Occidental Petroleum (OXY) 13 Nov 242024 Q3 Earnings call transcript

Good afternoon, and welcome to Occidental's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jordan Tanner, Vice President of Investor Relations. Please go ahead.

Thank you, Drew. Good afternoon, everyone, and thank you for participating in Occidental's Third Quarter 2024 Earnings Conference Call.

Operations, us Sunil Vicki and Mathew, Officer; Jackson, with Chief President Chief call Richard Officer; Executive Senior President the today Hollub, are and Financial On U.S. Vice President and website. Onshore Resources President, Oil the to Gas and Investors Dillon, refer Vice afternoon, will available President International we Ken Operations. This slides and and Senior section Management; Carbon on of our will this statement includes Slide X that a afternoon. statements call the cautionary on be presentation under The forward-looking made regarding financial measures non-GAAP We'll also few reference today. a the earnings our to over to turn be GAAP found in can Reconciliations call nearest measure release corresponding the the to schedules website. I'll our Vicki. on and now

Thank you, everyone. afternoon, and Jordan, good

[indiscernible] the year. another delivered flow our Despite and teams this consent business highest Our so from far segments. volatility disruptions operational teams our operating of all execution exceptional cash [indiscernible] performance across weather of price quarter commodity

guidance in generate quarter, working plans. In exceeding flow billion fourth testament X capital will reduction results and Oil XXXX our cash we'll quality our of segments give & our also outlook, cover ongoing business Sunil we're of as segments. in as financial on full the well including at are strong integration begin Our Gas by financial the assets. I'll for the results projects before near-term team's our including a our units then enabled of each capabilities our and and dedication of quarter year providing provide our business, third I'll progress team quarter our $X.X and debt us performance to our delivery [indiscernible] commitment today premium and the to each across guidance our capital, our of share update CrownRock. all increases free in third and looking on an from [indiscernible] the program. reviewing [indiscernible] highlights

in high for operations uptime across exceeded was by Basin. our throughout production highest quarterly more end & are even of company higher considering production of outperformance record guidance U.S. Oil there was strong achievement an impressive Gulf the driven a outstanding set the performance new the Gas made that our impacted history. new and segment well the This Our Permian and Mexico. This our production X hurricanes primarily

third XX Basin Midland Midland recently Oxy and geologic that production the teams wells delivering CrownRock teams production Optimum industry excelled our development I'm well entire in more in guidance in highlighted we announce calls, our Our efficient solely came Basin excellence. across a industry-leading expectations in since in OBO acquired assets. our continues an to the of of XX earnings X proud previous X-month wells top cumulative Basin Basin Delaware the In that industry standpoint. Today, X Rockies DJ had [indiscernible] our from drilled top to a are executing XXXX, is XXXX. on we're possible productivity, innovation several our because a and Such manner. onshore pursue which only remarkable exceeding legacy our online performance well in only New highest with Not also of oil achievements and surpassing our X production our benefits. The X-well Mexico results. the [indiscernible] years targeting days. XX perform Basin of in development New assets an notably, Delaware project by Wolfcamp over nonrecurring supplemented drove quarterly being barrels X.X million at Mexico quarter level first in impressive produced instrumental performance the in [indiscernible]

New well infrastructure. third in new development quarter existing Mexico is the drilled For [indiscernible] example, every firm

to secondary this bench returns enhances developments As returns deliver many [indiscernible]. discussed project in in cases, the past, than enable our significantly stronger and,

cycle We year. relative times Permian XX% continue [indiscernible] in to last a as efficiency improvement evidenced drilling by to unconventional

[indiscernible] the a to production dollars drilled reducing first quarter well XX% factor. our only well last These costs hours capital reduced third teams DJ we lateral to by also us year. into allowing accelerate XX Basin, time market, in to successfully costs. the compared turn In X-mile half improvements and of

well make improvements results, into to execution continue teams momentum design with to and Our XXXX. exceptional carry we this expect

along efficiency persistent continued focus in and our margins. well leadership with our our down expenses and team's assets, ultimately is capital enhances performance progression Another on operating lease success, our which cash factor across driving

Over year, the on our per we last well reduced expenses a meaningfully have domestic operating basis.

