Continental Resources Inc (CLR) 11 May 202020 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the First Quarter 2020 Continental Resources Incorporated Earnings Conference Call. At this time, all participants are a in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference call over to Rory Sabino, Vice President of Investor Relations. sir. ahead, go Please

and thank Q&A, you joining Chief We’ll to remarks Chief will and Executive call and Other Officer; Executive like of Operating Jack members start I Officer. Stack, to Financial with management Chairman; Hamm, Harold welcome today’s available from Hart, Berry, you morning Chief us. Officer. for for be would today’s Bill including: Good John earnings and call. President

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

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

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

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

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

earnings for taken Good response consistent morning has we you steps unprecedented thank and Continental to are and first proactive joining over to call. we facing, volumes. value the ensure In times are preserving quarter our

this using downturn operational further to our We’re refine efficiencies. even

attributable in already our and we Then, the we provided actions to of we of reduced COVID-XX we March, by Arabia fundamentally forecasting well year, to were disruption budget South in as creation. Russia. in oversupplied pace market When were deliver first a the a February, to of growth as half original the so approach value our demand dumping disciplined hit

adjusting plans our XX% position, the predominantly spending reduced team, and Continental for held acreage XXXX. the production versus our optionality our operations We in of our Thanks as budget. to quickly first-mover responded original portfolio highly by skilled by our

the unprecedentedly the and and Oklahoma XX% across curtailing Bakken low voluntarily to production in response up prices, May. to operated are began oil curtailing we In

and worldwide model a production to curtailment. see expenditures and significant is the with supply due internal decreased reduction in demand capital Our consistent external models

is US cuts earnings industry, reporting and overwhelm as starting As the the peer supply out not evident coming OPEC+, production commentary, gas they’re and to with capacity. curb storage oil of recent from coupled to

We’re here as which orders will demand the Oklahoma, get across we of have lead work, we back economies for the seeing to in to also believe globe products. easing petroleum stay-at-home increased as

Saudis, to The spite do of having and recent have taken the this demand validate this direction, in slump. estimates needed announcement recent with in than more and more as efforts down And demand right their morning XX%. steps

important overproduce continues. producers, as is discipline and to continue oversupply Everyone global cut to examples participate as UAE needs to of It Kuwait during and the the these this. slump capital that well industry, US the times. are as gas continue exerting and other not oil and back to market

will balancing by strong will market began that and show models and predicts Our even be XXXX the be XXXX midyear stronger.

months. We the and how model are and in you for production company to believe already demand the the remain over would that that our consequence of the few supply we it’s future as as prices. beginning up We to the know see manifest from ramp market to prefer next I recovers. formula current flexible rebalance best

will brought online. production experience and are deferred wells degradation quickly improve, We this as can not once performance market know back online reservoir conditions we also bring in we from see

this assets We’re call. shareholder will and on leader doing as Bill this later responsibly provide more our to high-quality industry. details in capital part a the about preserve our

volatile thankful market for midst the conditions. of I’m these President in Trump’s Finally, leadership

security. producers and how the are Energy preservation US US the Renaissance national federal will jobs government important Saudis market the American like highlighted shale unlikely and soon, time any this it’s recent flood downturn has economy the again I of this to just the While believe the to our to

turn to this to details current like Bill, who environment. regarding outlook and now the in provide would will our call over priorities more I

continued commitment Continental you, everyone. XXXX, In demonstrate to and morning, its capital. shareholder good to Harold, of the and Thank has our responsible assets stewardship

preserving are volume. we value mentioned, shareholder proactively over Harold As

to conserving our flow; conditions; conditions operations. for improved liquidity, slide protecting sheet: our priorities market be market our to include: preserving strong delivering X, portfolio balance Referring With for plan world-class we cash optionality when assets improve. and and capital-efficient well-positioned

we of Thanks a value. our preserving strength capital of has Continental and our strong lowest track operating producer assets peers. the amongst cost of our the teams, shareholder to are efficiency the and oil-weighted record

as community. costs X, Referring as cash leading to slide delivered bit breakeven assets investment consistently our by solid drill highlighted peer the outperformance. our quarter continue another cost, deliver are We F&D price and to strong operating WTI operational

and expectations, quarter over analyst day internal over exceeded and production day. both per Boe oil XXX,XXX XXX,XXX per averaging barrels our of First

