Continental Resources Inc (CLR) 27 Feb 202019 Q4 Earnings call transcript

Good morning. Welcome to Fourth Quarter 2019 Continental Resources 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. Please note this event is being recorded.

to of conference Investor like Sabino, to now President Vice Relations. would turn over the Rory I Go ahead.

Other members needed. of Q&A, for our management will be available as

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

not statements Continental does undertake made this addition, to forward-looking any In update on call. obligation

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

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

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

year thank our for joining and call. fourth morning Operationally, you Continental. an for earnings Good exceptional quarter XXXX was

you million. We excess Let million returned of our XX% some exceeded all production highlights. We million. $XXX guidance. generated in quarterly year-over-year. by buybacks. We reduced of initiated dividends. approximately or We the our of net met Oil debt grew We approximately $XXX $XXX stock flow me cash give

Continental-dominated We in acquisitions was to XXX capital expectations. extensive gross location trades, areas for This bolt-on up and additional operated leasing $XXX achieved, to All inventory. while consummated this oil-rich our added approximately maintaining strategic million. spend core

excellence. and XXXX, growth In In near-term operational assets spend continued this we we to price moderating our discipline capital stewardship our of capital current take the flat the and plan shareholders' to through next level keeping are year-over-year. environment,

for structurally market; gas for enhancing coronavirus. preserving demand further shareholders. further the even oil more future By the with sound and asset high-quality impacted see as market are value oversupplied, fundamentally We we our by a

to highlight Continental's continued I ESG. want to commitment

horizontal natural be availability contributor has renaissance to horizontal COX part the and of that leaders of in emissions affordability crude burning a are to to of of and occurred a the proud a oil light produced major thanks gas since sweet As the American approximately the rollback clean energy drilling. as independence we XX% U.S. one energy result of and XXXX,

strong been always have of stewards environment. the We

and the overall in it rate. the benefit we capture operate capture, a XX% it. and of resource when Our which comes sales We're communities to the with one gas in gas best industry from

ongoing have best-in-class to objective Our is ESG.

our XXXX. posted be our our You can find quarter on will second www.clr.com XXXX of and philosophy in ESG website, Report the available Sustainability

took its long-term the Continental succession with step Organizationally, Executive with as of execution Berry to excited Chairman as to Bill I'm stepped Officer, first major in and on his company. earnings appointment position. the Bill plan up introduce I call a flawless Chief Executive the

driving his direction. has team, well as CEO. a another look strong to excellence Bill Bill XXXX. He the as of strategic in is our done tremendous and I, already operational of forward execution here members year job in executive as role other and

I'd Mr. Berry. that, the to With like Bill turn call over to

and you, everyone. morning, Thank good Harold,

in a As line repeatable Harold performance flow-positive Continental, delivering track shareholder year mentioned, manner. sustainable with XXXX across and returns-focused This cash providing Continental's record results value teams was all is assets. operating an with for our in consistent of our and exceptional

initiations repurchases Continental in to returned $X of has billion shareholders of cash dividend. $XXX quarterly past share in nearly form generated the company's date years, $X.X flow to XX% reduction and of Over the cumulative three billion which was of in million over the free approximately debt the

track we continue. XXXX, to expect to record Looking this

expected $XXX $XXX is cash to program at to flow million XXXX Our $XX free WTI. of generate million

in of return maximizing prioritize debt will and shareholder form the share capital dividend. reduction repurchases, value, We

and long over dividend. our prioritize As equity repurchases as significantly is share we reduction will undervalued, debt

excess shareholders XXX% range. million flow cash expect of of $XXX in would million We the to to return to $XXX

returns. shareholder of in event will we the commodity continue prioritize improvement, to even price So,

We're spend, given this targeting market growth reduction discipline. part As is combined X% growth to We X% appropriate outperformance. to with of projected strategy, flat rate our our current production believe committed and capital and conditions, capital we year-over-year. year's are last

