Continental Resources Inc (CLR) 4 Nov 212021 Q3 Earnings call transcript

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

Third Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Rory Sabino, Vice President of Investor Relations. Please go ahead, sir.

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

Chief remarks today's Hart, Berry, and Jack start Officer. will Chief from President Chief Officer, and Stark, call Officer John We Officer; with Bill Operating and Executive Continental's Financial Strategy Chief

Additional will team, Mr. those contain and that projections, Chairman senior forward-looking Harold information available for guidance. executive will statements. statements Please company's forward-looking concerning the for assumptions may in from the statements contained Board, be our differ Actual Q&A. members Hamm, risks. of to including these of Today's materially and filings results call address refer SEC additional

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

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

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

Rory. everyone. you, We good morning, inconvenience be this any today. of exciting with moving not was you able I an to things And the did share you. date several for Thank earnings to hope

record for of million. be Second, increasing we the XXXX XX% cash is $XXX and terms $X.XX to free for $X.XX a is employed cash quarter going us year per flow to generation have First, expanded our approximately Clearly, both our record on in our free our flow of shareholder capital capital and from increasing dividend share corporate returns. XX%. This by includes return with to

indicated strongly acquisition, leading and Like basins shareholders metrics, transaction our with is acquired from on Lower financial this now fourth, River. and than that alignment Continental our more capital Permian transaction with we five of to is and Bakken, return assets we Pioneer, the Basin transaction, grade. fully returned We Continental's every the cash on assets and Oklahoma annually with both free the XX,XXX commitment projected now providing any per Third, importantly, over on are Powder shareholder return acquisition this and corporate strong next supports our of employed to The The these integral be XX,XXX these volumes acres. will day is and Permian BOE return X,XXX royalty comes in locations, This The share acquisition PDP accretive this we've are will focus existing plans. up X% return our Powder complement of with strategic been And repurchases. we XX,XXX a material, and to Basin contributor by Delaware public and we tenants continued to is flow. in acquisition maximizing believe wells investment post previous XX from shareholders have shareholder possibly investment other news the acres, deep River quarter a And company. E&P to returns. net diversity. have on to geologic the dividends shareholder about X as an assets outstanding and an positions add finally, day most anticipated over calls, key investment, first with also on all driven years. acquisition fully asset geographic in portfolio across company the $X.XX of These progress. billion has exciting And from

deliver growth cash production are strong foundation able flow. Our the plans for to free for being low single-digit

$XX and we executing our to as on to quarter, took additional million many quarters dividend repurchases. with increase third third the share in increase During in returns steps shareholders

target While than the remains be one. we additional our some transaction, net less taking the debt will on for pay debt-to-EBITDAX same, to

$XX annualized year and X.X expect pricing. year-end X.X to be XXXX, this We at assuming to a by debt-to-EBITDA below strip about exit net quarter expect of gas and

commitment reduce our in unwavering We debt. are to

to nearly cash Our Slide free after versus We X. $X.X at billion above equates flow the which current stock competitive generation broader is to This value free shown XX% of has generate the year, is this our and flow stock. as broader year-to-date. even remains significantly market, further This yield our on peers upside about in prices. the XXXX cash tripled majority peers our our industry market, see very flow of in indicating the cash the potential of

integration we of expect assets next updates on acquired and Permian including the to look we provide capital to early year. our XXXX, As budget operations, newly pending

We our acquisition are cash will further enhance this confident free flow generation.

you we ESG achieved the up in $XX update with me. want capture gas And a we regards industry-leading our performance gas of million have ESG I ESG approximately is XXXX. for year-to-date. In from our capture in support XX.X% XX.X% mind revenue to to deferred XXXX. performance In of Our top quarter, stewardship, third in rate,

the nature the integrated the We're remainder expansion Basin. reportable our with through highlight the will Permian announced of Congratulations and on Additionally, of Jack an expansion, John and performance. financial to among the our quarter we have employees, commitment compelling in the of recently to safe provide responsible proud details their of outstanding exceptional the teams injuries some specifics our our into We'll continuously and on of manner. zero fully achieved and deal. outstanding the a discussing the call geologic team operate will aspects regarding accretive spend and integrity third attributes XXXX. highly environmentally

