Continental Resources Inc (CLR) 31 Oct 192019 Q3 Earnings call transcript

Good afternoon, and welcome to the Continental Resources Incorporated Third Quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would like to now turn the conference over to Rory Sabino. ahead. go Please

President; Officer; Chief Harold President Hart, of Donnelly, Good us. Executive Ben. for Other Officer. today's and you remarks thank call. Thank would members morning like Region Chief will Scott joining and from Q&A with call I start to be needed. Chairman Southern available Production; to Vice Stark, for Jack and John Financial our We'll of you, management today's everybody, Hamm, welcome earnings you as

Today's statements and call those address guidance. statements Please SEC that Actual forward-looking these risks. from concerning company's refer and in contain materially filings will forward-looking information projections, for to the results assumptions may contained additional statements. differ

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

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

reconciliation of investor presentation For updated accepted company's on been posted please has website the these the principles, generally a www.clr.com. to that refer measures to at accounting

With to will the Hamm. Harold? turn that, Mr. I over

alongside capital Oklahoma results production million across year-over-year. were growth Bakken oil execution Free discipline our operations. quarter growth Good you joining with on the thank consistent is our call. XX% full for value. the $XXX Rory. and We third shareholder and driving in and the tracking exceptional Results quarter million year you morning flow while third towards us assets net cash flow earnings production for And income driven thank and positive in $XXX cash by achieving continued generated

Bakken the repeatable a of the mode, across day in field U.S. the be oil impacts our sustainable a testament our we shift play and providing earlier in month. quality some results weather production to to our September, volumes to of the in This historic saw record footprint. shale and teams results continues Bakken of and despite premier The is true manufacturing the single

on rate some quarter, want This exceptional focus out of Oklahoma. results to oil we

in and in production the Project year-over-year, XX% STACK. up units online brought by our and wells of two Oil is the new we the the quality oil South SpringBoard driven

also a daily certain We in production record saw regions.

has company and our execution achieving. to and successful the are shifted operational to As have efficiencies our do. been they expertise development exactly teams proud unit know of in We're what

We Remember efficiency of gains have can more seven allowed out less expense. with to Oklahoma. rigs us SpringBoard release capital in do

call. color We will more the STACK in some provide operational later on the

STACK differentiated our just peer-leading to to rigs the well For target are continue committed CapEx we with now, down rigs I SCOOP for the position year. pure will rigs the and to bested Oklahoma emphasize Bakken average. capital-disciplined on our delivering want and assets. be for Continental and in counts with in here now XX% XX the to XX same with XXXX We're and six

company. is quarterly dividend begin next our to Our the evolution for natural month set

and of focused We cash have is repurchases Continental million times for $XXX with October strongly shareholders. as XX right-sized on in year-to-date also executed share aligned the We're XXXX. positive flow.

debt. low-cost a leader with investment-grade We're

and that nearing XXX that supply has supply be opportunity U.S. demand. balance the we're And From returns. we're the drilling a mark needs believe XXX. continue strong macro delivering we sets With opportunities – to estimated been value about point oil. focus deep our we supported approaching on rigs to It we're and at inventory, now balance on world standpoint will the to by tipping on at

average. industry inventories conditions. We the to see OECD, for below discipline rig oil the is five-year count the And the market As are indicated and gas to balance responsible capital both operators exhibiting crude market. adjusting

executing We're generate focused feel growth is not ability financial peers XXXX cost, volatility to can market level about oil-weighted at cash confident through the a with be on and high going away beyond. Continental global soon, sustainable what flow-positive our may amongst control. While lowest we our and

Continental In capital. at of XXXX, to normal will XXXX, and all our appreciate you operational ahead can uses I look of time, that, and looking like. at more you many to and into plan are continue want regards XXXX I excellence we're shareholder scenarios would deliver insight our value. this to like may know assessing for what we looking

call, as We're the about on have submit our discussion we may refrain understand with early off annual our hold that budget. be on we for to usually going when speaking until XXXX efficient time do you questions. year, from we'll next We to But now.

