ESTE - Earnings call transcript Q2 2019

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Operator

Good morning and welcome to Earthstone Energy’s Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions].

As a reminder, this conference is being recorded.

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

Scott Thelander

welcome second and conference to you quarter our call. Thank

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

statements certain will Although for give no can uncertainties reasonable expectations, prove be as the management to they described believes to Form in these released earnings statements are Annual are correct. assumptions and announcement XX-K These that Report on risks, yesterday based they subject our on in XXXX. assurance and we

the actual These materially. or risks our certain section call materialize of today. Should results comparable The most financial underlying non-GAAP of measures. references documents found Reconciliations under the website our measure prove announcement assumptions includes may these GAAP can should in conference in these to vary directly incorrect, financial Investors contained one earnings also be www.earthstoneenergy.com. measures to or non-GAAP of are released more

recorded of note, replay today’s time no website on by webcast sensitive Investors call of be also be the may section call the as of speaks information Earthstone’s A and today, Thus, August information please Also, telephone longer at available via accurate any any only replay. X, time XXXX. this will replay. of going to by

regarding remarks a concluding and Anderson, Robert on an review access and matters followed how with about those and You upcoming announcement current second Robert operational to information from will and performance with Mark remarks earnings from operations, our our quarter plans. regarding overview Today’s providing can begin our Lumpkin by released find our financial remarks of from of accomplishments yesterday. call

the call turn I Robert. to over now will

Robert Anderson

of both BOE production records Scott we know our everybody adjusted In set day quarter second XX,XXX new adjusted been call from and production I quarter approximately the as welcome $XX.X of for driven first again busy production it’s EBITDAX morning. with sequentially daily approximately you, million per pretty EBITDAX the to for by and our XXXX. of XX% this joining average to-date highest a quarterly morning. Thank grew

wells the bring operator new wells during the Basin second contributed we strong Midland While on growth. the in the didn’t production first any three to quarter completed in the quarter

As achieved an might average of March, you going moderate Therefore day. a the quarter. through in we BOE XX,XXX approximately just rate second recall per decline

half [ph] in Our wells to our first production profile expectations our continuing are own meeting perform internal with reported forecasts. line with

generating $XX.XX XXXX peer proud $XX.XX with first We’re per to be and leading and BOE EBITDAX adjusted of quarter operating respectively. margins realizing second

this margin slide BOE, coming We have per presentation benchmarking Earthstone all analysis above XX% in for on with which peer based in $XX.XX QX unhedged our investor cash peer at in the a illustrates average.

our have the and were net We hedged a natural Of but position course which XXXX were basis per even natural and of $X.XX our boosting and basis the we hedges Permian just for after fortunate much Mark more of those fully quarter. prices. In that I’ll gas pricing is nearly you on comment further. approximately walk detail, negative MMBTU. second in strong through gas margins hedge will price

forecasted similar place XXXX in gas portion have meaningful We our a well. volume hedged prices in of as for

some guidance capital detail. some result our We have enhancements have in changes XXXX review also been program working made which in Mark will the for and on optimizing

fourth additional operated this wells end gross spud our of the XX Midland Eagle revised with bringing operator We’ll Ford third in five wells wells Basin on also the quarter expect XX capital quarter. result operated an program in We CapEx. from the and gross to late growth through

of capital BOE capital expenditures XX,XXX program, both updated XXXX approximately year-to-date on per performance estimated Between XXXX million very our exit exit that day. our revised have sales the expectations rate to rate $XX well now and volumes. XX,XXX an will and Based minimal we XXXX our on expect impact

to well strong very production. XXXX be begin positioned with will We

interest wellbore industry agreement In This is additional we on wellbore our up earn the [indiscernible] XX% drilling meet does an County only accelerated of next these any all our partner higher but plans drilling a DrillCo a all in limited acreage, as paying greater or basis. XX option will covers cost. an and provide our not DrillCo earn enhance you XXXX drilling economics closed working that agreement by obligations future eight-well with arrangement optionality agreement wells partner Central in in of With will we structured portion our they might the assets. capital a development July, to The program wells Reagan an an as year. for on

which Midland cost been capital the resulting and basis result To on in spec Basin. performing high a rig to services. high days contracted second and years the running per a enhanced have upgraded capacity a similar as running rig are more rigs support operate reductions pump expect we’ve quarter. we expect fewer rig secured rig the we two rig our of over as to day that’s the associated in the last the equipment the later in spec at this a with well the temporary program including well, We with new DrillCo, efficiently two we we Midland a plan release cruise, Basin and top in currently drilling rate

