Matador Resources (MTDR) 26 Apr 232023 Q1 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to the First Quarter 2023 Matador Resources Company Earnings Conference Call. My name is Didi, and I'll be serving as the operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes, and the replay will be available on the company's website for 1 year as discussed in the company's earnings press release issued yesterday. I will now turn the call over to Mr. Mac Schmitz, Vice President, Investor Relations for Matador. Mr. proceed. may you Schmitz,

Good Matador's and Conference First Didi. joining Call. you us for Quarter morning, you, thank everyone, for Thank XXXX Earnings

financial financial financial at the performance. Some reference of are such Matador this contained presenters measures Reconciliations in in measures with company's accordance financial non-GAAP GAAP comparable Resources company's of of by calculated regularly press the the morning measuring end non-GAAP release. used measures the certain will with

may included future events statements available. and in the certain be reminder, anticipated presentation expectations of forward-looking and could the morning's forecasts information a those from events in current company's future As materially Actual results now reflect statements. this such on differ that or is based

differ and in company's and Form Additional information concerning most factors its any on that on to is earnings subsequent the materially could Form release XX-Q. annual results cause report recent reports XX-K quarterly contained actual

the everyone Relations Mr. first I call would earnings like release our to with now the under issued quarter addition can press And with to presentation website. the connection on would to I Joe Joe? slide Investor the and you over a Foran, that Founder, our release Chairman turn yesterday, earnings in In remind tab XXXX to that, CEO. like find

working to sure locations good taking been has you much, its that and drill was to gone has hand to of and finish position you of be from also cap, strong off to in. has the strength DUCs, for that time can emphasize what that for and that growth has and really smoother. the and start to number listen a assets. to XX have acquisition start, off Matador which we been Mac. you pleasure has It's performance. very a thank Advance, It we're is to I and integration delivered The strategic both organic -- from has Thank on all the very as is increased to has quarter added off volume offer and as very to we morning, another be here to made this this certain What Ameredev developed year assets, a midstream Matador DUCs hard has those in the on-time so well in on. And its professional first wanted

also days a from not is theme that that money for -- on we will have saved that our the difference. the getting So you working well from questions just hear the for making for the all as from we've cutting there vendors but drilling, with answer long-term is that production completion,

days part So isn't people costs, it product the delivering the your about capital more the from and on also getting of comes down specific but and it's well less in just time. cutting efficiency efficiency efficiency

So I'd is Mac, questions. floor with that, like whoever for first. to the open

[Operator from Freeman Instructions] James. Our Raymond first is John of question

gains, all me efficiency The of give the guess, the first the you on Could completion the per touched first what down. that you $XX.XX I'll in the I just quarter, kind what sort I at And reiterated just to was on there costs keep of foot. full foot. coming guidance the D&C perhaps know was year that D&C progress keep drilling making of Joe, end you the question, it on on

last to from year. XX% cost is yes, so mentioned, this increase EVP you $XX.XX December Officer. the guide, that on we XX% was and Operating that full was our and And really Co-Chief service that with Calvert, the John, in inflation Chris started that year working of

foot. for cost D&C that. per around came anything put They in in out this but so foot below our came quarter And publicly, not we $X,XXX did per definitely

reductions through proud about first XX% we're -- wells we XXXX We over on had So of Simul-frac those simul-frac. had in to our to times, used of half we of use a were where be simul-frac, wells. we in and in we basically -- quarter, beat remote the simul-frac, And XXXX, in our that. efficiencies kind of drill put were target

a come reduction increased simul-frac, lot so times, fuel. use use the on And drilling of of efficiencies these increased diesel of from

So did those reducing foot. we're capital that of definitely we per the side the extremely excited work cost and and proud D&C on efficiency

haven't conversations, all seen would that you side. components we as But service small from mention, to cost down side, I we costs like I seen haven't one the and much really have about such that come in diesel other thing vendor previous cost fuel on than really spoken the

We up quarter-over-quarter have completion quarter the actually today of heavy quarter couple were 'XX. cost or of our on from and components until that first until drilling a fourth of XXXX the both

And a of and mostly efficiencies, through been drill those that's so savings have lot savings really of all those times. reduced

of use partnership stimulations. Mateo with back, better usage our -- we San when Going existing that. partnerships with comes that's on on using specifically production on And and operators getting dual facility it to for the water lean we're for third-party water and side, Mateo rates fuel, San increased better pads our

seen. And it really it's really worth service But quarter's of like inflations those the so operations cost been to that has group from X we push a mitigate work. we've say,

lot we're where while year. have still we in we a do this of proud to And are, so

we're that was proud where put we extremely with $XX.XX quarter. is, where that forward number we're forward in, and the December, that came put so in the first in capital of but And still plan, in happy the we guidance

on well. optimism any try have anybody in The those? sort Is few the test I experience with led background the testing and to of have the the that been prior operations industry. years team to kind Horse been over what there's the decision, of a wells, these done in Horseshoe just know maybe that of

to background any what led of kind decision. Just on that

efficiencies. of out the and then of operational with about Chris I'll the start I'll talk So kind wide the let some

