Southwestern Energy (SWN) 3 Nov 232023 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Southwestern Energy's Third Quarter 2023 Earnings Call. [Operator Instructions]. This call is being recorded.

I will now turn the call over to Brittany Raiford, Southwestern Energy's Vice President of Investor Relations.

begin. may You

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

Joining Bill Financial today and Operating Price, me are Vice Transportation. Officer; Carrell, Officer; Senior Carl Chief Clay Giesler, of Chief President Officer; Dennis Way, and Marketing Chief Executive

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

on of differ obligation not reasonable assumptions, Although believe under we we they future developments may Actual based guarantees results materially, or and update them. no are the expectations to are performance. are expressed

some comparisons with measures, also financial which may non-GAAP facilitate refer peers. help We and to periods across

non-GAAP measures found in For be to our release on corresponding earnings can we website. nearest reconciliation any measure our GAAP use, a the

the now call to Bill turn will I Way. over

operating you, financial morning, and We quarter appreciate Brittany, results. joining today to our third Thank us everyone. discuss you good and

team delivering express to thanks Before I'd shareholders quarter. after our for I quarter improvement begin, like business on and to to of our driving my priorities dedicated consistently our and value

price efficiency continued a the debt This We improved we for disciplined of flow more practice. and capital and optimization quarter, go-forward capacity. company's third our our with of through-the-cycle the company hedging productive have underscores believe approach moderate investment. the strategic positioned materially enhanced both and maintaining During capital our realizations free cash we priorities generation reducing

this further demand. activity towards industry-wide this improving positions prices. macro to primarily driven Our year's year encouraged in business shift value LNG differentiated environment, by We've reductions strengthened on discipline and progress by an and capture natural as been we gas the priorities the these response for growing us has

remain where well their from off XX% the the the highs counts Haynesville, beginning down rig counts approximately of in Rig are year, particularly year-to-date.

in strengthening overall to profile Given the giving early confidence wells further view. in into decline the us next of Haynesville, basin production macro Haynesville year, we at production the least expect

surplus activity Mexico suggests Beyond exports weather-adjusted These new dates the over factors day, have Texas which while expect demand of helped storage Bcf with XX to are a By end-of-season day. is and and located slowdown Coast. service XX up growth day, of beginning day in supply per XX% are LNG next to reduced in the is the to end LNG per year. X almost per over LNG X significantly recently a Bcf up year-over-year, Bcf Gulf exports X that to the up dampen we day and Bcf exports grow Bcf Louisiana along exceeding 'XX, power

current to a wave next after in supply expanded acquired LNG markets Gulf one by LNG and go markets assets, acquisitions we access shortly of we exporters. that as capacity of LNG year, portion facilities additional service to the well gas of expected the next positioned service of are capacity already largest natural to into tenets supplier closing. Both strategic advantaged our Haynesville guiding Coast, firm our along Haynesville our With which we of When choice. included to the to of including increased connectivity was to

As year. the demand facilities to we expect throughout new increase ahead LNG to we look XXXX,

high we are However, yet believe incentivize not prices to growth. production strip enough

maintaining debt optionality investment flow cash flexibility top to and this our dynamic, end the priorities progressing Given free continue the target range of optimizing capital of meet dual business. billion and intend towards the to in we while $X.X our

access. flexibility well as unique assured allocation windows commodity basins, Our capital market between asset provides firm as base

the in optimize to continue back 'XX should half back to the add fundamentals will We of investment market support. with optionality

believe SWN commodity capital volatile best sustainably environment approach prudent is to in return and to position will a business to We this shareholders. the managing

