COP - Earnings call transcript Q1 2024

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Operator

Welcome to the First Quarter 2024 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

Thank you, Liz, and welcome, everyone, to our First Quarter 2024 Earnings Conference Call.

Bullock, we Ryan members Tim of Johnson, O'Brien, Operations. Lance, to President CEO; XX; today, leadership the Leach, Lower Senior call and of Nick the including President Vice Olds, Strategy, Senior Global team, Chairman Bill and Vice the President have Officer; Kirk Commercial in several President ConocoPhillips' Adviser Chief of On Financial Vice Sustainability Andy Technology; Executive and and Vice CEO; Executive

it with quick your opening kick which will team will for after Bill available the questions. and Ryan off reminders. remarks, be few A

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

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

third, financial We Reconciliations our be in will per today's measures. release measure taking caller. move one will to question be the And course, some reference on can to corresponding GAAP to Q&A, found of make and we when we non-GAAP nearest website.

turn over So I will it with to Ryan. that,

Ryan Lance

Thanks, plan. earnings call. portfolio projects. was Phil, joining solid everyone to across another execution of Starting strategic conference with quarter focused our on It quarter first our and the thank our you XXXX for international

subsea subsea fourth continue ramp the Norway. fourth Surmont over XX% following Norway facility, to X We central tiebacks expect start-up XB and start versus second Montney, reached the of up Pad processing at the production a new up in in month. the quarter. record XXX level production Bay And In next at to Canada leading in growth China in Canada, in Bohai to tieback we the

other projects. our to Shifting

to Willow a winter We plan. is successful this according going first at major are and module wrapping fabrication week season construction up

out well. also build Port our projects Qatar and our LNG progressing Arthur we portfolio, As are

Lower the Moving XX. to

in and Our primary continue completions. to capital efficiency we efficient focus as improve drilling on remains growth

capital, single-digit announced low distribute activity XX-XX least distributions billion expect capital to track shareholders a For XXXX. with to lower buybacks quarter, versus XXXX, per production this of remain deliver spending split $X and levels of flat to growth we of $X.XX still we return consistent And for on at to at the second our between with year. year. guidance cash share the for a VROC we Shifting

wrap year. up, start the To was a it to solid

deep, on year guidance in are that laid the We our growth anticipates which well-balanced year, Analyst plan. portfolio. invest discussed as global with XX-year full in back and and flows last diverse our out we course a the we which drive we will And asset track February, across our to distributions continue durable in and our base, Investor of cash Meeting shareholder over significant

guidance Now performance first XXXX let me the over our and cover more to quarter detail. to turn Bill call in

William Bullock

Ford and the we in averaged X,XXX,XXX XXX,XXX per of share first X% the Thanks, equivalent per XX,XXX production per barrels oil equivalent earnings. XX XXX,XXX quarter, underlying generated Eagle $X.XX barrels in the day representing Permian, year-over-year. Ryan. Lower in adjusted growth oil the with In We of Bakken. X,XXX,XXX in produced day,

headwind XX,XXX the barrel fourth higher slightly provided call. on barrel was per impacted Now guidance from by a the Lower X% and production per XX,XXX day this XX than included weather, day about which quarter

As underlying was X% a Lower XX year-over-year. result, roughly growth

oil portfolio. this of our year-over-year, and effects, Alaska the Surmont underlying roughly company, diversified the of rest excluding the International highlights equivalent the X% averaged representing per for growth day, global production benefit Now XXX,XXX really barrels of acquisition

cash to flows. Moving

of dividends and We liquid partially million, in we assets. from investments. billion by returned cash longer-term And and and billion, this offset $X.X quarter, in APLNG was non-core distributions were proceeds CFO $XXX expenditures Capital ended ordinary million. of in quarter Debt which retirement quarter the payments included and billion short-term $XXX were disposition in billion. was million the buybacks of billion First $X.X $XXX shareholders VROC $X.X investments of $X.X $X.X $X.X payments. including to million billion with and $XXX

also production We've the X.XX X% day full X.XX oil of million to a year in second guidance. million And underlying outlook growth. which barrels for X% barrels underlying to of our quarter, X.XX we million expect similar the to X.XX maintained range to to day, translates X% a to growth. of be million year-over-year production to equivalent represents equivalent, Turning which X% per

full forecast includes and for quarter. quarter, last day. barrels in XX,XXX Norway is we call, second maintenance turnarounds earnings Qatar every day by mentioned Surmont. barrels X-year on the the heavy day Alaska, at and per XX,XXX was third third once turnaround year as This turnaround our XX,XXX primarily per the in quarter And Our driven per barrels of the

