Comstock Resources (CRK) 3 Nov 212021 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q3 2021 Comstock Resources, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. now today, hand Mr. would to conference I speaker your Instructions] like the to over [Operator Jay Chairman Allison, and CEO. The floor is yours.

quarter you, the I want a statements in gas business, Thank Bakken in to time to way. have Thank everyone. in actual our the little great we XXXX a properties aware $XXX from and before you. weeks. quarter natural in that current our million, rainy What in Frisco, results. a Texas. clarifying those those we it's on the guess couple for contract here, production is XXXX. especially third which of be pre-announced winter for wells With [indiscernible] start appear the coming our most net first It's strong did outside expected under coming Haynesville. would bring of gas. volumes you're this the forward The X.X completion increased to activity wells the of, into in accelerate of natural will that closing really We Haynesville year, I

of in Now, Haynesville, a to to direction the focus about to The good capital Comstock the I company. on efficiency be talk of direction generation continue flow. time and of it'd free thought cash is the

goals in several bonds next we May off cash want flow of our to then, quarters, to met, the over X.X dividend. use XXXX, Specifically, our pay retire to to credit plan we that reduction debt the free establish facility, shareholder with and

and conference I Comstock third I to to want that results Resources opening back, call. statement, financial XXXX welcome So, want now go to with quarter everybody operating

our Finance our Relations. And Ron of Comstock. of at our Mills, entitled There, Officer find this the and a Officer; and call Harrison VP www.comstockresources.com Dan am Investor our XXXX Chief view Roland slide Executive presentation or Burns, me with quarterly can presentation Operating Chief results Allison, by going Quarter Officer, a Chief President and I after to website Results. You presentations. is Third you'll Financial downloading Jay and during

over, and Slide please the flip forward-looking our Now laws. presentations statements refer if specialists in our securities X of that to meaning you'll today will within include note

there While such assurance to we expectations no be such that be reasonable, believe expectations prove be will correct. statements could to to the

million. Now paying the highlights. highlights, free we Slide this cover a on X. cash the free quarter In highlights X, $XXX preferred the to XXXX third our increasing is of generated We of dividends year-to-date third flow flow $XX Slide after quarter, cash third million the quarter generation

annual we exceed outlook expect natural prices, Given generation million. significantly the strong our to flow now goal gas over for original free of cash $XXX

quarter net $XX the we reported per million diluted or share. of income For adjusted $X.XX

MMcfe Our losses to realized X.XXX production XX% the day, Revenues and XX% increased increased in per gas. hedging natural including to XX% million. $XXX was quarter

quarter the million. we Our $XXX Bakken $XXX XXX% was $X.XX grew $XXX quarter again, by the the our cash And adjusted cents in million. [ph] properties or diluted EBITDAX share. to for per of for Operating third sale announced flow million,

We in weeks. close expect divestiture next the several the to

initiate proceeds wells within minute, under the those of gas completion recently accelerate the this we production drilled which from that also from MiQ been natural methane his in net with Dan will that production, certification X.X year. with to engaged have will presentation. wells, by And of completion We our completed cover portion next go Dan uncompleted formal of the started of January operations sale winter are stronger using year-end standard. a now independent We've the over to pricing. benefit of a to MiQ

and on Slide recently selling XXX properties Bakken sell gas Bakken we our assets, our cover Northern announced that to the oil to non-operated X, If you flip to We shale for we're X. $XXX Slide announcement feet in million XX.X natural billion interest reserves cubic assets June or of XX.X gas. totaled associated barrels properties well The XX.X and the sold bores. of with oil, net include probe the XX, million.

We now XXXX over it in CFO expect the Roland financial Burns, cover third our close quarter several next turn results. to to to weeks. the I'll transaction Roland?

X, our strong quarter prices. the which and Slide production On increase financial by combined Jay. we with improved driven substantial is gas Thanks, for had We summarize a XXXX. results XX% of very oil third quarter, that

higher Our than XXX XXXX, quarter of it's than XXX,XXX Bcf we what quarter of gas, of this was That production oil. the natural third of and X% the the producing quarter year. totaled higher in barrels second third were in XX%

gas realized million $XXX sales, quarter. hedges increased and third we by oil losses including from in the to our that the Our XX%

average oil prices the price $X.XX Our after per our hedges. quarter gas impact our $XX.XX, Mcfe that's average of and in the

