Ovintiv (OVV) 28 Feb 242023 Q4 Earnings call transcript

Good day, ladies and gentlemen, and thank you for standing by. Welcome to Ovintiv's 2023 Fourth Quarter and Year-end Results Conference Call.

As a reminder, today's call is being recorded. [Operator Instructions] Please be advised that this conference call may not be recorded or be broadcast 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 EDGAR forward-looking and take on in available call. Please our beginning conference is our slides statements Joanne, at to the of quarter our year-end slides note the Thanks, of ovintiv.com. our advisory and at SEDAR+. being documents webcast, disclosure

X CEO, limit question will we available take your be now time Please the our to X Following over prepared remarks, turn and your to will Brendan follow-up. I to questions. call President McCracken. and

billion. With $X.X or morning. year, billion, earnings durable XXXX converted operational cash approximately returned flow marked success return and into the year flow million this cash of Good full into $X.X the in $X.X our to our another our beat joining We directly net was over investment against with reset of bottom trend billion, aspect We and financial which and billion continued execution you business. Thank generated results quarter of free our strategy. capital $XXX targets our totaling fourth for XX% of line the year of every of us. shareholders. we twice $X.X of course

the return with acquisitions. to We excellent our we our contributing on per areas X continue lateral a and gains assets, drilling to than the our foot of highly a execution premium Permian are capital. In efficiency lead leading of the productivity well of in industry decline completion each invested record-setting, doubled few more set inventory accretive June, in by delivering performance, design innovations, base management

These to multiyear portfolio on organic programs first assets, the integrated and drilling former strategic locations our report X,XXX pleased are of years. We others, have the ENCAP Permian organic boost our greenhouse in in strategy the is reduction the target. from end-to-end progress assessment our inorganic our We disciplined acquisitions, seamlessly full and great gas combined acreage. and and our results and inventory added bolt-on of years to cycle excellent returns huge prosecuted with importance premium identified result X against we this has of renewal business. both additions team the made XX% our very the a before our to The last wells emissions new a and intensity Our out appraisal we durability investment.

XXXX, we baseline. For a achieved XXXX our reduction XX% from

maintaining approximately shares our the increased Over reflects course repurchased and the generating shareholders. our XX%. superior returning returns capital our on This we commitment year, financial to and XX million cash dividend strength, by of base to significant investment

XX% set flow up deliver for are Our free in year-over-year, success set cover us call, to in prices. of the at strong XXXX. details XXXX execution has lower commodity We'll we later continued but in the cash more more

from outperformance Our above portfolio. strong completions significantly day, barrels guidance. per newly Permian assets our faster of our acquired strong and At This oil midpoint X% execution in the results by volumes legacy continued base momentum through our and condensate both production expectations, XXX,XXX coming the exceeded was performance and quarter. well drilling across and driven excellent fourth and

of the low peaked vast drove The Permian turn-in-line us drove in which our our that quarter to acid meaning by October end we've performance, strong lines schedule, oil our allowed on the integration seamless and accelerate -- came well our capital, driven which higher the fourth This came this guide, Our quarter in in with expected of turn-in lower operational majority fourth in at with November. volumes our efficiencies. volumes, achieved along November.

our X%, performance operating the by midpoints total we of below of $XXX our XX% debt came for cost and reduced by T&P further expense margins strengthening Our our sheet. guide balance And well and per unit both in million, finally, respectively.

Our simple. XXXX in is message

free maximizing expect This to and to focus $X.X to maximizing billion invested of XXXX generate cash and cash about our returns flat reduce $XXX we continue commodity will free on than capital returns prices. on We enhance is million flow flow. leverage. XXXX, production further more shareholder assuming our lower with our In and in

