EQT (EQT) 27 Oct 222022 Q3 Earnings call transcript

Welcome to the EQT Q3 2022 Quarterly Results Conference Call. My name is Harry, and I will be your moderator for today's call. [Operator Instructions] I would now like to hand over to Cameron Horwitz, Managing Director of Investor Relations and Strategy to begin. Cameron, please go ahead when you are ready.

Good morning, and thank you for joining our third quarter 2022 earnings results conference call. Toby Chief and Financial are and Executive today Khani, David Officer. me Rice, Chief President Officer; With The replay for our website today's call will this be evening. beginning available on with will In their and moment, session Dave a prepared follow. Toby remarks a question-and-answer to present been presentation will portion we to the certain slides during An of has Investor website, our updated posted investor and reference Relations today's discussion. remind that forward-looking contain today's statements. may I'd call you like to yesterday's the earnings differ materially in Actual we results in factors these SEC. statements, and described because events subsequent the in section Form presentation and investor from of Factors of release, forward-looking our could filings Risk XX-K with future the make our and not do forward-looking any any update statements. We duty undertake to also Today's contain certain call may measures. financial non-GAAP investor to regarding measures, presentation for Please most our the refer measures. to important including such and most reconciliations GAAP release recent financial comparable disclosures earnings to turn over With that call Toby. I'll the

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cash Btus the on $X.XX adds free flow we corporate of forma expect a commodity breakeven to profile low-cost parts Tug cycle. from our all nature our assets, $X.XX free further drop basis, to cash pro resiliency Hill's to NYMEX approximately to flow Given of million the per which

opportunity greater As to per we of teams million potential water synergies system did in any a but bake we annum integration underwriting this for additional largely upside reminder, the competence further deal, benefits. not highlighted $XX due subsequent work our when by in suggests and

to $XXX end to We material expect to year year-to-date. progress Hill reduction the in debt pro and debt Tug million buyback announcement, raised our by we reduction with billion of $X acquisition look goals retired to billion after of year target quarter forward billion. and with XXXX fourth forma this close the our We've doubled debt our continue providing toward $X $X.X to authorization guidance transaction the stock closing. made Concurrent

XX per $XX retired million share, million us amount the approximately share. X.X roughly weeks, of we our the to than for $XX more around Recall, repurchasing in an shares of laws for prohibited repurchase we activity have at fully quarter share. in the On mid-September. $XXX we share shares the count average front $XX our now a price repurchases shares X.X and Combined a of convertible this average per million note while have million due past XX been implied effectively through QX deal per year shares stock over million post at in price of active at weighted our an Hill buyback share price transaction, repurchasing diluted significant Tug by from reduced securities QX with announcement few

billion Looking ahead, at significant shares approximately still dry extremely authorization, our remaining we powder on providing attractive our have to an valuation. buyback repurchase $X.X

will We Clean our GTI the United debt, we or in & repurchasing to shares retiring redeploy Hill States. quarter, from savings with West of to Science Hub the of also growth into charge & Also Appalachian hydrogen Hydrogen state Appalachia forward. BATTELLE, Technology is and production cash ARCHX. Regional ideally collaboration the lead dividend moving suited Energy clean Virginia, Tug in Allegheny realization the look base third synergies announced a additional in

expected of hydrogen that and with of chain, low interconnected as transportation and build will the operations end gas, for use as the the abundant, to natural Appalachian technology value the commercial ARCHX Coalition low out is consultants, NGOs storage, and entities leadership major proximity technical cost, banding development full well this emissions benefits. winter community our to accelerate plan DOE and of in hub. Given team organizations, decarbonizing institutions, concept The fall community With technologies provide organizations, for funding existing federal infrastructure networks We comprised academic spring. to the hub and region, funding multiple DOE across and submit apply to plans to markets. hydrogen contribute deployment provide XXXX. final by billion regional sectors, the the enabling next application hub to and our clean deal to opportunity, US of $X regional seeks while hydrogen in the paper selection and we which

the production will rest chain During design and the and from the storage EQT hydrogen to hub spanned paper use. that transportation value projects to the concept, preparation ARCHX all of the of way and end coalition application, the and develop full hydrogen