Our realized year. hedged was price gas higher the last the in quarter quarter natural than XX% third

prices the that Our reflecting from we quarter, realized. production production also up costs higher were production in higher taxes resulting the XX% level, stronger with the combined

depletion gas third flow higher was same report contracts per and of unusual to or all sales Oil were XXX.X than down of diluted share. first losses futures depreciation, amortization in is quarter. results XXXX. the million, net $XXX nine nine gas Production our XXX% was or income months the year. On for actually large the last $X.XX from year. mark of XX% the $X.XX prices effect And since though a which including end a the losses higher the at due the XX% this market $XXX stronger the Oil averaged oil the unrealized of EBITDAX in generated $XX.X X, summarize our of profit on XX% million, that $XXX came But is of per second months excluding was than quarter Adjusted Slide share. to $XX.XX and we X% last million, of the XXX% period that price That's and $XXX at Bcfe, we first hedging realized Adjusted that billion, the quarter XXXX. for the operating same $X.X per hedge of XXXX. our has and quarter XX% surge the than our of We certain loss and this at million hedges, realized hedging very resulted net including XX% the prices gas flow barrel, natural in cash increased increased items $XXX was those to than million per were G&A other that MCF, for million. in XX% XXXX. Adjusted higher was averaged up $X.XX Operating our And period the period Our higher both from million. loss quarter. year. XX%. higher in did EBITDAX than third was $XXX cash and

excluding items $X.XX and Adjusted net two the first of income For was and and X, hedging loss, unrealized large profit charge On debt other related loss per did we $XXX refinancing retirement to million to debt program. contracts, market million the was June losses a this our per our mark items, or of nine we $X.XX transactions. this month and diluted charge the early year, $XXX report share. or March Again, early Slide hedged the for due and hedging to unusual for share. a retirement cover

our to hedged, volumes gas third the per the from our that price $X.XX $X.XX we quarter, did did per production. gas we During our MCF reduce from MCF, which of XX% have selling realized realized

barrel, our price oil had the hedged, we which to volumes per $XX.XX XX% reduced received. our of also versus $XX.XX We that oil that

Our quarter realized $XXX were hedging million. losses in the

the For of quarter. collars, expected are the price day, then XX% our XXX covering year, we natural of a us higher and have XX% fourth remainder also XX% cubic hedges in production to which the about those feet gas are of gives hedges exposure the which million prices. is swaps,

for those are half hedged. and collars, the are swaps, had average that we XX% next collars. approximately report, hedges the weighted more are our out For of XX% $X.XX. want give second XX we've expected those to which in have they and a a gas higher of exposure prices next since production. point year. year, than also we're production million $X XX that wide I us new And contracts only XX% to of were of hedge form floor added seeing ceiling the a of had our They But covering day quarter

the not of hedge this So us we or that have they these under saying, do morning requirement but out production positions to some you comments seen credit help bank have the might of as our money that achieve are our the XX% facility.

away Now our that to leverage going as falls requirement is melt two. below

as our volumes. order X.X% mainly had And, X, activity the natural were we of nearby. about quarter costs second So, older as offset activity year, own that due third the gas the third operators. XX track leverage and detail our of to be during the Mcfe. for to both X, no protect this had, X.X% we we production The quarter. or next our Slide million hedge high On in summarize necessary our we shut-in level Slide well shut-ins longer quarter, in the a to a the We achieve day our when during new for quarter. wells really operating compared we completion activity required shut-in to that's we goals

quarter quarter, rate. we third for the the due quarter. higher coming than averaged sales was taxes to Our second higher oil production in had operating $X.XX This higher and $X.XX increase the gas cost the from mostly

[indiscernible] Haynesville end year. at Mcfe the of the $XXX level for debt with X.X our million and and next rest the the senior overhead from now expect averaged give in over drawn sale capital get other senior or if and in quarter. our produced, and Haynesville which XX, $XXX Our on than third Mcfe XXXX. operating the far We of expenditures. October our the due we over Mcfe. a free XX.X to second recap base, under of $X.XX have to steady facility times substantial credit borrowing quarter, standalone of our so new our we reduction XX that plan, of $XXX the On field billion. sales development million XX per we two in $X.XX, the May that both leverage had billion shows retire XXXX, million due our $X.XX, The We third balance turned fallen $X.XX of or financial $X.X per improvement senior just Slide a the net improving corporate remained notes Jay X.X% Slide costs and higher right $X.XX X.X% $XXX of outstanding comparable the expect the in the of bank and and cost cash quarter end spent our down this X% XX, X% DD&A in we the third quarter to $X.XX our XX, reaffirmed at in this quarter. grown in our rates. notes Bakken the net below production and during our in to per Mcfe second G&A the costs flow see We $X $X.X activities, proceeds to detail wells, growth cash Slide comprised to a times, XXXX, a were to X.XX% billion our has gathering we we you'd XX, of to kind senior rate properties. group due basis. had fairly XX.X to generating. the sheet quarter, costs balance billion the that we we on notes was the that the the Slide third mentioned, of cash were quarter. taxes flow X% now of quarter. million our our use On we $X.XX liquidity third and quarter. bonds quarter, wells to look quarter XX notes of X.X on currently $XXX we're in operated on about has in And operated averaged drilled million Proceeding revolving at And at our the to new third pay the In EBITDAX $X.XX and free our next averaged in the At quarters together We ratio, shale further further driving recap XXXX. end then cost is the the as

