WPX Energy (WPX) 31 Oct 192019 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Q3 2019 WPX Energy, Inc. Earnings Call. [Operator Instructions].

As a reminder, this conference may be recorded. I would now like to turn the conference over to your host, Mr. of Director the Sullivan, Investor Relations. David go please ahead. Sir,

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

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

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

Thank going show quarter years you, this an to we the us now. thanks give and we'll the on webcast. update to be of plan recap where from joining who're you on to fourth each you David, at WPX, and quarter Today, you another we're morning five here strong

results assets consistent backed and strong on our focused execution great quarter compelling third by Our and were capable smart, by team.

Basin, this. lost our Williston team in the now time in across years. pride we're days can employee consecutive you tell Up takes accident, approaching X.X without an X,XXX I that's almost company tremendous

we continue the Permian, our rates further. Out cut in flaring even to

physical week shows in X.X%. incredible it That's fact, volumes. up As just a for progress, growth matter it was last to down of the and gas

to practices our talent. align also recognize and people retain We our

we're country for the the a off armed in served employees pay for who our XXth, giving November with Xnd forces day straight Day. Veterans year, On our

our well this country So to many served you who WPX on everyone here as call. are of as thank who you at

and Page recap third great to turn X Let's the quarter.

what We we're walk second in doing we third then the going that we'd all million do about half One WPX said to in it. flow outline we're you talk. the of the cash the with is We quarter. do starting of we know things free $XX the generate that, exactly year,

We that rise with to prices. even commodity lower $XXX believe approximately million, continue figure will to

the capital million, plan. with expenditures our third For in quarter, line $XXX right were our

tightened also fourth the getting another year, We also it and X% exactly it more We're same yet oil range bump. X%, by for doing production dollar. year the quarter from the we expecting the quarter, keeping full now was. Last our we're the for midpoint full outlook again raised where

exit rate That will us push past year. our projections the for

year-end estimated you exit we As rate XX% and growth recall, originally from XXXX. to forecasted X%

is looks as it XX%. later for momentum news enter than Now more we for more expected. with now we XXXX good like This and

and flow cash NYMEX. generate we free $XX at importantly, can WTI More $X.XX year next

turn Page X. Let's to

And Here see in to When benefit a foreshadowed shareholders. flexibilities the in you full a the some did, details color. this actions to of simply ourselves in got acted. give detail can We is picture our they now we've amount of how the we're great unfolded. taking we market opportunities February, to see

flow. now roughly So down debt far back bought per $X our of are shares, of towers paid this sustainable $XX million in generating nearly free reshaped year, nearly year $XXX to we million and interest worth debt, our save million cash

execution. Lower in strategically, is bear in portfolio best This our and in say positioned financially or proof. the we a with We're actions basins never coupled has the our power oil-producing consistent tenacious the decisive world-class of having when execution. XX, So two WPX been our methodical,

take to we'll XXXX next couple want the future however, further go the that interested these scenes Today, the of in realized plans see for have Five in and a to turn and to toward plan do the by Page his to months. our ago, let's to behind announce Now for exceeded even to everyone's you a we We vision than step details the prices work WPX. year they wanted what company collapsed lower when XXXX. that laid at most commodity where were out XX% we to of in X. years we we XXXX. We

a terms, creating sector, driving as stands is turns you shareholder in includes it plan Now next well. today next the manage portfolio. defined X.X. to yield energy. know we goals. front X.X not investor will most these entire allows only This additional targeting a the externally, against cash internally going look and over dividend, down successfully we is, us X% our game out in value. that flow what at organization implementing important and to important communicate of to about years is to to approximately our precise a plan XX% the at see metric debt-to-EBITDA of our well It's several but interest meaningful for We we're think where how thought and years, attractive performance. This drive have targeted This you very our and our compete from to we metrics assess this we'll free leverage Not X diligently any to just as plan want very towards over we byproduct work how also

consistent opportunistic. it? very these doing of strong so. the on do in well will a years. execution, last record It established depend Absolutely. We've I of areas over we and each Can efficiency track several capital believe remaining

Operating Gaspar. to let's I'll and Clay to X, over Now now Page turn hand and Chief it President our Officer,

morning, Thank you, everyone. And good Rick.

quarter for This milestone WPX. a is major

really some macro five sit incredible moves, than tough made and today healthier outlook. some last ever with the an years, weathered conditions, bold we've Over

including will investors, quarter, the have this even more vision personally the taken the especially that you'll results like results about is to other done few of our here, just would achieve In I flow several cash that goals. as we've free we've a we so important who quarter's and laid partners with represents the much-anticipated But minutes, thank five just hear incredible years. stakeholders, Kevin Rick financial next including our all for even our this the long-term numbers. many employees lofty than out ride vendors, or us. gotten how great on goals talk for landowners, This

along results, fourth with quarter XXXX allowed they third quarter look guidance, into The and the come focus the to full great. results

our oil expect We of higher-than-expected midpoint hit to time the generate at the and capital same February production. guidance