Wolfcamp but that on in section, our developed but piece been this piece other acreage was of side was had this acreage. to Upper undeveloped, of Wolfcamp every So in that of A-XY the unique the

But we in X we here drilled the actually what We've it Wolfcamp put slide so drill TD of already. And we're X-mile Axis. drilling nicely instead I very and illustration, deck. X ultimately, is and was did the wells case But wells think, what that doing these shows Horseshoe instead.

unique so was And it a opportunity.

technical as lot Our to drilling of end would whole that a it go on did team the the front work smoothly ensure did.

to get production. then so go of next this the them and wells is on and put these And completed in piece

and with project was Texas of from the think Travis this the team I the the illustrated team fruition lead West that project, it Wolf, really bringing starts this asset. our teamwork genesis to of with

get I the Former back well than when curve the portion the technical turn build The a property. But running of of go we the ] look of curve actually dramatic, on permitted horizontal. towards the in teams, a -- [ actually a well. vertical from schedule and from these teamwork it's a curve, graduate somewhat a technical the the less piece the now MaxOps the on is the to from U-turns group, we you're turn into the the paper, actually side of that curve the perspective side, come heel less was but at when asset looking to made land think, permitting then there. it if this between of

us we confident the allowing Billy, standpoint, keeping were group obviously we by Basur, an I in we from zone confident to in very integral as fast our a MAXCOM think can. us in technical drilling so that and ] like led team Josh part of proven in And our as projects plays team, [ this have drill

Obviously, a we there XX% wells it's recognize U a reduction. is and drill this time we've X calculated turns, you single mile about of savings component realize to if that X versus

faster. is these So you've in, that, with not associated wells there a only you're to offset bringing wells but bringing savings shut you're cost that production

we're mile miles saving X but on there's case if documented doing about actually of a vertical that's a in to we're cost single so time We've portions wells. steel XX X about then that, savings you casing, $XX amount by needed also of realize. When that well, to savings. these estimated the think X versus U-turn X-stream reducing laterals million going to horseshoes, of you're component basically savings about it's And

usage, lot that we is effort work you just done permitting from was reservoir the of group on a side, wells. indicative frac, the take been or of not group, team dual lot And it's team land projects has truly whether turn the of that so production. fuel operational a simul-frac a move It really these on,

team anything to like to truly is that come legal reservoir. a effort from you any it we have, to If land meetings

half and turn of still we're projects of so or these these X in the year. online extremely latter to proud And wells. work X to expecting do, we're this There is these

Our Cowen. next Gabe comes from from question Daoud

what advanced could you early was maybe properties and were in little XQ production better wells the in 'XX. I we came Guys, XX XX than anticipating. then noted a you currently being the completed hoping another And with start bit

So better. a XQ? come advance even Like context I Is what little XXXX release even here? the when bit being do Could the better look wells provide from on economies. guess, maybe of on? those kind mentioned or just what you just like XQ in how does makes cadence you curious, completed, XX of And that then

joining to answer today. the and Midstream. thanks Brian Financial Happy Chief is and This Officer Willey, President of for question, call your

We are the really assets. excited advanced about

into fit perfect existing our assets, great assets. strategic, very So

so than thrilled expected. and have the we're produced we And quarter about they better, in I them, first think,

reminder, because they for that that the and we we As assets. own didn't excited better don't than credit get we the a we are yet thought. by fact encouraged produce production But

are weeks still as key had, we've excited car we now couple so But early for so a here. And about the drive of the it. we on to I guess, car and

I that think, completions half think mentioned, X wells in their Chris the on of completions to out minute, in of complete I our kind expect as fourth ours, quarter, started to yesterday. fact, second those the you wells. starting to We I -- and said. And come a in we but kind will and year, the of do turn group you we're switched we third the group can

of the completing and we year we're be -- to And to the are XX year. wells to on later going that going progress that XX be then in we total year. be we'll next are those drilling have the as acreage, of advanced this look currently at the end wells

that's those and progress X the with including end as in to So run that, year to rate. XXX,XXX And just those expect on wells go At going are the next we're wells advance. in into we come add so end XX a early runway or next of year, on of we the will great to kind a up year. that

about excited XXXX. really we're So

so basis, an at fourth look basis, we XX% quarter fourth you what comparing a the that's just just a If oil-only the is XXXX, in expect. XXXX on BO growth to true quarter

And on then great well total basis, on sets basis an us a just BO really on a so BOE also basis. that up for XXXX, and both oil

really about looks in we're I mean XXXX, the And what so the excited early like. that first quarter. game. we just finished It's

really hit a we before of the golf us. XXXX, for play but set lot So ahead to we're about opportunity excited

pieces? then exit year the moving I the So to versus how just which guess, 'XX company and historical relevant like norms should rate I high is this given all exiting then maybe just larger progress about But 'XX, for given exit historicals, in program, obviously, a think guess Managed relative elevated on growth a also, X-rig program to I now. those an

Yes.

