APA (APA) 3 Aug 232023 Q2 Earnings call transcript

Good day, and welcome to the APA Corporation Second Quarter 2023 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Gary Clark, Vice President of Investor Relations. The floor is yours, sir.

you Financial us Call. and thank Second APA and XXXX Quarter Operational morning, for on joining Corporation's Good Results Conference

of will outlook. with President, call provide further and begin by our then We and results President Executive of Development; on President Tracey CEO and CFO, Also on to an available will John Executive President and Operations. and answer questions Bretches, Executive Executive Vice Riney, Vice overview STEVE of the color call Vice are Exploration; President Clay Dave Pursell, Henderson, Christmann; the Vice

than Our investor.apacorp.com. our minutes financial In prepared remarks discuss financial Please which can and hope at today. you on will be the may certain I non-GAAP for release, length less of the operational Investor Q&A. supplement, hour had press allotted Relations found website XX remainder note be an review with to measures our we yesterday's with that conjunction in opportunity

A comparable tax to financial reconciliation the provided of the Consistent adjusted the on cited found practices, production interest in our are financial Egypt, with supplemental in numbers can GAAP most call today's in information adjusted website. non-controlling non-GAAP Egypt be and measures reporting measures previous exclude difference and between these directly barrels.

remind assumptions to that based like and everyone contain expectations. and will I'd on today's views forward-looking estimates discussion reasonable our current

could our results full differ to actual materially website. factors we information cause located disclaimer is A number discuss with what of today. However, the a from supplemental on

And to John. with call I'll over that, the turn

improvements a regard to capital during the efficiencies the number fronts G&A highlights Egypt Egypt, of for in on today's Krabdagu per and second for made drilling the strong and thank in we Suriname. and On and and most the year. costs, will of appraisal year-over-year unit working and our and in a the results delivered quarter you progress and morning, discuss Good APA U.S. specifically notable outlook call, rest of LOE reduction completion us. review quarter, joining with

at of We also end per dry delivered was X,XXX adjusted on day coming oil X compressor day, rig downtime by offset our driven oil production in our production and the price-related drilling of Capital of exceeded Egypt, by the in line as production guidance gas in and at driven unscheduled steady range. by high the operated during guidance barrels in curtailments the North Basin mostly goals barrels in in day our semisubmersible Permian North partially the period our guidance average XXX,XXX XX per by performance, Permian This total in investment was XXX,XXX BOE adjusted Permian Sea. Basin Total U.S. with good Egypt remained count and per Sea. the with the X

the Patriot in the of the quarter, oil the Ocean are we June. planned, in previously quarter. North increase and Sea compared As to increased production U.S. released projecting end first at similar the percentage a by third we X%

and size oil expect increases, timing pad can a continue is Our of delivering program lumpy the production efficiencies Permian steady production though in in which profile. substantial completions result we will and the drilling

Basin, APA's we development currently where directed currently where the Permian oil development in is rigs X Rig X operating and in Southern have Mid the have activity operating. rigs towards Basin, oil-weighted Delaware we

completion and NGL call, improve. gas until our last noted prices we we deferring natural activity High at on and Alpine are As additional drilling

returning look forward placed the expectations, to and at most said, to with High Alpine in performing That recent online the future. we there work line in are our wells

with and Turning quarter. for new our guidance. were our was well expectations now barrels to the day Gross recompletions efficiencies, Egypt. connections, with all oil of per XXX,XXX success line exploration production consistent Drilling in

quarter production per day. In to will result, making per guide downtime. due a are day barrels we compressor previously we good XXX,XXX second guidance XX,XXX progress the the and oil well Sea, was to below per quarter the our third gross our XXX,XXX of toward up barrels fourth in North projecting As quarter day be BOEs are of mentioned X% production

We the higher expect to in efficiency of volumes day, Storr per positive North XX,XXX the in well, which our and third to of to quarter driven June. production increase on a range BOE by XX,XXX operating late impact went

Suriname are on appraising Krabdagu last currently we focused XX, In Block year discovery.

