Continental Resources Inc (CLR) 5 May 222022 Q1 Earnings call transcript

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

First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. to President conference of like Rory over now Vice Sabino, Investor would turn call the to I Relations. Please go ahead, sir.

very us. earnings Great. you you much. everyone, morning, Thank and for joining Welcome call. today’s to Good thank

We Operating Continental’s Officer; and Berry, from President Executive and today’s Vice will Lawler, Chief Chief call start Doug remarks Bill with and Officer Executive President.

statements available call President team, Please SEC filings Financial company’s Officer Additional contain risks. Chief for of Planning that members assumptions, Hart, Strategic these of address Today’s materially forward-looking the including and results our John those for will and forward-looking information statements guidance. statements. additional be senior contained in to will may Executive Vice Q&A. from executive projections, refer and differ Actual concerning

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

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

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

and morning, Good Continental’s for you earnings call. Rory. Thanks, first quarter joining XXXX thank

in To presentation And year for the proposition. come. that some determinant full driven reliable and significant updates. to performance our I society, including on compelling then We recognize our to Continental, returns delighted our to take and with on activity and operating investment opportunity to by like foundational results. And quality ability and to recent natural X, driving this conversation. our to insights gas produce responsible Continental premier and mankind our and on Doug today’s value we life quarter we earnings oil He guidance to Doug consumer financially outstanding the capital to I’ll want him turn are, first comments decades and disciplined for our on a your of continue Slides acquisitions believe I’d benefits At the ESG already exceptional the our with call are company opportunity. our providing value be start a X who of will outlined opportunity describe unique results for our contributions the will X. you assets, proposition shareholders. updates and in team. manner corporate we XXXX to made to value access attention proud hydrocarbons to have which that based efficient operations, welcome an and regarding share planet, have I’m many we disciplined affordable financially of provide asset investment and Slide and investment to begin, has is the

on return want balance sheet focus While a number key of the covered comments, on components throughout our return are strength. – capital macro of to tenants capital of I the shareholders and

have may by double planning. metrics our you S&P seen rating reflecting earlier credit BB+ has our As our sustainable and this BBB- from issue upgraded supported financial strong to prudent level week,

credit rating major that With across competitive on highly for capital against employed return XXXX, is capital projected on a investment and We on peers agencies. basis provides employed three XXX. thesis are year S&P a investment approximately rated grade Continental now distinct an all returns with XX% industry full

but cash XXXX, employed. inventory exceptional driving is strong financial deep has X, Slide this enabling on the and not return a across Continental many shown rich years. case on As only in flows capital performance

we quarter delivered outstanding X, you first on XXXX see results. Slide As

midpoint sets With performance. operating XXXX current approximately $XXX both results. flow strong free million, flow cash strongly cash yield to is and EBITDAX strong billion mid-year increase XXXX commodity first guidance in was $X.X year-end price reflecting and goal $X.X $X and estimates we operational $XX $X debt balance to supportive today’s at to billion of than times market free quarter Our less key than XX% of cap, approximately projected billion to the stage free having year expected XXXX. net are by This approaching realizations gas. for our by prices less $X.XX XXXX cash of one full billion of exceeded less and the consensus This net is that net be EBITDAX mid-cycle debt flow our our another output driven by at enhancing and debt billion one than oil sheet our with based by debt net $X.XX

shareholder This includes on per few and in $X.XX we exceptional quarterly focus XX% announced increase quarters a five Our our days row share. financial increasing of underlying $X.XX, ago the returns have dividend driven growth. capacity from dividend a

Our now $XXX dividend paying million is a year the of out about shareholders.

we producer allowing for capabilities to in we and the we from of that being this our and gas, geographic the world natural distinct our four to added value our core there basins, is free alone, This the This Anadarko, peers Continental’s the quality competitive produce high the these is our repurchased key so. commodity further and no We sizeable of advantage driving areas inventory current to environment upon over portfolio XX diversity results. in have a Especially us that believe operational margin basins, repurchases. by Permian. to both capital and predicated and cash addition Continental teams, based dividend In offer both to return row and months quarter. pricing accretion. deliver past net it while first River profile is XXX,XXX resource better of increase, the in million optionality. In is share cash our a than geologic in flow Bakken, oil the coupled year worth us class expertise projecting of in low has efficient enabled in complimented our subsurface strong and our shares significant high consistently Continental. are do we with is invest seventh our Powder acres cost, $XXX with consistently to

cash gas at our that Our heads approximately movement oils the we and effective above are XXXX price participating fully and price in average. and XX% is XX-year NGLs in flow of margins both have XX% upper an

