ConocoPhillips (COP) 4 Aug 222022 Q2 Earnings call transcript

Company Profile

Participants

Mark Keener	Vice President, Investor Relations
Ryan Lance	Chairman and CEO
Bill Bullock	Executive VP and CFO
Nicholas Olds	Executive VP of Global Operations
Dominic Macklon	Executive VP of Strategy, Sustainability and Technology
Jack Harper	EVP of Lower 48
Neil Mehta	Goldman Sachs
Stephen Richardson	Evercore ISI
Jeanine Wai	Barclays
Roger Read	Wells Fargo
Doug Leggate	Bank of America
John Royall	JPMorgan
Paul Cheng	Scotiabank
Bob Brackett	Bernstein Research
Neal Dingmann	Truist Securities
Leo Mariani	MKM Partners
Raphaël DuBois	Societe Generale

Call transcript

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Operator

Welcome to the Q2 2022 ConocoPhillips Earnings Conference Call. My name is Richard, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. [Operator Instructions] I will now turn the call over to Mark Keener, Vice President, Investor Relations. Mr. begin. may you Keener,

Mark Keener

and earnings everyone call. Richard, our us second quarter welcome you, joining to for Thank

First, the taking call. ConocoPhillips me leadership let introduce team part the in members of today's

and and Strategy, Leach, of and adviser and Harper, Technology; of CEO. Bill Chairman EVP Macklon, EVP Sustainability Lance, Olds, to Operations; Ryan Officer; Dominic the have Bullock, We Tim EVP Global Chief Nick of Financial EVP XX; CEO; Jack Lower

is comments, call, to Ryan will after and questions. which take available opening team the your On provide the Bill some

Before it guidance estimating reminders. cash materials and results turn and earnings the we morning's over I earnings a to and earnings for and quarter third supplemental few In press flow cash flow them, summaries, quick full that posted for this quarter year. highlights, just include price second conjunction updated realizations with and sensitivities release, and

call, During we'll statements expectations. current forward-looking the based make on

due release we'll periodic factors results that, to Of the in With noted GAAP to the actual to nearest reference it and make filings. turn to today's in measures over SEC be release our non-GAAP corresponding on some may today. course, this found can I'll financial website. Reconciliations our in And differ measure Ryan. and morning's finally,

Ryan Lance

And thank retire. Mark Well, Mark. for has you, -- those elected to

really as I'd Relations. time, Gresh, team next want wish same our him and warmly of company him Vice I retirement. years off for at will President Investor service to by the who to our to of joining welcome thanking well So start more month dedicated be than XX like And Phil in

COVID on gas regarding globe. role operational triple progressing few and capital in has of returns ambition, competitive these The and that and mandate clearly to global achieving commodity greenhouse energy the world, significantly towards the us. supply the actions are capacity, coal energy emissions waves and impacted mandate driving The chains to net strong in responsibly the with of including LNG for of volatility, recent for ongoing our of reality dependable as is brought mind significant and touch opportunity refining use principles their critical represents large solutions both tragic transition shock and reliability. in implications security continue of elevated and shortages gas the supply focus secure, a reductions guiding to Now playing combination natural swings on into before announcements our opportunities demand, into get importance our triple around related U.S. into our were future. factors top from quarter, and By and meeting residual pathway product that I'd the demand LNG and prices. the well drive We delivering I also Ukraine invasion world. in have believe sharp energy key global fulfilling The providing this the around for in needed reliably products be going to zero of we're levels like things of around a place of emissions results key global increasingly of an

East be to announcement recently expected emissions in one that's participate our jointly North opportunities. company's ownership into As as us our gas as Field America, executed, well expanding reduction and APLNG, to if LNG Energy. Qatar would project, leverage a strength and, financed our completed That producers investment with to to The as our of followed well opportunity our LNG increase possible marketers Arthur investment long North global entered designed largest for currently HOA is the recently positive to Sempra with LNG in is the investment to adding Port business. relationship pursue in an announced, we participate This potential project the additional selection afford project potential projects, located strategically related in considerable as Qatar's XX% in as while underway.

Our X.X verification gas to sector. in join an path the OGMP is company operational our reducing net and as emissions. for on a methane, triple standard, initiative including mandate, service to be vital incorporates reporting which to emissions, our also OGMP rigorous imperative our recent decision greenhouse the Applying step is our achieving third-party X.X zero will

the over mandate. quarter on triple call moment let's cover performance, before for equally of to Bill Now the important I a our discuss second the element turn to returns

XX% generated capital, a we at, last of quarter, first, quarter. delivered we returns at than X the ROCE the XX% XX-month trailing in Looking on higher points

current targeted Turning shareholders to to last quarter return with XX% Once billion the our XXXX capital. this $XX and more for strip the At three taking target of a to be distributions ordinary our year $XX of expected projected This again, XX% repurchases the represents next represents distributed VROC. tiers total dividends, of to to increase a of than announced our shareholders, our full billion. prices, share year. increased from CFO we've returns across the returns slightly

key achieving triple delivering is our component of mandate to unwavering to our capital competitive shareholders through cycles and of the and is that commitment returns Our on a commitment.