are high-margin fourth in in result the XX% ground quarterly progress more reduction Looking owned will and steady to several continued our fee including year-over-year barrels in COX These utilization increased factors, rock recently, greater integration portfolio. uptime, of quarter, improvements than low-cost we driven a by [indiscernible]. improved anticipate the

deliver both from to Our technical their to teams and strengths sides, while reducing constructing costs expansion operational continue wells. drive margin industry-leading

in Chemicals to guidance again leveraging the deliver our natural to OxyChem outperformed exceeding our impressive Coast value our disruptive the to midstream quarter, also with while the had company. once Gulf marketing and [indiscernible] price weather. another modestly and businesses. segment third between teams quarter [indiscernible] Gold And locations overcoming Turning gas

a to highly midstream effectively closed us acquisition in expertise our optimize CrownRock culture and bringing transport to on in leadership running in like and as market more demonstrated impressed well safe, both the volumes with people. and strategy, with more share adverse the the Oxy portfolio since successful excited importantly, profitable August. of We've allowed early integration the pleased as third-party the [indiscernible] We're CrownRock manner. and now operations assets of products positions. I'd our Our day-to-day even to stewardship been to addition legacy

operations back retention teams December constructing as have that's and well our identifying now and teams these combined efficiency to and and through as been opportunities incidents very focus enhance no on testament [indiscernible] The CrownRock's There announcement gone talent, the sharing integration centered and it's to Our position, safety, field are best organizational months well. [indiscernible] our dating been professionalism. plan. as combined first the development for safety practices XXXX have of a far significant as

Permian this cover teams asset will next and where cost identifying in year. improvements a Sunil efficiencies. are operational envision a opportunities consistent for our highlight premier to investment As I level later, want few areas we of

also first Oxy's opportunities accelerate evaluating utilization is increase chain and to supply I'll broader The leverage frac construction. time to market one our rates. cost and of to to resources mention reduce [indiscernible] We're of leveraging overall expertise Permian materials

singular We network assets. with in the the past the [indiscernible] and identified business. $XX they these plan assets of have our spoken first associated assets how across integration how million by our they new benefit quarter well and legacy capacity our nearly savings and water in one in water XXXX. about for ample Recently, we've with existing development fit expected can

infrastructure combined position. just many our of opportunity is first the as think this We the shared we leverage across

base performance, see the operability and the this to artificial exceeded improvements third opportunities production production volumes incremental through we assets. August. out stronger-than-anticipated enhance UL production received CrownRock improved Already, expectations [indiscernible]. that and quarter our of also into in Because we We base laid

for BOE our bringing still exit of fourth projecting opportunities to excited ahead, about we assets. are rate per these X,XXX and the day We're now in value our unlock stages teams the together, of [indiscernible]. early existing quarter expect increase to a We're integration, but very achieve new

progressing [indiscernible]. air our an and Turning Capture I'd on be to largest which is capture will direct in – facility provide of world like STRATOS, Air now smoothly our the businesses. Construction to Direct the low-carbon project. update

the As efforts. research help have sequence latest previously and advancements, shared, we have faced construction the of we development integrate STRATOS to

Center, which infusion the coming [indiscernible] given the engineering thoroughly last talent, rise we cycle have impressed performance innovation team carbon anticipated. of STRATOS. an Innovation even [indiscernible] continued year, been with fashion from we technical the that's faster CE innovation, We've breakthroughs Collaboration and of within across design build-out and integrate incredible moving technological our of to engineering than will driving teams

The will increase expenses reactors solid fewer design should feature and reduce contactors new operating reliability. fewer air and which

not to an per disciplined online additional next [indiscernible]. DAC annum tonnes in will tons This XXX,XXX incorporating benefit expect derisk STRATOS bring XXX,XXX phase but with initial in only generates capacity year, for during and builds. the value future We to approach the mid-XXXX

of and milestone This of project the We're award the of increased technology, and U.S. factors site. to also expanded [indiscernible] achieved this million validates our momentous awarding together market $XXX time. regional an potentially will advancing initial of recently facility DAC project carbon accelerate ability of Energy South seeing the combination the DAC Texas technology. A progress further significant this with our million development in drive and a [indiscernible] the the and Department $XXX from the Texas. work to DAC the on up South United them network of our by scale States The in and in commercial in you're is continued now

First, technical teams our projects. [indiscernible] R&D, our intensive investment continue and in innovative

future projects we from Second, them and to STRATOS markets designs. operational enhance applying are leveraging and

the leading to Oxy taking is and of a which as large-scale, believe highly progress driving our in developing voluntary in geologic as We climate can date STRATOS, carbon [indiscernible] markets leading solutions [indiscernible] change. markets. government also developing the a maritime to excited to in to complementary [indiscernible], a support help solidifying climate third-party while the are can markets. We're also demand role and in development goals investment Third, serving demonstrate storage compliance aviation relevant about durable to serve the catalysts and technology, DAC From credit and is DAC STRATOS, that we [indiscernible]. DACs technology improving [indiscernible] the [indiscernible] emerging with scale capital accelerate economic the constructing made position like

