Continental Resources Inc (CLR) 3 Aug 212021 Q2 Earnings call transcript

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

Second Quarter 2021 Earnings Conference Call. At this time, are participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. to President conference of like Rory over now Vice Sabino, Investor would turn call the to I Relations. Please go ahead.

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

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

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

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

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

performance thanks time to This hope operating good the any Thank in return-focused and morning, performance, exceptional where quarter, asset Thank provide I efficiency the company teams. being by debt form focus best Continental shareholder the we record-breaking increased industry second strong capital support flow $X.XX delivered you, confidence Rory, and dividend investors us cash and you $X significant the to repurchase of industry. our regenerated flow robust for on shareholder company investment addition to an cash this in is capital gains to free of in everyone free opportunity well. in continued our on resumption everyone. by per I'd and program. share our begin highlighting quarterly share, billion continues taking in being is returns join hope call. in to our like to to our and appreciate the continued We reduction most dedicated and

quarter, have debt gas, on oil flow, million the of unhedged our we retaining flow, quarter net second our that combination $X.XX over crude shareholders hedging, million delivered a X to from a previous Year-to-date, just Bakken cash and day respect day. a $XX performance exceeded $XXX generated million. we've quarterly provide of record-breaking remain hedged ending XXX,XXX and with of free On net BOE with our We gas of reducing the we more provide billion $XXX Oklahoma, We distributed dividend. for XX% will about We swaps collars efficiencies $XXX details. per and a in cash powertrain just by over flow With assets $X.XX around approximately our over of in exceptional the million feet while a Jack with debt quarter, by year-end cubic the During billion billion. company which $X. day generated and upsize of reducing $X.XX our production price we three volume oil. through to delivering barrels – guidance free and

XXXX, all in For we gas hedges and XXXX. have first at no no beyond the hedges quarter

impact oversupplied variants, particularly a given inappropriate COVID to for potentially reaction the volatility remain of and to we crude price it we into While bullish prices potential the overproduce continue market, is to believe government respect of to oil. with industry cycles on commodity

returns four free balance to and elements to strengthening and key commitment remain briefly corporate the As strategic I sheet, our highlighted today; like last discuss discipline, and quarter, on focused flow cash with cash we capital shareholders. I'd vision

flow cash and Let me free start capital commitment discipline. with our to

of entirety flow Our as In advantaged we shown free cash generation first competitively is generate Slide generated in oil cash XXXX. flow of approximately equates We're half the year-to-date crude our flow the for we of year, X. robust flow year, the strip profile our free peers to to approximately given billion cash the versus potential XX% announcing $X.X projecting at this unhedged prices have an and already yield. free were cash the which current

rising XXXX, XX%. close not response billion. XXXX reinvestment changed which our $X.X is CapEx to Given prices, reduction for toward to has year-end to rate the net our bring is debt balance strengthening will tracking and debt net $X.X billion sheet, With our discipline in our budget regard commodity our trending toward

We of expect target to but net not debt this to meet leverage there. are finished or one-time exceed EBITDA year, our

the debt absolute equates we $XX believe reduce shareholders. company net metrics to and is is for debt our intention investment in WTI, one-time our to to attributes reflective both grade. strong we at Alongside And billion to our the many inventory optionality, are debt. $XX of approximately powerful of Our and current outlook $X are our credit commodity confident one which

We're return So to in returns and capital cash generating on let investors. corporate returns and employed corporate XXXX. projecting now me to strong returns discuss deliver XX%

ongoing we approximately and by and has a our original cash which This versus rate industry we our quarter to have investors, why our in manner. We're dividends growth believe dividend That and $X.XX annualized share. prioritizing and dividend an our Additionally, dividend competitive increased we're in reduction shareholder debt and XX% disciplined return competitive growing share to returns tripled vehicles dividend committed sustainable yield, quarterly and committed is cash equals to to returns X.X% net the peers repurchases. returns. we fixed a using is significant to multiple including through shows last to cash with

our which We began purchases million are of repurchase in of billion, executed remains. share $X with million capacity of program $XXX XXXX resuming $XXX previously

