Continental Resources Inc (CLR) 15 Feb 222021 Q4 Earnings call transcript

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

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

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

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

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

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

of please Principles, the has website reconciliation will that, Accepted a presentation refer posted I to these at on measures Generally that Bill. updated the over company's to investor With been to Accounting For www.clr.com. call the turn

thank Thank morning and XXXX, our enough. everyone. in an year quality outstanding the I to thanks base good Rory team. can't dedicated and our asset and exceptionally We talented had you, them of

but has that to its a like Resources. to would whom that delighted he of of President, appreciate its on and has familiar. continue you Lawler, and consulting with miss of this of Doug brings an wish of for on Chief year. our I'd company, knowledge people in in the and join and made have of part-time a contribution regarding Stark daily Before culture. in find the excellence few service our are much his He our We'll call, and We Continental. basis. the industry, and investor a excited organization to that many his given retirement role we can employees, Continental many an website. Jack begin breadth also referencing Throughout participation, Continental. leader I Jack the the Doug agreed best really be him Officer and culture, the to is Executive future on the are to luck later are years as There a of you the to which capabilities for Vice on a our presentation, contribution strength Continental's fit have introduce him depth very in like call, new has I'll our we he outstanding Operating are foundation

regarding to in like takeaways five presentation. I'd highlight this Continental key Now,

committed we to capital and continuing are record S&P on we average. to ROCE, of which ROCE. expanding First, return return to capital delivered exceptional In competitive ourselves are we deliver XXXX, In industry XXX positioning above and flow with XXXX, another a XXX XX.X% cash and XX% to is year significantly free projected shareholders employed. the S&P deliver a

deliver optionality, are Our accretive highly our and company and competitive that expanding to and acquisitions both geologic makes diversity high-quality geographic inventory our continues what investors and commodity unique. our want, further

next discipline, capital as over to noted. flat project and our maintain annual we growth production five will We the generating have previously X% we years

X, are As clear. priorities value and can unique on our see you proposition slide

returns. delivering are We leading corporate

the XX% Our employed. Hub Henry in of our capital more on $X.XX S&P projected capital of is employed on approximately average $XX price and return double WTI XXXX, budgeted return at than

via are shareholders of capital increasing share to dividends return buybacks. We and

or are our quarterly $X.XX long have greater a share, term. We yield per X% to targeting XX% increased by dividend and

approximately our context, put billion program our to $X increased significant have We float. is repurchased of XX% $X billion $XXX To this $X.X to from billion, buyback million includes which in date.

earlier. debt We target with to one net year-end less be times to a are sheet than or balance strong further enhancing EBITDA our already by

alignment. shareholder unmatched have We

insiders Our top owners. is six inside our industry-leading, representing ownership with XX of

are and ESG aggressively performance. exceptional We continuously our improving

already focus methane reduction, intensity intensity key greenhouse our have gas for and we XXXX. approximately and areas in XX% of XXXX XX% gas an and to reduction accomplished methane over One reduction is in greenhouse

continue intensity, to so industry-leading and methane record We if a our reductions few to value We'll are shareholder across why to results greenhouse our in result perspective. gas legacy and compelling ESG capture X, record you from see more gas return exemplify our proposition discuss will With story is and maintaining minutes. in our a assets. XXXX results, we turn XXXX slide

First, and the strength quarter-over-quarter for free capital thanks record our record $X.XX four execution, generated year discipline cash and flow the our full billion. to of quarters a last we flow cash of operations free and

As able strength throughout capitalize to the crude on an commodity oil unhedged increasing producer, year. we were

teams Given able XXXX XXXX optionality, gas year we're have and to our the commodity competitive in witnessed our unique position areas. strategically us to gas operations fundamentally participate development we our shifting to this in prices Oklahoma, in by strong

XX.X% a on capital return employed. delivered we Second, post-tax

on In current Continental's third has As E&P through employed return energy from XXXX are fundamentals the capital X, XXX. strong, be the returns shown S&P where an no as in its time market-leading and gas supply of the a better on shareholders. XXXX and quarter and outperformed demand environment, peers investor peer that to Continental, deliver to rebalances, and we corporate believe there can producer US is oil slide

strong capital commodity approach and of employed reflects return XXXX projected capital disciplined increased Our prices. our

annualized an we our per We approximately X.X% of increased versus price returns. dividend million we as we in equates XXXX XXXX, Xth. February during $X.XX recently and This a the XXXX. to program yield competitive of which shares at also Since XXX% increased an share, quarterly by XX% dividend a our increase is our X.X shares broader XX we $XX.XX cash and to is million $X.XX have repurchased Third, market. with average started peers and of Fourth, at average price $XX. the repurchased

on Finally, we guidance, to discuss our meeting deliver beating by our will as shareholders commitment and continue to John later.

continued with XXXX XXXX was record with a our flow. That and $X.X capital as cash This cash For our flow, is a projected yield. management. free and flow expect we budget billion mentioned, of stronger our outlook, cost be discipline strong respect with cash is XX% free even to XXXX year free accomplished to

of are part of XXXX in and debt capital to excess flow dividends, resources. moment. of XX% will our discuss a operations As reduction, returns, cash targeting future John in returns CapEx plans share through well in from we commitment budget our shareholder

beneficial With Permian coupled River the investors perspective would continued Oklahoma, in our felt have the a of for it performance Basin, beyond Bakken and the Powder improvements the XXXX. with be and to addition we

slides the XXXX eight Referring and at on projecting cash strength significant on that employed for highlights providing financials XXXX key is we XX% return flows form cash in WTI. $XX.X shareholders found slide share to As and over flow eight, capital of from the a XX% we nine, cumulative to $XX flows dividends flow repurchases. portfolio. of Note, billion average approximately cumulative are WTI, are XX%. with our $XX strong yield and of available reduction, debt operations free our of of deliver net cash cash free multiyear At to the projection

billion, Our an cash S&P at at our free at XXX current flow cumulative was to XX% approximately flow was Even cash free yield. $X.X free competitive float $XX flow our $XX equating cash approximate WTI, WTI.