Corey XXXX efficiencies. I'll Our XXXX cover is and who to gain efficiency detail. XXXX now plan in the capital over and original more oil turn allocation XX% by condensate reflects the pre-acquisition capital operational our driven This compared disciplined call an guide. to will

morning. Thanks, good and

us a we efficient As entered deliver highly increase up with program Brendan mentioned, free year a the sets in flow. and XXXX, substantial development to which from momentum strong cash

producing currently X the XXXX more exploiting plan and our is year about ago, we are most condensate each our just on and areas oil oil-rich than in of XX% focused We plays. were

supporting of about which million represents cash REX catalysts strong Additional free include $XXX the savings flow expiry commitment, pipeline our year-over-year. in

also We $XXX less about current tax in expect expense year-over-year. million

affect current not will cash but tax of first will the outflow XXXX million. $XXX in our cash pay quarter. will we it reminder, in a free a result about flow, As This

first million QX underway between base dividend our quarter million. Collectively, shareholders of we and share to We $XXX buyback will in on our program currently repurchases. are well return $XXX

of paired hard protected XXXX More X than to gas prices the We our participation protection are mid-$X upside of range. natural well with have at we hedges exceeding as gas have weak gas potentially hedged XX% X/X prices our against about volumes.

inventory For durable efficiency convert for full to a NYMEX from our would flow for $X.XX price generate limited to our flow the assumption into teams, be drop a year consistent primary million. Capital we impact cash shareholders. returns our $XX cash of focus our as about remains efficiently and to $X.XX, our base work

a as reflects investment flexibility optionality the of multiproduct on the if program. focusing resilient factors and dictate plan shift portfolio. our over the capital and year. multi-basin course We're XXX% to our across XXXX always, level-loaded the leveraging have Our condensate we oil economic of capital And

essentially per program, will flat we'll with flow. The directly BOEs XXXX cash production XXXX translate free total million into volumes increased savings $XXX day, about XXX,XXX For volumes of deliver for less capital. annual about

our per XXX,XXX impact BOEs From of of first that City, expected, day, of year the the This a high per Salt condensate. quarter refinery activity about day per set leveled is at maintenance and capital the to the As relatively barrels an and quarter. about oil weather and day perspective, includes point including production planned XXX,XXX will first in be midpoint and about total for Lake low ratable. at turnarounds be X,XXX investment barrels XXXX

per going less about volumes cadence, variation development are Our with expected profile day oil and for more will up in and barrels see consistent per starting turn-in-line setting us quarter a in the forward. Annual condensate second is average XXX,XXX to is production This our barrels program efficiency amount X,XXX capital day credit barrels the XXX,XXX strong day in our for capital exceeding and previous per guidance quarter. every delivered same by to of a production XXXX the about than higher teams.

over program repeatable will highlights. the now I'll Greg, call to is highly to Importantly, XXXX. And speak our operational turn beyond development our who

records, integration performance Thanks, consistent Corey. strong XXXX was the were themes an well team, year. throughout exceptional seamless year Permian asset for and efficiency our

execution the and redefine Our performance across the drilling operational completions continue in in efficient to basin. frontier

has XXXX expectations, performance guide. in exceeding have completions performance that and curve resulted included our been enhanced well in tight Our

are constantly number reduce cube our consistent, and looking days for the improve location. of stayed cycle has on While time development we ways to approach

day. tops quoted our for For Trimulfrac'd our our and per performance average X% XX% of example, at well pumping hours XX%, by XX per XXXX pumped than peers. and an in equipment speed wells for our increased over faster was speed the We average more completion our X,XXX day slurry by about average feet utilization

X% demonstrate industry-leading to drilling which is We continue an to efficiency spud of average XX year-over-year. faster days rig release, with

We doubles per see performance. versus program program, a from with savings no the This rest more completed feet our zipper foot results utilize or this frat, expect in in than essentially Importantly, traditional half of day cost XX% wells it Trimulfrac completions per right and are to approach our meaning year. degradation in well Trimulfrac'd our a the of the line will yields

resource shareholder all more efficiently able and So cash we are flow to does what It mean? to this convert means returns. enhance

across type showing free be a XX the use and Permian to Permian shows wells year. curve. The the legacy compared ENCAP initial productivity the XX% our were million operators. The spacing since used cash strong. acreage our in the on results prior dash Permian ENCAP a acreage we all and on unique the continues of ENCAP approach. XXXX. shows line Ovintiv wells XXXX, And These are to designed start innovative Permian position. from wells very the acreage across the is the the includes flow cubes incremental same online end-to-end generated the acreage, on an As due on during well performance our wells stacking in result, impressive, line to designed and well orange quarter. that The $XXX our brought right results our we all The Across Ovintiv XXXX chart our green our design fully XX line fourth the finally, the uplift

