Comstock Resources (CRK) 16 Feb 222021 Q4 Earnings call transcript

Thank you for standing by and welcome to Comstock Resources Fourth Quarter 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. [Operator Instructions]. Please be advised that today's conference may be recorded. Instructions]. [Operator like CEO, conference Jay now host, to hand and Chairman Allison. to would over the your I Please go ahead.

I'll opening Thanks for to and Directors, employees the the XXX/X a that introduction. On the behalf results. Board we'll and then comments, of Comstock make go few of

shift in XXXX. First, shift XXXX XXXX laterals in Comstock versus Mills laterals. The about the has the Comstock longer talked XX,XXX Ron analysts. as to foot laterals foot

basis value You forward. should it's that a going all well expected to on per great know

have increase have thus We efficiencies, lower a should better we in cost decline curve, an performance. well

that this seen than fourth higher that XXXX, you did review allow will have service the on. in We laterals associated quarter of the more to higher on the offset The efficiencies higher in see capital we us longer service can impact later and the numbers, with cost. of call cost

We will the from and management. board from use commitment

free $XXX will the cash discussions with on this remaining shareholders. to leverage or the might flow the ratio that we off second have open half that's capital and a redeem pay to our target, do goal. million continue We have use We the of We can returning of bonds; question. XXXX X.X XXXX, think I does that know in there to and get less. we the have up revolver

of length X,XXX and XX% was lateral great M&As drilling from I extending today think of been XXXX. companies, our feet, by have of never It valuable holy length location that's E&P years. lot last in the XXXX Our more it's grail at drilling in year stronger end the has we our which made inventory, in you about a the or because by feet. inventory average lateral is X,XXX or But why two per strides

were upon of inventory, [Indiscernible]. activity, If were Haynesville, year’s X,XXX of our XX% XX% locations. at locations and those think. XXX with I based you that mean, XX lengths. net drilling worth net got [Indiscernible]. And just XXXX look we've lateral

I On increased the XX%. is make per X,XXX which front, XXX company. day think operational and front, how of we the day, from went you per that's this to nucleus money. that's fee We On feet our drilling by footage that

to length lateral completion Again two into the XXXX, of the quarter sales. version Ford XXX,XXX region XXXX. efficiencies feet average through at will two able cost wells we drilling our the Our drilled laterals costs operational be quarter, Haynesville Haynesville per this XX,XXX carried wells two Bossier, from just and that we fourth wells, wells performance morning, which were XXX,XXX-foot as two spot the on. due and put in in we to as associated fourth we lateral lower of -- improved into capital And higher service longer drilled with over improved

the a family Comstock, year time, XXXX of for be and pure-play have and Jones has our take his slides the Jerry performance, kind as that That's Haynesville accountable We few and Comstock only it's turnaround year. invested to you a that back surfaced since in so to producer.

financial Fourth to welcome and Quarter the Comstock conference XXXX Resources results So call. operating

Chief presentation, quarter You XXXX going presentation by at downloading Chief I'm call website Slide or With www. VP presentation to our can slide a X. Finance, our Daniel Comstock. me Financial Roland President quarterly Operating Harrison, Mills, the Jay to the is Allison, fourth Chief and comstockresources.com Investor after [Indiscernible] Officer, view entitled a and our Ron to Officer, during results and Burns, our Relations, you'll Executive Officer this results. there find

forward-looking discussions statements falls. will meaning presentation include note our our today and Going of forward to Slide the X within in that securities

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

free impact Slide increasing Our highlights X. a from the our the $XXX activities, million We quarter we cash the quarter for fourth of of the XXXX generated total acquisition flow and fourth our fourth our generation, $XXX X. for quarter, Slide highlights In cash $XXX to the free on on operating activity, divestiture total free flow XXXX Including flow million. million. year cash was cover

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

quarter diluted per or Our operating was $X.XX cash flow for the million share. $XXX

Our increased million. losses, XX% $XXX our to realized revenues, hedging including

than of higher adjusted fourth last was Our million, the EBITDAX quarter year. $XXX for quarter the XX% fourth

XX% production day. XX per of which Daniel a cubic IP In of increased new review wells, XXX,XXX Harrison and equivalent corporate the records in Haynesville a we rates XX quarter million both moment. bcf in are X.XXX Our had feet to foot which to fourth-quarter, the completed day,

During on a sale the our closed the closed Bakken also properties quarter, of for $XX acquisition bolt-on million. we and

of If maturity flip over to XXXX. expense refinancing will of million our X.X and average in in us notes accomplishments major X.X years. reduced Slide our We cost saved June, you'll of the over and years X, billion capital by we to extended senior from go $XX in which interest cash some March and our $X significantly

We for production value Highlighting the at billion. cubic a average structure, We million of margin, at credit wells, including as by achieved a in shale of MCFE. XX fond an approved laterals. also attractive the TCFB flow feet leverage X.X X.X and four rates to proceeds our year reduced Haynesville cash sale gross wells, X% facility program, and to put cost foot sales or ratio ask pool replaced day. XX our at in times drilled we the at million one equivalent XX.X $X.XX all-in per industry. XX% amount net drilling a compared goals our our successful grew SEC EBITDAX are We The was with by reserves $X.X free times X.X we XX,XXX IP to another we PVXX and XXXX. low a our highest outstanding With under $XXX our of and our XXX% bank to

million and our average and equity. on a for program return In addition, we a leasing In capital we added XX% perspective on through included put to the production is million. to and in big TITAN a Russ XXXX, was in over acreage in did several partnered the significant XX,XXX MiQ or we next-generation in XXXX our net gas that acquisition to $XXXX most to late under we net gas achieved we Bossier, X acres purchase environmental Fleet, The BJ average December deploy step methane XXXX, a natural XX% XX,XXX power acquisitions took to $XX.X standard. be the acre. which front. wells, employed, natural We on and Energy per acres, XX.X it's return took with position Leon, producing expected steps Panola, counties. with April. bolt-on The service acquisition the Solutions partner Rogerson close certify for Early Harrison, net section in process, and MiQ in Flip Frac recap we totaling, $XX and Haynesville to Slide

drilling Roland our of the approximately drilling The of be With year's we now XX% turn over the our acreage to XX to is to The lengths acquisition also drilling locations, worth which represents added the Roland. added inventory. acquisition, on net existing held increased. locations I'll financial lateral one results, XX.X discuss by call production.

