Comstock Resources (CRK) 1 Aug 232023 Q2 Earnings call transcript

Company Profile

Participants

Jay Allison	Chairman and Chief Executive Officer
Roland Burns	President and Chief Financial Officer
Dan Harrison	Chief Operating Officer
Ron Mills	Vice President of Finance and Investor Relations
Charles Meade	Johnson Rice
Derrick Whitfield	Stifel
Jacob Roberts	Tudor Pickering Holt & Company
Bertrand Donnes	Truist
Gregg Brody	Bank of America
Noel Parks	Tuohy Brothers Investment Research
Paul Diamond	Citi
Phillips Johnston	Capital One Securities
Leo Mariani	ROTH MKM

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, and welcome to the Comstock Resources Second Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today’s program is being recorded.

Now I’d like to introduce your host for today’s program Mr. CEO. and Chairman Allison, Jay Please go sir. ahead,

Jay Allison

XXXX Thank We’d all Jonathan. introduction. to second I call. results I wish prices. gas Welcome quarter Resources Comstock natural controlled the and be your operating conference you like you, financial a happier. little

You results during after presentation. second find presentation by slide There this www.comstockresources.com and quarter presentation website entitled to you’ll our at a XXXX downloading can call view or going the results. quarterly a

With Officer; Allison, me and of Jay I Mills, Chief Relations. our Dan of Comstock. our Investor Roland Executive President is, am Chief Harrison, Officer Burns, our and VP Officer; Financial and Chief Finance Operating Ron

over laws. our statements include flip Slide forward-looking Slide note to the today refer X presentation of meaning will I within in securities X, that to please and our discussions

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

the today of I on. each want thank call, take will later who this time those on to listen to listening that’s you and

all year cost. weak a continues had challenging we’ve coupled as prices gas natural inflated this we drilling and highly know, to completion be As with

year, about The in by improve beyond. natural natural for year the Looking very next growth and the driven beyond LNG years the natural are gas. gas exports of expected to we’re demand growth from this Coast optimistic Gulf gas prices

day to out. XX LNG total by for for grow the Bcf many Bcf Bcf The export from XX should that years day LNG a per XX not per demand hit beyond day. the XXXX may demand that, And we

on very will our five these Western you deeper continue So later talk of as move learning wells, Haynesville which wells. we’re early optimistic upon a prospects curve Harrison the the first up the to to we drilling about Dan play of results about based

gas Western Haynesville exceeded this position substantial The will efforts. our the also we’re year as the the grows. investments natural future making that growing acreage our expansive the dividends through in expectations already ground in our on for We’ve on leasing pay demand

this the future. to investment on We’re the this build making year foundation for

same natural the sheet protect stronger At we and when gas had we’ve time, mindful strong created the prices. balance last we financial to year liquidity been

the we quarter second for results, over in next were were the low by prices go by violent will had little very storms that gas So June hour, noisy natural the in disruptions East marked which a caused we Texas. on

only On natural by Slide in financial second Slide cash we of X, and We sales, quarter. gas share, in million summarize contributions, hedging low the were generated Oil adjusted X, With The or $XXX if positive borrow the had million and the that million. in the on million $XX flow quarter. very we working to the prices impacted $XXX including to gas cover capital $X.XX EBITDAX operations of there, quarter. heavily $XXX were you’ll was highlights quarter. overspend per realized flip from we results the the

horizontal breakeven Our drill XX.X wells successful feet. lateral equivalent initial Since and length in cubic the average net Haynesville XX,XXX production we an net rate XX just XX of sales to connected XX shale with call, million or net quarter XX was operated average conference feet operated over Bossier income adjusted an the or day. wells the of last we’ve per with for quarter,

the success exploratory play in great innings. Western our early having We’re in Haynesville

turned fifth shale. strong including recently to and the wells production first were fourth Our rates, in well our with Haynesville sales

competitors is shale. success in The We’ve completed four away. very by our contributing gas the in to Bossier wells have also been adding keeping successful low been position. environment our extensive first The lease price to

to Roland? discuss results. now Roland to I’ll financial over turn the

Roland Burns

four, On Slide quarter second Jay. we financial our results. Thanks, cover Yes.

$XXX higher as our the $XXX quarter. oil in X% We $X and was million quarter quarter flow which EBITDAX second Low second gas quarter which just significantly reported of million, to XXXX. quarter of X.X during we sales income per was compared the second XX% Jay the in Our second of the gas natural were above impacted XXXX’s in to production and than Bcfe of was prices day, quarter. breakeven net million level generated adjusted lower for as XXXX. million cash quarter, the $XXX of as $XXX compared million, said, the second

first we year. On financial Slide half of X, the results the have for this

XXXX. the million, we as of last and sales first during totaled reported of X% million period cash the months the first which in $XXX XXXX half first We six $XXX XXXX income of EBITDAX first to half which million gas of was was a year. per net in the compared XXXX in day, million also flow $XX the and adjusted the first averaged six first of million, X.X six third lower were of generated Oil half to as production XXXX. same months of $XXX for months. Our higher the Bcf compared $XXX than

quarter. On Slide X, in price gas we show our realizations natural the

the the average $X.XX, spot Hub price Henry During of very and in the same NYMEX settlement was price of daily the averaged quarter, quarter it second close $X.XX. to

$X.XX differential gas Our the reference our price and both to at price. the realized reflected second during to quarter price – $X.XX averaged settlement a

third Katy gas. XX% another price of $X.XX. improvements a quarter We’ve in profits our due improved in price gas our average we’re been to of the about realized to also hedged, and Channel Houston generated levels improved LNG following realization second normal by quarter, prices natural Freeport excess some million of more the the In differential and the $X $X.XX. and transportation Haynesville facility. gas the using Ship the This to quarter which hub This return in the in resell buy our to party restart

our our cost in operating margin. detail we X, Mcfe per Slide On produced EBITDAX

the startup Mcfe more connect area, see to cost of phase to as averaged related facilities $X.XX rate. gathering in quarter, Haynesville and the unit in we’ll than improve our operating the future. our costs first second sales quarter Western Our per we $X.XX are own higher treating increased The which the

our quarter, costs unchanged at and Our $X.XX during costs also $X.XX lifting gathering cents. were the were flat at

taxes Our compared level. $X.XX quarter increased to first the production

G&A came the $X.XX which Our at from in is per quarter down first cost $X.XX rate. Mcfe,

Our the from XX% second in quarter, EBITDAX at first quarter. margin hedging in in gas due experienced we down after lower prices the XX% the came the second quarter to in

the we X, this Slide for spending half and drilling of other activity On recapped on our our development year. first

six program. first spent shale on including months, of total drilling on development and $XXX million a So Bossier the operated Haynesville $XXX million activities, we our

protection, the first to and These Haynesville average wells of operated shale net an Bossier XX six non-operated production $XX million of feet totaled In cubic and XX wells, development had operated other on IP installing this projects, XX.X wells and billion. another XX.X workovers activity, net Spending rate including other we months or drilled offset per XX year, tubing, frac or sales. day. turned

X almost Slide borrowings our of liquidity balance We credit of under total facility the with given us the our ended ended financial in billion. recaps $XX billion We end million $X.X sheet quarter second of second quarter. $X.X quarter outstanding with at only the the debt.

