ESTE - Earnings call transcript Q3 2020

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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 former presentation. [Operator Instructions] As a reminder, this conference call is being recorded.

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

Scott Thelander

welcome third and conference to you quarter our call. Thank

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

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

from by You Anderson, Today's comments turn access with CEO, from and Robert. over will, and measures call closing followed from now earnings information regarding Lumpkin, Robert. yesterday. Robert comments how CFO, about our released Mark I'll will our call those financial to call can remarks to performance our announcement some on today's begin the then find

Robert Anderson

Thanks you, third call. and joining for morning, Thank conference good Scott, quarter everyone. our

had you earnings with driven As and continued position. and cost quarter yesterday, operational outstanding by we our from our performance strong favorable financial solid announcement another released can production, see reduction hedge

the this significant generated we almost Mark have $XX flow are our way deficit. We This cash levered but this well debt with along less you capital been the year, our quarter one million of shortly, for being used to months at working nine details free on has reduce times our year-end. alone. outstanding give will including than to

X% in day, high came record almost almost up the up and which of month. achieved production XX,XXX significantly matches XXXX. our from quarter And volumes at quarter XX% it's in quarter quarter of nearly first for a company about the from BOE had second fourth we shut the in Third per when our

decline above rates Our our oil NGL forecast. or and tracking stream lower been much while volumes higher slightly our of compared our even volumes have forecast were gas because gas to internal

high as year, tracking for guidance release. outlined Given in the our press increased to are that end have production full we we our guidance, the beat our year of

With cost we also both operational the to continue an all place, corporate have have in cost lowered. to We of and with lease our expense on guidance, our sustainable our contributing which update focus provided to reductions. employees side of we reductions operating business expense

for represents an $X.XX all-time which at quarter. per in came expense BOE, the second below $X the BOE operating lease per Earthstone. is quarter and quarter, below low first the For slightly This

BOE. cash on an third all-time at at low in $X.XX corporate strides G&A per made have quarter also the in We costs similar with coming

goal long-stated Some for the the plus achieving successive $XX this XXXX. that $X.XX the of you at LOE $X.XX our BOE now each year, per time BOE, number quarter. full driven we of we hitting hit of for we cash quarter will first which third recall in that per did of year in below lower G&A And XXXX, have

that completions hold pad well working We online we around on target year-end. also have and interest announced six in County, begun which Upton our them in we Ratliff XXX% having

reflects our completion of guidance capital updated with being to $XX completions, Associated million. range million these The activity, our million this guidance of $XX to previous our expenditures for to million below a but the range. partially offset of year increase resumption by have approximately for $XX $XX incremental we is

complete first the a interest. in We Hamman the to also well pad quarter in of which XXXX, XX% working in five plan hold Upton County we

with proceed are activity. activity down XX%. the Compared to much cost to of decision completions XX% to earlier to environment price we improved reflective completion made all commodity decision a the the Our halt completion when spring is drilling to year, that for we compared estimate and in

costs, of these to completions. expect expect completion at current XX% to to result, actual XX% well As of wells these rates adding around be on historical returns on we XX the XXX% in drilling we return over incremental a CapEx the strip When prices. generate

the we As as percentage drilling the completion currently an being costs. down aside, a costs view as similar

on these compared keep XXXX XXXX. time As production XX is completing have to to as this line we in relatively mentioned flat before, expected wells

program the early available financials. prices, commitments closer the turn our factors I'll this early As the over in and including With year, to the service call year as going for will the drilling through inventory costs Mark economics of the A the At of are shift position, positive to we into and of next we of any of quality financial to remainder we next in move and of the process until we year, make planning are go beginning quality our our we XXXX. late decision point, volatility year. considering continued remain providers. wells, the Considering our end commodity not year, flexible this and financial completing and to strong this in that, this service review number resuming get XXXX. drilling operational are

Mark Lumpkin

Robert. you, Thank

balance with substantial start sheet. $XX.X That just comments our cash for consecutive the quarters just the to that the second on flow me cash we've second of million brings pleased at us free in some XX, in under third Let came under in and flow, quarter. generated free which quarter, million We're $XX combined.

