Ovintiv (OVV) 28 Feb 222022 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Ovintiv's 2022 Fourth Quarter and Year-End Results Conference Call. [Operator Instructions] Please be advised that this conference call may not be recorded or rebroadcast without the expressed consent of Ovintiv.

I would now like to turn the conference call over to Jason Verhaest from Investor Relations. Please go ahead, Mr. Verhaest.

website everyone, This fourth and regarding call are filed on and welcome, 'XX and the SEDAR forward-looking and take on in available call. Please the beginning conference is our slides statements Michelle, at to the of quarter our year-end slides note the Thanks, of ovintiv.com. their advisory and at EDGAR. being documents webcast, disclosure

question your and be we'll to your time available to limit X follow-up. Following prepared remarks, X questions. take Please

I to Brendan will call President our over now turn the and CEO, McCracken.

you a Thank Ovintiv. morning. for year Good joining us. as milestone XXXX for

Our $X team underpinned long-term a free to our through billion was efficiency. and by of earnings $X.X billion. cash flow capital generated our and buybacks, our shareholders net billion reduced achievement dividend and record we billion. base debt our nearly This share $X.X returned $X.X by leading of We

with premium Permian, additions of our wells Midland, expanded addition that of approximately Counties. the Upton also acreage and the drilled than and mostly we year. new XXX positions last were additions more the our Howard twice offsets future in We we mean inventory that existing number Martin, These locations. in runway These return added the

efficiencies, Our offset team which year-over-year successfully delivered significant XX% capital to acted inflationary pressures.

and The developed. total per day. results maximizing we BOEs the while these ever drilled before returns continued well consistent every production and of completed acre annual than team wells faster XXX,XXX efforts approach value Our deliver our cube of to development combination from delivered and

on our capital While of guidance billion. line holding $X.X the

Gender recently We included elsewhere gains significant Equality We also made business. our were in Bloomberg Index. the in

our intensity we emissions our significant made way reduced We've towards to goal on our XX%, are and of In a meeting reduction. than now more XX% addition, GHG reduction by target. well we progress emissions

for social and returns and our extended emissions and our strategy in deliver efficiency our record-breaking in working our our short, team for strong XXXX, and demonstrate year, leading value results inventory continued I'm to continue execution a our beyond. our returns runway future durable direct These and had We shareholders, shareholders delivered increased strength, increased that profitability, our and bolstered our shareholders. is we XXXX translating is to In tremendous confident financial capital performance. into will

quarter fourth great adjusted year Our billion, earnings modestly with estimates. EBITDA $X.X free per meant $X.XX, of we consensus of cash flow million, $XXX performance $XXX ended of with the ahead of flow and of momentum, cash share million net

BOEs reliably weatherization North top across and Oklahoma volumes Kudos day. Our kept us our field despite flowing fourth guidance weather to This to was made performance gas on safely drove Dakota, and XXX,XXX per quarter Strong at NGL. well production interruption. by extreme portfolio where experienced in team, minimal the efforts winter came end Western our of our across Canada. and staff the our with oil,

generated cash returns in delivered come efficient on the a approximately $XXX first to believe and disciplined return to cash the conversion deep creation all in flow their shareholders of base value the QX. and durability return capital result check return And from through can also long-term requires capital locations, generating We of in flow. allocation the drilling that We will of companies X invested shareholders, boxes. of strong highly share space we resource demonstrate cash We inventory this to quarter durable both premium will in a our and increase dividends. $XXX million as million free to E&P that buybacks

Our capital underpinned multi-basin efficiency by is portfolio. our multiproduct

and learnings balanced commodity Our and operational premium provides uniquely depth. portfolio cross-basin diversification, inventory

of us, competitive maximize natural Montney this behind again North to making and permitting response slowdown, in is to fundamentals. short-term is the to in returns weaker corporate American use advantage. capital which did response a shift now XXXX option in We in gas this we to ability are Our XXXX

component returns. another access is premium to generating resource durable to business, our In essential

