ESTE - Earnings call transcript Q1 2018

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Operator

Good morning, and welcome to Earthstone Energy's Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

Joining us today from Earthstone are Robert Anderson, President; Mark Lumpkin, Executive Vice President and Chief Financial Officer; Tony Oviedo, Chief Accounting Officer; and Scott Thelander, Director of Finance. Mr. Thelander, you may begin.

Scott Thelander

to call. welcome and you, our conference Thank

and Before out forward-looking that started, Section I XXE the statements amended, Securities XXXX, to XXXX, point would like as Securities of today's XXA Act the of of we Act and meaning of as get within Section Exchange Exchange call of the will contain amended.

in available telephone call be materially. in yesterday. reminder, at includes and also recorded measure certain GAAP Reconciliations on be of website the contained XX-K subject of should today, call will are May they to of they can financial measures. our the The on for as first directly announcement assurance that will earnings Investors financial Although assumptions replay. to X, may webcast references in expectations, a of statements Form XXXX. or these section Form sensitive of a website, risks, to the as www.earthstoneenergy.com. Report under management and conference also for Should XXXX XX-Q report give of non-GAAP the we vary certain non-GAAP reasonable information the the of or documents comparable measures and only are the materialize speaks believes are uncertainties time accurate today's and Earthstone's to actual Also earnings based one on these to call company's as quarterly released These our This most these released risks correct. incorrect, A Thus, this results information prove on statements found Investors no longer by time in be by Annual XXXX. more described may underlying section of no quarter yesterday any replay. going be replay prove assumptions can announcement via

by followed our from with measures call I'll of yesterday. remarks performance are remarks and will activities announcement and how You regarding to those access now Robert in remarks turn earnings regarding our our over content financial can find regarding Mark The operations. from information Robert about positioned today's growth, released and for begin concluding how the call to Robert. profitable we with from

Robert Anderson

thank Scott. morning, I'm we at us growing for the joining Good Thanks, first a all, quarter pleased were and we this clearly excellent with you that very say company. call. results on solid had that progress to demonstrate our making

the the XXXX up over were per associated XXX% BOE volumes quarter first sales volume XXX compared of quarter, which in December. divestitures our quarter last X% of first during to the included barrels for oil to If sold properties grew fourth we per Our XX%. fourth then compared equivalent sales with adjusted day year actually quarter, our and or day

end weighted with in last for the the call year. said of is and to is expectations, year as as in expect Basin. the we on largely production our drill production frac back to course guidance line on continue our our complete Our wells we build and as quarter, activities our line that But out Midland we over we the

Importantly, we growth to our bottom line. a are driving profitable production

a was million, quarter generating XXX% EBITDAX income $XX.X quarter $XX.X the which million, over Our XXXX. adjusted for of of net first first is the increase

both our balance on management XXXX. quality our growth. including we haven't full compared per-unit to improve metrics, And We LOE operating G&A efficiency to a and quarter-over-quarter to year basis achieve and or continue per BOE sheet, cost sacrificed

quality the asset with positions pleased basins top two in are of our the located Texas. We in

held the our continue acquisitions a the receive Mark Midland opportunities our We as footprint on assets, Texas, the as emphasis improving summary and and as company to sheet fully on work acquisition over While transformative another primary now through on results by cash shareholder Midland for continue well be trades our expanding believe our finding continually a we our Basin will growth focus toward and West Basin call in production focus assets. operating our so delineated, drilling continue less our we with better adding optimize Ford results. majority to completion inventory of delineate and brief first build We The developing the and exciting expand stack a acreage see formations the by balance benches. activities, right we and is it plenty and will Eagle successfully to of to provide I'll flow, financial strong drilling turn economic more to have value. ahead further acreage quarter. of to to our good opportunity

Mark Lumpkin

Thank you, Robert.

a the address our companies his for congratulate matter also that and us little go to know to this his of in followed recent the success his to critical off is I'm bit promotion point role publicly success who in leadership headed President, both results, this reflective and private contributions I our wanted Earthstone promotion where and financial on those to Robert to going and taking we're up of you his into script and future. Before role

our a pretty results track came in perspective, from on remain first much our with and we objectives. quarter So as financial expected

