Northern Oil and Gas (NOG) 5 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Mike Kelly	Chief Strategy Officer
Nick O'Grady	Chief Executive Officer
Adam Dirlam	Chief Operating Officer
Chad Allen	Chief Financial Officer
Jordan Levy	Truist Securities
Scott Hanold	RBC Capital Markets

Call transcript

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Operator

Greetings and welcome to the Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mike Kelly, Chief Strategy Officer.

begin. may You

Mike Kelly

for thank of and morning joining for financial us the Good second you quarter discussion results our released Northern's open, This first XXXX a quarter. market morning we for the earnings before released.

release access within Relations filed website our can few next days Form You SEC. on will our XX-Q Investor earnings our be the and with the

Nick well. morning investor James We on the our CEO, as a with morning this here new and deck our Dirlam; I posted Evans. Adam joined also this am Allen; COO, CFO, O'Grady; Northern's website Chad Engineer, Chief

Our then, regarding agenda todays QX Chad QX financials will follows. of XXXX give as comments Nick, start After overview Nick will review Adam NOG's will for the updated strategy. you and his and off guidance. operations with an is our

executive questions. Finally answer be will our to available any team

reports these different annual report earnings that on Form forward-looking be contemplated Form the statements. update and others, our let any forward-looking forward-looking the We including include on as Please quarterly these with Litigation XX-Q. obligation our SEC, These statements advised go to that uncertainties as to further we Reform risks Those to that expectations from in amongst results Private your are Before may and cover to materially well though, language. cause we've Harbor risk include the release could meaning the disclaim Act. statements. our in of be within the answers by actual questions forward-looking matters described our today Safe remarks any Securities our me subject the filings statements include XX-K

Nick the these care O'Grady. now certain and CEO, reconciliation cash free to flow. this taken measures, call adjusted in closest hand can earnings this including of Northern's call, of, the financial release that During I issued non-GAAP morning. that the to measure we over found we With GAAP discuss be A conference may measures EBITDA will

Nick O'Grady

of significantly Good morning. continued We've for two expanding XXXX, new a joining I to balance improve to first basins we've very sheet. this thank everyone us into would like morning. half our had productive and

investment exceed key managed volumes focus off one, a one has a Number I business a we In as rock to to four the Because able our for monster the actively increased pace on an by accelerated the ground both Williston external forecasts. would in internal overall to volumes and in of today. XX%. our of been that Oil's and well Strong approach Our by model. outlook like oil robust being realized resulted never points. completions quarter is flexibility disciplined of had decreased Bakken increasing handsomely highlights activity results differentiated Permian truly and augmented game Northern benefit quarter presence us basin and of core Northern's gas performance where and paying solely ownership playbook and levels. and wide basin and pricing tied show both

board, and cash share and the most new the above All EBITDA, in financial our company. metrics flow, production, of flow forecast including for earnings cash cases, records per were free across key

were expenditures Our less capital than forecast.

to by rate in with off. second our Our the the balance on over and this our a cash free end we and run the Bakken of estimates expect projections one recently quarter, leverage expect year work to less expenses improve, end low cash XXXX. initial in fall exceed we than X.X fell flow below as basis of free our in quarter decreased ratio now We times XXXX. meaningfully for the to cost to assets began Marcellus updated in outlook unit production get times flow as costs integrated and tail the two, a sheet Number continue our

to rate even the today. down strong of which last But new can. having and just remain basins arise more like through nodes have the opportunities also to related expect cash many buy employed landscape would not Permian return. to pipeline return We interest across M&A than I in value than out to June all cash produce be XXX point in is During not that dividends backlog four, the out. XX we M&A want XXXX, accreted XXXX three, grow. with than able and more Northern's would, We will quarter’s States. we debt. Number money now our do late capital because United sole could free XXX “Wall work of our continues The more any in million transacted returns we M&A to conference by to free on Street cumulatively discipline expected XXXX. shareholders. recent with call we million highlighted current more still XXXX. million money our XXX Permian cumulatively piece than because and our transactions, million only as buyer to deals” through To pricing debt here retire and if be acquisition, of to flow the transactions that we selected It's in have in of we holds, clear, many to estimate XXX Number of on of bank continues we deals on we leaving assets XXXX as our XXX prospects cash of best as we to continue over

