ConocoPhillips (COP) 2 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Philip Gresh	executive
Ryan Lance	executive
William Bullock	executive
Neil Mehta	analyst
Nicholas Olds	executive
John Royall	analyst
Andrew O'Brien	executive
Stephen Richardson	analyst
Dominic Macklon	executive
Douglas Leggate	analyst
Francis Lloyd Byrne	analyst
Devin McDermott	analyst
Nitin Kumar	analyst
Roger Read	analyst
Ryan Todd	analyst
Paul Cheng	analyst
Joshua Silverstein	analyst
Sam Margolin	analyst
Timothy Leach	executive
Neal Dingmann	analyst
Scott Hanold	analyst
Leo Mariani	analyst

Call transcript

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Operator

Welcome to the Third Quarter 2023 ConocoPhillips Earnings Conference Call. My name is Liz, and I will be your operator for today's call. [Operator Instructions] I will now turn the call over to Phil Gresh, Vice President, Investor Relations. Sir, you may begin.

Philip Gresh

Yes. to our welcome earnings quarter and call. conference you, everyone, third to XXXX Thank

Johnson, today members Vice Executive Olds, Senior and of opening President are will leadership President, of call quick Planning Financial Senior Andy will Kirk Technology; Bullock, the Operations; Giraud, Vice On off several Nick and remarks, President of Ryan to XX, Operations; Will CEO; XX; and Chief O'Brien, team Chairman few the Lower Vice Strategy, reminders. be Executive Adviser and and Assets with Vice Senior which kick team, Dominic it of Bill President Lower Lance, for and President Leach, Executive Global available CEO; questions. A Corporate Macklon, Vice Tim after Development. Brian Officer; the Bill and Vice including and President, ConocoPhillips the Sustainability your

published you Investor a today's and supplemental release, materials along website. Relations find First, can we with financial which on presentation, slide the

during factors forward-looking Actual due SEC call, differ based release, may results on current to expectations. filings. Second, will in in statements our we and periodic today's noted make this

today, Reconciliations make do on before can some to will financial the we'll per it over, release non-GAAP turn measure to I We corresponding for nearest one our want GAAP be measures. flag today's reference in And found to and website. just caller. I question

Ryan. it to turn let with So me over that,

Ryan Lance

additional strong portfolio in another across milestones quarter international the quarter in portfolio, as you, underlying earnings Thank for you thank was deliver achieved our early we everyone have the continued our Phil, and solid performance to October. several and team XXXX joining project to conference call. It for third ConocoPhillips,

to been the into surprise M&A address I is the industry, get headlines has which the topical I not to recent a in news us. This in the weeks. before wanted Now details,

pleased a and steadfast to value the past can portfolio grading acquire in October. our An asset very our XX% make attractive own long have actively remains early at through came for along which Surmont, of creates example, are plan acquisition further in ConocoPhillips and of several reminder, that consolidation. remaining as proposition said we cost to our the principles, on makes We see better have as of a opportunity an high bar industry we've the years. And our returns-focused framework, price that an recent acquisition even fit a this we asset closed to better. supply And been full ownership a over high financial we XX-year that expect our M&A.

addition new of can This pad capital to we is Surmont well. is low from to we up intensity third and meeting, quarter, know Pad XXXX. at analyst first a in as We add that quarter and the since leverage infrastructure first achieved in is limited declining years pads long asset with XXXX, we XXX start the capital additional low recent and production first steam ahead. expected in the requirements life, very said our our existing

regas moving European total LNG. take the global capacity X.X to securing strategy, LNG X.X regas Gate continued our also to in will our Netherlands. mtpa capacity Now mtpa. We've This the progress to terminal at

sanctioned the destinations Arthur secured in We have months. commitment of X offtake now first the effectively for project. half our we Port LNG nearly since

X earlier as nonoperated developments This X facility, of company-operated started Montney. central have announced in which elsewhere well than just planned nearly ahead our A, is tieback in Ekofisk, subsea up Alpha as schedule portfolio, includes projects. we processing project in Tommeliten months the up October. at CPFX X originally And project second that started we international Now the in we the Norway,

