Continental Resources Inc (CLR) 17 Feb 212020 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Continental Resources, Inc. Fourth 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 of conference Investor like Sabino, to now President Vice Relations. would turn over the Rory I Please go ahead.

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

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

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

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

those be global the supplies crude XXXX. inventories dramatic U.S. optimism and both oil year, good last tighter last and generated COVID rebalancing $XXX Rory, And their million all to and negative April of better-than-expected vaccine the XXXX. on in ever global Despite on time I'd we performance now everyone. appear to a the as year the demand impact discipline. past our for market driving teams moratorium of orders go-forward current free employees and WTI permitting you, Thank higher. delivered for federal and tend and leasing begin through additional by capital was incredible of challenges of the territory challenges cash price, gas executive flow Despite and production, year, hinder supplies to to sustainable arbitrary, metrics prices in falling like one cost unprecedented oil regulatory our faced commending morning, and and U.S. first exhibit cost administration's savings. approximately producers the The the Obviously,

clearly to industry days. play base. system. have impact solar system. subsidized the significant grid grid renewable-laden domestic based have approach heavily and American and is and a for a to prices access well-being. seen future weather A events human wind the that limits governmental oil and light past powering A and grid as reliable essential producing safety of a is grid part will imperative oil based The not continue today in sweet power to gas landscape vital dependent to XX the of instead world mandated gas reliable We tested to A natural the possible reliable crude. natural this the U.S. is science-based and seeks a power gas the energy dependable Recent with

of American AGS a for AGS potential step part where X are completed gain Select shows to seeing was benchmark. completed gained to X, track this, migrating had point the As last with Houston-based want momentum. Phase where delivery Gulf with it and Gulf of time. been we progress much Coast. centric this fundamental to by This we establishing Coast at year is we're Phase area continued established or its AGS barrels. Gulf the that Coast Great a so recently for on be AGS

the are where are we process. We pleased in

Continental's energy progress our security, we to we've top returns. reinvestment value be affordable capital proposition. to ratios the this critical disciplined part will and that of importance proud producer, investor We addressed concerns producers believe continue made progress independence turn by of Berry. E&Ps of energy Bill the years and through our U.S. remaining see to creation. have past protecting call supporting of been also economic over As XX prioritize and job I and reliable nation's and will energy have an shareholder On a preserve now the independent strengthen key the U.S.

Harold, the update great to on got our to us taking Thanks time Thank you you, call. We've good for join everyone. share and today. morning, a with

Before I be might know on a about into that in. get talk the interested Arctic little through go I and my bit are remarks, going prepared the things and blast I thought topical you'd

producing electric working about that As keep power to Texas and helping are online, you can stressed with our well make company this shifts this company the teams blast regulators; the can up our gas here generating pretty actually the so pipeline with also and our working we're entities, well sure wells delivered getting the getting we That we up companies, day every power with We that compressors we're with as that is that working through. as We're able everything to power gas. that running. cold them and the produce out are XX-hour end grids the what side-by-side, XX% with our be know, the we're we other of with government state system. working needing coming that's are their power to working states all to so keep

X% put the of It's that gas something keep all gas other been they've As the making we've that load XX% in of about I but understanding operators on. what effort got largest is we into to challenge, most from XX% on real we could. the to said, to need is as possible we that state, we felt to utilities the a sure able the every talking this just of bit producer that

Harold, us. and freezing stronger to and of Continental barrels flow free their that Continental for So exceeded our commitment, with my of employees on resilient to returns oil the happened cash nimble really want for shareholders. what an delivering and Continental and prices unwavering faced strength we the been imbalance and our capable and spite like I future optionality even prepared demand a cost, and and industry showed the year thank XXXX, up of. our guidance most supply recently low with delivered of who, capital worldwide our all our remarks. full XXXX for my the to during here and experience, to to following. We've get discipline, and flow let all, negative service focus set again pandemic, million our and saw continued We challenges, unprecedented demonstrated commitment which assets of in we're some of a really of snow able cash to in shareholders. XX I've into Thanks our years with free and In most operations, outstanding me dedication XX that, on in year of Oklahoma