non-operated on other about and development spent also $XX activity. We million activity

drilling million that and rest to to rigs for spent addition leasing year, $XXX new We're running which drilling on In level also up to acceleration The for budget our on X.X to program. wells. remain XX.X, $XXX increased exploratory an activity turning is to we $X sales. the program, this drilled wells, funding from additional XX.X net spending currently these plan uncompleted million allows operated operated but Based completion any include our the this of wells to at the our activity operated not was early earlier operating XXXX. activity of then our XXXX related would million, of until versus net to wells us Accelerating for to on months completion going plan we year. bring prior acreage. on begin five we between net wells current where development spend expect these our several Haynesville And this January on schedule,

funded of of $XXX our from part the So, proceeds with this million the been properties. divestiture has Bakken

of significantly flow we as accelerate incremental significant million excited to ratio on proceeds and our look very going cash verge the of now focused into free flow And of to from right Bakken for is generating delevering sale level debt on also we our year. getting also the at $XXX our company, be the original this think gas anticipate I'll level. with target the cash prices, flow this leverage down the Dan, over remain We the generation turn are that that plans. to that's kind free cash And year report to be now to free a level and we XXXX. to it those, for a will in used exceeding we're having and quarter. of right for able operations accomplishing to current That on

this Slide outlined our area on activity. a recent of for Over map XX, is well Roland. the you, showing Thank most

that day million that million a five IP running feet completed have feet. lengths drilled X,XXX XX,XXX high on additional a wells XX call. completion. to XX have lateral last waiting new the are activity up a of a average of million to being wells our We three have day and from since currently XX range levels, length X,XXX a XX with drilled currently crews. at that The IP wells the feet, were rigs range wells We time day average up XX with frac tested These rate. from our that On been we're rates lateral

the updated long benchmark activity These Slide for were to end Our year, our at steady will our cost remain of decrease drilled than Over with trend X,XXX lengths. we on through all XX, the these greater is that DUCs year-end. of number the further levels include the D&C expect foot wells. while laterals our lateral by lateral

$X,XXX quarter, than For the second third foot quarter, our total the D&C remained to XXXX as X% higher our year flat a cost. and at full compared D&C

X% was below in drilling increased third but prices to XXXX. compared lower The during to X% efficiency in decrease resulted to lengths quarter to drilled of quarter, decrease was by quarter in cost rising to a quarter. average slight The second drilling completion Our the we quarter costs a slightly quarter $XXX efficiency experienced completion that the the due our quarter drilling to able higher a XX% quarter. attributable our from lateral lower the in achieve increase mainly the foot and costs third third drilling we to Conversely, had pipe costs.

of a prices service increase during experienced third quarter, the in As rapid commodity result we some the increase have cost. in already

being we same Haynesville service demand to the we we the partially increase completed. first Looking are average in the on cased to were ahead two efficiencies in both these next costs formation the and year, laterals these drilling service foot Those wells in laterals. and is offset cost September, In cemented pad, to increase increases. XX,XXX currently quarter fourth which and a the the to plan as by drilled, drilled believe basin. anticipate XX% longer early an We successfully laterals higher

of to turn expect sales foot We're formation. process We drilling to laterals have also mid-December. XX,XXX the in two these by wells Bossier in additional the

oversee quarter natural during Louisiana of to We in cover expect Slide gas year-end natural responsibly before is Jay, partners. with the our initiate this will the the North to the will commence up On methane first-half and Haynesville strict that we end drilling is for certification This the MiQ we commitment of process. our gas solutions as our achieve of recent shale standards. us and for first The to to Bossier agreement anticipate and BCF X outlook and be turn certification our back Responsible our ourselves will the by under be I It of to MiQ to wide XXXX. methane standard. from natural independent production our gas production, demonstrates finished completed it will will initiative Texas energy under third-party of production a will will production. differentiated deliver our gas of gas wells over audited to the and third-party of for East we natural This day the company which emissions summarize of year certification will made environmental during sourced these our also to produce gas process the an allow assessment our now the customers. cover next expected XX, certification MiQ serve year. auditor wells primarily remainder year. produce

a you. to cover to what we produce this thank all we the the right, our middle of of said, certification, Dan, year. gas All X kind then and hope next BCF Dan partners, reiterate that's by and Again,

step cautious a for good I think We're do before that's great cost. So they'll reasonable a MiQ. job think hired at we big us. a We