[indiscernible], can also providing to will decades. produce to enable to the for COX security for U.S. need X important DAC Equally continue energy resources in as and net oil from needs us the world energy our

country, AI in for increasing our We also emission utilities power. recognize in our low-cost centers the with the that data we pivotal for of power proliferation moment need and a reliable are and especially

contribute for our will provide equity data the investment to to Oxy our for at coming net [indiscernible] sectors believe credits, large-scale in centers scale decades, and solutions power meet we its the to demand increased [indiscernible]. and of our dioxide to renewable growing carbon DAC positioned ability Over

the of our the Holdings debt acquisition. want in we our continuing in with including you debt of over December, share our to $X.X combined program, of progress I some flow in made made strong organic we've of commitment XX cash [indiscernible], sale billion the divestiture recent Progress months In closing repaying [indiscernible]. proportion the of with to the in quarter, a reduction. third CrownRock the West Finally,

the capital repaid X committed closing. now during our provide remain we is Sunil more quarter, billion, of of commitments, plan. and $XX CrownRock to debt principal the within details We our that's fully near-term call and medium-term the guidance just achieving months financial XX% hand $X to fact, which quarter about over of target results, third In to our billion. I'll only third

Thank $X between difference The and adjusted generated an of profit In the Vicki. you, reported reported per diluted quarter, and profit diluted a share. per share of adjusted third we $X.XX profit a by of was primarily loss partner on sale of representing a the the in units on non-operated offset sale U.S. by investor related offshore interest [indiscernible]. largely gain [indiscernible] driven acreage, common

team's working a billion of we all operational quarter $X.X the cash across for we unrestricted and into assets cash. commodity royalty high quarter The $X.X this segments [indiscernible] of volatility. strong of conditions adverse finished free quarter financial performance billion business the flow free reflects As ability capital, with price weather result to and translate in cash third despite strong flow our results generated

success the mentioned, largely CrownRock be the of quarter our the [indiscernible] outperformed in As production new attributed and can newly wells third with acquired inclusive base Vicki asset.

X,XXX to was volumes associated with with [indiscernible]. of the activities, per due associated [indiscernible] [indiscernible] majority day the prior operated uplift of period our off-site performance rated nonrecurring While TOE

lowest approximately rate, [indiscernible] below first third and largely through and an on to $X.XX on catalyst and hurricane-related gas the spend X. In and time, quarter quarter continue operating basis, the marketing marketing our of notably production outperformed in of third these midstream demonstrates domestic our higher-margin This adjusted barrel per In guidance time. impacts, phase. our guidance Permian positive due lease the barrels illustrated to our positions a value million, since generating $XXX Despite Mexico, focus and for activity on unplanned segment, basis, above at on quarter was expenses earnings a the optimizing Slide [indiscernible]. the the downtime XXXX. of are Gulf operational over This the we as out midpoint significant of delivery segment capture

a & by sustained we are last third guidance the we full raising to expectations midpoint fourth improved highlighted, raising million per performance of quarter. of and the our Vicki In As from as of our year a an operational improved of Oil segments of in and business guidance quarter's production fourth Gas, BOE implied are [indiscernible]. outlook total driven performance in quarter with each quarter coupled X.XX result our guidance day, company well [indiscernible], the

guidance CrownRock production quarter, an the our day in This assets. CrownRock Supporting legacy are rate full our per the additional X,XXX XX,XXX outperformance the from [indiscernible] for we assets. have based our increased year which this, BOE includes business our coming both unconventional on of from and fourth

year-to-date fourth [indiscernible]. quarter to excited positive the expect production We [indiscernible] success and and well trends these Mexico's more should are to build the offset on the in our [indiscernible] the production of of across Guld than disruption related ongoing impact portfolio workovers

active the outperformed guidance for disruption the caustic [indiscernible] volumes for and and both increase [indiscernible]. for European uptake an our an disruptions to to reflects year quarter [indiscernible] despite guidance represents in overcome rate with full [indiscernible], declines expected Even EDC $XXX guidance was seasonal OCTG satellite income due in third of million. an soda pricing and segment able to

of midstream result a for guidance year are and a marketing third raising We segment as performance. strong full quarter also our

our used the teams gas quarter, a lesser will is marketing takeaway were benefits capture gas [indiscernible]. for Permian some X quarters fourth natural extent than guidance that the optimization those Our as transportation prior

quarter. guidance to of our of the [indiscernible] a adjusted Additionally, portion our third during our [indiscernible] account after been in ownership state west has Oxy's for

range in our expectations, net line was guided third and we renewed approximately for noncontrolling interest Capital our $X.X of of million spend within [indiscernible]. with XXXX quarter in previously

flow closing, to In a next program year. capital ventures enhance advance to that low and projects businesses cash on an how value. construction generate OPM as our major we share be and expected are we long-term are growth want will for pivotal XXXX X our update shareholder for of year carbon approaching I

As STRATOS, are its well DAC of first construction we the Vicki a [indiscernible]. with kind shared, underway of

represents decrease from XXXX $XXX XXXX net our expect We of be a contribution [indiscernible] noncontrolling capital of This $XXX to $XXX budget our interest million million. guidance approximately million.

