Continental Resources Inc (CLR) 6 Nov 202020 Q3 Earnings call transcript

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

Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. to President conference of like Rory over now Vice Sabino, Investor would turn call the to I Relations. Please go ahead.

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

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

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

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

opportunity oil gas been everyone. Yes. the today’s and in good a to be industry continued for and and Crude huge Thank has worldwide. morning, Under investors. natural oil gas created have you, and Rory, investment inventories down drawn

is when choice. supplies discipline your should We believe sector cash time. Continental additional commodities those at I significant most have capital you in and cost consolidation of our invest within not to be Industry this You free as sector why barrels low levels will our continue higher this in than winners that drive both remained on will the deliver to needed one operations the and normal and produce deliver time. number are flow. capital at efficient Resources consistent

the believe we undervalued I our have best in We’re value and sector.

peers. amongst industry-leading lowest cost efficiency and We leadership capital our have

efficiencies. these to operational technological and continues Our drive expertise

We dominant a quality the large assets with Oklahoma. have our from both high in and position production base Bakken

us and commodity of natural optionality will advantage demonstrated afforded Jack quickly of capability the this and pivoting And that. Our about prices. has others assets and gas gives talk quarter to higher take nimbly

we our regardless continue the This long-term will price flow for view shareholder We the year free manage with generating business proactively on of cash a of be – fifth company. consecutive our value, positive environment.

unmatched have shareholder We alignment.

our We delivering are entrepreneurship operations. always teams across of of and all innovative our all

stewardship company We’re best responsibly fueling ESG a safety through world record and our better experience.

We have a leadership team. seasoned

into flow Partners, saw a more This Houston a global for to shareholders. market, debt cash of path remain reduction the required volatility natural Magellan international oil COVID, Force the oil standardizing our capital further and we U.S. a concerns be the to which oil. crude regarding from attributable and to oil on terminal, return and is provides great Also in important Task Gulf fiscal markets. and refineries markets. direct evolution pipelines come. Our third allowing financial access from future. competitive additional a for recommendations market Midstream to progress technical providing liquidity Magellan to there’s produce an considerable crude quarter, access to Coast waterborne sustainable sustainable make optimistic value shareholder allows the AGS crude to GulfCoast new and provide Gulf to update I free announcement reliability, well we Despite Houston Select, best In ability recent American want for third-party from to and to demand transparency, for continues an practices around And East Coast

legal and to fracking President on faded been of also many that and The of Ironically swung swing Use thoughts you the votes at see final are you voting. voters XXXX, commencement election of and Joe when that The had we plan election. election is not process early gas, known administrations to Democrats voted have wanted Finally, oil current waiting like jobs center the position all a Act outcome and motivated Trump. the who craft and for. would the the provide they energy further had became eliminate they state Biden security my counted. I helped to energy call to are States. of with this Fuel card I which the oil and the energy The results believe

EIS it generation, you gas If disastrous time. electricity Use use Fuel the and as at environmental clean coal a predicted for usage natural same of even prohibited remember the damage XXX% Act mandated burning

be we in Accord a prime The XXXX And Five economies. economy local of some to has on example recovery. early caused. supporting focus reality of energy a Congressional usage point jobs of levels Oklahoma energy. nation’s and the this And is economic and as over to Continental outcome, U.S. where be voting last growth Many perhaps was I Paris President his targets decade have believe the American was three and dramatically Senate that a acid candidates energy natural matter declined his supporters. will decades in gas the the champions District improved importance leader we several the rain economic prosperity Americans bolstered final by our to the in have powering achieved the Trump supportive No will care City you the and COX back powered election. the and the well-positioned is in did about well House. XXXX. that energy energy remember,

the Presidential a representation than serve Republican more the oil and be and for in Bill Berry. producers. remain results leadership call U.S. Election, to likely of I will will While House now legislation turn we the gas that harmful will the This strengthened. any over Republican to Senate hands backstop would final the would for wait the be see as

morning, everyone. good and Harold, you, Thank

to main prepared with highlighting shared you preface wanted I five say As remarks, takeaways. I by my by

HSC year for performance. quarter cash best $XXX the very ever million third had We flow. free delivering and of strong ESG seeing We’re a

continued reduction capital debt priority. free and We is flow are Currently, highly first shareholder focused our on debt returns. cash reduction

