Continental Resources Inc (CLR) 4 Aug 202020 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Continental Resources, Inc.

Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Rory Sabino, Vice President of Investor Relations. Please go ahead, sir.

Allison. you, Thank thank call. and for us joining Good you today's on morning, all We'll Harold Chief remarks Bill with start call today's from Executive and Berry, Officer; Hamm, John Officer. Hart, Financial Chief Chairman; Executive members President our for Officer; as be Chief Jack of Stark, will and management, as Operating well other Q&A. available that contain and projections, guidance. Today's call address will forward-looking statements assumptions results may statements. forward-looking differ Actual materially in from those contained these SEC statements the refer company's filings for information to risks. and concerning Please additional

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

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

to accounting a please presentation these For on www.clr.com. the of measures Mr. reconciliation been over I has to to the investor Hamm. generally updated Harold? that, accepted website at turn With principles, the company's posted refer will that call

joining quarter you call. Yes. earnings Thank Good morning. our second for

First, last I through dedication for want employees our to work their and hard thank quarter. this

instituted and in return intense protocol, employees Over they adoption of of or XX% in the an are successfully very field. with the our back past the workplace safety X work, and a office testing the successful months, have to voluntary

flourish the have create the our to experienced remote teams maintenance opportunities high. day-to-day but new employees takes morale Continental, and we very on-the-job productivity to company. is make deliver At it for collaboration As okay, work and of

to enters better a call, COVID-XX mortality industry. our one with very about effective this last the quarters patient a application thought lower barrel. the of about have to gained and experience the will welcome employees we rate most vulnerable discusses Our proud phase $XX most At the new with thinking of We a for our for our time I remain vaccine of populus. was drugs COVID-XX as of the more volatile focused challenges on when faced Bill hear am what WTI process efficiency results which you upcoming treatment at due delivering in post in the future, after exceptional capital the gains. of country employees

to suggest crude as feedback seen per market believed we've in to our initial XX% decision for production rebalancing. and June. up anticipated, has this with range proven work. the value-enhancing $XX oil Recent has made the and inventory and price leader operated barrel data, to demand recovery see we a evidence supply oil and -- we curtail when can that the open improvement are participants industry As to initial anecdotal we improve future of our volumes in Decision to prices people get We preserve from been and back aligning demand be decide global in economies a thereby defer Continental activity conditions. May strategy.

will sake. interest growth to We for growth's over continue long-term production prioritize shareholder

I the near-term for beyond. XXXX continue to While inventory half position the year will rebalancing second volatility, and see in we may of ongoing believe us nicely

While continues substantial of market uncertainty can demand to opportunity. times recover, create

meaningful demonstrates shareholder an more our fact, than current with assets reflects and deliver is potential team future teams, In management share such Continental's opportunity our confidence aligned value. value. uncommon our in purchase My recent and to Continental's. my There no price shareholders

This invested we access management been personally our to XX incentivized of top our steward bright value with and we holders, doing While towards this often driving a enhance our and capital. future. what and always to XXX% as create in can committed prosperous shareholders We're to alongside all we X highlight to responsibly right have team alignment, value. are team members management has

dependable providing website. environmentally This a manner. long-standing report socially we can to and an the pleased on second During ESG source quarter, responsible our commitment in to release be energy found low-cost, our which were XXXX report, highlights our

company. energy dependable energy supply of any providing of fact, low In the responsibility cost is social

United to We continue standard operations the the to power of a manage responsibly oil and the industry, are and our ESG we'll to our developing and proud commitment States gas for world. new

industry, as the for Lastly, Coast the Best I American the founding became part being a Association. advocate Practices Gulf of member of our to strong in Select shareholders Task commitment Force

Our goal reflect the territory to barrel of clearly WTI fell a value new The the the fair the was market establish standard broken American when year. to this earlier prices competitive negative market. was to global accurately into market

faced pricing coming gas to Chairman, Bloomberg. This asked now headwinds be Continental Bill. industry Carbo, not their global, investigate now call as future I to Their proud hydrocarbon Heath to reliably market of out the reported phase WTI, and independent turn not American-produced gone discounting will I for forthcoming but waterborne-priced is from benchmark well a made June, to confirmation Argus, American a form is And progress agencies, U.S. and leader a to like count over leading X us business. the with CFTC extreme that led of this to the U.S. energy am they for AGS. oil to have establish is a and has date to We establishes price sweet U.S. time have. exporters and crude. stable in light this a positioned and producers replacement as months being the global report AGS in world it's oil. I accurately by Platts renaissance key provide to a believe would through the firmly In net barrel. is U.S. crude. year, the Despite to the of producers the more AGS

well to demonstrated unprecedented the global I have Thank shaped that hope Continental events first-mover the commodity XXXX. all you, in landscape safe. and response good and a proactive everyone. Harold, morning, you're

