SilverBow Resources (SBOW) 3 Aug 232023 Q2 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 Second Quarter 2023 Earnings Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. there'll question-and-answer remarks, speakers' the be session. a After Instructions] [Operator

President and Investor Thank you. Finance Vice Magids, Jeff Relations. of

may You begin your conference.

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

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

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

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

Thank of objectives. and second the and ability our this meet demonstrated call quarter development results for morning. impact everyone you, to joining thank oil and the SilverBow's focused exceed program team's Jeff, our our you

Inaugural our our place report, this appreciate With we we the Report. are cash flow to quarter, Our flow significant and generate investors for in Sustainability report delivering XX other to standardized living stewardship. that the growth and months. have we differentiated the framework published key next strategy cash during while ESG well-positioned over this fully is within now to year free I'm pleased stakeholders

results. to Turning

guidance in end came high production of quarter and increased Second the XX% year-over-year. at

has oil guidance strong our by driven the production tripled as was assets, and year-over-year. high oil end growth performance from exceeded production our of nearly Our

year in Chris of a derived will less revenue liquids, XX% resulted our rapid mix than further compared XX% of ago. to As from shift production the detail,

board. front, below On guidance in the the our cost across operating came expenses

approximately by range $XXX CapEx we lowering of million. year, For the XX% are million to to our guidance full $XXX a

to Our cost to schedule efficiency still and by Steve's gains savings reduce optimizations guidance. are delivering spend, our us production along team our capital while with the D&C several year full year-to-date allowing

We also a core to expected differentiated cash CapEx $XX full volumes in is introduced flow our of tenant million. free flow million profile lower The $XX cash self-fund production, at XXXX (ph) spend our year guidance a Higher strategy. liquids positive year to ability is ramp to full free and our on a year basis. gas drive growth of end

we balanced a focused increase represents remain a XXXX in commodity significant on production, oil While approach.

several acreage plans. made our have seen we our our portfolio. long quarter, we the During some term best strategic near leased County, Webb returns additional position, gas where development dry advancements the Dorado in in we of In gas

online gathering pipeline year-end, area. support entered into which new infrastructure Importantly, we coming in this multi-year will our also by on agreements development plans

quarter. at prices. We allocate and capital drilling natural fourth These Austin half ramp and assets gas of actions to year over the X-well into we to year move are where DUC anticipated Chalk to rig higher in plan our the gas complete pad a end up XXXX a planning in will gas alongside our volumes the second

of and one-third portfolio. plus locations locations. of (ph) have roughly We years inventory locations. consisting our to currently Turning With liquids XX identified XXX two-third gas approximately

acreage company prevailing through to and continue We accretive commodity expand the our A on our to key incremental leasing prices. unlocking of objective is of existing additional have making assets, to flexibility to adjust acquisitions. development inventory opportunities

prepared wrap our up To oil my near-term focus is remarks, on development.

stated next our generate free to year XXXX. cash target Our times. will drive cash towards used than ramp positions SilverBow of gas production year to exit less This be combined flow our flow end to plans liquids at free rate significant one production with leverage in ratio

has objectives key through team cycles. commodity established record Our our track on delivering of an

to said, over the call With turn I'll that Steve.

second the XX completed net In drilled Sean. you, XX quarter, online. net wells, we Thank wells wells, and XX brought net

quarter Western during focused Condensate on the Our Extension D&C areas. Eastern Oil, Central our and was activity

executing on our focused is with outperforming increase. year to efficiencies our this results operational Year-to-date, team Our oil strategy continue expectations.

