Coterra Energy (CTRA) 3 Aug 222022 Q2 Earnings call transcript

Thank you for standing by. My name is Cheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coterra Energy Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Vice you Finance, may Guffey, and and Dan Relations, Investor begin Instructions] President Planning of Analysis [Operator your conference.

and Roemer. second CFO. the Blake conference and Scott Cheryl, joining Also from Tom will on you, good Executive and thank overview and and Sirgo Thank President; CEO you include Coterra an Energy's have Today's Vice quarter call, call. earnings Schroeder, we Jorden, XXXX Todd prepared remarks morning, for President and

your take questions the our prepared will Following we session. during remarks, Q&A

As on statements call, will based we on a today's reminder, make current forward-looking expectations.

reference Additionally, financial some of our comments will non-GAAP measures.

Forward-looking can financial as reconciliations measures be website. With found and presentation, turn release to GAAP in disclaimers provided investor comparable earnings on call our our directly statements Tom. as I'll over to were and that, other which the the of well updated most both

you thank for Dan, and our Thank XXXX all recap. QX today you, are of joining us who

second As you I be our we to earnings Hits were it release, read an from the Stride. headline Its release, describing quarter. Coterra asked would our If write news excellent had

first to big which owners. worked out as of quarter having who results, planned all product production quarterly allocation to great liquids. gas streams: some result the brought shout want organization, field returning forming as gas a give capital third to the well online outstanding and organizational discipline, our execution affirmed a quarter date. ahead on during our during of rock. I these particularly With commitment Coterra, their relentlessly to we wells staff capital our our cash free natural and and We prudent since beat our have are oil, three This was

excellent reservoir was execution performance. solid Our turbocharged by

spacing see to from We and selections continue results completion designs. configurations, landing our zone positive

increased continues to frac be level discuss fleets, factors, activit This we individually. increase. continued Prices a guidance modest as includes It some Inflation cost our was diesel, for combination This a and rigs term item note the to capital move seen to and inflation steel these price in I of You will will any is two increases for sand the hard for year. that a to our commitments also increase fuel, and not has during of that quarter. climb prevailing rates. we to point significant expire headwind. and

rigs. against decided Marcellus, analysis, and activity that where X replaced We of high-performing in rig of with drop provide increase we will a have second incremental called XXXX. to XXXX. as are third quality a final includes optionality prior operational environment momentum drilling us two decision enter we performance. plans a releasing of in an keeping we the the we and adding half amount doubts where modest for comparable This This In rig running the our to back it had could in

program. outstanding basins. years our a has from returns returns our our in We of project It capital investments are since achieving economic been of quality meaningful descriptor One of measure is time. many was the payout of payout each three

been are In global industry achieving projects predrill backstop than XXXX, fooled are safety future and between project a drilling payout months. and six times been In range a are add our commodity has has through that file has, possible a Marcellus environment payout models. which by two Permian prices price times full an short times, that and about lower and in ultimately in a Our where recession, many returns resulted strip we a program. at mirage capital cautious

XXXX, positioned into well ahead Coterra is Looking success. for

debt cash on are generation, all cash to commitments: the of of and flow investment and least growth. deliver. plans under deliver from operations over an repurchases In and Coterra reduction for specific supplemental share to we we program in positioned discuss to promise at flow fashion, the form return intend generates significant XX% prepared not are of mid-single-digit that our we of Although dividends, XXXX, free

also on mission our reduce significantly to relaxed have our are that footprint. emissions not we to pleased We report

on greenhouse flaring gas goals track intensity our and are hit goals, We intensity to methane reduction.

