ESTE - Earnings call transcript Q2 2022

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Operator

Good morning, and welcome to Earthstone Energy’s Conference Call. At this time all participants are in listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded.

Joining us today from Earthstone are Robert Anderson, President and CEO; Mark Lumpkin, Executive Vice President and CFO; Steve Collins, Executive Vice President and COO; and Scott Thelander, Vice President of Finance. Mr. begin. may you Thelander,

Scott Thelander

welcome second and call. XXXX to you, quarter our conference Thank

meaning laws. we like contain call the would started, forward-looking federal remind within Before I today’s to get you that statements of securities will

second over from transcript will or and and some begin turn CFO, will recorded COO; Robert. only financial comments call comparable replay August then time-sensitive our measures. with directly year-ended Robert they Today’s Collins, financial XX-K any Although management Robert. this call and contains are XXXX. to statements Also, can non-GAAP XX, measures that to by XXXX followed incorrect, no Reconciliations actual in now issued will in CEO; in President and should – may statements our December Investors www.earthstoneenergy.com. assumptions Form also XX-Q note these believes vary are prove Annual information speaks reading. in of remarks may Anderson, found results for or filed subject today, Lumpkin, that will on for longer section Therefore, correct. earnings risks, of documents or most our I can uncertainties, as have second This the the from yesterday. please of information these non-GAAP reasonable These at one no our are assumptions call our conference materialize they and listening the the call based assurance website, announcement quarter under from be also Should closing to the underlying quarter time yesterday. our give as GAAP announcement on measure Mark earnings prove accurate these we of the certain materially. contained the expectations, any our Form These references on of to comments Steve we Report XXXX, includes certain described be X, more of to risks be

Robert Anderson

for Scott, taking those thanks, Hey, as you us join to on Thank morning the to for as those on time this the call, well the everyone. and good listening in webcast. morning, and

second strong the level our to increased acquisitions date, of increase generation, close we expected free Delaware to Titus drilling considerably which both cash and this which boosted month to and day, is XXX,XXX will have which approaching add and meaningful to Northern the production our results a contributions our acquisition, daily per growing Our adds June, This our levels. our late position record to to reflect announced we quarter substantially the inventory. acquisition our expect BOE total to in flow production In margin Basin. company high

of state are locations net XX% area is Texas, the the drilling in considered the which XXX by a inventory trend We gross, XX with inventory net acquiring along New in operated of as line country. some locations best the return industry with of high de-risk these and most Mexico

the seven beginning closed reminder XX,XXX somewhere XXXX. at were producing them day. the since of six of in Titus, quick a As being we have on per Recall Permian time, with that we BOE acquisitions, around

assets consisting of acquisition. We equity, time developed the XX% PV-XX $X.X XX% while about at with have have billion the of and of $X.X billion cash, value spent proved of those consideration a

Midland work free. half largest have for close with closing first in about very combined So, all us Not these BOE February consideration. combination April get we to our to the costs. which With two locations asset acquisition, did our XXX,XXX and for in the year optimize acquisitions, had synergies the developed existing and has close our all be per assets day future. gained to by acquisitions with that allowed we to operating proved integration we Basin, efficiencies operational we’re of this XXX the our teams. operating assets production acquisitions was of a with reduce to evident only pleased more we this proximity On provided in our year, recent of has the in most the substantial these of value our in of The cost and than the expect transition Bighorn will efforts

and the a in closed entered now two-rig acquisition running We drilling that five also strong our program results. been about well and Delaware months have Basin are February, seeing for with

able Additionally, since efficiency taking we’ve over operations. on completion to and been drilling these improve

also drilling As of to in a a the used XXXX from now our Delaware our few another a off will up picking are which these a inflationary This result Basin. allows but will of on more days development pace released of operating operator, cut assets. the it some Steve few in Basin. legacy comments rig we us be in fifth shortly. in expect pressures moderately Basin the have Delaware accelerate additional spud as facing, and some the third we provide quarter, offset is times We anticipate Delaware and to procedures, our wells late

for more with the capital And in will we Mark three have about to million Midland. we quarter, have to release. guidance, information. the rigs two $XX updated rigs some our fourth Delaware, provide So expenditure add while earnings continue our This have we the in will expect to which

few For to million, year, Delaware Basin spud the and the between getting the the expected incorporates and a we for inflationary rig, and wells includes to expect balance which spend $XXX million more seen half date the of legacy additional year. impacts $XXX second of

to one-time ratio credit flow cash adjusted we quarter, down flow expect Titus. do debt under well allocated outstanding our paying our last mentioned would be the facility. I cash impact As targeted debt quarter including last the near-term And by be annualized to under of year-end – to free our EBITDAX

the call to to Now, an provide on operations. turn Steve update I’ll over

Steve Collins

Good Robert. everyone. Thanks, morning

the second continue quarter. during in basins drilling Midland rigs We to two Delaware of and the operate each Northern

quarter, the plans operations mentioned, and Midland Delaware drilling the frac an have in we besides add both also additional operations, we Robert As have underway later basins. to the rig Delaware third in