on in continue delivered completion XXXX. XXXX, efforts and on Our to architecture, stellar we well this performance and stage expect design in particularly

the improved guidance the for results per of midpoint major barrels driver of plan. generate well been our acreage and well have to legacy Our our This was type performance position, new XXXX consistent across our acquired and acreage and curve increased year previous XXX,XXX barrels time cycle is versus XXX,XXX our day faster a the guide behind to per the day. oil used

delivered lateral is the in per with production and in the best in is oil actual ever Permian best XXXX the of line Our among we've foot basin. the

second Midland you with In foot well ENCAP ranked to the control the end, wells Basin. versus productivity wells, fact, we combined our legacy peers our in our when end compare XXXX per from

oil X X an to results North into wells. X to spreads on Montney curve be to year bring these expect rigs to net baked X The has year expansion XXXX, of of in throughout the run and XXXX, highly full in the plan largest X.X guide. In plays average to we been XXX We this remaining repeatable with type our XXX America. and frac is to

prices we oil low Supported XX%. resource. play an the the cross-basin D&C in superior averaged the prolific BC team this program by level drill well our gas condensate reflected more continues than remain a we per condensate with Montney highly Alberta, day innovation IRR and wells in productivity, Even barrels XX oil performance both generate in unleashed of outstanding. current Montney wells demonstrate returns the from X,XXX value great of our have realizations. our natural expect on strong the the In on quarter best wells. Since These IPXX driven strip, and and low are productivity, to to more price some and our of third by and our incredible basis. have Our to maximizing XXXX, than economics learnings expertise costs

oil top trades on our line the condensate of And an of WTI, with basins portfolio the In North of gas outside XX% basis. we WTI. reminder, America. realized in our transportation competitive XXXX natural a XXX% for Montney unhedged fixed we of NYMEX As in volumes with AECO, XXXX, realized making our with

natural gas So well returns oil Uinta, X-well to in deliver we turn prices, over play. This despite wells. A in our leading line Amy the X to we to results. that of to net per are acre to report continue yielding pad DSUs weaker Delaware third-party to Basin. robust deliver continuing In XX% noted run EUR XX in X is the XX than developed higher this recent year, a rigs we plan exceptionally

continued continues cost to are competitive our operations. reductions, North progress America. strong well our generating X of Permian similar a with So basins in combined the margin the wells on Uinta in portfolio, cost similar a make performance, top to our This outpacing our with structure,

contiguous translates net than has feet land X,XXX XX% greater about across runway. collective large acres multiple which XXX,XXX into approximately Our of base pay. a inventory of significant It undeveloped, is benches

exposure to our Uinta rail in to we capacity Our scalable line turn wells. rig market plans. diversifies Gulf and In plan average Coast XX to in to development XX future net X the XXXX, supports the

oil. cuts of first The our Our production revenue from XXXX XX%, of has wells. oiliest early oil displayed program more target our strong from most in year wells which performance year production our to of returns to base $X seen effectively about XX% designed these This, less first from the year-over-year XX% cost since well combined with has highly expect acreage the of is base significantly cut million competitive declines program, also per to XXXX. The to enhances with deliver team the than of in the and very half D&C we managed has in reductions the Anadarko than recent we've parts leverage coming XXXX. economics

Our planned now will back X on net XX to the program rig bring to Brendan. X wells. I'll call turn

time beginning XXXX, the since we've for These prove our our component X/X the significant the less our where in the potential and only Permian. to with advancing essential some in represents XX,XXX-foot the In we Greg. XX averaging an convert Basin. position. the are new are is included often zones. this parts premium, We've X,XXX generating to we our total, existing about year, Thanks, is to of location. seeing was and that Permian zones. additions transactions, durable capital total added underwritten to Midland per assets, bolt-on about locations prospective inventory which returns. cost effectively are cube results, Since inventory. continued add resource locations, acquisition which inventory equivalent our Permian assessment we've generally capital promising core This and acquired Access contiguous we about our the are up $X acreage X to through of bucket. This testing premium zones At in appraisal than into could are X case developments of XX% upside million our spend in were development premium with of appraisal to X We're of up in immediately something to competitive invest wells in added currently acreage, in the

