WLL - Earnings call transcript Q1 2018 | 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's First Quarter 2018 Financial and Operating Results Conference Call. The call will be limited to 45 minutes 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 to the the Relations. I turn over Eric Investor will now of call Hagen, President company's Vice

Eric K. Hagen

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

Geoscience, Reservoir Whiting's Vice Ross; today Senior Sonnenfeld. Brad of Senior Mark and Mike Vice is President President President Vice and and Stevens; CEO, President On the Senior me Engineering, of President and call CFO, with of Pete Holly; Hagist; Vice Operations, Planning Rick

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

earnings on Additional risks these is in set number information X and forth our concerning release. slide

and March Executive Form with later President expected this over Officer, Our that, call XX, week. Brad I'll quarter for Chief XX-Q to the our ended to And is Holly. XXXX be filed turn the

Bradley J. Holly

XX. the help employees all Williston but building backlog above plan field drill harsh you, Basin. the in of on but popped another Thank well teams winter the wells Midwest, like our Upper Whiting wells quarter. In second exceptionally for the we quarter, were our It the performed came meet a put would thank or XX to a Production to We to in production Eric. in great was only midpoint very I us of in goals. guidance.

half on come accelerates. pop the momentum completed in we us contrast of will quarter is first quarter. wells XX only This will we of the third XX year For give really in XXXX. second pads plan our that production when large have the in production This being the several strong second in half and the example, to wells in to

Our validates at begun in areas. The area. was less equivalent That area. new rate We to over a the optimized of oil position X,XXX with has exploit has fully completion well Bench completion of Hidden Tier well completed strategy our and X across X.X rock fruit in of an This our barrels that some further edge is bear and our per day. expertise announced the it. Whiting typical tested southern nearly tested design leading times to in important well technical its

teams. driving team asset during on into Northern Eisele introduce be of production to three Basin Whiting Williston led based force the face-to-face profile bringing end behind field. our addition, months. in charge we our new leading the reorganization the our hope you the our leading by these our year. in operations team. up in asset industry-leading We strong has This team, job heading of teams results. Eastern leaders She County delivered to been coming of asset. be Redtail the completed Mike XXX stars. with some has development wells will been some at completions our production nearly and Stahl, who Southern Kelly team. His He at an be will did last our of the In amazing was quarter, has instrumental Whiting Dunn the since will Olson of our leading was team which our has Kodiak acquisition assets. the in Charles been rising has

progress rolled strategic and then on out still the quarter will the are initiatives. pursuing the now call review your made over we I'll vision we take who Mike significant our to briefly rigorously quarter Stevens XXXX have will strategic We questions. last turn and

Michael J. Stevens

per Earnings generated per by $X.XX flow share earnings We estimate of $X.XX. million the versus $XXX and discretionary analysts' cash of cash the flow share exceeded Discretionary analysts' both adjusted quarter. exceeded substantially positive CapEx for estimates.

the of oil we DD&A have were two and also end generated differentials significantly excess gas below natural Over the of guidance was past below cash low approximately of quarters, the in and low end flow million $XXX discretionary CapEx. guidance. of

in we'll first the production in of on half put and half. wells of have second pops XX XXXX the terms In XX

projects CapEx of the Our Whiting second million the Sanish gas by for of production despite between year, the the activity half quarterly will a year. for full in million year guidance remains stable in the Though $XXX remainder the $XXX balanced of the spending Redtail be the all spend impact first this plant of half increases relatively year. outage. unchanged and occurs

the contribute of Brad's half per Keith, in the for wells to call questions. building will for Additionally, open comment, second accruing we of the are conference that and a please year. production backlog CapEx

Operator

Thank you.