As of XXXX, of flaring. have eliminated all fall routine we

be during quarter, on continue delivery off directly our electrification we also rigs wells electrical make We are our which took grid frac powering in We grid. to goals. X/X XXXX running of Permian fully great drilled electric of on the progress Fully multiyear second power. our fleet by directly distribution will a drilled

Long-term in growing the seeing in significant our Thus has creative combined staff sector, least with operational oil efficiencies demand, around war front, problem and these are the impacts the we the lost from underinvestment the a of response and crisis. in We Washington far, technologies. Europe impacted has partners rebound excellent impactful of those sight have savings, Permian and exacerbated operational within and shortage begun macro natural compression in it. initiatives and The electric and assets These gas which created the a vendor smart, midstream hats fact our fuel energy pivot performance. ricocheted on and timely have are inflation support midst in policymakers our been our to growing finally, and world. to has have that result championing we of can the for global and underwhelming. are of not the off And in who to

Inflation Act, provisions. some encouraged of the are Although recently many its studying we are Reduction by cautiously announced we elements

will Our Scott, the detailed accelerate we walk leadership and world, these we through to the our world. and to rundown completion, we I our to have ability only LNG We will today, so. that get not that, affordable and turn strong nation a We need to infrastructure, can policy. more the have of to energy take will do over to means projects need security responsibility the we do. QX more and free the With it to delivery produce watch capacity provides of of started have results. from unleash years clean, us energy We need pipeline Many reliable, industry which now. should energy the call design that us what who

Thanks, finish Tom. shareholder then with second on briefly touch will updated [guidance]. quarter results, Today, returns I and

quarter, in quarter, capital million cash quarter, with the cash costs During making Coterra cash totaled free which billion drilling up that $XXX by while which up Coterra's the and generated severance totaled million. execution second of $XXX XX% the commodity quarter-over-quarter, Accrued second was billion capital driven XX% totaled million. completion $X.XX for flow included $X.XX expenditures prices. robust total, $XX of of expenditures discretionary flow operational and strong quarter

included totaling $XXX million. losses flow cash free cash the figure hedge Additionally,

day. averaged MBO production day, quarter per volumes per and volumes X.XX volumes total natural oil Second MBoe with Bcf XXX per averaging averaging day XX.X gas

three which positive of As a and Tom increase accelerated high end The times, operational at streams of an performance guidance indicated, the non-operated cycle range. combination our strong efficiencies, second all well were driven by was in quarter productivity production.

realization volumes to Second quarter caused the prior slightly in the line be and in as an of during end have slightly. NGL be turn-in-lines range. One a the guidance lower, wells, fall Basin, natural volumes totaled recovery ethane gas the quarter, our was with note, in This to to net which over whereas percent WTI rejection primarily slightly higher of NGL year. we we Permian XX high were primarily

remainder quarter see We blend company recovery for of quarter. from the The approximately down year. exited of cash, in $X.X the rejection and with billion $X.X the the a expect billion first to of

were on strong During account combining in the second with cash EBITDAX was the quarter, Liquidity its liabilities due to revolver. undrawn our by -- driven at than debt cash statement, position the a $X.X larger-than-usual a Company's usual current net our leverage $X.X stronger large commodity primarily stood assets changes, to billion when change company which had excuse trailing XX just X.Xx. combined at over AR billion me, prices. quarter months ratio flow end

returns Turning being second of XX% of announced through or XX% methods. from delivered three to flow capital. return capital operations. shareholder of return cash flow is We of free The cash quarter totaling

the the First, dividend per remains dividend, industry. we maintained of common $X.XX one common our yields share largest in which

dividend in a dividend first plus and quarter. dividends $X.XX second our announced per in our paid of share our per $X.XX $X.XX we Combined, $X.XX totals share. the up variable from the quarter per paid Second, dividend per share variable base share

XX% dividends cash is cash the total for quarter to free flow. of equal Our

Third, shares number share flow. million during XX amounted Buyback the an second at or of stock per quarter, $XXX price free million we of common average $XX.XX. a $X.XX of repurchased or to cash XX%

repurchased $XXX have Just since original authorization. our shares for XX% of million, buyback $X.XX XX.X we billion four million over our authorization, months utilizing

provide details update. our a repurchase in quarter, full execute have its to and do activity quarter the plan third We so. year intention next on had to quarter's discussed we remain a place, and will within authorization with XXbX-X previously Entering third the track company share of the

dividends In $XXX committed million of announced dividend base of rate come to in weighted possible enhanced of $XX of flow incremental and of or variable buybacks preferred XX-plus in We returning and and share cash a reduction. and interest form percent the retirement future through dividend returns free the X%. the remain of which principal of addition, debt average variable long-term had we conversion approximately debt, million a stock

release production, Lastly, year guidance. we and I guidance. will yesterday discuss unit the afternoon, cost In our full capital updated

production of guidance. year and quarter execution 'XX performance, we raising strong another are Following our full