rig On higher. drilled are the day cycle ‘XX drilling per side, XX% our better XX% than times with footage

year same-store total have increase averaging gains day. compared XX% efficiencies below On foot driving in to the efficiency day, costs reductions XX% costs AFE our stages lower on planned ‘XX increased by a year completion side, increase completed per cost X% in this a compared last and in proppant delivered year, targets. a we this pumping basis resulted to and XX% D&C have per lateral The per in pump D&C were our

continuing end. seeing year are frac cost reductions savings edge market further estimate are the We also roughly others. and in rigs ongoing X% including deflation through to XX% drilling casing, indicate rates that services, We D&C realized date leading to with market among to

strong production supports Specific drove second above results. to-date and development range. performance guidance to The oil, our quarter well repeatable performance consistent

ongoing Chalk encouraged assets. remains on Additionally, and our into existing unpredictable. County Webb availability In the with of the Austin oil by early tests our area, gas interruptible we sell pipelines of to Ford co-development volumes are the Eagle

at volumes XXXX. rates We to the for to of firm for continue conservatively plan remainder average

to our we a cornerstone gas future said, development. see That as Webb County

continue area inventory identified net we profitable XXX the our one XX,XXX in expand position most acre a X,XXX of this and leasing quarter, net acres during assembled the locations in drilling now with in gas plays We nearly to have the country.

of ensure secured takeaway that will gas incremental also year pipe on term bullish agreements As multi-year be towards prices, we online coming end. have to remain development on we and this inventory, efficient long

and Turning to outlook. results

MMcfe production Our per production was of of end with guidance day XXX second at exceeding the range. quarter high our guidance oil

unchanged per production per year-over-year. are to of guidance implies quarter-over-quarter. to of MMcfe a is the guiding at growth production we quarter, third day increase XXX% of and production the midpoint, XXX production year growth X% and overall For XXX ‘XX Full oil XX% of day XXX

In rigs through projects budget, capital plan plan other one and our QX. drilling both to as allocate the in drilling starting And to drilling gas one we then XXX% our oil to our continue of oil to is regards of previously QX. have drilling, mentioned, capital and to rig our

our will course, capital as optimize we flexible remain we schedule accordingly. Of on allocation dates our completion drilling in

With to it Chris. over that, I’ll turn

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

compared and derivatives ago. a oil second year XX% of natural quarter million, note, oil $XXX gas of of Of to sales representing sales. XX% XX% were with Second XX% gas production represented and sales excluding quarter

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

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

Presentation, and historically than compared we historical Year-to-date, realized on Slide prices is regional basis Hub. our NYMEX result gas and our has price widening of benchmarks. shown the to range XX supply to closer lower a As by Corporate differentials been realized was loosening This have of demand. Henry impacted of

of strategy. are basis differentials we regional closer to Risk aspect and to a our further that recently, hedging key market market. proactive is the are has are More as averages, management in historical business a observing to adding we more our supplement reverted balanced

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

XXXX, XX% approximately July $XX gain gas Based MMcf million. of day are and guidance, Our production and have XX% XX, book barrels for per remainder as Using realized oil remainder of per on we hedged. X,XXX of barrels midpoint the hedged hedged hedging X,XXX the was on of contracts natural oil hedged our quarter year. the NGL of of of we day for this our on approximately for gas hedge XXX hedged, the on

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

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

guidance categories. cost quarter favorably compared second Our to across all

million we to levels be cash compared continue cost G&A cash sustain structure of to basis an $XX allowing lower at our are periods We during commodity XXXX. to midpoint, trend a year to Mcfe the to which SilverBow volatile guiding on for implies Full G&A lean prices. of XXXX, differentiator at consider profitability

accrual guidance decrease range $XXX totaled basis lowered at Full to the EBITDA an an Adjusted we approximately for million, the $XXX million. the quarter $XXX second million. $XXX year Capital million have CapEx for to XX% our on XXXX, quarter midpoint. expenditures was

date. mentioned Steve cost the realized to as Our to efficiencies guidance that captures savings optimizations update as and well scheduling

due first have Webb we materials, quarter. earnings our deficit year. curtailments ongoing to free flow in gas the half flows of in a reconciled constrained Cash the over the cash As recorded for been County

As ramp we of oil in volumes free third and the production year, at in to continues the second quarter. flow year-end, fourth to and expect cash the positive online come gas be half

For cash guiding $XX the full year, flow to million. $XX of free are we to million