and $XXX completion be million reach activity on also activity. in expansion a to well approximately the from for OxyChem XXXX, our progressing this an construction due year $XXX million chemical is budget project remains is expected increase in year. and We of midlines. anticipate Our modernization expansion capital next to to in The track increase

program benefited our In acreage, a anticipate be to levels business, levels our plan stable the Oil maintain last few the activity activity X-rig & as to years. we counter broadly in to [indiscernible]. the Across have Gas from we of similar assets

time-to-market digits along growth in Overall, with Next well accelerated we year's development which [indiscernible] program, feature production delivery to through assets. expect targeted adjustments these production spacing, mid-single from improvements. the

we are evaluating the XXXX the multiple Considering our price scenarios U.S. recent across volatility, of activity commodity rest onshore portfolio.

have higher these As of activity, a proportion observable retained within sharing next short result call. look we cycle of the our at earnings [indiscernible] We quarterly [indiscernible] onshore our to assets. capital U.S. forward

us our XXXX. reduction financial great our emphasized [indiscernible] priorities. on As believe debt our We deleveraging program we Vicki early our update progress, in dedicated to of success the into heading in remain position a

majority balance XXXX maturities, is which the the of We due have second million no half X current and $X.X cover the remaining remaining of unrestricted XXXX cash not our year. the until sufficient of debt debt maturities to are

with for investments our commitment persecute [indiscernible] by and capital maturity position. we our strengthening a will debt guided XXXX in be We are financial strategically further to and comfortable deleveraging

now to I'll the call turn Vicki. back over

Sunil. Thank you,

Before the we like reliable manner. value team, performance to execution to in the the safe move close down recognizing driving operational of through Q&A, by excellence, costs and through and our world-class I'd exceptional delivering

U.S. performance. for new our onshore across performance records industry-leading demonstrate to operations our and continue well We assets, setting

the footprint, integration teams operational enthusiastically with enhance bolstering to our margins. Now assets efficiencies of unlocking our Permian combined are our CrownRock the

of carbon great STRATOS management scale. has we returns. and chemicals and and continues gas, portfolio midstream business. deliver proud EOR achievements our demonstrated Our the our our strong leadership [indiscernible] And delivering Oxy made operations proven through I'm are across low progress to at of making oil capability and project across diversified [indiscernible]

George now Q&A With that, [indiscernible] as open call today the we'll over Richard for And the with for questions. us mentioned, session. Jackson

The from comes Doug Instructions] [Operator first Leggate Research. with Wolfe question

be is think a Obviously, The they CrownRock. seem guys, my me hear you synergies I quite you in The okay. question. out, out outlook. laid showing I hopefully, Sunil really choppy you And you question or the obviously accept is but hope as never extraordinary. operational up. understand performance capital guess to a seems today, with certainly you can can big laid But commodity got I implications. market slow to line Vicki, I'll I little down my decisions there whether around the be And you have guess, nervousness whether growth is, some the which program, the has

So all, want world I'm does oil? more That's numbers macro not of just a the on question. any my that but us could give know you first your to if in need -- us today, you wondering, thoughts give first clearly I don't

My may disposals. on is -- follow-up, I if may, I

of this and of chemicals a you You next obviously $X.XX year. laid out have have options carbon lot spend low billion and also

my I capacity understand the of question guess is? own portfolio [indiscernible] what So to You is trying XX%. we're the deleveraging

You and capital of obviously I the that after roll-off, you've XXXX. own [indiscernible] got assume

your pace just that into and options look us go softer backdrop? of So on what the deleveraging the could give a what commodity perhaps thoughts to as we achieve are like

Thank you, look fundamentals weekly leadership like with look Doug. [indiscernible] impact factors, anything inventory, the all external could our begin at. macro operations to review I'll on we activity We meaning the impact the numbers, basis. prices, supply-demand levels, that team, at macro. the our

say oil predict predicted volatile where past so volatility [indiscernible] in have incredibly And the in ever in have And today, XXXX. we few it's over prices this more there's people seen. [indiscernible] though, years, we than do accurately hard that would prices few situation I that to very prices have

that surplus come and growth Canada, [indiscernible] declining because believe, the than the the U.S. be there's the in believe [indiscernible] has [indiscernible] with we couple and we do rates, take now but along are in for [indiscernible] are excess Russia. And is to right helping today production. if and Brazil in But you growth from that of will a countries XXXX [indiscernible], better U.S. least Brazil, on 'XX the that mitigate wildcards other at current market

that prepared we [indiscernible] decades. to past it's prudent in being not With us be be much very in situation that happened very to us believe and forward said, to for leaning and

area thought done the levels are our of slightly to today. is we've that What -- oil gas plan our some current is keeping we is recommend what in the other which the Board CrownRock activity is and they doing [indiscernible], So to of feel then And is capital conservative. as lowering areas. the in

to we gas rest and those the is just So wouldn't of our easier rig that would activity growing to it activity how along the the assure product But oil a teams plans ramp be [indiscernible], [indiscernible] those of prepared the up. with for maintain always that I Because scenarios steps efficiencies. have portfolio. [indiscernible] plan decrease CrownRock to in than trying ramp down -- to multiple it's you in execute maintain [indiscernible]. next

prices [indiscernible] now. what prices going down talking should strongly up, [indiscernible] would capital that in we're we we they're expect right only which go We about like downwards. beyond some reaction not trigger don't increase would exactly our trend is