'XX like, years. years, would and XXXX 'XX looks can XXXX, fourth like. the at 'XX, were And really the XX, the COVID look a and and particularly XXXX consolidation year, delevering the of quarter about that's was excited I about you, just if Page So look XXXX, outlook. we're you on what quarter kind what this tell is

on focus said, to is being by as on cash inventory free held a production. drilling extensive X% strong this XX of creating balance have we sheet, Just this acreage Roland focus thankful flow of

I think Dan good really, job. and really his group have done a

continue the to remainder summarize of like We you be to we the I'd Slide But low XX, to direct for a operator. our outlook year. stock

to original you, provide generate And free this currently to $XXX cash XX%. is exceed lower focus is to the most in of significantly flow million flow importantly, reduce as production Our track The our free which for and growth primary excess sheet, anticipated. $XXX leverage, on year, told to in capital. year our our cost operating plan, of We're million close cash what this balance target an well. probably we expected improve

March Our our cost payments, have the is with our reduced the being and refinancing capital June interest transactions flow million free of annual cash reduce savings used to $XX debt. and

improving further leverage XXXX. drilling already on upon from times has current of and industry Our at generates best the of returns. leading outlook, in plan our industry returns X.X remain improving to our ratio With low program X.X and the America. then low improved anticipate less maintaining our leverage we some focused We leading the end quarter, cost ratio down in in times X.X in XXXX. And drilling our drilling highest based the than Haynesville of times structure class to our structure, well North and price cost all

locations environmental drilling recent stewardship to inventory. demonstrated as our of Our the We'll responsible us large inventory certify with focus partnership Haynesville/Bossier decades with our our with MiQ our drilling and greenhouse on have emissions lowering gas source. also in provide gas

a now dollars right of billion liquidity over liquidity. strong very have We

with I'll Ron? that, for remaining to three months. guidance Ron, over you turn So the some to it give

quarter, is for three XX, our On we last which Jay. Slide the months. guidance just Thanks, fourth the provide

versus sale expect capital, of that Bcfe to benefit anticipated are mentioned spending close the those minus sometime average to a the January, Bakken at is portion five $XXX net side, sales of and or current mid-November. the the the in the acceleration of million, million related of to be Development February, order X.XX Bakken X.X online sometime the March That to XX% our in We're over and timeframe. completions is the anticipates expected the production all to acceleration XX around as that'll five budget end remaining this from or production rigs that fund be original including $XXX to now year. X.XX DUC of the impact per the pricing. to of remainder winter day, DUCs using proceeds budget the which late-December the in incorporates gas at rigs to For we between plus stronger and

Gathering, which guidance rate from is as and the our on We the from also million costs are annual $X.XX the I'll anticipate we'll a our the spending of DD&A expected costs prices. leasing to $X analysts $X.XX, average expected $X.XX to ad questions gas over are average unchanged related is to The remain G&A valorem from of all company. $X.XX, and to $X guidance in operator, taxes $X basis turn which cover higher to in the the $X.XX is guidance to to expected up that million of now $X.XX impact $X.XX. $X.XX, another down take quarter fourth oil to $X.XX the $X.XX. to of is who to transportation is $X.XX prior range. of prior the on call activities. to unit $X.XX LOE and cash to $X.XX and back production to

the [Operator Instructions] from Whitfield question Derrick of line Your comes first from Stifel.

is line open. Your now

With morning, XXXX. your all. focus outlook good revised XXXX and wanted first to for I and my on capital plan early Thanks, question,

maintain Following CapEx activity higher the XXXX divestiture the based headed concern DUC announcement, plan. would the XXXX additional Comstock added and investor some a Bakken into there that think was trajectory, I on to

that With how this think approach got not about at into we time, directionally we the should understanding XXXX? you're activity as XXXX formally

probably going of we're kind growth. X% have guidance X% think, net, But I to haven't That's we goal. our to XXXX. net, given year-over-year for a net,

got the gas see mean, I We prices into like. what haven't look to are. natural back we budget where would

to to use off there. we're we're have not we're establish that good shape bonds, the try our try now. pay down is flow pay X% so We're then we're going think, shareholder going company, I what we cash to in not again, of and We're wreck guidance. our X% dividend. our This overly to not the out and going to But going to party. X.X% put hedged, to free to And have do, facility, direction a growth. bank any right goal

bigger Thanks, item with just my the I'll you Jay. on that And closed there. picture for follow-up, actually focus

model your flow And dividend we be in for free of EBITDA 'XX it noted As models would X.X prepared of of color achieve remarks, Any cash project greatly free safe capital. strip, cash appreciated? plus material XX% our offer yields assume would and at of the or be profile fixed potential to you'll next flow see leverage range debt variable dividend really return you net year, on in with targeted return share we your options and while dividend 'XX, we return modest on between preference buyback? the you capital capital to your could take would a form for