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

entirety EBITDA calculations. under million used As includes LTM facility in from of period and accordance liquidity. $XXX million facility the of million had of availability June ratio credit with for resulting contributions closed on our of $X our leverage in $XXX we the adjusted credit cash XX, SilverBow for hand, acquisitions of

our be and On for less $XX period strategy, flow of LTM down Consistent sufficient the quarter through and to X properties times. million, the target to basis quarter, the pay leverage SilverBow XXXX, our we X.X the in had bringing that covenant for borrowings the headroom. acquired were full totaled is million a bit, purposes of times. ratio and LTM to an continues from end will reinvested At compliance of leverage approximately our covenants cash EBITDA second financial the contributions to ratio with with ending drill excess $XXX our with revolver end not than quarter used adjusted

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

to several feet continued and project forward. continued of execute X.X as get our takeaway years, increased day production. production position in stakeholders to ramp oil billion on key near equivalent catalyst in gas at per capacity the are creation strategy the end. cubic its double-digit In continues value SilverBow for year Chris. term, significant closer its we next Thanks over going growth for We

be flexibility for highest next look and on providing between for Our and updates will stakeholders further gas operational to been to their call. our to ability our to our strategy continue We support. thank us. has returns continued and time capital advantage development allocation want The real on investment. emphasizes forward competitive pivot I a oil to

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

Instructions] Securities. question our [Operator We'll you. take first Truist Thank with Dingman Neil from

is line Your open. now

Good morning, guys.

Sorry about that.

development. speak you oil efficiencies you have of program. what And continuing given you It like your So Can in or to year-over-year you're And on just mentioned program. type making identifying question I'm sounds my are think all believe locations first there are you've progress all strong I I then suggestion, growth. the really the with this see of is just left some to secondly, XXX% wondering, number there? you the

Yeah. Hey. Good Neal for question. morning, the Yeah. thanks and

this our rigs areas and area focused have couple of out the over the year So been on were both Eastern oil central years. really of built acquisitions that Extension, last our

of So pivot since really successful last team's areas assets end very the those and those of of the proud year. integration into

our liquids that We today, those our there. Extension those and locations XXX, runway other two area XXX XXX inventory to the Of about historical expand XXX further other there. have are plenty continue Central we areas, Condensate remain Area, of plus the in so look about of Condensate. forward, going quantified Central the to Oil Eastern Western as includes in as well that we As and

another that One the of wells of results. kind in of things Extension. monitoring in in Chalk we've We're doing, a area, the – drilled Eastern early one we the Austin those one, couple are central

underwrite So really that we even zone, value to acquisitions. any didn't in our

unlock from we're transactions. incremental values those efforts making to to So try

understand bringing want to secondly, you around just the that quite on sure positive. pipeline County are I I on? then And benefits the what make just just sounds agreements gathering Webb Great. highlighted,

the Webb growth years, took really of off over Really, about out capped, day. County Yeah. of last just probably as X.X by couple end Bcf Webb of was gas takeaway a 'XX

day. will So we've that out one, on, another X that we'll with, a two another incremental by contracted expand projects, project There's of pipe that's capacity. but takeaway Webb that increase coming Bcf

with drillers kind takeaway And increasing up allow and really will start other So programs capacity area it, it's once lining to the expanding Yeah. what prices. and really for like our improved gas drilling of we about again. us

was we're next county have able over away gas several securing years South the that our it over us, to capacity from some firm develop ensure that So capacity into for to take and projects Texas on plan the more to markets. the

I've rig. Yes, said I Sean. Thanks, that. it like

Yeah. Thanks, Neal.

Meade [Operator Instructions] Next, Rice. we'll go with to Charles Johnson

is line Your open.

team benefit you from question morning, these whole Sean, two powered in more contributing bit you ask looks XQ the are a updated that information XX. results a are And Northern Live your going your that have another it at continue your you there. in and most that Good I'd hopefully presentation, pads, to like the to ones those down And lot the Koerth on Oak, really Are and looks the SilverBow of Is you differently here are oil the pads. drill XQ. that talk recent are there? Slide -- pads like Keith good I like put and what it maybe And you're of really results guess outperformance to to results looks two that can looking differently seeing those I'm those the early or with about the you you drivers? the two right the James that production read? in particularly did like

north, would you right variance deeper the where James curve Tom. reservoir Edmund this definitely area a of of and moving kind question. but a there's Koerth the bit as conglomeration pressures, Appreciate type quality, out exists little the is this you to reservoir in of the The that area, of kind across Keith move Yeah. like area tell

average an got So curve. type we've

relative exceeding look say, and are looks is hey, their those would type like Edmund curve wells Tom underperforming. the it to Actually, specific You expectations.