the will between $XXX which For be issued can million the Funding the the subsidize application. included Department winning teams hub and in by $X awarded Opportunity Energy help in all Announcement the projects of September, billion

anticipate we incurring extremely world act more the of ARCHX strategic ARCHX terms related clean this significant America's the as announcement of an part And any emissions is decarbonization. energy. toward as for in to EQT natural a and latter ideal capital until time In the gas foundation The we spending commitments, cleaner demanding use believe decade. not create reliable of can hydrogen cheaper, to comes EQT's transition low do

broader is one lower to Our and progress positioned venture into forging participation EQT new uniquely as in just future. in a across strategy, new designed paths is of which our pillars carbon many we opening ARCHX new markets

productivity to XX over as in operations of development shift management resulted Turning multiyear new combo to improvements. in slide shown our as deck, in well EQT has our investor took XXXX

effects has almost the XX-month evolves across experienced increase Appalachia than parent This normalized implementation up and which over same period. well driven through Xx child our large the are been greater design the combo is recoveries of mitigation largely XX% since Our scale lateral productivity broader by development. of outperformance XXXX,

logistical in line multiple to well been our turned third-party parts and underlying with restrictions by volume great has the productivity almost effect led XXXX year operations our back while clawed constraints have of this strong, While party EQT's original this our is activity than XX of more wells optimize end lower is to to XXX due compared XX% almost year negatively pushing year less third impact. to low the into plan, The with has team drought full our buffer outlook. and constraints our XXXX. or in field work original end production full by expectations. net towards of These Bcfe XXXX production of conditions our water and Strong along XXXX the is impacted our basin X% trending volume range, the trending CapEx to low prior also impact guidance prior productivity Bcfe helped versus our

well in market asset additional party Earlier in connectivity moving digitally the our us by the to class EQT on of with segments to very want opportunity premier out, we been Tug a year-to-date to of month. We employees EQT inclusion operating all or begun our hard the testament across year, of model I were have peers. operational of evolving the infrastructure and all another build XXX as stock dynamics, front greater they business, S&P see base reasonably this work and a over control While asset quality into has enable sustainability basis, the performing EQT's competes assets more that companies added to Shifting believe we Hill to challenges the that our the XcL the versus underscored this flexibility this index market modern, base, to world of not third of and organization have facilitating our intrinsic I'll view forward. thank pleased for at maintain to up our pipeline across integrate also disappointing reflect we wrap relative overall remotely value economy. our top excess to business. despite enabled their saying

providing turn as the market is structural recognizing in we American in gas to an over ultimately increasingly I'll underpinned is inventory by asset and trend time, characteristics shift, in a best at are decades will depth fees. carbon declining is factors midstream unprecedented flow Dave. position and to LNG natural to durable proposition base, world that role benefit now the point time. are North natural for combined call in as affordable, be energy it value of low compound our We process efficient of among capital quality through a these over a is unique investors from can as secular superior free the in these and and converted reliable, unrivaled the will gas share to believe play companies bottleneck the come. the for the EQT reflected performance world cash create the into the We

our Thanks, sheet, was summarize briefly hedging the midpoint guidance below morning, guidance I'll quarter the And updates. good were balance third before Toby. of our third Bcfe, range. which results quarter Sales our discussing volumes and XXX for modestly everyone.

on constraints governor of guidance logistical to just As limiting the quarter, range activity during XX our mentioned, TILs and party verse XX. our XX our Toby third to put a

Our adjusted were our revenues $X.XX. for costs $X.XX per the quarter total and unit or operating per Mcfe, were $X.X billion

approximately free million year. $X.XX, Adjusted Capital cash or was our billion. As last range, cash were to result, higher million, $XXX flow to operating cents operating and completion our below largely margin of expenditures guidance the total $X.XX flow $XXX XX% free low year-to-date was $XXX end bring was lower-than-expected cash a about flow our $X.X due than million, activity.