Production of XX% cumulative of guidance. be midpoint our and combined volumes the CAGR for are expected approximately XXXX still our original vision XXXX will estimate two-year at track deliver XXXX a to XXXX. five-year for on XXXX with Combined, and

beyond Before to I I bit. to our the our details to enhance call our turn operational over the of more the the Jack value outlook, ability teams XXXX highlight want around innovative of for also assets drill

position expanding to our Oklahoma grow. on top-tier continues mineral acreage position concentrated Our in

and XX% is over XXXX, our acreage XX% units. operated Continental-operated In Continental's minerals of Oklahoma minerals under of are pit in wells

for highlighted a earn shareholder was strong we Continental have the in year and costs the we entity As XX% will in XXXX, past, IPO minerals to our return. see for the potential multibillion-dollar XXXX revenue in of accelerating XX% future. a of continue further

recycling in strategic In pursuing by addition we estimate system million. We for to Oklahoma a the for of be remaining assets Bakken excess divested year we our maximizing minerals, Oklahoma the opportunities of across $X.X gathering billion. and water infrastructure value asset. are in value water water to infrastructure $XX Last our the

a currently these are portion We evaluating the of assets. monetization of

built line strategy are capitalizing bit. This on Continental future disposal ahead with of development for our basin Like sight we the gathering, of shareholder sourcing minerals, across unique recycling provides which and operations our assets, water with alignment value. the leading have nature our of plans been drill

is operations energy Continental in of for positioned DNA. exploration heart business the our with at combined the low-cost success with U.S. grassroots evolving

thanks lowest-cost our the peers, amongst to of and oil-related are our the We assets, quality operations our people. our operator

efficiency. improvement reserve growth a exploration continuous in have We well-established track of record capital success, and

will efficient strong right As With most teams right the to Continental deliver will creation, manner capital profitable to shareholders. delivering continue we the and in and density, corporate and rock, returns approach for performance with strong to we beyond, deliver look right the disciplined the our portfolio this cost. into and value continue at our out XXXX our

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

joining call. you our Appreciate everyone. morning, good and Bill you, Thank

our me budget. few Let a details more around provide XXXX capital

$X.XX at is Our billion. flat total CapEx year-over-year

is year-over-year $X.X billion. flat completion approximately at drilling CapEx also Our and

the of Bakken and going CapEx the is XX% going is to Approximately completion XX% to drilling and Oklahoma.

approximately be the allocated for net approximately will Bakken to grow Oklahoma. for completed well year-end. XX% to nine X% our count year count XXX will rig wells X% to rigs with to expected XXXX down from net year while down by year-over-year, with Production XX.X and completed the is allocated average the X% rigs be Our

XXXX. Approximately XXX with have is of wells capital in first will these $XXX XX% XXXX. up production quarter and associated million wells of year XXXX year-over-year projected that over These are over-year be spend in in production at year-end, projects progress or XXXX longer-term our growth Approximately increase sequential low drive full double-digits XXXX average by production that fourth to rate. are XXXX production our part in wells will XXXX

from Ryder Scott indicated our Our inventory robust, remains evaluated as growing reserves. we

underlying last and ratio build reserves have our our highlights the how while of four to inventory. growth Over grown continues production reserve XX%, replacement This to XXX% years, increased crude XX%. a organic equates

of to Western Over of year, Southern our the extents our the and past acreage. step-out the expanded footprint Bakken drilling the program economic

also acres inventory. proven added the net oil-rich our we year. to XX,XXX Oklahoma, We to SCOOP And added Bakken during in our position

$XX up in to out. XXX X% At Combined, up pointed approximate drop our operated were XXXX, oil of Harold as an locations reserves our year-over-year, year-end gross price. we in spite to inventory added

our ratio organic growing contributed efficiencies, highest growth technology Clearly peers. reserves to our inventory which is reserves. to and production Our our years, one all have XX was quality, of among the

To let a highlights emphasize the operational few our from quality of assets, provide XXXX. me

oil and Slide on an Bakken year-over-year exceptionally production XX. deliver Our XX% results grew impressive consistent to continued as shown

This XXXX XXXX performance the see you completed position our the slide can programs for over already XXX well includes out wells this that out. program acreage tracks paid The and operated average completed have about of XXXX XXXX. located is XX% paid wells that the XXXX currently were and period. gross three-year On on top and XXXX right the throughout in

similar outstanding results, to expect XXXX to explain previous consider be country. why oil Bakken the best these will program reservoir years. three We in Bakken Such repeatable our the we the perform

were oil assets of XX% growth. responsible XXXX company's for Oklahoma the Our

barrels SpringBoard of to in oil of Project role, its by in of the initial played quarter XX%. SpringBoard grew guidance for back day the per XXXX fourth This SCOOP key and gave production average XXXXX a exceeded an net third we as quarter.

was designs, growing improved infrastructure driven well shorter and performance. times, The reservoir outperformance cycle by

running differentials the also in were Our SpringBoard barrel. best per company $X in below the oil

costs During SpringBoard at the year reduced by reduced our well And XX% were XX%. volumes drilling oil, nearly XXX% of cycle pipe. completed and times water were and are gas on

