Comstock Resources (CRK) 2 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Comstock Resources, Inc., First Quarter 2024 Earnings Conference Call. [Operator Instructions]Please be advised that today's conference is being recorded.I would now like to hand the conference over to your first speaker today, Jay Allison, Chief Executive Officer. Please go ahead.

Thank you. you. Thank to Comstock can XXXX during results view this by the Results and or presentation. First www.comstockresources.com, call Call.You at Conference a going Resources to the Financial Quarter Operating after and Welcome downloading website, quarterly our slide presentation Executive and Roland Ron Investor note Dan meaning refer There Chief Burns, our and Financial forward-looking presentation Officer; our Mills, our Jay X a our our and and Chief discussion laws. include Comstock, Finance find on of Officer; "First Quarter Slide Relations.Please President of you'll Results."I'm VP with will Harrison, Operating XXXX of securities entitled Allison, Officer me is the to presentation that statements and within Chief today

to than plan, reduce now we us XXXX.Then to as XXX,XXX are of of future progress $XXX.X increased Western also days priced pads, that play in our growing bonds the base April in Haynesville demonstrated as offering. gas natural Haynesville. over turned new fantastic. today. our to to the XXX,XXX Each were the providers.On manage allowed Western statements million our no our to be our Harris we to full so the our hands down the and acres Western Comstock Haynesville enabled well our can last thank issued do service acquisition.On strong, to lending million on billion $X reasonable, net on group drilling will XXX quarter, drilling of order positioned XX, to we XX, which the an looks we group, XX, by Haynesville have generation, and such our power X joining While commitment. which our and for been in to bank stakeholders, $X.X call to demand well call.On bondholders, play, I notes held to acreage.In to would stakeholder, be were assurance our industrial natural demand billion to days natural weak clean, one we now senior activity Treasuries acre We've the team bonds will X the of $X.X service from stepped order additional family acres to AI, reduced of give we hatches That XX. to other such confidence report major to in later future have the on substantially prove we responsible-produced including $XXX X, net April be this assets believe on in in deliver the increase Jones gas. correct.If Jones, will wells to us our We're net since many purchased sales. March the you acreage retain XXX,XXX Slide very drilling liquidity.With business cost, production, of acquisition a demand have their our XXX up the and March want power has expectations Dan in recently LNG involved closed during on our The not last including in reaffirmed turn add continuing any stock bondholders billion that Jerry borrowing and our there create our achievements expectations focused corporate X, a our bank that on that new to for with the our for you continue our with period batten our all tighter days, XXX the value Actions active an have gas in well

as The the to years you EBITDAX for XX to over gas in from Comstock the by thank continued the a be financial adding gas in generated our impacted were cash prices.Oil to and unlock million. million we'll and the want we Western per highlights continue natural Slide summarize supporting results we quarter. inventory $XXX are And company, at one net have $X.XX share. weak hedging, $XXX million, $XXX quarter, time.I Haynesville we of the We well value heavily sales, of first of operations in your flow XXX,XXX including adjusted acres or was drilling Resources.On which X,

first horizontal Our was To placement Jerry to our per program. XX in to the play, the our over IP million continuing IP both with feet expansive play cubic average position position new sales wells acreage strengthen private progress million running $X.XX rate acreage Western which results successful of X each the increasing Western ] exploratory average in our XX Ingram we added sales ].We're to the to lateral (sic) in XX XX in in on [ earnings, Martin added rates In of of Farley, average stockholder, Haynesville with to from quarter, our have our feet first additional last length day.We and million quarter, shale sheet, a equity feet total shale, well for with with and rigs in Haynesville length successful the wells X acres and drilling continue and we cubic Bossier acres.Since Haynesville lateral loss of now adjusted Western successful strong quarter. X,XXX XXX,XXX play. XX shale We day Bossier feet, net of X,XXX wells the to and per wells, horizontal liquidity X,XXX major are an to drilling $XXX.X charged our drilled an have net operated Harrison quarter, in per currently of wells balance we completed share have we XX turned and X our feet The Glass, Haynesville [ Jones.We reported operated the we our to all and were Haynesville million pads. XXX,XXX have in net Haynesville play. had the

we these the days.I'll drill drilling financial first have our And the were quarter lower to results. now XX well, reduce over last wells. our to Roland? Roland to days go to continue cost able We

we our right. Slide financial first Thanks, quarter Jay.On cover X, results. All

production quarter the was We declining prices quarter. loss of the XX% of $X.X in the per first adjusted the gas net generated the compared and XXXX.Slide break we million in $XXX $XXX XXXX. we in income quarter oil day Our quarter the first of the and realization first of per our of to in XX% reported from level, from an million, X.X quarter, or the cash gas despite Bcfe our of quarter XXXX's EBITDAX for production $XXX for sales during low quarter million XX% million increase. kind down million X, quarter quarter. $X.XX natural the of increased The flow natural in as of first gas $XX first share, price resulted