quarter quarter at the next compared second and better $XXX cash and incur our or capacity still liquidity reduce million liquidity you we during debt As completions the base million paydown and activity borrowing revolver as to expect leverage borrowing of on paydown million we've free of been able $XX $XXX all of quarter. adjusted ratio to do cash the on that we paydown unused achieve million with times fourth we one capital million quarter, on EBITDAX expenditures we to end and were cash our year. at our end the into know, expect net at flow we debt further. estimate of number quarter, focused expect and in fourth less $XXX around debt free our expenditures, we And capital to hand, pay had with fourth the our XXXX. of to down further generate million grow of Even year-end debt to $XXX in $X.X With target approximately with flow,

and for third our the compared and driven X%. production income the of quarter. production to $XX you revenue compared were during second higher our top-line. shut revenues, to which, at looking about statement, represents starting composition prices May. XX% with $XX.X in the the quarter second From a XX% XXXX improved increase, of Revenues we total commodity quarter, This almost gas XX% by revenues was million standpoint, comprised about which Now sequential oil million about in an natural about as comprised of comprised recall, NGLs in XX% which

equivalent barrel for NGLs per day, quarter XX% XX% which averaged gas second From was third $XX.XX $X.XX realized in XX% all per price barrel. oil equivalent, quarter price a average barrel. gas oil natural from oil production Mcf XX% comprised of sales per averaged of our natural our Our for crude Natural $XX.XX commodity, the in By was during was price average our average standpoint, $XX.XX commodities quarter oil, up the of liquids. was per three averaged quarter. and per gas third the barrels volume XX,XXX which and third

gas natural our mentioned, not declined as we NGLs Robert production rapidly as expected. and As has previously

nicely. and in around But do production So this oil higher the tracking the new result than we're time, percentage NGL bring on to At see. we should same great does in seeing the year. until is and of oil so we wells the end is decrease a gas which expected,

severance and the decreased quarter a per cost, per represents from oil second unit, a interest On equivalent. quarter. includes the expense, and expense XX% our of first cash side, lease to decrease which operating production from cash the X% decrease all-in a expense, G&A $X.XX barrel This and on tax,

Our a at is just quarter below slightly the BOE, to expense decrease lease which quarter came $X.XX second and XX% in per operating the first compared cost.

managing which given strong for to and lowered we costs at per for Robert is year the $X.XX noted, $X.XX As in now our LOE have levels, our XXXX, success guidance production full cost BOE.

and in second reduced standpoint, is expense the $X.XX general an our loss G&A decrease quarter a from decrease third From from $XX.X we quarter. quarter a a on $X.XX which third million which of per contracts. the the we per loss XX% per the of administrative quarter $XX.X cash a BOE, first On GAAP side, share, or to net included income pre-tax unrealized unit million the reported XX% derivative

million which million in the in $XX.X was from the million online Our a slight since March, diluted both Despite we and no first the second $X.X new million third in quarter. adjusted share quarter. wells of income $XX.X generated EBITDAX reported decrease adjusted or $XX.X the the generated net per quarter, late was quarter the $X.XX in

year barrel. $XX to periods, over basis year both a a hedging And that gain little of commodity a $XX $X.X steps per remain a We day barrel. the commodity same full the in balance average do hedges have X,XXX barrels approximately an our price those a of on well side, price quarter. of of barrels an at hedges for the we an X,XXX little the really hedged oil the oil we down on million day of volumes. for XXXX for at realized with swapped a And On over

have volumes have On of year hedged swaps MMBtu MMBtu year, the MMBtu on $X.XX remainder the natural And gas per XX,XXX for per $X.XX%, to a for full up basis. steps again, MMBtu that priced there, we day of $X.XX Hub at similar we and at per of price day XXXX. X,XXX the WAHA side, Henry per

got production. we've of affect mostly range capital near handily, per to XX,XXX to tracking adversely and our XXXX per production guidance it with guidance guidance, completions year-to-date with full Robert. the production I'll our we fourth decline but updated a covered operating production commodity back given our production quarter XX% fourth that, them. Robert above year in our And being Robert that has changed mentioned, as expenditure pad fracking As also now about also details think to pretty new full BOE do expect I to on fourth reiterate We've expense XXX With oil I'll the XX,XXX to we've day. to contribute if in the year. lease a quarter mix volumes. our will BOE don't that, to the already in those DUC We've any, turn XX% won't addition shut We of for natural day are increased oil see much, quarter the

Robert Anderson

Thanks, Mark.