wider local $X.X Our than flow to Mcfe guidance unplanned of our system. outage of basis per differential reflected a $X.XXper Mcfe to and free the NEXUS cash $X.XX wider due also differentials on

has XX, third-party which of On capital basis, below capital for on averaged slide year. quarter peer resulting in Our $X.XX at the we average a the sequential per group the spending. issues capital is X% impacting gas quarterly efficiency came despite from per the $X.XX lower year-to-date was this our Mcfe efficiency production our highlight improvement which XX% a Mcfe timing

underlying end $X.XX our quarter. Turning from mutual secondary fund support and X.X credit to priced profile. quarter, XXX billion XcL senior acquisition debt and is respect enabled treasuries to quality comprised the of leverage see the the we down Hill we billion third X.Xx, to the leveraged net of to of tranches support This the the We sheet, at This the we balance to funding To of another lower in at investors. from and strong is our trailing value both of costs and the further stood the turns our two raising environment, point XX-month and prior Despite bondholders. market. raised business and of spreads banks billion $X.XX notes to senior terms. implement our with banks to received challenging credit basis at loans efficient us notes term tightening our debt successful with testament which existing the $X our repayment financing a institutional Tug from of XXX

Xx to $X.X raised highlighted our to year from billion. take to pro debt target have X.Xx raising As using rates, price. we to bulletproof approximately 'XX down with absolute our billion end achieve sheet conservative purchasing to reduction even debt due gas will forma the debt we target, power. leverage balance With debt our announcement, of deal have billion, the MMBtu trading we gross $X.XX will Fed a par which per Once our principal below more $X.X NYMEX with we a $X

of reduction to flow million year We have the cash giving free robust material the quarters, additional progress and $XXX expect this executed debt coming goal generation. already projected over make

point an comprised positive facility equity Looking quarter of billion with ended million at out. undrawn the essentially items we $XX liquidity, approximately credit and $X.X to Two cash. of

from relief. First, letters we of during of we a of receive to with million And credit quarter. Midstream, portion in to million subsequent as near-term ETRN exercise surety option second, bonds replaced of approximately $XXX fee cash end we $XXX the quarter our lieu received

Hill through our plan We've deferred of year over to deferred strike quarter, acquisition puts moving added the also Now hedging, to premium of Tug hedge the We as an for per purchase position. to and majority collars be price begin average price $XX.XX in average our per from $X.XX $X.XX hedge of our pro average Hill's with we'll XX% Tug XX% forma production for XX% floors puts approximately XXXX, XX% production a building with an we mentioned next third and MMBtu. an of funds call, book have an at hedge average hedge to taking looking on of with ceiling MMBtu MMBtu. $X.XX approximately floor executed year have to our the of opportunities XX% legacy of On out to of -- premium through $X.XX on per our we price of ceilings remain per strike MMBtu. covered next the of with combination average hedge price and strike an our XXXX basis, unhedged

in expenditure the be excluding also full to range. with field Turning the or We're reduced to approximately outlook. count. X.XXX Strong guidance year X,XXX our well optimization X,XXX lower to expect our which constraints Toby lowering billion a volumes, plan our the TIL impact lower performance verse guidance, to reflect and Bcfe sales by to of now mitigated prior end XX% acquisitions it have TILs underlying party XXXX capital XXXX as billion and third to original our mentioned, are logistical to roughly have $X.X line guidance

inflationary budgeting EQT contracting impacts contracts. and While the ranges chain We our end more we're we access given us to for strategy process industry multiyear midst once lower plan give broader position next in crew puts in experience year. to and XXXX, we XXXX expect but sand guidance, of the details for our frac fulsome strong at of the supply cost a provide

year, superior and I'll recent our now our share free providing free turn expect per hedged next we cash strip shareholders. structurally for at position the to of XX% to Tug XXXX after in growth factoring by cash Given pricing Toby concluding flow Hill, year-over-year some differentiated taxes, cash approximately back prior expand effect the call flow to to our over remarks.