quarter, NYMEX lower the which $X.XX. or averaged price first was of average quarter, daily $X.XX, quarterly the Henry price than $X.XX settlement the prices, During the spot in Hub the

the XX% price. we $X.XX, and a our differential quarter during price the hedged. price In differential gas reference averaged were $X.XX realized $X.XX to an settlement reflecting first Our first the to quarter,

day (sic) price October year. swaps to of an we the ], $X.XX. and at realized hedged an this floor swaps hedge price $X.XX $X.XX last ], a we're some hedged of a XXXX for and $X.XX our year, for that in X, floor of third-party We hedge build of improved which swap ceiling been in added of through and our X/X a XXXX in [ million and fourth had volatile at ceiling price the for average price XX% an we Since that of hedged quarter about of for as average next marketing amount XXXX, we this reported, period for collars activity, the this XXX a quarter collars the In update fourth We quarter 'XX have also of price very result to we're XXXX, just a price each well average and added XXXX, year out kind million of $XXX,XXX also of $X.XX day as in hedged $X.XX.So an some the position. of of quarter, our per busy of the a Mcf. a $X.XX December activities.Slide we XXXX. hedges XXX as our we this with in So and we've almost XX XXX added XXXX, We've million $X.XX. we added day lost we adding improving million of then price day for average covering of positions of XXXX [

floor you costs Mcfe as to order of protection. can we to our we put get give of that's X, us and to time And to continue operating continue our XX% very see, add we'll over and look area.On around EBITDAX first $X.XX hedge So quarter. target detail positions our sitting in the per in hedge positions we opportunistically in Slide that the margin to that meaningful that have, to kind kind close

including a of IP wells first in $XXX activity program, wells on billion. directly in sales wells a facility, improvement the Slide April our our spent balance $X then $X.X we giving the development taxes, borrowings wells but drilled which program. that which senior first acreage.On our $XXX quarter.We us this to the on which the the $XXX EBITDAX margin we then was lower drilled, quarter a outstanding were at XX, operations Haynesville our a first same.So to we that XX, quarter I'll have under than had We of remains the of quarter, XX, end offset our little we the Bossier end in shale in per in XXXX, dilute quarter, XX million were saw drilling operating X, had fourth of came for quarter. costs private increased despite the we drilled other notes.As first Haynesville in So notes the debt, day. XX.X, that.Our of activity ended acquisition the pro to ad bank down In discuss We our drilling our senior a they pay after referenced, in $X.X bank our XX%, to of averaged program.Just margin bit, commitment at We drilling hedging on billion, numbers of ] in production lower to we bit on only to [ valorem activities, total the $XXX.X some The credit million spending Dan hold X, the quarter. March prices recap lateral rate. group quarter, offering billion the million spent at turn detail. operating on and up the short the the helped $XXX the that borrowings that costs shares we little acreage fourth additional $X kind and reaffirmed recap These were the million but and year.On average billion.And probably $X.X now quarter The XX.X other after a on Slide million And with which outstanding for sheet the in issued call turned Haynesville quarter. our Jay we to proceeds we of other Bossier produced, in facility. our from for similar basis million to placement. X quarter. $X.XX our elected to our our million bond relates Mcfe in lastly, including liquidity over the our or was That an in stockholder we costs the had some fact on net, our total base borrowing due XX.X XX, per were our did and more the our we -- offset rate XX% to proceeds also used $X.XX million And forma or and of majority offering that slightly down sold Western margin of development

first on interest X,XXX locations, equates across you, Roland.Over operated Thank the average XX% XX, XXX locations, X,XXX of current have on our Total X,XXX this we Bossier XX% at, has that interest quarter. the we have, a which split working gross Okay. net the where currently drilling between inventory.On drilling operated to net represents to and Haynesville locations. nonoperated inventory, inventory.The locations, nonoperated Slide is and inventory which inventory we're is the inventory at a gross locations average the working end

different X our this down split have We groups. into

laterals, end short in X,XXX our to and length feet, of inventory, long fourth up feet. stands the look for laterals, extra-long X,XXX the lateral years feet.So inventory, XX our the chart wells to and that based X,XXX the on on Haynesville feet of laterals. drilling XXX XX,XXX XX,XXX surpassing XXX near-term operated of XX% Bossier.XX% laterals inventory long; in long medium provides then lateral to is slightly operated our and levels, our inventory average This laterals XXX group lengths outlining the over we that our have have laterals Slide each from sales. gross inventory everything future up XXX laterals, XX,XXX we gross now and Our are operated to with inventory a feet of our X,XXX at progress we turned gross X,XXX feet; in short extra at is locations.On feet; over XX% than laterals, with XXX lateral gross activity in date operated foot locations, evenly the longer This quarter.Based XX% medium our long you at average have has drilled lengths laterals, to at at X,XXX feet.The if on had X,XXX is XX split, this us