XX% our SpringBoard developed. of XXXX project XX% own Oklahoma completed backyard. of Springer around an the SpringBoard and was and assets great of example year-end Woodford units units create outstanding value we a the XX% and approximately our quality the with from in is at

Many of in X Continental XX% leasehold development wells SpringBoard approximately interest XX minerals approximately Woodford in completed Outside XX% X Springer Sycamore Continental's proven position. located and contiguous reservoirs underway. which SCOOP. from wells working where of our the in miles, and average square underlying we of XX SpringBoard were early is covers owns SpringBoard, these

their want teams XXXX. excellence performance I their and commitment exceptional our continued to to in thank for

turn I'll to John. over Now the call

flow at at on our end with was everyone. XX% year. Thank income like the million. strong free CapEx capital to begin of at Continental right Return came I $XXX an our upper guidance $X.X employed was of target line billion. of on you, the our net expectations overview in and million cash XXXX performance. would Jack. Hello, and $XXX generated with financial in above for

Continental $X.XX be amongst XXXX. oil-weighted per the continues for peers of to lowest-cost an our LOE with operator BOE average

efficiency. per peer-leading continue a strong capital to BOE and per decline, generated DD&A our G&A reflecting also BOE $X.XX We saw

flow per of is Henry is in on cash barrel by $X.XX production change flow approximately WTI XXXX based million to $XXX to barrel A X%. X% million. million $XXX free at generate cash per $XXX growth projected WTI to $X Hub estimated $XX approximately Mcf to annual and impact per

below drilling flat be and hold billion, to assets CapEx Our continuing efficiency. reflecting capital completion quality maintenance our is $X of and to estimated production the

$X.XX have differential. well pipeline coastal continued we $X.XX. have towards to differentials oil seen of Bakken year-end guided of expansion benefit range to infrastructure significant we Since XXXX, XXXX, will which our directed as a as markets, For a our

differentials our $X.XX guided $X.XX a have range $X. negative gas – of to negative We to

ranges in $XXX million XXXX. With Continental. to for announced total budget, be our mineral Of the royalty Franco-Nevada structure million minerals XXXX with acquisitions. guidance the allocating million will Our cost to of consistent agreement Franco-Nevada reimbursed previously by carry are the with $XXX place capital a is approximately $XXX company

Capital on predetermined production earn but reimbursed include the CapEx, revenue discipline strong performance. monthly in our is million will of We certain beyond. total program tenet $XXX flexibility in will and consolidated our XX% strong million Franco our a achieving thanks will $XXX a central Continental maintain their to XXXX degree for XXXX Continental of by capital for forward based targets. share. already in going be

higher a encompasses current growth range markets, response CAGR of and price of is inserted has before. XX% a a responsible This level growth to to versus five-year respectively. XXXX XX% As volatility moderate environment a today's of prudent macro XXXX to and X% actual targeted and we our believe into vision

In of generate approximately years. moderating XXXX roughly $XX billion environment $X.X billion our growth, $X.X to X-year $X over approximately estimated by $XX billion cash In from CapEx we is five-year gas free of vision and XXXX. five the to is a reduced for our with our have to XXXX $X.XX flow half which estimated

XXXX Return well at returns and to to $XX, $XX on At from be at expected as at capital is employed to XX% on XXXX low X% capital XX% XXXX. mid-teen employed see strong $XX. we in to approximately

begin the ready that, Thank we'll call of to the call turn the With operator. to over section you. and Q&A back our we're

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

for actually And a This Good would few John on He's a He CLR's the should Bill a to now? looks here. volatility define webcast. as deliberately morning. embedded now. the just right to be defend. unhedged appetite increasingly how The case E&P Abbott has you for clearly had difficult market is plane listening Doug. questions versus And peers no on we investment growth.

Yeah.

keep we're the that continue we had some money a taking And It's cash market, a flow you're that we little considerations right very now in year delivered spend some put deliberately and with capital more program deliver started to. in the at ability a chose last sure we free seeing are production to bit to drilling to we you XXXX. track wells deliberate return wanted talked down discipline some that make that at. on to what we that's when we wanted of on rigs that growth organizational into If effort we looking shareholders, into order investment, then transcribing the the generates into to the capital we about level lay look to capacity-wise the the where capital

Okay. talked question, about just we saw the CAGR. the we – And for updated follow-up then our just

sustaining CapEx sustaining period? over CapEx a How that over year is think billion. I does five-year about evolve $X.X this just time

