Continental Resources Inc (CLR) 30 Apr 192019 Q1 Earnings call transcript

Good day ladies and gentlemen and welcome to Q1, 2019 Continental Resources Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, today's conference may be recorded. I would now like to introduce your host for today's conference Mr. of President Vice Sabino, Investor Relations. Rory Mr. may you now begin. Sabino,

morning you to for Thank you you, us. thank Good [ph]. call. like Sharee joining and I today's earnings to welcome would

from Marketing; President, of will later and Jeff Harold Tony Longson, the these Vice Oil Director Officer; and Exploration; additional We Bent, will Steve Actual Stark, John on materially be differ Officer. and guidance. that Strategic Hume, will Senior contained Pat Baskett, Vice Adam Chief President; & call Senior Research. for available information Commodity the concerning today's Vice with call statements Jack Hamm, and Today's call and Growth results Chief forward-looking Owen, start to Initiatives; may Barrett, Chairman President, refer Drilling; Vice Land; those statements. Vice President, Please of Executive contain Financial Also Chairman Company's from and assumptions Gas Rangel, in statements Ramiro Hart, Vice President, filings projections, remarks for Marketing; SEC Q&A President, Senior forward-looking Josh address risks.

this addition, initial we are not Continental obligation Also any update will statements initial test unless XX-hour In maximum made new call. this refer undertake forward-looking to wells, for production on stated levels to which does morning, otherwise rates.

gas. based We will natural also per $XX on are WTI unless of barrel $X return, stated reference Mcf rates otherwise and per which

will refer call, certain Finally, we on financial the to non-GAAP measures.

Jack posting to to website John, measures has Prior third-party morning. like begin websites to address posted to updated that our the hosting a service www.clr.com. a to been from corporate prepared would this an Accepted remarks I refer please Company's the investor reconciliation Generally erroneous web Harold, the For of from Accounting and these Principles, on presentation at

The events soon in our XXXX this third-party made as our scheduled to our of in it unrelated will section you error. see normally as Continental As I service being to Resources corporate And absolutely posting resulting the morning. XX, the third-party some host correction Continental This was an been. if I at update in look events. wrong abundantly a scheduled Day kind Analyst beyond no corporate deck was business releases. the has for Analyst is hosting for or web corporate Soup company listed With Company's Day the This There prior quarterly their event may Company, any addressed issue Hamm. Harold? clear. plan call corporate we were have to Campbell any you database removed, placing June to Soup human of aware of to after that, the error posted hosting corporate make seen Mr. over the you it web this website. want events other inadvertently slide or Campbell turn will of

for everyone. morning Good us Thanks our call today. on joining

our future. proven executions best underscored broad embrace our our We're success This the by Continental Over we year assets these in has has cost. saw has rich positioned the those U.S. actions well Company quarter resources as and fulfilling teams mover low all a two the large which shale best-in-class operating developing benefiting breakout be across once by shift the decades, portion team's of envisioned the strategic been development unit past formula, in these to for larger our again strong to project with XXXX We the very oil inventory. from the is first has become which our captured results. areas, high-quality equally within first XXXX

almost double year sustainable, flow growth cash for our positive to vision first and the oil-weighted of initiated year again have We five production.

returns. also We corporate remain on focused firmly strong

X Slide deck, average compete on our of see E&P all corporate the and of industries. can against nearly the you returns our doubled industries investor As

latest production quarter area, ahead days and SpringBoard approximately team being of that the completion applied the another on three the details been and quarter oil provide our strategic and with about first high play X% forging domains uplift day. to of a averaging get per we of more step-up day growth and by of XX than significant and better tremendous for well The you our is forecast technological XX,XXX the of Jack oil with North April BOE see XX,XXX as execution production a nation's quarter. Slide geologic cost-efficient industry Bakken grew watched first XXXX, the is the Bakken over events exceptional the X, closely quality will example optimization can success. to in per tests confirm confirm results In across play, what detailed on own These of On SpringBoard performance barrels these of call. the During in Bakken these we continues Montana. our later we've leading Dakota saying three legacy separate areas it leaders of in

upon planned improved us later that size and materialized differentials faster teams mix. our Next, drill the our pipeline, efficiency reaching Bakken. takeaway Oklahoma a by for achieve completion technical year. and intent activity region, reducing of is at unheard added the reporting days, the This teams two for oil-weighted further BOE. on are cost and stream costs cycle day. the our in low In Continental from and to LOE delivered capacity we're rig lowering even in company as a produced of for best-in-class these times low almost excellence Oil definition drilling Recall, limits have option Continental per current giving production of company continue of crews every a production $X.XX our drilling,

teams' value is Public schedule Brent light our in continue Prior equity ready WTI our being of the domestic as carry crude capture highlight believe success we schedule. return, to strong would more the unique shareholder as minerals, deliver pricing I a look on strategies. like to execution. updates benefit Additionally, to to value dollar narrowed which potential further to minerals the our We markets drill the which and of between to recognize infrastructure relationship, international creation pipeline believe we underscoring under approach of has spread the We may existing continue forward to long-term the sweet providing acquiring vehicle is market. mineral enhancing is concluding, multibillion this ahead market for Company. for

