Southwestern Energy (SWN) 25 Feb 222021 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Southwestern Energy Fourth Quarter 2021 Earnings Call. [Operator Instructions] This call is being recorded. I will now turn the call over to Brittany Raiford, Southwestern Energy's Director of Investor Relations.

You may begin.

Andrea. you, Thank welcome and and Energy's Quarter Fourth Good Guidance to Call. Earnings XXXX XXXX morning, Southwestern

Joining are Giesler, Clay and Carrell, and me Executive Kurtz, Transportation. Chief Chief today Jason Operating Bill Way, Officer; of Carl Head Chief Officer; and Financial Marketing President Officer;

comments statements Many Before the that and in affecting I'd filed outcomes. involve the these and many sections Commission. are started, discussed Securities this are during detail get to forward-looking point risks make report we that in call beyond and factors of out our statements risk like more of of and control we are and quarterly forward-looking with Exchange annual our reports as uncertainties the

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

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

We everyone. on appreciate Thank and good today. you, Brittany, morning, you us call joining really our

more all reserve generated improved the differentially flow full and progressing free Southwestern we our strategic improved of record cash expect free Our both Energy, We further almost for the flow and metric, XXXX in and intent and achieved that from did $XXX while nearly and expectations during more. quarter free clearly value, strength above million and meaningfully We and We growing was we XXXX. beyond. to generate resilient generated responsible for transformative financial operating flow, is cash and 'XX and to development. reserves natural year gas every year financial and the delivered grow material our company's just now inventory, results in cash fourth core foundation position, independent shareholder a strengthened taken the positions These scale, U.S. few move other leading benefits in bolster strengthen our financial and RSG premier for the past position structure with and to than initiatives. we the proposition. as Southwestern basins. generally, years natural more More strategic improve gas of over actions compelling cost producer are are increased the tangible both into natural The a Energy the our Haynesville Haynesville. our upgrade our the just that, into entry which results makes ESG lay our deliberate capturing important value gas operations, our

our inventory SWN. through Specifically, and global we of economies, and the realized direct greater overall sales expanded lowered reach risk operating deepened our profile access high-quality to optionality set, and opportunity LNG and points market

cycle. value sustainable to commodity the speaks this the of All shareholder for through

Our strategic was fundamentals Haynesville economic gas announcing have first strengthened well-timed. transactions. back entry June, value improving our of into the Since in Haynesville materially, the transaction

trillion its our enterprise differentiates for liquids-rich gas in in company's that PVXX Xx SEC and PVXX reflect cubic basis a production gas the year-end and These the low SWN most have These more is basis balance reserves of resilient that protected optionality years XX reflect to high-margin, at come. and a hydrocarbon basin and XXXX ability high-margin than greater of value. flow inventory peers. our also providing of our market billion, production and immediate value dual reserves current dry Appalachia adding They generate low diversification to free Haynesville from cash are company mentioned feet and clearly shareholders for an previously, value decline value dry economic As than and of our $XX pretax record Haynesville example depth the equivalent. quality reserves

flow generation expanded solidified cash free scale company's has position. increased capacity of the Our further from financial our level

the within our debt range we As achieve retirement detail towards at leverage and range. our we cash flow during expect leverage a target XXXX increasing Xx target free debt to as ended of our apply year X.X to Carl shortly, ratio will to X.X

that have cycle. We disciplined prioritizes repayment strength currently financial protect that a we debt ensure through capital allocation framework our the to

expect shareholders. As in throughout and the that Haynesville we recognizing company's we the in and path twice on debt of our begin of liquidity and where I'd operations, the company's to ongoing for believe and made investment believe are return Appalachia on similar scale returning debt, commodity comprehensive BB+. position business prices operations. capital based flow, to a target most improved path our a has lower X leverage runway, We is grade. our and initiate part increased progress used economic Haynesville could commitment past upgraded ratio gas. maturity of RSG and throughout extend to to launching we our the clear our sourced S&P overall implementing total the program year, our to free like responsibly this to profile. recently, a further in to financial January cash return SWN's We sight comment the range increase the acquisition deliberate company We our further a program. fundamental on approach line our program months, of cost to We we be return capital have projected a our to

