Expand Energy (EXE) 21 Feb 242023 Q4 Earnings call transcript

Good day, and welcome to the Chesapeake Energy's Fourth Quarter and Full Year 2023 Results Conference Call. [Operator Instructions] Please note today's event is being recorded.

I'd now like to turn the conference over to Chris Ayres, Vice President, Investor Relations and Treasurer.

Thank you, Rocco. Good morning, everyone, and thank you for joining our call today to discuss Chesapeake's fourth quarter and full year 2023 financial and operating results. chance presentation our our that a the release website had investor updated we you've to press review and yesterday. Hopefully, posted to

differ will statements, of forecasts, and to that such there forward-looking morning's consist also including including on reliance SEC reference should assumptions cause statements this results call, to required underlying beliefs, will statements. Please our actual factors materially future information, in making During any statements. are duty goals, statements such performance no except Please our update the you from expectations, the we not discussed by to forward-looking existing that of and and a be cannot place our filings. forward-looking statements undertake that and law, regarding recognize as confirmed undue projections factors our number by note identified that press be we release other which and statements,

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

For to overview Nick and measure, the the and today we'll Dell'Osso, Viets. any Singh the on a found give to call teleconference nearest a results website. With on our Mohit reconciliation use can be Q&A. GAAP are which Josh corresponding of Nick up measure, our will brief we non-GAAP then me open

to with So turn now that, thank you Nick. I'll conference over again, the and

for you our call. thank and joining morning, Good

We drilling company strong we're drilling Lower the benefiting year increased continues history to our our difficult cycles. in QX. laterals hydraulics, continue per to XX. in we the longest strategic The gathering peers environment outpace the year, from XX the to in throughout proving strong performance improving had in sustainable a most Haynesville, and our while team basin. by system the another in XX% performance drilled production costs footage In improved of with XX% built X delivered We value execute our drilled day shareholders Marcellus on deliver our XXXX, well to since through pillars the

rate milestones Importantly, to we operational accomplished industry-leading an these incident injury while our X.XX total by XX% recordable improving rate.

include: liquefaction billion. million for agreement with and Additional for to than X of Delfin year greater balance by total year credit our up and agencies to Ford buybacks; an the exiting billion; HOAs JKM cash purchase receiving per to path sales and X a and Gunvor recently linked million securing annum the signing be to highlights exit completing long-term for via tonnes approximately with LNG-ready returning advancing dividends and Eagle shareholders our offtake; from a LNG approximately $X.X $X.X all and of upgrades consideration $XXX

our Turning started the value-driven our by announcing attention Southwestern. XXXX. We with shareholder year to merger

of more Our revenue will accessing product unit combined accelerate mitigating increasing effectively America's the by markets, energy per ultimately the and volatility company sell. we price reach

encouraged growth lower energy for about We world needs. demand the the the and long-term carbon are natural gas, very affordable, reliable,

Today, the market is clearly oversupplied.

to see addition, we cycles that months supply quarterly. In take to while evolve XX demand XX can fluctuates capital

from XXXX are and hedge accordingly responding we we a with will operational our benefit While capital strong plan. position,

day rigs last nearly occurred up will in of having our supply wells Haynesville we and demand. each cycle count by resulting in incremental XX in when frac to our by midyear. We capital positions to to Marcellus capital and January the Bcf have X limiting will believe turn-in-line and capacity in the fourth to minimal beginning productive X we frac X XX% basin in ultimately our and investment. our and outlook February, to crew This cycle production recovers. Ultimately, XX reducing is quarter, quickly in and beginning are X per designed market. us day XX% the we turn-in-lines leaving March limit to today's capacity decisions rigs effectively crews, approximately customers meet of quarter. so per shorten plan the First, that provided drop capital-efficient rigs maintain preliminary we with in ample to supply results capital X response majority building program, demand from DUCs X the plan revised is Under the which already appropriately X return to shorter offer provide market to ensuring with incremental prudent over Bcf Doing to drop

to capacity as Overall, the focus discipline, efficiently generation We capital demonstrates will flow our bringing program is our free building all volatility thrive back we and be put, consistently to positioning our in warrants. company as on the the XXXX production Chesapeake's are today experiencing the cash into while prudent through rebalances consumers approach, is and operational deliver consumer continued demand online Chesapeake demand cycles. Simply XXXX. market shareholders and for built efficiency for strategy

to year. the record updating progress We track our I you operational on and address have efficiencies, balance the returns throughout portfolio, continue pleased We're to and your to questions. reducing risk. demonstrated sheet driving forward maximizing look now capital