is team with not million to you returns there industry will management realized All conclusion, but broader to market. achievements simple, no that that that with only other of This is Slide been growth success part the universe, net cost, if XXX deliver you these the quarter. see formula XX, inventory coupled is, who of have our In formula a sustainable shareholders. oil-weighted a to also the last the and for turn successful across powerful of earnings and align is cash equal compete positive E&P across The leading at market. flow Continental the allow

turn to Jack I'll call detail. further Stark over for Now, the

Harold, our and good morning everyone. want call. you, us for Thank I on you to thank joining

oil. day quarter XX We initial Our impressive of with BOE average was and up per of uploaded XX% Bakken another production wells another an production rate the assets an completed XX% X,XXX year-over-year. delivered outstanding

wells XXXX, and the to in multi-zone XXX results optimized units have a optimized As of development been outstanding. our have you XX utilizing have a in unit Since we total simulation separate been development know completed moved early the Bakken, technology.

rate the multi-zone quarter the return with deliver top realized on unit are units And of fact, delivering are of highlighted in is broad to development development In as program in assets here The first projected paid units XXX outstanding are. key a of our cross-section shown red. of in are out One, entire top of average an our Wells being well the two, results advertised. X performing the XXX%. XXXX. Slide of takeaways units XX location acreage. approximately results Bakken The across XX performing these

Now, of as wells announced performance extent from in southern yesterday. step way uplift three all big news Harold Dakota acreage for strategically Montana. to out the continues optimized placed the completion out three from Bakken into These our quarter prove the our wells this the result well the is technology North mentioned,

BOE just was XX% initial location Dakota, are days The to the the of performance say rates was as the these the In value initial was wells rate and is during Federal X. per Slide be we North wells X,XXX it, XXXX and flowed Billings of and up BOE three XXX% got great outperforming legacy day the of nearby per XXX% by day XX can County, the like can The delivering these inventory call on these approximately the news McClintock on at preliminary many Southern are This as day three that wells In an located continues Baird per and return. also East show XXXX at XX Burian the Montana, flowed initial X,XXX an Bakken Dakota, BOE flowed wells our of can expected, seen XX% Bakken say of of confidently estimates North rate XX% oil. rate County, first and Central As that at for grow. wells of of to shareholders our We core bigger. Williams oil. in oil. to

in more share. we move to let's have South Now, results great Oklahoma where

approximately first of the significantly ahead of targeting barrels net XX,XXX barrels by XX day SCOOP is of shy for per As Only had begun had in averaged running mentioned, growth per Production -- production day. our Harold X,XXX oil SpringBoard quarter. XX,XXX has the project the of schedule. third barrels we days been oil April of

to tied day well improvements the lead oil higher production current our This Our in cycle time is third quarter. reach SpringBoard likely directly a is outperformance show that performance. XX,XXX projections time barrels to in

our curve The XX% announced unit for since six the the averaged unit. to wheels wells with largest first for Woodford and This current excellent. plans well million SpringBoard legacy day XX these X.X per highlighted our per are quarter completion the today's oil. BOE tight Woodford validates been Slide to from expected was and results reflects oil on Early the per X,XXX time, develop we BOE per have This window. completions uplift simulations production Woodford Woodford of and performance outperforming X X the

development Our Springer SpringBoard proceeding scheduled. in is as

XX Springer drilled wells II have the and underway. work III for is XX completion We Rose planned and of

better three brought rigs whole, by XX X wells no been I in but say next to have call, the wells. at There's rigs II slightly from for Cycle have achieved and three three currently the X-mile Projects gains wells feet other wells cubic us producers, We and project wells days. expect or first oil have a our million and that at condensate have of down for X recount want are The proof of wells or or units, STACK. outperforming curve producing, realized completing Meramec we rate rates units the average to day, million rates year over-pressured These in quarter. X,XXX the included Rose X,XXX have objectives impressive unit, consisted wells to our in is well. initial we allowing gas of Tolbert SpringBoard back the efficiency have and day early which from flows couple of two a of improvements, three developed and a we Lugene and oil as over-pressured look from three Simba per of XX our last that falling type just of Lugene previous of unit can started with This teams day an that. and well. our per flowed X-well upper drilling day, the we condensate oil in on the BOE X,XXX Boden window reinforced two by unit III ahead. in day, Meramec BOE development time barrels window SpringBoard XXXX solid. mile wells Windows. earnings our combined I day, fully the outperforming unit barrels of XX The wells lower results our of The assets. out fewer STACK, XX% per our during achieve to gas over-pressured our per for of In Like feet In rate SCOOP the outstanding rigs. X-mile per the finished cubic per window, oil XX the are wells on strong combined XX per point curve X, Meramec. parent-type per Tolbert unit

feet oil addition barrels completed unit per of an lateral well development first our million activity, our X,XXX the Blondie In gas BOE X,XXX of STACK X-mile and Meramec X.X to we initial rate cubic day a in X-X-X-XXXHM. called flowed recently or The at day day.

