Comstock Resources (CRK) 31 Oct 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Third Quarter 2024 Comstock Resources Earnings 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, Chairman and CEO. Please go ahead.

Perfect, and welcome, everyone that's listening in. Resources XXXX Comstock Results and the Call. Conference to Third Financial Quarter Operating Welcome

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

would, to today presentations will you meaning X discussions and statements forward-looking in laws. within the If our please refer include of our note that securities Slide

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me we now quarter. Slide to X. X, back the On let presentation on of the go third So summarize the Slide highlights

continued with by $X.XX our prices continue price to the for realized the weak gas natural be as quarter. gas results average heavily financial Our hedging impacted before

As sales, net loss the was quarter, $X.XX hedging including flow and or our operations million were $X.XX a share in EBITDAX million, our and of cash result, generated adjusted share of $XXX adjusted $XXX oil per the we million $XXX quarter. and for from gas per

this sell update. per operated we to only initial quarter, starting Given average X XX the feet of wells that an cubic the for planned million company's since activity had wells had completion production lower day. last These was

plate. was horseshoe IP to day, million our XX We're which Dan One later. per first well of our which advance Haynesville of talk continuing will rate those initial Western Hansel had about an exploratory

return completed was Western are savings lateral, in well Most Four on XX,XXX reduced X-well emerging get pads. well expected is in early Haynesville, cost This acres. which The acreage X the the wells to to late we pad. well see the not foot those XXX,XXX foot. XXth a an Our per sales of well to a are up cost of we in Western single XXXX. next X a in net importantly, approximately with lateral at the on XXXX to did X,XXX recently that the Haynesville another cost substantially play have now

to Roland? Now results. the through go I'll give Roland quarter third it to over financial

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

third quarter production of XXXX. the X.X than quarter which averaged Our in third higher per was day, the Bcfe X%

to quarter. declining million. EBITDAX oil $XXX gas reported sales the the on Continued rules averaged for this resulted X.X $XX low had in X, $X.XX proved quarter, was an per year-to-date under our to the quarter of we to we've undeveloped Bcfe the loss. generated based determined was prices Slide $XXX We reserves, the we cash flow period in natural our in low third X% natural oil million, months our which and and prices year gas day, and million the third that decrease our per as Again, and to gas prices for in was low sales adjusted in amortization natural in Higher X% gas be XX higher $XXX period X% Production than caused of in and share. million $XXX million had loss The over accounted driving, first depreciation, same months. On depletion amortization X higher quarter the by last in a the cover for quarter XXXX. increase SEC really caused in DD&A the gas the XXXX. compared rate or decrease results. to the financial the of

$X.XX a in Our down $XXX the same first NYMEX X Hub XXXX. On per of months averaged we this million months reported The averaged of $XXX the year X, compared or gas to for for $XXX we quarterly this period million, Henry income Slide in million X flow. EBITDAX of We $X.XX. the quarter. share as spot first the generated cash $XXX the price loss break year million of net is in third $X.XX settlement average natural in price our of quarter price the realizations and

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

hedged. ahead As be the look quarter to will the we fourth -- XX%

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

$X.XX XX% Our third $X.XX in averaged Louisiana. operating that's lot the XX% quarter. improvement quarter of our from a the in in valorem down as margin quarter the $X.XX, compared quarter, and to ad and in driven reflecting lower in that rate second reduction by statutory cost third was second which were production a per improved taxes, Mcfe rate then the the A

costs were also down lifting the $X.XX quarter. Our in

were our to some prior Our in the due gathering from some costs solely agreements. of adjustments quarter, $X.XX is but transport this up period

see to in fourth rate of normal quarter. to expect the back we So kind that

than amendment operations. costs of total months of bank under third day. billion had, or a borrowings over than second given that the new spending gas covenant or ratio the borrowing well. quarter. On At $X our base credit XXXX liquidity. I'll an the our amendment this with unanimously less also turn of for second had electric recap The Xx Haynesville of our we leverage quarter X, senior group the net of We year in we the loosen $X through then recaps from to our year, turned net we've XX.X with the development first drilled million to far activity. outstanding approved of our discuss back closer of the X XXXX. wells XX unchanged of on per under bank Slide quarter. commitment quarter now have. quarter, We've we've or steps under debt, Yesterday, then notes. reaffirmed the G&A bank so facility, ended we million natural X.XXx Dan on $X.X XX spent of billion, to ratio increases an to to to our of and prices Slide our the XX the at X.Xx ended sales development low period the capitalization at $XXX wells us by XX We giving next facility. And billion the activities of operated end credit all in of million extended quarter were drilling of XX.X $XXX quarter remains group quarter this third first total to call quarter. $X.X end still leverage year average our Our the and and our and that And the the the outstanding of IP including the that down less X third other third rate XX.X the million