regarding new team position corporate our pro was a at strategy current upside current and on undeveloped shown Slide On the value leaving technical Permian built at operation XXX,XXX the increases the strip transaction Later of the flow acreage PDP driven and our foundation strip a the geology basis by of expect coupled X, cash expanded Our and in growing strong led geoscience we on prices, across call, current in billion fully approximately $X Approximately, skills, least on by XX portfolio asset is details have management corporate significant generate position success aligned progress at in and prices, with the as this is in tremendous net wells our footprint Jack acreage. with teams will price this in our now assets. provide Permian This acres. the with Continental's operational to area along XX% Permian with covered footprint, top-tier forma value Lower and had XXXX. of of shareholders. of

as assets, pro about a to nature tremendous control Our of about compares free is on minerals water fully flow more Slide cash The date of Like company's favorably the effective the that be and turn of forma transaction the XXXX free quarter. flow this our we of infrastructure acquisition. is the future, in I'll projected an asset optionality on for and unanimously approved closing in has XXXX X. very projected as Board integrated been texture X, proposition in expected multifaceted to cash shown and now XX%. with yield the This value upside and Jack over by including fourth other call to Directors provides offers the XX%. and October our John

you, Bill. Thank

mentioned, transaction today's and flow cash number per This to and on Continental shareholders. acquisition Bill employed return accretive margin. per cash immediately financially is share, has share, a As capital of flow benefits earnings on free cash

is a credit is beneficial transaction diversity. and paydown discuss amount approximately discuss will items. PDP, EBITDAX optionality our rapid Let's million prices, our rating. while ongoing the agency healthy I This enhancing our transaction projected credit and enhancing at those momentarily. views of of This per benefiting to current $XXX our credit trajectory year metrics. debt metrics, strip includes of It due commodity cash credit-enhancing benefiting a few to our flow geographic by

at Additionally, current we prices cash our legacy are of of estimated at projecting cash $X the an at XXXX prices incremental Continental. in strip on XXXX based flow least from flow assets, billion expect capital production Combined and asset $XXX million XXXX we spending. strip for free acquired free with

We have the in flexibility transaction. to plan how finance significant we

hand had of of $XXX flow expectations strong forward. XX, As cash free on we moving September for with million approximately cash

Our facilities. acquisition undrawn. utilize billion. amount Remaining XXXX be transaction. We commitments markets a to debt extended On XXth, from will we increased term fund and/or to to and available this our to and of revolver bank intend cash revolver available remains financing $X.X our capital October significant fully maturity revolver derived October

deal. will this on basis. amplifies transaction approach fund additional We means financing issue a this share not accretive of equity nature to per a the as This

projected times during initially X.X also Our with only increase expected strong but X with the to XXXX metrics credit prices. debt-to-EBITDAX slightly times to net to the is current below from remained strip quarter transaction X.Xx third in drop at

by to maturities billion funding, possible reduce debt or $X to cash plan utilize pay at cash flow We to off the XXXX opportunity. revolver our earliest is to XXXX year-end approximately target pay Our and and position rebuild XXXX. current back our off levels bond the net XXXX

transaction maintained this have may to S&P to been positions has agencies outlook BBB. investment a BaaX Fitch with you and upgraded plans. at us rating of noted, eligible, us a has agency Moody's has upgrade the our two with grade. supportive upgraded have investment grade, positive and positive one investment-grade As outlook making us us and fully to This IG. to to agencies

three with pleased as ratings. are our We this progress investment-grade is objective

