APA (APA) 22 Feb 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the APA Corporation's Fourth Quarter and Full Year 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 today, Gary Clark, Vice President, Investor Relations. Please go ahead.

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

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

differences will operational that length, had yesterday's you've remarks allotted which we on found supplement, note press of Relations prepared directly for numbers be exclude be the tax hour and hope measures the Consistent in A today's financial interest these on our production I reporting the Our and can of at may about with can be adjusted opportunity are call XX Egypt measures in the in investor.apacorp.com. Investor with between noncontrolling Egypt financial website. previous most certain Please barrels. the release, our with practices, the found information and to GAAP minutes Q&A. review discuss provided adjusted non-GAAP website reconciliation cited conjunction supplemental measures. In financial to in comparable remainder our

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

Also, full reflects does pending Corporation a we pro effects not that we supplemental provided stand-alone acquisition. is could with the basis factors the results please on our for located of outlook number APA and results guidance website. on A differ Petroleum of on from a the actual disclaimer incorporate forma our note information discuss However, to materially only today's call. Callon cause our what with fourth forward quarter

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

for morning, us. Good and joining thank you

quarter fourth comment long-term strategic for investing an pursuing of key moderate framework strengthening growth, more returns, review lower to Callon. responsibly objectives. performance cash our accomplishments both and/or levels, recently, managing overview including in organically growing and that On scale rightsizing shareholders, on XXXX long-standing on today, our commensurate business will I costs, a managing call focus underpin plans inorganically to organization such returns balance full-cycle emphasizes significant the as and a building production our the area XXXX, activity provide expansion new play acquisitions through has through sustainable sheet and with capital exploration, the with adding inventory inventory, and APA existing

of have this patiently and through unchanged. employed remain approach strategy forward periods We our considerable going price volatility, will

paid which the in XXXX, $XXX over X% period. by same of to in Adjusted of time Midland driven $XXX Delaware common increased and million was XXXX of repurchased billion, We quarter nearly from and the returned million $X which dividends. the stock close XX% of generation was number very production of quarter to the were of by on the Looking year, flow APA's metrics offset a whole, our notable The strong production guidance. to Free performance more lagged Permian. of this for the gross Egypt of but and continued original from results, at oil production financial achievements delivering cash in XXXX. was there all on expectations include oil up production, fourth shareholders. XX% fourth highlights most excess

Suriname, Krabdagu XXX the resource. XX oil discoveries an on in recoverable identifying barrels million appraised successfully and Sapakara Block We estimated of

by of necessary year. XX% On implemented this have more the COX front, projects achieve the million X XXXX of of the goal to our annual eliminating now emissions ESG of than tons we end equivalent

across devices more XXXX, priority which reduce during aligns with methane converted or we emissions Additionally, X,XXX to the our operations. States replaced in pneumatic than United our

operation excellence, our We for thank safety recognize we and I recordable teams value to you this this began highly reporting the lastly, metric. commitment rate want lowest and diligence tracking this delivering to since for and incident And continued front. on your

quarter, or with drilling year. efficient, the compared Upstream slightly $XX XX% million key another quarter exceeding investment exploration with oil above of results. our The quarter highly all in Moving guidance X-rig phase production we U.S. line in and our metrics. to spent meeting as was was million last $XXX guidance, initial of XXXX, program Alaska. performance fourth program to up capital Throughout on fourth strong winter delivered the

expectations. Similarly, well than connections and with better or performance well line were in