Dan I’ll now over to to turn the results. operating discuss it

Dan Harrison

second that divided into is a locations. breakdown is drilling between inventory and we four XX quarter. the Haynesville split Slide of end our buckets. The now Roland. It’s of Thanks, have inventory drilling current Bossier at the Okay. the shale

X,XXX X,XXX to Medium short feet. are feet. laterals X,XXX our have between laterals We up and

XX,XXX X,XXX at feet, laterals out long our extra XX,XXX Our past and feet. laterals to long

across non-operated X,XXX Our stands operated interest XXX at working the modify drilling which at the XX,XXX out gross success total allows possible This a and across inventory. to X,XXX average XX% locations, represents long XX% lateral inventory stands where operated extend future to working equates The the The drilling XX,XXX inventory. our foot inventory now into locations of our a gross interest us net non-operated to and program laterals to X,XXX locations range. locations. average net inventory,

XXX gross XXX operated inventory, length laterals, short have long extra XXX the Breaking we laterals, XXX and laterals, laterals. long down medium

lateral bucket, the greater XX% operated We Our from foot feet is now is or full gross and inventory our feet. XX,XXX operated extra Haynesville first lateral the long two-thirds in in inventory gross of of The exceeding which X,XXX has XX% the X,XXX the we now had of at slightly split at This quarter. X,XXX in average Bossier. locations length XX% feet. than end have XXX a up gross our inventory is the and the operated laterals stands

provides us based years drilling inventory locations future Our XX with activity. of on existing

we chart have outlines On turned as drilled that sales. our Slide on that average length lateral progress based our to XX wells the on a date to

lateral still program. up quarter, feet second XX,XXX feet, thanks we at an long to feet. the the XX,XXX XX,XXX our of lengths turned range wells The During record success from sales average and our individual long well to with feet to of continued length lateral X,XXX stands XX

had XX,XXX feet. we During feet, sales of feet, laterals date, feet. past exceeding over laterals the with XX XX,XXX that XX,XXX and laterals the four turned XX XX,XXX second wells including eight wells out drilled a quarter, we had drilled over with wells laterals to XX total have of we To

lower while turned quarter, first in well section second mid-Bossier, two the sales the well we the the #X additional During new the the our Haynesville in Haynesville. of in Western completed also Ingram is had was the #X McCullough that wells our acreage, completed Dinkins

average to we’re Haynesville. and and are now turn vintage Western These the fifth fourth XX current our end, wells wells to wells wells these of wells sales be feet. by long. planning year XX year schedule, to completed will execution, end another new over beyond in extra and our producing be XX feet length our on Based XX,XXX of XX,XXX and long will the Upon successful extend be that is XX,XXX foot XXXX approximately expected laterals lateral

feet XX feet the with our last lateral wells was a turned new The range laterals up since ranging XX new from We’ve X,XXX of feet million cubic a time day XX,XXX feet. sales with XX,XXX to million the XX of individual The feet average XX test rate length and outlines XX our Slide million cubic activity. to an up rates day individual to tested from call. a day. IP well average

this well the first the Dinkins The in well X,XXX an the the May. tested had turned X,XXX turned lower section vintage foot well sales acreage. our the a IP XX lateral of to Included long completed the lateral, was with fifth Ingram wells feet We interval. in to are Haynesville McCullough The Bossier, was that day. new quarter the completed it of sales in #X #X is had we’ve Haynesville the and on It fourth an June. and well long and in mid- well Western we a million rate cubic foot

we cleaning to expected are very this in achieve day The a IP but rate are is IP achieved feet is the well cubic XX we future. a higher and million rate a still day, near up

we’re sales, the completing in to Beyond turned and Western seventh acreage. the Haynesville process sixth currently wells of these wells on last two that we’ve our

We of expect to within turn the of both to sales next these months. couple wells

running Western we back one rigs month. increase our that addition, but currently soon Haynesville acreage, will In later on are this to rig two

through legacy core benchmark wells XX cost than our all quarter feet. Slide the covers East Texas position. having Louisiana summarizes for X,XXX our that acreage long laterals This D&C lateral on wells North greater our are second in

East lateral During core and the wells. wells our quarter, our XX benchmark turned XX the XX of and Louisiana we long were North wells acreage sales on to Texas

which In to year the our XX% XXXX a first second the is D&C foot, D&C cost. still per cost $X,XXX to compared and decrease full a quarter, compared X% increase quarter our average

which came in quarter versus quarter. a is the is we had cost this at of $XXX cost length quarter lateral drilling a the the decrease foot, drilling X% portion to first first longer decrease a to attributable average second A compared quarter. Our

in $XXX came to a is which foot, Our second first cost at quarter compared the X% a decrease completion quarter.

We our the second activity decrease costs of during the service to drop have levels since begin quarter following the the first in seen year.

costs these and quarter. throughout continue third the will decline We to service expect fourth

currently of has At the the June, running we six which a end fleet, in rig from drop it’s rigs.

of plan year. to are month, side, the back and on rigs, end. we the level rig, through running to we frac will stay three is will – level also completion take the However, crew new three later crews us the through stay which we seven at at And we’ll which end the also frac be of delivery we will taking this the year

the a of of kind that’s operations. So summary

the to turn over Jay. call I’ll now back

Jay Allison

Okay, Dan. thank you,

this direct to If I as summarize for will foundation we’ll where you’ll back XX, it you we on We to turn outlook the we Slide a future, our Slide year XXXX. built in where XX a view our drive growth. look future year that

LNG in growth positioning is in driven the on by the business focused is our to substantial Our for benefit that the from for natural growth year region demand plan in Comstock exports. this on horizon, gas

to the working our Western prove two play leasing up our a Haynesville to new that program. end, complete with program are Now we and rig in

currently active approximately Haynesville, we Dan we Now, XX% in only targeted our rig mentioned, of have Western and the have as one acres. leased

the We’re almost finish line. at

in late lower the our the for environment we we’re in maintaining new Roland to investments created natural a released and same time, mid-April we’re earlier. pull drilling to await currently remain prices price in delivery on strong in six of big focused on as to operating talked sheet balance last making prudently about and we footprint rigs this future year. rig. March activity At order to we gas response We’re experience, activity to as We We year. Haynesville managing level gas the lower our legacy continue respond two rigs our the

leading natural gas natural than current the in environment, our gas cost substantially Now, producers. structure our an is low as is industry the other structure price cost lowest asset lower public

strong in of the liquidity, we share. $X.X at stated we’ll our to And release, quarter. As lastly, per end very which maintain financial continue the plan around second $X.XXX press totaled dividend quarterly the common of billion our retain to

the Ron Ron? rest the now I’ll for have provides the guidance specific of year.