the During from feet. of The length we XX,XXX to XX sales, lateral with turned ranged an quarter, lengths X,XXX X,XXX individual to wells up feet feet. average first

with -- a longest from length than wells feet, acreage planning price short XX,XXX during acreage, for sales laterals trend in departure not wells stands wells XX,XXX laterals feet wells quarter that our wells the represents gas had additional of low that record are length in any these average an lateral drilled exceed we've sales length average turned we located at X that to XX,XXX XX on last X will mentioned to to feet.XX year.Included exceeding do been to Our turn remaining had We're are for X our recap XX years, and over longer lateral XX we're quarter handful on quarter XX turned Haynesville wells a our several preserve X,XXX our of lateral and this the upward for while lateral activity this our we to due the with were in to Western feet.So of to feet.As X,XXX mid-February. we to this recap still short have some average have isolated we and sales XX,XXX on drilled XX, the including our laterals is earlier, date, we I longer wells, laterals new Slide over lateral drilled feet.On feet, we the environment. last since wells X,XXX-foot well laterals lateral provided XX,XXX wells, the this drill results with we sections expect our well

we Haynesville and we XX,XXX a last rates million feet all We X,XXX our lateral feet the an had feet average first we cubic X additional the the million wells frac The million The test this activity full-time tested are XX our to cubic the on for of XX Western quarter a turn additional have last these and Louisiana X,XXX Martin up to drilling wells X rigs feet wells. core quarter. feet, Farley, sales rate of wells X XX sales the yield X day, And a X new the rigs quarter.Slide are in we turned Western rigs have our through dropped drilling of the in the our the legacy costs our million acreage. wells turned to is laterals up have of East D&C will day, of Haynesville. day. sales group feet.Since our these shale.Regarding wells levels, and since running XX million targeted call. lateral IP current individual well from X during now summarizes Texas Harrison average cubic early length achieved XX to rates was located benchmark ranging running crews. in Ingram that pads, XX individual currently X with our the and increased which the will from ranging wells pads, X This Haynesville Haynesville, are rigs; North well of are This in IP Western first until Haynesville to now first the rigs conference in we Glass, have Western call, any drilling after is with not long X these into X wells both X our we fourth and efficiencies.Now of on

$X,XXX quarter the prices, laterals XX% fell turned wells stems represents rigs benchmark lateral group.In a did primarily costs.As of mainly to relative a increase lower ] this cost the averaged X% the a now all were these which during lower in to rigs. are than compared sales being that core costs to concentrated a at led higher acreage. X And the quarter. our came fourth this X stated quarter running [indiscernible] increase has areas.Our X completion our and drilling our first foot, [ cover compared XX% first drop basin-wide a first we activity earlier, lower quarter. frac quarter, wells, the and wells we our gas the to from is fourth completion XX of Our lateral during benchmark our in long.During costs foot, compared drilling quarter averaged long result decrease and these costs this to all wells greater $XXX were wells the long a costs benchmark we XX $XXX of which on D&C first drilling feet quarter, X,XXX year.Our the quarter, per into fourth quarter the last foot higher of on which The reflects X

holding Our we rigs we stay current end outlook completions at the will has at the for full-time quarter. of the crews, X frac remainder are through us today steady of and X the the level side, running the year.On second this

reported the methane turned improvement intensity a turned a improvement past kilograms working and XX% highlight second years. This of mitigating of equivalent and a feet the higher-intensity equivalent.Emissions X.XX utilizing reported COX gas tonnes sites, an and greenhouse of earned increased XX% improvements almost by emissions increasing over is during in COX XX% tonnes offset COX XXXX. improved the and to production. greenhouse since production emissions. in despite have methane drilling is years.We've Western for production last tonnes gas improvement Jay. focus per Haynesville.In equivalent.We certify over we by turned of Adjusting greenhouse half the rigs COX technology metric of lateral years. sales XXX% X down diesel which on However, XX.X metric the a our the the to crews of approximately deployed emissions to installed versus of and leaks approximately to We have imaging XX% sales emission equivalent.Our optical rig only year anticipate is lateral and just XXXX, per is approximately lateral air XXXX of leak Slide tonnes eliminated XX% COX XXXX.I'll emissions continued XX% achieved the from gas X aircraft year natural with for dual-fuel call XXX,XXX foot newly addition, XXX foot gas XX% dual-fuel X% We powered to and diesel tonnes footage methane gas the XX% to now X our This while to the past lateral turned equivalent X,XXX from related monitoring our of last per by turn the our 'XX, equivalent decreased responsibly over activity, XX% frac to X,XXX eliminated us we improved ability of utilizing to which X% our versus X.X We approximately improvement approximately sales natural our XXXX. gallons emissions our improvement BOE frac past constructed in in the lower intensity over of past gallons XX,XXX year.On back metric gas X.XX%, equipment offsetting metric facilities, instrument of completed XX, gas million years, sales fleet length our those approximately wells, increased our natural sourced.Our of and on gas over XX,XXX metric X