You to can a differential uplift to of see premium. increased gas have $X $X.XX in our our updated guidance as guidance, this impact the we

me summary discuss updated returning thoughtfully we less to are yield of and our form we’re than recently shareholders our as XX%. our of opportunity, of Let comments investment which X. you where rate fixed can now and XXXX my shareholder value is deliberately Slide return a increasing on earlier investment part capital is unique see A the in capital essentially priorities, This of shares. purchasing dividend capital

on basis which XXX continued and same We debt exceeds a on of less quarter, a trailing yield, is dividend also XX-month keenly on the average first yield targeting per in an The $X.XX discipline in times approximately of focused significant us to achieve line quarter we reduction the saw remain X% one than ratio next puts greater. X% and mid-year. net at total with annualized fixed the to target debt, financial S&P reduction. and which track share represents million our basis EBITDAX debt an company places $XXX on In

$XXX program float at and million I we shares of our $XXX to million our share is This at over have our about repurchased million, an left of program. average $XX.XX. active XX% an representing since previously, XXXX we mentioned date As continued XX.X repurchase approximately price in with phase have authorized

Given supply, committed a returning at variety are our to cost $XX WTI of approximately of cash we prices. wide

color. seeing further pressures. as heard is Doug will you’ve industry provide clearly Finally, the inflationary from other operators,

for, do I itself Doug. that, I’ll to have flexibility planned want So should and manifest mention pressures inflationary operating over continue that have turn call not may participate. choose we to maximum what the to we beyond to With

I’ve the the and outstanding. company’s of value the company capabilities very to the Bill, outstanding decade supply. impressed the I These company’s creation extremely a with technical for returns me I’m culture few it Continental three Like focused expected from resource productivity, than these additional the a to been is is capabilities like integration of as good and these assets of The with is Prior morning. be shareholder confidence have Continental long enhancing for now observations recognizing petro and a but seamless strength operating efficiency, in part are cost seen about base gives of The operations competitive value combined part major And high my assets dedicated foundation two potential. of reputation, comments, I’d better known quality of to to future. the months. attributes and I’ve and excited been inside. the for with of very we the you, now company, Thank a strength capital differential obvious, you uniquely best that quality The but diverse of example positioned having the the leadership you, employees and and in serve and share great an team. substantial resource next portfolio, for the where company’s is

operating our guidance Moving of current original side comments. our annual X, the which side Please to by summary provides turn a to guidance. Slide versus

storms, than XXX,XXX expected oil the River XX% we pre-storm a annual drilling producing guys North XXXX from beginning day. production snowstorm of recent to downtime activity production strong of and offset oil over quarter. PDP XXX,XXX per is completed significant be acquisition. our productivity per barrels asset of approximately Due year confident levels, by rate wealth. to growth we and full of inclusive related We guidance in activity Dakota, recently each our are increased currently exit the to approximately through sequential volumes mid-May. recent XXX% This has day, in and expect noted, Powder XXX,XXX from of better work previously have completion through corporate the As our to production and been but our back downtime in XXX,XXX for accelerated the of December production to to Bakken oil increased barrels year, Despite project we ice

to from Anadarko STACK of Additionally, employees. SCOOP to These additional benefiting our our XXXX production return raised the billion gas guidance flow have our due strong of the to performance gas day, early cash are feet per and X.X of wells basin. volumes we cubic X.X gas billion capital natural natural and areas free in

are We of elevated the expense paying operating the These we operating the accelerated first in production was for these for are the highly activity. expense, are over Absent workovers maintaining work an due quarter including aforementioned two in workovers, out guidance within increase which quarter. economic average guidance weeks. in our year, our to expense

pricing, are and strategic increased attenuated negative realizations drilling pricing basing barrel and gas. oil our positive are providers feet activity and up cubic to realizations, per NGL and versus we to gas Given options to noted million natural improving These strong $X.XX XXXX. for Also leading X,XXX strong customers our operate, refiner pressure $X.XX XX% differentials in the with allocated we toward per strength we $XXX the where we comes we with $X.XX service oil our the by to $X to of pricing and as driven are use as year-over-year an projecting we additional $XXX basins, see inflation, and have to have it when previously, program. of pricing uplifts. operations, products execute our million of consistency inflationary to and

corporate monitor dictate. including projections and as Overall, highlight sustainable and to returns or continue how pursuit our of capital economics well the generation. teams as significant as assets, will efficiencies, operations, cash further results performance We and our of believe flow to program translates strength looking accordingly, operational respond and up our adjusting forward and strong we technical this our and and inflation our down the

resource months highly please across Continental bolt-on and Permian River acquisitions a acquired Anadarko, has you acquisitions increase our in and the Bakken, exploration. the accretive over acres basins acres XX at net through over efficient period These competitive future prices. for Slide over past total Powder acquisition net X, turn If this represent XX% to organic XXX,XXX development