Ron Mills

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

expected CapEx and $X.XX between $XXX guidance year to $XXX to The is range. $XXX the million unchanged D&C third at D&C million billion range to our remains quarter CapEx million full

service in of improvements of believe costs, While deflationary XXXX. most those seen we’re seeing be on will signs pressures we

the $XXX infrastructure other of and to to continue spending, quarter of we $XX $XX year. million for to full $XXX to $XX during million the $XX budget million to third terms and In million million million

activity. spend to our to $XX now program noted leasing million on million year we for this $XX addition we In anticipate drilling what above, spending

$X.XX full both LOE Our the $X.XX to year. the average expected for and the quarter

range our year. expected transportation be the for and and gathering are $X.XX While quarter costs in the the to $X.XX to

Production million full $X $XX per million and the remain the a rate number. to total in $X per Mcfe. to $X.XX quarter of around to in and the still ad Cash G&A per $X.XX the DD&A Mcfe represents million $X.XX $X while our expected in million quarter third to to valorem remain $X.XX to expected run non-cash year, $XX that taxes roughly million G&A for range, while is are the expected is of to

total in to increase remains million this XXX% rate interest between million expect Due and Tax now reported million for to cash still of $XXX $XX quarter, range, the to to XX% year. the for XX% $XX expenses defer in the SOFR $XXX to expected and rates to taxes XX% third year. the and our million we to

over I’ll to Jonathan now turn to the answer back questions. call

Operator

Rice. of And Charles comes Certainly. the question our line Johnson first from Meade from

Your question, please.

Charles Meade

Good the and morning, crew Comstock Jay and Roland there. whole

Jay Allison

Charles. Good morning,

Charles Meade

well best recent offer not two want but million talk on us versus XX you most ones, stuff Louisiana there’s Haynesville the the you a And can points? IPs of side, wells I rate, what how day, these what million delivering we’re help $XX doing right? on of things that So – million great on more just the with seeing other detail but about I there’s Western there congratulations wells, are the or Jay, but defines – other some on you decline, a these mean, to these XX I’m comes kind see best and IPs day? on a it of more be you can Haynesville the on would side. general, contextualize where some in data what on, may you’re than we will stout XX That’s – the $XX just – to the your Western if that. in some Louisiana the even a that are thinking

Jay Allison

I’ll probably, I So wheat want – get. how Charles, of I over Dan. deep a don’t it to you turn to know

many on backwards the we’re and that leasing we mentioned until mineral lease of say, And the acres – we’re have commentary, at them. to about careful is think probably position. And and end I to go want what want doing very like acreage But the we’ve I’d that through with owners, lease, we this. how discussions the it we leased? all. we’re we’re – have I our that recognized XX%-plus start and we acres know all disclosures we I

So good I a think that’s place start. to

So we can the that to end get XXXX. in of

on play that in referencing, this then And the unlike play I would Louisiana comment wells that drilled. we’ve Remember that you’re we’ve that read about. just the is

the so on wells been inferior have wells. Haynesville our drilling We or They’re they’re the not the have that And the don’t issues wells, contiguous, block wells. infrastructure we a we are takeaway, Bossier horizon. bigger any have own we’ve much the

Haynesville Circle that Bossier. to as we’ve and to no at, that we laterals one drill effectively that drilled typically XX%, have we So drilled that wells extended Bossier. a proved we And but includes these Blackford them that than your better a M, is a is Casey them – as which lateral depth Campbell, will heat knowledge your has was at the the link with could we’ve XX,XXX our really Bossier, to that be XX% Bossier, which encountered feet, drilled the the the we’ve

to Dinkin, then Bossier. is get lower which a charge, you the And

thing the we Ingram. Haynesville, McCullough have commented with know, So which out we’re, which the got and completing drilling time, the lower, that Ingram, now KCMS. we’ve got then glass. now, then the stick and completed we’ve the drilling fracked Lanier right the we’re we’re it, And pipe that we And you the have fracks. the on had delineating Dan McCullough Haynesville, At upper same then same is

wrap the we I up innings we’re innings really trying this it’s to So under present is look the tree before still and but disclose good, we’re do. it I early early think the say what world it’s to – trying to always –

deeper So I’ll and let Dan me on those that. comments let a little then make get

Okay.

Dan Harrison

Yes, Charles.

to add being TBDs pressure, productivity of really wanted we’re we to here. very drawing the the lot good. I is lot what bottom a So just wells things they’re is the Got one deeper are Obviously, at down. conservative better hole in Jay said how a

really – we We’re could rate make really get created. the wells drawdowns the the good versus trying now. on the good. on got the the in according stellar right what definitely and obviously Haynesville that we a to the wells McCullough, say Because – deliverability of better are well we look to we’ve that’s and well Bossier do a Haynesville is to We seeing managing look the drawdown pressures same super sure get based curves to out type is choke we I’ll the with that what Bossier pressure well not this any are more But just seen just trying on the on flowing size produce the wells lot so our at them wells. IP

drilling ourselves be due just best drilling the and give from standpoint, tougher temperatures of think the so depth specifically and to this started. when into play, the pretty to was did And we we we play, Bossier -- interval drilling initially, And be target the the started looking going getting our it’s Haynesville’s always first going to to into just drilling forward We target. these and primary chance good. going to be success to into knew wells we a it

progress great technically made the temperatures. the we’ve wells, with drilling So dealing

of drilling, lot wells deeper attention targets successfully. the able to the a Haynesville. better to some that’ll been our in So think And with we do out we that bear turned

Charles Meade

Go ahead. great. sorry. I’m That is

Jay Allison

it. two remaining If for paid want I And we that three August, low Western lease when et we Again, in infrastructure acreage. the from racks don’t We’ve this plant, ago that to the for started we We’ve – very years buy we’re four again. the some circled three phenomenal. reason circled are can cetera. and the wagon. the bought Haynesville, we did trying go drilling to all very this to HPC get the with cost XX% commitments rigs, that to Pinnacle go We legacy, bought three, we we footprint.

us give we’re stop a competitive a today, were we So tremendous stop blue all ribbon. going of those or big advantage. to leasing if today we think to Even buying things get

by make well we’ll we’re end disclosure that spending is you to complete we’ll is, want trust on accountable results. we you this what – our for and and the more that sure year we’re that money this us of these Now, have where and to journey

set So as great to question of and the we try answer it have. we as we clear could facts with

Okay.

