Murphy Oil (MUR) 3 May 232023 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Murphy Oil Corp.

First Quarter 2023 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Kelly Whitley, Vice President, Investor Relations and Communications. Please go ahead.

Joel. you, Thank and first everyone, for us joining Good earnings thank call our quarter today. on morning, you

Joining me and today Officer; is Vice Roger Jenkins, President Operations. Tom and Hambly, Executive President Officer; of along and Mireles, Vice Financial President Chief Eric Executive with Chief Executive

the exclude we numbers, today. webcast to refer are interest section call, on production Relations and Gulf have Throughout the financial of adjusted our to Please our along website with placed in the Investor reserves amounts of non-controlling as informational slides you follow Mexico. today's

in statements, please considered that Cautionary in Reform comments the made as XXXX. statements this keep the be mind will of some Securities Litigation Act of call Private defined during forward-looking

or factors projections variety that attained. A As that to exist be the that such, no assurances occur be will of can cause given differ. actual may results will these events

see discussions any takes XX-K the file of with risk further publicly For or XXXX to factors, Form on Annual on statements. duty update Murphy Report SEC. Murphy's no forward-looking revise

I Roger. will over to call turn the now

Kelly. Good morning, On listening today. shareholders. call continues to you, X, proposition thanks and Murphy value our deliver slide to to for our a everyone, strong Thank

our weighted backlog sustainable that significant excellence over X,XXX and oil company. execution ongoing will remain Our onshore across ensure will long-term locations offshore we a

three at expiration this is a process rather with has an with success our also on operate we're carbon progress portfolio well Gulf Mormont continual year. advantage – program of focus as in Offshore in a the project competitive reinforced Murphy We emissions significant safely improvement Samurai ongoing operated in of intensity. Mexico. our success fields recent Khaleesi

XXXX double dividend flow. significantly generate able We've to debt. to from more strong our than well been long-term reduce We as cash long-standing as continue

delever, and debt our Mexico, recognition our framework. of execute BB+ debt $XXX years especially as XXXX, Global. reduction explore, along with Slide we our capital credit goal Gulf on focused of past allocation recently our The reduction our outlook advance a we Murphy with execute, of return, rating S&P X.X to the million remain from achieving we priorities a success, two execution to the great for On received X, we as efforts stable over in upgrade

online. Our strong uptime production end upper our first [ph] volumes well efforts We maintaining well the to to exceeding barrels guidance. on Murphy's and XXX.X per led onshore performance executed of and day quarter quarter, program online our expectations equivalent X In is team M of wells the of able brought month. Samurai the Mexico, planned is we've the been produced well with the in obtained XX our past above operated Gulf well this

in also facility with I'm celebrated Quay. one that significant achieving gross pleased first year cumulative year the million at equivalent. was more the production a first the recently than XX on oil to milestone King’s that of say barrels anniversary Murphy

On today Longclaw the of awaiting this expiration well year. later the success at the two additional front, we wells disclosed we're expiration results and

We Mexico with the sale. expiration Federal also to six from added blocks of recent our portfolio Gulf

we've month, our dividend since As on target share $X.XX our rate maintaining returns at the which noticed or basis, last continue XXXX. annualized Murphy to support per through announced $XX.X we we highest shareholders quarterly an

since of to a guidance stronger assets which XX% day all the since our quarter oil production XXXX. exceeding consisted growth [ph] of of day, for per of oil our quarter XXX.X highest X, first of represents first equivalent level per the Slide first On performance across due M quarter well barrels XXXX, production XX,XXX

NGL Montney, above barrels in produced we X,XXX guidance barrels Mexico, of with the impact equivalent for $XX thousand our price barrel the above per Gulf due $X.XX in X,XXX gas We quarter. a of realized a a feet per was realized cubic and rates. barrel our We per nearly positive royalty of Montney to the a near X,XXX along Tupper $XX day equivalent for lower for barrels had Tupper guidance, as as equivalent day that oil. us day In well

call an sustainability turn efforts. CFO, update to Tom to going financials over and for our Mireles the on our Tom? now I'm