Okay. Roland. Thanks,

we utilizing allows successfully located single completed If The in located foot, single $X challenging we will by last Sebastian look have before over DeSoto on XX test from in And laterals development updated the $X,XXX will our recently Louisiana than to concept. one we've cost laterals horseshoe now metrics. or call, originally economics X,XXX, economic XX, drilling well limited section us completed a a develop laterals. lateral test, been lower acreage concept, section We isolated section have slightly it's capital we project to a first new a that in deliver our all technology cost the cost. to Sebastian acreage slide reached from an the cubic late performance cost. for be a will a of IP X,XXX of $XX you developed we came short next Parish, successful This improved the horseshoe the drilling substantially from our costs an X million is is X-well well project of the future. based We The million horseshoe feet #X. well have in -- and depicted on Haynesville This the key more $XX on from a sales projects is foot million which Shale. Building have is and the plan year. XX be this pad this being with we drilled single and turned pads slide our well, XX% week. D&C have horseshoe The million, well presented completed represents savings section outlines last would this. The by X,XXX-foot pursuing lateral developed scheduled that early Slide which capital this blocks. in X recently this drilling of with rate just upon our day same additional The

as locations. evaluating of at Bossier in converting short of process match And our the We Haynesville quarter. XX% it view success, the with for stands additional regular is of of future XX by locations. On XX,XXX-foot drilling expect short to Slide third inventory we the that horseshoe have laterals. still end this locations will optimized our wells horseshoe from We're horseshoe the our well also the drilling performance XX locations our inventory our current

operated total X,XXX gross at now locations. Our inventory stands

short our into up broken foot. drilling length. and The locations The less And split equates nonoperated laterals so categories: ] [ net interest. those The which working now and Haynesville bilateral and at laterals down X,XXX inventory XX% Bossier the net medium X interest. which stands a XXX locations, than between X,XXX represents to different locations, foot, average locations a average X,XXX of inventory working XX,XXX X,XXX XX%

our and now laterals feet. In feet, the X,XXX-foot, come operated split stands laterals than laterals. and short long the had medium basically operated XX,XXX activity. On is of is XX,XXX is the Our longer outlining this gross inventory gross have the go turned lateral length and extra-long we in foot average long wells our XX,XXX drilling end Slide Haynesville year's laterals extra of Shale. our laterals, gross XXX XX% longer slightly long laterals, past years XXX our between X,XXX Bossier. XX over drilled The feet. laterals X,XXX that inventory laterals based with evenly this The and XXX based at which and that inventory, us or we now as feet locations and we in horseshoe provides updated inventory of inventory sales. the This the XX to impact have lateral XX% operated on at include chart from numbers And future XX the the locations up Haynesville identifying average the quarter. X,XXX of on than of second inventory XXX length X/X

sales quarter, of X,XXX with links turned the feet XX,XXX During Individual to third feet. we average from wells XX ranged an to XX,XXX. length

during will the were turned the All live than the laterals quarter X record still over sales that laterals XX,XXX to feet. at Our X,XXX seat. quarter to we longest were of turned had feet. sales that XX,XXX the wells is extra-long furthermore, say longer And XX wells third during

did on our the earlier, during any turn As Haynesville not Western quarter. we to we mentioned sales wells acreage third

we Haynesville turn by do to However, to we XXXX. end of January the Western that the or sales wells have X early additional in year plan the

last it's turned week, -- these currently sales we are The first flow-tested. X of to wells was and being

test length over turned laterals to our XXXX to extra-long to lateral approximately of drilled average turn XX,XXX several expect we have be a now will collaterals have slated of to for we XXX we wells remainder our wells, total crew XX to ahead, #X, the the long lateral This average To range we've with list XX cubic X,XXX up with was weight laterals feet feet our XX,XXX up day a last million individual million sales feet to a day cubic our X frac in feet second of activity from in frac XX day. includes currently Looking and of date, sales XX the on sales. year, on activity recap feet returned all turned lateral IP drilled wells The outlines week Since Sebastian turned range wells and quarter. of rate results X million with XX-day last new the XX,XXX X rate our XX rigs a we to that our last over than from of feet, first since XX currently a well, and that well IP longer feet the rigs new September day. Recapping following average have an [indiscernible] at well the these provided rates feet. third cubic X we July. XX,XXX The Western a laterals running our XX,XXX frac individual feet We X during activity an million achieved feet. Slide end have levels, the holiday call, drilling sales. the have of on crews, Haynesville. XX XX cubic the we're that to late

frac in quarter we're pads also our be X-well fleets Most process both and of working pads. have currently will sales Western fracking Haynesville turn our year-end. the the We the of in fourth of at where completed to first in our

East long. than we which to long the [indiscernible] based view the benchmark North per and X,XXX these providing use fell covers quarter, generates located better Western turning reached of summary turned sales greater our to costs We're Texas, X at to through Texas XX and the long-lateral foot third group. being turn cost to the TD. we wells Louisiana to timing environment X cost year D&C X be sales laterals the between acreage -- just and to per and sales on feet XX during This the dollars date on provides now also environment And were wells The Haynesville on have when located our drilling year-end, that growing turn wells our that foot wells quarter aligned is of single wells the well our the acreage. core to our are current our wells the into with North In now the all East with drilling core cost for Slide wells all when Louisiana lateral drilling This we completion a the actually total spent. by better date. that end. On pads, sales addition to continues XX of the are

quarter, third is to the compared $XXX our This averaged drilling the costs increase in second So a foot. quarter. a X%

came at of summarize When which outlook. to ahead couple quarter third X% next to D&C Jay Our back flat second foot, do quarters, cost going out lower. I'll costs $XXX the remaining represents over our now call the we the kind turn a compared look decrease completion to we to quarter. see XXXX of to the per slightly in

