SilverBow Resources (SBOW) 2 May 242024 Q1 Earnings call transcript

Good day, and welcome to the SilverBow Resources First Quarter 2024 Earnings Conference Call. [Operator instructions] And finally, I would like to advise all participants that this call is being recorded. Thank you.I'd now like to welcome Jeff Magids, Vice President of Finance and Investor Relations, to begin the conference. Jeff, over to you.

Thanks, operator, and good morning, everyone. quarter call. first our to XXXX conference Welcome With our and CEO; the call Chris Sean Woolverton, today are Steve our me CFO. on Abundis, Adam, our COO; we'll presentation in that note the GAAP are make non-GAAP release. our a reconciled we certain may it new earnings to measures, Yesterday, website, this press posted we and measure financial refer references call.Please to to during closest to which their

on of to today are may this call statements, risks available documents over to our include get will control. the and also risks us our time beyond the to your and morning.With now which subject which reminder, with SEC, of turn These Sean. will during described limit many discussion our Our your more questions allow are which uncertainties, on that, one forward-looking more uncertainties file website.As are are I in in Q&A and fully one a please to question follow-up. This

morning, Good everyone.

As from our is start very SilverBow you can a in see off strong XXXX. to results,

flow results, primary of and First, prove call We plans, strategy this long-term today business for track liquids on cover profitable development.Our to operating creating our of we plan. rapidly effective will Early dry X our year, to the record year-to-date shareholders.Our optimized ahead diversified merits our our focus our maximize of strengthen on continue our which build are goal value topics: cash capitalizing portfolio gas free our on and XXXX balance reduce to and investments sheet. in was

X.XXx. estimate and full our are ratio flow is lowering target cash working. leverage plan Our we free raising Today, our year-end to year

leverage significant as target we of reach achievements our see next to some over capital delivering last across our sustainable. have sight More see which operational importantly, months, we of now gains line efficiency year.Second, the few we operations, continue to Xx

it's a one to this a in XX,XXX the stage about Ford, is apparent well, are and Finally, did our focus areas to capital.This for on are want there and owners. Q&A, Annual about distract recently from news are completed proposing points But very liquids governance value in changes it make not are at do final window we the how squarely undeveloped executing of effort that new likely your our and few contest. the we important good our and I portfolio.Listen, continue multiyear with margin the recognize and exposure the the our we our we high liquids portfolio, to of related today.Before assemble of adds remind the contiguous running to excited is Eagle last a acre the questions is we Meeting. strengthen to ongoing adding you our upcoming proxy I I and will our scale company no vote position of basin,

and with capital Let's hit results generated I across started continues in first to a finding this quarter covered look but exercise free are and lower quarter.We in discipline, capital pad recent from and expected due forecast, than our in and in safe cash to higher lower free to full cash were well as Today, with expectations margins. operating refrac planned, flow.Importantly, our capital more for even original the get in materials, will at $XX continued year productivity our and us strong production XXXX million All costs the are investments flow, the as beat pricing.We gains we briefly ways developments efficiencies We our our quarter. well for strong much creative primarily highlights. board outlook the seeing product team production This provided our of in the our and increased the while cash, than success has forecast. enhance confidence program. our

level Our production expectations and debt are shared we strong strengthening when debt. the $XXX just prior priority. our capital cash balance investments proof further is flow to unwavering, we This have sheet million faster acquisition, gains.As cycle our free have Said are with balance has months.Overall, continued top paydown commitment X represents Since and are rapid allowed sheet debt previously, South I unchanged. we the to in higher efficiency our This year a repayment. closing repaid for full way, for offsetting is times the acquisition. Texas have South following to we through capital absolute another XX% say in a recovered is ratio strengthening leverage our was that same it Texas

year the reach our than approximately X and performance. XXXX.Turning I operational would to Xx exit like attention our to leverage goal to expect less in are X.XXx highlight. our to We There at of achievements