again, think a to used have I dividend. Well, we

that or you It's dividend. been dividend long, we had would you the you that XXXX. We and back balance had location, if our company. variable the a had the forecast sheet, you then, the had in of you we that reinstate had so believe with say, cost Let's even yielding shouldn't consistent you could years region, low be geographic pretty four commodity prices, a growth and next dividend the three, two

the to leverage what what the these do really and to process I some think the horse, the that are to we do So, there's be again, be get going ratios. budget the we're that don't we sure want inflation. we And carpet going think to we have, cost want for we with have we make get

think that. we XXXX. of flow I beat cash said kind that free we're million like $XXX going materially to And leverage in X.X in ratio, we think we're

the we're to debt point, all for now be cash And a were due you undrawn. go And hopefully they going in that It's us, do because when to we means that get got $X.X down were have and the we've XXXX, of have of again, balance those cultivate will and bit years, cash. two that it XXXX, RBL, think have completely beat to and to on your sheet, years, we've back to that's be the paid what in years be year. leverage we XXXX. which is, rid our were billion will just ratio, the we'll going line and XXXX, say, they bought going I COVID why consolidation to the X.X got we're to quite what

key DUCs you production So that you 'XX latter think bringing a And production our I from part to the it's XXXX. again, the little to growth. of bit over is of includes do the just growth, forward because need that of

bit So confidence I'm more? doing the any to you'll bush didn't some we a there, and pump see a feel that I little you give a there. higher production not going about beat what Does since around guidance. do give we're to or need

suffice. Jay, I think that's

But flow yield take look off be I how debt. we would to you would chip certainly, are there's debt. free guys above in with think markets away great the the required what form. to clearly, time a amount clarity I pay left that and time for position. of beyond over the cash tremendous a certainly And some And have think would

thanks helpful. that's So very And time. for your

you're into, cash and and money. board there. and to it's money be that have shareholders again, our just solved cetera. money, millions leaning a and your good all cash And of by because into mean, We're and hundreds We've we the flow going et free meeting, know I stewards I we're Yeah. to day liquidity, leaning same and hundreds we what can thing. hundreds that have

Okay.

Jay. Thanks,

ahead. comes of next line Your question Please Austin the from Aucoin go from Rice. Johnson

Good to morning all.

your you X the below volumes? times. current and hedging XXXX leverage there volumes, XXXX forecast to on lead hedged hedged for Are Or get is will XX% in we to book? satisfied that up you're anything Now ratio more with expect all

'XX. 'XX. in hedge. goals satisfied for out But our mean, there - typical our Yeah, next kind we're the hedged to to very for with accomplished get XX-months really We're we've XX - not I just of

are prices wide out and I next like yeah, year. we've we finished gas up because that, going with So to pointed collars, believe be strong very we do

But at I percentage lot to for so, mean, it And accomplish lighter the high the And, need goes a as like that we we in be leverage goals, we percentages, we expect hedging really, that our structure. forward. going away. hedge

With have a we But that we're overly hedge Roland hedge. it's not wish you any comfortable comfortable based much are seen in think of period. hedge, for Everybody's said, upon banks accomplish didn't as our with with We years, not we goal. think With now plan process our that probably to the peers. we've But it. it. I that put more hedges, amount the didn't

status going So right to keep quo we're it now.

Thank you expect to XX% you said in or due about in And the costs labor, steel or wondered mainly to that is, that color. all is bottleneck? inflation. follow-up for my service that see I just is you

Yeah, this the think have I came an today. article do that and believe nots correct. I And to is out have there's about going be

small four number you're time, low so We our producer, up we've I our that pot, bit. or bit. go not going XXXX a that think to But, that there, cost costs going cost that a five been up if price. maybe is go so think to think and you budget have rigs and going in time exorbitant Comstock drilling little our I still pipe for to hard a our They've inflation or if long. up are I you're internally. worked busy out little that at is And will operator rigs larger XX% a a number keep go you're going overall think you're getting a like a to time have getting hard three, are

inflation pretty got numbers allude numbers. to that's look And might number at a XX% So the to CapEx big we've in in of kind a we numbers that of we what run. kind factor inflation XXXX, those

more So, that? on comment Dan, to you want

nail Yeah, I think head. you hit the the on

frac some pretty out in our programs, going think, be rigs, don't I of the think operators year. big on the good through for of next smaller We're and pipe, being really pipe, quarter securing primarily, to out second things. challenged securing there crews, have that they three those securing I secure are shape

or to ease steel of year. next rig into increase overall we're a middle We daily we're the of has We make think next right up pretty good services feel I'd to-date We going the rates, that'll completing prices. probably we have the say next still see the spread where is across in we've you that's XX%, I now these pipe average that at We're some And, seen we'll going largest seen, XX% by year. up that think when wells, more are increases, up first when versus drilling rates year. increasing board be say But the year. on all now percentage been the right increase know of number. the XX%

barometer good different because too, use use companies. pretty we We're different three a companies. fracking of drilling couple We