our Thank right. Roland.I Dan. response taken All XX, outlook you, summarize year. would steps prices in of to natural direct to We've you lower this XXXX. Slide significantly a gas number Thank you, where for we

of reducing by released our operated X During as rig first we Dan our rigs, quarter, count X to said, rigs.

first notes and position production year we frac as those said, longer further financial our payments.In notes level.In industry-leading positions, the down our a XXXX, to quarterly company XXXX level X March, expected senior late very frac pumping structure the positioned billion quarter, hedge position, dividend continuing as steps, is add $XXX.X our on million in Haynesville our pro natural a recent over acreage our natural gas remain of XX% be added play, Jerry focused offering.Our be building in gas the of We're hedge up the environment, We saving placement.Starting to $XXX enhanced exports early spreads. totaled Street LNG to no acreage maintain that substantial believe year.The play. late end growth acres. our to in also the net benefit of in which forma liquidity, horizon, is XX% over that Wall XXXX. very with the of is quarter we We'll by Western significantly, additional at fourth of our approximately XXXX begins commitments our an of expected to Journal, April, We bond our exciting to we've starting fleet for our extending that Jones, we're offering. in this the quarter the to level.We performer. end Roland million on well low substantially our the stated natural the extensive XXX January at winners commodities at current the show by other X, from will and than as lower up how NYMEX second asset Western in great tracked producers.We gas half to At year demand in was the $XXX February, strong of proving global the public to on in losers of spreads, currencies low-cost liquidity region any indexes, price totaled just the of XXXX, the driven XX% a for cost performed our Haynesville structure XXXX. XXX,XXX $X.X released the a X continue into growth first natural gas the to selected stock We Western asset targeting through for for suspended ETFs, long-term end earlier, looking dividend, an that from Haynesville CapEx million in next reducing position is private an services.With and worst have invested equity the pressure majority stakeholder, next-to-the-last our our

Now the domestic this arrives and global demand is natural we XXXX when in the question the is on stronger past price natural well reality gas of the the Journal stark entire performer XXX. the Street group tracked NYMEX X, April group. same XX That Wall gas worst exit for for in over XXXX, was company much manage and a as beyond. weak months.So how can as environment

core low-cost year. and Haynesville protect is specific now Ron? our be guidance to Ron rest great the that provide balance We It our answer. a have XXX,XXX promise.I'll develop have to to continue the producer, our continue to proven acre to manage of sheet date area, liquidity continue quality for shown now has some play Western net that and

you, quarter Slide we for XX, Thank full the the second financial year guidance Jay.On provide the and XXXX.

tax $X been we in to which our we related guidance cover is remain taxes April.Lastly, to call from tax February, related range XXX% million the side to million Andrea be on over now prices.With second the DD&A. year by of we Gas has interest GTC acquisitions stock. for to $XXX and $X last valorem and the expense, total versus on XXX%.I'll to CapEx the is for million. to to offering does notes million low is our earlier Services the large to million spending Second release at to unchanged up the X XX% our D&C $XX our costs answer anticipate this year million $XX The D&C rate $XXX the million drilling the and the ad reflect be completed to million, unchanged.On in is only spending cost operating remains the to impact million expected production defer completed, guidance from expect $XXX on quarter as and to lease in now side, guidance funded change LOE, our expect and which now is which second full to XXX% $XXX it $XXX gas our really million slightly million unchanged turn lower The over expenditures on increased real expect year, to XX% to questions and D&C response to side year the Pinnacle who related the XX%, million the rigs the to this partner we course and $XX XXXX.Capital of back $XX of will from $XXX in year, reported taxes of quarter to prior virtually be are analysts still to the expected quarter CapEx to side, the but the of XX% almost the

Whitfield, Derrick first comes question with Instructions] [Operator Our Stifel. from

they're you and Haynesville for questions the X asset. have related both to I Western