at operational disciplined more and a returns bolt-on disciplined We to of than can cycle capital high-quality efficiency, our we generate our positioned we through efforts and full commitment are prepared excellence, and dedication Joanne, only results. staying we're generating our mid-cycle when leading a and in maintaining to XXXX, return and now consistent, premium efficiency outstanding to inventory. I'd deliver we're while This committed for to with focus shareholders drilling remarks. In on to locations opportunistic durable as operator decade questions. strong allocation closing, debt, capital operations. are and line delivering pricing. In our deep significant transacting capital a our these drilling work, team our open safe the balance sheet, responsible focused to maximizing their ready reducing like thank on their bolster margins. for all cash concludes free strong return for continuing flow, to our

Neal Instructions] from from [Operator comes First Truist. Dingmann question

first just you, notable capital Brand, on efficiency. question for the Greg, my is maybe

about is discuss drivers? of driving? this XX% what's is I'm think the from the all you wondering are bulk when these Specifically, And 'XX talked year what repeatable original year-over-year I guide. you all maybe driving just improvement this? how

look, we the those expertise multiyear And where and use team you. our the this thank a Neal, innovation culture Yes, has really through of been effort to drive capital efficiencies.

that's And see the great so I to think XX%.

ENCAP, a If the you we transacted remember, guided we programmed had when or XX%. on to

that So we've even outperformed already.

specifics And so guess for I would more, but over efficiency to for the to that. tell And on gains. we're thank And excited were about it our Greg turn hungry team comment I those that. investors the of I I'll

XXXX just the you fourth performance quarter. Yes. Neal, in And before thank thanks excellent year. especially want and for They your I do had and start, Congratulations, say question. to team I for this quickly, our an to in

think ours. all expectations, exceeded of they I including our

completion as but and wells capital half do to side. is efficiently about doing and the us and we faster it's the last that on the And about mean as both everything complete less the half production efficiencies and drill several trying drilling what's around I and far our and over improvement to you've So expensively. improve improvement driven faster allowing or efficiency -- that, and year-over-year. quarters more seen wells quarter-over-quarter just

and side, trip times. effective about drilling more the On it's BHAs minimizing

lot work really we completion efficiency lateral the foot stage of our focusing the done the try On of side, complete. surface that the And get to out architecture -- we've production our handle stage completion on designs on architecture, of a sorry, we of how the sand. each it's most to on

putting going the sure most we're in to to some are of we be efficient to frac of rates using see working thing we top crews. We're It's and of keep doing. you're at the earlier Trimulfrac that to. real-time these that industry. real-time Some sand stockpile that location to innovations. And frac and recycled year just you our we of think in to to we're on this the market, efficient need of make water can significant rates. came of the ahead little efficiently resulting stacked the operation. the field optimization allows where much and with out all we saw any our X so of able And in handle that's frac what saw tour our And up us we're hard efficient sand a amounts all not that, very to really efficient It's jobs need costs we're stay on anywhere able how very water more of move that

wouldn't them a all it whole. you makes by needle. One And doing these all when without stack you of the move pieces, things big themselves impact. really together, the do But the can't

the able of of So results leading to efficiency stacked Trimulfrac why it's better reason the years' to innovation execute And we're of the are, much other. way small that's the to each just on year-over-year. a and worth what's we able

to to these just around I'll wondering let's wondering, my you're And these shareholders? I'm that. you just where stay this continue -- you just production able would kind second programs. with take trend to second, would and same say, Slide out maybe more Or you all really guess about to the have you follow-on X, in think maybe, to I production just area amount for of is, if in continue Or bring efficiencies, you, on 'XX perm lay have even activity efficiencies, maybe lessen little because your in of you you would that these direction, of the return to would -- wells I'm another would just Greg, you of a like, more Brendan, a and point area? areas? continues that do my more my the is even continue and bit on so in

Yes.