the cover quarter. Bill turn it overall to performance over me let for Now our to

Bill Bullock

return trailing on Well, a And on a generated On of basis. capital adjusted we XX-month XX% employed Ryan. improves you that basis, thanks, XX%. to a as noted, cash

day. adjusted equivalent in strong per earnings $X.XX per million share. of generated prices share of by driven was and realized We quarter. X.X earnings to This production almost in oil the per Turning barrels

in distributions and includes $XXX,XXX XX third oil quarter, in quarter. we and from weather project we XXX,XXX averaged the $XXX production working Ford Bakken. continue XX,XXX scheduled across quarter, in rest some cash This mentioned, the as as our from minor other billion, were distributions well well, by equivalent the barrels $X.X global from XXX,XXX As $X.X quarter Operations of from leading in and volumes unplanned excluding production for day Permian, full ran of turnaround, APLNG, operations of the the from to portfolio reduced with roughly the impacts. capital. generate the million Eagle Lower billion million per $XXX previously year second also to in expected us roughly including

We second free the in billion $X.X the as as XX. with to $X.X in cash in approximately quarter, the resulting of taken These also reduce $XXX $X $X.X ending in proceeds million business million investments, billion into June used total billion as covered the the invested $XXX flow repurchase resulted combination returned and debt. $X.X the shareholders That to disposition in in well in long-term than billion of total cash actions of the of quarter, back billion. more we

oil the Turning to per production to million year quarter half across X.XX projected from day, the full X.XX range of of from risking reduced per our production the X.X of in and million day. second half. primarily We as as related provided to barrels Libya updates X.XX some second a of That's million million production third modest equivalent well year, to portfolio. guidance the

$X.X with from we Now conjunction in for to these guidance changes, billion reduced $X.X year. the DD&A billion

the to adjusted operating year prior increased billion. $X.X from billion guidance full also XXXX $X.X cost We

due loss restructuring earned efforts. on the commodity-related impacts. higher with unchanged for We resulting the our expense debt from balances, capital Now some to primarily recent from year price $X.X reduced $XXX cash along lower segment this interest million, Operating reflecting $X corporate interest for reduction billion. guidance billion to remains is guidance and at

all sum up, to So our across delivered have strong another triple it we quarter aspects mandate. of

and second $X.X the to quarter, ended target $XX diverse asset with We our our shareholders increased quarter return global well. to in short-term of year returned Our investments run of billion billion. portfolio $X.X full billion continues and to the capital cash

by strengthen OGMP we further and transition-oriented billion year-to-date. total growing LNG portfolio enhanced sheet, initiative. balance fortress current the expanding future we We continue have presence our low-cost to And by global the joining reduced market by our X.X our and in and $X debt energy

Now with let's to that, Q&A. go

Operator

[Operator Instructions] from Goldman question comes on Our first from Neil Sachs. Mr. Mehta line

Neil Mehta

missed, you listening forward line, you capacity. Phil, you're on to the working if new and who, be definitely Mark, And in with the congratulations looking to will

morning, dependent announcement this terms capital. Ryan. Or the to a is in this it, of Conoco matter you, return for this element is question incremental any we we there's no variable a The questions Big financial that -- investors count oil price number given you should first And way? got think from in of can as should commitment assuming as on. that's volatility, we view from being of market a reasonable

Ryan Lance

you the in We took Yes, billion if channels you're shareholders felt return using look a Neil, thinking XXXX, described specific the comfortable perspective to that count at question volatility market think think can the past. to the that broad I this on coming you distributions is that three the $XX been and the we've XXXX. we I using in could -- back to increase your from if

that can count you So in on XXXX.

Neil Mehta

cash the fit on that in Gulf a long-term some is the more a do long-term that And potential And growth orientation? leaning strategy? announcement is Coast little Ryan, investment I of a your Conoco free love into taking then Alaska, relative how think just does projects here Qatar, flow the growth to company of and that here. you progress U.S. into in The on bit the making company orientation perspective

Ryan Lance

growth Yes. I as a wouldn't describe orientation. it

of they to term, develop want I trying think We're -- to and of first grow portfolio. cost fit long our in supply our foremost, and we construct within company. we our things, do

So of the markets. the has investing do the free to on $XX. in cost we We flow need returns and don't recognize and the anything generate to to supply be that of over cash capital. a generate volatility we recognize want We that

in we're that everything So to service doing is that.