So the changes. make they with have the we to have that, opportunity opportunities,

as And during situation. to strongly we reacted pandemic, and that you we did the quickly what saw

But provide So additional $XXX I XXXX will there's to that to better we have time we're no cash the [indiscernible] million doing [indiscernible]. our of now. [indiscernible] as in same it capital would allocate [indiscernible] say

projects the through the feel now in Those steady East, that [indiscernible]. in our they're challenges flow and like looking production [indiscernible] are not as Middle having cash oil volatility appreciated along other high sharing [indiscernible] a that contracts. with gas are [indiscernible] they we as prices

are with macro. we are capital we about the where we're where thinking that's So with That's spend.

first structure. have a to with the capability and ramp down we our working methodical cost approach again, to And

the in details starting to So have on CrownRock, been we've respect [indiscernible]. got to strong With now. those synergies pretty synergies see we're that

question. So that to we to -- just I'll will let want at your stab I take Richard get [indiscernible] deleveraging a point

we you of lots have mentioned, opportunities. As

in the portfolios of Permian largest the one [indiscernible] have We company.

also the you other We mentioned. that have [indiscernible]

and assure levers a have they that things a the the everything have we plan are now. And execute opportunity that everything some the table. we marketing the have lot and into We we'll as of is, on -- can the at I [indiscernible] to to always scenario of future, pull. we look we go And [indiscernible]. have kind you for macro any We

And most the know really, Doug, appreciate glad that from some this be last so from up. a you our on year. the operating the we've in that's talk close. that, Obviously, integration. really Yes, I I'd -- updates gotten I recent means that's going is well bringing been to several team on Richard. start the CrownRock that through questions lot over of of

in led they some that quarter. the in So really brought to the quarter the and third fourth operational performance beat strong

So to Hollub into been of Vicki some very appreciative just to, a synergies few potential of dive the the able that. But and highlight. really as said, teams

we As into X well you our we think some but that we the subsurface spacing. with -- always start -- year, are some next we very for rigs strong to focused horizons look as and program on we understand, know, de we moving a have those we of

think I but seeing space portfolio the Supply we opportunities. bring next that focused improve to looking able be chain with as lot our looking Midland dollar but balanced recovery operational to and the so some the this about they've we're area is to very And because per spent. between another to table, talk get more call, the Basin, we've helped Delaware more in a been the we'll

that white with They're next complete to that XX% board the improvement as we're for that frac to And well highlighted until is unit so call advantage space. targeting they've what the ready of between north frac of of of utilization mobilizing being one bit well. space, sort take the examples white quite we year, our of really time able a in improvement the frac

no adds level does year may one to of DUCs sort any something at what go as like normal that and a on XX due that from barrels XX, really down that So DUC for time cost. you're operations, the carrying to

about, able talked water, that water to a able Curtis for the that Ranch [indiscernible] CrownRock Vicki development [indiscernible] pleased use has Ranch they're nearby example, and that's that to million we're facility there. $XX so So that. The that with South deliver

say final just is then now we best best call, workshops. we're of I what would And into getting really the the the, thing

just operations. brings, valuing certainly overall or And to our so Oxy CrownRock now not what it's -- Oxy team the it's Rock what brings

Midland next So due the they XX% Basin better between as Basin out look best at teams. they're cost year, the of team the these best to looking than kind operations across Midland the synergies improvement of

that's So what meaningful pretty be we outpace we'd and certainly think able to do alone.

The Fargo. from with Roger next comes question Read Wells

right Or -- us Yes. comes go-forward last for are the One a a seeing think you the discussion a then moving Was bit in we it were? structural if is in thing mix don't we the go up noticed you And in right? there? that base change night, is a there's change, I on back drilling lot way about sell-side here? that where program, a the as blip what QX a parts, the to things about and But out. maybe call. downside resource right was the of the I think the have a CrownRock results oil in, the -- term you of of to but kind know some Permian been know

last Roger, out sentences. cut you couple over the of

repeating that. Would it? you mind Sorry about

Yes.

lot oil out had produced forward, And some this you It quarter, was last night was we mix. said the XX%. of I with And XX% that. Permian. the of and quarter about think XX%, should call, well. about of go trying were kind percentage moving about as of a to just sold understand, then as questions the addition and assets results how the there then look discussions just oil of on at this that sell-side with the the I and CrownRock parts Sorry we

