SilverBow Resources (SBOW) 2 Mar 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your operator today. At this time, I would like to welcome everyone to the SilverBow Resources Fourth Quarter and Year-End 2022 Conference Call. [Operator Instructions].

It is now my pleasure to turn today's call over to Jeff Magids with SilverBow Resources. ahead. go please Sir,

today and us everyone. and corporate and refer new to listeners this We for call. the XXXX Brent, to our it Steve our much posted full you COO; for Yesterday conference call to we on and me joining encourage our With Sean good you, Woolverton, Thank CEO; latest Abundis, morning, during very year are Chris Adam, our Thank fourth materials. download CFO. website our afternoon, a presentation occasionally the will call. quarter

note to to measures, Please that in non-GAAP we GAAP closest references may the reconciled certain are press release. make which measure earnings financial their

are today which with risks forward-looking statements, These available may more risks and are uncertainties discussion website. are and which in SEC, include on file our of on beyond our our documents described control. to Our also which are fully the subject uncertainties, many

Sean. turn With that, now will I over the to call

XX% completed price. one blocks you, additional bridge for year our a Thank realized our third top with and for an our in execution year double for workplaces accretive established production EBITDA digits, call was XXXX Houston's by business Furthermore, row. you, of truly to inventory, providing and on and acquisitions thank a SilverBow X was as increase this share strong We X SilverBow morning. named new grew exceptional for Jeff, everyone, plan. the joining

our X a bench The deep of premium in completed portfolio. inventory across acquisitions we added XXXX

proved PV-XX At proved to of Using PV-XX our our high under locations, billion. over X.X XX% SilverBow of year-end, of estimate pricing, which SEC reserves recent return increased oil proved year-over-year nearly X/X has we and to of are just billion. As increased is Tcfe, locations. $X $X strip rate pricing, our decade drilling a

Fasken shifted Austin November, area earnings wells in our of in to prolific develop drilling our environment. update $X gas per Chalk Webb Mcf to our County both price we during of a As rigs

year, both been prices continue oil As gas be associated has business fell strategy were rigs drilling our area at and allocation to will flexible with a central better defining higher Remaining our shifted of capital and capture and operations returns to to part of of the end oil prices. in the success. our our

X-rig As the have in focused prices we on budget laid In out this XXXX development. we drilling compared strength year a targeting gas yesterday, relative are oil program months, our to recent strip. entirely oil shown

a development. through As returns oil the result, acceleration year we see of this our highest

our of months. over be we assets will acquired on Much focus have the XX last

Additionally, there are today. in several occurring factors Texas South short-term

First, performance. in XX% County regional year-over-year a per half roughly response strong in wealth or a to Webb increased activity Bcf completion and supply increased approximately and drilling day

rigs rig count in Webb X rigs of the Regional For from County late reference, a XXXX. pushing late now XXXX high against capacity. increased available in to up a pipeline is low XX of supply

facility The online come Webb expected projects Regional further outages the and a have the year. key a XXXX demand at Mexico was pipeline demand the on XXXX, levels. below export of -- net winter has improve is exports County by multiple new on should governor in in a which Second, to growth effect LNG end impacted trended at with season. Gas warm further side,

out. stands is This where strategy SilverBow's balanced

accelerate drilling of to development We thanks oil well the years. last positioned assets, took actions we to schedule optimize several and our are our the over

our comprise roughly between year-end XX% gas. balance liquids discussed a longer-term production SilverBow and can expect and this by we budget, achieving oil year's total With that XXXX. time has we of accelerate XX-XX previously line, to

our area our and condensate oil Eastern Western include extension areas area. Central focus our key Our area,

seeing formation date strong across to future plan the and potential also drilling inventory we the Chalk are Austin performance upside. oily to where We target these for positions

X drilling Chalk Furthermore, have both to oily rigs prices. assets, DUC to elected addition we shifting wells, our County pending Webb to in higher gas

As are time, XXXX, in Chris to little At we XX% exposure prices. the downside hedged same our oil will hedged the gas of leaving gas are detail, on volumes further XX% year. for

any as we we ramp benefit will oil So production, our price in curve. from oil the uplift

To that a is wrap budget to I piece would note which capital one of up my unchanged. strategy, like prepared remarks, multiyear our is

free simultaneously map our balance the our road levers inventory and expanding and production, cash the pull and sheet. have while grow to to We EBITDA strengthening flow

see ahead through team for Our robust stakeholders. objectives track will established of opportunities cycles. all pipeline to on We a key our value our continue commodity that has an of delivering record of unlock