I the Before turn to some Jack, highlights I quarter. over of the like call would key from financial the to note

pot gas combination XXth, at $X.XX. flows in and an an gas prices, our have has previous are Form hedges as of Subsequent to These portion the average and average we We've natural positions. XXXX attractive continued in a call lock cash second through $X.XX collars prior of year-end layer gas in to note rise elected for of of XX-Q we our XX-Q associated average in a with have in with in along quarters, September at you company discussed swap XXXX. As prices. swaps utilized will the natural an with the the natural and $X.XX hedges of of quarter positions to summarized through

oil, rebalancing. We supply market price as to believe and are due of are demand un-hedged participation largely for supportive fundamentals we

to consumer were acquisitions We with decided I flow of to back XXX% cash back of associated pending on gas-focused domestic the activity given gas billion modest additional capital natural key in have we the flow incremental Jack amount in year from our rate up just outlook projecting free approximately with is free reinvestment remained Permian Reflecting some XX%. This capital guidance our reinvestment XX% order turn of the due figure. market of to original we discuss highlights ratio our that of XX%. of reinvest or cash flow would of a an demand, $X February, under now a operational meet time With to global winter. a projected leasehold to from at this now incremental guidance, original deal. approximately this CapEx cash like that have disciplined to call acquisition, and additional and the over undersupplied the

the that They a saying you, significant revenue assets touch are key I'll Thank continued on and by our acreage to of net Permian morning, right good start excellent John, working strategic existing everyone. significant I'll to mineral interest contain and including portfolio. infrastructure and operating the efficiencies, Continental's ownership, position operated addition we've with high all and of here. the technology rocks common acquired out excellent assets, water contiguous briefly surface exploration. economics, potential through each these ownership, upside components interest,

also significant the reservoirs largely net XX% XX% all can XXX that is Referring First leasehold other wells over XX,XXX of We we includes reservoirs, these to operations. there. This benefits an stacked forma under make back this as these our assets wells two approximately But the will inclusive also estimate interest Slide the is reservoirs approximately expanded potential Basin. XX% as are per accommodate by concentrated. which our intend we you pro about high the over acreage. The oil. to XX% production, world-class delivering XXX these Continental and Bill, portion well future. to a operating the XX,XXX of months that targeting XX% or wellbore Slide past think that which can acquisitions, now want of cost X,XXX basis, of gross includes and the of oil-weighted day in The rocks. XXX% The producing over three in facilities underlie efficiencies operational BOE production. includes I Permian Basin acres inventory we've Spring, and and net basis, including explore acquired and is interest assets have strategic properties operations acquisition acreage of the of efficiency through are out leasehold, basins, Approximately have asset and acres. raises average its in delineation to drilled surface wells approximately The infrastructure that Wolfcamp reservoirs how the acres shareholders. to oil-rich X, this water primary On acres of existing and is net through own progress an XXX,XXX contract expanded with our Most and gains to this the acreage over initial B, proven, approximately on and significant Powder approximately on highly see acreage revenue NYMEX. pipeline, production by XX,XXX of these provide stop close to WTI immediate these of and also exploration. and per surface contain we stage inventory develop Powder I X up turn this contain as when Bone growth. foremost, well to be contiguous, see well, $X last of for XX assets growth on in approximately very economic ownership, locations underlie and other is wells for into XX%. point additional trades the XX operate Basin I'll are to Texas acres our held assets improve placement, and an financial of our A, acres, rates complement The on acquisition around this third the known complete call I'll there consider including opportunity Wolfcamp teed and are we royalty the from miles XX% Continental River and grassroots in well Permian pointing which you will before and been disposal of moves $XX working Through importantly, testing The exactly at being like. in return average over royalty performance full development. Basin. directly XX,XXX impactful field water what net XXX,XXX acquisition strategic reservoir and is they as we early leasing, density and the well and returns optimized phase of for all And our River plays, development, it's

over the drive deep it providing in also – we and added we Oklahoma, During have net over net of our to inventory heart billion X oil-weighted Bill. potential springboard Combined, expanded decades resource time, profitability of well resource returns and assets assets this our XX,XXX adding also or that, and barrels come. Oklahoma. these industry-leading strong in assets the Bakken approximately in geologically tremendous back diverse acres Continental shareholders for will With that a to turn I'll potential, to

transferring Jack. unique has capability record operational basins. you, track exceptional company and expertise a having to long of This and new Thank of our well-established an existing geologic

