average quality sales. We and from

different in of in We the year. half also eight landed the landing first zones

or and yield be half X/X more the predictable lower will XXX% half, sales also on we in Bone gross wells year the In the and drive with over of Third position, costs. development-type acreage the putting focused with Stateline coming XX -- Spring will the will our costs those core predictable from of first Wolfcamp. the by activity of sales more second lower second The Upper LOE of water

midstream for and importance been the year our strategy X, turn Let's realizations. ahead years, marketing a in discussing to on working Delaware it and I'll the and of two discuss Slide quietly We've of Delaware that. publicly

Securing earnings and able and WhiteWater quarter create is with and second the all XXXX and out to It Atmos, where takeaway call, with to avoid and our Howard our Partners basic bigger foundation I strategy gas our Energy buy/sell Midland markets. it It our Delaware." slide Oryx system titled a "Staying get airtime for catalyst from agreements much way on oil, to regional Everything value a the capacity to NGLs we of the and presented the me, are the gathering, components today. bottlenecks JV realizations Ahead our Infrastructure didn't pinch in -- end much on excuse the but in identify On points out call, the of market. spelled takeaway agreements of strategy are ahead important price

can gas see they natural and prices the NYMEX quarter. you in As realized we WTI Delaware, in oil for both for and the exceeded the received

per the side, $XX.XX received barrel oil On swaps. including we basis

further It on call, on Corpus enhance in realize this Gray Christi year. allow mentioned oil and international we As realizations. us the could to our to get Oak our barrels later capacity our pricing, previous comes which will

realized Our $X.XX. our the Waha management total worthless gas gas swaps. of price the price realized positive impact dedication XXXX. commodity including positive $X.XX, on is physical for into include When Waha the was relates of to being offset is basically natural worthless The impact to This despite commodity February Atmos -- $X.XX basis sell quarter of during of hedge the X, our have through the quarter. some management to we the gas transport you

then and midstream environment and these assets, of very our realizations superior transport prices on in gas the Atmos ship of team. impressive some significant a this and and creating excess still pretty We've Gulf created $XX $X is forward through they Coast gas reflects Waha monetizations the Realizing Our are price us to receive hard that at value marketing purchase work in of allows and thinking going prices. and print, to value forward.

provide exceed X, high let's to continues updates on Now Williston to I'll Slide Basin. expectations. and turn Williston our own the some

was the confident the some Williston on As call, basin in I I that I that and but to our activity in extreme first get quarter down time discussed decline in that concerns quickly the quarter, second slowed weather safety last related we back on our to it said would due late track. at weather. would

significantly slowdown quarter from rebound impressive the out, will second has the production in a worked quarter. recovered very and third show it's As team the

Dakota happy month capture place. I'm been that year, to over continue Industrial meet since every and Commission gas met to in it's we've North we've XX% the report This captured every rules month.

As our back of on Grady nearly ability daily year track HY Both pads barrels the our X,XXX oil next capture so Minot XX%, and getting barrels production-constrained. curve be why to oil. and of the X,XXX not two stay Delores initial confident my exceeding to examples high. production day, of with pads are record equivalent these recent compliant Minot company of set being Sand gas requirements per was a ramps those the NDIC type Williston's in and we're confidence Grady The regarding are

were completion pads Delores Delaware. from in the wells the work we State using The designs the pad Sand Minot Pecos the technical the did modified Grady first and in

drive We value up, this continue productivity old-fashioned and to down, just costs is creation.

turn me Kevin? update. for let Kevin his to Now it CFO

to creation don't on are me Thank chance in to the thank disciplined those understands with sell, opportunistic entire and it marketing who return to to you, markets producing realized From here our of team value the of who shareholders. making Tulsa and industry results on us teams the day, field we fashion, in which the accelerate have. being eye of you the driving in when and that the The a Clay, give and need free every an optimizing midstream execute produce a us flow, lot to to leading that those WPX always prices value cash to CFOs us front a team options enables give so. do are happen for our you what and lines on are the your the

marketing for who and of spirit oil today, and has midstream are gas. exploring timely the we strategy us our entry partnership made the opportunities our to That into really from Delaware around

we are to take market. advantage going Now an of irrational

turns our As in X.X XXXX. earlier, indicated Rick leverage nearly at was

this $XXX Now the operating our outspending end we flow were us turns. $XXX of our cash our and flows spend. capital by cash trajectory below year year million trajectory by X.X above our In puts nearly at puts million XXXX of this us

to and come. company, We, to know manage trajectory the as continue years a the this conditions how to take for of advantage to risks market

to turn let's Now Slide XX.

where We we capital had higher it Our year. halfway a we of that current level. approximately capital of half initially to were as the the first would spending is be our exactly would rig from indicated XX% communicated year XXXX through transitioning count our occur in the in

know, on a linear of activity little from year all month or particular across in not higher a fall you be wells is depending the As month-to-month every spending formula how and can within lower quarter. that our

to $X.XXX million million remaining quarter and billion. during activity occur the capital So million to $XXX for the the billion to million in expect third approximately $XXX to fourth. our $XXX $XXX year, unchanged full $X.X Further, guidance of at remains we the

as up production to of guidance, equivalent midpoint or XXX,XXX expect far as XXX,XXX total per the to to original oil barrels of we from year X% midpoint. day XXX,XXX production per XXX,XXX year day, Now increase full full

also to full from XXX,XXX per XXX,XXX to We're oil barrels previous raising up the XXX,XXX day, day. -- per our production guidance to XX,XXX year guidance

is the initial would above we production second the quarter late wells in earlier, online. winter third slightly get our mentioned already early the level moderate Clay into completed as quarter expectations in This come many as As July or of our trending were materially that months.

