WLL - Earnings call transcript Q3 2017 | Chord Energy Corporation

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Operator

Good morning. My name is Keith, and I will be your conference facilitator today. Welcome, everyone, to the Whiting Petroleum Corporation Third Quarter 2017 Financial and Operating Results Conference Call. The call will be limited to one hour, including Q&A. All lines have been placed on mute to prevent any background noise. there a remarks, period. speakers' the will question-and-answer be After is Please event recorded. note this being turn over the the now will I call President Investor company's to of Relations. Vice Hagen, Eric

Eric K. Hagen

Petroleum call. Good welcome morning Thank quarter you, conference to Keith. Whiting earnings XXXX Corporation's and third

we'll cause then XXXX. results the for on www.whiting.com. call, Please will is those recorded from box This then conference on and forward-looking risks quarter Relations on forward-looking the results quarter fourth also Investor the our our presentation for slides, in the on access could and at are outlook that call To Presentations the the answers link. the to review our menu, Events differ that be and and this questions include to statements third click and click During materially discuss full & to website statements. remarks the available year being subject note that please

in September of to set with for take Form Please the the measures turn webcast the is can I'll be non-GAAP that, Jim Additional XXXX note measures our at GAAP to the information in quarter of to that concerning and and forward our we end Reconciliations are filed Volker. these slides. later And ended XX, expected XX-Q refer forth today. over call be our slide release. X risks earnings earnings and release our in found number

James J. Volker

good and morning you joining Eric, Thanks, thank everyone. for us, and

and us will X. announced Executive want earlier Holly Petroleum November be Brad week. discuss exciting made the results, Brad Anadarko Before this as Whiting effective Holly turning Petroleum brings Officer will a and Corporation, where Corporation. He to to to we Tuesday, as that terrific industry. announcement the May to joins He and President joining of take leader moment the from position Onshore served I Chief a quarterly On we in recently Petroleum Vice He be for of Exploration Executive XXXX. than experience he in more XX energy Whiting promoted U.S. was Production. to years President, most that addition

search industry a extensive embodies decade thorough many deep brings of mix allow the and due running President to a leadership right executive values him expertise, of considered will of hit His the is he operational succession the proven time part advance extensive now candidates. to and planning After ground teamwork, As we including that experience, a right Brad and than Moreover, than company's diligence did leadership and Whiting, capabilities. integrity, our process, and experience to the responsibilities. XX as years believe CEO, initiatives. strategic transition more at innovation. core more I comprehensive

the May Chairman and Brad, the ensure closely assume smooth the of the Meeting transition. board Board XXXX Non-Executive working will will until position. forward X, look and as end of with year Chairman rest the serve the until lead a base, Chairman to company Annual growth asset is a Executive of I Brad in role to position my I'll shares know strong my that drive in financial and Our in Whiting and right with is phase person for world-class ahead I Whiting. as am at remain Brad the what for is the executive Board I Brad when team, next its of value to the Whiting confident of a shareholders. enthusiasm the our

number have that over you now, X, on let's been and proud and for Whiting your years. thank begin turning Finally, to accomplished serve quarterly friendship honor all the an we support I of I our And together. all want results, of to am It's slide please. to

Redtail a at BOEs Fort XXX,XXX and XX% adjusting processing temporary of Berthold Indian asset quarter-over-quarter. Production for day. at the outage. per end was Reservation in the appropriately sale increased came high guidance production third-party production quarter gas Third after

Another positive end oil guidance. in differentials came low third that the was of quarter below

day. Furthermore, to continue with we County Fourth capital and per the our Wells our Therefore, County cash capital quarter in only Koala estimate grow we Nelson is per XXX,XXX We quarter-over-quarter maintenance Basin BOEs spending forecast maintain McKenzie Williston Wells type BOEs million flow. can to XX% production $XXX in generate in XXX,XXX results are tracking is positive to We growth efficient. XXXX million. current prices, at day curve. X.X the the BOE see in we to estimate Williams

$X,XXX for BOE announced, Reservation in The per sale the of we attractive. results Berthold typical a Fort acre. of price past Bakken per per closed assets. a of sales quality production value our basin. XX months, Finally, significant across previously the of to is price per Indian acre net $XX,XXX and acreage day as of the highest value This a testament analyst was the Whiting's Using the is over