We XX.X% and which always as delivered of were we XX% of Continental focus fifth ever targeted and Oklahoma. All-in respectively. by part captured well our generated strong year XX% Our of our ESG what reduced again million. our gas endeavors consecutive deliver Operationally, for relative Also, our stewardship. generate results we We $XXX nearly we'd flow, said achieved safety underscores were to we million. of more, best in on the year, year and costs said. significant on well that and $XXX to free cost Bakken cash improvement X%, guidance performance our

below CapEx day we guidance barrels XXX,XXX said per cubic we We billion. We spent XXX would to In guidance of million. we'd XXXX, perspective, produced We billion. million XXX,XXX or less exceeded delivered XXX feet XXX.X $X.XX be at day. approximately said our million produce and a For XXX,XXX. $X.X at X% to production versus

execution expense our did Boe operations the is The production operational job per superb a saw $X.XX managing only versus $X.XX we teams of Our in capital beginning. of and discipline our guidance to $X.XX. XXXX at

proposition. ahead delivering provide more number respectively. and John and absolutely to But operational excited returns we're XXXX, let are a highlight share As we our that and financial look will one committed of to goal strategy our as shareholders. to strong summary, to we me Jack value details,

part As reinstated we require flow future XXXX Any operations debt that reduction in Board of dividends are considered of approval. and cash dividends. future will through of targeting from XX% excess returns commitment, in

desires it as a to possible. as prudently returning, However, dividend has the soon Board indicated

We are peer-leading free what yield. of will at be believe WTI, flow consecutive approximately we $X positive XXXX billion year projecting cash flow cash a with our sixth $XX in with

$X billion $X.X debt billion of debt in reduction to year-end. approximately about by XXXX targeting total are We

As billion to below quarter $X target on call expect billion. XX%. third reinvestment $X to our which current flow XX% our to total long-term rate, we in order slightly accomplish is reinvestment indicated debt XXXX, XX% billion, framework spend to is our shareholders, In ultimate we XX% cash of $X.X to return

to in We production total expect to X% XXXX. X% deliver growth

X% to by Importantly, expected be which to our continued which is are volumes down to with performance our exhibiting are X% X%, to rise expected offset strong non-operated volumes, assets somewhat X%. operated

volumes oil-related two partners who the delaying this projects XXXX in non-operated Bakken, impacted being Our by are year. are larger

We're leadership last and some saw rigs recall, we average you As year. two growing seven oil in our maintaining Oklahoma consistent XXXX rig that gas shifted year gas Consequently, growing level of to and costs of an the the also low-cost we the activity to to projecting from rig of increasing with North. second half in we fourth focus and quarter in our are first the as in the oil XXXX, on XXXX. see continue XXXX. half We'll

Jack excited in We the our deliver will all to announced River and basins to add a more layer Powder incredibly including basins in strong but asset Bakken our we're the across accretive performance our assets flow cash expect Basin. recently Oklahoma. asset details, provide to oil-weighted rich third

does safely states our does of barrel. with four shut we our marketing have in on with our fact, collars supported we'd transportation day out XX,XXX continues for expect oil, scenarios. corporate-wide we'd DAPL in not it date, hedged scenario. once fully years, approximately of differentials $X.XX. been independence from piece infrastructure, the we of the feet more With X,XXX firm cubic nation's to additional Even option momentum by gas $X American respect about effort down, the shut an guidance. impacted adjudicated, expect to side energy our and energy Our per of security. no midpoint DAPL, though, XXX and by $X of the that is of any To XXXX. adversely a million DAPL on a of day barrels last have about a XXXX favorable to natural to DAPL has aided If transportation prepared numerous been Bakken long-term swaps positive strategic to down, has to capacity multiple expect be If, and our is has critical takeaway our only firm but Cushing, line in it dilution at the differentials to The be barrels under we added deliver be a operating differentials basin, for of

be excellence opinion leader flow. publish continue can will Company, by focused the and Lastly, we to of as are, our stewardship shareholders role and Jack. in are the I'll while our ESG generation world better for remain and is delivering now free than set midyear teams at company again, prepared to to In we cash committed XXXX, report when communities the we over the where environmental thinks like be Capital core a every comments. level shareholder we impact we returns more cash our efforts returns in around our which continue to support and Across call execution sustainability, held society continue fuel the XXXX of and With ESG up a maximizing strong owners team discipline, XXXX. our shares our keenly XX% governance. corporate its by -- messages we serve program, stated to operate. in and as free are. flow focusing of Continental operates to Continental to in The can same insiders, turn because ESG acts, responsibly said be on on

I joining Today, Thanks, Bill, XXXX provide highlights operational key from some will Appreciate drilling for and morning, touch you plans good and everyone. our our XXXX. on call.

the average completed our X reservoir SpringBoard we expectations, Results type Oklahoma, Slide SpringBoard XXXX, on in focused designed curve in start right development as by XX moved I. you the into on where This performance the demonstrates can Phase and track as from beating consistency reservoir of majority Let's the on Woodford Woodford optimal X. the were I of activity teams. wells slightly during see of with our density

the parent with that wells drilling outperforming SpringBoard Our from and Sycamore III in IV X. increased in are of completed type thickness Woodford these X for and wells, SpringBoard XXXX, results and early in essentially Woodford Sycamore these reservoirs two expanded and the reflects shows significantly unit upper impressive. thick Slide up to reservoirs Woodford which curve. the two with the III, and is have line I, IV, and and both expectations thickness shown Combined, SpringBoard two the reservoirs. SpringBoard and and during our reservoirs XXX-foot performance into in reservoirs SpringBoard Lower III as the been upper Woodford lower Sycamore of our both twice recently and This also producers, targets Slide is four are Sycamore including on