per within cash slide well were the set in $X.XX X and issued materially guidance. delivered and guidance Total Boe were to issued $XX.XX at teams better our from $X.XX range X, year. inventory Referring Bakken capital-efficient Production $X.XX and results our DD&A our for and at consistent G&A expenses both per of of deep Boe previously the previously and G&A Oklahoma. than

flow which $XXX CapEx in our original the remaining previously is The to half we XX% $XXX be CapEx are the cash potential and of already will in the non-acquisition the first year. are the be we second of At quarters, million to in cost for seeing quarter. CapEx spent of revised lower. even over trend budget half positive strip, spent guidance. reduction in three the $X.X targeting next over This We is million billion, current from

were steep of position. XX%. well March to an we maturities repurchased as a million and Included our to facility, strong unsecured amount demonstrate billion reduced base borrowing bonds $XXX is With average redetermination and April. early retired that principal debt the These to we $X.X discount par years. no weighted a to our a have credit of liquidity in We having imminent continue at repurchased last late over commitment this net over four balance as from sheet, strong

volumes to that flow clear base of oil our XX% we all operated production positive of of curtailing our at mentioned this May it are base. by in prices. is today’s about production cash make or Harold I XX% Boe total minimizing want

I’d and the optionality like a continuation In of an market, of value. have any to-date of anticipation flexibility highlight of preserve in agreements from we to to oversupplied oil further possibility Continental’s sales the depth refrained entering June.

and momentum our our to production production This In is we flexibility, curtailing gas gas to perceive the June, enables natural for of we continue our prices. us constructive priced in a that market more intend natural to sales eminent. that take targeting defer our production maximize oil the plans, to advantage have with consistent higher selectively stabilized,

X, original slide capital guidance. I to spend reduction a Referring to XX% highlighted from our

year. count We will our the also rig reduce over beginning of XX% the from by

expectations rig XX rigs to dropped by for rigs have four utilizations year-end XXXX. We about from our

remainder one We to the the have running zero crew South and Bakken stim for average stim XXXX. crews in expect in of the

We suspended and are and liquidity prioritizing reduction. dividend debt our quarterly

at we While the have X% share $XX.XX repurchased X.X million of more our price share, now suspended an in our represents average which repurchase than quarter shares per shares program. first of outstanding, we

production. acreage the commitments, majority minimal long-term by held is our service We and of have

decided market As to the and guidance. by uncertainty caused has remains environment current company suspend XXXX the given for dynamic, issued further withdraw guidance price its previously COVID-XX,

guidance will issuing continue reassess to new market evolve. conditions We as

their In and operational especially for members, times. our commitment employees acknowledge few and those thank all closing, team of I to want these during to the to take safety moments unprecedented excellence field continued in a and

across cost in Our exceptional savings have responding capital capital teams in exceptional and deliver nimbleness continue to production efficiency changes operations. and all demonstrated to targets and our

team, their The put risks, deliver the across on of family sincere and and organization. each every stress one. Continental a and placed members of great and deal imagine COVID-XX on be than a and related each part one My the the each them, of our yet compliments team outstanding a every go restrictions more team deep of admiration every continued I’m and to capable and performance limitations to I team of it. proud can’t committed Resources part to

to that, back Q&A begin the ready the we’ll to call our and operator. session With of over turn the we’re call

Thank you.

Instruction] first from session. Jayaram. begin question question-and-answer will the now today go We Please [Operator will Arun ahead. Our come

views, D&C some Yeah. a John, Good I could today for - you the your like sustaining to looks the the Bakken get capital if color perspective wanted perhaps on us give total from morning. wondering for what South? and was I on versus

capital? asking about maintenance you Are

correct. That’s

Okay.

- question. fourth fair quarter every about about So pretty much very we’ve maintenance just the capital It’s a talked quarter.

now. if So those They’re production look first are quarter, levels you we’re fourth the that there out quarter at. to

pretty So consistent. they’re

middle a seen $X questions range. billion We’ve always companies. maintenance down billion a $X.X a talked been straight fairway. on much being of the of to from very past about lot of the the capital in D&C in We’ve I’ve lot the for

in it of at of some a look production. levels lower DUCs, them of them And of some of factor in some factor them lot differently,

think being and DUCs, in and consistent, off that first some hold several course, applying $X for fourth that some years we I a others billion could billion just the normal just but the not flat of applying in benefit those hold not of $X.X other the to the do, quarter things numbers. quarter

of factored just things, If we those reduce lower types And were right to to going to But down going additionally, we’re as see the can with say middle that to cost we do for continuing be benefits. one, to we billion fairway, reap number of the the and $X.X year we’re efficiencies $X I’d could that some And, were forward, additional down I certainly. apply further things even other DUCs or of in. billion.