We as are to through as continuously opportunities evaluating efforts well and extend bolt-ons. through appraisal our both runway organic assessment

the across our Martin, inventory and we and was transactions, Howard. net of organic XXX acres the course made core X,XXX to the year, about program biggest appraisal significant our Upton The we our cost where and than of effectively additions positions to Over we Through in added Midland, locations. asset inventory premium added this base. in approximately more XX Permian focus

committed at and and we only mid-cycle biggest We're strong full next All the additions our return in pricing. we transacting condensate told, last cycle staying of were Montney. replaced oil drilled in in disciplined when can opportunistic The number locations wells we to year. the efforts, Xx bolt-on generate

ads SEC more the in Our inventory year us late and inventory adds because of of premium efforts help our that make extend the the business proved both and not result the incremental booking worth renewal the portfolio. across these runway It's in timing sustainable did our rules. reserves, noting inventory

waterflood that worth also out our after Uinta flat sale It's accounting our high-cost oil reserves the of Basin U.S. in mature the the in were for year-over-year pointing third quarter.

call the to XXXX Corey over discuss to our outlook. turn now I'll

Brendan. Thanks,

a balance capital the plan significant XXXX free our later in But load program, year-over-year. details sheet which call. and at of level, we speak we've Greg continued optimized while shareholder high will capital efficiency volumes execute maximize maintain more to Our leveled to provides keeping resilient, strong the the intend cash strength. flow, production returns flat a to plan generate

capital year. us in volumes optionality multiproduct With our of course and covered of XX% over and to for tailwind have XXX% investment position $XXX per gas. price greatly $X the of portfolio is to to barrel a We natural MMBtu our always, gas upside benchmark last economic contracts, compared for are allows the in oil our and XXXX commodity year. shift WTI a multi-basin our by participate hedge oil our of NYMEX If factors us areas. to parts dictate This ridge portfolio. and huge for and other condensate reduced up we oil leveraging as to focusing the But

$XXX We first quarter underway well program are on today buyback our million. of

million quarter approximately and to in shareholders share base across $XXX return we Collectively, repurchases. first the our dividend will

of Our cash peers return across first yield is economy. today's approximately in market XX% the and industry both very quarter competitive broader

a returns We and from our program we've We delivering implementing capital the than shareholders. efficient remain Since and we momentum $X.X XXXX, this to allocation beyond more removing to continue substantial of shareholders. legacy returned our committed in the development framework continuing billion in to fall business. as costs delivering highly XXXX see

billion, year-end at our We result, and a also was by long-term reduced leverage as $X.X debt X.Xx.

our taxable as we see alternative prices. be expect cash at in the starting As current expected, subject we being business continue XXXX, to to to corporate tax U.S. minimum

to is initially ended It on year tax Our cash with included pools relates expected. our of year based the a to attract consume our NOLs this Canadian performance tax cash guidance We $XXX there. stronger-than-expected tax in million than XXXX in business. likely more that

would million actual of XXXX payable WTI tax a $XXX than rather Assuming price This cash in in $XX will tax million price, cash will Canada. and see working capital a XXXX. early cash until used gas be $XXX be NYMEX and to we $X not

plan over and I'll our talk Greg about to now the to call XXXX highlights. provide turn some operational more

convert in last as generate strategically to for our for development our Ovintiv efficiency Thanks, teams year and Corey. positioned we our for durable implemented cash work success program has inventory efficiently we flow shareholders. Capital primary remains XXXX. The into returns focus a

noncore XXXX some production is XXX,XXX evenly assets XXXX per split selling liquids of versus despite last gas. annual This BOE program profile delivers Our and XX-rig total flat day, year. volumes natural between production

we As chosen Anadarko given the as in natural capital have weak year, gas the to to for this of allocate our Corey Basin. the condensate mentioned, parts oil our NGL portfolio lower the prices rich evidenced by activity outlook is and

by expected, we the be a about This the production to profile BOE day. quarter for is our first As couple XXX,XXX factors. of point per low year, set at is driven

outlined third built we call, quarter drill in our as inventory well and First, fourth or we but in uncompleted quarter. DUC the intentionally a

a spot half our these online limiting are approach XXXX. to first crews usage and bringing taking wells of through methodical the We of

January at of normalized online rest of year XXXX. the quarter. activity end back the end production the fourth were ramped in last the February we levels Second, weighted were of This and affected the towards that wells with front to brought as

also of guide events. weather the QX known Our includes impact

load variation year in continues in less thoughtful We approach development our for topical. our us production turn-in-line we be to forward. see well the been have the performance increasingly programs. Permian profile a to level cadence up half ratable And in of going and to setting in expect XXXX, more second