location Krabdagu collected consistent in at thus expectations. are were with previously predrill phase we X encouraging. and upon Sapakara believe pressure We the is and is The DDIII this very and at on our still is data far X, rig area be released we operations. have noted, appraisal no drilling As additional or completed in At testing Krabdagu Krabdagu necessary the that time. and will results semi-submersible completion buildup of exploratory

That operational we the to as upstream North we to U.S. operations. said, capital cadence declines. noted year more efficient no areas drilling ahead Suriname these outlook platform reductions, to in half previously our reflect in and reduced Looking remain year the investment programs drilling additional expect this second steady minor and some Egypt the have of in year, drilling both enables cost full Sea a constant service

actively XX% billion to associated in price also year well least as ongoing which to billion, these our our LOE such are at our and decreases APA shareholders. to as cash down from of reducing items free flow full $X.X We calendar outlook shorter-cycle year managing returning remains committed costs diesel some chemicals. reflects with this as success $X.X

and shareholders we half we year, via return the cash of dividends During of first $XXX million free generated of the flow, stock buybacks. to XX% which

volatility strong constructive. other the hydrocarbon for price for share diversified of very has investment and $XX XX% believe commodity an nearly of price quickly shares total program APA average XXXX, of and is of E&P to in per Since just the outstanding repurchased respond to and October closing, In under that operational a have at longer-term portfolio is the industry prices case we repurchase we commencement the APA share. our externalities. the outlook and flexibility

achievements the gas you initiatives. our recent shareholder our to We encourage and fronts safely these committed allocating APA as review benefit And operations. which capital current are with this report, and I website. oil issued Last to to on for turn of as framework to Steve long-term report, into all well you the we I our find month, impact our to goals our of environmental on and will over sustainability produce XXXX of ESG highlights reduce which Riney. that, investors. the call seeks can returns

John. Thanks,

of consolidated $X.XX For the second quarter, income under $XXX net per or accounting principles, APA common reported share. million generally accepted diluted

are results mark-to-market these of significant most value stock usual, items in on of the unrealized core Kinetik of are the and which Waha earnings, outside ownership swaps. that As basis gain appreciation include our

net items, smaller $XXX or income quarter $X.XX for the other million and second diluted common per was these Excluding share. adjusted

was Free cash of dividends the returned working flow, in repurchases, quarter. amount million this XXX% share which and for capital, Through quarter. to $XX the external in during exclude purposes changes we shareholders

both XX%, mix noted, very XX% and last quarter. oil increased performance same flat. the held John during cost Adjusted the up expenditures quarter Compared were to nearly from good lease and operating year, XX%. we oil to As operational adjusted production was total

underlying to improved APA's stock G&A to actual all expense guidance. forward-looking costs regions. the was of rate at lower significantly run quarterly price quarter Underlying is third a on significantly Oil stable, the G&A our expected and mark-to-market result million below previously cost. This in Switching $XXX quarter end of our $XX around million. compensation. increase is operating remained X production share-based the in impact

gas fourth total in oil guidance implies where the have will that full Declines gas the to completion continuing in field at Egypt. and we U.S. again in mature and and production production natural Our Qasr Alpine quarter this deferred the decline increase result year. company rest through drilling Egypt will of both the year in activity High, at

or would Next, I provide obligations. changing loss to our guidance to color on gas related some transport profit our like for

you hold third-party resale As of total just manage basin we price by over net produced transport million we the trading gas on the XXX the per cubic transport the Permian in on capacity. purchasing differentials We sell and gas the Coast. feet day a know, for in basin takeaway most our Gulf based obligation We margin realized cost. less Basin of

is narrow. of $XX profit cost price loss and profit generate a they a differentials wide a when mostly In activity this the are second transport net the generated Since will million. quarter, when are fixed, activity the

in we As we late and since the differential seen, in a between have Based fourth May. strip, result guidance Gulf accordingly. we Waha and have forward compressed is trading all quarters, loss both third and small will Coast activities dramatically the anticipate our adjusted these on the pricing

gas in We supply gas the are is flip now getting commenced higher under our on deliveries of Cheniere and this The X. realizations produced August we Basin. Permian sold side agreement on our that

an free At cash $XXX this of will the $XXX last months generate contract XXXX full approximately of flow the year for current and million estimated X for XXXX. prices, strip million of