than in divested additional income increase of increase $X.X XXXX. million oil, and threefold increase per past was last grew EBITDAX more we first $XX.X from the the XX% X% the in Our XXXX key wells adjusting incremental fourth quarter, the of and quarter or attributable volumes sales $XX.X in balance quarter of to income absolute BOE net XX% $X.XX first the our crude operated the and company-wide the first XX%. over natural fourth quarter, the remaining of NGLs This the represents million mentioned, in quarters Basin was perspective, of of financial from quarter per Again, three volumes the share compares with the total the Midland fourth or averaged XXXX in XXX% XX% Basin sales Ford XXXX. the increase from over of the or in on share quarter a the Basin May increase XXXX. first when $X.XX XXX% first We the day net and from significant first 'XX year-over-year an first we Adjusted that The and basis a of Approximately driver production of from the has per been $X.XX quarter quarter acquisition assets. the the increase million comprising a $X.X quarter to brought Midland in gas. for share closed as the of closing quarter quarter the acquisition. this a represented doubled per online X,XXX Midland Eagle ago. or the approximately we of total which I XX% which a quarter over in million a first reported since XX% From in our fourth production to the of year

top higher Our driven was line driver growth production revenue higher -- adjusted and volumes EBITDAX. by key was and a

per GAAP income That in and the $X.X Energy, you GAAP of of per net net associated the Inc. share a $X.XX per reported Class compares which to of which think amount from in or fourth with share our attributable or shares. $X.XX disclose the the know, I the first million us income of requires income million A $X.XX of to $X.X Accordingly, we XXXX in As guys Earthstone interest, XXXX net to perspective, million, share is $X.X essentially approximately controlling first quarter. also quarter XXXX. quarter reflects

higher-cost structure the You can grow. of further lower results the we'll focus prior and operating and of period. and XX-Q through our focus and and achieving XXXX year information. cost We're In was we LOE continued for year which XXXX. earnings proud the these also costs BOE than XX-K to $X.XX, streamlining on full half refer in than XX% first of yesterday's efficiencies per also release quarter, Midland through as assets in this as lower lower as second divestiture our was the the maintain the well optimizing We're Basin our XXXX of XX%

in BOE Basin. continued We improvement in step production we expect per up Midland LOE the our as

million. we and facility for cash sheet have quarter borrowing low At continue our liquidity, reserve structure conservative drilling net Ford of it to capital capital we under we million. quarter, $XXX reserve as We base Now completion to facility debt borrowing base end be base base program is quarter $XX on bank outstanding was to the the debt, deploy $XX within first I'll the another had standpoint, expenditures were a borrowing in respect that, rig levels the million first CapEx leverage. liquidity the the $XX during Based and of million. re-determined by the quarter balance From at with our With end current The second half end on the currently Basin shortly. initiated in balance group our back the will in and Eagle of CapEx quarter Midland $XX our April of and of anticipate my a borrowing on million $XXX million there. higher over Robert. turn approximately net at first program for

Robert Anderson

of the Thanks, be He today you, Frank any just a anywhere. isn't from to words right. couldn't going All because appreciate Mark. obligation. kind also arrest here fears I there, and prior out

bit. So with operations that, talking little a about

on January into our increase X-well parts program that Our the back as in in Basin the the to was production started we call. sequential discussed early extended last primarily and we in Midland of time due completion December very

We our be meet with exceed our pleased wells Basin, the or in curves. to which continue type of performance continue initial the to Midland

finished additional We five and underway Basin, this a year, we have wells two wells. have and Midland the program year-end thus over in spud X-rig operated far drilling

wells a of to completion Midland the April, We at efficiency our time consists Having service with versus as complete or uncompleted to hard us team and our we as also a both pad of time these our at eight vendor in one have the time team positions is mentioned, a This complete beneficial operating program of complete the wells trying inventory at but these provides to effectively program, for services. place having one of by drilling where drilled required started us of wells wells. buildup this consistency on contracting it multi-well may a in make two Basin and is number that each executing and necessary end providers Mark the to and efficiently completion wells gains.

during first of expectation start of preparing wells they'll set be in quarter next this and these operated couple completions now flowing with the wells expect well. C complete eight with for We Wolfcamp of our the back two fracked drill-out Including will first in the already weeks. second being that to the batch

the this wells, availability increase batch across eight about service we'll we of of an XX% this average in a in the results to these should next in batches, by large some continue, Basin. Midland From a interest standpoint, second perhaps With of the have production quarter's completions completing to half substantial here. the talk call, So wells quality the year. procure drive method of because in services working