the So I the growth in think mentioned we growth, XXXX. exit exit

If you we rate you held XX% and guess, XXXX. years it's what well we're But with do XXXX mentioned, advanced take we the at can the growth We as per have locations. think, acres it's BOE us, X-rig on obviously But about certainly over it for be and talk XXXX and have in we talk other that. and at away. XXXX. I locations in I a acreage those compete some flat, flat would this it's drilling about the you excited pretty there, program. have better and we what an the exit to -- very That's, hope will of acreage, almost you And held than it about day early the into if some just XXX,XXX being about opportunities X-plus rig do getting that especially to best hold-flat can X able

want And more the sell? don't you acreage about so talk Tom, do any know, of I to

EVP It's of Tom Elsener, Reservoir Engineering.

a nearby our Antelope northern last several drilled oil oil the said, barrel expanding our spread there that drilled bulk Bridge and quite X:X. for we've we've or cuts. this the each shown of like is characterized that the each water -- produced all excited benefits we'll across Northern -- of see [indiscernible] very cut look over X of then I that asset other oil of these like similar to to typically our the we've have the are we Obviously, As by barrels where advanced bit very seeing in else as we water million breaks completed barrels south in nearby, we're and Roddy cuts, further of wells Ridge. and we're be clearly of is will to we've X properties. that Ranger and the having able teams of months, we've seen wells on different closer even of what And to an wells ball all be Southern talked and that's wells be low The Robins able portions it to the some relationship Antelope or the be where of to are. This forward around end the per Pronto also typically think kind other very with acreage year ability X sometimes area Stateline about oil XX% is, nearby high contributing. and some Mallon

And our with to all -- different these so net to of there's XXX,XXX on. their trying get area. acres, excited properties in are we're activity teams very But bring

X Breaks, great at the And Stateline, outperformance wells with some at X Antelope in and in to as wells year, Mateo team. second the X in have wells Ridge facilities so wells having and assurance we Stateline about this Rustler in where, with talked Ranger XX going our we're to due of quarter San another flow and

these so And of for start benefits you see types properties. all to advanced on working the

comes Our Dingmann Securities. from Neal Truist of next question

currently again, And is wife what in I how Nice always production my your is -- said question growth, is wanting though it's for first to it's the versus nice occasionally. all, you appreciate shareholder you continued view really, I'm solid return. update dividend definitely currently changed growth past, you've as at if why And always. as you. I believe appreciate this do the Joe, or a

view how just I'm things. you So wondering

for we're growth. sake. growth's Well, been wouldn't growth we, have pace. we our in to for Neal, them, returns is -- for is at our never thanks shareholder on for growth, And again, that to the value. part back. And raise ever be we growth been for I but growth have say thing want to dividend of profitable grow the where a manner don't of just dividend, major as sake. to once same we're in in want we both and dividend are question, going profitable but plain We've we're that position both walk not our always work a for growth We've dividend, growing it the we a

to dividends. $X.XX. level of but people And our grow our be And this think prudent we've exactly continued to that those room want we with heavy a the year, shares. increases if so Matador, look while over increasing prices are at to next is about to sometime went the to can right. that in return now the went shareholders. one value Most it I dividend companies $X.XX be and we it, up steadily we $X.XX, anywhere in but all you're worth want dividend steadily stay began shareholders of its $X.XX, And tied its this All of for a at net

a plenty thousands They prudent dividends. We you'll way on They're And Board. dollars proceeding your pace. shareholders. reward our like long-term there's get think to of it's and we're look the support, hundreds of particularly fairest at we heavy at own to you the And shareholders. So think shareholders, we just your of board.

makes that heavy that a we to believe too, ownership. have So difference,

dividend, to And amount of so value want seems growing of the be to keep the we those balance. far, good. growing balance, so while the That in right stock the the and

it's we back. but it just announce that have increase, time. hope the then and walk all want -- dividend I discussed to And to So don't a

that, be equity to family. seem up real happy remember, friends but and private come shareholders I talked through we didn't to. And So with that

shareholders, friends. one family family feedback to with at and members thing, in and So thing hear if any gathering you're some the same have ever you get going you

preference, shareholders to long And if in to time our and listen. to the so have an pleased institutions, keep we're seem willing to open continue everybody or be ear concerns And they in we'll always them.

clear, asked Joe. way. just then my maybe little me bit for crystal second No, different asked that's been question, a And a

or a up now based early what late that third far, looks Or advance step of maybe is you the up XX, advance. still I even due wondering, your XQ, quarter XX case on on maybe impact you're new quarter, on but a like I on minimal [indiscernible], even about one just in even guys already seeing coming Slide seeing? too step you was advanced or the that talked the the for but where -- it's it to XQ? prior noticed, on decks definitely wondering, then the production, earlier I'm nice because deck, and on all -- wells you're and maybe And up XQ. I'm a in mentioned there impact from Glenn, you one of have remaining I the of is Just increased it your maybe so wells expectations XX think Chris Michael of in what another late in just quarter on as in significant third bigger its these mean step

for thanks question. Yes, Stetson, the is EVP Production. it Neal, Glenn of

the in a couple for to the So of seat been Brian weeks. so helm, speak, at or driver mentioned it, but we've