per rigs during feet of have Our combined maximum second strategy weighted Since rate Oklahoma on put initial wells flowed assets online of some oil barrels and we day. our in year, last last of gas gas new on XX-hour significant XX months. volumes million at X,XXX gas of focus to that half recent year cubic a the of October XXX brought

natural for while critical historic Arctic hit we were gas had and activity of Oklahoma the another in prices benefiting mentioned. the volumes these Bill rigs XX% slowed while blast, continued Approximately fundamentals the expect natural as but wells needed year-over-year. will remarkably year. our anticipated, low, a on As 'XX, focus supply gas, first country results as long-range online, half the Bakken, gets the the to in constructive to be during of providing primarily continue with the completion XX In from the put year, consistent to our are

Slide completed the average fourth in of fell with on X, line shown As three XX in right years. the quarter the prior wells performance

will the deliver the illustrated results XXXX Bakken chart. as by on We expect line our dash program drilling similar

we operated Slide quite average leasing Oklahoma, projects also our we are an completed four during million XXXX we results. of Combined, approximately our to in in acres oil-weighted square development wells area interest expected a We first very completed now and that return acreage, density have are with through cover currently on approximately southern legacy of dominantly the are to operation, along deliver these our by XX,XXX and up density miles it also up estimate five The our expected that of trades. and control rates cost-effective extent grew In outperforming our XXX XX%. at acquisitions, stacked bolt-on our SpringBoard projects. operating the Bakken shows SpringBoard wells Continental, are and to of drilled, XXXX, we down. pleased reservoirs unique, remain economy be XX% approximately scale During scale and wells With the of $XX of efficiencies X lower assets provides future, costs to XXX this an net ownership in eye working assets. these well added and cost excess approximately $X.X targeting WTI. our operational multiple of is drives and with the wells

XX% development of oil assets net our that We adding oil-rich with stacked River operations Resources in located The adding a efficiencies before be reservoirs. Approximately late properties of into platform also by million include Samson strategic operating XX% economically resource of of basin. early of windows, assets Continental to as over is we our multiple to Powder basin XX% the this shareholders These benefits compete expand portfolio, is oil. with which per this even of proven its acreage to and solid XX% un-risked acres Basin. growth, the production condensate potential BOE in held portfolio. another stage provide of production. for made technology. to Company's great XXX into day, from move In our is The is the results and the the oil has acquire December, located The entered PSA where in acreage the strategically BOE and to X,XXX XXX,XXX net the approximately majority

developing capital-efficient and on approved various permits. reservoirs XXXX. intend Our XX we to to than shown with teams We two continued uplift of and begin leader the quarter the ground, we are in delineating to assets second through peers, federal the rigs are our among teams on low-cost Operationally, board the drilling hold continue value currently our the our more oil-weighted of costs efficiencies today, lower and X. the Slide across ever be as and increased

for have million, and million for well the full completed and at including artificial XXXX. respectively, but Our cost our additional reductions cost facilities Oklahama now $X.X $X.X teams sight in and Wells stand lift, Bakken

look drilling take Now quick for plans XXXX. let's a at our

have for As announced year, the in operate during plan in to the billion in We X% drilling one in to rigs Basin six the to two our to of XX% release, $X.X and Approximately XXXX. five for XX Powder the targeted Oklahoma Powder. allocated River to we completion activities our four and Bakken, XX% is assets. Oklahoma average Bakken, in with and an

expect We to I plans. XXX wells exit now progress. non-operated net John approximately the on wells over the XXX year call color operated and to XX in our and more to XXXX provide net complete turn in with will

Thanks, Jack, and good day, everyone.

Continental free our on mentioned, generate Bill has As proposition predicated cash a strong flow. expectation value to significant

highlighting We to prioritizing million would in strong capital performance flow significant free I see quarter like XXXX. goals flow by year. the for of to the additional our reached. debt the Ultimately, cash debt financial We full cash to pay begin of deliver our we form $XXX free in to million shareholders by of return returns as shareholders down. $XXX capital of expect are in and fourth generated dividends

at our guidance. in X% end came $X.XX, than the low BOE per expense production Our nearly lower of

in expense line fourth $X.XX, market year-end, recovered. and million. prices downward reduced approximately with this revisions an G&A per $XX from at was DD&A reserve increase The while BOE in at to significantly XXXX, reserves Our quarter periods, in proved of since due increased downward prior DD&A revisions our in resulted have guidance was which over XXXX resulting primarily