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

the you, We on call. everyone. appreciate morning Thank Harold, and being you good

Harold results out, quarter. again our South once delivered As this our exceptional both North regions in and pointed teams

the our In from an day. completed want per results BOE consistent we're IP performance our Northern gross region, XX we These Bakken sound wells operated Bakken highlight, X,XXX of with familiar. getting And well I average today, assets. to should

per Bakken began we our approximately operated XX% XXX rates Since wells assets X,XXX XXXX, we've and averaging of in day BOE initial production the completed with gross harvesting was oil.

performance production point drilling to programs. slide our XXXX, the in XXXX from deck, first the the getting further consistent out we performance ongoing are XXXX multi-zone per which assets. reinforced our consistency unit our cumulative on our average Bakken of well from of shows this, mentioned The was and Bakken five, year well development I Bakken

discern Looking right the track the year cost hard call at production each to I of slide it's next other. the curves performance. That's from what top because of on notice, one you'll repeatable,

as in programs one out, have and paid year. XXXX approximately Likewise, both the returns from been outstanding drilling our have programs XXXX

out time a our expect in similar pay frame will program as XXXX We well.

and concentrated all also in XXX,XXX X,XXX the These in can to position be pleased are approximately acres, we that these premier results acreage locations with why the U.S., the but net remaining play to from oil Bakken the you largest one leasehold. and not control explain in operating Bakken in over five, are inventory. slide see results at outstanding consider our Looking units the area, come across

will decline outside This weather was I and was BOE sequentially, from BOE approximately the production X,XXX out by and third issues. our by down quarter day transitory other to Now per down per Bakken due driven that day. point production X,XXX approximately was operator

Our X,XXX day, up barrels hand equivalent operator was great production the to approximately by per on team. the thanks other Bakken job our

team focus our on building Our continues Bakken also position. to and acreage optimizing

and the quarter, And acquisitions approximately through acres strategic bolt-on during we XX,XXX net added leasing trade.

our doing oil let's teams Southern to region move growing excellent where been production. an Now job, have the

come the fact Oklahoma assets. of In our company's third approximately oil XX% has year-over-year production from growth, quarter

Region on the call President join invited Scott? us this, more Production to tell about our To you Southern we've Vice today. Scott Donnelly of

Jack. Thank you,

were SCOOP Our Southern busy XX and STACK. wells We quarter. were in of teams of during XX at gross were operated XX extremely the total turned production. the wells to a

record a year-over-year. BOE XX% day, impressive averaged Production up per XX% XXX,XXX an Oil up year-over-year. was production

the was magnitude oil growth our this SpringBoard of drivers for in of project One our SCOOP. key

our in oil XX,XXX outperformance day XX% rates expected on the per to per as BOE reservoirs. production the gains barrels three The SpringBoard came Oil strong per net performance exceptional by barrels and of which Springer with XX%. efficiency XX,XXX target rows approximately averaged day day, This of of per net being exceeded oil averaging reflects operational X,XXX approximately initial well thick with two oil. from

with our quarter. Conference was blended-type producers I'm in third at are spot and projected SpringBoard XX SpringBoard curve X.X X. eight Slide the also the the the average the Woodford announced legacy also slide BOE shown during the was that line XX curve pleased performance performance that has Springer wells Woodford million with that January oil-type on. end also on to The well average early of report trending producing for Springer of Woodford Springer nicely -- has is team's XX time. Call shows the all

X.X of SpringBoard oil from produced approximately barrels date To million been has alone. Project

early the We have are completed wells ahead XX drilling XXXX awaiting being drilling with rigs completion drilled in been and SpringBoard. that nine and bulk approximately in have

the net Given quarter have per XX,XXX brought oil approximately increased of of fourth driven third which day. of was online barrels and net SpringBoard ahead to from schedule, wells day the our for operational target in barrels we by have oil outperformance efficiencies XX,XXX per quarter

impressive North average units production with XX% and of Jo per in The reservoir. development oil burrowed XX the barrels the cubic wells oil overpressured of STACK rate. To an unit delivered initial most per history. XX,XXX per projects being Meramec impressive day equals within and XXX.X benches or day Schulte within company's million Combined feet XX,XXX two consist Reba BOE the separate total the wells STACK, developed we This the well and X,XXX BOE one in of XX were window day and of per day the oil. per the on

each completions. our target well team's The Continental during STACK the key to in development to dial for our for the properly to rock as right ability has densities been success as stimulating

value geologically our maximize to Our our teams superior to have expertise. team's operational from units, been thanks acreage and able position our

the For in seen Continental industry most to we the our cost projects. offset also compared example, in lower development XX% completed recent have STACK well

returns the unit driving consistent is improved Our and shifts to mode development outcomes. in South