think wells then But took the then to Margarita already to far, fuel but that evening, our I on July. we'll really to in existing example fracturing the completion give wells a nice we and Robinson wells quarter, faster MAXCOM had complete a update way. that rig all encouraged and and guys, day is these of the tip and to and saw think it of completing an integrated little doing, being And you production -- the in utilizing So And give drilling their that we simul-frac for to we're speaking room the well. smoothly. that into operations I in them. We anticipated. was those yesterday first hat a we went goes from the X, Brian operations just want us if were both contribute hope dual mentioned than Rodney guys. that by have we started I a -- little And time, over this, wells. day so how smoothly, with will the same meaningful QX in these efficiencies as kind everything hopefully, from

comes Our next of from question Scott Markets. RBC Capital Hanold

you advantage by the next to stronger that assurance performance? bit a like little year, had you midstream performance. about you of going And and and well does And provide performance. more Tom, better the advantage strong you XQ did be Can mentioned midstream how little the 'XX, flow early give what how the all color I pretty a have connect think provided the some systems, has as you? that's flexibility earlier and you in that helped of guys that's on

This I'll then thanks Engineering. Tom it for question. Brian Yes, Willey. of is pass and to EVP I'll over Scott. start, Elsener, Sure, the Reservoir

they they Stateline ground of to pressure we at I the can and to fit system, gas into the some of this us right as opportunity done well. But high-pressure unique medium that lot wells design different this I oil, kind a think And kind the the the of producing system. custom-flow the these create kind around, down water things Stateline low at of development has are to infrastructure the think all license produce to and of their pressure unique it system Stateline up. a allows XX pressure of when that credit designing into. And of is at that team wells where all right whereby be as they've from the kind look were

a So Line always we stay shift years, keeping been Stateline San flowing been around the happen way. And can to kind those without in And plant State remember Mateo, and Stateline constantly single to a having the of for kind line. this benefit keeping running. benefited of could been big several production. none producing their and clip without optimize of day to has great now certainly, a has that has I of has this something can't wells downtime

everybody keep events, storms to lot Willey Krug think throughout [indiscernible] in online these all a have Breaks plant and Gregg -- at that's been XX of that different all wells different I these Brian running and throughout back production. able Rustler coming is having

they've And a job to so I'll that, with I hand it and think over Brian. done wonderful

that and I synergies the Tom. also the Stateline Thanks, we're in across say would -- Yes. basin, about too. just excited But true that's we there.

process San Breaks, look you at in If well. we're another now, right at areas, other look the disposal you Mateo's saltwater operating if drilling Rustler

Stebbins. to other going some right out building Matador's there. drill up to that Going now wells of to they're We're

can able ate San be meetings partnership And the guys be build-out the the and in go just Mateo where where we'd so is guys on the X wells actual we're to the side. to talk that and and San down great, that planning

hand-in-hand complete over of thing, connect wells San And year, we assurance Matador support And part gas of San connect Pronto San same across northern the to being so and then all a to where even flow kind Mateo, kind can a Mateo to the I the this Pronto. of can basin. that Pronto and the same Mateo. story. flow that early of system ensure flow also will over to there. that of to advance next to PRONTO, kind And lot looking year, Late there's able expect think

just about talked so that Tom the synergies continue And at to the and implement Stateline, that basin. over we it's great, across

value the really of midstream the assets. we're excited So about

in same and that still to going and is what companies James the the point, that's plan. service what pipelines. getting are see has that third same is directly. are that PRONTO. And feel importance not, anybody so business they they're everything call about would even is getting the feel should repeat going better to I'd we hope we're Sean. party other getting to a trucks us present, that makes committed storm everybody emphasize these have will service. treated it, everybody amidst to there's know one And you're growth that into is But is of it us Brian, and And online from as while their good us and the to clear tie-in me what to in at for quality that sleeping pledged think like staying business there our as we going do else. the Mateo repeat every service to are preference Matador. confidence do of And the over Yuri, keep be if and we else. That's also have Meyer growth That's feels similar everybody you're to internal free a else ours the they effect tried they themselves and there And and hear get guys to. they're to O'Grady on have committed that isn't is doing to San everything as and good they that aided that bit very a as very, that anything third Well, at I those both, growing the a

partners. run gain to be good going a and straight we're So

had has a think around this evidence Joe And I as we and actually little of right. saw exactly Joe, the due natural was as natural And production a is, Rustler gas maybe really bit even the you're processing ball area, spread less third-party Breaks gathering that and gas exactly record quarter. the basin Matador to that said. even in

a And contracts so of so they've Mateo job We've teams third-party Pronto, contracts. by development at recent both signed job great seen and them. both great -- San the on as business and

you call going even call our treat an so I'm third for But well. we as as exactly on And that basis. Joe And happy him, treat around can just further can said, system. them call. you answer we're parties to Matador like me we