increase Our common XX% board share. to declared of a quarterly a dividend of our next stock for directors dividend total per has $X.X

continues and steadily the accelerate financing, to increase to our years. expect continue quarter last outlook successful we associated have dividends coming Permian with our the In to conclusion, over the the As in acquisitions I targets. could as we strategy dividend mentioned improve M&A exceeded

flow We are ahead our forecasts and outlook. cash production free of

shareholder We continue the returns our our sheet. improving while all balance to grow

is excite the and possibilities our and creation to testing quality We high for lowered through the of market have impressive costs quality The us. value acquisitions. assets unit scale property continue

it and run company investors joining Adam for me over With to to for a I one each you are thank truly that, want investors, Dirlam. turn by every today. and of let us We

Adam Dirlam

Nick. Thanks

We've percentage those working reload well in reasonable Operators been for down to more drilled inventory, new a proposals plans new the net well on increase outsize seen In during footprint. and started pick well our across seen to XX.X have started steam as track notably, levels proposals to steadily two. we've increase of play and pipeline operational to activity have we out continue activity but uncompleted up the their pick largely quarter their brought drills. a Our continues an online Bakken the expected. wells of Drilling remain and they we've acreage as year quarter-over-quarter. XX% up

quarter up XX elected we the QX. AFEs During from double than to more

see yet have to well encouraging, material not cost. As we any overall sort if inflation more, of to

from versus During down We've QX the proposals less $X.X levels QX of benefited higher quarter new operators. with average in X% our we're deficient our some and average. activity than actually having million most

early right buffer and stands with which July able with we modeling to the of expectations. it assumptions pleasantly completion an and with on completions remain for commenced and line to internal and well savings the been we've average production depending X In our been we've been Cost efficiencies at now, seen pads in the right our well surprised had generate. methodology conservative cost any focus Marcellus in inflation. X on potential operator our in cost continue million to As to-date has a a) million initial been

Turning Permian. to the

responsibly now future have since NOG's the on net than closed for entering we million of up stronger built day. position outlook $XXX XXXX gets than one Our scale basin the in deals worth across acres. play, we year a the have by In and less more over

in the for a top to the Bakken; build historically the which best tier the really is basin. in in levels successful Our playbook playbook remain position partnering in out present play opportunities compelling we've continues operators Permian Northern. the same elevated Activity the used with

to it pertains flow for game overall NOG ground a As both we extremely are busy package level. at and deal

us. in closed and barbell set If the the the over basins. prices. game approach from and enabled total, even we regions has Bakken adhering were up to spreads the rates, us between lower across ground Permian, the ask competitive our ability quarter quarter and for X.X almost evenly be in migrating opportunity the This operators to net diversify advantage we on to acres. front, picked will XX of commodity hurdle double various sensitivities the bid transactions pivot number while widen areas, net between as for two in transactions what the first XXX split certainly signed starts wells a the we run the out up On In to we

more exhaust we opportunities their the calendar, it's in progresses. noting are year we'll smaller see the expect even we and where see midyear, we competitors budgets that Given as typically, worth

at see activity the As looked for packages regardless will XX over larger new high it on quarter M&A pertains focusing potential that environment. to quality price during assets we the of levels

With a been to we the the And only ranked theme is available, of will discipline evaluate meet force has select opportunities multiple are high means that the market. and in Consolidation a volume our return alive opportunities our well. current criteria. prospects in few continue

CFO our it Chad over turn I'll Now Allen. to

Chad Allen

to I few with go summary Northern's performance. this on a Adam. quarter. quick a highlights over have Thanks, for Starting financial

XX% XX,XXX XX,XXX day, averaged sequentially production oil QX and and of per day, XX% of QX. barrels equivalent oil per Our barrels up over

XX.X and a for million BOE million, acquisition over $X.XX quarter, to acquisition. XXX.X was for expectations. related to decreased also during up previous million significantly differentials an second per excluding quarter, guidance. the and trend over XX% was than spending internal and XX.X $X.XX operating EBITDA were onetime XX% and was Capital the below on about quarter. our QX. of Permian Wall QX over XX% this also quarter X% free Well at adjusted costs XX% Street excluding of which Operating expenses Cash, estimates transactions Our the was of continue per better down basis. came improvement the flow second in quarter Lease the quarter approximately Street unit at costs ahead cash the and Reliance G&A internal Wall midpoint Marcellus respectively our first the the in

the six prove and equities free entirety Note produce remaining the extends our XX liquidity debt continue fully balance XX.X year our the the million us of we through Marcellus than last lien This maturity XXXX, offerings of first to equity profile allowed by end VEN and and sheet and of of months flow notes. since free We in the flow. our to retiring cash our wall and In and more million second transactions cash Permian has Bakken XXXX. of