has commodity as of there's lot specifically a it both the the quarter, broadly uncertainty, and the to lows prices. experienced second in from While recovered still industry relates we speaking

cash a We us corporate sheet, we position to commodity debt environment. that of and are for deleveraging to low-cost and in a flow operating that are has strong paying fortunate free continue price this down be a using structure in having strong generation balance allowed

of most to capital scenario continue compelling and options generated debt delivering our for a a being the with XXXX combination economics. We likely will program reduction in consider cash flow

shareholder are while acquisitions environment continued seeing of definitely we'll technical profitable optimistic approach are evaluations. our able some that drive We We're and disciplined distress, of continue operating, to in stage scale these to and be this in most of pursue to historically maintaining we actively financial but add value. which opportunities, flow

questions. let's really had to over all it I But our you fantastic we to a I open job to thank environment turning the have quarters where Before challenging are a day. lastly, to Kevin, who it over have long get questions, With want operator, guys us turn a know today. past employees that, done two in

Operator

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

line live. Your now is

Neal Dingmann

have 'XX I Robert, don't let's guys. out. update, is, too Nice my say, you plans detailed detail, question know

others to thinking, think you rig just because, again, one the would give or your guidance I year, about other, if you You program? outlined, bit obviously, how I'm DUC I about And consider you're guess production those, I'm wondering, some maybe some try you is, two don't. I'm end up the maybe a consider thinking Could that out. you guys next the do have maybe how and have what to me with kind think little would Or of one, adding of spend, next advantages year? just But be next at incredibly that you guess, some do you've CapEx. you job finished thinking sort just are goalpost the a if of I you year would about that how just a would low goalpost. of getting

Robert Anderson

good figured that. it. But us all got relatively complete we other starting to a do right. Yes. to And in would And January of obviously, rigs. baseline. year-over-year it see we terms And are what have quarter. flat us production wells I the I in that's yet. with close don't rig the And of and rig. first adding We'll out Neal. going considering pretty don't That's we question, That us good a two a keeps don't or in you've the then with details see a timing

live And flow. scenario. drill XX, that is could X, the So the one half to that, depending those it'd timing. all of one get the first keys is wouldn't XX We wells, completed. we probably within the on And year start within of to cash to continue

going in outspend XXXX, not when we're So we a irrespective of rig. up to pick

Neal Dingmann

on decline? sort just what obviously, like, decline other about you the of then gas, gas consider how don't It is stay two, refrac helped gas with whatever, what and you Could is? the one, things Mark, so your maybe Or can going by, And on to baseline see are you you help Okay. talk necessary? the the well. even know, part you given I was even that maybe And that would more seems what stable? maybe a even there, do, or it of

Robert Anderson

six fact just frame, quarter. And quarter, production or a completing I said, our, five flat can oil drove relatively right? the any compared time definitely had it maybe like these April, Well, March about XX have we oil always wells, our wells haven't components. since in keep completions down, we on production first by the was that percentage total, as this to higher total new our that, Bringing

flow. of more I completing significant So could maintaining is baseline at But in having it and significant than wells in I the number, Ford about applicable a good some cash we pretty refracs, now, production other Midland amount right five probably think look feel Basin. just of and the Eagle plan our these

Neal Dingmann

Love plan. Thanks, great. the Okay, guys.

Mark Lumpkin

Maybe added with XXXX, those Hey, a CapEx of is because for add rig couple basically starting it's Neal, completions. really no just just it's I'll things. Mark five small Like the here.

are XXX% pretty and anything all of things you've and we the I got about CapEx For mean you hey, mentioned if hey, completions, except well, a of what Robert probably of starting $XX full million and a million the was they assume year, quarter, down debt million. where of paying million, now, to which don't the is the said, that's the XX% beginning first $XXX it's sort got year, interest out got DUCs, for million versus full the I D&C and for probably net. I well Yes, down $XXX in around the we're point the as saying, just like costs XX% so fourth the some rig of, also you good you're next have you're we've for range. do completing, year. But would the inventory laterals, of Like year million time, completing DUCs if sort a produce clip. at would at working basically about they're running were somewhere mean of you've if the to short sort $XX a years $XX quarter and for X, beginning costs are think at we think $X.X

of full were now, let’s middle doing in we're the million say say, a the If a if April. that $XXX let's rig But we for just year you it's think -- probably a it’s picking year. up in spring,

sort in that going probably anywhere drilling not any CapEx You while full before that million. figured April, get year drilling months to start you're near and of four to completion $XXX you're for completions, you of six

do you starting taking XXXX one rig time mean, that's a Now could I sometime talking looking probably completions, up But the in rig spring the at on the million $XX in the yes, think depending incremental with sort the full way more we you're the million that, for completions. mean a $XX sort if etc. of, some completion of and year year, timing of in the fall, CapEx that's of about in to I something and