we've fuel do transition this invasion, gas going we be and to carbon is of held that recognize more certainly alternatives a lower to forward, that and going we wanted we transition play. long post-Ukrainian Now to view as had

both gas. got Lower We position America, natural to XX, both U.S. of Canada Alaska, and that large gas the with LNG in and LNG have capacity a space, very and liquefaction augment between capacity. a wanted North the lot we additional in We've

at time, the quite we've with So this looking itself some for presented and been Sempra. opportunity

going clearly, added and to forward. quite to some fit for signaled we in think going Qatar. Europe participate we've it's there's some yes, be and that's the We well both to expansion gas It the some that to the So, wanted in could in time globally. world, directed lowest-priced scope. Asia projects of And

to of a the we business business given we think over our going is that supply-demand service just of how and growing constructive believe in pretty of in want in So about the we the forward macro in company the investments the at terms view today. the to cycle end we're I think everything front of long supply we're dynamics our interested of we're term, cost monitor development doing make, the the and commodity in that

construct around make they're the projects really our with invest at sense our the to fit for want how we in, these they the that our we're with think capabilities when and So in company. about we company, good stuff consistent

So they make sense.

dictate pace And and Sempra with can't available, we're to make on with deal Sometimes these Gulf liquefaction. you participating, the opportunity come when things. like the the Coast themselves very the interested in they

Operator

question Mr. from ISI. on Richardson next Stephen from Evercore line Our comes

Stephen Richardson

Great. be will definitely and I'd like also for the the to wish all help He Mark missed. him thank best.

curious merchant like The about, gas? a just returns at into gas is first project variable about talk backward it on Do existing little opportunities relative of Gulf the do more think talk was following comments, production? the I bit the just to and basis? other Ryan, I U.S. And you this your on on could up relative you if think to about more integration in also you looked just you about wondering terms why guess, those maybe if Coast Sempra. much you here question, a could

Ryan Lance

Stephen. Yes,

think And area a of West that LNG why also which the the have that the we like that last we on project. of Coast optionality some that kind location, that and action opportunities with pretty going I over little We shovel-ready are scope, Sempra the This let a the link like with Gulf opportunities and was we has me well opportunities to it on one kind that Coast. themselves it the site, bit. the they of is their and Mexican expansion presented permitted the on other chose scale there. first the take come that creates know it

fashion. consistent it terms business, good So with markets gas well. the part, fit. of in how know where natural culture A company More and we to going very think we integrated the in is think pretty about worked We've a a and to in fit past. them We Sempra your globally. good about really the culturally of this was the yes, first sort

the year that not done that it's core it portfolio over we've recognition for liquefaction, the the to with position integrated we inside transactions recognize fashion. So Lower moving and XX, potential and And the very we position. the large market, the a Lower only last it's in but both gas XX, that the Canada got create natural in it's want a we've value into and assets a

most. but one markets ability integrated supply is So gas that that liquefaction it's the the getting it the The and moving to of project. of they us the million integrated well element, together. tie know really gas the X of we tonnes the into Not fully taking nature chain to the what facility, any all supply commitment into interested

Stephen Richardson

little push little NEPA, to higher one obviously, Washington That's could quick what maybe of would maybe that, industry up. permitting you least happen or just I you a particularly face, have but there's address we NEPA. kind seems the a to project, that could And cleaning could I'm when the Willow up some about follow-up wondering talk around need movement, bit hear a about some please. you -- in challenges think if bit about discussions the about at on If of it

Ryan Lance

XX and reform, that just guys to even to and industry, takes NEPA complain wind just the Yes, responsibility NEPA years all coordination the lot a more all it the thing. needs developers that are that talked the government can it's it's I various long for Stephen. within process industries, same our of agencies farm a And take time. cycle developers It or time. time, solar through takes It the not have

comment to do administrations little to don't let past some and matter. extend periods, So public for to tended better a review some having tends coordination, do deadlines giving administration times, response them definitely but like good and giving have bit that this

coordinating NEPA the process. need through companion a smoother, quicker, I Schumer-Manchin agencies this run that have that, it's is the bill responsibility various reform and they're the maybe in groups you a of process to looking through bill. to try desperate have So it make course of to some have And at the shepherd understand

get as bit question to us gives reform. not but done, is of little it in So it or a of need some will NEPA whether desperate it

of on public of so statement through comment We've we'd we're plenty Now long in of got Willow specifically, been the supplemental we've in in project. time the final a throes today. out the this process it's EIS -- like time, Again, Department to the Interior, that. this had comment the to public has

we everybody I think where know stands.

a the it's to can look that so get on this here ready forward forward. has So forward. later We we the decision time the record project. of that we've we year we're coming think forward make to and decision all concerns move And satisfied federal to had, move to judge moving