We continue position. leadership low cost our to maintain

Our from assets relative to prices oil ourselves strip between benefit commodity and movements optionality provide gas. to and position

a more in discuss let is track HSC detail. these Continental performance So to little in ESG XXXX. on me deliver outstanding and

in attributable in outstanding We’re these our thank efforts deliver all on I disruptions. is them exceptional our areas. to the pace teams. on pandemic and for best ever safety performance of year can’t performance and industry This of continued and their enough significant to work their spite

currently continued which is XX%, for leading. excess and capture Our of gas has is having in to a be peer focus us

track our We’re a versus of year flow, on fifth leadership to position deliver consecutive cash positive peers. our free

operations. third And Slide quarter, Our defined as X, see again low delivered on is low can by you culture leadership. cost cost we the our industry

guidance, producing LOE $X.XX assets of quarter we below Our the annual part our even Boe efficient were rates. as the for nature and quarter the of at curtailed for our operations. was per This reflects

third Boe We and $X.XX year second per below quarter. results, and versus we Based also at $X.XX $X.XX was LOE G&A respectively. range delivered for annual to the guidance G&A $X.X. guidance initial are for in $X.XX the quarter on of upper cash to cash capital Our expenditures lowering to lower these excellent

and Slide CapEx level. $X.X full well-positioned curtailed trending quarter be previously I turning year third it As second CapEx X, oil production we oil last XX% guidance during to above is would reflecting did that are was quarter oil the our we We billion annual cut XX% wells. guidance line to in internal line all closer was the came an are noted the provided on you suggesting exceptional about of oil at estimates to third job return deliver on our wells deferred in the restored with back the quarter. quarter,

and both production oil consensus exceeded total quarter estimates. Third figures

XXX full cubic track per on production XXXX XXX,XXX to day, XXX to barrels oil We’re feet day. XXX,XXX deliver and to our guidance of per year million of

We have for of tightened flow and us free nicely Boe XXXX, day. also and This rate in assets to both our underscoring production updated the sets XXX,XXX of up in cash strength per improvements half December second XXX,XXX between operations. the production exit and our and

cash we XXXX, to flows projecting operations XX% rate. For XX% of from are a reinvestment

our return this, afforded X. tarts, debt capital to us wanted to leadership, gas on debt. on and efficiency, This with with the by by share be and Our we Slide cost free low ability optionality you commodity to discipline, sustainable driven cash capital pay our projections free will some Based maximize find down value flow assets. oil on to CapEx shareholder continues and flow, which cash you’ll

including Now specific the have you inputs counts, panels, rig questions may of cetera. regarding et XXXX, well

at were still of we detail, finalizing time information early year. next of we in operational the will level that provide more process our usual the and As

billion $X.X to projecting this, in of billion part we XXXX. As we’re $X.X CapEx

a for the digit cash overproduce growth projecting for couple growth We’re $XX forecast is stated moderating year-over-year to into in single flow with of cornerstone pay have this breakeven and We’ve WTI. for debt. it is a oversupplied maximizing flow XXXX we production cash an low and and as prudent since have XXXX. us talked our XXXX been years about market important flow have The several years consistently we of down message a – today. been positive of free plan more is we has even to free This consistent been cash for past

free and and at projecting $XXX at deliver to to million cash WTI, the expect with top in ranging We performance We million WTI be cash flow this tier will yield free flow believe $XX significant X% from XX%. organic approximately $XX $XXX industry.

debt end reaching equate EBITDA XXXX. XXXX down, in two times $X be paid approximately we priority will oil. This debt be $XX main total to year debt below total we by will would billion at or Our to of believe

supportive XXXX goal be ultimately or approaching this by is of our billion. billion billion total not remind of we are program that the is dividend debt appropriate our projecting We while to or of board below on on believe the back $X is suspended, to depending dividend While been $X year investors I’ll shareholders. focus time at near-term XXXX, to commodity bringing prices, a but $X part end has very our our terminated, returns after reduced. and both are shareholders debt capital of our strong

have assets We also we optionality that our to highlight XXXX. gas capitalize And provide benefit. to this wanted increasing prices already in on

responsive the and we fundamentals. of year. be deep set gas shift [indiscernible] and Oklahoma, capital with between have and oil to Oklahoma an advantage we us but shift provides both and strengthened next allows can changes projects. can that commodity to Bakken This on to this curve nimble Not Oklahoma, in across rich within the inherent between price are gas capturing already and Continental only Bakken the We we a inventory hedges

some capitalize the deferring expect for back our XXXX, strong opportunities We of price while of oil until prices to in projects XXXX. on half increasing gas higher

optionality in Oklahoma a drilling XXX and currently this million saw of As collars have with XXXX floor shown we May shifted weighted ceiling feet and on gas. of We in average Slide per XX, cubic two-thirds rigs $X.XX. with a about to $X.XX our hedge day price weighted average representing

wells cost operations. gas Hub, deliver return can at $X Oklahoma XX% thanks low Our rate Henry our over to of

access also markets to from We Oklahoma have direct multiple these assets. premium

the We as pursue have teams the commodity inventory, to warrant. without and price bottlenecks easily either capabilities fundamental the transport

a latest With and Finally, is infrastructure a accelerator in water unique regarding a differentiator. our I update believe Oklahoma, assets. opportunity our which water strategic did infrastructure is down, debt monetization Bakken want for partial paying to we highlight of the water first potential