Today's Josh first from comes Instructions] [Operator with UBS. question Silverstein

that you another iterations kind of outlook? So the day outlined game for have this rig plan, in that on the came Bcf way, with a you declines of to with what base the other reduction plan count? you just are here. I the guys What function asked a have this start X are guys the wanted up lower -- Or the was the -- this

great question, a It's Josh.

reductions as that progress. production a because had that we're -- that decline seeing is CapEx And today now. impact reason The I that turning business, see oversupplied production we else function want as have think doing is to right doing on to the the the oversupplied. the need anybody of reflects decline the in is to XX in today the value oversupplied is we wells months right that reduce that about is base that is we're that turning and we're stopping production market And receive just wells today. The market we're the really believe fact out would the line as our take industry what So out. you we in long today. for in have an several market we for months we to answer you

And productive so capacity should greater demand it line when market on turn not to oversupplied. is in that think and then quickly. allows is and we the be we there to responsive when hold This us

all And amount it year. We capacity as to X the line be that by market is so just in demand to give X quoted really turned productive the how up if those much Bcf were wells a there a that sense in would responsive as quoted of of production of build we've this is you we end the of quarter. to day

in Now probably realistic would be measured demand in. that We sitting therefore, layer not would the and to we production answer. aggregate in very that's probably volume a respond. would that return be come We back assume But would fashion and some could a would ready measured that those fashion.

it. and given This to seen Got the to interest your respond couple you've over afford rate you'd operate gas past years, environment, way then And the in think wells with just you want natural you a the sheet volatility that. of going forward. in balance price could changes can of prices backlog

you're how thinking curious going I'm about forward. So operating

question. another It's really good

warranted comfortable activity, be considered future lines also is pausing cycle we Really, deliver accelerating feel cadence activity dollars if the here fact we comfortable we're period increase relative the completions doing I all more future would think as We of past when that's the to time would times capital that slowing to and those and extending be should in we're in the deployed. conditions turn-in market those we're times drilling slowing times on flexibility been to shorter the production cycle needed. that spending. a that match have cycle of

and our beyond you if the grow But sit we the X.X maintain like in in neighborhood at proved Bcf business. we change productive the to market really day. then continue add point, in to your flexibility productive capacity could that is designed today. future, capacity be a of And where this So to undersupplied some capital

capital level maintenance consider should $X.X around that billion $X.X You to of billion production. of

low base the that today. presenting business that for the we to allowing market unchanged cause oversupply see a our we're that for just price better which time on it where deliver market to receive need the the production cycle remains that allowing needs to decline today, when our gas. of very times to for it expand And customers we gas. can to hold the would out, a to All We're reduce us and better

comes Meade next Johnson from Our question today Rice. with Charles

TILs. least is ways a building wondering last building I'm can you're this the already of what TILs of years And -- I elaborate online. a go. at actually little line different that couple you've insight just of And of we've the incognita, us a sequence what terra if not what could DUCs but elaborate of questioning. a seen And this the that thinking bit here bit I've spending I least approach is or is but how here, want bit a a -- from out on in given of on you're money new laying but this lot industry, kind versus you it over -- bringing continue from seen recognize also to DUCs on of think along at might several

imagine backfill you you scenario that. I that at so where you work time. still act, ahead me imagine I would you TILs your running you DUCs. but could guys maybe crew give -- online to which But with of a price also then bring when you'll wells the and But completion price bring you you the could wanted got to and are where DUC don't inventory want don't you would the on you'll us a one surprise and online just you scenario actually down expect I just

