NOG - Earnings call 4 2023 | Northern Oil and Gas, Inc.

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Operator

Greetings, and welcome to the NOG's Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.It's now my pleasure to introduce your host, Evelyn Infurna, Vice President, Investor Relations. Thank you.

You may begin.

Evelyn Infurna

Good morning. quarter end fourth call. earnings NOG's to and XXXX year conference Welcome after our full quarter released close, year. results Yesterday we fourth financial the for the and

You on and at can earnings Relations noginc.com. Investor website presentation access our our release

and Form Jim Dirlam; within next SEC Officer, our by Chief Chief several with O'Grady; Evans. Nick Allen; morning the Executive this Financial XX-K Officer, will our joined our Our Officer, filed our the Chief be Technical days.I'm President, Chad Adam

available release.With is including as free measures forward-looking measures on I within to and call flow. the will operations team answers discuss the to we questions. the answer over over Nick. we and Nick today, Act. safe After will before forward-looking risks harbor these our Our net accomplishments; Reconciliations of that earnings found with income results remarks that on today's let XX-Q. our report filings our are our agenda Litigation have the development Securities to will We begin, turn your including our described Chad be will of follows: and forward-looking release, GAAP to that, certain These XX-K could and of provide his our cause guidance. financial any to questions, our an our well among including and be the our SEC, on forward-looking recent prepared statements.During cash by as Reform matters actual activities; disclaim for subject we in update statements review and quarterly adjusted remarks from obligation business expectations Form overview and non-GAAP me statements walk advised our remarks, closest quarter statements. include, will the Form XXXX include be that contemplated meaning results materially go our give measures, financial EBITDA, call, language.Please in the through different call Private others, and Those may as adjusted the uncertainties can Adam you to the to be these risks But reports annual earnings our today's any may

Nicholas O'Grady

price put the our up our was impact the up from results cash our impact diluted year-over-year. not you, second significantly good was fully thank our the year-over-year. ratio profitability of start path grow Number outperformance. interest I'd and to down finding our like the the importance company. fact a We backdrop year.So to down. morning, I weighted XX% to is through Thank quarter were prices scoreboard. growth in fourth from as per per natural about And XX%, framework and quarter, prior leverage XX% bolt-on was LQA our in our challenging to The Welcome, more of for outsized that the XX% Oil simple into X.Xx less, points the deals. is investors. quarter it down today for year. ways is profits profits this the one, offering, share our versus reflecting profits We Evelyn. spoke quarterly quarter versus were prices that and gas quarter same over over that summary, I your was and fourth get commodity October X and down, on more the you than growth fourth share about same company make operations, excluding were XX% achieved call, everyone, working to EBITDA from prior was On Execution commodity a I'll that our share key count X% up this use our average growth in despite Over share profits. delivering the cycle continue but flow with right markedly ago. down about point believe in period, delivering capital, is up year. context.Our philosophy, prices our period year-over-year. to Even adjusted sustainable to impressive debt the driving even year time focused prior the

business business go budget last chose capital should people companies even on of and ground out point.Number be the beyond. we again, greedy take cash path, have the our our actively across was will out, when drive are highlight and that While that head when stand our pleased does performance. and XXXX seen will looking and the ship we activity of long-term again, and to hedging into me drive ups and upstream job budgets returning keeps say, oil quarter as that. and We returns. will to happens is highlighted to growth that dividend and grow through can This times.The exhausted. as that guidance and profits find we and a share gas fearful. directly best sector, as and I we find believe we what us money. some afford We we've into XXX, small-scale is I'm on offering something saw will scoreboard share help some to pull, others not which and efficiency are two, it investing, time, us bit to growth growth our brings linear perfectly the to storm lot Being a a with fourth by profits, in my the you'll prices to downs, very these pull-forward cyclical has periods through were XX% XXXX turn levers have The affect to Once is to year's, similar such ways acquisitions you production run Chad reflects a down consistent in operators but more for we honest. and looks game next very a few

growth away to operators' our and diligently continue money at longer-term commitments opportunities but somewhat, come of these saw needs. we growth the innovate of quarter, will isn't accelerate a sometimes at mean as time This what investors, his team doesn't fourth timing decisions. money does it chipping our as to spend for vary the free.And We our every and a one provides with change our and solve non-operator, can countercyclically and opportunity capital we the times, sooner, investment for spending structures will creative Adam are soundness is of projects in kind but

and as results to look-back I'm leave capital get energy return returns. our observed this well lot share I've and allocation, equity out the the track we about for absolute address our of and parameters repurchases year. see gate review relative three, shareholder our they typically and for across of category the board.Number for start to dynamics going the performance excellent analysis last, of weaker, quarter, asked performance we through talk this a We where I As sooner this about we stack. in internally, continue rank it particularly but

I've in allocate valuation opportunities say As and months. again, try compressed recent on to seize we and has capital accordingly.Our I'll said before

macro of the Paul been capital during us allocation to of times is though when may means If over, during battle. compete valuation as is British while, be volatile, it focusing is the on the to in value stack. value gives make that So to when team repurchases and our in when long-term the meant while is American has the you'd surrender capital abandon has think of we yet partner and been capital by our not nature with moment we're the define phrase if own aggressive claim our when flush past as are the equity far John and in Instead, use XXXX. Jones the be X fight. hard immortalized legitimately enable years, first here some and My in well when the has to this more efficiently discerning and times grown We've range-bound cash mistaken the asked maximize I like be in on point time and our story employ, front market for outlook over it. high. stock seen so.You've certainly tremendously non-operating a on this the on Sailor in use only vantage reckless four. stock flux lemons is that it our happy being compressed. than which of capital you convey We a with more mental early back opportunity We on repurchasing right. to From us stock good the of of seize growth begun allocate and to point, XXXX, entry choice. laminate.Number don't commodities we worked have try Revolutionary the War do to buy center seems and more by business when our have our compression, time from the returns

Given an a X if it opportunity execution, I the I more, the tremendous accretively. can It's thoughtful we for double challenge, company the enormous front is we our pose with believe there the and in not size opportunities taking. I next will and time, of can the believe do landscape more believe goal us, again of but years.And over this

acquisition even The broad as as drive portfolios combined strong. our grow many in mega focus so all great properties out be company, sphere time, We our while and of do obvious tremendous and of a right, providing stakeholders, to long-term as potential just through will to seen rationalized. is our remains time to on in and late lower already with Board incentivized done the as for cost a company on and stay do will it's our to the the transactions about transactions to an merger XXXX. per of small properties seeing humble been are to benefits very that acquisitions over risk.It the and it dividend grow both dedication We're shareholder the NOG's opportunity on public And of add private business outperformance, I it this fallout point create to our have continuing our market M&A likely significant aligned stating of oil active many as gas for want well variety business spoke path to improved benefit our investors these also in share way. also from to mega some efficiencies that roots our significantly transactions but us returns, very, and to mergers.While grow more value, highlight these cost the signs we've to and right would the we I has ambition from

the truly of in And today than different, company. history involved is That are solutions has entity reputation any because We not the viable complex our solvers. partners the counterparties these as as de scale built of and in conversations more is are point very if today as nature many, company the quality commercial.We our of for become believe at a discussions. problem my that these is of we creative largely facto only for

is with deals XXXX. sheet for balance capacity loaded in locked Our and

While this of us way. a we it our remain I doubt without will opportunities go selective, myriad there right be grow front that the goal is should no year, our of to main but saying have business in

a that questions an just a bigger, whether better on look make make it first bigger, make company but we ourselves will a at is, they'll company. when not of better?We question things will make we our lot us it us but lot the certainly we always passed would One this of ask opportunity

investors.With further do transactions. active value, driven us an finance covering and for questions do our Asset to and commodity quality, if factors in thanking today inventory These as XXXX.I'll resilience that NOG and and the all a everyone XXXX our work team always entered the are field our the and organic investors and that, our to governance pounce for hard since for contractors larger continue optimal engineering, I expect I'll our ground through to as company results out, analysts the planning move operatorship, outcome possible assets, into and positioned, the the our but we're go balance our And and BD, best forward. level you to repurchases by strongest to creates else will in land, for run in that's return. M&A sheet, actually fill where us over close drive to scale have are growth we the investors, we front, board, all these what they our through operators liquidity see with through Adam through driving or total always, listening, teams price our needed, investors ready Adam. will because whether deal drive share as turn by deliver size on on game, and formation. That's quest the it quarter-after-quarter.We that you opportunities is on in NOG's highest of formatively