BOE to $X.XX BOE $X.XX of of per We $X.XX expect in and $X.XX XXXX to per total XXXX. in G&A production expense

billion with of mineral cost, our to We target of CapEx focus capital mentioned, allocated relationship of acquisitions our portion the expectation in are remaining for to Franco-Nevada. deliver to right at billion reinvestment Combined XX% to XX%. allocate we capital 'XX, in total X% cash Bill with production conjunction mineral continued $X.X and As our this Franco-Nevada's with efficiency and This on net reiterates planned rate with spending of Continental's facilities, $X.X plan non-D&C below growth, to to of mid-share expenditures. XX% includes D&C, withour discipline. made workovers leasehold X% other

in carried XX place, With the structure will XX% $XX of the will or and $XX Franco-Nevada fund million, remaining mineral the spending XX% planned Continental fund or million.

on timing. maintenance capital, long-term average we on an expect update a within flat As range commodity growth. to mix X.X our project our to In these ranges, maintenance can billion, to low and $X.XX is we capital depending expected of varying X.X deliver

to consecutive free year expect We deliver our flow cash positive in XXXX. of sixth

approximately now are of billion We current This at flow cash Hub. at to and prices higher Henry in are flow yield to XX%. of significant year. cash $X cash our debt approximately Obviously, WTI Thanks to strip. projecting $X annualized. $XXX free Every projecting this sustainable expected flow $X.XX million flow free reduction increase by are we outlook, increase a WTI strong cash equates approximately these is $XX

$XXX was a we at Our than XX what the significant quarter XXXX and improvement year-end. $X.X from at is total million had January third debt which lower billion,

approximately at Xx billion budget have As target to and debt equate billion budget At debt-to-EBITDA be Bill XXXX. by total to prices, year-end would long-term $X billion prices. $X.X of $X we billion, debt $X an by we XXXX below to which approximately highlighted, year-end or below at XXXX of ultimate expect

continued remaining our call on on towards to expect are XXXX, commitment free bonds, revolver outstanding off remaining reduction, to of In flow million calls paying use part $XXX As our the maturities. we we work off near-term XXXXs. to our and our 'XX pay prioritizing also debt cash

process, to highlighted and the monetization Company pursue transaction. flows. in operational enhance as report previously maximize cash on update broader full flexibility an long-term As the to the has maintain the has the assets our Company Ultimately, yesterday, made further disclosed not of corporate to elected these water decision value this

sometime we but At our this capital the down dividend, form our price management in the the primary that, debt we I as and aligned back also like Our down, it the mentioned. paying protection will near Board our more reinstating return of against of to operator. will and would Q&A in the sustainable be a focused debt, of Bill time, but pay turn of are are see growing dividend to With over and on wanting volatility shareholder build begin are call, returns Thank future. eventual ready to by you. the we to

now Dingmann our will question-and-answer begin Instructions] will Securities. question the of from Truist first come session. We Neal And [Operator

details. morning about Good bit all question is how can little first My talk to and you great just, [indiscernible] a

not We're Hi, up. picking Neal. you

Is that better?

much Thank you. better. That's

Based and that, -- think to little run about comment on bolt-ons, PRB? these looking Harold, piece just you you Okay. all's at you the Maybe prices? other M&A the would more thoughts your will your I price capitalize besides on thoughts agree, about of how I Are you continue bit. a actively areas?

very industry currently. lot accretive And Well, the board, like don't possibilities. bolt-on have at have the at bolt-ons are we there aware. across but been kinds the the certainly out anything past done seeing targeting those today. And a in that the as of And we're Company all that we're we've the certainly, strategic those to look we're in M&A best time, -- this we everybody

Or you're market what going talk that? of instead there's that? why monetize potentially just else why Is would Got you the out? one to anything about Maybe Or or just it a to it. thoughts comment, Jack, keep monetizations, on of that? just on you decided water all then to And for consider if build or maybe the on to monetize? sort based there could continue not wasn't follow-up. your

we for out us it's looked a it where for good we a optionality if put keeping the capabilities well operational thing to better and and it. with the the worked both monetization, see Yes, try question. platform we company At us. at to that were with Neal, Good as worked do. and had by flexibilities was of provided together the the go a to Bill. we SAP real Yes, that that day, put of could to Company thought That and that end something

So up the on. we that's what decision ended making

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

taking managing based My Thanks this everyone. off morning $XX the freeze question higher move and is the than year good on that. WTI deep budget today. question. CapEx -- The with you strip through My really sensitivity $XXX us and Hi, my higher And is million prices. for first doing that everybody flow gave, hope of that's is is much cash $X first XXXX well to the that help helpful calibrate. for every oil

So if XXXX is PRB in to which anchored plan? the the reinvestment the working maybe turns perhaps that of the remain and some plan attractive or be at work out strip to delineation accelerate rate, XX% start would the pretty correct, on be

Yes.