Bohai Phase at in October. Finally, started China, our in ahead schedule, partner Xb of

continues portfolio international diversified our our see, can to a to strong be company. Shifting for differentiator you results. as So

have We continued unchanged. guidance while the our production year capital account quarter, third guidance full Lower as improvements closing we for remains raised the capital and efficiency full XX year this in acquisition, to achieving all and our production of record global the Surmont

to continued objective We also to deliver We increased with consistent increases by quartile the ordinary top on deliver S&P to dividend our quarterly our our XXX. returns shareholders. XX%, long-term our to relative

the execute dividends year on remain and We well. $XX target. have the this full and across And while we longer-term distributed $X.X we capital we for see organic growth billion entire team opportunities continues billion funding our in to year-to-date, shorter track and did that buybacks portfolio. The

continues competitive returns, base come. diversified and for positioned asset cash decades flow better, we and Our are durable well deep and to get better generate and to to

Bill Now turn detail. to in over to the more me our performance quarter call cover third let

William Bullock

year-on-year and Thanks, We the generated averaged X,XXX,XXX Norway per production year-over-year. Ryan. X% third $X.XX day, wells from the equivalent In per new Permian, expectations. share underlying strong a production adjusted our Eagle produced in X,XXX,XXX relative quarter, oil and from per Lower turnarounds we Lower to representing the XXX,XXX grew XX Alaska performance of XXX,XXX growth day barrels online underlying and XX X% day, with including Ford, earnings. the barrels successfully in XXX,XXX were from completed and Bakken. equivalent well Planned

flows. cash to Moving

million. including $X.X $XXX was CFO distributions quarter billion, APLNG Third of

funded the billion cycle end have out of for billion LNG, which were projects. third Third we planned for $X.X million million included longer the quarter year. And $X.X for through Port $XXX $XXX now of quarter, Arthur the our capital expenditures

billion, debt with included share. fund investments to XX% billion payments. which dividends announced the capital, of $X.X in as $X.X of and organic increase today, to which Regarding an $X.X in and in short-term ended early Surmont third $X.XX shareholders billion of This October. delivered cash the billion and dividend $X.X of the our quarter. VROC $X.X said, We in share buybacks that quarter to from issued via proceeds was the per we we to closed And we acquisition, returns Ryan billion long-term ordinary

quick will provide be can announcement on Beginning of expect us our call we fourth our ordinary XXXX, first in payment the on want to quarter the payment both quarter our and our details guidance, subsequent February. aligning I moment a shifting VROC. update timing to Before dividend. you to with VROC in Therefore, take about VROC do to

turning October, to to quarter roughly today. oil barrels million now oil now per we reflects forecast starting XX% barrels which year equivalent in million Full in X.X million guidance additional guidance, of to of equivalent production range fourth Surmont X.XX early be production X.XX Now is a of of day.

to production growth And of Now Analyst plan this year-over-year, and is X% Investor long-term our X%. to we XX in expect context, both and be full includes year Lower our and consistent growth roughly very our production full the laid roughly out for at the year this underlying quarter Meeting. the fourth with guidance we put guidance which

billion, around is run guidance XXXX. to about moving we vary million, APLNG our billion. increased impacts a run million in normalized expect costs. quarter-to-quarter, and of good $XXX was on million DD&A operating a forward working Lower quarter adjusted distributions increased by APLNG, full full to distributions million the for rate inflationary $X.X think And guidance and which We to XX Lower raised activity our million quarter the full $XXX And and to due fourth to per at our is also also is the primarily roughly guidance while XX. We've Surmont, year loss interest by $XXX $X.X for non-operated second $XXX year current raised levels. Shifting can point For $X.X price by adjusted starting $XXX billion This remains driven year. rate corporate at half net Surmont. unchanged in the

year also our Finally, capital full spending range unchanged. guidance is

operational solid another had we quarter. up, wrap to So

We back continued our over distributions. turn Q&A. to our the initiatives to start strategic on competitive and across remarks. concludes I'll prepared highly our the shareholder operator it we our diverse deliver portfolio, remain now on to That

Operator

Sachs. [Operator line comes Instructions] question Mehta Goldman with Our from Neil first of the

Neil Mehta

XX and guys results variability There's the have some steady X% been been rate. from lot a your of of at competitors, you in tracking very growth Lower

move the perspective love for into basins And walking you particularly working, not the do plan what as what's XXXX? about Just you is guys? feel you, and how Permian, the your and through

Nicholas Olds

is this Yes, Neil, Nick.

well I performance mention those Lower you it's that in again, also our our across You're been of in strong, look and performance mean, overall, across, basins, it's XX assets. I'd been line all year prior right. barrel if at of a all with type call I'll for our expectations. per with on top on out, but per showing Delaware is quartile only basis, curve performance example, oil also foot. line produced, per not volumes basis BOE on a

encouraging we're results So seeing very there.

strong environment our the point, too, returns, capital-efficient set there. that strong is focus reinforces the think on I performance key we've

Ryan Lance

that's focused And basin as best it depth and quality Neil, capital company. the Nick we're and acreage doing efficiency prosecuting inventory the add, again got, the it a to in I in such of way would described. and the some of the speaks We've in returns, on the

Operator

of line next Royall Our the question John with from JPMorgan. comes

John Royall

the on international a handful had You've in release. touched project that of start-ups you

If you that these could 'XX could the if well, as that more And into you outlook some tie a business be color maybe would projects, that growth international would us in be give on for helpful. helpful.