and journey approximately this compelling cost few Thanks have almost key points. an business XcL Hill back we returns forward. with note per today's the share Dave. risk conclude additional material our To provides combo a capital like we stakeholders. our to returned with natural hub access all the year, And the foundation pending shareholders the adding decarbonization valuation, $X.X and underscores move returns And for index assets productivity convertible of this next reiterate to since operator well Hill disciplined material Two, I'd becoming a $XXX low billion the and share. industrial gas us capture meaningful average Four, join acquisition want another our at our structure questions. in of has our significant now synergies. earlier tailwind opportunity to constraints inclusion were advantage our M&A differentiated in of million team's open of on S&P Tug collaboration I low shareholder this bolt-on 's finally, capital remarks, logic, milestone has EQT for Three, low-cost see representing the third-party month, call at strategy, along to clear emissions to taking the and to the including on One, room accretion took to moving impact of for ameliorate has deal development repurchases retirements And over of price $XX in leg efforts, Appalachia. Tug to of updated framework optimization prepared efforts the potential XXX to allowed the XXXX. of choice to gains to the the vast ARCHX driven hydrogen to EQT' EQT, significant we the honored year. this lay

our day Arun from of Jayaram [Operator Chase. Instructions] is of the the And first question of JPMorgan line

Toby. morning, Good

been early seen from that Appalachian the earnings the in Basin. of issues One things midstream we've has the of some

guys as You and Antero about in a range talked it well.

terms EQT, on of of affect in to I this So what wondering And describe issues on anticipate maybe you do count when you're if to constraints? you get in resolution maybe did year? specific was could the terms ground the general seeing that the of your some TIL

Yes. Good morning, Arun.

one I been fixed. that's think resolved, the is issues thing So worth pipelines been the noting have waterline have

issues those behind so are And us.

think the will think to say run Tcf can X we behind pace us. nagging everything back other build we're that issues largely I together, chain should But of I'd issues we Some with with we to that these amorphous program. I some production doing us. rate impacts be those of all an supply And on by face are vendors; mid-XX base. third-party at ability

it. Got

million $XX range do year, back wells basis, from are are going X where work don't think you've on better. million. Tcfe of If but caught likely next But can progress. some output optimization given these that production some they're just constraints have around you you just some, highlighted clawed big that in as as you for, on general consensus So some know tailwind have that those may to prior if to the been you year, you standalone of next some get of a I ducks, $XXX the similar get has a of buyside thoughts

will beat system additive on the efforts have to Arun, for us, the can looking our efficiencies of our in would we base also answer plan operational optimization within program. be we then much the think And baked front baseline other that's into I dependent Yes, is. there what that that how be

dependent and the be could it'll and every still on is us every claw punch So to actions. -- be we those the fighting for get we're team the there, to I there ability Mcf. for I mean, think think, but an shown And back is opportunity line

of next Choudhary Umang our question Sachs. Goldman the And of comes line from

I on Arun, how, question TILs have have thank first you're to morning. Hi, just fewer this Good up the are How that year. TILs to on wanted does half and love sequentially budget would to you. go like that that to follow Or I we Should to you to thoughts your year? probably given understand 'XX XXXX a working that activity wells an to be grow exit expect going production. your from impact through preliminary activities? year? XX legacy you exit next higher per back to try asset your flat As it this year? levels for next keep around it Would the production to XXX

set come Yes, timing normal the yes, year. of the say I'd to when just fairly Umang, activity so online. should the normal wells be It's for will

online that lag So the the had. water a out have of of wells pushed bucket to about time 'XX in five-month due we them got putting that issues

a plus so And should the normal why But million year. of $XXX rate per get that's sort that back be fairly activity by standard overall set to we'll run cost mid-year.

markets. that's really have discussions customers? the to update was to diversifying, you my then And As on are update you the any comes exposure having international which the it, question it strategy, Got with LNG on second LNG really and any helpful.