December. on Alpha primarily adjusted in and of construct. guidance, continue results, at during driving both and Our Egypt, outstanding will Delaware month the the In was unplanned production quarter of Beryl teams within below and PSC guidance oil prices the production for volumes to downtime that we year. the expect Basin production this Forties higher compression natural to positive Midland are due due Sea, North gas And lower exceeded the and impact

production, oil for lower however, was few expected reasons. Gross a than

For rig Egypt. available working in several with activity have delays workover capacity constraints limited scheduling through now, quarters associated some we been and

also to completing of for addition new maintenance many workover well and In our routine drill wells. utilize uphole recompletions, we rigs

year. With recompletions efficiency new drilling workover demand were and exceeded rigs This than workover has the fewer gross meant production not and could recompletion bit the planned increased doing a our new support for adequately the fell the Thus, as and from complete volumes was throughout workover improving oil wells of increased we rigs workover the our programs. wells program, size expectations. expectations, to the backlog than behind better while Egypt

electrical life ESPs. failures number as a we submersible this, Compounding experienced on new early also known pumps of

of X occurred had quarter failures, high-volume which by the early fourth on X impacted wells. ESP wells new in we XXXX, During

say in minutes. facility, will this more I this free reduce and the a of rig being few we bit, Egypt X which of the situation drilling We manufacturing activity In have workover about the down will recompletion problem in process gear traced will a is the capacity to and up XXXX, effects the XXXX remediated. program workover on backlog. to

our now outlook. to XXXX Turning

potential WTI $XX budget and Given we environment activity to year, Brent. the a for an plan lower based flat $XX established on this price have and

potential diligently to manage which FEED operating Permian long-lead less approximately and in includes for capital redirect in work costs, This are investment reducing and year's continue million reduced $XXX the billion. for mentioned $XX This our resulting we Suriname. of and Basin, program, earlier. than million total exploration to items We activities $X to and budget Egypt will drilling investment overhead capital I

be oil and reject to our of adjusted The profile investment lower current volumes outcome NGL plans flat this given relatively should but gas production, year-over-year natural ethane.

on declines growth BOE Egypt while offset relatively up total robust North production the XXXX. expect production Sea, reject basis in a U.S., production for volumes in As plan our the current to XXXX, roughly about we the ethane of oil adjusted remains despite be to In Permian entirety will X% flat.

more year-end. a to driven the compared levels production U.S. growth with Basins, pre-COVID of will to 'XX. and XX% fourth up than strong finish by to quarter We year, fourth expect by where of the 'XX Midland production oil be goal of This oil returning our Delaware the project also in to the quarter achieve we

oil gross moderated Egypt, anticipate drilling in In decline. will pace our of production a that result we

Sea, year-over-year price and to However, lower capital adjusted with decrease. lengthy energy will moderating includes both PSC. of significant relatively effect the roughly planned primarily levy, oil profits by and effects we remain anticipate investment maintenance the in a year-over-year, production This impact the XX% second quarter due volumes. turnaround prompted a that production our expectations should the the And of flat reduction North in third

thoughts like on closing, Before minute Callon highlight I'd the to Petroleum. pending to provide our of acquisition in our and take performance some a Permian

For Permian operations oil several years been APA's cylinders hitting exceeding on now, and guidance. production have all

Permian expect to we improvement efficiency, have and continue in have and been excellent. We optimizing and and Basin, results our the considerable technical we drilling in resources have invested this XXXX, XXXX. productivity delivered in continuous economics in time capital well Since the

Midland has measures improve by Delaware we productivity well moved Our up analysts, as and continue third-party the Basin year. quartile each into to top measured Basin producers productivity

overall acquisition balance bring asset to Delaware our we evenly the position base, and January The Midland in Callon and our announced between making to fairly the upon scale will weighted early it Permian Delaware closing.

recently, further and in their to leveraging most across towards APA's on of we progress, spacing, to expect well potential build and good zone more technical in and the make drilling, progress areas By the capital selection, frac acreage. target processes challenges Callon and capabilities has their infrastructure have efficiencies. While acreage, upside of notably past, productivity productivity from experienced design completion begun Callon operational the demonstrating the they work

