SilverBow Resources (SBOW) 4 May 232023 Q1 Earnings call transcript

Good morning. My name is David and I’ll be your conference operator today. At this time, I’d like to welcome everyone to the SilverBow Resources First Quarter 2023 Earnings Conference Call. Today’s conference is being recorded. [Operator Instructions] I will now turn the call over to Jeff Magids, Vice President of Finance and Investor Relations.

conference. your begin may You

Sean Thank you, much XXXX Thank very Abundis, today morning call. our Steve COO; and and joining us good Chris are call for the quarter CFO. me everyone. our for CEO; With Adam, you our on David Woolverton, our conference first

note to make new download call. this We earnings to listeners to posted Yesterday to financial are website during afternoon, a measures, we may and release. press closest reconciled it our latest that materials. certain non-GAAP to Please the presentation the references GAAP corporate will we occasionally refer which in measure encourage their

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

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

everyone, you, this you, Thank to our is team our our start execute and SilverBow to continues on call XXXX morning. Jeff, a as plan. great thank for joining off

the plan the year. same end the both drilling rigs of remains dedicated assets to of development Our through our our oil with

production from and guidance Our full update. the same budget year remains last also capital quarter’s

progress we detail, and As the expect savings. and year. identify to Costs to continued Steve D&C throughout will our year, drive see further deflation cost begin to have continues team operational we as the efficiencies come cost down

growth resulting sequential move expectations result higher in margins. as the is by compared First revenue The ‘XX. range Based our ‘XX year unit more our on oil production or from will oil guidance, quarter at and at year-over-year. online approximately XXX% year. brought of to in guidance above and full expansion increased cash oil XXX% was liquids performance our increase producing to are shift we per end and high Initial year-to-date, wells this through should the production year of production

year production quarter comprised per XX% hedged was should realized our end, first the detail, further will By revenue to highest Mcfe revenue be has mix SilverBow date. unit Chris As liquids. per XX% of to

gas uncertain we On levels the remain as near takeaway we in term, in capacities quarter produced online Webb regional during the expected. new as firm takeaway to Pipeline by although the County come expect pipelines year-end. improve front, near

are we made It’s our complete have the inventory Should worth the and SilverBow’s over acquisitions assuming gas as from our XX% average cash our year. prices oil at weighted year this flows pivot supports improve, ample our of ‘XX a well year. that runway gas gas DUC production can a later which price this to this and pad oil is highlighting we Fasken in opportunistic ‘XX insulated of hedged callers. price added we prices lower $X.XX floor

allocation and strategy on capital flexibility Our focuses returns highest to our on investment. operational

a and As years competitive XX and ability has our for be of result a oil development to continue two-thirds to gas will between advantage plus The been of now are of pivot acquisitions, oil-weighted. our SilverBow. recent inventory

on focus oil is the a strategy, remains up multiyear development which prepared near-term my piece wrap our one To remarks, of same.

the balance monitor road commodity while we levels our We flow inventory and activity simultaneously to flexibility cash accordingly. expanding the and EBITDA said, adjust have free strengthening and and continue to to grow will to the levers production, map our our With pull prices sheet. have that

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

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

expected and with and completed D&C brought majority net wells activity focused oil our we wells ‘XX XX quarter, wells, we condensate XX drilled Thank on of the was areas online. budget central you, Sean. In provided net in the as March. XX first net The Western

our game and to efficiencies, schedules cost continues team optimize While drive increase reductions operational our this remains drilling unchanged, capital. identify to largely greater year plan returns on