And and but get be pace, XXXX growth, into mean bit even XXXX, still still flow of in bit case, for a of massive of you So like. change. but more positive. bit, $XX that then, of that in cash you a free pretty not new a flat, if what get you probably from million of -- that you how got And DUC impact you course, in wells free you've that, TBD, late sort of an step cash little hold the spend look the would you completions, decent add top on hold that flow there's a case, take production I kind much

Operator

you. Thank

Johnson McIntosh Rice coming Company. Our next is from John & question from Dun

now is line live. Your

John Dun McIntosh

Good morning, Robert.

Robert Anderson

Dun. Hey,

John Dun McIntosh

in I space touched small-cap quarter. question really another weeks. on past the seen on few we've deals the interesting bit My is -- in strong guess a Congrats of some side, little M&A you kind and the

You some maybe do situation all of you think set seeing currency be the or just of aren't I of opportunity smaller choice? anywhere equity near would what there? that mean groups? kind packages from A&D, or about M&A an But the smaller how you those guys in were. And PE I mean are

Robert Anderson

the mute. it's enough, Yes. and go got Good sizable to there's our seems like I'll question, we've let lot what would ability in means. I deal, sizable if for Equity Equity going But be the be that small transaction. of on really $XX feedback, based And not -- liquidity Dun. use million don't so on would a equity. know somebody a we're to use revolver the a choice transactions.

out think opportunities come roll year where revolvers and get I next the the number themselves state to year end out fall. there and into of of with the So present many the our of system in going there will are peers that the in that's closer are of and a distress as we just the to

there's we and of evaluating pipeline different of think have we very opportunities. a actually opportunities, stayed good busy number a So

John Dun McIntosh

just a of to production they've how talk made you you how Great. from follow-up, on surprising And of year? some and a efforts it Thanks. is cost about pretty does there these for stay kind the do even flat -- trending reductions yourselves Okay. the if think standpoint. has think able on unit with -- then cost could been just basis do unit -- and be of the what lower some you Can next about an most cost sticky you operating on been with reduction of industry a

Robert Anderson

done are. and LOE to of see operationally stays a where then we're plunger and, is a Yes. stay expenses Midland service time, been to in improvement number to that that plunger the any But we is substantial Basin initially, lift, the some question. then do of And can quite lift we directly have to as impact sustainable little an near gas at it originally, cost. term, trickle able things, We've are into And are reduce though, life that doesn't production the pressure say, of on or any operating reducing haven't companies, term, continue if those prices, to you going in least wells lease part and about have If are get a LOE up down and of that That's a on seen effect in ought good of we our we've sticky. production. the little these on both long over bit lift or to in cases, a liable oil and bit little related the gas-assisted we effect, costs on the the believe where oil cycle prices of because bit. we're from same, a flat we work the trickle prices

believe low-hanging and that order are is oil if bounce done, we've in prices is what and then costs, we it sticky come of out So there going to it related to some save there fruit up up. other some to some of

Operator

Thank you.

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

now Your is live. line

Jeff Grampp

'XX? are types afternoon. profile Maybe you were of hitting sustainability kind of last stickiness, good on you on you touch rock well rig can bringing as the how build pricing the kind costs work? cost maybe with like look the the back I but underwriting on service we the of comfortable guys bottom you these some what you guys on to side, And of capital Good point you're the seems know assessing into guess morning, of to from return when

Robert Anderson

scenarios, great add at that and staying it when costs. A everything average of very different look pretty on over our we've bit we of plow that. obviously, economics, a the base then And we a have little last Yes. And we risk. been sensitivities good a and curves look close like of of couple CapEx, capital AFE in reduce because in question we, at we'd terms is to a and of we and type to and years couple

pieces when timing putting a we together down. we as the get a there's we services, do in coming Right versus see frac work certain of just work. reduction we'll that actually I some related and that But of we're of are, like And as of is in prices inflation some we frac the decision some pretty demand to we'll to feel they're to even when have it's on get rig good something for put side 'XX evaluate And little success side. into that bit to wages bottom. I that rock suspect and pretty a and now, the where maybe more closer

good the we factor than was So we that decided important completing program a our have start spring. being you one using decided we earlier wells. of with the reasons to to got kick the might really off we've group this some And price. It pull that was little execution, a we an wanted last trigger the what imagined been of in because frac team same maybe and at

So all that goes into the decision-making process.