X% to XXX. XX.X Our to X.XX to Natural X.XX X% per is annual to XXX is is X% And MBO day. guidance day. at BOE the per oil gas midpoint XX.X to up for up up to Bcf

the no be 'XX could high have end of We but guidance our toward turn-in-line change to the range.

to XX% are $X.X XX% is a May. range We now 'XX and year-over-year, estimate XX% XX% up guidance modest $X.X end 'XX above activity. up of to drive expect second billion to year capital by from capital the high increase We previous The billion. of half incremental inflation inflation XX% to our back to investment uptick the in driven increasing full our to

to half big majority of XXXX, 'XX per of for an program inflation locked preliminary Based on second majority While estimates, we rates. we XXXX. have in expect our subject ticket in of to the incremental the remains items our foot dollars market increase the

On noted in rig Tom already in the the the third Marcellus of the half 'XX. activity second increase,

facilities we and increasing our are capital markets. and Additionally, materials high service execution risk impact the minimize of

inflationary to operating we we to continuing and cost pressure GP&T unit G&A LOE, guidance. maintaining relating While our are costs, see are

and production expectations ratio. tax half differentiated lowering proposition. income focus second taxes relatively a on volume drive our operational into forward discipline, our unrelenting on increasing flat. continued we guidance expect now for for are to and we volumes second With capital quarter, deferred the efficiencies to our the return execution summary, be other maximizing value pulling the capital In We expect

Q&A. for As sheets turn success. operator foundational it I for our one in over remains always, maintaining industry will the of that, best balance to back future the With the

first of Instructions] Wai is [Operator question from Your Jeanine Barclays.

My first returns. cash on question is

XX% variable payout XX% XX% You the this a the a free we returned flow very of or know the in official dividend. with calls as base impressive plus more cash quarter, And quarter. last then buybacks And you have sweetener. for framework

And So due. don't remain if you is already have much are sheet, our ballpark XX% balance where forward? coming strong range question debt they good currently, is, a a that to you have XX% going around prices

the our percent. Jeanine, is framework this is Scott Schroeder. Again, XX-plus

If safe higher end comments XX-plus you will at the it's But commitment assumption I of made leading be goal a we XX%. in to day, the of of and how our is the and the most we percent. main the buyback getting the we're done, our that than listen think

you. Understood. Okay. Thank

is question days. a on Our topic second inflation, these

Some surprised been. is Marcellus as folks much the has inflation it a as little seeing are that

on you the the they 'XX or for were for inflation any relative can just any commentary. additional really Permian and and your X, between 'XX? and remarks Marcellus Slide we're dynamics And prepared implications between discuss So looking maybe the helpful, the

it's that over amazing look even everywhere. of is all Hey, at close on casings track in And how the demand rigs and Jeanine. basins, across really the to casing, they U.S. we I'll This When with Blake. one. take they're that hot inflation feel kind we crews,

best pressure to have those they to can can pricing wherever providers basin the service whatever is. the so -- they bring get And

to this contract is, the just year. rolled some in year The those X-mile the differentiating track lateral it's but more with is Permian inflation, in contracts some offsetting Marcellus watch What's specifically the projects Marcellus the in of So just also costs the interesting the timing. off earlier been closely. really operational one, eFrac efficiencies,

So at higher contracts rates. we new went to

the in it be in of So their Permian, whereas took earlier kind year, lumps a later. will that the little

inflation As forward, we everything going far we've know we're built think I as today. that -- in

And so guiding that's we're what to.

of Holt. question Your next Tudor, from is Pickering Matt & Portillo

quarters part that seeing guess, to in a of a TILs changes be the looks the but QX performance results to so terms of and on Permian. of you've learned where the of that I I was we're question front. the one, maybe positive there? outperformance operational move of in Tom, some quick far a couple the well that Just spacing what the two around learnings design to production know timing any And now by outlook related made the driven the you've we maybe forward as you're just on the seeing in

learned kind much wells. we've talked the believe amount -- much Permian Matt, of we We in Well, what recover of drilling -- fewer the about if past. asset of can our we've in by oil same volumes

our we're what spacing. compare drilling spacing is a a in tracking line per significant capital lower to some so And increased we're offsets, areas, as seeing And we're that right unit in on completion widened investment. capital with we we projects as with And our we've our some increase finding energy. recovery efficiency,