annualized reduction be XX% XXXX repurchases of form remain of we would would company's near to and the flow significant our priority significant year-end capital in in alignment the to dividend for from equate current will operations, additional you XXXX year shareholder net can company. a shareholder returns projected to where of cash on depending shareholder that share debt the the confident that. expect bit combined full capital returns company's be which little timing you alone figures Share additive and XXXX The Given capital guidance our are projected of be a the repurchases, – share future. updates, me with the XX% these market. on let current we on by

the of between $X.XX day. XXX,XXX,XXX projected remainder look in several ahead original $X.XX. expense a guidance is are Production to per the outperforming metrics that XXXX for guidance the of to is to we Natural gas BCF be our range better $X such As to materially production of updated to expected key our following. now have BOE we $X.XX original XXXX, than

be we ESG recently Additionally, focus updates, to highlight have part highlighted our want We as on our on ESG. key XX, our DD&A which on have our guidance gas we and as of XXXX been DNA on website, a Slide our www.clr.com. to can improved and continued crude means found reflected something ESG our always I has a steward also differentials. released company. and

across society access us, seek should a the a there's we focus lot improve. energy underrepresented – poverty, the on global which to environmental across lack equates While in of that world believe all is of members from audit of to a societal dialogue, of all

liquidity, same the better continuously to at world. to improve on operational efforts levels to land, move order societal And role to by the with is and want believe by way, call new In of quality Exchange Jack in Coast, remain and is We closing, life. Intercontinental impacts, end. all along all the Enterprise gas WTI improving. our entire exciting air. the play essential water, ESG focused in combination year to will our for our This look their And performance. discuss Magellan ESG which to I'll natural it efforts trading now of all be and will in of Our economic to by markets. more Crude turn the participants contract Force energy and to people producers on access a Best global poverty start Harold launch multiple U.S. to approach world is of of do including futures led transparency, needs global update on AGS Practices continue operational the and I Products, the the by countries and Task opportunity mix. a Gulf from greater over forms the an seeking vital provide oil American appropriate Hamm, Midland will an part recommendations energy did to

you with. and are this takeaways Today, our joining you highlights to quarter, outstanding key results morning, going Bill Thanks there the Yeah. to share everyone. I'm want I leave Appreciate three some our teams delivered good from and call.

of First, with Bakken $XX consistency their gas. in $X our terms XXX% WTI assets our assuming our NYMEX are predictability, programs, for and to performing XX% XX% and from and Oklahoma remarkable delivering drilling excess

we approximately on Second, year-over-year these and weighted track XX% XX%, well by per are reduce are XX% savings average to structural. to of cost our

on XXXX. levels XX% to reaching for of capital record employed efficiencies and are expect projected a our we capital Third, deliver return approximately

Our market assets changing also provide optionality to conditions. to respond

natural XX% For on to rigs our be has last of of in up the focus our very decision gas example, year to quarter strategic. Oklahoma second to the proven assets

With period prices, a our crude year. half exercising of production XX% Our to in up quarter optionality first second to gas prices, natural Oklahoma this today's NYMEX rigs once same of oil of in improved natural weighted more quarter of we in time. more this up again doubled the are back gas was XX% over approximately than the XXXX this migrating over portfolio while XXXX,

production highlighted the improved benefit price. shareholders the full bill oil are our As un-hedged our receiving remains of crude well and

let's get highlights. the quarterly into So

these wells brought This with is Early in Bakken performance over compares of gross the in the on X. with delivered XXXX XXX, performance Slide repeatability wells shown oil of performance Bakken play country. program curves XXX our has prior of During average completed is on XX right the year. from performance by the of best operated we years, average Oklahoma. our The on the and the track overlap operated XXXX as illustrates wells wells any the in the quarter, performance arguably chart which four Bakken XX Continental consistent year-over-year, annual grouped

by efficiencies four approximately our approximately costs than the and Over levels. spent first record for reduced completed Bakken are to also have Today, well our XX years, Bakken we our time BOE wells we more by online in in XX% XX% the $X,XXX XX% capital did months per putting the XXXX. driving dropped in cycle producing last we

is Bakken of barrels by of per million from approximately of and the May. in barrels line, XXX,XXX are Our average improving, pipeline this and DAPL, Bakken potentially the This considering Bottom market for we one the of which for all chapters differentials day, and expansion, capacity takeaway than the the more X. also put approximately local August Bakken improvements driven month and into was crude produced X.X field of entering Bakken demand most With are in operation the Continental fundamentals, is profitable Bakken expansion bullish excluding shareholders. these on there the its rail. history the refining of