we LNG are anything we'll materializes more into still desire the from world and chain LNG have LNG marketers continued conversations the value say that material. having has pretty progressing come Yes, buyers. some something developers, this into back we're for to across when conversations, strengthen, I'd bringing but and good

line Neal Our Truist. is from question of next the of Dingmann

Toby. on get just I'd just circle morning, the to trying sense. a I back infrastructure; Good was

already waters about I rectified. talked just you different mentioned the So between degree you the of issues. the been know, curtailment the maybe

one, on, of will you're how involved? helped coming find number XcL issues some with other Just and the of And sort trying things to that secondly were then the the I done forward? much going obviously guess, what to Midstream situation

talk lead should some supply our and wouldn't some to and some then times plans, backup weather of got been equipment, drought operational we've we that the with waterline have the we us needed. at repaired fracs of getting of on been that Yes, some to about longer of because that challenged we this, access chain so there's the to issues plans execute all efficiency those flexibility that outside allow conditions sort backup has get experienced been

of of is that's laid factors weather that driving the one x sort out the that chart. so And impacts we that on

or Got is follow And at a you forget PA, am Southwest, that then and you it returns there slide. it they looking Marcellus, return if with West you look Is equally Northeast which that Or four? the from rank four is the it, you okay. sort any about of were one two how there? Utica, these up. just standout? Ohio, days Are shows one to now all basis these talk Could wondering, days in I they I is just at rigs think are when running Virginia, the those, ballpark? are

have those Southwest done And then work returns also work we've attractive. in costs of reduce returns perspective. per competitive some say more foot best with primarily Utica, that made the Pennsylvania, that no surprises Neal, from widening science done, increased coming the makes West say I'd return's to more Virginia those we've the the over in Yes, a I'd shown recoveries spacing from

where place inventory, seeing of we're now. get across economics is can So all the to to sort goal improve our that a ultimate we right

going it's combo really lateral schedule, lengths, on wells, development. be And number dependent drive these I our so factors, surface of to as we think,

wells returns of the schedule the would the top look we of the projects makeup. best is on best drives in sort on that's project. of base. the a at the quartile what schedule so say things of XX% And our are across our is are shows driving And every in acreage our to over drill inventory board that we first. single I that our And one factoring

the ops Thanks, owners. are Toby. Now, obvious improved the from previous

our question David from And the Deckelbaum. is next of line

in original in Good I you for everyone. Thanks just could plan to trying XXXX? on any am but if discussed get in morning, about maybe from is revisit the TIL any 'XX would year, Obviously, you. you met this, of benefit the versus time, sense fewer 'XX. the be moving a lot XX% capital the that but some wells we've that there Thank know Toby. I parts. this process

little price the current benefit I of a the thing to was moving notice could that 'XX, forward to hope bit, guess, we're so these with if we'd that now with -- backwards, will things with of that costs you were argue Frank, we that in beat volumes will So but to we other hope be costs service back have of service one some the wells our benefits that environment right do maybe, today, these like cycle is, improvement -- XX I pull wells carry able pushing ability -- so slide back then out -- bore. time abate

benefit. So we'll then get -- in and them

or in as suppose kind we about guess of what West the percentage program just geographic of of Tug 'XX Pennsylvania would shall about And a that blend maybe follow of completions I moving I we a versus of sort from away 'XX, Virginia, see western Northeast guess, between be kind on if you're PA, Hill region? activity with have think x seen the additions I on PA, sort up we guess, back thinking I a back shifted 'XX. to Western then like Okay. a guess into would that, balanced I that Northeast core

on is help -- this we I was of will coming that able is Hill operate do Tug to or think would board increased other our I mix flexibility say one a to the things for with good Yes, our -- with be baseline that up make

one could sneak I just And Okay. in. if

your of program that 'XX, Just all in delay in you year? of the kind in the any talked that this about way, you around design have enhanced delay saw that earlier completion sort understanding

some task of with hoping were and delays better science, on some forward we of get the tils our projects. and has happened Yes, to clarity on insight science these our

So the yes, science I'd say as six inside, it's probably four months been pushed well. to back, on

of is of And question Scott Markets. the Capital line from Hanold next RBC our

And of don't quarter get outperformance, or anticipate sounds once there's just questions. to his of like answers, I Yes, clarify, answered it that choppiness part think relative EQT as in thanks. part last a part of how Hill that Tug couple set of is issues but to sense last that Tug but us underlying impact over of say I'm also that going midstream it hear, to you to well well the it so. some any sounds have of and can of outperformance in much was you hard like of have these you might EQT a benefited give Hill, you line the