Adam Dirlam

Nick. Thanks,

kick landscape. I then will our of operational As things M&A off a usual, efforts with our business turn highlights review current to the in development and

fourth the increase wells to quarter.We wells game saw over an line of BOE split the the day, During middle half by acceleration included well per roughly QX. evenly Williston wells between through in turned ground quarter, XXX,XXX in process and net our of QX, as line Permian, XX.X we during closing production the the of net as Novo the which in driven turned in in acquired

been by from since about has and and performance activity the assets, completion of new expect Overall, the towards winter, results rest we wells our cadence closing X/Xs as we in of well Mexico outperformance assets.As a as Permian, IPs typical for into deferral Mascot heavily the a balanced with more expectations, with navigate weighted seasonal been summer. line estimated XXXX accounts the of expect we TILs. Forge, spring the the completion to the from the our we which relatively Williston have the Novo completed the in on is encouraged see first in the New While activity reacceleration we in quarter move

seeing quarters consistent the remained with in as partners.Our position last Delaware from operating Basins. And pulled X/X of contribution acreage focus XX.X QX the has additions. Permian roughly spud we Midland our game, additional an well we the organic X and over our organic wells program from net continued from XX% drilling the net we saw if activity our our ground of include come Our

the At past of XX.X growth the majority we head Permian now our process.We continue of and wells the years year, were in oil-weighted account drills the of the over into and at are this the expected few over highs acquisitions Permian sitting as XXXX. wells our to driving XXXX. Our X/Xs converted new for as than Permian trend expect of are wells all-time in and XX% in locations process accounts in wells net the total end of more in process for

inbound remained our drilling our As has have program consistent, so well proposals.

XXX evaluated over our of During Williston footprint in XXXX. the AFEs proposals quarter, over every quarter we with contributing XXX

at Our net well in consent XX% rate remained over QX.

comparing However, Williston half being level the we a game continue during to actively manage volatility, the of in which portfolio the what's in what is collectively XX% the for non-consented approximately net AFEs, proposed.For given gross by market market accounted just the we and ground example, quarter. at commodity well

drill have our and ability ground that operators higher react into In operators as redeployed their our XXXX to return certain of allocation XX% expected This expected to the that our of we highest have footprint our available, some stepped As to proposals current have produce of changing highlights quality with on the that strip. environments. continues schedules.With rates returns. acreage have out, opportunities with game capital quickly stick to well based capital contrast, at flexibility north said, our

ahead, we cost come XXXX, well Looking were for with process our relatively our XXXX. flat. seen yet with we costs have remain partners, operating budgeting Through conservative through reductions

seen Mascot, reduction costs estimates coming larger sessions some evidence to we and Forge to from have X% recent related we operators late, of seen planning as proposals.Notably, below potential from AFEs have their Novo in properties. in our a cost However, our well of of well XX% in our original

quarter, our to during ground the under our also able the of be and oily number landscape, M&A.As seeing banner may we year another for some pressure, capped expect acquisitions. were where off quarter a are fourth short-cycle then on fourth remain completing basins, and executing Nick Shifting alluded game resources could in NOG, ground development take prices some to gas on tailwinds. larger the and additional to we business we earlier, both dislocations of to game advantage gears drilling reallocated As the M&A

dry, step our were and able meaningful consistent were requirements. deploy While we competitors' running with to return capital budgets in

in locations on roughly net growth to ball contribute focus closed a the will quarter, were net which half game of entirely profile.Our XX almost year Permian ground our wells our acres. small X,XXX line, quarter the during During we and for and turned up XXXX fourth the we in plans roughly also was and off caps the record picked where

buy in our Simply implement on Appalachia or active reduction liquidity These significant facilitate tailor-made structures, day NOG.Depending be carve-outs growth co-buying current the where portfolio top-tier expanded our of positions and created minority win-win have the ongoing we doors recent through development our been assets in footprint signed nonop engaging solutions the and in we XX% in with $X and currently able generate mutually any pride programs for for initiatives creative alignment needs billion we opened January, our include the consolidation off-market Mexico. private aligned any NOG. simple transactions. our out, interests that able assets of results.During and game market. be the with pursuing as some debt beneficial to in properties, more the as than Utica the could years quarter, landscape operated closed combined can interest our in our $X The billion on size large and have Similar independent have building and and or structures and NOG. acquired operated consolidation to and the provide positions the the helpful, before basin, in position, To NOG in cap continues, there that interest our agreements, most options both our been of top both and with used acquisitions.As our deploying operator, are of perspective, working and joint the in or creativity New over down transaction. under While announcement, parties SMID these closed no substantial whether sales our of Ohio a how deploy on that outcomes footprint are of has a with the we've that be achieve cleanups, one about in of for scale operators.Given we of with capital us inventory we solutions to day in nonop capital positions unavailable the than they in industry, is we we we've we've the with ground scale to put drive both operator to we've growth NOG, and to operators. those of approach should on been will development more non-operated and which and recent longer-dated our amount finding rationalize ourselves Even we reviewing we've previously operators. Delaware, operators we high-quality, operated announced put, alignment. grossed been cost-efficient assets for transactions Since have also or digesting operators we packaging as help with our in modest were run, capital we and future the the and few off that, can to could are past on inundated can frequent wants methodically portfolios, each to as with about play accelerate conversations for discussions the of slowing we've larger large additional thereof. of way walk through joint At to our we've combination of we Permian, opportunities, With been many up Mewbourne core ourselves elected previously Utica think review overlap of co-buying we general.In new in the some

it remain Our that, our to priority growth over right I'll Chad. over turn to sake, is not but growth's and doing long-term to chase for stakeholders.With the returns-focused by

Chad Allen

driven at our by better at overall $X.XX which accretive a widening fund had in investments, prices QX, the increased wider. the wider driven particularly Oil we prior fourth more in quarter, Delaware quarter of quarter as up expected day, XX% XX% full the was BOE, production came the billion, we the outperformance. daily gas operated share. up volumes than were better NGL few volatility the quarter in same XX% the expected in I'll as the on to workovers XX. a record.Oil was a update in-season oil was EBITDA the and to after year-over-year. results in in February BOE driving Adam. per bit QX XX% pricing. Adjusted quarter highlighted the XX%, quarter by were start color fourth on normalized XXX,XXX differentials.Adjusted and $X.X our given expected we additional forward our up Thanks, total in XX% approximately despite was the Free compared was compared $XXX million $XXX over and third lighter $X.XX up lower quarter, NOG as well EBITDA last diluted provide We realizations gas of by fourth differentials, in XXXX, price oil Appalachian period marked production production commodity pull and modestly to in of per was lower factors. volumes. with Williston quarter period differentials.LOE wider winter over benchmark QX other per was flow reviewing the mix Natural quarter another released in year XXXX Average and million, in more CapEx cash same while Permian seasonal last XX% EPS primarily were up the prices factors for than year, year of the realizations period.