first And use the I debt. a of shareholders. look for has option bringing vehicle the And then And what in. through that dividend continuing first is be to back that. the desire we application that is there. application addressing to that Board one you're think to the an we as second the first a return you in, at the we mentioned and what's that discretionary I the coming consider mean would it probably there's cash

we stand start in going line through probably are anything back extra doing at in before CapEx. one that on those looking the money So ground

just forecast. on versus 'XX is gas Okay, and on skew oil great. second your question then the my oil And

overall year the take which more strategic outlook, in of Oklahoma some is half last the in of advantage will this So the oily. the two-thirds of strength. towards gas-weighted back north, CapEx assets to about D&C in price more be year's commodity shift And made you in

into forecast operational whether production the that volume market? percentage year? can fully the the performance that's isn't Bakken? in the there's maybe does new whether relatively getting you been had in how Bakken, of spud in specifically, for by we've some any oil wells, oil can GOR maybe this the between Or discuss first and consistent? appreciated there's whether And address you maybe the And lag translate the some So the oil on flat time if questions in kind base changes

probably start off and Bill. a this will little it. into is Yes, John I'll bring then Jack extra and texture with,

you you to end If seeing oily want in of what a or it couple looking prices you you up play. we anything that for around drilling North, If intentionally John, makes the the as did with XXXX, XXXX probably still got movement suggest, stated, to… And probably oil we to we back gas this to go South, of lots rigs good Jack and doing in be the North more have as mentioned, put at change the and instead X% from extra that's gas. opportunities come up reasons we're in moved the we volume do the have prudent up itself on North time. be the seeing at rigs than we're manifesting in did activity more area. We those would prices the the rig it this course, do that to in you strengthened going point of commodity you of

we're what and just is of 'XX, 'XX. that in in right, South reflection seeing we Well, put our where continue is you're And the dollars. do to in it early a exactly we'll

first so, And the bringing my on another high-volume that have prepared mentioned the you'd get of year. XX expect be wells to that half in we to on brought also going volumes. and be there, I to -- you're we're wells, statements going gas significant are going some we've in

see really really more oil. growth design by these little you'll in all do gas that in this bit so, And are a you year than

in from project a side in might development long 'XX 'XX things. on production see big million CapEx we the Creek, a more be until that you'll the type CapEx one of $XXX of to we're in about Yes. we've the doesn't coming going spending to which side is oil a with is on spend, And 'XX. The talk that project from lot production 'XX happen And the one of Bakken. other that's got life long up

on XX And this. is working that, that, color Creek Jeanine, obviously is the operates Yes. we've we huge little I in from more can too, give interest that project This Continental got you Long have XX% wells. a a unit. just and

coming rigs And to or 'XX, And of in two on be going XX% see so XXXX. those of in brought approximately XX% will to are XX% commit you'll in about that wells rigs 'XX. to the we're committing 'XX, wells and that then two in on

concentrated So to gas, scale. there, the but to these this we at a position A all plans of logistics all oil, when on get big going given while lot the we and water, handle have for have efficient extremely all takes being that be oil big, operation, projects it's project. it's are the you orchestrated to it this a that have

This best is also in the rock basin. of some the

is. is. That's one. project. -- this to back on drilling It excited get glad very It about to We're we're this

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

of in Quick the on And greater half -- prepared of comment maybe morning. the partners I may you seeing? growth on good impacts in second of and if the been Jack, question year. in oil are thoughts could mentioned maybe have your anticipate your -- that you you on maybe you in how it volumes that like maybe, was allocation. Bill, capital maybe a the comments, of reducing 'XX. couple Yes, if heard Bakken what You non-op kind wondering oil sounds trajectory I correctly,

are us bit doing non-op give a your the in what on partners just Bakken? some of could little you color more maybe So

Yes. are highlight them, a non-ops. talked of Maybe things both pursue they the to and the have We supportive some couple projects. that of on strategies of to continuing I'll just

capital capital and through couple down both there, capital Bakken, they're to reduced. this fact, the with slow our is This year. part to maybe perspective the until still future, on quite going but going with latter the being a where out In in a for opted planned the just spend on one there's spend going in not few of the forward planned is of the non-ops, them ducts everyone's but they've of forward different are going of as

more just will the the to oil have Got first it. bit. be overall weighted? second maybe greater little is volumes first fair, impacting half the half of Is a And Got bit a it. year or a just half that gas it Bill, versus the little

Yes.