Operator

line Jeanine Barclays. comes on from next question Our from Wai

Jeanine Wai

much you'll be for missed. and on so thanks We'd congratulations Mark time, retirement, your very also to like show our to your and

on returns. maybe on first question question Our Neil's cash dovetails

walked increase of in up digging the would commodity factors guess maybe are free price we stronger-than-expected kind little flow it more. kind increase bit the increase? I reflect outlook, that other primarily driving a strong I really be some but of are there anticipated we thought a Just time. of given Or saw had we a environment? cash mean, kind Does over

billion the our increase, So it expectations. $X exceed

the market's expectations. I think it exceeded

color there any about So future on thinking great. potential be would you're how

Ryan Lance

a Jeanine, we look things. of at lot

a as it's market. We the going. lot view know the you of of supply-demand where the have an and macro volatility dynamics informed There's in

backward with a that curve could deliver in price. that commodity something we make we wanted have bit. we So could the of nature we could on forward guarantee even But pretty the sure dated a XXXX, little we that constructive the

market this on, where that earlier in the a transaction on terms last constructive see for the been going. that's really the has a in The we next forward, Jack sheet the we the I But other some that after for spent on the a little on pleased balance still very in very company. good is kind going enters we transaction And see a build know if want cash of thing We're can there's position with pretty price. cash sheet. our balance rebuilding of are is we how balance bit years conversation later we're have -- We the interested which sheet. year some into the cash that where chime our We and We're some we strong the commodity volatility that over very, cash of on on the sheet. to it's question. balance think but few

like us the back months. increase the expecting we've made market was then that we maybe have beyond over might what the distribution to to the shareholders allowed progress So that and the pretty few feel been good above maybe last

Jeanine Wai

of Conoco Our CapEx operating to second continues announced trending CapEx tight discuss versus we pretty the question, budget you It inflation. recently are the North reiterated your budget maybe your expectations? and Can thought in a maybe how moving environment chain. true up the supply Field there LNG you And this kind between to CapEx inflation project. out the for costs be participation would morning. and a tough But

clarify us would if the there's budget to be in if anything that you're for able 'XX for very that So helpful. participation,

Ryan Lance

staying maybe inflation of world. Bill different Yes. in address ask of say It's Maybe timing I question on Jeanine's a high around us. us. with can pieces is the then I'll specifically Nick, It's still some can the few that. of And chime you different to words. with Obviously, old NFE. Maybe on the

Bill Bullock

Ryan. Yes, sure,

X% we our else, to $X.X quarter levels about on where reflected we're we're in inflation activity guidance Like and call. company eye in with be of higher continuing capital just and overall our like talked we're expect to X% everyone continue most the in to first what's inflation, what keep our experiencing billion, that. we that's Jeanine, the range, So to Permian, an that's watching, in the

Nick Olds

Jeanine, this this Field is North the on Nick. expansion. is Yes,

got equity half obviously, XX% train. in the So we a

perspective, billion So is communicated that a X per XX that. that project, to tons million Energy Qatar total ounce, so X in XX put the million of total of that's for trains

working interest X.XXX%. effective is Our

that, estimated $XXX So the if for an you of gives million approximately us that incremental NFE project. take CapEx

on years mentioned, related of for to going couple platforms. drilling Now as been has in and this a Ryan timing, project putting with

So our early that the payment any that's year Qatar is costs, project this and this with have to for share at guidance. either Energy communicated, start-up has an determined catch-up time. Again, we'll point to late be not of LNG And respect initial would XXXX. as of first or in next, in this incremental

Ryan Lance

Yes.

that's If payment incremental. So that guided would catch-up we $X.X a -- to that year, did Jeanine, that if incremental this be to. occur it the billion did

Operator

Mr. from Our Read question line comes next Roger Wells from on Fargo.

Roger Read

And Mark, congratulations.

too on. operations, to and together far young Anyway, sure you likely got comes the seem it kind and It investment. LNG question got you obviously, for get do to but You I tying two of to your seems, what and one like right? existing I'd back to new man overall retire, guess, to do, the one

the does gets new be U.S., the sort what Sempra. would Probably a little curious I think we trader question extent a road? And about You're integrated was structure with return of bit some a gas opportunities in there? transaction should back the as about to big globally. Stephen's business to overall the of that the down create just

Ryan Lance

Yes.

what you're I doing aspects start on we're Bill me little a Maybe in Roger. have Let this -- chime bit But in of right, space. the that. commercial I'll can

very nature. we I it, think integrated look again, at

gas So every marketing America. X in X day a Bcf to North of we're day

figure Arthur, we've know, to way gas X tons -- through. that in got describe. multiple that. through But a into all as the to can the it nature We're that to commercial to a European to and provide commercial compliment supply team supply from the we're X a We'll to both used We a be in Bill an gas spot in best intriguing any I lot you out to us Bill, London. and Port side. at work market. on side got move moving there the million was the color to the integrated commercial what know. Singapore. might there's tons, We'll Asian interest team looking train into then the So of us, We if may on Texas we is selling project commitment more take got it a and markets. how the customers We the our is go integrated opportunity it at million out that of fashion. don't don't taking very experience

Bill Bullock

most highlighted, Yes. this Sure, exciting integrated nature Ryan. is it. that's about Roger, as Ryan

in We marketer. of largest the marketers top certainly are one North a America, five

lately, number think I we're pushing two.

and with comfortable our we physical So move we're orders supply, of above production. very magnitude