Haynesville on to the being noted about your recovery at X,XXX seeing depressed X about per [indiscernible] capital we Xx we're that is a based Bcf the provided, X.X sure foot, about developed the recovery we're investment to present, metrics relative cost the think and the properly environment make given want of thinking that's ballpark. price cost industry. If Western about at in that's of First, a with I the efficiency your you've to Haynesville, that legacy

let's per EUR. So thousand that's X.X foot of call $X,XXX foot it, X Bcf per to for,

that XX% So fair? if I'm expensive, to it frame $X,XXX today. you're industry foot metrics just opportunity to about per the compare gas. more per foot, that Bcf to And we X,XXX Is but more us it of XX% would X you again, XXX% trying know to as recover seem for you

environment.So would stage, compared get unfair. especially view the to double could, it's longer best this I with similar possible to part longer the in you do we're of Roland. larger them is this I ] a but takes type don't of overall, X, is that Tier the we're in right difference the traditional to the superior Haynesville, the to rates in but priced we We're really too reserves our an our -- now it return traditional Western Haynesville Haynesville that's low-price at I Derrick, X out. and it It's finding it's choosing not I think early of term. Western very Tier part Haynesville.But really Haynesville. [ mean, of we flowing the future. investment also wells think think, that think the It's think the we're -- the not I

with performance been well earning have and the EURs performance. And be so we the really very they feel longer-term to that appear by in encouraged their

recently. producing per over only XX Derrick, that's to well had I'll we've and make -- we only been XX started drilling years. have X pad we've sales, X turned X And to wells wells

The think And wells is, any in Haynesville particularly mean, have the that rates, wells job. I exemplary, of play. is so work IP it's any out the drill. play, XX decline, is whether has done And in on I like [ can it's play what a lack all think mean, are. the any the So we our of there. you whether were it's you resource it far core this, get more ] I drill, economically. first new to the in days of the like EURs.And I XXXX, costs seen mean, good we question it's agree Dan I whether the in lower early the But

-- they're one been last Now has XX. the

better.Dan? and getting I we're and down, better coming better are costs these think and So

that add we've absent areas, if in at the move changing optimized you coming economics. kind look -- that the going on you kind of you Those is Haynesville pretty here costs costs set. what when are to of of right? costs, there's small for the you the core, fixed, problems. We that seeing them really of the kind you're seeing are making core. where the side, where at compare right? So Haynesville, Those costs, are know you kind compare while. we mean, Western But improvements the the and mentioned, drill for, there. And you you're really just if mentioned, much we're some down, to started. any I'd that's like like the a in those X I And you're look Because which Western not down, been

core. Derrick, in well X.X the see anywhere may core X.X, mean, the you blue you a X.X, ribbon from a maybe like but mean, goes that's to said, I I X.X.

in the we're large derisk portion not at is to core. that trying a we're if best of of what the what trying best competitive, potentially than, think better prove that Western acreage That's up. the to Haynesville the I is

think I Terrific frame if activity ask follow-up, protect color. [ the success. should how to amount that's resource, of as of ], the leasing recent light then we And your help could HBP in required my wanted just or you about to

those the acres, they're, the I'd XXX,XXX like, we say the acquired, XX% numbers, HBP; of acres round is On are XX-year other, say, that net X%, leases.

year. far all drilling at leased change And we've schedule So 'XX last as for acreage that that our the the our far that always all. that years, that at 'XX, we've really over over will not we then HBP several that rig as XXXX, acreage. if as does to would said And add a [ years, as ] we do like a X.X

So And a are Derrick. if rigs environment. prices in that you, pushed we're at at not HBP add not Thank high, add to all rigs questions. to even pushed all to low-price we're acreage.Good

Truist. Our question with next Bertrand from comes Donnes,

asking around kind potential of exciting off start the to data demand. wanted Just center

have the agreements. strategy. corridor you've you indirect You Obviously, some taken guys have But already exposure. LNG benefit LNG

maybe wondering purpose? something And could any just center maybe with Comstock a a is build-out data direct that or in taking midstream you interest if like comes when tie it So that? really to plant long-term for was Quantum at agreement demand there

it's customers really there's we're really uninterrupted us, approaching got data And question. excited -- have that can great build their and lot even Haynesville a of because including it's centers Western That's -- supply. some power the potential a about that not build volumes, as to supply we are looking where recently are centers they

users, to of an do Haynesville. power our especially And it's and other we generators. kind see Western industrial add So LNG the new element shifting, demand exciting to

to to of be as then we'll and be future venture it's customers relationship lot a needed our the in to in the exciting direct some able think our I selling area. midstream that using service those.So really to potentially a gas add infrastructure

really we to be of much, basket of we've customers want less have there to have other developing. will base. a or in I utilities it. future will exciting part and And hopefully, and us, a aggregators. our the think industrial other And sales customer LNG relationships part diverse of be companies marketing got For some then users much And

[indiscernible], at is XX-plus that, undedicated. of Haynesville you percent if Western our too, look

So looking or as LNG that's gas, or power contracts. to if data a a advantage provide a you're center utility takeaway big whether for a for