and lot debt $XX for of executed a this water assets. have firm significant Street accelerated our interest partnerships. Six experience be with On pending infrastructure a investment earmarked this sheet a opportunity non-controlling a transactions term and infrastructure will reduction. billion for of Proceeds We with energy non-binding in global

and would This targeting in We’re comments currently in and debt reduction with regarding transaction definitive is reflected of early or XXXX. be outlined later in to of the not reduction the earlier this our documents schedule working accelerate any our of addition confirmation year Six Street slides. organic my debt

and cash talented We and at dedicated flow, are deliver ability they maximize have operations an low value. sustainable extremely cost our shareholder absolutely team to and Continental, generate in confident

over ingenuity, cornerstone cash their flow and of impressive capital Our and discipline profile commodity maximizing is optionality cost by turn of free the discipline, program teams and underscored driven our call position afforded our to from and assets. flow XXXX is operating expertise. strength Jack. commend by will strong appear plan free leading like output continue to The cash by The we I’d is now generation. of this

to lower out low start work safety Thanks, to every morning, Innovations efficiencies job oil their employees to weighted all want while increase Bill, peers. that continue our keeping across our and good capital day aspects of from costs and everyone. be for dedication business, to one. our I employees is cost Continental and implemented our among established by as thanking leader hard a

in production. XX all wells average teams there of third Springer SpringBoard in Woodford total, in that X, chart out the phase year the published on the have SCOOP This at their back completed Bill our with and was fact to in to quarter. a wells from in during assets Oklahoma third that as X This highlights through production quarter, on X we our wells are top are wells we producing in were reservoir Oklahoma to the wells the quarter expectations new primarily tracking Bakken say. said, these SCOOP row going As wells XX that XX approximately line the is and is condensate well from curve includes are X the development. the we what turned XX% we’ve Slide one of Woodford XX% we oil. windows type production performance completed moved on and oil SpringBoard this in We’ve how reinforces targeting ago. well third deliver Woodford the the producers year and of XX know illustrates producers SCOOP, All These Woodford of right

our the and to XX% X This returns XX% better. great Slide of Springboard on the approximately from design. SpringBoard are target XX,XXX targeting are controls that approximately properties we The inventory approximately size to operating Sycamore and could very at and net XX%. prices. to never unit acquisition high weighted X, We all decrease bolt-on capital average a the been are to X Woodford square approximately basis in the we where is multilayer and operations units compared that closed including a XX,XXX working Continental reservoirs current the acquisitions second of X be reservoirs, costs have Sycamore achieved developed. is XXX acres We these well Springer that operated is Oklahoma legacy is two alone seeing wells added chart HBP. of area performance that Most area continued in improved a Combined net head-to-head that drilled in in efficiencies estimate the covering over XX% performance XXX an of SpringBoard located wells XX of XX% Production acreage acres the areas. due in in strategic and last have up approximately X recently weighted strip prudent. wells of shows and miles to with Woodford, up Currently, the at SCOOP X oil to our XX% example quality and are core in demonstrated are our with the completion interest in reservoirs currently competes years, completed improvements our SpringBoard we area an strategic oil on areas.

reasons, seen from been for per XX% Names large is to can these producers. X.X production X.X these to you of the and two areas. impressive Slide delineation our in charts charts we’ve two X Woodford and of SpringBoard performance have which wells producers perspective, X oil. four wells are Sycamore XX% Boe withheld These million Woodford the and Sycamore ranged For recently locations include million about outstanding and from well. on see Currently, show the and XX completed competitive

greatly and the optionality develop seen X, both in we’ve from will that provide projects. SpringBoard [indiscernible] growing scale to our is as they assets gas. efficiencies capital benefit of these we Oklahoma oil As economy great

run-up of day, predictably turned wells doubled making In rigs focused more XX, to in prices in have As strategically weighted prices our XX% in gas assets XXXX. XXXX, last oil have approximately quarter anticipation over our Gas on combined gas we supplies and the few the decision, and second the Slide assets almost shifted weighted wane. natural XX we production of of that were to since that new rate from and wells shown on producing rigs feet feet as weeks, to rates cubic and million gas expect of are per and gas today��s gas of per oil strong are these to well deliver day on gas return at of barrels a flowback. of prices XXX per million clean prolific producing benefiting XX% of approximately excess gas. XXX $X are in day rates up These still as expected climbing XX,XXX cubic continue we

in with million. total believe below million our by the we’re the our all-in was we’re we well lift. days the techniques design driven and near times. The an weighted keep of Today, efficiencies Given the and natural gas gas our focused driven and structural current savings and on to cost In X.X cost XXXX average structural strengthen the wells market routine cost is XX% XXXX. year is costs to for artificial cost costs, dynamics, Slide to drilling facilities anticipate including in another to cost and XX% for all-in these and since achieve this is our $X.X will X quarter This changes we shows future. plan days that TD XX we of targeting cost below that is complete respectively XX% first in is is Bakken an Bakken down four for prices the our to near XXXX drill million continue XX% future. reductions on well shaved Oklahoma news nature. Big XX% the in of our This similar time. and results of have $X Operationally, well occurred and the track Oklahoma, XXXX off dropped completed in majority $X.X have in and spread Oklahoma that are