X,XXX one release that highlighted Lea our was in began pad initial two-well pad outperforming projects we weeks, production per several in Those the and Mexico. we submersible quarter. our it’s the midstream results The BOE electric producing pad did and resolved. total saltwater completion process County, This We integration are pad pleased this experience in producing issues XX% since of in One X-X disposal Basin. is flowing well how assets expectations. the acquiring with cleaning Delaware Our capacity earnings couple late is Bighorn of June in downtime Northern two-well third-party a pumps. Bel-Air of the We and in our problems, of and production the which example That well, oil after day issues of up. with – resulted largely assets data some still continues, Chisholm per for in are now and progressing. process in installed we

day We Chisholm These have strategies Bighorn offline went and artificial by [ph]. the timeframe, focused when necessary. per in lift properties. work-over lift production the to properties avoid on frac have X,XXX implementing the with artificial BOE that in Changing per prep wells over in production future installing efforts methods well increased XXX to BOE returning day and marketing as needed

apply the to evaluation the We will Titus process same acquisition.

we drilling of million in and program, to Basin, rigs fifth two in drilled drilling completion associated full With expected addition of an completing prior includes five-rig Basin, anticipated in gross, to the six of the XX Midland wells Titus wells activity. additional four year Delaware incremental a to the operated on drilling expect of total drilling for the three XXXX. acquisition wells. we XX by expect With and the online a our the rig, the around bring closing of spend $XX This and closing, Titus

While XX net spreading wells. gross, a total of operated XX

Now to pressures. address cost

of immune aren’t we’re but to to can mitigate impacts. We we the effects doing everything inflation, the

of only account are are was standpoint, moderately year; materials. we first impacts the of services our the year. of in capital to inflation have cost impactful forecasting increased further From and guidance the half the more pressures for we expenditure of we’ve and significant seen raw seeing increased that now for prices balance Our the

On newly efficiencies mitigate by the pressures, seen LOE we’ve this side, been our inflationary realizing we asset. have some while acquired on able to

Midland We Basin assets we operating higher pleased while have both manage to and newly would of outperformed second really downward Delaware historically acquired versus to Basin asset. LOE had We significantly despite able legacy we achieve be with pressure. were which able in quarter, inflationary hope managing Earthstone’s some historical LOE both the costs in the we how are on efficiencies on cost

a of the Just of to down to after able sense in LOE give do been we’ve what you we acquisitions. make managing magnitude

BOE LOE quarter closed we half XX% Southern LOE XX% our compared Basin at second two second down per year, Midland that the of acquisition. at cost BOE Looking to per in and last the was acquisitions

a operationally, environmental We Closing stewardship. all on by highlights we our despite have cost of improve. a We time the well. results maintain asset environmental Chisholm Bighorn as we’re area. gas intensity that assets released reduced that All and some seen ways in operating approach and this to With that emissions demonstrates in earnings, and we assets XX% In with of that been to year-over-year. over the that right efforts our updated our the seeking rising doing BOE have in heading disciplined per data of are we a reduction in way short LOE the environment we’ve in. period XX% thing our very few thoughtful XXXX, greenhouse

down flaring side flaring side, XX% the intensity flaring XXXX. of with X.X% On in flaring – gas on reduced produced we intensity the by to

made over that, Earthstone improvement. we the With Mark. acquired All will environmental of impact I’ll have standards With operational and have apply to for acquisitions opportunities which the in additional we turn assets to XXXX, the