in what worth to think I driving results it's we results. noting deliver As is these continue repeatable STACK, strong

driven geology. Our by primarily successes have

our underlying quality said, shows XX, we've in sickest in To the and wells the over-pressured As XX from some located day or best XX-day slide. XXXX initial an Slide highlighted and of always wells Continental STACK this of more public acreage on by records. things based on window BOE illustrate, map. completed rate evident are on all the at average that reservoir Meramec produced is STACK. Meramec January to-date per red X,XXX in are Two

that is the performing over-pressured high the are vast in the First majority of window. found wells

correlation superior position acreage performance is the Second between is Continental's the and evident.

ago. geologic well and in right unit well proper zip code, that and a is established while In development being performance we addition to to the critical density also quite

our experiencing cycle continue well addition performance operating STACK, and In excellent times efficiencies cost. and in both reduce SCOOP to to we're

Woodford mentioned with a cost one. $XXX,XXX operating and wells come With efficiencies down the Total have drilling our times in lowest that, XX% Springer keeps further, and for our These our down year. flexibility original from I drilling foot This Springer, but allocation nearly producer of celebrating it provides our from costs. for oil hard I in are In over As costs. turn our their XXXX peers. our and times our cycle teams this lateral Continental will XX% to almost dramatically STACK, cycle turn come completed capital production down SpringBoard, Springer get down before, per SpringBoard have per added capital row for developments well costs well John weighted rigs, thank budgeted this the into John. are and I'll work ingenuity growth. among of materially want reducing pace to that cost almost

first We're Jack. execution. of quarter with reflecting great to off the in a you, our XXXX strength Thank results start team's

night, was significantly improved earning solidly last released in differentials. strong by beat driven our we As oil part consensus, focused production oil

in came over per the fourth X% production for XXX,XXX quarter XXXX. BOE barrels XXX,XXX quarter production First at day. up Oil than was approximately per quarter more day,

As we coming first guns. lower in the per barrel XXXX the corporate of improvements improved in seen at a predicted oil $X.XX last quarter, have quarter, our much to towards differential we end our

Our current the is production remain throughout differential for quarter. expectation oil strong rentals into to second in and

impacted $X.XX by and Our for the gas quarter, differentials conditions. average came February an first in market negative at January negatively

with We improved of significant $X.XX. year currently gas guidance. We March expect improvement have be much differentials subsequently within full seen at to a negative

amongst weighted In represented investor and cost In first as differentials, than addition to remained all best the strong production industry, our and X guidance our oil quarter, or with we very the our our of better slides best X both structure return continues cost oil on in Continental of to be of in him deck. below measures, and cash an and BOE expense G&A high assets. very expense production came our range of and guidance total production cost the per per $X.XX low BOE. consistently among G&A generated with in by $X.XX oil-weighted margins is

measures. these pleased our are guidance against We performance with

through the continue well appropriate. assess year, guidance performing will of guidance. to the exceptionally as and balance update results our we As we versus will we Obviously, we proceed are

well first efficient costs on quarter CapEx, seen budget. the number same gains spud in versus to teams in rates Regarding very and wells as quarter during Jack at while mentioned, improvement a production cycle as budgeted X and lower an These the wells are our wells rapid XXXX our count. increasing of X we drilling of and efficiency both in the than we we our incremental higher were CapEx rig able return a in times completion result static first level. at that and Therefore, and have net an performing improve complete time net had our to able additional are drill original came and crew with first originally completions

Our current the the billion X.X capital plan unchanged for is targeting budget year.

mineral of XXX success our are of we level that recognize higher were XXX flow flow in XXX covered. is in the about do acquisitions first at we cash quarter efficiencies $XX budgeted million. cash $X and oil a the change We WTI of price operational above million spend product $XX, free as well and projecting I in that prices Our for Recall in is just every year. At the guidance. provided which to free

the quarter We for through and of in prices, free a are X the oil toward year tracking billion are now with of flow XXXX. rise we cash

XXXX will or below of objectives commodity level prices. enable while debt easily our additional flow to we can committed cash to the of make meeting all use are higher guidance. sustained, of on We and billion flow assuming later corporate for X building of prices our be and year. towards of will strongly us cash X.X other in billion reduction use accelerate performing budget cash our cash current We net these this free proper adjust timing, determination the are our to to flow. debt incremental well incremental prioritized be reducing a year reduction within If debt will this Any the

As going our mineral of well in venture acquisitions with pace our is mentioned earlier, new Franco-Nevada.

and first the acquisitions of closed hitting based we Recall XX% on XX of Franco-Nevada performance the targets. During acquisition million. split that quarter, covers we revenues the cost mineral

position low-cost XX% The as we near acquiring acceleration areas expect we As high-quality we summary confident remain XX-XX strong expect returns, corporate we in develop With improvements SpringBoard term, operations recent call our it in a year-over-year minimal to In of with benefits in own in XXXX our leasehold growth underlying to time flow to to question-and-answer royalties revenue the mineral session back strong SpringBoard. are begin operator the oil we production exceptionally prices. of to XX% asset, take favorably deliver split. you and we're ready alongside approximately your portfolio, for in questions. cash outlook morning. our crude Thank production we’ll turn by XX% this that, and the to oil benefited CLR's free