the to this during deferral better of quarter destruction can Slide per operated we prudently oil shutting-in low-cost, our Even are of to capital-efficient volumes, is by demand estimated The X, original WTI. operations XX% in generate future year, a from second see for on we volumes you flows reflecting after have responded to these assets. approximately incremental reinstating As million for about guidance preserving cost $XX $XX market environment. the cash at attributable COVID unit production

our our shareholder value protecting cash maximizing world-class our sheet, flow, to future preserving Our to commitment low-cost balance for priorities be and maintaining assets leadership. industry continue

this, As part total year-end XXXX. between $X.X and by expect to billion we billion see debt $X.X of

we for will our Beyond are $X or billion a debt longer-term XXXX, $XX reductions. our about the expectations more these X for assuming stewardship, targeting years, John details to less X price over environment. sequential next provide

delivers consistently Our gains improvements again like abilities congratulate I'd a and continuous them on team's in to done. efficiency. cost well job once material

Bakken, and Both including clean efficiencies optimization practice and XX% Bakken of overall practices, In South well the X, drilling related higher performance million to lift costs coming well. structural utilization in as to by the the of South to a completed coiled the and operational and million efficiencies improved design XX% $X.X operations. we these artificial driven aspects In million Bakken, per house from reductions capital completed per we've well gas full $XX.X evidenced across Bakken $X.X production well our in reduction both are execution have in are operations. achieved South, lift. reduction to the from cost as well well. we XX% costs Slide XXXX. include South reductions all million to of As from achieved tubing increase the completions costs, improvements completed facility our These XX% expect to completion, a structural and of on drilling, the are South, these $X.X

and As our times. enthusiasm extremely of Harold in mentioned, spite morale, high employee productivity is challenging these

and together our company, of are leverage world-class we the employees a teams our enabled is has differentially advantage. This our keeping our to foundation continue and as DNA manage our operations of to view performance. us distinct competitive Our a best-in-class and part

for strong beyond. forward, second factors half positioning number us there As a and of we a look of are XXXX

a key items. are Here few

June, the day our this First, previously production BOE expect gas cubic production Oklahoma in with of month, curtailed of July line bring market about deferred remaining have conditions. our July be favorable we volumes in approximately dry provided more and online XX day. quarter of volumes XXX,XXX on volumes production the guidance terms expectation to this XXX,XXX back cadence, net of guidance, per also feet an will we to million with we we exception highlighted of per Actual in second when in recall

While we on basis, quarterly provide thought to appropriate a has guide was do it year-to-date. some production normally color we transpired not given what

BOE to between and half per of at to quarter range year per production XXX,XXX will expect XXX,XXX XXX,XXX production the expect Consequently, the XXX,XXX third in day. BOE to we exit day. XXXX, We second increase and

$XXX flow half cash for flow Second, full positive WTI of of million year at $XX the be project free million cash we in $XXX in approximately and XXXX will the second XXXX. or XXXX

we activity, see more with debt we and ability a incremental be with priority to to paying align continue down If the will along to cash sustainable Our flow first increase debt. reduction. managed demand discretionary level, in completion have consider additional a supply

As June about we XX, to progress progress. year wells wells have about in with and XXX XXX the expect end of in

capital will the first in low level lower the XXXX compared Third, maintenance be cost activity, to to Fourth, keep be $X.X decline XXXX of efficiencies, the progress billion to in expected maintenance of year-over-year rate continued our in with drive production in capital the as team enable along flat XXs corporate wells lower a That, in with will or a XXXX. a of our us XXX result year XXs XXXX. aforementioned at upper lower. our with to year-end,

are positioned XXXX. We to well production in efficiently maintain

around market provide have teams We as expect previous to together have next conditions time early year, kept guidance downturns. monitoring historical we have the our our challenges will we XXXX frame this continue and done year. in faced near-term Despite usual just we

workforce costs the of and now any costs to us over stability, capabilities market we John. result, environment. will unique shareholder a continue inventory in depth virtually operating enable I'll As alignment to turn well value lower. deliver our And to future our and technical management our combination call drive

Bill, and good you, everyone. morning, Thank

you had XXXX. guidance you in calibrating capital capital is efficiencies, maintenance help as models of intended not to on is our questions for your Maintenance but for capital. Some intended

guidance reflecting full in We plans. will for provide our February, XXXX of the full extent

XXXX capital to flat for in flat year-over-year Our or and or these considering drilling to hold expected quarter multiyear the fourth production, year-over-year in figures Whether level is maintenance maintenance billion completion. production below of essentially are $X.X 'XX capital same. the is you exit hold

out point basis, production of million includes XXXX. capital will slightly maintenance does that As multiyear in look of see our until capital a we on $XXX not excess estimate at that billion $X.X I first typically

million So if it's maintenance capital, for a X-year completion. $XXX drilling and considering below you're

cost us, If Bakken for numbers are hold reflect multiple previously These a look, flat for like the years. as you, Oklahoma. more could well in we we production multiyear estimate noted, that in efficiencies, $X.X interested billion in