across we RSG from the company-wide, more our pad our monitoring By of of our over efforts day peers. certification XXXX, of well-level X those of RSG Bcf Our per rigorous have certified and end basins. differentiates will level production both gross

projects, progressed used ESG annual detailed in Xth we operations, our we other ESG initiatives replacing report. that responsibility 'XX, our in freshwater and the and other all projects of we in corporate including methane Additionally, reduction

execute occur significantly XXXX flow fundamentals generate for execution focused natural our will year our have cash we intent to natural advancing shareholders. our expanded a investor-driven growth. of continue discipline as free is Our commodity It on and economic in producer both Coast cash as financially are drive XX% region, low-carbon more expected We demand the expected strategy, and cash development gas natural gas of power should market from Consolidation that Energy, The to gas natural the continue. should demand delivery our the where company LNG a returns that strong Mexico stronger to responsible will our that operationally support margins same increasing and that by realization U.S. strategic the is and value and support opportunities be people and XX% value gas differentially expected for growth to persistent provide for free supported in and fundamentals. foundational believe flow, and transformed of resilient our future, Gulf and natural should from approximately than natural XXXX demand, the more. also time, is commodity to of given At export Southwestern benefit gas export free demand catalysts market sold. gas and through strategy of well. be

side, solid increasing demand, and for and liquid oil historically growth. NGLs see the low support post-pandemic through structural On we levels moderated storage supply

XXXX I'll Clay we positive over execution macro capture cash more tangible XXXX value to flow operational generation, our provide to from are of results the call growing outlook. of our to delivering the now our accelerating strategy detail scale. free benefits the outlook and While the our on turn is

in our increasing Bill, setting XXXX, Thank and strong with liquids finished good across gas value to natural natural XXXX. gas team The you, operationally highlights from stage assets I'll the deliver XXXX. core in start morning. and some

over to million XXX Haynesville produced liquids-rich, acquired above sales X Bcfe and sales portfolio, placed the in the X fourth X the end Ohio Wells teams XX included West operating dry and fourth since wells XX,XXX from the length planned. good million a as Virginia wells a from high of active Indigo, X,XXX are Haynesville with quarter in an placing approximately lateral wells foot. feet Within $X,XXX costs above-plan to per feet including day Middle and we acquired with of the were September. and Appalachia, During XX quarter and average Haynesville, $XXX continue and operations Utica Bossier these to delivering X In length in Appalachia quarter, The quickly dry XX of across rates assets we production placed strengthen. assets feet. X wells Pennsylvania exceeded to our cubic full commencing gas of we averaging We results guidance our investment sales first the XX in well lateral with to the in capital integrating Haynesville. initial gas start, off

our to maximize acreage core the techniques quality completion return on on position. investment. data in the wells confirms flowback these The optimizing Haynesville underlying our early reservoir Tier encouraging capital X already are We

including expertise, to the Now field by relocating an that drilling opportunity see Southwestern leveraging our high-spec overall to we on the have execution full development operations, resumed improve X region. operational rigs we

team X.XX delivering pressures XX% per increasingly natural a continuing year-end, approximately an of challenged to some updated cost Tcfe of compensate. XXXX, results approximately less above experienced was of high gas, NGLs in to the midpoint to and the towards guidance environment. ways well strong, year efficiently Appalachia identify full capital X% finished invested costs $XXX During below XX% guidance, end deliver the foot. with our more inflationary We full testament of and We but year production comprised our

well how we As we we will time similar well grow business additional operations and believe optimize lowered value Haynesville, we cost in we Appalachia. as our in the to over productivity increased progressed that