'XX Our as hedging strategy through exposure helps XXXX. ensure debt reduction and while commodity upside also move we providing risk

to to Basis gas natural XX% to XX% target of a new risk also when protection entering is a range protection continue We management. commodity of year. key price

sales hedges, the and protecting physical With agreements expect to our proactively basis basis. practice financial continue we of

wider look year. on program the helped our third additional continue periods expect layering protection quarter, basis we differentials, During for basis Appalachia to to hedging next to we and future offset as

plan this free Strategic productive prices development experienced year, commodity off well while successfully With are key by debt sales, resulting to are to the natural 'XX along we a in reduced we have less free in last gas adjustments priorities. from cash flow the in cash with we While highs approximately our enterprise our are than already prices our asset expected proceeds when have progressed flow, capacity. million average maintaining year $X. $XXX noncore

our especially lowering reducing Additionally, continue cost Responsibility We're and leading operational which Corporate proud in helping emissions, in programs our to including Haynesville, team progressed outlined is as initiatives, recently Report. also to our Annual driving and have improvements, XXth our is capital structure. enterprise efficiency our further sustainability released

shareholder look we to of value. XXXX, on forward successes are we 'XX and to well build continue As drive to positioned the sustainable

turn some the over for operational updates. now call I'll Clay to

and Bill, good morning. you, Thank

X oil of gas Bcfe progressing totaled during day XXX The per another consisting third barrels our per day of day quarter XXX,XXX per operational liquids, and team of including over key quarter while barrels XX,XXX of initiatives. Bcf production. delivered Production the strong natural

quarter, in invested sales lateral feet. XX long well more included than $XXX length feet. sales. feet. lateral is in of XX,XXX average West and over an Brooke During XXth record to of Appalachia a lateral of length we lateral wells completed Virginia, This XX,XXX That well to company lengths placed County, XX,XXX million the Appalachia, with with than we placed capital XX wells a producing greater our with In

Ohio in oil Pennsylvania. production approximately West our of Most to and Virginia wells fourth gas our wells liquids-rich which sales day. acreage quarter our sales wells September, during were total liquids-rich per went areas returning quarter, to were this the to we expect XX across Of result in Appalachia X barrels to and XX,XXX in in in dry

sales were approximately interval In Haynesville, X,XXX of we the were X middle Bossier in of X wells and wells to the Haynesville. feet. X average with an the lateral placed in length

We continue X to progress at our drilling in our to laterals case efficiency of date feet. execution and and drilled recently longest approximately XX,XXX gains

below development fourth driven with investment quarter impacts. that efficiency inflation our some for minor in gains the the changes in quarter Capital expectations, some activity program shifted into moderating and came by combined

full ranges. with expected guidance and on track levels previously investment Our program remains activity updated within our year

remain well cost have We're and XXXX deflation. the approximately our in service our process to securing XXXX, already to our of securing we optimistic of currently contracted, ahead development goods plan. way us on half about services putting Looking services and

we're in Overall, reduction the a nearly seeing softer rig XX% service count. oilfield driven by industry-wide market the

market, year. strengthening of be With oil we industry the overall, savings a the believe see moderating costs deflationary down in in should XXXX recent but next expectations we bit,

lower as reduce to Appalachia expect per costs. next $X,XXX see to Haynesville much well the we capture potential to as decline approximately well XX% as continue efficiencies for to costs X% and We foot costs and year

the back deflation to and $X.X level $X activity a expectation our particularly a anticipate half capital gains. offsetting and of similar into range next of billion increased demand, XXXX, LNG billion investment efficiency with Given we for in XXXX and year increasing of

capital half. with typically first resulting the Our production year second in front-end capital of loaded in program in the is higher investment higher half the

view current in Next year before year, we'll additional the strengthen that likely levels stepping expected up also back with our follow as the down the in into production to service. This profile cadence half. QX LNG same that goes production will to during with macro step aligns second

And volatile believe positioned manage the moderate for company We is and activity prices. continue flexibility to we commodity strong exhibit XXXX to beyond. and through well

to turn I'll the Now call over Carl.