deployed will details I later which June. we’re the positive some already this with on give seeing we rig results new in

our project a Eagle will on on then activity to Ford our underway on Ranch our increased Project. on and have in drill three Davis continue wells Pen program we seven-well where the drilling is We

focus program Eagle Midland to XXX% expect wells year expect our start XXXX the We Eagle XX to development activity XX These complete Ford wells our Basin. Eagle third completely of Ford to capital we all by quarter the the in completion end. Ford and largely anticipated in activity and currently in

to guidance more our review provide the on new I’ll to details turn financial call operational Mark and and results I’ll items. then few a over

Mark Lumpkin

completion drilling that and activity. of and Thank of increased you, described Robert. non-operate activities In lower view operated Robert the anticipation

completing We’re both includes assumes drilling to rigs drafting until also end revising $XXX this XX-gross the reallocating million $XXX the Midland spending to in and our third quarter the operated in running from budget locations to it capital one Midland budget program and non-operated some of This temporarily from two around previously before Eagle our in Midland Ford sometime of the million assumes Basin well back the XXXX a Basin revised Ford. and Eagle Basins. rig

is daily arrange barrels XX,XXX to-date to equivalent of previous to of XX,XXX from production NGLs around guidance to expect our by we natural was We’re performance expenditures. XX% XX,XXX driven and per raising our This for largely XXXX XX% our to We’ve added gas. well made to XXXX due changes not oil, to still any guidance on be XX,XXX. really oil average and capital day mix which production guidance our XX% of

with our plans year. capital of revised Robert for the balance the As mentioned

wells now than September do Our higher achieve for the of internal XXXX the through previously expect later in XX at year-end meaningfully volumes expectations anticipated our part and gross in of higher. the we production of Basin are Eagle to the expected. first and Midland year of year. the XXXX the of our gross end We how begin all XX and operated significantly we XX With end XXXX quarter

put XXXX of XX,XXX per now which oil We’ve increase our to is XX,XXX guidance barrels forecast. new out equivalent significant on rate internal versus day of a exit prior

expect a budget. be a by million the volumes increased incremental production expectations and incremental capital end. $XX terms as XXXX given revised wells now in incremental percentage an our increase into This net increase volumes production ducs year-over-year we’re an the to XXXX feeds on largely XXXX we for to percentage growth X.X net XXXX. in expect of one-rig In Midland do wells There in approximately year versus [ph] timing expenditures will X.X likely in program achieve approximately which really impact significantly higher of [indiscernible] we spud on online the all

quarter. turn Now over let for metrics the to financial second me

XX% quarter remainder higher representing of to million which first revenues by of of XX% was barrels mixture of per equivalent our and XX,XXX oil million oil growth $XX.X was oil, million contributed driven compared the in XX% in and to revenue total second sales volumes quarter quarter primarily production growth the the NGL compared sales was average prices. higher This line day million $XX.X $XX.X first of XXXX. by Our natural gas. XXXX in with second sales Crude the $XX.X quarter and oil the top XX%

realized before higher Midland first on differential prices $XX.XX gain We second improvement quarter. by Basin barrel continued on per derivatives impart the [indiscernible] averaging oil realized the quarter in derivatives in of to oil compared the $XX.XX in realized before the in gains

weak first much of gains derivatives on gas per negative compares natural index $X.XX for to of and in of prices the resulted of impact in the our side approximately quarter. On MCF average price the before $X.XX quarter realized approximately natural a wide which on gas per Midland gas combination Basin differentials MCF the

NGL in the XX% quarter the about approximately and NYMEX gas of versus and the of in barrel X% $XX.XX first respectively second second per of in compared similar $XX.XX realizations a On the average oil, quarter per of and resulted of barrel NGL NYMEX. XX% to pricing XX% note, first XX%, weakness this All in results for told quarter. XX%, in quarter natural an of to price averages

book strong brings $XX $X.X the benefit million. commodity We realized from a for to continued with hedge realized year XXXX of approximately our second the have million gains in to quarter hedge which in gains

moderate add to Our oil also gas and with for Basin for hedge XXXX hedges incremental our at price our of average XX% in for and position [ph] to price which continued currently near of equating oil production remains approximately hedges hedges we of including $XX manually are per barrel. and an strong average differentials natural position an to with initiated basis including XX% have Midland over level hedged barrels per XXXX at swaps and guidance $XX XXXX