XX. Slide to Turning

of is from barrels last we last drove from per first which than oil increase nearly higher was Both the second quarter, growth year. our this day, the by quarterly basins the XX,XXX driven year; are XX% sequential of reporting production however, quarter For quarter the Delaware.

were oil higher XX% primarily Natural -- as were on discussed, the gas as realizations our volumes and year were Delaware, both Clay driven cash gas last and and than Clay industry-leading. by

Our Delaware. XX% driven second higher, production was quarter the again by NGL

by drove volumes barrel which per recoveries, impacted ethane were realizations higher-than-planned also Our higher.

million we of For second driven EBITDAX the adjusted than which increase are oil is is revenues. primarily by reporting of second $XXX million, $XX higher year. higher the quarter, prior This the quarter an

higher higher volumes in $XX realized from million the oil With we sales. increase, the XX%

However, primarily expenses areas by negatively million. operating with were drilled revenues in last decrease costs price, volumes, remote impacted resulting handling in water $XX Williston. from the also quarter-over-quarter year, the fairly but were in than oil Lease in some higher we higher increase an from as

workover unplanned we to related service Delaware. electrical incurred interruptions addition, some In in expenses the

in Despite For million impacting however, $XX the our year the cost. second barrel our year. to adjusted of $X higher was per factors increase, last wells than capital volumes. was this drill absolute by million by adjusted driven $XXX last Capital quarter, million and versus rate $XXX production net totaled the improved expenditures little $XX million our we quarter over improvement as a $XX we same DD&A DD&A versus increased by The better are continue for XXXX. was incurred million our reporting EBITDAX; income driven lower at --

activity our driving allows in went midstream activities, of $XX timing spend second which in-process development again current that driven development million by get the on sales a year. quarter our of as production us activity July, increase reflects that XX the wells well to some in as back rate in Our first is primarily of half ahead the

is we'd six months where capital this earlier, on be thought first the mentioned we the of I As year. exactly for

we nearly and cash we for very positive are had quarter, -- a solid CFO the flow the period. are seat, and we From nearly cash

shareholders. price the managing as commodity we buying shareholders to generating think to and of and our consider methods forms some it's -- to driving way future risk we stockholder are returning our repurchase begin to this starts other the and we of that of production due value flow if cash current transition them value. you substantial we But to our our that rate, view beginning effective in stock program not Returning excited value. be will with our the back return about represents our excess optimizing hard currently are how we realizations, As be operationally to determine executing capital

Rick turn comments. for I'll back to it closing that, With some

Kevin. you, Thank

company our for pricing for where we been time our discipline, capital continue this our You can returning strategically. know, that plan think has quo times all to you attractive positioned to execution, returns the is another flexing worked as WPX protect can't how shareholders known creative And muscles. advantage and shape or unwittingly ahead We and WPX content we opportunistic by of we're We've come favor. conditions never remain margins, has with when production financially a in see I we never of better generating in healthy will. our how to taking far of status this our been and schedule. of market

others Where keep it's we see how creating challenges, and opportunity we see value.

at lines to operator. this we time the it questions, Now and can back I'll for the open turn

[Operator Instructions].

the with comes of Lynch. first of from question Sen The Merrill Bank line America Asit

Rick. one for Clay, Williston then this Basin and I for Clay, have year. somewhat one has been lumpy

about completion in program? early a any And thoughts level-loaded more cadence on As next Delaware we expect we year? think much XXXX, should also

next, you the It's of it's WPX last I back probably kind quarter, first one I a -- the to gain some lumpiness so related mild of to a Williston referenced gain I gain, and the back Yes, as ago mild. and the quarter, second we had -- weather. posted first then only and We two two of three mild XX fourth -- completion a gains, once because big think winter to of kind quarters, slowdown interesting, you quarters and in activity look think if one and cadence out or this big fell that where Williston. had first production look then quarter then a

then Permian next have in comes numbers, you and take it the splashy quieter quarter, If is just every pad, of every and quarter. steadily kind that a you really increasing okay? quarter. drives then anomaly quarter Williston is background, big one quarter. basically the out, with Every quarter, the a In a quiet big

this talking a fourth. quarter relatively So in mild the quarter I in third, we are quarter we're relatively quarter, kind think quarter second of for Williston, the mild what seeing about for big

I think it same stays cadence. with the

part what long long sorry, that question? line I high-quality wells, Williston kind the as gives the think I'm for B of X the me to first company. we bottom what super as -- as that's running gives or rigs, these your we're second are of as a drilling question just of was

completion year, the for the of just that. next answered in It's you No. cadence Delaware kind

Yes. Okay.