XX% a more is billion to reduction billion. our $X.X from look of multiyear estimate Our or previous $X

financial quarter per $X.XX, XX% metrics. second Let key range. operated BOE oil in suspended Despite came curtailing our performance our volumes, approximately previously snapshot within me is LOE review a of several of guidance at which

BOE per has resumed. of our at production we due on to be broader quarter, G&A second original in slightly peer was as the level curtailed G&A and year second to below our production being trends volumes the revert While per slightly unit, guidance our balance expect elevated within lower higher G&A Even a quarter this set.

our operational lean and Our of deliver. efficiencies we G&A nature the sustainable highlights the organization

part As debt continues. commitment approximately of financial balance our of strong beginning paid since $X.X stewardship, we continued our sheet down to XXXX, of a billion and have the

debt forecast, commodity we On second our decline on and year $X.X XXXX $X.X we of increased current curtailed billion and expect the peaked the and and lower billion. commodity to slightly during should Based debt in quarter. XXXX beyond. current total production, net the this back debt on strips, Based continue in believe with between July and our exit of our has through prices balance

total approach goals reduction by year-end debt long-term XXXX. we below expect track, Our debt $X and or drop remain on billion to

ultimate in our said As comfortably to be target is debt mentioned, $X we've as below Bill and billion. previous years,

will a and proven and track continue. have strength We of debt financial paydown record this

While COVID a caused momentary strategy. our not blip, impacted has it

billion highlight of million and or have on to lower. CapEx and quickly is capital second XXXX metrics cost $XXX transition is our quarter The activity. an shareholder be guidance we significant at expected level to first million quarter value a to lower adjusted $X.X between leadership. the budget revised of of indication of CapEx $XXX Our further commitment XXXX how

of to us capital yet, below. fourth We quarter annual expected on remain quarter lower and budget track or committed be an Third putting for $X.X billion to discipline. are

is XXXX positive expect prices. of million WTI. directly, of at $XXX we annual year approximately of Bill debt at the expect strip this catalyst As current positive cash into the means flow $XX this more mentioned, for Said cash half free we approximately XXXX. This million second reduce flow $XXX and to

LOE, capital from also G&A our cost operating expense productivity suspended and assets. for reinstituting guidance controls, DD&A, and We continued previously reflecting are efficiency

an and on reflection Our guidance you, to a our our on all Continental's the accomplishment has ready that everyone. we're guidance focus begin the back turn expectations is track call, over creation. and and are efficiency original we are with I'll that value capital of of With brought exceptional particularly after operator. Thank that, XXXX Q&A of. to section it To be proud

[Operator Instructions].

The first question from will Stifel. come Whitfield of Derrick today

clear for you a return pricing. business or right lower approach at or Harold do growth, philosophically growth reinvestment? does Perhaps rate higher $XX the current a of that Bill, world? $XX It's how in about change model think How capital and is

Yes.

not saw -- we look the And overproducing attenuating oversupplied market. on, to to should early what's doing that I our point you going as world. think, an an in $XX, back $XX in and started we you year, growth bring you're saying take Derrick, it as probably that we at early if were were that we And we rates and essentially at time. be, that industry, into what saw in activity,

point will industry I to And what pursuing pretty be the so that's think a until if moderate for. growth in that get time, you're feel rates, trying

what cost in XXXX And outline and today. then maintenance specific to you've you estimate? X, embedded follow-up more that broad to Page did outlook your as on in presentation the is. assumptions your That capital With what and activity assumption my outlined regard

we'll rigs half. Jack as we're not in comments far -- not whether kind have in potentially, half flexibility you're or put and probably have product, or little to in that looking of South as John of -- as to specifying about but add drilling bit type with drilling, that's and as North at or John North here ask X you that, you I'll could built Jack, drilling do and our South, saying of what we're a in But a because off into it's start far And well. to Yes. as embedded that program. anything cadence got And And that?

benefit. today on we've you and versus us cost done That's that also outlaid given broader I Bakken a the lot mean assumed we've and you. well what multiyear. South, teams No. is have our operating assumptions giving to the Obviously, a Pat there. the X-year of We've tremendous color a

a just I from coming about operations at talk later they X of lot state what think the do going next. a completing times from companies time. a drilling to can of are and year steady Well, you've and things on got on

and to the tried overhead than that positioned. you color low we efficiencies we a With garner, lot that. give very we're So structure with of our well capital

we'll top too. that This in The inventory company, And the Yes. expect just add for built is I'll results. and just we've is the Jack. got excellent continue inventory shelf just to

America. of will Our Doug come today of Bank Leggate next question from

are X One for mind, you, these probably questions. clarification. is don't John, if you

the billion by a activity is guidance. million the of But I'm the in little So XXXX. been $X.X very confused clear $XXX production and you've about that

fourth to year. So there's Is exit actual million. decline of semantics. the at I hold it's flat this implication or $XXX you is year, a quarter implied million, the if million $XXX know XXXX $XXX you through But some exit? that bit

same. exit hold flat or you by year just is by can a flat? meant confused what So that. I'm you full The number clarify the little hold