For weight CapEx, greater the the a our remains billion $XX.X $XX to full year. half year to with billion guidance first of

the at in Now entirely half the million last $XXX LNG as are Port this almost Arthur is on that year, we to discussed contributions due of of first equity the the call.

the APLNG, change with of expect For $XXX year distributions to quarter of full million guidance second we in no billion. $X.X

year the we're outflow million working items $XXX for a quarter, related second to the are timing and tax unchanged. All other and capital Norway. finally, forecasting U.S. guidance in full payments And

shareholder to initiatives. our we're on committed our to plan strategic remain focused competitive continue executing deliver highly we for on staying XXXX distributions. our So and We on

concludes Q&A. back That I'll prepared our operator over now to to the remarks. start it the turn

Operator

Our of comes Devin from McDermott the [Operator line Morgan from question Stanley. Instructions] first

Devin McDermott

ask to I wanted Alaska. about

look project. wondering you on detail first little how bit plan? and completed milestones are key went on a ahead, what more the was could the of you was focused project. You the us noted it next give versus winter, some And that the construction past winter should completing this are the as if first we be completed what Willow for just season we for I

Kirk Johnson

Kirk. is Yes. this Devin,

of future we've constructed winter for pipelines addition, we all Certainly, here this operations for to here to gravel we're of here acres schedule Willow on able to North closing be week our over of a and project winter progress first of season and actively here were fabrication gravel in mobilize had XX which Slope execution miles first we that pads start successfully expecting the Slope actually, We workers out X,XXX So the this continued to able well spring. And has this module this strong successfully ready center. year. XX where transport successfully this the facilities. the were season. on major Willow out modules were pads, build really the to planned on winter is to miles X gravel road, North we to And of midyear, construction those really here

us to expect in We capital and keep total that $X.X of estimate first on XXXX still this as the our confidence the to progress here be production being unchanged. range for billion making to year gives remaining we're here

billion And on just still again, not But that's to continue that in the $X module offsite the we construction and really $X.X underpinned we're our North some on to that billion we're scope. progress year, on our by progress contractual here this Slope both fabrication. making range. So here strong make

here our by we we could XX% our of We've landed have total project upwards of X/X scope year-end. an be of that to and contractor expectation date, scope total here

up production remainder for follow-on certainly fabrication continue the forward facilities, look to year, then ramp procurement construction going the we prepare continue both we'll off-site we're obviously, of and to for the here winter as and so for And module season.

the year. progress see great in and us it's really a to the position. teams progress and are great these here Willow here projects again putting project lot again, this We year the they on So Alaska, in yet this do strong a making

Operator

question line Our comes of Neil next from Mehta with Goldman the Sachs.

Neil Mehta

spend billion. you about to time notable some least $X about wanted and return is of I it the in at talking release talked capital,

have framework you what capital, thinking a sheet terrific been Oil that early been of return volatile, the have number. have raise your capacity in for gas the just about weak, but certainly, So the to balance level prices it have and is year. right of prices

on So that. your perspective I'd love

Ryan Lance

good in No, we the we're to with Yes. want the year. think we X divestiture. we Thanks, believe Look, that I early described Neil. day in shape

a We look is that price flow of of mid-cycle. that the quarter above similar well today we've you experiencing we're to our what through percentage think recognize I this our done the year, past. years reasonable at cash first in

going should XX% above our investors well our of them. flow to expect back cash So

monitoring sort of We're just in all the and kind WTI natural in not of volatility, mentioned, Neil, Brent as it's again, and gas well. or it's NGL, markers, markers, LNG as you the

the we we've it's a last see a prices to some to So of want can done of and the they return to shareholders number get back the of you to some where year flow years. see cash our our fair end where function percentage expect durability like over just to