production two in wells stim three and have the year will late the end. to back are through of and being prepared the additional two operated Q&A rigs the Looking Bakken have Oklahoma XXX drilling by expect we ahead, our wells over Company-wide, by year to that to and ready December. be resume to been November stimulated with in completions in operator. we expect that, rigs Bakken with call turn will Year-end, section which gross crew begin progress. turned we’re will and With and the end, one crews call, approximately I XXX to in we early plan to all flow. XX decks continue of

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

for John Leggate. Good Abbott on morning. This Doug is

low question back quarter, break corporate if the Our is the break on seems we And commentary look in second suggest your are your that even. free cash even it When flow first you seemed was break fallen. X, $XXX that where we at at went generate slide flow even has can $XX, during to million XX to to you upper of number XXs. the it cash you

of sort and Let’s to change on – quarter, Could explain say sustainable second between $XX. a it’s basis. during quarter maybe the and multi-year sustainable you lower third the even the a break

breakevens the of mean, factor you the to of capital choose the I invest.

very a relative peers. to low costs have We maintenance

well-performing exceptionally assets. have We

gas as benefiting well a that from prices on We’re higher the portion of streams.

So we are.

and as some next now. capital is dissimilar I at break it look depends were guidance see in time $XX the given that’s full even that on we year. But to the given we’ll indicators and think assets any you of XXXX, Yes, where we So putting mid-XXs. where too We’ve those program February. indicating productivity. roughly before come from do the formal out on kind don’t we with were we in the you’re

projecting Jack cost substantial seen, in earlier. we’ve seeing as to you’ve to had we’re more as well Additionally, alluded obviously and continue improvement

of free only quarter is So track for next third but got not year. a flow I just the $XXX for positioned balance think an We’ve of this is cash the year, million we’re appetizer. in proven extremely well

that And in be agreement. for entered do value the if your our partial business? recognizing you – believe follow-up And billion $X what then say, for sell impact non-binding still you the portion you Do to how that question, water you well into given you how a might were costs the billion limiting and value that, know to from should a I over how $X may maybe we you you sale? about can much – OpEx think of sell just for

right we’re definitive Yes, into we’re now, not to not the get reasons, of in specificity of agreement the documentation. obvious process the able

end described oil at And can mid-cycle is the I of so year. the out predicated the and those had What you were $XX year, next drilling that’ll associated on be of looked first that programs. rolling that valuations towards when say prices past, valuations the in we

in kind pricing somewhat in is they’ll point back – that So some we’ll activity. and of at grow point been that time back that drilling time, obviously, attenuated be mid-cycle mid-cycle that’s actually anticipation at at

contract obvious not the we’re now, right you for with but share of of So, able to reasons. any details the

the asked On that about quarters. cost we’ve operating you in about, previous talked impact that

the two single it’s of points it’s very you on second that is, part that, Boe. notice within digit it’s guidance pennies our So low, per won’t And that means ranges. low it

today So going and go beneficial and be to going significant a it’s notice, directly not that’s because to impact. The extremely you’ll a then dramatic proceeds impact. they’re

Hey, you and much thought good quarter. was it a thank very

Thank you.

next comes of from Please Whitfield go The ahead. Stifel. question Derrick

Thanks morning and all. good

Hi, morning. Derrick. Good

kind as you flow you heard can are. certainly materially investors outlook. oil just slight great if of your that from XXXX decline business, into concern hedge could with is pivot gas. I’ve starting Cash a in it The optimization strategy pivot strategy is the or biggest Probably

in a listened half. may modestly Bakken tone and to to us a activity your it’s the down profile. flat read to That the return I more the As with fair modestly Is oil – read? comments, in in oil weighted that balanced continued Oklahoma second the to potential activity a implies certainly projects

point at guidance specific in not this Yes, we’re really time. given gas

that start not We significant think what the inventory are you gas, the be. lot the strengthening. described the bring ultimately will we fundamentals they’ll a that is a fundamentals are brought All reason old when we on stronger. main For as fundamentals back

strong. it is we��ll The shift later we’ll in begin. into the strengthening shift starts that if all. happening If We the So still of gas beginning in the gas. year, year, happens

is really flow you there was And see Jack so see can that focus And what I think you by cash focus. described in highlighting.

of equivalent over We’re gas. bringing intentionally oil to from gas. Boes rigs We of by XX,XXX that did on moving about

So flow a that a cash kept a to makes capital sense but optimization, hole, drilling we that. efficiency, from from no could’ve do

we wells optionality is we’re is company. that with really, talking important optionality, gas of make those assured is drill wells this about that depending drill this the prices see is on all we great. hedge can we what what and we’re the using go really company to or us Because and strip showing what getting oil so to to And be sure able can differentiation of