On averaging per compared faster the resulted ‘XX. more day, move has XX% costs. footage This a drilled this reduction drilling XX% overall in times to year along rig XX% are side, with drilling in

our in the XQ On achieved set a an all-time team path. our side, completion record – in efficiency on recent year. last path of record on a pumping – high investing previous

compared equipment cost by we deflation trends First relief capitalizing year-to-date. We Furthermore, XX% wellhead will on tubular horsepower, completed are time and are throughout goods, early key the increased material service encompassing day sand services and on XX% decreased lower in continue market. and day move chemicals we rig to same-store have believe and nonproductive fuel. quarter stages the Frac XX% seen to per rates, by year. cost ‘XX. down Recently, costs

highly move areas, early In our the and we acreage expectations two-well across Eagle forward development. In full-scale Austin Western our from and with supports by results central are initial the in oil in line encouraged performance area, we our oil and online a our brought quarter. and co-developing we Eastern condensate well results pad with which is Ford second repeatable as Chalk, consistent extension

monitor One to we of our to this will our throughout takeaway rigs County the second continue In of area area, web capacity. half move the regional continuously drill to year. gas

sell we to have unpredictable, although volumes opportunity seen into contracted sell firm interruptible of to pipelines some volumes. availability remains above The recently existing

excited plan prices we date pipeline we have Web firm capacities Chalk of to The However, this area we portfolio, the Austin fluctuates best to daily, wells at to as exhibit to across rates. return and allow. for online County and to some results brought continue volumes this and average are conservatively our

in we ‘XX. update, which late X-well Webb County, completion have deferred last in our on we Austin discussed Chalk two As pads

And X,XXX quarter, net We continue upside to see this approximately second the core acres. area. long-term from we added bolt-on early in

of the range. our Turning to at production production end the our first MMcfe oil outlook, day XXX high was of the of quarter with per results and midpoint guidance, at

midpoint, XXX% X% to production a For per at we XX% the second guiding of as the is sequentially. and increase Sean total of implies to guidance of production production production oil XX% $X.XX year-over-year. per are year our ‘XX growth to quarter, day and Full mix. expected which to day production of of end, $X.XX $X.XX to growth XX% unchanged implies comprise liquids noted, XX% year overall is By production

that, I With to will turn over it Chris.

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

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

realized XX% of Hub our of During the quarter, NYMEX price XX% was realized price of and was NGL price was WTI. our realized WTI, our XX% NYMEX gas NYMEX oil Henry

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

and quarter, basis supply Risk our Henry is is impacted hedging than a range of the and by our in compared to we management to key basis are lower by widening further business, was strategy. price This During supplement differentials our our demand. aspect and Hub. loosening has of regional been historical realized gas adding the caused proactive

XXXX, have mitigate further basis on XXX per gas For secured hedges risk. MMcf we day to

on million. Our contracts the $XX was quarter approximately for realized hedging gain

day Henry Based higher of pricing strength quarter reflects oil the hedge impact oil midpoints X,XXX the the on considering last per and day first MMcf as benchmark year. of has realized hedged. is hedged hedge, highest per for the hedge mix first this of remainder as SilverBow per as the of remainder hedge XX date. impressive gas Mcfe the XXX compared quarter, guidance, gas hedged NGLs our to April The Using unit This of on our position. to of year. production our natural we the per barrels are Hub per $X.XX unit book shift of our was X,XXX of in have higher for Notably, well per and production hedged barrels revenue declines revenue we current XX% of XXXX, the XX% on oil day of revenue

detailed first our file we are per hedged. of XXXX, contained XXX day day XX-Q NGL today. A collars. presentation of summary our X,XXX contracts expect to have the quarter, barrels filing which For day swaps per amounts gas per X,XXX of hedged of later for hedged The and natural we derivative approximately both hedged and of and inclusive barrels oil in MMcf

Mcfe. of $X.XX Turning Mcfe. stock-based gas and to was $X.X compensation, Production expenses million and X% includes were quarter, which costs. $X.XX processing oil per taxes were the were fees. for Transportation costs per which Lease sales. professional excludes operating Cash G&A, onetime