Clay. you, Thank

third Consistent down capital with which positive to development stepped modestly flow. front-end generate the free program, investments cash helped quarter, our weighted during

free cash debt a our with the reversals, revolver the of small and plan lot the to down was still to expected, through than typical in hold $X.X a on quarter. We of late increase return billion resulting working after from range expect of either XXXX, in borrowings year-end this As quarter at we more balance debt, to of expect seasonal year-end, current capital which strip with offset continued by flow to debt billion capital end early shareholders. to debt achieve Based complement we which target $X.X XXXX. or level top sustainable our XXXX prices, we ended reduction

on leverage range expect impact leverage to next to to X.Xx price we to fully our X.Xx year. to up X.Xx trailing target the has While EBITDA, our ticked modestly due return

shareholders enterprise including set above program. protection As our reduction In flow are relative preserves our asset for Bill objectives our practice mentioned, free prices. natural been participation. approach implementing cash the the benefit by base breakeven has supported dual-based or operating at gas higher to economic of our This hedging upside key allowing our our while levels, thresholds hedging, also torp to our also debt asymmetric of for

Capitalizing for XX% year pricing, of XXXX, on plan layer to hedging XX% and target using for on predominantly XXXX some protection Based base XXXX the with seen, we X-way we've of the a layered middle volatility for end our range in XX% additional and we strip covers. XXXX. near to the

the call open please questions. Operator, for

[Operator Meade Rice. question with Charles Johnson Instructions] first comes from Today's

Clay light and to comments on what about wanted follow 'XX. 'XX up offered the I in your for on prepared also cadence especially of

say you heard there's to possibility the program activity said, back that And 'XX going front-end-loaded usual we're to I in 'XX. Clay capital if think a I Bill, the warrant. half prices So, add of in have

back mean there's even base roughly case about half year-over-year, guidance those towards bias X that in and the that X front-end-loaded volumes or So possibility think of to right the add I that to rigs rig way a then leading put range. together, high if a you the end program Is would does -- that that is that the perhaps the flat capital year maybe it? of that does the pieces to capital

how capital. later And are traditionally Yes. Clay, invest Yes, we loaded, in we front that's on comment this.

capital expect free both, be 'XX. like estimated or for to the also production end in -- would move priorities that with a and manage year right we as flow levels dual the of through kind the We look able of the again, we reduce cash debt, overall around along to be generation, our be to that at our still to investment but year --

Yes.

within that balance the But well that out growing optionality right, be of XXXX, of very So price in we're shape 'XX, kind of into the constructive program in we the, Charles, positioned way. play tied have advantage priorities we to prices you're XXXX all and earlier that the if year maybe to happens going commodity the company. that take the believe, commodity through will as we

these drive decisions. Economics

of is So being value sure discipline a that making there's lot involved created. in

Clay, But then, wondered about or these off it even if if to you're you could little And a max as left lateral of do also. maybe achievement to us alternatively to give And you from comment talk it's talk XX,XXX could as far lot cars about that of that. productivity in or Appalachia, Obviously, I out the a the about encourages that well. get that lateral XX, further long. you more bigger successfully wonder your And I more see context if try extend to seeing around foot an what a bit there.

others Sure. extending our we We've enhancing and And year team around recognize go costs is laterals, enabled of well of been our economics. in based And land over lowering on does than on position think the the a benefits program well job I earlier the it. maybe this longer. been average we've where really Appalachia, pretty feet to us where laterals this longer good XX,XXX our methodical years, the

production The the a Included initial little feet from and our we wells of these is many X-phase to in to equivalent barrels checks of one County. drill cubic on have of the million It's day we a expect. long well production over a make And is that that was Brooke within in that. close another when condensate. We parameters day. X,XXX a sure this XX balances everything laterals operating example super-rich was

in with a by it longer. And assets. benefits release by depth. economic The company was vertical fleets. to so in our able our days fracked greater rigs. using economic our company Appalachia well to obviously our liquids-rich get integration highly really rig spud XX.X for typical frac foot well was that benefited And over XX,XXX measured well we're drilled The We're going has

their and part [ for XX,XXX for knowledge well of is us been now the given wells high. And And of so included of about that knowledge I is program all are recipe quite XX the application sweat well, the that while. a we've foot length learnings where got working transfer that greater the and ] lateral that comment to has than employees,

comes from next with our Truist. question Donnes And today Bertrand

you doing and Eastern is I'm your bit counting a liquids here, guys it one location pinpointing have some acreage but peers of a like there. of cut looks little now high acreage Guernsey count

address Are large maybe there? you might So do I locations have you a acreage? but year how your things part many on rate? seeing inventory guys similar your portfolio, wanted we run a to just I not count it's or of an expect next know And

