Continental Resources Inc (CLR) 29 Apr 212021 Q1 Earnings call transcript

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

First Quarter 2021 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.

Good morning earnings today's us. Welcome and thank you call. for joining to

for from Q&A. guidance. Executive We Officer call members Operating Berry, differ of and the our Officer; and team filings Financial additional address forward-looking Executive our and other forward-looking including Chief Company's joined with contain assumptions materially in Chairman, for today's risks. team that will to information members Officer remarks Actual John executive Strategy Today's statements Please Harold start contained by of additional Hart, will Continental’s Bill may Officer. refer concerning and Chief Mr. statements. SEC and from Chief these projections, those senior results will Jack be statements call President Bill Chief Hamm, Stark,

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

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

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

earnings our cash the In intentionally time. allow to cash free probably everyone. and focused of as for bit primarily shareholder doing I have on And at strong over appropriately to shareholders. flow investment past time new focused Rory. and for expectations E&P industry seen moderate investor growth our the Q&A and for scripted on this focus we're returns call one, We've Thank fully you free to We The flow several flow responding and more you to know, capital efforts on recognizing to embraced companies this, a been the the of on Thank with all competitive and this return in portion hope Continental’s Continental you investor us good has well. morning join years all taking call. shortening support cash you're returns shift a plans. slow paradigm. in

results free flow example our and strong deliver quarter returns asset of capital shareholder quality, flow with commitment control by first competitive driven and and capability of The as cash serve to free our an cost uses continued discipline. cash

target. to the cash we twice $X.X at the months prior of of on below earlier six of cash million. debt $XXX consensus estimate during That's $X.XX cash approximately analysts’ suspended three quarter, million quarter to than During the to first debt a a level end the is $XXX hand. generated million that with our we considering level $XX flow of established pandemic billion billion This the million dividend versus previous And free was by pandemic. We of flow. reduced additionally, $XXX or

I'd the serve four the year will like meet opportunities to Free outstanding discipline, highlights the investors. an are exceed balance sheet to and our of There returns cash briefly quarter each capital of elements and discuss as all cash full value the these. strengthening investors. flow proposition in of This Continental. or of investing Continentals foundation value to to guidance key for unique commitment,

of XXXX commitment consistent positive to flow our a have cash consecutive sixth cash is projected free be We to year flow. free

are tenacity than over of annual first with be or shareholders stewardship operating discipline reinvestment leader dividend of companies flow, is as our in past delivering employees target and high continued for less we stay achieving $X half by end capital the we weighted our quality debt months. reinstated this and be year-over-year. XX our to that way underpinned plan well year. assets, have distribution focused by and strong demonstrating to We capital are full we With All performance second and rate with on in the to to for a our opportunities $X.X Production with being only all an to expanding below that creating expectation as reduction down current free prices, billion, have production very more and on our return balance shareholder cash meet accomplish And of In efficiencies unconventional May costs, sheet, the scheduled low return capital are on financial to of XX% ingenuity of XX. will this. expect of E&P at and our the one becoming of are companywide we year. exceed the few our at remains guidance, a this accelerating to respect capital debt pace our year support goal now billion

Additionally, line projecting return our we an on are capital employed XXXX with in approximately XX% norms. historic in

at prices. reinstated at was which me do details. a free So it per translates fourth XX% $X.X And differences sectors, oil to on XXXX. negative $XX Hub quarter cash in $X.XX all proposition of $X.XX. update dividend the quarter per wrote and down second to of evident approximately approximately oil to projecting more XXX of barrel zero second it's of XXXX around to We're flow generate of now $X.XX gas an Mcf. guidance is of XXXX updated dividend projection crude a little to this quarterly our bit This slide fourth cash well, let flow billion of go our to We which when underscores its differentials share, as I the and yesterday, in quarter WTI equates probably flow X.X% Included our four. negative free value a S&P to a natural quarter Henry cash $X.XX yield level free to $X.XX to unique updated yield current per this X.X% relative now in

of our stockholders by We're billion material year forecasting continue on is is May to our year provided achieved our XX projected XX in I X.X% XXXX both to improvement record our and of the which this reduction guidance. or $X.X expected index generation by our will has million strong end double July, end S&P believe XXXX, competitive significant is onset yield dividend the peers. of previously global previous by been sustainable billion on payable As $XXX debt we given earlier, dividend and pandemic. at flow our temporarily that the cash debt meet to debt this The with expense The is with company target be be to versus positions a [ph]. May We importantly, to below February, reduction. mentioned issued yearend be XXX the a now interest $X target of our from end savings approximately and suspended updated

a term debt-to-EBITDA of Our X enable under ultimate target one of to goal long that us our below successfully support to adverse would ratio of weather commodity cycles. billion or price maintaining

due cash to our goals We robust and by four the they year generation, debt ESG the talk highlight full bit Continental. to protected our about a at to ESG paid down focus and I flow returning rise. little like goals on have accelerated investment Stewardship