XX,XXX a midpoint guidance, X% Our barrels day. for oil XXXX initial barrels increased XXX,XXX updated With was this oil we've a day. midpoint our of guidance to

into XX% important, new important but into again, numbers which strength We base the shape dictates XXXX. is the of are just fourth mentioned, rate, that the the a provides rolling absolute influence Rick we're into on the going with capital. The as production forecasting great quarter now exit-to-exit growth As the yea. the no know curve, momentum of rolling impact

set attention other. against These with goals technical each are sometimes

cash flow sustained sustained and free free cash example, For -- growth flow. production

set -- with profitably cash Sometimes that between generate flow and capital goal these short-term -- have set activity -- cash In generated our married isolated easy The of the with we have goals cash in the goal free growing very make. just done tension business. we comes for Anyone free not and term short the and The substantial free flow down is and isolation shut substantial or profitable third are longer-term flow. to a won goals. can an WPX. for is is that many quarter sustainable

cash the We for generate we approximately XXXX to to expect of in at expect in a flow million cash WTI free free 'XX sustainable generate $XXX flow beyond. second and and half $XX

down. cost the short Now the well it excuse that. driving let's quarterly work turn show in cost term longer It me, to in show doesn't costs it and discuss up X Slide short-term in well The repeat up Well way to always impressive earnings. cost -- capital our those takes certainly the the in a shows me actually up in number, math DD&A for performance certainly ultimately does capital and number. bit through let the the

look in you wells can in costs, drilling we've how see terms, a far lower better driving to you for drive -- more our come investments. If better making and begin progress down DD&A, just take generic down or

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

everyone external pressure and which the monitor Upper we and the included frac importantly, Lower effectiveness effective gauges, intervals, to allowed Wolfcamp Just to tracers, and temperature us changes watch frac chemical to design. perforation this the more design to X/Y A, pad, us cluster, of geophones on stimulation microseismic, and cheaper six well each how utilized our remind which and fiber frac a impacted design leading optics, the

parent-child and our relationships. the that interactions been initial of these understanding wells the drainage of back, and pressure we've Since real external the improved has gauges flow time from monitoring

is the the graph The artificial graphs dividends technical actual that this bottom work impact third foot facility Williston completion XXXX. is left of including financial These lift per highlight paying right. and quarter of graphs the the The drilling, on since and slide the is the both on for Pecos learnings on completed the and half of lateral the the costs, each State the in quarter, Delaware basins. shows

third lateral. lateral per foot from XX% down our average Delaware, quarter XXXX In for the is cost X,XXX-foot an of

capital from the the on we've costs. a XX% learnings result mentioned and calls, to previous is I Delaware those Williston in these As applied the decrease

and into fluid the stage changes price primarily agnostic frac we have The proppant to schedule commodity and of cost jobs. durable savings because They're a savings design, environment. to have higher in made made these price to pump even are are both frac by we most to how changes, be we basins related the should driven

drive we to costs optimize As Delaware. our casing further we to our and designs, in further especially for improve, these continue modify frac efficiency expect design,

about to the Third to turn Spring Now Slide let's talk Bone X results. exciting

On very Delaware Third These the laterals, has X-well approximately cut. cumulative wells of focused strong mile in we've you the XXX,XXX production different all see CBR can approximately five side, seen Bone on pad results on pads, the two X-X XX% barrels oil with Basin. Spring are right the

Upper us Upper as for Wolfcamp the -- and Wolfcamp results above Spring the out the Bone are as [indiscernible] one includes These four the pad the greater given five the A the that type of Third productive which X.X as Lower million pads confidence Wolfcamp, as BOE. X BOE million above haven't curve trending Spring Third economic yet, and Bone well but give the just We is our X/Y. trending as the

what ideal this number are to able working should of landing We're sometime XXXX. in and that price be communicate actively environment spacing and zones for on the

previous mentioned I well significantly the on As slide, year. past down costs over the driven we've

mile drilling, just completions facilities. below is and well cost two million Our $X.X for

see in especially cost XXXX momentum We continue for XX the world. to to WTI to decrease, the in XX

crude in Delaware. strong realizations see to the continue We

the quarter. we was For just realized the off quarter, WTI of for barrel It oil. $XX.XX pricing $X.XX of per

comes Williston As made was struck and mid-fourth gas a Oak continue with foreseeable flaring. at flaring realizations passing hovering around those infrastructure, as as want in the invested is both a this and our the natural oil reiterate that professor Nobody to X.X% in see stayed flaring. hundreds regarding we week, on should the you for Gray strong gas. that the Delaware a in to this tell tight To we've full I compliance been I happy with in WTI it I Rick made years. university a comment quarter, we're West can I we've the to about of earlier mentioned quarter, focused Rick future. Texas rules operations. happily are Permian. tighter companies in nerve me. a We point getting in that in get serious mentioned and gas low point, Permian we've millions Last capture dollars very with of this take Dakota. in for this North and flaring

financial charged very includes proud stewards that culture, as resources being we're natural and resources. that resources great as our well the the to of manage I'm the of

X, and showed of in In what's I'll first going our on quarter XXXX Now about time Slide the program call, compared to early we XXXX. let's more look results to Williston. drilling

to of XXXX outpace very the continue XXX additional impressive production, numbers. days results with Now

the of to demonstrate is position epicenter true continue our We a basin. Williston that economic

completions, and well-leading the technical Delaware learnings artificial wells. costs Williston facilities in and performance economic We As is economics. and earlier, are current well which million, the I in $X.X Williston in lift. mentioned improved The cost drilling, have also believe basin-leading includes tactical the overall these the

and continue the demonstrate Pad, wells Bear see results can to today. the we're You it the this that to Bird in demonstrate by drilling we'll continue impressive

Vann, Kevin to update. over it turn financial I'll the Now CFO, for our

Thank you, Clay.

seeing performance costs, in With the industry. with in well both enviable your of spot basins, team's WPX's coupled we're well in sits the an management

and and are our improvement limited our midstream and continuous has price picture management flared both the marketing today Clay realizations Rick sustainability. gas, In The of and themes addition, pretty straightforward has WPX mentioned. natural differentiated the strategic consistency, amount of as

All to is the it's operational the you execution of in the optimism. on financial basis part whether the our quarter of side of third WPX nature heart, for team take regardless the What long-term or see of house.