Our consistent increased you pretty seen few indicated maintenance the productivity reflection area of the wells $X capital capital of that years, that few last last obviously in things: range. the It's over newer $X.X billion we've just to that the years over a a completions stayed as with couple continued there. of efficiency. the one That's our billion and beneath

of and inventory So operations. strong it's strong reflection a

years increasing that modeled to ability we production number and have out even range a the maintain on the base. We for that an of see in into future

continued is the that's DD&A a improvement and One reflection a – Yeah. the Bill. year and capital continuing this efficiency. see thing of One in to is look every to DD&A we're can thing you

a Yeah. on XXXX above to so if you rate we few – a DD&A $XX for We're that's add-on but low were Bill. I back go today instance, a remember $XX. good

you taking Thank it. our for Appreciate question.

thank John, you.

is from from Jayaram question ahead. next JPMorgan. Arun Go Our

Arun. Hey,

day. Yeah. thinking indicated you XXXX bit XXXX range In questions Hart. about X,XXX barrels of of Good take the JPMorgan. upper than guidance, the John if barrels that A we little barrels end grow of Springer a John the couple for guidance growth. by around you in expect oil Jayaram, to morning. the X,XXX implies the slide it more Arun a perhaps

growth the with STACK you X,XXX barrels the and understand And assets of help of kind some the so but understand us on to you could to going trying do just have pieces Bakken just in us other which what's wondering if get a XXXX. that day

variables production Organically, a relatively little some The for operated, I X% of projects is based you their little company. year key for our number One Inside they also. the some a the or into comes production outside referencing our of on and growing their the in XXXX a showing a operated you're basins. And longer-dated are as little production. you part in is looking outside is got so our timing bit. it's operated at of on rising within couple timing a is You've operated when overall it partners we're their on of production across of non-op off think then off X% nicely of XXXX. just Springer Continental, were it showing and flat go – But as then referenced we're up bit. inside

incremental that my call just side if give what you the would And sell believe as And it have water enough. would follow-up monetize billion Fair mentioned water the some on a value to perhaps and on be you did sense us use investments, $X.X side you water call maybe asset can you on timing? it of proceeds that look water potential assets? you of some

flow that's it's But probably underway Yes, it. for a process looking this us And to to to range on comments, of opening coming things that's beyond to cash any to it back million you're us back on piling inappropriate the probably one have $XXX in see Bill. we're we shareholders. comment referring XXX% further seeing the million $XXX is going my to yes that that so

Great. lot. Thanks a

is Brad next RBC. from Go Our Heffern ahead. question from

billion. $X call year. billion. program you've billion very $X guess growing on Hey, really everyone. a capital I oil the maintenance about just under I to like much, almost maintenance of historically $X.X talked said you it this on not good capital, this type looks morning, guess With

between that you've giving? just you're the so the there? that that sort color out Or other difference year give the called budget can you number and nonproductive higher the really maintenance this any reconciles is of And it capital

that. this capital year It's our the massive wouldn't big because the million I into Long $XXX we've call of maintenance of of an Creek as just Bakken, the that example long-term in D&C. going that project. got timing

with I on markets You'll just are. the the we're commodity see think XXXX. coming Frankly current in comfortable of that on timing where production based

production better look and value that on see next strong a We we XXXX. bringing to year forward

call not that just timing delivered. a XXXX what the and is the maintenance. and nature It's the of when is production would projects I So

inception minerals at point. Okay talked being getting leasing close What's the then candidate that about it. IPO the And line achieve? to JV And time side some since got we of on the of have guys looking an are Franco-Nevada end the sort to on you the up all you're that? you minerals

telegraph leasehold that ready space. program, actively to increasing have we anything active an in still to the That's on not timing we're the that so it it's we're that but as still

very well so excited nicely about. something Production it's as growing we're on it's

Okay. Thank you.

Thank you.

Jeanine is Our Go next from question from Barclays. ahead. Wai

morning, good everyone. afternoon, Hi,

Hello.

question the X% first X% for a some healthy you production guidance growth My growth less questions. guidance by than of is grew calls less following but up Hi. growth. XXXX – oil year on clip. Last really total

So the if to math growth X% a average implies think to year-over-year XXXX forward production about roll XXXX. on we just kind through I five-year the total of plan

comment XXXX? you will in that what get trajectory and growth to do this looks of oil oil kind the production on back outpacing total anticipate can XXXX So growth like year? after you And

Absolutely.