performance the Long are in our costs in second we Oklahoma, charts operating XX% X.X wells continue I SpringBoard and leaving coming These impressive should estimates point this to – our Before average Recent In has from all of that below unit, over these years. wells. repeatability are that the approximately well oil expect were early, a condensate wells completions wells I of the things quarter as the for XX% as to improved illustrated out Slide year windows. at by XXXX, our per condensate XXXX developing X.X excellent well we our original SpringBoard show XX XX. are our four of total XXXX. in early gas project equally both located continue the areas on on over SpringBoard well. producers Slide XX Bakken, and see last Creek and as Bakken XX% XX% well X, results well The in in to bellwether II, of great wells condensate shown year-end you both unit. time oil the come, XX% These by about excellent with were and XXX in I XX that the which of includes by average remaining performance and This complete in in we results can were wells see oil million and

producing are seven Woodford on performing there oil that is line outperforming. our annual we on II reduce dataset, we're completed left are with in by and we impressive XX to track completed is while so IV. years, our SpringBoard Now X.X were from Sycamore impressive the XXXX in Woodford more wells, the four SpringBoard the to wells shows the wells that I operated includes last seen oil well XX% chart completed small over a key the the formation from by Sycamore observations and approximately performance Since significantly costs record – that capital Oklahoma. break is by in chart wells to-date. teams provide in to four our completed more results we cost the have lower Slide This our that levels is average have on chose performance chart year-over-year. a driven to seven which the color total Oklahoma wells efficiencies XXXX, well XX%, in our III of Bakken of reduced has as in and that this The Even

Slide are Approximately sustainable, our XX% XX we did and River producing XX, approximately is by drilling driven on than times. spent and reduce BOE again increase Basin, in As schedule. are of first these designs cycle shown in right In XXXX. that more proceeding Powder performance we the the technology $X,XXX months on savings per XX% updated

days job drilling have expectation early Our and drilling met our exceeded and a doing costs. are great for teams and

We We results some completion wells end. drilling waiting to have two expect this and currently share have year. later six to have through rigs on year

these two December the fourth quarter projecting per a the oil and maintaining Powder production In one Later at this mention that putting of the core our the our I of Bakken, to Bakken year, to rig couple to wells but guidance Oklahoma teams point of end. are in year and by and each remain barrels some ahead, Details in have in Looking quarter. up of currently in third them must and within we the these that deep I year, exploratory the success, We can out our rate adding tell boosted we exploration inventory. of plan and are we eight rigs approximately areas. by two opportunities outside to continue with to exit production quarter, online do second completion in and oil generate opportunities a confidential, new new XXX,XXX our five for could you closing, second select significantly are I'll day. accelerating in In test our operating that quarter drilling Oklahoma, considering was should opportunities. of drilling add the Continental

the I call So – And that, we are section call. now ready to Operator. our turn the session the over Q&A will begin to of

[Operator Instructions] go JPMorgan. Jayaram come ahead. And Arun our Please first of question from will

what regarding the why you company. Good to variable dividends investors Obviously, went you're get on you but about morning. in given kind with his buybacks and hear the ownership how Yes. from love to getting feedback increased versus on cash just including perspective to Harold's wanted return. view you're your thinking return, wanted position I afternoon. of I view management's incremental get cash dividend, Good

question well analysts a that's and level buyback are know actually of our the seen lot share comments just that see buyback how vehicle. as the engaging yourself, what moment of with I work watching done dividends, only focused We've some such that that can of investors all the but dividends. share – is was probably of Arun. variable of the actually companies and us I say also actually with well. preference in perspective high internally keenly Today, on with there's his I of And think thanks, Harold's as as don't the I that on some a a special know everyone's And as comfort a we've he with for and to very gets we're are the preferred with a board, that. lot and discussions, you our in preferred out here played vehicle. lot the Well, us market. not seeing

Arun, All secular. Yes. crops good question. a are that’s

that the buybacks feel – I today at thing market in do think that's time. realized to and we a we're undervalued that this we good are

enough. Fair

things significantly on at if that, just follow-up to Slide what one look of is Arun, suggests yield that you'll undervalued. to look X, our And you we're on cashflow the that that

And in to type scenario. the vehicle appropriate I the use that so think is of buyback

the just like follow-up, then in in you may And I rig Great. Great. my correctly. late couple year sounds you in add it a Oklahoma Bakken, a if the heard

you've barrels know how get some rate you how there, you XXXX reinvestment targeted online? thinking have of but back if range So about plus out guys are preparing XXXX? thinking that I those you we OPEC are about put for a

Yes.