good gas You're hit One, drilling up couple year the quarter and of Jack of half spent in year with those year drilling this we the and gas going coming of in I half up weighting fourth a last the going be first the that seeing of first last about two talking the And the that a from there for big all on. the was up about going in up last -- portion to volumes that last things. be drilling year, we're -- of we North rigs year, we're to think, about program, ramping to taking eight, to had running and year. then that taking we're this

that And up But to going that's that. so second ramp come lot you'll that's then, a oil on the half it, coming will into But see year. to up. course, later of of what higher 'XX. And be this of year, this as see -- going has to continue you're half, oil first of than

have in future. John dividend near one point the pursuing Hart. John, a the about Great. you Board at talked I some for

know help reinstituting other the rate near the previous the maybe of quarter thinking about the to see For thoughts high-level in dividend the I we could of be how from dividend it type per the in dividend memory, know nickel think don't pandemic may range. or what kind annum relative before about on it $X.XX CLR us you future? any or a hit, you Board memory, a if guys I John, was started could like felt for had

quarter It previously. a Yes, great was question. $X.XX

You launched were range. we the at start going type a indicated conservative that time may in dividend. to the recall We we

of a out number And yield perspective. will larger peers dividend a with was that line our from in point stuff. However, I

ultimately, forward, cannot go we Board. as So I speak the for

very have We obviously. close alignment, shareholder

So got and we're significant have go as runway to of a remaining, lot in is viewpoints cash with flows The off the that the we we've towards that front where us. a inventory we company. key level of with we a of depth thing want have of putting

have even So, as as years as are the that. we leads future few of to over lot in aggressively the flexibility, last greater and to in have down flexibility getting a we as aggressively going debt we

or alignment and deal set speak hate the that a we flexibility a certainly lot optionality level certainly I of for there's think a terms would number, a but with of of great shareholders. in there, I boards So but to have

variable peers Harold, your of maybe dividend couple structure just on this a adopting? that are

that likes when to of we this Well, volatility always to at industry to the seen own. companies own with are if it. fit we've our could the base time, in go the due dividend future, it there adding that out that. thought We and considered pricing. And we in that that what we considered or and something the past year could it come two investor it's our And several

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

capital. X.X Good would a on slight to regards what gas? mix your that realized low you about that to morning. maintenance flat I both mix X.X that long-term would Or volumes if just is first I billion, with based billion, capital I in it in talked long-term, of other? growth rate My shift you. range specifically, And believe and in of does think or levels imply maintenance and is was flat but pro that a to assume change $X.XX comments, similar there XXXX prepared to oil Thank get average levels? question from have around one a growth a forma the way that any to i.e. or was more its and wondered

River reason high in Powder gas. depth the of that condensate. inventory range a very a a of assets. Obviously, Part is We've dryer we've have high certainly oil concentration. of Bakken got some We've got a change have oilier mixture in there. where got lot is is a Oklahoma concentration of can also. certainly because we you

mixed can from if push oilier push an So, to if an that you a that can or shift shift mix, from mix, down. oilier capital, a gassier mix you gassier maintenance higher towards you you

and here. prices seen, as tremendous commodity views you've optionality our of a product, enables that to the amount on the have depending prioritize us We of gas do with natural

driver that a going that's So, you the forward. range of get

each that'll your that thing, impact what's the one project just Brian range. those year of in depending cycle time other that that the out, on will is, longer of mixes year And year things impact and the one

Brian we a Did of your And those? did to couple aspects question. other cover

average to really purpose? was the the it XXXX keeping that flat commitment with flat. to pro XXXX you volumes I Is do was rising based language on with on think average think whether you It that another way were basis talking used, you forward that forma I or made did. but about a going

Yes.

Okay.

and Yes, were had. those consistent efficiencies. dream ranges with but the we what we've number that base, greater production grown obviously Brian, We've would

in So, gives we've and in that been of mix cetera. bit et kind us that for and terms now flexibility of a range

industry you either not ultimately is the those And have industry. equal, to others we acquisition? have missing? could progressed here the of how was scoop late my the plays and follow-up over that but the to River prior those basin If Powder in operators And from We a acreage. there your at areas become of the been Thanks. been addition is or years PRB activity all productions very Continental then, that speak would positions from wondered, and think are you that lot where could generating leader you active been Bakken areas how look you the if what opening created the and are a And realized some the beginning. has success of define I acreage from one

We a past. very in from of as we deal comment River great with and to certainly Wyoming well. Powder with important geologic and done talk was leadership always perspective, that's We're Basin their kind not that a novice at the operate about

this so, all base to is of home And us.

all I grew think we up there.

a both us technical in standpoint. drilling well and and fit operations very So, from development and

in to same leadership I'll of shown type up Powder the look we've River. basins and other yes, So,

anything I relative guess that others could specific the in question acreage that to or using to? to you acreage other aren't techniques speak makes unique you it is that around there the bring it would that

Tony the the the core of position is is the basin, cell. the Barrett. it's heart acquired this overpressure of in we Brian, And in right

So it we that like aspect. from

about that was liked thing it excellent with by The somewhat is results. tested other position this key we our predecessor, Samson, that

operationally in is play this there this perfectly make up of go the portfolio. acreage position really to a in costs reduce So the significant add we for think set to expertise our and Continental and

of mention the last in the other window The I'll heart that, also is as oil in is this thing well.

cut oil to about particular chasing So, reservoirs in the we XX% expect all that on XX% we're block.