Instructions] with you. Thank [Operator Bank Our comes Doug first Leggate from of America. question

I toward guess got trending on a that haven't think John to of the may. the multiple clearly chosen guidance to I've I talking your if although you, you lower, are this first goals The free cash, change costs because yet. for I theses question question

running as pace course are year the your it's of better through and differentials of the ahead well. obviously of looks like Your running development schedule

interpret and of committed kind together to wanted debt But you’re that to the free but that clearly, all $X.X you’ve to was just done to maximizing I reducing not changing and cash if you're to capital irrespective I your comment great of pull going far remain then you've flexibility got things billion a should this lot year? that? So last budget you chose so the flow. stay, Because

comfortable we’re at. We’re where

months data adjust guidance, as see don’t We we’re year. four as a We’ll referenced to well into doing that you and We’re extremely that. reason of year. on any the today. go the budget throughout the CapEx we on lot update continue monitor And to

I to said, going well we’re strong exceptionally with doing We’re deliver and results doing, that. like

to because but this you’re schedule, obviously, point, you’re running early ahead of year. level you in the John, Sorry, on with more spending

So, upward that? think stay Did if about just within develop you because going because obviously you’re Or would things be much down should I you���re X.X what see your pressured or you because stay so within spending how mean, slow more. mean that would you -- continue we not to down capital? to gains of to efficiency to you slow as

we can year. level certainly moderate think our the of activity I throughout

Of wouldn’t the year. We got term interest contracts. We in and much. also be term of rig just up we’ve rest of year, where XX% lot we're them a projects. consistent the we have today that this of different Even over expire don’t throughout projecting have contracts, at the working

adjust. large a not it’s us stretch So, to for

And today. we’re very comfortable so, where I at we’re think

Jack, My sure in while follow-up one. the hopefully, interpreted just Jack, on inventory correctly. the is drilling, I'm the the for the I quick a not Bakken comment backlog,

heavily this previously Or acreage what another risk none But the non-core you And guess areas was leave your or already see is to forward perspective? the at, core? are clearly risk that what ask how included I’ll Thanks. that bringing wells X,XXX way -- how locations? now? was enters assuming could in second-tier step-out before? acreage I you going was you, it you Was do Your expanding there.

that include portfolio but that to did these we've question, and our part what’s still has as our locations talked Good saw here the Doug, We completions, and develop, It these been being of our about ultimately are of happened uplifted stands. of optimized X,XXX significantly. a areas. result inventory value already

so, just And exceeded that -- here there our a on -- slide Page operating to optimized just you'll it of XX the demonstrate process is if through matter continued very days. we’re field. going across And all constant methodical that in the a XXX,XXX standard, that at X value our well, that first you notice growing a way a as the the barrel look exceeded pattern just wells have is

we’re And under so, potential whole the the the to now been the this is has unleash a field. phenomenon that’s we’re Bakken historically, happened zone, -- true play. of actually simulating starting properly just that the stimulated. This really across And

you. Thank

next Venker Morgan Stanley. Our with comes from question Drew

Good SpringBoard it volume more really Bakken seems ramps lot just would pace strong you in even as some the anticipated? talk like up progressing you morning really everyone. of you momentum weather. I I guess and the sort light have Could than in see how harsh a of of had about quarter Really,

that's question. good Drew, a

that's we've deal the yes, working live, long Our what time. where very guys teams that's been working, they up -- with. these All

so, -- that, better companies, And and it they to weather than handled get it's very we've done situation due the most so well.

as seeing out production go -- that increased coming forward, quarter. of first we are We

that's So going deal second come you've SpringBoard and add particularly and in to second see half half, to production quarter second that the production we'll here. great on. a And referenced additional certainly

third -- quarter, a XX,XXX We're you we've to on year, bit also. Slide SpringBoard expecting gives or in got the an number of I update we're on this X so. be a mean, instead that XXXX showing slide of

that. are we uplifting So,

improvement the sequential And that's year. much there know, and it's growth production all. some very focused in showing you again, throughout as We're indicated. on seeing all You're

about So, we feel at. very we're good where

details. the for Thanks Understood.

Bakken As you area wells can and a testing year? follow-up step-out be what how program, on plan many you later to this the talk about

we done this. have Drew,

If we a far far as basically, you've Page on we as map as well as drilled West noticed on -- could. X, and we as our well South we've could

areas pretty feel that good we respond. the in are to between So, going

And as evidence do better so this the seen it right technology as any are and and But to know I we we play. the much well. possible pushing we've our quickly extreme North just for you continue we'll performance all here these further step-outs is the wells can't that the that as northerly are demonstrate uplifting basically across West and to to now what and here ask shown And teams legacy as attempt think across pretty just play. delivering expected, that than as you really was that optimized we're with and using all these performing performed outperforming a South

we forward watched has as evolution Drew, we've three improvement look the occurred And, work and really with over compensation. technology to this past years this

going to it certainly end back those So areas apply is and the see areas to some this legacy on. these fun of of how turns latest