As our into the exceptional. last Powder been message basin we Permian River quarter, expansion has and

Slide in quality rigs assets. well done develop standing field Monahans, a our these field available of possible stacked and technical basins have Our the highlights for by XX assimilating the commercial proud they teams in of and From are reservoirs short explore at on job these to which multiple high detailed results. up done position of an as evaluation reservoir and in our our assets, I existing drilling Delaware of prior these This many development a for am office many a our operating a two teams both as land to particularly Continental great job and in Douglas, perspective, level, both years new and basin. the basins and entering evidenced time transitions have offices areas. period Wyoming and of high focused basins all advanced a product very fronts, geologic acquired very successful is teammates making Casper in our early having understanding large the time. Texas great the newly scale is

had a last red the a the yellow acreage in of acreage position identified map. acreage the have total Northern We by new to XX our highlighted portion outline days, on

results the well from We additional Springs operating our have accumulative we the rig unit, in wells in for Bone which a XXXX. of completed and day third is half per equivalent and/or Wolfcamp meeting flowing are rigs about XX initial excited into XX We’re and expectations, XX,XXX the currently four A one reservoirs. the of second planning targeting recently barrels Delaware, oil from exceeding

Wolfcamp our the development full be and reservoirs will basin. focus Delaware of across Springs the in Bone position Our unit

As Powder River about why Slide at see XX, are the look you you’ll basin. excited we

pleased results BOE core very wells reservoirs, and wells a producing recent the the and average three were with XX acreage in fairway of XX including new span day. completed continuous per Niobrara XX Shannon, from Frontier. IP These We’re through our different mile an long X,XXX

further basin We’re position. focused and our Shannon rigs development while on the across in and in currently the operating the Niobrara frontier two delineating

wells Additionally, the four the reservoirs end year. to of complete on we plan by other

turn We to in formations. Slide targeting drill wells than in the these Niobrara XX% the with Powder roughly XX. XXX of next two expect years and Please wells Frontier/Turner more the to

of to to positive is continued another unlock our cost capital to change differentiated opportunities that You’ll our rate and of ability aspect supply. see efficiency of

sequential back support inflation by efficiencies in XX% well sustainable In year, of free strength our seen successfully we in operating out due achievement and a value capability Bill. to and performance. our cost we’re generation capabilities. a Since the efficient only of maximizing XXXX. Our companywide the in teams. as improvements flat function Backing the capital improvement have At evaluation to is not to flow cash and improve supply the environment, present, our and graphics and XXXX, XX% supply expertise commodity current improvement a our price while outstanding is but now efficiency. geotechnical the call in operations have of the of time. operating a drilling show as teams over cash resulting highly subsurface demonstrated the successful program versus well This our focused summary, generating our mitigated inflation in XXXX is cost executing our I’ll manner completion pass to

Thanks, Doug.

XX, center Slide to continues for XXXX Finally, reports ESG to turning July. published be and to commitment ESG in front to Look be Continental. leadership our for

wellbeing to rest we adequately United not have and consider previous As contribution reports, ESG the the security the we energy in our the believe published frameworks world. do makes industry the the and of existing States the of

The events this society first remain events unfolding in year, presents addressing needs affordable and critical to life. modern of – produce. energy the gas considers the very and to secure, reliable, a that the clean half these to view – in this contributions We the your framework on highlight the oil issue. Our societal makes access contribution we committed focused for unfortunate

we operational the to by in In a of equity of enterprise addition completed, our million XXXX. expected is this largest key focus will during capture operational tons. and in strategic expect COX. to quarter, once world $XXX emissions on XXXX to to million which million the of additional XX% recent and sequestration expected to Solutions, investment currently is approximately project equity X Scope X.X sequestered XX Carbon ongoing be announced and Summit approximately we the the way Once investment. per project XX of be improvements comparison, own year as finalized, million raising Summit an capture metric tons were Continental’s By carbon

investment and Our throughout funded will XXXX. XXXX be

we’re details. ready back excited call and Q&A about very the With and over our We’re the go you of I’ll that, turn to for project greater website Summit’s operator. the this to to to section call begin encourage