Slide Thank first $X.XX totaled you, Roger. quarter share. per diluted income Good or including morning, X, adjustments, income per million million or adjusted $X.XX net everyone. diluted $XXX our net share, $XXX after-tax was

made strong Our including quarter. $XXX continued million, operations of contingent reflects of consideration operational from also success which $XXX cash payments non-controlling interest in our generates million the

for of which program the of the additions, capital the financing being remaining $XX to quarter statement. section we flow cash consideration million, property first activity million had of net weighted quarter. negative The first adjusted payments contingent flow reflected heavily of a accounting forecasted $XX After is our cash reflection our in

consideration two statements. quarter acquisitions These our as related payments in Mexico last were XXXX first reflected XXXX sharing in in revenue and to exceeded. and financial structured contingent Gulf were were once thresholds made The contingent payments payments of were the sharing certain as revenue

these was one-year in payment related million anniversary to $XX of on fulfills final of Quay, the Murphy’s made King’s at transactions. oil obligations first Our all April which

operational from million Consistent that a focused excellence on level of XXXX. recently remain debt of our $XXX stable BB+ of and received to Global, for our outlook consisting reduction $XXX our with reflecting in credit Slide reduction. than our debt Murphy with maintained liquidity and we billion, priorities, commitment goal to upgrade We million cash rating of high and our achieving credit million facility S&P a $X.X $XXX X. quarter a equivalents. I’m the more first pleased

Slide X.

our As of key are we part delivering on excellence, operational sustainability initiatives.

techniques. through emissions is Our a operations of team successfully variety reducing

diesel with For recovery units example, operations vapor replacing completion effective more natural in our and drilling and installing we facilities. onshore our gas in are

enhancing of improvement completions. ago. recycling and our have approximately from total first volume significant quarter years are XX% water frac in our four This we recycled Additionally, a onshore represents XXXX

by named the Partnership Most XXXX Trustworthy have second Parents Greater well efforts for was Place Companies recently Murphy for XXXX, recognized, in as Newsweek’s Houston a Our Working been to consecutive year. Best as America

Executive call discuss our to Eric, the I’ll Vice to over Operations of asset President that, our success. With turn

day barrels production Thank wells morning, included equivalent which Slide Karnes, planned of Ford oil refracs. quarter everyone. liquids. as operated in XX,XXX and two you, Tom, brought Murphy’s good with XX per We successful first X. XX% online averaged Eagle Shale

Additionally, across seven we the and acreage. quarter our had Tilden in wells online come Catarina non-op gross

For quarter, operated the second in online we and wells, non-op two eight bring Tilden wells plan Catarina operated wells to plus Tilden. nine

of a than refrac the development. achieved Over increase has our pleased a new the wells couple program with wells past production. production few at delivered conjunction wells in Karnes our rates higher years, I’m XXXX that post XX-time included delivered and refrac initial

our lower demonstrates foot Shale seen in design, chart cubic performance, enhanced our improvement per Eagle completion Ford which average Karnes XXX-day on see can previous you As the we’ve highlighted our reflecting we’ve quarters. with

produced million cubic the quarter Murphy day Montney, and Tupper the In first feet brought five wells XX. in $XXX per planned. online Slide as

diversification quarter our in a are three second contracts. price We forward price with portion Our well of continues wells. delivery planned for volumes that sales with program maintain strategy a the not protected fixed

were in first sold Chicago, at per volumes AECO approximately for the XXXX, No Ventura, US$X.XX the cubic volumes our and XX% we Malin, of thousand quarter. For to feet. quarter pricing prices an exposed Dawn average

for price this management strategy, was overall X% which the of As the feet above approximately risk we thousand first gas a cubic of US$X.XX realized quarter, an AECO per a result received average.

assets in and oil production across well its quarter, of produced per Murphy the seen online the barrels Samurai XX% have X we Late day Canada. in oil equivalent and expectations. with offshore of XX. Slide Gulf Mexico brought the exceeding XX,XXX

the cumulative and first equivalent We note the at of gross anniversary first have significant accomplishment million recently XX in oil than production achieving celebrated are King’s year. oil barrels excited to Quay the of more one-year of

record We uptime. equivalent also we per of production recently and to average continue oil had gross level XXX,XXX of another barrels XX% day,