The day. outperform reduce earlier, feet corporate still completion mentioned to have quarter rig a continued within our as per Harold while allowed As Oklahoma objectives. XX lateral stimulation XX while single all increase teams count from XX% our drilling averaging completed XXX,XXX efficiencies stages achieving our in over they to us in to a rigs,

performance say the you a gathering our Southern growing. while of being and the proud members in the Our the At infrastructure. continuing end say of of our the biggest all want production region. XX% XX-year expand pleased in third the big quarter, our water and team third I pipe turned the via currently on and oil I'm quarter I'm to some handled thank approximately to that South to our are of to wells history very of of

with call the back And over will to Jack. that, I turn

and and Scott, by your great you team. Thanks, job

over thing would before one to there's add to the John. call Now I handing like

should our been has results report Springer results on cast SpringBoard outstanding guided put performance some I conference want that project. Our emphasize we the in rest. as doubt yesterday The well doubts of came in call. our to unfortunately announced to January circulating those our that

from began addition, and of encourage expectations one guidance approximately the our our like to track year stop rely reports shareholders results. In record coming oil so we out project has inaccurate beat SpringBoard delivering every since these ago. quarter on cannot growth We production from

the With to call that turn I'll John. over

been our deliver. and marked XXXX Good Jack. by everyone. has ability you, execute to Thank morning,

Our net value. driving and and return metrics production shareholder are income, strong on our capital double-digit increased employed growth all cost

We reflect does and October repurchased our the our our see the strong value deep share million. prioritizing in for excess our stock XX, acquisition of million to growth. continue shares future share price as with oil-weighted We flow have have for not inventory X.X cash cash. our tremendous of As $XXX we earnings, plan buybacks we

constant relatively the our net solid stayed our focus at times X.X year has throughout on repurchases end Given at share quarter. a of our debt the debt-to-EBITDAX holding with third the

on X. quarterly previously record per of shareholders to dividend of of Our announced be $X.XX November will paid as XX November share

As guided this the mentioned, last the evolution Harold to couple and of is have something years. the expect over we natural company for

value returns. strategic is are production maximizing shareholder Not growth, portfolio. buybacks made year-over-year Continental market, and and our we delivering corporate against oil-weighted build that broader on only the dividends, also focused decisions compete to minerals generating we but have returns

reimbursed minerals approximately STACK. entity in has this and been XX% acquisitions Franco-Nevada. across has by our $XXX Year-to-date SCOOP million $XXX spent million of

our Continental-operated ownership. the over Continental XX% wells As XX Year-to-date in XX% minerals on South slide spread of units. highlighted are underlying have under of mineral we

to we and few continue attractive the could grow to our we minerals expect continued entity believe increasing entity in the Ultimately, revenue over next IPO scale an minerals make candidate. and years. significantly Volumes

with are progress the to-date. We pleased

capital to We also discipline. want our highlight

slightly almost first CapEx the than non-acquisition XX% quarter came lower Third quarter. lower and than second quarter in the

by As CapEx throughout we quarter, Each This continue the $XXX expect in look year. to to the design with line around we it's we CapEx be quarter the been roughly to expectations for is significantly as expect year. be lower fourth million. to lower

of to we All strong our and our include NGL after differentials in line an differentials guidance quarter. and to continue see Fourth discussed our previously continue metrics incurred mineral trend the Even activity CapEx expectations, quarter cost be our incremental weakened as we for last results to gas unbudgeted annual increase pricing. acquisitions quarter, G&A. impacted with tightening while last CapEx LOE in and continue by in from many bolt-on the

We as do new come see projects online. relief future

first will Creek come the and example, L X in in Bakken the MidCon pipeline pipeline For XXXX. Arbuckle November will the of start online quarter

is As we last to production quarter guided second flat with relatively quarter quarter. third

realized The However production production productive per fourth where in late in quarter will the the wells. day. we additionally third approximately have quarter, approximately from early brought wells and fourth we be expect operated these XX gross on at XXX,XXX highly quarter

upper and the all expect production of look this all a We mid been about at annual production seeing of execution XXXX we to production be year and of our our good our has forward to to full year guidance. disciplines trend feel profile across of continue. end

on disciplined free maximizing cash flow shareholder We will and focused remain returns. and

to the ready the we're operator. of Q&A I call to will that begin With and section return over call back you. our Thank the

the Doug Our Leggate question now [Operator begin Please from Instructions] will session. question-and-answer of go ahead. We with first Bank comes America.

in good taking Hi, STACK? the is go the back a dig questions. capital morning relative And stock in allocation to wanted ago my to Thanks Rory STACK? archives couple that back out had the to of all Hopefully, the created running go stock years Southern not SpringBoard, our -- multiple And equal. left the going to within is everybody. primer But remind in for this room Guys to questions. area? I my to great now I from what's the results ask, why forward obviously. the STACK What's think doesn't to myself

Doug, Yes. Good question. Jack. is this

future. XX, we've answer I there the room, guess that's that the window that. oil out in available and as operate so But the As to us got we have XX condensate to and would quick the running we far units in

completed we've well As drilling rigs now there. in another we're far pace now, up both that's got single -- We're a as there. drilling at they're being the we've right two unit and drilling right got also which

now our continuing So, activity. we're right

As looking our and capital more ahead, allocate on ahead we'll and far plans Oklahoma. give into together, in go you when we -- clarity as XXXX, get we put some forward how our rigs