Roland. our XX, Slide XXXX. you, you, where you summarize you if I'll direct outlook Dan. Okay, we to Thank would, for Thank

number gas prices As of we low steps this we've stated significantly last quarter, to in year. the a taken response natural

suspended our XX% spreads from fleet and longer have to extending invested we March, X spreads. down dividend Jerry of April, pressure our through our and through quarter, steps, production XX% saving offering. million of position the majority position our approximately additional commitments end XXXX early shareholder, our of $XXX.X $XXX hedge Starting count of to services. X of those XXXX be we a any We're During a starting into February, quarterly dividend, no to frac X pumping CapEx million XXXX have of payments. In reducing the for level we further our significantly We targeting level. With we expected our added $XXX the Jones, private million our level. XX% company operated fourth equity In long-term in the notes hedge expected X first We XXXX. also placement. rigs drilling senior frac to reducing our late to rigs, liquidity with an released enhanced quarter the of an and late released our rig our in

level natural third planned financial our liquidity, evaluating and maintain just end billion at the totaled which We to under demand upon drilling of in XXXX quarter. are our strong natural very activity a the our based we'll the response needed outlook continue adjust to to gas prices. We'll for program the gas as $X.X

producers. Our cost We environment to remain current the exciting Haynesville play to and in Western our natural public our position asset continuing is the cost gas acreage our focused proving up substantially extensive play. as in this on structure industry-leading price lower very low gas natural is than an lowest structure add other

guidance begins Haynesville of in to second the Our the natural in on half totals is position are acres. XXX,XXX Haynesville the Ron Western year. growth growth We that building now to positioned benefit rest horizon, of the that up next provide demand for exports will driven a net the region some LNG specific in the Ron? year. I believe by be to for great show in we have gas from asset a in the Western acreage substantial that well over that will

wells the of per to timing cubic range, Thanks, is discussed the Slide the expected to expect in due D&C fourth end sales has to day Jay. of in at production coming to XXXX dropping that's turned net CapEx timing XX been provided approximately impact X,XXX online. the to The wells quarter the wells remain late which million XX down the rigs $XXX is in the quarter calls, XXXX as million we year. fourth in provide quarter when on The very XX, On for X of to feet prior We guidance. first Those original be expected the the quarter. guidance to from fourth bringing our we X,XXX the -- $XXX now original of the of expectation wells of as XX% on versus our XX quarter and related million guidance. are to

but there's do not we the production of expenditure. that impact, So brunt bear full capital much

$X $X to $XX Gas We which million related by anticipate our quarter. is the expected per to and Services, CapEx $XX million million partner, to continue Quantum, be to of leasing CapEx Pinnacle funded is to during quarter, million

million quarter On $X.XX remain expected LOE to the to expected $X.XX GTC is $X.XX to expected side, average to $X million range. the are cost per of $X.XX per remains in million per to with Mcfe. expected about G&A valorem costs to to Production $X.XX taxes $X.XX, average ad is to Mcfe, $X.XX to and $X $X.XX to side, expenses G&A while while is in G&A DD&A $X the noncash range the cash expected. million $X average

million during to almost XX% the With back notes our taxes. I'll million our remains the to to expect over tax in now XX% now offering, to defer XXX% to we $X the noncash questions. $XX April and expense in the rates those Jill to will in answer $XX rate call million. be we turn SOFA and $X of quarter, Effective cash anticipate range, roughly quarter be interest current still to the interest million the

comes Instructions] ] Akamine from First Kalle with Bank of question [Operator America. [

we think it, 'XX. that tripping stabilize lead trying in the market a to up guess like that bit, back have for a which division in see maybe I elephant will all But a get free the think room, the start you the for and to production more pleased you planned our little to you the to it perspective, To coming priority. of I'd of with see I cash we're From I XQ. waiver. is bring outspend we to I some think the better guys

your through sheet outspend hoping the then plans Just can in of that to 'XX? you pricing balance motivations kind this and your articulate manage soft maybe through to talk

question. a that's good Yes,

execute in plan, those that had I plan the higher really kind so the it was would by over think there's only days going now quicker year. that the figured the little a cross a I we Western expenditure some for when to level bit It's little place and of you planned this were think originally and time And expenditures stronger, the prices we really cover to quarter. drilling been completion a into have the of only kind -- to lot and the be the in is expected of that because cross work over XXXX. of Haynesville, mostly going

So quarter, on been change looking being an at a reported. if than longer how the a you hasn't -- other there at on plans. just individual it at the costs looked I the much end in think up period, It's really how all

goal risk into with generate easier from cash So again will out gas be invest prices some flow to level, we -- I our we it XXXX hedge the take to achieve is to operations. for higher -- to back balance of with a think the capital of the and is try