As provided our completions example, August by being an services of of same December XXXX XXXX. current that frac and in for us company are the performed

and achieving wells off eight as wells underway online good this operated primary bring to formations. With to focus January, brought the we completions B with and wells remains XXXX Midland plan as XX A well Our are two our during gross XX.X Wolfcamp plan. these in the in Basin start online a net on of

of development to half to the a add be a up second our plans, drilling As position working we in firm we year. rig the in are to second continue

we completed Eagle to first XX-well in six County program of completion during Turning the of Ford; Gonzales remaining XXXX. quarter our the southern wells the

you and a in six Eagle an X-well to started July. are have also In well drilling in wells XX% Crosby year-end Ford, operations. program and had four These now frac County online Unit have our XX% late interest we wells we interest on March, and we wells approximately -- our southern Gonzales Sayer working in pad, the been out operations are a these prior 'XX. to expect number we in Currently, might we're we five and in recall, came they new five where As on working of completed where January.

plan us for $XX Eagle calls XX Ford and bring wells. XXXX Our gross, spend X.X the million online in capital net to

in of plan completing ways these putting to the with With underway, together the drill to Crosby this six long program our drilling a there. Eagle currently And the pad we Ford X-well get a Sayer already being some later completed that'll wells. year. for fulfill additional towards year us We're plan pad our wells online,

operated operated have acres XXX to in XX,XXX gross for moment; our operated back Midland locations Going these of the over with between highly XXX Basin. lateral feet inventory Basin a operated drilling then Across of a locations feet. and a our we feet and and the non-operated inventory across net XX% both economic deep length wells about X,XXX of our XX,XXX lateral feet length X,XXX have XX% and of a X,XXX of have between approximately locations, Midland

a So this Spraberry. very our now, running five that inventory targeted Bs, and close of in Lower Mill. proximity the along with two and Wolfcamp C Offset the benches, Right benches: successfully A, to Spraberry high-quality Wolfcamp room. Wolfcamp inventory allows operators additional is the acreage Jo us count lots Wolfcamp and have includes Middle the

we So inventory as from benches. our we our will add these acreage, to continue delineating other

can't into transactions Southern we locations. in acreage to any and We certain and of mind completing are do working trades to focus discuss but Midland some laterals our operated with turning non-obligations continue we drilling on, in longer we're this. acquiring this and of the At Basin intent on continuing point, the making details acreage of keep

are course, acreage acquisitions inventory scale drilling we to pursuing producing opportunities. properties contain we and Of bolt-on increase and of accretive as look that our

We and drilling program. completion wells also million. execution million We're on and from at a working within we on length $X.X success to cost are lateral our are of now point XX our XX to continue range where $X.X depending to optimize and consistently further depth days to drilling a and build

December's is to by around We with of have stage, points improvements also day our seen stages only achieving staying a increase to frac over per completion. $XX,XXX on per efficiency few X which $XX,XXX costs XX

track on creating with prices of is pleased what value. are so with for it and we questions. over achieved we operator, we'd it like for build a our have ahead. this Plus, so commodity to some improved now And are optimistic about take see lot and turn our ability year, to we record far that, see to opportunity we growth So great the

Operator

question Humphrey. Instructions] today [Operator Neal Dingmann from Our coming first is Robinson SunTrust from

Neal Dingmann

that the question that there's cadence know more is in -- success been on Wolfcamp you area. just first on my I Robert, for some nice said C us

As Cs, said might you may year You of lays the on for the the talk have between about sort plan be the and past, split this already cadence out? could the upper of and but how remainder in the Bs

Robert Anderson

we'll well get maybe early -- rest of to but As this one the be sometime year. we've of drilled is complete this The to it terms Bs. drill year that that and the later but C in going We've we we schedule, month, any and got wells how June, won't more C

So it's lowers. all As and and B uppers B

Neal Dingmann

too CrownQuest say sort didn't anything that new how now? you up right Glasscock report of non-operated keeping then to County or area, any other And the much, from from in activity up

Robert Anderson

and haven't some some non-op do It on County in a more in anything in then on expect have 'XX. we impact in -- there's interest completions year any standpoint, we the we units then But Howard From drilled meaningful future I production because been operators we'll drilling being Howard County. think in AFE-ed some some the have late yet. activity hopefully minor will Glasscock this year in more and as both to of get don't the till see won't

Neal Dingmann

then very could that? And to reasonable your just continue you Any no just if on to thoughts, on issues about have you services quickly last, for seem talk prices. getting

Robert Anderson

in to they wages, our out job the or cost we the have on actual credit job line. our bit efficiency of seeing of complete want give the a us wells we us for guys. costs is on of because us to operations cost of guess, for to work for give sight done details. into and will list And operations work to little the our our frac can them a a put the creating gets part, team hard line different come for I have those incorporated us, who all -- that which most long don't I six eight locations is how we together, and keep know But We're we to and vendors creep a luckily relationships. out our so figure helping guys great for we've work of our a