Japan that optionality in to regas own then And history started of the of assurance business for we've terms to through us interesting over trade interesting got in the our the facility. our to with So able is Asia. of LNG LNG a supply long It's quite facilities for a us. into LNG been being well production. time. years flow We've pretty also strong marketing XX Kenai ensuring We

offices of APLNG. moving in Ryan market been off here Japan. London, and we've As the spot mentioned, Singapore volumes got in We've

market And create able across so this excited integrated the nature to well of quite know of we about a chain. it's part that and value being pretty

Ryan Lance

of a the of resource gas. got And as we've of the very this here, say, part, hope could Jack the we could years, resource too chime -- to would result high-quality last gas even that that Roger, we to supply a other large, the transactions have time we in over be I pivoting gas lot but over to just a couple

Roger Read

Yes, for sure.

other of overall that, emissions talked I bill bill, minimum things wondering of was aspects like issues XX% thing. just that you sort potential is IRA and about question, the has think the tax, methane we a tax, a back, reductions on and certainly some on in any reorg positives of as in NEPA ahead like with should that the of coming But been the just all other earlier The of headwinds? or there of anything game the everything. Conoco

Ryan Lance

is think, what it's a as this the I'm economic a bill good sure to. and general large increasing Well, bill generally government I Schumer-Manchin not just the and increasing to that's policy, time goes speaking, of if ever spending, a part taxes

specific our to here of agreement the least important at going be are part industry, they're energy and natural Now that recognizes oil decades. gas and for transition the an to

So that's positive. a

think it's feed I EPA. got books some of in the over methane to develops your it We'll it. extra regulation point, the time coming have out to how with see comes and out

is it, Our that's to how to going to you won't, understand of in been We'll regulate have And general the join view if today, you're that, top impact do proactive saw like our fee have specifically generally that very see OGMP space. X.X structured. it maybe a companies agreement methane ConocoPhillips to itself. emissions you that. on we as targeting why put It have

carbon incentivizes the least by So addressing the some at agreement capture XXQ.

this comment, So of right supposed it's I lot on NEPA bill comes a uncertainty addresses in to companion that from think, a Stephen the with process. The of leaves earlier that there's uncertain and too, lot that, be that a now. reform,

this views So at point kind in of Roger. time, mixed

Operator

Mr. Bank question next the from of Leggate on Doug comes Our line America. from

Doug Blyth

U.S. if with retirement. guess, about quarter, I could I'm just cash to will including talked the with what to maybe congratulations fun but us wonder you I forward? not Bill, we update should Last in about of as going me there let -- the your as you Norwegian we're Mark, it well. business sure the to moving recent the I the much be give how good offer portfolio, rest outlook Gresh as you. tax. tax And Conoco think you an travel luck changes, into cash And full Mr. wrap when start my yet. all could you for together whether with,

Bill Bullock

from vary price into We But XXXX the through other our of paying and U.S. XXXX the very a paid expect through in on majority to timing in second at U.S. with tax And market on but Happy payments our of depending quarter. to NOLs. be reduced second taxes can sure. Yes, amounts offsets looking position cash be quarter to, were Doug. the limitations the conditions. in moved And not the and course, eliminated. we'd NOLs, tax only slightly, minimal

a So paying in cash we're high a level, at tax position.

for XX%. Our the was quarter second rate effective tax about

rate with Moving effective lines curves. assuming stay guidance and our production to the mid-XXs forward, I tax in expect forward our

Doug Blyth

E&P, So no there from you it an is there's basically, if guys, like? impact sounds

Bill Bullock

Yes.

talking minimum you're pursuit any exceed we we jurisdictions. the the an company about impact If IRA, across minimum tax tax XX% proposed corporate that a material our XX% have to because expect on don't

Doug Blyth

when is is could tackle inflation different I tax My the follow-up you parts the to idea overall wonder Matt lot the costs. of issue changing, obviously, When wrap I slightly question that used together, get for we was was capital the if sustaining from angle. a cash what little to a try and the moving capital CapEx back of all bit around, of on then, the course, going portfolio. was the an of And operating budget breakeven a

there. well. that to have as what like? around to moved an prices if does could wonder I your look as And leave if look to, I'll as could update gas as capital. And the obviously, ask to how it you But sustaining opposed total us see give capital I you So XXXX, that you you covering

Dominic Macklon

$XX planning It's this Doug. think this I annual right refreshing looking breakeven. just around are a capital that our Yes, at going some plans as I year calculating barrel cycle through out mean, here. parts, Yes. our our now. Thanks, We're together. we'll and actual there breakeven year, be Dominic we still pull moving is

sustaining So $X around capital billion.

high. we if way be focused is not that. pressure Now and on lower in some sustaining But the you're on there's like, you obviously to probably capital world, inflation that macro going a so quite think inflation about

more structurally, capital end period, that, projects to long-cycle information on think cycle, be would sustaining a coming, add will low the about provide $X this with that that about longer still in of -- billion. Clearly, year. of for and So supply by we that we're I expect the temporary cost year, we'll that some projects coming,