On the of kind steady. it's side, Delaware

rigs where crew, we're of to scale, You is But running last a more But X even crew relatively little months. a been have bit us the up. second of frac low then kind we've predictable that, running at frac probably with economies in X steadily the of quarter-to-quarter. end catch XX it's times spot and

Great.

you in opportunistic. Rick, the record, mentioned So in experience your the Based multiple your you more you track thoughts is cycles, your investors, current as release as market with on well, press -- multiple irrational, you will conversation irrationality and become with times, what your your the remains market it? be Could mind? missing, will you if the see on elaborate

quarter favorable peers great happens dramatically. again report your reported Well, but and for when and less time than your haven't a we And trade tie in -- when your some some yet mind, equity I that to think for -- that's there's results, performance of opportunity is maybe time no my that, you us. sets a see up irrationality, we good really down to that basis that and think and

thinking we so that. and in our rational And address be will

market is I several think things. missing the

the Basins the XX and If actually oil in last months. the you Permian in at oil look our we've doubled our growth growth, Bakken

top-tier. the our creativity execution through teams then sheet about you I been that think balance has here. of the And think improvement

us that. so advantage to nicely harsh, the think and we just are So fundamental, prepared market. be full overly a that in judgment, up to take in lapse we you will, of I but if sets real And I it really, want think just don't

question next line Whitfield the Stifel. from of with comes Derrick Your

Perhaps steady now. the earlier quarter your strong and Clay, know for I your in on you Congrats update. growth Delaware for referenced comments just

to However, Third half your Is think Bone that Wolfcamp in shift Spring prolific as more Upper when completions formations that intervals. about a would X, improve say it me your capital fair efficiency should the oil fair to and seem the second Slide to materially assumption? in I

Yes, about Derrick. Yes, know, was little more question, would I of say historic what of -- quarter, I quiet the talking kind the kind thinking of is you about cadence big in that first bit we've prior of adds, one, short had. this That's really nice on think the to steady year. it's Williston and quarter improved, I quarter fourth side. quarter Permian quarter-to-quarter is every the

Delaware. I what that the Two happening continue of to in are quality things think the ramp. of mode assets development middle Stateline. talking about, right moving in the into see you you're more will One,

is from the flatter and improve better plays. better two and drilling year materially growth Obviously, and is thing that But right of both just three of what benefiting this capital Permian, building these side, decline these things growth Rick efficiency tremendous a base of not flip of type with resource we've of of decline, from base a thing, as the of happens it's flatten, significant year-over-year decline. as second a it's wells seen referenced. in but flatter -- in we're from Permian not to kind the bad The in off the continues that kind wells. base a Williston so your a just basis in year especially That's these you're and factual side shape along your curve

on yes, So very I'm on we're where side. Delaware the headed bullish

Very the you your parent-child would on and how helpful. And the to given attention staying co-development half? approach in spacing increased then characterize on issues, the second Delaware,

Yes.

our unwavering co-development our peers of that are right opinion in the at all different say stages. I'd is approach. We are

tested X.X I back spacing. were loose. probably been reference -- along On than be tight a about places We've further tested talked think too purpose, spacing where XX Section we must we've we've it years ago little We fully talking most. we going that first test. we about, the of that developed are tight, I'll to it's tested have

PV-XX, You and that. about is. ashamed to really like you have, of now inventory have can excited to because inventory thinking line may drives just full you say yourself but cycle with cross not know that returns that where the but to amount more really about the wells, -- into wells, significant we're think returning line you maximizing the spacing bottom push not about amazing pushing We're into we may the corporate returning chasing the line. things line get to lower What higher bottom

commodity today's evolve. to value kind continue mindset, in creation of things price, with So that

costs all this landing the sand On these in one But the the contrary, happen, important we most -- develop think that the timing is decreasing of interval, is man, the thickness visit. well very all in costs, can't things, which significant of the components. of number zones, revisits the you because

can well that prior impact back, come interference to from long second test too negatively that visit. your wait you If

line driving well. very we and how to more as thoughtful amount that and of but about to we're So inventory. are come value Much excited about on we're our quality bottom this, amazing an understanding the

Kelly Seaport. with from of Mike Your the next question line comes

Rick, quarter. on in to hoping kind of your was Great XXXX priorities. check I

maybe just hoping give the maybe activity into an could the us just a you're thinking discuss next growth you headed year, So ballpark and idea general about strategy how levels? idea -- of

toward our test We're our XXXX we current is and important. a ready Mike, very we cash strategy going is pressure the bet. on perspectives be working in We September can going that have on. we the Board, can But and is get growth to very to all -- on assumptions. then And XXXX our we'll that plan. of our Every our with all get year final try hands that free be think a our that year-end, important. to we data I all still we You to roll plan. finalized stay session generating We be think still -- hands think growth on out, important. the

way. really two Kevin half look for from And got that this momentum want We you and if things the foundations results, our and at second it second perspective the I sure really of as we a well you we've and think think that XXXX. Clay -- platform the about bode -- foundational sheet, year, balance strong to in so a half, so think lot if maintain have going it's are I we of make a talked about and to those

how about And so up we feel really for us. nice setting it's

the Great. while repeatable. just North be the as here Island better. that. market flip call Sunday to the weren't be Delores Grady Minot if in last answered over going concerned your to spectacular, wells, the looking I here? And kind Bakken, if thoughts with And think good, Appreciate I curious not year, Sand Clay, your you've of maybe that

think base Just put curious going inventory of on look new that as in that's what if up if you forward, as you you good can case running room the have this kind quarter?