We it's Sure. than $XXX $XXX or at capital maintenance is higher that modeled that million slightly above. million,

difference $XXX looking at capital, in bit big maintenance level or million a of at getting whether million maintenance you're little a the looking to or $XXX dollar not million whether above, capital. you're $XXX So you're

essentially Does they're help Does same. you're... that that help you? when the So

it just are would that Just to moderate we -- it XXXX. it? a through to John. get -- about does, right just and be way to to it Is But be can to million, the think imply clear, so $XXX decline

quarter narrow decline out will exit. moderate XXXX very you're a providing us. for come production again, that range And not of fourth in in February. That we're guidance. of be It'd full But a

those very ranges. in on us general easily seen bring You've production

follow-up by you about sustaining And is we stuff. a down how the know is Great my [Technical way free of think [Technical massive in And Difficulty] flow. cash capital. Difficulty] step world as

flow cash basis? a On

Yes, yes.

I $X.X the billion covering CapEx, For guess.

you're year we XXXX about And low number about mid- cash neutral year. of free can price, Or the this this on in you're generate is, talking a a talking the basis? flow year free to balance flow. full for of the balance Yes, cash $XX

As you in it'd if low billion, XXs, upper a $X.X XXXX, at somewhere look out doing if XXs. -- be full into the you're you're

you would $XX, is-- case our at -- So base

putting we're hundreds flow, cash $XX, At millions significant okay. of free of amount a off

today next from come will of Our Barclays. question Jeanine Wai

is We updated purposes. all the first to guess for efficiency I really XXXX capital CapEx. maintenance So just my on question disclosure detail appreciate back the

In can maybe clarify others how year lower next for there Is higher just or markets trend on color facilities XXXX? that and anything terms generally? whether of you that Can non-D&C be it, whole that that portion of biases year? next or will would provide any it you

Yes.

think a fair non-D&C. question. that's There that number components are I a in of

segments. those So of break kind let's into

that -- activity. First that's one along with mineral our with is agree Franco-Nevada, on obviously something our that. And we we,

the perspective, from cash they're Now of XX% flow that covering a expenditures. you know

from a markets what that on out ultimately bit little active down carry a -- So on albeit we're activity. level our net that they the the same we've capital taken Currently, the not of of it's our there. it's see We've depends on a mineral That gross-up have. cash dollars, slowed we not because that in side. perspective

environment, we're we'll to price something price what continue But year, So in rate. And this forward and depend run if roughly we see spending a $XXX million we to will what lower in where we we before. if we're in were closer do, or markets on that's we the ultimately it's back as what that near anywhere we if invest. so and or the budget go that what at again, to not current current go see the we for choosing

they in are facilities, doing there, side. other a The what factors of component D&C we're the on

say So that think would year. that leasehold than billion. would year-to-year significant at on probably be a on more land, part what are beyond or $X.X opportunities. I have we or biggest something lot renewals get and at give full ebbs from activity we that, comparable of we're when it depending or you And renewals. plays -- we'll new this we I'll We don't a new are less That's the to amount exploration due depend year. coming next of that color obviously around guidance February. in on In

Okay. Great. hope That's me. a detail. hear lot can you I of

You're breaking me, might a up bit the with a here. little end question on... but been it second bit is on my have But just storm for my little

here. clearly coming You're through

Perfect.

second Continental's a and know back may lot where completions resuming percent in the My term mind, color little is don't a to the just in housekeeping the on with in on is shut-ins you oil coming more and Great. shut-in. on if of the the [Technical any oil XQ question you Difficulty]. nature focus due was the Okay. and bit percent production the near I understandably But completions on-- Bakken, migrate low online it's -- of to provide side, the can percent. that or resuming in oil

Rory. it's Janine,

us. bit You're on up little breaking a

question. did So with first percentage. the We the the get. did last second of get second we didn't regards we not get part the part oil that to But the part, --

just could If that? you repeat

you of oil when if might to and the that where understanding depending you've And on provide It flexibility for between the It's of a all just got same. oil lot any migrate commodities levels. the on gas, percent move color those. each historical can was

Yes. we where this first the Jack. in percentage, the quarter. right were we'll Well, XX% oil in go quarter. first were Janine, is like And back to We the

to on. in, We basically, we the we it go So were. turn right where back shut back we oil

to chatter about were and back good X on was we're out what what top them we So even a a was -- there's perform And on all has of we've we wells I change shut And out why there there turned that, all. shut out in And before on. concerned you, that's industry-wide back coming production there's mine I it got wells pretty and at about about of it never would it. in of no I'd just discussion a about real these tell flush turn on how our though Montana. in. impressive production production And there. double these come there And of guess, when example will been all. was we we material these seeing had We we and And that's shut-in back of experienced wells previously. for a months, what the and it lot say

we whole saw some to flush so what significant production related field. production And that is

on there so a can And nicely are you is is performing us. basis or you field line look a well the for it oil at on at bottom and basis, these can look very reservoirs