CapEx production rate. year-over-year Our relative projections annual a growth flat low single-digit based on compound delivering to are a XXXX,

company significant innovatively. standards ESG great we update, pride accordingly, we per high our have do flow this for and to our will targeting We taken are to dividend abundantly, over XX operating and with timeframe. continue so share respect and years, growth responsibly, and cash With

delivered to program, with dialogue, understanding. We diversity, our we deal expect and of and important our best-in-class about and that safety need. record foster record XXXX ESG respect sharing have great education once the look XX. a we expanded the again available we ESG we and already in providing of awareness you S spent and time support XXXX, We training, in forward effort strongly results. a equity In the be slide elevating healthy complete and gas our our in in underrepresented cultural addressing will focus narrative report mutual to of capture. Referencing that, societal inclusion is alongside second believe performance XXXX, performance quarter in In our

of in being leadership our impact, a energy social accumulated of XXXX and performer practices contributions, Hart community award efforts, in recipient by recognized Continental reducing All ESG top culture. environmental Energy innovations our has this as the for

program to address ways our and Board Committee, from continue ESG our most oversight gas and best, strong we ESG in greenhouse cost-effective through the ESG stewardship. has to Our look for

excellence returns and performance combined on a long-term apart Our premier operational ESG strong outlook, portfolio, return from with industry-leading a ownership, of asset capital strong insider set capital leadership, peers. low-cost employed, Continental to continues on our focus and

proven we shareholder consistently We significant years. because over value, the XX last lasting have it and we that deliver have done can

exceptional delivering program growing the given coupled we beyond, we the ownership With over will out growth returns we're now that, believe Continental are shareholder our and impactful corporate what in the confident looking and unique dividend continue that value buyback share structure. to our As expanding call I'll most -- into turn with philosophy, John. is market through XXXX

you, Thank Bill.

details will financial As XXXX and Bill key capital mentioned, of surrounding our some the budget I discuss plan.

we to we production. CapEx expense oil delivered natural across per the guidance exceeded Production I begin, Before our Boe, board. that production, on highlight I wanted in and guidance gas much XXXX, pretty our for

incredibly our proud of are outstanding these XXXX. delivering We in accomplishments for teams

we maintain returns, a proposition We message of our capital loss. shareholder estimated have message, returns $XXX centered net $X.X In after year operating $XX million corporate strong XXXX, financial our net cash a This with utilizing of are approximately at WTI. projecting sheet is another and on strength. value billion of balance cash taxes approximately increase strong to leading flow cash flow free free our deliver of

free market yield equates flow approximate current prices. XX% an Our cash cash projected flow free to at

We consecutive cash be of expect positive free seventh year to flow. our XXXX

on XXX,XXX of deliver basis. XXXX. X.XX to These oil per We are cubic X.XX projected gas day barrels and two-stream billion volumes billion a feet to XXX,XXX are of day to per in

roughly and We in cost, capital of for excluding two-stream rate continued the WTI, our at program newly $X.X Franco acquired between on XX% estimate billion assets. Permian mineral the assets and $XX XX% our are a is Nevada's delta for currently Permian With volumetric reinvestment represents on focus three-stream reiterates CapEx which three-stream our share XXXX, this assessing higher accounting of discipline.

CapEx on River legacy is CapEx XX% up we Slide our growth inflation. excluding and to minimal Powder our the expansions only Permian, due year-over-year As to note X, and recent

River are These gathering the acquisitions the mineral by includes driven in of the leader expenses. portion operating over in water capital to increase capital Franco-Nevada return of due Permian majority continue plan $XX million, billion $X.X capital remaining a full We development up cash to facilities, Continental non-D&C spending recently about to planned completion cash capital conjunction generation. for flow expenditures. basins fund Powder be million. capital other activities workovers build-out employed our in solid the for be driving allocated of with made will to and XX% approximately Continental's drilling or and XXXX carried spending We systems facilitate to planned and low acquired assets, approximately River and gas Remaining capital to or accommodate last with and largely flows. and returns place, structure This mineral and to year-over-year, amounts will long-term million the of and fund Powder XX% year on in allocate relationship also the $XX cash efficiencies the and Franco-Nevada the to added and expect with $XXX will non-D&C Permian leasehold,

$XXX by approximately cash this in we significant net flow reference is Thanks increase flow on $XXX projecting $X a substantial, outlook, million every WTI pre-tax sustainable year. our increase a free point, expected As to basis. are reduction cash million to debt to

XXXX billion. on debt $X.X XX, was total Our December

XXXX. target have to We debt-to-EBITDA be during below a Xx

completion XX. at $X.X peaked billion upon transaction debt of Permian approximately and down as the Our January was of to $X.X billion,

February the for with and expect from generate as free internally we trending are net debt River during cash cash down and We to flow to announced significant to continue fund acquisition Powder flow. projected recently generated March Chesapeake