Mcfe are to to lean basis prices. XXXX, million For which cost an slightly periods allowing full we cash We one-time $XX.X a differentiator, inclusive down midpoint, our commodity structure of fees. the implies guiding sustain of to of for during year-over-year, on be SilverBow G&A profitability year consider be volatile cash G&A at

accrual our an range EBITDA the quarter $XXX at to million. guidance in Adjusted $XXX $XXX our XXXX, land the basis Full approximately X-well fourth and unchanged gas opportunistic for guidance the on was year million. a Capital CapEx million. $XXX quarter totaled spend. expenditures of the Austin Included Chalk pad in completion is million quarter is for

cash our in the Web quarter for the we free recorded wells quarter in outlook, of to last of at curtailments materials, flows flow the gas timing in County of flow the projects to fourth on first run we a due Cash cash second and deficit reconciled free quarter. quarterly our constrained deficit drilled in spend results. a As web quarter. and free our variability earnings were creates deferring Based year ongoing in the flow cash and gas The guidance D&C count. slight in land latest completion expect

we cash the in the growth strong with However, second year. free full positive flow projecting for are half,

our to Turning sheet. $XXX balance was million. debt Total

our of acquisitions $XX $XXX for we quarter an credit contributions Bow for for and ratio with for years, flows that on heavies. first bit million used down accordance basis, our XXXX, to the excess ratio the totaled XX, March not of On LTM EBITDA of availability the Xx. million the LTM used first closed be through in leverage the we Silver quarter-end will liquidity. hand, of $XXX sufficient end our X.Xx. cash in period facility had to As period with last entirety of covenants of than acquired At our compliance properties full reinvested and in resulting ending under million. borrowings credit includes the $X revolver continues covenant adjusted facility had to $XXX LTM several leverage from cash purposes to Bringing calculation. adjusted contributions pay are with EBITDA the of our and our million from Consistent approximately less with of for and drill leverage target ratio the SilverBow million were financial strategy the quarter, a

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

march for towards production. continues over a our positioned and We in In stakeholders value SilverBow to double-digit creation day continued the for the billion is catalyst execute is significant term, we growth feet X.X going years our Chris. next several Thanks, near production. growth forward. on of ramp oil strategy cubic as its per equivalent project key

focus relentless and and paramount inaugural look employees’ updates sharing forward to and future. engagement the our safety our release is with more the stakeholders operations call. to of all our forward want our safety insights culture continued towards next thank on our our community as look environment. providing sustainability I of We further the near well-being our report We for to is on their with to Our our clean in of support.

And with operator the to turn questions. call the back that, will I for

[Operator our with Schafer Donovan Northland first Markets. Instructions] Capital you. will We question take from Thank

line Your open. Schafer, is Mr. ahead. go

is Your open. line

I – on was myself. muted I that. about Sorry

can I of just sort capacity the in add XX% week, with off just in interruptible for So this no day being correct like course, I type you that’s when mean I’m bars kind know how super around it wrong, like a if hypothetical, give thing any but another to capacity. of sense can kind X% assumes then what on conceptually? crystal available, terms to don’t minimis, just it I just able but you the my for side. is if so theory, to is I’m start X of magnitude may having But ship are get trying up to thinking volume, guys of interruptible a more your and of I of mind may I de kind be – not capacity capacity. interruptible what then error want interruptible think us ball. you curious gas me guidance about of think of was that’s just like so not that to where like here, But maybe have ends around a or

on. sustainable and it availability probably we can Yes. XX% When appreciate produce. the of capacity, No, around it’s X% And there what question we is, how kind above I how to spot question. is available do your much is see

only a very not bad day inconsistent at for it’s this point, So, sometimes a number. or But two. that’s

towards that So, guiding year and we capacity still we that full firm that are do for think the our guidance. it’s prudent

to then but aspects it the And improvements. also sounds ask also costs, significant D&C I like Okay. efficiency deflation the want gain, got you’ve efficiency pretty

or think way more And higher quality was like It’s executes crew so it kind around of can like I frac an you the the that before work does just the sort up couple you even pricing, of of one uptime a I’m with well one a of gives in kind that’s that a part are Ford – spreads. – it you better Is unfolding that is possibly whatever. initial improvements of is being consolidators you crews. showing to the and or with just in with someone what but about think and one the idea scale importantly, that guys like strategy you or then in can you the know about of and if couple important. get a talked some have line a in not point proof consolidators, before the efficiency together the I wondering, this day don’t the a to consistent idea of unfolding get – really I sticks having Eagle you talked of way

like get original nature are unfolding have guess, were of the thinking able pattern it high of in crews feel you to I So consolidation in kind the and you them? of Is kind quality you that retain then strategy? like, been a back kind to that