Andrew O'Brien

that Andy. little for a into be It's John, XXXX. this is take I one. getting to full can guidance early year

news As Alaskan you international some across pretty have our good had projects. mentioned, we

expect pretty X the or of of those our and we one to nice touched some fourth to there as where in so it come ahead significant achieved on ahead we see X schedule Norway, subsea progress portfolio, made major planned of on we've of the achieved QX is on milestones really across So And first 'XX. many projects online tiebacks. production budget. Ryan and schedule

those year, XX,XXX more normal should to next expect X of than decline we which a projects about add aggregate 'XX. day in So production in barrels offset

achieved news had Bohai also the partner-operated production platform. Xb our where ahead first China from good of first We schedule in some Phase

that, to in X in come be have major Pad for X quarter. years. And in and had expect big then And a the in the and Surmont. Now platforms platform Bohai new to the going on processing back also facility, then we'd milestones we opportunity next then Canada second we'll to that's XXX Montney X drill in tied with to the the CPFX with pretty some to wells central first

started has that's capacity. CPFX million above add gas of in a of about September, XXX barrels XX,XXX condensate, to successfully handling day and feet processing, going to So cubic about up and

Surmont So then XXX, steam production achieved averaged of QX, XX,XXX with barrels Pad in get first grow year. we in substantially first next in that to we'll And early half September, finally, we're Montney, about going we 'XX. in the and and

we'd day that's see something a that Surmont with we every years grow a month-long to X,XXX turnaround conduct and X XX,XXX expect importantly, Now -- barrels next And of year. XXX online, and somewhat. inclusive

opportunities. proud how of on we sort example And doing leverage all is this low across of existing cost of really our what executing supply to really I'm think and So our these deliver I projects. we're of infrastructure a

feel we're a you gives for sort that momentum hopefully into next of going year. So the building

Operator

from Evercore Our Richardson line next Steve question the comes of with ISI.

Stephen Richardson

Bill, CapEx I help strokes you broad bit XXXX, maybe a was us thoughts. wondering on could if little of on

kind talk I a bit the an $XX forward. you're admitting, lot in flattish there's past, that you've could M&A talked you environment. just about of billion, of Maybe CapEx with think moving in as thinking parts a little about around

Dominic Macklon

Stephen. framework say Yes, we What on laid consistent out it's AIM we'd the very with Dominic. is CapEx.

several will on parts. going for million pieces. to got on And incremental of be is at Norway. got those project -- term be have will $XXX which project spending higher. of Just that the or the LNG Surmont capital We've see you to that we're then, recap of we're roll And sanctioned, the spending Willow offset adding. the of mostly increases XX% assuming projects and lower off course, the we moving the by, our expect We other so moving

with is line So we really very there at much but key in I laid the think AIM. out the message framework

course, to the addition Of extra there. you do of XX% Surmont have

Operator

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

Douglas Leggate

the gone to has question... with Phil side Although one the dark

Ryan Lance

Doug. man's One opinion,

Douglas Leggate

If make I'd ask stock's almost one to X% question. your comment comment like one I may, this up My is one and morning.

it. gaining And move taking like I congratulations to step. think more market. move is ordinary dividend in on -- that the recognition dividend of see your acknowledging We'd

question my this. that, is With simply Okay.

asked I'd to it in like question very your Permian. performance large One little portfolio thought had a problems a the of quarter. peers I the of earlier some my peers in about differently, ask nonoperated one

difference Is guys your nonoperated reliable that production got that's performance year-over-year. this your part production. large a driven your between any comes nonoperated You performance have operated discernible of growth and from there production

Ryan Lance

Yes.