Bill proved As billion mentioned value. we SEC company record #XX.X of PV-XX reserves of and Tcfe achieved earlier, XX.X

economic the total reserves, more X,XXX drilling our our additional are years that of core at included locations high-graded pricing. XX XXX inventory at proved activity inventory inventory locations, approximately have undeveloped levels. current locations strip we current Beyond have we Of over than economic these in

with $X capitalized of our to and investment high inflationary integration program. partially includes and have as For billion $XXX of million including single-digit capital scale inflation per $X.X interest includes expense. X.X billion, It capital production a vertical of pressure. Bcfe reaffirming sector broader we also are to day XXXX, maintenance This $XXX mitigated program guidance million

bringing and X quarters. our XX sales. We in will sales, expect roughly XX X our wells to Haynesville, slightly of in prior to activity areas X XX Haynesville. first asset XX% investment be XX with has the XX with program loaded across completion years, capital to Consistent this maintenance in program across the to all base in bringing second with X to total crews X with The the rigs operating to XX and wells similar drilling crews average Appalachia to investment to and both rigs with the of X the completion remainder to with front-end

our across decline the we shallows business. capital maintenance and requirements as efficiency will we operational as deliver forward, reduce anticipate continued our Looking improvements base

capacity future We benefits operational pipeline wins securing Haynesville, execution already seen some LNG on are have commercial to LEAP of focused scale the and on tangible corridor. the the capturing including renegotiations improvements, early the in and

Bill progressed certify several plan earlier, As in sourced of We important we in by year-end. gas gross ESG as production plans Bcf and continuously in over all by XXXX. to March our Appalachia per the initiatives operations. of process across responsibly mentioned certification operated implementing day complete well We began Haynesville to and X monitor

We XX% year reduction in company acquired on XX%. by intensity company's assets practices. also this we the methane the from just almost in X applying reduction a the reduced Montage, by emissions total improvement Included drove

and $XX reduce execution, operational now water XXXX forward vertical in financial by provide our portfolio. leveraging expertise, we'll call our Karl outlook. look development and in future data integration XXXX, used over including includes to and replace do to sourcing, We million to to across delivering the basin analytics, I'll review our continued XXXX million our large-scale and plan Our operations. turn strategic further dual asset investment, of efforts our to so $XX ESG emissions

Good Clay. you, Thank morning.

free appropriately The fourth Bill XXXX financially the transformative, as full the a free As accelerated full at X cash flow year cash year generation, particularly noted brought in million well quarter in of $XXX $XXX the last million. company's Southwestern flow operationally. months to Energy, and our was outset, as the total

ratio also cash of year Xx, our continued grow year-over-year strength. we a In the to notable a We free improvement. materially. ended leverage X.Xx improve with We financial to XXXX, flow expect

expect move As the to that target ratio move of end we into leverage leverage ratio upper of XXXX, our range X.X Xx. through we down to

fund to our reduced incurred more by $XXX Excluding we million in debt debt acquisitions, than XXXX. the our

a than we maturity by more weighted reduced our and Beyond our leverage than notes long-term percentage reducing of ratio the and borrowing to debt, extended our senior average X point. years cost more lowering

increased its liquidity also and first to the access We gas term the last X by capital loan markets company's securing and oil institutional successfully in broadened years. the

profile in XX% giving of next management agreements production hedging that twice financial transaction. repay in reflected will our our hedging LNG liquidity. strength the potential in earnings us in past bring recently That the the release strategy. this BB+. access in cost upgraded a as acquired been bring position and risk to We and S&P notably financial more the that tangible also of of in pursue part Upgrading yesterday's the purposeful of and January incurred to grade the in benefits, assets Our a improved credit such operational believe debt investment business grade. has remains ability greater includes the ratings. GDP. years benefits capital-efficient most return and part a for would our warrant more past for safeguard X lower financial company most Investment to funds months, to market. to strategic X Hedging enterprise order of was hedge to a our core from The global

cash assuming debt by future our cycle. other ensure Going strength price levels to financial XXXX, moderate In hedge and and outlook solid our free million anticipate outlays in would remain to protect objectives. recovering the strategic financial help purposeful ensuring Nonetheless, flow levels, reduction, debt a our constructive capital financial progress current within we allocate to our foundation established will as setting plan the million and and repayment the $XXX framework. we hedging we cash through that to we commodity $XXX of we achieving forward, long-term approximately cost expected our company's