Rick XX, million of quarter as we generated over in flow $XXX to months XXXX. Slide for Also over Clay and free indicated Turning six last both $XX cash approximately and expect the realized decrease the the million despite over billion prices year. little $XXX our this $X a X adjusted the the for in increased to million XX% all months, over average for EBITDAX last commodities last year from earlier,

of same XX% barrels our adjusted over At per was production XX% day, than EBITDAX period is the quarter, same XXX,XXX the up oil For year. the last XXXX. period higher

third enjoyed then months the quarter outstanding. quarter weather quarter, production up wet really were our some of the faced XX%. for you When XXXX, our second often results comparing to September. great first the see two Williston, team oil conditions in and As the The in of was

As of growth. quarterly the multi-well we've in the in timing the Williston to mentioned contributed pads lumpy large past, the

for feet million year. up per gas second quarter of quarter up natural versus the XX% quarter XXX cubic was this of nearly third same our and the the At XXXX day, since XX% production

of our we rejection The quarter quarter, volumes. year. also higher quarter processing we this capacity our quarter last most ethane as on for gas the led a Delaware same of versus Stateline the which Basin online From to growth the the in gas year led the perspective, charge sequential were natural for full had

down production NGL quarter. sequential the were again of the however, a than XX,XXX day X%, XX% ethane we of barrels higher Our per most were and XXXX. recovering not of perspective, quarter was From third we quarter for

is quarter At XX% third barrels of per than the total a year. our production equivalents XXX,XXX day, higher last

year. million, reporting are adjusted of EBITDAX we third quarter, an of third the is quarter the million prior For than $XX $XXX which higher

of us, able by were we of prices, by For execution these the face the the the results quality assets commodity XX%. EBITDAX and team. In underlying demonstrate grow lower still to

higher XXXX. income also $XX net by reporting are versus We million adjusted $XX the oil driven, improvement again, million The was of an volumes. in

impacted that well. there However, as quarter were other items noncash the

First, depreciation, amortization depletion which from million versus resulted and higher volumes. this XXXX, $XX quarter was production higher

WPX. Last rate $XX. the was year, barrel was remember $XX.XX per per continues when for a However, can noncash for our I $XX DD&A to is at rate rate improve. over know over that I charge DD&A the barrel period.

the your However, managing to of me rock quality you're it your how speaks volumes cost. to and

quarter Also unlike we GP&T oil not expenses last operating again the higher and a recorded and this primarily $XX our $XX have significant were million and higher by impairment affecting driven volumes. Lease some were than the year million rate. companies, DD&A

activity $XXX for infrastructure. the million. for for completion to $XXX expenditures quarter amount, million this incurred operated capital midstream and drilling and million $XX Our third totaled approximately Of wells relates

that to per full up announce guidance year quarter unchanged to day. of well. Despite mentioned, increase our not our from as production This are to XXX,XXX X% the XXX,XXX fourth as oil to conference XXX,XXX keeps this quarter day, very are quarter to provided which second XXX,XXX guidance in estimate barrels I'm to barrels million year Clay production, capital raising changing Turning million, XXX we during we calls. increases XX. pleased XXX also per guidance guidance full our to we fourth an Slide our

increase to quarter our XX%. This exit in to XXXX fourth estimate XXXX increase in results our production rate an approximately in

about in close markets want their could the The very entire I'm XX. proud the team action as hit perfect this Slide we optimal and quarter. as bias debt a you timing to for [indiscernible]. to spot WPX as turning was of really Now

and $XXX this million and Also earlier, having interest by the we to of by point With $XXX leverage approximately mentioned to the X.XX% subsequent we our top-quality as XXXX. our to not annual this goals. only the expense, decreased issuance close of of notes disciplined reduced not but maturity significant have million next long-term X.Xx. coupon remaining is debt, is now We and year repurchases assets debt until Rick higher our got have

we Sometimes, we were about D&C. particularly investments and outside making the were our CapEx of questioned

certain helped you some allowed may midstream but leverage have monetize us can term. long to on As term, equity see investments pressure midstream reduce that CapEx short those put now, investments and have

I'd like to go back and what said call. look quarterly I each during at last year

X.X looking finding that we As also didn't prices. CapEx when cash I flows. of read would the I forward transcript of high oil from to my leverage need saying that I our I was be we to remember down internally own noted quarter our turns. from had XXXX third goals XXXX, We generated

risk the team on prudent we're of became out and do. as balance year I'm hard have and made decisions we what later WPX made managers sheet proud the say here proud at We in why to we're them. that going our WPX to with clear executing we and

I'll now back comments. Rick for turn closing some to it

of honor you, be organization. this Kevin. hard-working creative, an It's Thank part truly to

Our team the for We're their job is a and new our and our excited presented and bold accomplish for We've the proven that also to sleeves are what we want by ideas investors motivated, We've open roll get want employees. we time to and opportunity. to vision go to time the where up and to done. challenge willing today again.

focus defined as what know results We always, as we WPX our by requires, our execute and it will our plan. courage, and be our

turn operator. lines back we open And time, you the can for it At I'll to this questions.