So pleased all of we're across really them.

things we're the of that Some doing differently.

very the drilling through as we of think then operator of design wells. redrilled feel several they like and there didn't optimized just I wells, that the strong over their we're the that went job frac as on years. in basin in-zone concentrated did a focused It really previous parts last we've historic other and

that's really driving mechanisms of the So outperformance. the

pressure And we're the lower Tom Edmund flattening production the quickly now optimization with area, said, converted that done lift artificial decline. one a to we've and that of just there on being seeing is area things

is for the period the quarter seeing flatter So out longer wells some a outperformance -- of production is of of that new we're the for just time.

done So operationally thus we're really we've far. to excited what

thing and between type to region Steve referenced location that planning and timeline those, want you Sean, how you explore drilling gas-directed flex what's you prepared different curves. decision I it. I'm between is make What you can it. one rig gas XQ. go back to back helpful when -- that That's detail Got incremental in have your about the, oil guess, both, guys you're or are remarks, the and in -- asset-specific other you a is rig that to having the natural I forth and because that actually curious of you and one when

you when – you alter course. when to start to time the when elapsed of from kind decide actually So you

it. -- of that decide give But side for -- that's for piece be that there's going recognize of price gas either just in price to a not can then the you're kind to binary us one general, on sense decision? that just you natural one looking what when at make you there's we're not price I that second threshold a And and is

to us to that the we'll make that flexibility the rig. then XX this year, I'll than this maybe Operationally, the permitted, part us the gives last question. first, right? less have pads good we year, So question. No, have gas down, days decision, know Yeah. flexibility address early ready of break it operationally, we and late and it you price build move did go takes to

So schedule. we're ahead of

be month, go the takes to So months, next it essentially, a in a Hey, the prices move have pad to up drill gas. is within we'll and a XX month that, But pad oil. oil let's next direction over usually an wrong that decision. ready moved we'll so to pad, hey, the ahead make going

a really, I say, month-to-month it's decision. So would

in done coming been One this to fourth since early we grow of that year. the DUCs that have the DUCs pipeline quarter sitting that's online things incremental we've as into the capacity have help really is,

going area. been $X. at below gas So there, That And next pipeline complete the ballpark ramp year and XXX in supported we'll to to -- incremental probably couple take into like the XXs of the the move for really the as the and first the decision, capacity. and then right action down months prices, point is rig quarter starting of at now DUCs is into XXX fourth that we're has the hanging and by drilling plus economics early is last we'd

that the it supports So rig. and move like setup to the we decision

get drill You development, first the XX would like and this months down over not below saw we projects. what those year of three we

a So $X to stay oil look us rule that for of rough thumb we'd probably in just windows. would be the gas price,

is you, it. detail. Got Sean. That helpful Thank

Thanks, Charles. good Have day. a

we'll Capital Next, Schafer Markets. Donovan with Northland to go

line open. Your is

for my Thanks guys. Hey, questions. taking

I declines monthly the mean showed actually But kind in they drilling productivity well it's basins well. on was details improvements, everything, day per the and the I the gave so like the the there do year-over-year per efficiency specifics was -- largest a wonky of I I among you in Ford, way shale showing also cost. and great. report and of was actually morning, checked it efficiency improvements they and Eagle the for this calculations. of EIA's checked pumped even kind Eagle reductions in showed cost, the So August, these -- and productivity that new just and There stages number esoteric that Ford cost also of

in of you XX basin are know rigs the and guys based counts on kind the XX somewhere to operating that's two. in you And well a