next team setup Rick's to question far Mike, our number We've a we me push inventory the this repeatably -- or eye. can think of as The curves barrel deliver deliver. are from for for to we call creative. we Williston have How can type anyone kind make to at been Williston? we the up. completion we couple real There's to that we these hold happens, stuff have I'm as has going in Island performance. or We're so epicenter stepped well Basin. of call as very reality some North continue comes and on years. want away it's going Can results? whatever the question, of upsets, that. we curve the the else this the of had type weather our well able The giving mark what this guys that deliver on as way, years we this knowing I And the know questions X times be million a excited sure to over stepped of have Sunday the today. of We operational

million basins. ashamed cost been fully ideas. has everything and look the Also, from we're fair As bringing game. We to I Anything well peers. our point look fence I'll Therefore, mentioned, learn other and across great. performance out that the baked. We're is in not sub-$X from

in the throwing work of fight fight on don't the kind towel are peers my want and of lot reservation. to a reservation, to the the good On

industry-leading. I think is pretty that

pretty we're we're where excited So about at.

of forward. going consistently up of your continue we and type but type any curve our hope to beat hesitate repeatable deliver shift on would still expectations. it's think to subset to I group I wells, wells, to curve

Your the of Downey next from comes line Citigroup. with Brian question

Slide well shown quarter. I believe costs which greater Delaware noticed quarter's well than cost throughout on Nice you on deck. the color was a I efficiencies this rest you what's additional that cost X down decrease see in any give is and last decline XXXX XX% X% driving that any reductions on incremental levels, year? from Could the of additional average runway are on

so completions, artificial these actuals, Yes. kind Happy Again, are numbers, that's have a wells. it and we lift, facilities, look-back if it. mile about two drilling, lateral, the including this to talk issues any might -- includes is had of with

back is go look effectively of the That's details, tends a we've in, bottom doing well. This right, give real won't everything the made, the I we're the into the improvement design directly I'll much design in to drill Drilling is changes of component we've of slide secrets we to of away, our trade. not it. more right the -- lateral cost XX%, that is big efficient, "If but out it think -- cost-effective the can also drilling is Sometimes of you, drilling Changes I times. the the That's all directly point goes some tell well entire shows made this stimulation time. for..." in industry proportional the a and stimulating of manner. drilling trick talk numbers. That our I could kind a

getting as it's placed drilling well to can efficiently we position right best-of, team tend job. for And if proxy ahead. just a the phenomenal safely. And one-off do we use manner, the that a not money a in we're a done usually well. The a in has So that again, quick

that Our down that's guy. average time. And drilling manager consistently over kind here move to is the results see of a wants approach. And right I think repeatable consistent he

results numbers. way. to on of in look-back in I that, these it More by yield you think see the come kind the

we prior the Wolfcamp of activity during half about the it. think then Delaware question, X and any? in Derrick's that co-development sales concentrated shift Got then back mix should the XXXX, Upper how second if first going into directionally year, with Slide And to shifting

No.

Bone just as the is The have individual at the have mean, very addition We've the Bone Spring I Bone the returns zones we'll Third learn activity. the Third of A. Both the be we -- that productive. -- honest, think -- Spring, Stateline, both Third tested Wolfcamp landing inventory, lime had well We've with our let's today. matures, Spring more epicenter been I -- our in very competitive of me, sand excuse least landing of that best inventory zones. in two about

that Wolfcamp. the we landing how very we're ultimate don't flow for co-develop? the good, So How it? strong we encouraging do have? is do belief Upper go very, zones spacing working this is and that's independent us. have an know for What's We in many very we yet, unit What on, from and

that and independently that to bite can. in the the to we're obligated kind take individually as not time go what do having very the -- So it of Wolfcamp go means we It's basically to small because is feel rigs, X of same as -- and important A. we with we can at in want develop

Sometimes two, as as five wells. six many or

rig it with and crew the bring rig, then again. do of get out that online back in completion hit You rig those the get get wells a way, the and the in,

cycle development bottom it and line, Third queue, full go hugely under and the in we'll falls then that the ability to plow returns. With productive, full have Spring, Bone down really as matures again, another for

with Sachs. comes of Singer the question Brian next line Goldman from Your

you are share to cash next free buyback, solely Question Do part repurchase the sheet to you the from that to the to free repurchase that on would to flow flow pace use as wait year. into recently in in sales fund or you go the as strengthened you if addition from on don't how cash you expectations? willing see use of share balance we cash -- would relates the asset and it the forward expect meet flow the and buyback free

flow. is cash be this The funded will free buyback Kevin. our by primarily Brian,

looks have to pretty are flow at look consensus, cash Rick September most mentioned, next then good from as Obviously, bit year. our see to of you to capital later back with the with settlements work and year, time timing projecting half still you our we're time, our intent that a Board out crude this into the I of as most order buy revolver so. of that free changes think estimates the portfolio strategy in some consensus a may session there XXXX, as do back But portfolio be the you results we flow. to about flow order the working from what well our program But free think kind XXXX with those going and seeing, we're is the trajectory project funded And using be little use to the like. be the occurring is cash with going of cash our we have us just of actually able free little -- were if to we're in think to the on and I the shares. in about the of really month, to in you do