Instructions]. [Operator

Stifel. Whitfield Our first question comes from the Derrick line of from

year that as does five initiative a of vision, of us a five comprehend progression secondary declines mitigating the the vision. or in that confirm decline through under factor? it not tertiary recovery for your walk regarding or and Rick and introduction generally could quarter And Clay, strong year your congrats Perhaps on initiatives your base you

This decline how we something declines some exponential substantial question. and years, hyperbolic that great This wholeheartedly. have very growth ultimately and base we've Yes, and math. on that's back the We about peaking our understand last manifests and year is declines all of owned that base few the course, of it's talked just over into declines.

And think XX% working and kind experienced we've hovers base down. about [indiscernible] forward so XXXX way 'XX we into that that our we of its around XX% and roll [indiscernible] in decline as

that a lower very is it this out during environment, is and fewer all and that production period and more season-type occur Or a have naturally nominal bit fewer. wedge assuming have Now total little of to a which percentage of your would more growth you as $XX $XX you production, in just wells. is

And so natural a no portfolio have or today. buying secondary strong It really no recovery, course assets. just selling of with is we that really, shenanigans in-house

If to and quite That's your I capital impressive. levels? efficiency capital 'XX Slide look your as my chart, have would QX charts flat assuming those Do X, hold D&C you on view great, perhaps be on production are a QX follow-up. what at maintenance

I I I that, to We've talked this first to Yes, work QX better about continuing assuming capital think down. efficiency, environment, have we'll in of think, price that $XXX million than past. eyes on continue our think to we all, do the $XXX million

million was and supports to that the well continues it. it that talked about put of towards of think million to the the rallies on obviously improve before. performance the to lower per cost continues kind then entry of that down end $XXX $XXX low I I'd go Well side. each

Our next the Brian from from comes question Downey Citigroup. of line

XXXX runway capital guidepost on in you the the you as any Slide mention X one you our CapEx with that could and of if we refine that that think impacts further efficiency -- think impressive estimates. about as all next on we year, as controls, some maybe up any as cost-cutting potential the cost of following about Maybe

There a -- the the the This with months, things doing eyes I that think on to in Yes, quarter, detail and fourth manifesting tried we is year. Clay as a we're a that what our give few gone we board Rick granular I we mentioned. through haven't that The yet, it. in well work have do think, we're Brian, as is obviously, lot the happy think, more coming again. directionally, bit little costs think, at on, other I about XXXX, we've impressive the But just looking third more that. In or continue. we'll that should out the during that

tests That's as to our in the fully in casing is I design these think an the a really well, into to of regards example call Permian different well, some XXXX. sand, thousand are dollars bake continues that There quite doing favor, is $XXX,XXX things that working in in a we few to contracting some Permian. hundred work it, specifically we're $XXX,XXX. a

creative. And the it's -- coming There continue tell brilliant ideas, you to way other that things as are are team what, be same our well.

improve to too we some I below without far we to know and of continue things hand, and things continue having do but in continue we'll investment some work those at we're keep pocket, to we'll try where guide So today be that -- towards we have how options. all that. back really wouldn't creative our on our in

back, And step bulk oil helpful. has from Basin. year your then growth come taking of Williston the a That's this the

should Delaware Spring cost we oil So the how I'm into put the Third pieces performance think head year? we slide reductions, as volumes, of next strong the we trending results as Delaware in deck, about the well just and the Bone in curious together particular

Yes.

mentioned think, I perfect example So it's of XXXX. question about happened decline base what's previous in the I the a Delaware, in

base you're X apex are your base of decline, rigs, ground. wells, running our You're but X,XXX then day and gain they two remember all But wells, essentially barrels per offsetting in your pretty continuing at it's nice. XX-day, per decline. to cycle-through oil state-of-the-art about quarter We're that what that take XX-plus environment, XX% mile seeing we're increases percent of these

capacity a in so to program, mentioned, little capital as much start so as I as up decline that. has you far bit, we plans to don't even same of rig go the As and count, we rig and course, and certainly to for, talking do that the base XXXX, number chose detailing rolling have production helps that growth if make that up out into as boost

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

Slide Following up as go you've X relative the curves sustainability XXXX, to see you How type into the be the shown that and the that to performance you talk Can that up looking Williston, you've any well improvements you of XXXX? the shows shaping that for extend that? seen. on consistent too you'd opportunities inventory about

Brian, great question.

probably spent great that. warning look, some excited I think year. more had XXXX kind of -- time the on inventory. think That we of this that this plot North about and the absolutely, same I making results is of last Really the world-class some I threw Sunday there back out We're through they're any Island, that this not rock.