With that, I the Steve. over call to will hand

proud our SilverBow past of to of to over date. and result were They working you, Sean. in of year. teams operational the unison some cross-functional accomplishments safety was Thank our results deliver best the

First, SBOW X.XX strong the core to for achieving TRIR XXXX. way, our exemplified tenant a we safety by

recordable recently OSHA team its anniversary X-year operations accidents. with production our Additionally, celebrated X

of accomplished team mid-year of a after doubling this while X rigs drilling pace the activity managing acquisitions. base Our asset numerous integration our to and larger much the

well Moving performance. to

We County. quality the to of recent primarily outperform we we and development the area excited developing. in wells continue Chalk about the rock was Webb SilverBow These the are XXXX Austin are focus wells results of are from in for A expectations. achieving key formation

our IPXX Furthermore, are than foot achieved higher higher Chalk and average, averaging nearly prolific rates, EURs historically offsets. Lower for on Ford Chalk have Austin compared to lateral combined Upper Today, Eagle XX% wells Ford our Lower Eagle normalized Austin wells. XX%

year-end, thickness upside inventory intervals of in development, further acreage. over stagger And had As see we our XX the prospective across Austin locations Chalk and we Webb County. of given

gas seeing we our the wells are in some Specifically Dorado highest portfolio. area, our performing of in Chalk

several wells akin brought of reservoirs lower individual XX decline wells Eagle with rates the These in are our compared Towards production day. to conventional more XXXX, Chalk end area, per MMcf we Fasken online wells. to above when peak Ford exhibiting

developing discussed, to are Sean to County in Webb that expecting year. Given on we return limitations the next area incremental growth this

high-return consolidated actions and assembled These liquids spacing and areas team positions lengths. our lateral economics optimized XXXX. across increased to in our acreage due and significantly inventory count our speaking, Competitively

by years count the XX% assets. over in with wells life. of location our increased we are most we acquired drilling our rig XX from XXXX, inventory Of come will Year-over-year,

On of focus and of our XXXX presentation, our XX key Slide the inventory areas budget show corporate runway. our we

also the We potential in see of initial these areas. promising formation. Austin Chalk results assessments the well inventory see in on additional SilverBow, Based and we many upside petrophysical Chalk from

Moving operations. to

million faster midpoint improving cycle team of Our guidance. accrual just below all areas. to across our $XXX deliver On basis, further capital efficiencies of major times, XXXX was the CapEx an continues

pace the AFE, took inflation. cost accomplishment increased a we within from considering were year efficiencies industry-wide midyear. a control as and Our stepped major commercial full acquired operations on pressures year XXXX X-rig of D&C costs If further of to assets the X% up drilling throughout

In the our were fourth quarter, D&C below AFE. costs XX%

frac pumping is During per averaged exceeding efficiency day with of pads. our on this day per an gains half X crew XX% while stages increase XX%. first XX% XX stages Compared numerous year, efficiency the last of this and to we time, of to

years frac another cycle efficiencies cadence Although running already recent and utilization. were has high provided X rig, times pronounced lead X-rig our in

believe pressures, we we creep this the of are seeing regards cost year. to inflationary a second in our With and deflation selective should half cost current see some plateauing

extension XX completed. for a our X-rig level-loaded of our million wells XX year is our XXXX, of $XXX condensate and remainder the Western Eastern drilled CapEx provides our areas. and split wells area, budget program equally For Central million and throughout net net D&C guidance allocated capital oil to reflects to Half the between $XXX with

CapEx non-D&C activities. also is Additional towards related being ESG various improvements deployed and

and SASB Late is and aligned last XXXX. currently sustainability reporting year, the SilverBow published half ESG with first towards its GRI report of releasing metrics working as in inaugural standards

were running reflects firm by capacity acreage. deferral Webb quarter to moved curtailments our December, County early of rigs X both our end XXX X first to dry of gas gas 'XX, area 'XX MMcfe/d our the and oil levels. up, And Gas the acreage. our wellbores guidance of had wrap on To ongoing until XXX November production in we at of rigs we

Sean core this flexibility is commercial to our As mentioned, strategy.