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

Neal D. Dingmann

that and Brad. Redtail, is color here were can going? bids Any first the Good days. due process turnaround, the think great in you Brad, morning couple further last I guys on give on question, of just how

Bradley J. Holly

the been on actually May. due the a Sure, Redtail have very of question. having process We week actually and first for bids Neal. are robust Thanks

are interest quarter the quarter. and And to complete next to activity, third we we and so, or delayed process late expect that slightly. due due week early second But bids

Neal D. Dingmann

free step flow and you have your or to cash, down free to further pay anything now just free as or this be potential obviously, flow would can talk still that nice just up to debt for you then, any the continued that And the sale, potentially follow your about acceleration this still pops have thoughts, Between flow primary the quite cash was thoughts the talk there, you free about? up cash cash quarter. you

Bradley J. Holly

talk lot. that We really on that hard. a question, Neal. about Great Yeah. We're working

reinvesting of at and out ruling looking We down potentially sense. not We're will for most a combination do makes that if likely back both shares growth. potentially buying but debt paying the

Neal D. Dingmann

quarter. Very thanks good and again. Great

Bradley J. Holly

Neal. Thanks,

Operator

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

David A. Deckelbaum

Thanks everyone. Brad, Morning, questions. for my and taking

Bradley J. Holly

David. Morning,

David A. Deckelbaum

Just sort constraints on you visible in end? the Whiting's and of process of the potential any into there number through that rig look and sustain processing of you pops, the with the Whiting priorities vis-à-vis how do a half that maybe now sort and all accelerate other we year XXXX curious, incremental on additions some of basin and to right processing bringing to once the there are of managing for gas rising the look the Brad, as back are think what requirements of managed, can gas some you organically of are out chokepoints sort of terms as

Rick A. Ross

Williston plans work lot we've make question. that I'll one gas are Basin comment very the Good to and our capture meet and building sure Whiting's I'll needs. Whiting planning in midstream I follow-up understand Hi, of David, is this right question. those And rate to And first now. in capture. gas we higher a the capture latter has gas done development your around the Rick say they say guess on the half of closely Ross. rates with providers I'll of

order. how have guess great guess of to many I yeah, a I'd but, terms number in rigs don't XX the XX, In support, basin that probably would I somewhere

David A. Deckelbaum

portion success above on here And Hidden be, you some sort my would Southeastern Bench had other enhanced million pounds. Thanks, I guess of the Rick. X of question with completions

asking right aren't As the completions necessarily apply to kind to of in of are credit folks that enhanced now, marketing you assets now? still assets see price sort in upside you for asking some right Bakken seeing their opportunities that

Bradley J. Holly

this in fit we We David, applying believe consider if the that our and better basin. transacting And and package acreage is to would had of compete at us It our competition we drilling the should Whiting-style operations. all packages. be the helps basin well program our those the as as understand current Brad. our well to we completions, position the through felt in current potential looking within

David A. Deckelbaum

for it Thank you. me, That's guys, Brad. Thanks,

Bradley J. Holly

Thanks, David.

Operator

the next comes Thank question Corales Rice. Johnson from you. Brian And with

Brian Corales

you Good to into see this Kind of inventory? opportunity morning, move of on X the – X? from from that all move Any to options those is last Tier question, Tier follow guys. there

Bradley J. Holly

take our Geoscience, let [Brian] Sonnenfeld, question. Yeah. of Mark David (XX:XX:XX), (sic) I'll VP that

Mark Sonnenfeld

Yeah.

second of our Tier X, points, to from rate we We as year enhanced half be called Cassandra of and listed especially and completions proppant keep Wildrose which category in think in in in additionally, zone. the fluids table. energy in frac with the this other of testing considering are of standpoint And in the the are our are, of of areas X going diverters. size, areas, pump will come Tier to And our areas we're kind example, for Tier job currently use those X, aggressive experimentation more upgrades entry the

Brian Corales

Okay.

you're is one more on? If confident a man, that gambling area there you're

Mark Sonnenfeld

fracs and X of Well, areas kind the of themes that's of right-sizing challenges all one our our different our the for basin. Tier sub-areas different present of

Brian Corales

All guys. Thank right, you.

Bradley J. Holly

bet I'd Brian. of all on them,

Brian Corales

Thanks, guys.

Operator

you. Global. Thank comes from Mike Kelly next Seaport the with question And

Michael Dugan Kelly

Wildrose Hi, net guys. you Cassandra, last for on Piggybacking and do number that have acreage ballpark? question, a

Michael J. Stevens

category the in majority our – basically of They're presentation. they're the in other the

So that would be around....

Mark Sonnenfeld

Thirty...