We've over great all that of to explore formula in our prepared as success. recovery you a and continue We landing section rock. rocks years, remarks, we're But the I for I done said think, a and have my from in seeing, zones. of lot science good

we're of pleased last the with over we've couple very changes made So the years.

more Great. And know also gas Marcellus, of with the of you to the part commodity combination Marcellus. diversification to a but seven the bit and the so like in Permian to year. back or and then potential shifting the of a value the assets, between seems some I strategic maybe in the of I quite online know of the there's come bit wells unlock Upper half have

Upper Just might that the what for program to any and the forward? curious asset that if insight you've far us you can the how give fairway into continue moving Marcellus on learned extend development so on

it doesn't potential you've It's apply Marcellus to with efficacy known sensors, Marcellus. race kind downhole you've a We've the to as and of a air Upper it's a science the by kind completions. the known us. little look the what developments we're of doing right now and apply results have to be those in our encouraged Marcellus, nice landing seeing exploring But behind as before that production some open very the of and soon curve and conservative steep, learning fun. zone to that of in we which bringing and look some We're in the future. forward project optic applies. high-fiving is get from with a directly kind new want now these is and we got Our start We're Upper pressure ourselves. to encouraged right of kind and multipad fracture We watch fiber what floor the wide we discussing Marcellus very more territory. in We're forward

Your from is next question of Jayaram Arun JPMorgan.

questions appreciate of regarding those. couple really on A your XXXX, thoughts initial

mid-single preliminarily, on digits I wanted mentioned preliminarily it, of call get you and sense per deliver, Scott about kind kind maybe growth your footage. dollar -- to mentioned You how XX%, foot could up maybe of

us footage. great on You gave of details lot of amount guys the a

you What If overall increases three of in the footage? Permian six-rig and anticipate program rigs in kind Marcellus. run just year-over-year in would you a the

it you. Yes. at Well, a of Arun, hope XXXX. I'll that. haven't right plans. doesn't really if'ing And specific give crystallized prepared just that we're that guidance We've We to going answer now. not leave what final got on in I surprise lot

to like I of the detail, we by just your what you more was Shale. It be But the to for delineation a you got that couple suggests doing could No, terms follow-up, Tom, see. you're in results? inventory the -- fact in can lot The what this maybe early online liking do you activity of maybe No. in a my witness. wells Harkey sounds -- lead just intrigued you're that of great characterize put the and some seeing and I trying so gave your context, zone you the what this you're of maybe continue

we terrific. we is very a outstanding think Harkey quarter adds We've the to section. of It's when discussed hydrocarbon of seeing tier talked about inventory. We're very the top Harkey last from it. member five prolific first results past that just our a in years it prolific

Basin, been forgiving but it's also target-rich basin, the environment. you to a of in As wonderful Delaware very me work described it's as a terms just

stands shoulder shoulder upcoming So zones. got of with to Harkey the our best landing a do think we've lot And the years. to we in

Truist Your Securities. next from of Neal is question Dingmann

broader most believe maybe little on more maximum question often or Is shareholder would do you a overall a thinking first use like there wondering potentially free a chance or more year free my flow flow entertain will your cash Tom, cash bit the prudent Cimarex? so? the all I'm is at strategy. just just did remain you that down of line, returns I'm scale next you wondering growth

Well, this. let on home I'll Scott tee and it up bring it

coin things is the is balance Coterra absolutely . on of pristine on said of gives embarrassment almost options. the One sheet, and we flexibility an I've return of great fantastic is have realm. of us things, And nice riches that one the the assets, investment,

famous not the had was haven't face And thinking come through. We very when the can't hit is industry. span also that, live and last tend best Tyson's laid that of where, in "Everybody the plans flexibility in of this Scott? important. be a I a to quote my in I night last we face." in you the that really but me tell till get to our tells plan has career Mike going and world hit uncertain you

have, terms in balance Yes. of well. in a Neil, other what comments maintain We've got leaned would that our on But I we hit it in he that mid-single got to thing digits. of here, to I phenomenal the the the We kind is, Tom we've sheet. flexibility. think flexibility said add

So other same rock, money get kind we less that's in to all to in the a have happening -- because your great are lean the of than towards bit dynamic question and little a outcomes At less we we're there's invest to of better time, already. referenced Tom's able historically.