the expect curtailments down XXXX, process a of effect We to our refining our as project we firm BOE per per in mid-year inflating And also had of off historical million as the trend with BOE $X of the LOE production we ramps. accrual transport that artificially our reach expense numbers.As incurred approximately result based data. Mascot

in and ground capital X/Xs we the fourth On million the and development to Permian game CapEx quarter X/X the allocated Williston. to with front, $XXX roughly the invested drilling, in

the $XX As ground with billion liquidity The ratio ended on with of I comprised hand we the net time in of we want year into disciplined over the per for $X.X billion a barrel.With and apparent table. high-quality year to over year portfolio and wells.We EBITDA everything working is shifted tremendous shareholder significantly throughout The have volatility ease of the rest development organic are producing as access for XXXX, $X X.XXx, past we a of XXXX. increased to and amount debt seen in build front this respect oil the the of on expected months. floor we trend to quarter on lines. $X.X a capital that game fourth forward to adding expect out result revenue We X% remained near million XXXX, maintaining is hedging of remain LQA on XXXX. our Collars pull while through that and quarter the a year in strong capital activity the to XX% opportunities, investment from pull-forward is continue natural of having along point our consists decline activity, to that we've to success significant seeing that oil as more most sales was begin of in and spud revolver.Our exposure upside on cash relatively XXXX, commodity and to did available have flat we currently returns gas in over been the material the given hedges ground the into price quarter then through XX% fourth providing first the to the convert on several the expect of

share we other to a approach for may to activities those we've an and are if And while NOG, adhere there's the past, objective shareholders. for now to active if dynamic alluded include guidance. Nick dislocation returns in the our our competitive price evaluating.Turning in achieving optimal are potentially our As shared with of with a year buybacks, we XXXX share alternatives returns

barrels to XXX,XXX XX,XXX to oil are XX,XXX per guiding We to XXX,XXX of day with day. per BOE

We the Williston our XX January, some ] a midpoint After will reflecting seasonal cadence declines We list D&C of XXXX, see and build our by build production the typical in quarter, significant XX about from the IP but of guidance. year. exacerbated freezes in throughout first [ in TILs the anticipate our in will Spuds, in adding conversion should normalized wells back bring our of amounts the to the forward help efficiency more will our CapEx returns have the sheet that in we as capital estimates. capital some working XXXX CapEx on This quarter.On materially pull balance levels. large lowered front, second starting drawn the prior the D&C our XXXX cadence internal in XXXX

and seeing the pace core that So to continue, we're across that of basins. pull-forwards acceleration the drilling making assumption given likely the we are are our

be in now JV right and our year, savings on our particularly year, are expect to larger stay activity million the recent specifically being half forecasted of will year be have weighted XX%. price-driven for range. success, despite are commodity so costs, $XXX CapEx the interest.We this will AFEs, of levels first from evidence the by driven capital expectations first of well million which to game to significant Mascot time ground ground larger and to overall around in CapEx the level capital the ramp $XXX half the and Our XX% materially in ventures, the flat This throughout Novo

a to is just we our as This charge is wide purposely discussed. side, per $X.XX transport LOE firm rent basis well to quarterly at due as the BOE. the On the guidance $XX our on inclusion anticipated of

side the will with be the higher accrued the last expense on room charges improvement. want be will start be being quarterly, to run firm to our gate.And LOE transport conservative LOE expect than several year. We years. We there less trending the throughout out of believe for rate We before the lumpy for down in

inflation we've as BOE, volumes expect cost pricing costs for NGL in by in average increased the QX, by better G&A due propane NGL the production realizations XX% natural the year-over-year, XX% down benefiting and lower winter higher gas of cash some prices been use for heating driven gas, a seen modest of to even price seasonal we to demand low the overall prices thus year-over-year, realizations in than On given per far months. we front, have services.On tick in front, and offset from We expected differentials. would expect winter

this from this weakness the to where extent fixed If gas there price when a is realizations room overall we're producers However, costs the low. GP&T for and flat the in which year.As the absolute are starting. is for To the down around, separate on go near-term. embeds summer. the benefit stream enter absorbed typical patterns help is now, are to in X much or the remain curtailments upside. our so the gas we NGL the rise of we hedged as a transport we reminder, stick But front, we prices gas price XXXX, that in make costs prices and the offsets could and Thankfully, based pricing on well spring of natural materially cautious item, instead were reporting NYMEX the throughout obviously, pricing line material see a to guidance

what been at On of in past we've wider believe But Canadian pipeline widened this materially XXXX. the the differentials to the TMX $X.XX, on it to versus volume lift over months away we back in other reevaluate slightly the months. second we differentials growth Midland-Cushing has touch we're the items guiding start comes year. some half pull the until We'll while to the enjoyed are demand from pricing on Overall, of may like have this half year.Williston conservative as then, could X differentials online deducts wider.I'd but remain Delaware some oil over front, the on most to realized solid, in of $X will guidance. Canadian crude the coming related

of billion in EPS production update basis reflecting but as DD&A completed over provide an our modeling.Before generally game are higher XXXX. XXXX, per provided the cash with in will than Our be our towards points This, I production like taxes session, XXXX, acquisitions call volumes production bolt-on will the to given BOE ground not other taxes shift and in where the operator in an rate And also cash be on basins. $X course, for estimated it's over a taxes. higher impact help tracking does turn XX our item, higher Q&A free of I'd the is flow analyst it non-cash does to to and impact Permian,

cost is by oil the in of us, to growth prior depletion over With Given improvement the forecast. potential call acquisitions and income.We properties broad [ a becoming X of over This operator reduces has significant million of years, which I'll our taxpayer tax and impacts over gas which following front XX% XXXX in reductions, year-over-year of with in in several taxable now anticipating expense growth a turn available reduction cash sheet, volume of in than additional next in positioned cash beyond.With our is our XXXX, years. and Q&A. material $XXX the million to from that, our in turn balance a billion back execute ] and year-over-year, balance the completed grown over organic for potential which is tax the X magnitude the well for a production, NOG a XXXX $X.X to are $X free over flow strong less with our set natural a shareholders opportunity

Operator

[Operator from question Instructions] our at We'll go to Neal first Dingmann Truist.