Operator

Our Mr. comes question from JPMorgan. on Royall from next John line

John Royall

cadence in you So prior being a I of half back your the down Permian. on know XQ. just question weighted in tick quarter talked in about like the looks modest a it production and

for to versus a expectations just maybe there. XQ? you on for XQ then speak can program update broad cadence back your So just and the half And drilling the

Jack Harper

Yes. on basis, low grow Jack. But Permian expect with an In in weighted, digits on year-over-year mid- that Lower higher expect the at in to high Permian XX This single-digit Lower a we we range. XX of single back-half entry-exit both production general, the the the growth basis. is the in end the pro is and to and forma

for for back half to of plan the are we year, currently to is news good As the expectations run of run number year. the plan activity, of the running we and that -- rigs rest in steady we for we're the

John Royall

really particularly the Yes. if in Sea could you color strong you strong North give And strong. just crude the then side looks on was realizations, some Very there. but at your across when board, quarter look

out? going So or on there just anything broadly to point regionally

Bill Bullock

Yes, sure.

Brent. realizations four by a for in factors you That's overall, supplemental summary we that at total it, the and about the driven look of realizations information, John. were at quarter our XX% as look of If we provided really

narrowing Brent, relative of up Hub was the spread. XX%. that's was to significantly is, XX%. more Henry was First WTI WTI Brent about it XX%. Brent, about up compared the increased

saw then more downtime by impact the of the side, Alaska crude impacting quarter, prices. out we of realizations. total better our timing in to better particular, really of in then realizations. In the for realizations That's the quarter. you realizations the its driven we refinery type normal impacting for And returning to our that first last out had quarters. coming really that's on That's And an recall may we cargo Norway. across had quarter the first HollyFrontier was So

So what's company. really that's our crude the realizations impacting across

Operator

Scotiabank. on next Mr. Paul Cheng question Our comes line from from

Paul Cheng

two-third or Thank the going-forward if lot your at will first or portfolio, Two those that attractive? The in, Let bolt-on -- that we large and been of is questions, help the the think between the basis and three distribution? some in really you to on good dividend congratulations one is or say, do value you quick split that seeing Eagle portfolio I bolt-on assume you dividend one-third me could. you're acquisition have in a to for up add that for to in doing your Permian. a When see Bakken pretty firm the second a not roughly through over buyback my lot further quick of half proxy opportunity some your acquisitions looking a the in for strengthen you years. you're to Ryan, buyback. Ford Mark. whether or is, your that bolt-on proposition us needed Is peers

Ryan Lance

Yes, quite Paul. in the a market bit. We're

now lot a doing and can core the as on Lower our noted in our some I XX, of lot think the focus up. right We Jack a in of of well as comment slides. that

the recently, company, three-mile -- looked corp pretty drilling year So laterals. we're try bar the lot our drill to -- acreage it's we you to did of -- more Bakken right two we acreage and We've we've $XX here $XX that still trading Ford. on supply the we're but -- cutoffs. and of the the we're drilling mile, now the cost in make this swapping with seen the can not sure opportunity we been pretty that earlier to the guess, of and the all I our of we large X follow Eagle focus the a rigidly have is described. the transaction so In and bolt-on we lot we a call at high

acquisition comes So a to that's lower something compete our than in asset the future have than have of and any to has $XX portfolio. all the in $XX lower exploitation to have in,

we're is at the So you all but might know, don't them, We Permian. have watch -- of doing them, high. add of a and pretty the margin them you swaps in few there Jack, around anything all. the are to if of more I

Jack Harper

the a same all extended Yes. lengths. And And stages the done in at lateral team these of swaps I that's would XX of deal at we Permian just have has last various add least activity, the Concho acreage amount of of in about deals XX,XXX number significance those of that drilling year's that is worth currently. about quarter, about year, closed that of this acres. the Permian and trades since the beginning

Ryan Lance

little we're put that. then think about ordinary part, XX% share That you with think share is the one-third, of remember cash the the Jack. company is this there's Board you that, had how Thanks, quarter And we're under ConocoPhillips. swap I'd where your a next a to going closer something year as swapping this our much side the dividend. cash we thing that what the pace that return between go probably somewhere We'll watch is where we out expect we'll to process. year year, take to the two-third, so prices this by positioned. through increase roughly at the Cenovus we year on the But second should of we something typical it But XX-XX that relook our market and to cash. and the And Paul, that about the includes the to and say bit planning think buyback. that about be we trading are that thinking was buyback revisit that see market. buybacks to portion I versus year. XX%, the I probably for influenced as split fourth advisement and the in of with shares the think of is shares there Obviously, own going watch to into And