and well natural underlying side on through XXXX hedged the WAHA. Similarly both gas the we’re on commodity on

last current of our same year. of For $XX.X record sequential We the which position details period in EBITDAX of please $XX.X million the quarter company was from XX% million the presentation. the level increase our adjusted up X% investor second first reference in achieved and the quarterly full from hedged quarter

in income adjusted income per $X.XX million From diluted net or we an share. standpoint, quarter of the second $XX.X recorded

by to expense related in but our primary higher first portion looking $X.XX our spent some averaged elevated lease low offset boost $X.XX our the recalls quarter LOE production to forecasted with partially forecast strategic been frac BOE in than cash second at the was our our incremental Now wells. in of came per on LOE Workover expenses, a work a expense. lower heads than the operating compared to quarter. the driver workover that has was large at but of of cost, G&A producing

some Salt We have for caused as for increased production experienced time. of water Water also frac increased have heads a LOE period disposal

of projecting As balance the we in first a result have reported for of half the we’re year. now the what

to lease the $X.XX guidance previous $X BOE our for to revised operating have We guidance. of expenses per over our $X.XX be or in increase range

to second be the the in improve to cost improvements aim LOE continued expect able We further our and in half XXXX. cost unit into fourth to our achieve quarter particularly unit LOE

in BOE first Our BOE $X.XX to G&A second cash $X.XX the per per quarter. compared quarter averaged the in expense

with $X.XX internal manage G&A our year of G&A and below continue the total guidance. with our first G&A to tracking our tightly half BOE per forecast first and half below full in in the We

our $X.XX reducing a is to on G&A $X of decrease the versus BOE to range the guidance. year full $X.XX our cash also for guidance prior which We’re per

$XX.X year. and the million the quarter of for of XXXX of first last second quarter loss net $XX.X income income $X.X net the second million to reported quarter million of of a We compared in in

of us $XX.X As diluted we and of compared to or of to attributable share disclose of $X.X million a or requires reported of the of $X.XX Energy compared amount described Inc reflects XXXX in diluted net million A income Earthstone GAAP a shares. to our the net Class in in loss share diluted quarter with previous the share income the per quarter per $X.XX net perspective, calls, to loss $XXX,XXX which or associated income essentially first controlling or interest second $X.XX GAAP from XXXX. Accordingly per net

release our You new further can our and information. refer also XX-Q to for

total had liquidity continues to our we of end, our move our strong. and on let’s We $X.X for $XXX the facility Lastly, outstanding At XXXX and balance at $XXX of million sheet capacity a of balance million liquidity. base borrowing liquidity remain into million cash XX, of credit quarter in borrowings approximately approximately currently undrawn June facility so have million. $XXX

our the more turn now discussion over operating for to Robert will on activity. call back I

Robert Anderson

Mark. Thanks

Our our first based be and drilling well the to the Midland operations. the program released of perform well end there. be quarter ongoing rig the one before which in from already to shale XXXX half year third Basin released the will prior of two the focus end safe have production We Ford is in I’ve currently to the on continuing as performance efficient rigs year and of drilling we which up finish as will of one XX-well our the as mentioned as program our running Eagle

our completed second the of the Midland project drilling we in quarter, Mid-States County. Late five-well in

and Wolfcamp these which intervals. interest working We XX,XXX have a A wells the lateral approximately have in foot targeting sections B XX%

and the them expect are around of wrapped September. have wells on these completions last are fracing we We stages to the end schedule and just wells have three XXX as up The the completions first two progressing around started online wells successful on on now.

efficiency day similar frac with to cost eight year. to per stages earlier the average to in Our XX continues about

wells frac maintain in are targeting this Wolfcamp the rig are County, our move laterals on legacy November. release area. services to area the in the two-well XX,XXX after and from and finishing up drilling two-well in moved have we we’ll this upper completing XX% effect four approximately We giving the the Mid-States we these Reagan and now pad Central related crew it agreement. the to bolt-on drilling Wolfcamp a DrillCo just pad will expect B drilling rig. All foot that, of through pad after working wells block to interest We project our we same X to up a A two-well then expect targeting second where Block to After

hole our recently feet The a pad days. a feet we which lateral included feet. We our DrillCo have Utilizing approximately average of wells approximately lateral three-well X,XXX the and sets rig, new in unit had These drilled high XX,XXX XX,XXX several drilled record days wells a working We spec are in in TSRH a than time. of length team. interest. three drilling also for in XX% we with more new our records drilled XX