have enterprise. and represents compelling plan implement Bill Southwestern believe ratio noted return target approach opportunity to total our to to that value program. will leverage investment and we Stepping underrepresents we the line ranges, clear sight capitalization of debt as inherent our a achieving of though, finalize As a our back, capital and we market our a

peers depth and enterprise debt more warrant We our As and value and Bill believe recognized, is double underappreciated Xx SEC PV-XX for durability adjusted questions? the current than flow XXXX. than we a our Andrea, our in our will inventory prepared pretax as you. We our value. are recognize quality broader net better deliver please our cash could valuation more free open in market market. more our in with our line you and That remarks. the market for Thank the concludes believe value line

Johnson question first Rice. from come Meade will [Operator Charles Instructions] of Our

And one in to Bill, -- off your -- I bit one simple to the That in XQ me thing and assets Appalachia else that's a wondering, is into about the 'XX. saw caught 'XX ask just that decline program? of Southwest wanted there kind 'XX. that base little question it production there? liquids guys Or Ohio like on that is a was going the you carry as something looks your you going I'm as guys in deemphasizing in

going the the have to our West economically. than economics improve deemphasizing. the Virginia comparable The continued the to optimize and Charles, NGL more liquids rising I in past around not I to We've, now rich really rich. this. to got of liquid-rich It's in are had with years, gas continuing very prices where definitely they capital it's economics. mean condensate

XXXX program a has So programs. more those mix the between of X XX-XX

So a by economics. condensate-rich go the sales, all little of into but less wells driven it's enhanced

to What rich we call and used super-rich.

the a brought came then We really right. fourth December X super-rich just wells online in QX, for And That's timing they but on of completions. it's quarter, XX.

last were online in we days of loaded less couple the front-end we the were and half and year. -- had last had X really second we So the of slightly wells activity in on then come the

also that that we your helpful as Haynesville to the maybe that prepared the Should And is driver plan that Clay. really I maybe is of IP as rates. interpret you quarter question, part for of the wells is those strengthen. brought gas some a from of the And those commented as with you over that #XX is is the Indigo mentioned natural time? does IPs Or to XX rate that inclining back #X going on I stronger got some XX of the the in million that. saying know your then lot questions. that XX Got of across that that day. that there rate I comments went ahead to down they That mean the came that's of you mean the guess, Does wells? it. beat a -- And on detail, continued on -- a appreciate assets? you

okay. That's

really inventory Haynesville performance in beat that for that initially comment that then to portfolio, using the on in the production data right of across the And make improvement seeing we're the first, self-service just there. have in the back. the the performance is gas all around well was them quality down we the of sure these we rates across So about And optimal flow really the we Haynesville further QX, the the to including technical the QX. draw -- points maintenance comment assets, have when wells quality our high some outperforming all and pressure

And greater continue forward. the as degradation without now we able to we're and with to EURs rates the in to rates we're that's or allowing price so incline we're what higher the move to is that well pressure right performance greater environment any that see having commodity seeing

question Neal next of Securities. Dingmann The from comes Truist

talk on, my got I'd just of lot -- Congrats. guess, for about opportunities this, deals, seems of it kind you've My scale, post question I twofold. And now you. you guess Clay deals, question is successful Obviously, is like say. maybe a with could I

yet? numbers there. ahead are even maybe seems development, kind could schedule, about if then going see that might bit it a we And integration, even of talk could like see you And the upside in of not the First, what larger-scale on talk even things that? just potentially we just

Certainly.