Charles Meade

it’s also what hadn’t that capital that budget? is – you’re for play does not – I offer – close And it of Jay play a hear you is you that data – sense. just point you That can and detail, makes you or when great more. That is now. budget view to that believe and are among increased you of makes want that the But was before, the I’ll I increased guys those count touched your Jay, want heard changing? view that right me you lease cards from sense how follow-up your But the acquisition holding some great It you’re target to leasing. your leasing or done. one does into and want eager on is on, XX% question more changing kind that I don’t

Jay Allison

to when up up a the you open years and budget one middle. geology, ago, you acreage clean as dive in there’s Well, come geology, about maybe – ago, right? think some And the look into I two middle, you year find years you all out you want it’s three the upon with ago, that’s

So it that you middle in drillable. to really X,XXX, X,XXX, the up X,XXX own the acres clean all add to make more you acreage X,XXX,

X,XXX, whole as we these with there foot as spotty Again, on this slide not program, whole why of the laterals. That’s kind XX,XXX, said, lateral Dan XX,XXX and seen. XX,XXX laterals. a we’re can trying XX,XXX, laterals the Harrison wells get to X,XXX, foot you’ve you So gave extend lengths, your out

you at that see up one a be so would now clean you couple say, it time, time in I lease. oh, of to some when not added know dollars see why really to you ago. It’s long understood can that We peripheral. all we we’ve kind that middle trying to of spots the that extended the groom million didn’t We’re this, available

to own nothing we have there’s that acquire all. to on the any at we’re peripheral that So size really of trying material

a a just It’s cleanup. it’s like mop things cleaning So up.

Charles Meade

I for visual. appreciate the Jay, the taking thanks questions.

Operator

Thank the question you. [Operator comes Derrick And our from Whitfield Stifel. Instructions] line of next from

Your question please.

Derrick Whitfield

morning, good And Thanks. all.

Jay Allison

Good morning. morning. Good

Derrick Whitfield

my Bcf If your Well, first which X.X projects wanted given from X.X the X.X it meaningfully an your about for your in trajectory year guidance rate your assume assume be guidance. in fair of average production day, of up per we of could on focus XXXX I QX exceed the question, range, is to the lines? QX. turn guidance Would exit the of timing for low side implied rate the to

Ron Mills

chance, of half. X.X Derrick, we on quarter, to your the math but to absolute provide. third if try rate, create rate, to given you timing wouldn’t that’s for – you sales X.X absolute the you average that can of occur provided rate average that can help – to never a above you we’ve back something first it’s that we’ve Ron. the the close be quarter, in exit The those there’s exit to turn the into that. But have or when There an exit It if depends actual number. the terms

where we is low need should the what quarter of it average to would be. into for your end range, get fourth And that the so to back to

Jay Allison

less Yes. I like – year Derrick, that we’ve planned. or we has think seen more unfold

kind I the the is really second think a of to the – and and be a quarter. have think month supposed been half there’s end at especially hookups, one of slower online I area we very behind that’s

so be you volume you month are of and And away – out these a the for wells. third high these when a take probably half lot take a

higher so get but for out don’t we it. that’s that – the little pushes where that hopefully future, just I run think that’s price in And a in long the a only the setback, production

Derrick Whitfield

Could you for just still what from ask experienced how about operational With speak timing. Haynesville efficiency be with of you I and question that early – caution. wise. the to Western that’s Yes. a to Again, exploration progress wanted gains? you’re fortuitous stages certainly learning different I to of degree you’re my standpoint your guys the going guess, program understanding follow-up, I to a of the help are the curve. drilling tracking Could different targets us understand again, you’ve And in require but understand in

Dan Harrison

So yes, wells say, great Dan. made aren’t these Derrick, is really we’ve I’d drill. this strides, to easy obviously

Lanier, of far where hard thick drilling. it’s shaved off got are well, Peak, are of really wells think We that good they’re and and made wells. days zones. some located, look there which days, and abrasive we But drilled probably hole challenge lot the the we’ve accepted XX KCMS on difficulties Black. KC these the if pretty circulation And drilled made with starting here, near the just it’s good at to with you shaving some is which last we the kind over Travis started I The as KCMS, two a we that. just a the hole. associated realizes have is and vertical everybody a as got really really the strides we and slow XX part And progress. it the vertical of we’ve where days less really part of the M, strides flow good the Campbell off the than Circle And due right

kind two I into buckets. those separated then and – really then of And

high the a tweaking gotten the lateral at better our just days TVD bottom shaved temperatures. depths. just and hole handling is at two motors with headway. We’ve at getting part in is there. better section gotten there the those of performance, running temperatures, made in we’re we’ve what bunch dealing much And and the made these other The lateral. the temperatures strides off assemblies really We’ve We’ve just faster is good performance Travis temperature hard longer in in laterals where things just that we’re and runs. coupled And that the and we vertical up the better really motor our these together, getting better Peak and

we’ve the KCMS this kind the end And of got I play, and McCullough, last M, southwest the that the so, said, well, the the Campbell, like faster. on over where of KC, the we’ve last well days XX – we’re – Circle we’ve

Dinkins. we’ve of side, the County shaved and the of Dinkins, Leon to compared conversely we the on days off bunch So the Lanier, over Lanier kind a the where got other

are – days So things be going of doing, done. here we’re other a got off to think let that got several We’ve kind and not we the things near shave in future. some of additional we’re going us runway to

Jay Allison

I’d because hundreds comment many. a of It’s gave. leased. before acreage allow Dan committed to to drifting. you to if pretty position spend hard we’ve some up, not to are wall that And big to going want be a XXXX, have of few pick will be of a deliver play But money in to we we we’re of right make us you’re XXXX, us that not that I acres all the need think you a reasons gas built need that is with be have a and to that there’s competitive it that XXXX. going and disclosed that again, all assure Derrick, thousands we this really around And we big this,

when give can you the great questions. You answers that these see ask you

up know You and plate we everything, can can see you ownership took value I big part But which the we the and you commitment do feel if think we a before we that as as you should you also the like that it. performance. putting disclosing far want fence great well had around start our to see

Derrick Whitfield

That’s great, guys.

encouraging. very Sounds

Operator

from from And & Pickering the of Instructions] Holt our Roberts [Operator you. Thank line Jacob Company. comes question Tudor next

please? Your question,

Jacob Roberts

morning. Good

Jay Allison

morning. Good

Jacob Roberts

were we protection think will the for what front, for the thoughts hoping be for XXXX market On of you on contracts percentage ultimately the appropriate year. next and hedging