Henry And price, pipeline as in light recent for the in I on gas Great. also follow-up, of my expect reasonable Oklahoma. fundamentals to strengthening additions to associated and focus profile? to it And addition declining a tighter is wanted basic Hub dips

see an Yeah, saw here expectation, net continue type – and to of $X.XX particular. we’ll back as have you of in also Chang $X.XX. I than to on Vice from that the think, President strengthening Aaron might course comment our And prices, QX dips Marketing QX from was the rather that improving to of

that Yes, we continue Derrick, stronger next, into of in throughout we decline. and differentials expect Oklahoma to the year continues end I this you think for as production mentioned, as the reasons a would

as well. in off XXXX. new of the in to this XX% were the year of bit we of peak service XX% statewide a probably And pipeline earlier factor We’re coming

for capacity to remain supply lengthen to differentials. continue relative is going to continued that So structural

guys. helpful. Very great. That’s Thanks

RBC from Capital Markets. Please of go The Brad comes Heffern ahead. question next

Hey, good morning, everyone.

too sort question water that you to want on Just the not do the targets another water But as on can and a give potential obviously, on of debt X walk I you sale? include business, Slide verify much. down pin you follow that the don’t

Co Thanks do in to for on debt but none of have those because reducing And of also Water Yes. appreciate focused that. a But the included Bradley. question, wanted I being you’re none of highlight put want asking it those slides, of that bringing I contribution of debt level. to any the up, assets projections the script,

of that be below you’re That’s as type – will going of debt. organic of those going activities, stated, Water $X saying dependency highlighted that then that. is We any I from marked schedule the we’ve billion our this What Co for and in a we’re accelerator. to we debt, and where that none an down from will on all the reducing total

Co rapid we reduce more those at from than whether pace a that even further proceeds the So we slides. received on Water

for results. then thank the if bit a wide just been more gave point. And since you And an was you on up that. update step-out give on, step inventory you core you Bakken, Okay, pursued out could on more whether it’s you very a guys wondering year the then. Bakken I little than just since in commentary shaping maybe broader this how the see at those

Yes, you bet.

South We our previous to wells are and successes. following the have to completed some that further are outs up step

of the those in talk about fourth quarter. results some And we’ll here have to so

ahead. Thank Go you.

though basically as safe out was we’ve basically It’s proven volume. across basically I saw that while out and say to step

point, It’s a Harold. good

we as part growing main yes, continuing your we the of outs? point a of question we are. I are, then are the step as And And We just be that see we’re seeing results still guess, the pleased our is, with in definitely portfolio. to here

Okay. Thank you.

comes The from Neal Please next question of Dingmann Truist go Securities. ahead.

Good on Thanks for my is for all. This Neal. Nate questions. taking morning Svensson

SCOOP my with to So regards acquisition. latest your question first

northern versus looks South it of on SCOOP or the be central part more on, the thoughts like if the that discuss and place the might acquisition plane. So of your you just could areas a quite far

you’re the this more oil in weighted area. we’re weighted, is more, further – say it’s this sense in it’s in a Well, down oil seeing I area wells bit south, guess, correct little seeing I down the but you’re what performance would from

seeing this reservoirs also And get multiple gets those there think that we of thickening have that showed those Woodford you we have area the also and as four in wells plus we of great down are a Sycamore, in type that performance in example targeting. and targets two of couple we’re there. we’re you’re reservoirs we see are a or we seeing. the south, have it targets have within I there that multiple you two In the in the zones

have targets multiple reservoirs a course area we And them. So the also do being see we Springer multiple as of within with well. in component this

an is there. say, that our it pleased to oil and rich I I continue we’re very, So position going with would build we’re a it’s area to guess

just That’s the hoping Dakota super And I’m latest on thoughts the your access find for can helpful. the follow-up, developments. you

this the in incrementally like seems it arguments took some the surrounding place oral there So that were DC week. appeals press earlier of negative court

if have thoughts wondering around changed you of at that just have I’m all. the outcome So eventual

Nate? think a Would I up just little Unfortunately, mind it, bit. repeating you you broke

Yes, no No problem. problem.

So I seems additional access this war like latest your arguments Dakota DC just the wondering court out the week. provide earlier negative was that was appeals the you of there in came on press It thoughts could if surrounding developments.

wondering that. on just thoughts So if at all your are changed

out hopefully position wall On a very seen that have case. is in as shut legal And they that feeling real would strong dapple got not be comments strong that, a Their down. They’ve expect transferred appropriate. came be you they is yesterday. prevail still there do that cases will

Appreciate Thanks the great. Okay, commentary. guys.