full-year not does and development of full increase to midpoint. production at by is expected total the dedicated XX% expected approximately quarter the X-rig reflect year-over-year, production to a benefit given our by our oil aforementioned the oil quarter On a is basis, increase First fourth rig XXX% movements. production program XXXX

contractual Our these some pipeline to with February, dry gas pipeline slightly production capacity and dry able at through capacity, volumes interruptible were only capacity firm line capacity. levels gas firm into year-end. levels. were guidance we In January, produce thus, assumes able to we sell in are above averaged firm average production In pipeline

continue Near-term our pipeline we visibility year mentioned, and limited as assess are will to assumes guidance opaque, on firm and However, as the to progresses. capacity. takeaway capacity monitor remains conservatively we

pivot and multiyear and plays the in flexible remain returns we plan, this and to made point business in year the oil several has XXXX SilverBow playbook a development long-term past our of The maximizing our into years. for over opportunistic with reflection strategic Consistent action our direct program beyond. is right

With that, the over Chris. I to turn will call

results hedging morning, operating quarter will costs, fourth structure. as highlight well my I Thanks, In year comments full our this as Steve. and capital financial program our and

derivatives, of Fourth gas quarter representing production $XXX sales million, excluding oil natural sales. XX% with XX% were gas and and of

oil During of was the our price XX% WTI. realized quarter, NYMEX

realized price of was gas was realized our price Hub, and WTI. of NGL Henry NYMEX XX% Our XX% NYMEX

realized close we to XX of Slide shown NYMEX have benchmarks. on As presentation, the historically corporate

was pipeline which price by widening into impact the and our of During differentials been to the This until historical by our projects demand, service the caused fourth come end of gas towards is has XXXX. basis than impacted additional compared lower Hub. Henry regional of realized supply quarter, extend and the could range loosening

we Furthermore, further is supplement our to risk hedging and adding key our of strategy. aspect proactive are basis a in management business,

secured risk. have on gas For further over XXXX, hedges mitigate MMcf/d we to basis XXX

volumes year. oil production book for has hedged hedged the hedging and the SilverBow of production and company estimated fourth guidance by hedged, realized million gas loss derivative XX, February hedged of of XX% for on for natural on XX% $XXX our of of commodity, $XX XX% of the was full as XX% our the XXXX. hedge quarter Broken Based million contracts Our has total down XXXX. NGLs for and midpoint

Form production guidance swaps XX-K our presentation contained we collars. to flat The A XXXX, and summary amounts our total is combination derivative are of filing, is expect hedged. and our a approximately in file later. held which in is our hedged Assuming production of contracts detailed XX%

is insulated XXXX, hedges Specific current the to any movement XX% gas downward our from are strip. we to hedged, our as in revenue very

have prices While years, the we commodity investments. last capital volatile been locking our in on several judicious favorable returns in in remain

Mcfe. cost costs our Adding Mcfe. our production LOE, was $X.XX. processing per X.X% total and expenses. together, to expenses Turning is and were $X.XX quarter T&P and $X.XX, tax taxes per or and were of Transportation Fourth LOE production sales $X.XX production

excludes the was for which professional was slightly guidance our higher compensation, G&A, $X.X due stock quarter, Cash than million range which to fourth fees.

lower For XXXX. XXXX, X% of are a from drive the cash G&A is unit of inclusive will reduction million guiding Notably, per on our our acquisitions. cash $XX.X recent G&A a meaningful G&A for year-over-year, This we at basis. midpoint, increase

structure sustain advantage, be lean volatile to commodity a periods during We cost our competitive of us profitability allows consider to which prices.

we expect recently continue our across our identifying as accelerate cost within Additionally, we synergies structure development acquired to assets. liquids our

for the acquisitions. million, fourth of from pro $XXX EBITDA forma quarter Adjusted exclusive contributions was

the was we fourth cash As to years, Consistent $XX not of year. quarter generated whichever of cash bit amount reconciled debt. in free million in the $X materials, that prior free the down free for million pay reinvested earnings in flow was of used with cash our flow drill flow and

year we track X.XXx, to of ended at on Xx. below a leverage ratio we achieve remain the ratio leverage a While

net time and price to for consideration totaled deals and strategy through transaction-related X the cash This purchase acreage Cash in M&A adjustments. combination of valued after acquisitions added a the in mentioned, acquisitions consideration XXXX, previously used disciplined acquisitions of closed purchase at leasing additional giving approximately line effect stock and for $XXX adjustments million. fees with property accretive As activity. for price we these and was of million. Total close reflects $XXX our

million excluding $XXX the payments on for million basis the for $XXX totaled acquisitions. CapEx full for and an accrual year, quarter

to Steve which his million, Our a guidance million based is $XXX in steady XXXX X-rig comments, pace $XXX on drilling throughout year. of CapEx detailed the