Roland Burns

this Roland. some to not our our Jacob, yet. positions presentation. Yes, we’ve is strategy started talk Yes, ready we put of show as in kind about we’re But in to XX really

XX that out, we’re then we’ll kind we kind program. to can on as of of meet our and continue You where opportunities see starting execute goals, hedging our see

Jay Allison

come see And want for way for that type could, at, our there. gas out we of stream month Western We if think swap very happens. revenue we hedge – are in some We typically probably Haynesville. the particularly the I hedge almost or put we’re million haven’t day. we a what as $X.XX have XX%, a so. did to XXX still de-risking good guaranteed in a that’s Prices visual We’ll

So we’ve you about that, we’re on decisions daily and to make at looking – need eyes it. it know, got we our we’re

Jacob Roberts

of Great, color be transactions you showing provide the Could the follow-up proceeds quarter. what in thank divestiture for that maybe the those up future? some and you. was set opportunity on types My on this would

Jay Allison

a not Yes, saw we interests That’s that. interests of that that sold. you non-operated of on are to – last are company. just just we like our And kind we opportunities execute that non-operated core, part small sell the immaterial fairly, some year have very seized saw of as we part

wouldn’t I there’s in that potential future. of So the say that for a lot

Jacob Roberts

Thanks. time. Appreciate your

Operator

from Truist. [Operator Instructions] next you. Thank Bertrand the Donnes of line And our from comes question

please. question, Your

Bertrand Donnes

morning. Good

Jay Allison

morning. Good

Bertrand Donnes

Good morning.

think just I wanted few thoughts I get LNG, but first a to question know strategies. on of peers, on your this, the your LNG answer The to

destination of premium the a are want just all retain the of Hub to their third-party going are way Henry Some traders volumes control some a and to and agreement. full segment through them another taking

or So to comes Jonathan with I Comstock fits decision what just gas best prices. the maybe long-term wondering and where down just moves

Roland Burns

years. directly to we great the we expansion produce we supplier shippers increase to is we where to does are evaluate, already to international benchmark to coming two to to that. and Hub the to kind all we Henry participate to that a That’s the get come something highest to next in want goes strategies. big of with Do we in want especially in out are actively continue want going pricing? we’re big share then think that’s price? be? But that to And Do LNG. we’re continue evaluating, gas with of LNG, Comstock that still the Those to three going talks, exploring And

in on yet don’t think our have I we approaching you best. But answer see for one competitors which you is different all like, think of kind yes, So, ways. it we an

Jay Allison

billionof at or if look facilities away these are we’re think $XXX built. where XXX do our I footprint though, from you being export where miles shipping is, XXX

acreage good That’s of thing. the at new is majority look You a undedicated. the

deal all look You exporters, that with the at with of we we all the relationship have them.

there, fact know XX at and us. at look include Bs we we have so XX, see You then but LNG We demand produced, X – in think the XX that volumes years, And can how you between liquidity of look in about maybe XX, a doesn’t that have look we’ve that out you’re you area export Bs the another look they of day the and we Mexico, probably going you this XX. have, to produce at now been we’ll the the at started. maybe that’s there’s kind And future. you

XX extra company Bs to may great have. currently the liquidity, great the want have low we float inventory, to stock, come position that from. that and where or these in that’s then great And We XX cost

Roland I gathering, we’re have those for think we’re all So into make I going best capture have things. if flexibility to type we to the hurt. to – going assure But can haul, it long tie we can prices that get company, I we’re that’s some not prices whatever is commitment upstream a said, better. ingredient the going think like look at ourself of some an Whether international you, dip, to the seeing to if

that. just We’re that. do don’t We to have to not do going

to going to right. and So we’re the stakeholders this the and thing protect going and the analysts run you we’re

Bertrand Donnes

that then it a from seems answer. – of D&C and that it could are you’re mentioned from you where ground? And specifically your on deflation maybe in rest laterals items the talk just prepared some maybe appreciate I right. on holding like items quarter-over-quarter that the you’re came which in of cost, quarter. which remarks, the I decline and But came you X% the All seeing about longer portion maybe maybe

Roland Burns

a down. probably it was lengths. obviously I Yes. foot we say, longer get, per I’d mean, our the piece pretty comes –longer good cost of

So averaged. wells that look average group of at we quarter, what that the every look we at

Slide back on feet. or XX, the XX,XXX the first plus were specific so minus report quarter, second length benchmark We XX,XXX there quarter on, for And the the in at only that group for when wells you quarter. was nearly the we second look the feet of that’s wells average at

first other that And So the around deflation costs. cheaper to activities I’d just it’s wells we but on turn obviously of the things to drilling the of in the the year. second at second parts to and first dropped is, the stuff of the at really quarter, itself starting the Since of slight D&C lends off the see we’re a lot report come really year, starting the kind say quarter, back down.

continue So those. we starting we’ll and is on say, way, why and to a fourth to when we in the just lot come rig third which the quarter down really the of other and movement items, just seen corner we turn see of I’d kind to haven’t which report obviously the come – is it – pipe have We’ve utilization. straight but back the seen Specific on get rates just come crews cheaper frac seen prices, down. tide quarter

Bertrand Donnes

made. crews frac you the efficiencies, Well,

Roland Burns

Yes.

crews gotten that crews better. I efficiency, to the the we’re have So frac specific mean, running. our

day Just our counts we’ve per have seen increased. stage

happy really the just crews. with We’re

more So faster, just – efficient. just they’ve gotten

the down. the per to on get can paying price, us our – wells we we you’re faster, if production comes even foot If cost same done faster. leads get just which get So

that really to of answer. stuff good up all So a adds

Jay Allison

sets of is is companies, It’s of and And one to two on focus hundreds then assets. the lot the the Haynesville. we have The different unusual this on acres, a that call Yes. got a – Western X,XXX on thing locations different which it’s core, question almost of two yet of like thousands thousands. is, we’ve

end you right? both with you And as could dreamed up you do particularly LNG demand end you you our if you and mentioned balance coming manage can that up your them, never and You sheet, that way. of with, protect with something

that’s a are – in – pretty center we to So we’re that of the be. where place it’s scope, and good a think I really

Bertrand Donnes

Jay. Thanks, it That’s for me.