Jack talked then is rigs, But several well is ratio very things it in out and significant still comfortable at with XX%. before. That to articulated right below color we're obviously the the there. quarters that reinvestment add start production XX% about that we're there – me last what level. may We're but today, to we've that's the Let overhang, some on for we've the about XX% a pretty is

it's OPEC all If Delta, world. a look and happening seeing what's you around plus, at day. the variant X but in country, also COVID our The million to we're that probably barrels here

demand Asia see, side. You on on happening what's this in particularly the

in of focusing on. there we that the still thing both look future, those suggests us into reinvestment right forward things the our So for seems that ratio to as out is to are be be

think, was rigs got of don't we're year. the goes, looking As far texture articulated at the a additional you've And on up whether as still picking know end it. doing Jack, We're of I possibility I the Jack rigs, toward that. other any

said, you we're Clearly, which the into and move adjust around have we’ll we keeping accordingly. as No. inventory macro it, is, to

lot, Thanks gents. Great. a

Arun. Thanks,

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

doing call the well on I hope there. appreciate morning. getting Thank you. you this everyone's morning, Good out everyone. I

Thanks, Doug.

or So is fact deliberately our a price, as float a the your float. the to in to all, on gentlemen, given you've first run at $XX scenario over you strip got generating you've as has unhedged this. is I But to frankly, want free that pricing played your dividends four- five-year a cash proportion sector, opinion, your capital of extraordinary, that of the a you're only free put free business backwardated the it which is opinion flow XX% seems is ask strategy. allocation The And clearly period. market and us

my seems free cash because you years take the far what three in pricing of flow question two very it on the can the be the how the is compared strip. market are based scale could So buyback to is, next or significant you

we Yes, that it your at backwardated, way the and the vehicle. a here. what is that Doug, you're $XX it’s see the think describing with that exactly question appropriate question. is does the that's buyback does It And great same pricing strip I a suggest

probably those with made I'll that's overhang demand XXXX, comments out there. same side and that forward things that production Going of there COVID with into revisit is risk capacity a the earlier with

guidance the as time share now any future. to probably I that early the which say the about in But he we Thanks, day, it's up as Harold’s every we if with thoughts, probably is wants you think macro, got the not but right XXXX-XXXX to So guidance, might well. right to timeframe, I far where going it's be as question. of future the in talk pretty We to making in articulating Absolutely, your question. end it's the with regard Doug. root be the feel it that

I future right think think that's don't week what month. with exactly say overhang the actually we’re and And can until seeing anybody gone, holds. I diminish now this

your you're my about back essentially mean, float. see XX% buying I of You feet is though, point fellows,

rate the I'm thinking around the tough Now it's longer. that for it at right sustain is stick wonder which doesn't to without be free just inevitable float too much I going the happening, to about way. if

doing Well, see that obviously, next hope three that. change. quarters we continue hope don't things have we’ll We

it. you it it drives that start buying and needing that that that people buy same the we're see hope we the don't the to and position do We stock to way think Yes. then

really follow-ups Okay. a just is Well, capital and quicker my than bit it's about allocation. hopefully that,

of What today? gas good. are in today pivoted weakness You prices pretty How oil took your there. you doing are it to the allocating of sides advantage And the capital you are coin Thanks. I'll you both because leave optionality. obviously

the talk Yes. optionality, that subject. No, we both late. very with discussions you're capability I the And seeing have I'll It's Jack's seeing the bit of little question, some versus but what and we're lots that's think the the great on some to oil the about of on of comments. that's him you are where about doing gas, year commodities Doug. to a had great a latter to in and seeing And headed of go what part internally we're good have strength we're –

another really Yes. there's And would here and that's of just weighted said, back talked rigs beauty oil. or And on a of And more in of to more we're gas just rigs at the they're we've aggressive XX% looking where lot oil rig year we be And back the Bakken. a mean, adding close be become of we're oil more completions to with allocation to that we exactly from half we will of right I could a seeing the the the on weighted half probably be got when in going on in by we're look we about of as I the do the I continue at XX% and percentage where you push rig, gas the more do upwards Bakken. the the now at you we're focused have, that year, said, this right, you're portfolio. in at, it. right of as prices a we now, little mean,