So, can pieces with dealing you kind you novel that have you're on just the on bit these of how board? elaborate now a

the market. in Today, to the when have But something and the filling we supply next here. this, setting add very close going to way underlying up will levels And paying consistent storage storage storage us try start we with be next may we'll needs have about see into pretty from Charles, situation at gas fall. season not bring the that which or that there is is gas. to the Josh underlying are demand drawing the I'll full thinking and attention past, we is storage the online to we're demand fundamentals, the

can more basis. an we very so has demand is And supply that the there clearly today see than on annualized market

demand we supply that to that we back in grow should the know our better think so And meet in the future. future. We hold will demand

and we will continue we believe in to in the spent, the be We cycle have we efficient that in wells we should have wells confidence that we have have with capital the that, more and cycle.

want perspective reiterate capital wells, markets that as is better sure really future productive times markets, efficient making so at And for continuing allows at that flexibility the the to it's that efficient it's a then better and pretty that into business us optimistic when drilling is production about a but production that delivering those for hold the is capacity, we this are needed. I about can we and are it's we needed to where have for this ready needed, from that it. to gas demand present deliver is

Yes, this Josh. Charles, is

we just gas TILs the gives very optionality we the immediate and comment the other deferred an us is see that be that we're it would that think is when change how going like we thing around activate prudent I on in production markets. structural response to I the about

deferred we that effectively the any that And DUCs. going to and would start after we the so in a then by begin mind anticipate starting But quarter. is some would soon to completions thing associated keep of to production activate we would likely TILs those is activate lag to with one

And TILs so in is we backfill starting do to effectively to the starting prior see that we're quarter. that activate the

by cadence we that up this. offers And of again, So we think it us forward. bit like the going quite really set a flexibility for is

also Or majority with perhaps bit detail. may given higher Got already like versus is like maybe there a the you that's beyond the decline a have And have it in through pause And basis restriction your TILs of on kind my 'XX TILs? part follow-up, deferred already to that But like of than of it. XX% And contributing midstream Nick, a I That's the there then answer guessed. forma having for decline year would looks -- 'XX. us pro great the projects? is little there the just elective wondering, is anything that happened. some some else to I'm in production --

TILs. being No, Charles. Josh the the This up deferred by Really, decline is again. is set

not choosing enter that to You of the material have we're a production amount simply into system.

to And is ultimately decline. that the what's so leading

underlying about QX we on you want of it is think And from so to the what you decline if effectively or operate assets the to QX that basis see year-over-year today. a base

comes TPH. question with Matt Portillo And our next from

Maybe, level, Nick, to the to just I allocation starting capital out the at philosophical back come view wanted a cut just on high here.

Looking could have place, and at in you low looks correct a at decisive been maintenance perspective. very oversupply an capital obviously justified in your from step it a taken on XXXX, that have market hedge book the your help breakeven price like here gas very to you've

Just at curious and out how views how 'XX in adding to about that your the to you the on kind might in how 'XX play on think market return this it as production. team capital back arrived and decision, relates regards of may and to

questions. All great

for our sense day. about how to And and change to the this our attempting One "fix really we shareholders is company assets, think our thinking something view don't cash so we for our prudent really saying to company not that's flow this. are what we as and shareholders. think ability generate what market." that positioned by makes start about market," we just me each manage view our to "fix the we're this We Let is as

day. from each perspective, protection, They're there's you losses. you've a to gains about From to the to capital every financial hedge need mentally and hedges for paper production deliver we they're to tie separate market deployed are available we historically. how the Hedges hedges to no capital. deploy and always decision And that really

because that you day. So way, fundamentals that hedges price said and you you you for another attention should your impacting sell you paying to are from in have not front supply-demand of physical every divorce receive product in the

we XXXX, the we've is we off that today, market it that that made have us throughout XXX% demand. the the until that there market have so recognizing gas looking to the the to today money And today our pretty flexibility on telling need doesn't spent hold knowing higher delivering market and at that productive about is time gas that such a on capacity that decision is clearly having