Neal Dingmann

or you timing, just it if is, maybe go about into doesn't and really you just you is looking timing why talk call CapEx XQ on the maybe the translate would. over Maybe just cadence that what talk question guess, can timing. just my immediate production? Could I Nick, that -- about

Nicholas O'Grady

one our the cost accounting the in sell-side think of so, cash completion. wells status and an the accounting. of percentage completion. a I is like accrual operated operators of We're because Sure. means we're definitely be read I'm nuances of be this to can answer cash CapEx the like just an I by accountant. lot for the to statement, well of companies of CapEx. clear, a or well a Diamondback account lot follow CapEx a versus lot but that analysts, company.And And I former financial I'm XX% the going buy-side analyst. Neil, not to a a should clear, of And I'm accrual And a

of account become well way a we goes more the So cost complete, for as up. the wells

It's it XX to a XX% went the outspend that's they from, lot doesn't as you exercise. just that XX% say, any fourth incremental budgeted an the not quarter. fourth And account translate go of to any just accounting XX% quarter. to we to we in So to in necessarily And not capital. period. capital have, say, more choose given have a for to And for capital go into complete, quarter, in quarter.So account third you quarter and over run. long example, that an wells that that to in in that the just in to instead, have production it's XX% that it's the we It's

that's put think, excel, much. really change in choose TIL count this you might that So why did spend and we why well, you release, to our that our in didn't

elective, game ground the capitalized spending we and Now on $XX that that. was the million,

to And the somewhat. one of will course, going some the when those they're much.They in December, of towards in did of they not help But turn obviously But end to seasonally, QX quarters. online our of that's sales come quarter. slower contribute

forward, that you from Clearly, guidance, benefit 'XX a If it's a reason the but But million our of overall from X% that, $XX about portfolio, to our a midpoint that the full is total we've on because continues million to the benefit assumptions sort it's sort pull midpoint. talking partial seeing, at overrun. you're salesx.So our in will the the acceleration spud full of you of of about sort not see salesx to perpetuity. are average, the that in look we're of that $XX spud assuming been shorter

that coming perpetuity in is so XXXX you've means is that that forward, we assumed So got would going the XXXX. into all also capital of have capital

of effect cycle sort to a that. half there's So

how the CapEx that drive better. for also anyone this versus model completion D&C have through for out and we and actually that a just say listeners can would list the all there, I can So walk sort list accrual percentage TIL make of a model will available of we mock a

roughly were are plus because decision and of timing you made We the budget incremental.The would decisions out these walk really the sound history.So presentation, publish number the cadence will single But you're And of That's the I'm modest plots. We we're is is amount to well if the reach the through is Evelyn, she'd just it it.What months our great I and optics to but don't The any earnings in because recognize anyone The the how accounting be year-over-year. at frankly, our $XX spend wash. X ground on just those -- like of function not more focused of in We out also, status. account are and to the more to and longer-term want about best time XXXX our if a decisions. for dollars. that performance than bit the just stuff, well I $XX people, million it's in economic of noise, course, amongst the for sympathetic I the optically, over wells ton in I million presentation, a the production control quarter of was data on overall noisy, the understand this the else. aggregate, you TIL years And in cherrypicking cadence same. XX for optics it's really really is wrong on because A cost IRR over them to time according the it. I to of a We're like making investors, come decisions be conclusions, the it. when going draw our game different. not same. is given the not wrong cume XX we're well plan. a earnings than the to well to investment you horizon can, quarter, timing a It's the of month the in timing. just what on with can't our right a time, it but relatively did So on in well performance a spending moments conclusions is capital can assure all control we -- look testament track. plots anyone can happy might IRR is our won't say change I'd We In our they'd reassure everything fourth

the long-term, So great. over everything is going

Neal Dingmann

like is in to sound ground the pay that does capital going really dividends. No, it

about then Adam the follow-up, is see it And predominantly Or when and hear that about versus there you up could could timing. right more are talk glad slit? seeing you're opportunities a you Permian bit potential to seeing just little you about, a things. one just my is Bakken, I'm you So now, just region talk pretty that

Adam Dirlam

of in seeing now the would are say the Neil, Permian, towards this Permian. is Delaware. I In Adam. the opportunities most right that that weighted that's the we're generally

think has I don't changed. anything necessarily So

the commodity we've emerging I price one around has of seen think kind that kind evolved of and Appalachia volatility been thing there.

operators ago with of things $X there. months, You've on across we're certainly ] of think you're some of things conversations XX truly you're and having there's the are seeing We're us And a a in feel now ago it's deal having. obviously an pain, I some seen But that now. tracker board when to are of capitalize right in think couple the for these of the think XX that for some conversations the the I those looking Bakken I and years pain that.And at the seeing ability interesting. our potentially terms inverse out last or to ongoing [ tabled settling year obviously N

XX are XX executed think to market I coming different There's that immediate either about about NDAs. in or market processes we've shortly.

into I we'll obviously through that. go just immediately of garbage. parse think so, lot And the might that A

underwriting those assets interesting, think of operators any and I economics. the and around wrap and head having that.But assets then of kind with front potentially to core assets whether those necessarily don't going are their are to So regardless that few them then different terms we're got their rationalizing or new or of you've not dynamics I on our stripes especially of changing are the that think on consolidation in a

Nicholas O'Grady

Yes.

only add time. as chunkier the that I to transactions you're think the be, think the on small-scale I seeing much bigger, activity, would front, but there's over for think thing Williston I I opportunity not would

bigger could there things excitement. -- over us move which time are there, I think that does give there's some

Utica opportunities, or grow small in continue to did inundated us. it's we've another us the Utica, quarter. actually growing probably how to to find record X, we've and think It's It's been have volumes and we been amazing dozen frankly we fourth foray a even month surprised both footprint.Our organically half just we with resilient. the ways frankly, our asset got in keeps shop hit the into even I inorganically, Williston -- our last how --

a that we're and building but oil of broader we've point And a extension our dry gas play an technically been So distinct the sense wet Appalachian through a up it. is that technical expertise, evaluating it's to -- Basin, would It Appalachia. and that's as the We Adam's play. part obviously, gas, in those. clearly view the there is is of Utica

we've So found some different flag to it's By But in plays doing a another having of in flow. set suddenly some ourselves degree. planned just so, there deal ways. of couple

Operator

We'll Johnson Rice. our Charles question at from next Meade to move

Charles Meade

time Nick, to different want lot angle. slightly you've And of on wanted maybe question to the fortunate on but a take this I to CapEx, go and already back I a it, know I spent

kind XQ.And know, loaded that just don't like end. was of dynamic if think, accounting. X ground I ground call with get game, understand, respect don't set -- when the I November you what address I could it, is is magnitude would I I opportunity that of you What don't that accrual looking line knew with I'm wondering from ground good of something the understand D&C, what year on from everything games maybe I the that into you've item, reported your particularly of game your there's to year-to-date, done it at dynamic And understand angle. the think maybe I you the that if the you get so,

Nicholas O'Grady

on Well, I come the updates delay. Charles, operators a well as from status nonoperator, mean,

has us, on report be is that provided right? be and been And so, stuff can as we that then -- -- it we're is told sometimes months the even delay, So spud well a completed. get only been -- to a information we can that provided as right? hasn't can we're the good So you'll oftentimes,

any don't beyond I so, have And answer that.