Jayaram Arun from question Please JPMorgan. next The go ahead. of comes

allocation of model South. us official year. if some next to you between the light – it’s allocation being morning, allocated I’m good the and that programs, And look you’re kind where from? wondering on using next year, on some how opportunities, thinking we of capital your that you just know you’re we capital be I capital pretty the a as a more about, think I’m bit North gentlemen. of the early, today to looks but about could think guide, haven’t trying is gas what where Yes, was dynamic to I as just, about And given shed

– on the So rigs going of got program look South right and North. capital at got in if you three we’ve now, it’s the the we’ve two

real rigs and But with in Jane in will up and in $XX doing. with dollar Again, the everyone moving fundamentals what lot you’re and we to there’s we’ve a And gas was around so That’s a in as prices that to as the point stronger were movement in thought the going then We’ve gas off-take pace call prices be of – so about are And on got start what range May gases, flexibility gas. we earlier XXXX. time. be may a out to sure in strong. on depending that. might area markets. the pleased I’m is ended in we rig then same continue or the possibility into been the the we our of access for Oklahoma they’re That’s the, real mentioned with some proven things move accessing good commodity utilizing we’ll

is know but in far that’s perspective drilling. your of with I the models, going a what to And to at South, really almost in as that’s understand the you drilling wanting not of as specificity to where can be you’re modeling, commodity stronger So for what lot look the North we’re whether be your we’re price. going

too the Clearly, and and maybe here, wanting many the you’re there? got pulls we of debt not pushes it. some finish for something the negotiating is one you of to think about, broader it, are are that what but with details here you thinking provide about and And Street maybe Got some we line agreement that getting what Hart, are as Six John reduction an understand objectives? to

than some It any is have. on did indications we situation where we that. timing of can’t a give We’ll disclose more we –

more. future to to something looking in we’re having So not future the distant the announce on too of that

to operations ongoing within in of substantially that the factors. assets growth I the that grow a can lot basins think are our value there at are These critical that. and we’re their assets of are we

partnering strip. But got with are capacity, modeled debt Once acceleration you as assets the they we’ve be compared reduction out what need come so of and that with first. financial very towards we’ll time. that information to earmarked near across And we at term a immediate will in those in someone proceeds that achieve for that, we more to line get finish important

reduction that of debt any always possibility don’t Co And this’ll debt without bring into put an that’s front important type any on make So credit be these for those us. flow, just we and more move debt taking together slides transaction. mentioned, there’s that the path that that slides the of we our there’s all want as to sure show cash we you things, know, Because Water just any as of work are anticipate accelerated, they why out. in have targets a John money ahead And schedule. And those the one. we’ll targets on to showed it

across We’ve year I cash is on cash given extremely flow million being flow we’ve positioned, This Our with midst the $XXX cash here on competes group. Water in generation at is you again, something do XXXX. the the ongoing indications flow. Obviously, an that quarter. Co Co accelerates the and about the to Water and of with in the amplifies able impressive cash yield very reduction free flow that our pandemic dramatic fifth of top numbers. end anything of free well industries generated we’re only debt doing consecutive that peer are third and mean, without

lot I hopes deep a generation capacity and cost and think that’s inventory. with A have reality, of very companies impressive. aspirations low have we stronger

next cash million And that what Is that right? year guide $XXX is $XX. at free flow

We that on $XX, $XXX you $XXX a at at ranges some breakeven at $XX, $XXX Yes. $XX. million million million $XX, of gave

range of XX% something did you a haven’t a gave also XX%. before. we done We to We reinvestment

variables our going from So What I we’ve you’re we ability. a what think you lot and just of is is our given it there. hope capacity

of And that. proven being history to Our job of to able regardless pricing. generate do got a commodity we’ve is

Great. lot. Thanks Go ahead. a

it’s Arun, Rory. And

provided Slide details the You of the X as can of that on see in fingers his some deck John well.

Yes, catch I did that.

there group, in and relative X, X. efficiency to Slide to certainly viable. cost It’s comparing want get leadership hands all very around strong. and very capital focus There’s X, third-party broader and data. Slide a to the That’s your Slide a a then X, it’s Slide It’s lot on true.

Great, for you gentlemen. Thank that.

talk Thank you. Good you, to Arun. to

comes of The Please Sachs. Singer ahead. Goldman question from next go Brian

good morning. you, Thank

Good morning, Brian.

morning. Good

there’s how of comment appear you’ve low mid-single a next moving basis that to the about average a on there’s the year. talked step But highlighting a I you lot quarter pieces volumes the kind kind quarters. I that both Boe for you’re because like the wondered with production talk sorry, on on if your coming few trajectory strong the of digit, wanted And a just gas could over – in low-single big here you XXXX. of natural Oklahoma. and up to the trajectory fourth over also on then side in ask I trajectory, year-on-year that think a natural press release. It seems basis production next see gas sequentially oil to production to of you course imply on day digit would on That a growth declining that in

to year, on that in of more think and We on time. variability a a one February. lot you projecting the focus of next said between you on depending did any a of obviously on. can And in with low-single is sizeable indications of just worried you out bring a you projects period Exit we’ll do February. particularly I when of we on are that digit projects in with scale, about out see quarter-to-quarter coming come timing that we’re XXXX different very given volume come lot significant give year-over-year. or We’ll or growth I’m decline nature anything exit, not