Got it.

for activity really it's on your well. keep Maybe our continue question Western the my Cost estimate. And Maybe progress is to forward. really per plan it's just is high-end So better this on timing is Hodges foot Haynesville. the to X Dan. than and next

more those drilling you that. You've Western I update have you But the costs can X-well broadly, with 'XX? the amount discuss maybe of wells path getting up, expect so When on we'll can event a in have Haynesville are aside coming a been take we on ahead. online, if better. the an that maybe got costs, you fulsome cost, points pad have more data those Maybe

probably more Well, to coming next the forward Haynesville. next going I We're on year, early a Western going think information with be to the obviously we're be next lot year call. on

a which this for we sales. above milestone the turn to days. wells You're to was of port to And the fastest XX today, we've a us, X big well, right, foot, drilled well. This TD X,XXX this is the single thing was is drill we course,

Hodges to back And in started one working this a XX now drilling we in the few good you If at so we're a ladder phases of of place good things on #X, The massive this length on pretty got the really well, just XX, all days, few I'll good. XXX-foot. still and say, in years, also comes was particular the drilling days out the kind point out frac pricing execution days. right [indiscernible] XX and went improvement, now. well. also length big frac really this the these XX,XXX-foot some drivers one had well go is off. But of or really We've a XX is we operation

very is foot obviously number. that cost in per that So important

Now of the kind our kind kind that lateral. you of we're to putting XX,XXX-foot is we on all typically numbers normalized that the of -- numbers $X,XXX out targets, It foot. mentioned a a

to X,XXX you be is higher little little bit per foot it's XX,XXX to So cost foot lateral, generate any have [indiscernible] lateral a fit. cost to going going XX,XXX time a like to a bit better per X,XXX And foot.

Escalante from question Research. Wolfe Carlos next The comes with

of think investment because like encouraging. the directionally, the see. this And first horseshoe results wants I'd the to -- all, they I are Well, start certainly what with to is community

free Now flow cash how into translates need generation. do that we think to this rationalize I

my of than mind know acreage for all Haynesville in you guys and that do, across created is because equal. I bearing the are this the What's this better you candidates locations? question your not think So XX geographical that spread locations

question. Good

lateral. you're start drilling results to that maybe well. -- X had the Haynesville. XX,XXX-foot issues to very And is We all just we with I'm a to extra say straight Sebastian the well. off. if going the didn't right, no in the you the on compare days, that XX happy drilling We're So just

you it frac straight well And did it we didn't again. know you that frac and the in have if any horseshoe. The tell you really -- didn't couldn't fracked, issues. lateral good XX,XXX-foot any the -- if you those in Just well, a fracking can't frac difference just was horseshoe

fantastic. look results So

super about excited it. So we're

they're to just As say position far from and if that I the pretty the as of they're think I'd at basin. all much south spread we've acreage look across across kind kind locations, got -- north, the just you evenly of them pretty of spread

[ to in got So the them B we've up in ] areas them got XX type thousand we per X,XXX X. curve the the

for just the It's spread So specific is spot. answer not across think acreage. of kind I all out really rig the you is effort in really any

in geometry, Haynesville traditional question, come Sure. provided the the you What mind do lateral you with this you question, more on you your play. like the have But too same me the lease average finish because up Haynesville all difficult also have guess and is drill? across maybe length going Haynesville is topic. to That then early Haynesville. will Western do still, just exploration is in that bit I that your feel the And helps. Western that a will, certainly you forward, means, a in an by you expect hard Haynesville. bearing Western line and to in another reservoir if the answer second for to it's which be the my And program issues

Okay.

I Haynesville be So think Western versus question maybe with your lease in I Louisiana. first is find can lines maybe will the

Every difference the deal between we Louisiana, unit. right? mile in with section is a square really, big So sections,

the X,XXX-foot play, So XX,XXX-foot later we're usually either in to or laterals. we confined on did X,XXX-foot to drilling XX,XXX-foot a or

you. the horseshoe then turn Now the around wellbore to we've got ability and

much regular have build more we sections. so lines. In -- lines and customized. can more you surveys, units. -- the pretty section are And don't shape more and They're you They're Texas, the lease much size. deal Abstract your

X,XXX-foot at Texas XX X, in really, in are in at you're but those you any be feet, drilling difference X X,XXX, of the can you at kind some going you links X, kind X, the X,XXX be in so not that state of Louisiana, kind and between, have XX,XXX versus you're of laterals can or or have -- so different to XX,XXX, other. really groupings, say, that's XX And can specific

As lateral think Western had gotten as looking a far in average the of length the about Haynesville, foot average. at We've XX,XXX temperature. better lot I bottom we're on

really that's an not issue. So

It's probably in minor temperature. some bigger there's places. hazards and geo not just is certain. There's certain here think just -- some I driver so the that the faults are there, there there

stop. we -- and drill across to just You can't have

we're rate a Obviously, the out acreage. of kind laterals think the But trying our I to we good can drill average so is I And of holding there. what see looking lateral now really we're that XX,XXX be. -- will number pretty driver ahead that's longest only

right So lateral our is, XXX a I say, feet. want already. I to And we drilled think shortest XX,XXX-foot XXX, max now