Leggate Bank Please ahead. Doug America. of from The next question go of comes

example. my spoken this just that less now expand? than the rig for the FASB, at might for haven’t thanks I on question. number could year hard the Thanks been and I today. position? follow-up I foothold guys because been a Happy so core obviously, just wonder six-year are a and position, to it pretty a you, companies or Samson. point guys. New Appreciate for PRB about of Year talked Because taking size about Fellows, expect a you would it's me a ago, getting I'm is your for you've declaring this program. starting wondering, Is year have you to But a of other aware, if Obviously, you're

We you Tony you different go geology. really the obviously, as like for that and basins, question. Bakken positions, has is to are in core for and that's one try always look -- for just this at and like significant thanks really, mentioned, at. in Doug, areas. that running very we strive we there's of We're there, one in Oklahoma that into Yes, lots opportunities looked other the There's as And basins. they and consolidation established basin,

this. seeing with we'd if something in interested fit else So, be that we there's always

done, words, in it fair a to Jack? or as foothold, other describe starting not So point you're

look that bolt-on with like up value we've far as ended test do Samson in things the and acquisitions. on proposition, depends -- at other doing go from they're at at either metrics look bolting and we always metrics at what here from is on, as it River, Oklahoma. been any added else or if everybody past stronger, either or the do bolt-on added and -- corporate on look what things we those we And you right this that stronger against look the we than look look value up the that year through did the Powder a corporate let's a the on We with continually M&A. you stress if have Doug, assets and the proposition through the M&A what that pieces back

us. it's proposition about for all value where So

but so grow grow with Bakken, proposition, basements that's absolutely always as there's What's we the anywhere, Powder in And an Oklahoma well if opportunity value? River, existing of the a key. good as the value to both

And John, apologize My is for I'll give advance, go it follow-up, but I in anyway. I if John. to may, a hate going you're this,

peers it's think, capable what number of to guys yield yield if flow in to an You in story, cash term I great you us free you cash know this business question. of I Powder back, view continue you've I you planning. about flow one Oklahoma, question would the My And now long doing. inventory market our for? quite very honestly, terms down got that But of because a has in how can along address sustainability your with positive of a long tell wonder cash What just your River, we the is And business get free a the is strategy? debt the Continental maintenance job, commodities think that free a to is lot expanded which it's especially that within sustain well sustainability push having simplifying but in how showing flow, I have particular. done all you about could the that in thing of of guess optionality, is plus that

And inventory that And out. of enough compounded the rates before inventory mentioned toward is last to acquisition, years five five first is at XX% is Well, like And we'd XX annual is but the on I And of look the drilling, years. you Doug, the talk looking that the inventory at I for the X% next may let growth me quarter, start about as inventory and first return Basin be that, at the you we're if third our this of $XX we've to this about that John, a WTI. Jack. I a River know got here. this in directed Company Powder years. sustain just in

it's this portfolio. strong very Basin. is adding so, again, in And before the Powder River And a

an sustainability as as out inventory us problem. want I pace we see for opportunity that what to just just here as and see decide an grow. I don't So that a to do standpoint, far as at

Yes. Doug, bit. hate you don't misled question. I that me a little

is at capital to consistent, part employed. throughout Jack's very sustainable, the other see see in inventory. It depth the strong comment levels. The on only strong, not there capital a stable but We of return We quality of remains do inventory, degradation that. not

have This kind company. will to with or sixth for naysayer of markets, Speaking this we can flow be cash year focus the dynamic sustainability also, it can free which people on seems type things. like of the consecutive

the The that. things. to of to to dividends to choose put a with pay do debt, the lot to, with over we all and up, ability as the do if horizon efficiency off commodity cash to optionality ability in Jack we our throughout see spoken strong that out ability we has of with the strong capital go growing dividends, of As flow free inventory depth prices a capital efficiency, variable improving stable that the look XX-year

I love in So, the are our positioned very very we position. question. confident and we And well feel

you. thank guys, answer the appreciate I

Thank you.

Meade ahead. go next comes from The question Charles of Rice. Johnson Please

there. team Herald, to your Good whole morning, you and

you. Thank

the offline? the now the which rest is what What the difference? and lower Continental the you have that's capacity? production of appears the be Bill's in the us prepare there's I'm like I'd of general, reasons, you but sense difference remarks or a sure give to of between to general, on that the XX% differently is gas maybe prepared beginning Can of go what's call. industry multitude at from And to of semi a in at XX% the back doing

with Yes, let comments on comments. got this me I'll -- up and some then follow good Harold his has

Yes.