portfolio. in Oklahoma points past for into in the our have to operator? call begin see that, Q&A We and the of to significant inflection to now entry representing the call. the With section created as an position Bakken with I'll step the over we're significant point, and the company our River company's the the We the positions. turn Powder changes additional inflection Permian complementary ready

question Instructions] Neal Today's Thank at Please Dingmann you. from Truist. first go ahead. [Operator comes

on one and too Good a ask, of Jack, maybe nice on curious came Bill, associated is for but my early how guys. the thoughts maybe morning guys, And question, Maybe all be. you, to infrastructure deal? early deal, this to know to with is just the congrats deal just you the

about turn you Permian, But the question. in at might the look looked something we Yes. some putting guys investors century our if Thanks, actually actually, involvement by caught in of have Neal. and I out of know at together Permian. the Appreciate the the Yes, surprise. some our this of you

time new pursuing this we're there. So as be happy the things anything you capabilities, we've it's is brings this We've diversity the country. the in really it's – to this our basin. that compete on the very the disciplined, actually looked a was our never with we'll actively been something been We know that active And I to looked team. very geography enter right right were strong and But process basin, the have with numbers accretive and out economics ventures great run in deliberate in to like Obviously, or this, us. there. we we've operating the a we is pretty of markets, thought and

So that's portfolio. our was years specific a started But little years maybe good XX-plus started started the the we're yes, I XX about company. really, asset ago And ago. bit have of probably the as when history. years part Permian this of delighted really It to ago, just XX

on John, pointed Obviously, all property Okay. And to on me, free the to maybe next a for you for – question as new then year. adds buybacks. flow the nicely potential the share out cash

are say timing thinking, anything how sort Thank shareholder maybe you'd early to John, too just returns of is the thinking you Or you. you the So next it year? of just timing about guys of say about buybacks?

Absolutely.

and to Our remains shareholder commitment solid returns strong.

this than ownership. more They industry any part million reduction we as it. place. are That a We're our part that. ongoing. are bought in in X of company flow. And generating has quarter. in been significant is cash amount remain will increased shareholders achievable We important about the That continue of the shares obviously, a line with We with dividend. an Buybacks well. Debt of

with here strong that us and gives the to competitive buybacks while it, and dividends. So continuing fund ability add share resource

Thank you, guys.

Please comes Thank go of Markets. you. Scott from RBC ahead. question And today our Hanold Capital next

Thanks, Yes. all.

can there out get you give – to you drilling some at you've on comfortable color was seller to get just the adjacent of of you've interest. position. that you looking give was indicated going sense able Obviously, But the some us was yourself Permian transaction, standpoint a that available? a back there to Did do what been it time. some from actual Just had quite did think Or with I it geological some and based been kind unsolicited did and on data acreage? was do geological you it

probably if there's from area look Scott, and you in Delaware. Jack the at let geologically the this this But Tony on lot and Oklahoma in the area similarities capabilities weigh Well, and as well. of a I'll out the of company,

we lot transference also a us so And that do. is but to fairly can of capabilities thing we of geologic that to for bring understanding understood, operationally a it. And pretty the basins the well easy there's think

three-mile country. driller largest driller, lateral in the a the are We

plus think that, skill the bring so sets And to other ability some to got that proposition. we we've the unique value

it's maybe to transfer value a think I Jack, operating don't Continental of to you geology highlight bit And more Tony, lot going it. a little property side... the this on with why

some as started obviously, well. a the we this, may things when look we at Tony geology, But add to and the here me. to rock we know have really follow-up

we've is – obviously, pace and with And contiguous the all And to interest, this. something cost and really have I position, got efficiencies for we'll right place people how large there. when here everywhere so opportunity got at in mean our a I the big we one and enhance components and lot and infrastructure already bringing be this, the performance mean, look well table improve it's see acreage XX% completed. components place asset just ability the a and at lowest I at, go this that being in working rearview just looking develop look just at here system got for mean, the water up more it's this, see you've as bring I really look continue for to we're course, the to XX% concentrated and at we mirror essentially you through mean were XX% up of we're the – density assets it, performance, an when in and – operating in and is of this said our that have And of – Gathering alley. the well all operated, to big just opportunity look placement. operator acreage. that the comments and results we that's to development. optimized wells of here, our there's asset been here that ahead. with HBP, you in here with to consider And average we teed I facilities we my our

at where been. it's to taking technology not where got it's and You look take a you