Yes.

time brings that And we believers We I seeing there with increased scale, our long firm from providers side is it purchase we we to of on into pride over continually a improved that the period consistent services. but are We are also providers are being the build out. power, with operations we that And that service result, ourselves optionality put seeing more get level are able think as a of a lot load their their And performance we of as it comes with to consistency schedulers. work that schedule. our partnerships. stronger We feedback business. from service prudent from play

operator be And a that our I consolidator. it’s has operations. And do our proven record performance and a demonstrated track that think larger just not I having So, think has quarter-out. more and easy level-loaded footprint think record. we to an company it speaks It takes that I to invest a and continue quarter-in to

if that know improvement. then into pricing everything. what will crystal conceptual queue. moment way take don’t a possible, and basis and Okay. like XX% course, to prices the – have then, maybe producing translate framework magnitude the think what of us like you back That’s new or or any I will interruptible ball net capacity. for of volume question and I the are increase question benchmark of others online to – coming to question pipelines higher you take Is you similar last could takeaway my is you give where away of the existing? I And a region of guess with kind year, move asking the the a talked I in of the last offline increase, from what was this about just capacity or level the about end Can relative But pipelines capacity these I like have the does for the jump kind and of helpful. kind Again, to got new XX% I of type the is towards they what with of

or to XX%-ish or XX%-ish terms. Again, could maybe those and to would capacity. get a is more it’s more like But to it’s talk tend think kind the of to along to in like trying mean? something well, just something like about into best the that if capacity, translate about relative this what to XX% order So, of of, if increase the even going levered framework kind take

Webb currently around up, double it that Yes. probably XX last planned boomed have sits X.X to online high-quality has potential scheduled develop expansions end the takes several Definitely, really large it and capacity of as quite by not to expansion. and day Austin but it, operators area over that XX started Bcf come day dry Bcf play the with Takeaway the months the Eagle Chalk Ford year, gas out County zones. that the a to a about of the in months are X.X of takes to come

provides definitely area volumes of come. in the come to more for out to the So, years

from we on ‘XX, very new with bullish export that primarily differential Now, you into to are our demand on get is view speaking of a online front. timeframe what’s especially mean as the LNG Gulf, in gas, still the basis lot standpoint, ‘XX coming a

big macro think across going get that once be belief I volumes to our gas gas And basins. of you in there to so look at shortage the of we period And forecast is time. a

so some needs to going more NYMEX pricing reflects but late County, strip the will timeframe. not And into basis forward think move going the only expansion close forward the think to in and and to we see that, absolute historical critical ‘XX/XX will we increase will gas this as and we is expect back tighten levels, up help we price demand meet that of Webb be to

Okay.

thinking not any that. the or you to and from benefiting So, penalty going getting from out suffer boxed then benchmark goes are up

So, you up and a translation benchmark that. clear of into goes kind get

guys. you, Thank Alright. sense. makes That Okay.

Thank Donovan. you. it, Appreciate

Meade Rice. will go go we ahead. Next, Johnson with Please to Charles

there. and to the whole Sean you SilverBow team morning, Good

Good Charles. morning, you. Thank

you think have the ask moved that are there of on in few you others for think think wonder in Ford And about touched this in one I there brought to – can your I a in there Eastern said of rig also, I to I maybe if you is this prepared Eagle to do more and a listening question Austin there and XXXX wanted have over a a comments, Austin me so Jock. and one extension. And Steve on recap about move or far for you done you but Chalk. Steve Ford what I plans rig because Eagle

a recap so So, give remainder it have your like for ‘XX? what extent can how just some what – risk plan? that plans to to sounds are the the of what well you you those of far, done have you you And in results, are versus coming do the