So I'd and play. X extensively. with the our We've We've we've cube maximizes We moment and have to over active Permian footprint like to been what and the years industry acreage drilled returns. we've basin seeing into play, the entered discuss numerous recovery trades for delineate been in in the to take development, across the studied data entire to led which both our peers. a

Our of spacing The in full through approach we recovery customized tight tubes deliver the and dispersion to We development has of stacking been very NPV optimize land approach shows highest development field every and take each to time. chart a resource results. of multi-zone concurrent a right our for consistent acre on develop. the

program, like has all wells. Permian across variance Our programs, development statistical a

in across year. are we distribution. program. cross-basin towards into the average, of In learning offset resource outperformance the through see Heading by XXXX, year expected, of the a always, few consistent our of to working and innovation early the those in performance of delivers culture And performance we had increase seen as we program But end XXXX, to latter actively our on wells performed part But that approach. and as consistent expect the our are the part year recovery out. pads lower

level the acreage. of excited a Moving get of our We're back to very the to in north more to Montney. activity BC part normalized

play between the the the resolution year. Nations, dispute aid] well legal in First are to government a of program optimized positioned the With highly BC we this [treaty the recent and execute

our We XXXX the all of hand have program, XXXX. permits for for permits build we our required to continue of and bank in

will in activity the to that consultation were and the as reminder, our of Ovintiv's agreement. vast on a restrictions of be part the all subject majority As is announced lands freehold new XXXX position therefore, not

industry-leading are to deliver continuing results We the play. in

last top the on product hold optionality. a Montney online in XX the substantial XX has the with position basis. of BOE months, a acreage premier wells Over XX Ovintiv We brought

condensate program more years liquids-rich years a net than is on XX with oil between lines of focus gas XX BC window. and XX acreage more our more will Alberta This inventory year's Our XX in balanced the and in and natural runway turn the largely in window areas. premium to be than our X-rig

costs current XXX%. These than returns more are and wells superior expect strong generate to outstanding. by of on economics level pricing, completion well realizations. great strip drilling we our with price The these results, Even low returns and remain well driven

a As line reminder, gas the of condensate XX% AECO our priced outside more WTI our with than and are in of natural trades volumes market.

and Basin some the Uinta year. in top-tier to Our generating been development results, we continue excited are well play has this

When among our portfolio to within has be plays we look the all North basin, resource it our at top highly be the to America. right both characteristics competitive, in in and the shale

contiguous X,XXX of about with Our It collective development. base primed large translates intervals This land for net has cube XXX,XXX a runway. acres pay. feet significant is inventory of approximately into multiple horizontal

results going Basin Our toe-to-toe core results. average has Delaware well impressive XX% by recently, Uinta team and peer outpacing about delivered the with

capacity long-term to the Coast. we to the City have of and We refining local recently rail complex, capacity Salt basin Lake additional secured the Gulf takeaway scalable out

Uinta XX% our and price receives impressive result, margins. generates a an As WTI about oil of of average

bring Uinta the the between rigs our match the combined portfolio. margin Uinta plan and some year, a activity wells. our highest operating between total XX% Permian to XX% timing we of share on to currently a in Uinta Bakken. in the about for of the XX expect we XX to XXXX, Bakken X In high flexibility We've at net to assets. reserved and the around moves rig in the the execute But level, the of This

be from Bakken We our continue play. very pleased results the with to

days. our outperformed an million produced XX-well outstanding recent vastly expectations oil X of in just [Cramer barrels pad] XXX Our and

to a our running kept did and the extreme bringing months X also in team great development pad successfully last few separate on job Bakken minimal downtime Our weather responding over projects. while with operations

strong XXX XX% outlook well play see We recent our development through initial to also projected to our the with in Kramer outperform days. by results continue

mentioned, have a of we resumption levels less year. the taking the chosen in a normalized this our the by I and with With to Uinta. approach allocate capital Bakken as activity Montney, to frac activity the BC crew are in sharing But we rigs flexible

production with great provides and and Anadarko stable provide asset At access market realizations. roughly associated strong ample X/X NGLs, natural price product our gas base optionality and

and free chosen we've earlier, the on mentioned XXXX. in flow given As activity NGLs outlook asset and weaker operational in play gas optimizing efficiencies, our cash for and to level focus the reduce

actions team said, Anadarko I'm by time. the the cycle taken That proud incredibly of to reduce