Michael J. Stevens

acres, XX,XXX gross. XX,XXX net

Michael Dugan Kelly

would pops, Appreciate be just that if could give it. growth to this head with frame kind you for be Thanks. of sense as hoping I Got you us of little organic it. you into in little given And second helpful. Bakken a that what bit, the was of going half means bit weighted a that these you're XXXX maybe

Michael J. Stevens

Yeah. our Mike, Williston I think assets. committed to our Basin XX% operated in production still we're growth

Michael Dugan Kelly

Great right. guys. Okay. Fair enough. All quarter,

Operator

Jeffrey the question Thank next you. And comes Brothers. Tuohy of Campbell from

Jeff L. Campbell

slide what most far-reaching a employ large does near and wellbore industry could it I near On really interesting both it it provide presentation, and achieve that where to led fractures. a purely wellbore is thought near wellbore exclusively frac morning. completion appropriate and completion? geometry is XX color current was versus the the illustrates since Good completion. some is if wondering completions, typically this I standard of on mix, the you frac And the what large you gains

Rick A. Ross

just would stimulating. stimulating. really And that further complexity allow drain go create This will bit area tunnel and got is, We'll geometry, more near the better us still we is a more go we geometry, call be cracks, a not are targeting got we're in Rick more what less further to again. diverters little to there working a less area, out wells. geometry targeting that more wellbore the with will little more in that What little and we've to completions a diverter the with completions slide intensity get trying XX between the, We're on high wellbore maybe well. space fracs the focus large but from proppant. little pretty the then area where hard formation out well we're we're Diverters more on but in cover the that perforation intensity we've create area be the to around the and we're try and

Bradley J. Holly

there's So, I for any add, longer Jeff, would us. no that completions cookie-cutter

every based rightsizing and offsets field pump completion are we are the on where in look We we what like. that the

Jeff L. Campbell

appreciate I Thank that Great. color. you.

Operator

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

Will O. Green

morning, Good everyone.

Bradley J. Holly

Good morning, Will.

Will O. Green

those that we to some a XXXX drive OpEx and higher-cost may about assets. OpEx production can that brought be can I forward initiatives But a on kind pressure any working XXXX get downward little I a I But OpEx additional some lower well. have you that front. would expect been forward and that talk you In going touch also initiatives basis? guys scale you that just guys forward help on declining, greater to assume shedding that with numbers of on really despite you Wanted some on bit. bit down realized have fully that additional quite unit of going as

Bradley J. Holly

Sure.

are try be would things one our continuing highest for Some saltwater to we're on our cost focus of pipeline and of down. on renegotiate bring water categories. getting on That's our the continuing disposal to the and and currently that and more price of focusing

our it good the continue data our we're well then made brought over on advanced through thing had and intervention very focus. to And working on rate on rate equipment. as demands design more (XX:XX:XX) mentioned I years that that. go and there's And there other reliability well certainly headway we work and year's secondly, headway last we've that monitoring made room just or we our show is So And XX%, to pumping the downhole we minimize we period think go. some and over few good in our some over we've try show you've a we to I focus – think intervention still down there's failures. slide we by believe use and that And to

Michael J. Stevens

the into forward these Will, any haven't potential guidance. I of baked savings

see You'll the per of as second comes our the on BOE year. number our flush production down half going in

the guidance there there's some upside hopefully, front. So, on

Will O. Green

That's sale, wonder sale LOE about we're a can potential unit after on me how go-forward thinking there potentially between a color. help you if a numbers a those And about think basins? change guys is is drastic may complete the how basis I great to then, with Redtail or in OpEx difference that

Michael J. Stevens

Well, some whereas number Bakken is The $X.XX closer Redtail there's difference. to$ $XX. probably to X.XX is to closer

be there we there of little Redtail. improvement a bit will So, when sell

Will O. Green

all the for Thanks Great. guys. color,

Bradley J. Holly

Thanks, Will.

Operator

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

John A. Freeman

Hi, guys.

Bradley J. Holly

morning, Good John.