Sure, very the the Hill I the fact control and more think ability will to operational issues. give that's helpful thing the with much mitigate that midstream to going any operate one Tug is we and control asset us that's

production far been I'd keeping, also that's is as say majority the leading been has performance of increasing, gains concerned. I pure the productivity mean, As uplift well production uptime. and

come some shorten future. development that of the of Some and this plans best be cycle been and some that times to other identified have schedule, to volumes base forward there the practices out into on the efforts our meet and our accelerate benefits to us incorporated these will going ability produce enhance allow and have

of dealing with there side So the is these. bright a

that clarify how utilize flow obviously, doubling kind pace as Got billion up we that good much of the you third if over you the authorization aggressively Is out plan, is goes authorization possible. to goal in and reduction. through then return expect with debt with that I got free cash the the a eat can shareholder pretty $X.X my the buybacks XXXX have here given the had about talked think you've buyback along so through and And it. there next on too. guys the follow trying profile, previously year was you exactly done to quarter And really should as that your

debt the so Yes, going I today back of that towards, we are both stocks trading fact aggressive of where our can authorizations aspects I the be specifically XQ? to in on think pretty that mean, us you have the given Cam, number at front and did levels. We're have attractive that. fulfilling buy in we

probably two. $XX to think million close was number the think I I or

We've got since million, $XXX September -- so.

just I asking but XQ. versus think XQ -- So for he's

roughly third I more then a touch fourth So the was obviously bit quarter. do in done little half done in was the a -- quarter. probably more, obviously, it's in -- fourth we'll the And maybe about quarter, think do we'll and

Our the of Abbott next from America. of is line Bank of John question

to on? thank and to your I my had questions. this morning, good back yes, XcL Hey, I'm And Toby, allow you you Are water program existing what have Midstream Tug optimize couldn't is other that the want Hill to your But work? for you Neal little assets? a really to asset asked extend on earlier So about understand what ability that taking question going bit assets trying on understand already a base? to optimize it I that the the that there kind is on that How side. on optimization. is is to go does dedication? You have do you of

the water Yes, tremendous opportunity. side, pretty on

points West This going place in out on water building it's connect in Virginia. been to our systems. on to connect the Virginia, half side, to things, will of West streamline to of our some some pretty infrastructure short of to the to that very synergies able assets, on across of network logistics water, benefits put we've The know, we're the and we connect Tug system network having the side the to the water just surety in as and is of on guys And well. north, Hill a water produce completion jump, lead on Ohio, recycling, the water, allow gathering water water on you As us so that those -- systems. some benefits clear some that that are have to synergies counting the delivery, will very benefits two of to the Hill produce a western big gathering outside being the handling the much part Tug manage

low So risk. synergies the typically identify pretty that with thing you good think Midstream, I the are can

to that that we've translate it's so complementary into got nice see synergies. a can asset we base And

for exploring your to you is at on fund new and you this it's helpful. going What to are the Thank the discussed spend? spend ventures. on very, venture willingness very What the be other new is to I hydrogen then appetite in you. opportunities. point second That's more And the question, here, mean, time?

Yes, great that's question. a

to there can really we the outside it's natural while think the States, one, to where I energy how going is we is question about that United borders, reduce green category exports, gas slated what is, can US like think the help is And is we do be the a up the States natural we move lower carbon ventures, that put Unleash chart emissions emissions borders? the this, to to When sources, emissions think within we lower that the I out to this a taking do frames do what of can world. think, But hydrogen, biggest what States, we gas our continue when outside slide to decarbonize transition that, important our to initiative its most parts. States going about of to borders, energy from, can that United United reduce of way X, and transition carbon to use really of surplus the gas capture. the do to number planet. new the look for in we're create creating energy United of two in in States like LNG zero place Number at ultimately the in United fits opportunities on a the

before then this use understanding definitely to if our we zero purpose And are see is borders by look of the But really, I'd inside really will this the the our technologies, are And like. significant dollars, with right those to type say profitability US this emissions of ARCHX in so what the hub, profitability going to specifically this now, leading of looks position more that driven States. our our dollars, like, bit dollars returns have really achieve I allow any best coalition, we to be would back understand is higher doing very an think, of to the on framing returns there, concepts those we're what but is carbon dollars. allocation lowering around perspective so time get like, put hydrogen of those of those, need EQT to will modestly and efficient the up the we're going in what going pilots United to be a the dollars us we'll the look on framework. invest little while get we And bring capital and to to unsure it