We are achieve sometime commodity times one this times to we target well on track prices, one would today's expect debt mid-XXXX. At goal. towards our

to our will addition our newly above teams XXXX in to and to LOE activity, pivoting leadership, our multiyear currently with This Permian which see efficiencies track in. guidance Basins, year baked low single the costs Powder oil not operating costs. upside going River will these our reflects our assets our do cost optimize per XXXX believe we industry capture further level. we record Consistent in which our and BOE modestly long have towards operating projections able and further be of While acquired we greater our forward. is believe

year-end through in for XXXX We continue to layer gas XXXX. hedges natural

an in with average swaps We have of combination and average swap call summarized utilized $X.XX. $X.XX, and positions put of are our XX-K. of average $X.XX These a of collars an an

fundamentals of that, turn as price for supply believe We to over participation are market are largely due I'll Jack. With demand we all, call now unhedged to rebalancing. and supportive the

cash technical I Thank contains of this, operational some best skills been depth aspect, want morning, the in capital in generation, all reservoir good and is I Continental leadership, efficiencies, is When call. the that years our I strongest flow appreciate you, earnings, including John, you our employees, by of this that every inventory mean the saying of expertise, the the of everyone. rock underpinned our to it industry. say XX of by quality my and joining from I with has this begin company.

locations our Basin barrels resource potential over robust undeveloped our inventory. of portfolio, has already to Our over oil-weighted our X.X net and recent diversity expansion into adding River and Powder net geographic increased and X,XXX billion of geologic the Permian

our capital on XX% to This it increasing stands barrel. average our cost inventory today, at XX-year the have XX averaging is at liquids if existing two-stream than supply approximately which of and an efficiencies This lower and the cost the X% year is oil-weighted, were report our years demonstrates production of $X inventory. As period performance also the grow $XX for per of we total a basis. years our three-stream three can over operating supply basis achieved teams ago, our next and average per XX% a approximately on of inventory

XX% fully excellent our existing our we acreage. with For to existing required inventory inventory existing grow we perspective, And is test will potential this projection. as expect XX-year to achieve to – always, our other underlying of as reservoirs approximately continue

us and portfolio acreage second the owner River XX% Over more superior is Basin. the the we've and leaseholder this Basin which development to the Permian XXX,XXX importantly, gives Continental XXX,XXX of an Powder number Powder extremely by This enables leasehold capital Continental beneficial the operated now in contiguous added and largest predominantly the last geologically interest contiguous to flexibility assets. as these in acreage XX% also XX% working orderly optimize for development Approximately XXX,XXX year, Basin by the in in approximately maximize River the geographically average and the acres with with it efficiencies. Basin, is assets held in Continental is net nature of Permian. the of County. The and is this production, our in one River leasehold Converse of Powder of the these

In be fact the to in performance in wells the XXXX, out performance key both gas. assets that Now, that the the I'd remains and put and compete assets industry December. our operations that best optionality our oil give XXX some sustainable online driving can Bakken, in the like the is cash to generation. you takeaway our underscore again that, our of strong provide and characterized by new and flow paid The are once well best with highlights quality

average cubic Oklahoma, drilling pushed is We some natural for Bakken be first in equally above recently gas which in the rate windows, billion In impressive guest-focused, XX company gas and million of first a months. cubic produced online in cubic window, of in put strong. Meramec to per expected a impressive XX time flow feet completed bcf one day. completion oil initial gas fee on flowed gas In was XX history. per to company's was that the activity a out an and XX both annual Much XX the wells and feet day at in days average few well is gas continues production program are million of at in XX paid brought a of an day the and XXXX wells XXXX gas we XXXX our its the This highlights. X.X here day Our

of that a XX We included four also units of a recently total wells. development finished

per reservoir, public XX% gas these producer Oklahoma's X,XXX from XXX,XXX produced BOE the per as million oil. average recorded a flowed of well well cubic horizontal and at days records, ranks has completed oil and XX of well, day these XXX was Woodford During in feet per oil we that XX at still well per window, most a combined in this XX X,XXX day. on This record day gas feet prolific company rate the the oil and produce of history. XX-day of rate Sycamore production average days, of cleaning million of the In to wells continues Meramec barrels number first one the an oil or initial equivalent up. oil cubic flowed its wells barrels of approximately Based first are and

in flowed on last outstanding, a acres with XX-day X,XXX we impressive adding day, best in the Based position BOE results, have These XX,XXX We compete had months that the continued our of approximately and to XX% expand and per the of rate dominant initial producer was Oklahoma, at of also Woodford Oklahoma XX oil. rate an average are in heart they the over industry. net assets. our these results

Our couldn't Wyoming our to the teams job better, River new employees our be assets. expansion going have help our done the and of a into Powder assimilating in any great new Basin thanks

right at an turned three targeted wells BOE in two was four we Frontier, X,XXX the day, of in reservoirs. the rate in XX-day These wells wells oil. Shannon planned, production the As reservoirs, with are Niobrara initial XX XX in in per different XXXX, expectations. including These XX% average to XX and the and and line results four flowed

a great well-established of operations to in Permian Our the new employees start office average help We're working was Texas. and our interest XX%. their wells Monahans, in in with off and also the these

currently production managing doing in per acquisition rigs DUCs a be the that running BOE we in two DUCs were job on highlighted included are we have with day to the these November. that These stimulated Permian month. XX been and by our Our end associated previously and should of assets, and have three-stream great XX production turned XX,XXX the teams

two A Bone rigs Wolfcamp Our full are Springs, proven development on reservoirs. unit and B focused of the