My is you question. more of follow-up housekeeping Thank that. Okay. really for a

performance the wondering, have and area. if of potential XX-Q, it You going the full numbers quarters? lot one on your not things guys especially the can as operated you to in the suggested same the color underlying on the seems could quarter. your any that that control results that whether better remediated you your offer in are helpfully headline was non-operated was because time, outside contributed that can was Northern published what to -- in perhaps offer you just to decline future revenue of us a achieving even very published there at a color it Any than be and standouts may on down seems the I'm

at That's Sure larger he script other timing one to the some and where that key of the there's with is Doug. there they things That's then were is just of that that had dealt Jack weather non-op of transitory. part offsets in his that of our all was curtailment issues -- had A due partners touching some things. one and on.

It's good be come it back back a of in not here will So, portion go on, but that has as October. forward. online we all

just So, and nothing impact. more timing negative just really momentary

the through halfway dropped line call... My apologize. I

little a gave color I all. more at worries No as well.

so guys. okay. Thanks Got it, much

question Jayaram comes Arun with ahead. from go next Please JPMorgan. Our

was South gents. could seeing wondering, afternoon, more better in us detail bit I because, your if give that a is that relative comment are guidance. to essentially wells wondering, oil tight seeing curves. with to contributing in that is SpringBoard your line at But what performing you're up is the I the the higher the performance you Good maybe driving what you're one little morning. on Good of was the

expectations. has density the the of of what could performing team question, for The Springer can ask job just themselves. the as first proper great in Arun. company see just comes And Woodford anticipate as line tremendous a great I just and I identifying be. right done the I And of is things how they that for are thing really spot-on mean projection said And Scott and a obviously SpringBoard X, mean outperformance. into the perform. is where and you a here slide a on asset. That's lot reservoirs more oil these play on the will there's in asset couldn't the with wells we

result part from exceeding as and here efficiencies really The the just continued is here our to substantially build next our just quarter a really production that of is of row in development. that third the guidance have the

and I we've wells. now, wells and -- pipe putting end more same than translates just still it our drive by down. It on. water again one what still just but got a are you we're and that to the up still operating I so on And number -- to? We mention going sooner. just more quarter to costs And than of translate comes continues to to right year-end think efficiencies help, does operating from on standpoint, on our got third down We're continuing operating that of that originally planned, just lot building. an oil cost in XX% can't mean when This it's

lowest the in the company. sub-$X from an standpoint, there differential And oil oil have the barrels. It's -- in it's the for really differential we

so things all this the we underneath is approximately asset. -- minerals is about and And the this, own really on great SpringBoard of of one top -- of that this XX%

of yet got it remain put be in the got in drilled. you lot Springer the get probably out heck than when we've about units us. drilled the it better So, project of front a of doesn't to XX% this. together, sitting still in the XX% a be of And We've to Woodford developments of all lot got of we've units and a

project. grow it's of fantastic continue a lot just and So, to it, headroom here a to

and Northern based guess it unveiled, both I a And was January, for pretty outlook it think on from divisions. ratable five-year follow-up you is growth Southern maybe that the in calls my I Jack the Yeah. your --

kind of it's I a CAGR. think XX.X%

-- next have are But phases projects in of have you activity -- that that XX% the still wanted or will is objective? you beyond of what to like it support the which just longer-term growth the know growth at South, So SpringBoard. that sounds

drilled currently wells. as just really initial wells, we're really right before, mentioned and get Yeah. Well, really We've not some our we've an from to -- really and drilled to testing frankly, project. outline. going any And provide in reasons, quite we've going competitive not are SpringBoard X details now our in

continuing have know really are our queue SpringBoard and the positions SpringBoard But, in this -- have just we Southern we SpringBoard I in that and acquisitions. and just also that build Oklahoma X guess X X strategic through down in to leasing we currently

out we solidify on with And how And positions. we're this so, growing. this we pleased where and right our color this more as and come but with now, will very we're -- project basically region this is at

bone It sounds Thanks the like on meat there gents. again Great. in are more Oklahoma.

I And thought oil noticed Yes. of from XX% a if production come should that. has would add, people don't the you lot I year-over-year have think of Oklahoma.