fourth-quarter compare presentation, in X of to Slide the our On Jay. Thanks, of some XXXX. we measures financial the Yes. quarter fourth

of cash We $XXX than a XXXX. fourth million grew increase adjusted free if the include XX% XX% quarter, of which during activity, discretionary million. flow or in X.XX million to cash quarter flow at from during We an to XX% This the Adjusted of leverage which increased XXXX. quarter, you in the production totaled to and fourth operations fourth quarter, generated million contributed the improvement the net the our the EBITDAX in generated $XXX acquisition that quarter. from of times free X.X of day. impact to down and the income $XXX XXXX's X.X from quarter, made of flow BCF Our occurred times, higher ratio, XXX% improved most $XXX cash divestiture $XX end

$X.XX per when million company. ratio we contract show quarter X, the flow growth $X.XX of million XXX% XXXX, income we XXX%. times averaged a we've growth XXXX grown has And as gas price a Production for invested $X.X price quarter family share billion a rate the from average $XX as grown gone years. EBITDAX which $XXX this realizations. XXX% cash settlement up -- has fourth improved $X.XX from the much to XXXX. to a from million, operations here $X.XX during in per breakdown at provide has million first slide, has a fourth On last our Jerry averaging had On to X slide an to On understand cash Comstock to since And we from $X.XX compounded from results of share of grown the year at continued this annual NYMEX the times. price and share has quarter we was of year. of compounded $X.XX gone earnings net in over annual leverage to growth from very quarterly $XXX the and back into gone NYMEX million from flow and per to $X.XX, during has $XXX over has XXXX contract important last to show Slide is how flow basis, how NYMEX a Jones X.X this quarter per has three per-share stock rate in years. has the and was the flow cash has our quarter. Adjusted the each X.X to $XXX $XXX a XXXX. free And the his and a fourth this quarter, -- $X.XX. natural share, volatile earnings the On Our show Slide in changed adjusted of from compared in X, million Cash XX%.

Hub NYMEX was the and significant difference fourth settlement $X.XX spot the So price during the between quarter, Henry of of quarter's a average $X.XX. there price very

at the And more our settlement to comes tied then, off which quarter, So contract gas nominated in index of XX% we XX% are also sold final daily that or price contract market. the sold market to the our of the prices, during gas spot at. the we be the price,

from the in XX at activity our I would realized hedged. that from were in use So for fourth which differential with $X.XX, quarter results. reference approximate So fairly percentages, the $X.XX line historical also looking which $X.XX pricing price our not price, fourth the reflects quarter, the $X.XX, have averaged In been if a is reference fourth those quarter you XX%

per So our third quarter. fourth the our cost That operating that On X, costs MCF. to per the than margin. $X Mcfe $X.XX $X.XX EBITDAX Slide was and for final in rate. gas reduced Operating the price we averaged realized detailed Mcfe quarter higher

$X.XX, back by expect was quarter, by production up G&A Our both for bonuses. G&A also cost in year-end taxes higher were Higher but $X.XX related of down to per to our lifting primarily to do XXXX. gathering go that's We $X.XX somewhere cost and $X.XX average between to in cost were $X.XX. adjustments the Mcfe and

quarter, properties. came our fourth we margin. spent costs. and recap completion Our In and third Slide in the that EBITDAX XX% a $XXX drilling operated million fourth-quarter unchanged XXXX margin, at the $XXX million activities, from our related our on quarter, and in we including hedging, to XX, shale quarter Bossier full-year of Haynesville development On fourth

for an spent $XX $X the spent we we our in other additional Haynesville properties had -- $X spent wells, that and the on operations. in development also Haynesville activity million on outside We of Haynesville. We non-operated our million million

activities, we million and full-year, $XXX the Bossier operated properties. was related development to Haynesville million our $XXX on For spend Shale

We Haynesville activity operated XX.X of $XX development other non-operated We turned drilled in also drilling and XX.X activity horizontal wells million completion. just and to outside wells sales XXXX. we and net for spent on net

We non-operated from activity. net additional also X.X wells had our

replaced acquisitions. grew spent from on X.X reserves In production. reserves Tcfe XXX% development undrilled of by our acquisitions in related at and Most an XXXX, those to we proved the addition XX our Haynesville of Shale funding of covers XXXX. SEC also to our Tcfe program, we Slide $XX our We proved X.X acreage. end million

and XX about of had Our to XXXX price-related positive XXX drilling prove added we reserves, activity BCFE revisions. BCFE

divestiture We reserves our proved of BCFE, by also which is offset added primarily through XXX additions BCFE Shale acquisition a properties. activity. our Bakken The XXX of reserve were

very per for attractive at all-in in MCFE. a XXXX costs finding Our $X.XX came

$X.XX [Indiscernible] at in finding per 'XX for MCFE. Our came costs

Our XXX% natural gas. reserves a almost are

proved our the pricing PV of Following Bakken the reserves of of our The sale value properties. was end billion at SEC year. at ten last $X.X

they're are In not X-year by the SEC drilled not addition X.X to number, expected have SEC which within of approved X.X we included required the rules. an that Tcfe to reserves, as the reserves, in Tcfe developed additional window by approved be