So there’s in there. normal fluctuation

particularly depending cash the optimize cash underlies we of quality on we and nature depth that think oil, flows flow inventory the generation XXXX, in particular condensate whatever good I gas, and an is. where can about market feel that and the to

set I for well we’re XXXX. So think up

Yes.

on other $XXX million about, The on, that. talked bringing we’re we’re Jack into wrapping that point that that

$XXX an to go it’s instantaneous there. So your calculus into not million

inventory Great. core developments on Bakken, pushing the terms inventory either particular as since the in And is my the you Can not in Thanks. within then or that quarter-over-quarter. follow-up beyond that side. sometimes the talked about about in just necessarily out talk is of enhancing

Brian. Tanks,

growth years. at next WTI for of the capable as inventory about talked we first third take maybe tests it respectably. just basically we’re company some and an rate back south a in XX of at that production going before, results XX% X% scheduled XX% if have look on years, delivers the and step you at its we there. to standpoint, got down at with extension this annual a the seeing that inventory are confirmations from of over a And and achieve rate five to inventory our look inventory are we represents and return about growing a pleased just the areas. growth $XX quarterly our do a outside, And X% initial we’ve As compound we to $XX and our the But

the cut you XX%. oil average now, over and years five So say seems it could these around right like

be is our area. ago, assets And there’s you demonstrated proven predicted there. with So is pointed just well, really follow should something we mean it’s performance and can the inventory our one the well a see results assumed we from year this saw, with that say as great in a and of wells you is the our this is think there’s through reservoirs density. not I this out assets know – well-defined Woodford springboard how I an anticipated or

assets will number assets point that others. our inventory so reservoirs, or flow. x produce, So density and why and performance key our our known, also estimating a we’re And of fact differentiator that we and we that from is very predictable probably we repeatable, have really of a these x in of very, reservoirs and is and understand ways performance well not lot there and it know that really and production obviously that our very year-year-over our and quarter-over-quarter is our guidance, the that’s cash is from

quarter. said we’ve bolt-ons. done obviously, acquisition. just always an on nice in I in Oklahoma, this a told do We broader and for added time I we’ve that this anyways, find you it have through we in times these And us an is better inventory these, perspective grow. here we this to gives that maybe like So say, opportune our like that bolt-on to to of think that we And

really pretty year, We it XX,XXX, by this doubled this operations. above in the that we also doing mentioned in actually acreage, under this much much XX,XXX areas here more we’ve radar, almost smaller of Oklahoma earlier added basically bolt-on that and in Oklahoma but acres our in it of getting a year, adding core almost – adding another acquisition, put over

the this is see opportunities that we And in core so themselves know to And I just in are just our build like we’re that always inventory continuing think as really that times show our that areas. these.

it’s inventory really we’re and where where pleased is going. with our So

leave I’ll at And so that. it Thanks.

you. Thank

go question next of Fargo. The Wells McKay ahead. from Please comes Joseph

Hey the you could guys, about this know we just in right election forward, is the got how remarks, around know I Joe thinking environment give thoughts outlook a given regulatory what detail now? on you’re little moving opening some but for the around more we the Nitin. for

survive Obama cuts. last that Obama’s dam during off it play death the by can. we’ve able President Yes. add thank to control looks Senate we suffered a with thousand it, were off like the way to the We like to him House And but best administration, him legislation sometimes That the and the representation. goodness, hold fight

So that’s to hold again, Bay. them plan, the a game with at

turned to it’ll used game out cut to So goes it again that if playing again. that out I of to because I we Democrats be and a good And do back handle on nobody the everybody, earlier, on up very thing talk think work that the that. will to strong have do want The gas, that that like to to way. we’re about us is, want support

Continental important. very, this realizes is is very Hereby lucky. that

We than less close X% have exposure, very federal to that. something or low

going what not other be we’re fight might the to be. problem people like anyway, that’s question. Thank But game, fighting I so And Good that the said. you.

And – outlook – how Can for market. quick thanks. you yes, mentioned thoughts you just provide around constructive some NGLs? see then guys it, the you natural NGL you Got the gas more

we how do the see was, question Was that NGLs? question? The

Yes.

Yes. is Aaron Chang. This

through oil the year realizations into to seen we’ve the pricing second from We’ve and NGL third quarter, of seen that into we increase it the our move that same the the crude to XXXX. as appreciation expect similar end think quarter. continue we’d to I appreciation

with What Is about in correct? third NGLs Oklahoma? gas that frame

position in flows et earlier, that dry NGL is our to very cash can a condensate to third third obviously acreage that about is gas rich uplift on and a a and and condensate cetera. condensate, be our It’s very Oklahoma a the third returns significant the

on good of a We very we’ve talked position and got outage. valuable option got a So the call. commodity we’ve about inventory lot

Thank you.