our monetizations leverage we for to does monetization balance accelerate do investments of we did our really this year, we sheet next what it I was, of think, created were projecting -- balance for this it. WhiteWater that our our be our as Oryx so. is And support, kind might did to mentioned the what equity those leverage year whenever as earlier, of it and able and there,

really, these Now our going see hedge can to book mentioned, start with maintain plan order executing hedges is, in as one sheet of additional bit we're at balance -- we healthy we buy $XX, strip's start Clay as a little will we bit profile thing this adjust little back as above in really you shares, to the to program. a $XX, and on again, we

Great. highlighted you would flow at buyback how and you see disconnect an the are here seeing And the or the market your investors WPX. that at elsewhere then level you're my how solely of in on follow-up that signal consolidation a asset disconnect capabilities interest is is, buyback looking and from a on corporate you Are WPX? or perspective, a cash focused free pique the that terms

Yes. what our Brian, priority question giving focused got -- anybody We've know and the doing. ourselves the assets quarterly -- on you the than better we're this I I call we're that's else, now. when right have in last on is think us answered what's confidence -- you

confidence you're in equity we're is compression the in you the right, from well, price there you're crude just think that valuations seeing to see gives that. in I the really is the And think. do of see You I what totally us multiple And doing. yet sector overdone, disconnecting pretty sort hanging companies and

return some these our of more and focused enhancements with right mile two on Delaware look the his the you, so interesting. kind really And were see down there in is be be Clay there our may on The now. line have and conversation if can positions, bottom checkerboard neighbors we where together, ourselves. units out team of some putting priority of things could the I having part that, tell we that is, And really of from we're you that's

with comes of line the question next Neal Your from SunTrust. Dingmann

days? -- couple to bit you venture about for even when wondering question you but Rick, that up a the that, obviously a ways you Kevin, I you how but even or My kind pad view larger today. tying even is there of I'm wondering, just pad about just test or think tying to would these efficiency that? maybe, think size I'm about versus it different, I'm days, you if you mean, capital potential just the versus details size -- up think of Clay rules and behind Great guys these wondering how a

Neal, I balance. think it's an interesting

to Delaware code trying of optimize the We for Basin. that have his And is a Subsurface guy organization, is world crack title everyday in his scenario. Director and our that

further it's removed geography, bit basin the and making to that of Sometimes seven, we've parts little some and we still rigs balancing different run sometimes those land sometimes parts have we requirements, X that. But think with boxes, the him more given than I in are understanding of sure check the all of Stateline. it's our

If and you know those we A, importantly, to just fall back negative and come developed Lower guess and very -- a have the path a I down, figure developing later the what thinking unit year mix. And and not so flow leaving flow the then partially when Wolfcamp then they you there the Wolfcamp you you, not and out anymore. do plow in about We try A, units, understand mean. if it behind a It's what? into Upper

have that You interval. ruined

the of that's motivation. big a part So

And trying we're in Lower hit a A, can slice, earlier, X/Y mentioned to a we an go kind I minimum of get and Upper in wells. the rig be As and four that again and months vertical do back would A, B six a even or out Those in later, sometimes. again. bite two might way the then then we and kind it them, come complete of so then and of again take that

to up take time, bigger scale over now, we'll rigs bites. able we be from As years

that is completing completions, and move gained. frac efficiencies think on I cost of being are you They efficiency crew each wells. more more to have location the efficiency, avoid the getting that scale able you

kind coin But that. can incredibly on be of side the that if another wells of one in flip many the facilities and end. Your you bring time, efficiency side and there's more requirement that the too can pipe at where of you infrastructure actually big, cost then facility's efficiencies and get for come along to and with be

I back. two there's back say let see visit. you for a to it X visit, XX me, we per pretty of go right got -- before in it rigs sweet wells probably, to get or sit today, that year X a then there. kind per quick. approach So spot wells would importantly, Can't as And anywhere the is you to from excuse

bad really really, some visit. have come awareness to when back you will You

because great details, follow-up. that It's to leads related me

spacing. of you just what -- you -- the bit on formation? now Or pushing and sounds and point now You it sort as of So Or look to boundaries mentioned about are at a me when going feel comes it's And the those to to is good? like to is when done just pertains sort here at are telling you going of sort have of of it you're developmental are there more same continue you it you more? sort boundaries XXXX be push that beyond? sort the already the pure you

are more development to and full more mode. moving We

Well happens on point, soon $X commodity cost No, Now recipe get and spacing your importing as changes. on is, stuff? exact as do changes. we the wells in shift price, because changes. sand, $XX final you first everything what how many and have Local all or that shift everything sand a versus

enough and that in Pecos was the proud working works to have the couple and There's and have the we The comparable what we're so work done. spacing data you We're that attuned always taken, we've approach. to that of I'm really the towards know taken, core you But very been for But nothing like elusive years. it's the what of ground to we're really never final answer. really that self-aware And tell we're that doesn't. to going test watch has a that that able we've the and team to never reach a bit right quite it. project

is that that, to for "right" of the important solution. very incredibly work us all so And towards

