Southwestern Energy (SWN) 30 Jul 212021 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Southwestern Energy's Second Quarter 2021 Earnings Call. Management will open up the call for questions with a question-and-answer session following the prepared remarks. [Operator Instructions]. I would now like to turn the conference over to Brittany Raiford, Southwestern Energy's Director of Investor Relations.

begin may You

Good Quarter Keith. welcome Southwestern to Thank Earnings morning, Call. Second XXXX Energy's you, and

Joining are Interim s, and Chief and me Executive Kurtz, Transportation. Operating Chief today Jason Officer; Bill Way, Michael of Hancock, Head Chief Officer; and Financial Marketing President Officer;

comments are statements Many Before the and that our in and affecting I'd outcomes. involve these many started, this are control during get to point risks make we that call of beyond out discussed like of we are forward-looking more and in the of with transaction detail special the Forward-Looking our annual Indigo the risk filed in factors proxy Securities the Statements and report, our for the as section our statement Exchange regarding quarterly Commission. meeting all uncertainties definitive

expectations are financial some are assumptions. update obligation and across periods the reasonable them. materially, and may performance, future no may expressed not to help of results we also on They peers. non-GAAP and actual developments to measures, with comparisons We and which differ based Although facilitate we under guarantees are believe refer

the For to use, to I release now on website. measures corresponding GAAP found we our a available our reconciliation can Bill earnings call the Way. any over turn will in measure non-GAAP be nearest

each call of do morning, many day. Thank and company all that morning our you're and as I employees you all to for you been you, hope this Britney. each everyone. so go joining out have Good to for that delighted every well. I'm safe appreciate We us you the join that of today, My and thanks able the well.

would role and Executive to Energy and like strategic existing to the Michael finance left His work talented of and like Vice execute of shareholders. loss these and behind President as and complement forward team. I'd over value Julian welcome last Hancock thank Carl leaders Chief really for X approach started, look by Officer. for Bott. I entire our management both Southwestern CFO get our to especially organization fill Financial strategy the disciplined we accounting your also our exceptional Giesler with as to enhance we months, I to Before perspective the to as we the work, working sustainable our to strategy our continue

the strategy strategy opportunities leading Southwestern commitment Energy's to increasing returns-driven financial creating and to the value, focuses results At and sustainable people on benefits is proposition pursuing the consistently things. and value a protecting doing of capture right the scale. our strength, core financial operational delivering of right

of existing that locations gas Appalachia Tier to locations complement LNG Indigo's the markets, other value and additional quarter, dry a positioned and on demand Because sales the the furthers success basis our volatility. second flow by margins X value-driven structure engaged, and culture. immediate and sheet, expect is see the and we our of of centers. key the depends differentials is commitment dampen fully transaction expand to nurtured allocation expansion many that sustainable The XX, inventory In flow risks low-cost we this diverse free objectives. business. improvement sustainability across returns, August well our an free financial steps including creation for thereafter. to to year. our prices Indigo deleveraging company's expanding basis the delivery took alignment key cost performing, corporate generation, and gas our Our improved capital inclusive moderating fixed high workforce innovative strategy tangible deliver the to and scope by increase premium financial Twin including to our overall and basin positions integration we strong and Natural of shareholder action. accelerates particularly are as and and goal The process growing going The to expect premier and The shortly optionality. vote further brings, its the expanded of value overall Notably, of adds of our set These into our capture this scale the expands further inventory. Kingsville gas set the well of metrics, to company announced by core in benefits strategy is strategic in in delivery to later inventory scale enhancements including opportunity country's and Resources. from transaction and and natural cash balance combining firm the close commodity This agreements accretion the Indigo The will highlight acquisition continue improve. cash accelerated economies, of adjacent benefits was ahead schedule. quarter our of planning

cost We are furthermore, to closes and at enhancements from synergies track deliver operational additional see promised potential on and closing. the of improvements, the And capital. lower once we value transaction the strengthened profile a credit a for commercial