side, will continue approximately cost track XXXX efficiency and down expect team's this average our per gains much cost on given in structural of X% In our year-over-year. proven to gains the we budget, And drive record, modest structural added XXXX offset through efficiency we by foot technology. On cost our operating inflation. work to average

retiring last announced As month, I'll be spring. this later

we to want before Q&A, for So investors a your to to also I move confidence good in new Continental. long-time hood. to want investors all look under the thank our take encourage of I

world. the also possible. the As driven delivering They We culture has everything drives built they They are what level. has the the given proud energy DNA, six and looking are years, and They way. Everyone on the the independence can't they our They part to shareholders, special. energy a best. renaissance great The ownership. to It's to in slide in an shows, improve we it's that every over been the they of most five supply ways and to trust. energy and know a explorationist, and the so our the It's world grow the spirit the is you in is -- and it People Continental of play the for pride last difference the be call in great take returns. work looking returns years. this have coming know numbers are poverty do Continental performance at that in it projected competitive significantly company to US responsible improve of is in needs. aligned returns company that are culture led Everyone the that here what proud environmentally with do. making company the drives stock. But get company. energy They to extremely eliminate great the in at of part makes has world security with just they be and

them. part thank a financial I with of that me, in. work fortunate sustainable to will performance been I of and the a really We support the I've team, potential to drive want to to them of forward the Doug their to or know our entire a couple to I with them, success for can you over has deliver These here this and S&P together been know look It's smooth work wonderful you and with he could worked all without As investor, running, ground introducing with and is field group people years. City be the him for and but both And comforted Doug working forward it offices. not Doug to I an that do Oklahoma years to with are want head-to-head to weeks, invest competes enjoy going investor outstanding for this them I journey in a and hit I the people. have provide know. transition. just and look working come. to

the Q&A we're I'll and it the turn call, operator. with begin over to So ready section of to that, our

Thank you.

begin [Operator Our now first Markets. go will ahead. Scott will Please Instructions] Capital session. come RBC Hanold We with question question-and-answer the from

curious. And place PRB a give that as that you to be did pretty with way both to down, a there good bit take too? you could, guidance GPT needs that it work and PRB. at infrastructure this part there. this in you Can certainly oil I cuts. little wrapped longer-dated little needed a And a Thanks. assets, there's color of to Is that mention show up and on discussion, build rates some about And is XXXX? the are the on Thanks the higher kind look I areas? has to I'm does all. move Permian like was year. some obviously talk us the a of in to know going XXXX, Taking of infrastructure your do assuming if

Hamm? Harold

Yes.

you're things asking of couple a there. So

of it. into getting in You're side facility and rates the the

comments, think there go facilities, And in about you the you'll that's something see for million we as so some and saw, in into Jack's $XXX areas had basins. I that new new and of you and

a I what to and of And we think clear as is, There that little we're want gas facility a of We're the that water facilities a to the bit may lot on you get sure four from our will, both in new unique basins. into and understand, if start-up there lot side. have make companies facilities. on is build-out, that that. be have all we you areas. the you're water actually water a of costs of trying We

So as we continue developing And as go the gas there is and into does we're these areas, then takeaway well, yes, so the on. for those. infrastructure it

you -- the cost about expect We is now like XXXX, that. XX%, -- if look numbers something the in at that's overall

XXXX, at down you that XX% numbers. If historically, was to around XX% look

you're definitely the as picking little there. whether the a we're were you about bit differentials And a that want of then new Aaron, result So I assets an they of talk don't of know talking about seeing up. uptick some to

Chang. Aaron Scott, Sure.

was was the of some to a from standpoint come competitive from and standpoint. our that a ability largely benefits into overbuilt coming the negotiate rates basin One and very gathering processing in

the seen additional acreage I'm contracts, rates As secured the we've GP&T we've acquired additional in competitive basin. confident some and most of

just get of just build-out a infrastructure we this here we these exactly Scott, to do what assets. like add Yeah. is when I'll hold

does It it is and here capital like. Bakken, you've Oklahoma costs of done contiguous going where of we're benefits development acreage, do our the seen have And extremely what line our clear of it these to what looks positions because forward, places. in our nature this. a dominant the of is sight have what just able And of with really efficiencies We to we've in down just drive we the beginning starting positions. really as

bit at say, stick impressive. a These color. basins area you And, others And obviously, good doing a, that That's because a have an But you just you tier And weren't and other there lot on it I recent been or PRB I it. some wells to And look on I interesting a sauce, attempting the at second you to can that are it's are do that is there's, us is that a think pretty more drilled or of have it. what of there. through you what could basin able were differently? what looked to perception players out how a looking at are take little give guess, market the successfully? differently, had Great. if maybe do your secret to sense

can't play, those improve. if mean, that But and on to time Well, others, have what the to in operational the just -- well. geologic do, we with stems. we're we're I don't to applying expertise you the speak assessment assets, you but a I do reservoir every and And doing to what in I there, is to instance, it. we you go area. the go lot detailed we our what to in me focus doing just we're harvest and start And is And things. at and for -- continue have executive just what going we're teams the got There's you've concentrate the always It's very and do, going to deliver. there. our to it look -- whole of impress if and you've The look results -- our we Oklahoma, right I how things continued team mean you on back are reservoirs can every really you And they we do do and are them. you at right, we got do. have just go you're

Bakken, in have just costs continually. like And down you the and -- so it. name gone And the

at. doing we we're where what that's doing are We're what So differently? And we do. always