[Operator first All the today ahead. from And Our will Neal you. go Truist we will Securities. session. question right. of begin Dingmann question-and-answer Please Instructions] now Thank come

are me, Good Both hear you my guys. Hope nature. all questions morning can operational results. Impressive in right.

the to the you’ve on number that First position, next speak have now for for wondering, you’ve Could the concern any specifically, upside, of there. had just experienced a year? I’m Permian you assets months. takeaway maybe you do And gas

add in equal Doug and what have our to Tony as are. Couple really I’ll This of then coming better Bill liked Everything add. it well. and than expectations we to so is things we’ve probably far, or seen have I’ll

that take we’re we’re to heard off that folks the developing of the commensurate think from on And additional that soft and next what all seeing for pace in we’re and the takes takes well so seeing probably I going other or other that have gas comments Doug, off industry’s to with you’ve as drilling months That’s area. the what Tony some going is you need in But we’re may be. gas same issue. from XX at – a our weld. expectation

The only in company. as here years some to one for the fully few on particularly XX and excitement is time from Bill were thing the next plan in our what us the units current generate well going the early add sharing the is areas new that we it of next volumes serious be new I’d completions gives some north we of strong the performance the developed The further particularly in they’re really confidence few can originally that anticipated years. from us the gives just exciting is results that in to

A, are in target, further stratographic also but see opportunities that noted the in Springs Bone our Wolfcamp main section. is we think I comments, my

this ground X And super the hit Neal, is cool a really and the asset XX years. it, of that the So what’s – if running been really for about part company’s as it’s it’s exciting to company fast. has

is then on And second Doug, prepared you remarks. my just, mentioned details. Great the workovers

You a as either in Permian, you of workover all or the have number Anadarko in see further the horizon. Bakken, opportunities

barrel. I’m to really $X add really story. little a look that. powerful than less expense less done, is barrel for excited was This When base little another company workover runs our it. forecasted about a a we’ve bit than LOE be to you what the at a to $X And

our less in see you little what to barrel. us bringing guidance $X a is a So than

what’s see and completed XX quarter workovers. pace, XX more to the XX the but just company’s in sense. in historically, the we on payout. oil there is just noted barrels through from a it economically than of have done job there a to first as alone. adjusting the XXX will year, the has outstanding most I the we Bakken We up you bringing they’re field can tremendous for economics see That makes an in Bakken at runway projects as are anywhere These week continue workovers the as executing expect ever similar opportunities net tremendous and be Obviously that two the most that at those

in more be continuing we around the look as possible some to Anadarko. there attention in opportunities be We obviously, the to will but what’s opportunities. number, some turn the too. the Powder Permian, our that portfolio limited in for There’ll And

how So can part really of the very resource that’s That’s again, of cost our mobilize of effectively. demonstrating leadership economics we company a and, program. the our improving powerful

on help I might of just modeling. give your you numbers a couple to

averaged is $X.XX workover a Boe. expense about year to last So

obviously That’s quarter, indicated. he referenced uplift and projects were that paid Doug First out as there. XXX $X.XX, so that they about quickly $X.XX they the

out We’ve we back You the obviously, our expect, our reaffirmed comfortably year we’re retained within and guidance. we out, that modeled guidance. for

guidance our within the for be to expect year. We

So we’re positioned. well

John. that for Thanks

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

and congrats Good morning, a update. quarter all, and strong on

Thank you.

given question first capital direct on float your another of wanted you’re of leverage? more the to of your degree the a thinking net ask objectives capital flow means return of make the there X. I debt present Is my projections available and at question case a Page and about for free cash institution With on flow to cash return long-term free your outlined

to it. we’ve at here Yes, on of quivers, all and that prior the the and there’s speak vehicles. go calls we Appreciate lots it Thanks, in and said reemphasize so Derrick. we’re looking is the ahead different tools

and share ones balance The tool One that’s million be billion first buyback we of the continue where debt trying get below important seen may that we pay basis. in down we’re most quarter. $XXX been, the strengthen we’ve is target We out. flow bought another $X is the worth that – debt that and sheet by that lowering is further is There to you’ve to obviously, and is still can our even generate $X that cash target to as net billion. where used

I but you to opportunity materially had that is question, as a to and know and we on comment to Continental this you think which described M&A shareholders. that I think on I We the probably undervalued. into share buyback. this an has comments night builds Neal the opportunity this, of do guys a have on see look lot our something as add why, what value well, will good that focus his the point It’s dialogue. as going the you this springboard I’ll always last and Derrick, that are see If is and it use a at that? to on