new beyond like of and our Haynesville ways of objective ultimate of the sourced a proven our newly to strategy is that Indigo, from economics additional commitment Twin's it the enhancing combined well. find sustainability Responsibly is key integrators, are to will scale confident goes We business. initiatives. deliver gas I'm our our one value ESG as team integrated transaction

an to of wells Canary. through wine implemented our program and continuously project we all a with quarter, Appalachia monitor agreement Basin This unconventional certify basin

sourced to history continuous We they occur. provider Pennsylvania utilizes the several we a enabling certification with have potential process. The installed our We across long acreage, operating and in for users the should a to emissions and firm years have site specifically rigorous immediately as Eastern process United basin-wide well our begun, end comprehensive we've that been a gas teams address certification at operating several sites has monitoring selected States. marketing monitors and already responsibly

producer future. that low-carbon well is is Southwestern leading for natural positioned a gas our

value to strong We and have Tier large-scale creation. sustainable unique execution the performance, balance assets, deliver of X combination providing a proven sheet, operated a ESG means

scale remain committed investment driving and discipline We risk management value. levels capital and believe holding maintenance strategy to capital to disciplined are of continue for to and We strategy, hedging. the our shareholder including benefits our in consolidation core

capital quarters, of further will allocation including to few and our debt refine reduction we potential next additional capital the Over shareholders. return the strategy,

Now I'd call turn to the over operational to discuss the results. like Clay quarter's to

was and by active while presented and Operationally, good continued our continued within quarter, and ranges, protection Bill, to morning. the another ongoing XQ people ensuring guidance the teams Thanks, deliver from of results our challenges our COVID-XX. operations our

look XXXX the and with This day of Bcfe oil quarter. on barrels or operating XX% Bcfe we forward the first the program. flat per per production and per in was approximately XXX,XXX of Bcf highlights NGOS, quarter production day. X.X start Haynesville. track, our X and from included day plan with some XXX gas, of Our to I'll capital representing is maintenance total and to Total consistent

During two the in we frac one crews. and Ohio averaged quarter, drilling West in rigs, X with Virginia in X Pennsylvania, X

at foot wells were average XX,XXX first per completed the XX. to year. the half of quarter, $XXX million loading capital shaping in brought we investment quarter and invested on sales second further consistent expect XX with lower quarter drilled Costs planned, length feet. the wells in in trend an and maintenance As XXXX QX. approach of lateral $XXX of and the is to capital The QX in tapering to with of XX a sales our line with in front-end We of the in well-established decrease approximately with our

approximately foot cost In brought we to length had XX,XXX XXXX. our average While and had feet. day, an mainly pad rate Northeast single-digit first returns. online expectations. rate to and average cubic our placed inflationary efficiencies feet lateral to XX $XXX procurement Appalachia, low we million cost diesel, to our well goal XX,XXX and $XXX reduction This the gains, with an impacts with Southwest an expect to Utica cost program wells are foot and we $XXX XX-day wells starting These capital sales well in costs per average performing and of enhance line per dry average vertical steel XX to all foot. million proactive of the day. X-well see in gas per operational with deflation an operational labor, We to of pad feet quarter of Ohio length some continue an efficiency and average related per cubic average integration, lateral In drive due strategy in of XX approximately of continue we per XX-day an achieved reduce Appalachia, feet

As ground our hit Bill mentioned, with newest the to Haynesville. join colleagues we excited and are running Indigo from in the

great HSE and from and doing Carl to planning, our a incorporating represents on best have that team to that expertise. highlights. Haynesville and we'll of will currently and financial employees now I'll combine the be with a it our to in current we then operating SWN. Initially, turn combination over focused both look place operational, Indigo own operational discuss are knowledge We practices technical

join excited Thank you, help this progress. and Clay, to acquisition build on the business generated I'm the momentum and base SWN team good morning, everyone. and