And at generate going. look opportunity they're we there's lot assets, lot see so shareholders assets. future in these for really value when of where And Continental a we that see and of we to the these here a

not other we've might basin. from this really add to lot have The operational Yes. is sets of a a which everyone is that maybe team apparent skill got deep thing on one really talented that I here, this

There's lot that area. this several it's something not the operated experience in a around sitting had have So like it's out never we've table of actually in. Midland that

other your that The a versus I one is take this that attention deal. deal now corporate asset to want is an

a going the that just and integration quick seamless here. difficulty with not acquisition we're the So real an asset and company. it's corporate, through come a of so asset, that integration It's a and type big have inefficiencies into times, to lot of dollar

looking And maybe million acreage you to fourth follow-up, color it are as your activity, Great. me about highlight close think, all in the position there quarter. the another that was, the little on give square a of Can $XXX and on in that did the XX-Q, circle A&D Okay. help Texas Permian. I in my you

you deal XXX; transactions that at said this to Is acres. that's have. the think of quarter XX,XXX the looking to think this, some in variance? was adjacent you close and And the I fourth I you're

we're reasons, contiguous with our not. – will we're things lot But this of up geologic on that question, right that yes, and a our a based to a going not but on following some about and It's Yes. details whole But surprised more in get bunch to, for now. We've I'm that. adjacent understanding. the would works be share right here not got to like you great competitive on to others from in

you. Thank

Stifel. question Derrick And at ahead. our today Please go from Whitfield comes next

morning, taking questions. thanks my for all, Good and

Derrick. morning, Good

your to your objectives, thinking billion aggressively achieved? I the it question, capital first more And ability to if change corporate direct a that more my objective in return pursue about question once at With of wanted then all? $X objectives target, does how ask specifically is longer-term debt debt on your transaction,

question. Great

be XXXX. the roughly back at We where for at coming end billion to $X cash projecting free to the of X:XX. multibillion That's that, by future, back expect flow. we're cash we're years here with multiple dollar flows in And

through bought of share exact So bought of us, we have but number don't things. ability to We through roughly of have able, the me, lot a corporately continue XX shares front will to – to XXXX. that over balance XXXX, we into trajectory. It's We've couple in and and years that. buyback last been of we I a important roughly million the number continue our

in we've in a reduced way. debt upon Additionally, during it material quarter of set obviously quarter and And billion excess our $X.X increased dividend by we that time. reinstated

the looking $X our go only But it's below forward, we we not to five that, the go chose Our the substantially years over views ability if able models, billion. zero achieve to so to next being debt. have to

is that got we've and resource flow, lot and So that a trajectory. cash of as beneficial flow very this accretive adding to lot to a ability of cash adding that is

where you are opportunity wanted build well really uplift? the your to comments. greatest my seeing improvement as the then I transaction, and value And follow-up, on of earlier a question some performance to specifically that And ask for with Terrific.

A Bone, in go, more but have of our a out so got long B, should we'll them underneath be acreage the add – our a placement, mean that main it harvest here a three three-mile I known the just and down I with here and contiguous road, reservoirs lot experience our of looking density a to there to, surely that it, that, laterals. can comes at I to combination a ideas. at down position, develop are We've benefits even able looking lot there's mean, simulations, in of operational this, nature things. this on of just lot from it's be to things be we top we of and said, we laterals the we we efficiently the and a Third and basin. be there's targets efficiencies, it. Well, to other that. lot we we you name leasehold, those here, just of seem the the as there in And highlighted there's of all in basin, and there Wolfcamp But then think know we learn wellbore others attention know that we're on can able been have obviously our raise I to down bringing We bar to paying performance to from assets. of everywhere producers

That's Thanks guys. very helpful.

Derrick. you, Thank

And Please today ahead. comes question go our Capital of next Johnston from Phillips One.