Yes.

bet. You

all this block two consolidated in that and under recap, is started in together result wanted a to working the in drilling. place where acquisitions Just we put a did just before of get interest block one that the and went in block ‘XX, one and we XX,XXX-acre we within to and ‘XX can

one ‘XX, first So, early our just Ford, like wells in you one came are drilled The online, we mentioned. ramping. Austin still two-well Chalk they Eagle pad,

starting We just get haven’t or to reached there. IP quite

the get should the tell results we with to-date. out exceeding indication we front are of well. not excited can the are rig year announcement. are results script, line So, far in our you the in as Steve’s second move that in of and seeing. we about or to coming I the that the in But are what wanted of parking give an thinking we going comment to for are results thus there comment what on to And quarter we half pretty a

it. Got

That’s on but moved park there like second was till two-well outlook. the it pad. sounds are And It for the so rig you the there half. to going off,

is. That

follow-up the Sean. Got second, a it. then landscape. you, on whole Thank A&D And

this move looks – have We been we and my like and have coming down, permits. this longtime the And couple in – in it Ford selling corporate a company player concentrated position deal. some an company the a with we a Eagle Eagle A&D that’s the unusual Canadian seen then in got morning, have of then a Ford, a slowed perspective, from the and making and got

through you could are looks if us Eagle perhaps there acquisitions today. thoughts to your what in some potential about the wonder the landscape I you what give the de-lever So, And particularly, like chances and Ford? for

private The over as been private Yes. has the Ford of couple And been has a significant of months selling selling well, an to you really public. the over area a activity last of now. announced couple transactions a there Eagle last mentioned, one days, to one definitely like public nine just and

range of size many be $X.X to prices announced continues billion a packages being with the $X.X of a activity between up billion. of to range and and So, scale of

SilverBow the have So, much lot Ford the we Yes, still a occur. lot in Ford think past. sets to that how there for it. is out that. the to reasons two that of interest for up in we the question, in Ford participate laid remains Eagle Eagle We reasons the in Begs and is do the activity further think Eagle there of consolidation and a well can

Ford, the the – window the price attractive Eagle Contango in is very strong and gas extremely into look curve. a First are of economics moving the

So, of more And there the recognize that in coming And a and runway folks into avenue dry we Eagle view to it’s is lot poor think more basins. in then we – that. becoming an think that inventory is that starting there we think there. up Ford

inventory in to consolidation look occur, that years being So, done we now, near exposes around think the value, can Ford the should a PDP Western there lot right Eagle attractive that of is in buyers acquisitions especially ahead. but

the there plan remain be Ford our yes, how growth, think think that you through deals. to opportunities, de-lever like we And that mentioned, active we So, we will to based structure it. in is is Eagle upon active, and

thinking. detail Sean. on helpful That’s Thanks your

Charles. day. Have good Thanks a Yes.

will to Truist Securities. Dingmann we next Neal with go And

Your open. line is

is bit wondering discipline. all. first thinking how capital about my more little Thanks you just a are Sean, morning on Good time. for question the

single oil you and forecast free nice weak, in lower later Specifically, all lower, am be continues you to consider doing gas-focused remains a like have about to it’s potentially gas we But creep mentioned going cash boost would in would the in I in activity more to if go year. – order would rig wondering flow? the plan slowing release a

No. Yes.

One of our cash is spend guidepost flow. to within

so been last has lot to are to XX that on done on really, it’s of short adhere days going of just just oil, we And commodities, the a there $XX to both volatility that. time. cycle but a continue over And in period

we flow. monitor So, commodity and and really returns flexibility obligations our in on can’t MBCs What’s continue cash one our handled meaningful driven really is we no staying to any operations, prices adjust good that within will and [ph] both so contractual service land rig. investment capital by have than side or a lot rig less on with even commitments be one the or of

and free flow So accommodate yes, between to capital. lot flow. of to a that that year-to-date aren’t if And our are prices strategy, back within really cash your commodity but hedge strategy we book near-term plan back of will stick the if growing, to the we it and dial we doing to there cash with point, the in already growth have generated dial have we

next continue and benefit second is, big how this have operating believe costs Really benefit that that on Yes. even optionality. you believe, remainder maybe then of the see year, you to OFS do plan? year how a And for mean softening you my could like a big potential the question I do efficiencies your or

Yes.