Williston on represented XXX,XXX the BOEs BOEs per number can adjusted number overview high day, control XX% XXX,XXX you X, see Forks X, of our our total was we where and XXX,XXX guidance an On At averaged approximately slide quarter. third production. in day As per production Basin you the the provide end of we of at total acres. net slide Bakken/Three net the

and sand. shows curve. of million results locations are BOE X our see a of these You new wells These pads. X projects the continue number to X.X curve. number completion curve pads the with also slide X of wells. million number our disclosed Slide of or BOE enhanced a XX-XX Dakota. of these X number completion are more type tracking The performance a Both the are pads. curve. X million the million shows and X they toward Northern and the depicts curve. XX McKenzie, of BOE which in performance the above pads wells XX, XX span XX-XX are exceeding wells average, County. wells. performance these Mountrail Bakken/Three Williams wells or On tracking to type completion a wells enhanced wells. expanded these Evitt number counties, headed BOE our enhanced Three average a completed a are track type our On more type average, McKenzie completed shows that formation the shows of X X.X performance shows Evitt that can are associated Slide of data number slide producing type type were X million number curve. XX were Slide and X a the sand. previously Slide Both Wells delivering our of also X.X X BOE location Northern tracking type Koala pounds These the These all BOE our wells the North wells with BOE Slide Nelson incorporated we've wells million new performance of Slide the million are of results above curve. new the updated On Forks X BOE X.X million curve. pounds in million Koala Nelson Forks include updated type million above a where shows

you of drilling prices. associated As XX potential you team. areas. from are the days QX Slide slide XX can our down Slide in number in $XX completed XXXX have XXXX. largest XX% areas to NYMEX are working interest shows oil see, located multiple core strong they rig $XX XX of the were locations to see the at release owner. from to times driven span drilling our number Basin our in can On we in XX%, days QX these of our of XX, excellent XX the Williston the results spud They number wells in only that with returns and Williston demonstrates acreage where operating Basin,

depicts We on Slide release from our third only spud BOEs these in to XX% Whiting's rig quarter Wold recently in number Colorado. X our results continue Redtail XX over Tarpon (XX:XX) XX,XXX the Prospect quarter a second the on XXXX, to and to in drilled grew Production per days. increase well area in of improve a the levels. area day Field lease Redtail at

an and our operations and of discuss these production quarter. third rising the late bringing Stevens, outstanding on continue did financial job, still now our September, quarter. in came of are wells CFO, XXXX. the and results Mike between on in Our production benefit XX the wells fourth mid-August The majority will to team will during in quarter

Michael J. Stevens

a our quarter. slide XX% production On you'll grow perspective. fourth third On XXX,XXX and quarter This maturity results third XX, number XXXX to you XXXX our number slide liquidity On see of including million. quarter the increase see We we from $XXX within liquidity a full day of slide an covenants forecast and from and well show year a for guidance in XXXX. financial XX, and We XX, average our debt quarter levels. to fourth of flow represents BOEs the remain our number strongly positioned our covenants. discretionary can cash debt all

had During us oil oil clarify Koala the gas the curtail sale further, Also, which from gas rate. outage due XX.X% to had quarter, County of a a capture a to properties Dunn we XX%, mix the new our small GOR in production lower very to to due decrease lower processing the pad. caused to on significant our

number but are XXXX XX for XXXX curtailed, We remainder hedge added XX% in of only XX, now Slide crude October our hedged hedged hedges oil positions also as attractive So, XX% of volumes and prices. volumes. shows gas not to our significant were at XXXX. the oil and

percentage in XXXX up prices XX% if over remain call that, Jim. or to this We oil back I'll to will moving strong. the turn consider greater, With

James J. Volker

improved our quarter, on Reservation for Fort very and for number Ladies continued please believe plan Whiting Mike. a investment we further remains We sale attractive balance and Keith, the Berthold up strong conference Thanks, detailed XX. the open call questions. on gentlemen, reasons all with during execute sheet to Indian of the slide our assets. the XXXX our

Operator

Thank you. Yes.

the We the Neal And SunTrust. will with question from begin question-and-answer Dingmann now comes first session.

James J. Volker

Neal. morning, Good

Neal D. Dingmann

the you morning, Jim, best everything and wish on retirement. the Good for

James J. Volker

you. Thank

Neal D. Dingmann

pounds X I you on if for just showing of referenced one as you hit frac now million or question, at you Mark you've what is as think when think those XXXX, of wells now, or real you the some sort – Do that you maybe wells what potentially into jobs? million the these that see on average all of guys you just far an for the size XX see diminishing quick could it could pounds, X comment slide or First plus. returns on

James J. Volker

Thanks. Great to waiting been answer to that one. question. Rick's

Rick A. Ross

Hi, Neal. is This Rick Ross.

Neal D. Dingmann

Rick. Hi,

Rick A. Ross

Basin probably pounds right our pounds Regarding to completions, XX think, optimum we X million is million our now. Williston

So, standard our kind job. of that's

the that pound slides to You'll X see But XX optimum is on we up bit. little cases that may million in the in it talked a some think about range. earlier general, pound jobs we that larger Jim specific million bump in

Neal D. Dingmann

mentioned Jim, curtailment. little of Koala, in then, you And a bit gas it. Got that

just talk that could for any If you that forward? going the potential see you just address outages about the year of and remainder if you

James J. Volker

jump turn Well, so that been over too, ready Rick's on to to one, him. I'll that one

Rick A. Ross

had from a that the up a the that that midstream a curtailment Neal, about was McKenzie operator some back month to took problems replace equipment and – plant running. was and get County

should to it So, what usual And I'd normal we're be point. at can forward, business say see. as back going this we from

Neal D. Dingmann

then potential potential go divestitures. Will you potential investors a contain it. XXXX? talk if just until the just to Brad of Got asset wait strategy could of lastly, rest anything still assets you you year very into just about heavy, and lot further And on ahead or that's Jim, for passed or obviously the for

James J. Volker

properties Redtail, that up we're – going we Gas amount non-op. I acreage candidates So, our the load say minor areas are going Plant. anything. once listed And that sell I'm we to at the about non-core in the of slide, gas of course, our to Redtail at some further say there, will have plant are not that

Neal D. Dingmann

Very good. again, And congrats Jim.