I then and you to biofields, follow shift certainly is our so upstream appreciate your Summit partnership, team And can it. my to as compliment your great. it covers on both wanted over Carbon Solutions and fully That’s we up. there, investment

and perhaps some if structure Regarding its stake XXQ itself, percentage IRS as the could attribute of uplift partnership receive of a you’re you’ve share some the result the taken. to expecting and environmental you equity around context

Yes.

than hard level detail. high a a may go little do more John into bit maybe me Let

And ton, the are and going credits a is think hopefully the caps, states $XX ethanol. various so two have publicly. fuel $XX do there’s not plants progress. as there’s then COX I of And low contributing commercial And move one and have that. that carbon been XXQ there that another as parts ethanol – XX that There’s into of to We then for released you in terms a there’s Some about structure ethanol know, the gets ton. have or also actually the that’s to sold legislation it. is that

there arrangement some… you on that. between John, details and got a haven’t long-term, so providers is commercial And And but the us, the we released

Yes, on what XX%, a would is the is, sources add ethanol of of lowest water and from economics It’s largely of the I ethanol the pure vapor. one the XX% COX, remainders emissions COX. cost plants

are the benefits number significantly. than This attracted to referenced, for his that a in economics So it’s is time, strong ownership a participation contexts, but looking And very emissions project very is comments project that something discuss us. Summit we the a economic that project. Bill – this for appropriate as point percentage can our a that’s the reasons. it’s attractive but at in viable our various to instance, we’re at greater of scale

of going to quarter lends And going we’re I sets. in project. our expertise about our a forward. comments as Bill own and it’s a large it skill think it his And very to referenced

Yes. And also center just involved have the that, about side excited with the of states. only real extensive people involved with and not an this it, building all but conversation, we’re on Derrick, government in investment the

lower ethanol So intensity carbon a opportunity course, very of this. a to very put chance And much those this the have all states for on to the supportive take governors their ethanol it. in significant are is and producers of

be good one very concern. is everyone is going a project for we’re that this So convinced to

from Mehta come go of will today question Sachs. Neil next Our ahead. Goldman Please

on quarter M&A My Congrats the – team. related environment. was first my morning, here. Good question the to strong question

You as PRB, Permian deals the the been guys the side on acquisitions acreage obviously have active well. more in with A&D

still opportunity next at year? in look they type market this the develop bolt-on nature that the extent you the them so we you see continue the transactions going and more do over attractive saw you to year? of Do the see forward, an As to far the

Neil. Thanks, Yes.

opportunity go working at If bolt-on when from high somewhat first turn and there, we about it, Permian, provides in always the we actually that that at to area you’ll looked and us last before, call, you Permian the is it know making of got level, I in The surprised that heard time our we and already but things look an I the discussed already are embrace say after the we know talked at we when was into you’ve century. preference in got this that all it recall a the understand, people in. an the we acquisition an on

So constrained are we looking seeing do M&A where the now difficult you’re at bolt-ons looking job of and still all a really I a much in of to into thorough economics discipline to the activity. get more we’re So think type exhaustive we are And rocks, before to that, right with that price know any don’t that at going going be prices [indiscernible] I to And thing right add that. whether now probably are we do anything the somewhat prefer to go be you a think to got else cycle. we we to on ability Doug, be do where to it’s I the going as forward. But want you even the

price investment that add at will strong make continue in Let And Bill and/or sense me economic that think as really seeing average than are opportunities for that future within of what’s to acquisitions, are noted many opportunities provide significant to acquisition note that about acre. $XX,XXX we cases portfolio. is our these less Bill just per look these as we’ll competitive we

able our gives that about other we’re us that a we in the future. future, to economics closely, added price should competitive pursue evaluate in what think lot portfolio this to to invest we will have so And in be we but confidence we have. as of opportunities the opportunities And there the

approach approach on the And that. acres. just do of But approach We pay smaller we in back going you’ll we question’s now. discipline but And always run be for but up low take when what number paid we we out are And a disciplined what If don’t going that’s it’s to took look it’s And do, importantly, that’s our and a last perspective shareholders. more XXX,XXX out doing are. run lot, actually a on we that at up was to what it? crude one a throw M&A. beneficial before acreage, at a up, you that the reflection the with very might we even picking how to I the to to and as there, Neil, are you pretty undeveloped think we’re I prices, number. when based find it’s And we our do? even going who for know