I think both unless through X, to going So deliver to -- dynamic. to goes end XX you're different have But and quite you going where honestly, a the have it manage you're to to ability if continue up that's the and is this. ability

dividend shareholder maybe on question, second versus allocation or my is again, Tom, return buybacks.

I'm So trying to buybacks. had a your to of just early shares opportunity? that in fell had such qualify mentioned when I'm late you specifically, such get -- just sense others wondering, or opportunistic And mentioned all periods late as like an maybe XX%, around does June

cadence the we Board in Directors, saw of answer slide you that put If question yes. the of that the to our front of is

next question Stifel. is of Michael from Your Scialla

Tom, encouraged of aspects some Inflation Act. Reduction you you were said the by

You also target to mentioned you're methane goals. hit emission on

impact any that fee? the if bill of law, what So anticipate encouraged? the I would can say you you becomes Coterra from guess, on have the bill about methane you aspects And that other

Mike. provisions conform regulations. EPA to in line in the it some conform in ultimately us effect surprised to a as commentary calls we're studying methane know respect some Wall Street lot if to of some the fee, its are this good I form will published, concerning morning that it, requirements And the predate and looks I'll good been aren't With There's like time still current there. really calls Well, new I yet say for for it survives. to that this, commentary. EPA there It the be there's Journal. will of And

going we provision also to there a tried measured evaluating we're be technology, by to and to that's So of -- are a monitoring measurement, how comply we're direct baffling we've and currently. bit intensity a for as There's every in lot that. technologies continuous methane with a

is We haven't address found we think scalable that one to requirement.

to that ultimately a And by gets be intensity X so basin. basin We see. provision and we'll as how wait that implemented, like corporate it the opposed methane do lets

addressing And minimum lot alternative finish a infrastructure of that. And on there's with tax, the commented as I'll are I far that, the concerning. in of bill. the others of As provisions have then know that

Senator survives passage. to And some I think see elements statement strong Manchin it's the that credit bill we that a are how there's on final infrastructure. pretty There to that. wait mentioned confusing a to

rest for wandering coherent, need an like So but and I a be that a to subject, leadership. that's resolute. whole on carefully. more not just approach see. and there's of focused sound on a the the energy see to of The Senate this, like government say government I'd see I'll energy that studying no substitute ball air little Bill. really in leadership one. a still I'd is answer. we'll is know our And We policy We're from this it that

sure. For

seem start going guess, at the you as it you any look you risk policy does hedging what buying does at and probability have cash baking equity how reflect You caused E&P cash a have least do next the your that about appropriate the and become recession. affect market of also to from the I back does into mentioned that's balance market as impact high in the potential kind commodity at balance The that the for be year, heading is? think disconnected global to of to prices, seem think recession, to And look on I fairly and companies forward? of shares. lot economy, a the

Yes, internally. Michael, discussions hedging is our this we're Scott Schroeder. Again, continuing

we We've have big to of some have some to formed, dynamic see we far. And of the covered Coterra As do and so hedging. cash in was don't heavily advantage obviously, the we was in we that. But take of done when that lean that event we balance the opportunities, have, like flows our sheet -- we'll disconnects. on

we'll continue overall but insurance. it's and buying add much In address to see the end, to to that made will our filing prudent protection to You it, like We don't XX-Q the that be have can some it's in profile. that. today, have

of question Bank next Leggate America. Doug is from Your of

run in you to breakeven cash put capital XXXX? and Guys, With I do taxes, that the touch rate the how expect you higher wonder the evolve if you that deck? increase sustaining on capital in could

do one? want take to you Scott, that

page in $XX free is on breakeven the don't have I deck, if Doug, you flow it's here, but $X.XX. Page the cash and number X still at