Operator

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

Francis Lloyd Byrne

how just Ryan, playing of the can forward, kind And target and Permian how you levels on that that but and some looking really you integrating been out? of guys those just have? about You differentials. just you're any thinking have strategically see gas proactive some gas maybe you comment in of

Ryan Lance

-- can there Bill's can information some got I Lloyd. he Thanks, Yes. that share.

on right. We've we complement are even XX strategy we're some of move about open gas build arms and around out to side, the expose LNG thinking this I of to an Lower the the doing number last been think you're what years to that to ourselves for trying commercial the the that today.

bit little to that. let can Bill I more So a color add

William Bullock

in the about past, we capacity on supportive markets. from Yes, -- got capacity sure. Gulf. We've capacity we of transport so Coast. talked shipped We've have multiple the transport to the to We're Lloyd, very as Basin. we offtake Permian got West

really upcoming of we for Hub prices sizable don't of percentage location as realizations firm what pricing capacity fact, in-basin commercial that's also of some good reasons. disclose show. of pricing. a We a on our first volume Matterhorn think what to company's each we the percentage to is capture to a the exposed is way have month In But about pipeline, Henry do moves but and portion

That has pricing pricing, start obviously, into with First negative in end was got second some as quarter, we seeing realization. so quarter about than of the And we now Basin quarter. transitory a position. first Permian the good quarter, and fourth a the go towards issues XX% little bit in go were higher gas you're the right

are to to out transitory expecting these year. realization to levels. year with this lot return certainly I to we the in particularly takeaway think everyone that low, of of volatility we see a is capacity, quarter the We that So normal come more the as back expect but second be expect

a very And as got marketing you organization. we've sophisticated know, gas

several We multiples production. moving are of equity our

Permian, So for access got able primarily be driven to we've don't to assurance to the And flow is competitive got routinely we've mix, because our insurance we to important the oil. continue really and market want return that by company, we is pricing. very and flow good profiles flare, strong in produce

Operator

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

Scott Hanold

I'd is a through kind like the you but can of you a because to at single-digit of color see and XQ progressing take see nice year? steady how kind just year? this rise some down rest through a look weather, of give then us on bit Obviously, XX activity. Lower the in that that the slow of Should XQ the course bounce of we back the little

Nicholas Olds

Maybe take Nick, in of downtime, Yes. XX, noted weather his there, the the as through of remarks. Scott. I'll prepared Lower This -- in Bill Permian referenced see update we as what kind had you you headwinds we is

at have have we there. weather, about -- year-over-year of growth look X% we we that, you would exclude As

in operational frac the the In at gap took Ford second half addition, of Eagle we XXXX. remember,

and mention where that laterals on out X-mile the We've online. some is with there Permian, may in second our efficient on some we'll I'd QX more on of because half to our first and just weighted Permian So kind larger driving coming operations of impact development focused pad period. Delaware the pivot We of QX really very activity time online rigs crews. got of the up for quarter-to-quarter. then we half projects second we've wells towards we're on there. got Midland and focused frac half Overall, the of plan also flat the the coming the out bump had in Basin, oil some

for just, teams on and focused of, the combination are Scott, simul-frac Again, good drilling example, from and completions. again, We fracs. capital efficiency, both laser remote see on results the

rigs for the side, we there several then we've see times, So And think to intelligence the mentioned side XX/X. I on real-time efficiency drilling group continue a operating got the on improvements drilling we've out monitoring those fracs.