Mark Lumpkin

Steve. you, Thank

As usual, and details additional a quarter. some I’m metrics provide key provide highlights going for time this and meaningful to the to few take

breakdown can results detailed release you know, you XX-Q of find a our both in were which and yesterday. earning As our in our filed of

details some activity with begin balance sheet surrounding balance me impact let our of So, the ongoing sheet. M&A and on our our

quarter, credit of $XXX to extended increased end to years base elected billion commitments. million we had in the five process. the We of outstanding was facility of a our $X.X with credit of the maturity $XXX borrowing of facility million of the total quarter debt As the and the second that on during

during issued second that also including to total the Our $XXX out at when debt notes came end million. quarter the unsecured senior we quarter

the which the down the credit million $XXX signing conjunction $XXX down of pay with closing brought upon additional we balance elected In and the current approximately the commitments Titus XX, which increase the July million total on of on During down million. acquisition. to an commitments our to million as facility from million we credit on $XXX month we July, brought will facility, credit to $X.X expect $XXX which week, billion from lenders, agreement, incremental next to our obtain of the of $XXX close acquisition facility Titus existing debt

will We around draw of we of around pay billion on which to around total on credit funding $XXX at the facility July balance which million to $XXX current debt on XXst bring the adjusted under cash our to based our facility, expect bring credit for million to closing and as Titus, intend $X.X Titus.

during the for compared Bighorn XXX% million, second to quarter from $XXX of production incremental second full of quarter. assets a the the were prices the first $XXX quarter-over-quarter the approximately was commodity XXX% obviously of was Our and strong a million quarter increase flow assets was to cash increase quarter. a quarter the plus both and represents Free EBITDAX which quarter full close what a Chisholm very by driven

free continue credit of earmark to flow cash for debt. facility near-term repayment We

of day, outperformed second the our comprised per XX% For to – remain expect Titus of target with to production is above X% impact XX% that which excuse guidance. natural we X.X debt barrels end, oil, and From X.X of gas guidance assets. about below debt acquisition standpoint, debt quarter liquids. our of the and including EBITDAX was the to This our midpoint times, was XX% EBITDAX quarter, the target year at XX,XXX second still natural me, of we annualized times equivalent oil the gas,

related also our came to and part activity in which had production volumes to relative NGLs. disproportionately forecast, we a midstream also frac owing and midstream it gas to less higher than bit anticipate, guidance above to but and in volumes exceeding oily While oil downtime was than activity, downtime, expected our impacted NGL and gas

as significant expected we XXX,XXX guidance to production quarter million end, BOE both added $X.X XXXX by we million compared Titus. first acquisitions our XX% of G&A updated per to of Chisholm much the greater low which net provided BOE being now Total $X.X in in day Bighorn. the expect company highlights be BOE with On compared near-term release, quarter. and to basis. oil. have remainder quarter, with decreased G&A By the first XXXX volumes incorporates per scale of less cash for than to staff We $X.XX about basis BOE per a a to the basis, benefit was related cash second the G&A the half a are quarter quarter, earnings in of given per for to pushing on production closing $X.XX which of XX% loan [ph] close year as the This we BOE our metric a was average by on per

about full modeled quarter, was guided $X.XX below great LOE had BOE a result per the front, XX% which bottom was of year Steve the our On really in and it. of and below we the range, as was we candidly mentioned, recorded how LOE end

increasing Titus, and still year. account But on year moderately to in be cash for moderately working LOE for We’re guidance increase of guidance for G&A those. to we beat also our our the the will both

the to million impacts in relatively for for of had currently capital the quarter, the impact of of in which as inflationary provided second in we to account second Turning earnings guidance spent but addition updated some pressures. the the closing base the accounts our activity we’re rig expected Titus expected levels seeing inflationary some side, $XXX.X balance cost faster a Delaware of incremental expenditure drilling quarter. forecasting little are the on than in to and the drilling lower throughout continued the year, With program, greater year. also we pressures side, fifth but account on the release, also for for the We our

year towards We increase midpoint million total the of $XXX an would to acquisition Titus drilling million guiding about million, the $XXX million to is about our to fifth which of this is million. to the $XX up little near represents CapEx second $XXX at completion impacts. and and for half, $XX about $XXX related rig, completions, activity of increment and incremental are base million $XX which to bring $XX of related of a to and including inflationary a This drilling related from CapEx program, activity million is under the in million million and $XX which picking really

Or of drivers little activity XX% want XX% the The cause dissect that and you increase bit, incremental to is the if So to a XX%, of for is? what is the is? by inflation. really increase what driven and X% account

over XXXX. and the approximate I’ll added oil we comments. around acquisition front on the oil maintains about at hedge signed that hedging levels June, and Titus closing of in agreement each it PDP for in the year XX% our the gas and of XX% assets. The for we of day around XX% With remainder that, Robert after back for turn On to gas hedges and both the Titus from