is great, gas. That’s great perspective. natural follow The on up

had want quarter, to you of deploy at very the you the price gas us you expectations? think in what you How modeled. the change prices quarter in of capital? prioritize strong anything unusual you versus And terms was does strengthening just the in forward curve capturing realized or If realizations I well. look activity gas of had benchmark the your the most footprint? Where What there your gas

little of Great Yeah. share some of you bit a we’ve probably question. results And from with wells. the of the some seen

of I ran than point into some more in think course move us decision did activity going from to we it be a to up May XXXX, saying area. reflect down that we ought strengthening that be of of that But a shifting our so and and in probably the natural that more delivered benefiting drilling recall gas gas actually to see anticipated. We we’re are all that of time actually to You’ll path started that. lot fundamentals that we at

the wells, on the have top we We’re Anadarko. XX Boe the company basis the in seeing in of Anadarko or wells XX great performance from probably

from oil. Going you the think we forward, described and the numbers you that I probably calculate rate the at look that on if exit

oilier the percentage portfolio We’re to on this little lot that more bit a going an still a year, gas of room running side. be have of but shifting

there about being in whether significantly asked you unusual differential. NGLs Neil, Obviously, was company. are anything reporting two the benefiting stream a

continuing gas Our inclusive obviously what That’s That is and NGL we’re reflection differential of see pronounced. is uplift. the to significant the market. in of a

we seeing and to strong. we result, strong continue there oil differential our last a because think differentials week, pricing I gas So uplifted the in as basin uplifts guidance we did as well expect and

benefit. continuing to So we’re

Yes.

itself our manifests the with assets that the geographic of is One you diversity. things see

as somewhere And one as got getting in so opportunity constrained talked we’ve we to area services, or pipelines about else. start go earlier,

And so the think we is. into commodity optionality move their on on basin depending can basin we what

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

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

Thank you.

on question the is debt. hitting maybe first back Our

you notes. You of XXXXs the to that’s you are said tranche due, on about next by which out totals about related. and aggressively this it’s billion. How of kind thinking returns it’s is take the cash That that of follow-up, XXXXs the end plan debt And the call then our and it, XXXX year. X.X

know committed So paybacks Thank you. going returning you’re we forward. that to

there Okay, any XXXXs. if got very I and miss are the on a focused at so you in please. lot fire XXXXs us, we Yes, back

this generating on Obviously, amount that be that flow year. to enables free we’re that. cash continue will We a significant of

a issue you too, as reference bonds, those So common work that did we with through five-year pay of But instruments the could a we good we it off. non-call isn’t unique near-term when the that job we those, XXXXs us a November, gave the is a that why investors. back potential specifically, of walking bonds did in did structure. because which we with Why are XXXX, They’re paper. through piece

towards move type can’t But this This balances that’ll would you those next as year. I a window one in call we tell forward, will debt pieces to we they’re factor year the look that be So of likely two yet. build paper But through after consideration. other instruments that of not look likely be net would cash the we and reduce.

So great of optionality. deal

below about really to the is us. XX, basis, with volatility. progress one, nicely we’re is quarter, on a be where annual And we’re very for but type to annualized against as want We’re environment talked that – looking below first a important in a reduction just one we debt insulation lot And at long X.XX we’re the time, price of an commodity we’ve pleased making. gives

will continue So debt reduction. I aggressively pursuing

then XX% officially XXXX? beyond And the flow XXXX Great. on of extending cash or

XX% the to addressing that that Yes. continue return shareholders. And strong a That – to will as a see you’ll commitment XX% you’re on. the commitment

use too. to and – strong see the expect XXXX, purchase, out choice continuing the a to dependent debt. us all But the as price vehicles a shareholders and the you return subscribe and it’s get to XXXX, to have you’ll we to and down dividends, think course, when Of paying I see guidance XXXX also share we

obviously it’s at all component to a but be look a at price in reduction lot line a out that shareholders. XX% debt is Not rate shareholders. today I’ll sheet point consider a that to commodity lower of return We way, do we reinvestment that of shareholders. that, return it a believe necessarily enabling environments, think reinvestment in a we is that. to even Yes, And a because we do benefit investors kept where our we rate with it’s prudent do, strong balance to

Perfect. Thank you.

you. Thank

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

this morning, there’s because Thanks. as know, everyone, patience you I multiple going appreciate on. calls your

for me on getting thanks queue. So the

for and one. our going John So me up going to a to do for Rory, or this second. you Roy’s beat to ask job I’m

accommodate. Continental M&A I’m of on as right backyard. cash has fortuitous has maturities, even an about not of and talked And curious timing a think generating just that, or might company, you to your So How terrific you I could a you’ve your do or been zero position? debt giving in if you’ve whether something cash consider onto aware speculation if and do even that paid. relates wonder net type package to oil build what to does been large is that’s address a we comment major of that Continental You’re position a to do with enormous first. is secondly, with from very we it amount the comments your strategic There what net cash could certainly build that? that to might about cash a