intensity by XXXX, we methane As by we shown on have From XX% slide XX% through intensity respectively. and nine those cumulatively XX% XXXX reduced and levels our greenhouse reduced XX% XXXX year-over-year and in respectively. gas

oil we a And reduction gas XXXX. for operation positive intensity from reductions a to future. and greenhouse is anticipate be as XXXX intensity role range midyear on as with strive to our forward U.S. in Notably, well. XXXX. We'll XXXX. we our report ESG industry sustaining upon continuing out XX% to the to our the as with energy in continue methane look gas achieving by dialogue And playing based responsibly XXXX reduction year-over-year is constructive similar goal program, aim much Our additional current America's

per second deliver production XXXXXX track guidance day performance, barrels of As the XXX XXX exceed oil to we're year. and our our XXX production meet XXX cubic I or our switch quarter million on and guidance day to gears to of annual operational plan for and per on to feet to

a As April production Continental the we saw to month update, weather adverse full our in impact to February. due in cold modest stated only XX

planning our and able winter keep in operational by support interaction companies regimes result significant regulators, were Northern pre production pipeline during absolutely teams flowing each conditions active as every and of literally As experience to and miserable our and a to much of a XX/X government thanks keep operating with conditions. one Their working these gas of were our long them. during utilities Rockies portion we large extreme efforts to as flowing the possible. teams, My

tab. the XXXX second are Bakken growth in with processes see track second quarter. to first We’re Improvement in on execution structural driving over of operated up of Operational With the versus in half advancements the the in In approximately design, deliver costs year have the north brought in which line already XXXX. of the in XXXX. the savings and in on carried down. structural and work quarter, We're gross the of to over. great These and everything first drilling projections weighted shift were Oklahoma, inclusive showing stimulation River. Powder implementing Bakken wells, technologies all the demonstrate XX half advancements new second additional wells we're majority ramping Companywide, the gas. methodologies equipment, to to on for in This track and from production this and results are will savings. potential wells we XXX year

more change significant in continuous optimize seeing to intact, in the never be our our well been it cost step performance where We're keeping downturn. satisfied in with trend shows past able our By teams we thanks lower they are completed operations the ever over teams our have during a asset our recent areas, to Our employees before. in costs to year than are efficient performance for and drive improvement. by

seven XXXX consistent improvements continues our performance X% lateral, and foot combined structural below cost at $XXX operational per trend year-over-year to from enhanced to Bakken with design. targeting for our are projections XXXX lower wells. Turning slide In to well lateral costs thanks we well Bakken

commodity composite a afford Bakken $X.XX. projected environments. significant attribute to return to gas in is program flexibility assets more XXXX deliver rate various In commodity as XX% than a our optionality, continue of is it and which $XX and oil us great Oklahoma at provides Our

second switch commodity see This year be did. Oklahoma gas strong fundamentals waiting year-to-date half growth suggested the We're we no the basin, supporting the expect should the oil of are year. mentioned, and performance of more for which the realized to year. results expected the see as assets gas condensate seeing across assets. half the repeatable to weighted is as this from second We XXXX we oil exception. And in fundamentals our we'll Just drilling, I last year in to

of to translates continues to per lateral rate $XXX improve unit with XXXX to foot. return well strategic approximately gas $XX collars XX% XXXX, for execution gas hedges, efficiency In structural to savings second feet also million Our over our and costs $X.XX. fourth driven and at wells. targeting significant per are Natural the markets. where are $X.XX XXXX year-over-year. our is quarter XXX hedge day We're Savings we condensate Combined of various optionality gains with at by through quarter these condensate and average wells cost in below of average well at market seeing midpoint swaps and XX% cubic being company's

exceptional accomplishments year. They're capital at reduction. market been shareholders. our in deliver Time strength to time our on are assets, closing, operational sharing results will again River rigs our our pleased are you progress the teams begin We spud with accelerated condensate cost March rig environments investment to to structural of and Powder expected to the reinstated savings X both and this days is Basin. from June. the two case our debt entrance able strategic and early opportunities in closed organic the with spud transaction Last our in and to the our very These that transform driven on have first underscore assets. performance challenging announced second the this the efficiencies, looking operations. with next asset and repeatable and on We quarter, returns second into are into team, and growth, drilling more In we We're dividend Continental our Powder well to quarter forward later in few details by with in nature.

quarter first Our organization's reflect capability. results our

oil Our management unrivaled asset, alignment the deliver gas an and in technical sector. expertise, together come to investment and uncommon opportunity

sustainable section. drives team are on With This to the over that, management begin of behalf ready stakeholders. to because shareholders turn acts like all goals approach innovative unique call operator. with owners, our Our the delivering and Q&A we to the we're corporate alignment our owners. back I'll

ahead. We the Goldman Neil And will now go session. will Instructions] begin question our question-and-answer come [Operator Mehta Please first Sachs. of from

quarter. strong Thanks congrats on question guys. taking morning, for and the Good the