Just figure watching it's mean? we're and not small changes all a what to out those trying huge they -- but difference,

Yes. hit bit. Roger, try that I'll to little a

you what 'XX increased start going think moved and to I We to to the that understand things to of for we question, we the moving try I secondary can XX%. and that benches, that's a 'XX, do forward, to take One is are means. especially facilities to script A able to NGLs point slides, think is help our XX%, Delaware. return year-on-year basis. little help I guide what think in those would to benches X we're to. even secondary couple accretive the that, in a us, highlighted with like quite about from we lot existing the But more of on went value mentioned value adding Vicki associated a though there being in I

we're existing infrastructure. doing taking of benches, our that primary of and And so blend secondary that advantage between more

to one, we'll from So a go forward, try help.

on But two, you're see I percentage can quarter what it leveling fourth you that. the think third seeing and and in sort implied off, second of the half in quarter

from a volume oil, hopefully, want So that, helps, and did, strong we I pure oil. what was point other to mention on wanted reiterate on of performance a basis that. the on that we'll do we beat to I that show can the to just Probably the team, one

the overall Permian plus on oil a from that's So X% volume.

that. but the kudos percentages terms to on also So I understand to the the delivery of team in want give

to didn't to a trying production. was total I moving mean And bad in there. It more understand the Yes. imply components just

in going to you're and just Like forward I reduction your will where CapEx I let's be you think obviously, this and debt months, going of But the all think is. do is see if what defined in and the The from and addressed. that balance to success XX sheet? But the have, to kind oil what price curve, what -- terms other leave standpoint? as XX how we change because took of now aside sort has question be goals be the been we of would on that

to going to cash already significant price make have target. billion, in some some have will that's We'll where a be. had some but the flow. that environment, even And in we've still we're believe think still we going over We're do of degustitures. success $X We lower our regardless prices progress XXXX

that. year, debt reduction to is through to what it do continue of target the Our regardless takes our

question from Neil comes next with Sachs. The Goldman Mehta

you're you. had of over decline, and get you've Yes. But about earnings Vicki, just of evolved we're pull the the that's broadly things great? of in on would just the very to while not supply you and one talked expect that perspective I years, continued from exploration. the -- of love from mature for resiliency a resource think the our maybe thinking beats is that your going a more the oil to consistent how not perspective, I a macro emerged lot I next productivity shale to rig declining and couple need industry question but season be then macro macro, but volumes, and guys way just out this I about tapers from U.S. of count, you face has kind the

the for to basins. the we most I declines help believe [indiscernible]. with continue that's within deliver have going today, us larger, increase plateau in because Those Permian, These the contribute to in the peak for to since is the in Basin. where continue efficiency to And where Permian higher benches the the in Midland from other from that will of -- secondary a and X to that the than X will can achieving ultimately [indiscernible] be second Permian develop U.S. to the the going the decline we growth I think, the fourth the years a to and to offset Basin. for from the third basis achieve, next will benches Permian when and we'll think we're that ultimately see Permian growth Delaware I declining other and the we volumes that's a are that term and do basin continue near

X to X to a in our [indiscernible] we're as years and lot there's still lot would to [indiscernible] of out we a said, So be, view, still get because continuing of that be productivity wells completed. remaining

a XXXX, in out [indiscernible] And as near seeing say, going that than Permian prices, we to is, there's moves because think with in XXXX. saw further going less be X growth weaker or -- prices that years, as XXXX what expect I what always, in and I continue. think I in it's to we're to peak term used think [indiscernible] we increase, with that the

it's as for as [indiscernible] basin the still we'll push and it's So have giving continue you to productivity [indiscernible] It's that that keep in Permian increase. indicated, to out. going to mentioned sure. something further on But the

great Unit you about middle year, to it Vicki, as gating And by the get next bringing items are service? what going into the X to DAC and back on the the then critical the path Thanks, that's of the think items, of color. just economics the light And this And then Or your you the about standpoint? view what subsidy really the environment? engineering is business? of from you election, changed focused think in on [indiscernible] around anything of an has way sort the on about of start-up are