on and obviously, to one give them have going But you've completed XX-well of online don't think got I a these another July, sometime you a advance. question brought if me ask I'm typically you August sense starting in just one then and could And -- us things max And early large not package, guys how then packages. going year. little? a and a of you're going those stair-step this it's how sort one things where brought -- you the by be plan Can bringing just it to little you next Or sense of give going to Is capacity. is on out thing of be online. to

months come color us that? a just So longer stable wells to see period little you a for production bit -- gradually gradually keep of give those going you're few XX over a Can wells of to online time. fairly over a period of

we've XX batch, just Glenn of XX -- here done on time. the highlight, just a like do wells mentioned, a The for while is uncharted we've Yes, I these advanced is properties. question. And as you think to at the little been I think it's you or I territory again. it at it's biggest important just thank for Scott, wells for XX us. a mentioned, bit as

and logistical are the there different on challenges water. got so And gas with that sure associated oil, on sufficient capacity that. -- to have we We make all

of the really so at couple a them between. time in a wells way staggered of a a kind in that have we And with few fashion on coming days planned is

cautiously that and -- way still There's really go got chances. to we've our We the modeled. execute, again, that's So it's like optimistic. but we

Mariani ROTH of comes question MKM. next Leo Our from

quarter. talk flow in the $XXX you here first that the the right, I'm could this on hoping was million all I about statement. to made acquisitions I'm looking you seeing at cash

that the if or production And maybe of Just payment as have any added kind of might there. give an deal well? that out of on deals that been just Advanced as separate color all $XXX was don't part around you Could curious, a million. I like there was was that that some result know maybe advanced us

Leo, that's compliment you being a astute. so and question, good I on

So That was purchase pick in related be $XX up the might to way closing. advance. on the in that astute million some that advanced of deposit to a

other So our is want where Brian, for buy usual and to to van and we that? was here million more want do acreage here. $XX you acreage add you the or -- color there trade

It's just behind $XX that Yes, XX deals. approach bit about million. detail we've always brick-by-brick It's little a of done. that different our

it or again, of kind of all just XX of across was deals so acreage. And more our that, so

helpful the of I'll definitely here, that's quarter. No, the strong. beat certainly obviously, you production for looks just Okay. year at say, And very sure. guess significantly first looking first then I Obviously, half

of in guiding maybe surprised but a of by light first You're roughly just given the guiding certainly half, production. that just of some up guide ago. quarter around it sounds up just conservatism advance on kind the the not a X% production, full quarter X And bit was on year see you related. that weeks maybe production, up little more like little you're provide that's strong part just color to second Advance that Can closed second

great. So any would color be on that

Yes.

we exceed you... sure XXX% The conservative would I we lot want just very is deliver it of and say. will think out a be what it trying good Brian, put we we be there, can what but cautious. chance to to

thought advanced, is were wells Yes. that No, always Joe. had Advance. couple to addition, early relates mid-second doing I think I think do. we of than It we And forecasted. of probably quarter, the closing to a of And better you the said part to right, certainly for quarter than closed advanced it that's Leo, we going weeks of earlier they both kind as had in it second then

second the And in so helps quarter. that

just second And anticipated produce they that well. to also wells job I'd is we the kind of to in continue and operations first as quarter quarter, the of online contributed say a the better In great doing the addition, have but wells X team were than first additional the those at the would. turned end we right quarter, that increase

the we're we forecast, to couple of but early a about really our innings of year, about of guidance, we opportunity looking. the out. we're high quarter -- the quarter with set. of early as about as is And we're points which look how kind at only had the said, it. full end at second for so it turned excited still excited kind weeks, the and We've the first Advance. it it's And And look the excited numbers run Joe how

a I we were it's where really be. think that that's year. great Overall, roughly last increase a to of XX% place off a

And in about this it. excited so for we're great be to year, a place that's and increase

from comes Our of next question Chandra Benchmark. Subash

is energy well. any costs the on sort I a get follow-up, U-shaped there? around And Would thoughts Another ever higher the and the have of simulation that application? broader all frac so to guess, just it curve on.

if an to mean, you guess the stimulation really asking increased of ourselves up and answer the cost I Just that is nicely. you're completion, kind question. technical no. really specifications I there's thank we to the of for the set

stick coiled If back X X pipe years drill outs. drill-outs transition made from you ago, to really look to tubing we a

snubbing really, of purpose on drill-out lot for risk it's fit that the a the exclusively side. sees starting units eliminates snubbing really years X not but standalone units these using Matador so about started ago, that XXX% And

the really so pumps if the wells of side, making if going And on the completion from actually hole a out. on surface. way care a But lot straight you the carries the they're pumps itself, do don't clean U-turn these that down stimulation how side they're or with

dual-fuel there's stimulation will really utilize well. simultaneous wells that fracturing increased operations too so planning these And to much frac way or as be really not cost. these And any wells we're fleets, the looking on

the a a not straight U-turn And versus well, well speak. so I many side, to there's versus so differences technical think too completion from

you And well. out works could it if roll would it it really broader -- application would a have