So as that's well. promise really seeing

that the on roll So seeing we're efficiency through. front,

we'll of the Ford second for weather also frac year If of app, got production, the as accounting progressively you Midland kind being QX, barrels we've in as taking look the low larger the production coming mentioned account some day and back on look And point projects had the far higher equivalent in again, half at the per that of on the you impact Eagle XQ XX,XXX around Bill QX. pad in QX, kind see of for year Basin. can

All that X% plan trajectory as in, we growth talked digits to single was laid range. low we before, So out increasingly on production. X% favorable the that about in of

Operator

Our Jiang with of the line Barclays. Betty next from question comes

Wei Jiang

Nick, you you for because set gains efficiency follow I Permian up guys that well on really and up the are want the me seeing. to that then

translated versus into operators what efficiencies just laterals. in efficiency you plan plan? are guys longer and corporate significant love how to that's other capital basin and e-fracs seeing from more the hearing the color I from importantly, relative that are get you're the would and how seeing getting tracking We that's to

Nicholas Olds

good. Well, Yes.

some on the focused our about teams as a efficiency the lateral on the drilling. Let's long spreads start I laterals. previously on go and on little forward. are longer development operating frac of talked Again, very we

a if or you of inventory, greater. for we miles are and or at As the got XX% laterals X X.X phone, the our XX% look the reminder miles on group greater, Permian

you X.X online And laterals laterals. specifically as wells at of some look mentioned of got or X-mile longer coming half this we've I again, XXXX, of got -- those XX% second XX% the about or and year. greater If the in we before, are miles

on lateral XX% a move when We X-mile see to up to supply you lateral. X-mile improvement of a that from XX% to cost

continue pumping we're focus on XXXX seeing from is to to to And months, that and just does line capital We've release, look that day. cost specifically day, translate XX% drilling stages some seen improvement rig efficiency drilling over your in we've We So X see the very staying side. the bottom pumping as hours And supply. so side, Midland more we've had from there, on success per of had out improvements we it feet Maybe record there. the improved the on more That last lowering wells. spud the favorable Basin. and day, more those recent where therefore, performance we to hours in translates XXXX. per XX% efficiency all to per internal

encouraging very all fronts. it's So across

Operator

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

Roger Read

on LNG Maybe, market. the get your Ryan, thoughts just updated global

expanding thinking pretty projects over You've obviously got X here, it years to let's X it say, you're a good some the you're footprint, these just as about how next of newer come online?

Ryan Lance

markets. a I'll in to as Roger. in and Andy bit that know shot a we But a Yes. ago Thanks, earlier, take LNG the maybe to and let exposure to step grow years back said few well. chime think wanted continue position. certainly I as little We I our

side the that. We to of intent all and in Australia, in business have grow in our America, North strategic We try have in own being and America ships being know here as we quite here regas -- facets really Qatar, and technology. elsewhere in North it, well. potential in well, being participating continue And side having do production in the the to the a it's to liquefaction

a that that rate LNG grow make at as integrated to move decent still lower make prices we're see you and trying business today, money of it's some well the of Hub sort as long-term interested So Asia the that of a to Europe you arb Henry open to is in. return and even to business

in let specifics I well. on as So a few can Andy more chime

Andrew O'Brien

the Yes. Thanks, and thanks, Ryan, question. Roger, for

completely that of I bit a our think is is understood. this don't think business I

around be put the So of of it might just it. I sort helpful details if some

increased in then you more APLNG. on side X our resource As ownership said, projects. expansion way to in participated if equity all also the XXXX, taking And the we've with go we back Ryan Qatari the

think on the specifically I your more commercial where you question And were going with from really perspective.

We've on on of offtake Mexico for Phase the X X.X X. interest equity LNG FID MTPA pending offtake of a Saguaro XXXX offtake X MTPA we've Gulf X.X also the secured West of and XX% Coast, with Arthur, secured from and have we years one that there. So is MTPA Coast ECA in Port and of starting from also

offtake our is X.X at MTPA in in, North FID all America Saguaro. about So the pending

the German regas Europe. secured This at includes in now to X.X capacity X.X side things, switching MTPA LNG. MTPA of Then of we have the

that support X and to up Netherlands. Now gate MTPA capacity of will in at with LNG our the X.X Qatar SPAs also have of we regas the terminal

regas good a think will to to of benefits our in to term, longer over near XX continuing So scale allow on the full the across the offtake organization. achieve has MTPA focus And our term, XX This capacity range ladder think over the maybe about. about of opportunities. us to is

is I liquefaction capital. We to do want an have on don't offtake be take feel clear, that ambition. to additional this we

competitive we're we now. and the mind that's But offtake specifics us. where that's for So needless into don't reasons, of get of actually something developing to front for regas say, right

sort So of that hopefully, LNG lot that but detail, the up on helps moving of on, everyone frame the a going have know we of business. sort parts just was I