just flow Bill Liquidity by year. under this the to quarter, with transaction accelerate to provide goals. to closes, results As we'll flow, almost financial meaningful remains the for cash on $X.X quarterly ratio free on the XXXX half delivery further account generation its billion of generate on We're improved generated leverage to $XXX million in solid good flow for accelerated turn consecutive free Once in cash shape and the The company facility. of third the this annual addition in credit the our guidance cash It X.Xx. earlier, financial a track capacity with mentioned Indigo. expecting updated our of second quarter. free borrowings plan X.X

been financial Indigo price and achieving goal the and the acquisitions, benefits acquisition and XXXX. which strategy. leverage our financial commodity that to balance commodity hedging sustainable leverage, company's company's basis of strength from current management With be resulting directly has company this other employed. enterprise we key accretive aspects linked level strategy, achieve is commodity of the is late strength returning fundamentals and and A sheet part the Xx expect will to to The among and face robust by SWNs incorporates strength, hedging risk instruments the outlook,

strategy, our hedging its in guidance basis company the basis year of maintains result despite a widening Appalachia. full As

objectives. As Indigo management That strategy please mind, value and prepared open and Keith, our to practice allocation creation line aligned that the in profile and company's questions. our risk concludes and remarks. continue strategy long-term commodity the months, don't our if you update our capital coming integrate ensure we for the with risk remains we

comes first the question from And Johnson Charles Rice. with Instructions]. Meade [Operator

welcome go has with to to respect Bill, -- and but do when to you you theme, explored before, you a were I it guys ago, a I've I with Clay, hedges. years want allocation to couple capital to of call. and Bill, to with think back

the now the you're and where curious, guys where I'm call on whether -- where And you of, guys it couple strip if selecting gas, in And were the in a evaluate price. words, of money so other strip strip. high hedged? you hedges a hedged it, the your XX well? is the ranking rank on bit kind when guys have Is explored Xs? and guys other the on you something was, some symmetrical the based you above even you or to In no, hedges the had answer to years side we that select the closer we of projects hedges based we is look had though strip have are are money your on hedges XXX and as your hedge the going And ago, you

for Charles, the Yes. Thanks, question.

practice using allocation of capital pricing Our determine strip remains. to

think I a will of choice think -- Yes, allocate bit broader I than we or that. strip. it's against no, yes the we

look and okay, we're both be at, look look will be Where that to our economics, a allocation. the are to addition, But are going pricing, hedge what what In projects blended the as land that thinking where we stop. will -- on we into does that's actually like? one and yes, going -- take at

Okay.

Is the but set that would budget, -- be with the a effort that yes. by more fair to really the capital hedges, So ranking inside is that going cash overall affected company's strip. budget, it it's flows as

will budget maintenance The be capital capital budget.

to however, that to get so there, going we're 'XX. year-end plays holding And out flat year-end be production all 'XX to

mix least got the clearly that. at So there. make -- of okay, second, where on parts across the of hedges with and And our and you'll sensitivity do multiple places like? look look then projects invest, we then probably we get first that of And we've based the across economics yes, yes, and because business. projects operate our What project a all look what's at, where at on then, complementary look as we like in decisions we'll invest run trip place the of

Ohio at on in picking rate, Utica XX And Those you a wells -- then That day. but on next year? X like well your up would million that in, like there. cost a differently, would the attractive where looks coming follow-up, half and pretty thread. of quick But a in target top slot projects for quartile, those or top hit those slot your maybe

I key we basis, of got and budget there in move at dynamics prices, the issue do to a of costs, sell play, cetera. you've think got at liquids part the typically the the latter look you've like are into to that February. as that got release anticipation gas our And at all is you've look we et in year

those. And so we'll run

the those to the more capital look we as -- already X-year we'll get have at budget. we anyway, business basis closer a specifically run on We but

Bill. you, Thank

other. made, That's think look in the each opportunity for the when strong have I budget, the at one think And again, expected. from look at [indiscernible]. as you'll of we million largely investments our of portfolio They're an closer investing complementary other $XX as you across we And we comment get we very are that part there's that you the will have an the was investing business to comments be I they on to perspective, to to mix economics. see economic because quality of opportunities where our the

question next Stewart Howard Scotia Weil. Holly comes the from And with

Welcome, Carl.