XX outstanding million XXX around in of the Permian week, we hand. of for forma cash XXX this June approximately liquidity facility, our available pro had closing on leaving earlier credit transaction As the million of revolving including

in included was now earnings on that our Moving our XXXX updated full year release. to guidance

guidance of We have the our production properties will driven plan likely QX and premium into That into QX increasing QX. the profile integration by somewhat year, increased in some our primarily for a translate flat in QX. production development of the before again acceleration

shift Additionally, to gas we development into some our expect planned XXXX. of natural

our guidance enhancing in differential and properties the been of basins. free that oil and of for CapEx Oil cash flow That pricing function our dollar the XXXX be strong XX% on a by end. levels. as to cash XXXX. lowered be to high will over at pricing noted of A for current Williston Some Permian flow percentage XX% oil reallocated guidance in should increased has

of remainder guidance of a the on Our realizations Marcellus realizations the guidance our This XX% pricing strong year-to-date. updated implies gas inclusive for reflects year high properties.

universal cost that than board is the cost the in much fairly experienced LOE across we G&A and it's lower QX. reductions with in On guidance, reductions

of remainder rate pop the forecast be $X.XX run guidance the LOE BOE. this was LOE this note BOE, a the is prices guidance in our our Do processing LOE. are modest $X.XX have benefit of charges QX the higher our end around low which as increasing impact of should the because some contracts year $X.XX for per will While to per to includes NGL that numbers

margins. higher by liquids gas more from net prices to and a However, offset and will than these additional the revenue be benefit be overall will

for production oil gas of our to basin being X% simplified to also tax XX% company at guidance have We a account three sales. and

our Finally, we high reduction. to reduced forecast $XX capital the end XXX expenditure million of a million

could full turn stress I'll focus as and we're spending higher that, disciplined a With and on operator prospects returns. are higher not to the chasing for over quality prices maintaining warrant approach lower Q&A. cycle it we While tested certainly

Operator

and with question Alex Our answer time, this conducting [Indiscernible] from a At we'll Bank Instructions] be first is [Operator your America. with of Please session. question. question proceed

Unidentified Analyst

Hey, guys, me thanks call. the having Hey. for on

Clearly, we breakdown you the as report is things Marcellus and the of realizations. on some pretty So my mean, elected first gas saw consolidated. question just I between kind really Bakken. the to guys impressive

split, any far color on to as try you well. as production could offer then just the as there that get So and

Nick O'Grady

Yes.

Permian. as to As was north it's production mean, offset XX% in far split solid call there. to then that I I Bakken certainly between XX%-ish realizations XX% was there. the very Bakken and and in we it around by the realizations around that the XXX% saw And Marcellus our of XXX% think pricing were

Chad Allen

of Bakken, and XX%. XX% were Yes in the production, Alex we Marcellus. terms In about the in

Unidentified Analyst

anticipation Got it, that's hedging. yet, you're for some your question have other helpful. layered guys midyear. not then It I an leverage was at you in ask on getting of more to have looks the And like XXXX. wanted there hedges just but Obviously target

we looking right strategy? to should hedge your you're So curious, any just change at now? beyond kind And getting of with then target happy when expect that in Thanks. you are position

Nick O'Grady

Yes.

there's comment are that as balance improves, think first no needs credit I hedging our our question to that protect my reduced. is sheet

roof. basis we were about typically due as to tick from balance continues periods points hedging holding because But demand also quarters. is the world XX earnings restrictions. artificially. a X% beginning through the in is at percentage $XX is X,XXX in here. of about our we to As anticipate would month oil XX% back world's that rolling leverage to on cartel the our three noted the X,XXX to down XX% sheet requirements. like Oil of or about because to is not largest supply out so our basis our is is dividend I presentation internal those get world ease where cartel to down our previous about the real let's The near But the improvements target

going the prudent upside financial beginning was for o me sentiment. should inundated massive have $XX our has the nor the action is everything at because management also doesn't wildly government hedging to be term forever. telling dead never to exactly an products. with predictor in we I me. this of a bullish to writing year variant, kill concept of investors short trying of like scripts being been oil You Delta be and the The accurate demand investor feeling because feel

and you're Our telling you're down. live consistently another talk and panic in of of going me asymmetry going general term But hedging. view value our EMP win about to that a would clients’ XX% investors much the some, you're the of only hedging zero, is and to lose time of start have long all to that their fight when hedges in mode consistent. day is counterparties We oil some. discipline We importantly hedge meaning the hedging is rather be our to breaking