We those that we've down freezing We can because also, forget least a prepared and XX started feel First and team costs with sub people to we've RSF lot in that there. days anticipating -- takes. about zero, rather do the on zero And and but Oklahoma. jump forget to got having I'd it lot liquids units of of them team A with out to I what what and XX%, awfully takes complete mentioned to winter get of what like in it off here and and had this. out mentioned here the times up hats for is oil zero freeze say, We've that's people something had. XX% get done. work below XXxX my able at say to off But in and below it bring drill that we the a gas we've were the we've all, Bill team's gas on, below wells we have I to decision been complete, to now. low those that. for we last that at the peers and good X% Production when were XX%, year want for keep

Oklahoma in has Oklahoma, and one gas here blackout, I had far experienced and of lot hour, today. a hardly think, we've Oklahoma's So on Continental any so running

going with duty. overstate said, they've we're that that, only that company, put not just follow-up the just on, there, cannot in got to contributed together double I'll communities And I the but how the out we're Charles, are to much people to teams Yes. and early this that

go on you with go some can and cross-trained tried we bigger wouldn't to to leaders running. that said, up together. people, the steamers shifts the jobs our out operator pipelines, reached keep early So and up to we to on, doing also do usually could went frees that up early Early have folks get it much things freezes stuff we keep the so and we not warm to to things we did reached work this the night doing can need things go government one putting said, jobs shifts. we different on, we And as because, as of the this night on, Harold it. started and out to we all Historically, once on and run immediately from

all levels at different keep running. Got to That's helpful each up other help color. to there's it. this calls just multitude And trying been and so,

with appreciate WTI I then that's makes color. the sense I'm helpful little question, curious that John, because settles simple you a give me look a follow-up thought that's it, it When I planning could if case. up at into process insight hopefully, coming curve out. is your where as little And $XX all your detail. a on one. to

you go with you came you or I'm how if out time, in As tell up that but wondering me you how that? on could settled

range Well, right, we and bit that but ran it's was of were at generally it that. in a the lower been curve prompt few weeks certainly of time, and a ago, that kind at you're was lifting the where we in The range. up looking

was It Yes. conservative. obviously

thanks Right, guys. detail that for

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

PRB bought all PDP congrats Thanks. was Good near similarly morning transaction. value. the on It

Thank you.

you. Thank

you hand? permits returns Regarding the in in the place PRB transaction, could you to that have permitted to you develop have verify in the associated infrastructure PRB substantially expect you speak relative the and are

Oh, sure.

As expect they just far our think a to question had your technology said, to really, that the compete, start as efficiencies in I improve they of to, economics of returns, they the here, we existing part well quite our also our and operational the performance was And and play. and chance haven't here applying We the get and as the they compete how do with first inventory.

So, that. looking to forward anyway, we're

question? as Now, there. was your running and standpoint, is and infrastructure from an we so not, a infrastructure no third actually from there of And concerned, there's so what as yes, underutilized, plenty far issues they're of we're infrastructure have part

Its permits and…

federal permits. at Oh, to essentially got lot And we're XX there's permits, permits because there we've hand, six is permits in the federal rigors Yes, this yes, inventory. XX going acreage, but with be the permits of of the a looking acreage.

the doing we returns that proper get maximize these we're, that's delineating from apply so and to plenty what and the determining us to of basically of assets. density, is got in And as we've proper to, technology start we all and really and work our and start ahead art, what do, what's

getting about what teams, do. So, can very already put are I rigs we're very, our to on and the as ground, we're said, and some we up see them. And excited ready

And Great IV to III first regard SpringBoard that's it in would update. be to activity then expected the in for principally more the the terms with that, and gas-weighted completions, located of areas? assume fair half prolific

three to actually, in No. bag will and those Actually, that But IV find you're are say, SpringBoard -- oil in be actually more to SpringBoard weighted see of SpringBoard a going so III these it's where II, IV. you're Yes, and more I III mixed and going areas. there's located. these most being than,

hydrocarbon and it's to in and like overall the got there at Sycamore testing and just optionality a that some Woodford, going a column -- do with great we're reservoirs have assets seeing assets. we we mind not product so, with looking mentioned, we've great there And ultimately in so mention as to the and other these Springer, things be thicker and plays. we're mix these substantially And these fact, you in a that

you that I we cost operations. down remarks, sheer interest, In And the a fully efficiencies have so, really -- the just that there look really my prepared allow at acreage drive to efficient blocks XXX that that there. appreciate mentioned of average is people miles large down are I and When we And square huge through us operation it's I working acreage think we footprint. of in or really a mean, contiguous that -- XX% now like of control just with get the don't scale the about assets. these

of does, so that my get from and early. the these standpoint, in projects Continental we And are type

position. it. here. build on we when dominant And to have And we a done that have really continue get We we that position,

for thanks anyways, question. the So

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

joining IR Stay for Please there. with we really further follow-up your the team today. us out Thank you much questions, safe very appreciate and you. Thank with time. any here

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