Nova Newfoundland partner and and back year on work commissioning maintains end. to at continues at Murphy view in Terra that maintenance online it’ll operating Our the be activities

back it I to that, with And will Roger. turn

evaluating pleased drilling X.X% oil after Thank the today Quay will to finished you, well XX, we’re Murphy a and of pay to facility. and interest a discovery our are This Longclaw exploration recently. to Gulf feet XX Mexico. we carry tieback Longclaw On just of have XXX held We casing. well working XX% Eric. just found Canyon while net Green received results operator drill King’s in here be announce at Murphy’s in the well that a Slide

So hold after interest in election, well. XX.X% will working we our this

well As indication quarter and in permits no intends previously one been Atwater pressure disclosed, Valley year Mexico. Murphy exploration in received. this necessary of managed temporary have results in is required XXX We equipment third the and resume number to Gulf of suspended once drilling drilling the on the this Oso drilling that potential the highlight Murphy well

barrels two located XXX. days Chinook in cost continues of Our year estimate We We from this resource operated of this this mean program and Chinook well this a spud million potential just Mexico which operated well anticipate with X, we upwards Gulf XXX Ridge of $XX Walker net is the Murphy tie is our third ago, to XX cascade well million nearby gross exploration equivalent Murphy. to successful. intend our to FPSO. We into well to

on turn production. and we As XX to capital Slide

morning, $X.XXX in disclosed earlier CapEx this million As billion. release guidance our maintaining news we’re of to $XXX range our XXXX

production production this reaffirm XX% year equivalent range growth XXXX which XX% from total Overall, full to is oil per also X% XXX,XXX year day, full XXXX of a our We XXX,XXX achieves barrels oil. and growth.

day production range approximately of we to For oil with liquid barrels and forecast the per XX% volumes. quarter, estimated XXX,XXX second XX% equivalent an XXX,XXX

forecast CapEx $XXX Our for accrued will be the million. quarter

time allocation announced Slide a while rather with returns to a beyond We for through Murphy Murphy repurchase additional based million target a On Board our along capital maintain is debt – framework has of no initial quarterly variety billion. share methods long-term XXXX. multi-tier shares limit. dividend, shareholder a allows of $X program XXX advancing toward in XX that broad a repurchase authorized

today, any authorization. we executed under have As of repurchases that not

$XX this averaging flow We program. $XXX debt XXXX operating an On exploration $XXX a capital And to our execute, also our equivalents of XXX,XXX plan year, average this With a annual XX, to reinvested on delever, rate through price. per combined with amount targeted million oil and an annually will explore, continued XX% average near-term day, growth XXXX, of based is supporting approximately forecast per maintain strategy production X% million while waiting representing through oil year. reduce of our disciplined that per Slide barrel cash XX% assuming by we’ve return.

of we’ll part maintained enhancing cash this buybacks increases equivalent of framework. in excess return execute barrels we continue shareholders to is offshore in per our will that and period. XXX,XXX to capital be As dividend day an our share average of flow at as out of production XX,XXX laid through plan plan, utilize Overall, payouts

see of forecast average per XXXX barrels We investment status. sustainable at in term XX% oil production maintaining and waiting. Murphy equivalent we annual grade XXX,XXX Longer XXXX, targeting and business approximately day

operating returning our this shareholder have of flow, XX% at low flow cash and and free capital our well remain will generated we’ll fund cash plan from as investment in as rate fund further reinvestment high ongoing to allocation our enhance opportunities. Additionally, ample reductions debt returns framework

On on plan. framework to for priorities, Slide XX forward X.X Murphy XXXX, the remainder Murphy allocation of strategic execute our well positioned capital is looking

Gulf execution to Mexico is way supported performance our business. onshore strong well continues Our business sustainable and great and the lead multi-decade with by

two forward have results look and wells key also additional We exploration to investors. those to year this with our reviewing drill

In great like our number. their the as with successfully every efforts. thank very to work closing, quarter I’d this across hard executed for And Board we we’ve their employees plans on beat our

over will I you. for their the Thank questions. to everyone Now, turn call

first the now Your question-and-answer Thank go with comes gentlemen, ahead. session. from question [Operator Arun you. Ladies begin Instructions] and Please Jayaram will JPMorgan. we

Good morning, Roger.