did the rise Great. And John, the balance just my quarter. cash follow-up, in

the on the thoughts managing just And get could to broadly I facility, like you balance wanted but I talk it looks balance was about tap in did you if just So on sheet the wondering your management [indiscernible]. the sheet downturn.

from Obviously, Thank savings lot you, Arun. things of we’ve perspective. Certainly. cost a a done Yeah.

remarkably on G&A You’ve quarter. $X.XX G&A first already low seen from reductions a the G&A; in was in what cash

those we’re strong categories. So in very

the corona banks our - strong. are into and Going very

strong. well is debt-to-capital We credit only in really covenants, south we’re covenants and realm and even that. have, we’re don’t not we facility that approaching Our below in one of any have there,

up Our debt would covenant by hit to billion that $X have to level. go

told we’ve cushion. lot you got So I a of

But of ahead types I’m hiccup cash before remote ever of if none how on the in would that concerns with a to that of and have hand. little we with debt there hand to us due with Because these speaking would remote work? interest have everyone virus have that cash, drawing banks payments going in decided make other coming into sure to things, bit we systems time that ahead the payments just in the work, cash this were a go with with just and to moving just things of to, dealt work virus, moving with

system. the probably we’re So in maybe but there to wanted make any we weren’t cautious, overly sure hiccups

did bit. we a access So

Okay, thanks a lot...

a Obviously, very a revolver got we’ve of with liquidity. lot large new

a Great. lot. lot a of sense. Makes Thanks

Thanks, to Arun. Good talking you.

Our next Capital Brad ahead. question RBC Please will with Markets. Heffern come from go

Hey. Good morning, everyone.

Brad. Hey,

on the shut-ins A question hey. -

in prepared are talked that you all in the wells are comments flow about how positive. So still the cash shut

there the the shut-ins we where component so, price of there And even linger oil if if chance really crude we curious the you’re looking do recovery to And certain related shut-ins a just a that see is price than more I’m we so, sell some sort supply/demand at? already? a is have see or are in if for could

been orchestrated And based destabilized. And the effort. flow, debt it’s Yeah. a has we look been question. is world, at we’ve lot side the Brad, cash in the been internally Thanks, you of doing destabilized analysis world. view and everything good clearly doing supply if combination a repayment. been we’ve way is value What that present optimizing on The a

Obviously, significantly starting that destabilized. seeing to We’re with was COVID-XX, demand side correct. the

come starting We’re that out. see to

top a on that, market mechanism with also Merc destabilized of the world. negative seeing And in we’re pricing the going

in So back of of we’ve a that taken destabilizing approach when taking very position want kind with this three deliberate a very we’ll factors, on. to look our at put those the kind manage volumes we

point production analysis Clearly, yes, look of back in you and an some time and to from view, from say, a contango point on view a should bringing can point this do you fundamental of on. at

see you’ll imminently, should the probably - You you you’ll see as at start the that production I’ve back in said [indiscernible], to to that fundamental see doing doing At look start that same from start bit, into time, to and bringing contango comments. the little legging back on. - shift probably as us my a

cadence as you Thank I year that. of then for still for talked far Okay. one you rest the about as And crew stimulation guess in the goes, Oklahoma.

potentially year for no of the at Bakken is or that’s chance completions are some there Should said Bakken You Thanks. there assume a currently. crews come we point? that the that the rest case back

lot at But and whole that bit second Yeah, cadence guidance point the a we’re spend the not fourth, quarter not of And going difference call month at looking time, quarters. it’s the you’re bringing which stim crews then as and to well, we’re judgment than in start then is fundamentals the by what are faster going the determination a the month of take rate, back to at, doing, little between to looking the the at Brad. make this a that we in. in a making when look provide but and level third

Okay.

that below also. budget billion actually we’re $X.X Recall, Brad, our we mentioned

So there’s flexibility.

Okay. Thank you.