James J. Volker

Thanks.

Operator

you. And John question Raymond comes James. from next the Thank with Freeman

James J. Volker

John. Hi,

John A. Freeman

Congratulations Hey. all and to best Jim. retirement, Good morning. the

James J. Volker

Thank you.

John A. Freeman

original completed I'm Redtail. maybe on had tracking wells update, have those now had XQ the an those And we pads. could for of are XX about have two of days, some were been First question XX to Razor sort just range? I We wondering those relative EUR online was that kind in those how that on back if

Rick A. Ross

Rick is Yes. Yes. again. This

XX experiments those and think are takes we Redtail back. a flowing what we is As this couple even And guess additional with days you production on X and proppant days peak. do at hit mentioned, been of And both additional we did usually in and XX completion to say the proppant amount you would this we probably with stages stages pounds we value. optimum as I of additional a mentioned and believe is to wells add have at that point of sand. million point experimented that

John A. Freeman

little million a Basin of the range. on mentioned just Williston use wells on to XX the a then to you million and And Okay. amount pounds for bit optimal the follow-up the X earlier on question pounds proppant

previously given So, days, big we kind you well fact XXXX when the end X you would do that all big And if pounds. in million improvements pounds that higher X.X of on I at then but X about to about how the pounds the put I completed the costs, of the look cost maybe sort have we to completed think of think pounds of kind cost advances, of XX million service million well million drilling you've range had XXXX inflation. some that then, that on

XXXX? in budget, you. you we all about should sort how think sort how Just of think completed your planning your costs XXXX of about would Thank well as

Rick A. Ross

can through cost we from XXXX in this our see be efficiency. flat point, to we appear we Yes. what side out at and completion we're all pricing the can't gains way commitments but vendors on in the Obviously, continuing see the see to have

would prediction overall flat my So, be on well cost. cost-

John A. Freeman

Thanks, Appreciate Great. it. guys.

James J. Volker

Thanks, John.

Operator

Thank you. from Corales Howard question Brian the with comes Weil. And next

Brian Corales

congrats great and Hey, the career guys. on else, everybody retirement. deserved And echo I'll Jim, well

James J. Volker

Brian. you, Thank

Brian Corales

been price keep are forward, I just while? a The or one take all going in Niobrara? going you commodity it going you a Bakken it there mean, back results are would to the – extremely once to Is have to rig impressive. to every plan in what put

James J. Volker

the our of to and DUCs plan planning half XXXX, Well, the say complete we'll in XX just results to short, in and those first I XXXX looking have complete basically year-end remaining would we of about there at at for XXXX.

the we in Beyond something return it. that capital there, higher the ROI having us and whether really, we us spend about $XX position so that make results rig we're would the try course the in we oil-price not higher But Williston. of back thinking the be the this rates we'll IRRs, and up related, see. time, get probably or in be the due have of you, that, to to a at put there To Williston, to would the acreage specific wait to huge and essentially start range prefer with to available

Brian Corales

got. I all you. That's Okay. Thank

James J. Volker

welcome. You're

Operator

the comes Deckelbaum Thank you. KeyBanc. with David And next question from

David A. Deckelbaum

Good Jim... morning,

James J. Volker

Good morning, David.

David A. Deckelbaum

on I'll train the get ...and on retirement. congratulations as congrats well, the

James J. Volker

Thanks.

David A. Deckelbaum

little color about that calculus million more you so (XX:XX) bit think that? of you driven I $XXX that on or and guess sort Redtail. those little to year. the – ask of how million there's I so how of benefit – Is do to day And what down the a it's or know But contributes to that describe million, think end just the get the thousands that wanted I bit using beginning with guess about $XXX I sounds a sales. at it a you the it flat all walked all Bakken is keep the at some been like the BOEs the numbers to more XXX,XXX that type a in from about or around X.X know I X.X year DUCs $XXX million some of curve? to of granted level

James J. Volker

Basin. which just Well, we're continued Williston you've really of our upon January and here end the as XXXX. that confident said, year, would about the say have results. drilling end I the Efficiencies areas the the seen XXXX. And in in over we improve the have really we're year it's based We're in from through results concentrating, to of the through on

what to maintenance So, contracting capital. those things contribute view we as really

David A. Deckelbaum

Redtail on potentially to for DUCs schedule with that you a that bid? Gas asset fill And of competitive it feel level complete, you that. to the But the plant Plant. it have a Appreciate with the you you outside could does the like remaining sales non-core, mentioned market

James J. Volker

harken seems about Plant. and market out call see Gas calling to would out continued we the There seems an strong So, people all general, the would answer reasonably received I the there I interesting to market price market. that. is that interest and have be there, to It's to that you inquiries, a us in we'll reverse Lake what for be Robinson say on back would it

see everything sort and is get like then I of interest on we'll So, to how there out piqued. much production

David A. Deckelbaum

and the again. I congrats Jim, Okay. color, then appreciate

James J. Volker

Thanks again.