Eagle kinds curious, not you seeing of maybe operational improvements that. that just delta of this I'm the to deviate improvements room Is Are kind you of or you the in hearing from plenty you're what obviously, acreage or So that in getting operators the seeing on maybe getting? also But to are are corroborates with is quality? a for ground? differences testament that coming more Ford guys from there's

for stimulation that you boils percent. other lot of per be But improvements delta get it volume per necessarily what about where kind volume mean would stimulation you're the talking of rig. a lastly, to operationally, if potential And volume, down doesn't kind explanation of day the production

have maybe that is operational into you as not moving case but is efficiency Are the really So where a as where isn't improving, spots good. the could good. you quite acreage

so But that decline. rig difference improvements. And explain on in the would of per and you seeing EIA these being these production guys are numbers efficiency year-over-year fantastic a operational volumes

you that, that speak great. if can to So just be would

a as areas the years. of not drilled fact, five active several several on in that, last had the the operators I over What them basins seeing Contrast years. is in is the well that drilling the Karnes the occurring. very at count more look of as believe we we're of pads overall on just they trough, probably core that occurring question. to And from three had believe drilling in you acquired we've Eagle that properties example, as the diminishing not is Ford's infill as number Yeah. were were properties, we core for appreciate basins, drillings the you're in of were SilverBow multiple the and where we've this to inventory in really that year, this the

it have as didn't dense drilling. So

So and acquisitions and just improvement we're that's felt but what enhance that that we significantly drilling practices, upon dated even were we've we type could a curves confident area we with seeing. completion curves, those based type and were inventory the acquiring we -- buying in really five-year made like

in hey, our through and densely as I different your question, we're some as of just areas acquired weren't the parts -- that I in So we've bit the think basin. and it's the of a little heavily other think as operators drilled basin

next And my helpful. pertains and question Okay, hedging. then that’s

heavier look gas in the hedging kind me volumes. gas because So It's much your gas be wrong, more because and year, philosophy the you right you I'm to I'm this and natural about trying But this if has move towards hedged where presently. your prices oil Ford historically, natural if of correct able we been I year. are on this volumes to move position sort Eagle oil the of end volumes. of hedge it, rigs of less, and were to now. a XX% a great kind have And current to position understand of XX% flexibility XX% focus to -- or of around, then you're being in myself orient to more That's as

natural And ourselves kind of so it that now ends historical fact up find XX% hedged being on we or a at incidental gas.

But commodities for where oil and kind and still you the content end way would as based as this kind think of that XXXX, so at is it's in the you cycles. half look where in rigs. differently your it of unfold with position of strategy be of XXXX, then pricing idea unfolds is going the where year, half approach to be it of we idea the your opportunistically actually are commodity kind or what year of either forward, you intact hedged, might portfolio to kind think of there your on about right based whatever volumes that do we looking Is kind hedges can way with volumes you entering your or on during hedged hedge anticipated 'XX gas through of the

Good Yeah. characterization.

just go probably look volumes held you that at expect growth As kind the year-over-year. which we continued don't range, you so -- off we'll of double-digit to, we if math. based year-over-year, can flat in upon we ‘XX But do flat and expect volumes

today some plus on close. of Slide we're of the pretty and but minus gas, or hedged. kind oil that's sit about there, out both And deck, corporate XX% XX we for percentages As laid

for budget As around we up get start the more into fourth XXXX, confidence our strip. get the quarter firming and

hedged year-end. And as typically, be find closer production year. we'll to wedge get our of more into current towards into of total we what as to XX% we production hedge close year-end, the coming we'll get budget We'll

going our continue strategy get you we and get the the been it into described And is of is prices you like, But into and and quarter have have product your year. for some has hedge to towards that as hedging certainty what quarter impacts we'll this more it. end we will it, So fourth at to look as get of as due plan of -- you flexibility plan not that to our to and least the another strategy. be adjust

Next, we'll go Brothers. to Tuohy Noel Parks with

Your line is open.

Good morning. Hi.