As know, volatile flows are likely cash you from be quarter-to-quarter. to these

are a to and gas Cheniere. reminder, of the costs, transport all projections acquire the these As including to cost net

year guidance both quarter can complete for and Our in operational financial be our the third XXXX full updated found and supplement.

brief on a comment Egypt Finally, receivables.

working based in we Egypt partner experiencing the years parts them just some they XX that a and Like today, of relationship of we in process the challenging world well-functioning will have long-standing their nearly financial on past. country. with times, We through with are like have many

had very with first constructive the earnings Since have Egypt. conversations call, we quarter

As we balance keep confident a result second of the will are right the steps further and track. receivables down came the taken, on already steps quarter, in us

capital expense million. in and our guidance closing, production we original is In full budget about operating our unchanged, aggregate and have reduced by XXXX year $XXX

profile our Our recently Since repurchases and significantly Q&A. Moody's, to shape most call who we have dividends. by grade shareholders I good beginning capital by returning XXXX, maturity of outstanding investment June. that, to our this bond will the via billion us in and turn returned in billion, to also the share balance for are improved with the sheet structure operator debt recognized And was $X.X over by while $X.X reducing and debt

[Operator Instructions]

question of America. Leggate the come from will line Our Bank Doug of first with

it more yes. than I'll take but. Yes, that. exotic But be, -- should probably it's

of from So things me. a couple

So terrific. want ask working Egypt, is to progress, about about which capital the not

think I Steve, your you've with commentary. addressed that,

a But lot trajectory seems That folks only are to medium-term be confidence questioning oil can whether that the I actually in is maybe quarter Egypt. the about deliver growth the on you knock that. want to in the ask

What -- I've the So progressing? that outlook as well. follow-up how got And today? is is a

it's a nice if on being seeing we we've see Yes, early and in on averaged up have And so in coming, the we're the day good got our But good wells July, going of of have the be with thing luxury I'll we've Pursell over the side a and look to won't future. half and you XXX,XXX August, Doug, and on more detail. you oil in of little volumes sight year, actually quarter, lot of let a it. near the already the July a the back coming Dave barrels second jump line bit got what's

oil us confidence. Doug, gives said, Yes, alluded XXX,XXX or as John July the at John -- in gross

of have the in We've other had We basin. success Gharadig and Abu a couple data Matruh exploration good both the on points.

have of So of the that rest the good online. sight come line the through we will on well year remaining stock

you If significantly of front. wells it's the back higher the online in expected at half look year, the than

numbers. So just some

we year, to XX of First half the over XX brought Back half the online. put year, of online. expect wells we wells

what high-quality, wells confidence So those in good wells look more like.

guidance half our again, back So the is very in high. confidence

XXXX, beyond Dave? And about what

Yes.

We too have confidence growth plan, give continue in keep but look we guidance, at ability the to the to engine to the we're and early moving. 'XX

Great of apologize, end at have I'm Day stuff. -- going given predictable. they're so But Analyst a be September, good I have is to Total something on steer say its Suriname. there I that going they've to think the to having to John, pretty

I When with to in ask today sanctioned want but From everything do resource off Guyana want lease the capacity with barrels, extent to and why barrels that don't know, you million you especially service a I'll the XXX,XXX about and is you it Waha tell the know resource development, there, we I what like of scale So that, to me you this. -- know can mark? and day. the the connectivity similar frame scale of XXX front-run of GORs wildly

we of a Number still I mean Doug. one, couple a have point, location. on this at rig things,

discovery, down the it's in into we over, fairway. primary the I we So it's appraising you a year different two, had partners but objective the fairway. -- came a Number Waha well. being dip totally that with was it If Block Krabdagu we early. the XX, we said discovery this low when set And original announced of flip above

was it discovery Krabdagu X. the well. X stretch now XX from So all to back Krabdagu does yes, from kilometers there the way

early are very, to see very We've you're said, And flow test. work to me confirm as a there oil, encouraging. it's can technical comment there it's resource say we going the will the We a this do we've point. anything results lot very large of it's not at for -- and to in fairway got be but that -- do or from

a lot future. to do, just the relatively come technical that course back of there's work in with we need in and due So we'll near information

that John with Freeman And from James. will of Raymond come line the

Yes.