Adam Dirlam

into Same complexity depending weeks and then year-end of different deals can tax with of that, be And take different thing within said so ground on them and these get some consequences, due you and the up levels diligence seller that's a closed the urgency get can right, game, months. around there's some the going and standpoint, different of from there.

can be And accommodating from without diligence standpoint, commercial sacrificing protection trying we to as so, of and we're basis. as obviously the a real-time on things but a any and due these ebb flow

Charles Meade

Got it.

volatility characterize catchups. maybe there's to adjustment correctly, long got also fair I be would you've understand as out-of-period both if So as and

Chad Allen

forward, think mentioned, we don't on, Chad. when it's levels we Nick where timing it's come I necessarily of and out-of-period at. QX, is status adjustment. at earlier, this Look, D&C had like off record I really the the Charles, pull the it's depends and think. those mentioned well Like

completion percentage list XX%. look, we DNC typical just of all XX% from way over up think, of the I went to a

think that operators. flows status and I well build ebbs So as you see and from each quarter we that receive

Charles Meade

it. Got

Adam Dirlam

the out of of bill everything it accruals non-ops. the been terms is all every to confident have service operator does put right? perspective, appropriately costs An actuals and all been to that out from that all operator have have of that and to and into that just maybe we're incurred then billed. Charles, accrual they various in it accounting. of these at the aggregate have until the there else, collecting And you a so invoices cadence, And different

make months, out sure date, however we've And IP the the hang that depending we can got accruals, few need so on that coverage operator, need. to those we there a to because the relative long,

Nicholas O'Grady

any the more aggregate the just time. at not it really factor end the wells. day, It's of But change It's a Yes. doesn't dollars. of

Adam Dirlam

at you XX on a looking when on at need a basis it X-month You're to to... it be looking

Nicholas O'Grady

of spent. different the money it else. any It's just It's We're I can these wells. It's not we're of costing capital the I'm the or same what a how matter making capital tilling of tell to happier accruing Optically, electing about a anybody for of when performing you you're more of So not matter being a any amount and worse. than same matter when. number not of wells it much is We're is wells. decisions. number truncating

Adam Dirlam

they had and conversations and X% XX%, dovetails we're it much, into projected operators what right? I 'XX, to going alluded AFEs to not But be AFEs. estimates, as on at great these might we be we We've field the to might we're AFEs based the we're some seeing what and operator, what but depending XX months underrun to costs like. value, going practices on X our and these old, old, it accounting change in well And face our looks months take that right, from those mix with expect think are.

Nicholas O'Grady

And Charles. how let through you me walk that Yes. works,

-- us So AFE $XX let's just in November. AFE an gross say Midland-Petro million for sends

billing, million only completion probably out costing held after We're $XX that is that well, it's that will right? until until the well $X maybe there's that at later through say reduction continue. So accruing least you but April, just And well no then million sales. the point to completion savings, and they that in XXXX in So results November, there's if starting a more is capital. send us the at finalized. that, is we're final where for of see way that getting which accrual And percentage $XX along days, after the held that, -- we'll let's reports million, a of it's until it's that, and on in XX on some our there's falls then field in accrual billing the a probably and then and it's period out

built So there's this. conservatism lot into of a

we're spend the you, If not. your say, that typical this benefit; you million, cash million in $XX operator, they giving going when they of and and to they they're $XX immediacy we're guide to then spend quarter, actually

is how of in but the see conservatism we're inherent benefits you you tell would I will those. what so over doing time, And this, there's

outcome next throughout obviously year, the and it I change think, the in accounting. come while will time, the the certainly fourth some wash. in run. our like I the all into out the really certainly see doesn't it so XXXX And is quarter, inverse, in long And think see I of it benefits over said, ways, you And will in you'll

Charles Meade

away this appreciate gun and for like can all you transition detail. towards One more one Thank And pictures. which I accounting project. I'm that that guys question, you Mascot question. if at. your short view from barrel added put bigger of pretty XX, Slide pictures, better I I

you as So thing it want recognize insights a the and a insights But much year or And when completion you batches the then looked helps circles, interpreting like at may be are guess ask guys, generate picture. that you what ended. you first as me. more question fill guys I I for as at I'm dynamics first this, the it is is, the ago, like. what what looks first Is right? I lessons What to little really second those did this? you looked there? came open yellow It I that but to in this when

Jim Evans

Hey, Charles, amoebas, looking at yellow batches. Jim. this completion is those the What there, you're are

And time. due whether to it's do So to at protect it, X, we'll showing got to you've rows in fracking where shut drilling you X wells the need several is then we're what a or wells them behind yourself. in X,

this terms the here, wells in was were at looked unit. in year a ago, we they really about when So charger all of you saw producing,

at Discussions smaller do MPDC Mustang, And timing, Rebel, the was to that Bulldog that undeveloped were development going at units that we time so time. around completion were and batches. all with

same dots, complete where months, from the some we'd X you time interference those with drilling moved as wells, we so we X turn first because a see complete project. go that hits, east the the across some to And online, time, X X frac is to west What wells. we fracking see at yellow were do this maybe issues, next and we batches the wells all at saw them to another started

let's do batches. decision bigger the so was And made,

to better in that we're obviously And so what going was estimates. a outperforming that long performance delays we peak return the overall by it to getting of investment, production. what thought we're project project causes actually Obviously, our we that, original but from terms is X% did to seeing overall. The going economics. there's versus in in think we're delays, because project is when is well But doing the IRR, it's XX% on benefit run,

things And we're change so this be. over working big impactful non-op what obviously, package would than a interest and more project, time, our that, learning so is is it's typical

just the standpoint I is are with have be to comfortable learning is times, going all how project, at forward. we're we're in Obviously, things the communication trying to from changed. the And our plan online. development happy with with changes. that us and a overall, the said, hurts understand go make all we're in these So sure to and full to we're how agreement But on and coming that when operator like receptible going we're guidance very wells

Nicholas O'Grady

will almost that be But on. you back wells that wells all reduced. X are your which the this you the have much ones much, and frac you're of there, drilled, fewer to your in into there, you can in those be end shut shut And You're you remaining shut-ins down see ins, the to this, it'll the really can is where later Charger will the of the way is be what going year, right? which wave what schedule, to when in towards on pretty pretty see you're go frac last Charles, have to are to Mustang, some and XXXX, end, last,

you tell much flatter accumulate one So more it would have, that rate before. won't production will the that is this way about it would can than have ] while it project and ever I barrels thing a profile [ peak it produce

a I been would and the a the be still bit superior originally. lipped to money. on think lot be obviously, much -- we more And we doing project. have you're fracking, total ROI we're XXs it and of we today, saving And be want we're have determined and when underwrote program, that so conservative much so And saving will gone That's what because the earning more doesn't swimmingly. to drilling this otherwise this project obviously, obviously, finish the also continuous that I to this tight $XX until very at we're would mid-to-high strip we're that year in until we're the point, maybe done. And on higher was think feel confident, returns about But it way. we we But it's feel than underwritten.

Operator

Markets. We'll RBC go to at Hanold next Capital Scott

Scott Hanold

comments, from being years. other into the Since basins, achieved wanting next In consider move What's your company and obviously other your sense basins was you company next? in the came there here? significant a operator? you JVs. Bakken prepared first Can doing Is How how an out double you're you at? do looking X Would that? on, double you you you mentioned about of a you of accretively us give to pivoted

Nicholas O'Grady

what's curious, in I'm that background. music the wonderful

Scott Hanold

of going calls lots Sorry, on today.