Noel. Hey. Good morning,

you Just about pretty bit guys basin are had of your confident sticking how service current just with point far pretty other a a vendors services curious, with? are inquiries from the pricing proactive them, couple basin on certainly point, of this you'll that we that And things. inbound lot or a you're satisfied where you're to at I seen getting behaving. get vendors variability I'm are environment, the just cost was thinking have of as the good to as

Steve I'll Yes, let take question. that

basis. with Again, coming firm by OpEx year-end. different got be to CapEx side. and CapEx now gains And vendors driven for a regional our offers, proposals being as also we've in XX% related Noel. on between from us unit side the into side. them of on this already and efficiencies both and seems many the OpEx own both process to looking the different the discount mentioned, more Yeah, and Like cost we're as well both we bank CapEx a X% year the for further in

terms in but of offerings people is and/or OpEx of a genre the terms less structure mix then kind same changes in more opportunities, of of costs much and terms different the how regional of pretty us side competitiveness, incentives. coming to And different perform local, in of in unit and

said, of So improvement for through looking we're continued the balance unit reductions cost year. all in the

how out Great. -- Terrific. relative of projects refresh a I to the sort memory prices, is looking of on wonder, the maybe touched of you my things existing and the weaker west status bit and capacity sort And the online with on could coming what of capacity? are you infrastructure

Yeah.

online in and of dry east of day of overall out ultimately Webb point. each kind existing Both numbers, ramp projects gas capacity a have gas Webb a think a numbers, Bcf macro that Just Bcf coming central at County up kind over takeaway of range compression. Two about will move day X.X projects incremental infrastructure. a startup that to could rough that

X.X. that into. year. The area at seeing dropped because range of X.X prices. as a the of why Bcf a to that X.X drilling stayed off not low has well really And kind that take capacity lot So capacity of produce throughout we're that's has from day But interruptible to of kind gas available as

December the So I of of you're and think were on, up. combination going as rigs pick of coming move one first the the out. activity contango likely year pipe in as to We in really new last gas well see curve to most drop both our gas

We'll throughout gas as start going. our $X back be and will DUCs the and suit ones up the to pipe first that I get in year. well again. followed there incentivize excess to that probably plus others it The down with drilling folks anticipate

X.X a gas Bcf halfway to day -- further take that, addition projects about at that's larger two in the to that's to going Dulce. I a Now get pipe Agua is about there mentioned

to of The way other on continued project three. to and We're the gets of in there. the two with two just with going go the feel fourth underway. three ready really on they’re quarter. contracted relying And the be it all strongly are all that communication companies projects both And those, are of

all me. lot. for a Thanks Great. That’s

Jay Next, to go Geoff Partners. Daniel we'll Energy with

Your open. line is

impacts number? to if wondering lower call deflation that's just to is XQ. Hey, question guys. I hidden Hurricane had of like there be is that what or expectations guess, a efficiency a in we significantly message, or about I I hunting just was about CapEx kind than further CapEx. And season fourth holiday It used I and like quarter going looks guess if

We're of our committed Yeah. prices dependent well We'll cash of as It's the towards a kind flow. combination of and year. we to of flow the have as the production efficiencies completions the cash get as for throttle end upon positive year. having scheduling

getting performance, still we on on the cycle ahead we year on year early as well deliver the guidance. in late well as in potentially completions, and wells hey, feel times So DUC like, optimize the full year can

XX% So bit the is what a just year as the year. later to some X% another of in mentioned, that upon be what going DUCing improvements of Steve based over overall drop the CapEx as we price to think well half second is little of

QX, third correct? the a Chalk new Okay. in rig? that then that's Not moving well Good. existing one rigs, Austin your lastly, And is of

to best-performing two Correct. in rig rigs. look Yeah. with to on now, the I'd Right rigs. best say test We’ll side. not contracts stay long-term for we’re the market continuing and pricing any rig continue to

continue we’ll two – well. is rigs the test the market So as plan. But to

Great. you. Thank

Yeah. Geoff. Thanks,

are And back additional any Wolverton have the those or time. this remarks. at call to I'll for the questions that closing now turn we Okay. all over Sean

in Appreciate Yeah. our we to quarter to I'll everyone that third close on look interest, SilverBow. you interest their by speaking call. again thanking for and forward

today's conference call. This concludes

disconnect. now may You