Robert Anderson

Mark. Thanks

results dramatically the our this Titus continues pro will $X.X to the acquisition. with XX value. billion the past acquisition we strip than over around and see larger based of price, latest basis On on which total a enterprise is current financially, developed company the can over closing from And our proved a operationally XX% months. the right recent forma anticipated Earthstone have transformed quite transformation the all the of you As quarter, with both combined bring PV-XX

scale inventory Our without our goal and to done. has sheet. add And we and high been balance sacrificing that to get accretive always quality continue production

acquisitions, and with position to flow to in believe cash And and ever As our us I synergies operations will going get operational we as enable in identify efficiencies exciting would to better to of past able not we’ve competency leverage we will been size, is to We forward. being completing any Earthstone certainly of of substantial potential continues better larger that make continuous really thorough. believe less at our busy optimize before. only have there integrating core a been evaluating job it’s than to which the generate excellent of rate established the opportunities. a we’ve scale. improvement do a continue and for I it with us which power increased an management And to that think note potential today, complete believe years M&A at characterize It’s our we and a given been the level important couple future purchasing does these upside our economic but acquisitions ability better free significant team

potential put acquisitions all same approach prioritize disciplined technical and our value. shareholder and the continue else, all financial under And microscope. we We above

the sheet. and complimentary us consider to that maintain strength criteria fit allow our balance assets of continue will to We our stringent

We of event. could be a XXXX return shareholder a possible program evaluating shareholder early are stages and that still expect in the a return

However, our and priorities on executing near time program. be integrating reducing our the assets expanded drilling Titus debt, near-term will

once will So, quarters of financial meaningful program. of have a shareholder of belts to behind us integration be our in down we debt, a our the of portion couple revolver have a we operational under position better paid results and return commencing Titus and have consider a

shareholder our focus delivering drilling through financial results. through balance acquisitions, healthy creating continue strong value We program, accretive organically maintaining sheet on growing a our and

to take operator Now all questions. that, a we’re few with glad

Operator

Instructions] question. Securities. Truist Neal Please Dingmann your comes Thank with first question state you. [Operator from Our

Neal Dingmann

morning is without a look done adding guys you Good My Robert leverage. on at versus scale growth question much now on first too morning, job have team. you and it, shareholder is fantastic this specifically, that growing returns

anytime upcoming you guys you of a whoever building if, think sell talk one, Thank cash if get you. between this getting about shareholder just you buying soon? the and for decide can I’m all of – I could on you maybe back ladder at would do those about, flow wondering allocation could two further point, return and if how And scale so shares to view, free sort and this

Robert Anderson

past Yes. laid case continued we we’ve debt adding to to first, Thanks scale; we’ll through out acquisitions we’ve Neal. business another our the in few or I as quarters, think gain it we’ll over morning, the for drilling this this opportunities as program have other by Yes, grow reducing look rig. consistently on identified work expanding

Delaware position either then done, M&A consider we’ve we as or increased can’t something get diminished acreage basin. then we return. the that in opportunities the shareholder our Now And

us. bit with evaluation months alternative, these XX still at a We We’re facing And quite volume options good different buying the look are first. all the that here trading liquidity shares an and some last over back created going through options deals. is and our other but of probably

So that’s debt quarters, in working couple still sense. more deal, on let the back we’ve come Give to everything that kind and of let on you hopefully with something XXXX a pay it. where us down execute we’ll ranked us some and Titus us makes

Neal Dingmann

you returns? highest it well Thank expirations of way, No, plan then just of, in Or release and know, such if in of of are mentioned you now post Robert, returns. call the bit know my kind I activity there? whatever, Delaware I the in returns what kind as I that you. rank where second just for sort just [ph] would you I’m another just two speed lease and Titus, wondering, drivers would maybe to all are running And to ask hotter maybe well where the Delaware itself. on see or or, ago maybe, regional Midland, And do because ask to three you rigs running or about second, see do them your specifically, higher you a easier other run there a don’t

Robert Anderson

Delaware we’re it, a acreage going program not great got the doubt continue the and afraid big that any develop rigs, the Midland why our spend it and rigs we’re Delaware. We’ve expenditures issue in two of not beneficial what’s still with our that’s like do down capital capital an there. will there, HBP to or for to Basin and still there position, issues. capital increasing Yes, our We have running running Basin us obviously happen permits. of three but expiring there’s has no the chunk the we’re in returns lease We make the more returns It’s road. to of just spending

We’re plans continue operators the and we – other that just we’ve execute execute on going assets that to on acquired. to where

better grow We’re those just Delaware places. returns. to continue opportunity of both and But set going operations our those in the has

Mark Lumpkin

here. this in I Hey here. chime is Neal, just would Mark

If of location X deck, updated you investor our look the on count. Page it’s

is You now. Eddy our can looking also sort and of of just at what’s in see the That Lee, majority Titus. then locations

three inventory rigs the and So is location proportionate our pretty two as in well. actually to the rigs Delaware the future in Midland

Neal Dingmann

for Thank Mark. Robert. that. Thanks Thanks you, Thanks.