When to and $XX only assigned announced we the we operational synergies first improvements. acquisition, million

upside there we to this number. confident that However, substantial are is

into assets knowledge shareholders for synergies process will brings While of the companies look to that technical and the the We cost integration U.S. APA the forward and win-win capital larger accretive transaction. transaction optimization, XXXX alone, the be upon of is discipline on table. both Permian our guidance platform the updating of completion big a to the allocation,

we and the have repurchased debt our In XX% closing, we discipline financial last billion bond our delivering to $X.X on and by of the a clear $X.X billion years, are strategy, In adhering our business or and and consistent managing reduced outstanding. objectives. with commitments shares X outstanding

of and oil operations along aggregate. are growth Basin delivering with flow, Permian Egypt in cash moderate level Our high a free

in in and this and Suriname will high-margin progressed recently, a study, appraisal production in have beginning portfolio opportunities frame. have large-scale We drive believe exploration the XXXX expanded with our offshore time Uruguay. and program further oil large-scale more And we exploration to we FEED Alaska

to weakness, lastly, And shareholders at free While committed longer-term commodity to invest XX% the outlook. that, share buybacks. we the of we opportunities. will I with Steve differential and of in industry near-term will our price returning a base Riney. some least our long-term fully maintain turn constructive experience cash capital may to remain through call dividend And a and amount over flow measured we the continue Accordingly, exploration medium- to

you, John, and morning. good Thank

diluted Principles, quarter, $X.X reported per For Accounting APA billion the of fourth Generally net or $X.XX Accepted share. consolidated under common income

billion that most allowance This Mexico. in for by $XXX decommissioning the was million Gulf of assets income the partial a related of core earnings, valuation the these results of a usual, Fieldwood of to include in the our are net in net As on outside remaining tax old significant release was which the obligation deferred items offset $X.X asset. increase increase the estimated after-tax

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

and cash of repurchases, we Please flow Free as we XX% free for for amount during this to shareholders of the cash Through in million flow. cash John APA's $XXX quarter. of definition published XX% year, needs. And to free the reconciliation quarter. was returned share flow refer full the any returned dividends noted,

fourth and price the was to share due In previously million. was for compensation. the expense the impact mostly quarter margins on $XX mark-to-market guidance, decrease cash contributed Houston share-based of $XX guidance, Cheniere was million, gas This through the G&A the net in accrued as income quarter. below narrowed contract significantly pretax over APA quarter, Ship LNG the Channel our sales free flow below and which

These estimated I discussed to Gulf so now anticipated the flow This and to few properties. of exposure of of decommissioning Cheniere transport is XX XXXX, Based our future Turning contract net strip on items guidance, XX will marketing capital the remaining to amount Mexico, cash in around In about breakeven. $XXX and million. the currently our and years, are recent roughly incurred is will Fieldwood-related decommissioning over our we production $XX will XXXX. already year million to next full just on flows income touch for be security cash million. anticipate producing our note. John to from remaining costs and related of will a obligations $XXX be prices, third-party gas the other contribute

already closing Finally, and with confidence our integration through synergies. of X in preparing our plans working million we $XX Callon a meeting annual John for for are for indicated the team goal the day or operational joint exceeding acquisition, beyond.

synergies will our time, Callon of basis. sum We expect goal meet are majority G&A on are synergies or At of focused million ready of and expected the with closing, which $XX realized requiring the we this the annualized put refinancing after debt equally few be The the on synergies the transition within a an the financing a be refinancing take and G&A will to and months. small exceed days up debt. the of still period, into few with the activities a on a realized to be shortly portion run G&A Callon planned of of A closing, rate transition basis may of effect. a financing to

increase would on announcement acquisition the of Callon's leverage has our had on of time nor our assumption with adverse the rating that discussions agencies, at their published noted the the no metrics We debt outlooks. This slightly. impact

the with a all rating to X equivalent or target continue BBB We agencies. thereof

focused cash For this be achieved remain divestments. debt we flow the will further possible reason, and reduction, through which on asset application of

will to that, with the call for turn operator And Q&A. I the over

with [Operator Instructions] Doug from Our Bank first of America. Leggate question comes

Thank like interesting anticipate as the you. Can issue give always us you've it's to the solve. John, issue. like to sounds good hear what to morning, take a you it, mean, sounds some and but simple ESPs be can -- operator forward is resolution Steve, tackles it that. When the idea Egypt, I'll should identified point you I then? really that? how

do outlook? I'm what what X-year, go-forward on see anticipate trying you've this growth mean, whatever, when you around? your turning Now I identified line, do you I get as trajectory figure back and it. to time a this Take would resolved? out, is that's you once the guess really not why X-year,