Please will The of from Bank next come go America. ahead. Doug question with Leggate

when you fourth question, sustaining but you What maintenance exiting guess if looks to you John, like. like I everybody. could really curious wonder the if I ask clarify like? I’m morning, you XXXX, about talk talking you just Good Thanks. I hate And quarter to on I XXXX. maintenance capital, do rate the beat exit that what were XXXX, looks think quarter about first in capital capital

I a I’m production, the in looking little the sustaining so do for both essentially that. if could along by same preserve goes clarify I just the rate capacity And, the number? production you the exit shutting that guess capital further, on guess, they’re with I

a lot Doug. in got You’ve there,

year. guidance So, color retracted obviously, We the like that you for would on we that. recognize more

go back clarity the here about production forward the on, balance we Let we year. bringing and the and to the for that us get year markets give talked you as of we’ll additional on back

below towards Obviously, it not be when talked end; range we with and go savings I efficiencies still would come production off the lower if you’re number a That your capital expect would within little got some. cost maintenance given the end. you’re you might It that declines normal to producing, bit completing we’ve and be might down that the about.

such lower remarkably than we as that. If things in, other factor and things DUCs be could it

of We and color a fourth rates So more at. there’s production about lot we the good flexibility we’re where a back production see cadence bringing feel exit on. you of there. lot We’ll give quarter of on as

dealt in reservoir we’ve perspective, the for your question. think part Look, a with was of things a and Bakken last I From well the weather decade. that over other

impact of the there’s Our shutting and we’re in history experience our in plays production. in us shows no

to expect have whatsoever. So impact we don’t any

imminently what price. believe the commodity So, we production we’re yes, preserving capacity into an will be better

we to still should of to clear think be as $X.X a So exiting billion XXXX, billion about then, $X sustaining capital number?

exit it think the you be see maintenance that lower, for capital I say would could well. when I but let’s we is. And on update as rate you guide we’ll where that,

there’s I appreciate know may... answer. we’re I precision I so not if the here, Good. pretending My follow-up, any

guidance. We’ve how we make out Yeah. there tried you and to obviously, a bit always open. see to we’re good be giving But, little to this need transparent plays sure

does. here Continental. really rest and And a the preview from bit. Saudi as any it. about I some the XX% if the you’ve vocalized, very lot a but cost chime we might a guys oil doubt, increased all Understand a completely. business people, if shred the when dumping assets not XXXX for but My But step for about Saudis started supporting is everybody lowest back, take And, without And as follow-up, in just may the mean well. could model Harold, by the you of of have US if little in price. go-forward industry may, whole you this to been September a of John Harold, I of want I probably as it’s

US subsidize a we’re not argue they’ll the free just could market, really saying anymore. model that basically in to going shale you So

like this and what to there? wasteful issue strategy does the and of the I’d you Thanks. Coming it Commission, September as not, response the I since words dumping leave a Continental the why your So really overenthusiastic like of this, as in production side see guess, we’ve out had growth look or given XXXX. other I’ll Railroad Texas

of Friday into to to oil Certainly, issue. XX. May atrocious discounting some But the picked they was in time from was a dumping down May market X their to price made do announcement it XX% when They Monday, till that. try

don’t on So they have it a doesn’t this they’d but have again, this if dose they’ll work. [ph] think was you a if [ph] dumping never the issue. do that I know would end

And they about altogether can X and increased their production you see what’s of the water. by a million result barrels, with on floating that

can’t have and industry hurt there. in reasons this it future in out protecting So of national a the they to future. militarily them are this lot and to and take them of not lot there we’re down going try do security be But

on forward, question. good really going Doug, So, your follow-up strategy

think with United think to quarter’s States the out see whole that what starting a you’ve is take of different you’re that I report. seen the been industry going lot I a comments to this in and approach, the have in

say, You And very we out saw effect, go going then and took not that market position. us overproduce to the position. that last for oversupply continued and we strong quarter a we’re and

Now, market and here the that’s that capture share what business I recently. future the in sustainable US share going is model not and past was was an I think what think industry probably happened the seeing the pursuing is market in to important rate issue is the be we’re

in would the So see US expect I years. to growth next those few over attenuate rates the

Continental? on for thoughts Any means what that

we time would but this And Well, going growth in those capacity at more, the rates. base point have do what has saw we lot providing year. deliver then we established for you not we we’re as be this thought guidance to resource to

it. Appreciate

Harold. ahead, Go

the were growth they that I forth low of shocked everybody basically - back of year, Bill’s to point, - everybody but put don’t little think all if beginning those operators the we a I have the the numbers. felt and other of by out there at bit growth around come know to percentage of percentage kind

did. So we weren’t we far off in what

I are answers. out all guys doing well you I hope Guys, you. Thank appreciate the And there.