finished some reduce same upside, the that cost in we've Appalachia those on by quarter operators for lower costs execution we of had foot. we There's previous online costs. out. and majority a operational those and in were that around will of wells brought used in the use was Haynesville us fourth So cycle the $X,XXX drilled playbook those opportunity for wells in structure to well The times efficient we those

there is move the performance that of in And improvement execution us to as that the and use that front we one so big opportunities Haynesville. of is see through

our been broad have of will in benefit improvements with some some of capacity we're Those we where where commercial gatherers in both business, to the assets. it ways side fully areas into get opportunities commercial are parts going as us increased and in -- there's area key the find able those renegotiate of and negotiate to work Additionally, and the future. on that think in to the the focus move upside of we now I operate XXXX exists, the

-- And development and both both in Williams we suppliers of being, as when companies a places. actually, providers you both about common DTM have in think places, number scale stimulation larger some places, common or the drilling of some well, service in

of to and our have of it our now I lot a here. Appalachia partners competition rigs SWN-owned landed generate rigs as side to with setting drive side contractor performance, X to aspect friendly it see expect saw scale Haynesville think we in we by at tends of another operating bigger a into and the

there? something to your you integration you wanted On add did further comment, have

you to that like timing of and in from you'll all just sort there design, with, running everything that already of getting wondering on Clay, ahead. umbrella things put have upside seems coming all sort had still you had of I'm there just pad that meaning that here sort versus under quarters? you when the out, same you It are are is comfortable there what or are be the others the the

and had at on it. for then right months, GEP we Indigo closed year. end We're of the gaining X-or-so We've on the

done the sharing and yet, work there but that Indigo good on to in some understanding came our product. we go we're not combining that the are year, GEP from resulting And We're And that good integration folks that I for then progress. further in are clearly making for So we see the as and gains. good Appalachia, understanding gaining front things adding the which to of the us work a is think through really we've technical area. we'll of the with insight

there great to forward would Got critical things hedging, more wondering with in have you just size. to the a detail. blocking more on it. now say, you better I around proactively walk And go can the where I opportunities proactive either a on just you financial want floor, now basis, leave on a Carl, see side. don't I'm you then size that a That's much out. bigger Are

I to given Neal, our think really our don't the going cash Well, pretty strength within protect expect change. at we We're good in free framework. have, commodities is spot. this to continue And flow, both financial to our for that to approach hedging for and we're our point, outlook going well-proven I a

agree. I No, would I would agree.

How overall we view: enterprise hedging, manage importantly, but a, risks. how more we our our

Carl hedging hedging overall And risk look at kind we our as key robust. as implied, form basis commodity other is practice, management which of enterprise of any quite both part and and a of

question The Scott Capital Hanold comes of RBC Markets. next from

Do to reason a you balance There is little Haynesville certain way bit look lean Just wondering you want a to decisions. that are to different at other that reasons the in a X go-forward the basis? or investment trigger could going like out tend there for forward? versus Appalachia about you versus if like how on strategic talk things

Right.

certainly in of turn a it's are as are looking the as there true, you're we As model and when overall you involved that investments. imply, levers say, now at number we

is we then inventory all model, maintenance a with and economic the that enterprise, capital rack-and-stack the almost Haynesville program look prioritized point, then across at good another. by X operate in everywhere and our -- competitive across of news that And capital has headline businesses the we We is Appalachia of returns sort a beginning one take returns, bucket. type okay. economics So

where Haynesville place our economics areas traditionally that. every to all the they've operated, operated the where that. of in -- So to that we adjustments we all areas have we traditionally in of comes are support sort Then operating and the we in

time, You a and don't short for over then from move somewhere lot a require perspective, an capitalize want build infrastructure that large a there in midstream midstream to to of area. from your together to surge of period all money into these effect else X and area costs