The a I Dakota your of had uncertainty of takeaway obviously Access. just the first And lot question coming was around out Bakken. thinking about there's

terms the in moved terms how pipe the it about risks. just in you're pipe right in to Access like from I to to of in is the thinking direction out on flow. of your Although the views barrels of seems Dakota market things any that And how flow perspective Bakken likely here. love getting in getting

Neil. done of the flow to is of everything the there. positive put we've to we've and anything with forth already. Thanks, handled. our plans that. continue that think, of core the got the some but the open with from I'll continuation ability the And lot. place a I Chang, We, before we appropriately is was Aaron courts. to still of of that We case Yes. out coming it it's over going base owners and operate things the Appreciate to are to expected continue pipeline question. that up But out this to is in back strongly move know anticipated to out to now the it core mentioned feels the Bakken pipeline, to some comments add you've all Aaron all have

No will able be think our continue you condition. operating we plan said, execute to to pipe to XXXX the like dabble on position operational we Bill, while and I any believe under ourselves remain

manner. we've approach As risk a in we're Cushing, of a always moving out at done the such, to a so declarative transportation firm markets more like in looking and basin weighted to

flow you in And is and you've any cash done think objective? It about towards the water up and order help to guys this looks how goals? in And including up debt towards a divestitures do free $X of your lower that then on driving target have great to your here get getting the of accelerate once assets you achieved job use like follow billion. around thoughts

all we know, that in it's we Yes, it thanks. opportunity direction think wanted very at flexibility year looked we not And move and to significant The us in by keep opted it last a water keeping in with we because under engaged water operational provided said, time pursue doing were something very, have we Continental. have very an at that to further, our We it you different discussions year. a assets to on. asset a XXX% point do asset as significant assets. the that That last some some

So from the is perspective, cash flow that fine.

other Sorry Neil, your you asked…

debt you so just right. Yes, target, guys are driving towards your

generation. your more first you're free getting target. flow to so get you target your cash shareholders you And there is do the incremental organic there was about step? to allocating to flow to cash dividend a think through debt Once go? How But

so and to is and that speak. an read. time. doing Obviously the multiple, our buybacks debt we to the problem but with we down dividend, at full, got continue to for at a paying was reinstated you We've a quiver, that of position a things While what was drive that comfort confidence looking as suite strong increase that dividend go-forward place a in ourselves we're then we already our toward are of opportunity. the flow share by and one, level and cash pay the that course, to start, and to full reflection the we're is down we that, reinstated also a there ability debt see that's felt and in we're returning down over of that it we're what We

all that right, in the itself And ratio, manifests shareholders a and reinvestment prices vehicles hopefully as XX% a in range. a that we're maybe far that started, to XX% focus comfortable still as right for are real today's around with plans cash $X.X we talked our that's XX% are. to budget. shareholder billion getting is these have what the where to saying very We're we today, spend seeing one are continue things for is about That's spin at back have return. you're that off where that so there's that But the and company. somewhere And we just we've we XX%

Thanks, guys.

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

basis? had thoughts. investment and perhaps a to paradigm morning. Neil's Good you the follow question, of some and thinking mentioned bit I but new about talked afternoon. you go-forward the dividend on but you a you growth, balancing billion talked Bill, XXXX? Balancing, maybe how Good reduction semblance growth about some target up a production little are of debt growth, about $X growth

bit now year. XXXX out overhang, trying out as timeframe, probably you industry? rates, and now that still more a and industry when we And little what not X% even we've the can have grow a to highlighted X% that the this we're going But into there are last a position industry there's that the that to the an And than into rather to people be the support all trying should touching should that's annual basis. that on as over and with Jack and we think we and that's don't get range than be where think be lot the inventory Yes, should comfort we inventory with that that market, that, a the that reasonable around about, the the now growth for in what's but inventory we still as more call targeting. is there you're as the fundamentals year said far should know, as overdose be oversupplied

else don't Jack, so add inventory room. on with share the know you you've want to whether to anything on, I And the

got next look that, talked, if of growth years. company, we third And compounded we the at $XX. mentioned annual And right last you X% over inventory. inventory to is years No, talked that at It's of the XX All around is I’ll return at inventory, time time XX% right about rate that about represents that we've five first of the and a a rate add grow we last on the enough that this the $XX XX%.