Hey, guys, Thanks.

now rigs you what to three rig. back as spending? look question year next the I on started is zero rigs anticipate And Pioneer is, would how run on these of and My one think with properties. expect rigs September, running about one sort CapEx down would had And year, or at to you four these to you I think many properties? point in

a That's question. Yes. great

running They the at discussion did they're and of actually You're about running four But dropping that them with down. were on this. our expectation about rigs four They have days rigs right. in on is be our running area but development this XXXX, that based rigs right giving not XXXX. plan of couple on in XXXX, now a and guidance obviously in we're probably

that sort what imply? of would And CapEx Okay.

the at we're one on so giving point That's not – just time. the but on together really that numbers total XXXX that, this in there numbers Yes. we're putting

leasehold prior some enough. the CapEx additional addition acquisitions guidance I be that properties as versus some Fair you if that? correctly, million includes on Q these then heard property Okay. your additional And CapEx John, the in the other of you $XXX well as $XXX XXXX disclosed in million for to of would

those They're they on But do. most if There into incremental be they know yes, I factored projections cash would flow closings. the the don't timing our for part.

So it's so of – a a both... but mixture, bit

Okay.

good. Thanks Sounds guys,

you. Thank

question Please of Bank ahead. next comes from go Doug Leggate our with America. today And

I for guys, the appreciate getting Thanks, on. opportunity.

Thanks, Doug.

me production with thinking you maybe about against start on too another just on you've we that a the that on transaction a – deeply long might to legacy this overlooking if not acquisition seems just of it I be bit wonder the infrastructure coming acquired. that water ago this doing It's of layer basin? that am there's could infrastructure. But decided that there's value random I question I on out the of your

integral Doug, absolutely The about nature Yes. XXX just add because water the it. value that's miles there, correct. of significant of this to you're assets system of

of looked we And so that able facilities we've the considered in of we that property hit one were and had running. actually, when the is interested us proposition it ground in place, at because the to things a makes they value this that

But be on question, monetization clear there just be opportunity at to some a would point? my

Well, an that's option. always

as be as that And do year. earlier with saw now, you at in monetization position point our that. that at to have year the this a looked talked about, some Bakken, we up we Just Right plans no could last in time, and we opportunity.

sustaining kind going Should to future, expect in when on All the write-off capital, us any Obviously, instantaneously low, that. growth any answer. afraid that have of But you're exposure? cash your mechanical question level John, to at just situation, on NOL the is, quick of you meaningful a no a point large a amount if IDCs taxes. we could follow-up – refresh a get in My mode, you're I'm appreciate Okay. a I'm burden. a the right. really against tax interested give in is it's tax that essentially I what of cash you there's

So, we've lot that. a of analysis done on

good looked as and expect it. an the NOL a you this driver. got part Don't it We – hold important with we've without acquisition. is any focused on think and I at on

that companies you're correct to said. mechanical, investing the when are It's levels that you do cash think, also at transition You're investing at taxes. you as I

used So, we The the future. taxes. in We cover could see cash into the I largely $XXX defers We paying XXXX. taxes see in will NOL less of that, portion don't but million have that NOL a than XXXX, the NOL. of XXXX. us cash as

through cetera. et and things than say the million Looking varies different I that million longer timing it upside it's But on would of through XXXX year $XXX term where on, to XXXX. that, $XXX coming by

big significant would obviously, be and NOL, obviously, play. lower come in that, level So than states Tax in is and into states component. That's some different federal. a is wouldn't

the Thanks clarity. guys. I appreciate

Sure.

today Arun Please question Jayaram from go next JPMorgan. ahead. our And at comes

bit good thoughts. if see expansion could I you could a we elaborate bit to the more to Yes, wanted if little a little see in wanted guys morning. Permian Basin. just on And get the

longer-term You've evolving? store what in And the Permian. is the and added to operators be the PRB number the is – in the just leg do now look how third in to you private Permian, now in consolidator But the basin? longer-term a the strategy a the of given you're

is that of parts a there. big the question. of Permian Obviously, Yes, players significant lot couple a there's to a with basin great

efficient being operator, what earlier, us think the low-cost, the go, being probably able deliver to I was have demonstrated most we as the we mentioned everywhere that we've track to you'd look what do as and Permian to Permian of in done well. that record is in anticipate elsewhere, a we

be So that would primary the probably focus.