Operator

question next Please Austin comes Our from question. Rice. with your Aucoin Johnson state

Austin Aucoin

integration this Robert, well. Mark, be execution Steven, doing and Bighorn Chisholm Good Scott. quarter as morning, the Nice to seem going

Robert Anderson

thanks, Yes, Austin.

Austin Aucoin

it with rig the the My that fifth first And is rigs has both? Delaware. quarter, rig working going question, this be Chisholm this then or is mix it to going will this in third of rig which to work came to go Is Titus. assets, the assets, of later the also, from work on a Titus one over

Robert Anderson

running. three from running The the somewhere New those Titus just back. that. had going silent Titus all It may I’m they know know be have rigs else coming Mexico at that on to don’t [indiscernible] from all of had the just exactly It may one where We that are. assets point. come left. is this be portion Yes, and

we Secondarily, of we’re be stack one plan, all But to right it’s those to a just going than just times. to our out in up our we cycle more going three may Mexico And rigs New combination. XXXX across develop rigs spread another, shorten as now area assets.

Austin Aucoin

quartile Earthstone? top Titus many appreciate color. slot into And for a up how I on follow the as locations the inventory, the

Robert Anderson

say rock. line general federal revenue premier. royalty half higher And just it. doubt Part in has Delaware with the no I is probably, dealing acreage Titus about is the the less then, interest, economic returns. state them acreage Great of mean, burdens. the net There’s along it I’d than more of rate

our as and why expand we as fast that’s could. wanted attractive we very to program it’s So

Austin Aucoin

it. all me. from appreciate I That’s

Robert Anderson

Thanks a lot, Austin.

Operator

Alliance Partners. question from Jeffrey comes with Campbell next state your question. Our Please Global

Jeffrey Campbell

Good morning.

acreage all, differences, acquisition. time the Titus. whatever you if If or costs. you could First Chisholm, provide at feel Lee of on compare noteworthy Titus relatively the County similar the relative they’re with this trying just a I wondered to get can D&C congratulations there’s productivity time. I’m if and contrast for any

Robert Anderson

Jeffrey, it’s is the question. Most and basin. Sure. almost which of upside a trend, that the great acreage Titus of and state line along value center the is

little a cost of most it’s of we you. a bit little than Lee shallower more a that rock bit the still economically. it both places. will the the in again, deeper, just drill, little are to couple more a So County. Chisholm see so acreage quality to have benches go but and What higher there, maybe returns premiere is north money’s you but up And the to And to competitive going footprints there, side there

Jeffrey Campbell

Okay, great. No, that’s helpful.

to Just kind of return capital asking shareholders. a not of question wider add about I’m and to

close many XXX,XXX locations you You’ve to production’s just large have seem a now Titus. you doesn’t day to or a too It get fill. have noted going holes that left barrels portfolio reach to like after

aspirations just XX months I’m XX point from company months the a view? structural So, of for what wondering, the to are your next over

Robert Anderson

or this the day. XXX,XXX as and to Great question, to frequently, BOE target BOE asked get want get you a quite Yes. like, we XXX,XXX what’s

to want have acres. You XXX,XXX

numbers, great drive shareholder they to but of value. want don’t metric those have value. necessarily market or some You are enterprise All cap

our though XXXX it’ll for continue do So, a with scale rough a opportunities and and look year base we’re it’s what to opportunities at M&A. still continue to come develop over to fruition into and to moment, backend a asset market M&A going there’s, lot busy be the And there’s time. going even of we that will increase

So, take as be asset we’ll fortunate ability opportunities processes. on today it doing. or to and continue to that drive to but we those our to we’ll be the We buy and have base may our been anything, what down not participate to on to able continue just come then And in lucky we’re around. costs grow focused continue is able we’ve like execute or

Jeffrey Campbell

fix If it. Got it isn’t don’t it. broke,

Okay. Thank you.

Robert Anderson

has far. Thanks playbook Yes. well worked The pretty Jeffrey. so

Operator

RBC from Our Petros ahead. Capital with go next question Please Davis comes Markets.