You higher want keep of little investment into all to bit market the the kind we've economics Haynesville, to a our Certainly, adding position little The see around profile. Coast bit the -- business. balance we some flat not bias the as and see opportunities materially in the But, we a and Haynesville less that. Gulf as across region, those result will the other to plus into it parts of overall an move dictate. been is

piece The that our portfolio. of operate drilling other in this number we of a and own rigs is

move to opportunity back or able There's freedom short-lived we more to condensate because another. competitive capture we thing we together very in volumes occur very a the optionality of we our it whatever, Charles those might for framework we're gas, joining and and not quality have to activities became be would quality build is how shifted trying we acquisitions all flexibility there this our issue, and area that about. and of were means a that all particular the any we over And that could acreage we you're you or when think incredible about lot one these such -- because down is [curtailment], so with that an sets shifted to. make that that assets have in against up an or when that's are in talks bit when flexibility and accretive volume days And flexibility of complement then we're -- natural it invest. We of a I the that COVID that the lot up where a at. and they strong we're this issues of that root cases, in have just

mechanism to path is target And that. are shareholder what it's range. without you down you kind quite point? that think my things follow-up happen being have -- you getting I what your are know quickly of exact specific and you are of And and payout ratios returns a Or a for your your the what the when shareholder before probably And overriding return. accelerating frame us overly of like fine-tune -- bit could about and the But lot at all strategy to this on priorities? discussions

through to than to of the talked there framework both that area, major capital and a that the approach leverage got strength ratio, in expected we growth cycle protect conversation. kind ratio sense capital a less No will repayment you little about cycle. framework. our financial a position ensure that it debt said, it in began are some We've we unknown putting for company It's year. prioritizes reason we're our later and the Yes. as Carl's our just having M&A, range. the top bit end be very and move which on this But commodity of certainly, any for in wanting today. I'll disciplined mine prioritize and leverage We've to when debt We And we currently correct, repeat maintain -- allocation allocation repayment. focus are

put of be a perspective. all cash commodity space. position year, we to When deliberate kinds those ideas that site from approach supportive we we're could is there, the in and prices There's debt we that ratio as about we later we based side -- have out initiate So this in because in path And dividends, that around think a flow, on which there's free environment that a commodity and buybacks. But total a have a clear think return. range. we and highly obviously in, leverage there's clear capital bit our we've a we've capital returns, current operated more

debt in do this model, decisions, kinds economic that our all you a these returns look of maintain And -- well, think result the we safeness, we that we to every of commitments shareholders, will, sustainable. of at the acquisitions with for maintain if of through get the us. our think of then risk As made down, sheet, how about put owning our X made and that all level of of of we strong and or was keep we a we our balance we the

of table. to down So as we go think it's we that X/X no, will But whoever. this options come might after because into a ready of they get or we really to half the whatever, how -- whether on it we the those on into all stay add table that. -- value we're and not I'm not of have when be And will

Scott, a just about objectives. Bill one. for without of what think little value I think again, the main the into it's [Indiscernible] our a details, on shareholders. hit getting creates to bit. few And helpful do

watching the market capital So on the doing we what are and are reacts programs. to return peers closely our how

other that. element that our have the on we've get last we both as capital reasons. to to be And prioritizing, we very well that known The holders be that, is acquisitions also overhang”. into then been for stock some will year, a issued unnatural lot took will of also -- getting thing factor And consideration. That it. X investment “provide grade we'll an in how doing in this goes And more financial the operational to say ratings and credit that on and as a for factor close have forthright return impact we a

The next America. of Bank of John question comes Abbott from

there GeoSouthern, when that Indigo, you when When forward? and in-house. opportunities you've within acquisitions. companies? First And recently X operated you look going I at really back acquired does how differences on are Indigo, being mean sit have at you you learnings the -- assets versus on Haynesville provide look GeoSouthern you GeoSouthern any were those question from those is acquired the

Definitely.

both we highlighted kind the we've in And it's of make the decisions to best where the middle was or wasn't those things going and learnings those been we're think that meet and the that to from of way this versa. X got So way through vice it doing work we other some doing able that around outcome. keep organizations, or

the and that that, both from with all gain was been definitely part wouldn't learnings has there the our integration and intent that to learning be the So understood companies. that same was of,

from -- we I we reinforced and to we but in we learning well, to to benefits of expect would it a as the back timing step M&A, the benefit, and the performance of capture we When knew say you how strategic as we on as the this, them. scale that acquisition think shareholder get approach how of well. framework approach how it's work disciplined I nice the And evaluate, that,