Great.

question next Morgan Drew Stanley. comes Our from go Venker Please ahead. with

you hoping lot color A everyone. about a bit and just early already, Hi, trajectory is that where of talk more could great heading fourth so year. quarter next

the on want give then I oil Can and extra a CapEx have million, million. $XXX -- us you that just side, I XQ $XXX XQ. to So, mix on give the sense us confirm on of think said John, on you in production. production And

$XXX,XXX XX% mix XX%. on We're on was about the to XX%, Today what oil mix the fourth The CapEx this quarter quarter. $XXX are we're XX%, roughly overall fourth kind quarter of -- XX% around ratio, in Yeah. is the The million for production. on think I the projecting.

pleased We're that solid. with that really and It's very carries good. XXXX. really into it's So,

Is year? down And a point drilling for up and quarter the back next has sequentially. bit crews, activity fourth the in picked good is rigs current that frack Or rate once spend budget reset? as a the as is far level, for run starting that quite

efficiency. consider of the to XXXX of beginning more optionality. are the year we time to the The thing compared with We out spend-wise the year, was a expected we of rig changes throughout that. well is I forward Wells in forecast the I line. Harold talked that of the in commented previously as We're come where in driven lot we're the increased with by earlier. about and line efficient quarter look that. now the Dollars on on need completed doing with talked think call much be. we're end got as the fourth in frame, about a year run this as and productions rate to We've of year to you We're and very we we're at the how about on that. lot in – doing just was We'll obviously February midst

a So us XXXX --- is and pace bit probably of frankly sets up is it nicely. ahead little

costs Drew we're of that the I seeing were slowdown some you referred But of to probably rig that a activity. the result think and

these you think Pat I were he asked to So baked in. if costs – might want

– Now seeing we're some still

Yeah.

Drew So, this Bent. is Pat

year take higher. activity so North. got our with We currently two from work that at to at we've respect those to slightly But the stem may partners. in in that the rig talked preferential the with count been And able exit really levels, with XX we're activity We've crew the pricing about. advantage we where market one we're see we an of South perspective

And seen stimulation we've that to seen range. in prices pricing. our decrease XX% double-digit rig so We've XX% decreases percentage in

product we've carrying and really on there XXXX. that into lines service across all So preferential that we'd seen some we anticipate engage the in treatment

decreases price those quarter? quarter? to saying that you relative Are third second were Pat quarter And was versus third

Yeas.

to relative – quarter quarter second relative quarter fourth third quarter. Second and

John Pat. lot a Thanks and

Sure.

Our next comes Barclays. Please with ahead. go Wai question Jeanine from

Hi, good everyone. afternoon,

Hello.

Hello.

I just they touched think Drew sticky on how question are. cost-savings about my

one. next to I'll So my move

it's buybacks broader So and on it's a question. just

here. near-term So it only the repurchase five-year billion to I'm talking the go are so capital program done one just buybacks broadly. won't that after you in you be process? $X with the I'm assuming buybacks strictly Or is I in the the $X plan we're hit year now part there's the free But so allocation bigger cash flow terms of and meaning a billion opportunistic? of know more So plenty first

oil billion on been laid The market have see that in to the our opportunity we you market may how we $X what is price, but that very sees gone. know hasn't well the to according continues. continue as and certainly as It's opportunistic. valued there's is in and first just It should gas it and we've stock after

Okay.

not it as the that back just you're shows you'll solve the kind just buy it of trying term. up out to free or stock. it's flow in cash It's So near some if back return when pay

It's of the is opportunity. misalignment we that think cash with available what think generate the the tremendous We with the a able that indication and have to appropriate investment we're valuation valuation. an it's share of coupled we

Thank for Great. Okay. taking my question.

Thank you, Jeanine.

Our next question comes from Capital Brad Heffern Markets. with RBC

Just as follow-on question. that a to

As it gone and the relates you haven't has down to quarter guys you prior repurchase. paid the cash think Should really targets the the previously debt, obviously, this or the quarter, that we to about $X just the current billion the the effectively long Or the repurchase? you as free out? to cash had levels, billion at to the are going $X and stock as is all being allocate moved as

was was a little million probably you it we last down from debt look huge. bit a $XX this net it's at or – quarter. so, quarter, mixture it improve if It's Debt It – did it. So of those. all not but

are and interest as go for that We term. also which do bonds, continue to those to will regards smart we we long called things opportunistically reduce some forward, the in expense work we'll think

that want target. the target and billion go retain achieve is that $X As we forward to we we a

take work as continue where buybacks I think we and number that year the share number we price continue forward not. to we're that target got forward. retain continue that. that ways we've on Today, today. It going prioritizing variables. little to can share do longer. on achieve is and forward of a we of to a go a It may depends work may It we'll But

better Oklahoma. that them that. away have a be and had a play. given that Obviously, SCOOP/STACK you potential if question the best larger there's Thanks build effectively to to seem peers your just do curious I'm the you've Okay. results from guys than acquisition footprint there operator. you might all the lot the And for on moving then another in you your seen of

weren't We that. for there do of thanks STACK. there. good those operation the in Well, to in have people lot that A STACK the be claim up

of lot it is though tag So that's altogether. on A they - -- everybody outside there. out that big was even discrepancies a saw of good to people one It were that and lot play. to a the that tried area a

as bolt-on we're be going to open there a do well. that. And that open if our keep to we yes, So works find we'll We announcing eye eyes opportunities. always up --

you. Thank Okay.