don't a because BOE X% vision our XX% The to target I If since to is percentage. the indicated have you old you percentage BOE percentage. to listen five-year than But look for numbers. That's guess horizon. of five-year or higher we've a us – the a

gas than XXXX. XXXX points and that absolute Continental percentage and So see we're during to for XXXX to five several faster year. by ratio We growing volumes oil relative oil improving the XXXX versus

continues well. into A good projects see growth in those it. of the with starts outer oil lot then throughout XXXX of we as that years in growth and So those timing

predominant projects timing when It's are see oil. focused driver value So just very delivered. of going we that the We forward. are as the on the

base we much to. exceeded We off higher expectations. And those a XXXX it's than in originally coming where guided

are the earlier. expected. on where So to much is We the as growth we not volumes you'll it percentage line just we outpacing BOE as this but production year And with see growth of some forward. oil absolute right go delivered continue

My really second commentary. flow Okay, plans. helpful question great. just That's on is activity cash and sensitivity

is So to math to then from for that take we on your $XX price the move you flow Continental which implies XXXX around. do for when right pricing, the gas that the in at if we reevaluating cash start actually down if $X all do now another and plan oil natural $X haircut activity? But below know back-of-the-envelope $XX sensitivity trading strip that this moves outspending planning get we

do continually. We now, I do think we that we immediately. that do that

So we Bill always further that. market. cash as towards view flow have XXXX since a and basis. mark-to-market need indicated take daily But we make if we adjustments we'll on in do a significant listen earlier We don't numbers We been positive to.

as today from is generate to capability a and water the million. $XXX spoke breakeven Bill have million Our And cash rounded significant other to well. with as $XX below assets number. assets others, It's we flow

track so far. So we're on

by we've we XXXX, in as buying reduced million $XX and well. our year-to-date debt been shares In January

debt adjust positive. we the reduced years where buying going this price a we'll shares and It's while be a been we've flow cash had So in is, forward. breakeven mid-XXs. since only plan we the Regardless to few intend of

stay on on there. it. We'll we're So top

helpful. the you Very for Thank detail. all

you. Thank

Our is ahead. next Silverstein Wolfe Research. from Josh Go from question

guys. Good Thanks. morning,

it? today. a all chunk of float guys billion moves. wanting the if opposed sale of little is public obviously business holdup to to wouldn't now right in The the just a less strategic the bit do you water some sticking that? do Just What's of with around the Why not $X.X as

as it at in on we're be process it's able into we we'll holdup. go see point us We're bit underway a a then in a of later we premature little on there. it tell out that marketable and most as really through on you the to packaging that's that's to it's you'll that the and how this. But this to said, more group details doing to the it really description approach the much year and of But in most process at I no time. assets There's looking go advantageous have the

going years. next asset significantly an also It's that's the over to grow few

of So if greater value we it hold portion in the a got it's a future. lot

we for pretty in that seen on these build discussions. to demand our strong have Just resources

a so pretty – that And this. have good we they're path on think we certainly

I of to reason few question calls And back, doing mean that have of just some okay. was do sort view these think I a and for oil I just this what's have it, capture just $XX you being a asked value it $XX the accelerate float the Got why guess the process still of not potentially ago. then guys along is I mean But this if of Or coming in-house? and same days? conference staying lines transaction? able public to to most it bullish

have the We've go interest shareholders, future stronger of as there. always all we'll But and as operated that view in keep forward. for mind we a mentioned best the do of you we in prices

know in we'll public challenged, so we with a go and and we way, but the can forward. closely as it's market it And today all watch see problems

Thanks right. All guys.

you. Thank

Thanks, Josh.

question from Singer next Brian head. is Our Go Sachs. Goldman from

Good morning. you. Thank

Brian, Hey, morning. good

ask a to Oklahoma. little bit Wanted on

The portfolio. environment of of how relative plan what couple cost reserves producing with to and to if sticking need and the see underlying And the if plan warranted talk increases maybe or years. bit look competitiveness are could if in past the Oklahoma you the was Bakken? the driven overall to in macro gassier the hit terms needed five-year of activity by And Oklahoma in to a looked five-year structure you little degree you there reserves the be to capital And bit essentially impact. higher. those a a because wondered add that's what of So, the I in booked the mix had the little cost

more the focus our rotating to dollars as XX% But budget about the heavily XX% see going year We're XXXX, usually little to had did our mix. we've got Bakken. -- Oklahoma, do to Yeah, This And In capital in a and XX-XX about Oklahoma. see we about we Jack. XX% had is you had than Oklahoma going to Bakken Brian. year a we last Bakken XX% us previously. actually bit this of and more in you'll to a

gassier our year. the bit seen think mean, the had mix. our we've our SpringBoard in a that little really XX% Oklahoma that growth pointing But is year. on are the see last that about I you you're more Oklahoma production So I oil mix there just out we in assets, Oklahoma program we production almost oil mean, growth represented of -- company and in production continuing growth this