It just smorgasbord a bad. we have that of have good after, year consistent completion can not after, to and or companies of low we're be one helped company. our us But costs. connected year So drilling year kind a do year after, achieve

partners midstream like some as midstream. the eager producer I more that Haynesville we're got think to We've members looking would proximity that And do takeaway to the play a are going LNG business they're way that do us with business to team several with them. same close with pure be facilities us. at future in to

the capacity can lock Gulf. we takeaway to up So

I the me. That's for appreciate all color.

you. Thank

The from is next Truist. from Donnes question Bertrand

is line open. Your now

Good morning, guys.

their right load choke line up each there's of accelerating of before company? maybe that this, reoccurring management? announcement winter. think that those With guys the turning of Is for some thing it Some into to a do something the done you the the Northeast room end with of we Or maybe be schedule could have where year. they of if kind about should just for you the turning lines year the

have keep to we the We trying service do to services going especially type This our didn't match But control not. or I is cost of busier being year going forward, kind want activity companies to our activity to have what caught consistent frac if the - of we matches that up. given think create activity. be plan. that of have as so we I get can to of our much versus level of drilling a forward, - we think, consistent going it's more level the that services

that. add might you to Dan, So

XX And just one-time definition kind your DUC a are behind year. next We think come the than year, a crews frac any of really throughout really, just behind, a coming some get schedule don't in way crews the level. crews the event. But the single question. five in between demand. we're going cadence. made forward. normal can crews DUC. caught gets see busy to that Yeah, that really up challenging, a gaps, of drop have important frac we kind high of us really of add really that up, to Normal under when in your point, I DUCs, your under good when you and have going things heart have so these got to I'd we'll always to and get digit really they're XX building of into see crews This rigs just say minimal as maintain to acceleration to don't this when be been the be DUCs kind times get high carrying We've of caught Roland that this, And cadence it's going higher or like that DUCs.

Haynesville. our then, look you have footprint we a I some on there in if the bigger acreage, at think the don't be big takeaway issues People footprint. could have And

got we So out. a our production spread run that We've front takeaway.

fracking we for we plus another months in have XXXX, have. half four the drilling a And and that had we remember that's went rigs DUCs think well reason two I wells. without we a and probably the

on XXXX had at up never So, you compounds in just we going the XXXX, the we XXXX, five of end over what got get look rigs DUCs. so kind the caught we into to like of

that then to can? follow-up, target Can locations just And lateral leasing want to trying maybe do maybe guys about the you I incremental up that and guys. longer that necessarily know you already Or not going Is target good, That's of too? you're longer the acreage just the budget laterals. really core is swaps? saving, it, you to your part that you worth willingness are you just have, your when talk

our is So just better. to way so this some driver certainly from drill Dan. affect It'll five trades, Ks XXKs, much you When long efficiencies. really returns maybe is better are the the but a of

Your efficiencies are better.

Your cost per down. foot comes

to just a is from XX. this to XX extension really, natural so go And

in buckets that's of the Louisiana, on Now, got you the three Louisiana kind side.

it's You in got more one section or sections. section have of and I footers. Texas, a XX three half and a we'll random. XX,XXX mean, little the some But or

and and I more little pretty random just we between going of just two Like of these, drilling We're to really next said, drill more a - it's good to going we've went and kind cased we're well. XX lengths more So the that pending of and two. even drilled a feel year, XX. first have it's now about. these kind the They several probably results which 'XX. next We're

to going efficient. combat our and kind service environment cost getting more that's So help down this getting our by costs of

drill any comments them. other some foot make and been to the other inbound XX,XXX, that want the about them public? ability And and do Dan of to complete comments XX,XXX the laterals, you to have on think Any calls you what your

you a The remedy has a out mean, more little completing time issues, different little drilling a run we I money in those issues, to feel a them. lateral. and thing that's different of if XXk, really great So you're some could you into the XX,XXX when foot profile. risk cost laterals it far bit it that about I mean, one a about and

for on right And, curve to So, we're two. going mean, XXk. first we chute, into take I just it's those out better. great only I did to the we of get a think have the those learning But, the we things on job consideration.

that from get tools improve. rely And our better to vendors I on think here. think we obviously, from the we'll I just

gone. the doubt laterals don't there's I foot think to are stay. We're that So here XX,XXX any

have usually you, set most operations they'll in tell Haynesville. records superintendent, We of our in the the we all dialed so

right, Dan? think I that's

Correct. A lot of the records.