Operator

question Wangler Imperial coming from from Capital. next Jason Our is

Jason Wangler

you that come through of wells the kind I that how was if a eight on? next the you those, you thought over the curious, on could and on Just of of Robert, look initiated or months? of timing just kind walk even many completions the of cadence maybe as weeks couple

Robert Anderson

the should And to. wells a already maybe three or the and X-well that'll those up Monday six in out wells like -- two wells we've in two weeks the on I few County We're rest by Reagan weeks other so and two at there and pad the four we to two Reagan on May most. are suspect are it's so fracking supposed be in it's wells, got are drilling separate We or And come shows County, wells then in all have we to fracked assuming County. Okay. in of so frac on in late sometime everything wells which ought start will weeks, up June Midland a pads we're on now, online.

of at So close order that's that's can get the as moment. -- we about as magnitude,

Jason Wangler

just there able then second you kind No, these kind that you -- second about backlog, you you of lag of similar just like as half be be completion would a a rig got plan, the that. a less you start up think now? in if operationally? forward And you of about build Obviously, talk that's of how period? complete would you as interested difference as of you go than do was then kind planning a at the rig, one helpful, year, to But Or how possibly kind that and will, the eight. in look to second in just would you the a get you're it the

Robert Anderson

Yes, what what pad how us the considering or maybe we're optimal is is sized drilling. for looking be into what we're -- to

So one not or but put it and then getting a seems rig where production larger right -- is off a us, in of the absolute size. like I'm capital this. answer sure and do is a there for these feels go delay sure drill pad like we wrong here an like right you wells four when it's there pads outlay

and is little four rig pads or lumpiness three on time that'll drilling you create, probably the you what to to be four wells well pads, a get little to going then four again, more well the wells. we're pads, two not time So but likely got second start the with when complete from you do first going to drill just production larger and

to just all can we're So months and and issue more out it's more services we right for there really actually them. drill wells not And this. a frac that's a because that don't now months go before that of months want logistical for there sit need and we why timing just creates activity running rig we

Operator

is Global Seaport Mike Kelly question next coming Securities. from from Our

Michael Kelly

promotion going in activity uptick congrats recent forward. your to I'm Twitter Robert, forward President. the on the to looking

Robert Anderson

Okay.

Michael Kelly

to And got just want the fare sense you have in wells issue, pertains guys as question for in A you risk the the degradation less potential and on now that your a that aren't and to your on a couple then being and who right parent. get how one is this as program. operators back just mitigated parent-child kind smaller it in pads a risk especially unit child considerably completing that's maybe of as one come and that's massive potential multi-well it around to wells into philosophically have maybe the here, industry kicked productively

Robert Anderson

wrestling is whatever question, Okay, notice Mark, industry The develop that's the question is that relationship. go have And position I that's that most for and perfect still with. you it's answer you you acreage and big parent-child companies. practical and think not big out a never a

back and on get the every had just do we've the to it this they But to it see us, has ultimately What going a the think production by seen at tend we've that not haven't prior I've are trend for to offset -- where frac back come I pacing at or on. that the really some looked well-being you're hit offsetting to we if field wells So where the and -- to come to that. well well off-line taken had develop fracs fracked. avoid that we they're even yet tightest point, was that,

don't or get time, is have but to of We giant reduced maybe a see they're way there than downtime maybe it's a we're even X.X impacted production right do doing, what because that month to probably a I off-line, but short So for a of they mitigate getting better wells period back. those -- come some that as now months issue.

on what it same up operators or the we reservoir-wise it multi-well just and we're And out don't capital so that pads Right have other corporation way multi-well target, really the development or what the demands is doing maybe do of availability operators the most to that's capital. the company-specific bench is best all it. done in do. make most Again, can and time, studying but to who that drill bigger is now the or figure one makes what best sense to probably trying based at method the efficient

good answer and to a specifically us. have industry we think don't yet an as I So

Michael Kelly

kind Got more in the terms in, once spot Midland, what rig of eight is target? that a do here, second Or little you up it, I most next get granular the it. of appreciate to with come the Getting of in finish look like? you wells, slated discussion of these the wells you you kind program on think what's that batch but likely

Robert Anderson

in rig County the the and Well, drilling and the remainder for going the Upton year. continue of rig's County in -- Reagan Reagan first Upton to

bit we completion we on we're exactly degree, mean, wells summer, and to It to can Reagan up a maybe go. we up obligation us. haven't back build Second can their going where cadence, not what late they maybe and we depend finish put blocks depends I back frac Upton figured -- else later. Midland, some in probably will have out that's have how come little little bit County somewhere just then before it's to company And to the rig, when a come go and where on many our and quicker, some we could when it. is

you but... your So real good model, a for answer give again, probably didn't

Operator

next from question is Capital from coming Grampp Jeff Our Northland Markets.