Arun from come will question next Jayaram of Our JPMorgan.

wanted and if I wondering us could DAPL I the July judge's shut happens on your what start with the your from down surprise to was give thoughts potentially in order pipeline Harold, to on here? perspective you you.

as we we initial order felt feel good we stage, [indiscernible] this will that this will that very three that, in there. as -- be got. we thing Well, confident very stayed. will like stay continue It's feel And up It's which years the good pipeline have trouble end, heard. an operated are we that also thing at And -- again. we free this this panel we'd that

about a We it. feel good it's So good thing.

for point team? Great. from and perspective it get the Any an because just just color important I is group. wanted CLR the some other to data more

is Bill. the of is whether side. be plan our the as thorough Harold I'm did not were And going to what's whether think down. flow, mentioned, courts in shut if And looking analysis that The discussions looking only because around at, we we we add this get you're outside coming And we going sources, actually of things. the rail same or looked all came at looked paying transportation felt XXX% other to to certainty we not. the all enter just higher-cost that some we of analysis go may in. from those sure legal was sources, might type there's for not had support pipeline And the get prices those And risk thing at would actually stay on flow, our imprudent This -- economically strong DAPL on at chance conclusion. a the we okay, it to this And into Yes. type pretty stayed.

And the to will on hopeful Harold see. so ultimately up do end waiting and we're this We're and expectation. that described producing, courts our as keep that's will staying DAPL and

committed. And those know, XX, Arun, got, only barrels but an also I I barrels day think think, as gross we've a XX operator. are you And

we commitment DAPL. a direct So on significant don't have

helpful. my Hart. to maybe you, And just That's Great. follow-up John

on oil the billion a sufficient and $X.X that the flat would BOE be And 'XX. D&C in Your Would an run fourth sustaining commentary in relatively rate is be basis? capital to hold quarter essentially maybe...

we've BOE. on the don't or it I years, think our year-to-year, you varies decade in now. BOE, from for said ran kind What know we a X, was but BO a percentage our of same it been X I --

inventory and So basis of with is -- consistent that. the our we're

we $X.X mid-XX-ish quarter And in said a said the range delta. think what $XXX stays And of I -- fourth number relatively for when not we year-over-year, of million the oil from we Well, million the had it how on had dealing So you're range, well, exit questions type people quarter a questions, fourth related, about vary the transcript is the versus exit? between it I in production to year-over-year. annual big with that. that does billion percentage $XXX

the either level in scenarios. those I don't materially of CapEx So it impacts think of

So those yes, think relative we can flat range on in the I hold scenarios. different

that just of John, $X.X in to the question capital one would kind and the is, add like kind look how call -- allocation Bakken billion that And the number? between want of it, quick more South

what Relatively consistent had. with we've

Wells will next Nitin of Fargo. come Kumar from Our question

in same maybe as indicated in But the vein I the want you're XXX start about some year progress. of -- to questions. exiting with wells other the you've

For of the run you I X how in sort what's to color -- lot. of of XXXX? many of a of activity, those seems terms like rigs, you expect of us end normal think DUCs Can mentioned you level or by wells the some that rate give

We're [indiscernible] of tell we're -- giving we're -- not 'XX. on on I you, guidance wells. not and those between around most year-end, because been XXX already really But have our Kumar, stim now crew And really we're can at of in we and at second year, Oklahoma crews any count Bakken the about probably best average really, We'll now. the half this Oklahoma. X the in don't point in going have in stimmed right

maximize all So of in we're and the wells said, planning XXX those queue, basically on, barrels. half those in essentially are about value these I of the to in the second bring that to the year an fashion orderly

-- get give a and we maybe give be bit that better little able to 'XX, what fourth into as or even And like. might we'll you on look quarter so clarity

that. Great. I appreciate

XXXX, me if XXX just back say, you If to let go at year-end. we you -- were back like go

versus So we're XXX year. comparatively, last XXX

rig in with increase expect so probably count, bit more. you a little could And

us maybe And quick one. Got appreciate that Jack, can't I it. give guidance. you a just

when wells on step. bringing volumes? mean that back bringing the a XX% the IP and them big finding of pretty you associated back You was are some seeing mentioned back you Any costs bringing production on. set? good oil with your opportunity I rates back curtailing costs associated brought How

nurses were they us. well go to coming from. been standpoint, what There $XX,XXX you we very a turn some been cost. on shown that anything -- what NDIC have there their out $XX,XXX Pat, these From at see that had numbers numbers I think all. do and type -- I'm minimal it's cost Well, there And the of add? to -- had they're were were out -- not really, our sure put some they come on based and to back And where out

Yes.

on But the Just $X,XXX back extraordinary all. of an color. we've Like at know NDIC the out the would bit number. don't well per so calculated Jack, less I for looked little much and and a be about numbers we've additional normal basis than the anything a not little basis, that

Excellent.