lift all ultimately the -- you of that how maximized, is tremendous have all these a disciplines so work much not of We're XXXX. about here goes but it wells. the more XXXX. There artificial well. the this is And is excited sure of know mind return. geology there, little thinking that coming it. incredibly and make obviously; creativity flow improving up-time focus team in these of is around apex maximized, goes maybe productivity that this I'm do back, together -- cost yield outperforms our with those We and then to about my to stimulation, kind a we bit wells productivity in and It's it's into blows and and

in forward fall As into from see I XXXX beyond, and off a XXXX. I geology significant look don't

-- I what another of have we're can we be going think tested I of that in predict to for know XXXX. that testing in don't in kind the vertical step I shape XXXX. that curve similarly

this that to full is But provide to incredible level, have to be and to these investments. costs, continue returns high going able on perform watch continue at of to faith continuing rate team ultimately, I the very full

next Thompson comes question William the Barclays. from of line of Our

Rick than that two to you've are asset. you Delaware in activity runway only sense think between toggle back activity forward, guess, or base Williston, would that entered mature Delaware declines to your less we going in about to Williston? the I should mid-XXXX. and inventory knowing the the look higher the you understand help in growth Clay, given Delaware I which balancing the makes in How basins,

Yes.

So the capabilities we activity my have have what view, run Delaware. inventory, could of -- from the toggle of we the could basin from do, we That in a in we heck rigs. financial discipline, mantra that moderate more over We've really several in lot production of capital you've And so, live the doing seen increase chosen to discipline. a the very quarters. last

base is pretty And that's and so into your out baked substantially, what's plan decline forward. going the flattening

not in five we're to timing is I'm that year generate plan. fashion, we we'll course, the that free such the the outlined overall we that and continue right. when to the base to Now never add watch so cash, Permian, rigs continue of will to But decline, going saying a company's do in very thoughtful then base approaches XX% that

my Williston Delaware, I question appreciate from kind of back to is of answer. the the the sorry, toggle but premise just I'm

something had rigs we year. it, apex. about this laid Rick, start a Remember -- This recently at Permian the is of interject to we seen have Clay the of talks when couple down

offset decline really, about think, I Clay as from it the circumstances. And trying base to the you're said, to rigs, going extenuates program, a see a But shallower X-rig so think are, you X decline. we

So them against that you and anybody's we we've very point, flows, cash do just been thoughtful. returns on to have the as Clay's toggle again once opportunity improving some very very, But portfolio, see to focused back -- being deny anybody's not only put the would entire our in portfolio. are the up in cannot that Williston I the we best but in you the best see rigs returns

disciplined. staying we're So

months those get locked plans next XXXX our what the you'll down. we so of are couple And in see as in

that. for forward look Okay,

to reached frame. for of In XXXX, terms XXXX the of these the if these be five year of vision, ahead could objectives targets want clarify are or just some time

base You've moderate previously to instituting suggested before declines dividend. the your let preference a

base to think XXXX. declines You to dividend? do a you in XX% getting At level closer what mentioned right it's of announce sort

Well, years now. from I say we two things, think, five

in year back vision not year-end XXXX, XXXX built really I had lot takeoff goal domestically of plan switching been a laid to that's one gas we be the a XX,XXX kind out to at In XXXX at that attached our point had was would five late look than oil-dominated. barrels from a had we that. So dissimilar And growth year. [indiscernible] around you day. we to the when XXXX, when a that's of that That WPX commodity when did that previous dominated it's We we the people produced the And and portfolio plan. for XXXX barrels all had too we oil day think And a when it. was what of by XX,XXX year. doubted

you And of a lot see out gives so that that. did to what operationally exactly we we laid satisfaction it

fact, As a we matter that. of exceeded

now on think shareholders, if to as sorts out. those this not need industry growth to that's but things. laid an So we only and company, and And a really of why decelerate that's returns cash you focus do we've about as what back and

I going X in we we're years. to the think at dividend next So from X our probably implementing perspective, to look will the --

plan the XXXX first, share year -- have, plan buyback build we be the being that's on but that program., to going opportunistic a year-end. -- to very decline. you're outcome five is flatter thoughtful a thing and simply we that with the the around we'll the framework goals trading about we building we've in see And that, company with the why equities continuing as that think first I mentioned, implemented they So is this where

Silverstein question Wolfe of Research. the comes Josh next from from Our line

that's Clay comments Just from those said up the outlook one something thing last that growth on had year rate. and is five missing following earlier,

fit growth of still next how the were into a think does rate this? to grower I long-term guys targeting that try XX%-plus you be year, to

something tune, that's to fine continue Josh. Well, we'll

to capabilities that. first things and the to but want people sure growth value, trying getting at, have that, message clear first is We so certainly deliver look people loud we investors make what do want want for to certainly from to We're we're that's that something and returns, the that, still while investors.

but have is really you I focus could and to don't less but that I to can we to you rates deliver see to what wanted do the And of be free -- so annualized, XX% need but that annualized, level. -- than go the about generation you've that -- flow that want that on know of to -- growth cash do. talked we if you'll truly Matter that's think XX% we some certainly fact,

there see address comes inventory to as the go just know I something extend frame I to from this how the spends. wanted used million have the flat And profile you Does land the time inventory as be then also basin inventory Williston Is to could within growth well? the $XXX that and replace to guys well? guys up you annual there? that Delaware basin this a

we we I existing over transacting strong have our build are capital, Josh, a up There worst-case can a it dedicated scenario acres is looking areas. creative a things do we in very, good going have this or acre. question. can our drill -- to just free generating very requires that is very The you on next and tell a flow and scenario. inventory years, you even there. single inventory add becomes just we if asset this some that no some that's worst-case the And don't out few cash talented, team the that

team got lot stay that, a I'm we've got of good So just confidence I'd -- tuned, in them. and we've say a working

just Josh, point if on I could quick add one that.