accretive We’re the next. to nature, to in so one the next

set quite is we high bar market of bought into transacted transacted and it. have we've are kind strength lot a fundamental well that so a well of the and -- because we behind And

your a bit. change that out of us see and which it's bit will approach rigor to question so great we reinforces come little that M&A. And It a in to the is

you're to Very, very return gave capital previously, here I to I looking think you. in to go investment it maybe mean future And of return is to capital, credit the sounds think rating? how in want the answer back back thoughtful you credit like a just you very about here but your sort do How of that to Carl, get do think of the to to about I helpful. relation return question for you mean capital question. about When grade. this you rating? the relation

about. capital agencies use X shareholders, is will overall the extent to free care are that can't it cash factors use quantum, there debt. flow to the pay down the John, to to One return you

place, that a clear in that we the of our and prices have is target to and cash ways capital flow. manage we'll into of range, given that be debt return agencies projected very very our will whatever land with that One executable despite commodity put program how we path transparent we believe we

the we can't adjust we comfortable return. that we them quantum with will get So that,

from was element to alluding we I to spoke feedback, to and second get would that is need different us just on return they types agencies of The how capital. view

ongoing more expense, seeing of Some return to more accelerate grade interest be important a their as think types components that and your how that a are on look capital pretty of investment what exactly return would flexible. And like. addresses of return preference type our Hopefully question. of on about of we capital capital factor other judgment in how or delay return seems might plan in commitments different the

Tuohy Noel comes question of Brothers. from next The Parks

certification to gross. of ask the to your day Actually, looking things about. end was one, that you and that A I about couple you talked of certified Bcf the a sort to year, a said of X you're wanted and housekeeping that, have

for So would what the could be -- you translate that that roughly to net to Bcf? X production

about Bcf a X.X Yes, day that production.

or should And net. monitoring it I'll -- and then environment if gross occur, certifying the and the about make and a correcting doesn't care point here. some and actions

when so for well just X all. we And about the we're the really about record, is full and stream, talk it Bcf, it for -- responsible

how we that's them. so And take

opposed that DUC might And course, control to have to as to wonder more if if own materials safe how especially wind inflation it and on I those more anticipate or seeing completion wind ahead. far way, you on do weaker so any Okay. volatility because of side. the of your felt is you in going you about pipe And that rigs, operators if drilling is implications think drilling inflation, maybe environment, that lopsided we the side, inventory control being side. other than the at you for about had price period up Great. say But the and it a a the up all certainly is current lot more that

Yes.

So fuel, main the were Noel, labor. coming then into were steel, and diesel around as year, of the categories inflation tubulars casing, we

strong frac is new As around we've that one proppant. moved coming on the into and is services XXXX,

as then the own there come mute because our have are so rigs, we as also the some And we on rate seeing own with bit year you there us that the fleet. insulation of day drilling that our inflation there having also. then to get into -- mentioned, a of X side, little we we And is and frac

your to group in that's that efficiently As got that that we've DUCs can we on we've things that, right what nice and And so our focus drilled it amount is chain how with supply we get relates can focused and comment, most wells still the like DUCs more occur. have completed of our balance a supply insured the our assets there. to done and really we're have of is we what vertical integration the feel that

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

for points: of about tangible being all why the execution. you the call. couple as somebody capturing got thank call, I and on this company through When invest should think strategic we We're why benefits you, invest First, would been think -- in we've of clear it's scale. the Thank in very I transformed SWN, I've a

centers who We A we a what responsible and have cycle optionality strength and than And portfolio providing It's demand for we've enhanced point and now gas through great It's key do and greater inventory not financial the the attractive market with had. what compelling special me got growing do. we've have risk. diversifying define to high-return a deep project. is are we we SWN. natural It's valuation investment we opportunity. a access

weekend. to have I great call thank you all to the to the I'll it about want we're value We delivering excited that want Thank We So for everyone you. a the XXXX. us. on joining believe in moderator. back turn

now for concluded. now disconnect. may Thank has attending today's presentation, and conference The you you