outstanding be I be had you in going I range on somewhere see me up, like to that XX, here of in did of going recently. barrels somewhere Doug, are some on we it's window. the the earned And but wells wells. knew the them. we there mean, I that we some day wish XXX of, in eight the XX wells number, Oklahoma to a but believe like so obviously that with gas with tick million here will it's brought the XXX, I And mean, guys put range I think condensate

outstanding an just well. So

have go we to the way. option So either

bring We're gas gas, right. at exactly well. You're looking as darn on to pretty $X trying attractive,

– just we're rigs best kind seat like the the feel and bit of can we're benefit. little and a take think we So we we as in catbird think, adjust can advantage we get we where

might Hey, on primer to have Lori great Jack, our a when republish stock I was quarter, over congrats here. But you. Thank guys.

Doug. Thanks,

Thanks, Doug.

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

all. Yes. return Congrats strong or Good update. a capital of your return and morning, quarter on capital program of

Thanks, Derrick.

you With more how growth strong capital signaling naturally supply and you're Continental's demand would commitment that the need any would outline return to measured the firmly could environment? to that the balanced signal a response discipline, for conditions macro be understanding

for a look I It's Yes, talked about fundamentals, to some think the that. always demand I quite what look continue the that's we we've and time. mean, there supply at is thing we that at balance

As we still talked that got about production in bit the of side, demand supply got risk. side the things, overhang little it's a of

numbers. for is a what appropriate again focused us where to we back look to XX% the to an level time, about talking think re-investment to And long-term other mid-cycle a were on and of kind basis. period on rate, conversation we XX%, the I type So what we is together whether at be on think the that's to then those come are of reasonable

cash mean conversation overall on when where you the cash we look that's or The billion And driver see we've what one the dried six-year at aligned management less are continue debt-to-EBITDA and that flow investors. to It's debt distribution. tracker in and term, what's down free basis. other track our always free debt-to-EBITDA looking our today, a focus to of highlight cash – so that you $X to record on. strong And we is for that's right to of that a very kind And team that thing really we're return. what's a flow, that free at to a deliver cash we'll longer our we flow you'll ownership got a

increase follow-up, the economics sense. SpringBoard you to compare on IV III Slide on shown SpringBoard in to III makes that Anadarko? of I And of half with oil focus you That Anadarko your Great. would focus X. second to should and and strong allocation we and wanted how And areas IV XXXX? of other in to results think my the across potentially the the activity areas the your on the as out How as about

oil in kind in wells – of our statistical this are X% and and the these does – in we're And early and areas. And that question is returns with early our and I there. know of results have with here. play in what it's here what the partly slide the average into this SpringBoard this equation? inventory to into the SpringBoard it's And doing good Well, from to fit kind going II. are but we line here see wells is even in purpose that in in here. area say early right we're and performance this higher I you're And we're on much because at mean, of III the show and we're Sycamore III the I very and but where they're not performance, we that looking performance extremely a seeing IV. slide with the SpringBoard IV is just to you're our the very this we – stages show encouraging, the wanted similar these really And the from developing agree you, Woodford of

other reservoir we've XXX this above for is have we've understand these portray in what what got to so to with XXX- does I controlled really XXX-foot upwards miles STACK And areas? think And here. phase areas. thick you of square

Our average XX%. work is interest

here far basin, market. was We I to early speak that's XXXX in we're as the as the Continental, an what out It control out here of we But whole entrant Anadarko to of and So can't the time as tough the really into were because to cared. call basically have in nobody really a play. portion that. leasing when reservoirs I'd best

– bolt-ons our positions continue we've focused to it just and Right some are of to because so strategic because And XXX build done just that strategic to we've stayed on of we so remaining. operator bolt-on these focused to dominant done and of it dominant so. on continue we positions have we locations our through now And so gross are our positions and that. through and stayed upwards build some

to is been the in lot lot at that a III a talking so impressive Sycamore Woodford Sycamore of now Springer SpringBoard about this performance here. that, and do down here with Sycamore of And darn and on there. the I'm here. some one-third the out really inventory Well, you encouraging drilling and And And the pretty here. IV, what's out it's represents look and has performance