pursuing at talking described that area. there competitive was reasons in as not some now. is that we're opportunities we're be you'd think There geologic looking that for by about Jack, out right considering us I there's

one morning. And got by for upgraded John, you John Great. Moody's Hart. this

about I from capital, benefits, to So, cost the could some back of getting congratulations of see there. you And IG. et talk wanted to just cetera, if

IG The X/X. can XX to to basis move be points

I So, possibly positive, that's think more.

on we're of be in we the The delivering Obviously, this. significant well. largest the cash down in markets positive going forward long-term flow the cash it's do. a of obviously sixth this looking a – have in year flow. free been history We've will projections We've a row obviously are say track We and paid equity debt. what debt to as

All attractive of and improving that factors capital in cost to and of a very of cost gives capital. us our

BBB. So important. as And upgraded Fitch us that's to well

cusp right So that's the S&P as well. important And is on there the outlook. with positive

So, very attractive. it makes it

John. lot a Thanks

you, Thank Arun.

at Mehta Please And Goldman ahead. next Neil our go comes today Sachs. question from

both will be cash is with you you this transaction thank been as share first the repurchasing to evaluated much. you reduction? about transaction share think and aggressive asked shares very the repurchase this where be the have execute you And able relative and you around to been your Hey if has still about I answered. question apologize But own aggressive. count And how program,

on balance of return. one distribution. No, creation what When the two shareholder the balancing to be, that are the of is is and I at is both. impact into to value At easy we things; end go look going the type going answer acquisitions we to the think is these cash we impact sheet the the day, be

driven this the you going for the are important to And value was earlier, So if us. create those are that at cash it I distributions to value future. what, creation. ability this us think, actually second is the returns that's shareholders, alluding by to make of larger in is things form to equally And John to look

just part portfolio? the of Bakken? transaction we where follow-up terms do that this, maturity in an Or and in diversify does the this in the And is your reflect opportunistic Bakken the maturing? runway of are you ways think the your Is Bakken portfolio is some view to

there's talking side that. still think of when geologic and And running the there's room. parts two and significant you're running what's the I about room there things to

a value question. The area, going been and the creation that's other in the on consolidation is it's

There that there There's well room. I think in Bakken us. fit running things with you're the asking. been have additional, transactions think have that would been has considered could we actually are up significant that

want value for running really proposition, one But there to they is overall just to now. is the the value the on right strong eight Bakken, rigs creation do. company things This got that we've However, us. the

that is saying And inventory pursuing we're long, that anybody seeing of be up bit still Bakken from developing falling long the in I a we're to a going off. area. quite way So, think

Jack, So, some probably got you comments?

some to on too. point I'd color that, No,

way are performance you the They're can wells. those at say drilling wells XXXXs. the our from look XXXX, here see over look look got basically in actually in mean the years. And there. a Long performance are Here, X, program down Page I during we you we've you And take XX what since think well, off it And Creek over had here, average got the lot of first on XX early still average a wells of XX% then completed. And substantially XXXX. prior the wells in we And if in And on we've Montana horsepower at, next at here Bakken out in of was kicked XX they tapped. Creek the outperforming just we've we've Bakken shows statistical year. out be XX% completed be this are And those to a years. that will that the And following there's another the remains Long we've got five and by year more probably in the here that completed rest will drill. back get year-end. unit to

performance. I bellwether for mean this a is So, of type the

me, can And You maturity. that reached like unit. play to has that look a expect doesn't full that

you and we're Yes, in Neil every is look to almost best build year, on that at what that's if highlighting, drilling the Bakken. our wells Jack

year is So, years this than better year. be than year, better previous year is than this last to and next better going

And can you see think so, trend continue. I that

key. the you've got in is mind think Yes. keep leasehold to position I And

develop we've our have type been some basically no here, because able to inventory here Bakken definitely, deliver maturity footprint industry-leading and continue just operators, For results. or and of these to they of large drill the reached they to out

deliver. the in the and to play build we're your the dominant position a position in play, proportionate it's in So, it's play, and early and continuing to

Okay thanks guys.

you. Thank

Thank you.