Nicholas O'Grady

you you what think get. what I see is

I the [ same ground tell record lot is I ]. we we of the way, year. game of lot ground We It would you game. still see a almost a think million was still regular Look, stuff. a what see the with $XXX did

were we the doing different it several have it's operators. locations, much way. which operator and our monstrous record. moved small-scale did into dealing mega And out we problems, larger. is into We're which a included major think solving in the of moved stuff Obviously, I with a that fractional, much that private we're and thousand actually capital, acres, mostly frankly We've preferred a XX can over of ones a groups do were dealing in assets. they we an oil past because and the only they'd more that's actual but owner permanent the JVs, to the that's that gas had were equity function with with work they that concern noncommercial true the

oil And the so can we've that actually really that. become do first concern gas and

still, transactions to on that half way come regular will there.I to market be are that I there avenue going are know think year. either so market we or non-op dozen think an that goes this of, a do And within off

XX obviously said, year. And It signed to nondisclosure I so But Adam's be we will point, you, agreements those. we've this at looking he can tell just coming. keeps

There I have to think we We've we but can would interested for a going looked extremely and that are that coming problem other to they us to be some return I We we the their help create be with I need they avoid. And We in. or this economic are I we basins investors.As solutions, of to continue sorts us would to can be much create scale them. asset solutions can I ones want saying, have have would that around there technical risks buy and very we provide. or am that people solve an this, what see a grow of basins. did be like expertise. handful to our are certainly other with this rationalize it cannot great sold for the that trying to at do challenge. sell portion whether are a for I'm like There But it And confident that that contacted, it, be basins, I of other solve assets, trying think you describing, Midland-Petro. we're to that are a I There can are do whether certainly this? like all we to

there that for to. we are think right go would, some opportunity, the of I course,

I governance And if think there are risks. some Adam, know, that want to add around other those would to, we or create don't to to I get that. things frankly, have you

Adam Dirlam

that the our commercial. and that broken deal we've then, record structures optionality I It's quarter. after be scale we it frankly, ability to down and quarter our it's just ability have blueprint to the reputation, And created. like the Yes. But feel the now. and execute comes and a to

And in a stick can inbounds a and more we've got solve at how so than of can shake problem the together. terms we we

non-op having. theme we're that's coming joint the that as different got that's now operators conversations well the agreements, with merging are as co-buying. the the packages there. emerging the everything the the this But those so rationalization you've development And the and about from in market, to I And stuff and DrillCo-like talked in

And helpful. to the terms another add of can you how in northern be can so quiver arrow

to and of then if so those reputation, order the And you've your advantage. sheet you use balance you've of can you've and got all all got those to execute. options the In got

Scott Hanold

follow-up return. that And on is Appreciate Okay. my color. question shareholder

you can aggressive you'd with buybacks do in to how Can be willing sense point and how seems today, And can think willing a you market how It like step You get think mentioned give get price you intrinsic stock to you the and get there? the a deep of you really that dislocations. are is where that go? of you lay sense where in attractive aggressive value? us about but you is

Nicholas O'Grady

Yes, I Scott. And it's obviously, of can't decision. the in playbook, away too our a give much We've been Board. discussions with Board

sort creates harebrained, lemonade. a I it make how regardless, gives fairly long/short manager, to internal internally That the watching. we quarter, and the come this, it fact that. a But to compete this represents try and all look could run and that inexplicable, as the worst we modeling up our to M&A I spend we look see that stuff said, space. when best relatively capital go use first we some year compare can you fund money as of I it versus you one about we sophisticated And say, or have have generic lemons, to allocate we I these and Perhaps seen mock right? profile like if life when growth yourself, performance generally, we've We are view you it thesis model we is as there ex-hedge the years. of would and us, an in where it, you where today, and of relative in go it for that Because you elsewhere. against it's as with sit this because whatever. X the this capital and elsewhere, that's given opportunities But we say frankly, effectively could it things of versus all

We to necessary. the opportunity buyback act. our and We availability So we'll to ready authorization. can the create and watching, certainly have be if always if we're more Board go it, in presents

always And the over if level ask so available. that's today we can think I $XX We decision. million more And a have for Board Board's willing.

Operator

to John at James. Freeman We'll Raymond go next

John Freeman

need Following last do considered. would you'll I that to you pretty basins stool. guess of all scale add looked that up sense you're that X there's -- outside right? the position, to something have that correct? at enough make into, build other require where leg you consider there looking the in, You you'll for fourth it a would anything you of not to that comment would to a assume would it always or that at a said for Is the handful substantial I that on basins

Adam Dirlam

think I fair point. that's Yes, a

you're that I position, that operator play. operated arms think look at an basin a expertise that we eyes when there's of come buying a the linking a in interest and that think minority down an things. has Obviously, a taking means that likely already to that the And need for co-buying into sets in X about around or extent regulation have with to the that then handful of you land non-operator. and different dynamics what

operators own up so of being And able outside that and look to dynamic terms with a our think an interesting the with. taking backyard some partner of of in best-in-class link we want that's I to

Nicholas O'Grady

Yes.

I other right right think have risks the if may are that you some might have that right the a rock think had solved solved basins them but had some you risk partner. associated challenge, basins would could that be to I John. them real some could there that are with that there be be but operating have -- if the

John Freeman

there production, it's seeing If a accrual my properties, time obviously, of of at next or guidance about That follow that you've meaningfully me, makes I the that think Williston. think like your major shift a basins, gears the in just a and looks question, shows assume And you spent some improvements it does here, sense. the those you're and lot in it older show relates production to this they're got in on as aspects the outperforming. late And that'll I then the that cost but CapEx, of Is up. looks think seeing on we year pretty and and you'll up was year eventually slide the the productivity whether that clear more to particular, of it like, early the it as one a are Williston, well Permian obviously, guidance look the still for results? mature it Williston, 'XX on like XXXX-type related results surprising the pretty

Jim Evans

well of Jim. have management, levels. but where always target is think our We there's year wells that some wells participate want about to be, assume operators be the idea we're this got we Obviously, performers, in do really, in, to pretty which some already our We good assuming best a right, as months going going be X wells we John, are of But degradation. portfolio process. the we we going think there's a degradation. which into those of go to will to performance thinking plays what into always performance we've activity we're about

on. we're happy Permian. obviously how versus time. and more make a as keep early very really is well Delaware off wells. than year, that's a and We're how we see changes but great But side. and an it that XXXX the bit so sure start, less productive eye over into the in even to is it's Midland, to pretty year And job We'll XXXX good on our over our performance we best moved the doing that we're a encouraged. manage outperformed activity participating the with little Obviously, XXXX, which

well. great start. again, off happy So we're to there very a And is XXXX as

roots So well has our been to we'll build and overall as into degradation, or our but expect well which better expected, true some forecast. guidance than performance stay we our what good and is

as we farther more some year. into upside wait there, but essentially we So the get go we'll information until

Nicholas O'Grady

from to optimism going for not John. a you're nonoperator, it, looking you're get If

Adam Dirlam

give a to John, you maybe little perspective. different

of generally a concentrated some so I it by that terms the if at how Slawson, what so near-term similar all think Conoco AFEs, looking well list was and of from they're you've with operators setup where from the performing. I'm best PDP standpoint, as our some our D&C with got adds of makeup and is, in a operating 'XX. in are Continental, Slawson guys Marathon, leading And Williston Continental the as pack encouraged and and these

Operator

Our from One. at Johnston Phillips comes Capital question next

Phillips Johnston

some Chad, your prepared good you gave remarks. LOE pretty color on in

rate you've mentioned production 'XX the the to mid middle year. You obviously tapering next of FT run charges in fall the off should start got ramps. as by And

you look our QX, by for be models, that that? a good a might we into would you something barrel and $X be out where steer wondering So would us placeholder as 'XX, above or to below or

Chad Allen

of mentioned, Phillips. year. yes, ballpark, the we months, hot the a probably the as up even bit in heavier range, first little have sounds lower for, catch down we to as a that a back towards going maybe out our the I that'll we be instead as in be will trend the think little bit we we I accrue close half But, year end running quarter. guidance I the only FT of bottom of then we're only Yes, little like mentioned, to a X so have charge,

Phillips Johnston

question good. the and like Adam. what XX-well what's sounds and into maybe mean for then that talk might XXXX? just turn-in-lines. about that XX of a and maybe spuds Can you efficiency the capital Looks trajectory And involves net gap for plan Okay, XX production driving

Adam Dirlam

concentration to You've proceed year, there. and so the well got, a you've in that That's project throughout up. we're looks what so then as And got be finishing obviously, XX% the proposals door coming we interest, working going these getting like. Midland-Petro the

activity And mix as so well I think interest as cadence the levels Permian as obviously and of that depend the on working Bakken. as the it'll well

of We're function and think partners, level on I concentrated. So can of had, so some it's that having that where a operating conversations the is Novo these activity a and and both other larger transactions basis quarterly we our that with change.