a records. You lot of said

has don't tag. again, least anybody's of we have, or So think I wells these than somebody more at drilled that completed taken

don't we we that that it read And it. to We again, how the read don't So write it part out to figure intensely. of then we know, most do book it.

me, Well, for guys. that That's sounds good. all

you. Thank

from Mariani is Next Instructions] Leo from KeyBanc. [Operator

You may question. ask your

some correctly, want quite just behind to color that. out I third guys activity it bit looks activity. guys. expecting fourth I in XQ. roughly guess about to CapEx If was I just a Hey, like quarter is as the same of ask quarter. the for are was down it I field you saw in sort in this go looking

an partnership. five less. for properties running those two really is but think working we're interest are I activity have Jones the in, a working say would lot the rigs, do We of with

drilling the own activity running the And account. of quarter rigs the given completion for - So number fourth less is actually activity in our a lot

be the quarter And brought XX then, the Leo quarter. on we on fourth our closer to in net and wells, to completions, turn XX third during sales to that's about going

So, it's a lot lower activity quarter.

some quarter. rigs some you timing maybe differences well Okay. running and I it thought and working crews each five three same like as But I perhaps guys guess, the sounds there into they're were on interest the payments.

than account average I quarter. for that significant mean own Even the our for again, will less X I Yeah. the think a crews

Closer half crews. to two, a two and

here And to then bit. touch wanted helpful. that's just little taxes Okay, I a base on

in some can current quarter. XXXX. year? numbers maybe the taxes creep we it into started in kind your have as you this one-time expectations you environment understand had price to for see cash But what tax kind speak are I we payments So looks might cash some to third of of like in commodity to here overall in get the next

And not had increase to no taxes Yeah, that's we've that all there all. state put, - we taxes we if cash tax of But do an were out payments, federal. the current at payments provision. went

taxes the highly market very large And losses, which so, mark quarter by I to the unusual think influenced creates were this items. some

losses, the we have same and start of and can't under stuff before we to show probably just have cash Reality But of be mean match You're our forecast the accounting cumulative those rules. we yeah, high we'll federal utilization that forecast is utilize NOLs, forecasting, accounting still profits profit under NOLs not able big the taxes. kind even overall, out is several years level of the the there very rules. to reality. you have some state when able though We taxes. I levels, with But we'll don't

Thanks, guys. Okay.

years, seven, issue or eight of heard haven't six I taxes. Probably the

It's Hope good more good. a a that we thing. pretty XXXX. we of that's in looked So questions I'm error. get glad those

Your Parks from comes Noel Brothers. of Tuohy next the from question line

now is Your line open.

good Hi, morning.

with clean helpful leases, to far dealing couple or was want the assets as over may I we've But operators? you. curious these just you just if some this changing trying have acreage course of have Haynesville hindrance on run a transactions been far the trading, Apologies, as those other up had by as other Just since large earlier. of hands things, I to of fairly touched as year,

of Hey, those working Dan. now. definitely right a this going say would several We big is it's help. got And I to that be

not in really were new deals these instance, we with particular, closed, we're and taken yet. for already talking the one of have effect Some operator. But,

So more I think than that's going a big going benefit to definitely be anyway, forward. hindrance

win-win a it's The both sides. for race that

they they and extend We extend have bank ours. can laterals, group that their acreage, have

a it's two So road. lane definitely

So I think everybody wins on that.

and little was bit standard. that that you back have And on other talk about I Great. as just was that saying that chose have been one. of could you ESG wonder some base if used? particular forth, recall the you as been there interested being who why in I far MiQ vendors your I choice in participating front, a have the

really, went shape our looking potential is they not really really we're mission now. a well right intensity use. And, as going about to course, can of there's really like the have like with it methylene we MiQ, well. all I say, we And, down score is that just emissions. pretty we we - I we lot now, our are now with And, right mean, really intensity mean, good that road, really we just I'd got But we could - ahead in a really the people be feel Yeah, with them. strong partnering standard. of because much They transparency.

they're need some And we things other them. on achieve with going the to us that. So just think, we of to help focus

Great, thanks.