Midland same in and five non-op From TSRH distance X,XXX us wells. assessing Wolfcamp. They our block mentioned call, the last will XX-well apart the or in aid on and landing project optimum for XXX-feet our As in spacing on the different are zone about in earnings this area. a line feet targeting these producers standpoint Martin about wells a existing TSRH zones between the we’re significant on from spaced are County Sprayberry participating

capital for from this component that occur of shift on our the resulted The has end a and have completions year expected to million project interest CapEx plan timing approximately XXXX budget. the net We our XX.X% completion. of this of prior through versus working $XX XXXX largely would current which expected in quarter of of in is completions about on the before first XXXX

moment To our performance two, our the or results strong quarter base record to our spent all the new of contributed wells performance well a continued second production and production. of highlighting

these still Upton wells producing type County will the remind set various Midland type acreage counties. first quarter but data based and as you on as were Our in well that targets cover economics. are that different completed equivalent from attractive below very own Upton I million positions the our barrel well with curve and of curves

type Upton County, County well population by break our in out curves we’ll As specifically. increases

oil as a component ultimate therefore at and Upton recovery but oil rates the County start a in and better higher XXXX County out have estimated ultimately contacts Reagan economics. have similar wells generate XX% For

enhancing and Lastly, continue leverage our program. execution the to we efficient of margins focus on operating managing capital our our

we’ll that questions. for with it Operator over turn now

Operator

[Operator the Neal Instructions] question. with of our question with Please comes Humphrey. line your from proceed first Robinson Dingmann SunTrust

Neal Dingmann

of sparked DrillCo there DrillCo, what there the around other just I is let’s question opportunities? are guess and my Robert sort So start that?

Robert Anderson

for we’re any earn behind because is and always other extend to At to these want bringing them we’ve status our in that this little DrillCo accelerate, we’re also return able our a that particular economics be of things us sparked MO highest either in projects promote kind small status in area and us kind HBP better lastly, exploring when or and the a capital to a what we is, of obligation drilling of rate not then portfolio. this time opportunities done really that get

So I those make think of all good sense us. things for

Neal Dingmann

end you given reasonable these quickly? I acquisitions accretive and is more fairly could an No, it thought being make saw my rational they one into do you out if up the even if of to for acquisition market guess tie more there,

Robert Anderson

Sure.

we’re in know, open you and look to something we looking As bringing acquisitions an in different we at is a a lot arrangements when of partner to consider. always at something facilitate area

Neal Dingmann

if and balance end looks quite looking and year. of I Okay next have could To just or then comparable at realizing know see, are XXXX a year you what sort trajectory. sort Mark, flowing of out. activity don’t without XXXX to see how know got now. what bit into the and just you lastly a do a you I see maybe you like and it then the you’re about now on, I talk [indiscernible] It and kind trajectory having they seems of just to you pretty things good

Mark Lumpkin

one take with let me Yes, that Neal. the first step

I just of highlight but this people think I’ll anyways. First recognize all do

contribution do it’s Mid-States minor going in We from late about online in a third September. natural late the fact thinking a well have to expect to these But very production. been way and quarter to September decline we’ve really probably online in We wells haven’t a through brought so been things. we’ve get since March March

until a fourth we’re end wells come XX wells online again, the those all quarter. in gross we online the Basin quarter decline the we’ll first and on and gross through quarter Basin Midland three the from third wells the brought of very Midland bring online end a So of the the essentially, basis in in

In that, addition Ford. online to XX the and wells in Eagle gross quarter fourth

said our production a end we waited obviously from program very CapEx standpoint. was So before back

think day natural down, turning it from two a quarter quarter low XX’s, of be productions up to a of volume been of that of how barrels quarter fourth that versus But a What is that or held it’s going thinking ended significant it’s and our Mid-States we’re really XX,XXX the or a not terms kind number quarter We do good the XX-X up is third at at the We’re for starting depends March and the there’s course [ph]. should then up a we to definitely decent I think thinking pretty the sure. decline, bit to production kind probably be get give on, lowest quarter back in way there we’d third even third you week quarter. expect and production in and a bet [indiscernible] about pad. of maybe of about should number some how that and we fourth little in we’re Mid-States in

a and before, providing that the fourth we’ve [indiscernible] we’ve to recognized guidance but we the year online that to really give you quarter, changed and folks about the all of start expect bit marker think think the got not wells [indiscernible] how communicate it for quarter our should If coming help was the we we’ve guidance some have out. expectations of throughout

be what growth one in XXXX next based of we guidance. will think the our think a significantly midpoint XX XX from production running be implies and XX% XXXX higher XXXX. to versus on XXXX of versus our We over midpoint current pretty percentage rig year would up I

Neal Dingmann

Go we’re mean I Mark. help, that ahead Does still.