Xx, off say ratio rigs. factor kind units. back count. Doug, historically, just I'll the you rig And to the the These we've usually of the workover run just ESPs the sized the and to drilling to of aren't pulling normal to kind is workover Yes, rigs first underlying start these good and rigs. factor the of And on. was close rigs drilling go The workover are if second Xx piled

use our over new perform these recompletions has to we to wells, just and said, really rigs we've As slightly workover the complete workovers. X. been do And ratio the

kind back, rig XX to the ratcheting XX run We're down so program. gearing rigs. we're going of still And to

a we're that it's decline getting not large but and workovers recompletions count very major those the workover it's want get and the important underpin reduction, to So down. got We've base we to the a key rates. work there, that asset

capital the to right the keep piling it's no more now, And system not efficient of so given quicker reason into the workover wells most rigs. more just and there's drilling ducks use

On the There with last identified wells of manufacturing. right. big we that the sub that, process were are the and These pumps, pumps brought we sub rate fixing you're X the problem as high we needed exactly a in that. on We've year. was

get But we're capital will make trying out So workover being straightened now. efficiently into out function is and go-forward kind and more of wells that drilling really and of number right it's balance to the a rigs addressed the most we're basis and sure of getting with rigs the a drilling on of to it. the get equilibrium to the investing wisely

got down, that we've a usually mean, we worked be X,XXX I'd We over. work we once I around barrels So say today, a to day. XX,XXX offline to run close that's barrels day needs estimate that

that. and it's day and about do X,XXX there's number need work a projects to going we barrels take to down there So of workovers to a

So we're on it.

think later a I can into a point, equilibrium we once get at we count then the date. good rig revisit

And outlook, on on that? you the medium-term touch production can

for for production, to Egypt guide flat now. We're net production adjusted going just to

I'm about wanted but from Okay. as don't where imagine to Callon, torn ask to much I get We'll today. we're to of more watch kind to that. that going go. I Gosh,

only I to program. So the to look gets their like until your did something what at never to it. show portfolios. you've ask about exploration would on seems exploration for And us, have some it got maybe to Tracey outlook of exploration back peers We for

profile? believe, this have risk Alaska to I near the see exploration, is you're quarter, field going you how please, me, wells for characterized So specifically, guess. I X

So [indiscernible]? halfway profile characterize what seeing those you currently? assuming you the risk How wells. would of What I'm already your are -- through you're

I'll underexplored and one, area. to it's few hand I Alaska, a it Tracey. over large, stop on things I'll mean a Yes. then But in, Doug, just

in play. highly It today, details put state we it's become a into is for some lands. minute. a acres into Tracey the XXX,XXX on prospective As what's get in supplement proven And can that

are wells X planning drill this We to winter.

are very well. first spudding close to the We

fast. fun So we're any this here at not through pretty halfway to but get going it's them of point,

let little more I'll Tracey, about program. So bit talk the you a

from around first. more question And initial exploration just mentioned think, Sure. program. of John on little I give your a what comments, about has onto the the a insight I'll program on carry couple then

said, I and Bay sits position think as that plays. between the Alaska, Brookian a it's John in in Prudhoe ANWR

into particular we are worked, looking where has and but area not really entered exploring area analogs we've So an have play in an that have there for. explored where that been

in So we're worked testing an a region in play where under-explored has region.

you we're season. this said, As drilling X wells

this back an once that program. All we've drilling with of completed season's in those come we'll QX, on will and spud update

think I we of us the optionality with we that the more what both be -- seeing areas I with last that think based risk build like terms are about year. that to Uruguay lot proven, going areas play diversification in some diversification. a exploration portfolio, entered more talk in you're licenses are portfolio if just and And look is you some

to optionality both will that So with Uruguay. play seeing we're portfolio what and we're in seeking like offshore do we're near-term time, in and a through in risk both plays, like of really types Alaska in onshore, is optionality give build us seeing longer-term diversity

more Alaska in So come near the term year. on later to this

And that Egypt of Doug, first on in in-country. We're with X number more limited thing workover question. rigs are your the

the where units. in go constrained a workover We're and in dealing So can up rigs with you're you there. resource pull pick just not U.S.

around so And that we to gear have at this kind of point.