XX-mile X-mile forward? we've be that wells, approximately to is something horse could Yes, converted feel approximately X we wells identified path good like is a this that if

probably back other public in had Subash, and thing one other that, in you in not I to basin And were these been that been look operators this. by data, add more basin. drilled peers XX by wells do the first We permitted the to But wells on U-Turn before. would have if U-Turn the

the this so And this. traction industry and gain to I think starting is see with

think cased. and them still are and excited I have wells these them And proud looking Matador, drilled we're we with industry just are of to having But to we the them but at completed do where so getting online. where well, we're bring We not about as work and get wells successfully is this cased. these

the with I Yes. exposure guess, there risk? managing follow-up, thoughts the Waha on any is And you're how advance. Any updated all? bottlenecks at Or that

we've Channel, as diverse pretty gas Krug, This far comfortable exposure that Midstream Marketing going Ship We and as as we've far capability a SoCal. is to of EVP pretty of Waha, portfolio our to Gregg got feel Houston as got Strategy.

the that. feel have of to hub. we confident a plenty basin least out liquid And So capacity of far as as we at pretty about getting

that not the pinch some we're maybe So are. others feeling

from JPMorgan. comes question next of Parham Zach Our

on And have lower mentioned providers items have line move give your larger bigger rigs smaller You conversations are the that maybe you going really on you ticket those components items how started for started with cost to like to completion contracted lower XQ. color any the year? like only But see the earlier on some on moving diesel service call and forward? some of services the you rest us in

we've whether the Universal the our Patterson conversations you relationships to you Pumping that we're these optionality look with on to XX the But those look constantly or drilling back kind it's to in go we depending Pressure of relationships. And always want far years side, on having really XX providers. these to built on back, how side, stimulation spoken service vendor And have Halliburton back.

said change oil of such I can we you somewhat are optimistic our as optimistic. Like those the are that of with in the actually I price have call, costs constantly maybe and maybe so and these are side, in But side. of speak the that and vendors rise kind come near-term can XXXX. of some Billy a pressure working you really have on drilling drilling can to costs starting services, charges And do horsepower haven't things But maybe But plateau. that change these saw relatively rate in plateaued down things we're completion to quickly. seen speak we on but have earlier once the pumping demand, again, none yet, we indicators on change these

and we're just drilling you things rigs, as the also mentioned, back I'll we right future year. there see get what far up on of roll it like think the Chris kind seeing that down. come into in still the further seems over expecting like here plateaued things mean may saying I are And now, prices in We've come has as some where they And diesel on looking there down. side we now, we as out them that is there. we're are out further seen

the affecting in bit. truck little that's a So there

early starting So to we're that up see these the just so that future, coming in things. we're hoping here see just to

$X of really We've So things yet, talking big X we're eliminating Those wells been are X million further wells. as alone steel forward those it we versus that's savings thing wells. U out. but move the was there. because horse about we're savings. those casing XX,XXX big with realizing not feet a price, those drilling And with turn wells looking to That the

and planning, this execution, us type doing we're through better really better helping we us things on the down road. costs to cut better efficiency, see out helping these down just it's horse So efficiency,

in guess cash curious after on mentioned total clarification. deposit see I adjustments, cash was XQ the could color the flow the on for price the that statement. $XX million Advance outflow XQ, what just one purchase any give I Can you we you paid us but just know

Zach. to Brian, after for was adjustments is that really This close did. I the We really the Thanks were question. billion. mean made, $X.X Yes. the it

have in that. deposits part $XX million we was course, Of that of the

So time. perspective. right $X.X billion next above you'll from cash see a that

themselves really after component the in they that that's work on time million continue to we at the a those. $X.X There's the look But we think was deposit. I period kind $XX where the minus So out. closing billion of purchase price equalize cash really the adjustments, was

The our transaction the The to strong to and give other up. minor the up between But other close come we from point size out for or may but that added eligible the point, that have change safety Zach, $XXX we sheet issuance in oil picking us we quantify, on out potential for is our dramatic to that the prices commodity had you optionality our make on under easy money on picking makes larger balance the cash safety's for went million net credit the other some to have additional ahead a business bond come certainly gas that have deal. a this and And and a up availability up hand sure to opportunities to calamity maintain and aren't sake, and upgrade. value. that I'd just acreage it

say and such we yet So how were pleased were had we we felt out we we but about been wanted the -- was asked went haven't million. I response, $XXX that to bonds, with a we a again strong there --

over billion. orders had in for We $X

improved got of it blue all million, and to that. $XXX So felt we quality out bondholders the good AAA chip, terms we upsized

good with one up online. to that we're pleased on It's picked to be it's completion a the that in comfortably We we us. very their fashion and basically effect this a in for of has put we'll those July, need numbers finer help delivering gone, dramatic our we picked XXXX had years picking that. for like of quality clear value But that at we'll everything rare feel to We for set we the enough number now We that wells So and shareholders. year. guys -- shape on for finish X that the production. also put those has we are field a it's look acquisitions can you. know that think and in have up people, waiting to our more a we're just And point almost up come way good