you. Thank

over that's few coming due you But of Indigo kind the so were months. asset two been seen Maybe picture, ago? what just a just know maybe not I I Clay, bigger last maybe far in start question. ongoing can have you probably that months off with with aware on the of diligence you base

We've Yes. they've all good what different about operationally, We're see all pleased excited very the we've opportunity always the been done diligence categories. been with we across job. doing inventory the a as

the in were line One into what of to ESG pleased that was all of the way legacy was intensity, thinking the things about see has methane was something the probably some in we components which with been. down SWN

asset. was that diligence overall the doing that another on So positive been we've of the

joining And be some our strong incredibly talented who and as we've people met will team well.

-- it performing or So where we the is looks what it's like business above thought. at

more for of in then And your a maintenance you've Bill, area been of picture. has in kind that bigger growth activity now just Northeast maybe, while kind The while Southwest driver been PA. sort of

maybe of of closing So the does right with is kind deal, the cause going this Northeast you mix to this revisit Indigo the forward? of PA meaning, assets asset the base,

plan. well Louisiana. Our mix view assets name scale the each all in the just well being strategy yields, the it. to all but price, core of Virginia into made be cost, Ohio, on and are. Pennsylvania, into West We've not got and asset assets and They fit are soon you performance, fit those the capability, Enhancements and piece with associated of across

other see and our place -- me, 'XX 'XX those a into and We or all excuse investment the beyond take accounts we of as in areas. pricing plans. so assumptions build for And and

And from comes with Truist the question Securities. Neal Dingmann next

that, questions reach course I that both give decide First shareholder what two couple that I that the leverage point? sort you question guess, should forward. hedge two shareholder return that kind One, does you that, I'm at of hedge a certain questions when around of of once at strategies shareholder the you confidence hit And just kind the tie for at goal kind that you say, wanting or of of getting have turn. period. all going best the to that you'll shareholder is and together strategy early of look kind Does now, return maybe sort of with

for fundamentals it allocation that key If strategic you're aspects on bonds shareholders, around strategy discussion of and does of mindful shareholders. -- -- capital fully that will capital allocation a of that the get Indigo and number closed, asset things. opportunities, referring shareholders. we to sustainable of to our we'll decision And look put those all value those return of to integrate number of criteria return lot of the a a through and And equity at strategy, maximizing all take mean capital as capital of be outlook, work performance, and

that. have mean look does that investment, mean course, it further probably Of in -- its to a at be we forms, it Does multiple will piece.

where were we this looked did and If obviously further you then capital, stepped is sold we Fayetteville, we of at at go where investments. Return a to proof company and reduction some as reduction back of to were we a kind the whole when -- headed, proceeds of further it's which thing, to part and We of debt allocated equation. from back debt shareholders those point. the

So it's to to of all imperative us talked at about. a that those balanced linked things I basis on for look

follow-up. that? just I can the hedges that forget into I that's you'll a kind the that amount of you I'm the you sure and current blended of the you And how and far sort as how just of look of part FT as sort Indigo, blend of assumed portfolio? at remind integration me,

we But I to together so that closing all of any close put we think that able do need to I'm pro we've we're we that to got Indigo, what and out in until then far will. the I lay of need out, would the can is proxy forma advised then as put kind data a to we've that and issued. wait

with next Goldman Sachs. And Umang Choudhary question the comes from

in on the kind of question wanted to I levels follow-up activity around hedging.