So clearly, field. was in out the bit a left NDIC little

left I field, calculations. I just don't in know wouldn't for say the basis their

So may our calculation and vastly different. be techniques methodologies

-- there. I So clarity just

variety minimal. be case, looking different it was operators. of a may our In They at

question Brad next RBC come Our will Markets. Capital today Heffern of from

ones some Bakken. you A from operating I'm the have DAPL of just and question and related be X to allocation. -- a on lot for have far regions And better moving well. the pieces capital the the might wondering, in of risk sort in There then been come higher so South, of election outlook have gas the some there High Plains NGL. in the as that

if you away split, So XX-XX sort would I'm towards South? any things potentially just from more the of those the wondering of tilt

Yes.

there's a parts think that. couple I to of

acreage, the in talk federal which maybe you're is North. First up about the to what referring

federal, sometimes optionality of prices If where that you of over not -- at company-wide, X% and the we all we're so got have between we around little actually multiple and only crude, oil. our the high a look maybe far year, seeing is of gas our there's prudent acreage mix about gas what's this as to gas, we've have that -- go it's more years, the And product as benefit after at that, based exposure more with sometimes on course including seen there. more

gas we that of have and actually oil of think that, with the is company. between we So the optionality flexibility one strengths that

then John. for maybe And Okay.

it million only number free like for the You about half, but cash the have the number flow exit million looks debt $XXX lower. $XXX is second

-- numbers that what between the wondering those was is. I So gap

what just to cash during flow, and we're at it's we When earn at January Brad, we what December, look looking incurred that we period. timing. free

and in what we activity you out, going ignore generates, working if we're and coming capital working So capital will. at looking that

of So some that down. January February trend be cash and in to debt will continue will and received

Just working is. all of the timing is -- just it capital

is from Robinson Our next Neal of question Humphrey. Dingmann today SunTrust

to now? of that to really prices and expectations. your that that potentially any My of [indiscernible] in 'XX you by just first increase. some all more past, Is for the been know scenarios for is is price just willing progress going believe these the part Is Bill, you of -- latter there because XXX behind the that? all, question Or expectations -- higher think where year. I you for on that have in end plan build DUCs in the XXX are XXXX prices? guess that I is I part -- the for part you and of mentioned just of now, plan of

No.

essentially our As in mentioned, bringing back we're production August. oil all

happen you're talking in Neal, the address There that last up we think we're that stronger a is So the the a of specific see all to some few we're gas gas, that had running there's and about, bit point production over we market starting that do little shut-in the shut-in. and to days.

expectation is that manage we're to than so trying is drives going. of And is the probably of what where part more gas it anything. That

economic that. driving of As that things The far still as $XX term, oil long range. think strip couple We that's in clearly, sustainable. are and a the around price, not to be there But coronavirus worked there's we're of pretty activity what's with from still And significant as overhang inventory that there's the discipline out needs off. well. OPEC+ a then the on world, going

it. got I

And Okay. -- ahead. go

And make When is me, going Jack. -- this it's DUCs wells Neal, Neal, year-end, mention to -- excuse you and XXX, just at just I sure... XXX said was to

you amount Jack. given of be how a DAPL, all about slow definitely I'm impacted DAPL due down, DAPL I down? sound question minimal to would -- sorry, slow the activity for thought wondering, sounds clarification, the were just follow-up, if diffs confident if my about were have diligence, really or in have just your reason, if, they is your -- okay. I'm you it done DAPL. some would that guess you've to all Thanks Then like Right, for does you right.

I [indiscernible] status that better a than think field. up in historical most little the just in we have there due shape to

outcome certainly. looking so is the And for what the be. to what have DAPL, we yes, we alternative DAPL for where pretty be confident going is we'd And on and feel

Our question come will Goldman next of Sachs. Brian Singer from

paydown you $X aligning first higher, is about John is at would talked meet importantly, or very I what would there allocation. response you level objective time? being reduction both first leader $XX ramping a $X If market versus Harold, Or target. with about And regards could a at levels? type rise Continental billion then supply activity? prices follow-up to maintenance to then most billion oil And My want that of debt do contemplate debt activity you Bill before conditions. think -- you the at same in long-term earlier and the question with a on and one the debt talked capital beginning,

of fundamentals. And a $XX focus for really we on look talk sustainability thanks Brian, price, about don't at the Yes. when you world, the we more the target question.

coronavirus And into OPEC+ what's what's OPEC doing, is. get doing, what's so that's the where inventory we why doing,

we And going behavior but to on message inching approach the out we're shifts effort prices, more debt into high in unlikely to that never oil bit programs, then prices, that back as free on What analysis different might hit there. pretty different our of if our toward we flow. why see of the gas so trying our cash it going and that's X-year reduction. that to able scenario X- gave We're we've we're a moves, that is And be debt And it price to as focused $X any there, with different laser-focused if our start we're that at about a activity, way that done confidence $XX, that capital change lot fundamental to time all. yes, little get spikes to bulk out to just up see to scenario go to is us frame we billion, replacement. we'd compromising

has any regards how from opportunity. whether an been my those exploration exploration than providing perspective is opportunities either to then company, is or And be acreage impactful exploration-focused cycle near-term Continental and maybe opportunities. And and with long this an acquisition more acreage, I could acquisitions. wondered follow-up down an Great. or

This the same we that true find would now. holds And you to Brian. available history, otherwise. and our generally times And tend downturns be know question, these, good not opportunities like is Great in Jack.