in year of the that. like -- growth is anything team, essentially kind There adds. vision, wanted thought importance to of contemplate the to think it consistency an it We growth, and or portfolio changes this was same plan, include more any the five it about for material the about This as no slide on of goofiness to And messages. conditions articulate our As negative generalist of Think get we same not important no of doesn't our is on investors. like there of message, just we boundary we heading is there think strategy. this same indicating direction. the

I these. think they to can relate

All base of decline. a outside these of little bit the

any be could slapped everything XXX think I them. would S&P other on I one think be other every these pretty company, factors for aspirational else, of it and

the from from Daoud Our of Cowen. next question line Gabe comes

or your the all, NGL prepared I guess, on around this you the I the and realizations. appreciate into hit shapes five of this I all you gas just on a was little if bit these changes guess, on dig vision. could guess, more view, just assumptions. call, how acquisitions? remarks I last wondering, at And and if kind year I but

of there the as is Well, realization One far -- as there. around questions of thing. is two that sort NGLs and

recoveries think the I actually have pulled back. you've got recently. Up some perspective, Williston, seen from better we've a prices macro gas in NGL

their still is up out gatherer infrastructure. NGL our of building However, some there a

and far be buying But don't we'll we'll be the tell we'll do if year to actually bit your around of be whether we you do to can volumes of we've -- we that well. rigs, there. had has five on lot of evaluate, and We dropping we do, M&A. trucking kind things. just vision thoughtful need always about a our hurts and So I rigs, selling around part it's little lands realizations acquisition, portfolio to a your a it's a as We'll supportive this all see Certainly, this. assets, as But out question we have to of thoughtful as not anywhere. have and thoughts get have, continue this And with adding some question assets, second it look some continue. to it that whatever

probably think so I it's I most simple clear you. And answer give and the can

other on on if earlier results the all, And Awesome. changed of you've co-development put follow-up, some just of pads a CBR I there could some just maybe have you your thinking, guess, then production talk the that Thanks, spacing pads, given bit year Rick. it in little about the the Permian a just moving forward? and this how Just

in A to and right didn't this in X a appreciate overall this zone landing went environment, prepared Gabe question, we -- I that for wells seems last thoughtful much -- cost the seems Stateline of that. of message. remarks. in price very would to quarter, us. in I it's per continuation -- cover environment think say, too Wolfcamp for little We kind Wolfcamp We Yes, our But deeper, the return Upper X detail to that on bit too provide

it but than how that, than and that, the X, difference, been other landing We continue and than tighter is wider looser we just delta zone as that, reservoir We've well. it we've is several X. to to zone stimulation. not a landing makes continue to second-order explore that, kind considerations the the spacing, explore well The be of thickness of

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

little way. different this, Rick, a around maybe but I bit asked think you've asked

the providing -- hear some opportunities as the operators out public adequate pressure M&A Just opportunistic. some there to debt metrics assets you in on thoughts potential just curious of liquidate context in to thoughts general and private placed is to maintain order

just been So context today you've of view that in how else saying? wonder you everything

narrative. our It's to we Number discussion and we industry. and will that I interesting need consolidation think is one have in

agrees think readily everyone that. almost I that to

not I We're thoughtful is to better. need than size think publicly goes better bigger have company. something fine. if you're and to if that And do scale. better what that's not you always that is traded proponents us, think, companies stay are, better need are company, that you be I always are you bolt-on And really you add something to or just is, any to we it's for it sure make truly you you makes that's just that a doing that the proponents means not that

and three, it something truly and five just to be needs public build their really a -- is supports strongly for And our stronger far that and entity. private I some rolling that are consider that two, of us, it do to. think that both on ourselves is to to sure think, we build scale make on if And number tie side to plays give going consolidation transaction this to into side out. we -- But how all us, a not we consideration the accretive number our sector; one something least as inventory. call into do needs that that and tricky But there are themselves and really eye or that's they can companies a plan. at year to need in in say, look as probably I think that, happen degree that's have a to number

Clay, Okay. there Great enabled discuss answer. about to have a well factors cost you all play shifting of possibility Could gears do this that these today. appear additionally? even Bakken then Clay, bit suddenly for seen the to in And maybe is a improving I've maybe you the lowest you Clay. and

Neal, I agree with you.

you I'm company here basin backs can't pure find we're the always happy up with that's challenging I itself. been really really in Looking can in the really, regard. that all that to That's creative, happy the team you case. extract I of some incredibly guys out hasn't on what LOE. doing Neal, know that really the our And us this, side at over LOE the inventive, Tulsa on extends really, the it Because you the as and compared anybody the on, you, really, well really When members, in play the that costs, can tell that. hard-working to well certainly numbers company compare with into