comes Our Dingmann next question with from Neal SunTrust.

afternoon, guys. earlier spoke for you maybe oil cut the the future on said trending I Good overall Could SCOOP. comment Jack as how following just what next this and XXXX you the then overall you XQ quarter oil the see you of maybe mentioned think you and into year? and just

he perspectives was is our XX% that in probably fourth when to around Neal as mentioned on there. said XXXX saying John we our some we get range. quarter touch oil cut of like looking previously, Well, to we'll give announcement in the first the the XX% But We'll year.

Exactly.

Okay.

Okay. the the the economic slides unit that showed those optimal Jack And in prior decks had well count. showing then you slides model

going the Could showed sort that is And was to over the Is and Meramec one there. think X I non-SpringBoard of SCOOP wells at in SCOOP. of and the those? four I think ballpark I overpressured it think seeing the the the that comment? to one still PV-XX looking you're here Meramec you maximize there to of what in around Springer each around was get around was in the other I'm in best

we the in much it's STACK, like four really we with when two we're Schulte, the pretty -- what in out there and three spot lower. well-developed put and put seeing can we Reba upper mean on I I we Yes. zones have mean, in developed and Jo feel are wells that in

so wells total. we And seven had

And we zone. one there units out only where are there have

have may three we or in So two those units. wells

have past here well average two could to -- unit per target zone. per two going the in we'll to said on four we've as So we to zones up probably wells and have

very really density on on our and early into in dialed they say our in X. guided that So teams it and have really to on we show page that dialed performance the really outstanding think I have --

curves and you unit how you all we Joes had outperformed that to When a extremely there referring those look at look that a take Jalou you're look the Reba, Homsey, and curve how have that unit. oil-type at just and look Schulte,

we're got obviously as thin we're thicker density the in concerned. have In -- We When down feel can appropriate Springer So it. on is pleased wells. is here very areas SCOOP more as we've obviously what with in wells. far in fewer the we areas dialed have

is average I'd but average depending three, four probably on the And say where so in units. you're good for at -- good

Very Thanks Jack. detail, for good.

you. Thank

next Sachs. Brian Our Goldman from comes Singer with question

you. morning. Thank Good

morning, Good Brian.

morning. Good

Harold, a you oil highlighted picture, coming. you the know, I broader side as that pieces very in lot on guess relates of supply some it big see and the I improvement broader macro the moving there's to how does cash And Continental of impact level? need you buyback to level the of what the see activity? priority free that flow would macro to in and oil environment activity raise

get commodity move. going be in see a balanced we're think be Brian, a It the price. It's significant to we $X that going to to I into move a won't when situation $XX. significant

much earlier and were over in this we're that aware So production the -- everybody year think seeing too estimates rolling the high is the becoming U.S. I already the

as working discipline so capital is And be. should it

seeing we well. need And need both oil, frankly but we're also areas. We And just in it's natural as only gas. not that it in --

count those obviously plays -- Haynesville It's cracking everybody's needed to hasn't a Marcellus. plays. down, come there's That's that like rig But the, I'm sure and to. of it couple two

there off see back to market need balance. to definitely this They

So oil as it both field to an say. we takes make

have But will a move. to it And big little it continue so, bit. it's when does, to going be a

these long-term projects you don't in we coming into on see yet You XXXX see XXXX. like get

get a So look outlook at in people it be disciplined, about in I'd tend we ahead, once the year goes. a little far as to the will bit future, supply as XXXX, say

to your is futures activity to -- planning And from outlook -- make on for to wait start Or, on on is additional to of that you dedicate ahead do benefit to based something that macro move Continental time? can need the curve you that?

it'd think, the responsible make not be example I we happen, move. the to inventory move we good industry. to That's operators there don't make of Well, need we But see But, a want obviously out that think setting I could prior. those it plenty Brian, adjustments before be have to the for they that, forward.

happen. see I'll it So, to wait

thanks. on my short Great, the I is Bakken. -- follow-up And

have in back some and about the and issues online. weather-related has of talked your down of that come some You non-op comments the production was come that back

anticipate beyond expect should kind the the in on site you so, from here? or operated more Or sequential Do or steady-state hiccups non-operated the side we any weather of Bakken? winter growth other

growth sequential steady-state into some this be these to weather few Creek the future. going a put line was in more be than NGL to of of It's Brian, operators. that just place. had is or L No. One outside

start gas plants that they And it production. on before they're these even depend though they will built

those some we coming So, a about got three year, as was so, that now first of year between online, first the and of -- around the well. hold-up

thank you. Okay,

Thank you.

go Stifel. question Please comes Our Whitfield with ahead. from Derrick next

a on Congrats strong ops all. Good update. Thanks. morning

Thank you.