So, exciting. it's very really

step-out authorized you the approach process for in areas of the is similar rest your completion plan? the as the And to

and design, in basically more -- area talking areas. than I we're basically obviously, vary Yes, historically Drew, and are in we’re used but what these -- profit cluster closer stages -- but the mean, spacing out about we've per for they they is

it it very in these pleased same couldn't each effectively applying the really got. outcome with model, it's areas. be the had So, we have more of And

you. Thank

from comes Arun question with next Jayaram Morgan. Our JP

oil I to about John, you wanted your bit year talk full a to guide.

and of the just you that maybe a we Can XXX at the SpringBoard. you to that give project volumes highlighted April arrange quarter, wide? for production below feel oil XQ about you've in This corporate XXX midpoint think range hit or us

No, we get continuing that's the exact show mid have summer, out back again. as year I project flatter me, into up we timing. are to to front in than part fall, the of numbers of maybe latter here growth in and early little And the don't it starts the turn a just but

a large but that turning little in flatter February pads up these I with talked back large about the then think these We're on, a so bit we nicely. about number coming on here, units little probably call.

similar question And on CapEx.

think move project spend? in bit down give highlighted XQ, CapEx and us trend a of bit perhaps how up move without your to and I you little time into last would kind XQ QX. down QX, I you've mineral quarter more a on Can believe little in thoughts on color CapEx

nicely I there. other. That down coming the quarter you're without we is quarter and minerals probably think quarter, relatively second, nice did third you from consistent pretty second to those first see job third, of what fourth each spend, $XXX relative down below both million. Obviously with

that because XX% but good the mineral on is carry a pass-through I of of So, think this, the we've that's know you built a very spend and yet I relationship. key our think

spending final my with from you steps we are where in it question to to just the extract still And comfortable for $XXX year? reimbursement of minerals? value the the this is, without Are of, kind million

well we're million, that. $XXX on very the On doing

we if that -- all you're use if that think we what you're what of me? go do. Is we asking I asking

Exactly, exactly.

we round last some we the went If move and to have the, a targets, that both about in our choose per year, is look partner with within adjusted program. year you ability the to but XXX type we if

development it in out year, 'XX, backed opportunity it's So our economic the net plans. literally and in of the fourth could as last do amounts last driven. it's year, we know, in that. that And of well you for back in instance, quarter carried an theology And, there we the some we some as from opportunity in all

partner at. make chose So, if need Right in good conjunction now, we're to. we're to can where we be, our adjustments with we

with I pleased at very add, we're now, might too. we're where right

Yes. Yes.

here. job Nice Thanks.

well is. for as as That's going parties. both it keep We great

you. Thank

comes question John next Global. Aschenbeck from with Our Seaport

the for first should a just wondering spending general think we earlier one, from just call. on I the my of throughout about had So year? question the remainder was the in progression kind I how a of follow-up to capital

Adam. think I the was Yes, question last

third Second, and fourth excluding right below the it's lowest XXX with down and year. quarter of even be minerals there, they're from both from is minerals, million that. down now quarter the And with the first quarter we should below the

So, we're shape. good in

got it, got Okay, it.

for key for our I the think budget plan X.X the billion year is, as the retaining year. the

great Okay, clarification the appreciated there.

to the my in on how that if industry as just what industry I'd historically to thoughts company late likely and and to been so current if has just view any know I get the consolidation Continental consolidator, topic your grown role And your just thoughts think on obviously been industry with follow-up of opposed considerably dominant exploration through especially be a as has you love M&A? for you M&A as is the general that's Continental's environment of

Well, of has do last unusual we've say company exploration have an quarter, is to with of bolt-ons done grown within through this that have interest of certainly might we there that always this that acquisitions. strategic amount several been we and consistently of interest and areas I operate. those us just we it and where all

some sector, think across we've undervalued. And certainly, correction there's talking the a with I recently. E&P are I'm realization about just that the of sector, that seen companies

seen opportunities we've and few strategic recently. So continue come that those at anyway, we of looking around

Thank you.

Our comes from Barclays. with Jeanine question next Wai

getting to talked constructive. prices follow past, free following cash wanted the earlier CapEx So early the stay perhaps assuming just you've that year. the an about and I budget Doug's question in the In of on on use activity flow, oil up on

any example, target below within cash closer shift based kind wondering, you the balance just a X.X this I and delicate know that reduce flow, free billion check now any of so given progressing of in there's a price? at of just can prioritizing with on going awaiting where I can between additional in you free getting activity low because versus any So differently flow kind more versus kind E&P return this? year thinking I growth? on debt kind net to extra are cash capital you about you target. conversation longer a adding or on defend are a callable model no dividend there's the narrative debt know what's debt dividend of to for that down get billion once of But wanted to oil debt So on X likely to to think your go are you And

that would to with to that we choose investors. Obviously the there, narrative dividends Company the an hadn't open out if we opportunity certainly with door there Sure, appreciate a go in Jeanine. is participated

very So, we but that is we with that about be debt. at you point get will talked there down closely, that out and know want to we the do to looking

could And you XXXX. so, that to know we accelerate

or over lower lower, my you noticed said expect we this script added Yes, may time. have it. was I the billion Yes, X in

to forward, and eventually down saying target I'm year, get not that Our all go as billion to like $X.X that. we would we it’s necessarily this but

get debt not down laid level putting growth than for reductions, unless with much growth a up great we’re base not that of chasing very flow to lower remaining we’ve we’ve there, the lot this We’re of a setting cash we’re value, eventually those year the get up, all billion years number the not those anything, to with asset of with the we just will $X things. of through target. you I think well, outlying for way got got, but lot chasing dividends, out down And options