pricing developed SEC of XX% using natural were and proved Year-end Tcfe, XX% of were reserves which X.X gas which producing. proved were

our respectively. $X.X $X XXX%, and was billion, billion, increase PV-XX PV-XX and of an was XXX% proved Our

extend our Turning to initiatives to allowed initiated maturity, our increased acquisitions. We conjunction In redetermination executed several Sundance in us which a June, and facility XXXX, we wildcard and self-fund with sheet. upsize balance the credit in acquisition. liquidity

fees million our million, million extension not and facility bank were free out our XXXX. borrowing group, to to support full the extended do and increased upsize approximately we $XXX calculation. our cash base X credit the With from of back Related from our of the $XXX date for we which bank by out years maturity $X flow

business EBITDA in adjusted highlighting and had covenants we leverage-neutral year-end to for that $XXX the the million, strategy. compliance leverage million acquisition XXXX, $XXX calculation. ratio headroom $XXX It of was used X.XXx. sufficient contributions SilverBow, our Our is properties adjusted were $XXX ratio year-end was acquisitions totaled with leverage for while from total the year-end $XXX year XXXX, and LTM our to funding period liquidity our our our million. costs. million closed worth approximately for LTM acquired the and includes financial Full EBITDA facility, million, relatively cash credit we with in At leverage entirety remain from debt accordance full execute to bringing ratio contributions of

it that, with our wrap to turn over to prepared up Sean I'll remarks. And

its for equivalent billion cubic is SilverBow continues feet double-digit half as over of strategy day to Chris. Thanks, the several value per a execute going years We significant we march growth project production. growth a creation towards forward. on next and positioned continued

for In stakeholders production. oil a our is in ramp our key the near catalyst term,

environment. well-being insights Our sharing in release relentless and this to towards engagement sustainability year. half and our with operations with of is clean first community our our as employees, We safety is more focus report the on our of our our culture the to of the forward inaugural and look paramount safety

the execution note, Ford one a last Eagle over the view, is seen by the our signal and being this by understood to the months. of best is several plays, the which of has Eagle shale a final flurry translates In development. Ford activity a consistency M&A strong is factors. and driven On in One, well-defined XX market

across of the basin running remains operators acreage drilling scale private dozen opportunities. programs, with creates Second, consolidation ownership which fragmented, small accretive

pricing industrial proximity exports with demand combined Eagle the realized Coast capacity, existing to to U.S. in and other compared Ford of results basins. the LNG, Third, centers, midstream gas infrastructure Gulf higher international

a Austin strong been to operators and large for by the within consolidator Chalk, market recent has SilverBow announcements points Ford buyer's other key a and M&A. Eagle

to for questions. stakeholders turn next We operator forward for want I support. our further continued And I on will to the providing thank call that, our all their to call. updates back look the with

[Operator Instructions].

with Neal Your Dingmann first question is from Truist Securities.

a activity kind Slide mix you my and understand looks half as or the Lower know and much -- plan there's Chalk. kind question How Sean, oil. and half, some are of just you the the on like guys in math you the my team is is developmental be nice opportunities going -- in mean, delineation question Slide throughout it's and -- the out at, -- looking give the exciting bit as I that the or X I Eagle what going far will for more guess XX -- guess, it be after laid to -- the XX. rigs plan second it, year. me going Ford -- more the or certainly then do a more be more of a maybe more will to front little color, I would I

is other So more one those wondering -- for is be when developmental those how should pure I and about to year? Or X more when rigs, you think going the we I'm about think the just delineation?

area and over drilling across areas where as last 'XX, several Condensate the we've areas. Central for the drilled X X Yes, extensively think it's Thanks the years. where about question. we Really, we're are oil Western in

risk development our areas the along drilling lines that comfortable more a is type in of very feel profile. those So

that area drilling. be just we're The Eastern 'XX and in area put operators those couple in drilling excited offset up in out us. we're to in built a that's going the of both extension patient there It's to a is area, very in over really a XX,XXX Ford our waiting an of Chalk proven and top where in on where area. drill block third to position. deals We're and -- under there Eagle together. Austin We've been Many 'XX. acre But X one drilling one acquisitions,

on And as that now area so we've we got a speak. right rig

And for step there little is more a so area to this with up question, our see first rig a us success, going early bit in to of your area forward. a half out actually proving I of yes, park and is the But year. the plan