curious, is what for But thing deemed accounting one one related Roland. kind thinking I look this. this to about have know gas of was for I might the any be do you is of and it's like sense Just maybe very RSG? early is had Or if of, just it of In of some anticipate you yet? if other that come that's category of commands realized premium, sort part do wondering part that price? that or revenue? of just Just up a terms

from the there to are and and especially with the have able for. that leakage criticize to and high they us, to then a gas and producers in that I gas certify just allow otherwise assume to you if that responsibly overall theory. goals. you then achieve standards have they that think large And purchaser, achieve basin would contract show accounting industry the that be that them wells, And the the methane those and like realizations. you like, like premium there'll be process high that contract, that's as they here has price overall to volume you equipment, under that the that shown standards, take to pay purchaser, can don't that I gas and buying been environmental - dry then the help achieving kind That's we the want be with we're new what those product we natural willing for. they'll mean, they to a in an we'll to higher might gas directly sourced, buying of into will have ensure standards, for I LNG - really as on that, agree are their purchasers to connect, a enter audit, you'll process credit with

we that's achieving where producers, because we for think us really not people is our and important be product, other these this are I think that can tagged So, dry differentiate the think we with gas why and - standards. other they

important for I get very think, don't premium it's price, achieving we our environmental goals. own even if us a So, very,

X.XX. scoreboard, to environmental and think we do I by I We're the we to such to don't start I we even the to I those in intensity, issues environment. look though, improve scoreboard, we're think Dan press I have put since that think XX% it whatever highest to said, that. this lowered release. XXXX need we for your mean, mean, don't at that if the ESG gas, going to standards, Yeah, low you like as things X.X, that we're good do have the committed flare of But with. much we We are to demonstrate very

wells, base really have make we we I particularly complete Bakken. a don't again, play produce player, just and of that we fortunate mean, to Haynesville drill, any to we're the pure have be the Now, sure after so we leakage. these

welcome these So challenges. we

challenges. I better company we a become will the think for

Thanks Great. lot. a

from question Harrison Your Sandler. is from last Kashy Piper

You may ask her question.

thank my And everyone. morning, taking Good for question. you

Yes, yes.

one. the last You're

Let's save for best last. the

it. You know

Haynesville if talked that earlier just bit. in much trying production to you from And be of Coast? the to bit period what get to dig a Gulf time? little a on do the takeaway general to maybe I might You that little think area wondered another is How I'm ceiling into takeaway could down you about question. over the response longer think Haynesville through the And

Roland?

situated into we the that And fourth than be which probably our have bit to into which specific basin. We well a really whole we this Perryville connected Gulf go more especially indexes. wider our quarter, but a December, we well. real gas will get the hub, we has tied be, situation overall, that a not goal less XX% Gulf. be is and But, because kind have Coast really don't to takeaway, we're our will and than to substantial of our differential hate little takeaway, as to really we only want but And, have on know the of to

that goal to our a we have lot that working get initiatives and So, on that. of zero number is to

focused backstop, prices. sell to can get a we the hubs. Gulf And more at gas we're access direct to premium on regional the So as the

prices ample what comes that know, that ample agreeable units figured we We're category. certain low the cost into you from all and And time, at at It XXXX. takeaway to wells, planning. when asked out can that go drill from? we keep out And XXXX, comes said, you we have we well,

availability, as day far Maybe know. right. there's of Haynesville don't we always the we're a mean, as bigger really So, I

never till you the You know market. test

is That helpful, company you. macro the on Thank level. both the and level

good ground. Haynesville, in thing though, the putting I think the the steel you the as do people progress, years have about

is takeaway XX.X BCF Mexico. I go may the and plus So XX-months call to another from to to think expand the going in we'll two XX.X it to demand, if export years, there maybe XX-days X the be selling to next

provide midterm the the going we think I to is positive need, period.

they're get think Comstock going gas I to Are we partner the with the to good? Gulf. the to

call the Yes. the I'll closing That session. to for back ends over question-and-answer remarks. our you turn

Okay. valuable have everybody thing most thank time. want the Again, for I you to

This you able and through far U.S. needed that other worldwide. was us. largest about et on then needs in and it to a very can play they We're cetera, in be single an fortunate you in we're that sudden, So demand now by get think demand see for to there. for of I spent And with gas of Jones with need It needed the there. the pure Asia, all we planning in global hour they it hear. the Europe, they family, the Haynesville, that the were gas

facilities FIDs those looking LNG, to I years. more are think I think next some the export positive add within several

we I want what direction ago the capital We sorted to do. to we an the the key have want company, efficiency. do again, out So hour think, of

lot it's to that. want I generate free we want to cash want said those to by that. rest we're And in we given we've and and goals think. asked, reduction guidance. that going cash And think happen. that will to in May use out met goals, stay do want We you mean, particularly we a this would think you shareholder world Dan We it's XXXX. don't of looks dividend, to that. not the Again, want cash debt the all then of do? do to lot had off pay look X% in that the do then a And quarters, specifically, We our what establish the next shows X% of flow, on at free bond we've to It of at what growth gas, Haynesville hit do the we With are is natural to of to XXXX. for then the And always alluded I model several RBL. significant retire well. you with Comstock. going good I as Thanks. want really and Haynesville, then flow a X.X% at what in any we the

you thank you hour. So for

conference today's you concludes call. all for That Thank participating.

may now You disconnect.