NGLS, of less kind hedge outlook then also there? And going right your to XXXX, leverage sheet factor -- by the any kind in basis expect the Southwest late within of liquids see natural been if place. you do then target on sustainable gas your forward do meet has here, and or turn does what of there area? you balance -- Haynesville And you more is look is to As tilt versus area you activity the at gas levels, towards drilling for dry PA the kind how because

enterprise to think, hedging Well, all, is linked first our risk our of directly I strategy. strategy management

other Certainly, so months, any our enterprise account that or is for targets of and balance cash all into is bringing across the and there. strength risks that's enterprise flow sheet various rolling any And variable look are which Indigo program, scale whether our XX take as we risks, debt we those the in opportunities, or of are forward and together corporation sure to and of we at. basis and the factor that commodity which for another look adding that the kind

We flexibility in XX that's whether have the or whatever. swaps that, the use of months we whether tenor quite a periods or in programs collars of using hedging or that's our of or bit when each X-quarter

will the statement. linkage all maintain always so our we of and and continue in those our company macro So the do to factors program, between financial

So plan, you leverage, as it's And it balance less well more company we the that as as that period in today, go we tools. or hedging our one long-range hedged profile out other hedge we uses. balance concept the further continue shape terms inform the as seconds, look look that investing that That go. and sheet how at certainly, and going how rolling we we this out state capital and far and of use That build all over XX overall just And at to further further that. today, out means return out, rolling of of -- capital our forward. because as misunderstand we at our of of program whether of will capital, or strength, does

how a comfortable So and I there. view at quite that it's strategic I'm work all And same It's comprehensive we view with the incorporated. think very time. a

and very program gas XXXX and we about The that the and liquids happy earlier. dry The prices, with is little XX-XX gas split and commodity We're roughly touched the the other a all Ohio piece dry gas split. is gas bit improvement in dry on a both dry between Northeast liquids. the

mix has been mix as that so forward. And us for consistent somewhat moved a we've

think but we're about opportunistically we'll adjustments split XXXX. that some close make XX-XX sometimes there, to as And we

all is position. in a And Where very widening outpatient company protecting a the this from just basin. together teams a example basis of strongly standout done have job hedging basis the of managing our great in the

combination economic on natural of SWN means the attract get that benefits we're don't basis have year. our you you basis, we basis basic with and so aspect. the that then which particular combine advantages the of we between by for Gulf and not Coast to that a and And And -- going Appalachia the challenge derisking hedging, and the Indigo blend to get you change guidance

So it all goes together.

one inflation expect squeeze steel. about can inflation With costs to seeing labor in. and pressures I efficiency about down. you talked If gains more cost also diesel, higher go cost respect you from and to pressures, But talked

look towards with based more the what services the As cost service tends to with be Haynesville, next there? specifically do conversations like of providers, some in compete year your you expect where basins, on are you you oily from

Yes.

well. As years rigs protected been The our to own we drilling own us you using XXXX. inflation. us And the mentioned, expect that through item from deflation low key has a protection in do mid that has been still for our we single-digit fact procurement we've strategy the

expect is as on view, An we're a for there. to see of low Right other early use inflation pressure now, have but we're maybe broader we still and scale some pretty look are signs It's strategies single-digit we side the same our We the do working preliminary seeing going Indigo. early that into to we'll continued XXXX. that, XXXX. some procurement inflationary from and benefit move

that we we'll Permian. competitive may items to in fleet a to other you and do maintain the We put number are have a will We've vertically that have cost bear pressures pricing using And do rigs frac the helping bear. it, been successful bring contain very while of there that bring that be, in fact increases. integrated, we and as

but that. in we're there we'll a a bit manage solid as So of said, I pressure, think, position, Clay through is

comes Scott Hanold from with question next RBC. the And

respect is, you the you a got mid- a to sustainable on land? when us And define think it's that obviously, view it? how gas when with step getting there about shareholder And question cycle to do you price that? leverage but how And you've and where ratios. of into starting returns, that your back gauge about of first point might where you a think can sense if give My fits

we we to I say sustainable leverage as mid-cycle. we And expect think just predominantly under When -- multiyear about to leverage, structure. financial an think it opposed we marginal to it at or with capital what strip on arbitrary the under strip that cost-efficient looked from be Xx. safety the as opposed to We're trying perspective. at We use to balance term having a maintaining still a get, a

with sort not on it a into range increase price in a that, course, sure of there today, like $X and -- putting we're running at on or be elevated we've transient of a And a decisions. And strategic that a taking $X.XX -- been prices, positive looking pressure putting today, want we mid-cycle to book. to but