So do that. we're to happy

of capital reducing we changes prudent is believe scenarios program. really that program today. And fundamentals We changes that about the results about given and certainly run did lot more production. And what a manner capital thought are than to We in to in bigger different the that's today. significant we different see the don't a thought here XXXX we

continues step We natural to comes LNG the expect there capacity in still be incremental gas market a change demand grow for in XXXX as domestically. as to online,

the the supply really Think also supply associated of in past just occurring summer of fact changes it about XX of We're industry comments CapEx lot market. not supply really yet. there's the supply the that and beginning in the with the the still started today. long response Remember in We XX summer. months. capital capital fall XXXX. and saw capital better increases the the of And And That's my I fall as this the XXXX, why XXXX. across think in through is XXXX to reductions a seeing dynamics carried of of the see shown that be by big we results when the with capital until well, haven't last to -- being maximum really that cut referenced up summer as those that of cycle would opening we

the take we is longer capital effect. that market responsive lag attempting long. be today, see to of decision really us to the of do And in is conditions what time a time decisions has a much that knowing we're to So front very CapEx

turning the wells stopping our impact in has economics we immediate an resource. that on for So see line

follow-up Great. then question maybe And Josh. as a for

a I the next the progress when got, Just ways the curious know should and relates get for when from just it's rig thinking XX about might to you've we maybe long pick program, long deferred know then to the it about timing your fair how to outlook turn-in-line. production about to obviously, how I you from your to think fundamentally more ground to the to as base a we how about But start kind of up it might the to on and need the we over the that program rigs to expecting be fleets. TILs. base And months towards XXXX. should what maintenance see XX months X trying frac still But think be program. to of being effectively, back still maintenance to take through thinking level back off. it's hits

Yes, sure. Matt. Thanks,

shifts activity impact bring from are far we We typical maintenance roughly demand add those from you some And rigs is as start way, seeing inventory to X the I the a to kind the months in those you crews from at we start mean, are from equation down you're phase for cycle incremental business thinking about Marcellus production to First rig would is that a be activity. back. level, would about be start I that X the again, and we which of our rig of additional go a to of again, frac all, working the would activate more first. X then today. And structural up actually as X of of clearly time take right, additions, -- us frac TILs to think normal But in any way so we to as Haynesville then the side crews, back down looking in deferred across deplete to the a then total X consider to to to likely and absolutely deferred for would think meaningful rigs completion we working starting something looking to the time, in level getting activate X to then rigs. our would us as our start we begin any we -- to

And comes from Nitin our Kumar question with next Mizuho.

Haynesville with the looks off, I faster? that the better want up not Haynesville, X and across a -- and the declining the balance around have the why that. little roughly both of guess been about it are reduce bit assets? to of allocation like to stays them Appalachia the have came maybe framework, us, I it same. it as maintaining color mix just Nick, you percentages the and Would start this the you're sort Would Just same any to between

pricing keep just that the in of in mind Well, is assets. different both

And today for is market full quite so oversupplied, gas in certainly, a is the in northeast. receiving low storage the when the you're Marcellus quite value

And to that the shortfall year. it we us the changes can separate is news the a the so the do gas If X and apart both is Haynesville. northeast, prudent improved can is what can that by market and Good if to from needed, we in change that change region. of and rest there quickly shows see or close turn-in-lines for pretty basins the is to reduce change something we in that we market

we conditions see So both but just market places similar right flexibility, in maintain we full pretty now.

mentioned the market," And company right this for on for become of follow-up, my road? it. comment size in about know I the inventory that but quarter. to a company the then this "fix bigger size could The is this just second you cannot the right that much Chesapeake? plans, somewhere can't do Southwestern's Got you're deferred TIL but the holding, one you size combined be you down think Or for you're

here. Chesapeake about thinking just We're

next Truist Donnes comes Securities. our with question from And Bert

and there down is of like follow amount dropping rigs DUCs to down limit up Bcf Is prolonged build as ammo? if X the comments. a kind maybe cycle? to if Maybe saw clarify the of would sustained that in previous your see ''XX saved Or of the a immediately wanted start limit we you you cycle? would just one I up amount your we

of out rigs start That part here. taking rationale wanted was we our Josh for Bert, Yes, now. why to

like get inefficient starts You inventory where with it DUC look use point and of certain capital. feel to to a simply

rig then in another that's Marcellus July. rig month next in so why Haynesville and the dropping And in we'll a be the