So things all can add to that those are value. of options

question. last until allocated of million remind us that production you $XXX was up then more year’s year? believe how year. about for of we this question, can well budget if And And next budget my year’s I its I of this follow CapEx as for had wondering was is it's allocated that didn’t a produce just much CapEx housekeeping

for a The component that X.X-something. So is. production is it little Of bit about $XXX doesn’t is until not million D&C budget this it’s the of total have that, as over bad XXXX. billion, $X.X about year first

So on D&C with the capital we’re $X.X billion. production level budget spending of in current year it's this about that year’s

be I towards So working numbers pretty they're think maintenance capital may you low.

very to we’re So a in plans. shape good on deliver our

Thank you.

question Whitfield from Stifel. next comes Our Derrick with

behind was you three lateral in Meramec What the mile XXXX? stack. genesis over the the more and planning are Shifting to

and entire was is a we preliminary well did a from very And well develop that. about they've and do turned stranded quarter times. very And And do could it But this lateral. a that same we wonderful -- single was know teams for great very of beyond there, The we go payout place out job. ought throughout the so it to we'll It's our in and the decided efficiently, stranded this able we team long the just we that we had operating right the reporting very, the felt was section we're produced because to we genesis that been well and exceptional certainly thought it and thought it. a good everybody could. like

the And up spacing bell the at the in pre-drill your the if well SpringBoard, type the regarding update relative you Woodford project you and of room the update follow us Could legacy this curve. perhaps exceeded X.X little to million looks for remind of positive expectations? has just productivity my Woodford

these per here on we’ve typically. looking in there. compared unit And as said our early six in as And performance We are on you what used five in come very to done technology to is wells at here of strong. stimulation wells legacy our the come latest time,

supporting we’re to it’s density. these that it would some time also surely that. So result wells is a six we wells, assuming And results anticipate of five early five on what uplift get new to based as

Thank you.

question comes SunTrust. with from next Our Dingmann Neal

around at had pile I'm and bit XX so or the with adding little one just looking talk bit higher, I to X,XXX continued And looking well variability, what slides maybe you where Jack, development. there, a you Derrick's Could question think just specifically like little oily. the It's on on you sticking the just about Woodford a hours. expectations? with prior

too like versus just about I'm XX. overall you X,XXX here, not last So the looks far had same was but off wondering about the

as question expectations So far an that forward really the for percent? my going oil is as and from percentage a IP from

said because from unit you as for on XX% we're average get get to bit out a oilier Woodford, And that move here window. anticipating and we've here gas side the more oil, the is into side. project condensate you of know, you SpringBoard, the get you an about that's the and the As the west of

we're a it's XX% talking going is average range. to about great but So going here change you're to see that the in regional

expectation. over wise, so 'XX bit as that anywhere I 'XX the pile think shift still size is little then versus Will closer you closer more, Jack, west? you're to And too, go that to little a east to

of outcome remember and a good degradation. bit a expect in the when These is we've to Plus think I here there that just are in is do it stimulating come -- been that and out. with they bit with wells, a that they these well, anyway. when of we're to pumped stimulation the get walls that wells of unit this in we here in well in seen so because just the while -- But after see strong, very basically coming has what a development, little the also strong these come water you'd amount a on pair here. are back on little come takes on, density come back as

So this fair a expectation, is I forward. going think

again the such look reallocation the broader use obviously yet, the you and obviously forward of both thoughts lastly, year, even end just are just in fantastic just between towards then when there, entire Cognizant, Bakken MidCon, year not these And results on not getting the XXXX whole the because you of out next plays. let's having

all inventory? So how wondering team any it when you simply on Jack, broader you going a Does to Does looking I'm just back, you between it it I'm there the will or forward? you on come are down if down are come be about to on forward, plays just here wondering the the just think now amount are reallocation go longer-term. stepping of at as a economics?

CapEx following next things into to year I coming one we a see We be mentioned before well. the year, keep see an difference by but of lot to as might year. lot But of try we reallocation. overflow of don't get on expansion eye And not what of earlier try going and we the to supply we it. that market CapEx the project