Please Our button. your Neal, mute with comes line your from next Neal question open. is Dingmann Securities. check Truist

Can hear me? Hello. you

Yes.

question first My on is also Egypt.

seems more It the color a definitely activity versus understand discuss seeing for good. you're to just I what performance to about and quite well hear the John, -- understand speak on love little would last change region. productivity on bit the recent and that. still to the be in want I year? need you there Specifically, can

line as performed Yes, Neal, in 'XX the expected. program really

some even wells challenges I'll wells. high we some potential call what new the good. high-impact ran had -- to the success We Barnes the into were area, where on on in We just the bring some some really ESP. had So

the So program good well been new program and is line. has in

little getting just go So faster a together at it's a and ratcheting balance back we until date. all can about the later bit

No, Permian. that And just sense. the makes question second then on the

While you you that. about of And too activity guidance, just pro Or say yet should about able D&C theirs? the maybe decisions still early Callon just I'm to with the this the for broader we having add are if could activity cadence, I how not the sort just forma just your simply of anything wondering, talk think too is about maybe it's if it for instead you early year? there that, existing appreciate

I closing we clear Yes. have. to we you side, on integration transition. we are And and limited that. up the hurdles, we take have transition working the can believe as a companies smooth today, we're mean very place on sometime We in so interact company, more. towards certain interaction And this at working as start the point, we're -- sit company second the that that should really teams through both having But quarter. we're set and

our forth, to that's workflow assets little take to and being look but into really When X running be so very integrate rigs running running They're Permian the X, a those and and start bit rigs Callon we're XX we'll to XX comfortable year. this you out forward our rigs, able going look those operations, schedules time. at of with we'll and and our

assets outstanding you to jump and we're delivering as what Midland we're anxious in And results. Basin. in Delaware So doing on the their addition Delaware been we've our know, to

Our Research. Bob with next question comes Bernstein Brackett from

right. All

Bob for think I that's Brackett?

go. Yes, you're good to Bob,

Excellent.

when you're X-part and with to finished. of of setting kind what Following expectations a up with might question Alaska, do you be trying program this around

have you're ice a to seismic looks trying of test of do, the In that April, a to this then? anything is maybe like be some more off kind fair? get stratigraphic terms Is have like what done some you results it control. And therefore, and by VSP and to it looks you than of might guys and end

simultaneously actually winter Bob, well. the you get on to pretty drilling And know, rigs have X of kind we'll ready and are Yes, quickly. window, started the we limited as first getting you're with

So get X we to wells anticipate able breakup. do prior being to down

stratigraphic are these And tests?

Yes.

-- You've seismic few fully a say Tracey supported. control. got I they're but mean, can And got words, good you've

about good feel is we it but them, So exploration.

with Our comes Charles Rice. Johnson next question from Meade

rest not workover first left could on not not off, my up, of that? Is to limited But be Steve, Tracey you X team option understand is first of the the might XX an able there. you're John, I pick more in get words, the workover you, other months. want a more think John, X question, where Egypt saying APA that -- you there I right, in was to of there. kind couple that months, and In get is for questions I about a -- a rigs time frame that you X maybe rigs. to

items is at bring of a the debottleneck your rigs? work offload And tubing other then of possibility? So is to on or try some a you in possibility workover some to look -- aspect that wireline that the that you your there is could system, coiled

Charles, I'd real -- say, there's not a options. things like we've short several exploring. of all, into But are takes And any been time. the avenues country getting and and explored there equipment obviously, Egypt term, first just

near-term just and workover a to be right rigs -- happy XX options, we we we have. this to at we're the something And if we're now, don't any find talk that we'd so limited it's real solution. have point, But later about currently

to Alaska. saw of -- I it. I there that back lookalikes. being read the Got test that And And the in partners going then as to to Pika appreciate you're I referred Pika Santos it. 'XX. that X it. prospects FID went development Got your