I the actually this these, and one-offs, some So and in. in here, and have this we is end, think V SpringBoard one IV, here are III other away from I in with we you continuing believe that II areas SpringBoard and be ultimately slide the out that take deck actually not we're will they're VI,

the but – answer. there. consistent know good get develop off how So long-winded to love just I the but is soap point them. it's that's to and it rocks we that, sorry, my see, and what the we'd That's results guess of box I I'm I because

fantastic. about results appreciated the mean, the Greatly detail. I Yeah. look

of out luck the you wells. here in I the guys best future So wish

Thank you.

Thanks.

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

around and the Can the Franco-Nevada a more opportunities your can you just any soapbox the JV, you on sub-site maybe potential latest Jack, does have little comments talk on morning. maybe what's some Mid-Con. the that's include that provided? of and and the around Good

Franco-Nevada – areas, these basically, all we mean regarding has it's line. it I through Well representation – the JV, there bottom

So as definitely far has some exposure seeing time. performance it as that's to these that and has continue for here quite concerned, will results you're

So question? and what other part the was your of

with is returns down potentially it what that I wondered, that you know, with is be or there Well, the with that road, just, Would no I going just do to it's helping a JV? would don't there's spin plans something that you potential with to, would Franco near-term up?

area growing not lot delve value Yeah. optionality shareholders. it's valuable another to future. got, day We're Today's a something in that that, asset of for tremendous and to we've future. do optionality obviously That's that's the we grow asset the into the We're do to but in our today. to of it see a

No, wondering, what quarters? just opportunities sense. either And great if been market you follow-up, then and export marketing you see opportunities or it one have I coming for just all could, makes I'm opportunities, you on seeing the here Harold, how see are what, guys even for some in the you

of graphed few that the prices market also, we're is been think strong, stayed new seeing seeing to gone to Gulf. somehow the best future. prominent a coming in to we'll I Asia obviously the so a it's that anticipation created FTR close export part the of remain over We're lot and expect market that has maybe quarters, continue Southeast has an

Great point. Thanks Harold.

Yes.

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

from make comments prepared sure one up I follow on your that heard guys, Hi of just to right. to wanted earlier. this I wanted

I thought up I guys XXX,XXX oil exit second per around activity second that you talked half. at on were I about I well-weighted guys you that rate day year. noticed guess XXX,XXX a this kind of of quarter. ramping BOE about the kind were you in year-end XXXX in the think guys

volumes to expected higher in March So I half. to guess continue the kind I of your second would oil have maybe

So maybe And just there? kind me sure that kind plan reconcile of mind? understanding of can in you help I'm all make my the

of we your that look you wells Really, understand thought XXX,XXX moved at December talking we a I there. from exit because yeah, the from rated core, been year were Leo into second actually When first that. for completed half have the about it, Sure, year. wells Yeah. around third we're core the second XX% in the about of seeing the the quarter the

And in be of second wells here half to so about the we the XX% the have of completed year.

big that's a well the of So that's and here equation basis a and net part so. on

ramping you it you'll third we is half, Just see a and that and instead what like start the half, to second your in more right, bit be the being will of then a a in quarter in has flatter, little be and up the so, waited up production because bit see you a is through know fourth. of really bit kind the XX-XX – do so that's of first question first half ramp acceleration, the obviously

strong throughout Cash shape. be XXXX will into carrying there, good in flow

Okay. kind maybe CapEx piece it. could of the just you that’s And to helpful. And talk of

total like about talked on well are You XXXX kind CapEx first first of half, your it's guys the XX% completions on runway of half the in you of below kind spend. looks which and it a looks like

of or the payments, under So of maybe of up kind a maybe issues help you're or can half kind just what's budget second happening guys here the little half, you CapEx some in in dynamic? guide, timing some with the hit there's the on the think to of capital us go but bit kind second you

on Bill little the just firm or rigs quarter, billion incremental we've referenced that our some second $X.X bit the imply would Jack earlier a CapEx We're today. in timing, got higher it's

the the on referenced well we'll the on know Wells application I of in those on of coming will for dollars, they XXXX go that yet, it's and don't of And XXXX. that set some have but forward. timing as early just come we're up when you So I reason part be that's give but XXXX. we you guidance and the earlier of completions those Really,

rest do with first and of said, frame least the most through the to economics. then one go let's billion, to maybe of that. the that get with we I'll production in to to way where half the can is, we the a amount with Yeah, look half dementia capital the span on with of on rest in the year. the And ourselves $X.X set this then constrain optimize what

also So million the for you but that's first million in all and $XXX see the why $XXX mentioned. second Jack production about half, why half spent in that about we bought that

don't the what ducks the any call in you'd second well. half year also have We of as And

that of the half in we into first turned costs completed obviously wells year were in prior had ultimately expended that the So some the year.