Yes.

delivering So we're geology of liquids-rich it's have of minds, indicative it's performance our through and windows about our in the of product continuation Southwest is the the acreage Appalachia, it the liquids-rich of type we've knowledgeable assets. that been -- very area. In well in the of a we some

us. to a surprise So not

large there. with largest position in there. have acreage in position position the liquids-rich are drilling pad highest-yielding a have we but there, Virginia West don't acreage we We a acreage Currently, the our

continues like you very economics And move so we it. have to resilient the It cycles. as price through

That's great. chosen your on very to of almost the And portfolio take market. have you a have second guys just -- creative the LNG seems side. And back then started a it peers the let step one, of pointedly rest some and the guys create getting

change is maybe the there making negotiations evolution you? is pricing that So for more of attractive any out Or changing, that? it there does there are an

I'll Sure. that. take

and carbon our demand we're LNG access energy to supply As the access Coast corridor. strategically for to to the know, Gulf the you our with positioned lower growing

transactions. and you associated We access volatile approach risk we're talks price direct commercial a international with wide a buyers structures. engaged the disciplined But range value of indices. under of to the As actively in variety evaluating portfolio in see maybe with said, more different more we're and to a these certainly gaining taking managing diversification

the think respect, most, if threshold commercial that of It's currently the all, become domestic the duration. we is when And gas So a arrangements off involving transactions effectively priced into risk structured, balanced, international necessary pretty our many have supplier. we transactions push in of of this high I when exposure. internationally to that and complexity on benchmarks have to tools and more gas intention manage for enter size, the available those priced supply not us of our are upstream risks to to

exporters, make grow one supplier addition priced know, think our natural we're As you of arrangements. may largest is In intend Hub-based nonbinding agreements yet. we facilities I approach or currently to opposed slightly HOAs against have we point the Henry the portfolio -- binding potentially this targeting facilities not retain amongst our LNG on that might approach to gas FID of and different to at as post-FID to taking we're a and distinction internationally in considering reached this incremental our transactions may peers with

of And I so on negotiation. as the does that complexity the bar suggested, raise the

And we moving at have why explains approach disciplined will risk into it. enter that the manage our evaluate and when tools you'll we're a pace do the to deal, think know I we So the we're moving.

America. Our Leggate from comes next question with today of Doug Bank

I questions. a hope got of I've couple

Obviously, if down? do you is And deflationary that on much could that there I'm can of was you've a costs. I'll in foot, maybe a moving Is be signaled it a as this But step how as the manner the well One What is in get the I change? in in possible. go you But drop them, cards. curious big capital if reduction to $X,XXX Haynesville, delicate you move? think down. a ask XX% first. can well-designed per further it us The to -- Clay, parts?

combination we longer a and on of what and we've expect reduced continue inflation it's side gains the drilling efficiency to and that is completion achieve is It achieved, of to business. So laterals. it the

going drive think so efficiency to same And that always we the kind used we Appalachia here. those we're we're recipe and to in gains. what And of using that is continue the used we've

be prices got have into the ultra-high keep move that well think some to continue back there the pressure think execution wildcard room to to if gaining would we to against longer then only arena, will we in to The time, play. the jump. in bringing those But down. overall, to from averages the I were but benefiting be efficiency we lengths think room levels. where, It's the keep over can not to commodity And lateral put equal going that I Appalachia, those inflation I to going keep gains. and we're in on costs

any with that book topical. don't of X for betraying is you over will suggesting price and I to by And get I'm level your watch bigger appreciate share secret last time. highest your Clay, the Southwestern you've no interest. in to the confidences obviously the desire watched year, steer Bill, answer, outside think I made of I years M&A

I'm whatever of, especially So role could the frame curious you just M&A method example, you morning. if in think how light this is for Southwestern news see [indiscernible] in in and appropriate, you

Thanks, Doug, that for question.