But area. in always, have high confidence patient our we So want we pace. in to development the as be

so area it. more And little probably one a step the of into a that has out that's

to need pretty Webb? there number in mean stay you it return threshold or mean $X? still $X, to a a will I much I plan back year is there the that area? Is is liquids this

about very always prices. and views thinking yes. on looking are systematic Yes, go returns always We at commodity We a our through approach.

timing Does obviously, around execution. First, make always currently then operational the and capacity. from it's sense of takeaway availability where rigs it sit, our service a

be returns will rule then the inventory? to ratio. for that the a with XX:X is kind thumb oil Really first check. of -- us oil when And gas of about a is do So it's our compete

we'd it's it gas every are oil. returns day. XX last we moved XX and actually, oil both between it's range, rigs where currently into If Our area. gas in sits that will similar did drill If late very to XX and more like year, the below above we XX,

just as drill of and that signal. So guideline want a flat to signal best financial view, it's when the us price view kind -- loose And ratio we'll versus to shift market for we we for a -- a the to -- a maybe our really, returns. from our gas gas might is

I it. to could. And X like hit more, if I'd No,

hedging. on Just

in continue a You to spot. guys better be financial

you good Are -- out gas. hedges quite still future to is 'XX, quite the put to thoughts Just more gas for even 'XX looking curve on? on

Yes, we gas, have very feel yes. insulated to to 'XX's about about No. prices on move lot if gas as because higher think a good being on we Yes, lower definitely, and we exposed collars. but volatility still -- -- totally prices, concerns 'XX of essentially

the on -- Longer like reserve asymmetrically collars, think report are exposed and our So from about upside. right kind we our to so term floors to now, strips of below our XXXX. the we

reserves -- If a specific billion. with of SilverBow very really prices in the being the more of oil, underlying to $X, our value 'XX at the $XX to you $X gas, look value high, close it of XX% but demonstrates being X

So as we oil gas on long end into upside, bullish about of 'XX think -- or that me, very that in we're term, very bullish 'XX being excuse period. on

we hedging question, So more but It's be will contango, in to out? think there's your we upside.

what this made we we'll 'XX and be oil. just plus similar so done year, And on on because very 'XX. look left to 'XX we'll on in on open Probably, but stay to call we've we'll gas continue some -- ourselves have to starting oil to exposure bolster gas, we're hedging a bullish

Okay.

not M&A. but these you do deals, or on as how are know last always one for little that? are bolt-ons some but trades wondering continue know I'm there creative sorry, look, to looking just I is just you days. -- one active I that guys you on just just And opportunities for

good No, Yes. question.

more us. a more like smaller-scale And we've that of larger-scale on footprint. to longer the deals, to have We the mover bolt-on deals But acquisitions, and seen has footprint and early niche worked and that what sets our grow still just a to we hard. flurry really were last we've do JVs a an deals of -- probably as just months. Eagle with larger grown, offsetting some drill do seen in is for do laterals, to the Ford a over opportunity continued feel opportunity longer-term think kind set small view the X I map

on logic our ton that of where to focus kind from the is build standpoint really we that's near and position an term, the value it already we have. adds a being in So industrial strategic think of

of the line question Charles Rice. with Your is Meade from Johnson next

cited Neal I that to was the XX:X bit around wanted little asking guess, to same is coordinate. bit topics little some a more elaborate helpful, But on about. of was really push The I that. -- a ratio more you

So XX. oil, which we're strip call it, looking at is, of a

I that So shouldn't gas But as to about at of Or your think does suggest Henry the your to be you should into until does natural start -- that Hub, expect don't about that How work look it natural at, mean how some gas $X may to your best that -- that assets the would attractive assets. in back going stuff back the to regard? same is natural curve we the oil X? know, took equally mean gas picture we would that

pretty the Yes. follow-up of the XX, is it. similar. lose on kind No, Yes, returns XX:X XX probably Appreciate no. to the the become

view and XX X gas, backwardated. dollar get and the the in a in gas running into rig our And kind going into one being curve in you have mid-'XX curve one that's oil. current with environment, rig once So contango and XX, running the oil of we mid-'XX

modeling things in of So kind we're how areas both mid-'XX. by out, one that's rig

here. that, a They're our a dime. do into to in price oil, we I think dynamics. were lot just pulling love drill if Ford, our we've But and helpful into rigs that anticipate way. But end in turn 'XX, our of we said weeks, right? which unfortunately, isn't is And about great to the peers plays gas within we on is being can really might we demonstrating is mean window curve, demonstrated what can and, only 'XX, an gas can't either always to we and pricing what's 'XX. out then in able strategy the go rigs X And have of inventory of in itself at on Eagle and gas shift out a X it probably the running low continue view