I topic shareholder the address to first wanted returns. on The was

you You flow returned Last cash did the quarter. this XXX% of quarter, free XX%.

like kind returns, have. of and you you'll be obviously, kind XX% lean just of double when how the that the to to more appropriate was it's did, into that thought I'd minimum your of shareholder target you'll time really than determine So curious process kind

So just about of appropriate things. time you all kind think how into an it's lean of when sort these to

a half is And cash that's John, if greater -- the the will to we the this the prices plan going If second that from of factor a price take the at I half. and of lower capital we be prices second flow It's that for growth. half free always also Yes, from I we'll It's now spending to from have going first the Steve. come be the we in there. to would going back -- Cheniere come come bit just as actual first the year, half. contract. half amount look than production look at And step for anticipated and second a

We to year our maybe So we've that second that. a fourth capacity in always to most buybacks that 'XX, I that plenty said address share done we've one half do, half the 'XX plenty half, we And to, it front first chose end, of did still of program of to quarter and we the We've 'XX I'd just it certainly did load the and of full say for we buyback doing the time every minimum. quarter, half did is the XXXX. of obviously, say for in we'll there's us. at, I'd that of got, see period concern very and -- share we the exceeded just XX% happy the first of we I'd with to minimum. look buybacks do prices that we're the the brings that in what think second would especially potential second say in year front-end

follow-up, my to then And Okay. questions Egypt. of kind following on Doug's on just

of as what in seen last kind in the so mature keeps got ballpark like of of oil gas possible. XX% natural mix in. looks oil sort that terms It Just that's for the the would just declining quarters you you all be we've for X that something field like like just now XXXX, identified mix that

mix sort see about continues up. ramp Just oil that to sort of evolve all as it how continue commentary you any of to

you Cost field mean to point. if continues rise. see you're to as it that's is X a been And large and and going on mix decline, our are, oil declining. decline need will cost great -- go you John, back it's I

so as to And that driven see our areas, mix are in and the costs more are programs you'll rise. oily decline continue

it but and mix wouldn't than oil would 'XX early. higher 'XX. I into anticipate be in I that probably the it don't surprise it's want get did 'XX, so in to And me, will

from Securities. That of Dingmann Neal will the with line come Truist

maybe one more ask Egypt. I Can on

your rigs strong that I'm ample, personnel next sheet, activity results an balance to and boost equipment wondering, ample the seeing the so, strong thoughts given if you are specifically, and given year? to any XX just continue Just run and

today. a on Neal, little it last programs program we there wanted training it. took kind us year where bit get the with to of We're

we So good put a rigs think place lot of right XX, in number. that. about now, feel pretty good XX training I a is We've

country and all about it's a think perspective. staffing in I that's from

I we get us a and the we'd you're good the seeing And were where think finally So results get place. hoping in to. we're efficiencies pretty

right good that's And a feel what foreseeable see now, I for like place. the we we're future. So in

second good. Could Midland. your like up And size, seems then wells, you just peers to you changed get walking is have the to pads try to are lateral continuing the average to some efficiencies. on now, Very guys my for speak or are Southern you length of get larger a you larger more

mindset. So update I just the with wanted to the same hear

the our focused came laterals, with into really on a We of Yes. lot programs this X year X and longer milers.