So we'll both. run

little it's dynamic, got -- So but it view a there. there's of a little bit you've a like frame bit sounds

And of a my is just couple follow-up Okay. things. question

to CapEx you confirm, doesn't and the fourth have the impact just from And are any mentioned Clay, again to down clarify, that down obviously just in quarter. First, trends Indigo.

that that flat online, to be comes wouldn't it see sequentially does little that surprising bit sense? when So a make more

Yes.

that be ongoing off and to we out capital tapered assets program a include on new that close when with As Indigo, design guy the the we the have will quarter. we that then associated additive we'll fourth those indicated, in third the put capital will

I NGL very fairly strong, NGL quarter. bit And are the the seeing other going for remains then especially like realizations But NGL like market. on a guidance your was and to is real-time market? the ask give can the now. what for solid very obviously, little is right It us into -- the you are on point all prices it sounds pricing you insight robust, know, I more looks

is this Scott, Yes, Jason.

several if are propane NGL just plastics propane, oil-related probably driving we Asia. limited and I So propane to then we definitely about CapEx first. due think increased There's about the exports market, just that supply and reductions think think to demand factors the

hires thing I Gulf the million driving day export global increasing big due the a roughly think low-end likely demand just probably barrels tight out thing X-year propane that propane facilities unless other just this something is range. exports, per and here. inventory average, of of We'll the to X.X that's and just the other the the pretty propane additional Coast. in is on And or that then the is at for winter perspective changes from pricing on

for demand which potentially available So less another I floor gas ethane, that's even -- ACO there's market supply this of mean, to probably continues pricing just factors, grow, as propane days there's about we pressure is winter, When the prices. think from the factor ethane several putting a natural on perspective.

natural So obviously, gas prices are higher.

couple just Coast, couple cracker the the also, the probably barrels a they've the been an from is past ethane stable is barrels facilities over return the Gulf ethane years. is of just thousand of which running You've got around And what up cracker from and other increased day, exports million per perspective, then thing well. day hundred per as X.X in

there. there's of those demand lot out for a strong just products So

from question Tudor, the And next is Pickering, with Holt. Jeoffrey Lambujon

it there's to pieces on near-term ask your wanted the moving just there reductions, applicable the well Utica First, might what how also be to anything cost across runout could and if be on and more add the position?

legacy We done under reduction we've good And more some belt SWN seeing very for on efficiency the with learnings gains, that look our first on just at-bats pad. $XXX the a continue there. well get assets. foot think we're there, there's three were pleased to we like to going very I the

from benefit did. design still but time, whole. the thought to were sections for consistent the all to optimize to going company. way the been Some the that we've And in the well we we'll of with through our of move completion look time that improvements to across continue as continue And at room the there's we cycle ways doing costs we things we we think different write-offs at

that a follow-up is a a questions in to this the revisit in that to and pursue earlier earlier that then you return thoughts that? have on And shifting inclined Q&A. be the prepared specifically bit. on of kind And to one you options to gears it more But on remarks just you bit might way one there's might know isolation, I mentioned as you speak a to second just expanded of the little of refine capital. that your in wanted then My the maybe different

think factors play. I several think Yes, I no secret. it's come into

try active that. strategy be continue is for to building Our in primary focus M&A to to continue and to scale, we'll do

so variable, we could that free with that cash flow. impact how And obviously use

another think you think maintenance Bill we allocation to about we're led if I of you level. committed say, heard to want, as capital, enterprise the mark, how book capital

will I as case the forward think going be the into fold. bring Indigo we that

once capital after make of and to you in that function it Xx the around so as those strip a think prices the comfortable potentially leverage that, take beside, keeping said expedient shareholders. at becomes I on or then we how things way to whatnot, we to mid-cycle whether being basis, view times, many prices, And a able most are, we sustainable return