Operator

comes Gail And the you. with Thank Group. next from Nicholson question KLR

James J. Volker

Gail. Hi,

Gail Nicholson

Good the morning Jim, retirement. on congratulations and,

Three Nelson see how the at anything just Forks Looking other Three impressive there? Middle of areas County, the thoughts Did just curve]. kind the pad or in you Bakken those Williams area are wells is that's curve in where X.X Forks Forks but the is tracking performed than your Three type very that wells, in barrel [BOE the differently the that better versus wells, million an

Mark R. Williams

here. it's the a center great Middle Williams sources area of part deepest area just and regard basin, to is Bakken Forks. as north That Bakken with the Three which Mark Yes. basin the the lower the the well as that's of in Shale, both

very we of Forks results pad, Three our as see by Three that Koala have will well river, there as a across township So, as in both some to you really area Folks. that south get there wells, so Nelson the the roughly and there good outstanding the can two the

it. a got acreage we Fortunately, of lot in

Gail Nicholson

crude pricing then benefit of And Brent spread out trying maybe pricing and looking Have the WTI East these standpoint? to guys the just the Brent you days. the Brent to the and thought Coast, between on at about get Great. stronger more take

Michael J. Stevens

LLS trades That's now. of Brent. lately to the ending all which markets to it has at crude the down outlets course right look Dakota is We send been the place and way up but into Access. close takes lot where gets best It it all the our different to of Texas a

good little a even differentials definitely up big game and there in the QX there, our we saw up bit has tightened QX. and been results some that's in tighter so far results So, changer

Gail Nicholson

Thank Great. you.

James J. Volker

All the Thanks. best.

Operator

you. Thank Glick comes JPMorgan. from And Michael next with question the

James J. Volker

Hey, Michael.

Michael A. Glick

start, a more bit Good morning, just guys. you about you to Brad? to the little what I drew CEO guess talk could process and selection

James J. Volker

liked Colorado Anadarko. He is We Brad the having here him skilled management. of history Denver, great a best. run in local office has in the

did some ability the value. to And opinion, everyone an and that has, an and we recommendations my I excellent in respect think all were challenges interviewed Anadarko Brad, handling he drive he opinion, great level AAA. my job in energy to, with faced

to get just asset So, wait I think our on he really his hands base. can't

So, from many by strongest evidenced we candidates review the picked he – probably from was that standpoint, interview, that unanimously think did I the the showing overall, he and our and board.

I helpful. that's So, hope

Unknown Speaker

larger Got Thank Could jump you. in that's play front? Yes. impacts experience you some question, you. lot whether into lately and infill more maybe between getting that potential for impact? that Williston one wells. of And your maybe about has been seen could the a in the you've of fracs and parent degradation a mitigate talk a And on topic technical any

Mark R. Williams

the wells going in pretty XXXX couple Mark good things. the were where Williams in had success just XXXX completed that where a mention of timeframe there especially I'll certain are and are of There infill to we've here. basin earlier parts drilling. of doing

the area, the get and sure the of part, oil has on have good we out develop very doing making more been necessary – in all most east part the basin, more of for of development we're put doing the good For central example, potential. the program. But more that drilling a here online completely some that the wells we're to the prone those infill most our in job say the DSUs, I'd of areas with Sanish current side

Eric K. Hagen

compared XX they're it's Development out or of peers. wells periodically, you Eric conservative assumptions our point versus at per I'd more. for some our Hagen density the and XX maybe are on – Michael on most – look a wells to DSU at Yes, wells really the of XX or lot peers side well released we've if

So, development we've always been plan. conservative in our

Michael A. Glick

a Koala should expect reading is the if just fair on your lines, in, just between oil And that sound assumption? it. kind of mix pad, sneak in was call good we one in it Got like more XQ, much that doesn't the I variability could

James J. Volker

correct. That's

Michael A. Glick

the Okay. Thank we do And all best. Jim, wish you. you

One classier Thank industry. of the you. met in people the I've

James J. Volker

Thanks so much.

Operator

Thank you. with next And Will from comes question Green the Stephens.