I you've color little there. think more statistics Dave, So or some got

Yes.

we length on just lateral to higher. in the walk So Permian general, continue

feet. year, X we're some longer. on average X.X last averaged closer to lateral. Again, you is for there's at the average, look and are If But XX,XXX There to we XX,XXX . some year, going variance. feet getting over program just This milers there's

we well. a inch stage XXXX, we've with little frac had longer in anticipate And success have and looser continue frac lean that. size, individual a bit to And to tended think to on the And links the I spacing little will bit size. good larger as

don't this get on we've where are completion I that any comfortable we'll with know we're bigger, we so And but pretty at point. designs our --

line Scott the will with come That Gruber Citigroup. from of

going in on the XQ, about hear in the side, think oil too a in your in growth oil 'XX production the How little of to guidance the I'm that like in at bit the to decline maybe peer continue to 'XX U.S.? mid-XXs. Yes. implied this corner we full it should you're U.S. can terms U.S. the around year getting juncture looks

a we're you, start working getting now that terms in 'XX. we early anticipate of fall. typically the can start would I reviewing we 'XX don't pretty I forth so sets numbers. into from where of level mean the today. right we activity It's and and plan detail tell are I lot in that into getting

And I we're similar volume so the expect a laterals with drilling, if increments fairly delivering the little in types and we're of terms year. programs would that with be you may of look of that on at this we're higher the growing base growth

fourth it's expect know in for quarter lumpy. strong always don't line year-over-year, XXXX. program of continuous rigs But U.S. those I We're will the so X But up some with timing would I over very how fourth the running a and -- numbers. timing the in Egypt quarter,

States, service that kind cash? end the material? recycling that into in keep the be Or and deflation just if up drilling? Do of free in deflation greater turns back would more to of terms in here is light more And cost out program you the of that you benefits reap in the same

step would the there. be and to the crews, I right dictate X.X going a would hard say It's function. X Mean rigs, working plans the frac now, in program incrementally to add stair good because program take without pretty just up let cadence we're

I pretty anticipate flow whatever cash the benefits So program free will that and would side, stable. to come there the service would be

year We pretty do on framework the set with try go capital in side. a every to

a will costs down next what dictate what's look year. like for will will our fall service And try portions going so on we lock this of lot for that to the

in So really to we'll the in see prices do little back now, waiting half the had of capital. you've wait out. things see clearly, what a think of but just play everybody is I steer to softening next and how And year's have to areas kind of right year. some bit

with Charles line the of will Johnson That Rice. from Meade come

are a to going guys I at results I John, have we're I'm bit. about all -- but all the to Krabdagu, the , wait appraisal learn little eager recognize to say to or sure I'm as to see have all to you

you are talking it transition recognize into it's of Waha. are considerations Krabdagu. these is appraisal, there? targets? the fans kind to And for it has are So the about what you appraisal specifically, maybe as also also And hit I deposition part the slope of said about guys is one the your starting can to want Or it, your same plan what shelf plans that for in as basin I there? system of out address perhaps you instead or for a ask

let the is bit us that a set I to in Waha, first and I'll discovery on we it what we the it's in second, discovered where as but discovery Total. Block a Tracey little in a well tell separate can is opposed have Block get XX, to geology, XX, of a Where just partners you

We are XX. operator the of Block

I can't do say a an does other And of at so a its own does flow up in into potentially oil Block than to Block XX? it we've make lot in terms XX. hub got Waha Or point lot in work project this of

of So on in of Tracey, a lot chime at this there's work point, than, looked obviously, little at. I you lot done, a can't lot a the other And sell a being geology. angles I'll there different have bit

Sure.

great question past. fairway initial in the in discussed the a I think there your and what assessment system on about we've

we're what XX is now John Waha describing we've defined So roughly his something a And Krabdagu that's remarks, fair X. mentioned as to kilometers way. in from

through a stacked here release you which call that's system coming that Krabdagu So original are you've very a our got from series X, slope of systems. channels in at robust

of channel got and work forward. So location lot we've assessment, seeing a more to we're well a said, John to correcting still going systems, integrate We do. work your technical as on got slope

come from That Fargo. Wells the line Read will of Roger with

anything how in of things out desired and to we operational was to call it's just return Egypt I from being curious if Just more Egypt. been it's don't standpoint, or an as ability the be I'd ask watching risk your in not Egypt should it of the country like but financial, are or I else country, needed But know about and going operations the just terms from there? capital as