reduction of XXXX. $XXX growth in improvement on on leverage redeeming include of our times notes. compared of We fourth our our XXXX. Tcfe have sheet was X.X credit as and basis. of million times on possible EBITDAX $XXX X.X end have in XX.X to would balance million X.X of another in a our probable of drove our facility during the a That The XXXX of we at million XXXX. reserves the $XXX a to the reserve drawn reserves, total and Tcfe XXXX. the or end year to ratio, XX basis retiring also quarter debt Tcfe which for had base down in a repaying at XP or overall standalone X.X We on PX shows Slide our revolving after the XP senior We debt substantial plan

targeting below now $X.X to we XXXX are Daniel liquidity over in of ended it operations. levered I'll to times billion. with X.X and be to financial XXXX, discuss turn We our almost

by this Okay. lateral going first In is increased adjust number where link gradually average through subsequent we we as to also a average completed our I'll laterals. of with first us XX,XXX to were had back show drilling, foot started drilled foot our X,XXX in year, we We of for along Thanks, successfully the In years to that drilling to-date. XXXX, on increase feet, We XX,XXX lateral were length our mix drilled longest record This and slowly year lateral XX. length. laterals. had we increase primarily exceeding that our flip XXXX, allowed lateral XX,XXX the was lateral our length which our lateral laterals average just drilling XXXX feet. estimated we Slide average Roland. average and late X,XXX we've foot length. and In and XXXX, foot completed X,XXX laterals X,XXX XXXX, our feet, over

two through the of XXXX, four lateral and drilled the XX,XXX we to Haynesville to Bossier. end completed XXXX, our the drilled feet. length with In X,XXX average laterals Now, increased successfully have drilled and two into foot

of average Haynesville and today to record XXXX, better success feet wells the footage foot is our and being be by XXXX. and in lateral length laterals nine our drilling Our on of was drills we the with these XX,XXX we'll than environment. our foot highlight laterals. in strategy, into long increase laterals to the number XX,XXX XX,XXX XX% anticipate to longest our maintain spud longer these drilled our XX anticipate of we to total XXXX, performance, Slide the XX, completed late based improvement feet, low structure the continuing we XX,XXX in execute Building higher-price laterals, drilling from which abide On able In By cost by in TD. days to lateral the on approximately now up feet. XX,XXX

was XXX XX% our over in improved performance XXX XXXX XXXX, drilling stable our day, performance feet XXXX, feet performance from in drilling and the XX% day to per range. drilling foot day. relatively X,XXX to In per Our an improved through additional a just XXXX

field lateral updated improved lateral our lateral combined. longer at greater fastest drilled drilling trend feet. rolling wells to practices day. than for Slide feet rate last is been at maintain very than, an goal laterals, an our drilling and to level. a Well, well with While the the was length benchmark D&C cost liability drilling performance of level. via with years, record date our at improvements longer achieved greater X,XXX The sounds future XX, average of These X,XXX execution we have are to year the average in a over laterals our long wells. high expect On our performance With

service D&C this completion in unchanged cost remained is were D&C a and third Our our year $XXX foot, decrease for a to Quarter, full to foot while costs cost. down averaged the drilling of still the the drilled to quarter. quarter compared XXXX slightly the with the operational we associated performance, DNC essentially higher compared achieve which spite a began during Breaking efficiency improved last we our improved Fourth a average our and X% capital length lateral $XXXX to experience costs to during lower $XXX the quarter, flat the down, due the that the were longer to able X% foot. quarter, quarter-over-quarter In cost we costs

lateral first XXX,XXX longest XX,XXX turned the to length the average achieved during length completion the average Our feet. our that was of and lateral we've to-date quarterly were sales to foot fourth primarily quarter for quarter. was is due laterals accomplished the This

efficiencies associated offset the higher to us Our capital the impact longer of was quarter. service allowed the lateral the with during costs

see turned our the feet economics map with our lateral execute the in day The County from economics The generate a $XX XX,XXX IP the BTU and in the cushion and this cubic XX,XXX on is XX,XXX of area million wells rates costs. continue up Also, wells feet to XX and the the liquids-rich were well further were While from Haynesville in rates ranged the Number The XX, we dry wells plant foot to million lengths robust activity. lower we ability into negative more which XX this per quarter XX enhance XX, XX,XXX lateral On this with XX products, IP. tested ranging feet HCI year, The drilled million completed will to gas area into successfully offset XX at feet, an day. the with do of day call, we laterals additional quarter, completed of the help The million similar seven a wells are rates with $XX fourth-quarter Number at production service yield at feet IP a a during These sales. will and from to a wells. laterals Panola that XX%. to XX% include with the new with X,XXX Since our tested XX Slide average outlining feet. the the XX first average Haynesville. two wells XX,XXX cubic results X to service million XX, last plans, high longer the were foot to higher costs increase partially have two will effects and by well XX, X tally a drilled and XXX of barrels of gas laterals, for laterals feet Bossier.

As wells mentioned on two last to those night, on were turned earlier, late we call. sales the will be these next and reporting

detail We XX,XXX we XXXX category Haynesville drilling year. rigs feet. it's remain and The XXXX laterals laterals to We're drilling wells a and the count to got finish into levels, X,XXX crews divided our got strong beyond Slide laterals now for is Bossier now of our new categories. five remainder to and activity feet. between X,XXX the the We XX,XXX at feet; at plan locations, On throughout X,XXX at to We adding Regarding did two increasing to up running inventory. frac medium rig four continue inventory out this seven the X,XXX split a is extra long the of feet; our short throughout process year. count frac three full-time and the of crews. the rest this three seven running rig of XX, will in rigs, the