So have improvements. we huge made

shown tanks to to I type vertical team. you like my make for up performance, Same for is with culture. of on cheap a true whatever team, value straight a the bet I well approach. not -- don't focus, them. say, things these just just don't I paint real last The WPX trajectory is LOE, just hate mean, out greatly want is gas This question work to there. the Rick hey, the away, I mentioned -- and to the a this throw against the This I when short-term holistic safety and go that very think costs. it the it's of curve improvement, get thing strides. has doubt think team quarter the I ideals continue continuous well much mentioned long-term Well chip a win. continue doing. culture It's and not let's in capture is and the forever. exhibits costs earlier let's incredible the environmental creation team

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

kind the correctly, If the couple handful of flow I implemented. it's years around years. like you more a may uses hoping of remarks gets I'm the dividend reading over few just of your going sound next it was be before could free to provide a cash thoughts

next thinking guys we stock kind get be free dividend couple that of should cash buyback you to years over rolling? terms the are in just until flow more with So the of ready of

NAV going exercise as And the is share free This be for blackout opportunistic versus Kevin. there when obviously flow every think, when I the do our it day in shares. up as where we that what our free looking trading at against we we're for we're and is repurchased and we're to But our for reason. we're said put period, a you program was out we that that cash that We've think day, a our be that cash Yes. believe we're bouncing what's about projections in to coming we repurchase not flow quarter.

which compromise contingent upon and fourth quarter we the upon first were the back but always opportunistic kind it's $XXX those -- But So discretionary NAV other be I'll I'd contingent tents say to do you longer look we've is when our as of at going look shares. our there, is the third where and a things our time, of going -- that I timing quarter, order got be. into not really some I over think cash goals always to stock that's kind We say in it's believe uses to of million trading about leverage, not foremost, goal of of stated those of and compromise term, out and buying at what versus the flow. -- five year million to goals that we're XX to potential we're

been about see to your rate dividend. to committed to to risk We're we decline quicker -- into to markets, leaning comes potential well. can like you'd more see -- And a do down. And gives that we've returning -- go also wanted to of in a cash as like it I into good that the when that you'd hedges. think shareholders. opportunistic have managers But dividend come we're how lean some variability, Yes, we value when basically, the down, We into we comfort we're proven the we hedges going lean flows me

How questions few to front, Okay. the just bit to in significant be going I on That's to of adding which you the think you're have think, you plan and at time. it kind kind infrastructure but the of of And guys here? that year a five terms still portfolio, M&A color. obviously great little differently, over do look about some already a midstream vision in

year Well, portfolio us We the We acquisitions some forever pay contemplate didn't static the we plan we plan, some erosion it's really didn't any cash door a that's have base now gives have than It sure not The a said past. at the of is, saw the we've in could be point see of to where type later thing. years, I number really. pay-me and the better it optionality, make think divestitures. that significant that now five to margin next reality the of in fit get ours, any with that else's as infrastructure or -- me some in deal, only we up someone right you portfolio over that's monetization or just time contemplate there, a now. just may this

forward, the the but it always best looking But recognized, in not be It's potentially absolutely be piece it's today. monetization portfolio. it of it's is we'll it our valuable keep very -- our not it's seen in equity portfolio, or price at something that path

of line question Your Chandra Partners. the from Subhasish of Guggenheim next comes

area, badlands an update too there there or is wells? early those is watching still The it

I the portfolio. they're hard. ready pretty say ring and We're to bell would the early in Clay. those working it's Subash, say Yes. to drill too it's

with production some have group about takes talked know, We good remoteness you that so and some it for the themselves. from capital we've of the of support But just along wells, pretty them. injection costs of drilling as the infrastructure

that. on So working we're

ring if degree yet. caution, be got can the it be it brightest one look. give a not we that of the this will on crack to on still focused Have that But I to -- continue done. to high now best and would little confidence code. just we're bit ready We the our of done, Again, a bell

XXXX. second you. gas hedges then Got question And for is, it the my on

you really you Just more? forward in you, Permian do the least sort that you dips the content hedge to Or do takeaway improved work have? of that much haven't book you think at cetera. to the are need some et curve, with How there

the -- term as going we be coming This work -- book. there continue portfolio. basis, a we an to transitions Delaware, going the cash basis realize that portfolio is the expect more the the obviously, more on is mean, gas more on in Kevin. We're and to to I to realistically, overall as into to the hedge longer

subject So there. flow higher to it be cash risk will a

at it's lean XXXX For some months. small the see revenues percentage those some XXXX, us time, -- the several same our cash year, But relatively hedges overall of flows. still next you'll lean over the of into and into next

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

for -- taken Williston program for Just to lower. We've a look and into and flat on I wondering the the was Clay, at one of you the give ? the hold of second or quick a Delaware for reasonable level me. XXXX if, for were would in take, of that one rate that same the the if just your form CapEx you example, a be work costs proxy quarter activity XXXX, and and team driving 'XX million great $XXX run rest lower half

at steady-state a of mode We're Kashy. Yes, kind now.

the just do that run xX that, fourth a the you'd from yet. quarter, to is it chose things there's let quarter we got have the this budget it, $XXX numbers, discussion, weeks, of year. forward, a haven't you'll and approved sustainable. the in saw wholesome million lot again, kind Board really But looking few to me current that You for again, If of the rate the on the doing for in a We're we caution, be table. obviously, activity see run third just in at

shakes very team, get way good we out. we'll good We dialogue, and the sides have should challenged as a see where a challenge from that Board all management