So consideration that to is crews. absolutely we rigs us think frac a the as for and of capital about allocation

just the -- number sorry, of DUC is production was It limit? a it was clean the at And amount seemed like the nice Or X a limit? Bcf.

kind your if solver know So it that it would rig way or out. was whether many how -- I of the didn't for was play frac the crew

really was we Yes. I going with thought use activate of balance clearly of capital to mean could we what production an looked just forward. meaningful efficient but that at both, a we we amount tried

that there So simply to strike the tried we was a two. balance between

I'm announcement? have similar Makes activity short stop merger And to just hammering amount cash, you that a shift yet had still cash sense. that would to understand the the negative point. in trying buyback some been XQ. free against gears the cut Or then maybe that if XQ, Was activity. kind if due I'll of a in to period? enter there didn't could blackout you even you technically And reconcile being flow

we XXXX. Look, throughout got once our merger to that the really comfortable deep discussions, were buyback we had activity Yes. pause. into Obviously, executing

activity transaction We pending able restart like to a have out are while there. merger not the we that

look we But felt back through in in I'd engaged statement and end of of if when year. the that an And weren't we just robust, say we the discussions, we forward about remind a can to and some be equity, X% good day. pretty stock So in probably to had buybacks buying back number. buy continued would and we're that fair return -- to that stock that XXXX, future, it's inclusive we those to to have we'll the I dividends guess you

with America. Doug from Bank comes Leggate And our next question of

don't to to self, Star X. hit forget Note

to. up this industry something to late think this I rest taking Sorry, gas just is attention stocks prices like I the say want navigate opened. XX%. are message just the are of up, strong gas could The attendance. pay Nick, markets leadership the the how about on all and to

done well on that. So

of question My related. kind X things is

the the you of still this are But at If the -- capacity place by add X look $X.X a with a way in I it, XX% of putting X spending those should simplistically decline. way I or much is year, Bcf exit at together, I spare billion to a X.X you're it day the say, year. look What you First, numbers your am rate, level, versus the -- call doing lower you're your X but of you back but it pretty doing kind -- capital tell maintenance what X.X is to substantially X.X. X.X plus us it, you're or Bcf, you're with production, number it I end missing?

level, I need activity, normal XX get ultimately rigs to the the say, mean, Haynesville at getting Marcellus. back to between Yes, on XX cadence completing, I back X wells which a in you're think of key X month that, I includes a to then fourth the assuming the back on element to to all having and quarter maintenance then and X we to order Doug, X.X pretty and to again, that and production that is comes mean in sustain and of

the a So can then in to we to need forward. deploying capital at is going we there key and order production back, maintenance that level be support the add the

Okay.

we capital gone? is now implicit that So there's in sustaining think that Eagle Ford reset an shouldn't

we don't that. no, No, see

right. All Okay.

Okay. That's helpful.

across add, drilled good that see in our to both did in opening We we're efficiencies wells would had capital record I say the we Marcellus and assets. some Doug, continuing Haynesville. the comments

assets. make or reduce across you find when efficiencies that these generally, our real progress. capital we when to activity continue focus And times We you on

our from forward improve effectiveness given at maximum at possible overall productivity we're looking continuing for XXXX another strong so of online per standpoint, completions drilling, bringing to lowest to capital efficiency that being a cost. cost of year the our our wells pace the location and for very And stage

Very company. to point. Okay. Southwestern, the want but know would strategy you for presumably, don't be And Fair the clear, obviously, I combined this Nick. talk about

again, best making capital productive Well, the to has for merger. in at our can decisions the capacity allocation simply mean, about we this the do shareholders. we our see think making looking is conditions just This of decisions we for today, front make when I nothing for market we us, year, with have it the we're

strategy a we production storage a use would look and hope the concept way company the that see time storage and a much to be growing deployed a to you if demand. the that base the balance use would a we can is with available in gas. turn-in-line in cadence But considering market forward there the opportunities. you in the step large for those our us that sheet think Now available We that very I to could strong change future, was by get basically demand XXXX, have is more

us. market We will most the to a a can can in the lowest future possibly we needs that to be quickly position we gas continue efficient, it. to for We cost to deliver as the market as think that's more likely

can you a this, clear. one. speak to to Again, extent Nick. My Very quick is the follow-up