activity. push advantage And Got able an be to do a to yes, I natural want little gas bit on it. to that. certainly it's further

average the you'd I you Webb wait -- to world and that natural X right going have a now County for a And I'm we those it, guys forward. $X, $X.XX as far to look But wait contango to 'XX plans the all let's, call CapEx not look gas those? inference they're XX-month like understand. complete the Because complete you're that curve. I $X these the makes in guess something your given to a as is in in kind it close asking, of what in So as like fair sense DUCs

So should is be about $X $X.XX for -- thinking guys in like work back to it and there the [indiscernible]? we or finish go you

Yes, of and that LNG online, year, of we in had efficient operationally, that's the in in on winter back rigs, year, the volumes gas a kind kick those it's but at delve to so year. we'd late next that supply. X look serves strong window more a back And -- frac as as and X see really sometimes whole themselves. more we a on down that prices ballpark with We which back present gas opening maybe pickup would -- windows pads also to if spread up comes primarily from that and the stable the end slide window And in see exports out, might minds. we've players [indiscernible] hopefully, our our Freeport of if response our get starting

be $X that earliest So something. late but we're I going to probably the be do we in and would year would $X.XX, the think nimble,

is question Donovan next Northland Your Capital from with Schafer Markets.

the as could or data pricing to thought a XXXX report XXXX in interesting was -- want I I pricing like ask look sort of taking the for reserve it about point have what -- first environment. XXXX things I idea one

data other to clearly, maybe gives in need us be, my of there if you expectations, on based there for in through adjustments kind be growth production of we some But growth production have pricing? changes So that would could experience, versus mix -- question be gas. kinds go oil XXXX, useful would a versus your what and thought guidance, point

rough for frame? what just something need curious are. as like approximation be could take for big for did this the what Maybe adjust if XXXX kind So of the time a or appropriate account we would in to things XXXX, valuation

Yes. No, great question.

year-end, at to oil Our report as capital. activity XX-XX 'XX, split the reserve report lined that's shifts but starting reflect pivot a then that more does in already to towards on back were out we

and in rig one and rig oil in gas 'XX. So one starting

to back mix our more it's So traditional capital of allocation.

probably there Now lot would of moves X, down oil more where forecasting gas driven to X if even bit. convert would potential people strong of we coming a probably It upside? of 'XX into it report and little X in price it by be reserve be gas still are a as higher a in That going north curve. but upside gas is have price, could rigs

really that view only report reserve So 'XX again, well. said demonstrates point, through which and undervalued We're to as by that out. help feel to quite value like XX of And is consistent looking very the understand company trying stock higher just just feel underlying the prices, we lot we term is forecasters across we've thought months the here investors. it's of a pretty it, -- very gas investors under your the really, it's near that upside potential a

related, of kind don't I potential but question here, of That's rates. there's and or kind whether there's upside getting then And upside decline potential the at Okay. know helpful. of

So average come hit be and can what button you is sensitive or corporate have recently sort more your decline current that any pause of weren't know the wells to drilling? I doing blended that with rates if mean production like level with itself also, they're the Austin I Chalk rates. out starting prepared slower. declining of is the are but said actually some decline you in wells lower-than-expected but online, remarks, great, the guys

So you're over base getting more of a kind time. mature

And be us that at that's a where if would the at report all, and if it's to not. or towards curious current kind in in reserve rate maybe where of that decline kind just lower decline that's puts of reflected a if So reflected, like trend rate XXXX.

flat -- best in general, Yes, little assets. estimates yes. XX% 'XX 'XX have But on off into we're curtailment of down 'XX coming base report a as reflects declining occurring PDP seeing reserve our a in areas. engineers our remain over decline as estimates The well reserve at. auditor gas best are high-rate out our wells on That our our about because we will what

to choking XX% And exhibit We're XX% been Eagle is wells, Ford so which, Eagle Chalk to in some to decline that more large out XX% Austin point, of rate we've seeing your declines Austin of Ford. initial back XX% range, the Chalk where our range. than a the different

yes, Chalk, shift some So we're benefits decline. to the base to that that Austin seeing on

then X wells. more maintaining that, to to Now our counter to production more of X going in and are 'XX shifting X we rigs rig from that rigs, recent

So our we'll comes decline production fighting as of an increasing newer wells, more from rate. be

up seeing move in probably next of So more the but large over decline program. the being by X, that's driven capital or year a

Sure. Sure.