We have unique teams working window very diligently, looking for these unique opportunities that this are time. of in

are and like -- we're so you doing. tell they traction, I that getting and what we And will some

new Would these in that in you're basins areas the already be company? for or

and opportunity is. where go the opportunistic are We

come question The Stephens. of Gail next from Nicholson [ph] will

in to Is LOE concentrated regions other? looking side. the date, there the between the improvements a delta North South that more has the that and than on been region I'm one you've achieved and

a The the bit improvement. North strength range, X North and in South around but both the continue the is show four little higher range, than The the South. shown to they is is

seen go years, in Part a X, improvement as you North look and there well. back continual the that's of [indiscernible] has -- throughout look X If South, LOE. you've the back in but improved

So I think we'll strong there. continue see to performance

to just then wanted back Jack go And I said earlier. something to Great. that

You post talked in you that shut-in? across all the online is see Montana benefit expect unique of have something areas that Or volumes Is about back to shut-ins. the that positive been to coming Montana? that

No.

volume reservoir that recharge I the reservoir. the across we seeing This wells. low the very very start area stimulated shut-in, and nature -- you the of -- rock think field the see and got reservoir, to it it's give a basically time is around the permeability you we've it

lot And of so well is, out there. a fact the there's

And don't gained for, years. actually XX% in teams far about the in on the the went as reserves the XXth there -- as by are quite the of they basically I and the Our based over place frankly, there. reserves kind what Bakken time know, in reevaluated increased we've knowledge

lot that there, seeing oil these of is type And more finding. place a here so support and really we're what responses out there's help in

come question & Noel Palmer. Our of will Parks Coker next from

next interested hearing take end on I'm schools getting of as of this costs through different year. into heading thoughts. year I in your you service was look the and

it's others go cost they at level least more next Some there's that think as about folks through sustain service that to all and they these think as will the costs way And going saying saying low the that service of is year. component to get.

So I on impression was that. wondered just what your

This Yes. is Bill.

give start better we Let turn Pat, structural mentioned, in going detail our to me then XX% a costs. couple seeing to XX% with -- he of to it will we're I'm it. changes over But comments much on as and and you

that with service do companies. So doesn't to anything have the

ride coaster and as So impacted companies more on than oil we roller do them even the unfortunate worry been the adversely collapse about they've price service this ourselves. has

add And business. structurally, the good to of will. that the I talking industry. service a do to doesn't to the start want are about most important have sustainability been book, companies' if industry service little with savings for more category. anything the our bit with we've with on do that It price what's But so you of is Pat color will But -- going service in

industry, When about I I service think the I same in Thanks, think it the Bill. about operators. about think way

opportunity the there's the think board. for across I gains efficiency

the We to continue and continue drive exhibit gains to an from service efficiency We operating to would lower. those anticipate perspective. industry the do the same cost

for key the think is I Continental exposure.

about and associated manage risk so any service structural pressure. upward we've about in market-driven, got reduction structural the I price North of the and place. Bill And structural with with When basically a when increase we versus avoid we've risk XX% in modification XX% changes I South think talks to market-driven managed think to pricing,

just question. And other Okay. Great. one

rebound $XX to some $XX direction getting more you a environment hopefully, one a price maybe hand, maintenance As look on in or of to possibly, that above. ongoing -- at, oil or points capital

horizon, capital on so back of just Looking rates or Some got at think wondering cost I'm X% low, debt. any of on debt two particularly couple the on had depending you your scenarios, were thoughts of do capital X those scenarios? years of your you sub you And differently? if ago, between about maturities X the long-term the cost the

two in [indiscernible] parts. Well,

term. a believe don't $XX that's going here all, of to we be barrel, long First

and production be levels not sufficient hold the U.S. that's to -- going world. in to Just the

we So turn situation that. to over I'll second short-term anyway. that's John very answer think to a rest part of the

very look, pretty attractive. broad our But Noel, capital cost had question there. you been a Sure. has of

the cash to a amount From open if seeing improve. going exceptional But at, of The we've improvement time. seen chose see continue of improvement an quality where then over pay and and markets now, given any those if I off where months flow. open of company X they're and a they're next 'XX the us that, that's our continue significant further a some it's from you've that continuing free are with think markets into for the the think to ability by you're to flow I last certainly to us we trading generating lot in 'XX, bonds that something, off we to our got do improve putting the month. credit for cash bonds for at

manage how we gives that So flexibility in that. of a us lot

The Paul Scotiabank. will Cheng from next question come of

to sure want is this Bill Maybe understand. just I John. I make and for

billion. of next flow So described, based year, your that function -- the free on the the at will that Is your debt the minimum way CapEx look years, to the -- the of right way $X below next to the amount cash be I way couple the to generate cash that a will that of at flow for interpretation do your it you right be assume it?