I our go going to But the -- one Kenneth our construction. respect take we gas scenario to will the be and to prices milestones first is Middle with of DAC what that East. first, of category for is same business going that I'm chemicals and through see and looking one businesses those then I to weaker business today, going that in he's say as the [indiscernible] and [indiscernible] in us kind think the

to be flow time. value cash a for and a long that is going creator a I for generator think us

have of we're here, we do to of what's long a We work apply -- what standpoint. amazing for do able what we're But the to near very term, encouraging is the commercial first term. support the in DAC and pretty taking as from stacks even innovations happening But that. building to respect with in because advantage

at already curve. We're already improvements cost So in we're for working the X. on opportunities DAC down looking

units we that all believe the the commerciality the and there So these time. stronger getting still borrowing is for do is

excited and where are commerciality. still respect about we're encouraged to we with So

very is well. doing [indiscernible] project DAC

'XX. trends, nearly includes all major equipments ongoing First the online for the checks the capture XXX,XXX XX% by tons come this Central the first done will and completion complete and been processing and additional they should size between have moment. be mechanically which the end which at X there. well 'XX capture now, Good year, processing central as phase the X support areas, the [indiscernible] is of as

the on the take working what our project [indiscernible] any and engineers is we cost team if you XX% recently STRATOS. closer could capacity. Since CE work see to overall, ideas continue [indiscernible] into [indiscernible] than incorporated together, project So the that have both by purchase, ever been

that fewer contractors of you production. instruments savings physical using [indiscernible] the mentioned and the that in by will This also for seen modules, with which much a air can piping, slide, number have Vicki it forward have was see, and in XX% this all a also valves, massive the What going in changes resulted you've On the contactor construction smaller makes earlier [indiscernible] time also the [indiscernible]. been [indiscernible] which eliminated. simpler reactors to lane there's improvement all build the

being see Future able meet XX% in [indiscernible], and could maintenance savings was [indiscernible] support shows adapt the [indiscernible] additional on [indiscernible] to the it the recently, to XX% to you the modifications has with at at team [indiscernible] site [indiscernible] improved, also engineering with procurement been [indiscernible] plan to and past reduced improvements team take XX% to for project. key [indiscernible] these his

are incredibly teams on schedule. So overall, working project the the [indiscernible] that's at

the up then about to election results that follow will And your question impact I'll have. just

understands He States. understands I [indiscernible] what we're the he think President very industry, the in election to security. and our [indiscernible] [indiscernible]. [indiscernible] geopolitical [indiscernible], believe He I doing. the we're for that energy for also independence United positive in that that, with what trying plays part and is our policies. especially energy industry, understands our here it The become he this our And knows the accomplish is how helping understands for [indiscernible] the reality need next

that such [indiscernible] as agreement, million the DAC will with the to $XXX believe per DOE already get as from $XXX million. infrastructure expect for is that Jobs dispersed We the and do be funding [indiscernible]. the our awarded I potential investment So Act the

[indiscernible] continue that because benefit, believe of first [indiscernible] all, but of have bipartisan [indiscernible] companies also We support reservoir. [indiscernible] will to recovery to the additional reserves also [indiscernible]

[indiscernible] with of is to COX that impossible getting [indiscernible], our to you the It's the President possible that so customer. gasoline ample supports well. good as provide a clearly that's what affordable that's best as something that I he, again, to country. supply [indiscernible] of that part use already makes The important way of have oil understands necessary, mentioned, [indiscernible]. for for And Trump

And won't use [indiscernible] [indiscernible]. people helping into I time [indiscernible] to take the process. the that that incremental we the some go don't then again, organic [indiscernible] the here. people understand enough just COX. generates We COX how -- it enough in have don't that But to to have COX oil reservoirs works. understand just don't

we to incremental [indiscernible] is achieve that So necessary need. the

our by to create it to COX. freeway acids initially [indiscernible] DAC of electricity, We'll that net And incremental to oxygen also a ownership captures products. in in power, an generate electricity COX from [indiscernible] to but creates [indiscernible] power combusting emission-free. we'll use throughout some the That drives need the DAC build then [indiscernible] used which part going with solar, COX and be make of of a as from amount ordinate but [indiscernible] to COX and emission recovery water that [indiscernible] determined is can also to is also process.

our but only extend get needs that developing what just to decarbonize [indiscernible]. we're incremental not to So country's really I that to want technologies world help [indiscernible] [indiscernible] the companies them, you of [indiscernible] the to [indiscernible] believe the

pretty we to we that's stand this how [indiscernible]. about going are and with where confident out that's where we're play [indiscernible] So

comes next from The with question Paul Cheng Scotiabank.

first for is think [indiscernible]. I one the

fourth so say, And midpoint your addressed are CapEx that is sure are full about, year to this You higher you the understand it, you doing I better? all year about based [indiscernible] $X.X trying in because previous $XXX because million CapEx, that already doing probably make or but than quarter guidance. billion on [indiscernible] the permit your is

next [indiscernible] still is [indiscernible]. CapEx at for looking I'm If looking year,

$XXX So I this assuming is [indiscernible] that think is incremental. a million

next close you by This And the the the [indiscernible] just in X% at that the something how the is look quarter we if is it back the -- is the ratio. versus quarter triggered about question. And that oil Or -- by driven third like now it? I the third dropped gas second fourth one-off relatively mean, the look gas much permit. I question, ratio at to quarter, all does to is oil So we that that incremental [indiscernible]? second If go quarter. first year? Is want into CapEx look from

by So I and suppose that clarify is all [indiscernible]? correctly. sure want that we maybe understand just to I that driven this make

Okay.

that -- So I your for the driver XXXX. the Paul, the Is year full question, ... understand in was if question that increase Or is first what your correct? correctly for was guidance

what that is CapEx should correspondingly that And incremental . 'XX the also [indiscernible], we assume? from 'XX to

Okay.