Good from hear you. to morning, Good Arun.

the was a Yes, in wondering as you the program give from well. Gulf XXXX little Mexico. bit was I could yes, us hear wondering, more good if you on details to I of Roger,

you to You could highlighted recent as you Chinook of the some Mexico? lease in a number returned just perhaps added plan discuss X the the of of inventory Gulf also Oso, sale drilling and the through as well

had lease in a drilling thanks ago third for well, to six even very week we days Yes, Oso, had sale. this finished well, question which or Longclaw the just We just be returning that. five ago, or that we’ll We up success. all a about as not well, good finished quarter.

also comment plan that was a a new with of Oso. that activity able and set around we were Oso lease very well area. our on have a the competitive We of quite and it especially were a our area in and we had sale. to successful of inventory, sale shot that area team lease successful being some around we in big success all additional would was also data active that there around have House a up especially we to lot region, need. good in one, from had there. There’s that Oso nice execute were equipment area Delta I Delta so We the that We competition, near sale a blocks, House really lot where and and lease but active

well development The planning field, opportunities. this Fault undrilled that for very now Eric asset Chinook an Eric that had significant on in sits JV years things well Arun spud well our a backlog have that with We highly is well. to purchased cost our here. partners that. update real we excited Chinook been Petrobras some Cascade, A FPSO and and is with in involving books, uptime. ago. a for field work structure that well long with have FPSO do we of you have our Block This address time. comes with we’ve that successful other and from rather It had very us real and near a a I’ll about wants yesterday [indiscernible] incredible our out

Okay. Roger. Thanks,

of we highlighted call, projects. less we on XXX breakeven have with projects As of we working total have running that offshore come number in over seven as to of barrel that $XX with of quarter, fields And quite million been a several our of resource highlighted of years next room have WTI. a the five some acquired barrels perform our including last years up will over XX than the nice projects with last recently and we our have last a quarterly

our we’re about as pretty development excited Roger well exploration that highlighted. opportunities opportunities as the So

Arun, flow just much well later and probably end year. we drilling But be at with year activity of this really a right completing will on ongoing well, the bringing Dalmatian the and the hopefully but can’t Marmalard

the in early XXXX. flow Should

us your can you plans And to expect you you that give operated give and could I end. us non-op by highlighted update and an at at in year see plans the project what Roger, Canada Nova? two update wells think Terra wanted the on you on you’re from hearing if Great. on and an Hibernia, operator I start

year It project I part better field will to but more that at it’s of with we them flow would work and we normally today. flow it’s but handle feel and Hibernia going it open-ended simple. does this, with not planned. us timing reviewed we couple We that a wells to at project end we if it great our time significant be provide can end. to that’s near volume rather quite and believe let and Eric them engage have ahead a year is hopeful for a on there and not, our type than all the an investors status And believe dialogue.

Terra this I Nova will about say frame we Terra talk as commentary noted about your well in morning, the discussed and you Nova.

that’s larger This Terra return, We Nova of X% flow come have working billion we project at This have a incredible free now interest project have cash a government billion project. free This deal. too made cash is will at incredible flow and primarily funded almost interest, online. an itself. will high $X Hibernia working a made $X.X of only to

significant these and flow fields we’re lot Coast positioned there successful cash So long-term us are to of well Canada. free make in for East a

Great, lot. a thanks

you. Thank

from comes question next go Neal Please ahead. Truist. Dingmann with Your

successful my could I’m Roger, other very Thanks first that guess talk adding would you’ve positive some opportunities got for like offshore, working got you asking? and you’ve year at question seeing working Good two? maybe I’m the would years time. things morning, the I obviously interest on just just was those just wondering interesting other some just balance I’m things all. about wondering, even you and wondering Arun been offshore. accretive on also how wondering how other Quay, within on what you’ve of King’s exploration. balance, going additional interests you I’m kind or last