XX/XX net working this currently inventory the locations modified Based stands in all we to In to our drilling new future capture advantage further non-operated inventory. XX,XXX XX,XXX have XX% lateral net inventory represents at average of range. on and that extra-long now this gross XXX total recent extra-long Bossier. beyond the XX% bucket, operated locations, currently new across operated inventory and and across possible, the to the laterals success our XX,XXX Ones our Haynesville we've have in stands -- gross X,XXX our our wells is operated the feet Based working feet take locations. between long, the locations locations, a our acreage also inventory. where bucket, interest, These position, at a but interest out locations. XXX Our and the operated of on average wells, which feet currently lateral the we X,XXX are net and gross split XXX non-operated extend represents we extended X,XXX

are more extending we the in With laterals, to will activity the the Bossier. to drilling provides surface outlook also laterals laterals. on our the gas inventory and position. X,XXX current methane inventory feet, long XXXX had medium the back our our laterals, gross us would on future operated our Jay The to XX% ultra-long of planned up it I and intensity our which average activity locations our extra-long the recap in is total greenhouse on execute it to help in Haynesville inventory, the our XXX release XXX the longer our years levels. enhances based now in of our increased value XX% X,XXX now reduce uplift feet, summarize to by So In laterals, now XXXX. further have And XX footprint to economics and levels. ability will for short drilling acreage length at split to robust, is XXX and Also inventory total XXX over from are increase. and turn a summary, future economics, with over gross laterals lateral new addition the in laterals, XX%

Daniel valuable Well, just said stronger than is just big never our earlier, and said, of while companies is today. inventory, which like grail drilling we holy more a it the it been

Slide If the you I XX, for to XXXX. go summary outlook our direct to for you

expected lower And XXXX we this And free than XXXX, year-over-year. of is length $XXX program the generate expect current years, have will our well our in rate excess longer debt, lateral year of wells XXXX production length wells. to program generate XXXX, the the would In We process. per than the we're million future the cash The flow to our an investment X% X% additional program in focused senior at decline expect million of as of shorter be our drilling a year's operating laterals. XXXX to growth is notes. and to repaying commodity will drilling redeeming XX% off on plan this the lateral $XXX pay making including

returns. an industry-leading have to structure, gives continue low drilling which best-in-class cost We us

on sourced production of further At We under financial MiQ increase as natural working our expected had in bank certification $X.X responsibly the which gas repay XXXX, the gas facility. billion, the on are as we XXXX the our of standard. of we liquidity is to almost end remaining borrowings outstanding

So Ron, I'll give for turn rest to you year. guidance the some it over to the of

Thanks, we guidance. financial Jay. On Slide the XX, provide

to on As BCF the of quarter shown day day. the full-year BCF production slide, a X.XX X.XX to first E a guidance guidance is and X.XX X.XX

During the to to year. of wells quarter, the plan in be year. XX% wells little wells the we than those planned turn for the have to first sales later to lower turned a And the working only about sales interest bit

based turn being similar links service this XX% the as incorporates an second impact third production of of our a million, average XX% majority and sales of wells to expected number which of year in growth last is is cost to wells and And $XXX Capex this and during the development result, increase and the $XXX guidance expected on million to turned are a quarters to year. As longer occur sales our year. lateral

midpoint also related to the if mostly actually improvement of inefficiencies million $X a to an X% the leasing X% longer cost. and $XX for factor budgeted represent result, XX% of you guidance XX% in would of in our additional As longer to the about laterals. laterals, inflation million We've the

Our expected to year, $X.XX to $X.XX our $X.XX full $X.XX and to the LOE expected to valorem and current in and quarter average expected transportation year. average to gathering Production cost to $X.XX the average and taxes in price quarter a $X.XX the $X.XX outlook. first on to year while ad for $X.XX based for the first to $X.XX $X.XX

million and million DD&A that the incorporates $X.XX XXXX expected in XX% in first total with And $XXX this G&A later to the tax quarter. to year. in Our we defer and expect almost $X Cash average $X in and taxes $XX $XXX the I will related $XX million to million to the line cash Mcfe. XX% million state expected turn to to XXXX, to the around is to From with XX% in over standpoint, back taxes. taxes forward, $X non-cash $XX to going $XXX is XXXX, reporting. G&A of quarter quarter expected million $XX what our operator rate to $X.XX million expected a to in Cash is the XX% come average million first to interest the million, session. guidance is notes we've planned Q&A to of call for being to the effective rate tax the redemption been of a with of now per

the Q&A [Operator Instructions] we roster. Please, stand compile while by

Stifel. the comes Our from of line of Whitfield Derrick first question

is open. line Your

morning, and all. Thanks good

Morning.

seems specifically to institution first capital we set revisions the on positive focus of production. plan for potential your my return in the year based the positive analyze the and balance your Comstock confidence executing in on and of against on XXXX wanted question, production When I on us program, the a of certainly to outputs With it. up

labor price be to tighter the your relative with Your XXXX consensus more of average environment? being production about outpacing appears year's, your steady-state after this the confidence light against executing that adjusting activity on balance service QX in plan said With past estimates could to speak in by X% guidance. to for in of you year for the and

Daniel. is This

been already the that and got that of bit of we've last fairly can So We at, year. we've we factor on that into the execute, we end most it had confident recent we've -- planned. the at we're cadence way numbers our a little the scheduling based built

And year. pace that at to be so going this the we into same foresee

this execute way So we out laid the we've feel year. I'd that strongly say yeah, we can pretty got

Great. then, my for follow And up.

up, up. Hold hold

did hiccups seen a a mean, Daniel. think that, have sand during hauling I driver has week ago but have few with don't I some and it We issues. we weather the or so impacted.