John A. Freeman

done done the Should about start you we to type in to the about I'm a shift, roll to contracts, think have increased business we contracts? more kind all second de-risk move sort into when in for think manner hedging structured what longer where where of like the should type what term and for that to XXXX all as the kind doing in the all it's plan. shorter the of a you we locking opposed sort and the of of like be as of handled where we you really way services services attention a as in a to than have more you You've the going XXXX, been mainly good job more if wondering year lot it hedging term past looking should starts of that past done would into with we similar had your half you've be XXXX, you're anticipate and of most and services was move more

Rick A. Ross

intent. units, the casing, our as be of of QX, year, really those and That's on in things. QX materials We'll tubing, Yeah. up for services as working that next type lining some pumping well

be the So, same we using will yes, we strategy. will

John A. Freeman

some some is then non-op have all again? or just where follow-up could And you that all for would me, or one anything to Great. would of scenario divesting the potentially the you envision there change consider Bakken

Michael J. Stevens

cash right – off operators other and any selling don't area activity thrown the the on the anticipate in It's now, there and we a from we're off is get additional drilling flow, we enjoying of completions. the lot don't We non-op. from more insight of lot going a there,

John A. Freeman

And guys. you. Thank nice quarter,

Bradley J. Holly

Thanks, John.

Operator

Thank next question with you. Bank America Asit And comes of Sen from the Lynch. Merrill

Asit Sen

going is, are does corporate one strategic is DSU you of the level, could the I economic or vision, at probe corporate on plans? well morning. bit sort level the DSU into returns Thanks. maximize the as the that and today level. could a Good talk and little Brad, how if the about into level roadmap My you which your fit to of forward question at compensation where as

Bradley J. Holly

do Sure. to question. I economics. really the away well individual there appreciate from is trying What get we're

at well from generate looking do well certain rate holistic, and return, as easy it at to amount a get of it's we certain away We're trying a really look well individual and get we say so, have. a And a of we to that what return. on a but cost that certain rate EUR an

net We that. in maximize our acres is job have all the to returns and Bakken XXX,XXX of on the

NPV and a to benefit in of And So, looking or in look we look style we current we're really the That's and of is, look drilling spacing at that optimum what we'll and how price that. get economic an at output unit rate at at that the completions, style what on drill completions. we return many commodity could that. and of wells unit we how iterate type DSU, from

Asit Sen

have color the you that that corporate the or would what you can you can map road if additional quantify remind mind in on any provide? you be level, could And us

Michael J. Stevens

we're the you're don't there what sure asking exactly I think corporate. on

Asit Sen

returns would what and – The the the you're be, return corporate what's organization driving corporate what target and your goal towards?

Mark Sonnenfeld

Yeah.

return. XX% – we I rate and threshold a was that to think, compensation before we've you're rate of asking our a plan, return said of Asit, added the drilling on metric

Asit Sen

Okay. All right.

Just debt-to-EBITDA. point, than does X a I become suboptimal? you're know net sheet At driving Brad, quick what then. philosophically less balance times follow-up

Bradley J. Holly

Yeah.

like think It's that the X I achieve. is that times end-all. would we've not said we to milestone a just

And and so makes value. and set see sense most to the look to what being at drive we'd opportunity X continue is what to under toward then point drive at our do like times that

Asit Sen

you, guys. Thank Great.

Operator

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

Gail Nicholson

your a kind detail improve you marketing guys attack if the oil incremental improvement just you've there's the steady if differential in an know that on seen contracts? is improvement continue think And some if to more itself provide have also You but differentials Basin Williston some I'm for on effort of taken differential marketing of since timeframe. you room you the I curious strategies. improvement that that. overall in oil XXXX to can additional just

Peter Hagist

This significant Thanks. think roughly the now. day XX% the via oil barrels Yeah. million progress there's adequate rest The and by X.X or barrels We actually X.X million differentials. pipe. on takeaway is pipeline per About XXX,XXX via day right from itself rail. made We've Pete is was the capacity Hagist. leaving per a day. production is barrels basin Total is

So, there's of have a reason differentials there. decreased. lot capacity the the That's

this so approximately days point, a amount, barrels a long-term. only is committed at small XX,XXX And

to being enjoying capacity what our of a But, the very and ultimate to takeaway providers. it basis. obviously, will we're takeaway able we're cognizant on short-term be market always So, talking

Bradley J. Holly

team really doing Gail, options Brad. they're this Thanks that there. what and Nate all proud We're Yeah. his of there. for at question. and I'm looking

we where to going certainly that the longer XXX,XXX little of can these some over of sit barrels opposed we in in with on things we a production, So good we're realized not day a And differentials. lock basin.