And question. Okay. just one then last

X see I'm incremental that added could there, of growth the stuff the in but But like I until we're spent you spending complete to those idea what capital -- to County, what For the asking and us them? I'm trying the was to then drill -- already just the tell and be CapEx what Webb that impact or CapEx you and the because it's already or that's DUCs the -- I'm would in needed get so flow in from call XXXX been of other idea XXXX. you've going this embedded to where really other any context. benefit some not money, cash sense

later? won't would be then And that need just much of required later? out has be capital So to already incurred laid been how what that

We're area. the seeing down in wells No. Yes. Fasken

had and More back them down X.X. XXXX, they're we X -- of in recently below that's complete. all pushed As pushed drill million. upwards in, More that's recently, low late

XX%, -- So spend. drilling XX% mix XX% of the probably of

about probably wells, million, those $XX to already to $XX investment million X million We've those across total $XX million. would be close in wells. sunk So $XX

a But now. stranded drilled. that right of just a to So think quickly the hold going for on we gas million, we definitely, to us bring the little capital $XX economics forward, that's contango ground bring kind can and another to we've But on online, $XX and makes bit they're those. being on all got sense of again, it spend curve million that

Tuohy from Your question Noel of Brothers. next with is line the Parks

were leaning the leaning you're were the towards in of budget the the with gas areas at shift of now envisioning infrastructure the things. be be probably areas going or budget? a you in the couple oilier going holdings, that original Just in you delta when and any wondering, was your had -- current between I to spending gassier oilier that to budget, facility the versus looking here back significant you're sort

that X Probably gas, percentage XX% No. overall spend thinking but always go X X if facilities the X is rigs to gas on CapEx to we oil, oil, X XX% same, whole, runs our our range of rigs when were rig to a as we both it's split. in regardless and land what a rig or

right So work pretty always facilities, and between the reserve we to broken spend dollars opportunistic to it's consistent. X/X land. then XX% land, facilities land. probably XX maybe to goes D&C. that we'll there's of that if on Of do, the X/X put And leasing more

you're can of you them And completing Sure. Right. just frac about right hanging DUCs a on pace bit away, instead little those -- just the talk to Sure. your wondering, with with now wondering looking play? in the access the frac changes was if I a of made operating any plan, at? issues And to making in just different crew you've end the

don't address I Why that? let Yes. Steve

Sean. Sure. Noel. Good Thanks, question,

bit a give year, were little until of of Up only backdrop X kind middle me for last of we it. rig. Let

frac of XX%, average, to, around looks fills a out. been and far schedule had haven't the we've proven a since we've of load to middle we gaps on in schedule. we've we able have been load, -- frac rig, but that But last been lot because level of but gaps so those year, find fully comfortable pretty position our And able spread, to in a kind the for we of been a XX%

on been of that, to the we've Noel, timing able come fast pretty opportunity that's back as all an it's anything scheduled. So either or

So for instance, cadence in with rigs. follows frac much pretty their drilling our schedule

As really a historically, you we're DUC not know, company.

take relates have GAAP our we it portfolio, which to to spread DUCs these have So as have we that. that we in do our frac to opportunity flexibility, already by and

been -- concern. that's So right availability hasn't now a

as frac X much more the and the -- the Eagle the we Ford. frac of terms what short in America environment risk-oriented the entire as spread in is all and right the which Basin, In premier opportunities are DJ Ford, of not our spread different of in efficiency, now, much frac it's even spread in #X do Eagle

of certain provider facility, items to we've from use. that. some with that also horsepower, it, to been for able time view respect to as related for with as crew and very efficiency to to it plan on been a point unit and and we continue frac relates chemical, to cost the look So line components at we've to to use there able products hold fortunate the all the our then now And frac sand that work

able also that's needs And for and been secondly some cost. to water the why needs we've And then able some about those we also at of then talked other earlier there, for that, of hold -- we've being offset that facility X% terms able been our sand of the inflationary then in of CapEx. to pressures midpoint AFE and hold and of some within and to now

forward, comfortable go that of the seeing able we're we issues some with lower backdrop in of in So to decline especially being inflation. feel the with

get one And talking return that straight in the ground DUCs, you're ahead, do me. you about you just last for just were completing When the sooner. capital that some have Great. with if that's one you

you thinking to question, towards your about, of kind Or of gas that. more were So just you thoughts bit decided But transaction to, going we asking. a you very credit maybe no, of it's a And more do curious if the more a about of decided a just rate, quickly, decided I'm I would So there's kind of stuff ball looking you debt you aggressive see would bit debt? a equal, things course, thinking if the don't gravitating variable little little responded to and financing on some were credit sort line, activity, do be you type debt go all or know, crystal line. you rate flexibility going the yourself I more year, the like of being you at for just double want this of know I'm but the rest on amorphous fixed maybe have kind liquidity. But know? yes, on thinking markets we