Doug. Thanks,

Thank you.

Stay well.

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

Thanks. Good morning, all.

morning. Good

Good morning.

speak your on approach I’m are voluntary to whether for and or curtailment in your if back shut-ins simply approach, you could May. to April well focused really full on more Regarding curtailments pinching you of Wanted Regarding selection? and wells? see pursuing strategy broadly terms

what operating analysis Yeah, model we’re it’s the it curtailing to pretty shutting. we a costs granular that or operating just of most and on in what end a and up your guide internal in determine not from use to most we differentials, we’ve always. shut-in us got to well-by-well the an that’s everything And GORs, using matter, help but full the that’s looking time, this, was because to managing costs, efficient

to anything Jack, I don’t you want know add whether else you that? have to

No, there isn’t.

the as could future your curve, required follow-on well. as play it’s economic the imagine to question, comment at there’s some differentials I views also And you function a to but on of wells a on production? conditions return

forward And over of that go and WTI commitments more volumes. It’s has we’re to to side, and negative supply the fundamentals big change. the how the was destabilize I clearly, with we’re had destabilize and that demand go things and all shadow fundamentals Yeah. to the to seeing by market the us had as We clearly mentioned caused pretty a changing. the Merc to allowing the earlier. the those of three nominations we We, seeing destabilization put that

million what every the United sold than reduction storage everybody understand Cushing April sure that, producer And result States impact in there’s number negative for sold April price the $X that I’m in for April on each in saw of was probably to guys there that barrel every seeing you average as of And WTI, of but more the then. the run and has price probably the barrels $X we’re now, and were in X we WTI. on a numbers,

even there’s tighter so, market. And storage

as pricing And think that not. to to so, watch closely market we’re or destabilized, if I going continue mechanism the it to continues see

helpful. Very guys. Thanks,

Thanks, Derrick.

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

Wai. Good or is afternoon, Hi. Jeanine This morning everyone.

Hello.

question... My first

morning. Good

efficiency looks Hi, good From the increase this year there’s first slight is a the question. SpringBoard meaningful morning. the in like for Bakken. for efficiency. Thanks in question presentation, a My anticipated taking and it capital my improvement capital in on

price just how do maybe color more little you this So see recovery. you if of and wondering, improvement much can on bit a we sustainable think is this provide a

the and start results Well, thanks yeah, question, And, the for continue we from and Bakken begin slide the there to Bakken. And chart emphasize the repeatable off Jack. I’ll is you’re X strong just I’ll with the in deck just to X start with in there on This top to Jeanine. get referring here. to with a X the slides right

chart. I think that’s just amazing

basically how of You right other quarter years, see time. you plus performing basically these three XXXX, over and line first that quarter, see with are can in another our wells period here in each

and And so, about just love is its remarkable a performance. it’s just the dependable what Bakken a that’s we repeatability,

to the So with efficiencies of come right-hand first barrels put to some produced on you contributing a the in play, about you we’ve you see chart that the cost period of efficiency every $X,XXX this for three-year on spent. bottom to metric also increase are perspective see And that XX% that the try it’s over time. these months up how the shows XX can capital basically

efficiencies and, lot in as fact, your of they And people decrease time are capital thinking, goes on, to a to going increase. so, are continue

impressive it’s as pretty the me, opposed to innings that in middle to considering Bakken early innings. So, we’re

facilities. you seeing and into many There see chart, if down get XX% chart, we’re that’s the go but SpringBoard about bottom here, you when here to at, a also Now, drilling so are look reductions But cost SpringBoard you this. page things increase. you can going And efficiencies to of early see about say, top-right on you X, XX%, cost complete again, in the innings. well your

performance right. operationally that’s of with gains much the increase across excellent result making significant and play, we’re efficiency that the more in exactly There’s SpringBoard, the a You’re just the of combined rock.