Your next line RBC. question comes from the of Heffern with Brad

Question on midstream.

the you seen might So has success if you I'm that that? think program you of I of supersedes new the that repurchase that investment that led point, the you're before. if with you've had potential you've is past, this still activity? to sort or talked think If in seeing not midstream about kind attractive coming at curious to opportunities partners have

think the keep go, questions in works, from along the coming. the Gulf the have I oil but that functionally Everything where oil evolved, does exporting conversations. Brad, Coast, those we're questions how Yes.

supermajors lines, our or Now of that. other WPX own these be not have that but ports world and space on on some old and building some to those and call we're in want our very humbling me little up let clear, leaders opinion anything interesting along it's of

back we basin. in of our do eye The always and the the conversations. to shareholders flattered and discussions the middle how those are an water conversations of up in and for furious. of very own have So be those way Rewind in right part fast create Stateline for all the to heart value

You these quarter that one can protect And are. really after just some our not the same watch importantly, bet business, money something create we plans a value, E&P inquiring to is quarter flashy have deals do regret most We after how quarter things about and really and very counterparty most live upstream call what these the if cash could of opportunistic. for it had we in that call performing. you do -- and time, we're look yesterday at on because

perceive we very, to pretty proud we're marriage-type as see in sheer incremental So as and value. very are but of creative always looking we and opportunities what how may selective challenges those others kind proposals, create of

is this I'll Brad, Rick. interject.

to think I try And the best allocation that's my capital can we think, allocation decision to the that Clay capital on just job, a decision. and work it's I is with is make. Kevin and teams what

you good slam we a now And we We NAV which dunk where look like very we're to an pretty thoughtful. NAV that's is, think. of and to today, so have our feel investment is, are when be opportunities, we have those share trading at at I repurchase, our value what seeing the

done we're versus very, very we've the wells And and that investments so of that some midstream Delaware seeing made versus equity that in returns some of Bakken we've these wonderful our well.

capital we coming at our the we'll try allocators. and the opportunities still do being are can way So to great best

the the for how the sort thinking about about Howard JV have, going we see but then this including to that? along Or And already the XXXX? plan mentioned on monetizations lines, you like on? you midstream more forward we of are Are water, assets the just think so should how same Okay. you and that going

we be immature. market. watch the asset know to lot monetization very, way going We bit our in little thoughtful. the is -- still that very midstream a ways time But are will and to is from also portfolio think We It's to of right time we go.

right the and we'll so to if we'll is again, and to monetize time the monetize, make is right keep right it try once posted. you to decisions, so And when

Your comes Jiang with Betty of Suisse. next line Crédit the question from

XXXX. on question a have I

lower you're CapEx savings doing Given cost current the you less X today well at pace, think you more with same do rig a do well can equipment, with if year? next maintain generally year-on-year seeing the and you activity the

could. if sorts obligations, we you have penalty. I we We have I purchases there's Because a sand did such Those of that well first on some if year half cost. some think, of had the -- think believe, expired. the away higher Betty, walked have you some arrangements will

CapEx. So I think probably less of assumptions your you'd count, Same see are right. level rig D&C

broadly just perspective, for adequate solving then flow, more early or production XXXX And as with an are level free output? it's on I flow some level an adequate but of free planning, you growth days, of know cash Great. cash high-level

cash asked, flow cash production generate optimizing rig growth well is basis. flow on the it's with right flow capital in don't just out Kevin. -- much I it's that production phases, I the we're we're coming the even And of with efficiencies you're cash free on more about given in still getting the early free is the we're you This we're growth right, between that foremost, free free eye the can count, but amount focused reduction much how how and we needle talk and per how about more, as a kind seeing much to of want first flow, think, returning of cash of an on threading or given our

we really, kind are then that's flow. what's free that well production efficiency where comfortable start. that's It's of driven the think, production with and the resulting It's by So we cash I the capital results, growth? and growth

may comment basin, Probably in an in but on WPX, you squeeze Bakken Clay. give for could Got more the gas the it. If infrastructure that? constraint I around any on issue one not

has Thanks for the proud of the question, Betty. team I'm real done. what

the of worked in our gatherers. We high hard We our oil favor. advantage have Basin. very the midstream our XX% on of being worked this. with nearly cuts, very we But That Williston have hard on end do works very

We sure make option the to NDIC meet the can capture rules. possibly we with closely those how we very gas understand explore rules. worked have every on We

my that in I that. month. we've As of mentioned every met Very proud prepared remarks,

it for lay and financial have to we'll When Basin, do to like and constraints do are continue continue forward. additional There now motivation going in the lines. challenges is or the price so no Every to you way is out there. right-of-way then midstream that. challenges We often -- so the them gas providers are Williston there's other

so And the for really a deal it's big Basin. Williston

very resources. we've very NDIC We I so, of not but with think very job those that the done and to now able about think opinions, some being worked also share strong month, admirable and wasting year-after-year. industry, meet a has has rightfully I opinions, month well after

question Your comes next the with line Mariani Leo from of KeyBanc.