I and one obviously by considering. the the considering not can Yes. will might that To much in surprised and talk be going may or Thanks. not Thanks, things Doug. part don’t be address pretty we best you’ll that the with on. job really as last of got John another on pace the anything first that might we be during yes, million $XXX And about we stay will. that plugged is look yes, billion year do first we’re we’ve answer address debt of repurchased more the of pace But $X.X that There’s than kind the robust. I articulate of the if coming cash at we had, that’s million really it’s the dividend generating, year $XXX of you into and repurchase, a strong, opportunity.

we’re return that there’s build to the that John, lot So cash not? anything you on of or with a opportunity to for got generating. shareholder

focused beat going don’t so of worried too think I got up, case, to you on, still I’m a We’ve Yes. lot Rory’s but I’m not the that’s there. Doug. flexibility,

math. the $X flexibility. $X.X program, great cash $X.X share of We’re do Clearly, free well-positioned. remaining year, putting flow a we rest of if very of well to one all debt, you the could to. billion in but of off $XXX our off that quarter, mean, million of pay $X.X billion relative that can to buyback deal structure, optimal in execute year, that’s after chose saying not the capital billion our off of this billion Putting excess debt, the first got I the we we’ve I’m

a but dividend, yield be This continue fifth of only So the the stated We’ve that. not quarter debt that. part a to to was our raised year. in be reductions on going

and way the dividend, To in prefer not sure that. a we do. some at, And we’re across we’re to continue in with where we to what to we’ve considered we’re do we going have capacity be that and and of be we’ll not operationally doing if and benefit do look got So everything to at appropriate but the company balanced that’s honest, a there. ability what we have a most to I’m be fixed continue to strong We opportunity lot appropriate do place. variable do it. dividend

I or when we you is don’t Yes. worded that thought talked for that the but had we dollar that I of call a earlier appropriately have. the it that’s which know on we it Dingmann stock the maturely put repurchase out about the are Neal Continental conversation, were And this Doug, use whether program that application best comment incremental very was undervalued, suggests to we

more specific I I don’t And I clearly be remaining my an answer, that’s you question, know by the elaborate. to guess floor, bit of buy want free scenario. unrealistic we about but appreciate but a all to the could

problem a balance about do think actually could So sense? it this to do seems zero we’re do we And figure take what John, trying I’m get new how you have, to out sit practical with or point with sheet, the just the nice out I net debt to proposition, it but just if just that it’s cash. we down your trying a in figure about

earlier, discussion And XXXX what we X.XX a Yes. really focus about of talked that we’ve and Thanks, generation script Doug. I talking level. at of we and about type about, type we on about XX, think the and in and you’re type talked John number generate as talked can mid-cycle it and cash

a in living pretty world. still We’re uncertain

on at going with the with COVID, look what’s you with the Russian If supply, invasion.

that cash there. debt out we’re can to to And argue is do of And think for be happy the balance to basis. address volatility on with lot a going you sheet. us net So a we prudent it’s

very was a looking I That’s it. clear you. Appreciate answer for. Thank

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ahead. Holt. Tudor, go today Oliver from question come next Huang will Our Please Pickering, of

my Good morning, question. everyone, for thanks and taking

and has perspective that move as spot have of that to for one we are Continental of kind really today what mitigate we’re with quick side in better of back I to XXXX. touch one duration the aware we seeing a contractual of, and of the had crews move higher, rigs from place from Just to service material on all towards into wanted kind any on sense rates half over briefly which how just a costs trended help inflation get XXXX near-term wanted and things what labor

Hey Oliver, it’s Doug.

pricing long-term bulk we’ll have our we the time. it the chain that increase structure, our service services prices company. for the To that the the month over and how number your a question the the pricing in cash of offset program. that will we’ve way roughly we several increase at point, for best We services that to longer-term, continue bulk best with evaluate our time, would a shorter-term advantage group doing of Pricing I further will proceed seeing sure a supply X.X% of and have And next X% get of there. I lot the past it execute It periods flow that And in opportunity environment. see summary to we’ve we and several continued that under agreements short are mitigate March there An operations example robust as in that of got guess at a years the tubulars inflationary contracts. us of pressure some not, was of through the is done of and look providers maximize us, the point be for any your The take possible. and this And fuel the kind gives OCT a year. is that OCTG, as to number we’re alone, strategies But the to just to – as labor. are of in do costs consistency we potentially quarters. the we pressure answer make of there lot our gives challenging us with a of in well we continued throughout as best are tubulars not see flexibility providers we’ll of contracted as