James J. Volker

Will. Hi,

Will O. Green

Thank successful a you. retirement. Congrats, in on and Jim, career luck good

James J. Volker

Thank so much. you

Will O. Green

have a that those the bit Can on seeing over just those seeing talk you you of when you in on? fracs degradation any on newer been question that those I XX you units? wanted what's million how are any competing and on they're spaced? are and about wells tightest put the to existing little X that the Just Are curve. talk to follow wells [BOE] older wells kind about type those guys color last with wells in us additional bigger

Mark R. Williams

of on configurations, I'll tends wells This depending is is not. the we have Mark say to leased wine or rack Bakken, own now sort standard typically whether be again. DSUs adjacent six the One five we the in thing to the line

become the And make what program years that DSU, one sort so, of side standard area tried where over of last in be few development we're pattern. do on But and do development us a sure leaves infills doing very on do that to need we've a come large the we It is that's back to that. us. that is for in only but to our may

years. the here or hallmark So, of for four program about three been that's our

come that's of opportunity to And the and our what's core areas. so, in giving some us in additional really drilling do

Will O. Green

you wells the Great. appear lot a it quarter. guys Thanks. those third completed loaded lot of to does wells were that in then, back-end And a quarter, Redtail the obviously of

a back-end Basin all, us to give the Williston well? kind you wells on First some of of is is statement. were color And loaded the or can whether then that quarter that in fair as secondly guys not

Rick A. Ross

fourth Basin. the on in continue the very loaded the of the rest in there. agree Williston In put were we I both Redtail quarter to and and back-end on with Yes. Redtail, would up you wells

coming the mid-August well And of to end on of All Redtail September. we Williston as in are progress. we've on the so now a real good of with made wells in were back-end the right in those number loaded

with agree would you. I So,

Will O. Green

again That's Jim, had. all congrats. Thanks Great. and,

James J. Volker

Thank you best. the All

Operator

Brothers. Thank our Tuohy Campbell question comes with from next Jeffrey And you.

Jeffrey L. Campbell

morning. Good

James J. Volker

morning. Good

Jeffrey L. Campbell

And leadership. congratulations Jim, great career your of and course, on your

asset it. You're I'm sure handing to Brad. and very off organization a nice he appreciates

James J. Volker

you. Thank

Jeffrey L. Campbell

XX-XX, you Regarding but performed? these gives it tracking to XX-XX this earlier talk much a to so excess quarter million was wells declined a looks the in BOE improvement the closer bit for and over X.X results Can Evitt about norm seemed have more the than well peak XX the displays that or just the explanation million to I looked or suggest X take little some of it did in curve, Have a that reach time seeming rates the the of at EUR. or they long BOE type how they slowly days? or that improvement some anything this last relevant Evitt

James J. Volker

Thank you one. Rick's asking that that one. been for waiting for

Jeffrey L. Campbell

I'm oblige. happy to

Rick A. Ross

of That with was well about and have produce out terms performance happened. half ordinary really They it on Bakken pads half and wells. was to each track pads total, was, nothing just in or it type three the that there, I that Three obviously Forks, of would two the continue And say curve.

So, but well, of I can they're I that to. point nothing out the think ordinary performing

James J. Volker

noticed that the particular it think and the thing glad like one style. we're therefore, that completion is, repeatability Yes, you about we of that we

Jeffrey L. Campbell

the quarter or of good about going you the quickly fourth third business loading And shape to how's speak earlier quarter it up? in Can they for to going be cadence the the XXXX? Will backend a to Okay. the in of back point. That's the of completions tend quarter.

Mark R. Williams

increase the up end quarter a probably the towards the year, are year. of the to really relatively The stable. of here. going the couple staying just working fourth crews little for bit of part got for the but end frac to right Williams up we're most completions Mark We've up a

Jeffrey L. Campbell

last showing ask you last Koala million X my I broader was pounds. Is And X.X pound Okay. standard Volker X pound about. this you XX noticed when a the those of million think is million XX era this intensity, now? might Jim one, million that And can regarding pounds dataset I so, if million of Nelson if were talking question, I start the and completion was sand one XX pounds to million to loadings. completions pound your results

Rick A. Ross

million where the standard look I ramp in That from there. an think see it line well And leased now, a to data pounds Periodically, pounds X we'd million mentioned. right completion data or is we'll at. up XX I is publicly as our maybe area to little all some available bit a

Eric K. Hagen

– Jeff, just for more me Thanks, slide. made another work you

Jeffrey L. Campbell

I just mean drop the so ten becoming is put Well, one up. you off irrelevant, and X that the

Eric K. Hagen

Yes.

I think mass, quarter. a be we're in next would critical getting

Jeffrey L. Campbell

Okay. Great. Thanks again, Jim.

James J. Volker

You're welcome. Thank you.