increased also particularly that job very a four So go it's three, continuing last costs recovery well And a are just the efficiencies. And it's the We density, a we've And, here. very, highlighted I our know well. and down the to drive we've reservoirs over how very really continually years. inventory. maximize great robust know doing and teams very inventory. we of the results seven, into and capital slide increase what eight efficiency capital on won't of the defined

thanks And that. to to follow guys would at you'd I have $X.XX. rig I two in mentioned seven just Great, the my you XQ up, you're rise quarter, and the two in know today. for between oil in Williston operated last PRB the how five rigs your guided $X.XX from four think north, count basin,

just offset, you the was that And of some activity to mentioned. some from that of your partners key declining

wondered So half year maybe I you your over and help how about second oil. could if trajectory a the Till's us could for think trend

our XX% the year, probably of increasing half half at production based in the in half compared Bakken, Well, around of the to our in the the fact were second of XX%. you on the if year. around first our wells this, back of And half the second I we XX%. about the of be would upwards completions oil maybe year, really, it's see look say, percent a as and guess, that, And, the

going of going rigs half probably as its XX% Oklahoma. that's weighted oil the probably drivers I there, XX% we're to rigs. mean but were the our in as we oil also at year, Last those year, well. far too, one gas. year, with we're This I be be time key about switching so the were same we to as nature second mean, probably of So,

as And we commodity have so to optionality making saying that we're we a there. anyway the we, love with so in keep shift strategic as Oklahoma, you

to And of take that. advantage in direction so we're moving that

lot. a it. Got Thanks

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

Thanks all. and good morning

Morning.

downside your Capital on the XXXX assume targeting to you outlook the capital to pages it eight? fair and seven regard that Would costs and plan efficiencies there's completed if to achieve be your well, you noted. operational With

it direction which the drive if in trying can Meaning that's even in? thought drive the Downside we're that lower still lower. there. they're we to cost Yes,

would working around And No, the the like if through be you it because capital downside were attained numbers side some target. was more target. even the guys year, it your that at we seemed for average it

to what I'm I'm Derrick? Downside sorry, not…

XXXX plan. capital The

less, we I'll actually do your billion the could that spend fascicle what than question less or X.X more that is? that we one That's that. point

That is correct.

I into slow and we year, budget, because fundamental most spent got cost we advantage the the had of factored savings, Yes, said of we to pause down. last that took

XXXX, had engineers. lot a So engineers actively cost we And we down. weren't production to drive working on of our, drilling we're the and drilling we our how had them as when as in

So Patman in the an his team we with of came out expectation that and [Ph] lower. all that And number. to was of that's kind chute given it drive reflected to

the carbon the with of this emissions projects Perfect. pursue offset your over your peers my is renewable operation? your similar CCS offset a are something majors to opportunity and slide. comment you question, And means ESG business on emissions your scope their one perspective, and desire to to other then could from from second ESG and/or to shifting to pursuing Several

going happens is the started any at absolute of minimis so look and and what all and time. at type to we're to take to probably byproduct, waste. all company the industry trying it's this as all our looking we into, level. our to And be the all of think at high that something going de should the that And, level goal into A landfills, Yes, it is a whether is with that in it's going Derrick. whether air look lot waste

is And our there emissions they opportunities And XXQ that an so are to to that you work. are if everyone there's there. see make form in tax that to ones spaces. is actual economic The is going hope in. we some pursuit, reduce some primary right trying now And LD the out opportunity whatever the that's come [Ph] with on there see clearly of business something are some

incumbent I take think to going reducing try its a And to that play carbon a it's second, carbon the future. at We industry emissions. first is in look then to capture. So role at type think the of capture on a look

Very helpful. Thanks, guys.

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

year. remainder my all. determine times and Jack, or it for advance balance far towards in wondering you the going pivoted bigger just are to for that the kind I And, oil, of you where XXXX. oil I'm whoever guys obviously at the forward look going wondering or more plan and does to of do far that the know, and like gas tell much going made is the wondering, last, between question advance difficult forward, How I'm just focus what how prices. just Bill, Morning I'm to you how you is gas in how first over the key looking Bakken lie? and now in mean, be really decisions here and certainly implies

got where make internally in marketing, And we week, company programming Well, sit pretty that we down thing type the fundamentals. is And the about look decision. whole and things, where from we've robust team this of got going, a that of finance, pretty world a to Neal, specifically, from, at the times drives involved everywhere quick those decisions. and, and look is kind operations the at nice talk about the to we, multiple

changes lining see the ahead appropriate. we go as and we stars the make once up, So directional

them and out won't, batting of these but we're think I of just worked XXX we're, this for work we're day hoping is us. and end when out will some that them things, one the at on well some of the that above And

to good have came tied really the And teams it gas recommendation a and market because year. to started to very they kudos to Oklahoma I macro looking optionality portfolio as want teams the also last want to mean, in made really move they Neal. And I us in. just the we are at the some with we obviously looking the add, said, Bill at give with to in early sense. said And constantly.

we, team that effort it's it's And see in. great And so I a always it's tied a, everybody's to here.