Mark Lumpkin

was think in of our a I $XX. were the program think we Mark January, Jeff, $XX at beginning the $XX closer to it let's at of math. on sort and economics it's you $XX finance that here, strip, the big we're felt picture good Like we a say of drilling to looking probably year, guy, about looking pretty strip. But strip dumb say,

If that we XX%. completion you least think I drilling down today, costs by about mean at think are

of that's off take of $XX sort So if $XX.XX. you oil price, XX% just the

about good thinking or not is year, than did about at about of beginning a You know, the $XX, the that at pretty the strip now where and feel economics which we $XX we is different price. strip $XX.XX the now,

strip XX%, now there. in it the is up of a the $X, what, costs a that's if it's and wash sort So goes increase service strip. XX% come $XX If up a,

And what a we maintaining oil of economics. side about similar better certainly, really looks up pretty pressure from feel we little So bit there's right are a now. service it good pricing think because that's the manageable if on like prices $X,

Jeff Grampp

And the know. guy Sure. only math dumb is I math

reconfigure drilling rig Or of the you status for if remind can kind dictate works put So kind of decision-making the us to some you that And those of Or into me. further? a process that meeting look you leaseholders in recall, terms Robert, 'XX? XXXX, of commitments would the of remind extend renegotiate able that to or where that those just you lease can to with how 'XX. you something of commitments? would guys you had; kind were heading in it kind into would might you I me, Is guys, influence obligations maybe

Robert Anderson

to problem. pick work would in inventory And and then definitely have a terms, to solves is got the that look We small it's we'll cherry fee, the to owners, Sure. to in ways we've you, to try areas find what our order where that if not, protect drill best If economics. that obligations, landowners order with acreage. extend pay in

now, 'XX we that price hold to want sense. then view drilling on in as there out accretive much we from as but whole long that years point, As as acreage environment, acreage our being a doesn't we'll three in want happen or some $XX 'XX, to plan at makes to maybe it

options and got of already we're working we've actually some some options, places. in So a considering couple on

Operator

Our RBC Markets. Brad question coming from is Heffern Capital from next

Brad Heffern

theme. trying of deals M&A to there's sort seems like I it on a lightly, in done put space, touching to lot much pretty of it and been, Just pursue mean everybody the scale. is

So think from your do through selling Earthstone already you how the also how Earthstone of a it curious to about see acquiring scale, think talked someone adding competing about just sort about, And you've things can on if but then it now? standpoint if you thoughts of is you you sort of other just which at give scale larger?

Robert Anderson

Good question.

trying sustainable, like along it investable opportunities. we like generating that working on comes more when and difficult forever. we're It's run going You of probably this sheet. know, We them, distress it can and that free we flow, to if year But and or environment got here under consolidation. for you're every process through different done. very through work we on somebody own day and to a And business. are think is low to of a debt, lot find their ways we're with build on spent because in It's, are profitable not open time deal they're company this very mutually companies business and stress takes a work to a your building And in number you know, we're it system got exclusive. get a trying cash G&A, long-term you just and company while says, related it scale to low we you've balance that a

at time this either. So, considering a in mean But market. opportunities and you I outside we to point, lot group big basin, at private also spend related open to opportunities working of a of know, several operators I'd public the well. on different space say the there's lot that. as private every we're a that of and consolidator There's we're a look

Brad Heffern

Okay. in quarter guys was maybe the are in you Thanks basically going and And see just because Mark, third little the that ever of for you the -- gas up aggregate Robert. I the a lot, highest guys said then wells I up quarter. the cuts maturing. to have just volumes just a know But had gas the surprised

that's accounting any So for responsible of like true-up that? sort I was wondering, like or that was there anything

Mark Lumpkin

would I roughly second I to mean have I shut chunk the what so. in will that good generally the it obviously if at a don't quarter, I on me XX% think you just of out been. production mean sort of we look really jumps speaking, say of for Nothing that. quarter, had