And or seems and will environment well this less It realized more less to expected a completions activity profits we hedge. existential the This wind and a on curtailed about And and in more high. throttle we to hedge naturally $XX in with XX we production went quarter XX XXX% second we production and more quarter are quarter. because as see in quarter a me. than XQ, higher our development was example, net barrels oil gains. like moment. was that. an an XXXX operators ago, their than million deferred we year our nearly more of trade we up million day so more made pricing we to XX capture In had downtime, accelerate fair that oil of this hedge for prices plans proposals Compare naturally We become a where because

we versus unhedged gas returns in what one you on want But my in realized if be “play XXX have and oil you it you find good to XXXX hedging XXXX we future can into oil and for when we are by For have over bankruptcies in would are. we And it performance tell locking comment XXXX I given No on stocks knows know coming and mile. for what hedged incredulous the bet hedge prices a I we gains not. in XXX a and And saw you in ones those there over if bit that the were or hedge upside” been. the investors XXXX personally lost would alone. million

about XX elected IRR average weighted The last north is hedges since of this of Our wells year XX%. flat $XX. we've at added are well quarter

So explain gamble. me to why to that's it necessary

checked, trouble first a or gotten this last And slaughtered. the We optimism time get the sheep have It's industry in I that sheep which much a be to and roll place. dice is wolf. choice into the has so candidly mentality here wild a

a So strong to to volatility, say absorb team assumptions I'm balance while when sheet. leave our That want as I throw unapologetic earn returns that any room false alluded to over to capital on we enormous for commit projects will going don't we think naturally beginning, my away rounding when will our sure be it's and the more being make we I be just I because do in balance that sheet upside enough to, Adam said, error time. on

Unidentified Analyst

Yes. very Thanks. Appreciate the Nick. all. thorough and That's response powerful

Mike Kelly

your Hanold Please Our Markets. RBC is Scott from next at proceed question with question. Capital

Scott Hanold

not you tell the think Thanks on hedges I sentiment industry that is mirror more I'll that. agree I loses and proactive. Nick they're because I this, reactive just and on your

push elections? EGT gas So that moved your Adam, detail first properties. My there some moving Can into talk you guess, give does development there plan look little broader consent more it oil a that fresh at the that that logistically capital its just getting you of move that very projects properties development year, about that that your a I you could is appreciate It's was to, insightful to opportunities views. question things capital in you oil in just or just, XXXX your to. then think how mentioned I you I are a did come work hear. some and seeing and take with more out more nature just Do little for then to that guys are bit

Adam Dirlam

Sure.

function later we pricing kind Marcellus slated it's had goes, a of added a of the at pad year, look And as And call IRR roughly We've far Net plans a and As QX. the kind initial X.X. since about towards taken July. next were for of really, wells early it in there. realizations. just plans in

And effectively early pushed be so year. to expect we down into next pad that

ducts. locked work from the types the of is we've we price the activity We've was in so the I the plan a quarter. and things increase effectively as got make seen operators that's that got more and table of on foreseeable working north significant already and loaded. Marcellus as a so Permian, realization. far I those the of levels, both the the All at mean, second AFEs looking we've XX third and double Marcellus the tweaks to-date, future in And the We've come kind based quarter And year, no than in seen rate as to AFEs standpoint. Bakken on availability, the door. market annual with the for plan are every effectively just

from six well, their was continue they Flex picked this results, certainly encouraged kind from we're continental, I we've the got pointed all think expected release, election and flywheel spot quarter, that And the and plus adding we payout. up really to of activity think by acquisition quarter think that quarter in talking core and there. AFEs forward, operators we earnings Ovintiv, I we're of our was And the of months out during XX%. acreage work start And received north that a actually focused that going slug rate getting so the as I to a towards to about our activity. to see during

and love So be them goes overall the But the both returns. variability certainly and far a basin. overall to obviously one in competition in function of of it's things. our game to a that's be as more to ground going And overall getting also of function kind of the efficient operators activity levels see going after as

to we continue continue alluded of run down layer And sure hedge make And sensitivities it's that so activity out to, we're going rate those in commodity that will to returns. meeting and our as Nick as cycles, returns. to we