recommendation reinforce what want manage, that these that. just recommendation team's not a that oil management decisions. but I We, had to a perspective we show teams. on to company was to our Jack that is But to that was all mentioned just making

then years Anadarko. to the in have top certainly PRB. have hear and already area? a active tier plan that great locations could or in for pointed and I in so it's kind goal just well the understood. wondering tier the one Now, and stay little Bakken Because, put mean, I maybe interesting get of is to now, Jack I'm two basins out, I'm years. what start to be you the had, said, guess overall I you why, the what and very as Jack guess, wondering, And in many you plan just asked, has secondly, you as more that just I is

PRB. what three of just year So maybe that I'm or achieve the or and I two kind you're and next to don't know, wonder the trying then

world Samson Third there that and word very program premium That’s Pro, five a gone Basin. the that up a very question. we're just high with following locations these Powder resolved forward. good up on are quality best They're the following we're continuation ground going And to on what hitting to had [Indiscernible], so the that. River

there, and going position think up well to So for out the proud we company. very our it's of work

I No, Thanks. what Harold. see like I

for So much that thanks app. for the so

Yes.

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

for questions. afternoon, taking everyone. Thanks morning. Good good our Hi,

you. Thank

morning. good Hi,

projection. Our last Bakken. quarters in is presentation noticed that type on the the it's first improved And question updated we since your curve, projected XXXX

growth changed if little like on the trajectory better XQXX. And on provide maybe it's this year maybe comment better it you increase than fuel between North a then South as can as wells. oil the Can than the is It's the well, whether seems Now as ease? better. there. corporate and And as oil XXXX North you on the doing your well on in outlook the commentary what's is

rigs, the time, performance. as really of we know, variance consistent just to amount you see Sure, it's a and all And if you Jeanine. four just not look we're move that now really on over are And on got a my the function years a last mind you can you matter it the see, rigs up really already depending the in really in But Yes, get footprint no where where large is three, where varying it's of put is at shift in significant. we the decide here. the it play. we've how can is in you'll going

factor is chart you the low Bakken just cut. overriding on it's love the what page so consistent here it's position about think seven, is such water that's performer been. with our and and consistent look I because we consistent, And here, how that at a

so mean, great. I it's And

So here anything continues other that validate I strong we to just than, have into inventory in Bakken. the wouldn't it, read the

modest Okay, is about great. question by opportunities, on up you balancing growth? your X that you're maybe how year estimating you'll less billion inorganic to you're returns cash of maybe you're production, thoughts and follow X thinking back shareholders, on potential hit target some ultimate any than the getting And, to how timing expansion And then billion? early maybe of planning on with Do below the my end. have

do reinvestment Yes, than spent valued that we investment at we're to and talking and were you what what start returning obvious XX%, the shareholders then what of with Jeanine, from as the looking the cash with really our we XX% all about. I'd do thesis That's in forms cash rest addressing of like you're to that? And ratio. that, the all

that got plan lots path. of do on that. on vehicles we So we've And to staying

significant it cash the flow. while. for doing a timing amount of a new been obviously, target, not we're the Regarding X for hitting the generating on a feature us. billion We've That's --

to XX I flow put guards, expect that cash We XX well, the good when We’ll we target that but approaching so a year up relatively should feel you substantial give you color and over as next be about on billion half. we the quickly. give X

much. very you Thank Right.

Hanold from go Markets. question next Please The comes RBC ahead. Capital Scott of

curves if the this look be very that you've But in on doesn't the you done point you perspective some on backward like XXXX. Thanks all oil. gas a did hedging on my lot like I'd I of hedges in time. make all it seem does interested for question. know about put dated any your in taking incremental you at think mention at what stuff,

approach at gas, is of of course, participate commodity we preference We the look at factors the how actually going hedging. and and that we that we and what to and It's as do philosophically the of think bit that We go That We more variables. and we commodity. in that's none with actually is. with differently. that a not think oil hedge, be a approached something And robustly we fundamentals. start prefer think you're the is on those to we than type into little sheet oil the hedging maybe what to do. investors philosophically, investor approach base, an just through not we balance highlighting, look bit whether EBITDA hedging able then our I do prefer our to Yes, think pretty is, that little range should gas said, bound

there gas more there. want It Aaron nature have else hedge. been know, do again, I because the of we've range do putting you comments, the the that with of we you're hedge dynamics should structural can the result anything or in fundamentals we That's that from whether what sophisticated marketing bit you And because of us yes, our side? think that add And seeing of amount in on that oil every don’t mentioned that about, analysis yielded And out as whether all be so after potential just has to the May. internally, not. with a of we for a that's hedging zero bound. as week a be And of my gas

for And term rollout Bill expectation I standpoint, program commodities a is the return demand that that I aligns in XXXX. world No, some there think the our the the very think both term that medium covered hedging follow. it. will as oil recognizing vaccine From very constructive noise gas with we're macro and across still well continues near with

There's Scott, XXQ filed night swaps and of gas XX last and nice balance of summary it XX XX. the through go that reference that breakout like you you sounds made our pull a gives we out hedges in collars. a a the really can hedges it gas

around relatively You'll see as $X. they're process high attractive, floor gas well,

XXXX. slide your confirm to just Okay, XXXX. on you think Because nothing indicate so in presentation I'm going eight does

much year, don't limited amount very have a Maybe of beginning the in we the there.