should FTC had haven't an a request, say. FTC request, You second I

second quarter integration planning? going going any that that ahead on You're If the does probably that impact does you're question still on assume a second to go in one My market, at is, we talking have would request. FTC about close. else look anyway? notionally Or everything get

into weeds this well integration No. of point. We're at the planning

to tremendous work on, very We amount busy. have a

up have working things We the business have how and all that all a the organizational teams that of think the been set pro all forma plan you systems, IT through to for. processes, structure, about

us bother we us quick will in integration longer, distract takes the We that integration. close. let well successful be things or any If ready on for We're from an can work standpoint. it a continue We way. work won't into to a for required

Diamond from today Citi. with question comes And our Paul next

think TILs. whether deferred type operational just anticipate a kind from those you one increased of type on completed Just bleed looking side those the more any timed different Do wells quick on saturation. the maybe movement increased of it's normally any guys pressure should normally about the just potential or How we curves curves, wells? and

No, these well We've decade. over operating been we for a assets don't.

defer some case, had water situation And in the we of being years, experience seen completions lot this we've and dive have the defer we see where TILs. where into so And to this a to in simply the benefits actually, through we reservoir. a and,

the gas which, course, productivity, And operating we reactivate is water as of start we so production less see cost to production, similar standpoint. from beneficial an

we no, not anticipate change type any So curves. do to

back remarks. kind from just one the prepared of on circling And comments the Understood. of

talked cost just Marcellus. XX% You a about improvement in well

Just things of how how how thinking you bone were there's for to -- progression whether out what meat improve much internal there? guys' on or see the wanted target more much more your I is the about can guess you that,

starting Paul. I the an start the XX% off improvement in efficiencies. show there We capturing mover some mean, year starting day. across fourth the Yes, elements being that, biggest OCTG to per has footage we up for in a come quarter, which job done the side, top are on On the the to quoted XX%. in with deflationary of our teams cost us this unbelievable company, see sure, have whole around really

So we tailwind coming do year. think there's some the into

up XX% see here. start be improvements, laterals, is about extended I've we that as levels. in last which around better right which around from just to We is And expectation year-over-year guided end to the were And We're anticipating still or and to that quoted year-over-year XX% up X% efficiencies kind Marcellus that feel pretty so cost year of good showing see now. beyond to combination get well. costs We a of system. to X% that deflation, be deflation execution we going the at of XX% we a to about continue the my

Scialla Michael Stephens. from comes question at next Our

given change Nick, that could how wouldn't And quarter. you do quickly are per you it something anticipating, anything you take that it less demand get Bcf a you're the X Or per full there? you any day bring mentioned day in if about is need constraints step back bring that that? online? any the X in probably or than you be quarter? Bcf Does there thinking infill But to

just to planning water. is gathering as coming start and systems logistics the to There's gas this It's some into operational Yes. Mike, considerations managing reactivate going gas, we be Josh. simply around, production.

matter a weeks, production. remind of basins. months market not month, we -- over reactivate it's so in be so the think very course you to They to I'd dynamics. of we're And -- monitoring we markets start are a have say, They just each quarter, But going we think can that weeks, that of the different over different. obviously the if or

start could may TILs area to and the it other that not phase that be one with behind. so in in we lagging And be

I it. well prepared so are to anxious just number do what And they to think teams there's type of manage activity but and considerations, of with this the see a

that. Understood. And a just follow-up to

pipelines are into come that With need volumes momentum keep you have, other there the commitments play reduction with to will eye any or an on? you in that any

Mohit. is this Mike,

the think is the way there, you day committed volumes So should about would essentially that that XXX pipelines. existing million a pipeline, have from we volumes which is read momentum we out

we not growing volume is flow just network. are this that's volumes that a into. moving the So pipeline And path and around altering the on

it we So put us constrain to any how with really restrictions grow us it. or doesn't on regards

worry that constraint. really shouldn't about So you

Ati from comes question Goldman Sachs. And our Modak next with

for provide color is deleveraging on there any means retain Just flow as you paying would cash down you can sheet. given and that I like through to But have balance cash minimum thinking this the are about is cash the free on year a the you strip year. curious plan, know you how what you where go if the debt?