Doug, thought relative comment, a question So but answer let XXX. growth company S&P on I Lower I'll on resist can't to as Nick the your top to the comment XX. But should exactly with quartile it's and what then happen dividend targeted a we

and about it the to let open sticking Nick up we're and question Permian. yes, I on plan, executing -- our that been that's So in on But can comment plan. your

Nicholas Olds

the QX and mean, nonoperated growth. performance seeing Doug, Bill a were I And performing you're year-over-year. his has question. we this QX at well. think as looking remarks, sequential year, we're X%, Yes, Obviously, operated in portfolio. good that prepared I our are combination Both so X% up to of mentioned

Specifically, well Doug, QX, as component was to as our that a program, in of Permian operated QX large OBO. increase

So and supply a well. look We one, and by framework. well we're operated competitive. as performs by -- I each cost little assets it others, of the our seeing very mean benchmark other in operated increases we ballot. We are bit these at every Bakken within

in you I if our production inventories bit XX generate you X/X look the coming Day, you line, we've in to the from if is But X/X other, of Investor about Analyst operated a competing Basin well. split they're reminder, X%. the X a the the Delaware, As is back Midland of between that when got Permian the of XX% both little full time bottom in about in think And our by basins, to Lower Doug, within the at take Permian. general,

sure We investing that drive ballot right efficiency. the and capital we're to will review make capital every

Operator

the from comes question next with Our Jefferies. Byrne of line Lloyd

Francis Lloyd Byrne

mentioned on And but there. lot comment international our could remarks, but a your I'm it's option you prepared Ryan, you hoping gas further seems strategy. there of like early, numbers, I integration it value by recognize in

help process us the about you have behind there. So future think targets maybe might and thought to any maybe just it

Ryan Lance

volumes I Yes, edition, we're the which there, which that many the elsewhere your moving going German about we're capacity looking I there. decades give volumes we're build places market, the our let move be the can bit opportunity we into into Lloyd. this. yes, can as excited around in to a on the Gate to Netherlands more we is the regas you specific think other can we to have be the Arthur the is details complements some out to But globe and well and try add Port Bill come, in for details market strong Bill -- at to and why a question LNG,

William Bullock

I'm a to put more Yes. happy that. on bit color

we're in how developing And focused supply. to a stair-step originate we've about, fashion with do So this as very talked on market. we we want

making per ] and X to us capacity annum Surmont announce tonnes You've seen [ supporting LNG added our at progress at German strong We of X.X regas Port at at Arthur capacity SPAs of X.X [ million tonnes just X.X We're of Gate. ] regas Qatar that million LNG. of really out leaves dedicated Germany. LNG, that LNG is

strong Port half continuing roughly of importantly, we're to that's X.X, that's of So a and LNG. interest I Arthur. And lot see for demand think

term we're some Europe variety talked, of to diversified into perhaps of and portfolio in links we've As having looking a a Asia, that's at both into also develop FOB sales the facility sales sales mix and that.

the you Europe diversion for to you compare base way Henry European you liquefaction think adding I'm of pleased going the what on think optionality the Germany I of going give shipping we're to Arthur, months I modeling add we've half kind and with tools the regas, -- showed you that. TTF, to That's way it gas Hub just of to be. about your you're have I'm the got that, volumes FID we before making placed. And to that AIM within vignette, so with returns as progress price as X about think capacity any roughly look and into at is, you start the that you into CFO back at And Port on will the think to price, just really that

You Asia. can similar going type do a to analysis

really So very progress yes, we additions here interesting with are share to your view we're our these that and we're the portfolio, making. pleased

Operator

next of Stanley. from McDermott line with comes Our the question Devin Morgan

Devin McDermott

question return. a raise I shareholder want comment the So the earlier and dividend on echo to the ask on

years? strategy part business your been see us to change as on on of look in broader this dividend you're wondering or the update a dividend flow the or buybacks in it's as about out the is was breakdown if of just thinking an you breakeven you incremental few tied increase. I thinking So large target of over payout, shareholder And the change and can good to that. VROC cash context and Surmont, at give on the there's how XX% broader more the Maybe next return dividends increase. dividend the in

Ryan Lance

Yes. No, anything outlined, changed I think extensively don't pretty our in think, meeting. in our I analyst we which last has framework,

should to expect delivered you to our back shareholders. And are in done price over years, our deliver delivering or us what they've our of cash few So of to and are that prices last buying over XX% in And the when be at and said, back. based back call, both cash, is the you us And our shareholders. call, which that's, shares years, flow the our fact, XX% back. mid-cycle done has where then our the mid-XX%, we've of can so our X form the excess cash it's of expect we've where mid-cycle price to a to today X cash gone on in our of least prices been last more