potentially lot a time. adding question over earlier surrounding buyback certainly a potential you and of about here. announcement? consume capital which also the buyback maybe a sort the buyback Just buyback of opportunistic, is the delaying XXXX? in then with cash involve obviate thinking does dividend rig the free a see kind And discussion of flow guys the fair bit of that Do know a Obviously, the you additionally, is of can sort

it right, You're is.

implementation And I dividend. it as don't can. being opportunistic We delays we if the know as really are of a

-- it are I as shareholders. look but is, to is think at returning returning what value committed we to we

of equities, return against, It We the we're as what's shareholder upstream particular the kind gives in mechanism mechanism and to in the to with best the seat the order or in best -- now, toolbox I starting return in I options and value for irrational now that right mentioned, NAV, that to the we've it dividends of the the of that my able take Rick do at way us free best value to be the to sit And the best out opportunity to do us. seeing portfolio our look trading the now. cash is return generate shareholders, it. flow to are that's what's traded have doesn't as we

the next about, of, just years, tool over we to think flow think this going start how going about value shareholders, the to as returning that matter and it toolbox, of give a and we shareholders. thinking we're it's to to back needed I be free to opportunistic couple we our cash in are as how we

not Yes, back That our was was, on down move needed feel well It's -- we've of if some the that I'd evolution, first the massive pay our it down. first We on last debt like towards years. our us we for right? to a to an checked That just focus box, net from shareholders" Because to was down add debt. was Kevin. over driving to thing "paying way X.X EBITDAX. we're couple X.X debt to

things we're commit like can really where that. that that -- the we we to to to the can all to It's there ready to we time point sustainability just future increase to see. -- And where you're be not you conversation I point and point to think honest, to are not at today. we're not this the to dividend the is the commit foreseeable ready continue and for that okay, very the dividend that, over

in buyback then think as direction excuse dividends do, or having come -- once I the we'll that the dividend the as well. of see And into move opportunity. we the focus, we face opportunity a me, that better

helpful. a obviously, online of much Can guess, ballpark when comes just GP&T give can BOE see here in fourth give that you here. That's price I later up comes guys price realizations on? guys -- Okay. Gray oil you can of some go And ballpark per there's but benefit, to a you better how about follow-up you Obviously, Oak talked the when quarter.

GP&T that is on, that on what's comes one? When in Oak the increase What number? Gray

$X.XX. somewhere $X.XX, probably around It's

negligible. Pretty Yes.

We on the see [indiscernible]. added to will that

Brent tying get we Corpus. to point That's international pricing. is to important on when we're that running, obviously that up getting Oak Just those an Gray pricing, barrels and

And you're outweighed so is much more of cost really that now the -- pricing. seeing benefit by international

comes line Energy. next Simmons Kashy question Your Harrison with from of the

Congratulations returning you to can on to getting the capital shareholders. point begin where

Clay And so one -- maybe and for Kevin. or

it's CapEx When I year? declines lateral, that the in for XXXX flat a costs those maintenance consideration, base consideration, million level if us on think You Delaware around into which maybe year-over-year exiting lower looks well imagine your XXXX think, two lower be exit sub-$X wondering help like you mile take highlight take tracking cost, just $X.X I to I D&C when Williston XXXX hold should tracking million. you well a could basis, through next was you -- QX rate through or the

you Yes. of I how of anticipated oil, and do BOEs that? it's the how way the talking I'll Here about talking numbers, Kashy. tricky maintenance capital you're you're those one question, it, and you It's answer about -- sense. kind high-level is a it's and manage

today, exit doing ratio, quarter maintenance same $XXX gas/oil kind ratio to us and same or rig fourth that probably in counts the $XXX of mix -- get kind when million think we're capital, that's of to same flat, or point. For about maintain the -- we fourth million quarter of that to exit-to-exit essentially general,

you're to number be earlier environment. landing the maximum made as vertical about base call just how -- on an the very economically you it of $XX think lag inflow highly I you the that spacing spacing? developed before you enormous maybe today, how think degradation assumptions of the frankly, wells? And as then about was dependent How of stand then think parents the then and about you within, questions, time but quite as for know inflow think All could I see an Excellent. interval? And walk I if amount but zones? run in you How a your that's -- on $XX risk that well horizontal through, wondering to comment, between to you average going an wells that optimal case us few it's about you think helpful. variables, the -- could that start earlier very that And you building a an upon

Z. a Kashy. follow-up I realize question right, All that was subpoint A to

So I'll remember try and asked. you what

Lower probably Wolfcamp just A, at Stateline unit two $XX four area. to zones, the landing environment, zone $XX, where the we -- depending about -- today's the start that's in As think in Upper Wolfcamp on let's that in to landing B, that's so -- sometimes four is flow you're itself, at Upper optimal A, X/Y, wherever and spacing,

Now one it's landing mentioned drill the it number interesting you two, the was and tight those I've an wells. affects -- how that your of because then -- zones, question, can

through all that per to probably we're as per four returns few landing probably six that for to If horizontal definitely you higher those. meat a maybe enough get that way on have cycle how bone and making one landing I wells you sense. we're wells two, range of full on as think for each When cram can versus wells zones driving the in returns, in many we're as zones, the yielding three impacts sure landing zones,

XX, wells for is that, that we land would XxX the in the is be So A. Upper Wolfcamp range, probably that XX, XxX your