During XX% XX%, the fourth shallowing They've time also done cycle further reduction out of yet at our great to achieved XX base compared play we days, the a bolstering in generation the best quarter, capabilities about decline our rate in cash job to average. asset. XXXX the the a

call I will now back turn to the over Brendan.

shareholders. Greg. well in delivering energy while secure positioned We great take we're safe, with global And We're superior and the needs delivering reliable for the volatility. also balanced Thanks, long-term portfolio, results, positioned returns well our outstanding our market. and for pride we affordable, today's are of producing to energy

always, the focused to enhance free maintaining drilling sheet disciplined continuing our return to focus returns shareholders to balance we'll strong efficiency, executing work to maximizing enhance XXXX, flow In on a generating capital Safe following significant key inventory. program priorities. premium development our cash continue and on

on responsible focus execution, our Our capital prepared efficiency on This leading our disciplined business have thrive ahead. remarks. to capital road concludes operations the and positioned allocation,

we're now questions. take operator, Now to pleased

question Truist at from Instructions] Securities. Dingmann [Operator Neal first will Your come

is be just just to cause return? take what to either that your things not change and wondering to it you wondering, it capital I'm Corey, you cause decide even how could shareholder's that stable. for ramp payout to the just maybe there further? to how is I'm Brendan, seems I'm or like seems plan wondering that ramp would that stable very

that third XXXX. returns Yes, Neil. the resulting with question. allocation shareholder We've plan it capital and quarter appreciate launched the very consistent all the been we the back I since of in way

really followed of our we've so And playbook there. kind

to still you And with is back capital level on for allocation clear mid-cycle million that If the range. that we've $XXX kind the up floats dividend. been be a with we our going to notional the of that remember, which that continue XX% base to pretty want of headroom investors year, price foundation We've to dividend some around got see base of we $XXX EBITDA model million to really set our that to time.

that's with been we've then is cash the and which so first place pointing place And and be And probably maybe does paying of of back really, that flow the free the both flow second start XX% march debt to, percentage the you're that is I'd to up time? one free there is reducing plan cash that shareholders. following to

the in something looking what's that's today, so see to the mode right going the the always we're it's shareholders. the drive for be and at thing we're of equity to And but valuation

So yes, it there. I'll leave maybe

I'm at for versus you? out maybe said. plays Greg. inflation market well there for than X today How Anadarko. different I'm in the And that's you're then No, X out versus just seeing inflation when is versus your firm how last different different just looking when wondering Uinta

Neal. question, the for Thanks

saw the in throughout a we bit so year XXXX. quite And inflation of

-- fourth first like seeing into quarter, and feels As is ended year the we're started the subsided, sorry, change of quarter the and it rate leveling a really off. we

us that different how as plays. far our affects As across

are as We less inflation to seeing compared U.S. in the Canada

so one there, I of reasons remarks. in And we the that's we're why really -- my the noted play prepared like as

Pardy at Your from Greg next RBC Capital question Markets. comes

to want the the come on report -- Brendan, voice little side. reserve bit, a just sorry, back I I'm my here. to catching wanted to oil

there one frame just they bit more significant those? where any pretty that were plan? So concentrated you -- little forth could that did so around saw. we and revisions they I'm a Is in wondering

I No, Greg. appreciate Yes, it.

categories. chime is for to you went oil year-over-year produce revisions we of reserves that of the into the a I'll and after moving But categories together, the to really adjust you barrels sale by year-over-year, discoveries too. extensions off proved at you couple approved year-over-year take flat sale. you there's the adjusting you And get X on and year, improved it's And start and for up get through to to, reserves, recoveries that and then after total place XX to the that's actually the here, flat you first the our look talk go and of production parts then to you net waterflood. are how if the U.S. So those and X the want million that, to in Corey

maybe, So about to you why works bit how X there want Corey, talk net a just together? the little categories process and those

here. Corey Greg,

when sure familiar, how plan, our of by I'm details and development but stick. the changed on you do you're have Just that actually to we it works,

drill as you in that's comes then longer in, a if that in to you a it, original put extension. year, an the no plan revision. when out stick that have So different plan and And you rebook comes a stick as last

same plus So X other. exactly have the leave a your net-net, X could category plan the X in development minus you a and and in

a really do it separately. to you to So at have net look even have them though record you basis, on

and and or want helpful. just over so, shift given hedging with drop. much market pricing you X not and of really ways, when gas the look effectiveness aren't of protection on ways perspective X think a it's about kind But much, go-forward natural we wondering really the And what's ways at the I'm the of much how your really what giving the X question, you X is That's last then I there if basis. around gears sort the months range so is Okay. to happened a down. it's