third and when back VROC above additional in shareholders the our are through then the call. mid-cycle cycle construct, to back add price return a prices We'd our really the mid-cycle shares that that dividend So changed. provide like XXX grows buy to of our We S&P construct hasn't quartile, the an time. to with competitive affordable, around some top like to our ordinary we leg introduced reliable over

we year, our like that. the we company served we're of flow to We So pretty it's and to we're that's and half billion, it expect provides well and giving -- sticking as shareholders. back this and cash to of -- close think the $XX construct we that have

point year. it's for So probably starting a not bad next

Operator

of Kumar question line with comes the Mizuho. Our Nitin from next

Nitin Kumar

I talked guess one about else. than improving just I appreciate, But your M&A Ryan, has it higher tune recoveries your and there peers sticking of Permian everybody or with you touched the in in the of XX% theme comments. on of the to out

I'm the or technologies deploying curious, across significantly? rates that deploy Permian Basin. think entire you operate you seeing that You are can improve recovery others

Ryan Lance

as the comment I'll this recovery Yes. of that I or respond let topic, one a guilty lot guess and a rate companies I broad this in this people think specifically. are between think recovery I'd Nick to talk And I about is, make bit, inflation we factor. and of recovery

our I we're you wells, I a And factor to be conflate -- about or unconventionals, have we portfolio. this, a have assets. the the think recovery of light to blocks, more And the when we're the things So sure the really to recovery the about doing can can layers but that within to we careful our have we out specifically we recovery in be careful that Nick maximum everything get we to acreage, these doing get rate. recovery from not of speak bit talk improve that make

Nicholas Olds

Ryan. development focused across wells Ryan of all Thanks, our optimizing XX asset and as Lower projects our very the are recovery our on Yes, teams, in assets. mentioned, of

kind deploying is supply judge look at we're primary of too, through framework think the cost our important, capital, decision we're driving what recovery I'll but X take kind maximize I also recovery and every that's so that part seek we what buckets, looking strategy of of across in and within improving it's at assets. against. We returns-focused that, you our to improvement we

decisions, development at look our bucket. used we first we first, So

the do third that's at how the term. recovery, then when longer reservoir, really, but optimize second more look and one we that's enhanced is oil is And our Secondly, we bucket.

at things one have we the decades and Analyst level. obviously then that Day, activities we of we is Investor Permian, mentioned of rig Permian inventory have the the Now, the this at within that X within current

X-mile X and of speak to can things. of lateral to from the recovery. A lateral. a We inventory reservoir a length, to optimization to a have is improve focus critical. go couple more X a development about on we decisions Well, So length lateral the lot you

You recovery cost to before, of to efficiency we mentioned capital increase by we've you And XX% as X per XX%. the drives from well. a improve our X, supply, go which

doing we're that. So

X-mile got is and XX% As we've to on a laterals those or Permian XX% growth reminder, and well well. is year-to-year greater, X.X miles our X greater, as we're inventory or miles of continuing execute

Midland On item again, using decision of side, Bakken, is in decision development development Basin One sits in interesting the analysis still improved in the allows X doing Basin as the that efficiency. the we seeing Midland are both capital around to heard efficiency is results over I'll do that both that and Delaware us stacking. last performance we and around recovery while this completion example, demonstrated Basin, And optimize well well spacing where recent co-development. capital completion there. that on parent-child as address the bucket. the that improving to work in completion some thing the out last favorable here in maximize minimize the Co-development very well years, as We're an kind recovery design then you've and the as impacts, space. And as the multi-varied recently we've

the pad. And which We're -- and we using we're I'll it inventory We're recovery expected huff-and-puff. Ford, to seen drill to the the that address using We'll compete cost of by analyze competitive increasing success. increase enhanced draw at of upcoming that pilot our done seeing in attention On are can within techniques where I'll to final Ford. we framework. And performance time. reservoir life injection, you also improved focusing it, of to the this recovery enhanced bucket, with recovery, component, Again, edge gas competitive and injectivity in very And seen the these your you expansive on is the late the further on around We've we've response. But and recovery, Eagle oil refrack second many Bakken. X we've kind take ultimate that's And in, well up where component these and this wells. wells, study in something projects kind supply. future. you mainly infill in oil wells continue a XX%, I'll technical our Eagle corresponding then recovery cost then wells don't supply the overall that's we're on optimization, per studies, and to in leave point oil these the

So in from completion to wells, long laterals improve infill improving we're design our assets. recovery to

Operator

next Read Our comes Wells from Fargo. Roger question of the line with

Roger Read

just There up But A you we're lot been call side, of has on been head Alaska. legislative it, there this has I season. and about ask about guess if hit. the I'll don't a noise know little winter more I then into regulatory, -- the to

curious, just there. what's I'm going on and things, Willow So other

Andrew O'Brien

Roger, this is Andy.