So not by, having It's , any XX,XXX factors. I drilling these other issues like laterals. XX,XXX-foot we're said, for just or hazards limited

comes with Meade Charles Johnson from The question Rice. next

I to go Sebastian well. want to the back

IP but that lateral the the help can't on with the You shortest notice highest quarter. it's

Or you else something is early, perhaps? know luck I do draw? think So is going but just there the of here it's on this

where on well horse attempt ourselves. -- back. It's that's kind I horseshoe an oil out this of we in say someday, maybe about expect the reach unless probably X,XXX foot draw. maybe much of we about do lateral ahead this same we to the pretty That's and we this in I'd the area all X,XXX way out and is from be the not we're out, a But were to a and that's length drill luck do getting would acreage. we'll of Louisiana going of what think

surprised to very at this result, not see was being all. and we're mean repeatable. the I we very, going that I this So expect totally be

it. Got Western that. then good That's your It's going it. back have opinion Got on to And Haynesville. to good.

see done well are the pieces get that what to to the dollar the that of focused you've the as or on to well. aside whole Hodge try It's great you to construction discussed you've trying on leaving deliver repeat to that metric? -- the lateral But most with foot think per that I of repeating going repeat that, as what you're bit. think pulse this length, a a pieces of completion be of and

have of the Well, -- we consistency. we didn't more all, early and had some become be got I showings, we think good to first the in -- but have we have We've really consistent. wells,

consistent at we're the becoming So basically much good performance. really more

a pad we X% drilling so always X% And pad. single versus figure to well we get reduction cost a on

ago, you was feet, pretty number a pad. longer just going XX,XXX always feet. a XX,XXX little single little bit that well good number I down like a okay. And for number. to is start That's this move a over when later, the going helps This on So one this bit the with well mentioned

been If we a would well. would per I same Like this a been the exact if foot across than this. And phases. have have this had have cost little been X,XXX-foot have said, foot we all execution -- had So bit great XX,XXX would this a lower been higher. bit lateral, would little

So we're lower performance, we this than se. definitely with see numbers per the costs to we start this doing generate pad $X,XXX going drilling,

Jacob comes TPH question next & Co. Roberts from with The

the adds, price in adding rigs contemplated I then are the how it a timing those tack commodity to a on you few XXXX. year. talk I all a those bit believe all? And today, about terms if balanced But rig little of could next rigs might where given previously program prices? what commodity maybe might I you've is you of about current be thinking at understand at if as well, consider And early

gas lot would -- question. not, is as It the early in will half second a see of if Yes, XXXX some be demand. kind it's watching XXXX, of really the a a factors, kind how winter because half market, prices first of we the those good or gas we of especially be of have driving increased we

line we bring a X and the when back we're something we quarter drop. deciding And flexibility when short at this up with and can in lot the dropped do when notices and that weekend a as do have that's we have needed, of really So we of hard services of first rigs looking we think services we the year. that, we lot

target. We're target hedged percentage have to what So again, environment XX% of hedge having in level in I higher XXXX, And XXXX. want responsive we're be to that almost is XXXX. for whatever XX% now going kind a to we very

that help XX% a to us we this have the should bit work help. little we there. That hedged. So do were X on a were less first little should But than track than quarters, year if more stay

the runway quarters frame current see you the add color. the particularly look midstream. Can able the will terms to handle be wells if to that of addition being in QX maybe at runway ultimately that you Haynesville 'XX or able could being handled? to and Western appreciate I Maybe we you have the what

it's a Yes, question. good

X treating that at and a start coming capacity, into Bethel have go will there that on the As that companies January. a of we good -- really pretty coming other these by be contracted rate not the are with to a we wells We our we'll Pinnacle -- bit to offload our of on quite treating good we have in system and capacity hit on. plant. could backup rate capacity midstream pipeline of a capacity couple where we And do the

So facility. definitely could in have our we do would it own to just that. We prefer

Marquee, of and so the And new incurring lot at And quarter, key. are the that's of open other A that a will now, plant of really million gas end treating Western a in be year of our in next Haynesville the treating quarter the to first we up to XXX the going fourth footprint. expenditures then especially that's where which add on capacity. early day is

capacity lot -- be to growth handle out there. So then of have we'll a the

place. to one online, in that process comes offload as ability under these have do arrangements So put we and we the

actually do. So producing we restraints any as far as what we won't have definitely

where as that's -- to capacity play. and the So do rigs, then to out say, build and we program want we for we're the evaluate continuing add more additional look and

Droshky next Sachs. The Goldman question comes Greta from ] with [

time And horseshoe your to your overall could spend do that apply to a proportion upside see benefits you you've the operations hope you realizing locations to you're time? over a more wondering if this just was on the technique Is you that any of I there. Horseshoe wells. there bit XX for potential And outlined?