Thank Neil you,

ahead. comes at Scotiabank. today go question next from Cheng our Paul And Please

morning, Thank you. Good guys.

Good morning.

or looking something Just that help from backlog for an WTI standpoint, [indiscernible] is can number economic of What's and that with the inventory US$X.XX locations can curious said US$XX region at that you we basin by we're total? share. you if

you're look it, mean, at breakeven question. a asking? what that asking I like When you're almost I Is

correct. That's

Breakeven...

certainly mean, a I back this deal. mean, inventory trying your we're that, And I of also, with improved Yes. lot to understand you that,

that, trying now of I we're we're understand talking inventory many this want mean, about your if with years to how just drilling sustain you to still the So, operation?

year look Yes. are about if you Well, guys XXX wells at I wells and get going a mean, to assume rig. XX what per

gives of what that XX-plus mean I there. rig inventory So, you years

an So, that I gives you idea. mean

this get You competes. question of it? was how idea however can many you Is your that asking? an in other that put inventory. that the there sustainability part of the rigs and what of Is And you're went

some at, a inventory competitors the pretty would Well, say, be and that $X.XX $XX of give WTI really of on, your looking based basically lot at conservative. people is I looking think, will backlog

that inventory on based your of we so, this at? And conservative are kind pricing, backlog looking is what

$XX. what remember, here, leasehold minerals got keep below this at our acreage mind inventory that you Yes. underlying that our And got here Well, is this we're looking got it's to in position. of XX% here breakeven we've

here on average acreage. our strong. net this revenues XX% They're So, are very across

ownership, got basically benefited infrastructure, water that, the it. That's you SpringBoard. that you've from so, And the has say We why surface to going all from I This assets component the this basically the own you benefited have. are is Continental name thing like parts infrastructure.

can take hold a that's basically apply to next and it type to the the saw mean, I We expertise this then of and opportunity a And geologic working is copy have grab basically of square there, in our that's mean size of of as I the we there. take unique together. this average why carbon project of the we and miles XXX XX% a we and acreage interest. control projects operational it level. asset Continental put

on high yes, that comparing fourth is two-part. also mostly get customer to is it's tell oil under of do level? sold Coast? most the will [indiscernible] And sold you My I you looking you Delaware the you when One, existing is the a to expect second basis, the contract plan in And that? to to know pro question whether but oil grow currently that basin we're not, the them do also, you can Bill, or offset, existing you. for and undistributed when once Or forma have that Basin, would Gulf early, that a gas inherit. do think that If us production remain you Thank you year, relatively at selling quarter you that, going you flat? next production, the

thanks, Yes, Paul.

it's in heard to we're oil you've fragile. the going getting and exact I So, to think We're the be Delaware. but still pretty the it's be Yes, QX, say to The year still balanced, and is this to market product fragile. out versus of ability us two questions. close position. The on production the able maybe same thinking previous calls, QX, still pretty is then other market

so, the industry fragile into in for be that market. oversupplied it's I overproducing to And don't anyone appropriate think potentially

And so, low be going think, year, us. rates, from to what next see we're I for you'll single-digit growth

able to out. in as far are the in past been [indiscernible] offtake, factored produce And that market to into Permian. tight and with As is of ship of to rigs, with ability crude that’s the and a that. gas well. with that couple that’s to gas be that flowing producing the in the the our one we levels analysis differentials to That's is what grow what’s Obviously, as ship things the there and driving the to seeing opportunity the has at we the there you’re some approach come

over closing session. Sabino And like I'd to you. gentlemen, concludes to any conference remarks. for back this question-and-answer Thank turn today's ladies Rory the and

Thank team. Great. Thank Relations the much additional feel a very any to great Investor free today. you. you time for to address day. Have questions And your please

everyone. Thanks,

conference. concludes thank This sir. you, And today's

now lines, day. may have disconnect a your wonderful You and