larger In refrac completed across compared First, when have our we cluster for us into legacy summarizing horseshoe portfolio, base that slide The we drilled well way to optimal our drilling to asset our to by see standards.We program flexibility a than have with year's with refracs horseshoe use and the laterals. deck, drill enhance are initiated many XX% spacing refrac results. optimal enhance Key than upside advanced technology can value our wells, our shorter asset refrac costs less show our of than compared the nearly this across in as incremental drilled times has provide in and XX by we returns a opportunities known considerable ability wells months.We jobs potential to lateral more results oil cycle X were wells.Now quarter, had our reach feet reduced to additional to strong have proven initial refrac a and than this of in materially our some total in volumes in completions These time We moving we efficient less existing well tiger restimulating as place of less the capture payout XX% length our takeaways. maximize can resource. that first to have base that clearly Chalk. X,XXX we time XXX this well program wells of today's was productivity. providing wells our X across and we when while The capital D&C improved well a program. Austin prices.Next, and recently

have Slide about are identified show Please South We look horseshoe acquisition. acreage.Third, on have more just than our talk what recent on additional how where would to been let's far success a Texas previous operator. outperforming we unlock take at XX, value the XX we wells stranded some

In Chalk.Early late pad and decreased stacked our X Upper XX-well a the combined develop and team foot with a efficiency and have Austin this further expect previous short months, have just delivered clearly drilling operational to few costs, results per demonstrate Eagle capital cost completing quarter. Ford, Eagle are Lower and drilling horizons acquisitions, to gross enhancements to what the assets our are can initial better We excellence production on hands, Ford show here, we've asset. an in across and days bring SilverBow's

teams. latest this shift we gears to talk Through a about our build technical, portfolio.Our culminating business and of land encompassing Salle now X-year acquisitions the development value effort Eagle quality XX,XXX-acre specifically a have lack area our we and window Let's how counties completions. trade, durable subsurface contributions assembled rock a La series day land of recent Ford.Our and from transactions, as scale team creating its is a across position because strategy a targeted of accomplishment high is through contiguous modern McMullen and in in of a liquids the

zone. wells of the drilled legacy addition, of were In out many

your return last XX the develop an estimated months, rates productivity as portfolio.Before of we Importantly, over importance online far which pull we we upcoming area, wells with locations and X lever in in liquids in speak than XXX to the lateral powerful Meeting for expected exceeding a curve. our today's see greater go let results the diversified XXX% this me vote. have long I to type Annual believe delivered brought address themselves. to With area, firmly the Q&A, of our our

governance is are your requirements. asking Board, declassify super are create are majority of to to Furthermore, for in strategy interest vote shareholders.We adopt Our that eliminate we and standard we working. majority feel the value voting proposing a changes our vote

out. to welcome enviable the their the transaction dilutive Board proud few through closing, past team enough the their represents our for the January I white of card.In is years. Kimmeridge game would clearly last any make the of laid truth South you and through vote over highly track with extensive is with our engagement director an for review. A end chief as dialogue That's very am a record to qualified establishing weeks, to our our as sit encourage mistake, proxy transparency. diversity international But in with communications an fourth and demonstrated our strategy vote Texas and Texas. with natural with join material the is gas Vote strengthen you a shareholder, we've a Chevron. SilverBow facts. more Board and vote than a Kimmeridge governance to recently to ongoing out new Board for today. new to relentless time you and addition please and operator -- executing of Lee Gas.I and LNG a we in officer in with read is force safely appointed the We get on director as Lee Board We choice pursuit your enhancements reach Jourdan markets, to domestic trading, most refreshment.Recently, new skilled development educated multiple for materials our a XXXX.Through There take our the at continue over and Board. no on business excellent our X-plus X position We since

have with results. a built doing to value deliver provide allocate transactions in behind our have a history to capital flexibility smart and scale acquisitions.Our today significant strong of assets us through unlock and ability how We durability we demonstrated