Pika lookalikes? agree can you for that details you with just some is up what who of to speed us What are characterization? coming you offer those learning this, are a and So if Pika -- curious, prospects I that -- I'm I'm guess means? would agree, on And that -- about the

it and with on that. that, would versus exploring play we're like really exploring at Prudhoe agree Pika Tracey. is types We're more that and Thanks, Willow that And I'll we're Charles. in looking one. Brookian of Yes, for, the to explored that younger part see I Prudhoe to for in side we're just Bay. on play east sequence, bit weigh Sure. other the basically it than Bay. of setup geologic same that a model exploring expect of for but absolutely further it's a the but been and going we sort it's be

So agree that. would we with

comes question with Paul next Our from Cheng Scotiabank.

and Tracey, apologize. John happy to

can if Alaska. go First, we to back

Let's next kind assume the is program What's the that? is you to step? And on time that what infrastructure for to need successful. what of be the grow? put on And order in to line able

Yes.

all, question. the exploration First just in for I'll of we're Paul, thanks this at point. say phase the

things scoping. So It's lot a state than there. quicker can move done we've so land, federal onshore, it's little a of

big see the through and what date. close capacity. go phase, But from exploration there find work at You're to a let's later we then pipeline

but -- we're So excited about it.

But share infrastructure it been is if type needing can successful? you that we've maybe of -- what

of would tests will that separate on, are play hinge of concepts. we on that a of found. lot lot these similar a just Well, And X hinge what

at point, in to hope exploration So success we're there purely have have. give come characterization you if have we this and just that we we'll back phase. And the an we some

the that's your that? be something just that of to what workover and that, issue Egypt, available? in in rest the happen, I I And substantially that Or country no the that's for year? case need curious is to that, used just led just workover that see. rig then, longer something that own the is John, On have happening if happened increased last availability available the

-- I more XX rigs. We up to Yes. to rigs able to the just to would only workover workover XX. count and drilling rig running were XX, to historically, X took were and the we Xx up go you pre-modernization, if running count say, we we back than XX rig are take

got on sure they could side, to we the drilling side. to drilling the the ultimately, we the because on the managing we only drilling that required efficiencies so the -- wells. complete we're we out the problem out efficiencies were trying But got tripled when make major rigs And base. a So get initially, we've as drilling it workover lined And set. the lined were double to wasn't

just we're a more So country. something term, ultimately it's -- fix need workover there's to equipment it's good phenomenon. to in going short-term a it's longer And just And that new that. not

comes Sachs. question with next Mehta from Our Neil Goldman

Yes.

Suriname. talk But know First just picture, you're focused as here. John, you as to through we you're the where we in relates about are big on working relates any Maybe Suriname step we've back, question I an and on could it XXXX. And FEED got you had stand project? what targeting was that to it study updates FID and that

first all, of thanks the question. Neil, for

great 'XX, exactly news. laid Total. sit this we And which that's first which today. this to of that's partner But year, Secondly, I in tell where in before line our where study. we would you, say kind FEED us working But and with to are is can lines. oil right time try we a accelerate those at hard out now, We've year-end, we then time of We're as They're 'XX. there are point. that working is anticipate an FID

excited. the got do of in most exploration now, the we first We of potential XX. Block see forward. move So remain we've additional development But project kind in attention right on the

of And about the haven't we then the course year. production the U.S. profile talked really in over the follow-up, Q&A

Just Permian about strong exit. exit like be with plans. a maybe growth half sounds to your going talk to weighted little back bit it's It

in weakness, and local prices on too. Permian there, obviously, thoughts gas any navigating just the So oil

weighted had becomes number back very running And in rigs, pad -- X is sequences. outperformance kind a your it many of X and on yes, run the a Neil, years we've dominated which what wells very to quarter of really in we've number of when done, you're and good the And year. schedule Permian. works. terms coming then second timing third early we this with of have the are Things way a your don't of

decline you'll in 'XX. oil XX%, We're side. that's growth on going more anticipating Sea. And QX 'XX the offset so up Permian strong to the And see over the than North

going So Permian. to our continue lean backbone, to we're be on and underpin continues to