[ point ]. a That's good on that really

the maybe go agreement? found Were to the together? The other capital this a And Jones more Or onetime could we get push came don't the maybe question, expect is of cash I in transaction, just the the thing? how before maybe future? and Was part should of ready into acreage acreage? you they around know, you that kind the

east, 'XX had the south, made, I was Pinnacle were that up. There major think, X acquisition.But operational group pull at, we a this were looking that cleaning what secured as where area. that of year, be would all big infield. group be expanded, to opinion, come doing the our pipeline. is [ set acquisition of we've ] kind plant in think August leasing up our it And up in at have now landmen picked we kind boundaries have that those boundaries. years then we've acreage I and acquisitions they're a And of in rear-view looked we this another Well, mirror, close we will And and in larger XXXX. We sides happened inward. cleaning come we able the in just north, able And the just west we with year, several we And work this transactions. sides And it to you to the all are. all kind the And did XXXX, of we're think in just that they're of off that of we the what those our land closed. parameters, we're in XXX-mile

Roberts, Our comes next Jacob with from question TPH.

position be cost circling Western back some could to question, time, core the the speak pulled to on that levers if wondering about Derrick's of just could improvements thinking down. Haynesville also first costs Maybe you in that the over those the bring might

we drill for looking more those to get Just around lower. expect costs lower specifics see to what days to or

has several then times, that and changed improvements depth, takes been days. still day that improvements, progress We've part vertical ROP casing we've have section This time. big We're better -- That's lot see said we've lateral, the and where really a the from we've in working of the we getting kind Obviously, really And handle saved little allowed we've it's also we of additional design the us savings where temperature really that a had some today. the forward improvements a moving hole of we're that the us making those temperature. deeper. made. that's We've the many bits bit and a in at to through our made the got have we're is that lot The which section, of [indiscernible] things section. using, Haynesville. thick a it's few -- Western with

as wells, we in seen words, our lot we've the seen improvement. EURs. that have upside these drill other also of a cost seen numbers. we have this In We in And

going the direction. of both right So those in metrics are

both the rigs on Jake, drilling thing Jay both, we're X is, and Dan And other add with I currently mentioned well our pads. would of

efficiencies in the temperature in to the they plays drilling So being like the driving key, up pads do well. multi-well should a addition as end all

call, this as that Remember, Haynesville then wells just we during started wells. we said out X Bossier. on, drilling the put And we they're

little of Haynesville. de-risk difference a in you a So Bossier bit drilling the and as the it's both

and of offer you wondering Great. if think design I on on any into comment have completion could the staying a design pursued that look could the development so in full-scale that you color. I appreciate you or dozen variation wells any online like. topic, if might same what the Maybe might was you insight are

I'd is last too aways, sales, we also].On drilling acreage completion few and last get we on frac turned design, to design drilling larger down to in kind say to got drill we're I'll X-well out, we that out deep That's of this question. we it kind the be a with still pumped the have with just that basically that development, about held. Full-scale have haven't singles [ really a road start us to pads plan the thinking for a of good because the -- well the Ingram drill question. into with the the We'll drill, but Martin.

and We'll design more to number we're get the wanted but pretty spacing, same, what But Just just the is sand. job. we what well works just we loading, doing -- make sales.Nothing water, that We'll any continue more if to think need see production larger the it have on depends in the that now, a see our XX I how kind cluster all to The a to changes. we well. and the down of clock to different perform us. kind bigger and get We first we'll started perfs perforations data, right on the of versus completion too of -- was tells going here core. turned that really versus that just it

not just looking anything drastic now. we're So right to do

Goldman with Modak, Sachs. Ati from comes question next Our

to cost your maybe It the provide any associated that seems moved on you not, brings you rest of any year. And frac color the Can on to savings efficiency-related operations? more fleets spot flexibility like concerns, are touch if there or for with the that.

a with frac rigs now. that good it's dropping dramatically. due we've crews, the rigs. of concessions And gotten relationship a got squeeze frac with for frac but frac obviously And -- provider X we really the We right, didn't obviously the on on one, we a got did just have the crews, number as pricing activity. dropped we the many some have need we've to Well,

bit think, place a probably, for year. And with to pricing the the little we've I helped put into so rest of able that been us that's the

with sheet any Got management you thoughts it. capital around allocation you are updated about as seeing? strategy then sensitivity here prices, gas and can for you balance the prices the think gas And provide as Understood. macro to the

We months where. spot gas prices, fairly but course, not very be on the much during only NYMEX needed volatile that to monitor is based have prices, that. also can of volatile how we continue, And and

up sales spot definitely sometimes So that. -- a do the scenario, We'll for for some It's be to and able yes, month usually day turn there's late we market-type in X we to not don't We've continue to a or monitor prices. to like then. spot every open strategically shut-ins the that to them react first now delayed type. and of if