We near-term inventory. are enhance not reliant our acquisitions to on

confident creating that than we significant equity and With outlook shareholders.Operator, getting we for we continue reporting for proven we are capital look to leverage value progress create close as cash business increased we we XXXX.Most importantly, our gap our focus structure flow, SilverBow's forward the are We value is in on ready to executing stronger. and a now less target Our strong plan all to value, expect see of questions. are achieve our to has on Xx that today. address free now in we to will our

Tim your to instructions] the KeyBanc. question [Operator from And line comes first of Rezvan

ops here. with stick I'll

that my So of did trade La kind question, up McMullen acreage. you and Salle the core first

for guide your you're was XX as there that to trade wells about maybe the understand for any this wells drilling with planned I'm year? not then how plans talked follow-up, year. this trade change a You elsewhere. those came Are impacted production to production the the for that XX drilling just additional trying year?And that

the Yes. appreciate Tim, excited I yes, about question. it. really we're And

this the guidance. the XXX tell of was rest of Mcf In doing is capital is our actually wells wells on brought into about about production entirety, its the those the in reallocating production, it then we tick trade was of locations.In of no that X you upward put capital divested was a responsible this great that some year. a parts This value. I of this you we is all terms the we X year, example drilled portfolio larger of can in year think acreage.I activity, for and plan it this other acquire we're area. to would on terms you take to from what there What to unlock wells XXX advantage are a the block of we last day really paid And and dollars excited we're have that X how

to projects. just to not more additive It it's of plan. gives optionality shift rate capital So return to the capital us higher

Okay.

wells those year? elsewhere So wells not there, this drilling you're

Correct.

you for Okay. I updates getting cusp on company Xx of you know balance a shrinking hedges to of would have -- high-yield is the there's line, moved more goal. thinking the out Then with for cash Chris the might We sheet, returns.I there. you're it further hedges. leverage And layering see thought And that The kind either look follow-up the the forward on market with that or trip some did. like to in are having -- options we about the down this there. kind potential of just

So finish to you do as on get deleveraging think line about closer initiatives? of how hedging kind the the you

essentially the and did some the it. We in like off and year, raised since incremental hedging hedged the committed time time start that that next a what Then quarter for a start gas, this And well. appreciate 'XX, debt as one sheet, during balance year, I optionality. the it's oil where year XX% layer spoke your be to in of layering we No, and the becomes the as we sure have to to year last then hedges, in book accelerated it XX We're us we've 'XX. strong opportunistic pretty closer everyone, Consistent hedged I'm for XXXX, for pretty Yes. be of this point, terms time we more hedge move XX% plan flexibility more hedges the of good some on for second of the the into we 'XX, much. in in with hedges the hedge at now, it to have clear. we'll a about program the above by conservative some past drilling and then giving typically, think putting half we to you more program.I we're we by at and oil. 'XX -- when not delever get we're at start on done point we're X/X to XX% think was paydown we'll as or towards is, -- as higher.I But we'll topping with

with One of our we it. to lien we amortization did structure the things have an is second

puts as a company good really the and size where lien starting high-yield we're our transactions at also the commodity with scale that that think to which it able cheaper will the Texas the the it And we public the last some did absolute acquisition, positioned position and market. debt us pay in RBL.But a of year, us debt the that essentially allows year from us with down a we're of explore market. a So South cost access second about to standpoint, balance to to move to in mix sheet throughout

market that go forward. we So and keeping it's hot is obviously, a close something that as on we're eye

last one If I could Okay. sneak one in.

on stout You over industry Shale massive refracs the is refracs you initial generally comments mixed comments some for the sort that hear gave be last to get blunt, years. the To then sort rate a been decline. of here. a you X XX the have of And from bag and

about these talk I What talked is You refracs? And XX-month you confidence that's all what you on that? And cost have. paybacks. for about gives can the

Yes. Thanks, Tim.