Instructions] Arun next comes JPMorgan Securities. [Operator with from question Jayaram Our

you working Egypt. update you I situation an trends of have to situation could in stand terms and been improvement if ARO capital could payment see in government? Egyptian an wanted first on the provide you in with We about did But the quarter. the where in collection maybe Steve, how the see talk the

Yes, quarter. of about times you as number talked since this know, Arun, we've a every

Fourth fourth Egypt, we ended ongoing constructive a the very have it end EGPC. year quarter require for conversation with from with that receivables but quarter active We does lowest and and quarter, our the relationship due of issue. working past work

make And progress. XX% to where through that about so second peak we we come down quarter. kind They've below we're peaked level. to year. XX% of in were They at early Today, the continue

elevated, trending they're been and still pretty receivables So the past the whole still but elevated they're year. EGPC, in from much right have through due lower direction,

wanted I go a Great to hear. -- -- want bit And if is impact about understand to I go Steve, abandonment talk my to to more could And cost Slide follow-up deck. flow. the in just little you XX the to about cash

were incurred for costs year $XXX the million. Your

of Most total Your $XXX is delta capital million. to is ARO. the upstream

in for an outflow million years? XQ, in XXXX, have for rate a several mentioned $XX you what million, call $XXX it, did And for good ARO? So all you is next maybe run the that,

So talking about Fieldwood? for the ARO you're

Yes, sir. Slightly...

obligation the there. there. the through capital on a there's decommissioning go booked liability not program does -- It's that So

so doesn't doesn't program, capital go that through as expenditure. it And up show capital the

Right.

magnitude quarter. costs Were ARO but outflows incurred, -- with in $XXX or you of million looking quantify any the the associated could were there -- maybe which at I'm XXXX? So the outflows in

the of just -- instead can I'll get you. Gary reconciling to through maybe touch just to back work here. through. in take understand make sure Can question. with group work We offline with we Yes. that could we we want I the

Okay. Fair Thanks, enough. Steve.

[Operator next ROTH Our MKM. Instructions] comes from with Leo question Mariani

discussion to wanted to back the of Just kind get exploration here.

And helpful. most could see some mean profile you shots, risk Just to X wells Block kind X Suriname, more in in X of block. risk the little profile on of wanted do in relinquished kind could these of the color a XX then of just of as quantify in X? if guys on Just do that like looks you kind you be I it anything provide would to you Alaska. bit see

Just any there. thinking the update on

to jump first. I'll Leo, Yes, Suriname

been XX Block think Block clear upside XX. see exploration remaining in more that I we've versus pretty we

an was step you're let and on to to you where Alaska, there's going go. an And amplitude is ahead a risk go XD are the with When area but out look this -- in so associated XX it. supported, easy and at it answer risk be profile these

exploration. is but on I'm give going high -- drill to And wells. not We're are a it but going ratio, risky, So they to taking you X they're we're number a reward.

I and add know, want Tracey, you -- So to to don't that? anything

a little which the XX both just I pieces, Yes, on think, I'll is on comment, exit. Block

the mentioned that in previous XX we I think we saw the being call as than we Block on more -- prospectivity saw really we Block XX. saw in what prospective

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Thank you. turn at I'm time. CEO, showing further this it back John Christmann, closing for questions no I now would to to remarks. like

Thank Yes. you.

the reduce price flat this our while strategic still roughly year production potential a initiatives. to our given funding and We capital commodity lower for have environment maintain chosen

we assets an directed operations performing look more in Thank plays. And level. exploration Callon our you high the up progress as our and operator. We integrating extremely well. to have date at our lastly, we forward capital the on other which And will Suriname keep to Permian, intentionally towards you, is into Permian

today's concludes call. conference for This Thank participating. you

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