Nicholas O'Grady

usually been that's normal a And TIL our been [indiscernible] should equate over we've count. course, it for because And been Phillips, half. half why obviously organically, our about been list elevated. elevated. time of growing be We've roughly should to building it's has our about CapEx so partly D&C

the the business. So of it masks efficiency capital of some

our why and XXXX because free things. to, D&C see running efficiency was our you flow that's improvements And material cash that's you other declining, yield would will a markedly D&C see list. so leaner you say, improve. capital list were to And back where you go if And

it. just a And more it's so normalization of

last normalization to was of that. that production that material that our So ]. Permian X,XXX I grew the more list wouldn't lot all assumption not and about A make just was quarter D&C [ or a Think leads just It's oil through it, we've declines it Novo. going barrels, organic. obviously because something of like the been of

effectively So to really right? you've year been seeing growth just material, some So the you're volume exit production as that growth you out flattening degree.

Operator

We'll at move Donovan next to Northland Markets. Schafer Capital

Donovan Schafer

want So, first, the I to reserve. talk about

what adjustments it And $X on look that there of make SEC trading biased SEC happens So of was to and a terms this. in too you around, in like that's pricing was make crazy some crazy view, in And cause do on value. a an so almost the But enterprise to as can to you a going expect some a reserve need engineer adjustments. in PV-XX job college, exactly to But are and not insights of may what we how can right lot accurate of, forward. adjustments my first where from a company lot But are does, billion, are lot in order [indiscernible] be work be, I look sort This show conclusions other reality. of, out distortions. if reservoir basis. kind my not I out there things economic pricing at time know is could you least the where now of more the close be I to or for obviously so meaningful with true pull think draw which might of bit a a you're because line

I Delaware don't think Utica one you be that. and acquisitions. if So is confirm can so would those included,

Nicholas O'Grady

operator How years. PUDs there? many -- So book book don't book unlike book a full PUDs, really do booking we as operator, don't an for PUDs PUD an in we Donovan, our X a we right? can non-op,

Chad Allen

X We more converting right? single that XX% of to about generally non-operator, we're of activity, As X.X still to than years show we our PUDs need book year. every a

that the their us operators years. get where Forge, confidence aren't more But in been book schedules, we've so we more that providing have that on high over for Novo the certain PUDs us hard the And will can a doing, projects actual drill there. definitive it's of your with the we drill typical X to and drilled so locations non-op schedule show next level

XX Now, to we last we're as obviously net converting showed those because we're need almost But to can't locations have going make TILs. this activity specific that, we those that the we year locations. book sure

we more lot reserves. a our than booking what locations So have we're in

a there. conservative that set you're so reserve And seeing it's very

Donovan Schafer

just, is And coming thing my from how another Right. things work. of is then this recollection

historical that the this how reserve at may it a prices It XXXX, this. have in you're But honestly in SEC, D&C are way put relative that current you XXXX material the lagged starting gets out shared, looking do just prices D&C on been that see the just am a yet the same do basis. they cost in commodity on costs. about right? more of reflective numbers the and more D&C have in -- thoughts on stuck so a what or to prices, costs thing the I pricing commodity you you only in other level Am D&C report I of for impact commodity So with just basis, locked costs, I'm follow case, also the the in that? the the the that locked of like with that, thing remembering your that sounds now Is correctly? So on to you're price, right you're creates like and decline commodity current then with

Chad Allen

We XX-month so prices, Yes, you're correct have in. to use trailing there, right? that's locked

forward. that to hold have We constant going

Nicholas O'Grady

Same thing for LOE.

Chad Allen

last you where if were prices think were in we about year, SEC mid-XXs. the so And

the Now we're in high-XXs.

costs we pricing. to over because at They XX have have we're forward got $XX, model is Those the just we that because our can It year, lost a $XX barrels more an an also due historical about going lose they operator, on had And we on So lot bake look back that the that's price that has the just cost, that going which end. cutting versus reserves off to operator. We million to an we AFEs in their actual of replace. reserves we current was of they And the tail forward what last to environment. that. well an not AFEs, costs reserves. well have the impact model then

conservative use being we're higher because holding standpoint, a again, then but we basis. to we're than a commodity costs, there LOE we're expecting on have well higher double from a go-forward what lower So price

Donovan Schafer

slight follow that an in moving more a Williston then on, the freeze But I the production going something with a All for When the QX, mix now, or quick oil year situation is because for question, in the have may QX, just mean there, is end where but year? it's want the afterwards. to is having we or higher than it or oil you just I on mix an the bit a the to way a would a somebody what could avoid more oil triangulate change in dip underestimating towards necessarily come think. something. in does down production all? the QX, impact you I'm on mix trying a on impact be full mix? right. impact And a that can where oil that ups one, with some to up just in QX, material guidance, weighted in that have models see have as is other QX, in full that that at modeling then And I guidance higher oil

Nicholas O'Grady

out guidance total and we that numbers the in there. feel We put both a production we put confident pretty oil. from think out I standpoint,

of which higher shut oil the were in can oil you QX, cut the So cut. an annual a infer ins is there. in Williston, Yes, most

see so will oil I be... year to is throughout very But potentially then as oil think Midland-Petro going there. the lower could don't cut throughout cut, And the that year. and you rise improve a we also high cut and So it's project oil your QX our go it in obviously

Adam Dirlam

be to I some don't to going it's as going Permian there think I don't be well. also were curtailments the material because think material. it's in mild

So think, difference difference rest -- point of between talking the on a about the our I basins. you're going or point be it's Permian the don't margin, XX X between to and

in any So to way. it's material going I be massive don't think

Operator

to We'll move next from Diamond our at question Paul Citi.

Paul Diamond

guess Just Talk outperformance talk Can that established on year? expecting you just seeing what you as guys some Forge. out that quick ones. trend a as about ] more of I of bit this a and couple are [ that about you're if

Jim Evans

Yes, legacy Forge something Jim. we're we XX% It's same about yesterday, thing. is seeing the this XX% Paul, new on the what wells around underwrote. seeing outperformance outperformance. assets. Vital versus the XX% to announced they're versus similar We're seeing

not I plan. go-forward originally artificial lift, around uptime spacing, We're baked modeling production still acquisition. we the think on for into completion on optimization what that it's underwrote based design, our on is

So assumptions, we to the more what encouraged We adjusting do see but X before potential we'll with we're to we of that, see we're see and data. in we out think like there X get months there. upside adjust continue feel far throughout seeing so go to confident as our history Typically, year. we very we'll as we

Nicholas O'Grady

work itself, to Yes. PDP And done on to And the just costs they've one asset done a also bought up. they when on job their actuals think good they've was initiatives the was of [ of really existing on ] really the cleaning main lowering the I assets. that work

Paul Diamond

Got it. Understood. up. And just a quick follow

a midcap operators. and You with small the guys having lot of talked about conversations

you scale all we a What of Forge, sort? Novo, about Or similar that? bit scale Can that a much guys seeing, could pretty it more being bit Is pretty a to similar are on prior dig to talked bit you go things larger? you're range a to seeing? smaller, or down there is Mascot, deals. You that locked in, wide

Nicholas O'Grady

just in partners? You of terms mean

Paul Diamond

Yes.