So into that's that and add several things mentioned perspective as it. that you comes

year around this, to of our five range expect that, five-year pretty probably XX% we And projection do XX%, general to that look with need coming I we Bakken. well our see for whatever need growth maybe XX%. is that is if beauty think in and and in capital Neal, can XX% optionality to XX% see to move period capital from over probably you about could correlated that to But Bakken, that XX%, capital of have at as you that The there reason. to allocation refer we I'd be be

you. Thank

question comes Raymond next John Freeman Our James. from with

you mentioned when the reductions On as that show quarter, bore had close gains Slide new that. bore begin cost may XX, that all get well you all on all to results stack. And and or curious testing the and the last big you all that the of you've And switch you are more well efficiency design. a design if started just we details

nor Yes, PD'd we have that that stack, yet completed. have don't

be And then. put we'll and QX so results some that should

Neil those was step plan. to up ones just five discussing. then follow results about feel Montana those the just a the The activity southern you the Do relative bit in Bakken the a step wells, Bakken. and are then questions, the five on And it's up plan? year especially of the to change at out -- year little was in what within West follow up potentially -- enough extreme allocation the the in If do Bakken thinking of relative that a one the significant I just looked to

the Sure, all things. with to of it of those we the types here influence can these place, try that's as maximize units any infrastructure the allocation value of in

and more gives just uplift that again, just this acreage it us performance the development. across is so does expands what optionality it for proves And our

I john -- and results that’s and we've here here that other that also we've with thing got for here mean, stack in additional the Berry we've that that obviously, that. begging is the south. its CapEx, Woodford that in I'd got there after Southern one in that’s CapEx One the is Oklahoma competing throw area for in that is begging also had

Thank you.

Our next from with Fargo. comes Nitin Wells Kumar question

Bakken I in little base, They've touch differentials John, mentioned widened bit here stronger. April. early to just wanted out being you a the

there dynamics the going think and should here? for what we forward on are thoughts your about how Just

Bakken I obviously the differential dramatically. think improved

sequential little this last wider improvement did relative of at looking We're is You a guide that December but April year as blowout guidance. strong some well. end the had through account. We year little of into a bit the to a bit of first as low that in quarter taking seen just we've

that the forward and what of continue amount right that months. throughout to think next and XX over capacity the that now and we're the think will well into months, you've takeaway just got strong months, spread the coming few the seeing next basin improving We going I XX to it differential. next continues be benefit as

the very associated we very and to think our as guidance and strong So continue we year, monitor good. throughout that I but get we'll feel so far

question your about just well step North And that sticking the any of maybe of well here, core in obviously, but the outcome? with What out type in two, couldn’t one. results notice costs Montana, Dakota but in And the two-thirds Bakken a out your then IPs there? of I tested the are That's strong plans the side. help with basin

looking that's Well, is develop of the It's in XX,XXX infrastructure in. at got let's to area we the over need it. beauty also to two-thirds -- cost. area there, all the It's don’t of I go got first. that better that We've got just to that we Montana you're rock there. just acres just acreage take mean, only farm on

area. So it's a very good

and sure, You're that as results out seen Divide well. there's area toward we've leap that talking a saw good you recently about County, some there

Thank you.

from Grigel with comes question next Our Paul Macquarie.

you Bakken core? they're a given Just a well look Is Montana County do material than the costs on you Southern following there shallower up there Billings difference as little bit the step-outs. at or in as

on on talked beauty… just but question the there, but the phone last must been about the there, you I Yes, that

cost. actual just that and actually Is cheaper? guess actual the I infrastructure understand drilling, appreciate D&C I and Harold. but cost, the drilling land the Well, the

those and we that shallower both areas it's just talked Yes, about.

I've it's -- infrastructure. is And the you cheaper so and certainly to drilling the might want cost mentioned add. Jack,

million our look maybe you to in range. there $X Montana, that costs were million of $X.X out When out

X.X there. And there County, down in get you Billings when maybe more about we're in south range so dealing

way of looking I I on to in And so we're County, as that do down or performance well is are performing not seeing we're the and substantially Harold just there our growing. Federal, that at rates there. we're said, And Billings mean in Billings out mean, the going Baird higher out rates return here, at costs the our is XX% there. return XXX% looking there there of

that's areas So of excellent just running. each I in outcomes mean have really of lot just a these we and

as those the to of were SCOOP. maybe southeast trying drilling either Thanks. within thanks you why versus different the with parts mentioned part talk to moved moved Could into bearing And me the for efficiencies, there around? them or down the the MidCon. other turning south they're you especially further areas, MidCon on Bakken three guess Jack, with there. get to infrastructure I rigs reallocated

get see the great other to and in moved there so to down activity down results you drilling, with we're some road. some They here that SCOOP of areas

all good put use. anyways, So being to they're

you. Thank

comes Our Leo Mariani KeyBanc. from with question next

you're certainly further the cost highlighting that know I had a you've good wells. did You on of some SCOOP reductions the X% expecting reduction. job

expecting well well. you a and been, few today talk well a as more those the you're where bit I STACK to talk you year? some this cost costs the efficiency maybe there think little Could are about prepared your about quarters say in go costs ago of gains in later have may they comments, progression where terms STACK in where

Sure.