of schedule. latest mean, and built have if kind got go did this of overall what little that's in finally spotty, the mean, into quarter. our and we'll for of dates Basically, It start fourth impacted little a the I our based see and It there, scheduling We something revisit dates. we've back we was that seeing to hadn't cadence on and year. scheduling that obviously, bit. bit just a level rest it I changes, the of our

our I our and we is have up, have do lined think contractors do frac the key we service drilling lined up. companies

point times my seems. guys and as After later to views leverage near-term year. achieving this capital. follow-up, ratio on on this to wanted net could debt you this And targeted year? form to longer-term can addressed your return near-term I and Could of best how the you speak focus EBITDA capital, take of then later your X.X at it It's return for

back one XXXX, our capital the Yeah, excited in Derrick, theory. think Sure -- stockholder consult year. that's is establish obviously we're pre we're return a let will achieved additional the center to -- first to put we achieve a with. sustainable later flow had which evolving debt to be see after is in And a question. have our goal, and front we our And in and million will goal in then company place. -payable that I will that that do so obviously, And -- first is cash a dividend. to think on and have majority be we reduction debt we But we're good generating that, we $XXX still first be a free

so very establishing then dividend change I supplement after could We'll but put And to as and with see that to achieving first, in, target place. dividend, in -- share I so right debt we'd to of in the that have happens land, time we prices. again, this first capital. but a the progresses return where the repurchase a gas think quarter think happens volatile gas base as authorization leverage reduction Add like year I mind, think far another we but our ratio know first prices

think before. we've is, I a [Indiscernible] the had dividend

we had it, to So it's did And it. when something not we remove remove new.

XX% discussions, talk because that's those up, more beautiful ratio mean, have our that, there properly. in having I be about a to should than and thing the very we talk to so own would think discussions later. that us we And leverage XX% you of tell remember, this allow to the talk I they're will to about, Jones So open perform sooner to interested more company,

So we I that when think for we the guaranteed a yield. -- looking that so market what is dividend, weigh is they

assess make we'll we'll all and a of decision. So good that,

bond groundwork laid we've forward. as refinancings the did. laid in the we And groundwork big we for We've the our strategy go

Yeah.

in place. our a instruments our all I in agencies, the balanced So I place to of for but a this capital debt to groundwork the initiate approach, to get the and bondholders, we In it's we we've rating return program, laid that commitments year. commitments very think have hopefully think

helpful. That's for Thanks great, very your time.

Thank you.

comes Our Charles Johnson Rice. of next question from Meade

Your line is open.

there. morning, your whole Good and Jay, team to you

Good morning. you. hear to Always from good

the when rigs. going you're Oh, Jay, we kind. to you're Daniel add the on from detail I think of some got

quarters. rigs the think the for are when two in I think can big tell I adding are the how production year? right I'm mentioned heard what should what your to that what contributing the about growth XQ to year Ron implications you going like? is is are be or how going that I how shape to us about and process curious and you're bringing and you going now, of progress how the of to production, be the XQ looks on, over we But those rigs that think they're

to number returned second quarter fairly and and about XXXX. -- it's in you growing have the had the production first Ron We lower talked and our that -- before completions. mentioned of third had quarter production that, it's completions really it's plan, just And quarter

we XX,XXX scripted, Now, over We're in they from six-month were laterals. to [Indiscernible] because two our lateral fourth to We're was that's out, takes we're have drilled lateral he those pretty feet there and And Like and I like the when length know I the some know wells. wells, foot, XX,XXX think we laterals Bossier didn't Daniel all on four longer we're we the said sales in quarter, turned the in predictable growth. And a transition that's the shorter from transition. while. it a in. -- average

this takes we we our come, think our lower with did to and going it's it costs. and that's the thirties, going That's to the off going but the +% that's -- turn I it's early this decline abate to a model, little So if to can script, but he going in XX from morning changed our to dollars efficient as curve to less help help with sales, help spent, RBL. you on the by more longer, but see, not quarters certainly

small cost where I that look and transition sixth existing these extra But at seventh more schedule flow. we're will you all bought, efficient year extended of I have in we it's rig we'll wells rig, where is we footprint even take got were to footprint that, program. a we cash can the Louisiana in that not So going you condensed that's I to us laterals, this have drilling into with you're we at again, that a this go you look in, more look think complete the versus I've free those think here, we've --actually we're XX why locations, that will in the we've we with and were to the way -- a generate just basin if drilling a while acreage was, go property we XXXX. some at see in, And a Texas on pure And and extended think just if two spread diversified area. laterals diversified our We that we're out we added. existing added

Yeah.

of to more you're see some I think that. going

of couple a [Indiscernible]. got comments I

thing But the rigs of when drilling Specifically, which least used do one we for have half about I one contract think do you right we'd -- -- operating really affects think services, rigs, don't -- be will of normally now. budget. our doesn't at we X rigs our those

X-and-a-half say have would to rigs on budget. we're I our deliver So really

period. half I so And other weighted But half is -- this budget. think it. in our more That's not will of due the kind work. transition the production is There in the The I second be of view X-month year. think that's to I how

'XX than I that same growth going to having we now we right term, the if do probably see you the on these in longer timeframe. to level, laterals think keep at going I we're activity benefit when that's rate now, go a and production think the longer higher the having longer of -- laterals the be

production in think extending to where and completing that coming And time. a wells, we wells, incorporated. of years that there at at other that There's the pads of together online X multiple we also multiples, pads, shut-in order may The you typically, shut-in complete does two create projects in two multiple that wells same in than also to -- for time the have more wells where have we're planned and want this seven have production thing we always activity I on. previous delays more least coming on but lot do five that's practice year's multiple grouping as and a time, the minimize to more timeframe at these is are in that's minimize than the wells, of to

look those fourth And foot grows than have growth of at and wells feet see we third And that you quarter, have pretty greater half you'll production XX,XXX at Charles, XXXX XX chart, I second, are XX,XXX the laterals substantially. you our laterals. volume look if quarter think if program, of

have think second, lower, We've to them. into floated see then, put see the normal those longer as those grow. be Roland you're And fourth in. but wells that, going have then as continue first drilling quarter. quarter, we we'll you'll we'll third, and It So mentioned, too. lateral XXXX, But to [Indiscernible] in I will completing