Operator

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

Nitin Kumar

also Ryan, been linking you report that notes news of potential of Citgo saying interest to part refining on in you're saying sale considering there's there a articles bid LNG. some the your the some optimization? ask on to and equity assets, on portfolio the them. was evolving to the And a opportunities transactions. you of maybe few comment But as there and you outlook, are you portfolio macroeconomic I'm not going today can at comment specific look that for

Ryan Lance

the Nitin. we're now that a that we're in Look, on first, say, creditor I watching Yes. process. Thanks, Citgo, process.

Venezuelans. the bit own quite of we by money So a

This trying not with credit become the what's or have company Venezuelan refining that an refining major -- portfolio. protect against I'm pretty the watching the we're way that we and -- trying not to in closely. to our integrated government. the is process we're So Look,

following watching that us owe process against of the get we're the So we're money obviously assets. Look, and the optimizing pretty for judgments to they that Venezuelan that's but portfolio. expropriation for the the we our have government that closely, that

call, the Andy of last APLNG in couple mentioned think I of acquisition the years ago. some interest a

secured We've interest year. at the Surmont in last here full the

side, the looking to opportunities time, opportunities X are along And that came that the the about we right of last they compete add to right at we're the are and cost we portfolio our So place and years portfolio. in the at over those supply great the thresholds. disposition don't We make at always assets the sold couple where think better. company of

Then they the that We that out about improve major constantly. we're of large improve a We just need of to team move portfolio any inside just or that company. course don't and we knows do company. that have business the disposition to normal programs the do the as thinking

and With regard the that. equity look we've to taking inbounds we're the Port Arthur, forward. some on interest a understand that have, as what's right look, going we at Trying to for had company

Andy -- the launch owner don't wanted As the Port we We not in an in to to need we're equity X. necessarily project last Arthur these things. in look, be mentioned question, Phase

married So opportunity we along. comes we're not that. the did it, if But right to

we're market in and opportunities So that and things we the market, company think all. better. continue we the day. every And those to at the trading look market at the make looking we're doing at in We're

Operator

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

Paul Cheng

that. sectors, one on AI and word that But conference heard the best improve will there's a is just services their they in haven't of companies productivities. we up the of talk using revenue their because but a the oil EUR talking how well be interest believe largest in much other their lot product AI producer many call, will about about the

the some the tell or dramatically and you to actually is always X is edge being productivities is really cutting guys or your going you at happen. this or or in AI aspects to next or X will point, that help or years, well on trying term, EUR X within improve think that the You improve X us much shale. maybe it those longer it openly optimistic is you Can the then years

Ryan Lance

AI think around in Yes. Thanks, well. industry, to going is Paul. a Look, the to -- things be revolutionize lot is of other industries world going our I as

date, about else I the what on the previous in I response our to things our operating the what conference space said a call. some improve Nick of of improve think company, we're comment talked we're digital the with question, efficiency. some doing automation somebody on trying can't on their his and to

business, to to I pace. I think goes it's things think its learning like have going an on the it and curve impact

our And think going -- deep this we the Look, help these curve. understand as digitized curve learning impact. learning to it get improve if of a application think I and company can machine an about and learning optimize to is have of our and that all it acceleration I

the which company. places. pace. office get a company. side operating and whole the and of of across more It's get it's sort And the back as can So and It's the the other better a it technical efficient and optimize we the company, at pace but it's cuts not just

visual The combine this learning world. to data some enterprise a challenge the a in going ConocoPhillips, lot around get of have to machine semi retail data, all that where and you lot you data, the have of large do enterprise together space of a be like that you the deep to this into enterprises is lot see space of to learning machine How an of efficiency. out and getting the

to So company yes, get got in of this everybody us doing it's going what better. in to make to It's We kind improve we're space. going embracing us. the AI

Operator

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

Ryan Todd

side others be and LNG of you compliance the within announced projects. or Qatar signs development in Field Maybe portfolio on the seen supply in of LNG on that Is global there -- earlier, of Is commercial work then that appetite still those there's are of signs, and out more LNG type LNG North you follow up of add building interested LNG to And seeing trends about at seeing some inflation things. more portfolio for you'd West. What on inflation? about liquefaction you from some across conversations the expansion your terms in or you the thing ongoing of just kind some still supply-side your another talked the cost portfolio? side, of marketing now clearly to on as right are the cost we've look the in of

Ryan Lance

Yes. Thanks, Ryan.