Okay.

Okay. out Fair for where enough. of rig but just and, is there and now. right at inherit yet, the started. guys can you what And lastly, a is, exciting then position sense you my And you got targeting know you look have not on get debts at next question is PRV? initially you Obviously, quite give enough formations big Continental did to I it's the sense holistically, very some

the Tony all, this is Thank of Barrett. First for you question. Scott

did we Regarding those. no, inherit any not of debts,

On of our rate has targeting think proven the targeted of really program before predecessors, return high Samson. our sans as the I been we've by question is well, early discussed towards

be early formations, Frontier out our spread weekend drilling there it well So with. I'm in, familiar focused and will you're the sure we’ll time first Turner which this on

So your did that answer question?

Yes, sir.

Thank right. All you.

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

appreciate I'm out medium the playing the hedging Thanks think term, revolving stocks because your cycles before. how already, of I could Mr But from that fact as on and a the I just I call. touched there's morning, one perspective everybody. commodity ask upside. just curious are see Mr. near been Hamm's perspective. the Hamm lot but you that I you wonder Guys, you guys levered of commodity about if of term, see without there, already. moving number But out on on obviously, heard most any parts a the talked you has the outlook just current through I you good

that still And for return still U.S., and demand, for that back their the we batum, what back to in anxiously COVID-XX. feel I is as normal. future. world into and is. which ordered said, balance, disciplined and we recognize and think and and, the some have we supply and But the prices market commodity as But waiting demand oil and rigs coming demand in approach the demand to overhang been and curtail watch say the see there's in well everybody's bodes activity think operating the going forward We inventory an but that producers I very with,

and So, obviously, risk. been OPEC therefore, we have recently, the long in do as they as feel industry, as remains and functions very about commodity positive

the I my mean, out perspective, and Harold, question And like joins that up Harold leaving this. and reason But is size. companies to pretty X in growth debt. billion. But job set at good appreciate go them least is, think mean because really table, I targets now, the on you what case that you the flexibility, a thank no about don't I to lot asked in to a longer you question like, investment is the if it, sector, the second the if I wanted that the you. I debt a have have of meaningful

of them meaningful Some pay dividend. don't a

the is value by of One else's will someone out easiest to in create ways to this operator. cough, take efficient sector an

could relatively in consolidation in of is flow you particular? update clearly And Continental’s strong you, front Bakken like have I'll in How there cash look you curious, is any Thanks. just a what it small trajectory have going there. in future? everything on still thinking why on the I'm a So -- flow. leave

was bit and nations continue. happening think and the participate that in opportunities No are whether strategically last we, to various our there year actively in understanding what going Consolidation fits on. see thanks And way. I same in the for There's all thresholds, so. as the opportunities speak, an meet it's for the they economic And, we are, something things that doing whether we in and that. little Yes, doubt, Doug. there's it we're we're a, a industry, which seeing needs

radar, always in past, a M&A kind year, talked an we're impact because were nice from things But big of the to So splash. opportunities, it as of from assets about, on that perspective, was we pretty the watch. There’s you it. really on under if wasn't the significant it bolted last of the at other company, we've the was, look couple it added the

that is industry in So consolidation does the and hope our the desire continue.

sales assets the the now Bakken on right So no -- interest?

assets good there They're a the And and in the bad question. it's broad we started No, such clearly and sale for with not for are bad. assets that's are rocks rocks sale.

interest We that right We're are good. the have interested at the price. rocks no

for the quarter. thanks answers, Okay, Great guys.

you, Thank Doug.

question Wells Fargo. Nitin go next Please Kumar of ahead. comes from The

I’ll I Good start afternoon, off with question. gentlemen. And thanks John. for taking guess, my

expect statement that. curious, of you other great just and kind of You I'm is flow you paying current taxes, Taxes maybe Biden know your free in in highlighted of when regime are the strong coin? asking to their the do proposal you for? cash flow is free the and dividends the side cash cash both ahead what start look that tax outlook, a as what,

hear the hasn't forward. to look this a all, to in talked about it past, of We lot. First we as voice it's forward again, changed you good your seeing future move again in bit the a

forwards state operating level. carry federal net loss substantial and have at a the We

flow regards There is cash it some you we changes a you if a rate years of putting In it moving current at part variables seven level are future in there, the free point, regime. it. to of cash see convert regime, five to in current up So are taxes being in a certainly at look a the we potential codes. lot to of in tax certainly that

the a think cash between IDC, we are I to they've change, free They substantial already you're gets In bridge is five amount amortization. there's that of addressed effective if are to or does period referring converting back amortize the that that there very past, a within is if not talked over a there then maybe nature to NOLS IDC, where allowed about even something you're it year generate. flow today company to if that. can that but of to preserving did we've the

they term to type year, year my So that, a went if in two off five or AM. of

there. So have watch go we'll just we'll to and from that monitor and

my Thanks expect Thanks, guys more X% as how you're, have required. talk detail growth is to you don't And John. the there. you follow than about to for X% up,