And starters. operations. efficiencies You’ve then rock, have reflect got our good capital these coming for from to the

the it the teams And and the market. operating these how they’re barrels excellence themselves strength to so, of just just shows assets of again, bringing on our I think,

you Thank it the following question, great. Okay, maybe helpful. question, pointing up little the towards follow-up answer. Doug’s bit my Also dividend. are comprehensive Those for a but charts really more on

that to you itself more recovery, do the accelerate, to reinstating can dividend? does maybe see conservative just forward, that we Assuming spending that lend a capital approach dividend going a price so suspension

was suspended other dividend along low The preserve other with G&A the made most things. cash we’ve reductions this and Liquidity important environment. in cash and are to in things

it; that. So that component a was We we suspended it. didn’t of eliminate

is ultimately, of the board other, decision So we a that lot of that. that’s something can review would optionality, a way getting on or ahead in be obviously. the to I defer one so But, them board speculate But future. have the and I’ll

my question. Okay. Thank taking for you

Anytime. Thank you.

Thanks, Jeanine.

question next Neal ahead. come Please with go SunTrust. our And Dingmann from will

or morning the flow cash if just priorities all. your including external stock quarter. ago view it of buybacks, or dividend would you towards of been asked, top see debt future Because you this way place growth? wondering all John how like stock I I’m to potential had and done wondering that long this throughout question free has Jack, if organic first looked - the I of different Good list I repurchase for repayment, you reinstated or first so My - not recall, want tackle kind could a

progress the now. how wondering just view you I’m So

it’s Yeah. We - debt reduction. February there so done that say February early did today - now. we would haven’t we’re - January, I not

presents in a bought of would be $XX we preservation the that, at them a debt since But liquidity that forefront we Right trading at than in say, doing They’re discount. we debt now, total at that. that and bonds If items. on lot all I saw again, we’ll itself lower $X. discount eliminated $X.XX bought of opportunity of an of a million evaluate You would those reducing that. essence,

talk potentially the touched Jack. I’m year, John. you a go just the of question potentially was and Jack minimal the Thanks, kind standpoint, the activity attacking least little earlier wondering, for also And with you for second a more little projects how - bit rest each? at the from would just activity minimal Long you on broader about, - Creek curious, larger on with this just of bit a having I my about SpringBoard could

Right. look about with in we’ve Creek, there pace. got they’re been count, wells those I at, - just a to really drill ahead drilled Well, course, mean, a and XX once we for the instance, of But see decide aren’t go of assets reduced places, rig develop at the and place. when in And this anywhere. you slower going in the both little to there basically we’ll stimulate take the production XX% Long we ready plan well. have to facilities And with bit begin

So in to wells these shape, where have are unit and of whole areas good Long Creek the is don’t unit develop one this particular we in all at time.

and now. of sense. strong slowly given rig of result anywhere. as of as proceed count And pace as on so, going again, we’ll a this X development SpringBoard, course aren’t Long more But, is, Phase the They’re drilling then I lower guess, assets And it these them you maybe of ever bring could say reduction. makes Creek, will as

sense. makes guys. Thanks, No,

Neal. Thanks,

Brian ahead. from Please come will Sachs. go Goldman question Singer next our And with

and you morning. good Thank

Hey, Brian.

that and does the that we wouldn’t In when would up investment plan, million lag $XXX a The something ramp had had lot the see to come original on about when can talk should And XXXX. think or you you either wells how XXXX. CapEx wells of revised talked coming online plan call, I about original the about on believe believe, XXXX between last for like on budget, budget, that current on growth the or we later were I in in impact the start your until declines? mitigating

that. after six to months Three

we come you’re we on, on big larger volume. bringing can You But pads over developments, look capital doesn’t on applying bringing back historically large immediately. on we’re we’re it once those start because and us doing once start

the a bring drill already of end where the it’s of stage all cycle, of those but and the probably things. depending fairly of to quick in adapt it’s whether months that we’re that it’s longer and say just of would six robust types or pad, towards I have to at ability we whether drilled, to on So size it, on, three

already fits market it fixate But well and it’s the as there. obviously, something’s don’t prices, looking ability on And, we’re the So the and completing, value. shareholder quicker drilled and we contango fits into I to it’s market. think into in longer-term just our spot values that at enhance views of well

based Great. - whether on know your shot you of current going and at what is secular? where year-end successful don’t the to then it’ll is quantify at any And I’m to cost up see on seeing, take cyclical but that DUCs and - my efficiencies be Thanks. comment try can follow be could you’re plan? your it, what ability and maybe a you I versus that to then And

Yeah. that that in about going at XXX, XXX Brian, in year-end about be was to in we’re probably progress range. I year, think, XXX number. wells I’d wells, probably say Last the we’re

go. for there So you comparisons,

part your question the of And second was...