Wells ahead. Please Our Fargo. Kumar Nitin next go come from question with will

a make committed retirement. congratulations, this? that you're Thanks this How morning. or what with mid, conditions not for low specific to would are growth digits. X% I any my get remiss are multiyear is, you scenario questions, say levels would road Is this deviate be single at you so the good taking company? just a this or Hi, from activity, And for really, start map? plan macroeconomic to for trying calling I to there want or flat on I to and of Jack, the outlook, guess, I'm

past, that for think Nitin, there. to the historically, what market. and I to capacity any look the all the the war reason what bit of I seeing a happening see that's out There's up we're if you're anybody made in respect Yeah, at producing and don't a what's you case, understand be is with oversupplied to. to an that this been And we is in trying there that's we've it's commodity, excess has production know been that price is comments able something that Russia move still the it It's you in as what's good for reduction forth driven for good right maybe far a look see us bit. gas, real we're that moving up oil X% sometimes and That's back basis. from the And BOE But But as X% that and we in a commodity premium comfortable to not there continuously, range. versus world. approach. not we'll at industry. the to little

the long-term. us be So at appropriate that's looking for range probably to

was feel have how in are second cash Is – that you obviously, question or you is ask program? guess to buyback shares excess where opportunistic cheap, is stock or a like level back there you buyback bought stock about I deploy? or shares And $XX the when to is wanted more In was price a your you XXXX, – the see I this around XXXX. you still do How you it And Awesome. $XX. so the buyback. at

over clearly, funds. investors discretion opportunity. look a from that that to And and on and to wonder that's that an back on to got Board, that we the seen out his use it's figure And is a up pick the and stock, on go either of share the through. that's apply you've math the those do for us kind and what's something that's a every go of trying to delegated way that's we best going about do management from that opportunities we this day, analysis to actually And authorized go what we the if out got on there. with we benefit buying what's we've judgment do to and saying, chance well years do the going focus shares. or what go lease But hey, or buyback is the the today, We've drill

Bank Our next go Please ahead. Leggate from of come will America. with question Doug

you Well, when I in I thank walk retirement comes to before a you you, it some very It's the see all door everyone, best and you your pleasure. hope Jack. wish been out point. at

Thanks.

thinking peers the all So about ask but they that and simple things have my guys, this. about I curves, and that, different I to way the when different go look, different listening plays all type a of very into all love

to on us and free You're to cash about the ask flow year basis. what matters. want or a outputs, five-year outputs, giving because me full cumulative outlook, the you that's the the outlook I The

ask to want I of So a couple around that. questions

as number John I assuming a of are granular cash the a $XX your or First newer Because only the little for $X.X transitory sustaining billion, $X.X just What breakeven. on can is that understand Hart, you is some taxes? build one billion. acquisitions? is guess, kind the actually whether And DMC you I number out be you the

$X.X So of the the cash veracity billion. tax and

Okay.

The billion we point this we to the federal taxes, $XX cash the utilize at in expect NOL end prices, on kind $XX. XXXX. breakeven that $XX is of have to fully $X.X that At year. in So of would

some to above You to cash taxes. utilize that it starting up generate and that you're

would the of $XXX pay range, taxes to we expect at forward. $XX million roughly So go we as cash

So the we've assumed $XX occurs in scenario. that this year

tax factored strip that state. cash in and rate the forward, see XX-K, effective Assuming you going for the we've in at federal so prices taxes

cash So that as CapEx, level, is that growth we're roughly $X.X Bill we assumed to type said, going that that's to targeting baked we've into forward number forward. as the X% that, that In regards million in five numbers move flow our X% free years.

You'll the baked in at flat in we note slide on the level. deck, CapEx, that got that so we've indicated

yes, If you're a us gives there. us can of of that you bit that does that a bit numbers from as the are give growth asking, growth, in tell

growth a capital, we off pull We're We're cash targeting could of back maintenance to to shareholders. down about clearly, that targeting asking region. flow, not it and or that bit If you're excessive return anything a zero.

and more We that's mean it's note cash combined. debt driver. that value of I a $XX-plus pretty think free flow our think float than to total I it's significant. important huge that’s

understand I sustainable it looking of cash that, growth, for be John. importantly, but for the going little free an we're business appreciate But more Yes, on power a the there's a I we're to bit looking escrow on of basis. basis.

So cash my perennially free second flow. my is the rate question, to and Jack going question run guys, sustainability of you know I hit because been this with the it's

but the X%, growth about years inventory. to of XX% talked XX up says that You've

north years we depth then inventory is are believe that XX this at point? So to your of

all to that's have add other I Doug, exploratory ideas works, inventory was the will and in things be we significantly Well, higher. in the if -- the

underneath pays evaluating very multi-pay, at looking with pretty And what a trying we what portfolio, have these. it's to do inventory be think and darn diligently an outstanding And opportunities I'd about I growth as, truly other and We're see our this as at -- I Our to teams clear I these expect assets impressive. think guess underneath we assets. point. continue have for all can it's are And stacked it line-of-sight to I it's grow. just say,

us years If you what done we've an in in look that and XX, and out inventory nothing for I our mean that's front keep continue go growth we can to plus, time, so XX back of do. sustain but

following to I do you've believer us so that ought time, think that. a And Doug, we you been a and be long

from Truist Neal will ahead. question go Please with come next Our Securities. Dingmann

My question thanks Jack, Good just a really bit say, return. morning Doug, first all, for on And everything. let's little welcome. shareholder more

almost payout to and are looks that guys You substantial have growing it and like in X%, -- up that's stepped place. already

as generate being or buybacks. will to programs, start just you that down the falls certain this even or I'm certain even that would step and on you'll step think. setting you cash quick one gets Like optimistic the aside on that talked earlier things level, wondering, the levels, point, these little have cause for So wondering, potential kind of X some get if but that you, up you the -- there if just see? there would But year, I about reaches other leverage are as free Would think – you you certain at to if cash a stock I the it maybe I'm bit once times maybe up leverage to this I M&A? flow, buybacks

Yes.