Steve lot is some the No. places in world a of Egypt There that prepared his times. are going in difficult around the in stress I remarks system. through now mean, mentioned as right

pretty things, and seen Egypt make much with things you're And look but you and seeing that. progress, normal us business, of a working like prices it's you've and constructively course terms at to standpoint wheat If that. from been movements of in our

So.

of efficiency on And that. my sort Okay. in deflation you're as like a side, what broader the that stages, things seeing look Permian, what of answer. of description leaving good and you at take service question drilling the is just as sort gains but in the productivity inflation be you're I'll other operations then aside, on terms completion any cost seeing of or just performance the would

Yes, Roger, this Dave. is

down So the side, getting improve to performance. bore number think we lengths, about which there's very longer I might drilling talked on little wells But a getting of on is in doing is you efficient the side. where drilling productivity that our team with. I helps. going you continue Again, drilling won't any be metrics, a manner I of the as bit our good and job Lateral earlier, a

compared that pretty into 'XX. to productivity try have to going continue looks on foot, relaxed And program in and getting better, always we're to but adjusted good and forecast And we're subsurface very have a productivity bigger those fracs a the numbers or length basis, But to continues been move it's push that 'XX the happy team or keep us so we're to striving to spacing XXXX. to getting per adjusted continue lateral a far, we length hard to good good to pretty lateral benefit -- the with to envelope improve. team

from line with JPMorgan Jayaram And that will Securities. of come Arun the

decision? you FID move and an once Krabdagu of towards commerciality X declaration perhaps will I how thoughts process wanted think evaluated to the fully get the you your results on the

technical take. we're Arun, a Total. just we've some point to mentioned at a And I partner of and of That all, work -- we steps And first But to is data. to location, we'll of working be our with mean, be exactly would lot we'll so be still do that. on in it's with got rigs work what lot said, got you'd back more a position in you come like Yes. we've the to do obviously, do.

So.

frame it. the there. wanted John, terms $X provider, the a subsea point? boat maybe $XXX you that from $XXX it. Got know, raised SURF I to up Anything at scope to into Total they've mean over has this I as read previously to in package million. with and the potential of to follow million Got to size of billion agreement just

the But let The that's that. I'm I right? I'll into could defer, be said I only what say X. year appraise leave they're -- had going they'll with say, it at those and thing would because Total we result we'll clearly, just to to relationships, handle impact I'd goal a and operator, it scale. Krabdagu Krabdagu this mean, came positive scope And we we've at

was the could #X was a there. of X that of appraisal better objectives to with program the large potentially the what So and understand for type well designed we very up step have resource

better do the got and technical understand teams scale. the we've that help So work, into lot a but of to was objective coming this scope was year

John, situation Brent attract just legs where of If eclipsed happen it, the and do Are you this you Sea. quick moving is -- stool the competitive. maybe North for at portfolio. follow-up the And not broader with, X think ex-Suriname the point? the next just we needs prices, Northeast A now capital on North is year? XX. oil on thoughts to to Great. What call comfortable get the in Sea

North obviously, the basically thing lead with And I Sea nice is mean the is, got Patriot we've Ocean diverse in program put the capital. months. X a for a portfolio to places having where we

a in company. sustaining the us in position growing see terms and You of good

makes in we as factor next we'll what year, look at So sense.

stability. perspective, the investments. some seen North to make in more to Seas see not you'd have need importantly from long-term And regime the stability now, right we But any right now,

North of and anticipate not than put a to lot are safety. I do because And in we jumping and us what so would and integrity need point deciding at maintenance prices Sea in for this to up capital the