And but that, so a different the parameters ways come then to on thickness zones landing -- or it in play depends as and well. obviously reservoir and view, well of like talk kind well the into about individual permeability bird's-eye parameter

I have imagine Bone? would associated you And landing it. incremental -- the zones Got with still with the Third

saying Wolfcamp unit, similar A. well natural flow because well and holding that regards the barriers in Yes. just But Upper that results, hope landing see there. up don't many in we -- on it know spacing I earlier, it interestingly, thickness said -- A the back like To whole formation. more frac shapes -- the we zones how something individual to other we're yet I that has me, and

gas So you the as has just of a B of cut, zones will nail some to us in of time. too stimulation. to to able lots forget higher control be opportunity. and that it's don't And the still It below come one but has better have about the will well. C D that But early that down. We kind

with Markets. Jeff Capital line question Grampp the next Northland Your from of comes

were guess, kind just buyback you I'll Why in? is internally opportunity the kind conversations, back growth just settled impact leave guys of out today? ability the you the program don't want doing XXXX. release, in guys of And how you there scaling the it at balanced on stock But one mentioned a given $XXX here? curious, buyback. Rick, of to grow as your larger number right in put I this maybe in on the -- that kind one to you any philosophical million guys on your to you kind any per conversations of and how here,

like shareholders, always is buyback it Board XX our quite of that this quite just We've last The discussed came you be XX% for in meaningful time. about with make Yes. there. some We some is your and something minus time. for that the in days. ended something that needed outstanding to shares to option felt or we've do total up not plus we it, to for contemplated This getting

and dead went And just a of irrational, time just with thought horse, especially but the perfect once to really we so a good a fundamental for we buying that that to seemed in the the some behavior, step in called again program, it make and to setup it hate right like us -- ourselves. was just investment recent ahead beating we it implement we keep performance the

I that. think for much upsizing, as it's far As early too

We are the over first just we'll how -- months. tranche see goes this next XX

to look we in Yes. were in bite estimates, kind did our XX profile a protect growth months big really about to sheet, is sheet. we shares buy that's over $XXX and if commensurate and generate pretty opportunity the And you'd think and pretty $XXX balance think beyond. -- for the you flow see free cash good consensus have bit I with these mention create the you again, years us million, as if I flows to of back too cash next the balance more at that cash amount do over two hedging. free our flows not we you -- million little about more again, that's order But as projected of a we think a look still to that XXXX give going

question Nicholson final Your with the Stephens. from Gail comes of line

recovery in I half 'XX. second you just thoughts the versus about rejection of wanted ethane your ask to

and You were with I cryo facilities. have curious how a thinking you was guys the unique with situation on optionality of kind about ethane? flexibility your just

It's tell happened issues market. happened very that situation a I you Yes. Thanks dynamic The the Baytown. down in week. the can Gail. for last question, a within

our evening, Howard, I think at plant were we we had at hours -- had made already we partners it maybe and XX within by midweek say to that, of time. was talked That's to and the the a already E&P a real be already able for to market. switching that to of ethane unique ethane an face pretty have rejection in crashing control company ability a a changes in

as quickly watch prices with We're it's move thoughtful We're staying so we'll watch to changes I headed. difficult market. continue ethane real to on for Waha and have So it's continue stay we'll down about kind dynamic. as gas don't little just hard working on continue the the pin well. are We'll to it. It's predictions prices. tell very But NGLs in to I a to time ahead, best value strong on because of can market -- it more creation. appropriate as you line make where the any obviously,

analysis landed core post zone did. core were to you regards versus made Okay. done? When back back wells of post being the the guys the landing you kind core you comments prior data, just to going in core look the at know And to being landing optimal do before data zone data data what percent then optimally you

or landing That's or core a feet. zone the a great question. It's moving sometimes XX -- XX XX this data, you're

a you're zones two different going XXX So from it's feet into landing shifting to or interval. really not like you're three

to from landing you're frac that barrier do Sometimes an barrier constrained. what yourself Other accessing the so that break we're effective to trying and a to of through part to that zone trying and is you're frac keep energy reservoir. able times, make the distance of getting you're it remains push frac the barrier frac you're sure so frac

ultimate would I more design. tuning. fine kind about frac So the it's like It's of say

there. again. spacing You drilling miles once a are never of and unit, it changes couple then And you figure over fully move for it one you out

so We're the information. operators, that have from of a that to logs. to tie core really consortium we is able the core, back we So area, in learn with other part good information share

geologic a We if have the does move we apply robust learn to data, understand to of around field and it something we're so able here, the all miles very to structure, X framework how away. kind X XX

were ever like pretty I are perfectly; few it's very very just few completion design, your So would landed dynamic. say perfect.

helps everyday. to always to move trying You're important that this of perfection data towards get continue in but closer it, always us incredibly and search

There over this the now are turn at back no I call Rick to further will Muncrief. questions time. Mr.

wonderful sets the a think with thanks time I today. who going our Operator. still you, a future. quarter, today. And had the We us we're excited spend second call to those on appreciate have nice up strong We're really Thank We half. opportunity about for and you for And are to it a XXXX.

thanks great So again. a Have day.

teleconference. today's concludes This

disconnect. now may You