-- testing to jeopardize to really don't we to level. what that we confident program have it So again, I sustainable down without We're a having stress accomplish. want that very

if I number, I'm can maybe it's with way I'll see this offline assuming are it, a in is it that to get what and but we higher guessing $X.XX? full guess, take And cash ask risked with $XX, for the tax. Dan at taxes Scott, point cash you

It could be XX% to XX% deferred your to taxes, so to going you're But a trend higher. cash taxpayer question between XX% and XX%. is it there,

Not or often whole for just but capital allocation. do you where got my options next of months even does to for over add, put question, that guess Scott. gas-weighted capital? in Marcellus where But on you play a And thanks, I talked relative is Because but depth. think portfolio. today, XX it longer? gas the your six you've about I might your you the guess How sector, maybe thinking how inventory Tom, about is second lot you've I into for

in is portfolio Well, Doug. gas spot observation your our of We generally. on, a lot have do quite

done returns a But are additional said my oil, know, pick in a over and an is really some I the different swings. do the grow as at in out remarks, it's to with bit a we on really very you outstanding opening I've allocation based Marcellus. absolutely second pipelines. on comparable to standpoint. interesting you and gas I mean really current find need gas really how We've economic of opportunity Permian look have and could invested the really from in Marcellus We basin Marcellus price the changes capital blindfold And multiple neck. prolific none. that is some a the oil capital to fairway. the little capital. Basin on the terms over, Delaware on neck and and could As from on, -- of return you standpoint, said with do gas analysis at -- And very allocation returns. I

the geographical like allocation balance. we like the we like revenue and currently So our We as balance stands. it capital

of is Scotiabank. question Your next from Cheng Paul

we doing your the the And much not can over Tom, in to about what's that road there. You Anadarko? asset’s term long are talk portfolio?

what That's So exactly the question. the is game first plan?

talked I of to Anadarko now. in a good Yes. is year, definitive. We're long you one Anadarko been time, Well, we've online we've has phase. But too it's Anadarko And projects The back be pretty the very the early encouraged. tell got excellent rebuilding coming about that and couple we're that will at we're in of of which a that an in fact length a the at flowing frankly, kind it. really We've and inventory. quite this

portfolio. So I'm think going very our is asset see. to Coterra that time, pleased nicely with having what of over owner in we And quite I benefit for

Right.

second The short. is hopefully, one, pretty

the second I you're have more wells Looking third than going quarter, natural at your down, but assume. production guidance for gas in online the quarter, you're sequentially actually to

production? anything that is or coming aware? well the other be So driven chain the lower reasons timing Is the there that we is of should for sequential it on

on timing is in a past where because a you the the on When one little a typically you're purely starve just that we little issue. year, on a it's talked in The and all in the activity, we little you the Marcellus. No. the timing, thing area, impact we're bit Marcellus calendar catch-up year, issue. timing It's a half for doing of well depending a bring have second

but all as timing. some we primarily 'XX it, even out model growth currently look will it's 'XX forward that to be reflected of in and the So and we Marcellus, seeing

Leo question is next from Partners. of Your MKM Mariani

I a just on up wanted here. few to follow of the comments prepared

maybe here in 'XX, about in little So a you bit growing Marcellus 'XX. talked just the

macro some just some there of You're growth last couple years Marcellus gas that be just of kind some the that of next Obviously, expecting? decline quarters. you're around of goal guys well. I'm but part macro that balanced let thinking any as I handful the know this production looks more assuming there presumably may citing comments better the maybe better? there timing, the original gas over for but Is was in kind mix, a macro factors modest of lot play production a and get of an you to

on Well, -- gas. constructive very our we're

I demand, also reawakened particularly it gas, LNG to where in think the comes generation. when play power has most I a watchers exports, are. With addressing think conversation and is, growing to increased the storage climate, critical it power role gas around

I part than question would to natural the think on as answer couple I to a is in probably long, asset. It's is time. bullish we been long we're look we've in quite gas gas. great your great constructive a of we And next Marcellus a more ahead years, the world. on are of say