just I've I to what Haynesville fact term. long and adds acquisitions that that also framework X M&A before, sustainable value think demonstrated said shareholders value well-integrated in well-timed, creating we've well-executed, be is well-timed, evaluated for our should the against And way. adding real, shareholder well-integrated well-executed, as Certainly, the Appalachia that create benefits the the capturing and and It's a value very disciplined by objectives. raises bar met bigger in sustainable question. not those about of that as -- doing your you tangible, the quality. for scale getting It's about

do and so strategic our confidence people, real that got company's M&A execute manner. great demonstrated creation We've proposition. we've our assets, in know-how our value we capabilities, in activity and value given the on So to a

comment also but conversation that's as deal that's or particular on don't our me, you we out those, there thinking. there, know any So out

the you in say consolidation? to see Fair logic

I the Under circumstances of, that spoke yes.

next our today Arun comes question with Jayaram And from JPMorgan.

the which move from to question, is We'll next Hanold RBC. Scott

the longer and lateral in acreage say for pressures those recoveries longer depths to consider Haynesville, it allow of is well we limit where couple two, getting does total What something can of benefits there longer you the on give Marcellus? us look of like configuration. there One, of things. the should at you context the that mentioned had Clay, terms and And of terms a you your of Haynesville, anything the lateral giving just in lengths getting laterals out versus those in number when -- some a a is laterals? the

Definitely.

I So question. I'll there high your be the limits the on area, temperature. Remember, to highest due start second going the Haynesville, with mean that's are producing area in in the returns. NFZ best lateral to length

so I with can't X,XXX live technology and probably And the range, much that current where one than will in we think that's foot an go area X,XXX to longer that.

we which done laterals. doing laterals. trades we of acquisitions from areas benefits into longer configurations that Indigo our acreage some different look then great that the puzzle fill a where Haynesville team of When at where job we in allowed could we And position, also GeoSouthern was a our to the which do can go for longer both acreage has did of nice so fit the these acquisition, piece that

we areas in drill are mentioned Parish, those drilled the Those I XX,XXX right feet. around script, XX,XXX-foot Part Northwest conducive of laterals. to X Northwest our in DeSoto position the acreage were to As

methodical thought and we're lateral we will understand XX,XXX the And think we when foot. in those all that Appalachia, we it in anywhere the progress Haynesville, to parameters well continue going across on just the X,XXX like grow. from I a sure see as range that's be you're did continue to field, our And going so execution approach, to longer. out to lengths making the I think is But

And to started question you is kind the the Understood. Bill of follow-up in some back macro. going of my where --

But but any -- incentivize talked in about of When by about You call talking high that the see early in Do forward the and price the LNG declining pickup step to you then you back XXXX. growth. Haynesville enough 'XX, into time. about generally kind think strip constructive that not exports do end of the a the point this are you in potential picture reflecting in you macro just is big backdrop? think macro, at kind of not

can bit the you us give around of if So of a depth of color kind of some little conversation. that a

on of the oddly when on We take a And convinced one, the 'XX up. Sure. and first constructive half and beyond. day for upside optimistic 'XX that It's market far you I'll Scott. on remain potential thank the the is on cautiously for pricing, validating. half asking Cal-XX of more second

from production growth, possibility That's the optimism we've of we 'XX X.X weather and robust that exports recently we've and alluded LNG to Our the demand strong to, plus Mexico. first storage. as of the in as stems as March the seen much exit rising half winter by slowing power Tcf that for burns you tempered course, with somewhat, could the the forecast seen

could Pass As materialize we demand, and our of than to XXXX, look with expansion Plaquemines schedule likely at the constructive second it's reports expected Corpus Golden half now LNG by ahead informed originally much and Christi project that views both currently with of on for day sooner even the gas in over time clear By late incentivize the the of to horizon. more Bcf start get prices XXXX, demand we higher activity LNG increased XXXX. we and LNG to need a see incremental X pulling

this we've $X.XX, Cal-XX, curve of that's had of anticipation week-on-week the seen, early and been up power with the up Cal-XX deferred by the buying now part I $X.XX, with $X.XX, of and the you've that mentioned. start-up through up XX rally the prompt month LNG $X.XX strong As driven in up facilities the Cal-XX,

deliver globalizes it all who those Coast risk the increased the When greater be. will up, can we find in to especially introduce add Gulf that shift where connectivity U.S. ourselves paradigm a will market premium demand gas and we the reliably the this and volatility, think precipice on you as of for