Cost efficiencies.

...cost efficiencies? be... That might

how temporary [indiscernible] And Yeah. be much forever of gains versus gains? costs would the

to we and even call are that at just we’re verify, referring dominantly structural looking at the we’re efficiencies, before to cost here. The cost but about that Yeah. this efficiencies point talked this

sustainable XX% would be going in range probably XX%, say are And forward. so, of and to I’d XX%, structural you the Pat, say, going

And this Patrick Bent. Jack. Yeah,

I think correct. that is

able in what bottom. to structural majority advancements, contracting advancements, in so new XX%-plus nature, done operational in really reduction gain vast the been That think of touched technical and to we’ve of are terms time. I a in non-productive job The pricing are nature. our structural pricing. close We’ve good

good a again, So, number. structural the XX% is

they looking to few Brian, teams think, some really continue and the impressive. some the And, the times, of I here do I have quite aren’t we’ve mean, them now - improve just you, stone elimination, area. setting they we’re the drilling records rigs been going leaving wells been teams these the We things And unturned last we’re downtime the with in wells. in we’re weeks are through some that have for to have efficiencies efficiencies is field. any just the of right what and able do. the in can ways with drilling because And in our

come and to downturn went efficient going out of last stronger this the So more are as than in. time, we we

you. Thank

both of technical we’re It doing a repeat already am in is so geoscience and the side the to last to manifest our I significant, lot going activities. go our And to speak, talking actually in of we’re and comment we’re engineering about. back activity, this at Jack’s from from and look reconfiguring the gaining emphasis. look engineering and for activities that at Yeah. that from benefit seeing that Jack’s savings itself amount pause

look the at we cut And cost we XX% saw out benefit pause, redesign. just we’re it, little activities running of a stimulation from better. stimulation bit some by us and kind having to so of to fast because gave understand of chance sit a with all a at a take And came had on. data This that we the going - probably the and time look actually their

Thank you very much.

Our next go with Noel & Please from Parks come Palmer. will Coker question ahead.

Good morning.

Good morning.

morning. Good

future hit us stand just place had you you LNG? everything kind And of I on in some refresh the anything wondering oil were I you was on was out in us could were you where working of heading catch arrangements marketing that hoping early prices. in before the if arrangements. you anticipation year also of earlier if that could gas your on with those up into put

LNG selling any We going into we’re specifically gas the Yeah. don’t contract have market. that’s to an

day million about what now flowing a right we’re is gas. XXX in We’re

the So South, in South. we transportation quite that bit lot gas, here obviously, the a of with benefit a it the of from have

just I you you start look with And, as - up Great. when ramping mean, again. to activity ahead

product mix are of we the priority in in assume the based list that on the gas varying actually higher be sustained? does the would any Mid-Con, particular heading different see improvement areas we areas there if across up that get the Just

No, I any don’t area think there’s in particular.

going areas to influence a being actually Midship lot in Oklahoma, be and in of the in I’m dynamic with just of Midship that and there’s could Our speaking their gas just particular region. Mid-Continent taken coming improve STACK are you the have is, to coming on, being really on. out SCOOP - prices prices

an the we’re price not provide uplift could it for here so, in And us on actually basically because Midship.

other much So, usual. we’re than hopefully, as pretty business that,

on of far virtue AFEs. cost sort component follow-up, as what’s the Okay, great. of just to of And your service as by going

more. a side could of the side there’s of have kind better heading to not do a of maybe lot kind you are or heard from a just about and of where sustain cost rig in a also vendor cost cut have prices down in up wondering proportionately whether sense the the proportionately? do the We to event would looking opposed And savings as you looking vendors on environment And this side? frac think the think rebound lot you the go you activity even of to drilling continue completion those

earlier leave the No. And we XX%, currently, to generate structural of mentioned little the I we’re which a bit to would plus pricing. XX% cost able that other subject look you minus, think savings when that is at

up through savings And or able that that the percent a moves structural the to that there’s two associated it with pricing is, whether a so, technical variability is generate of Really, nature in small it our or percent two. aspect or been the teams. down key are we’ve

Great. Thanks.