I'll take me let legal we'll we give you where the then and update with an yes, with are on a So of bit project. that the one. start

legal side, the the calls, on of talked previous the about on there I So challenging this government's are approval project. lawsuits federal

favorable then see November. little on in rulings preliminary challenge. Again, we and the their agencies satisfied very upcoming said on call, grant the last the the I the this approval. conducted requirements and of BLM with the myself on here, as but I'm ruling a I and to competing expect April all mentioned scope a the full call, happy how address The process, we're the were to legal last in As will ruling repeating

the XX-year have It as to program. at prevent draft and in exploration for is So Department regulations we think we've looking to part the in legal Petroleum future the, or could Willow were you separately, to forward alluding are court protection the concerned question they the those ready don't that XX we're then laid impact we're I of these out previously Interior get Alaska. season. And beyond if confident, of for are expect drafted, National management rules impact NPRA. AIM. But in said, we additional the the proposed impact any Reserve of the And currently Willow, developments November we on our other doesn't rules the September, plan and the rulings as adopted

the bit statute So Interior as the providing Department finish increase recognizes consistent proposed existing with again, -- to make domestic the to feedback oil just of supply. primary the and the NPRA way to is be the reminder, more legal I'll the try rules to with statute. And a purpose of the

that on project. where that's right I are update, So of kind where are wheelhouse. in in mine, we our opened Taking the investor and FID the the back project budget. But drill if of quickly got season. We've kind side. And on as here, firm clauses the Willow, total don't the excellence facility. our Slope, at where we Coast. contract. now, gravel specifically right under guidance a XXth And of we are fully And work is the And already into to described North module just X legal step company then is and over terms today. the preparing we no Gulf new construction we the we contracts is track then progressing X the on on fabrication very of our [indiscernible] capital these successfully our processing well, half risk that's exit. got include the on XXXX factored we're project in type project gave We've and We can schedule of first-of-the-kind and delivering for started sites record first we've scope It's here. of phase our to the back

or lump XX% these exposure future sum issued a rate contracts, for all unit to contracts a Now now we the limited from inflation. have price and have of greater we've today, type

unchanged to that production negotiations, to estimate provided. of first capital contract at continue we we as the billion $X So $X.X previously billion our remains

on the legal on So of the I think that we side update and probably where gives good on you project things. a are

Operator

with Todd from of Ryan line Our next the question comes Piper Sandler.

Ryan Todd

you've portfolio. range on the and years one portfolio on last a Maybe the wide types assets been of busy across of over for you've across Ryan, regions the you, few been

divestiture of of portfolio up. But still the is take now things like timing terms things, long-term and on you more the continue do just some and forward Surmont would that in to portfolio, if or back going and obviously is maybe on terms as -- APLNG increase the came any in management? like we when opportunities competitiveness. there that as you change As increased side there should of look places develop look, opportunistic high-grading of to you Are or line that your to the down you you exposure, a step expect,

Ryan Lance

Yes, show what the we we're we've to put plan. this the years last the you tried pleased in year, we Ryan. as Analyst has earlier really, compelling X over I pretty XX-year think X think to made all the to No, company Meeting extremely with at out efforts an

really, to. the really mix, billion a to less diverse. It's organically a wouldn't it's It's than supply. -- invest investments So and describe great got gotten portfolio barrels, All got $XX lead XX short-, medium- cost like to where a global, of opportunities has in. I longer-cycle -- it's the those

think and we be hold. your the always point, would I So ruthless wouldn't into If plan. We're opportunistic, lot Surmont and the some of to inside think we're we we've significant ROFR to graders ROFR that portfolio looking category. today what is the we've a for describe got high visibility opportunities I which And doesn't of describes portfolio. we're looking fall moving anything into that APLNG compete, that a great out. the got trying

opportunity control, it a and your we you quite to make can plan as know the make didn't So you ultimately, we better. asset our partners better that And have I change really under our you and one XX-year that great never if an said, makes a it you we anticipate, get know know well. acquire when that

to our framework. And know way always people, tend find better, better, is has to these think -- and does company. intact. is XX-year we're our that plan to remind looking XX-year never that make is I hurdle quite to be quite meet things see high does It got We to because out plan that the but very might So a make asset we it materialize, financial pretty opportunistic. framework the when compelling, make inside we it a clear just you which

Operator

Scotiabank. the of from comes line question next Our Cheng with Paul

Paul Cheng

you Can me? hear

Ryan Lance

sure Paul. we can, Yes,

Paul Cheng

longer. will X have tested the Is years? the lengthen over -- that, some that then what I If or much And at it experiment economy do OBO, you you of reach miles Permian. in it that, guys miles? the you limit also your could that than average done Permian it of several length would longer X that how it Is have may and that Do I X than guys the What's operation. And into think have improve you this longer now? can get improve can you miles? any contributor go scale back point, result Is or imagine you because your primary when less one think lateral next whether you you be?