design mentioned stack, that. wellbore that explore we anticipate and those to we XXX,XXX do additional the we savings would quarter it think in an as I last

when drooped Currently, liability a total as to you refinement forward. down percent costs our lateral looking and just gains efficiency through is it. look just at again that So of

of see in more Or the up and rates that the just not some to see be And get are wells outs guys some maybe you Certainly, you chance over are that as of economic to as County? that Montana north to Divide Bakken? had nice you've those to Bakken or wells the of step side. do the very I in into geologic to here. a move few a versus projecting think closer whether would guess you continue strong Wanted your you core counties models

that page you XXX,XXX just in in barrels always if just is a dot green go Williams eight, that’s part almost think there XX well interesting the there that I out I northeast a in Divide it’s to first days. think over that’s of County

so EURs that here as costs and see I able up key And be well also we think But are the will direction, returns we’re down we previously to creation get. move think do and go as value in that to we talked down. average I’d the going go

is to south, continue compete going I of see that have little a higher still But we’re there. think very as what think with further we find less north, to line bottom we’re going economics bit what So bit we’re going we’ll cut. performance be seeing move really we we out economic water to to that the probably down

Thank you.

question Our comes with from Subhash next Guggenheim Chandra Partners.

some you your just have rethinking category? approach to So Harold, tuck-in they fall and since the would you the in recently. large M&A been that brought corporate might of at Or things up have scale more I'm you looked curious M&A?

category I as or them, strategic bolt-on areas, our so tuck-in and No, maybe mostly particularly operating than these within are think Bakken. we step the call

follow is a little here. path my further the And down up looking

wells Springer at the SpringBoard with have so around. done some by and be XXXX, You’ll revolved questions

XXXX. then happens and point You'd have from SpringBoard that peak production at what in

other that for curious if come us takes there further forward or when program Sycamore-Woodford the So play? from SpringBoard's is growth, into I'm

pinpointed. it this part. most SpringBoard, just been We’ve pulling hadn't And that talked we those of a is hadn’t so had that’s that stuff, We good just after. been HBP about

and other -- sites it, a to it’s Woodford we response It because potential obviously have find Springer My projects, to the you’re going on both. is and other that activity. Subhash, is is to SpringBoard SpringBoard definitely there additional expand

lapse But you that when in not there's into five year say production plan, out there. you look a

you. Thank

comes next Biju question with Perincheril from Susquehanna. Our

quarter the A question about first oil volumes.

Just there given stronger thought the in any been and I are have one-time the as would volumes. special would’ve Bakken adjustments it number uptick wondering oil was higher. as if the SpringBoard company-wide

rest you year progressing for the of the the can So what oil how about talk the the those to year? you through two offsets could areas mix be see and

that, the realize you've various wells XX% and think We quarter, We a you're to exceptionally the And well it come growth looking that. about I a have basis. XX%. with ratio got to got maybe oil the year for throughout two-stream When oil you feel even quarter. XX%, above on times at on get at that XX% on

so And the as it's come at SpringBoard quarter. it at the stuff, of the we're what all wasn't on and on now where at you're looking beginning

great. volumes oil doing are our So

always about new -- adjustments, You it things, asked you offline adjustments also you like have always balances where all have that. out. We've areas production or got was

normalized very that quarter a a first carries is good that it number think forward. benchmark you it's reported and for we the I

So we're shape. in great

been then areas areas. has the the thinking step the southern that pretty Love out In SCOOP walls. of just existing And portions and up, my SCOOP, there in County, about can Woodford follow some good on

and to had you've there. Do area? acreage any have think some that still I close you touch acreage

want care of extra of those we've a we few couple we building, go SpringBoard there. to of have but some that you out what down doing tell that, we the rigs Country say ahead going I to -- type was that have have got I I of and in this Wealth and moment are the is at actually that been we mean, of work option I'm to take activity. that saying are these

I'd guess to interesting activity. I say some As you be continue just see, there

comes you. And Morningstar. final our from with question David Thank Meats

I'm impressive. those are three walls, which interest in non-core very Bakken

Montana there. is typical wondering this well is costs it's there out or I about interest already working different that particularly talked over gathering is the in guys cost You area. But that If was in there? any average difference

we're the working Well, are in interests Federal. And high. Baird very XXX%

are averages be So XX%. to going XX%,

XX% out our position working sizeable is a there, there. we're which in In position is XX%,

the north? transport the working about those and costs Is what out material interest. between area So Montana that's difference in the And costs. gathering there any at or

really though out No, there anything will tax out benefit. tell have I that. we're the Montana you does on a there production seeing anomalous that in not

tax X.X% months. your For to that XX months, just it the up for first you XX getting first the reduced down end is

So Montana. get have for the that nice you bonus very production that on it's you

looking we area that's Its production begin even certainly that's developed with at. keep to and why what

strong just well. based to here. follow your my on just as in just development back make that other like more your near there's questions And motivation that from really And these quick term the drilling answers sounds But sure testing plans on results end of up to to for here drilling the incorporate no these plans? wanted areas you're the

they with we've Well, the incorporate some the on opportunity this that results, drilling. of head-to-head when based the inventory compete -- and to the with was got

just it essentially So larger gives to here what is develop. field a us it playing does

Ladies and over back session. closing gentlemen, today's you would thank Sabino, Mr. to call for in like remarks. turn question-and-answer for participating to I the now any Rory

for any today. Thank Thank you time very further questions. you much Please have your up follow if you.

disconnect. concludes program thank in wonderful a you participating Ladies today's And day. the for have gentlemen, conference. all you and This may