CapEx all full question, of incremental yes, [indiscernible]. So year with first your for to the respect the

and be call So million, was in are X going $XXX what earnings we that the had from. the to we last disclosed for is that is operating around months

for the the the what in remarks, to year, the for respect it next we we mentioned $XXX somewhere with capital million range. be next still are expect we like year, million So would and $XXX X-year are in I but would to what my working planning prepared details capital around a program be,

second respect with so right? the was question, And your that on [indiscernible], to

related substantial pretty a to oil in that third cut comparing quarter to Is one-off it's drop the there the that second of quarter in anything is because that a the X%, drop Permian?

help growing start, -- mean, is macro. can other one, Yes, can I Sunil I unconventional. and on Yes, any it really Permian

Rockies in had we the and growth So Permian.

benches a secondary mix of but is production with jump that In for piece in bigger Two, a value so And is cut part I a it. was less significant oil oil one mentioned our that lower that earlier. significantly first of secondary the is better. cut our benches, year

want so to we And continue that. to reinforce

that of different that year. And we Hopefully, year that percentage next growth we're a back period that that extending is unconventional, that of that think going is can sort driving areas to I to really so that helps. to and of of we So you that change over But time, try develop percent. oil in into guide your see may the that. point, in help -- a follow as drive to this half we'll CrownRock in the part understand growth

question next with Scott from Citi. The comes Gruber

couple questions of A here.

does basin in the of is step the 'XX? And Permian, raising could well? with you XX%, in then CrownRock up step correctly. percentage? can the percentage on the to Midland from in figure as zone I Delaware assets, 'XX up Where Just the back development side currently? at look And of mentioned heard you you the the What as XX% you percentage that go that secondary if it

you. Thank Yes.

level think on terms did a the existing overall sort Permian I similar infrastructure percentage of in So think we facilities that. a secondary utilizing I these for and set primary benches, of

expect primary those But depending up, don't bit. I So next perspective, on Obviously, base operating. similar. From rigs we that currently change XX% could down we're our to activity a be year what that I our a for benches. will CrownRock is, what plan at X change final very is adjust with or call really least we that program levels that largely think

be in And secondary benches, we program to together the that so and is put opportunities see really while de-risked operationally. to some that's able been perform we very did

So those we plans. sort of tried operational front of out to in get

would opportunity the to So the improve at that's those change, Wolfcamp [indiscernible], next kind If A B, and next we're on [indiscernible] we looking are that see we for going-in obviously plan of year. but primary the zones year. that,

with The next question comes from JPMorgan Securities. Jayaram Arun

in next you you power that you're spend year what segment? next the I year? a what spending that your given to of as on What mentioned about you'll [indiscernible], normalized $XXX million growth And could thoughts earnings And normalized what you view projects. about do the more CapEx? wanted discuss does some you more CapEx think CapEx if to that does see

[indiscernible] as get less and we to we pipeline were $XXX million projects be [indiscernible] projects the special of a those down about and to with battleground couple what running OxyChem, had. back to just pretty expect we able

project, like, in this in capacity project mid $XXX driven of is cycle primarily completed around part remarks we the and in we XXXX. once by complete later, and respect the earnings expected as and to is expect the [indiscernible]. with around be to And uplift mentioned XX%, assumes Vicki that expansion the the million And around prepared

like just sold the have And the looks you River properties Basin. on question Rockies, helpful. That's that one right. Rockies. disclosure [indiscernible] your the It All like it some looks from in

the sense you've on there? us what a Just thoughts divested powder give exactly future of and

of [indiscernible], card a [indiscernible] we most part we less got the as early in River, and there's value a that obviously, of we that we've So the can on contiguous get the like could [indiscernible] acquisition. felt [indiscernible] part southern Basin the thing, -- the whole River saw we of. But

have to at So always want focused where be and acreage sold and we value. can optimize always where why we possible create looking we think subsurface -- and continuous always that's and we

for that's them north in sold of that that because the to local southern the a better the we of area it's [indiscernible] park part to So part sold We of be develop. basin. able

And value for focus so the future. on for of there. to did a us I have -- situation [indiscernible]. a And think lot the now the win-win going We create we think in it's

question-and-answer interest of the closing In session. this to our for to time, I concludes would any Vicki like the Hollub turn remarks. over back conference

our your Have your you inning thank great questions rest of a you. day.Thank for to want today. I jo and for all call

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

may disconnect. You now