I dividends, We're return shareholders that cash think you're shareholders asking comes about. comes whether and were gets to the on comments we the to just the buybacks. of earlier It focused through to the right that the through back question. return making the

to able of lot we've some prices. able asset that point X% potential We the tool you're and targets look is at that the of debt on right, that we're seeing we've with subscribe commodity talked toolkit in, assets some right paying sense because as price. we're another greater time, to to as down what that that of are, space. people comment of in dividend the use. also And the see competitive net And that debt, going about does decreasing going in Increasing what in basis, the one. current able be are or the you're At that you'll the those. on pick come acquisitions some obtain Made the well. a were to about the we targeting been to can were the been buybacks Jack a options and at clearly we to for on to we be what going That's real up talked rapidly

analyses. We doing diligent have a to approach deliberate, very very very,

of And century. we if getting was close but Basin so, got the seen do the in just Permian the And the the first do something time we it. wasn't you look context, Yes, M&A? at Basin, do there, Permian doing we it looking right. deal us started But when you've In I'll will. M&A, you to put into at the turn

deliberate. years before to So made right the of looking for for actually some looked thing us at led that's Powder. the we're opportunity, in It Same what time and quite entry. pretty Permian. XX that an took us We've the we

on not we but consider an clearly the focused if to anything be So But things like the asset add. do, some don't to to you, know enhance do go to to there's thing going will past, it's whether done John, And right a M&A. you shareholders. agree then we're capacity to we we've with I return that. the anxious have in type

during X.X%, of quarter, the that dividend, think debt at last year, end look years, I two we've the over growing We've aggressively our time. -- shares first our first around implemented the And that. sequentially EBITDA particularly if debt to been you Yes, be should been since X.X%. the we buying

total that abilities we're We've great absolute balance want our balancing generating a to we and level move because commodity of get down. because those, prices from that continually assets. Now on significant lower we're got basis, of cash down the up flow to

So I think we're well positioned.

can, large a term. at you're morning this one other Yes. go I debt know have want you friendly us industries, seen you if targeting would think there the some I that money to because is do the be from Federal that's and and focused about, target not lending add I comments industry may thing so that probably being and why potentially industry I net to of this Reserve, the of down, seeing very getting toward on

position numbers. a in And so, we is a to point, price but strong you $XX price, good, there, to of don't want kind manage mid-cycle oil be John's to

if even Bill, one to M&A more, Harold if I Maybe could. for love you Harold, the chime, Bill, see. I'd and potential. mentioned could

I'd might today, have to you I'd active. actually said, go. guys quite our certainly thoughts quick given numbers, You you on these been think some you hear have prices on you could And Harold's they quite where if maybe guys, just I the as to payback love deals. or love M&A, your could your be where properties. based see on of some done further Harold, hear, on nice even M&A thought, on recent

love just you're think you payback, forward. how and the about and think about this buying how So prices to where I hear today things you going these

but nobody we first natural of prices, this do and in predict at oil commodity very see can time gas. Well, those, strong both all, fundamentals

prices the So out that's at a fundamentals there. pretty for to good basic look basis

if working. bolt-on, you have our been of the part for acquisitions all, half most will, we've think, I first been

first So thing. that's the

The go what And do. down, been operate a know Jack the as has and is way can in lower every the and Timing ago. in thing in just has cost sort that in, of and we operated done we've what that's we that's get opportunistic. price, second we've minute mentioned good and basin we we historically

deal if out see we go there, those right as time at the things the So we certainly all forward. we're looking

strategic based had we're Yes. also -- want from on standpoint and And I zero to We it said, we our And know we notice go instance, what executed and the as do. for add acres. studied if want basically, there we I'd position and in on that, our we're these technical XXX,XXX Neal, mean Bill where us. for just And the prepared acreage entries. the timing to build well is we've of Powder, commodity a you in to price run-up, cost

really of have And we I our timing is all opportunities us, aspect a it in of as PDP, guess to timing these so as well. say. we've basically in got there's the opportunities, for cost front said, as we as could And you sustaining feel so Harold sitting well

from will Stifel. go Whitfield with come Please question ahead. next Derrick Our

and Jack, all your on to morning Good retirement. congrats you,

you. Thank

I to loaded? the for suspect is of activity weighted XXXX. With usual. But could relatively regard XXXX level balance is wanted your cadence ask Bakken guidance, the if more speak general to half you as second of of profile completions I and the to shape the production

six probably be a that's about you'll than year, little Jack in of I'll the cadence going then we so month -- details but a with I'll six. and bit rigs last with -- -- entered the we'll we're the let on the Bakken, Bakken, start in But Well, and into the on rigs XXXX rig lot a half of of next seeing year, average the nine on And around full us a for now it. more on, kind and basis.

was net as little And you're had that year. of year, a and where a quarters large as many. Yes. we to year. on not lumpy corporately, pretty on had a wells come wells throughout the It it's two see then far just Last basis, distributed we number evenly so going this

in drill a as is to are migrating seeing now a even opposed and as towards at we you looking oil-weighted so see, basic we cadence also, we're oil more and the drill see actually completing going as start what the to inventory, what queue. having portfolio, You'll we guys? this up DUCs And more -- more

Going about XX-ish.

about XX%. Yes,

A little higher, maybe.