Mark Lumpkin

quarter. really pretty activity. first We’re still completion completion a have the going but decent activity Both we’ve probably of to as better got into operated the ducs, some some

in non-op looking this really the will probably out kind first will big that of we’re volumes ducs pushed has crank picture our the into old of of we’re of and next new likely sometime versus color again us some quarter can on thinking Midland guidance help how out gotten kind Basin be kind probably of new completed get year continue If how first and you from I gives pretty on to nice thinking last piece non-op the quarter quarter. I think together think and hopefully some that things that

Neal Dingmann

helps. helps it well. Exit it you. Thank No,

Operator

you. Thank

comes question from the with next of Our Please RBC question. Capital proceed Markets. Heffern line your Brad with

Q –Brad Heffern

about both for performance or the base for the internally. talked second how what it legacy still that’s incorporates guys production better new guide if remaining quarter was the the new You than fully wells, I’m projected if you it that wells the curious in and if incorporates well upside.

Robert Anderson

everything and something. into everyday No, we’ve But model We re-forecasting all run got it. internal our for we’ve doing updated think report got that reserve mid-year incorporated. it’s a I built Scott’s

Mark Lumpkin

XX%. quarter including would in the wells the add first we just and then our are well has as we’ve happen some Brad outperformance our the side oil and on including what second above on in But in get we quarter. content the get even online seen projections. quarter below that volumes excess and and curves been oil moderate of definitely the of there, and higher you three we NGL look third we versus we one the I I in mean quarter oil. the quarter definitely is, third PDP that. like but brought thing new and to or of think the gas fourth year-to-date side oil In happened adjusted improvement they of just first not about with expect quarter. at what’s tick kind on our around We our a the to have down we’re volumes of up terms XX% expect volumes end that still quarter, going bunch kind of the as late XX% that to would We incremental year the second

Q –Brad Heffern

the and the in there talked where stand the perpetuity we guys Ford plan you you and on about in XXXX. sort no would just got then HPP if can Is go? it. And let that you Eagle remaining remind Okay, acreage of activity

Robert Anderson

it’s lot We around impact they of wouldn’t some to and to let results see, how latest it things. activity prices. and that There’s go we’re acreage and commodity techniques what Northern and a then of block our subject frac and watching designs, in

right not Eagle capital to hope if new would planning So and as there, capital could any would a we’re our be then spend little XXXX. we for Ford now prices but minimal overall wells look to we compared again we oil XXXX, very to but they like out improve it spend these perform up amount of capital program

Q –Brad Heffern

Okay ask then just I’ll finally the requisite and question. M&A

obviously done there are guys guys here. there know You deal add. the look. how that or any DrillCo you’re are have But to you I always flow the deals out trying does seeing

Robert Anderson

We it at It’s moment. frozen there say a has macro just deal created the are moment. add. at that and probably than the whole flow I’d of to it’s always a situation more the environment trying isn’t just lot

much as discussions we’ll we can knocking to do creating opportunities, about continue doors, we’re as so. on So

Q –Brad Heffern

appreciated. Okay,

Operator

Thank you.

Duncan line with proceed the Johnson Our question. with Rice next from question comes Please of McIntosh your Company. and

Q –Duncan McIntosh

your two Running and in around legacy wondering dropping color you rig. some if quarter the was the could provide rigs efficiencies. I then third

higher of kind expect new spec rig. with You the

Robert Anderson

way. It’s been footage really from implementing rig were it of was off three-well this rig. when very and because at successful that thing day you drilled to look high of amount start if average, that we that good kind spec on a Well pad to we per want using

then up rig. ultimately we’ll and much into savings. capital that seeing expect live numbers even be translate able But much and quarter to this some seeing rig I’m real have We’re prior give this year. hopefully we using data for maybe do those a how to a actual holding by cost on how over end we’re you will savings we savings the spending some

can I what hope is the guidance So than XXX. less of that spend we

Q –Duncan McIntosh

have my Thank answered. And you all. great. other right, All questions already

Operator

you. Thank

Your comes with with Partners. Roth John the proceed Please next White question. from Capital question your of line