our the of efforts the longstanding it in real and inventory significant and of our and to ways inventory question, good Eric’s offshore today, purchase wells a same running XX about very Gulf interest another I with Eagle offshore real Mexico. of I in for backlog asking them. There’ll disclosed having don’t modest as to keep – and where be a executing quite off we our too, continue just we’re really working rates our and to pulling really maintaining we’re next and Arun, capital Ford at between successful in our have onshore this like the growth be projects multiple and and the year that framework my We have to Slide job allocation a done and on ago plans few going that Gulf on well, We executing along frankly, long-term to have That’s and it’ll with that and but the CapEx be oil like of have thank together that long-term proud wells successful and return minutes hot plan our sustain make in the you inventory got and slide framework, success year. our not and that a be be commentary. are We it that onshore. just range this these picking both great happy choosing assets and want we our

looks or just I are believe Great point. the Tom, flow And adding on basis, your debt to reducing cash of then you net cash Roger, a gross just really sheet. on targets a debt free on instead maybe for second allocation. so balance

talked minimum past, for wanting $XXX or maybe of, a million about remember, don’t M&A discoveries. in know you’ve I about so cash I balance And so in the

recent on reduction debt to foregoing got wondering, two this do would sort going what’s just see and I with X.X, price, what discovery. all of going quarters that cash given Murphy your how favor wondering, you’ve plan one a forward? prices you build or consider I’m of you just announced I’m know So and

it, to is going target. really focus long-term on getting that are we The debt way we’re thinking Neal, about to

our debt. to focus cash So stick right priority and free the adjusted is framework flow. We’ll that now any on reducing to

in our financials, we of saw you loaded our kind As capital. front are with here

probably have. we’ll that with of of it’s see in adjusted flow the starting second more cash any to the we So reduce year activity half free debt

Pretty good. Thanks, Tom.

I of be to to color to think pointed Neal, bit add have I a out. little that, needs

flow cash look went statement you the at about of cash payments. our the amount today, contingent yes, our If same down

into successful sharing, which received. a M&A, So we was paying we’re payments contingent very about there talking revenue which

The also, have other out. and is out paid at this M&A out. all paid including been acquisition more – Delta been House paid completely months been out least has paid

So and had have neutral. loaded cash contingent we out if would’ve payments without have severely we and front paid assets a capital flow

think for us to very have. second the we really positive and that up I us that’s this sets on in framework half execute

That’s point. Roger. a Thanks, great

hear from to Thank you. you, Neal. Good

Your Paul Scotiabank. next Please comes question from with go Cheng ahead.

Hi.

Good morning, Paul.

you How Good morning guys. are doing?

good. Doing

of that question. the number one, the contingency going in quick A to cash payment first up flow show when April Maybe is statement. administrative just

seeing from flow activities cash operation? the You or are yes, in financing the

sorry, I’m Paul.

payments is it’ll the it additional million. already of where paid You We’ve flow as I’m XX cash contingent it, been release not operating Tom? in have an Well, – mean I we this paid. would assume. month. our disclosed be There’s one payment already

So operating. also be split bit a it’ll little between

to M&A Paul. in original our operating deal the the due split be between accounting It’ll of setup financing, that’s

Okay,

that. that. after – that’s all for stuff is Paul, This of But over

understand. I No,

because more think just that will investor I number saying CFFO We [ph] typically. the be looking that at closely the are

in forward? of XXX,XXX, line? it’s sustaining one is that the to that financing range, So to XXXX you whether barrels day XXX,XXX XX activity imposed CapEx in or going get going a kind know be their requirement we be to what’s million once to Second Roger want there going

side disclosed I the XXXX, that the expectation that the in believe similar my on to The it Paul. I’ve XXX slide Paul, XXXX for are that, in that the XXX period Megan, turn of we anticipate that be it’s left please. is in slide. level, XXX, in – hand to level

have for fixed strategy will strategy then majority how’s we U.S. now for spot forward? going different exposure And one I long-term then essentially your them contract to be the marketing is the final the the under and on mean and longer-term, money the so assume that no a why that Okay. party should of rest that me in you

give I’m going color let please. on you to Eric Paul, that,

Okay, Paul.

you our we noted, XXXX We in through number Tupper to place of a forward fixed sales have XXXX – to put as Montney related project.