Mike Kelly

are Mike, with is out a that of this also Scott, clarify too. just out pushing thing pushing that little to CapEx one we're Marcellus, want And while bit activity

in to higher bringing and year. you're free realizations. going this it's flow terms of kind he going So be cash as And economics it's a basin of return period where just of additive in for be production then first to general on additive also, had from rate

Chad Allen

of than Scott money just a about think simplest have that And spend given period we generally fixed speaking, to to it, we of that generally any in the way more amount we want And capital. have opportunities time.

And so a it's just force ranking.

oil profile robust with return those of obviously, are lot so properties higher. the a prices, for And

we so that, time. some just And to we to move it and of shift capital the from time

Adam Dirlam

the bound kind activity AFEs ground right. That's such. of deploying It's of the capitals and for in game function -- managing

Nick O'Grady

rate this unbudgeted. that, Yes. of as it mechanical. probably it not see that and have room simply increased stuff our much then they pretty budget the the was makes simple markedly in consent which for in it or you consented there's have is have, because we returns that But a and may quarter when that can

Chad Allen

And at at talking you point. this that's Marcellus look just Nick the Right. on again to obviously, we're when point EGT that

not the to so this did you Because, into forward assuming they to that I'm question you. you stuff that made year? that XXXX consent So the election mean, would I versus if push push this fact, want in

Nick O'Grady

all made think it sense conversations sense fall the I had world. have wouldn't the shoulder the given period differentials and for And think for about made us. numerous the in season, I it either we of into

Adam Dirlam

and it's much there's more JV a Yes. true, mean, approach. a collaborative so I

discussing That's I making having No, we're Yes. looking exactly the decisions meetings things So and that. for these that's quarterly monthly collectively. was yes. and

Nick O'Grady

it been mean, Yes. on I mean, it's disagreement economics, if there was, right. I a pure was

we very NPV structured, could difficult some that's way course, But major given a question. that, that's the not you're have and had we, enhancing? if of IRR, certainly It's we when expressed didn't. but doing disagreement, So something

Scott Hanold

pretty that. that's I of wells this we would if you expect so base well question of load the curve, Got here year-to-date. are mix things to, if great. more very far consenting you're are you its some on you you'd appreciate wells turned, it nicely. strong you a guess it AFEs? look with think being just show level kind And Where and put a on mix where of those Is when the that pretty I said I seeing consistent based some it. obviously obviously at then of And second that where page across now. little a stepped now should No, degradation expect X, that? it performance I the minor bit I could ask and up Or

Unidentified Company Representative

this Scott Hey Yes. is Jim.

that I what still core primarily the we're are areas. AFEs the is focused seeing operators think the in

I conservative think a approach here. they're pretty taking

start to We add in tier rigs the operators yet. areas two have any of smaller kind drilling been

seen of think this we for continue we've expect for I line far what kind performance in that this So going would rest of with at year, year. will least so the well

Nick O'Grady

think the United don't well States, any that because actually equates going probably basin I economic. XXXX And ever so know, you see, to few were and to just performance in you're

to be in the wells XXXX. our above average best So were U.S. in are probably But that well they're damn and XXXX, the still will close the five pretty history. came online year

Chad Allen

as mentioned point bit able we would operator of I one higher they've little forward mean to I kind before. to put efficiencies mean, flex the the I the going seen, to activity and probably that just comments a some most in I Yes. the high be basin got will of and back well, just that we've well. top

Operator

with is Levy Our proceed from question. your Truist Jordan Securities. Please question next with

Jordan Levy

and Good appreciate morning commentary. the I guys

move the wanted both Just how maybe talk and to you ask see prices dynamics kind the seeing to you're the the in of as seen commodity Marcellus bid in as that's spread and if Permian, we've evolved, Bakken well, of in could up? the and