And our today next question with Sachs. comes Choudhary Umang Goldman from

and rig year if which activity this wondering few a looks year with to was have first I add a follow-up flat production a to plans question. guess you to weighted year-over-year. next was question efficiency pair outlook next bit hold the year prices you to if better. talked can rigs first half about the you gains Charles' little My potential I seen

thought reduction and that the year, that this the that now. with year priorities back to would We're the balance we go-forward where Bill in haven't the on to commodity My be plan, finalized we that are did continue XXXX of all mentioned. Yes. activity in at prices that watch half right and the continuing

all I see pretty think to way year to activity and the to the start plan throughout where billion that back to capital billion $X.X within year. heavy $X think that timing the with But that range and all talking we've move get understand back going winter to it for we're and commodity to the prices been get flat lives the a a I to about through would mean that. much flat place, need pretty that's the between

your and for plans you And would was approach out XX% I hedge you around wondering XXXX, a color you how hedging provide optimism about XX% laid you helpful. can of also any in terms of as have talked then your to follow-up, production. XXXX? to That's if

Absolutely.

on upside. at in move with I our levels structures of allow the an option asymmetrical to is strip, that us at in key that threshold our the us to us and our fixed exposure that downside seen shift economic swaps those think we've now then to the protection Carl touched increasing And or strategy. that us downside to tenet hedging from our available give the important and focus prices lead above price protection away idea earlier, it are

Cal-XX, hedging. that view how So enact beyond inform and to we our will tranche use XX we of next

really of hedging our key both and our levels been this have I debt mean more another risk add lower debt balance sheet commodity that approach trends lower improve and and also have continue. should moderate opportunity management to I'd the to us to has tenet afforded

Annis from Stifel. And question our next today with John comes

driving basis? what first outperform average. you my looking views state share is a continue is And your data, how on basin your For you Can sustainable wells on the this to Haynesville outperformance? think go-forward one, at that meaningfully

Sure.

is I think of standpoint. from production zone the the the from both quality it the that's an driver acreage pressure Fault performance field highest the the part the well and initial is in our shown of southeast and a there, rate has in area forecasted Natchitoches EUR

that's of the other to think that core has a newer the contributor part that though, piece, of so And Haynesville. the sustained I a that performance been is

have the the And parent-child density so issues relationship it that doesn't of Haynesville core issues, has. right now well traditional the the

a highest bottom kind hole new well relatively So it's delivering and of that area, performance. pressure

as mix area so grown to from you've noticed, that in XXXX XX% has of in And wells in percentage our closer about to XX% XXXX.

Makes sense.

For maybe my already above Once road the capital targets mechanisms other towards you looking would debt the return XXXX. repurchase the down consider reached, to follow-up, are program in place?

Yes.

would. it course, Of

value dividend. prove value if sort is I share in share way think can we absolutely, that. particularly sustainably as we we our least flow the of our lower you intrinsic we believe debt, or relative prices But cash said all to put base will, of along, buyback, and that, we'd to generate you we'll to given what the probably you to believe be some will, continue if able -- our reinitiate, free kind at if

be that something would that we would certainly So consider.

from Diamond our And Citi. next comes question Paul at

I'll ask in Haynesville, Noted well a to quick cost stepping next year. one, back expected in Appalachia. reductions X% the XX%

how idea B? you we the of you're year Or how about of think it's just Just how or A about get wanted from that to kind linear thinking should get your through whether to more chunky? trend,

Sure.

that think to prices turn those pricing times the are already should efficiency mix on, as we're that is, it how will come into wells drive we'll continuing prices and gains we've the Haynesville, the with that there's that have been moving been can move we any move there. So starting quarter that line that in be cycle the where with That's we upon going be drilled I happens inflation think commodity at, with we think forecast year, the to seeing costs quarter. first given about higher stays comes there depending keep the and through mix in Well we and able can that down. so or what to where as and the we first if around, in see

is there well overall Appalachia, a Appalachia. our In little differences bit of mix in in

be we not move it's dry between But Utica part should the in reason the year. the in all of number quarters. some just are around the up Ohio our of would also And averaging. wells that think that wells would only at changes because I it show gas that Now have well start one Marcellus mix