Greg. approach into. This new we're to Thanks, Yes. that now the is really hedging related

And downside provide NYMEX neutral bottom XX-month cash we after the to protect be for free like against. able and of business that got now book talked period on we you period. a base base essentially dividend something And to the free about protection approach. to our to principles that flow cash on is so like reflects being us And period after that cycle positive the for at the the flow we're prolonged a be to remember kind want even and And what of to oil if notionally be designed have time. were So that that's protect book that positive we've $X and drive of approach going a $XX new to of through we'd dividend. that really the

market to view. to was as reason risk put we it's for to we a on in those And X ways put So a spread not chose the that of vehicle wide designed necessarily It's really more management that the able capture were because piece. ways. XXXX X get

severe And which of ways. but so there table, market, to that we event why is chose the the is there for not the X that upside sort bottom protection off really level of the of necessarily take

we that now forward we'll I in look for again think amongst adapt today. that we're on put into to conditions as the different structures, price are the place the to the about swaps risk XXXX. puts and or XXXX, collars market that's or whether And choose management board for thinking book fixed

Arun Morgan. comes of question from next Jayaram Your JP

maybe to with start wanted the I Brendan, portfolio renewal.

You $XXX noted sticks of of add to than less capital. the million ability company XXX the to

maybe model, renewal. our And just we've messaging messaging? change about just earmarked get -- that portfolio to thoughts you're able updated CapEx on locations price $X add below of just some annum I able how that in million, $XXX add and in your just those million portfolio premium you of to about So you're stick is a million think per for your -- generally, on to want to number. the Any well to $X overall, those renewals market today, when

out Arun, Yes, the here. I call appreciate

is one plan. look, been -- over deep inventory. generating think a to the as premium durable think XXX little And a a think really returns having clear, year I keys drill 'XX of we we've wells I we our

you've control, our the get we locations be replacing already in the we of organic with do as bolt-on in. very our had to quote them on that that So a And need both be more to the you've numbers. we've following but to also good won't of seen both effort us view. And is success go those here. 'XX acres I seen again think is that combination fronts, on and approach the we strategy we

been the so that seen that's work. accretive we've that place to And do most the

I that following To we're your on going think question forward, go keep strategy. just to the

have that I to over think had we're value-focused said, very happen. we to do numbers we to the make like XX returned and transactions do and

one So the think said these we of the the ratable obviously are for course, we've other because, very be transactions. we not going don't control of with way market is. And familiar thing side is the I that's that XXX, your along to all

iron So even wind over it's that's the to we have in take time, to going that to being level, be number going that relatively should kind opportunistic, of is XXXX. though we're that but about but up it it was to probably approach out not ratable,

where to going So have to with it's look and see time. be ones just going develops one how to how of sellers we're these watch market optimize the their and to portfolio

help to Great. XXXX. really the kind to forward I and taxes wondering XXXX, go you that there'd deck back you cash maintenance it, was I and And a wanted gas quarter price be could think $X call. changed, you In your question. the $X run previous I kind if us year? that, a commentary, $XX you And any you similar of at be taxes my subject terms cash next a that if you call in thoughts of thought of wouldn't second program provided on in where Canadian what tax to follow-up, reconcile cash suggested in Corey,

about number, seeing just Arun, second XXX. from you think if Yes, at that closer were quarter we guess, that point, to it probably I

it to tax. Canadian case it's where the comments, prepared it material. got in missed that's This took is people more emphasize just all you If the $X, all

we there. have probably day price gas X we've a Bcf the so roughly that where the got And full the is total. That's driver biggest out X.X of realized the

that Canadian market any we So into accrued that cost center. benefits have diversification

the in year performance the forecast saw back QX the at the we than better of time we half And call. probably a of so

little faster a consume NOLs just those So Canadian thought. than we bit

$XXX at $XXX million the the for So the that's And cash in really to now step want really qualifying likely we could at then change don't that, bigger $X the -- that be say I U.S. prices. tax to that be going to from tripping that AMT it's these next trigger driver forward, million. for why year threshold billion the but million is this over subject the to $XX year.