by would we additional to as probably feet some we sure – growing. multi-year those the capacity cash that increase cubic we per the level the free expect plants the to slightly and In a there while program day, get which you So asset, XXX place order allocation to support of of of by higher full, put in second know, generate capital of a forward XXXX. million adding had plants activity we’ve asset make half sales we flow that from to fixed our we

we’ve decade If fixed you a XXXX. sales get going look now, something that’ll to forward so, we’ve we long markets in diverse that unlikely various are feature able by into Malin, Dawn. Chicago, where U.S. and program diversification likely to over That’s that, proven in beyond prices like beyond our Ventura, been sales like enhanced are or a strategy to time maintain very put quite place but XXXX, a likely we

U.S. also we’re LNG. projects by then online coming be that that of for in or kind looking the come opportunistically value Gulf in Coast And additional creation might of driven to Canada to the needs participate gas into LNG any

of we’ll strategy flows. of free So evaluate a all maximizes have our sort that and those diverse cash

will that, to sell on or sign going you long-term contracts in decided basis really be month-to-month a which to? terms of to that market curious is you’re Just going

deal. of combination the a different other transportation that markets outcome, in kinds to diverse find arrangements differential can those that of with AECO we What best I are based from there, locking a contracts on if expect is best would Paul, and

Okay. Thank you.

ahead. Your next Please question Goldman from comes Neil go Mehta Sachs. with

Neil. morning, Good

Thanks. Yes.

standpoint. lot good quarter of time spent from a talk on Roger. here about morning, but… it’s to execution about you talking XXXX, Congrats and an XXXX, know early good So I a

real… Yes,

heads I would there I but community head production. Yes, want investment as real – recognize relates you as early. some an moving pieces that around as to our it get imagine are us that, to

just should would any and be asset – you can at great. we XXXX on how an guidance So and provide thoughts level early

you, thank that for Well, Neil, question.

even questions to Our just Memorial on Neil, finished gauge Day, try not holidays Easter I long range plan here. is

So next for to today this bit page similar time, averaging year. I here, would that – this $XXX less as plan we year our have CapEx an We’d shown CapEx was our to have here in hope we at means that little that in keep deck than that have around year. we million and that you this – what a

at We to at you offshore. have backlog do will, lot point when We the some of want place Longclaw. backlog, do the That of today if a do that. of of of success our take will we have

next online I similar year Dalmatian it’s and year, production, backlog have so we’ll this wells year oil say I’d higher a all be year overall Marmalard similar And our a to assume would production, with and of to with production higher because higher new production. it’ll next year, higher this

indulging And thanks cost Roger a lot it – talk the then then has offshore follow-up for inflation. there. about been of that And

hopefully offshore early of U.S. still signs, We’re pressure. a deflationary it’s land, seeing a in forces some lot but upward

you mitigating when inflationary and the seeing about talk how it are any to it you shoots comes you're can pressures? green So

about to you speak Yes, I'm thanks to preparing Eric this Neil. morning. that We've let been and going

advantage offshore how year, of XXXX rig the happy really sort and Neil, this we're into for up our cost is rate and driver big thanks. with Okay, we're set for we're XXXX. for really

the way program XXX,XXX rig have day. the around The all a locked of drillship. rate So we so day XXXX for for part of pricing half through the have our end offshore XXXX, XXXX, in what rate, right a which about below a now, first of market we XXX,XXX is is the which of in, around effectively rest we and in program, locked significantly XXXX, market at

us. inflationary that and something the could we're for pretty happy of So main should with be that component that, be

We locked that. through have with Really XXXX. it early in happy

guys. you. stuff, Good Thank

Thank you, it. Neil. Appreciate

ahead. Rice. next Meade comes Your question Charles with Johnson from go Please

Charles. morning, Good

Good question Karnes morning. morning, Roger a to I wanted refrac. Good ask these about you.

design the to intriguing higher – it coordinates So But than the initial thinking, completion. than really and if add was on And profile original of – these the IPs few completion you And I'm wonder the more intensity more whether me profile. you versus initial XXXX. a completion maybe had I decline to the what's or in I that you're original guess could planning that, the doing what how the decline versus that. look

got it. Thank him I'm let it up about you going this with you, plan. Charles. Eric's tell to came