Nick O'Grady

as it's just we've a it's, oil chasing of mean, guess, it's but counterintuitive, little opinion folks things. I seen a on as activity, Yes. I bit pricing. function And certainly well

that be price So something got at swings few doing. to But decks, competitors got not we've that's bat. we've we're running $XX going are quite that a

interests in Williston is suppressed you're But disciplined core kind types of working a foothold we elections, ability and they're gross And relationships also variability the a economics of a and to. the levels competitive and But we've Permian. relative lot are our deals those basin. of on just other. got four managing well, rank, so door two the basins based the then walking the to competition more pick it's activity a landscape, to rigs, probably Permian. of , more activity the little in overall bit basis. the as contacts staying there's there and in able our forced of different of operators competitive levels, a each in on lot really, and pivot between the the activity terms the or all the having up exposure function overall to up And it's as amongst our that just the daily backyard, not Obviously, the and given being Obviously nearly our and there's them three things on where

barbell And so that's seeing that of kind why you're approach we've the taken.

Jordan Levy

Thanks. new looking lines, evaluating you thoughts you it you're at? versus as on you're get areas That's interest color relates weight deals great to also those similar and existing kind and to when like want I just looks the booster pipeline transactions along can how and what positions of your where

Nick O'Grady

think Yes. a I of I assets, testing are mean, There pretty picky. lot we're the market.

last year is good and app first we that from now even good more I for thought relatively want, a that led intense. I volume fit the of for our strategic Some the frankly, just die than But assets things that during are the to we've threshold also between highlighted are return that I engineering competitive. a again, and each are are a not, half value, They I'd what sense not one and are prospects and is becomes and probably think that's bill. as perspective. out that And but not pockets continue some going one is the makes thing passed getting maybe competition, there assets quarter there may solving up. there line of are It's fine thresholds. pockets and they team the through rigorous are meant where on. probably has less it's work to you that there them and The in say, appropriate, first it's of that would was there were the highlight, there

size And continue prospects assets, and where that the get high generally scale, where to be can think others quality and values, we build so on. size both add good can't of and are comes areas those competitive as we we there

so think towards today. the of get wherewithal mentioned of million there few a those you to checks I mark, $XXX kind that we've are And as of write kinds

they companies solving of think don't for and I we'd the there down at many follow want to have where so to price it our of create the we that value, the because which that end is really of have, love multiples. that that's that comes we ability just higher are public have to market see the day, path lot And a out to to lot a assets

the And on cash would end buy pay multiples cash buy At in sellers. they on so them those the basis. day, we to a the like to market they them the just want of

Jordan Levy

taking Great, my thanks. questions. Thanks for

Operator

Nick with Please who from is Pope proceed next question private a question. your is Our investor.

Nicholas Pope

everyone. Morning

Nick O'Grady

you? are how Nicholas

Nicholas Pope

you guess operate from was Great. level bit now? a interest thinking versus I where up guess comfort is the specifically? you've what creeping a you just little where I working working about, could been And hoping – talk in Williston interest Or guys if standpoint things about on are the I Hey,

Nick O'Grady

mean I wells Yes. a means like XX risk anything large Being factor. it's and else, out No. in a database. think of four we have were I adjusted every drilled that that

not And working would we higher are comfortable where where so periods places there get interests, there and be. than are normal with we can

may then because which have there balance but risks that or have is are do operators that, of sure, midstream areas we're Smaller we to and that interest. So we working have I we development parts think are sheet you risk. with or in And issues, comfortable important. want very units that in upwards we take core operators. not have these risks, alignment make their would XX% core where own And

do, little risk, that depending of do taking operator the best ultimately, motivated you're a disproportionate to job becomes be a to amount to If on riskier. the bit

And upwards a risk end interest. many of I the that's underwriting the have working have of because we operators but came well to worked I where depends, the risk so interest, into goes towards really think want frankly. that we the larger that you larger the are our add. is, second that we know, And units, some ones factor, single just the of the have quarter online, it think with XX% I working don't the the development that larger risk, units

Chad Allen

Sure.

all mean, sensitivities corporate point, decks. Nick's in I is price at our wells X% Williston the running higher. I around And maybe Delaware. little to to year-to-date think a is doing average and total, The around we're bit a added different is production