Operator

from Thank Gregg the question you. our line Bank next Instructions] America. comes of Brody from And of [Operator

please. question, Your

Gregg Brody

morning, Hey, good guys.

cut in reciprocation. Just – the sorry off the to

Just about for expand raising potentially going and the you Western talk a as can capital expand, year? just capital think keep there about bit Haynesville, that to required next the thinking to little you’re – how into you

Roland Burns

Gregg, this is Roland.

addition yes, acreage. kind I wanting from rigs to you’ve drilling to, year, three us the that basically – on outlined the think track our kind to keeps area go go next of on to which holding that in cost, of all

we made and volumes. for gathering, be midstream year’s that if they’re we’ve capital, be so would building as longer to out In year, plant those Pinnacle and much investments we not handle larger treating look our there’ll need really a to next to upgraded addition investments for our make. ahead, because there next But – assets, both –

handle build exploring creating I capital needs the separate we’re there, in kind midstream entity of So kind looking, that we think we’re of a future of will that out. those as

the on us And to control, company. relying a midstream third which also allow in party versus processing

right now drilled the will the in like Western in is one be a it from Only that Haynesville system. lot And wells here that. see so in of our forward been you

So the maximizing to of price it’s the also is only maximizing to but just get, barely the not the control, value we a starting. in timing value But we control. ability gas lot of see maintaining

– partners seek out might that next infrastructure to out partner five over the building building – in we with years. So us that

Gregg Brody

next a years. build So seek there Is over near-term? you how timeline a that’s the over you’ve Do that, said you’ll that? think five you’re about it out partner the thinking

Roland Burns

needed kind to room the purchase a the construction us we our handle as was made have items great grow time. in you running that upgrades it’s year. We yes, look There’s last that basically that. not ahead, need to – near just a But beyond a lot next capital for us, longer time, acquisition which volumes, longer year. Legacy gives – minor the to lead the what year some we just of we next the spent bought make Yes, time, to for some

that planning for planning we’re been see we structure is to future, cost so that the and out like create and our completion could doesn’t burden want past. in that, it’s we’re the So drilling but in – be budget more but midstream to coming – that those that a expenditures

Jay Allison

Yes.

upgrade back to us money it acreage it line high – going quarter it. and answer pressure do. we we’re spent the tells do repurchase again, pressure to second When and bought XXX and is what XXXX, Pinnacle high mile the some in in line I the to some we think,

within We the XXXX XXXX, acreage have plus midway capacity that XXXX. this through XX% we gas of in to and own takeaway produce that

years, So what us over as stuff we and this the to then and we need it’ll quarters next tell to is have what months will the and a see need de-risk midstream we do.

anybody We to going midstream. ask to not to gas sell want permission our our though. to We’re control

want for haul, when there home. to a We is we them take long have sales. So we a these farm the want home drill to wells,

got Now get of is mid-XXXX. takeaway there? and between we’ve plenty XXXX the it do how And XXXX, you question

Gregg Brody

some mode it. well, cost Got think And for that material cost we then the some year? a Or per of we do do a see you just could do to on improvements next Obviously, we have how service development that but you deflation, get need progressing? to to happen? see more

Dan Harrison

we inflation we in, like just on But the mentioned the great in in just you’ll in started the did number get to cranked efficiency strides, as you basically well. and started get when we gains have obviously and I obviously the definitely before, We’ll right days see first up the drill. place continue all of Dan. made kicking had wells to lower is got we mode, This cost. probably We improvements development when

start rigs better practice we you get more you at get dropping Anytime regard. based that coming that get the drilling next down will So and things just on some efficient run pipe. little see into the you the cost, got more and it, do coming year more that’s and just we’ve you other more of a we doing anything, cost kind at down wells and in

Gregg Brody

is stares if our one to any capital figure insight that, then And had and then and think asset you that’s that’s just that what was know the sold million. trend accounting just tough I noticed helpful. of rest analyst that’s $XX could wondering for going was on just if sale about from if is – out, some about, the in things, really pesky year, the how the credit guidance… I That’s working how a – on to I also you – the updated especially you an at to perspective. curious your the in I

Roland Burns

our capital working there’s rigs. Gregg, way yes, capital, the last – activity now level, it reduced seven for has a think best trend with year, it since yes, the to but Sure. I – level and stable working it’s the down fairly

you’re of So stays of then part that consistent. probably capital. that means kind the working The payables

we working item And had is driving the very capital so obviously the prices, other The right? low very, prices.

big in more So of capital that’s quarter. you – this the forward as improve, collected, we year, those with that. that you But a see – go working contribution shouldn’t receivables prices then as get as won’t see you gas

You’ll see the opposite.

– it, change constant, levels have our in driven working You’ll if real the think just think I be just prices. by going – I is so gas about about, you’re thinking fairly if really it’s our really in to stay spending you – can capital think

they the higher back go some prices lower, if a – giving – the – be lower that gas obviously more working you of there’ll we’ll get some. the capital. So go be And

of the out the basically obviously quarter, the how play that’s it hit rest big year. This came think rock year, I the bottom. you second can So see contribution because prices

Gregg Brody

million $XXX ballpark a it is that… there much number of $XXX terms reverse Or closer a is Is million the how a of in good guess? to

Roland Burns

No.

depends could price I all you’d I think you future, in the have it’s is – give a on me to what number. and tell gas well, the how, it

then that. it’s If dramatically a year, prices to they number. a last gas then were do improves modestly it’s going if where improve if So to big obviously, – it’s modestly it

it’s unless what it And was big year, through the all think is numbers. don’t in as I last so that’s you’re gets – that it flush as seeing

criteria, any – last a always return very this of we’re production proceeds always whole that. doing future to but if non-operated, opportunity lot is look a answered that non-operated to non-strategic can open we there’s sales the year, not do small, properties On of material Like from do, and the reserves stuff so before, part year, our that. we we to to meet they sell a

Gregg Brody

that’s then? And sales your in guidance

Roland Burns

seen we guidance. Not Haynesville. I see non-operated we’ve reduction to we the sell off – two production, of also think in things and did non-operated because Yes. Yes, in some plus activity but our huge choose only a

A of You lot notice the other especially counts activity, back private rig way have pulled operators ones. the the down.

compared lower will we come to gas that going last forward. strong year, non-operated lot So just when are back. to how again that probably would I And activity just track think a prices

think its not… I

Gregg Brody

I appreciate the time.

Roland Burns

about part anyway, really It’s talking not percent of of you’re there. couple numbers big our a here or a so

Gregg Brody

it back. looked I insight, what passing the the the and appreciate mic I’m That’s guys. like. time

Operator

from of Thank comes question And Investment Brothers our next Tuohy you. Instructions] Research. from [Operator Parks the line Noel

question, Your please.

Noel Parks

good Hi, morning.