Operator

and comes Citigroup. you, the question Thank from Jeanine Wai next with

James J. Volker

Jeanine. Hi,

Jeanine Wai

morning, and Jim. everyone, Good congratulations,

James J. Volker

you. Thank

Jeanine Wai

I to slides. any now X,XXX previously Whiting your XX just rig or about your depending core locations on seems of You just your be over the Williston in of think for on have or Based inventory new but Williston our spacing downspacing for on inventory assumptions gross you with years. according additional and an capital little may about less your allocation, specifically zones arguably ramp-up you investors? right likely, implies how current location conservative years thinking level you or are Williston And mentioned your peers math that locations, versus less which anything, a

James J. Volker

chime every oil technology independent and improve going locations Well, watched company, good that I'm let expand watched in then inventory with on we've technology. like every in. with Williams independent Basin, our I'll out say and the we've drillable I'll of Mark Williston start that's �� to or active

others far million continue develop. here only but also assets optimistic long-lived Mark we what that also to really as things so there we have like frac point but the one of that not go for from volumes downspacing our So, the very pound that roughly is acreage our haven't that in the that in opportunity XX% improve that gone we we all wells testing to being we've and that, we're our improvement tested drilled, I'd an when us not new And forward. only from this of we far is the and we've some in for the to new there, improvement even wells. total about the as to job, we've so to done very with we're our Mike we've call the And drilled or of that that alluded of offset wells inventory production good see heavily area core opportunity that and essentially X to happy essentially

us a may we meaning as lot tells opportunity good. of both new great in reservoir well place, as have that technology areas downspacing undrilled areas a Mark? they're opportunities that where both there, got some in and areas, we new oil we our good, from So, are got both

Mark R. Williams

high only hit Jim a driver that really make distributed loading so wellbore. there's about one another very the sure on think there's that's in part completion, being other the trying true much that add talk for properly you the of but our there. to get thing that's and sand points We sand I'd I just

places, So, more more points entry more sand in essentially.

that's So, been one that years. entry performance going we've to increase performance loading these diverter, really that's be stages, driving But now for think two That sand of Evitt what's the big in forward. pad, of to our of we our means going things doing the to the points. all sand that and things better number of – use what's continue distribute part of better more driven and the we improve

essentially from acreage position. of of wells areas the So, in a going especially kind as tide rising across, pounds areas, to X.X the uplift that of our we pounds for our all see million X core that's million same

So, what been otherwise, well be year that last now. economic well to economic an would brings marginally a have say,

Eric K. Hagen

for even areas our to in geological category. we our what approach said in Mark They completion label we ideas have non-core think into the using just industry. presentation. of the I'll core think different Mark those team, a bring of is add one and And some the could best that they because some

to So, we Jeanine. think there cited, you is even upside locations the

Jeanine Wai

Okay.

James J. Volker

But that don't the find the that my ones we and same you'll this, curves the of other talking thing raising calls all on be are, and I both are. finding Bakken. are they greater same type saying there only to efficiencies their the in opinion, across the we're operators about we bet think about thing most going thinking their

Jeanine Wai

Okay.

do with to things more like less sounds it are guess and well. I opportunity is going So, there

on balance sheet. revisiting then, but the So, think I upside you the like guess divestitures, on managing which how acreage there versus of Williston the the trimming value is value trade sounds through in some about that inventory inventory do accelerating you're proposition point

proposition So, new value results, the maybe a bit. is little the just with

James J. Volker

what and Well, course, I we return, maximizing think would is sell label part we they currently be of course do about said are something of rates Yes. of that. ROIs, be, we non-core. they If would what of what

of the to in just even finding acreage, which has is look we're completing those that out with it Mark the, especially a distribute has as we're pointed will, Eric if better. out, that wells way result there, Although pointed respect way making these currently out non-core as and you we

realized which, our would non-core more would or say So, across us at offers I frankly, and make for say assets come non-operated by acreage when sure results operators have being people make themselves us assets, positions. looking the they're are and recent current the to distinguish I results, numerous to that they'll from the crowd

Jeanine Wai

you my for questions. Okay. Thank taking

James J. Volker

You're welcome.

Operator

And the Stifel. you. next question Mike comes from Scialla with Thank

James J. Volker

Mike. Hi,

Michael Stephen Scialla

congratulations well. offer career and Hi, as on retirement like your Jim. I'd to my

James J. Volker

much. so you Thank

Michael Stephen Scialla

next said you also You DJ. probably the DUCs grow. could to complete year, and spend that flow you in going cash said you're And

to XXXX would going this preliminary four-rig of the at look you continue Bakken in As that you're point? kind to that program run imply at the plan,

James J. Volker

sir. Yes,

Michael Stephen Scialla

it. Got

that And million I BOE on it that improve X.X you wells Jeff X seeing thought asked Nelson I to over as maybe from time choke of pad, include there potential then or benefit any that any is was from these the answer tried is see would wells at you've performance the something do need type on million even choke this anything I'm like kind curve. that or jump the to back just wondering that point? sound case. that didn't think management you but Rick's Okay. BOE

Rick A. Ross

that on at mechanism to a rod generally is to I back We flowbacks, point lift our chokes. from a then relates transition see say sub-pump. the and bit. a On can don't would another you from which heavily, flowing pump currently generally moderate but there's little one the later you to see curve, a and them inflection on And little we're there the a transition choke in bit to sub-pump