Thank you.

The Please comes ahead. Jeanine next from Wai Barclays. go of question

Hi, Wai. This Thanks good taking questions. is everyone. for Jeanine morning, my

you. thank Hi,

Slide SpringBoard and maybe So we XX quality the and cut I XX Thank subset. you saw subsequent on and my And between well SpringBoard Slide any SpringBoard little results more that differences terms on in SpringBoard on really then you. could IV. about oily, wondering the a looks of the oil know are limited just It like talk you consistency. that a if just provided and but disclosure III very it’s we’re question we broadly is

Well, line was see curve. got that on comes performing these Right. see is we’ve And actually there can Slide right you I what you type outperforming think from can I. a curve XX in directly SpringBoard

we’re I wells as And far there seeing so in and differences type delineation right is mean, a that’s the – two, line are curve. the unit dash X.X, between that contrast now, that these any this actually area as

that, really a wells significant So these produce these outperforming curve type you’d expect a mainly margin. more, but are by a that unit bit

it I and this And do reservoir results with area. so the think pleased has we’re quality to very with in

of like so performing all are And just, these good very areas. areas I mean

acres additional pretty We this put to in at I’m have very last under and And pleased managed areas year. together to with concerns pleased XX,XXX the fact, no in all. combine much during radar we’ve about these

Thank you much. Great. very

you. Thank

& Please question next go Coker Parks Palmer. comes Noel from ahead. of The

Good morning.

good morning. Hello,

how already in way SCOOP were that I the And And the more right you acreage. radar I or just said in if had Springer. of your curious this – the I you prior curious also when the the initial was you of had I guess neglected that SCOOP about acreage whether XXXX did the back sort in you of in, its since they timeframe. to had the screen position owner been wondering in actively acreage was you proximity if bolt-on And hearing was back on about stuff hold. building just play. little wondering we’re talking had was or I acquisition the sort drilling bought interested long been a bit sort

So familiar in you other real words? this acreage to

for that. prior This spend over is time. to speak we’ve dealt while extensively I’ll good them the in with a Well, industry a and

the And to so weren’t new they play.

relationship them. we’ve with And a so anyway, had good

working so – – And have or constraints capital had is had they they and been it actively forth. at so

an No, active they’re player.

like, deal valuation things of was actually curious They guess ask were was an to hit of did sort price. process whether bid the it or active to one it upfront were player. I’m on getting you of easier then still take I the – what the with awhile And the

dealt This time normal and long process. with time we’ve Thank by, so a you.

long. get been guess about bit we’ve just for a talking the all Okay. I to trying is, little obvious so case consolidation when for out

and little this think you’re seeing of talk you make just maybe SCOOP. more just why seeing generally now other and can the I’m more deal at seriously get do what selling? think sort in might about trying So, about to you a few people a

active Well, while. we’ve area the for in a been

player acreage So other is this is Jack was a from plus a combination as players of highlighting.

been it’s up since this area. the picking been something we we’ve on So ever event going that’s SCOOP. got just is one not in acreage This that in

the gets So geology in and and sure it you’re making to geography spot. understanding your right really understanding the down then

Sometimes different people have different perspectives.

geologically time been good. is we pursuing in our increase quite is to continuing area something the And is know this we’ve that that for so some ownership

the not since on. it’s so all over last activity happened merger month And something going just that the

just we bolster Bill. continued each mean If standard we back this find reasons Yes, I to and do continue make operating reasons went bolt-ons to we for these geologic position And our performance is and agree, and we strategic in moves why we time, year. like good just areas that are did. procedure I that just us. that you’d core in have this

build a this an company we comment, we strength on Jack’s going I’m the just who really made organic because that It’s to do. he This here. something of a company point. That’s is on Yes, built good We development. are.

good have that space. We in capabilities

maybe next, different with areas. we out or And what proximal to where it’s in so going team whether have, we we’re GSI’s should always our looking be

organic our DNA. who just we growth is part part that So of of are

it It integration right. to make happen, minimal takes

our into right won. operations dovetails It Right. existing they

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

additional I turn Thank joining the Mr. to us you, any like for the for IR again remarks. everyone some to closing Please with today. reach would questions. for to out call over Hamm team

Yes. team great highest I and beginning this workforce. his level, and up taking to early of know and XX%, is day awful workstation a for of great Thanks, call. execution the to had our My in a advantage XX% Have Thanks pandemic. their good of Rory. to lot. this perform and recurring May to during very third you ends our heart of allowing Bill all workforce existing many opportunities them quarter sacrificed this worldwide that at Continental’s

today’s for conference The Thank presentation. attending concluded. you you And disconnect. is now now may