I telling invested And us dynamic we clearly, the more world from think return capital look point that comes macro down any And barrels is a the at today BTUs. value that asking BTUs. the doesn't at on have need to question. we'd the more and question more and really a world for what's is

And so oil focused on that's this all capital our year. is why of targets

maximize whether time, whether over that think share So we're or free I and is flow and business let think a question today, capital in I flow the grow up production and take to running per cash fundamental cash level. around your save really we that maintenance creep question, the in to turn,

market And the for that's BTUs. today, and saying is what so more barrels don't think is really, we asking more

this run XXX you're is in makes to that leave thing the see it with, And in where 'XX last and to rate and that was mode. and and really, you maximize us the think 'XX So flow very that on the this beyond. his as Corey $X.X sense cash free again repeatable comments, maintenance for addressed earlier I'd us billion XXX oil and stay we in seeing condensate, I it

The comes from next question Arun Jayaram JPMorgan. from

of us that expect you're and compare generating pre type you a up a what per of Can in to design? the type in that XXXX productivity your to new But productivity curves. you Brendan, benefits see Permian completion we're written give to and you've around compare completions. if with that your deliver tweaked program Basin. optimization foot XXXX sense We your been the lot analyzed has contrast the going completion did

the shifted reminder XX% as and we've development or consistent results, not stayed benches. a cube upspacing mode in have from And there, Yes. into pre-'XX It's Arun. just over those skipping

is last and inventory those years amount reason benches appraisal as pointed over think, to and that added for with productivity preserved the I with we've important story. foot having inflection we've several as when destroying is future, company and And out, then added the Greg zones which enhanced inventory delivering and as we've distinguishing pointing combine a fact, and been we're assessment per the that's to sacrificing really, well, premium added organically the you that work. of and the leading In our without

helpful. want the to am I going talk That's to about switch gears, little I bit Montney. a

year, just to free in about talk capital. Brendan, general Let's XXXX highlighted? corporate flow relative inventory XX potential the the for to in the billion can A&D maybe guide landscape XX that you program, cash $XXX wells, hear million at the about the -- me, just you've the pardon Montney. love discuss play? depth Would the to $X.X your the deck discuss And of quarter the for

sure, for Yes, Arun. Yes.

an from perspective the look, Montney, blessed. So we're in inventory

that maybe in acreage without that So there, important and the One, X we've continuous the used for position that's we are play that in the had a historic drilling to U.S. can programs reasons. folks hold

in So a acreage massive footprint long for we've had the a play time.

sets inventory side, of a both we're on then side. to years that inventory the not inventory that. I over oil on describe the us of side oil decades way mean so we're the premium And where currently And gas up on wells. XX with the drilling deep any gas probably is

play but that's we've and in the as side side is there. play of there on today, the the portfolio, say is Obviously, the Montney, perspective, inventory an the really the of position deep to from historic like got look, I'd gas great return why a competitiveness producers think becomes we market, a real big doesn't road differentiator. value got where competitiveness that's it So we're capital our advantage which ahead. have in that look and But in the so from access putting things. incumbency big which not on well, the inventory

I unique unlocks think it's and that returns. but the the to globally everybody market recognizes access the really rock competitive, is

by from condensate capital you, of remind we're really is trades exposure And and great because targeting the historic return play just to the XXXX producing oil out play which on again, position the And $X been in again, and of back AECO TI. I'd or in we no end today just through the the have $X play, the deliver access. able almost market having high we've invested our

from Cowen. comes Daoud next TD question The Gabe from

all we fully impacting as start with I of that that the that in X maybe March? noted also that Is rest about just was in just you XQ, impact like is now Or hoping the the KBD through March. we're quarter Brendan, could rearview?

Gabe, question. thanks Yes, for the

the obviously, that's is then in And the weather turnaround. still the review here. So active is piece refinery the

there's run they a X- City and on X to happens, all market, Lake their as Salt So refiners a X-year number down turnaround that in will currently got refiners And schedule maintenance But maintenance. those March and we've of X our that for we're rail routine and of dialoguing with back obviously, into try access be here. closely to move way. planned them that using up it persist and and understanding then schedule their -- barrels to but

the weather maintenances but that planned other is piece -- So the rearview. the other in otherwise, and

Got it.