discussion. So how framing that I think that's we're

John from question next of Abbott America. the with And Bank

for just rate on mean, what the asset? here of I would you bring activity in given look the here does have in window also with decline ask And liquids seeing wanted Utica? the the Ohio the to in like Ohio to strength Just into of pricing to where order sort see question that oil, and we're liquids that the a Utica. NGLs for

as dry had the I were position. acreage initial on think high-quality and was looking Marcellus the that gas that the Mantas company, we high-quality focus recognized at when Utica rich a we we

lean through cost we us towards starting that, our our Utica. have help effort that helped the was and that the gas in bring going prove going existing to team and existing for the resource the with the us the window reserves the was to then that on and legacy was One with rigs And knowledge things think the and as down. us added that get get drilled dry to the can that we benefit Utica of ability around inventory wells to SWN

the assets will commented areas. Utica across seen time be we've commodities types the for and I in economics liquids-rich different there. But initially, our all in nice dry beginning, reason got improvement, the main the all was that have definitely gas incorporating So over the like Marcellus play strong the we

forward part what it we're so to we're go liking continue the the and be seeing And can now plans, right Utica of in but that performance. will improve hopefully

up that the those answer at your you've from do bringing past how about part in flat explanation talked being think mean, in, already cap. you've possibly But this Indigo -- answered when Appreciate you about assets in looking the I there. and

if that rank So in how at you point in this does of opportunity bring you Indigo to time sort assets? the

our the Indigo is active closing. ongoing two. exists with right has like Indigo the in castle, We at high-quality But proven an and with opportunity that lot work way those be over the already doing program proven that we will there a to on Haynesville and more we're opportunity, upside the on of the of inventory the inventory focus focus flat that the going subsurface when take clearly, main technical now. aspect between what's tied

all of that bit decisions. build as we can will those more a always drive like communicate And plan out, that. about economics And we

next Noel question Tuohy the Parks with comes And Brothers. from

wanted of head couple Just I things. a the Utica. back to to

your million wells, any day a IPs for of on across the management So day XX X choke those? is

right in of we're make to Unica for way. and mentioned flat well the flowback exact the we're watching to well. you those the performance doing economics the sure of produce that the portion in and an drawdown making profiles sure reason a that optimal maximize there's those well And the We're you'll that

in wells right the portion So of flat now. the we're

too, of because offsets insight was, just areas what just main sort most where a you to activity a sort on of my else was rate recently there? how care to trying get into up were what day follow-up, or lot the been whether are you XX-hour pretty to operators? of for have a just if an thing peak feel other reasons because -- And that there's the by But I'm is the curious, million other drilled something been the you impressive. XX neglected as get I'll XX-day a

profile, Montage along and $XX particular, but was then XX to flat around day performance XXs we production bring most the in a million on intention highest was public that at active at operator upper assets. in is portion, these look we data, to over closer the have we flat level before that average, million because data which in The at day. probably, then a the average they to a was rate in operators took the who is a and the offset Montage When maybe The be was the you saw area immediately XX. adjacent them would well on and area, all why of from

comfortable why continued understanding practices those brought million subsurface to engineering, were and And we're and as with our at in, a day. that's assets so we've producing XX these about utilize and we we've reservoir our

I And any for Bill like that comments. does to would conclude floor question-and-answer the turn session. the closing to Way

you us for questions your We it, on Well, thank also dialogue. and you today. and joining really for appreciate thank all we call the

your the Your forward Indigo and and strategy, us. progress into is exciting company our for the stronger bring interest an we a take and really as in time much company then support fold

So again. look and I'll as sharing close And SWN care. we call. more the next Take on a Indigo we with tell that, great conference about to weekend. Thanks have certainly forward you,

Thank to concludes dialing teleconference. for today's you. you presentation. That today's Thank

You may your disconnect now lines.