It’s are – feel at or we I and to seeing first plays I quarter. out it year. in wanted quarter. deflationary time. in there the the we that double of pressure. out we that some didn’t a think potentially to We wanted year-to-date, think point up, probably efficiencies XX% this like way we play half earlier the XX% minus both started realization is in see lower have operational another for yes, capital on plus But could are setting and things continued the the guidance second how see to this to

Well, to hear. great you. Thank

Neal. Yes. Thank you, good day. a Have

we go with Next KeyBanc. Rezvan Tim will to

is Your line open.

at of Charles, little a extension, Thanks couple maybe ask letting me Eastern folks. I I more. morning sort on thought for a stole questions. pick of topic my Good but would the it

seem half you obviously, more that it you back came something numbers confident of second the at to what’s you decision you? made Was to are the So, year was don’t is drilled, for move in have excited, pad before the that this or early share. production rig

for well felt Yes. the sure well to just de-risk wells it us wanted on to area We had in in before, dozen good before rig capital moving but in the just had feel performance half performance a under But drilled and bit, a we as had be side, as we belt had performance since the the getting through drilling both going reservoir that – there, the hadn’t our acquisitions. little and side and plan but what our both make get CapEx would two we there a to it comfortable saw felt was prudent versus some results. wanted side

it’s – sticking two our are it’s really, really confirmation expectations to-date with of and plan. are the So, wells our

Okay.

talk area? know early, the kind liquids next we around to relative Western there guess that. about cuts it’s in you but the some will I of quarter So, numbers I get oil the can

Yes.

really within within spans volatile it of the windows of some some it window, condensate. position our with So, the the

probably drilled is in that XX% so the Western two than Our range, oil condensate wells more to-date, oil-rich area.

plan the ballpark, in oil, XX% The in drill of condensate XX% XX% both liquids, that mix second is actually probably more in Our to year kind windows the so a half there. windows. of gas

in volatile the oil we window extension year of drilling the half half the in and at of the was probably half the second window. – if So, is Eastern ballpark will the I the condensate

Okay.

trying front. deck housekeeping Slide then that, I of second of level production am the the the related a of just sort to ramp a to in in little oil, bit to kind XX% half somewhat as about sort was on Just think year. XX% Oil there. fourth We talks liquids to XX% said of of quarter. results about it reconcile the to will trying production XX% a first by release think steady quarter. press look was The transformation… XX% of quarter? I model the And the to that forward of we mid-XXs the fourth to by of just modeling Should

are probably oil it the of and sure to we a make percentage. percentage, and XX% not we – total on excuse to question total consistent for look Good reflection oil need me, liquids at XX% nomenclature. is The

So, NGLs. we release, a XX% we the that make nomenclature press to Of liquids. oil, it, is clarify liquids, presentation. XX% we think two-thirds of sure is you. scattered if look of yes, one-third Thank have across mix will to Yes. And corporate

should being clarify – our arms to sort mid-XX%s are to then, about just of of think quarter, that get okay, production just of kind is around, fourth or in we you trying saying? just what the So, oil

my will be Yes. XX%, low-XXs. do to yes, in head, think I into Trying probably the the math but we

will offline we meet comments. Jeff about are thinking to appreciate it I correctly. make But sure just the Thanks. Okay.

Yes. Thanks Tim. Have a good day.

Okay. Alright.

Parks go Tuohy Noel will we to Brothers. with Next

line open. is Your

Hi. Good morning.