That's TIL If million that or range. look year $XXX CapEx capital. fleet would lateral math and at D&C, million, number $XXX of a And just Okay. full get lateral maybe the be 'XX below I so X you follow-up x then just my TIL x on Slide do helpful. the average or foot

and would I be that of know bucket that you little I So to want with kind of just help confirm, delta Maybe or spend the appraisal that just bit that like helpful. is -- noted. think infrastructure had maybe a answer, but

Gabe. for sure, Yes, Yes.

capitalized biggest done some -- we is our recall, way. that that capitalized traditionally if that been the for of years So bucket of that's have piece you G&A G&A

it bits of and pretty capital. minor. some they're little So And of really, that's last some the land are biggest But the piece facility that. then

Goldman Mehta comes from from Sachs. Neil question next The

questions. capital of allocation couple A

especially Just continuing sheet think your the in as shrink count How around shape. repurchases? good perspective, is to share the about now we here, priority should balance the share

on And has you thinking name. our back great consistent. here Yes. been have to Thanks, Really, Neil. the

to mid-cycle buybacks, current look shareholders, at using What's would us a I is buybacks there And So to just to our trade a really, at and value at been use discount at allocation still cash and today, the continue we what we capital. straight best value question. significant expect conditions prices. very intrinsic of return with we've market

share best buying believe we the back. and flow that, cash is of and because those the flow buyback so use through shares free per per create And cash to share growth

just your Thanks, The Brendan. terms back. be It's to in commentary. follow-up of great is M&A

I you of to -- inventory. be and want think the of language decade used over highlighted a have and you opportunistic, you you also disciplined

back, of So picture think just the around strategy maybe bolt-ons you think step could about from and M&A here? how terms about you in

step X added us Yes, take strategy deepening really durable Neil, premium led And of ago, and is years return our more cost focus than great the that we're execution. anybody just we formed -- period. be premium that very we at inventory And get this I a a disciplined depth that that of we where is over inventory. back, lower can today think we've has the ahead if about that means what we really part on in place on competition see and

well. just added since that transactions needle, was 'XX. XXX Obviously, transaction. of locations X,XXX but bolt-on also the success seamlessly, that we and and would through we And organic with conversions the really also the our by as had ENCAP Just that integrated on period single the acquired demonstrated great business seeing. premium of performance we've also not add, that's And have assets over then premium we've mover I numbers, the a biggest the inventory the reminder that that's you're to did

So we're here you cost 'XX remain excellent going But as added we've in cycle that a really at very as returns. XQ locations think saw exactly full delivers already, to you also disciplined. I prompted, XX

that. So we like

Citigroup. Gruber The from Scott next comes question from

the Permian locations the do account? in on test think in zones. get the zones new qualify do you call as a additional in When XXX included as ask you to potential you'll Wanted a be additional about position and premium whether make to

Yes.

I our on it updating up here, think process. a Scott, at is you year of But in year-over-year round should keep and the a view on spring look expect really we that usually we where us basis. bit to the internal through

got I as the going through and something don't market keep data we year more But on this go until on. think wait you updated. we're So next getting I to tests results and think the those we'll be year, to obviously is

updating I go think keep we'll we the year. through as

another question then And the on Permian. Great.

I cycle activity imagine learnings count improving it half your at looks and ENCAP is maybe rig. the the a mentioned look on continue 'XX year. throughout in acreage, like I You the by then the when But will set times rig there up basin, slide on activity the

So going TIL year. drilling be as in than faster that to the cadence, is cadence about we Permian think cadence TIL the cadence the bit relative drilling this a the to

'XX. TILs You more in set a few up the basin on for

Yes.

have in rate we'll you investing not to completions, this our of not but wells have plan. and just DUCs we're any run we're normal in operational So between build those plan, DUCs deliberately building just Scott, DUCs where up this in so drilling

And you our think on I what Neil's fundamentals do of gear year that think capital on speed up just eye the kind you see to as you'll show answer as production I continue on a the and is to and back save and the the or let we'll market. will on earlier just keep stream through completion do we go well grow. drilling question speed, So that takes catch volumes as if the of we to have us that

less I a mean, least little there's in little fair? like of Montney. that more the at bit drilling But the relative it. last the a second it Got half Permian year, looks to than Is

first You're absolutely Xth the right the of be half year later in to adding to there. a rig Yes, we're going the Permian.