Jeffrey Grampp

Robert, guess, touch in the in costs your guess remarks cost -- these prepared DC&E like there is and curious, efficiencies, quote your the, under just I guys well doing your the a of just you some costs? quick residual it I component of with downside of that you what's when Or maybe bit quoted that's a back maybe the envelope, D&C cost? is looks little some recent slide deck. incremental Is E to a

Robert Anderson

I a and quoted that the to components. give cost. was break include whole trying up cost in the of D&C No, facility I big quoted it. I the to the well just you and a trying I so D got didn't you I majority C two cost, wasn't

Jeffrey Grampp

if And advantages understood. I'm Frank a company the of were multi-basin there. flexibility Perfect, here, capital Okay. quote and the then being sure he'd

pricing? in does where the rig guys about dips looking in differentials timing allocating the at, give given they're Permian maybe even Eagle just any at Ford second capital or with of maybe regional potentially to the you consideration that So incrementally that

Robert Anderson

you're or what nature our and at is get still capital as of so Midland saying an standpoint, Eagle think the differential there. -- pricing, it some even We being Midland insulate But inventory the and spend majority $XX from Basin, basis Basin. I helps the economic differential general oil hear in that better of LLS so the in $XX in our Ford our economics, I still HBP-ed we or

Jeffrey Grampp

more modeling bit. fewer kind well the trends noticed Permian oil think to GOR I I a completions? and Okay, then was of coming know time about oil And a way the side. of little on higher of down -- just just things? mix of function kind to the mix kind that one understood. expect of should right on. that Is we that up these kick new back some wells over with the Is

Robert Anderson

on online. with that second two little come got But depending a you a higher, quarter right. actually point or higher hope Yes. I we up end in wells the bit when it

do oil for over drop don't wells activity, have But to of a time. the think your ought little any bit still kind percentage year. new it's You guidance coming on, within no I our

in I think shape. we're good still pretty

Operator

is coming Company. today from Rice question next Our from Ron Johnson Mills & Instructions] [Operator

Ronald Mills

Just on inventory. the a question

may earlier talking I that previously included inventory think, coming you was you're And from Robert, from had benches. you thought were I that? how you now -- bench have add? said about benches. locations four many you did What five inventory

Robert Anderson

the Bs, a what we've Well, got A, two missing? C, Lower Spraberry, am I

Mark Lumpkin

There's two more. Two Bs is like...

Robert Anderson

Yes, B's. Yes. two

a So County, that's the little County our thing acreage only and I Ron. on Upton C. of that the I bit The year-end magnitude, at how added, get there, think is even in XXX order you portions the of We updated throughout we locations believe. in Wolfcamp Reagan C

difference. the that's So

Ronald Mills

lay talk of the type swaps out Basin, in in portion in of a Okay, of terms bigger Midland you and Basin your even in pursue sense the great. opportunity in opportunities? terms particularly of continuing potential land Can the opportunities and especially bolt-on of the about set to us bolt-ons. And terms an you packages? Midland give there What's

Robert Anderson

we've these obviously a package of go But kind these like that. of don't and kind the Well, bolt-ons. XX most through opportunities list small or trade XX of a They're who's -- or these land a They're laundry a the us anything just trades bit so got resides we work drill both and our that aren't do through and really packages. on to where we that needs who our we're trades team, and can offsetting of it's broker of willing them acreage efficient. all doing them participate. or and that But are how out generally footers able more necessarily in-house on And these operators review packages. There we packages than working are few not to opportunities X,XXX speaking, and XX% a discuss it might that find They're are again, becoming and different or footers more be, there more are been opportunities. generated. to a XX,XXX efficient we've become develop whatever things,

Ronald Mills

to of you potentially do still deal? term get most that Or there's of there? longer the does think enough small likely larger But position, type -- your another do to Frank's get probable doubling goal need to or to kind of those opportunities include