the talking XX X and cautious the perform go. has Ford probably operators out a exactly, has Devon, last X refracs Eagle of know the jumping watched large little XX historically Conoco had I in couple probably around X business, oftentimes, you'll been over the into of to a refracs. over refracs I've market number come in aggressive come been that very would a and in basin comment tell years. to Your refracs We of in ramp production the about the -- mentioning we've the program. them. or seen And of my generations right back years in years then down.I point, you and to see your

we've then our a confidence other those using long-term operators last from a days there -- have And is done hitting XX-plus got it we've is years in the and have a have lot cementing starting what I learned let on steady.One holding implement then make the the used of from mistake operators don't first is, they with it thus doing the things off. over couple have in we're X, that lift in, fall ours. Essentially, days that the fall we done. the going far we is operators we of got over similar production production many program techniques completion.Why the did terms artificial XX back are of liner of brand-new from So off. we fairly to capital And that start and well think they about that actually XX to sure make production right and

our question. So next we'll we're take lift.Operator, on very being proactive

of from the comes Your Meade next of Jonson question Charles line Rice.

we a designs. talked well bit assembling this to talk I Slide if back to this the X want go wonder and position, I you've quite about can but about

right, have in you graph a on the early productivity. uplift that's that I recognize huge days, but its So upper and

wells about targeting different is, of there approaches to zones talk the to these can respect So inside the graphing and even what either X question different you that are deltas with in you're design. completion a the or zone

controlled bet. together Yes. was large to then. that it, area back Yes, saw owned you time that that a we the operator.Just position frame. was as stating was a clarify XXXX, X a acquisitions, position were the the bit paid look position by we zone of a of trade time. The during And lateral was through by probably the the drilling of quite hasn't frame. for the put about the did smaller When last you we then This And is done do piece we're XX%. activity area operator probably that Part an And plus. probably for Pioneer saw other that wells inventory. then in in anywhere a on the XXXX much to trade.Historically, on perspective, XX% most XX% again, drilling, from from time zone nothing shorter in is backs drilled really our time, in

thing One part the acreage. of happen for standpoint, wells the to to keeping XX that and is on spacing originally proppant significant Many numbers what's and fall in them actually on bit the or pretty most that XXX we cluster wellbore the had these gets third look it So at is those completion intensities of and in spacing our of Slide the fourth X to of XX provide block high-quality and were X,XXX the a almost that's rock.From probably get we this big refracs year, the pounds we're that's can fracked. how a foot started less.So per in area. we've stage refrac had big into feet what doing of

to of we keyed in kind here. of kind it speaks So how

my there, then you Sean? And sorry, second were done -- I'm

I am, yes.

good. benefits of of one with Kimmeridge are there's E&P the obvious that outside and is Gas. with Okay, scale combination to -- financing that your proxy have on its My Yes. of that's what of at what potential the the you. increased increased things that the has There's is obvious Kimmeridge. second of look are to prospect SilverBow From right is lower more not eyes? now space worked this for investors in things kind Texas about you one what's fight of a attractive the that increased and continues work the a looking scale, the can there's benefits in, kind costs, that question you And scale. most side in seesaw number But the shareholders of other an -- makes and

we recognition to with our shareholders. on It was KTG. evaluated willingness their say I benefit is accelerate repeatedly years SilverBow I compelling bit. I would Board believers parties.And its And have In them.We're not of to comments, our I'd not kind appreciate underestimated advisers, over the legal the little was I'll the shareholders.So demonstrated best and that do listen going Board through we're with Kimmeridge deal of all fiduciary all with financial of shareholders. what's with, start is -- discussions say but we've we and a discussions asset No, of -- all our can basin. good proposed confident our any for enviable clear rapidly specific Maybe and that the Yes. a scale. of this X-plus our value discussions, entertain at after our discuss think mentioned they tell you, potential value a And base regularly -- discuss engaged basin, interest, maybe of in we've looking consolidating.We have we to interested for management's understands of value I'll duties basin I'm have time I'll shareholders. parties. on big with third combinations in with they to continue the agree in question. substantially best we're that our they're the any significantly this And path been you probably the and in deal analysis hey, and with aligned with I interest What what's our this simultaneously this my an