next Daoud Cowen. question Gabe Your comes at from

Brendan, on maybe CapEx bit. a we hit could just

another cost in -- about is heading I else Just in curious, year will built But is program of towards being back there down of the year? blowdown in trying the reconcile I more half again that. level the as driving the is DUC in? step is understand there baked deflation DUCs but that's Just anything may half. the first second being occur service there loaded, to Or second half, intentional being half be the CapEx? in think the the

there I deflation appreciate in around it. or Nothing DUC the Gabe. Yes, the build.

those literally which be turn the pretty XX of and the to going just wells off the in top I'm the then can think to but year. I sure line about not one carryover on as So well. it quarter, in is show see DUCs the we of just works out essentially and head, it's my smooth the month-to-month to is monthly slides, it you number here of consuming And half first XX a

huge us was year. greatly that get going and thought benefiting get up leveled for change year-over-year that to important to more is low XXXX, that a wind made it is to really and So just this shift step we

So seeing that's why you're done. that

the give helpful. maybe year? guess, adding curious, Could going or color what goals what's maybe expectations program a you some more even are the That's I think in And more Uinta? follow-up about as the Then around to capital you Greg. just forward? as Just that maybe little of moving for a on us with this

We're for some question, for we're to have for the also as the capacity that the getting But get seeing results working make quarters And fair the to we've been get been barrels and price the in Gabe. there. strong we market we've on few pleased individual Thanks a well ability Uinta. now, we've with sure to said a those really, paid takeaway results them.

And the and and that to of cube use and approach as so other just a forward to of to all that that out development But we've move of strategy be the continuation continuing from that a will plays asset our the we we unit continue learned continue effort to it is an in of this things use evaluate there optimal delineate forward. that participated there. balanced all result going get

So encouraged but a measured approach.

Yes.

just wells us. I that, well horizontal if as Gabe, center to own play think, got I have we added position now the acreage we've And as into is third-party basin. of right over our XXX wells the some around the in the of

the -- margin perspective, took better margin up And and high-cost last that has in is year, part as play which of Greg Permian a confidence from the huge And and in of a returns resource, the out we're more there. to only structure the point. the then our margin which actually a productivity of we the alongside operating adds in play bit Uinta thing mentioned and the the for the the best is all kind it's of the is cost quite enhanced getting asset. in of say remarks, part XXXX, I'd a change it's that cost step critical reason the right as waterflood pretty of So that prepared play. highest other sold

Jefferies. from Byrne comes at question next Your Lloyd

guys and date to the than Permian? look Brendan, mean or little quarter maybe, bit with more talk Greg, better I the type you second. curves a third just can and in about the what's happened the fourth first

does quick what 'XX And follow-up look? have then So question, And to I Gabe's changed I think. how there? a

year-over-year. it stable flip But to I'll here. largely curve Yes, is Greg type

productivity. We that there you're from team Greg, 'XX. about our 'XX on some the excited that in that that can to about is curve. talk got 'XX the real projected high confidence doing to You things see 'XX completions of to drive And you can

Yes.

one entered we've the we It's our first of think the had continue I'd to approach to cubes since co-development Permian. we've I in is develop a play. point that things the

spacing in amount some slide. seeing well and as positive been variation overall play. to results but has results you of the we results showed fourth on the very get So their individual between working sand efficiencies in stage recently as continuing in The stages, we quarter the well in the there drive each we results, and The of really most consistent aggregate, is team around on architecture. you saw move put the there amount really

So would to approach is some point really, maybe the our thing operators, that back changed we've not I time. over unlike other

cube same variability year, completions were translate And in early out, optimize we every the really development came performance with to pad. in the across that our we the into good the continue 'XX. year the asset how in on some encouraged approach later results position, feel We continue will and despite like

little that One thing Greg I'm frac excited highlight bit a what that I'll is mentioned team just real-time with doing monitoring. about is the

but from helping on them. wallet us been a we've a both telemetry live able wells and fracking were both And that's perspective. then the the the So think cost really fly got make more because a we've productivity to perspective, around also lot we adjustments from in in

go So through exciting to we as that's one here. watching keep an 'XX

Okay. Great.