of Tim Rezvan comes from question next Our Capital Markets. KeyBanc

year. in balance seen missed oil you've in sheet deal of this on crude. that I the would where but We've debt have oil the I been I amount something was But a some surprised, strengthen for windows have sort release, thought the of hedges incremental the there seen have little maybe tremendous volatility in would place. had a with we

of to your balance curious thought sheet that of kind just you as on the protect So look forward. going sort

all we've let the Well, production oil finish hedged thought at look likely We up Tim, strength this opportunity. than an as hedged to But finish necessary. in go wasn't are hedging past. down, XXXX, the up, we and and that Gregg of any as let but and I'll off start and more I've just solve sheet just to Brian prices We -- thoughts? that way back had up. Gregg, we balance opportunistic. it

as far dated than constantly we market. backward of balance Joe looking I Yes. if what We we're still for actually the we for look look as it it's look you XX, mean, XX%. -- are less I at hit at right is it the that. mean, opportunities. And in at

the something do I we we just combination So to we mean, pull the haven't haven't opportunity try just to see an trigger. do to yet But right seen definitely there. something, do we'll --

lot because in Okay. a back us are longer progress the I of just understand circle to at That's about fair enough. then And term. I this if could XXXX look ramp wells trying comments the the how of think could end to

this year more efficiently. started You

expected. X.X% net turn in was it think I more than line

growth? this than in of to progress? okay more are the year XXXX with you that operate on with continue completions Or fewer exiting capital wells sort a you and be is efficiently, going planned program If to governor

we look those we the are about as think in progress, excited I wells. at wells

think we're might of really wells will those I we at time are into wells kind this some be lot think be that going I number that those advance. into think to that that, right end that from in We of this we might at XXXX. do really do. it But CapEx as there on in these a I the will be don't a we year. drilling think now opportunity completing year. extra of And perspective, be some the completions XX resulted

there's necessarily governor don't I CapEx. look a with we So think at

what's the do develop to and want right we correctly. think properties I

we anything want to So themselves. the we by do do on I hard But don't think you governor have it. add? have thing to right Tom, some the properties

golf play the emphasize, to days. our lot unfold. we've of plans, and year-end, always is how a going in we'll and just it optionality We to before see early was to surprised got I things get we

the net in call, came quarter. that the additional gone online As They've those was on in first the late very mentioned quarter. earlier in TILs

I operations team the barely pulled bit in finishing think as those a job into first the little a projects just and sooner those of just And did so wells positional just quarter. kind nice

year-end I at XXXX year. agree early Brian's necessarily So our directly a the with into comments, to count it in change translate doesn't this least in

reasonably could the probably the One somewhat you top other rather out benefit in much be reversal is a have just and have on quickly but you that prices. hedging okay, is the make so higher comment I the room the money price, the that is floor upside ceiling, limited if than receiving don't paying you of oil

ground So that's and you somewhat currently price oil is. less higher the middle prices that hedge. can are it little above a where -- it's we think the We think is

think on around. losing benefit -- the not be that prices of our getting would how having undertaking risk they or we turn money should much So to too we'd on outset

our And Lambujon question Jeoffrey from comes of next TPH.

are you there? and see good the over still see more closed as more But for cash the approach opportunities and know spending today it in the highlight also upstream you add Is I measured the term? the there the I in other one terms weighted assessing all the of or should deal for referenced flow as I you speak where of in think returns opportunities pretty out could just being options near if of to all are given brick-by-brick a we how advance release bigger acquisitions, hoping think for ago, will spoke opportunity about that which have in midstream strength we you dividends terms be bolt-ons and in just I the terms of well. but of was bit just allocation. one little in And a to time on QX. and you both questions potential a appreciate growth. commentary gave free on on out you that you to of couple what you liquidity that

This is Brian.

more the balance up, come a of think interested what to going see they to been eye as on mainly always I sheet. We've in our but opportunities keep is good you're same.

opportunity And we're pops going so right consideration. if it the up, give to due

brick-by-brick another on we'll as other And midstream at the other going make balance risk years. forward be you'll out have side of but see come up, look as think I to in just them, may opportunities and our good not going an the a approach many take opportunities more to for you that effort deal. sheet there we're

And I who and the deals to really gives a be by A+ us position eyes We've get position take win-win right and opportunistic a many will to years. now. that make we're locations the in of do open on got great being think I for runway carry And and think us keep a we'll opportunity good it shareholders. just need at may time. in right to just that with sellers our conservative thing for to approach out try the

interest of make a risk. points We I'd less Vans, properties whole already with with couple Just there's a because a but in you lot That's completely have. adjoining properties couple or break-by-brick of points. like agree generally

how a the completed their exploratory bunch tend you're that risk whole or of new were taking don't not how properties you to know you of they is, on know exactly acreage So it.

lot but that. a they risk. So They're like less smaller, we generally carry always whole

profitable it. that again, good we we we're second to emphasize. growth, try feel it's If avoid is, about what to The can't going

to too and And mesh money you that take to something than have where good just but some they're offer looking -- make well And that offered your and work. time we'll look sometimes, expensive. profitable you to be you properties, the ones just for it got more

we play Permian the open convert each public offer, we'll seriously. amount again, trade, trading have someone serious and to and to X in at do industry and on a We -- a we're game. properties company. trades X of and straight Delaware, fair there a people we're -- look into So And we're a the it laterals side, And if makes out other proposed the been miles. us other and with the cooperate mile

because to Vans we that make of the that's deals referring are way win-win happy too, those that, and like like we both to sides come deals. the that out So