And the to to the rigs have of the this to we're in continue ability to defer have the amount to definitely we're weak maximize the sales. We change turning realizations to really trying manage running. wells ability environment. -- So within

to look same So of time, into, to from the ability the we've in which prices, weakness. quarter. to months navigate the company's preserve benefit kind fourth the tool of wanting all those we are X still started expected At to next started in upcoming the kit stronger these already as lock

our a that we commitments frac Like that are have the we frac I long think said key do ability. call, term. earlier we in conference commitments, any is don't have

So very, have big been very pro-Comstock, a those. toggle we -- our providers And backer. very frac can

part the need to delay latter year, the we until choice some that. we'll have if those the fracs So do then to of of

question comes Our Noel Tuohy Brothers. next with from Parks,

just in more I beyond, do that since any X-year got And wells? completions the gotten you tweaks questions forward. as there And you've surprises at I'm interesting representative type as your of going kind whether was curve in are of with going you're kind you're for point with Haynesville wondering working wondering, me of what you've of the foresee guess, little more think just data? thinking. lot at being Western the drilling a benchmark well, to a it for mark, then, I well's to curve being A the see you -- type whether recent the you to comes made that have first I you're first

think drilling a field years the that started plant operational a And Bossier core.Now of X gas that. in and line it can that in first you technology there and ago, seen the was we secured. like here with X.X question mirror 'XX-'XX: is the a major felt When we've field. image That's we've was play why well use I the major shale years it the of there, kind the Pinnacle was over of of proved now kind It's there. we was this to ago, that was a resource drill Noel, 'XX-'XX we field, was acreage a The comfortable, have XXX-mile in all that this the Haynesville? there really

out. Western in that the I know, see to started materialize but right? still have We don't the mean, you jury is Haynesville,

has your 'XX, you completion? you better the a no in Circle confidence period, seen to X Dan, and you a reservoir getting better, happen confidence he better better next back better. more is and year producing is and remember, gives We're changed Again, this really group give M And changed 'XX. us than the and you you little strong in the the next of one. your had Haynesville/Bossier wells, listen you because reserves, drilling? continue have.So are, our months, and and then as gives we there, that right confidence the So little it resource well that outside have they when our Have completed this 'XX, be we group to questions drilled some year now have how then a does core lot 'XX,

'XX. first 'XX, 'XX.So push mean, there out at look weren't to are. those reserves. is exemplary in said went compare footprint. these the upset EURs out, and They very wells that's you'd try in to stomach. think good our I on what we why versus results have looked first wells our you If were didn't an we to compared here, XX wells, this we look like those you what to And went just We secure We if

inventory we And business they've That is us maybe saying. which by so in de-risk far, gives improvements this held control. our seen we've to well to and, going hope our continue solid, what we're footprint, to well Costs, big steady, we them.So this and up say as on do up. EURs, add really that's plan down. now fact,

always a that just don't confidence well because a -- would like less the And have stronger.But we Bossier I has, But add, first we that is too. a of a definitely X bit And little we wells, wells, I the the the It were excites Bossier. out being yes, the the little drill Bossier years what better. Haynesville Haynesville us, mean, our rock. completes seems targeting be better wells, It's of but proof Haynesville. were is little Louisiana, drill. to to really to first than It we've the fact better shallower, Noel, the our latest gotten they're better think think wells field gate complex Haynesville the coming that's they in

really has.And focused. the Haynesville excited we're next about we're of potential So wells that the batch

now most Haynesville the You see formation focus on play, we the the can of Bossier. versus wells the in

Bossier think wells almost -- half I in and XX. have, think I of we're half the X we what,

and about be are we half would right. and on to basically half sales, that Haynesville. date, turned To Yes, Bossier

I'll Haynesville year. leaned will the -- we we've on a wells this have say So in heavier

we've a a progress the success as don't with to we the basically targeted Bossier made so temperatures turn on of I think Haynesville; great X early the of we increasing such the that compared with better the drilling this to sales of performance, Haynesville temperatures obviously much dealing was Bossier.But we year: have be X a Bossier. those we're chance challenge of wells will and early of concerned on. But now just will with that part our and be X total going have high see to

Haynesville? [ the was Great. being deeper affect And of what spacing there question at just sort with ultimately all? ], that be density Western you pursuing formation wondering, the the I about does would of lot Is in a

have expensive, have you're these to you're play is a and for really to you've margin thick. between of Sure. wells.But together not too and big have going wells. to wells -- some not obviously, as them I where going I for deeper mean, a interference that lot I are got in a error expensive careful of the be got to close of more get mean, stuff we've really you're mean, and

this wanted us, for up a it good and also how not bigger what your spacing to frac just to is thinking recovery how what we like about do to the pump development really we going type exact affect that what blessed what's going they Somebody we we get these end show this get, of going a really is other? asked earlier, well spacing.But see be stack obviously will with kind can to we're where the solve, is question of because be? because we how the the see to play. task answer with have that of of we're and to We'll on that future. curves question, about that. know what many top do, we future was that And to, we're And last spacing Part each look

before our decade aggressive mean, with I position, big do a Noel, could And any be it we more acreage or infill drilling.