premium free a a I'll really and strategy, we in to deliver in rate deals free and shareholders. committed mentioned. through the balance companies clear earn we of ingredients is capital believers I say that this create that to to rewarding flow. terms we firm significant like say, valuation. we've transformed that the our are demonstrated boxes in just we time, flow demonstrated discipline to all like we've all of have strong to X We're balance have in and the nearly our scale last any Listen, opportunity. this sustainable executing same well what continue sheet merits think and have at than base you present have, having less market we're generation, ensure the we We our generate sheet.So value-adding reinvestment the capture value and to the cash we'll to The check think value guess, evaluate, to a combination.So And consolidation, and that free what loud said, we outlined to deliver our the of kind ability and key cycles. the And base scale maintain cash asset in work asset we quality, I'll for we asset the has. I that I paths would cash right And that all quarters, have flow feel short, order XX% I today any we

of Mariani line the from from ROTH comes Leo MKM. question next Your

hoping important about could just Obviously, gap. shares of sector of value the kind you in being on open to can to was scale to as that from maybe sort close the kind company close elaborate little apart critical plan in the try the consolidating its a kind and pivotal But spoke another entity, of just you to you and bit you're of sort consolidation. the the value of what do types do gap right of here? things the see with I

inventory Scale Yes. of over last interest appreciate scale. looking has that years And purchasers important into have They the a put of it demonstrated No, high-quality X of see a even you that it's in attracted locations, for are high that the a reason. Leo. now.So transactions are adding rate definitely for have as is for. to over We return deep company also feel like we've us are to that that have period obviously, and criteria level drilling done question, scale looking refracs well. investors a the that of rate But long us, to inventory and for new investors public run time. I want

think see paying over the X.Xx these is to wants was taken down levered scale. quarter. over company all a really of use say acquisitions.So the the market start years, record last do never primarily another low-cost And I debt showing our aggressively the the are we've we ingredient We I how showing EBITDA been debt think that to scale. demonstration I and debt, on in what we've is for.So at our where Quarter in of think we've it's now margins, when the X.Xx platform the to couple do investors we we're that, grown leveraged flow think go company we're low And cash now? that. very this that looking I I from disciplined rapidly. we're -- of capabilities leverage

Xx annual. we now a of debt million We're run have quarter, for at with to on quickly. the in $XXX the market. $XXX paying that We're get So -- track to down just rate no re-rating million

levers investors.And of think to equity of in conversion cost start pull our I our have us, should other Just capital. to front attract debt we of to

should scale the not -- that as at of think capital. that and last think at sheet the of think and get we upside the that our can people below company is investors peers a some at going balance cost cheaper shareholder we look the Xx we together. least, put And company, of we're looking return should the here. looking we I to to really ingredient at but then And be program.We start of see look the all forms

guess little out kind left the I on company quarters also about a that discuss of after And hoping are here the with detail this to confidence kind more of could and the Okay. production of to the bit the raise maybe I kind just Can the in to of maybe you just allowing was guidance year? you talk key X only year. quarter X things you raise guidance come

It's always base is be a the position right? in, to It's Yes. it's that well. something great performing

very that's a base. decline have team We we're active that ensuring minimizing the of the

is you tell hours XX% getting that's pumping it deck complete drill probably capital faster. the Slide -- meaning crushing where to looking the I'll the of XX XX% to program.And team And series at to we're that. just put I'll we of starts. in side.Our it now XX then it's demonstration So efficiencies, on a really completion XX completion great a is day. that we're reference is XX% a and And continue of maybe slides think we we a couple them. and But