Jay Allison

morning. Good

Roland Burns

morning. Good

Noel Parks

you if sort changes couple a issues, but about things. couple corrections we or these a of Thinking of apologize of have Just these or touched related timing on and one transitions ahead. already, couple time I

highest long So we’ve had the been at this now that interest rate time has a point environment and presumably reverses. some

on cost your thoughts pace. how fitting of be scenarios just so into might And about development capital

it’s level of And where new sharply then going function limited, this the in near-term years. been capacity over step few also now in we’re the LNG but the to up next ramp kind has

like about try at it to I and fact be you a thinking if longer-term sort you’re so of for give either you does to on years that looking direct maybe if LNG sale what thoughts trying or any do are [indiscernible] or ahead, wondered might other do. durations you just third-party that’s contract transition we ahead maybe thinking And might then of types or to that know something the the arrangements, you

Roland Burns

the – we’re rising had, so other the thankful rates, think of a lot interest those year. locked I first where Yes, I are question our and capital you rates interest good a that last that’s question. mean of in we Well, that cost

– having the to significant into to go have back costs. in markets really higher So interest debt see way those to bear to and don’t any

a issue us. for that’s good So

to obviously want sales create from And connect then demand, of if to long-term the abilities and and control you of our to look LNG midstream that’s shippers increase ahead LNG them. to with lot and the a why our talks part our a to the pull to big thinking we

think XX-year, contact afraid of if the you were did I we they’re our longer-term look we large contract to new deal about as up we to of the recent supply happy three-year not we’re as at buy can that to a one with duration commit think most one durations shippers, a on, so as I point LNG we’re finish to long it. early

ask them what And to customers they we found always exactly be taking for. great

they – part them being So we see of as a growing our market.

because contracts would I And the long ability to so to think want to obviously sign them it as to contract they we’ll the – and get gas it. them we guarantee happy for supply a are gas really the if buyer be to they as have longer-term for

Noel Parks

at harder following And of on we’ve them maybe progress question, trim early in handles might the aware Hayesville, the you wondering, of consolidation any have just Covey struggling of then the what than and was outside? course curious, in exit little were still are make of to the wondering a technology to are and done for Thanks. maybe deals other the pushing technical of sets Great. that after. years with you’ve any had work limits just – them of I’m some whether or entrants idea of are I’m other a one to their what and this was can you had rock. to can achieved lot thought up be out the Park and from with they of the the maybe looking a lot sort it that the of gotten positions possibility that be

Roland Burns

I and edge in our Haynesville But the – mean, I I mean, well. the mean, think that peers Western don’t there our them think really for with observation. I seen leading we’re I don’t us. of I think think probably I one pushing so. maybe generally, we one Haynesville, see other do we’ve the is of

Jay Allison

company we’re tell an farming mean, company you’re gas your Appalachia, them. a in cheerleader of biggest and each all got and for we for Yes. to gas cheer Haynesville/Bossier. company oil the I we the Look, want you, or natural No, a you’re other. whether I’ll

and think will does everybody really good. hope good we we they So do

Noel Parks

a Thanks lot. Great.

Operator

Citi. Thank question from Paul of from you. [Operator the And comes line Diamond Instructions] our next

Your question, please.

Paul Diamond

for good morning, call. Hi, Thanks all. my taking

cadence Haynesville. Just about one that you in a quick Western the bit development kind a talked of your

Bossier? several any between Just how wanted your was versus years, there to in on the ideal next the if any see breakdown the ideal sits Haynesville over targeting

Dan Harrison

Yes.

So this is Dan.

bit but a know we we – really earlier, you can, question. I where good So obviously, is don’t to target heard me, our the stated it’s stated drill really deeper if are a is that We earlier, this little we Haynesville there a being look play. to a just really being closely it’s kind – at high and this sure. that – of We make temperature

Haynesville temperatures, fifth our everything obviously a settled the with We’re our well, put the with first four initially, here, have with why we got target that Bossier the drilled particular little dealing didn’t any comfortable is problems We we going well, bit. out the we chase kind and first some the targeted targeted we’re on to kind any of down Bossier when wells we to getting of our which progress that drilled. made then rig we

we’re the next wells drilling row where a And going wells, targeted now. we’ve we’re after got – that, – Haynesville. two then we’re are Those in the We be going completing Bossier to wells. two several that to we wells

about take end so look, you we’re through outs kind just long-term we’re you if just versus Haynesville. targeting view what XXXX, of the if So on Bossier now XX/XX of a right

But that I smaller ago. that will a months of Haynesville, say percentage was several

the down in So will half and I with progress these the see days just the out the wells – today, next at these future. But as get – and today half. and continue years a targets temperatures today some become of looking better dealing of on think the list will make end become we’ll is our X.X probably probably on we’re Bossier XXXX, snapshot for think are wells, about for to – our as that we I get Haynesville

Paul Diamond

of quick curve? or follow-up. just the you kind And strength Understood. of – the about and of potential resiliency return Thanks clarity. kind do timing for current the and How given activity one potential XXXX given beyond the the guys think for

Roland Burns

what I market, to I weather factor upcoming the think determining to really what is we’re summer waiting the materializes, on what there’s see next think a gas and And prices a in basin waiting be the the focused a and on really think out inventory huge or they plays see in the hold I’ll how levels demand factor of do. demand? I still they everybody’s the really is – getting in winter huge this over factors will of drive – the I those really kind as return next late? pull, Were are the happens All do start set to – think – for activity. they to lot a this there’s with the quickly year, because along year projects pull early of next stage

wait I think most right operators and see are just now.

Jay Allison

we the months? not Freeport said, we offline this it or go gone into and the now for Bs if right of if surplus if could a would But exported. we got average. Freeport, he storage do been mean, we storage, asked gas above Thursday, had those would’ve should I And that been this, overall all every and Ron what hadn’t would have to five-year five-year average, injected normal do X what XX%

If would we’d you deficit at average, a five-year be on number the about have we look where today of the X.X%.

think doing sudden all things. storage, but exportable a X injected the I a take So and into misunderstood that it’s little bit it we’re being think now thing, you marks day, right I Bs the because gas still a changes of

gas now price $XXX, they right remarkable. $XXX So a is have pretty

Paul Diamond

for time. clarity the and Thanks Understood.

Operator

Phillips next of to Capital Securities. Johnston comes Thank question Instructions] you. line Our One the [Operator from

Your question, please.