our rate prices [Indiscernible] Yes, scenarios of oil we're flow? cash asking is a CapEx like And said, and Paul, answer We're answering we, I is, gas that under focused various sure at that let me rephrase the various and make yes. it spend asking. prices. And question debt. you're on the is free function our the

We take that the very to being path trying debt to to. to clear level we're able a to get the it have

And flow. function of so cash it is a the free

right? question, your was that think I

years, your Right. approach? that X that $X than the we should will for debt billion, you next that, at until less X least the And to -- or interpret be get

focus our I back years, as assets. in we you that's go free XXXX, back number been far years. on, cash our HBP-ing think and if We've goes back 'XX about few we flow there were as a since long it talked -- on of a XXXX a

one company thriving it's cash long-term So doing, is achieving free to beyond target. or shareholders, goes structural thing Generating part next the debt cash and that's should a be and that target flow return our what the a free of debt sustainable generation strategy. flow go-forward of

price your Bakken, is can basin quick between any realization doesn't also second the is bad, really price quarter it you benchmark in bad. on gas And by why realization just the your SCOOP And have oil and gas a Okay. natural seems curtailment so really The the Do one. reason STACK? second is split quarter but I that a have bad?

Yes.

we're gas that and On the that report were three posted. to out you're streams about we [indiscernible] was oil talking report And following obviously, going the prices, prices there two price, had streams. $X.XX NGL

driving So differential that of seeing, Paul. are lot the NGLs that a you're

really Yes. also see But stream. that like company I didn't Bill, I mean, mean Concho they [indiscernible]. other that the two report

talked we not We Yes. We the had shut-in in the about environments some going sales, in We've of our things. XX-Q, also, a XX-Q. in in and as future. price better the position some had some because some blend you total there. oil ended we other stream discussed see you you in on if It's saw, areas where that where the -- we gas gas forward it just on in look areas up the negative we gas,

a gas, that's bounced levels those think long-term thing. saw it's But off in significantly. you don't volatility quarter I certainly this with So the that

you just those realizations lower cost producing the some looking So when wells. at gas you're had of

flowing NGL back -- Yes. And as structure, you. to up Paul, pricing, depends it on it the too, to build end comment, you how contract that your to John's on

the we variability, as that don't is saying, And we future. and in with different differences see -- you John's should different so that probably seeing structures, between think ourselves this aberration that's contract others. you're and But expect why an

Josh from Wolfe Our next Research. question Silverstein will of come

billion, that is Just few of this Why amount? flow be flow? going $X.X this the relative the a next years. basically billion that's to on Or there the period? number over cash free to billion Continental's the most $X.X strategy, is maturing in cash And over $X time debt question of the excess reduction

is going target's I Josh? think how -- Is X that. is set provided accomplish parts how asking the to question, the two, is One And do then target. the we to you're that So the there. cash be

Yes, so. think

to in debt stays achieves get the on well environment, to of $XX price $XX are there. down want certainly it we EBITDA. In debt type and for had we to it target keep it a price that while, below billion, Xx where that EBITDA. environment, a plus Josh, we a $X to One, some. there get want below Two, debt we've Xx ways a number So

that us something gives insulation price that is against we So think volatility.

And question? unchanged, on was that so do while, the we've focused continue your of we'll for and remains a What other part that so. and to

Is Continental's cash the cash of is Or flow basically level? above debt reduction free free flow? all this there excess

Yes.

or and anywhere Bill at spoke that $XX we above. variety ran price as between So scenarios, of a that -- $XX

on So price. it really commodity depends the

of achieving just environment, can $XX time I think the that frame use debt while can the factored that growth price let's goal we we -- and attractive A generate midpoint so in. we've that.

that we I but -- to it's variety to think generating balance towards want good also with the debt traction a a of the of things improvement assets, it's able So do see. being the

for last wanted decisions involved me. been in I political you've the sector. ask you, important that the some Harold, And of have to impacted energy

out to sector? could we Is that be supportive? an up see come election what energy we and if X negative years? have anything As here, the Or for confidential the next over for is an you administration everything change, do there playing moving

get Senate Congress. to but be start several past If Biden the maintained in me would and it's contemplate much he reelected Let And going were going industry, be I knows energy showing to if were to backed from off that knows House who certainly forward. that. flips about the said elected, he hard And the numbers if come he out and how negative is a the think politics that and who Republican-dominated are to he's things Trump on where there. to is say Congress

very like critical could in that a it's you anyway, So -- you that best always, the do situation.

At Ladies will back conference to question-and-answer like turn and to I'd the our over conclude remarks. session. for gentlemen, Sabino this any closing Rory time, this

further much you forward team. look for Please joining to us direct today. questions We to very speaking you. with IR the any Thank Thank you.

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

You disconnect now lines. your may