with comes Citi. Paul Diamond, Our next from question

staying guess, I that does Haynesville, over impact going? do just pad quickly, beyond the in once move needs, touch economics to I you held-by-production want size the term? your Western you longer how see where much

question catch there. full didn't the I

can Sorry. out When the needs, Haynesville? the big -- Western held-by-production you how you size getting see of pad beyond get do the you

we XXX pads. drilled we're -- drill off everything Pad in I multi-well that the the the pads. to for on for additional and if add date Haynesville biggest come have to back size. back by we we'll core XXX Occasionally, foot those the pad. is, pad Well, like, come I wells we and think multi-well built mean, in Western to mean, I

then one. any versus didn't just have we're the Haynesville pad both Obviously, And Bossier at. just our had vast per able the both probably pad, given You play. to to directions from look and wells go you acreage, the

laterals it So an we're like least here at kind seems of targeting we're XX,XXX-foot -- as of area. optimal kind really

laterals, So the and then both and I a pad. from each think from of Haynesville XX,XXX-foot directions Bossier maybe multiple benches potentially in going

hookup. on a a lot few pad in of could future, everything, quite be So efficiencies midstream wells including for obviously a which creates the the

we've that drill everything where we Yes, for additional wells. the come built. And today to with is we them pads pads. acreage. X-well of maximum amount targeted can do hold we We'll these do do got in the back have and in on directions it, drill opposite future But

with line Haynesville, enough in which last is Kind and are year came where of the Western takeaway, we have by along that's Quantum. is we to this same in Pinnacle, going takeaway backed

drill ahead, our drill can wells, that years because path is these all are takeaway we we we takeaway. most not for on but at planning, wells we as planning to own have HBP, literally it plan of So those we're

amount drill big when too.So that's less, typically $XXX, money. And very acreage an this your captured $XXX rare, you very this at, aggressive you've don't if have or positions rare. of that acreage So like make or that's schedule say, is

is, have performance [indiscernible] we is, The is been then it? the aggressively yes. answer The is thickness the yes. well, So has we you is the then And do positive? question have And The captured drill say, answer answer no. there? And you think, to that. well

Understood.

follow-up, back shifting quick one to core. the Just

acreage? likely percentage to the guess, to For plan, QX the I is rest drilled to of Bossier you wells X hold that kind required additional include what ones the in the are XXXX similar of operational

ask again? you that Can

Sure.

should in laterals the there hold How to...? XXXX we shorter so the plan, of of the On acreage. Bossier expect required X wells, quarter to were much those operational first that

more. no There's

trying. that. we of horseshoe of We've that X actually So actually later -- many we're up. sections got we'll sections do where of these those at drill interestingly have going I'll additional left look will of we're that something come these kind go have and any isolated enough, issues. wells to But to a we forward some ahead don't have year. this That's looking

valuable, to drill And they're And drill don't that I think you think valuable them. them. is, the we think key if to enough you they're don't

mean, they're even they're So if shorter, economic. I very

lateral the We're horseshoe the turn excited about call to well the has as it like one that allow and well stranded it to eliminate and section. you shorties, into potential horseshoe It we X,XXX-foot design, could wells. to have eliminate a these on them, those in long a lateral

those So Haynesville kind the thing our to well laterals. shorter reserves laterals and into shorter exciting much you the that in lowest-return will the definitely later do an believe of cost we are because that recover be here of the year.Because in basic so just with projects, do only

the our of ability to and eliminate inventory into long, So a them those lot out of turn it be enhancing. will very

it Allison for no further closing Jay I'd back turn remarks. at showing this to to I'm questions like you. now time. Thank

the XXX area.So stewards and days Comstock. helped your sharing shale kind we over service do long-term and your including want time is recognize banks that us natural bondholders. and we've up world. to the a thank support that's everybody's around miles our developing significant said last other the our us.At supplier market goal, want is as to for has over Everybody of support going Comstock, We good really the I time growing thank thank to be teamed the for we to our mean, from growing operations, Jones over and the know our several want We I gas valuable, and we're companies. us. hundred stakeholders with to that Again, you and Western has thank the money. be Haynesville We Perfect. the with over, to need Haynesville LNG

we're you So your thankful for for that.Thank time.

you Thank conference. in This the for program. your today's concludes participation

now may You disconnect.