Nicholas O'Grady

lot of from we we a think lot small-scale also in from else. we're terms upper-midcap interest well, have the large. rationalization, mega because a largest the of lot think of I transactions, the I Certainly, with the asset and as a everybody have they midcap companies of people conversations conversations stuff as and from like well. But always very large need the seeing just the money, of

runs think gamut. So I it the

what tell one perspective, and think it's not I I me, than that rather perspective, would talk size let about this I'd you Adam is all. from our our from fits

it depending based that what going our to adjust on to depending on is we're of who dealing is, going on type it methodology Our change meaning more to structure is. mean-spirited with. of counterparty become what type party we're probably going It's

Adam Dirlam

size And for then put than terms just we're this partner transaction that guess, a can that. you've the that for example, for of unit-by-unit On We've right. just into a on are equity ground-game got, million to, we some deal ones to $XXX that And basis. I have their level, perspective got, development groups significantly size larger private they That's levels in also partners. a raised it and dry capital of a doing are looking in obviously, to that that million so on last powder year were $XXX prosecuted go-forward looking basis. use that participate

Nick the saying. like runs gamut, it was So

Operator

to at Bank John next We'll of go America. Abbott

John Abbott

out and this Sticking balance your at transactions look sheet, with you're opportunities time? at what look seeing the that in $X price, on you at your are thoughts of the billion financing to there, share $X point potentially you billion

Nicholas O'Grady

across be prom for liquidity. felt opportunity him that has Yes. over with the the of billion Chad have all to the got which of transactions we something we reason, popular front a board. happened, saw us, Frankly, wanted revolvers been to have to XX% that recalled of I is the and act. girl in we prepared take John, think at banks $X right that was begging money. of like We've great fall the most we $XXX a now. raised He million last

have think ourselves, us. like available companies case But is capital certainly for I capital scaled we there, everybody. raise the the additional I ability so for certainly. to And think to that's don't

in being would billion capacity raising sheet I think the So that the without on we done for $X any beyond that so year, as satiate And those, capital. my have XXXX. haven't quite that additional think upwards us you point Obviously, in we're we billion and shape $X much see. for being. think for I more a I balance really of time easily do But we'll pretty than good

John Abbott

see a you very rate do you necessarily of question terms accrual beyond accounting, for earlier this the There as is, helpful. real in the noise where rate the on year. for conversations exit was production? I but XXXX the specific, Very, lot guess about here of exit Nothing looking think

Nicholas O'Grady

Yes.

about how stab in And vary. Jim the As see quarter, acceleration Evans we'll everything raised just that, because barrels is we on with timing more really guidance the for will see if me be a if come third we talked the our the early that we large a will truth and of can year. about and projects, a produce lot non-operator, knife talk I

be third great our see we production peak that if so quarter, thing. And the in would a

rate" theoretically we'd in And quarter be see third so lower. your "exit and production the peak would

to and higher. Of course, we redeploy ways capital would find exit

second third quarter. would in mild in the be a material quarter, expect as believe I'd But obviously our in jump the to then hesitant So the be see the We we'll in jump release, in quarter, jump another fourth would described down first a we that. modestly and I say, we quarter.

substantial, So on I that for say that. think would punt I and would sorry is just that guidance, that I'm I But our leave based at to on now. it obviously,

Adam Dirlam

things But February. can It's change [indiscernible].

Nicholas O'Grady

Yes.

being about a a it a timing this So part I produce are but it the a but great for company know year. is our honestly, you. the I gets going of our sorry, we're do the business to there's reason I'm But best of to barrels grow as there and accelerated, can more in would the the a great say that that's non-operator, lot of it. we're And that things lot we extent business. in this, Look, non-operator, things, to

like barrels on number It's we're life. the produce not not not So But of to that's laundromat, machine. a It's rate it's the exit moment a things hang time. is, in the of about you rate exit to. one about right? those is The people that good thing. a over But a

I And over the that's in to we the the that this, business thing. so say I most business grow important that just are time, and think

Operator

we'll our Brothers. take Noel Parks And final question at Tuohy from

Noel Parks

couple. Just a had

versus for do all look operated talked you say publicly-traded different ground private terms size at is interest it either the agnostic right to game between one little how can't fair operated non-op of for about in now, pretty that just a acquisitions. earlier But you fits really larger or A&D? You you're

Nicholas O'Grady

I wouldn't say that.

depends it but think that really There large on the bad. quality the are are are operators operator. of great privates, I there

there There I and think it bad goes and are Adam? operator really really are big are operators good specific. really operators, Right, that small.

Adam Dirlam

private, I are true or think Are to you means. you about talking need differentiate business right? talking you And what about differently. are private those models equity very, private run very

and an asset, a You've will have that's renting had to it got one for very, time. it very long hat's continue one

on and people willing view at who looking as as their a Yes. aren't looking we're of And ] to are that say a know. equity be out operators backed we'd private that great Newburn similar term are us be so operators flip. equity And well would that But the long partner to say the in the with. there a finest can terms to typically long there have [ that's of in I term. not viewpoint that different. is think it's and could term Yes. company, of renting I very or a operators private many one asset private short basis very, the

Nicholas O'Grady

Absolutely.

Noel Parks

out talking management bit, in there, about clarification. any there. And and land have just size. one have paid I lot great. wondering a Williston, not the thanks state the seen I a Well, attention the quite while for maybe guess first Oh, I wondering, of of to deal the And of we a was a the

years Some of if longer, not at point. those are leases old, XX this probably

positions cleaned know, I wonder, you've long. just so in things can of, up do stuff there, just don't or still... pretty absent is that So still terms non-op I there there been you to neglected books Are or

Nicholas O'Grady

owned know. sell, when that don't there's be Adam? up, like are to people land to that fair, it's Is will things lots It's to people that pretty be be I are to but Noel, ready, just there the they're are open when of about, west sold. It's are blocked think there ready still more things going ready sold. But wild where

Adam Dirlam

that's fair. think I Yes,

refine would I that seen operators step thing completion the to other add of out. that is and evolution right? The of just methodology, lot techniques You've those the a

some of those that are from changes of wouldn't certainly rate look standpoint. the land So it the X, and a you projects things now. years even return X that on at, landscape are And economics call viable then that the ago,

and the to whitespace tackling not we to up And one the area, as terms can out beholden non-operator, AFEs we quarter, to right? interest we continue good XXXX. appropriate of do in day particular we're of core get and can gross you in as and blocking So So our some job. a as acreage a are in get bringing and some in operators working picking do day that going did a up into XXX

to always wood It's chop. just there's a So different dynamic.

Operator

turn to would like And the question-and-answer for the I that O'Grady to over Nick session. concludes remarks. closing conference

Nicholas O'Grady

Thanks, for one. the way. This today. time. on Appreciate joining We'll is the see your next us you everyone,

Operator

Thank call. for conference participation. today's concludes this your And you

may now disconnect. You

Northern Oil and Gas (NOG) 23 Feb 242023 Q4 Earnings call transcript