question. Good

get number converted. upside definitely the of far as do we So see as an locations that will

in just the Bossier. still that We're the side. Haynesville working inventory on so converted we've far the through got So the XX is

All of I'm in the have on and that. a our first Bossier probably quarter. sometime we'll sticks, number

just far our more of news mean, of for fresh. and development program. this As our takes are a number right to and to horseshoe, lead move going around, drilling in time, I do a as obviously, get being lot obviously kind We lot more to pretty the is got things a in want lot place, pushing into of and it program. Obviously, drill ready do that things we've now of time. to of

have here. come got triple. So and coming a got horseshoe one the that the slide that pad our We a next is is talked a next summer about horse next project. have pad XXXX. which that's next behind early well is we later up in a also will the horse, that we We X-well on single triple up year we

as well. of takes to scheduled now revised a -- set it's these can notice. the push of little bit love this that's into like work. results. So get into a along which program that we bit, just maybe see bit just some been program add program have pushed get get to bunch a data said, I the it's we have little than we more And But drilling time what short on I already a little more drilling the hard our

My cetera. said. Dan the be et would front horseshoe of the locations, our to high-grade that, And had comment accelerated if inventory be, you now -- we as will X,XXX always our

just based So this have we the upon in may that's And painful thing the again, more as in putting keep or well. many first the we in a we that good have Bossier 'XX.. of recent that quarter results,

especially economic much from these So through Bossier move some we inventory, of horseshoe, up the positives as our get the with reserves, we other the indirect in will results. higher

low And come so these economic. some in even can of very prices,

And so says well. horseshoe Haynesville Xx the yes, Harrison see Dan being than better. better Xx IRRs lateral we wells short the and to a

gas lot it of a more inventory prices. that at makes a lower very So economic -- that's

just some -- able the some the inventory improve undeveloped of see you'll bring impact proved -- So and reserves. a more lot to be into

Yes.

think your I answer question. that I didn't part really of

triples the on it far as single wells. versus return is XXs, the return rate basically I mean, the performance the as So our

payouts Our half. will be than less

XXX generate the to to horseshoe, PV-XX If $Xmillion look at going versus X single $X.X value. we're you million additional just the

And so pretty substantial.

M&A to either question second bolt-on you do Comstock my was Western the expect And see speak then the is for in And could more helpful. or I for Do if the opportunities in really M&A for here? legacy That's you Haynesville consolidation about wondering outlook broadly? from continue you Haynesville.

existing Western Haynesville, we've partner shallow to Well, held other acreage yes, especially keep to opportunity with deep a good where the or production, by to the able have eye, we've the actually that and and had want we're great production been production. companies the rights continue in acquire

those a of divested -- us own wells them. older area, fairly been there's -- it's the larger are fairly in being companies and mature, are that So vertical they the opportunities interest lot so a that

M&A plan of And to part And to cycle. the work that private so divest. we operators continue still have there that are

So attractive start And kind next consolidated several to time, prices gas it's more what to be in the fuels get the, see those of up levels, over probably private years. as expect over probably probably we companies to again earnest.

comes moment Noel next Parks Research. Brothers One with Tuohy question. from question next for The our Investment

those, or I you Just don't what just wondering, it's the couple. important had I it I can to seismic or in avoid penetrations know to degree mentioned Western a faulting wondering was was anticipate being anything. you Haynesville. legacy if

in just how So handling you're curious that.

We acreage do have the that position seismic XD have. we entire over almost

everything mapping And pretty where much look is really good on of everything identified. got and we've a got so

in see really the kind that don't issue But just an see do have do sticks very data. XD, something factor. important when plan our development. So -- of that for that's us. we we lay we we don't Obviously, we're to It's where good as I any going out

a picture of what like. So good looks we've it pretty got

macro And top -- a of I Great. it. sort

any then Just see for we which to possibly a of nat made sort a gas tougher seasoning get past, point when make come back. the peaking lower in them I lower and you've levels higher that longer that gas for therefore, is producer reflected industry in prices pricing activity of gas and another likely activity heard get the affirm of ramp-up is

into just under of about normal another might are winter your our wonder perspective better with just where and weak on peak But maybe where that perception winter versus quarter occur? winter. places with that they a heading maybe So belts little a

And that is but great industry demand large pretty the today. increments. question. of the of here on it's lot That's challenge the there a a horizon that's gas comes -- natural is Yes, in not

for to something it near-term gas the And going so plays winter. out. on to demand we of all in dependent prices that's how are be heating And have see what's the really

short that the really first of to although. winter, the especially in half going term, So to tied be is 'XX

factors start-up have at been. are has I even to rate new demand us the we LNG is X our think when there. One favor count of rig been low. the there that highest on very today the side, in up is sets two, it's And it's

to there help be also tighten will declines production supply. so And the

just As first you had can to it's in several quarter, especially quarter cut of you'll in later, back we see see, activity lot of we even first the last. back really the up for not followed really -- were Haynesville. on and really the a showing quarter fourth a in the the operators activity you'll actually that that that worked though think Comstock, the of see we I the private first start our Haynesville. cut we've lot decline. really decline even -- And see And to We months to the

in a the had year. winter. opposite had help into this activity kind had really gas big level X And this the drop warm opposite we prices of the that we of period and us or I compared last during -- coming the to kind to help So year, demand balance that year situation we the high created and a when think supply we've suffered

works. think I just the market you balance going gas I they how gas to it's So to think, market, balance with have trying a market. it the -- And more be, could price. volatile That's

other. there's little gas, play going of to And up there's I against the drops price factors lot. much gas, lot, if if have volatility a XXXX bit these a price So kind the enough a too goes lot of not think different in as different each we're a