Yes.

more a So, going our reflection even increasing, And it's I we're second the mean blending migrating just to you also, see basically towards in. and half year. Oklahoma, Obviously, us inventory the of oil assets. in new be in then of oil-weighted the

inventory to will about start the to that but six or start takes hitting that for months hitting see XXXX, books, hitting more growth gas-dominated so in it Now, production and we'll oil-weighted in in perspective the continue XXXX Oklahoma.

more mid-Xs That's is of of Wells, in little a the quarter, I the completion activity. agree. with fairly a the level CapEx the third through It's It's third the kind of as about $XXX year more. Yes, throughout pretty consistent of are Jack quarter. exception said, in million the program year. having a a the with variances Bakken Creek more and that some followed. But just consistent on some the pretty on coming it's of areas normal online with quarter fourth and balanced there. our type timing some coming bit other with easily Long would

the until we'll in a have bringing fourth we the Long there in bringing quarter fourth Yes, wells in Creek don't XXXX. and the the we're our XX that's of point, quarter good John. XX unit Bakken, In first XX -- and be on wells on any quarter,

in from And load, said little in completed oil And would So if could we production a quarter Bakken fourth and first the in of you're coming year. next midyear. those see one reasons wells some slug the going quarter be that's the a it to big of be actually, stronger. a people have of big wells

is and be line it's and and bottom those, so volumes And there, and coming. inventory the timing are they'll all the just

the first So growing production you'll in quarter, up second going here, quarter. see

production Second relatively to third, consistent.

Jack wells up a coming fourth of. to the stepping -- little more speaking with Third

as grows that you. Thank well. So oil rate

the assets color. Terrific acquired over right. to shifting And maybe then All in the Permian.

transaction, for And on opportunity side? on on offer cost closed process capital color of areas you've could progress? on seeing operating you or your that improvement the the you're some Now integration any or

for they're we're doing. and got up well. together, over we're there our City And have operations and the really are support the at, Oklahoma and everywhere can. but we pleased -- going we really I mean, to here here optimizing there, our, with on -- all and our It's new down we've employees through, good basically we're down what standards growing obviously we're where getting operations a in have basically, we're going working just teams handle time

really do of something see those, forward there ideas, The there improvement, performance. next to there, so us I we're teams look that that great room And have we down there's think implementing well believe and for to. in lots it's we mind to going think you'll are And be overall -- be going I for a the going here. to and I improvement nice think it's year, in some

M&A, one is this And Yeah. corporate-type asset this compared to M&A.

doing it's in is the The saying. as to and Jack able integrate it up, people number assets folks, asset you're group because But to XX into pick so really are to it's on we've it's systems those easy of an great our organization. XX basis. as So of people, not complex been of type

lease efforts. for integration level, So, actually asset all focus level of the our is at at the the

that the quicker. talking a Jack's that a synergies lot about. go it already makes lot we're So faster, seeing And

parts other Powder to country the to Some Permian ideas starting pay dividends from we're that bringing of and already. are

Scott Please from ahead. with Gruber come will Citigroup. go question next Our

Yes, good morning.

But So more Long coming assume you Permian on time. mentioned Creek most is Bakken. Powder initially, a oily driving of the in still I the have would your Long getting that still you lot mix and of wells over And is that. Creek,

growth the basis, is completion more So Creek around contributing Long a or on albeit the a through build it Bakken is maintenance some schedule? multiyear XXXX, lumpy

we is impressive the combined. it's we of out miles still Long of combined Creek getting you XX% is of Long what Yeah. of that new there the years what's remaining add, it this lion's there. the plus this plan. four-year couple mean, there. per Scott, oil. we unit, more called have BOE example of average is did Jack. I south capital I day, of XX rate XX-day an to at takes Creek contributing. wells great the is Yeah. each how It want these float say and RGB It's in But performing, a -- definitely just some initial unit when share And really XX recently the like was wells, XX about and These And wells completed and in restem a looked of XX,XXX oil

what footprint And the in so – not we a here, Bakken a demonstrate this sustainable I with results to and reliable going that inventory to have and again across to and area. we seeing just Creek broad out deliver And Long we develop. able like more have one-off point We're is that just pleased so continues this really very be to once lots there. that broad a we're up are

did so, question? And answer I your

You did.

can Xs from into moves last guidance LOE, Xs LOE You the from the the build-out? is And your much maybe did. low that maintenance How more essentially high that is you mix of down 'XX. that Is basin figure? 'XX And through much Or to year, both the is then turning forecast flat infrastructure activity? work the how inflation? influencing that

in River in They Powder glad is historically. the Great really have on you some know that. a which assets, think Permian costs LOE well. the The you question. We earlier to I lifting color those basin of its is mix. added stage just higher I'm give development.