Phillips Johnston

thanks. Hey guys,

follow-up you’ve Jay, M, of of time, wells amount the I pushing but Haynesville on of interest are but the Or in well X,XXX think Charles’s in isn’t for fair the to foot, say guess, and a question that Bcf one me obviously Just hope a Circle roughly of do similar five X.X the brought variability? Netherland, Western the you if wells. it’s that, too all that EUR? wells productivity question Would is Legacy, which you this book, Sewell now than mistaken, I’m on much I there’s a your the not per tracking line play higher far, at Haynesville

Jay Allison

one, question. a I that’s it’s I think would No, I think think – good question. it’s a fair Number a really

need to of starting were that, innings, with months the producing we the have what get rest in if engineers I But starting for think wells the is in I well the we’re early EUR is and per see that’s point. and we that a produced with starting pleased think point Netherland eight that point. real we come you is, I think exemplary these very X,XXX. reservoir and they as But Bs, a said, X.X good

go to way the your down is region big And And say, other the are and best they then where say, you we’ve that’s brand Haynesville/Bossier. Dan with and them boy the a so group game, this well, back, you big to and well, can know competitive deliver toggle and really – Texas, go you competitive economic? And you and the that that’s of have or footprint. you a costs EUR is keep the you a where one new as got these Louisiana, have for get or

to You the years, including that budget holders, the after banks that’s equity you have commitment, to owners, largest plus within the an And years dedicated protects operations both committed completion after group stockholder. have trying and years, have A a we’re and to to for the doing needle. thread have bond this everybody, that

think I it. we’ve done

Phillips Johnston

Okay. Great. Thanks, Jay.

good. Sounds

Jay Allison

a That’s you. thank good question. question. appreciate So your I

Operator

Instructions] from question Leo [Operator our from And the comes Mariani line of MKM. you. Thank next ROTH

please. question, Your

Leo Mariani

bit guys, to follow-up little Hey wanted on levels activity here. a

run year. that end like of to kind seven the here, of back end of you’re of rigs through this going So the the it sounds and month kind

Just pretty this exactly small minus XXXX, strip XXXX, one at obviously, time. or this in out at in point, no how prices looking I mean, a at but plus XXX knows constant it turns point have around been amount

can this like with to and given rigs a next guys feel kind rigs, obviously think year, reasonable year? you does as start guys look year production more place that kind the running you So you seven of were seven of grow pretty early to you

Jay Allison

comment, Well, the XXX the just and is script the $X. for your think XXXX shy for is I XXXX script of

So is for I contracted prices on bunch think cost that structure. really rigs good what long-term we’ve those commitment. done not And our of are a

So or if rid rig that. can do add get two, of need a a to we or we rig

to is out the we and subjective change keep figure in all confident goal in of if that. Western and at XXXX the the that probably Our want would’ve Haynesville, any seven. four quarter in core is pretty three We the fourth to we’ll but

Leo Mariani

production seven kind modest itself that growth think And rigs? in a activity guys of kind some Okay. you lends level to of kind with of do that that’s of

Jay Allison

I little the got of out others. of think you’ve right had Western you the again, take shutting while in the lumpiness which the that complete is now, Haynesville bit we’ve some a in to performance,

model and a got in. of that you’ve model So you lumpiness, always then course, have to

got of weather you’ve other in and have rig little shut-ins activity You core, delay. a because your

that’s no, think think now I I – So, [indiscernible] we overall, right that’s have.

Roland Burns

Yes.

laterals think modestly. more and a need As to maintain order the grow Haynesville we the than will reduce decline we Western hopefully wells from and production Haynesville rigs, in longer for lower profile that – the the get more production with our core

so production. or as a for how gas kind of still that. we’d we is of usually – will next fourth weigh where does just on of the lot we’re coming we’ll looking performance out see We’ll that things year, see looking be seeing of the we and there that price we is great, that’s quarters just the the when that based usually environment seven also And it kind budget, do XXX kind of including And factors, into set changed? we a ahead a it well in how we would maintaining as lot adjust December of at November, on now be we, and get but

Leo Mariani

correctly. think If that you saying here. I were still Western ask Okay. fairly the just then sure. on there’s I that heard hear to guys And for you wanted maybe acreage a bit but little limited That’s there, competition for over Haynesville didn’t helpful also I right,

kind just around drilling and up to to maybe can to then and and are is you kind ask prove speak wanted of competition about talk in others little what the of position. there, then if plan leasing maybe just that sort a about bit of just So the

point five got you’ve think I wells in in time. at this

just you the the by of I’m of next provide you kind you point middle it Do kind parts the least five can of but wells if you of where a and is guys correct be feel of can issues four mid you’ve at kind acreage proving of drilled corners this of it like sort with kind on and think I tested something you’d me really any you wrong, that like sort have year, thing most of are do the mean, no guys make look I’ll time. where it kind this in timeline it, the of up. you’ll at seems up good for just five

So maybe position kind all to talk this just about up. your of timeline get proved

Jay Allison

of you dribble we’d this like to go remaining but there. wouldn’t we we acreage greedy, happy, be We XX%-plus this and leased. us. hundreds be we the crystal world would if ahead have I Well, wouldn’t is don’t so thousands to of our mean, want in the we’ve ball, acres, it okay, another get get acre, end for lease that couldn’t out of of again leased but the

I think it’d be a win for everybody.

East, is early West XXXX, geologically. goal de-risk from XXXX, ask end as the program, And maybe this reportable. little we these wells this a of going answer I end we’re it you a whether extend to XXXX, whole and as So can North, the acreage by you with by should the our of as we former drilling footprint have then When question, think far answer. South,

two pad in So that of some drill site. XXXX, wells these – per and then wells you’ll

a acreage we we’ve of so that. do abundance can just So got this

cost of some be Haynesville will be some down well. think them I start a coming Bossier there, and will wells, will

trust we can road give the but comfort to down we you the further choose give the can we’re now. clarity you more get have, what you that’s have to more So we I the or discomfort, think doing right whatever you,

Leo Mariani

drawdowns limited you terms lastly, build up just some some then pretty of those to starting the of of there some And play, couple flat color. wells helpful seeing production pretty good wells? early wells pressure on in obviously the those Are That’s fairly in you’re first history. holding with Okay.

Jay Allison

expected, keep demonstrated, we we’ve wells. drilling What we these

we’re drill seen. obviously not we’ve we’re to continue And wells. So going totally the displeased what to

is right comment about So that’s we all that’s that that the – make – can now.

Leo Mariani

Thanks. Okay.

Operator

question-and-answer back Jay Thank you. session program. any I’d to conclude hand the to the does like Allison program today’s for This of further remarks.

Jay Allison

kind talked XXX Again, Management, come but of which Jonathan. in I today. the adding There’s to us and in we a at broad and people world, view, natural Comstock mean are to some attempting which that need here you’ve conclusion, they Okay, America umbrella. reserves deliver. are inventory, gas to success of

really and Board results. our early management, you’ve your for thank of and employees, given for all to support you thank that we us to the of you this as we our do want stockholder, encouragement major All want report your morning. We time

So thank you.

Operator

program. conclude Thank for in today’s does This participation conference. and gentlemen, the you, your ladies

You day. disconnect. may now Good

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.