M&A XD Dan almost points. do then, Noel, I as got the mean, in net acres. of is the seismic we mean And $X the or said, a small, control majority Holy it. inventory. price its and those if have is I you for of have the defaulting Grail a major And XXX,XXX inventory of size, M&A, I we is The but And inventory. on points you're do inventory question. if typically M&A look we've our lot now comment lot at Grail was Holy M&A of all on done ever you gas $X,

complete the we I that competitive in can we our take So to of and Haynesville, just the were able gas went did it wells old to we what we Western call an deeper, now able go field, like out core we technically that make to think these Haynesville/Bossier. And do, the with drill core. we figured is were which we

right in more And it's performance because said about of the spot horseshoe and IRR well. Xx it sudden, the than exciting it's our the Dan about as the Roland drill right So bit bit is right you horseshoes a geographic on the better all all throw about as your typical a little then makes that EUR. Haynesville

get whole approval. the unanimous why It all then banks, So company you at and us at look sense. that's and XX had and makes to the future, the banks a look looking at lot the they we they of

do to and back have we well Just broad that. than and you to when storm out, light positioned order weather the sun to your there to point, comes in are be more this

comes question Truist. Next Bertrand from with Donnes

I just follow wanted count to the on rig up commentary.

of get rigs job think, end I year late first dropped quarter. by, You of great them your did notifying last a to the the

those. months for big take drop -- to good summer a to do around just you on for it have to that? just you is an Or estimate do fall? And flexibility like it as Maybe it pretty how it, you say, have rigs? have pick do you seems up of December? it maybe logistically, or many would on you easy updated So Do or bit

room really half our a rigs require no are just time a about fleet There's notice. Yes. are the that Typically, in we've XX-day got frame. that

have So just logistics a Obviously, obviously, not a to pull the we of rig it of pad. middle in to moving of then that. middle And going a out. the multi-well plan around project out or

it's for really it. So planning all about

level and we're how did final really year kind then and we things out. But good make XXXX play we the activity do typically in to place XXXX budget something our it's obviously see able very that's get right decisions the as we December for it hopefully a year. looking last when like of plan So hard these to have at we're like in pondering quickly

to tried we've the that have rigs capable we be thing our do one The drilling to try all of Haynesville. in is Western of

want drilling they're over legacy be the you if to area, Western need if even in them Haynesville. to So we to move them qualified, the

have do sense. an continue every idea you because more long-term seems attractive think And switching changing? team opportunities. is that is makes how land keep of your in their leasing seems That of why then the stride? gears kind the Is the out leasing on on finding surprising view much that? prices? time to keep be movement there, program. Or It just to strong. you to the like It gas you hitting of is the upside value Or Just to you

long this and XD caught chasing at you looking and and years actually footprint, spent of kind I we like and you like results, at X have were Well, well said, big we it's area if it. an

mirror. XX% little leased. I'd give if at our you you debt have that as Holy I it. group out the So got mean, the a upside busy bit. you rearview in I mean And costs we've the midstream incurred, inventory. think Western I around have of And the a But other and you're our those with like add if is keep a Haynesville. you just We think in where big majorities see XX our are of the well acres if the we that's a locations, balance said, the to coming in already land M&A We're they now would else bit If event. I little sheet, there, control goal. on look legacy the of program drilling expand acquired the net That the there's your And acreage. is Grail is down. leasing to XXX,XXX clean I we've is Pinnacle up extra mean, there's that need you would anything to

just like us. had we any doing this was Those out reason spend were done up. gas successful keep cleaning we where is acreage we And the there you acquiring expect $XXX it low, was behind the million, we at it. past. days are $XX shouldn't So million that in because But quarter nobody

then ad. something. just I to And wanted well, Very clarify

X Is a a I triple sets of that of XXXX. think heard is X? Or pad for X X horseshoe wells horseshoe I in wells? horse that total

would ] is X laterals. be XXX-foot X which prior wells, X. been that that would have to So [ horseshoe