Good Noel. morning

Just a of it on pre-drill completion the wondering in is or analysis? about are or and terms couple matter point more side Eagle selection the technical drilling challenges particular of a of side the Ford co-development of the at things, Chalk, Austin any there sort this

taking intermediate in drill it. zones. and set Ford. string, co-development, The Steve two could to we but into parts going in certain Eagle for of on this. in and aware with of string Chalk the there – play. difference operational are two Austin in an advance into between need account, is But the the that We is probably terms the chime can biggest taking all No, some planning fully of differences And of

rock, again, we a the a completion type probably that same, that’s of our treating technical frac is recipe from different. anything We And Chalk bit drills a biggest So, and harder little kind see is so side, little but similar is Austin the difference. drill not slower, the see pressures.

adjustments we on-the-fly like no Ford So, Chalk. between simul-frac needed and Austin Eagle as

We are you I like not add. anything know chemical don’t or having makeups proper like missed to anything that. might adjust to if want I that Steve,

a you more well then as for both think excellently. covered it little just weights of both control. wellbore we well I fine-tuning as have stability And mud from in them on

point middle-term West, tough quickly this event that of up just more out gas and see few have on pop return for significant gas up. that complete to nat-gas potential up the was On your opportunities was great. recompletion those do volatility as of and have I could we if And in you Okay, a the thinking relatively the other could us at a do okay. Thanks sort about there activity move if near-term? things return good those, you out rebounded. environment. reminder there, In you that continue area I pad we that the is wondering, months prices maybe are takes thinking about mobilized a a be that sort

is Yes. X over our the last Webb years. Much of development County years, X

So, much of as completion the optimized are far as levels was concerned. we at

recompletion a as area So, see high that we work-over, high like don’t area.

have We have assets gotten of some more kind over years. the on that we last front oil been of spending of under-loved these as dollars doing that were couple the

just efficient. have is there. that pads have we been three-well some got two in the front. from justified a are and we have XX on four-well the in through and But days really pipeline back complete availability success prices another year. period, out. other two-day there a we anytime timeframe if the Over move it’s that gas – can rig month’s so it, front, So, pad in it But was a fracked having we that could a Drill yes, thing we the

XX into up can drilling So, ramp we days activity rig there the from getting first moving in production.

leverage rig. best of our is just probably the the that’s flexibility So,

Thanks Okay, great. a lot.

good day. Have Yes. Appreciate a Noel. it

Energy Jay to Daniel go with will we Partners. Next Geoff

line Your is open. now

savings. Thank to you. just circle back drilling I frac wanted and the Hey. to

talked XX%. that’s baked you into that? if pricing efficiency us can And help disaggregate components and curious the XX% of is And there of absolute the that. the I efficiencies kind pricing, You of about if sort if kind was and of

or down, thoughts come And a relative efficiency. definitely drilling costs It’s to part, don’t Yes. down would you seeing any front materials, even and levels, don’t completion as both on definitely in on trucking I down, might it know that tell material some have a and with the on could across deflation come services of fuel combination and us, I seeing expect, Breaking come the the most the of you majority have but if those side of production Steve, that. expense comments costs we lower last seeing, and combination. at our to are chemical but costs you for different operating it cost side numbers out, service and prices prices add that you year.

of yet lot cost A seeing now that right Yes. point it, the of in few experienced for the from in Most for we are currently we process have cost. perhaps forward looking down. a already incurred we this efficiencies to taper at are to now, more, essentially November and but unit where

kind course and in split to are end reduction as look through XX% of out the for year. the the of So, weigh that if year, they kind overall drilling completion about both of of XX% over an you the we equally

Awesome. a lot. detail. That’s really Thanks great

Yes.

bet Geoff. You Thanks.

for now or further at back over Okay. are the questions will I And our any turn to there remarks. no time. additional closing call presenters this

today. joining just forward always look will I the a We quarter company day. next have for the nice Everyone, the to and thanking further No, questions interest close our and by call call. the everyone updates in appreciate at

today’s concludes conference This call.

You may disconnect. now