Davis Petros

size time. up Thanks My all there Delaware, the you you out recognizing Good what the that guidance XXXX this that, have question optimal think able for activity kind morning don’t through kind point, that? of Is the that of first do next but Earthstone all. kind pace rigs that picking today? at fives and a third any written those you of running for year company keeping [ph] is to have on color or

Robert Anderson

in rigs lines full time five bit more be grow relatively capital what little think flat higher because be five obviously next and year, through keep the I Yes, higher, a year, it’ll guided is, rig this running than but little to for that’ll a we’ve bit. production to

that’s a better see try we see this sort good that, And executed almost the this well to to hard us the have for is add a for another while we this but expand, up that. And drill, up we we’re on services, but to that maintenance sure good probably pick opportunities plan. maybe up wells it’s opportunities try but as for rig, we of to us. a interim as plan We’ll depends, XXXX going could we this as size capital than we’ve and anyway. can it’s as what Just where we’ll in have like in I executed to we pretty to think make for expand, point, things or and drill and spend to but money, but execute, and a the out we spot ownership point

Davis Petros

correct third and up kind this just to your you of go it. operator building on another it could a rig? rig, that remarks, prepared it quick but back? to up hold have some Got on picking follow you’re I that from And guess am to you of to to find year? theoretically next another market Or this something you’ll will the have is give Or and I

Robert Anderson

have we Delaware. the as third this for get back, it don’t No, if give we to rig

able be pick and up rig this keep it’ll we’ll be So, it and long as to as performs. it get we fifth it as hours

Davis Petros

Good in great. work one I guidance largely to would if little cost color on. you kind provide related And that be Got the operating That over or any bit is it. the can that up one guess of factors can there crept last sneak back some half. a I hear. kind of moving in

Robert Anderson

that. Yes, the but we’ve There’s in guys great still job that that fantastic reducing quarter and below guidance there’s did date we inflationary a the LOE maintaining, and the some a a then every doubt second Steve to little pressure. workovers that hole no dropping did have as in job and well, operations done do Steve’s by those Titus bit he’s add an time that the of got LOE. climb to acquisition And the starting hole we out scheduled and acquisition we

that for back the incorporated year. of half we’ve So, the

Davis Petros

Makes it. time. the Appreciate sense. Got

Robert Anderson

Dave. Thanks

Operator

Thanks. go from Please next question with Jay Geoff Daniel [Operator Energy Instructions] ahead. comes Our Partners.

Geoff Jay

guys. rig. additional Hey the additional frac that with I Is just was kind capacity of there required addition? curious with

Robert Anderson

rigs Yes, about crew time. and it we’ve that’s what engage three to full got takes a frac

us to, of a in We ones slide the some frac going they we some And opportunity couple some work that away. crews, using opportunity with for see were them see so with to Titus different some away, future. going maybe

that will of like So there’s a time. doesn’t whole lot a there cost seem lag us

Geoff Jay

or and that’s can a they give their of Excellent. are crews efforts again lot a heard just start your XXXX, at us outline what the I What up we’ve you? but to there little least, how capacity like. formal, progressing quickly, comments about from E&Ps locking sort And then nothing for keep of on know other that efforts

Robert Anderson

contracts. process take Steve renegotiated I’ll and here, of rig chime in a stab Sure. we’ve in or are the can then renegotiating

And sort We’ve has and It obviously company. a committed, creeped of not for job great frac and everybody partnership. and We’ve for years side manageable. us. we the us. relationship. cost little bit in for in that’s guys companies the those contracted a job Midland They’ve worked up. The a got been plus five using they’ve well a a great So for it’s typical it’s the lined done It’s frac Python very got sand next year now, as expects, locked but already. up done up sand’s vendor

and about ordered good we’ve pretty advanced wood. and in then Now, casing knock got on well we feel

well from keep We past casing practices year. to us and served that’s have the advance this of continued well ordering in our

Geoff Jay

for guys. all That’s Excellent. me. Thanks

Robert Anderson

Geoff. Thanks,

Operator

And further closing I’ll floor the Robert back for are this questions there time. you. at no remarks. hand Anderson Thank to

Robert Anderson

We And you appreciate we’ll time. or next everybody. to the quarter interim. thanks in Yes, talk your

If you call. us a give questions, Thanks. have

Operator

conference. This Have a All concludes today’s great parties may disconnect. day.

Earthstone Energy (ESTE) 5 Aug 222022 Q2 Earnings call transcript