ROTH That the MKM. line will Leo come from Mariani with of

up to wanted just follow Suriname quickly I here. on

stopping though have the But process of guys for drilling curious as made. to technical bit certainly I'm year. based of Krabdagu more here, on just on go. found you little you've the So thought work significant the seems kind oil of rest there's kind understand around the comments I

got you've momentum like feels there. It great

why why is rig You X lot of of the at the given how other sort the targets the the basin day, end of vast not momentum, of the X found exploration months time? this point at last, call or in some year, get of oil of it, just rid the a building that drill for

got project mean, focus of I Yes, prospect so other Leo, a large the a we've key got a on in, coming and forth. a block. areas there's what let's that development, think for was the We've point, been I we those time to the an drill And get are other was Sapakara and right and it's year. this focus And area. so. at don't think was and there oil to in down Krabdagu necessary But prospects this lot

then spacing. consistent. been lot Okay. you has about of terms a design bit. sounds there this talked a it little in performance, like of U.S. potential here But little like completion It there with been guys to some have the just And oil wider more well performance a bit kind changes the seems the

like is basically it You that looks 'XX a 'XX. little well performance said than guys better

acreage. is of on kind wanted you running think the a here get of Tier little kind to do of the room sense X Permian kind Just of what

you years Do handful of you out can years. in running how terms kind If rigs you keep something? of of inventory of rig you and or have an much guys long look kind of how estimate maybe of on you have kind kind are X

of kind rate to of decade about run visibility that. this and -- this on talked through change in kind the we've our Leo, program of the no is Yes. end

happy So we're with with in we're there. to a X- X-year have pleased plan and we at looking pretty -- what

So stay tuned.

Yes.

a add X, the other had the drilling ago, that's look today at you Two I X, Tier The it of at X. a of We've right? acreage evolution years lot stuff we program, we're got would the footprint. thing if is Tier Tier nice

And always the also so resource. you're see to of the looking evolution

this rates. got we've U.S. the inventory confidence So strong in at program

from the with And that line Jeffrey will TPH. of come Lambujon

U.S one I on my wanted ask activity. to first

terms near think activity. X about term, comparing Just if X steady whether to could that if part or wondering Delaware as splits the all, that toggling talk and at of case base Midland if of good the inventory about in how the X any And assume of you flexibility terms plays in or you some the if speak Delaware maybe you the imagine to back see also of capital there? I'd the sort of can of factors. the degree there to to of you High any from add Alpine wells in the what proximity the of in macro want into

just Jeffrey, question the Yes. a good Midland Delaware versus split. on

rigs again, Midland move you Basin. magic Southern If fungible, no the we a are Delaware over could could as rig to -- there's

is to not sense. about X think is And or then question XX But really so, just It's Delaware the either X gas and be SMB price be at if looking but we'll wells does it sometime in Delaware. gas you or -- take Alpine. decisions make And an Basin to next months competitive line, for about what on the year. SMB half in oil a in price, Matterhorn next online are rig comes versus of those those the back

of of for talk I was going and know Sea. part sort what about just with on a there Patriot, budget the follow-up next Ocean small be sense. Great. then a means budgeted smaller, looking year-over-year, that steady about North but Okay. and what you of makes forward guys at this release relatively as originally seems maybe you state the can could the spend maybe for looking highlighted, it's year to like should CapEx? terms year. already half like you the something It that getting of the in That just just maybe And operations think we

I is million mean year. I'd half say that's Sea. give $XX 'XX, look of probably for I next the think half if in take, like Yes. got North the each assume of -- of you'd million, so what $XXX look And roughly. or going would what around into back at we've at today capital we it

think biggest change. just philosophy there I is the thing

I mean safety managing integrity to of free cash managing for And operating left. a and be and flow. still and we're going decline lot there's life

doesn't it our really even timing the pulling change Patriot I is when we important on thing think by out, see abandonment. the

we're early I into the think XXXXs. well still

with it flow. free And for that as a asset good so cash to we're going job do managing

And the with from that Scotiabank. of will come line Cheng Paul

number million the barrels. around maybe Suriname I about one at say, but far, discovery, talking point John, so XXX guiding, a your that's think

to and resourcing is is weighting the want assume any the And recoverable question. that's way X number should assume that if right just or make reasonable that what the we are whether reason geologies that That's -- pace? of clarify to than that kind comparable wanted recover more pace we you first the Just won't latest XX% the to resourcing of in and appraisal. see, Krabdagu that's including I that pace not