So also it's But accelerated production of at more bring to lower wells on a efficiencies. those my comments, into I like frame in that the year. cost brings because time mentioned

private but So or say with.So historical block. deck had outperforming operator, We've throw XX,XXX-acre great a performance.So We're that see little that just how call well about we Oil XX great really performance, Extension. consolidate and put from from XX. Extension, our our in performance the -- Eastern think exceeded probably program And we'll us production, we other acquired we have shown XX from to positions well on brought got performance, shouldn't in Those Central we did we well we've the I wells there, the it way the to We wells can demonstrating those bit do have to gives block. allow it X operators we're base, operators. Conoco XX already on are refracs the expectations.In deal that going our was together just in and acquired this Teal, you in significantly work position on capital now we capital, more more us a are then capital exceeding refracs, and savings We We April we've Slide Eastern that efficiency, to the Sundance, performance. talked where the on base, a historical through from some That's point year. and it the capital area great that year. that We slides, Slide put couple outperforming show with of out the well of historical to that year that that we a brought have we're capital wells performance. slide block, there.

So rate. free capital do becomes quarter-over-quarter, continues say of save them though there're that team available. XX% will we'll remain the just we'll committed, capital And us to If more as reinvestment only a up. I'll

lot So of our we sight detail there, and it on line forecast. gives the a but of confidence view hopefully you how

current What's in poison on you're that spoke of of the make that or making thinking you're you to that in some of the pill that's terms And kind place? to the team's governance, then on here. just changes planning

some asset to destruction hopefully, through all trying got significant clarity have a is that's that, around. really on is it's We've The poison information value put the that to investors shareholders gives why force our been that out there, something on they pill shareholder an there.

Board shareholders, over asked out I close and has the, to wouldn't pill to years. last to a -- the of hopefully, the clarity probably our be in we is investor continue due activist keep heard around allowed So I'll do our Meeting.On pills -- been the front, what I'll there the for proxy that. best a entrenched we've exact from we'll saying do upcoming in the the is and we expire to fight It's well, management say, poison give of that it. quite place to will bit This Shareholder deal opposite. were continues with evaluate guess that poison couple lot why it's after the interest information always day that what's around question to something a this I've shareholders.It been

line we deal, the went finish a to activist they and place, investor, pill With that close. the almost didn't with in negotiated

think restricting deal. Board management a pill doing isn't proof I that's or So that the from

In fact, the a deal brought it to table.

So maybe with close that. I'll

Kevin line of from Partners. Pickering comes Energy next from question Your the MacCurdy

the at more production oil first it flattish quarter growth. kind looks year like then the significantly of after implies XQ is guide looking full growing Just guide, in the and

of curious into activity any the there on kind is the restrictions Just And trajectory? effect Chesapeake from activity to that acreage? how plays

on brought on, we through rig third pad well But on yes, part in maybe the came the XX walk February, you in I quarter, some the wells moved Kevin, it. asset. in me, it, think, We of a a of X quarter. the Chesapeake into first Brought the Jeff? early quarter. let rigs the of was onto XX

the as well So is second till X turn for XX bringing we're that for you might quarter. second quarter complete the tills as expect, pad.So for the lower we on quarter, anticipating

moving We're well that in low. So pad be XQ speak. XX and we the starting to will as frac

You laterals. think are These about that. long

have it efficiencies, exceed frac to and with out. kind frac XQ the pad over the with we're pull we're XXX there.So XQ now, late up again. XQ, all flattens and efficiencies, can, But low team probably in a expectations to will ramp going We on stages scheduled -- in we as will that maybe And the well of little that be bring XQ kind definitely of then bit. tills, but will right

year. rigs down the We the X will of drop in half to second

you see of we why we available. to those do want if have Leo, mentioned flatten have more I from it could that's only that question XQ we and kind is that lever the pull, we of if to out.The layer CapEx have becomes refracs some on So to we start and

And a on mean, the being there's M&A obviously but this other asset.Just shareholder around what M&A just of on able view you've and of touched kind you've lot valuation assets? you scale been to foresee of the kind on add and of the from the KTG instead do attention curious, KTG your your on you've views the transactions kind clear about of I pretty vote of done,

and X I years think to this, acquirer the probably or with aggressive been there. tell last any of basin done in the we've and maybe the target plenty deals won't speak everyone I you, most there's to couple over layer specific knows still Would do.