forward? 'XX of how maybe more Uinta an then us just fourth that looks there? just guys going scale have quarter? idea And So structure, acreage is on much in then cost you give the the And like the --

scale. hit cost the just is acreage, but the structure on Greg let I'll Yes.

through So have. several really confidence the now drilling delineate a that we've get been small last and the years program pretty to we

the these talk as And -- seen these program. you the we at that going so basis, And got And costs to pacesetter when the things going between on good Greg, a we've we at down. scale more on Bakken pacesetter with for you look look the to those Uinta, and we're able front that's bring rigs be help can and sure indications to costs to the we that that about real on bit down the and that drive spread acreage. drive load-leveled tend know remember, we've you

Yes.

the in it's development with about position. across acres XX% we side, acreage multiple that's play, net the still horizons and On that And have acreage undeveloped. XXX,XXX

wells we as XXX have we on mentioned, execute go running and in Brendan forward room now but our the there significant have plans. play, left around As horizontal

Your America. comes Abbott Bank at next question of from John

to on and Greg first about now guidance slowdown the quarter. in it's the complete. is lower Understandably, the goes you. oil Our X/X the It's given The first quarter quarter. condensate activity for fourth question, condensate of

condensate Just And us production may current be seen production the could where condensate we for wondering of on -- already update oil oil quarter. at. we if have lows the an and you are and give

Yes. for today. best John, give track The the we're appreciate the we is you guidance guidance question. on we're issuing

So -- what of and was your part question? second the

Yes.

is again, to the it's is day. per guidance So the what -- it's we're barrels XXX,XXX is -- X/X quarter's mean right? trying understand complete, I

had time? an the this see for you And already I mean point so you in we're XQ drove to whether Are moving you've in quarter, for at condensate and outlook upward quarter. this of on trying seen already trajectory lows we've oil or in this that slowdown in production guidance but the at the time? are point not activity for higher already

Yes, think John. that's it, to reasonable a about way

You bet.

All environment? the to mean, right. additions And on cleanup thoughts our is second congratulations potential question your -- I on in portfolio the your is then What inventories. for current

that I think time. fair a done over we've bit of

for portfolio you asset every allocating today, delivering when capital capital, the for at we're look corporation. is competing how and the so and free cash And flow

there at So of way has that lot so. our and enhance for a the done here, the doing to a But can value is we're been been cleanup we always the it look we've that about company of going think shareholders.

Tudor, Your of Holt. Lambujon and question Pickering Jeoffrey from next comes

you were is elaborate on you last the that then more And how year-to-year the improvement looking and improvements year? you be first year XXXX? efficiencies XX% repeatability there outlook most also if incremental view contributed the could to capital embedded this factors there in here? How what spoke on do that those about captured My forward, and then the to just what's one impactful in

Jeff, appreciate it. Yes,

just think being all the I capital it on was faster. backward-looking about efficiencies,

and and for year. as we thing really And think, local wet were So big day sand winners the portfolio goes into of you breakthroughs faster and us the drilling transition was completing embedded take forward-looking more last the frac good and those, faster and I and as order efficiencies all is a of which and on well this keep drilling in is site the in operations, view our completions capital our again to that's technical year finding where short facility those time to. [sim]

year-over-year. for think set in we've a taken just that So it's I terms guidance expectations we how of continuation XXXX. to modest And a our approach

quickly to schedule. we over the fourth 'XX. our just quarter the fill maybe those to efficiencies build the we that important it really We was for in that DUCs on from for felt And real carried

us makes most So we of best, we frac spot pricing to expose just very level use year this the would under have crew but have the that today. schedule equipment efficient which loaded doesn't a contract also

going we only are want. to efficiencies 'XX So improve over what in

And think assets, year, capital a year, program points response across that you with within how given flexibility to spending or flow there? think factors of Some similarities points from how looks plans. the other Maybe flattening in other or perspective the for option for on through? regional length it to view inflation perspective drop on the lateral to outside how there inflation of like the we about could or the just kind within inflation primary just think the maybe driver starting program parts the to is of of and increase how as separately and key prices assets. year-to-year to Permian, pieces activity you pieces moving commodity you about look Permian do pricing about will can the talk the across subsiding the or how But set just be the just about the regional the there capital the Flex [flex] activity might the up across in from contracts consider a of portfolio, add quickly then

little can capital X/X our pricing that here, a in too. for Yes, But pipe. on than higher and a spreads and rigs locked I'll little start. over we're in chime Greg program this It's year.