No. Yes.

drilling think drilling and our Just capital, the on at on right, like best debt same we look capital, returns in getting credit. as about we

the So but cost best keep always capital that try can to what's of get, we risk assess, mitigated. hey,

I now, it's where probably up you, more view Right fixed what towards variable, lean debt, on would us. would is and tell our going and our with is it's that so moved know that said, that we forward.

to second revolver it. variable the a our have lien both and component So

and do. So hey, fixed think variable if of out would that, we we for could found a that experienced something and some that us works we that we've rate term that's debt,

line Your is Rezvan next Capital the of from KeyBanc question with Markets. Tim

today. This on is for Tim Slate

a of couple Just questions.

about if are deflation pressure For similar one, the the seeing you could And side? pumping seeing talk was wondering on with rigs. specifically you're I cost anything the you

Maybe Yes. touch I'll at kind that peak are pressures a briefly are high the Steve we level stage that let little of see now to starting on relief. cost seeing off and even

that So on front. encouragement

in that At in rigs side, on just on the the the changing backdrop either And rigs are there's right Thank some that on coming further term near now the of supported it's down. the stay you, longer that softening the Sean. in are contracts. situation Yes, contracting Slate, side, and we're down. of shape rigs rig coming by where market said, term That to conversation gas on price Eagle and side even some for even is the on also there's such or that. least we term. in oil a the seeing I'll kind Ford, said, specific are market the the That rigs, both

in term pad-to-pad seeing shorter quality on equipment. with we're some and, cases, So contracts

continue half 'XX the year, the of and then expecting this So we'll second kind we're that's and where kind to of takes rigs, on us. of see near-term outlook into that deflation

spread as degree volumes area. Ford cost a On some on plateau of down out example, with level mode of bimodal sand. frac Sand just basically for the we softening some those things like kind areas, service the we're with transfer and and on lower in in a tick some and to support Eagle now see structure. entering lot a into We're certain of and water that seeing has right side, say, costs these lower aggregate higher been and especially,

X the Got it. bit helpful. And a a have LNG comes view, XX-XX gas maybe Or longer-term mix my of bigger of expect kind this maybe to next kind that X for your with I that. you bit liquids that a wondering was time X just be on over years, very follow-up, line believe all kind just a to you of I Do picture. that highlighted to build-out? XXXX, XXXX, then That's maybe for years? is portfolio. longer-term

at mix. look this of end getting to we XX-XX approach year, we're As starting to the the

'XX to So away split and maybe we more is let's allocated stay X we in to is X -- X XX we'll XX go move start shifted year-over-year. that that the as with -- if from oil, see and gas, where gas it capital probably would we that gas-heavy to X rig assume around stay And rigs.

oil, and So to scenario. X year, assuming rig we're stay gas getting rig it'll way, mix X that this almost XX-XX that a

Meade Your line Charles Rice. of next question the is with from Johnson

some looks on me it about one -- based at strip, know your ballpark. the number if of I right or if PDP, gave around it's you us, the you thinking forgive in four, So number us gave to coordinates the probably missed PV-XX me five. I but that this, one is that if the don't

to Yes. that we're speak and I hate always the often, that and strips quite looking it to at moving.

at pricing. have here What of top So a number yes. -- I off provided was We're we looking SEC firm don't head. like the my

don't we have front us. yes, of that So in

said was -- the did Sean, you you under Okay. But think PV-XX total I I just mention, X. think

It X. was right at

a right, XX% under value I'd at The year-end of that kind XX. say, maybe that's PDP. year-end, we not so just were that it. take And you apply reflected that into billion could inference, of bad get X and it

call this no I closing time. turn There now at remarks. the to questions the for further will back over company are

it. in the the company. update quarter. interest questions, an and our you. forward the call Appreciate everyone's to we Appreciate second next Appreciate sharing and Thank look in

participating. conference concludes today's you This Ladies call. and gentlemen, thank for

disconnect. now may You