And Okay. a to any that. think over maybe trying talked just do couple up of about more in producers a follow-up Are takeaway I have Appalachia. little the there's a handful bit I on there on next years? of concerns that guess

you Just some or 'XX wondering there's a there 'XX? at with point could if in water pitch point, think some dips

out I has take yes. than takeaway. mean some has market the which about the industry. why need concerns to growth the support gas say there's always greater is capacity currently deliver we couldn't to unbridled pipelines. of We region Well, away, potential certainly we The a new

Marcellus, Susquehanna six-county on Production currently, we area subregion our what little look down a as it's that's do. peers our grow County, the in kind it amount. a depending we near of of at a the could Now fair is

basis out capacity over taken. bound, question your our would additional some don't have lead high activity would of cause that. do what I we is But to need currently to. But very -- We be to long the We the blowout. grow. we want term, well mindful where deliver to basin to has so to say we're industry takeaway of And want not that some capacity capacity but

just comments any and maybe and can forward? Cabot stand on where of in what Cimarex Okay. in the process you terms that That's of And we going expect helpful. integration

think that want I of to very of is comment I'll Well, right is fun. nature comment which that anything the extremely Probably I things and is And we the do that? Scott, accounting of dropping systems, financials. ball our over do a order lot laggard concerns well. of also. integration financial not to I'm going integration say, would on you But the because organizationally, critical it's But Scott as on the on let having going integrate well. the

one done year. by try the the Sure. the new to people the of get people we're Yes, Leo, still I'd add, to the end integration old again, all is, track the and thing out on hire,

that That So Coterra a is going only the bill the would I of truly clean forward. Energy add. for health 'XX be would thing

next question Brothers. Tuohy Noel from of Parks Your is

just a couple of maybe you expressed had wanted a capacity producers just have thoughts we've Appalachian Coast. if I And wondered And optimism ask, about of the if couple export of on bit that? what I LNG a that? heard additional of so, on any cautious the other to underpinnings East questions. were

Coast East America you imagine, sense. is one. Noel, as there is in just talking there shot we're I'll to you who's to gas the they some mean that Europe. North interesting this And on basin space. lot that I involved projects of mean, in and a got Yes. can and I Blake. the with make take straight everybody anybody a premier out

LNG and that. more an have need day day, we million that existing a with Cove We safely of moved Point through we XXX every deal

deals to talking that some to advance those We're on a that more parties. find we're trying done. get like all help So to and the ball way

Is opinion there ecosystem, reality? think help that financing, of the a budge that make particular or part to whether sort it's might any public you lending environment of first

And can long of made. Tom there's that certainty a just about has echo pipelines I'll it's investments Well, infrastructure. can so list happened. needs and built not the blood industry what get that those that be The said, things

that's So in mind. and center very everyone's front

help projects ways towards happen. some think making a would long those really I there go So

it. second And one. then just Got my

I'm versus which do until Just ones where maybe as materials of as I'm down better services there's you going about minute? sort and thinking have about thinking pin you you components clarity the start what might just on moves maybe environment more and what's labor? to year you think be it's along, last better be to versus XXXX, curious challenging, the headed curious where think harder cost the Just into given visibility they

one, is in at first crews that service if right we focus requires we too. look paramount to on capital take what Yes. and rigs safely now, our Really, we'll And have No, and we our execution. program. that premium the foremost I'll do. order contracts, Blake. It's that's longer-term this is execute that costs when that thing then

that not on when us an we historical lost but high costs. look we at -- is it's each contract new our sign all-time at So

it have leads -- through be 'XX. some into it extended most of the that and us We've just we've close and taken that approach, But more and just we'll so And it, to discussing watching a take not, we go as measured bite we 'XX. a contracts year. of

call questions turn closing further Tom to time. no over are the for remarks. at will Jorden I There this now

thanks, morning. us Well, this for everyone, joining

able to was our pleased to been discipline, We are to cash owners return outstanding to great reaffirm of quarter. commitment our capital and quarter. have a assets. our Hopefully, discussed we've our It

and Coterra do on. So quarters has But we I its to go stride. forward look to finish really updating hit as I'll continuing perform where started, you as

everybody. thanks, So

your This today's participation. concludes call. conference for Thank you

You may now disconnect.