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Our Leo from Please Mariani next come question today go ahead. KeyBanc. of will

follow-up in to I equity little wanted Summit you Carbon a investment. all Capture know project. kind announced a $XXX had the bit conjunction guys, Hey Summit of on with million

additionally, there’s view in here come think to paid passive over equity calls Continental future XX% two player going give that you there other that’s years. you for confirm Continental $XXX more million the do role be like will Sounds wanted a some that next be to that could active operational this or role the as this And may just with of an this I or well? along financial themselves as then project.

Okay.

a price be some not choose to incremental you in at some So more a Summit of likely point a at raise consummated at forward. $X then leverage. there equity stages utilize and moves They out see billion but of the as it’ll later project. $X may back billion higher can are to project or to billion equity it’s because this on it equity, roughly $X.X plans use may Initial website,

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part a We active board. of very are the

member. or an management the actual We’re other shareholder in as a not the active active as and role board in physical execution significant than our

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is change we’ve project capture the sequestration and We sequestration carbon project, the of as you climate – it’s addressing part carbon go a announced largest forward. of integral it’s great world. believe as it’s climate So an in indicated,

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out in us per thanks. number, then throw you some say, great. X,XXX second you downtime, be all Boe hey, or all? you’re clearly do that be in of quarter, the Could Bakken to maybe also you experiencing Okay, And anything all would could a at the it’s the here quantify production able mentioned to help day would something,

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end River quarter. the closed year also our full has at that from right guidance incremental Powder Our acquisition benefited of first the

PDP with nice of volumes So also. that level that come there’s a

guidance. So good on we’re our shape in

guys. Thanks Okay.

ahead. question Paul Scotiabank. of today next from Please go Chang Our will come

question Bill that first exposure at you. that the [indiscernible] could the or question. a offensive can that carbon that as guys. bit that business company. part you’re you looking another tray an little intensity a it The your center that is move Thank a the is carbon the you be first That’s make some window so morning, for look and of management at Good deal, – at when manage for is the of there defensive

Thanks, Paul. Yes.

is that correct? the in sure make and captured vis-à-vis us carbon the for repeat rationale question, was Summit so your their me and comment investing intensity, that Let

a manage just pass water that Yes. build center look or I carbon own can your you proper you is that what as as your can for so into is business you mean, window you at potentially really so a intensity in the it it that you in a future.

and and we comments we of made all through activities. what at we of about hydrocarbons, it I’ll capital we it’s every greenhouse out some this the maybe that forms is one look greenhouse in atmosphere. that carbon manage the announced admitting case reduction reduction to look Dakota have around the liquid, to John’s the we’ve X.X of as describing to Hart dioxide we And is of energy was and of gas gas, emissions look that can tons in far our Yes. project. of world is maybe North the statement this of type conversation And to, at usually and way that in the should type had all efficient about most capital John byproduct, most at on methane, the day single air. is out number what and gas. carbon efficient XXXX own emission address looked think that what our that, take build the in things do Summit what way We we we COX when solid, we in our million have put we as as this And intensity, had

are carbon capital looked And efficient and the plants way capital atmosphere of skills. a there’s at the most out combination we most natural is take so to dioxide ethanol That’s efficient the that. just our do way what why approach was to of

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your you that I But or that so future can is as guess center I really my getting question manage credit carbon it exposure? mean, you profit Bill, the a do that, business own view is

Yes, we’ve out at we’ve project said there. economic that – – is are that the this proposals

project these why today, the an that the think efficient and I meaning happen. actually your we’ve and XX we carbon really that’s If that economically XX you it’s type of about, are, said economically make projects that that And fuel look capital going that’s efficient to a the capital – was low at XXQ this viable Paul, you’re are project. talking That’s to the viable credits. comment

will to for like question-and-answer I’d turn at our we And time, any the conference Rory conclude this Sabino over and ladies to session. gentlemen, remarks. back closing

for to everyone wanted to today. the And efforts much. time day everyone further to financial I know Thank our of appreciate for team questions. the out IR certainly in with we thank reach I Great. please very any a out busy be their call. and part community, the it’s you

may The you we disconnect now conference And now and today’s thank your lines. attending for concluded is you presentation.