So we -- capital are strong. and I'd our SpringBoard we're actually got this we've XX% Oklahoma our in going oil II. assets of And SpringBoard year, be say in of -- is very I to portions going total to

growth we're to oil to very growing nicely. in And that So continue it's Oklahoma. going see

If XX, there in that I to this you you be Slide year. oil on we've going XX% production in in it see Oklahoma the think look about is got going XX% can our slide, even up

integral an at as So of XX-XX our range -- vision is And that it of five-year that contributions five-year the going in looking say kind our probably, and is program to and long-term, as mix that is probably in say its far -- across the part board it I'd just and it plan. beyond. I'm

important pleased very getting. and the a part it's with of we're outcomes program our So we're very

How deploying you If think reserving regards would capital think where and that at opportunities -- potential be the -- market comments all it business that to much the proceeds pay-down Great. potential or how earlier percentages broadly stock of And for And your with some would allocation? whether share debt about divestitures where et versus price keeping water my today's follow-up IPOs do or of the towards to cetera. available what think you the to pay-down environment, would business, lie? of for discussions goes at capital debt inorganic would if come very you repurchase? minerals

think, I this Bill. Yeah, is

toward heard in earlier a preference have shares. that You stock price today's we repurchasing at comments my strong probably

driven price. I part so by think large And see the you'll that in share

Great. Thank you.

bet. You

ahead. from Go next from Our Dingmann Neal SunTrust. is question

curious really Bakken. first cash focused in just talk one-year Harold question and free is activity you discipline. of to term the you morning, flow, around spending the been especially team. is less the need I'm around potential and on release continue on My about this when talking of Good the the payback definitely specifically I the kind balancing in about I'm the here near outperformance and And about you've talk and you while how see capital what also SCOOP on or sort think about in and what

given are how So how of sort I'm think good returns to you wondering decide activity. those about just

we Well, The the year. as takeaway from growing last over I and Neal, into standpoint capital infrastructure has rotated back more processing. the this investment natural a basin gas Bakken mentioned in heavily grown have the year

where continue basically maintain so there. grow we've to And our we to rotated and capture industry-leading back in gas up --

in from our activity Right there. now, our gas we're capturing are now probably XX%, XX% of the up in the right basin --

have what states Oklahoma. to back is of our or that Bakken, at well XX% say and pretty I'd we're that doing think opportunities we kind XX% I cadence looked is here the mean, I we're pace, which So, prior

now. view is not Yeah. is market be And I that think as far as right our oversupplied overly that supplying a we activity should

of reason we overall. with level comfortable part the that's feel the of So that activity

Harold. follow-up my was That

just remainder they you build past? of DUCs for like that all oversupply. any continue such macro the in because are to that. year. overall the as you And reason Just do anything going I'm could Do are to have you if like you to or talk that your of be going on impact thoughts obviously, prices see a just to we're If little think curious kind -- -- of

No, build see to reason we quickly. DUCs. don't any We can that answer

a Let's back little just up bit.

going Obviously, the very, that a demand, supply given and here. market is of away from demand. have correcting we came quickly weeks broad about as as coronavirus very Before balance see how take this this few to to saw something far we'll if is

around back plays to worse we Certainly, a expects, world the at that Hopefully, out. a this strengthening. see market and seeing bit won't means than the this it knows and just So how get little any is what see overall, cut But point? now. reaction it wait we're right anybody but who

Very good. Jack. Thanks, Harold. Thanks

Thank you.

Derrick Our is Stifel. next from from question ahead. Go Whitfield

Hello?

Good Good afternoon. morning, all.

the… about Sorry

No worries.

With to your my five-year I'd like on question vision. touch first

We the the the financials shown has continue to of presentation. which by of derated your despite sector your strength amazed be as your and degree, at stock X page and X on

five-year valuation there will elevated ex-growth free a XXXX the doing the and management cash reduction? into beyond where plowing and buybacks For share is scenario flow vision, debt consider

talked going buybacks certainly environment. prioritize share to in We've about this we're

which year, But if of think back that at this into we're done and do we and made a make looking net more emphasis to believe good looking we're priority that in the I when balancing put part job buybacks. XXXX, net indicative we've company of XXXX look is going you those a income significant now, towards income first share at debt to share of that the million buybacks. or and continue over will $XXX of price we're repayment not