That a came a little pretty they're WTG gas have we also really forecast the than when I some you're looking we wells, bunch So than honestly, a close in which higher the we really comparison comparison. in still brought nice. oil not quarter. maybe The what right forecasted. mean, better did volumes, and was nice initial in came before sequential versus true looking at to

sort on And engineer draw our flat discussion of of well, we're looks the, includes look, stream, is, internal And which a little explain can't And these We just flat. curves. is, bit it our me. engineers. with the it's the to some senior hey, wells, well, of hey, on gas curve this NGLs, like like

much gas our guidance. in not more it's a this at gas have think gas production whole and really the just going higher expect of prices were feel kind doubt higher to of priced to or sure, the production the gas a the That's of -- we'll but And differentials XXX -- oil a in of get than oil. of a from that think our will for NGLs from mean, nice anything, BOE out. from second better X% if That's all, barrels it's higher the gas be they it implies shouldn't -- Yes, quarter bit good we'll that, XXX that standpoint I about revenues that? that, the little any -- percentage natural probably bump mean the we an it I completions little only the third day standpoint. even offset move to I a did quarter, the anything. and third Yet, we now. that fracs of is also what doesn't than are oil, so XX% a sort would I are about close really guidance than than possible I help wash have it if of It's embedded more. shut-in is Is the financially, quarter. probably real day just doing no production maybe better, that quarter though have needle. in we're our

Robert Anderson

gas going definitely continue your level Hi, volumes you're then if point are Brad, to not out. bringing of the this a And -- to drilling. they that types a of reservoirs and to on wells, as certain is rise function you're we're new

So not unusual. anything it's

Brad Heffern

okay. guys. it, Yes, Appreciate Okay.

Operator

you. Thank

from next question coming John Capital. is from ROTH White Our

is now line live. Your

John White

quarter. morning, Good blow-out And It a was congratulations. guys.

Robert Anderson

Thanks, John.

John White

Hey.

versus operating in the part expense, due to is lower contractors? using employees that lease On

Robert Anderson

There's and that hands, they they doubt bit field of we that our have do. active employees that hard a standpoint, work us like with we're time lot cost when us a little routine in this, money. structure. a things wells as the otherwise low-cost can lot coming can have saves a really in reduce help and no do contractor From on their maintain new support, we not a times more would contract help come on, of and And a

yes. So

John White

third on the improved? deal a different flow market deal flow little quarter flow Okay. Thanks. has from angle, higher second Is was acquisition quarter? in And Or deal higher? the versus

Robert Anderson

We didn't do a deal in the third quarter.

folks and matter would and I potentially how options many when no that But are. activity or been we're more there necessarily looking valuations have anything busy that. gets prices working more at to think all deals is count along their what I we hard market like tell a what considering don't We volatile, really year you are on, deal. it and do

picking So is marginally. say deal the up I'd flow

John White

Thanks being but selective crews. not to And I comment you're appreciated choosing again. about Thanks That's hear. your on good very question, a your frac how again.

Robert Anderson

Thanks, John.

Operator

Partners. Our next from Global Instructions] coming is [Operator from Alliance Andrew question Bond

is line live. now Your

Andrew Bond

to on a I'm pad. to to I when look decision prices XXs. were to whether kind first to in complete bit remaining where slightly even get prices get five made here a Upton sense turn stay just the just of little XX-barrel higher the decision dip you. today? mid than that in range DUCs color sit the Was more Thank the you wanted quarter trying we still the or high of if the

Robert Anderson

you have Yes. line lot wells a logistics to process, have right? got started get to of you early, Definitely, you've as of up a know, We is lot and and vendors. completing a

have continue date get The the go and talking vendor then them. with complete picked If frame or timing that some to got five, we into next dwindle team. started So August, this in with our And we probably time we got flexibility. selected. we've obligation date we we prices later September to have no a mid-XXs, no September, about down as

back and sit watch. we'll So

frac taking is are of after Once that the or work year. we wells, get fracking. go I company a complete from first operators, slight these other Our, and for two we the to do break going the we to back them think one some plan six would then

into flexibility, we've we're locked some So got anything. and not

Operator

like or for further Robert the back any floor Thank over session. to end reached turn I'd you. the to of our question-and-answer We've closing comments.

Robert Anderson

Thank questions. the and questions, further you, have everybody. if Thanks. you I appreciate everyone's some open attendance and we're today

Operator

teleconference. Thank conclude you. does That today's

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

Earthstone Energy (ESTE) 8 Nov 202020 Q3 Earnings call transcript