Understood.

actually wells that follow-up, more generally, gas about going versus 'XX, kind thinking in are through speaking mix areas just Appalachia. for quick year? to but that about one How guys liquid of the different between Just you choosing

Yes.

be completions out XXXX, Our the of as got benefit liquids thought there than We lower. is materially we we how where gas into that pricing was the there we some year. it added won't came different played when

change. On that moved all to pretty the around it margin, a where was evenly

was that split -- And think we wells of 'XX a and about But Appalachia be there would I going we spending our in liquids-rich change be. is wells more the X I than in be that it size to what in sales what the had don't could toward were capital thinking that of the would roughly towards much. other X/X We're think dry would gas. move -- 'XX. X/X

plan economics drive And level. development we the proposals and a high in come answer apply at strip the against that

comes question JPMorgan. with from next Arun Jayaram Our

me hear you Can now?

morning. Yes. Good

time the charm. second is The

earlier. that Sorry about

to Clay you see on little you his comments a to split I declining moved heard I historical Clay, production wanted a at XXXX. XXX of be maybe I be third I patterns, on mentioned outlook my that to similar -- as if levels if correctly, the could here the of with hair quarter, And bit hair you with splitting would second into consistent fourth how you production and first guide bit is today. just Just the should wanted the the XXX. half is but half year, Bcfe delivered quarter

XXX half XXX? wanted about second the closer to you So the -- see were I you being just the thinking if or to

Yes.

price XQ's about to the from will to that off activity the So our I of answered activity question, year what the when navigate guiding X-month through line to that XXX in And then the way in back, drop spud up, ramp wells, XXX turn up closer Haynesville of we half start we're And is to the kind to you're seeing next which to that to those that's the XXX second cycle. showing in applied you reductions other X- there. back the production as cycle time where a that on up think is we XQ's year.

you I do And helpful. super next flat costs? Any about you're of as meaningful That's mean how of footage CapEx. much year kind the lateral Haynesville pretty kind given think in of Okay. sense reductions more could footage, expecting you

Yes.

be XXX We the order haven't well the finalized average think mix order in can it areas, and all X,XXX But longer of I of yet. lateral length. and both the in that feet to

question with final comes Noel Tuohy our today And Parks from Brothers.

any sort longer there. I I was first understanding apologize accumulated the from of on surprises, if touched acreage to fail those refinement this part learn you've I'm performance out a anything bit this on data? before, data your wondering, more wondering of any wells but little that you just eastern you to as your from

could the that been times to we operationally, can laterals what play. to question, Well, bottom so and as to that low shape mean, properties have space. longer your the learnings we continuing I a if has in hole the we've keeping keep fully as been That's at we in working we've been tools temperature as get run understand can I and trying and on as much been success extend in good some

As varying high to period our would -- before flat acquisition There's was stay the it going evaluation, we what we some they across periods time, part like where it to was thought it be decline. of X performed felt with acreage X months, flat performance, and would it's end. longer original on in a stay for the line relates the to to flat of It do. months X we X, start some well

absorbed we've And keep so overall, kind things we that's as of maybe we're that's go making the that utilizing some learning there. But improvements that to there. forward main

them the that than is alters Is entirely as far flat having period perform far as so some Great. there use as geologically know a chokes about that or others. rate far. at you driven? anything just as is you That interesting you of that longer that Or

Yes.

the is completion prop of biggest effectiveness bottom driver maintaining of and tracks of pressure continuity put that that the well and I the the combination hole think the the and continuity. on we've the the

question-and-answer like this and I'd concludes back remarks. gentlemen, conference ladies session. over to our And closing any to turn the team the management for

and we look way. value to joining to on performance forward today. again shareholder deliver we Thank you as appreciate all on you conversation We continue a sustainable the SWN's for joining it, really

we'll a great You Thanks. to talk all have you. and weekend,

all We Thank thank conference This attending today's call. presentation. you you. today's concludes for

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