Ryan Lance

attacking Nick bunch earlier Thanks, let we're how Nick lateral on I described around think and that. We're efficiency not, a the an we're of Yes. working more that in of of is yes, can on kind Paul. weigh the and the length some one spacing completion on. I just things question stacking.

deep knowledge experience the Permian. think we But out of we're that. those Ford I it, sure all that and can of on at maximizing things weigh efficiency all the that the the all to in recovery you're Nick I trying cost Eagle we're the those the depending using on different maximizing So getting specifically of on and and it's have supply, lengths, lateral in basins or they're attack, that of minimizing where we're X to in Bakken, and make let

Nicholas Olds

Yes, Paul.

again, long assets. deep and broad, the lateral Just inventory to we've reiterate, got across significant a

and and -- seeing laterals XX% are the see well greater program, very X.X both coming as XXXX. previously, more inventory miles X-mile mentioned from our is or the to XX% as greater, we're of Permian continue out the laterals, Just good we XXXX X-mile and than X results and of miles, more

we in space. continue that to see So increases

and And the look opportunities. allow core this to just land Ryan the Our in X-mile just laterals not standpoint as some some standpoint, is But Permian. to mentioned finished a teams at future. only there drill up BD Bakken, us from a trades the continue in in we

years go, long with I'll we're the back, well. step over related of to the that are laterals couple all seeing about just last encouraged we're assets. The We're very portfolio X So X-mile how that can you thing had increasing talked laterals of across far the the performing you results.

make contribution to entire length. sure want you that get across lateral You

mentioned a trade-off. miles, think would lateral you X lengths, going we longer I there's about think As further

development also, also the and well, because through improve drilling of risk, actually cost drilling, potentially you lens have of is drive You look to in can supply. oddly, And then operational future down the but risk operational also, workovers. that

in looking so laterals, long you that I fact with the deep very well, earlier. leave performed laterals mentioned the that inventory as we're at extremely I'll but got And future, the X-mile and we've of a

Operator

from of UBS. Josh comes the Silverstein Our line next with question

Joshua Silverstein

the of to debt versus year. shareholder the return want the you curious was debt this appreciate cash, that year added how before comments the there. capital for additional on with the to next pay or think down returns or I might I Surmont transaction, thoughts from build Ryan,

Ryan Lance

year think process moving we're I Yes, and we that those think as all next of planning pieces. kind about in

it like of where out this kind the year similar of we XX I to last were of beginning prices coming to the So XXXX. say coming at seconds, end at into looks are me commodity very

return us and might have that. do gets of we our that we think price for look as few next to XXXX. the off comes the pay That to total to large framework kind go a Bill adding have debt, off address commodity it down sheet We'll to the the to are at well. we a debt balance what $XX to in can price, plan, billion think original pretty can as up forward. And I cash cycle I commodity we target very as And a due of years. if more see just gross had continue pay So over is around starting that, and we as prices good point

all quarter So over as year. in we each of of X think course go do as play are we we those about, I the into next think what

Operator

with comes line Our next Research. question Sam the of from Wolfe Margolin

Sam Margolin

actions to to there what material. strategic or for to calls prior about assets it's the a will for ask aftermath. you, you it's and large come surrendered to creditors, specifically, get And returned might aren't because like but I claim, might is in be and outcome it guess, a the wanted a that I Venezuela it in guess where process. I from advancing. And be some the process good It's ask require the seems an and path forward on I maybe update up scenario want the

Timothy Leach

a Yes. They with over a through billion, still process Sure, Andrew. have our money billion. Venezuelans considerable the of $X right on owe on us also It's claims, $X.X own $X.X both full approaching some, billion. now. amount Tim. we're judgment the ICC, the our But They in yes, they or ICSID ICC and

pretty aggressively. So we're that pursuing

progress other I free has lifting closely. Clearly, what watching results waiting the the U.S. not the sanctions provided think a the of do some, for on end election. of fair all, on if we're government of here, Venezuelans and the

that process, So But doing Venezuelans money to make on. an long of can this bit everything that of get committed sure And pretty out us. opening. we're create a focused we but we're may to what a our they is that's owe we