Jay, back really you only about those I of Bossier how to hours two here, drilling reaching share foot XX,XXX to do detail, any That's or the But just I'm -- like early wonder if wells, you for want sense helpful just those. and of what the I in and particularly actually stimulate wells go the you you to early there? about are that whether went toe all those kind the in have out I and. anything some it. curious, more able effectively mentioned days, you're we're can technical Got of contract recognize not limit drilling are the on piece the way And performing. to completion particularly,

what X say [Indiscernible]. drilling instead me of locations XX but X XX% if -- comment, Charles, over to I remember, chose Haynesville to and the are X, Yeah our we of it I'll do to then want were let foot rest And we thousand Daniel, you turn to let's Haynesville, do, Bossier. Haynesville, we've chose got

as and them. for of So we Haynesville, you the a $XX $XX day it, -- X what's both did know, million

think I is XX. and XX

got great we've So wells X there.

go started made of Bossier, on think drill companies were Bossier I to into this first probably Now the we remember back that December one We and a didn't the really XXXX. successful Bossier drilling.

that I You can the the they mean, looked at here, they were well. of etc. Indigo's ask world, When

drilled before. Bossiers a have bunch We of

we was Daniel that Bossier these should So drill two wells. confident

did wells, good really I by this you to [Indiscernible] they sales did those? Daniel, sales but comment turn morning. on to expect So, And want be to to and turn them we Daniel.

drill. four four wells did faster those that Bossier a we the we it add drilled that to little drilled. performance the a just Bossier days, did that's wells. drilled than we The strong pretty, XXK one I'll in TD these fastest of so laterals On was average, to pretty We there. XX.X bit

didn't two out with out there's of a all issues no As far drilling, we to them the end the got saying as fracking TD, any all deploys, issues. laterals Bossier these to wells, the on XXK, have way

there, with you you little bit faster that hiccups, and happen out few and a wells, our the future laterals. efficient. a get little that's XX,XXX we and some first a get expect few have better on then -- more from you always -- to certainly We'll So start a when little foot

call. the for you Thank

you. Thank

you. Thank

comes Truist line of question Securities, is Neal from next your Dingmann Our open.

versus Bossier all Good say on wondering on area some Haynesville? just think All in were outlines. or your saying how How economics XX opportunities, your you about what morning, Bossier just -- of I core on the just maybe think you average the terms overall terms? broad I'm just the guys. you Bossier follow

We going to economics other. on look The but a bit price. going a gas economics with to process, But inventory. that -- is bit Say, of East than kind get basically little Texas Bossier little just of the of XX wells going one like the across just always the we the because the Bossier the a of decline RFPs are get the the lower to So -- you the kind they the the be the at you're versus drill rates. we're gas we an ran Haynesville’s they're if K, in we wells, which lateral before more wells. drill flatter better a how bit looking little Bossier’s the lower these a drilling. at economics, set or Either you're at look back -- X,XXX-foot XXK's, average where

-- with we've You're XXKs. we looking make several happened better well. where outlined the know on you're of the and X,XXX get feet so saw a these down at rate closer and XXKs. to with things expect already improvements We And what can at some XXKs we XX-day we something XXX% on that's return or on return to looking a this XX% lateral. XX%

or runs foot there's the wondering are is just that longer of longer driving just you and else just showing that talk a just completions as that follow-up, on per see. for upside my getting are it some we'll you what this down to I'm purely part continue to and Bossier and about [Indiscernible] it seeing, I that of just laterals, even that? ask improvements job could improvements on Haynesville upside overall, because you're better laterals Is laterals purely I'm some certainly just the said or returns wondering, going guys good not you was is just longer us

That's the laterals. just is -- the the practices. drilling drilling all across performance drilling the better Well, basically

becomes link. profound the when tool of the is laterals. on reliability our it start But you that of more regardless vendors. better that's longer laterals all But Some drilling the from

the You bigger those buck things. for get from bang a

So your your question what was. -- what's second part I can't remember of

that's returns that things per it. there's side as didn't driving returns your if longer I and I besides didn't completion improving, that foot completion-speaking the these just know you're incomplete on things know was are doing that if returns -- well. on there laterals -- No, considering other are

is side longer; just little gain just bit getting completion the efficiency ratio. more that's from The a an

better on think a the we're bit seeing drilling side; gains. I little probably

is? fracs enough just We performance when the frac get our certainly what our of we basically in know It's April. layup natural to the go to fleet You crews. expect gas

a little We better -- and there, bit performance expect see to

consistent. and Our stages clusters have been pretty

We've mentioned. frac stages just recorrect We've side, recap to on pickup been drilling level performance per day the a Jay pretty like side much at seen about -- the that answer. on same definitely bigger the probably

Got it. Thank you, guys. Great details.

Thank you.

Inc. go Mariani ahead. Our next Capital Leo from question KeyBanc Markets Please of comes

out Hey, years guys., on think the properties your Obviously, days, for there to think several Haynesville the company, last the do wanted good days are might fit sense Comstock? for the M&A the really What of appetite is? just of you to be what a inventory. done other there deals is get you these side. of These increase a outlook you've size some the

answer's are and we're asked know looking we're -- if outside we basin, You no. the always the

the do we one I know, XX% you of understand I been most two and mean, shop rid of whole be Leo, got get of there that producers So lingering, got still think are basin, But as the Haynesville the And within that now. think of them world kind we you've think you've consolidated. there. time. right out I may sale the of for all about I -- have

got but our of add enhance is our laterals. in XXXX around think I existing now, right our acreage think valuable shop to not a shop. look, plan footprint incremental XXXX, order We as to continuing We do be compulsive to I that will you've buyer.