Noel.

Our next Kumar Nitin go Please ahead. with Fargo. from Wells come question will

Good taking very you for has bit. my afternoon, my been this question slide and cost thank to addressed some I guess show But I you little know peers. the efficiencies X, question. first compared strong - a gentlemen,

your work back what bringing volume? I bit the season. back what biggest to I’m trying heard this mean, factors earlier? come this we’ve probably you of little a far taken also You’ve costs understand just so your that are allow is gating to to earnings curtailment for Do

Yeah.

at So anyone companies the they’re else, producing clearly other that see and that when are the that of you most producing, like suggests higher structure cost that, - cost.

be clearly cash if positive so, producing at costs. costs, would positive And at we producing those these flow cash they’re flow

we that gets the there of destabilized And took see so, We it comment just to earlier were production fundamental that. our back made. that that pieces off and we three were

we to commitments If buyers to. we we that the go production would’ve to production and in back but had delivering even preferred to nominations further, had April, actually that you reduce the up we ended

And we’re is so, of strengthening to signs and it. for starting that what we’re looking fundamental see

the why seeing then demand fundamentals the coming is a the one the going imminently that more on supply, pricing the at bit needs And still it’s one stability how going one future. the is, pricing little as think to start That’s to back. third I we’re in the here That’s to the mentioned looking be the get that result side is we market of is mechanism. done a we’re strengthening in

can clarification. get a I If

June that nominations Does now. you May? mean I any is for that not say were right that for heard I think you or taking

For June.

already nominations are with committed the We in May.

next ahead. will our question And Scotia. Cheng from Paul with come go Please

morning, you. Thank Good gentlemen.

Hello.

I think one first the hear that - Can me? you hi.

Paul. Thanks, Yeah.

more Bill, at morning. curious Hi. Bakken we a to if COVID be the some higher that this Good see when going Is spend environment, to you in where are is Yeah. that impact going and point in just money or SCOOP? favorable first?

level? lower we rate that activity that do also going level back on oil go you’re lower after original point have COVID the is price, activity And a a if $XX your that level at activity to growth or going see into budget to

growth this we we five-year and start to highlighted rate year a attenuation earlier we that the over Paul, a see had of year with I’ll and going plan. the the last that were this rate one, that in growth

expecting this to now. coming issue and to all market we’re that fruition And be it that the beginning so, we’re share going realization we is was right to see

showing Jack pace. strength that. is think of a more inventory. had inventory, it’s the ought so to that of we measured inventory slide was the I So of function just do a This and And to a not we little the attenuated bit already function going

the news strengthening there the determination fundamentals the good what on a oil the the is the SCOOP, that gas as we’ve do oil whether the we’re you’ll to high assets full And really make as of to flexibility to to the The are that think range in fly And of assets far from focus. of as driving in see GOR. going that. go Bakken or up got fundamentals the I got South that is everywhere versus on we’re the that. seeing got GOR We’ve North strong low we’ve

so, have, have we that And with that portfolio the we optionality.

go Please with our Nicholson Gail And question come from Stephens. next ahead. will

about Good environment, price morning. on you all? and and workover talk that in has your on changed at Can the program current thoughts philosophy the your recompletions

Level of workover activity.

it cost? Was

On the your and Is recompletion? workover question? that

Yeah.

that going are and how price philosophy thinking that the that if current at about Just program on forward? environment all changed in you guys has

that the year workover a we’ve of program that. we From we beginning discontinued the dramatically rigs have like well necessary we’ve we that there, amount don’t the minimal have in in activity Well, few this currently as we critical in the pretty Bakken well. recompletion a that of reduced that and active, had workover were for the have felt kept a count active environment perspective, but

a their done recompletions. our still in of Some amount non-ops They’ve of a have fair got system. few

data, we that data as something So and forward. bit quite get a that we evaluating go that’s of we’ll be further

there. progress some still there’s So

describe spending, pretty falls discretionary all eliminated what Yeah. much Most that we’ve of and discretionary as we into spending.

Thank you. great. Okay,

conference the This will for back to session. like remarks. turn today’s I to closing question-and-answer would conclude over any Rory Sabino

any have us to team, for the today. great much joining IR very further a and you address Please Thank questions day.

you. Thank

Thank for has now and concluded. you you disconnect. presentation attending The today’s now conference may