Operator

Bob from Our Bernstein Brackett Research. Mr. on next question from line comes

Bob Brackett

path towards at Please like? of the the in that that can proposed my period Willow of various this talk are And the ends FID add understanding well. to to the Can looks the talk come alternatives my about benefit XX-day the the those? It's about cost voice various question. as what comment Mark about you I'll steps? the What think praising you chorus month. as following back the you end supplemental

Nick Olds

Nick. Bob, this is Yes,

kind commenced. You're has a publish that's backing draft And period again, X. of BLM XX-day the to SEIS on July just up, the right, comment key the milestone for

by your take decision a question to we the Now get BLM. wouldn't record until supportive final and SEIS schedule, the of we FID project in on

And allow construction. Willow to that with us move would so forward

probably FID, next. early earliest the at that this later see most to would year, likely we related and Now

to Now we a commence we had are favorable winter XXXX season of planning as XXXX, a as decision. assuming construction very record scheduled far

Court schedule, place will engineering work roads to that project. us, Now that And modifications. is I well the Lake new allow the reason Teshekpuk start to Bob, surface alternatives in District to come alternative, continue minimize to in do SEIS, there's refine the second. and construction cost reduce the is Special is developed final Alternative that development current the the We on impact raised to for as or the modifications I'll do Alaska detailed to the the order. And a E, here in a as on and responsive putting civil Area.

is alternative, royalty day remains market forward. XXX,XXX before barrels we're that barrels. in committed the So in communicated at XXX project. for a think of we estimated gross and portfolio. surface still good It maintains resources competitive recoverable and million to about infrastructure Bob, it Again, Still a path reduces we the that the looking, Willow, the the update

see Delegation, and the very support, stakeholder trades to Congressional We including the Alaska strong unions. continue

and thing of supportive key to a is the forward really looking record SEIS that final So decision.

Operator

Our Truist question from Dingmann Mr. line Neal comes from next Securities. in

Neal Dingmann

on My value creation. question first just

And the pure I'd higher going and XX% to a appears just then to certainly out average which what see. you've like than to I'm got be formulating growth, Specifically, cash great production, from growth of ops plan there about wondering also shareholders. -- plus talking

trading define best growth like you So you it. a you metrics? of Or at is go-forward how what anticipate I'm to Do wondering, per look best for shareholders? do all share sort value the way

Ryan Lance

about we commitment your to back And from ways cash the value. cash of think to Well, have to from at Neal, we look it point that the least earlier I flow, at XX% free a all shareholder operations. Not of starts return thinking the shareholder. cash different operations

If and been as of it's prices of to well of mantra you look strengthened continue company. the been the at our we're quality supply an sort inside doing commodity lower program cost investment and XX% the over what has record, track the active

We're intensity. our the So commit. can reduce scope manage we'd as I'd is say for the we're do capital to to to that as what trying low trying capital like we

value right or shareholders to So that's we proposition amount. go invest, our capital. and cash either on planning the thinking that macro we taken We is the XX% just of sets into afford capital our We to what focusing the having top. our rather better growth can the off view an can of cycle than return think a

long an the want right So the to of shareholders back make of and over it We is cash adequate haul. the to combination getting top. the that part develop the two. a want grow that off We are company sure

volatility that, as cash inside some the we we cash over. to that's So is or a growth it is live we in huge that we're sure have sheet and we'll company develop we're not to and plans we carry execute And balance the the the in see want commodity asset scope of our a balance -- balance to value have company, as we an of It's then because output recognize capital that the the carry with to don't another that the returns want and the which possible, to we shooting our some asset, strong the like maximizing the on means cash and capital. mind. of make sheet we'll the the in from that of markets, make and on left course sheet, which target grow sure

sequencing of production and And then those growth of plans to and So a adjust on key out haul. of the the make long components, returns the that number development we're to really in capital. allow hitting projects company that further a two of we'll our the over sure the comes

Neal Dingmann

it a And price, have rigs? in is financial flexibility, lot there they lastly, though for X mean, a prudent about can't now. months ones thinking contracts? other of maybe then on this it folks even you it other technically is, domestic the with lock-in Jack months, in bigger Jack, don't in the I to heard inflation. from love where locking right now. long-term lock than I'm whatever guess, I I OFS lock some maybe is, Are question Ryan. that Yes, out some even X are pipe going just I

now, thinking, see so you are guys mitigate tightness there And you to what right out doing as I'm just the that?

Jack Harper

programs the XX Sure. in rigs of general drill contracted. we're to mitigate have have in end also modest doing some those We those employing what I frac frac have really We wells And also We're valued, do keeping places. right things our the we the those program program. spreads we to value place we swaps which keeping flexibility we're X-mile all will our this technology drilling of faster. things. keeping always vendors, steady year, able Permian and been competition several But earlier. and mentioned last and now. our amount in in By some a are steady, the over trades in various that years. We're two amongst and wells have

inflation doing there. out we're can, there but still So is all we

Operator

from Mariani question next on Our from Leo line comes Mr. Partners. MKM

Leo Mariani

But prepared to you the reassessing domestic of come comments, America a to online these. number maybe more hoping I will, and gas in of years. little some kind which just longer-term some facilities, color of entered of a overall bit for North into of you was as get Obviously, feedstock your kind potential guys handful referred potential a some around I of of LNG plans. have guys your guess,

it do. mean, couple advantageous possible more delivering just an into in some facilities? to is start-up debt for like to drilling be you could years a you color date, sounds as economically around any might in So ready the for it you that? for of be these And in here thing of feedstock look I that gas U.S.