authorized we there's for -- about an billion. We $XXX that, spent million repurchase. of As still share know have additional $XXX $X so million program you there of for out

today the produced? could broadly speak regarding as then that's amount of the to your of position, production your net And royalty my and size position you being Great. minerals follow-up, acre net

continuing active, group ongoing that all mineral to very net it's successful that title and date. It's going It's the helps and our and all continue. the it In going process where to be the and acres total we're we're never and we've purchase we're an is very successful. go know we've past, to to acquired have disclosed really opportunity-based we and

what that been Yes. the give situation and day working you we're I'll one a now. of seeing pleased competitive grow production saying, indicator it's of with a X,XXX to on we've we're north today. and it's Steve's politely

the for Thanks great. That’s detail.

Thank you

you. Thank

Go is question next Scotiabank. ahead. Paul from from Cheng Our

guys. morning good Hi,

is one CapEx on the first XXXX-XXXX for that is related being stream same in production John, The the to average what's not John. in the year?

It compared XXXX. hundred lower by was several million to

were So we $XXX below. million or

$XXX maybe million or this below, And okay. is for Jack you.

similar that yard. inventory size that all SpringBoard in resource seen number set and that SpringBoard provided mind? the type is that can of some of SpringBoard the X? what have it a is there provide estimate think number terms curve? the number And of you the in a resource, guys you X, and that Is For very X, recoverable in SpringBoard the also had nine for -- in prospect I that, the you of you -- inventory numbers to Is what X we've what of your indication whole

as SpringBoard is it about this square of -- was And is Paul miles size. I X Yeah, XX said Jack.

is exact Our Springer. and just the an be that's But we know about ultimately reservoir average targeting well working there Sycamore in is the and number XX% will very, that XXX same approximate proven we're SCOOP in very wells Woodford, there. there and drilled and there that about

is is as seen the as that wells performance SpringBoard much in performance we're And with have we've been very in already X. far drilled what seeing from concerned, line

size. smaller comparable And queue we're very outcomes so mention we'll for it's the where -- dominant SpringBoard our that other seeing. slightly this in And of development. positions further to part vision that pleased have there with X X, And have and we're like areas X they're the and of we we and also

inventory looking And we wells areas the some some today. will there and add have toward we're testing right in could -- we well opportunities as drilling interesting that those even at now

we're we from haven't a specific X asset because very I found came we with minerals we of out brought especially and transparent, say And guess about SpringBoard very been it, would so lot a I with competition when we side. the

have time here. is, a shelf. in what the on the very is could details. will still results over -- inventory we I that's And we're seeing so have competitive But This out. here we come And situation

the very that whole with the we know and play direction pleased just so going. results And see we're the

way. me let ask in another Jack Maybe

I well in through. in end maturity of will the think will being SpringBoard mid-XXXX. X, year of done? should the by That much be you that that you pace think be done the XXXX largely we pretty SpringBoard by And or that sometime assume you what's this And I in of X development? started --

you XX% Woodford. say probably X, at in range. also it's the Maybe SpringBoard XX% -- very No. as -- similar project range been as complete -- SpringBoard XX% only the the if and developed in think I this I'd about have X I'd there. about wells say I look And mean down far XX%, drilled, time. we Springer and of at of of XX% so we're is but in about a down also the

here. And so room there's in running a of lot

as in that plot, we're going already that it's on mean on see multiple projects are new can how X see these on but as think you years so we And page see SpringBoard there. And be the as can far growth are have production I to -- you adding beyond XXXX. go bring moving well I to can XX starting you just

five-year our that company-wide. to right included the inventory or that's provide far in XX% as overall plan on we're inventory as -- that using of now plan, less essentially really is our five-year And

you it gives perspective how So room… much just on

And one you. Okay. Thank can just if request. I make

in think you the and by the the oil STACK. and include Thank will earnings actual production of That you. I help people. season basin press a gas SCOOP of if Bakken, can in for release, also middle lot the

you. Thank right. All

you XX-Q or in breakouts think are there quarter would XX-K in there in helpful Paul, I I that we're you now. -- forgot look right also if some to what the be me, pardon

from is question next TPH. ahead. from Matt Our Go Portillo

Good morning all.