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

about morning. this road couple months of of good Couple talk Hi, announcement, down the Hill done just procedures? you of as already on where joining any Tug have with sort we've and I as insight themselves wondered sort child far the of sort probably could they things. on also, you're mitigation you they of touched parent completion that a their on stood now practices? And what had since

that I has think base. Yes, that asset with good team done the Tug really Hill a job

access some assets. part certainly technology, done question of efficiency be success thinking the I will to to us least what in our function the and that to to be also And it's tailwinds is the having out the I in like teams to best going that they be, second replicate that. think to that going that we've drilling showcase optimistic that's able give best at and confident, going we're was doing of a able simply cruise Alta about? put operational the gains, What there. So am completions really

Oh, well, about parent child. just

and development Hill are Yes, to scale intelligent, the large it's because things and the Tug for, full at assets suitable and are we -- team look this pad as with Hill, at the looking approach is acquisitions was is Hill Tug the adopting, development. asset this is when we're we far as one hard, Tug of be going combo development

a that is So around, move we have to for program which combo pads, developed us sets there's they that lot development their fully not great wells development. of child up a

just project. turning hydrogen to And Great. the

have the evaluation far of Bloom that Just as mindful, point, Energy. any this course, you wondering, far you as have be I'm process the might as do technology generation, with as relationship thoughts what struck hydrogen at you maybe

just being one cell fuel technologies their example. so And

you So as down? to going at thoughts stage, you'd to direction we be sort what at, good do or wide idea of go, looking have a of a what technologies like of have to this whether net pretty you're any casting look on at might head

exciting and most is think I produces form carbon. the solid technology that Yes, hydrogen technologies a of

per But that issues of hydrogen big technology. today at know technology carbon that we that are capture, Right of with the now, before standard dollar that hydrogen, kilogram. issues getting, make some compare testing generate can look two just be we'll to hydrogen. XX we hydrogen we sub so And adoption really

for first the The is one cost hydrogen.

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Daniel of Bank Lungo the of from from America. is Our line next question

taking I make sure Hey, guys, debt thanks have just understood. question. the to well want I reduction for that my

to $XXX done So you have date. guys million

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[Operator the from line of our question Instructions] is MacCurdy And Pickering Partners. of next Kevin

morning, good Hey, guys.

turn delayed have I all answered. in lines been questions think the the

more We financials, for plans and bit. impact the heading maybe the Can asset? from than forward little strategic anticipated. that in talk midstream we a that impact noticed about gears was shifting there So a of lower positive you financial

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next from line Citi. Paul Diamond question of Our of comes the

morning, And call. thank Good you all. taking my for

and be process year? expect on to the industry on circle on range. into broader I that guys know XXXX. Could Just clarity wanted bit going lower a to bit budgeting of budgeting a of kind I the you one. quick for that industry back kind target. broader see a But range has you process of a of noted where been that next you moving the give end, you guys that into

Yes.

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to continue on focus So we'll that.

no Rice any we pleasure be hand closing questions. And would to back remarks. Toby further my have for It to

call. that's joining is for certainly continues on everybody, but consistent Thanks, is us one more volatile, performance thing to asset improvements. this world show quarterly The our

decline. to continues structure cost Our

have to going our shareholders, on a campaign a consolidated guys' us got targets profile you. growth think that Unleash And and free record is you future. we'll is flow American-made shareholders. a U.S. our accretion Thank the with LNG the exciting our cap in to going the gas, really I we're near natural cash and for quarter. energy compelling retire market and that's good opportunity long-term for value consolidation our term. allow driven that's reliable, we've leverage essentially track to for and really going We front and strengthening sustainable achieve the to next to And doing creation some smart excited deals present pretty clean talk for be about cheap, And desire

all you conference for concludes joining. This today's call. Thank

your You disconnect may now lines.