really progress a from that's us in down all function of Permian, those is capital ENCAP. the in absorbing wells year-over-year but So

the into is And later you'll X-rig yes, this half rate shifting in see in year. where a second us of the Permian so run

You're right that. about

Pardy The at next question Greg comes from RBC.

right, better look in like nicely, I to margins pretty done? table the that X and acreage over to got trying portfolio. Yes, you've going be get role I sense how big is mean what the frame. as going set and in to come kind a with how much it's Uinta the to in time what to this wonder the years of I'm X -- you you've does I just play

to going last highlight, basically just continued that's months, just really months, obviously would I the gotten over play And Greg. the lot be the oil bigger it's XX doubled the trajectory. in Yes, production not in XX last a

asset over decision. in So out a or is I you're look what more more it back really, the what our up. Really, to capital performance is think And that but here fundamental we've and on time. to Coast Really, through growth. generally the for out other the the level part capital we've to well and that assets, leveling compete that rail, returns scale maybe significant Uinta for the alongside be another we're Gulf modest compared is takeaway got XXXX, to of growth continue again, ramp year, here aggressive and built the seeing growth could to ability going can the over for multiyear compete to company some and see create

allocate and the decision rest the company is how option a any larger that to more around have for fundamentals on the really and constraint we at the level. So capital really than to going there play kind macro of

Okay.

as decision, portfolio. replenishment it M&A Okay. the just M&A And I guess, and in seen the on what wave then decision context. the the obviously, the, the in guys and more strategic U.S. that the of backdrop That's up in last did great the relates bulking you we've of year tidal and to terms come to to trends I wanted back

you where from for cost So players it now there what big portfolio inherent trying would company, make the capital very get a at. just a your is is with sense have Or or any and as with the within a portfolio X where I'm diversification you, really it to standpoint you're this sit heads at with sense a where case to you bigger? the just advantage content get that juncture? to of

No, Greg. question. thanks for Yes, the

We motivated about bigger. to better are opposed entirely as

business on better. margin portfolio drive us and and and cash think do flow today that focus in order free with capital. capability is we have reality the efficiency is that that's on the excited I about so expansion to that that capital for return sophistication we're is invested got really to and And we've the the the And making what

the to shows, we've make track record to ourselves been think I better. able and inorganically that add as

great in focused last months, than necessarily that efficiency just bigger. I proof on but XX% capital the we're better a think point the is XX of rather really

from TPH comes & question Jeoffrey next Company. The from Lambujon

set you continued to maybe see the be general maybe what realize into success and get had complicated I that here what may year-to-date. you've you it on these of location obviously opportunity just If things. is the even as it to you've you My would if could a like initiative? for has program, Permian done QX in term could looks follow-up in speak the like which or I continue to that the frame adds first over ask the with one you market with expectations or the what the all pace done as near

Yes.

Jeoffrey, think, question. yes, great I

we're true phenomenon. a we think, table of we've attractive development, I these our that garner. to well advantage or results team I creative. lot I owner these attack the leading time. something just do easier. in we situation situations a not the But it's else benefit at been a And I very that is got it's nobody where we think has those And seller I recent bringing opportunities, that that highlight the look that's would this It's cube the density really differential what And the look, of been from either the where natural with think, for some getting can ability not combination think for does. acreage a to bolt-ons,

is unique I think relatively that a proposition.

a and for And so in differential market. create to we those advantage use try competitive a us

It's about really not the we've full say But to that easier for sense makes cycle like laid it. time. to really think return look think it's predictive So strategy hard nailed you find where the it's I safe out. what I those opportunities over those be getting to

potentially on for high Trimulfrac would to Just mainly a nuanced program? then the Perfect. the mentioned, then example, for we year about maybe of capital sense. been to be is the just more my what's trying guidance oil of were And condensate. the planned? one should extend makes and on that get for the coming as efficiencies, midpoint if And And the If think for outcome, that with end end, factors follow-up, in of those QX factors there items is in that kind beat consider year. the continued maintenance move expectations. maybe result just in terms you record baked the like that of throughout thinking and beyond of for type last QX you risking what of similar results the even that around to kind the range are in guidance operational sense the low to what compared a you the And track within it PXX or beyond a or on especially turnarounds, range

recognize had that's together, I much really And how quarter, question a about if that the to quarters. the in at through way particularly here we to how to highlight, flowed Yes. really I'm look generation. given come everything fair great is I cash fourth we've free outperformed see. And flow recent just you bottom would pleased which the all line

so And think I nailed you've it.