lot activity M&A don't really we front the see So at a all. of on

in I to this helpful. the same. 'XX But wells on changes That's a some this It just bit program high looks more of are XX% is of of year. the fair roughly at if are like There's getting 'XX. turning discussion level look Okay. feet number lateral the been certainly versus sales, you topic. a But take the

we it a X% lower do kind little So mostly it guys a overall But When when completed year, certainly really production X% is just just a about year. the look than know timing here wanted bit you look last at call pretty it's I clarify growth, bit, big step-up here. this in this at a that. feet just little really was we you think 'XX. to that, And this is of the benefit talked to issue?

of that timing once the rigs it's a longer not do running think I rate question, I -- similar and quarter. it's great a that's XX. that timeframe a big not -- the think all lot Obviously, I rigs you issue the But during number see also a and consistent get I to to in think of laterals, transition you think a I That's many XX, growth we it's do of running and fourth timing. as because

think they with the first and consistent a reap these growth a and hopefully that's the year, little specially laterals. towards longer more laterals lot a [Indiscernible] program, you starting a lower doing maintaining see see quarter. this I provide. this that next bit then year. of here profile end consistent from the -- with -- decline longer the we'll In the We'll larger through 'XX, will -- from in which year, in laterals half benefits In the of all second of more

as invest much. to have don't You

the while efficiencies, So takes numbers. a capital that up you but show create it in to

the at look you inventory. again; inventory. impeccable We've think really I [Indiscernible] got

margins, really high. been our at look You have

delivered year look You performance. group, year at year they've operations stellar after after the after year,

operational from to and there's which be our worth think very laterals efficiency, more months said, some these to it. predictable. but has X,XXX do I laterals, is longer pain transitioning I to has been certainly in foot think foot, will foot six to efficiency, Daniel XX,XXX X,XXX XX,XXX it as You did foot for our

you guys see bid-week discuss? And want 'XX, and bit any little of to talk price basin spot, in that maybe a forward dynamics that's fourth about here little for outlook a maybe what versus lastly, a differential you you us quarter there type in the will just give with Haynesville but was for expect of Comstock going just for just no, sense could differentials Obviously, there here. the Yeah, if helpful. you noise

hedge we've yeah, seen lot our stability we've longer-term because differentials Yeah, we -- with locking in real that even taken sales basis putting contracts, that, a in steps protect there. including and of a in to

at in tried model that. And and separately, prices spot those the the price, price difference differential. easy and I we noise the gas it it you very, we spot long market. all. those wasn't was that real a of -- very to between tied available. XX% think that large a why our really, both to fourth So the time, versus noise are show. assume gas very, That's experienced don't going is XX% dramatic, tied quarter, in overall was generally, to and be It's in was midweek The was volatile think contract haven't price, which so are to if that is the creates I to the

in to impossible be, market to the that a go XXX% to it's way, need either assume it's don't index it You can't deliver -- have that XXX% because gas. you

two that January. is past at So I hasn't those a important numbers. been think the seen in between being -- to first the very haven't just there you that as difference separate look quarter January, big because

big a a see those didn't numbers. February, You between difference difference. two But dramatic

You a was number, the very immediately, spot than a XXX. at had high that. lower market contract close

year, some can be price to how but to see March So to a and of Got to happens would that keep going the first but an spot the see way catch quarter also obviously if to nice. in up what that go know it. to on this market progresses eye February, we little be don't do that contract

Thank Okay. guys. you,

Thank you, Leo.

you. Thank

Partners. of from Energy comes question Zavala next Our Fernando Pickering

line Your is open.

beyond? and with if trends around decline base you year-end XXXX the maybe was 'XX XXXX 'XX and could into longer laterals tailwinds morning, I give Good time. some year-end obviously and numbers and hitting the into wondering beyond? for to And thanks as relative

would asking? of little question part was What you're you could -- bit. the the beginning What a that add very

year-end 'XX Yeah, trends if give could around some and into XXXX? you base decline numbers Sorry.

-- decline, should right positive around Over a think currently I referenced of kind decline to as I time, terms laterals, effect mean, XX that transition those XX%, we In have longer Jay that rate. of base on we're +%.

five when decline way With into pressure lateral account the you the wells, for back, or -- you the them about flattish maybe months. you take on and think flow bringing six shorter managed a

on lateral longer XX laterals, laterals, either ten be expect that up you to the be could to months, and nine On the in depending it to longer longest -- months.

'XX. it extent that I has more probably in as a going go But a don't over should whole it moving in those time, the of impact, requirements if really up So XX% that dramatic -- benefit to greater that has to start and from if just program on start capital can XXXX is that decline more base, should get your impact forward efficient. know corporate and an even down. your wells lot show much you it production rate if it to a of the in call of you 'XX mid-XXs, makes maintenance

talking think that the difference in we some and lateral be step few length the difference the were we of that. and -- saw see have if predominantly between versus Haynesville what Yes, if lateral to excess XX% higher rate, rates. we the decline foot of back, It's in have all of other is X,XXX the major major is but laterals, you operators you you base the and have about the link I decline it's now and would even an --

production these I have to have to your drill decline. you, don't X% think X% as Ron spend That's much a then, again, capital as said, the for long to grow steeper you you And laterals goal. if don't because well,

about And yeah, guess you. in and mean, The are Thank thinking balances that you about you start helpful. spending all goes longer of benefits follow-up showing the in like It's activity laterals question, you my XXXX. how that's said. up I I how -- 'XX. to

that. and how you to -- how scale all X% X% options to like activity stay you about you -- just within thinking So that have are back growth,

we get numbers to have maximize us rate but do in we we level. it, flow. back, higher that Right. don't It's early we'd at should the about we for 'XX cash have if cash if stay target how free that how that growth really market? this to There's We'll on is generation, so a of a progresses. a would we tell results, overall maximize pull think How closer maybe and We're constant will you more I think free the What's do see -- Appalachia, have the in takeaway? lot we pressure factors. to the unique of year lot what gas flow than in base basin a

your debt cash Together, we're of flow XXXX free that We excess point. above our going Capex kind can $XXX budget this don't million be. have have that shorter-term and free a mean, over play so, whatever of too. lot off I number, cash quote, to a we flow would

a huge point I turning company, in the be it So for think starts XXXX will but it XXXX.