$XX in prices to picking Some I and seeing in an the curious, activity with is up. thoughts some world? basins what $XX in in costs general? the just on mean Bakken There opportunity, of private $XX of your Bakken the just are I'm other you is

think to going of that that's we're place. with but the back little insights probably good in in some in movement, that. be about a rigs going lot not on the And bit drilling you what's I Pat leader. talks Bakken give really can a the rig, because with seeing the Everyone

Continental basins. on talked Bakken Okay. activity about, we a Pat XX XX rigs rig lot exit of don't from been other Bent. the currently, of a And add of the in as year par activity movement There some increased with anywhere we've a but rigs will hasn't few the this perspective. as is lot see a or

Right. for the color, gentlemen. Thanks

Thank you.

Leo next Mariani comes of Our from KeyBanc. question Please go ahead.

for CapEx of question a just doing in leaves it's around about million million per that low And the it you quarter. spend right, point Yes, quarter year? XXX is the billion. math, $X.X of spend of XXX about in pretty, XXXX. for kind rest here to Is XQ the Looks the the pretty readable? of year budget a I'm first the hit had on that like

radical throughout a year. the don't point, know, but it's don't low I if it's I recall It's fairly

be little X.X. And, get We're bit to are we very frankly, up on track So, it a board. committed fixated average, that. we're on stepped that to to should

online XQ and half understand waiting -- guess I bring Okay. Bakken, I wells there, just to Did I to second to not of you're you? it picking come sense little in make working. is you're the talking I more you more wells get in quarter. the up any XQ? wanted generally want really how then the lot guess just have about just on All right. sure to Great. were And the And did Bakken with a how Bakken starting that's sounds in just in you it but of I guys second with a like think kind respect cadence

Yes, is Jack. Leo this

see In in we're completed point wells Bakken. quarter, second on there. XX the right probably about of going You're the to upwards

And first project And in that. here so talking building issue to part a that during infrastructure we're it in Creek basically out think I were here. bought play, really, up Long this, I you just all We as that, to drilling mention we we're wells up and a recently strong And about that just products And so because moving that XX models know, as there and ought XX the that timing they're handle rigs but this wells drill, just XXXX XX plays in on a Long two these very IPS these heads is those. online we'll the XX% total XX right XX just these wells, around with wells. the on August. up wells, wells day in begin we BOE in on per Creek, plan of

of And Creek. just horsepower we've quality the anyways, see and there so coming got the it's to good production a along expect indicator the form of we the

Thank great. you. Okay,

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

the I of XQ could for me to bit should what bit half we there will these in trajectory thanks the then that Yes, new a more insight a push day give further XXXX a thanks in beginning wanted and in of and to will oil on half established taking all see growth the year if to there guys everyone just there like the that sequential be see. little you back path you questions. And they actually for looks on be and growth XQ. carried into back it good that

offer or read strange oil any nothing something of with happens assuming XX can that does at Looking right that around that? kind comments the strip. the Is you

pull line obviously what would there can the projecting fourth for given know, is consensus say the quarter we're year. We've you on the for with guidance there's that the average in you we're consensus seeing or quarter, second out some I

that's those, case and have in cadence seems I expectations. a fairly you So well giving in line probably modeled good pretty them between to in the think our with market

I'm go it. sorry, could Got And that's then Thank the I helpful. interrupt? That's, you. back to I did

No, I bet. you said just

three of question do When and what gas get guys to to will price that and maybe that's, could little it you a be back level, bit picture last in it I that. looks is that CapEx you put if like. those on can the If course, $X guys internally, starts you you starts time, gas same when some shift based of price. the what protection, can assumed dollars. Okay. year, the meetings, the like a, around of right have that a hedge at give But then that more versus put in bucks, looks you the an oil to go it, a of capture to optionality It's to to way you

optionality sense how that's how we the think give the for you you how conversation about goes? if And of us framing a have? so, should right, that can the right that And

good that's Well, question.

same this over mean, oil You year. up prices time, we've know, seen I the XX% run

Oklahoma optionality last a And So, that great balance. the we assets Dakota. year. that becomes in thing at for Bakken great North have have and also assets – it And both good is we

view it we to way it hinge that, it's on hard So the $X.