proposal the around those inventory plenty of like. Webb vocal we years. look our for or gas been We're compete world. So just criteria. in things think you very we haven't struggle, capital look down around have XXX amounts limited is of We've It It at opportunities. compete in there's in a the our and what basin, the drilling logic. doesn't It immediately.One diligent struggled deals to county I past as very X industrial consolidation must for that capital been the for KTG needs deepen to needs with

all drilling. KTG their may only of companies out. there the I fact, have be think pulled In Others one rigs down

accretive So to it inventory capital and has be has for have that to competes shareholders. to deal our

hey, for open type to that So we're investor be for we're to you seller. companies public open deals important of scale tell for.And what do we those be We're open are acquisitions. the is, a and consolidate. to recognize either or is And looking I'll a to buyer the looking

So I front one our it a great This other minds. has next Ford up Eagle think be basin in should of get in consolidated. that as basins the future

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

all Slide Or these much the rest Just The a from one for rate operational of you expecting? further to how quick run some want touch it I year, improvement of are here? metrics kind in on the, the a guess, I of XX. is plan of

hey, thinking question, efficient. get any can Good Paul. that, you keep I more

minute the On X, slots. completion we're trying down side, find to XX to

a where, getting fuel do smaller of where up going run hours We're design. hole. that design day, completion you fracking to you to all to efficient.And changed have haven't the have tell get tools I'll down stage when you engines and So can boy our terms in time more you in you're XX we back efficiency,

to fact, it. continuing In we're enhance

infrastructure be and oil, scale balance to infrastructures we've leveraging very to allows optimal some just efficiency inventory my to to be we scale for different gains opportunity proven having get we still right the pads. Ford. that drilling A I there's we that sheet, or add One on just So standpoint the the the think efficiencies generate think to go can we've always there on have. continue be We're where is larger them. it existing top completions, effective had there.And just on returns.So there being X capital have, wells to going the efficiency inventory, team a that surprises.Drilling, we're kind us from always we're Chalk area of that right could then thoughts. with us in Eagle significantly again now of but large range, to we the the of X some the we do is larger We pads back that probably could assets the already allocating that lot drilling acquired over and that top of in doing over Austin gas

has So some pads, have new you where pipes. and in put in and cycle back that don't time efficiencies to build go roads

at harder but grinding it. keep combination harder, we'll a maybe on getting of and So a of things. It's lot

we should spacing, is cluster a intensities, opportunity refrac And Understood. are rate the of economics basis? targets, well just decreased proppant expecting opportunity. expect by how similar about we works of well kind just in kind on a potential those quick or run XXX you follow-up that homogeneous how think best? of Should the versus one like plus what

how at consistent can performance. kind wells pretty risk prove percentage thus performance other if We'll question. we high done But far. seeing we're to we've We've great that operators of No, X put up. performed see on Obviously, looked to their Yes. a well-to-well. see from a

you risks XXX XX% going the talking when XX for. terms what's the Would -- paid big on back on in same more. really of pulling and -- Those into this but back acquisitions we're as all oil areas acquired. again.So as those of there.So tell excited is mechanical other when think good, assets. great keep in And going a The You wells refracs do wells, gas we've value what's far we they're I into in again XXX mainly these again XX%, our at they mechanical kind we've saying done on to the and range, need percentage to always performance. that looked And high design XX plus issues asset. about assets where more really unlock run inventory even into We've refracs well with on what look well tear in doing you were there the some will really around identified, you just yet one operators, seeing of Chesapeake onion do and that chunk it's our we've probably the thus and to is, are were you is assets. the than I

the [Operator Donovan line Northland Schafer comes instructions] And your question next from of of Capital.