I our outlined think in that million and Andy you to volumes and that a talked up tons it million sort XX Andy doesn't kind to level. ambition of add about, the of reach hit XX

the So do we have America is a liquefaction good make the spots with great an there's the and right It's ambition better Coast opportunities. to grow West on spot, do. if some having on right more there. of of in want Gulf We out about North certainly, that Coast, the fees. It's the the see this we're projects kinds both about we space? Absolutely, some to and we opportunity sure best

We'll in North out and of And expansions relationship Field. down of strong in trains what do expanding to terms have our our out relationships with they to their interest NFS the make I road. and we've when a are want put interested with they any think and decision strong. we're NFE But when where Qatar, is future that a on see competitive, to it participation the and the are couple of Qatar certainly there in if more couple comes landed there, demonstrated we've they susceptible

Port of I think you're going well. seeing is pretty of those Arthur -- execution in the we're some areas,

that certainly We're competitive filling what happening in pretty the any company. may and vision the have the spend or inflation we getting with for future strategic terms of we're liquefaction long-term come a portfolio, in have the into but have there concerns it. comfortable market don't these they're We and projects watch about or because they're that we what's

Operator

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

Neal Dingmann

My question is XX Lower on realized -- marketing prices. around your associated

done all you've little accepted any know marketing on the X of can I they of make this? improve wellhead. a maybe to remain sort I'm you Slide versus on you and the Specifically, your changes pressured. this, wondering, are bought side since you Permian to bit Concho that stabilize just materially continue just assets differentials what course, suggest at there

that to do I'm improvements side even there -- potentially further even wondering, So just you see the the realizations. or could are more on marketing improvement things on

William Bullock

Yes, Neal, this is Bill.

talked looking portfolio. to Gulf we I for talked we constantly the Matterhorn, have ways additional of so capacity takeaway West on and we about, that offtake in capacity and about, Coast both Coast, optimizing we're As interested are like

is magnitude commercial orders on We're of Our in the production. market daily. organization doing that

So we volumes really and are rates a good have are where sense going. of what moving

think additional takeaway you're that's And out as getting margins. so to really on down Permian. going I that, come that And to the of coming at as looking improvement And we've capacity outages into had Waha Paso there El putting of a and gone maintenance and with that's the of second pipelines some pressure quarter, couple going we've couple on a other on pricing.

this quarter. clear through as here through I we think everybody will the has been That go likely system seeing that.

the the more about at Henry additional going I online. XX% than towards third a return capacity with normal coming capture until you Matterhorn get for that see At expect point our quarter to takeaway of portfolio. across doesn't going more would differentials, that you're you're time, come Hub real relief of But portfolio here and to see in

you're you're think got where matters built type until in I point So thing additional seeing it's in at time excellent our given capabilities. important assurance that a the transitory here, commercial and flow is constrained pipeline a and we've flow the you get again, capacity thing so basin, think that I assurance

Operator

with question Brackett Bernstein. comes next from Our Bob

Bob Brackett

is pace. under structure, control wasn't some the I different the of you it XXX. about pads? And mentioned about you at And now Surmont early pad the you technology, remarks, that How prepared Can the operating old older what new seeing the talk eager clearly pad? you that results? new partner In recall technologically in capital, the than are new the