The our overall and into not chunky type a based rates and willing where unit and we kind the competitors base. flex operators could is it's it that regardless circumstance And be the of a paradigm our of overall particular something these that in exposure well a a quality of having in asset on one that take. of bucket it, thing whole of lot necessarily obviously, activity the other more drop reinvestment want they're for to is X.X have interests lot plays up non-working to of

provides that so well. prices competitive opportunity things as pick And an to at us it up for more

deploying just and really capital running So such. as sensitivities

Nicholas Pope

question kind seems a Got sounds really sure definitely my wasn't I mean, was, like you answers higher I working recently, it mean, think it it's interest. guys there. that it. what crept it here of was like I of up. and level kind I participation for

helpful. Thank you. that's So

Operator

is Instructions] Jim [Operator from Please with question. proceed Our [Indiscernible] Partners. question next your

Unidentified Analyst

lot that productivity low. that curious that inflation just of and of there Is bit with price services a various it and a you're I've creep it's Or keeping competitors little on seems have function competition the for a your and seeing? that basins. you're increase, a of not found oil just to lot of I Yes. any is that you're calls seeing a be been material because

Nick O'Grady

is of with who structures. it hard our really in Some think some of average are down to cost which of development to active as just statistical their operators do has that bell it curve, have the in the worked work

average our so And has of the fallen become as slice a bigger they pie.

The that other experienced budgeted the for factor late last down was is just year. really that really we tick never

$X in and those million significantly his been we've $X experiencing million to And so less budgeting call, numbers, in than that. as seven mentioned, Adam

is bar extent set the never inflation there numbers affect really won't because that levels. that our to really those that at we So

Adam Dirlam

management then and it's Yes fun flexing the the operators. of a active most efficient overall to the portfolio just of

seeing you're quarter. what that's in so And this

Unidentified Analyst

right, thank you. All Great.

Nick O'Grady

budget have is our two three It we as those this effectively cut realized delta year, between times the we that worth pieces. noting

And again we when the and asked so, And last call. made we alongside today. the doing reduced CapEx, summary in obviously, that, acquisition, got question, that it Permian base we obviously

Operator

is Markets. question proceed with Our Scott your Capital question. from next Please Hanold with RBC

Scott Hanold

a got follow up. just I Yes.

some that number basins. can that seeing been popped about focus a so little opportunities in your or like, can other Permian of talked to are up areas certainly you has seeing across and You us pursue? opportunities interest Bakken, Eagle see Ford other on you been is a there you're wouldn't places there of of give remind color as but far, Northern bit you basins expect the And

Nick O'Grady

have have Ford obviously we issues have production trifecta, think have number base the that assets want which none have we them I seen passed of economics. upside, and is unfortunately I muster. Eagle think solid a mean I Ford want the the really And a good transactions, bunch Yes. and really of we of with Eagle

generally, three they've assets in in areas or we've areas, Eagle limited tier volatility core so, And the the are vulnerable had two, the tier seen price very Ford, in them, going inventory. we've or that either any or to remaining be to seen are that

the made been the one of so dominant is much surprisingly obviously, year, political spot. actual at of then it active on think that's that's been that's in this I'd looked thought it's the terms basin busier area the basin is slowly right that, Permian a a are find it of given lot deal focus would Obviously, into and and being we have most really Bakken think than But was pure the difficult the flow coming changing. would I we've be that work overall count. an but of to And say a the in done surely them. it struggle difficult. if are play And is economics the basins alone, there the say rock concerns I But like, or rig make DJ and I it what we've

largely these I think said, issues the it. have the assets it make with sometimes and being come That kind basins in that a these in starter. along Anadarko basin geologic performance non packages of

extent ever can discount. think fine based deep, themselves. So it But think those the we at we deep deep, to I pursue we're that basins don't doing value that, with or I zero, on assets would

Chad Allen

able there finish well you well. been to Marsellus packages line. taken across Yes look as get at haven't and a there as and certainly handful additional of them the we've But a

Nick O'Grady

Yes.

distracted. like And I of pretty want don't interest. it on basis we're to focused so seem the We're make

extent would places, it along these they don't it have an Sometimes that some be but the in to other it, I of be assets portfolios think came area happenstance of might so and with focus.

Scott Hanold

Nick. Got it. Thanks,

Operator

conclude the session dial of please XXX-XXX-XXXX have access and conference. XXXX-XXXX. and enter the code or and today's question replay, the end we reached digital does answer And XXX-XXX-XXXX To the access this

You Thank for may time. your at line participation. not your you this disconnect

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