Q –John White

everything to. the strong quarter, it wanted Very way running looks is you like just

Robert Anderson

everything. Almost John. you, Thank

Q –John White

right. it’s know, something else, I always

or would on CapEx, there that Midland large the wells non-operating On in thought in. decline proposed out non-operated previously a companies from opting you there, Midland your due was previously of you wells withdrawing you to is anticipate

Robert Anderson

these it activity a little out just that pace It’s guys have, bit. got Neither. the just shoved

we’re to of So that XXXX. all into just shift activity really going

XX completed We’re wells we the the it’s year, still as participating beginning same in of fast. that just from getting had the not

Q –John White

proposals All right well deferred. that were

Robert Anderson

They’re – they the things they deferred. less longer were rigs just on to they’re not thought are program than multiple where a little In this it they taking field. had in running area, one XX-well They’re planned. going run on even rigs

Mark Lumpkin

to John, but the net or of of wells number gross push on expect spud of a get completions their the earlier on we same non-op. basis part effectively the into are getting kind XXXX.

Q –John White

the All right. for Thanks details.

Operator

Thank you.

comes Seaport with line Our Kelly Please next from with the of Global Mike question Securities. proceed your question.

Q –Mike Kelly

nuts this do those numbers crazy. “Nay” not I’m just if those to wells But the I was numbers. then First was I Glad off, this their given to a party with trying – on I exit find us drill question little and you guess of like before, to looks curious kind myself night I’m I give security XXXX. glad in could had Thanks. last really also that had driving when say “Yay” to hear on to or the what rate around you DrillCo, details bit the I’m curious more has [indiscernible] election just trying

Robert Anderson

straight secret little sauce we’re working tell very you I’ll paying aren’t is we not this give a I going a won’t that interest the answer. you well. you, drive probably deliver, than a – just I’m because some crazy what that I’ll our less so Mike probably on of to is

have get which quite option or we promote participate we it’s in darn to of XXXX program, bit from simple propose built in a to participate pretty have deals and there as standpoint. these is typical and they’ll on there’s So not wells results little our that XXXX will kind and

Q –Mike Kelly

thinking you of about think no? say Robert, of and going come about are How they want kind rigs play to or this burden kind I’m that how two kind this so somebody and yes if help rigs they is it if CapEx – in Got [indiscernible] say you or two next how as of curious out, ultimately run along if you would does year. just no, to

Robert Anderson

and and a a about around less. the have of happen. basis these we’re see we’re to It’s guys till sure, respond wells. gross like lot year I to we One these have thing are what because to just we economics it wait looks is as and how we’ve results is, good environment the on our going One couple improved I to a here for things towards the going the times thought end question are think think going drilling on

capital bit to going as want on or wells much to little next things prices tank less our but participate possible. maybe So delay those spread that things be satisfy of I to us defer come, think or then will if them both a out year, want and oil is to as

whether So again DrillCo two rig rig the a program versus isn’t participates the on program based one not. or

there’s think that part as I well. some decision drive that other things of will

Q –Mike Kelly

Thanks Got guys. it. Understood.

Operator

[Operator from with Please proceed Jason with of question. line the Wangler Instructions] question Capital. comes our Imperial next your

Q –Jason Wangler

on dovetail question. Mike’s to maybe Just

to there basis On well, is a year’s the or have next or they that well-by-well all XX demarcation X. accept is where a

Robert Anderson

once. and at XX It’s a basis It’s not not by well-by-well Jason. a pad, it’s basically all

but So want cherry-pick we or of sort decide pad out they a horizon basis. them a don’t in to can on

Q –Jason Wangler

the the year pads so it where kind know sounds already that’s year you rest this was wells much are or going pretty the like kind already what are with of then, of you’re picked for them. curious and I this for Okay, of then

Robert Anderson

yes for or We’ve every they’re eight some year talked all well about that they’re in those. those so fashion in of in form and eight-well this

Q –Jason Wangler

Perfect, very you much. thank

Operator

concludes our question-and-answer for and ladies final to the session. comments. gentlemen, I’ll floor back and you this Mr. any turn Anderson Thank

Robert Anderson

and all a have interest Thanks your appreciate we day. great

Operator

concludes This you. Thank today’s teleconference.

disconnect time. you at may your for You lines this Thank your participation.

Earthstone Energy (ESTE) 7 Aug 192019 Q2 Earnings call transcript