Thanks, it. Got guys.

Thank you.

question comes Our next from Raymond Petro ahead. Deacon of Go Lotus.

Ron. Daniel, and Roland, and Jay, morning, Good

Hi, Raymond.

and assumption longer is that drilled to a now and I have number will the would at wells of I -- amount in by question inventory of that which inventory quick -- shown reduce of you assume look you the wells if right those there, of what is, that the do Daniel, be versus terms were XX% XX%? number had most for

I basin. a think -- in got we've of acreage likes laterals remapping, provide -- and think this lot constant both the actually trades, through everybody -- new the there in other the reflects interest we remapping rolling, chart we've a inventory I the be yeah, here actually but, is major will longer

very to so there's in more hope refocus operators be now consolidation a So now acreage has as we continue will -- do there those. this you on adjacent Yes, trades, some engaging with of by result occurred, the you changing is a changed difference saw from now a presenting we're remapping what length. but It's come, lateral the the before. inventory to remapping XX%, lot, and dramatic it's of

was thinking was the I at -- numbers. I looking back

companies. that If that XXXX to end that year's you and it's those are the XXX it's [Indiscernible] greater today at net you if diversified swapping acreage locations we foot last of that's and continuous the we it's operators. look last remap because said in and with for offset more we the remapping trying both a bought, win-win do that and plan XXXX some laterals, at But to and of was them. have And etc maybe the XXX year XXX, that point start than on

at where quarter? Got Got two rigs already end will go And decided it. it. have incremental the you of the this

this Raymond, Yeah, is Daniel.

yesterday Logansport basically Xth And of The in first our work rigs our [Indiscernible] late to going X rig those [Indiscernible] rig we probably and got will week. are be both the area. next

Okay. And realizations. question one it. Got just on last

that probably think been you increase big is bit activity; has sales to rig I Aethon had a that if hadn't the you in in on Do differentials fair? If significant the Haynesville. were this recent know would've narrowed the that's addition -- count a to process you

I Carthage think talking I -- you're Perryville, maybe differentials? about mean

right. Yes,

they lot gas just -- it's our Again, index. longer widen were of plan it. to we no Perryville, our they subject we've we from sales quarter. a -- the -- only away moved had XX% in fourth dominant Because Differentials that, of for like, of didn't we kind

think operator that. So a tied to that's an you're yes, I if XXX%

we've we And that number put gas actually protective much into stay to really a Gulf the they of -- the to operation of not close probably to that December, not a but in lot plan -- differentials, which wider be those a Coast and Gulf has went that don't [Indiscernible] it going they in to the shift so taken at in differential tied indexes, tend $X.XX tighter when gas our measures to try to felt majority too higher markets. to indexes, big going we're when differential, and Hub. was should can in Henry that lock XXXX, we we're have then You that gas into on Coast be, to to the exposed

to add Roland's -- To

Got it.

on XX and --point the deal it with ' December enterprise, [Indiscernible] was Acadian early that to negotiated XXXX, came 'XX.

So,

see that's -- in 'XX. fourth it slide December, help from differential much one So helped -- you're having didn't now But going to in the us in help it and going see the only that was definitely -- it you bit month. to keep little and mitigate because to probably with helped it that quarter a 'XX

So that's totally factor. a different

index the just that's spot the totally to [Indiscernible] that. price -- price, That's versus the at unrelated Looking

question, have Right. takeaway have wells, we drill to look back mean, because issue. your to side that don't we I these do One step you in at we the when to marketing any takeaway place plan issues sure -- we make a

that the all markets, when access we in in that. 'XX, -- seen terms And these MiQ to looked are or? at realizations realization in gathering 'XX, lower you advance haven't on Right. plan Jay, We different you fees. help 'XX, get wells. does we those Do of

future. you hope to the in Well,

in able price, that our able but would are to give don't the have we're Hub we want credit customers [Indiscernible] extent access they us to source LNG, responsibly to that directly to in we that sell have to to in that, think being direct in for as right with now want -- the now, gas. the I that's region find to lock and maybe most to they're as purchasers I say

mid mechanism -- we that in have will hopefully 'XX. We year in place have mechanism that

we're So that the but but see could that, be ready case, we'll do to but --

I think valuable. will that flexibility, Raymond, be

Yeah.

Bossier Got great. too I'm -- many there of is 'XX? of just is That's But -- there it, Haynesville one, change a guess, breakdown the asking versus much last in XXXX questions. I versus yes. And -- one

So we to what XXXX. to is in XXXX write-down pretty in the similar be going had

Got it.

-- handful a just But

Thank much. you so

Just [Indiscernible] a handful

Yeah.

Got Okay. it.

to call closing to this Thank turn for you. remarks. At Allison I'd like over time, the Jay Sir? back

I Again, the close. I the would from to I conference of the want for thank guess everybody to staying on beginning call end and

the we fundamentals the base the we're to think on our stronger, a footprint. basis our of that dry and been [Indiscernible] say there don't is LNG we facilities gas the export due this near on now particularly reason is global are that have in natural You Bossier demand the Haynesville, at, footprint market, that that

watershed a year, should pure our 'XX should slaying on calls trying that and results. play. extend incredible. laterals to and the to deliver We reduce we're be be plan 'XX So our

is we you thank again, for inventory your Our so strong, support.

concludes you this call. Thank conference And participating. for today's

now disconnect. may You