XXXX plan current could to certainly for your estimated capital levels? QX capital Well, your maintenance flat on you assuming not hold comment efficiency production pressing

as I up to for be it in range. XXXX say if well would with as the you're a looking said, be still Historically do. only true would that it's plan always it would in multiyear we -- X.X X. we've We'll that Yeah. D&C

year, probably towards a that. we talked from depends tighter perspective flat If we're maybe about we could do it that kind what But than different so also, side looking for it or better of materially on bit at one a holding nothing before. for

how Got production SpringBoard level a it, the official introduction X of then, follow-up should picking Arun's and question, the SpringBoard X? think the about plateaus and as where timing we for earlier on great up

performance program X the view to be XXXX. into some on this least we'll at will SpringBoard with. grow out XXXX continue our you of part production SpringBoard that can again expect Well, come to But

It's time. Thanks very for your helpful.

you, Derrick. Thank

bet. You

Johnston Our next Capital with go question ahead. comes One. Please from Phillips

guys Hey! thanks.

significantly XX% at Just the your the in about oil from XX% to follow-up of like It about mix quarter. on increased pretty questions some looks second the there South.

the from sort we how I that should had QX? that few you are there next And Is about over consider to there forward a other the that just factors guess that large function completions of maybe you that that? mix mostly flush think drove of improvement saw also production in going there the Or quarters?

a Springer other blend production the think Woodford just I everybody -- those than that the anticipating to couple the of two. and there the also and is consider production that things of

there's necessarily anticipated. We're flush initially so rate lower production. of a not just And lot seeing this has and than decline --

Yes.

averaging about think of so grown once at we've there far eight oil. on wells -- averaging chart them look you our XX% If I it's they're those Woodford

there I knocking door we the that Springer. XX% on the mean, they're So of in the get right

we're oil-rich So definitely reservoirs it's just we're here and impact our very an performance. so that going to anyways have on they're -- targeting

Okay.

bought months, Okay. around on program. about Harold at so John, you then Great. million guys just with. change. so far this is just you're point. than the average The relatively an long And rather $XX today million-or-so repurchase begin Looks or closer have to back of a shares share about five you're have at like Obviously, flow maybe small the stock but price and for $XX to for planning term six $XX, underwater share here you do

you've guess I dividend on already fixed serious a adopt out the of variable been quarter? percentage dividend is, a shareholders paying at actual flow that targeted question free of my there an realized any top every level Board ultimate the established of just So to your has to with goal strategy consideration cash

or upside change $XX significant shares. going We're and that realize $XX to under a future. the We We're bit bought little in back a that. million on X.X in

think out for extremely a opportunity. think the for Board. now, I why million a $XX We made the it's dividend the $XXX over a in right from right I and about flow, excited of We're first or I little we've growth, well under investment wouldn't stock. a of it's That's good you're But bit inventory, weeks. there. great that. the cash to net but maybe That's that's months, our production at earlier, dividend insight. positive we'll we've and tremendous at go speak -- nine here not So income a in stuff, couple it's long-term. When we coming the mix, company milestone company $XX you're appreciate looking got looked regards In a said momentous

John. Thanks, Okay.

comes ahead. Our Leo with Mariani question KeyBanc. from go next Please

guys. Hey,

the question Bakken follow So pretty you I just year, here. some guys done to a past the successful a have guess bit over step-outs up on little in Bakken. the

does year? of wanted what half the in continuing well that of to Just kind on some guys of sense like second look a the you those step-outs? program get of this been And have longer-term performance

step-outs barrels seems Well the with of are of as in projects the produced remember we're don't numbers for some the as like our performance concerned, the out as wells. in XX,XXX right like days, front XX have I I far Baird well pleased those those but county first equivalent. me,

our Bay then McClintock south like in XX And was first Area I think was about probably all these of equivalent. down our XX,XXX think barrels in XXX,XXX. I And oil days. are the

how for I our this So very two that's but into can think far recall does the question moment, all they're all us. is of -- part I plan. that... of at as good Is wells fit as And your

Yes.

offsetting we're McClintock. the I think

now right So the...