start would a target. here. company, add to and may this then that reiterate just Nick. have I'll is more I we don't Yes. reduction stand-alone Mohit a have debt as Ati,

all comfortable very, decisions very as we're balance decisions about we being the have, made. without we're with and so the frankly, think these we strong very And and XXXX of plan, sheet making our with

pro That we be debt for focused close forma reduction. the on will very said,

consolidator maintain today, balance a and having expect our able center balance find in capital very that our deliver and be top with cycles, with front see a year, the these something strong sheet is to through priority strategy a for to absolutely we're strong relates on a we're to be cadence be the being conditions. this of company of to have very to to we we're we ourselves market a It we regardless reasons and context sheet. this the which be how production position in efficient the of in to showing all One able Southwestern flexibility directing merger will

cash coupled a It's this on Ati, that only hedge we would Mohit. a is billion of have pretty balance with book very hand. is thing add that to sheet. The I strong strong $X.X and

So pretty from are you which the start up. at we no debt there's that looking when the of feel near-term coming view, of a then leverage also, point And comfortable. maturity profile we maturities have so

once where comfortable as with slightly we have different we'll post So as Nick close approach. are pretty Southwestern, a said, with we are. we company, a then And stand-alone are

could the you've makes year? production about That going reduction, like the there should through how step with the steady. then It but And of help given, sounds also cadence color it. to the guidance provide us of it think the Haynesville Got production activity we be a a And any quarterly Appalachia be the understand sense. then and assets. rest it's can between what or is change if steady you and cadence the

address Again, at of point, dynamics that's drilling completions. market wells structures the assets to that cost going activating the there's that's on second guide or different between of just each kind ultimate Really, restart undetermined. we different just Maybe this have how Yes. areas. question decision first. Each

have in XX as XX cadence, far those. stated the XX we turned for that again, As We've we'll year. turn-in-lines line the production to of already

at with that that Marcellus above kind as 'XX And equating And of quarter-over-quarter so just and see under corporate 'XX, to level are of result, XX% anticipating QX a decline. being Haynesville we slightly we QX of look we under as to XX%. being at slightly a

decline. So a steady be it will pretty

Phillips final with Johnston question comes Capital our from One. today And

comments. appreciate I your

really speak Southwestern. can't for You

impact closes? Is when the pro of it the timing housekeeping there to -- when a around that deal. from perspective, guidance wondering guys you Just a is probably that forma includes provide the plan

that's think Phillips. I a good safe assumption,

might Okay. And the you administrations front the thoughts then, on all the what long-term hear your Nick, curious for on think I'd market? mean gas to just LNG that and be high-level

political market. view on underlying that's the the challenges efficient challenges. to gas best answer, based instability from to most natural really gas natural long-term the around just gas optimistic from concerns. on especially U.S. really still broadly, The access energy climate in to is are come And challenges or energy supply come And from We answer supply concerns, answer the come the they shortages that best is limited the natural all those world. the is of they gas

answer As very a review result, we think find permitting for that strong the ultimately administration as here. need the they approvals a will

that this time. due We expect as on in we be positively and it we will expect see that, will move seen

unfortunate. I think it's

for unfortunate those merits pause quickly think things need as of economy I is the need incremental energy and get can not that those that little, U.S. that the good gas, up not parts by and it's be will for we in the as incremental all which This and that be slow the great from of they it a it. approvals again but down export taken confidence will have seeking are back will future. seen LNG

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

others. the much than company market in from little demand market think for near-term today, for that of We're that supply Rocco. think well we've long-term position Thanks, it in Really the everybody's the natural time broadly which that. to seen and a challenge today. natural and we're been appreciate with positive positioned seen is the different think as in. is And we a really oversupply approach market. about for alignment. Okay. very is addresses we know and look a aligning bit very our able associated We in the gas gas the excited XXXX We we're structurally do that that and ultimate past a we've recovery a We forward to

road of to today, a talk we'll and continuing We'll engaging all very in be conferences So year. the Thanks number you. of for much to look look events week the soon. forward again and the time different X with your this weeks to next to forward discuss at out throughout on and

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

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