X, go you as years, not corporate-wide. an and we the X rate. had or back density $X Continental in Bakken, greater gain down drove that our few to LOE $X it's a if scale So we But ago, many years rate

down rate. added Oklahoma into We the we our So drove mix.

the LOE moving type our assumed to the the we're levels as down we forward. drive go in Permian operations River, we've we as of So and in forward as of development expect Powder the to back

the point So as basin to that I'll mix that this due a if bit contributing oil it's and look year just is to at you improved, mix. up differential, the it's out well. little basin

you're my think, it's good to expectation a significant perspective, margin neutral a not teams conservative, do the in we we see improvement $X That that's We still expect are at fairly kept to just really helps. LOE been that. forward. really as year-over-year, but That's coming on potential I forward multiyear, that continued that. guiding, flat. out but on strong go LOE, We're really to operating. expectation And $X.XX from modeling And improvement in multiyear going think, I rate. upside We've is. what outlook. My it is So

will from Jayaram come Please Arun next with JPMorgan Our question ahead. Chase. go

morning. Yeah, good

maybe your of we within kind of check, here? role the on strategy a this like to do Permian you'd you over or the how wanted something Just think portfolio. the time? cash And about think in A&D thoughts Permian grow engine the the from Should as to of

time. who we've actually are. quite it And about been at some Permian consider we we a as Well, part key of the looking before, -- talked for we've there

that the We the are we're positioned Permian, working to out complementary this there. things and acreage in on a is

some it of quite really is company be strong big a piece asset, would So for a time. this the

do ideas Yes. the got Arun, STACK stand, have when consider to in acres, I mean some and acres exploratory this we is net with now, Jack. assets lot reservoirs here. other we've out especially a you -- With XXX,XXX right to there the

we're a going as oily oil in four-year into around next going -- XX% think all-in-all, XXXX. forward, period. of portion we see it's the and I to we the here not a more of dare, reasons as So what, by the profile, one growth getting We're what, it over our significant go it's being next

more Powder take and going part program to our helps bigger basically they're oilier. so, a obviously you'll not on just of and Permian -- continue the time see they're to going be us to goes get here And basically -- as take

there I line then item or on rose for XQ. thoughts give question some and transport John. Can about some one had million for XXXX? you just $XX costs And Great. housekeeping in sequentially us that your John, GP&T color

-- was DAPL that that capacity incremental late of that, primary that on some Aaron, they? was driver That's online. came is a weren't August,

QX of Yes, XXXX.

from a worth of seeing just utilization of quarter's you're capacity the Bakken. expansion So full that

quarterly? And that's for XXXX good

Yes.

lot, guys. a Thanks

to you. to You’re talk welcome. Good

come Jeanine with Our Wai ahead. next Please will question Barclays. from go

Thanks for our questions. Hi. taking

Absolutely.

your we on forward retirement, Congratulations working look together. to and

you. Thank

shareholder maybe return Our of following questions first just Nitin and Neal. the question, on some from up

does XX% can paydown debt envision revolver split beyond On stack push something and for you the that is maturity debt year, buybacks? to buybacks look -- does premiums XX%? consider you get stack, make-hold guess, again you beyond about target the then XX% the over the at and that do premium, the more XXXX? when your how this that talk And towards between got I we the you've those you'd And that extending

with position to positioned north those cash be at in take flow flow cash -- we're it's of free a Well, good all advantage market. the today's price, $X in commodity of to billion of well

this think quickly we're We're going going doing to here. of be we're going on company. I a So of very simultaneous. We've lot a but get below cash Xx got that. large lot debt-to-EBITDA we're flow, a to do to And

competitive. year. dividend since It's reinstituting longer towards seen, As been very we've We've a quarterly strong, a it signal increasing last our you've term. given

split the opportunistic to the and those as certainly got maturities optionality, opportunities. in a between as XXXX going of keep lot and debt as out we've this far take XXXX. little bit we reduction year, balance reduction As debt we've that a But by some buybacks, We'll we've of between got and see well. in and got buybacks optionality we're

push something XX% to you'd And XXXX is the onwards? maybe forward

that going look prices Clearly, there, ranges be think you're of capability generating the in area. the if flow I at kind commodity of you cash seeing to out

well why context. free flow to give that the we you cash as on gave the generation multi-year That's indication

clarifying that. for you Thank great. Okay,

following on Our second oil production, on Scott’s. maybe XXXX is up question

with the to on legacy quarterly guide or discuss we're by trend to lot our assets forecast, CapEx and the how going meaningfully than production by either better with not you quite do breakout commentary, caught a some will and your exit? exit has came sure nice the Creek with but for oil stuff that I provided all acquisitions. that. You I'm in guessing And all apples-to-oranges-type area know Long there's I the can Bakken year-over-year

what's year closing So the for you. next are for Thank oil the I you in can assets, the think assumed guidance just Chesapeake month? clarify which late

So the into of now terms production. our guidance Chesapeake assets are not baked in

to expect an River we CapEx, -- and It don't Powder got to on the a rigs a have as rigs. expect have impact in of level. with operating it terms In in that we and we're benefit, CapEx. PDP the We'll forward. go of reallocate production We've remain two will little bit obviously,

up transaction. looking Growth, quarter. referred after we'll production that closing kind on really overall look. earlier that on we of was at first So true second to What to an

Second to third, a flatter. bit little

stepping to Third up. fourth,

earlier Long -- what by referenced wells on third Jack it's to I Creek. really the roughly late quarter, is driven Creek The early fourth Long third quarter. And XX in on coming fourth think

with see quarter that, more third and to on. in CapEx up little the -- you completions activity bring related a So those with to syncing

hopefully, cadence. gives some Obviously, is oil-rich you So basin. Creek a that very Long Bakken. that's Obviously,

up with well. that as So oil the clearly, you're seeing step

So...

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

much be for you, a here. Thank respectful Please hour I the the IR day. us to joining great and address want today, very have minutes Matt. time. of further Thank Great. you questions past everyone's five team. to Certainly, We're

everyone Thanks,

Thank you.

now today’s presentation. The attending you has conference Thank for concluded.

disconnect. now may You