Yes, that's point good a Harold.

Unit.

continuing. is the So activity

Yes.

drilling Q coming designed plans out here. on territory in could expect years. got these the could what is And really we so -- And perspective McClintock were These cover areas, said. step-outs put as there's so these continuing. our good we've the -- we offsetting we in so us have to give the and much Harold a We into the do to again, unit activity our

bottom what line with seeing. is And pleased we're we're so

to That's guys of impacted you Okay. you there. year. some whether we'll in production with plants smoother runway sense coming at kind guess I a of gas of the of all curtailed color. of referenced obviously on processing processing not next a any year in by the by And get the been lack your of Bakken, In or the lot see basin. trying have that just sort more Has great the XXXX? a capacity end And just

had what's into future. It that to those well in rigs lack offset the going we've going been of that us -- fully up certainly around are the the now to coming facilities. has. and aware field real processing But set we've of up plant capabilities there It's is

we're captured than at with and So, we're anybody where has Continental else led field. the with pleased more the gas in way

we're done at. So we're what where proud of and we've

up does South, very cause kind weak That's percentage that kind allocation, might great that? think guess, which of do you prices, how not touched of you you given for I on you oil think been obviously, NGL just where last clearly couple about higher capital the and sure. bit to respect color North the here guys in more quarters, with gas lastly good And there? have the of to those little versus to shift the activity of Or sort a about of sort differently of

to pretty particular here South areas, in that. operations positioned among this at at the well certainly, all we're Well we've continue time. shifted But in the but we'll do the we're North where

inventory down have forward. to allocation of got Oklahoma in comparable we've of to continue dollars plenty Yes oil going

Okay. Thanks, guys.

ahead. go Our Heikkinen. with from Please comes Marshall next question Carver

you. thank to Yes, I want math's make sure my right.

guide of and have XXX the your the out operated I quarter third the at wells was with number in third to have original net about through sales original you're in the you Oklahoma. So XX sticking to sales XX well for talked to year to quarter.

year, you that we're XXX wells think you So do be little could sales a the XQ? to target? just go for net XXX XX would bit that sticking of in Or over

not staying our up Well, I we're we're some just this always our time bit mean and or with timing guidance. we're -- things change with we're just point. this down guidance -- at at can that There's but sticking issues little be a really

think the way So XQ, a huge into it? to about be slowdown would

wells in of slug big on a late got the we've here come quarter. third Yes

and if huge wells activity it those say completion in on of I'd amount I quarter we late as a had last third call significant don't we a -- third I'd quarter came quarter. know, about slowdown. the talked fourth

here call as production So a the strong just about is on to these just production not talked fourth quarter. spend the big we've in -- the Capital projects. of high the timing see

Okay. Thank you.

Please Our Subash from go Chandra Guggenheim comes next question ahead. with Partners.

well and allocations, play, Spring commentary that costs Back are any the a And peaks that in original the the to the in in you Is then think which Springer per the maintenance think mode the would production puts out it way drilled presentation beyond foot about you be next on I oil what guys. Yes. on on year here. Woodford fair you out and SpringBoard between point Hi, your on this time? Woodford? to

our grow Springer our oil to as far inventory we as see -- don't on our transition As -- continue here we our that there. will production and the up no, say grows, drill continue Woodford as production I oil

curves very actually you has decline see lower you a those on there and the XX, If take Woodford the than as rate Springer look the is cost robust can cost, production a very foot slide of sustain I And which will well. head. any top well my as as per Pat, far don't have volume have comments? that on now any I at

yet, bit our little been set no -- but that the targeted maybe as with we've has we're Woodford well we've we're the well. on that per way deployed, range And successfully for have in somewhere a cost. that. less we lateral not two-mile design foot, Springer towards right been $X,XXX successfully think that working completed million around a quite there $XX I so on lateral We're our

– Chandra Subash Q

you. Got

that if there that? again non-op? was Is Okay. numbers And follow-up STACK, the a I or in think. wrote down was correctly, the sequential beyond decline the I my What timing reason

I'd No. thought it. big grab say timing Scott is it. I of No. now, part a Right you'll Oh,

just get basically the cadence. You

Subash Chandra Q –

you. Got

Okay. Thanks, guys.

like would closing for over turn concludes our I any back session. to Sabino This question-and-answer to remarks. the conference Rory

hour. IR you. Thank we're reach today, out the the if questions. at So, much to top for any of us the further you joining very and Thank there's team please

now has for conference you attending The Thank today's presentation. concluded.

may disconnect. You now