Ryan Lance

Yes.

with of production gas think associated Lower comes quite to different that we're oil coming just Gulf our Leo, to it well inside to a Coast recognition capacity down its that the both the and and we're But going and west primarily plans But Canadian of in have Mexico. terms resource portfolios. sort of as spur some trying that XX California ahead we're we development the and gas may think, add thinking the adds what a about and I bit that to doing. pipe

marketer America. So North we're -- earlier, Bill in a gas as we're top described three

So markets going. these where we know are

prices arbitrage view informed an and take into of we're advantage with marker Asian have can just that and that we opportunity an that into Hub to. domestic And make to there's and to Europe one North supply markets our that of arbitrage. going And America and these Henry in those markets. have step between gas to how are extent not We stuck we the the we're selling where sure gas

So can't various advantage make at of it that that we sure regions the of when it arbitrages a it. up is around take advantage do integrated to that to at a when look very and that between very informed globe look in these we open it see can position and take the others that a be

Leo Mariani

you to pads growth, that number in maybe of better year ramping be next continue you little been in is of And Ford years. of back of online just come of have the it into maybe of in it. the there growing Is through past the sharply maybe Ford noticed to handful I year? pretty Eagle expected, was that bit all alluded that certainly than the But last a for folks. healthy drove chunky quarter. on couple end Eagle quarter, in kind next on just kind Had jump you thoughts up kind had of a that to And then just this asset firmly Ford growth of quarters. a a Eagle once I the guys kind going the the now this was production quick at mode? in know declining question to

Jack Harper

of plateaued This question. Ford in general, Ford in there. continuing I'm the is quarter, is it's Eagle We're completions first great Ford. towards that there second Yes, Good But the proud work in the again. aspects team is the the in down of And the not yet. were very also weighted Eagle having growing there some all, in of production, its specifically, but doing program the refrac Jack all Eagle success business. disproportionately

Lower production XX it will continued a source So of be growth.

Operator

Our from DuBois next from Societe Raphaël comes Generale. question

Raphaël DuBois

Qatar is one related bit that if give It this more very learn will what NFE. will can maybe you be through so us first color could we The deal. to a helpful model you

be can the you footprint? maybe would be For two a or price you LNG oil-linked sold be to instance, be NFE expect gas other from helpful. the of profitability hub? to Or compare will a whether Any That maybe linked be low participations? your it with it will very the to will gas carbon can fact clarify maybe premium

Bill Bullock

I can start. certainly

Ryan Lance

bit. kick I'll and it start, Bill a to me Let little

done. I still think work of that lot is be a to

bit approaches of follow think of the the But of I the view. in done terms marketing gas past. Qatar similar supply has what Raphaël, a little in will can probably to Bill very

focus project is the now the EPC. think I in right construction the of

Bill Bullock

successful. world. in project that's Gas of I on Ryan. those those and and They've to continue format. just Cutter placing Energy will I places the Cutter volumes think very Yes, has very, been right, have reflect LNG They're that And would one very successful about the been gas largest marketers the through

watch very placing space, time Cutter markets. over been it this Energy very, gas So think have effective reflect Cutter but Gas, at that into I valued just

Raphaël DuBois

maybe memory months was us you right, the could thoughts give for full expect. I your that give next And mentioned And XXX,XXX the results, if U.S. is year? day. initial question. per the if us we And your you another barrels years. At couple year increase you refresh thoughts of into X thought on maybe supply wondering maybe in should

Ryan Lance

primarily. stay there industry supply forces and of are labor that key that spend seeing we and the exit -- at does Lower in in the kind pieces as we me the XX constraints into entry and kind think of in exit the lower XXXX day. that maybe commodity still we're maybe slightly And of barrel for XXXX. chain the on an -- the prices I to a if similar Raphaël, that's exit And the these Yes, some number number on inflationary that but sort let get a XXX,XXX of levels go we're see seeing we to we're of the Permian other and this

kind entry -- the we yes, exit kind see rates next pretty those So to for this are of year that we're of and year.

Operator

Thank you.

We call this turn will back I for remarks. Keener no further now over time. questions have the to Mark at closing

Mark Keener

who for Thank all that, I'll wrap finally, call. are all to thanks this And today's you. the appreciated. thank Thanks, They to Richard, to up, kind joined you with it back sentiments. you And and Richard. pass

Operator

ladies you, conference. today's This gentlemen. Thank and you concludes for participating. Thank

disconnect. now may You

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