And follow-up, production to then the a that time. performance timing factors squeeze in and highlighted thinking you about besides a contributed just turn-in-line less sudden the QX's some of

mentioned Stateline. also you'll outperformance at think I

talk this the are QX there, expectations year early drivers towards into here? If on that of if from little wells repeatability and program a any your relative some bottom performance about you end to could across line there QX the bit the of indications

Jeff, this Elsener, is Tom EVP Reservoir Engineering.

long we're far. think see the well and very something making I certainly for obviously, attention always I And very encouraged that is very team's that important we've other think by properties get we sure time. come detail are think what to a us been so know asset those seen advanced of a improve a Stateline, And to I to maintained wells us flow our has bit. I better, the and to there's properties explore we'll may as think in that quite as be to think assurance on those going the further different parts those out portfolio. I up some opportunities helps

think but days. it's I our So I chances, early quite like still

question Partners. last Our comes MacCurdy Pickering Kevin Energy of from

your comments hoping was I on some of on a for clarification the little release.

correct? high for of you're to that of clarify, And and is mentioned end change there's you production oil to be when CapEx, at just going to the no that midpoint the the range, Specifically, equivalent? both

This No Brian, you're that. right happy take on change CapEx And to now. I'm correct. and is Yes.

some we think some of the forward in the but end had of quarter, I think earlier, do as maybe the savings think the year. pull we first I at we maybe mentioned that we'll completion dollars

has CapEx So largely the same.

the think, the the BOE and the as course, increase is end, going the on it as think total to to well. BOE on we point But at end, a oil end really high that Looking we're for that high means production. I was that point gas high basis we I of basis did on the really

And year excited the start and and to that able had. the to point about we've so we're great end that the to be high

end the we're better the the paid point already $XX to we've our conference expected. date that down Brian just that million of a just to out have on this is than RBL been and little revenues I as nearing take

off that but that and the to wanted specific do talk, I you since little think paid possible. some on we'll paydown wasn't continue down so. And So advance just that projects already have we XXXX we RBL paid that a slide put had made the a empty gave the our that we've acquisition to which

that's head years down, we as passed, and planning as the did before we'd direction a in we going we're to as So in that again the into this down pay get stronger think own stronger RBL healthy like property to organic our we're experiencing we potential logical and fits acquisitions to the and that some financial benefiting that combine position from base. growth because with are

all So that what started that pay the when and we did see BLM a we enjoying down to program we've started paying should online reason off you properties excited be few years as flow. RBL we cash have that ago brought beginning the already the and to

Yes. And the than quarter. our you certainly for flow your higher guys was cash -- free expectations

the of wells. any U-shape? with the expecting follow-up productivity in in that. lateral? normal there question was on job guys foot those to line as My X-mile in the changes great you wells per on Horseshoe a Are a be productivity kind So factor Are of you

wells a are drilling X that today. that So whole would as of we're -- then we're that there's well. turn in you these radius Texas, few where there you a is within the producing X-mile and kind BO per wells. same we're off as kind basing are a South mile the XX-mile There's short Permian would a of the -- of foot answer not a lot of in we're expecting of

on to confident completed, similar these per feel technical for do just projections, in, we very foot again, our wells get so a the basis. performance see. wait we'll and from But And a and it's aspect

so let's and going going isn't dozen. where experience is conclude very points, -- but And are a have it's to But think a far, deal it. we're with don't others Horseshoe that cautiously. them Now out lining data we're on doing This encouraging I good. we up come the enough is

they good not had preparation, I'm think, and this experience, bring such about, preparation that Chris, trying of and team, took among I the [ could really did Tyler the proud the team, the our and staff have Tom of to example Travis an real our supervised but I Some that together to by a is all really and and good team just we're working job take think create a on depth ]. the Glenn and

our the year-end they group to sure put -- numbers out shout to between be accounting I also, to they numbers, really to were responded. So thanks. And advanced test recorder want numbers, and

just So gratifying the thanks And CEO to our the and through. our X just has Billy, met teams coming very group and challenge. as where this quarter accounting financial to and whole presidents, team, the and for the me been responded Van

July for newspaper on and of on my to is you, eager have eager second deal going Gary friends some Amarillo X. to the in Advanced recognized and newspaper hometown back We've quarter, in of fact, close the town paper the I'm we're on a to from -- the keep hometown more get page. and we're side long in our to news I'll other So this using deal for you you this. been front Amarillo, Peterson, on yesterday's Amarillo, Maybe

to my surprised more I've the all And And page but it. you an worked one front -- it -- I in that New interest than a Mexico. so life bill take on in and would did was and finally no was Amarillo

participation today. your today's for you program. thank gentlemen, concludes and Ladies This