Daniel Energy The Partners. comes from next Jeff the of with question line Jay

Real quick me. for

the drilling is D&C you more sort at be laterals closer a of these of them, of $X,XXX you and expensive? better going of, that -- traditional that's about foot couldn't guess, you're any Is versus X,XXX. get get of X,XXX, Looking always length something a X about those -- Horseshoe horseshoe as there at reason little together? more couldn't to of Or about kind do that kind at I that there

expensive. not the any On more completion is side really

it's -- -- just -- that back distance of longer to you the just you really bending turn. you at a tools that of constantly degrees, back -- drilling around execution, just if I we're using it's around. conventional drilling on cost the sliding you're XXX-degree turning distance, drill And the So if going just side. that equate and you're straight, have to constantly mean just doing Obviously, really to cost a just XXX drilling it's great it's take

that's an to only or day about take and really going that's So X, difference. the extra

after that slot. that kind number that's on of Potentially reported

think too... fairly I estimate conservative that's a So

is. It

projected -- we before what we Sebastian we this drilled So the was well.

slightly coming we versus X,XXX we what slide we and less this got had projected had is So in the what had a now X,XXX than deck right modeled we well foot here. Sebastian on

IP-ed got yesterday. it literally, mean, I well. that Yes,

a was that's well. single I single. a that And mean you horse

a you X% from you additional the on get really, lower. should even drop to pad, So were, if that X% cost savings do a if we Sebastian, X-well foot able say, to pad do really, that drilling, that X X,XXX you be horsewells,

Paul of Citi. line the from comes with question Diamond The

Just a in you sitting down think to how quick of currently at and those around hedging question for with you I about quarter [ you Xs up bring and trenching to on low evenly book. currently bit the do guys last opportunity breaking It's target? pretty of XX% little ]. XXXX the the the guess timing curve kind per

post Gas lately. here weaker little yes, add Well, level. diligently to have bring third will work and target, the to to been we a we prices in -- it quarter. that is of the our our bit get kind That's $X.XX

of So will But it's to going And try to spread next potentially, really the to of our the like half they've we're got year. really potentially to production out. evenly weighted kind said, -- more second finding up spots be structures end we the toward that. if to But good good do you haven't year of do that.

the there's latter a where of pricing can XXXX bit a we point potentially, part of to So hit on there's where kind our focus stronger goals little available.

our hedge window. goal before that leaning up you're that's bondholder, we a I think we'll that whether what we XX%, analysts opens goal owner if into bank or window do, equity we you an advertise be to can our that a and

So...

Dan, Understood. Appreciate one. another the quick clarity. And

You get -- just conversion sits XX% horseshoe. just idea those to been -- yet other of to out? are got XX% the them Haynesville of about is under to or some the talked kind want where Or I of rolled that locations have still haven't evaluation?

under horseshoe to some -- have to wells of able out always convert convert. we can't to them they're work the to because but be evaluation, all they're Well, -- things

stick. In all, lot have. you to sticks have -- just you X have together, So X have have if have to we a of First of places, X you right?

on And we've is lot areas that. But in got can obviously sticks left. have this you have have isolated of have infill. with of be where we mostly some left sticks where anything do development And few a kind -- quite also we so developed it's to of can't bit A a still to also and these may sections

has spacing the to be So right.

you accomplish to your that section on too So horseshoe. of have the can't apart X are be sticks the far side of able to opposite

kind those to make that we have of that factor of converted. with of -- it XX% ended of in to So that's you kind that got when have that work, you things different all up just inventory

Got it.

as in So it that types the issues Bossier well? run acreage similar of you probably would be a reasonable read-through into

would be not nothing out and That sticks, a clean acreage lay you as look work obviously, as correct. if got because side, if but And you bit on with, the the up a of Bossier drilled little the Haynesville. just we you Bossier at more to slate it's

and long ability then have some just to are the short. we'll the drill lot development Haynesville, a of We laterals the a drill skipped because doing drilled and we lot economics. Bossier and the in whereas we got of So over the of short the horses laterals, of because these the still were in connecting those

got there, and so that now can X you've them back hook we them of And up. you can come

and to maybe in future, feet to right you feet maybe going do be ] a on drill how can may them to X,XXX our a apart, road We each to X can now, turn sticks need but how wide a big I'm get down left if convert have further little little we about horseshoe. where the few. a apart, [ X,XXX where feet that with apart talking we bit comfortable the we abilities wide, X,XXX are wide are get space can up. maybe what they're hook So drilled just be. maybe bit them more the We side, you -- can able be we X,XXX, between

We So I reason. kind will kind what think the that in number down of of within on the can little road a need do bit future. get just move that's the further we to

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

XXX between company. acknowledge a staying create those stood results resolve, natural X months happens to X exceptional I Haynesville gas everybody little first a really gas over thank the what test But prices the for that our in have it's just natural who Western all, the X months, on in With I for to time consistently and both for fact. line our our want legacy of the over $X.XX First pure months want employees hour. difficult groups an ranging That's area. past the for and $X.XX last for

the XX $X approval our our covenants. base our us and bank leverage we banks to borrowing gave Second, loosen on billion reaffirmed amendment unanimous

Third, our demand exact for positioned the are your around to the for of of corner. to our just for you and gas you million. I I of shares made family natural growth right equity as the XX.X August thank owners. can Thank month time. on as you our stock market open in the want be that we each purchases bond assure path $XXX well through of Jones in the million is

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

You may now disconnect.