Robert Anderson

doors. small help and going number going other to or look to and continue we meaningful, The that some going but knock X,XXX-acre or XX,XXX double transaction on to It's number our not a take on at X,XXX-, Yes. to work X,XXX- are grow it. opportunities transactions big to

we yes, fell lot to of of those easier And footprint can on a there deals just those. swoop, harder. are and on success So one double it working They do our out there that take but few to if is be a chance we're longer. like going are

Ronald Mills

of what G&A? or sheet in the is the that include sort to first to reimbursement Mark, them. able a Can took better that if run that to items modeling big for a a just Nice quarter onetime be And you something is some trying mundane see tick lastly, any talk question. first G&A? have down, there about pursue rate balance then, was to Does quarter if

Mark Lumpkin

three million throughout had a expenses. more transaction it were which the was Bold items expenses quarter. kind No, of acquisition last plus noted, there's first year quarters legal Sure. year, That's impact from three and And the in of the cash of you prior we bit onetime and about items quite quarters. of last not other more the last from severance a in the an onetime standpoint $X really probably any

whole be certainly a at terms that run per $X.X expected wouldn't the rate, $X.X quarter. In modeling or I million million plan of you

quite be that the little and don't We it and expect over that should number for we're will low a year. hanging with very quarter. of up trend to staff to continue add bit probably the some first course the pleased But

Ronald Mills

Mark, more And what from I mid-$X mid-Xs? cash I G&A guess, a -- is a from was standpoint. to Is range the million cash G&A thinking the big the took stepdown

Mark Lumpkin

$X.X a last at million quarter the the three looking quarters versus for for cash of $X.X I'm 'XX. million G&A of first

expect... we So

Ronald Mills

got it's something I -- on side. just been Really, have it may my you.

anything back it may $X.X million, to been there the wasn't it running, So had jump but onetime? where

Mark Lumpkin

right. That's

for million G&A, that. that $X.X bit than after feel a it quarter for about $XX pretty if and churn line, bottom may being year the at think little we million entire I the cash up we first good were higher

Operator

from Our next Gordon coming Wells is today Fargo. Douthat question from

Gordon Douthat

mentioned volumes reference your both you in pricing, Permian clarify. Eagle I or to Was that wanted Ford or I LLS and or... to Robert, guess,

Robert Anderson

I don't wish getting Permian, into of our to got we luxury but we Yes. water. the have our Permian that barrels

but don't. we So does, somebody

in on else. just only we've like barrels it's Mid-Cush Permian Yes, the our in everybody So going diff Eagle our got Ford.

Mark Lumpkin

going little and painful obviously look seems diffs and Gordon, at maybe it be more it's might be worth for articulating, it's while painful it's even get the we like to painful been. a a and it than

over in Basin a nice production our Midland of hedged with then company-wide or If partly production about you had and having on based quarter, shock look just adds look Eagle really in barrel of to oil, Ford. exposed at $X.XX that's the half basis we good is less total a up per XX% the of oil production, XX% X/X our differential our of than first Midland and

So starting Basin of be Midland we but year. quarter differentials. to out our there for as year, of a going and the throughout mitigate the all Midland And descent production not in, course grow was it's exposed Basin's will exposure, the throughout first production more XX% the

Gordon Douthat

that that an the the on? get, your of impacting Thanks you're just overview from And Mark, standpoint wanted infrastructure and how production just situation bring seeing how of guys for topic, an it's Permian explanation. in you you in unfold to kind I related how to

Robert Anderson

Gordon. Yes,

And we the news there's barrels $XX pretty price and even delivery control our access is compared scattered, time you in that good into points actually in all multiple plenty it to our certain But have acreage can't a We're we that bid it's central truck trucked. blocks low and our give differential. We And looking all trucking get that can given it juicy is to nearby. crude where or We might to places prices the say, new look piping still options different up, makes NYMEX we and County, within points again, economics relatively sense points. to the our barrels purchasers. does basis are cost of so us is -- to deck. can out Reagan those

in do but continually basis. hedging that it, to hedges. looking right to we're So layer watch we'll Probably today day the some is at not maybe to continue opportunities

Operator

turn or management of I'd further we've the end comments. to question-and-answer to floor session. our gentlemen, reached closing over Ladies any back and the like for

Robert Anderson

thank everybody Yes, we keep you we'll for listening continue to in and updated. a Thanks lot.

Operator

teleconference. Thank you. today's conclude does That

for this participation disconnect today. wonderful a and thank your have You at day. may your time, you lines We

Earthstone Energy (ESTE) 6 May 182018 Q1 Earnings call transcript