Ford foot profit. up that We've our Charles. the are which And less identified Thanks, refracs. good per across Okay. XXX that wells wells at of Eagle for Shale looked was position, way came were pounds candidates initially to we be think likely we we with with fractured X,XXX than

of X,XXX bit they foot, that completion to look per quite compare our a X,XXX current pounds understimulated. design you to If

activity last with been refrac three our associated focused the Over new in has development. years, Karnes and

as think those wells. our old we that we we're production refracs. into we wells the call our new uplift nice refrac plan getting helping area So from improve today, performance recovery also, highlighted reserve of And on go wells, and we we an new where which that's and

ago. XX They're from seven pretty years initial The they maybe We're peak. That's go XX exciting. an decline day eight up dissimilar that production IPXX, barrels to seeing a those or rates initially. online, to when barrels to wells of came X,XXX is profile more that's first from from day not not a a

of hole. looking What current that's frac, a We're a excited. those skinnier We're a inventory little that standalone bit on kind to but of a mode, do what for So we trying might give XXX something like refracs. new it run we're We at. not well That's do we've Hope had us. we're been you there. opportunity it. address in wells well, good perf in that evaluating looks our is with that background really to become helps program currently little what success like and we great a just a go X-inch casing. And

of back originally facility. a sec it's question on and And lot guess was that day. you, I And – great I designed MBOE more That's King’s my Roger played I the think went as Eric. is, name my follow-up the about looked detail. Quay Thank a like XXX and

this And XX% that that disclosed north over something so are today. guys you you with rate of

of – that's some perhaps that to should And are time. back seem we could of ceiling me you on you case. expect kind kind against facility reversion guys expect do. I But capacity going what up elaborate over that perhaps wonder of not would what the should we It forward? could if plate So that. you're to the knocking name

Charles, It's you, difficult, big difficult of than for going a to that greatest feel we that question. for one in very It's today. history headline be the company had to us, produce run for more us. Thank home asking

Our equipment's max. the running at

purchased Let's also through we another Gulf COVID it that field in has similar in there's very It's House. into a this project mind keep fields that that, called flow facility the when executed Delta we and this operate. that project multiple

keep here field's going that's over on to area. from about going be and happy And over but every levels we team been take field XX% from day. is that, also also has mind that XXXX, to able And things does was Samurai to are. probably this going able we're do production and very And we the well, that we have We're for bigger as we're into I to us. that probably our be operate additional, when nameplate. not see learn to and Samurai where do nameplate well field plateau and some go that Samurai that to that in and gets better finding well. a doing it's to in working interest

So production out production that, of make can't big that's than eight but ball lot run a much probably home more of wells.

So thanks noting it. really proud that. we're of And for

Thank you for the detail, Roger.

It Charles, broke up, sorry. I'm

that No, me. thank saying just that detail. for was That's for it

wow. thought You detail, Charles. I'd said – wanted you more say,

Another time.

Another time.

calling Appreciate you in.

from next Please Leo Your Mariani Roth comes go with question ahead. MKM.

calling Thanks in. Leo. morning, Good for

bit the was here more I hoping morning. around little to Good Yes. the color get in program exploration Gulf. a

It’s guess, got which announced you XX as a still but enormous you’re you not feet, same point. Just on pay, at but net at metric, guess, know it. I this that’s well, doesn’t the guys of time, longclaw the said only it evaluating seem I discovery, the I

confirm, a lot of like given close a discovery require probably sounds subsea fact it definitely to is trying capital. won’t just Just this it’s in a that tieback

well, then is the in on five can profile just little of kind of get risk in exploration kind bit is. this. color This expectation. one in drill time of type a Chinook well wanted what a this thing well see true we And more terms on the if to And the of on terms rough

great. be would that on color any Just

place. No, size issue we that manifolds talking issue for well we million to the we discovery, tieback is flow we’re XX it’s say barrel that it. of the Gulf When in the on this here a not It’s anticipate well one in – of successful well. pipes from office question, say, I’d interest absolutely. to anticipate on and it, producing XX discovery, platforms increasing well about but million into Thanks yard you’re working aXX with most working to my the Leo. our that is