So they from XXXX. second really half, completion as we with the standpoint, case won't right wasn't come up see any of wells available a in keeping that which the we're late in

Okay. That Thank you. makes sense, guys.

you. Thank

from Huang Pickering, Tudor, comes Co., please of Holt ahead. Oliver question & next go The

everyone. morning, Good

Hello.

Good morning.

us could there or the in you spacing of sort are to all two have the thoughts been what targeted related if changes SCOOP, remind running formation years spacing you And the out by any there? XXXX winding any last In program? on further

thickness is spacing varies as by and all far that. concerned, As of and formation reservoir it

per the and So dependent reservoir anywhere, and thickness looks I can XXX dependent, the which pairs enough, look X,XXX interesting. like The wells. of guess thing in four and The wanted development saying, are, five X,XXX guess area wells, in a set basically it area we you the indications I units interesting you so Slide from apart, curve. don't the interestingly – XX actually that of it's we're that of that be number would feet wells, here on that look II one are, might them showing have it's early lot really we're what drilling them that did reason unit something SpringBoard curves is I well, drill like. And apart well. sure really a apparent apart maybe Woodford with XXXX-XXXX We and really the And we They're dependent. there. say we are, of of I like feet unit but wells say at get was way to that, but themselves we'll maybe again, is are

consistency Wells the Sycamore single parent So on one-off performance, again, wells. charter their of actually

to expect performing see rate. would we at higher them a So

areas that as we're in very soon is giving these other of spacing, possible. as other these projects, So said that understanding cognizant all of even in

how we drill move time drill know time full we into we well, to unit every can every So development we unit.

and trough you this raw that my a both are any and set lateral as such how the completion you more see the if so, potential advances there's of improving for potentially opportunity materials could you also Oklahoma how much all baking all back the if per – color trending on running are Okay, XXXX. question, significant year? made higher? is foot half or in And this simo-frac Do front from on Bakken you this inflation second on that's room on all expand D&C since helpful with color. front technology And in techniques,

And that's questions. Thanks. Pat a Bent this is lot and of

targets it's design, build our So think we yes, when on answer additional side obviously being to us we an from any engineering the lower on in an design, completion running XXXX. reach track – whether improvements here that's feel to there is a the in perspective technical on that stimulation see good we about costs, additional from the funding there, natural is our continue help about I drilling a room, to side to that

offsetting. pricing which through so that modest that we year, might pressure we And incorporates we do inflation any and see the which are

that significant well costs. there cost. the through got business any from steel from that number place the just but a in end that We've a side well So perspective is year completed doesn't the the the completed of have to through we'll pressure September amount steel keeps impact around and to of X% component of good pricing that

costs see design so year. about to ability manage And engineering then leveraged grow to to continue So continuing and our that strongly feel real to procurement. this

we have didn't that. all we one might XXXX I Oliver, programs. thing that did thing build other Yeah. is One on through lay-off

on, we we of running optimize engineering and able lots So come although year, so, have all a gate, of activity, we slowed our studied the we down how had group last actually during out And Pat’s that implemented of do this? opportunities not continuing talent there's to things yet. Hey, but that we focus with that lot they to were

How on us, doing all do life. feel past? been time, improve significant in curve how from is lot down, pretty room looking we quite over one learning at that's a in as typically we Pat And these way the curve a we And lot the we've do a XX% the is, is XXXX, of point, got of describing. do still it that's a looking differently? cost, still was running learning you other technologically, front the of of that's mentioned so at Pat how comes And time part Pat’s activities do things it one from to to we're faster it when do that it. So

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

you you. Thank the your questions. further out joining reach Great. Please to with today. any team very Thank us time. much for We appreciate IR

you. everyone. Thanks Thank

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