Kirk Johnson

on XXX of year by having Certainly, our And is on Kirk. our course, past you've this I'll of performance this and the -- we then that's important heard saying this achieved in ramp started in started has on first, just a XXX we we us and that as is first to new X oil up. have been really third quarter for XXX, operational been that that the year. have first in brought just And when And seeing strong, we earlier normalize and Bob, coming that December. of really XX% we from that Yes, start out interest continue probably remaining up through the Pad pad. asset. before, that having come expect December really seen we've first especially steady, we that grow, to turnaround start decline, through to in first strong quarter. acquisition MBOE, Production here offset quarter for and

base really prospects of lot liners, with heard us in the drilling you've It's a we've XX pad we of a new fact intend done infill spent months, performing well. time pad and in efficiencies opportunities We've our past, XX new we've continue as the online. Bob, longer our that that against year. expectations. a around about new have The technologies we the spoken bring find every to decline. we laterals mitigating just and we field add And about every about as as lot here work, team of number to experimented also to of from future to a

pleased it. But hear control to certainly, with front. in is and the continue expect up the is this to future, grow of this our more XXX on to in So just having really coming strong, here from and Pad asset ability how us shaping

Operator

line Alastair of Syme the question Our Citi. comes with next from

Alastair Syme

be Eagle on Can that any Permian just really again must lower prices the I question I'm capital I near-term the thinking because sure here and program? understand gas surely near-term whether cash prices to the flow. the I'm making both not of Ford impacting you're given changes low your to come back

Ryan Lance

we're It's business. the driven of capital any Yes, the all by making side Yes. liquid allocation also, not decisions.

a need take I of think, that going as capacity out Bill and Paso They've the get prices articulated, to we maintenance back some the because bit in on we takeaway we to more Permian Waha pipeline. advantaged a and activities Coast. can been a as up West El of turnaround that bit we're well have volumes the

Waha happening So a that basin prices. there's impacting dynamic the in is

pretty we've so to flare is go important, said, made you getting as gas, flare routinely Bill don't we're So commitment. that gas your because again, not evacuating going

of really with commercial really, we get these can know single is after we takeaway having then where time the team, that a we're important price flexibility the every in premium and having So periods day. and your

Operator

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

Kevin MacCurdy

to the gap timing? wanted is had first ask remember trajectory. on And at structural capital capital bridge there guided that could Can this you Or you $X.X first quarter of the just quarter, soft is for lower I If I to carry over correctly, anything in of the billion CapEx, forward? that for lower $X came billion. you result us? but

Andrew O'Brien

Yes, Andy. a I is take simple can This that It's pretty question. answer.

capital slightly you of Willow than first at the some result we was shifting guidance. April. our in a That came $X.X quarter, which As less billion underspend for said, into the slight from was quarter

with So expectations. that if came in accordance you exclude our in timing, capital spend our

second PA the as LNG than Now the quarter as the first look Arthur to than you then capital of expected driven capital expected to we half of due slightly primarily Willow by that look the go into And to timing. be off first half, year, ahead higher second rolls in to the and the million as half spend to be Port the equity the quarter, you forward project financing. is second capital $XXX than LNG is lower

Operator

line from ROTH Mariani question Leo Our of next the MKM. with comes

Leo Mariani

frac trickling quarters. hoping the you you the the bit, volumes Eagle that which quarter over? to kind speak was volumes. activity seeing we the I of cadence? impacted those I roll of a growth holiday we your in the couple they've And as little is should in had bit have normal I could of into been a expected I trajectory you more know year? know Ford a guess volumes of more here. second last and half kind start of Do kind second down of the of

Nicholas Olds

after impacted Leo, online XQ the quarter. frac we impacted that also because the half online second of the last as we just coming for year in has wells came this the frac crew, again, Yes, this take first half of XXXX, second that group, just that mentioned quarter gap, did of the kind reinstated you of

in out the fracs that XQ. the the there. we drilling technologies we side you because seeing going we're see different just to that we're efficiency of versus frac So not Again, that apply operating took gap only strong the hit until as

thing. good a that's So

beyond, and X wells ahead, we to Looking the online frac XQ see to higher bring previous from just expect as gap. of that and we those production quarters had reinstate

range. So single X% this that to growth with the we is all X% is in line with that digits out. laid in our low consistent that's full year production guidance Again, and

Operator

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

may now disconnect. You

ConocoPhillips (COP) 2 May 242024 Q1 Earnings call transcript