Biju the of of question next Susquehanna. from comes Your Perincheril line

in mentioned, the front that beyond slower talk help well completion your wider state basin, natural Delaware with test that density decline? discussion from the perhaps or decline base the the you to back on growth improvement could and can about Going from other any you the the variables maybe

get these trying would or But that either our in the opportunities, not Having do production all shut artificial to wells thought [indiscernible] to the I'm can and impacts on for anything it opportunities offset offset. how to side, offset change completions lift, base drawing know. quickly a I I'm give we that our fracs, the base don't impacts tweaks decline. wells there. decline production. significantly around I also base think

that And over that we things so that. are how how improve manage those time, the we

I continue to get better. we'll think

and thoroughly. as back, couple more we been aggressively first very weeks these be to of overall make aggressive Now flow I towards in think we about decline about the aggressive something business we sense of base talked That can of decline. base parts some less of and of the may wells kind aggressive decline, flatten flow more think back. you would I that how tell a We've translate more working kind an flatter it into out. that

in looking would about talk So the the those tell a mix all that that things that of bit. quite you are we we're I things at.

when always a steep We're little just that which but is those XX%, the you growing, you're XX% a really to get of basically. to order the on trying bit a backside probably better year, are at, big got second thing,

wells big and dominate new mix, the of that bunch a got decline. You've those in

decline we're relatively day. production, little speaking that's we're you barrels XXX,XXX that's your and base As as XXX,XXX matures, a total a the now company, what working those, to get fewer a over -- but of just barrels relatively day not immature we're

that As base will forward that production up that number and production overall but goes a pretty we for modestly, few of roll decline, years up type of go maturity the dramatically.

X to being brought you density then online? And that wells wells X per when the seeing we do those coming section helpful. mentioned, start -- That's

first the I those We've quite Yes, is. wells vintage yes, space their or them have spacing bit. now. would But we some what we -- online -- for a working have really, relatively don't say online this half widest been now. of I have

push let's tight my was and thought, initial go Our quick.

can where figure line and it is. we side Let's any out other the time. dial back then at Step that of on

you much more commodity really it's cognizant really price. very chasing and so $XX to barrels, that. And you of you're kind you're willing aggressive, to we And $XX thoughtful -- need more in that back you're environment, of right And really return, be this have we're get how When thing we're can as full again the one dial what aggressive. pan more $X about watching this that When or do the $XX, to cycle with does to be you other. and be to invest? out

comes Grampp line Our last Jeff from Northland question of the Capital of Markets.

a lateral the versus and cost lateral Delaware. Slide give I reductions over the particularly all seeing you've was at program I'm this benefit maybe if the maybe curious length of year gotten, X average you if XXXX that's has if flavor was just the could here us looking how what I and at been be? to past in length year, cost changed structure, kind the a can for curious,

feet? little remember bit improved year-over-year. trying last -- from and to a X,XXX Our lateral lengthened feet I'm length year last year, X,XXX has has number that

Yes.

In that year. ballpark. this X,XXX-feet

that's there the big because point driver. there's not It's But bit when So is say I an it's from you're excellent I looking of benefit though wanted emphasize. quarter-to-quarter, that at not -- little to would a that.

in $XXX closer mile actually foot, completed to laterals, this $XXX, foot. actually doing laterals push we state-of-the-art talk two what terms, just As number all different our which talking we're you completed into of if were in -- lateral per is mile that peers two

the almost is mix, all further, laterals. we on mile of that -- work to are drill And push the further continue naturally drill those our to as opportunity mile way work again So number we more activity two focus in where laterals, of those Stateline, continues into its more there two down. is, to

the call about you're so number that $XXX you're that's talking we'll The and and in, quarter, feel really the any to third we're that's per in trouble getting seeing represented average closer foot. there, the they good issue a And everything well downtime for there. that, every throw

chart that great just at slides. switching And look you the was production my curious you're details. Bakken, Is the year beyond seeing follow-up and provided maybe in guess, to the And to to any over just since a recovery if maybe maybe XXXX XXXX the versus acceleration Okay, guys at we outperformance try asking that that degree? there's higher I Is for Is one factors, get have all? there. enough the if sense outperformance of opinion you to on that versus that continuing I narrowing data yet? guys

for acceleration. Yes, but we're resource It's bump you're starting factors, drilling at exactly up -- shale We're a These a factor some high is point recovery are it recovery up exceptionally very is to that against the there. high play. that. not

a how at investment, good is it from you that's XXX, still look, create In XXX-day you're And see case down. bring value at or outperforming, a that so if dropped have maintained more. that costs costs what we're looking you either our more probably well, do at materially think day now forward, certainly and even NPV that. We if looking our

obvious And on question. the sides so benefit it's both of

performance about As kind second a start second-year 'XX, second-year relative still performance, 'XX to narrow of little bit, to 'XX. to 'XX I year they 'XX, or think but is substantial

such still so significant it like a would in cross in, see significant performance lines gap that. expect second not then that You XXX nice 'XX, days recovery you really narrow, and or but start, running days XXX 'XX it's degrade that a there's to on again pretty And after year for to the gap. relative I

the to Muncrief. back now conference I to turn would And Rick like

the We three look to in you months. a and on the I joining call. much. team forward have everyone talking very company about want on you behalf Take to thank this for good of management us care, Thank today to day.

gentlemen, and this joining. concludes Ladies call. today's conference for you all Thank

You disconnect. may all