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about about for us thank real it So you it. and happy asking

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debt add all to portion or Tom up be let returns, buyback soon to going as a I’m we we which advanced set reduction. the our buyback but color, has with framework

are due I’ll at and – buyback plan the that. end all no oil to not give up with Leo. Fed information let some Paul can I’ll – And pullback Tom today, to that prices all let and I’ll but this let sorry, if I’m more you there’s lower, we on with So less to all due debt

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get on. nice of in the then hurricanes, just cadence in kind XQ of of about volumes, going XQ. maybe your quarter appreciate rest XQ to Do thinking a Gulf with that us as But in there. guidance of guys wells level it, second you little and ramp you’ve the And the more of of then much sort of a to you production just flat Mexico obviously And down helpful. nice that’s terms year, kind likely help the of kind onshore, Okay, see of with kind the volumes you’re on got can the detail imagine here very here, kind I kind then we way of the out coming see high bit you just here? in of in are benefit ramp

on kind help the of big third cadence pieces production here. moving fourth any got just in quarter, Just and quarter

a hurricane the some higher in lineup, a second quarter to and at update little do the coming we have a equipment big the Mexico, in a then Gulf King’s And we turnaround here for look of the up there. than few less today days our to for a under end our big third of actually is quarter you the still to second if guidance bit need Well, a shut downtime Quay while quarter, in making year. of though,

XX now XX more second – guided little in in a XX, quarter, say, in the get maybe we’ve Leo. the higher, the close in I’d quarter XX there, little third, to here to So right XX fourth trying to probably possibly a it’s

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the third, production quarter. the onshore a quarter, fourth fourth a little dissimilar rate quarter and little in growth from in with more quarters a third So more total growth that aren’t second from offshore

you. helpful guys. Okay. very It’s Thank

it. Appreciate Take care.

go comes Please question with Cheng next Scotiabank. Your ahead. from Paul

guys. Hey

Paul. Good morning,

XXX just in wells, well when want Eric, talking about included the those refrac X,XXX are opportunities, not current Ford, Yes, clarify. Eagle the you that’s your to in right?

included are addition wells That’s Ford not correct. under remaining of that producing. inventory already to They’re X,XXX Those that. are wells Eagle to be our

are [indiscernible] quite be for be take will in you mean is, there there. All to right, you small we’ll have plan this about XX% operator. that operator, mean, game only some for just a to that operatorship have any or I that unusual able Is inches why the curious boost to arrangement the long is there thank you. And just you I I’m curious the you haul which interest that Roger, and percentage the like with someone

you, Paul. Thank

real we’re can when real You operate XX%, you’re real, good, Paul, things good. at real, and

you us going our to the prospect working how purchased opportunity. next Samurai term to well to of my which if right my commentary, the we’re was the in this we several the long kind cased, being when And They our that’s and had interest came Khaleesi, the a that Mormont This owned to So at in – we in our known partners field commentary, had significant do. post door, of in goes. that field was participate that ability notice an we discovery well. in script increase

ability we as XX.X%. company our an to This respects up an prospect this team So really well built is have that to go this operator. –

up going owned of probably. middle ever most We on in also this – the valuable that we’ve work have a our field

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efficiently, So and expenses due then And it of operating to our operate safely and the as working even ability facility. the operate field, interest the the see at smaller working we we wanted to interest. operating to a control lower field skill an increase our

they win So it’s the the and working a everybody across great we a relationship with operator Paul. farm execute partners us, these the interest are and and a us wins good board as a at and today, low see for partners well

you. Thank right. All

you. Thank

back no over our the questions further like Jenkins There Roger lines. to are not closing I phone call remarks. turn from to would any for

and the how and and Appreciate analysts appreciate and Take was talking support that questions quarter doing we’ll from back And be well today. commentary our proud Appreciate today. key really It we’re very to we’re we’re here all everyone another executing that and dialing in very good you care. forth our today. soon. of running business

concludes call participating lines. your today. gentlemen, you and ask conference this and your thank for disconnect Ladies We that for you