Yes.

of resource. to second at well, we've from the get the than you -- million we disclosed as original XXX the XXX the barrels million Paul, connected had more Sapakara well, So

million So it did the XXX there. comes from. was well of the original then that's Krabdagu. at flow test where the from we from discovery million XXX And

connected include -- the a also on that or resource forward. XXX not X and it's it place, would not be a integration number, Krabdagu that's and but in move recoverable will the going Krabdagu So work now number is does million X

high-quality reference actual give just can And to factors, talk but So you some rock. insights early -- it's might and really Dave, you about it'd there. recovery be

have Paul, deepwater I maintenance. historical And the at factors going you to a big just that high-quality gas of of a it, again, range factors These think a reservoirs. if injection look the to We're on put in plans you field are discoveries have. function there'll here. pressure are recovery lot recovery be development can

on try at So number it's I think you'd factors. put way expect a high that. to this recovery point, to But premature

a have you that the Do gas what's estimate, curtailments in there? cut rough

Yes.

gas about cut, You're Paul? talking

oil way? what's Yes. the either percentage the gas Yes. What's percentage? Or

discovery, I GORs on press the in not or disclosed Krabdagu Krabdagu that releases fingers, Yes. the X. yet we've don't X Sapakara at the prior have the and of on but and tip the anything my put we've

X,XXX discovery different around And Yes. couple high had the well GOR, at the Sapakara was ranges the from roughly. Krabdagu of XXXXs. a teens high to

on of number Okay. And wells. Great. X-miles done Permian, you've a

percent want work does program milers? do there And what X is you of to be share can the in could going of years then inventory number your of see you just a your that, couple months? backlog is to that X what So for next the

allow is just this a a the footprint the of happy I Yes, don't question it's milers. the Paul, to small of that does to drill We're relatively have work milers, the us It's with really acreage where X our results from plan. number. total Dave. X allow percent that

out You can of numbers the X what threw milers. tell just most earlier, upon I we're drilling are

do any just a probably But from we'll assume time a we best program. get just X-milers the chance modeling in they're X acreage to all is the to footprint. But that's it, and standpoint team, miler,

come line Goldman Choudhary will from Umang Instructions] That the with of [Operator Sachs.

My first operating on program. from $XXX your the question million is savings cost management

any talked some in can about provide color is and savings those savings? which driving additional driving diesel terms You other chemicals you of buckets, there. Any

Dave. is This Yes.

check. If really a through across trying -- took a at board. headwinds the year into Sea things. it's kind discipline really And really those good as you year. just look the and North it, costs Egypt, to of some areas, U.S. We inflationary and keep in really, has all operating that the the It's the cost it's and in great team came and lot the team a challenge of is doing with job shown the

just easy else, chemicals a But to And little numbers. that up lot so everything see. to diesel are it's material add things of and it's --

comments your love down and echo road. the compare But thoughts from organic would would how your to just versus does that separately, I some the excited more Suriname earlier, around then of And on here? landscape opportunities see M&A

I the seen high in couple traded general, valuations. a at Permian. mean take think of pretty what viewed as deals we in They've you've place I

look what try in obviously, valuable come that obviously to We every more this the do. more that's make got where make on are have we focused and you've organically. we been to sense. be You lookout things to attractive. company could And for But always we and day

So.

in I'm call I the no back questions over like this turn for queue to remarks. Mr. to time. any at Christmann now closing John further the would showing

Yes. Thank close want today. I thoughts. with to you for participating the on our call following

look teams in program. guidance. our we have level, full which progressing keeping number are wells quality We at gives We're you and asset in a high Suriname, scheduled achieving executing of production high the confidence capital return for the year direction remain a back year we to committed our in a our us half apprised Our you. forward to Thank positive progress. of and of

you concludes for Thank program. participating. today's This all

now may You disconnect.