some -- to gives have deflation to back see the half more the that been you there. of the maybe some a it just first that it's priced. see turn knowing So we year, X through, of feature, although sense flow of you a if would do for probably Greg we through to over things And months kind of how add want anything

Yes.

we us on I be today, program think year. going the the to and currently to execute working throughout all the to those rigs and using of is thing need first out crews for we're the we have point

But important think going compare the have. some out to that that you we most on occur. crews rigs us I the and for be to focus we're the of thing as the in open plays, getting back efficiency if different is does of the most to half movement and year the

that's to to So -- we be we headed, feel basin we'll to pretty able good versus about and capital move where costs X need service in or lower response another. lower of if

question next from Wells comes at Your Roger Read Fargo.

you're that And or impact what I doing or like on coming expansions allocation Canada how ask, something timing Coast, up that? on on have with any to just an the LNG area? West in thoughts might capital like the would the

the question. appreciate Yes. Roger,

the So mid-decade of to progress project to continues that add Bcf of a day an potential half X.X more LNG back to startup. decade to the That's for There's FID a additional the towards takeaway. the in Canadian projects here.

that closely. So we're watching

step be think in portfolio. calls, get LNG price some the of we As prior you've remark logical to in do us exposure diversification heard would the next

essentially at very evaluate nothing here all exposure way price particularly gas AECO something have we set were I monitor we on that that, XXXX. but my we've earlier look our way that's the and is minimal through continue imminent to exposure Remember up it continue and Western comments that definitely the think actively. So to something Canadian is we

combination transport the into into a into Ontario of physical place. our that's basis and we've well as Coast hedges the some and so that as West Midwest in And got

really LNG and and to exposed help fundamentals the portfolio when AECO are begin insulated sort here market. those the of structural turn on NYMEX in through gas enhance we well should of Canada mid-decade the basically So have a projects

us in kind earlier helpful. to back you first the wanted to That's Anadarko of decline company-wide of And decline about a just comments leveling rates year here. rate indicator? I the then out basin come some Can provide

XX% in kind We're Yes. of to total decline. corporate XX% the

Okay.

much not the what than Anadarko. you're in So different seeing

Anadarko The shallowed below out is that.

-- of the is today. it's portfolio the shallower Yes. the Anadarko So

declined yes, in Sorry, out I as you 'XX, meant like what said, you saw flat it's in that.

Sachs. from comes question next Your Umang at Choudhary Goldman

level your of starting I and production it up focus spending like ratable half both on one the on program mean, in that loaded back year. to to a more was on this question program. the be expect was you set first sounds My of

is expect DUCs the what in in half. Can completing the benefit, of color about talked this we which the You a you onetime any like? dollar benefit provide amount should terms of in first XXXX. looks And

what beyond. are Just service here, mindful play of there some and I lot including it of a potentially understand so that are we at costs. means lower things that XXXX for

Yes, Umang, question. the I appreciate

year. year the this of You got about $XX in And low-level the is the half program nailed progressing extra first on to it the the million. DUC capital

first between X So spread quarters. the it's

And the Uinta the in you one Can highlighted inventory for for us on thanks helpful. high-quality much and these the us, you’ve so question really other left Uinta. on in That’s the you. locations, deck? then you which Got remind housekeeping for have our Basin update

of Yes. the relatively there. It’s level because, course, activity kind still modest is of an interesting

the inventory So long. quite to is going be

so can sort now, and the it’s be to right out very now. talk So about there decades -- more in And as right long. results we investors continue data will But to it’s we something of play. that get

the question-and-answer we completed session. time, this have At

remarks. call for the turn closing will I to back Mr. So Verhaest any

joining your thank operator, Thank Ovintiv. Yes. in us everyone, for today continued for and you, support interest and and you,

is now call Our complete.

lines. ask this and for conclude your Ladies morning. does like and your please to conference you thank participating you call gentlemen, all for disconnect this We’d to