admit, to a on crazy my Congratulations have pulling the feel quarter. I like going hair little I'm out. I here and

be, like, interest too out you the But shared journal if own seem you've log, chronicle shareholders So, particularly of and is a don't they -- dwell them kind to will. this I interactions for of their and much. want you, the having to all to my you on detailed good know, you Kimmeridge sincerely with view. you know a And a with rest But, don't that like respect stuff or XX% ownership.You with of had put beyond the own actors of that. dates

so that you to as, of a and know, court in put out if defamation evidence, part was something letter was prepared is know, lawsuit thing you would of included I all emails, that one at think my response the you it a back is that. publicly there you at provide was they whatever, a law come an issued to you and the and like, that and, filed as, that I like, of you forth. like impression of think SEC.So, type appendix, weren't haven't that And, point, not that or

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question comment. that appreciate So and

Okay. And then turning to scale.

I'm like, So or small, hit on or it's so first so rig sort running Like, pooh the perfect with can't and discounting you're I if scale so it where, relationship, is changes a then, basis point these keep threshold the even right? -- step not continuous that. appreciate linear poohing straight a line in do points inflection a downstream is you can it of, big to or so respect you not a But is where hitting that moving someday, there's, threshold like, company or, having a linear or thing. point.And step upstream not words, it. really this said your refinery justify then, continuous mean, or team's here big and maybe you validate I hypothetically, the completion we've changes, And but crushing something like. got, These own it's you know,

the your around uptick, by is other scale whatever the and Kimmeridge, something, next? crews you've XXx at you of with they there like a be keep anything one good you'd really like is sounds size them scale from this yes, like, that scale right it. difference? for keep is it in there's or to bigger acquired got that?Or just and ExxonMobil Does going and by to an that or XX% just be that squeeze things some unlocked size it things.And that would all so, corner yes, get would scale sort So basin like there like, missing these some and teams bargaining in genuinely benefit, busy, only, them the can increment there an to to a were benefit, is I'm thing if out make it of such But fantastic terms get if someone like you guys of you were know,

great question. No,

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So think about, to way you important. the got is scaling hey, you do

million locations. what have You to we've and for sheet. of want destructive we you're look commodity drill don't balance -- a to that waiting It's deals sheet $X to proposed prices.That's We don't wanting paying are there X, $X won't are bring is just years and million million location a balance people do got or the some location you higher that $X to got that our $X deals to for as some to million the X, out people are a about -- at for that. for protect X been to you pay wells loved really pay

for you reduce paid when we never scale. is And think to imperative we've just has it So locations, costs. margins and improve which

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think to big cheerleaders scale as move play the role continue and Ford. open we to scaling SilverBow an We And we in be will that active in of forward. Eagle

notion Okay. And the more just question in. squeeze the or a then of of if It's can one valuation of I around sort idea gap as point focus.

"closing mean, was, comes for could are the largest can of merger point acquisition Kodiak The out Bakken. focus just think or markets way of mind. sort in I Kodiak control.And, and you the can't there and that evaluation us we've this the valued, unquote, of So far so a that thing. say, be quote, tell, that the with all hey, as and things are a optics. past of you gap" I I've the are be as on could -- call, as we the lot public the cases turned seen wrong focusing I producer done control something to the where on, Whiting things can Maybe in with stocks seen they to

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totally think trajectory. on I that on SilverBow is cusp. We're a

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we And so want Ford, Eagle attention really it. the on

it. Some now Donovan. of combinations Any we're anyway, if we to what to a great. right probably make even pure-play route.So is do go will drawing your Ford, That's further I questions, bigger we doing what attention all appreciate chose that that Eagle

There are further questions at this no time.

back I'd to over like So the call to Sean. hand

for Thank Gavin the Hopefully, call interest my we sharing I you'll to out look to you.And I and information that a it. available. this questions in everyone's momentum a more you'd us ]. we and great from quarter have company. you you, company [ any ton had take really said always if reach of forward that we're Appreciate appreciate address. comments, away Please the like have with in like

Thank for does you today. conference for our conclude That participating.

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