Matt. Hey,

effectively clarification cut maintenance The maintenance something $X point mirror over first associated you one touched we If cost coming and If potentially flow relates directionally bit. And expect have $XX the current looks it negative is the holds commensurate free or on barrel, other development? guys capital number, strip billion slightly quarters talked the cash or to capital analogous you the about? facilities should CapEx of that that's neutral. on include like around with the just more to does program allocation, a a correct, to question $XX program which

All right.

think include facilities. $X it earlier number below is production some deliver it's the $X indicated what a beyond doesn't to include items non other it's -- But It that big the not it's I -- But production. everything. that -- billion somebody does billion. those So for

we're that in range. think good I So,

in remember doesn't that this the there's delivers year production $XXX XXXX, deliver future. million it On

pace and outside D&C is million adjust that of hundred there's dollars that of can there So, we year to well. as also and that several wanted the we adjust if our budget this for

are levers message XXXX delivering impact adjusting that not key do I'm So, the that is production to continue pull XXXX capital there. our there can we the spend

cash your delivering Yes, Matt free point, flow. yes, focused on are to we

be Yes, flow regardless. positive will That's cash target. we our

a just second question. then And

flavor your five-year about fairly a view and context today free in curious out a laid case a how in was a scenario? and ROCE the I or $XX cash $XX You've bit we if where how of and should that past. of couple at you scenarios different might for around a in could is give little growth look budget $XX case strip to close think flow and which that is us

not slightly. the budget our -- but we're $XX. a breakeven Well, still is It's is at lot positive cash below flow $XX

we've on So, adjust stuff -- forward as I we don't levers the we'll are flexibility go pull. what got and there. we

capital, designed years future. keep maintenance that's instance, for to flat Our multiple into the us for

of the wanted Am to we've one be XXXX that earlier, it even I got said can your that there missing than lower budget production. impact that a do part levers we other If do our I pull we or--? year, we've indicated. lot what not And like, would there's question of

think helpful. that's I No,

stock, $XX Should to really over of shareholders, expect you're prioritizing cash Just to we to given analogous et case flow, program? five-year free look like capital more trying capital you'd maintenance return a cetera. buying $XX at to kind plan to understand if we were the the that

years talking just -- about XXXX? you the talking For or are about you are the full five

five years. full the Correct,

of five-year view and prioritizing flow So, and shareholder free at just cash case returns. taking kind a a $XX

would with number in scenarios. -- I'd five it a and years, it things all lot. We've change would we $XX but other I haven't can $XX we below for a $XX. still want at change, deliver look factored would efficiencies At and growth. those at of would Obviously, say just be to run cost of

you'd showing So, I growth. be still think

spoke as Probably high improve. were -- in continuing the now, us probably target a we the -- getting things of markets once But a we're targeting we market. now. to as lot of improve lot There's behind and There's but to right what a number and physical noise Harold expect wouldn't earlier, the tightness other volatility. we of getting as markets the coronavirus of seeing

judge that as we'll So, move forward. we

Thank you. That's helpful.

Go ahead. Gail from is Stephens. from question Nicholson next Our

Good afternoon.

think is versus Woodford? SpringBoard nice in as the the market Woodford I XXXX growth the percentage that in to SpringBoard the the assumes Woodford up? not wells in just And the very is allocated Springer. as was how I with are that XXXX then SpringBoard you're good activity a curious holding the zone I current in And what of of having

Okay.

question that? -- of As your was far what as the part first

quality. Springer versus Woodford

a about far typically Springer. XX% biggest the as Springers ultimately of mean catch-up And but we've the and but Woodford the the I initially see is rate. versus it's Woodfords the are you'll the is performers. As quality they said performance, than the oil And the have a what actually IP contrast, Woodfords, excellent higher decline lower have really

the standpoint gas just Springer bit decline a nice but Woodfords on the or EUR Springer little the the on Woodfords are have really really relative a a mix so and to with rate And lower bit -- line little a themselves standpoint on performance the lower from much Springer because Springers actually oil. make in you very

Woodford when XX% comes we're think mix, think about take -- I the I'll at Springer. it and Springer, it, overall a to long I but guess the versus And we're Woodford XX%

year, about moved there. may It be the -- started we into units Yes. of actually XX% -- of the took We've Springer. we've this care

And so of Woodford. XX% the we're

So, piece year. the a Woodford will dominant more be this

about Woodford maybe And is going activity our this range I'm the so say maybe to XX% of there of year. in

really be year of higher percentage we'll And be this -- Woodford but so sure. for a -- and what doing we'll so is adding

you zone I that that guys a really the think year-over-year growth shows with basis. really on of are clarity that because that the Great. forecasting strength appreciate I

bet. You

Yes.

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

to on team. questions much for today's a today IR any earnings great Have Please address further Thank you the us joining very Great. call. day.

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

disconnect. now may You