Michael Stephen Scialla

Thank Great. had. Got all I it. you. That's

James J. Volker

Thanks. (XX:XX)

Operator

Macquarie (USA), next from question comes Capital Good And Paul - you. Thank morning. Inc. Paul Grigel Grigel Capital. with the Macquarie Hi.

term Is CapEx, down still pay growth? revolver or on is flow in expected if focus the On or the higher improvement excess on better using the potential of cash to any to address cash comes prices to in idea maintenance maintenance above there a the maturities? is consideration than due flow thought CapEx and oil near of or the growing, free either have there the

Michael J. Stevens

allow achieve Yes. price cash Well, oil will CapEx the around to kind that of flow. maintenance new $XX us

will to we do to So, would to give $XX could which prices another but it, adding probably opportunity be not with got that. till do us closer that prices rig, decide above what

time, the down - cash mean the flow pay excess Capital in to use Macquarie some (USA), would Inc. Paul debt. Grigel we So,

what And of five operations like during have Thank less lower – completions that have into start is that in would Bakken the weather Okay. fewer winter XXXX. impact an second What in looks three quarter you potential issues? you. impact DUCs considering it And the impact of spending then on especially front, least and production fourth does XXXX, half guys of on at XXXX? the the momentum

Mark R. Williams

number towards of to regard Rockies. a pretty DUCs, year DUCs the up end with we Just of build Northern the the in significant

of So, so sort in we're peak that first working XXXX. off doing, the be going there what we'll half and right really be of reaches the at year-end, to those

fourth the us complete and as over really that pretty Grigel on in in of don't And part and back scale quarter related outlook Paul thing. think in holidays Christmas I the many CapEx? quite to seasonal sort Capital other to change natural as of that is So, a more as (USA), on - year, relates operators. We Macquarie Inc. spending wells for any early the the well so

Mark R. Williams

No. Macquarie Paul Capital (USA), Grigel - Inc.

Okay. Thank you.

James J. Volker

welcome. You're

Operator

question from Jaffray. Kashy with Simmons you. Harrison next Thank Piper the comes And

Kashy Harrison

taking morning, and thanks Good for questions. my everyone,

James J. Volker

You're welcome.

Kashy Harrison

just you agreements longer payments contracts of in available decade. more I deficiency the to get fashion, maybe restructure to opportunities Redtail term are a visibility a respect end counterparties And can and where where eliminate Whiting in those win-win was situation PV-neutral what crude, wondering so, the then with to two in – those the that place the the through eliminated deliver into and more situation could a but duration you've would volumes of

James J. Volker

do those exist. the yes, Well, answer is opportunities

time a last this now. at that that right have I best will, would However, we more time, to about then the do little months, say do XX than leverage would the you be, within if you

Kashy Harrison

to question. earlier one And reverting Rick, Okay. it. an then Got for just

in Razor Well, they tracking XXX page presentation? in the wells So, the early and the are I the year, of the Redtail from believe highlighted EURs EURs XXX XX

Rick A. Ross

that it's to call. takes right clean too those flowback The to and that the is we're It's even are XX peak rate up in get on early so to we remember, now. and at assess where XX days you – to type as to point it early make difficult curve not

Eric K. Hagen

If to flow you three back wells, wells establish are and type some XXX,XXX some that to are six before the barrels XXX,XXX we're that pull for just the get them well need and curves. going probably you'll we over barrels. to all on see below months wells It's

Kashy Harrison

me. Thanks Got again. it. That's it for

James J. Volker

You're welcome.

Operator

Financial Group. the question Susquehanna next And comes you. from Perincheril from Thank Biju

Biju Perincheril

Thanks. Congratulations, Jim.

James J. Volker

Thank welcome. you. You're

Biju Perincheril

mentioned of that is production question, looks in Williston, I I is stages. cost. Forks, just an Have in you Forks. the you Three the wondering in reason there some Middle I'm tested you're seeing increasing peers' increasing is the looking your get Redtail I an The opportunity in by uplift had well Rick an some or like Bakken do either just uplift that think that, Three ask lower stages. in evidence by data, a there to it particularly if through

Mark R. Williams

earlier. that's talked this think that's I about think true little the and I we bit – a

the the and to that sure entry to we've that. do of diverter In is are increasing been within same need We've is to addition the efficient. – do at the one both points using that way very each time increased number also been to you stages doing, stage sand perf successful loading make clusters

and or and is four do we every long we're so, and loading typically the and doing one Bakken, been of entry make of each that Redtail points a sand per the got that's stage, key And both both. we and do want the short – to to increased so, But been those the success sure the key three takes. it to clusters success perf to in have at you

Biju Perincheril

sand about a there could like maybe, back Williston, you And that you've results Okay. is the little the a seen potential talk of loading? bit can the walk you in some

Rick A. Ross

No.