Operator

Our next line Securities. question Truist with Dingmann the of comes from Neal

Neal Dingmann

you're cycle there just a My question, And a just the you XX-year plan. I'm comments view you valuations your bit, recent about earlier of of deals. needing also preference assets? some public when how on appreciate I is in why seeing get the for, on on wondering, M&A assets shorter little longer-term this just curious specifically, things any

Ryan Lance

we global, way like is We we it, certainly, a at Neal, it like be portfolio. Well, like the balanced. diverse look to a we

company think we're ongoing sitting rich, capital mostly into framework durable, of asset sure our that the sure for make against pretty long fits and inventory deep, on it on compete around an of that, any life it a basis the focused the make and I cost what's a you in company, today. lot supply bring that to

long than for a cycle ascribe period in have transactions. high I Clearly, really it's of good Maybe they are deals that assets. pretty companies assets. mid-cycle bought. we're have said, all quite how would a and know they're time, to recent that's should probably good good of pretty with on comment part companies and the are that were, been bar. with Those Transactions as I higher guess. them good We've frothy don't So probably I the price them. watched I at a were them, that's, to familiar done. Those say. a little we

Operator

of next comes line with Our from Scott question Capital the RBC Hanold Markets.

Scott Hanold

consolidation creates impact I of and Permian peers that kind positioning. competitiveness larger was comps of development just the curious, does in the

kind X% if and growth kind as look Specifically, capacity, at midstream on your decade of -- CAGR over forward move plus? next services you of you the

Ryan Lance

large side already have it in going a we see there. service advantage we There's huge a been Basin. periods all, by so it. of of think been, don't we around. them Scott. don't whipsawing they link it's kind program big basin in like the there that's all those and you've current of accommodating that, business of going to we know And going There's the They being one the those certain to that -- any categories. on trend certain the activity of got be operators And been exposure a a want large, to there And services a Permian work issue the that for to forward. The I to are has get tightness of I issue think us know has are the at for. be is, going some you operators and There's the the the seems out service because the lot to to questions. of attention in Permian, that they are so customers the work those tend continue. durable. us, don't program No they see then got know it's companies with and you you're consolidation not

So more probably needs to happen.

Operator

the Energy question line Kevin Our Pickering Partners. MacCurdy from comes of with next

Unknown Analyst

XX. you are you seeing your I you without a thoughts current good looking that current this adding, on said but the others time adding the to service production at if prices I know activity and prices is can in can and grow wonder Lower commodity add. provide

thoughts most So recent on I hear to that. your just want

Ryan Lance

that think of the Kevin. now, be through will I right Well, going part process we're

we're but think the trying to point I coming seeing efficiencies seeing what assets. think we're we're like, looks XXXX our is, growth about our and out of starting

point your So to as to next about make commodity capital price then place just and and the will a think think let's like that we resulting we go capability or and service says, flat like. about started these a into scope look drivers other about we'll year decision what the scope,

Operator

from will Mariani question MKM. come with of line last the ROTH Our Leo

Leo Mariani

seeing on if you wondered -- terms what trends. of XX of in you're Lower kind I just could service cost comment

I of months but may seeing commodities handful give have kind expectations of there that us edge your just what that be kind you're now think lot costs ago there kind was Maybe a of on of leading recovered. of a costs. falling, perspective of

Dominic Macklon

it's Leo, Yes. Dominic.

quarter, we're seeing as talked the areas in certainly some So about last of we Lower deflation of XX.

we do of in is would recently guidance. I company some as and seen at our this you market part oil thought think of capital lower end reflected our think, say through, last was being the year, I is capital but previous. right year alluding quarter, is coming trend the this balanced. over gas our of prices kind strengthened. the that Ryan that's is our digits that terms process of average spend we than quarter and But year, approach finally we out expect have that's overall kind this inflation to. the in deflation still capital look of this and in there, is We that if to in all the -- We now in see do mid-single something

trend we our capital will looking year, Surmont. that into I year. of as think line AIM, what expectations interest plus in So what very terms next in we think, course, very said much I with at our hard laid additional earlier, we're in is, how But next overall out of

So closely, a thinking. you that that's just sense of something how that gives we're we're but watching good

So...

Operator

this gentlemen. Thank at call. and today's conference participating. questions Thank further no you, This concludes for have We time. you ladies

now may disconnect. You

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