And two on extremely in million XX XXX up last my to And XX by brought that wells me below. As our we let I on, that XX And on and we oil economic, nose last, here. with window, a brought brought of that gas, best barrel of those the condensate prices are and where a and those data, all economic hour the out born or go the on such right. quarters, economic in wells product no make the day. $X, two we for. IP mean, SpringBoard average a wells, oil we these bucks Yes, means day, the literally, upwards don't things condensate pull need $X in here.

then indicating go just you very of sense year. And environment us the rigs a and constructive on they more take made focus remain natural ahead of year, next macro of were what to the the some need that here advantage is the saw and that And very more and we just just know still rest our for through so gas. way and it fact is, strong that that on the are gas, So these to wells. natural was that

little seeing our, on oil. start in and now so our, stronger sense we're maybe focus here, prices to in a projections And oil makes heavily in the, more our so

having the of company. one strengths optionality. it's that love line just bottom we of is, And the So

Thank detail. you for added that

Thank you.

Please question Cheng ahead. of from Paul comes next go Scotiabank. The

you're the cash And ready? that supplemental to Bill out on of morning. consider similar a Good of that have is that the the cash between you a the policy in screw? reach Do peers XX what a John now the you you back Bill, way PRP to your will into you. south, the you and two I think some Thank those you and you. the half. do more say X using once mentioned medical with Thank formalized maybe you longer reasons? than going the then debt your have, the pocket, that billion be second return to moved secondly, coming you're when a to well, that buyback? whether quarter well a baton it's that going on do the cash between get Do four And is that do to have for a and second as come have stream distribute or also the dividends that have breakdown basis And preference between you you and the stack that their [Indiscernible]? the also breakdown shareholder term the

the is focused have we're And we grow. see a of go an dividend dividend, and return variable got the And then different reimplemented scoop let me variable Jack Powder we're areas on zone in address the that's and to the cash a and a that got those on. the to into question as Paul. wells the also Hey and, investors stack. the We've just the will On a to thanks Bakken we is dividend out in we're that tool. cash there that variable and dividend, and pace opportunity between and return reinstituted shareholders the seeing something possible

buybacks, that We have cash go also stock can we buyback, in.

debt So different there's, the vehicles, of on top and that's there's down. a then lot of pay

all back those that's why one, the at we look appropriate to time, as and to bring depends really dividend bring at to the early. we on the the want wanted so back, what's we it circumstances but So

of flow to have to this assets our the is it reporting shareholders. in cash a significant supported company the supports desire So return

so the Jack, far I number your going of And that head ratio is kind to that a reinvestment with as that? be number think, to. And talk you our that going the go, to to the as would hang XX% XX% restricting forward a we're to on wells as going as be we're can

of around I'd is in in XX, as as head, concerned, of upwards rest the in top say Powder, yes, the XX in don't the but North, the XX. the And far the be of I would Well, wells as far I will XXX those, say the number XX south my probably as Bakken. have are the

You gosh, I'm to so be in going all mentioned to project say going we're in really there, Scoop SpringBoard areas. XX% our or

think it's fair I a there. So estimate

you Jack, on what the come do quarter have were second going number to stream?

Paul. quarter a XX close I Bakken obviously of Second the stream? others Thanks, it's South, second North about, have in south. to in say on about as previously XXX those, the XX% quarter. to between going coming be And around be wells getting going to and mentioned I'd wells and we Well,

Brothers. of The [Indiscernible] next go Please question Noel comes from Park ahead.

Is I'm if sort the the that's morning. sure going be dig to of Good these you of might in wells? project predecessor. not curious any particular from former inherited the science that really River important early much I'm how Powder into to just you're you're there have Basin? starting doing

starting those? as on might So just you you're what curious for be about looking

from inherited is Tony we Hi, data Well, this obviously, Noel, Barrett. our predecessor. some

production type that core or graph of stuff. data, we've of as all as, As far said before, information, on some

As, been which that as XD most operators do, acquiring available seismic over that prudent we've area. was other in

that helps with us good obviously that our stuff. and drilling So all and avoidance hazard

program a normal move will through midcontinent different we'll different that appropriate we and the Bakken, at log in do collect that and in formations. addition, look data and do the the we through the when the it's as go a In areas thing

we unusual don't already in Powder other in So our operating the area. do nothing that

the catch wondering were kind wells instance, with of was spending, Great, portfolio. activity curious trends year big or the to you thanks. that of last from manpower budget? do Bakken, year I I on older sort to for given, wells? those up have of money your or trying how the I was weak there's Or really just is when, opposite you've still in you're the in what to And last prices. your another allocate older end maintenance there? they just want given do vintage do question, want slowdown with for there wondering,

debts last look out coming and number this relatively of of [ph] on I year, if of mean, year, it's feel No, track. we're coming out each of hand at consistent the within view right you a other.

X.XX. two positioned Our at wells, operating maintenance productivity on term they're years capitals, I that several high strong year no catch I on so would, project of we're We've multiyear, midpoint. our timing would there's but longer I said, and would maintained one per well five, ranges up as focus It levels, se. depending for one between I we're,

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

IR a questions great us We the for reach Please Thank here. very Thank out the you further today. team much have past with are and of you. joining to top hour day.

everyone. Thanks,

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