than your or what mentioned, right and adding clusters way diverter and as And the it. around stages, it us better, really more distribute as leads direction to the increasing us sand probably the think spread as clusters we're stages, sand that's economical see the you Mark use sand increase adding we've go stages, then more our stages distribution perf within and far to to about either That perf existing results gone be using diverter loading. to, seems additional can towards to at additional so I drive sand. and on we adding optimum now then the adding the

Eric K. Hagen

optimizing that still just we're I And add, area. by would Rick,

area, little a still economics. to some optimize area, there be some higher go maybe area so, a efficiency gains in little lower by may And some in as

Mark R. Williams

how Prospects, out if if it the in the and section at Nesson Bakken, One overall Walleye is west I'd bit the of at marginal than the much and look is – extreme part hydrocarbon the anticline, there column basin the very basin. bearing of quite a get you the towards Tarpon peripheries add the of whole of thicker river you hydrocarbon so the is it thing deepest the into around the that, the of area

type height we're worried have as larger frac we because those things. about and opportunity not the so, then to And of do growth fracs

And acreage best had going most to we fortunately of our where so, that's larger is. the volumes areas the sand success that's where and

Biju Perincheril

helpful. That's very guys. you, Thank it. Got

James J. Volker

You're welcome. Thanks, Biju.

Operator

with Sean Thank Sneeden Guggenheim. you. comes next And the from question

Sean M. Sneeden

Thank for questions. Hi. taking Good the you morning.

James J. Volker

morning, Good Sean.

Sean M. Sneeden

does Jim, maintenance maybe it's come that I or capital. you know I and capital? the maintenance down the think over just pretty how of on a context of in the about guess the contemplate nicely drawing DUCs completing should all we down that point the year. clarification one, course of

Eric K. Hagen

to it this DUCs because – early one Redtail that about have that going we in on we're kind year. year, jump sort Sean, of to of DUCs. already at We're next I have and minimal we've over don't compares why DUCs to XX XXX and had going addressed

really throughout you've the and wells Basin whereas capital of our seen improvement curves year, type just up. improving our primarily have up maintenance efficiency, the moved has So, in moved reflects productivity Williston the out our

James J. Volker

wells. on the Basin the Williston Yes, some major we've and of going to increases spend the we're in most that's year definitely EURs in next where definitely money seen

So, we're putting that's where the money.

Sean M. Sneeden

Okay.

I think that's helpful.

a should QX spend it's causing keeps that $XXX grow you'd that corporate, numbers. to perhaps so, be it? kind and are decline overall, and about how kind you million have the you versus And of Is we of really flat slight really Bakken about as thinking that guys thinking

Eric K. Hagen

capital or? on that the Is maintenance

Sean M. Sneeden

yes. Yes, maintenance, on yes,

Eric K. Hagen

year decline Yes, there's we at year by going and year, there be DUCs. some the end as in will Redtail to the yes over the But the complete early some take at may throughout be probably of growth those Redtail. the Bakken

Sean M. Sneeden

a your just capital refinancing addressing it combination XX then activities? think you of or X Do other beginning of maturity? a I guys about to thinking how sales and And lastly, year, kind current, market is guess, Okay. at that of asset next you are the it's

Eric K. Hagen

We'll on keep posted that one. you

Michael J. Stevens

Yes, we really can't We've on lots of comment ideas, that. plans. got lots of

time, in right of but we're do. I what to really care take you it now going can't tell will We

James J. Volker

problem. no a That's

Sean M. Sneeden

quantum deleveraging. kind I And function point balance of as just lowering same driven is a debt by that the that I grow you guys about of you sheet? Is guess on talked just Or know then – primarily Okay. of conceptually of the EBITDA? lastly, kind that around and that's really growth

Eric K. Hagen

both. be could It

Sean M. Sneeden

Thank Okay. much. you very

Eric K. Hagen

you. Thank

James J. Volker

You're welcome.

Operator

Thank does that you. the session. conclude question-and-answer And

return like comments. for Hagen Eric additional to to would call I So, the

Eric K. Hagen

November participating on XX. be Conference also Tuesday XX, at Lynch presenting Raymond will Global in at we'll of Energy America on Thursday, And November conference the one-on-one Thanks, Keith. be Bank the Boston. Whiting James Merrill

at Eastern Thursday, X:XX I'll on is with the Volker call Time. remarks. Conference X that, We'll closing AM PM Time. to Jim Energy also be presentation for One turn Capital X:XX Our Central And December presenting over the at

James J. Volker

been Whiting's a here Eric, third closing you, and once and I privilege the during enjoyed the the investors, career best. in their my of and career. you employees, all quarter. ladies thank to analysts again has solid wish also their on of with I've my contributions call, and at very as Whiting I'd association CEO my the to Serving gentlemen, the Whiting and contributions Thank like of board for greatest

Operator

you. attending presentation. conference now The Thank has concluded. today's for you Thank

disconnect. You may now

Chord Energy (WLLBW) 26 Oct 172017 Q3 Earnings call transcript