going against in and I coming year. range risk forward deliver I have think quarter it's are when factors to or we today coming we range we in period, very how as what picture through and and a we there's that for the setting we're the go to here guidance think guidance. we're year confident look the the we've And that of really that that provided best executing investors our we to that about the thoughtful consider do whether give think so full the

The at next Roger comes Wells from question Read Fargo.

a the quarter, 'XX mean, in as sounds like to the 'XX end-to-end about good look this right? one, So into on what's extrapolate right I particular the that want to XX, the results, of to it and kind that but look OVV pads of then results? the Slide on wells as I come fourth XXXX, way to X structure at we And think right look pad what's handful similar. items: we way

about over next, the the think what's to XX months? say, way right So it

appreciate this Roger. one, really you into digging I And Yes.

So update. that talking been I been one a deal. the we It's about think announced really since we've important it's obviously

XX on designed with a wells, drilled end-to-end the data that and by stream completed So we production of meaningful wells now and were have Ovintiv. amount

paths across wells. with level X different those they're across collective at it's acreage legacy spread the XX consistent So position. that are a our XXXX wells And delivering out

questions that was I just a tremendous portfolio. the across to wells, market right know And how had rate XX is acreage pads going So of in X X within you line. go this gate, mean compete of out for the that outcome. our the spread our there us that's I is

across up from is XXXX So underwrite full us that's in And see which combined to legacy the is ENCAP a the overall bit the and acreage. the that really, baking in that what's given you 'XX Ovintiv able confidence actually end-to-end to curve, be average. can XXXX that's design little

might then like on really location? of And right? words, acreage to have much laterals, how list. you're And are trying bolt-ons is of additional XX locations the improves a acquiring been up drill the much a that that you've providing. longer previously Okay. In other on that that location to to How in not understand the just follow brand-new the what sense, I'm year-to-date. is, ability acquired

Roger. Yes. a those of both of mix things, It's

extending new acreage well longer our pure position. where in we're to as new we on adjacent locations existing you existing the acres it both put as it's that and So as laterals getting just control that across adding acres pure to

both things. So those it's a of mix of

from America. John question Abbott comes Bank The from of next

M&A. on is question First

are advantage in consolidation seen lot industry the the have You We've and Canada Canada. industry at of thoughts both in U.S. in in of in point about deals this the your What time? bringing a U.S.

think Yes. different, I any don't John.

where on was then was continue the and out of of as the the portfolio we've be we the But we I the the bolt-ons just because got. say to XQ executing I did place get of think I to speak, within X,XXX, and in here, be X/X so in Permian on we've focus to update think, can would focused you've it in the the really again, biggest pretty adding And where I in crowd, that leaves that the disciplined out actions place think, ahead a us Permian. taken next of that seen Montney. we biggest,

So I don't view our think any versus in U.S. the is Canada different

you do the shareholders, Appreciate where ]? efficiency it. capital for if to maintain long-term question, you even if achieve And this and [ gains for return see to then follow-up maintenance the trending the you CapEx make production decision

Yes.

for So XXXX. we in laid 'XX out guide really see that this we've here repeatable as

we're program activity that out the rate we today. we're year what barring we inflation, place 'XX as we So next that some but roll just year, look into business, in beyond, out that's deflation the the big that change numbers see not guide same rolled we obviously, put and ratable guiding and to just again seeing can is in this we

Mr. time, this question-and-answer Verhaest. the session. over turn to back call completed At have we the we'll And

everyone, you, thank and for joining Joanne, Thanks, us today.

Our call complete. now is

you Ladies your and lines. thank and today. for for that ask your We gentlemen, participating, you disconnect call conference we please this concludes