Gail Nicholson

the in Pronghorn regards remaining the area? Pronghorn the – guys, year, JV will of I believe about completion wells. back in in just the doing Thoughts half optimization then Great. And be you that

Bradley J. Holly

at something we're Right. Gail. looking That's

on not map, our that excited notice any you a we we completions headed got down in soon back there enhanced Pronghorn. area. the We're inventory We've and If have about do rig eight in be completions the past. to those strategy and trying results do to seen on about we've over have improve to try this in year we'll enhanced an Pronghorn, completion what

Gail Nicholson

will sneak the of do about news unscheduled gas the I kind or that with to defer right the more. test is processing on field to of a those plants which in some one know in infill kind are the guys Does think keeps I we just giving. you bit, testing. should In downspacing maintenance little how Sanish, potential planning Sanish

Rick A. Ross

The we're affected in May. gas downtime won't that Plant Sanish in tests I'll plant a question. enjoy be Good long the is planning rate. capture area, just term by say downtime. the And we XX%

a So, event we issue just shouldn't one-time and no an forward, be so see it it as change. going

Gail Nicholson

Okay. Thank you. Great.

Operator

And from Subash question Guggenheim you. Securities. the comes Thank next with Chandra

Subash Chandra

on was any with qualify, I the perforations? enhanced curious of entry completions I these if as of these limited guess, buzzword

Rick A. Ross

Rick is This again.

of back what to number completions, far, have some And cluster We using we've We're so tests encouraged monitoring get the per we like try seeing. our post-frac we technology results. a perfs that number we're done that the from by are and the of on distribution. so cut of better

Subash Chandra

Is and that impact or on drill rates or time to maybe costs complete?

Rick A. Ross

impact. no be a cost would the other If that, really no because Really but less fewer holes, anything, than perforating impact. little

Subash Chandra

some to talk into turn you're been trying you I'm Okay. there guys non-core if be aware like aware Thanks. Kraken, in core. of? the And the maybe Any update then non-core third-party others or have able some that results about secondly, curious might to

Rick A. Ross

comment we mine lot all watching of think a that that anyone want there We data. that. a but will We're I don't on of out process, ton there. to else's I Subash, data is say

in working activity. Mike lot have small of a said, we operators' As interest offset a

out oil you, guarantee a trying to completion see we're place technique to of get proper that. I We figure the we're so, and that. in at And watching lot

Subash Chandra

Thank enough. Okay. Fair you.

Operator

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

Michael Stephen Scialla

above you you said be capture. need gas for (XX:XX:XX) where that you to are

issue? how create potentially does opportunity Just in the the basin? to basin wondering a position that maybe look And as acreage to add you if in you whole any on on can as make comments the looks that your any industry

Peter Hagist

natural point, November will this increase is Well, in of was Dakota of natural XXXX, gas February yeah, is be number produced and about year, of of XX% over at Whiting to In Hagist. captured North North of that XX% to captured. Dakota In requires, gas. XX% the capturing its this currently this Pete gas XX%.

our well So have we that's very and gas to in part efforts capture. manage proactive been actually doing to our large due

assets. some have We

that plant have We up a gas utilizing. we're there

So good we shape. actually pretty in are

Rick A. Ross

XX that what well to able on Mike, we to takes be though to be cycle to gas. is planning ahead great that months and capture our planning do that have XX to

And doing that. new that I'm asset two-year our that today integrated encouraged teams taking a so, to strong and maintain look-out we're make by sure we

Michael Stephen Scialla

seen design, as XX improvement And over you. you're slide looking an looking just wondering a completions, Thank over if at with your uplift you just Okay. that is optimized have year, NPV your – wondering you point much sense out versus your have of how at for the acceleration far? even it you've the a seen that does or EUR so based this on an matter data old to

Bradley J. Holly

question. Kranker Steve let that take I'll

Steven A. Kranker

expecting the the on We're return but we rate to uplift highly a internal those After be less (XX:XX:XX) thus, on in Yeah. affects wells. EUR. and there significant the initial impact it's do would impactive phase-out, well that rate, IRR, expect the of both our

We the so we going number of in both plan wells of can going planning up the we're things together those appropriately. optimization but are optimize EUR our rate opinion. size and for frac that DSU initial DSU all So, into our

Michael Stephen Scialla

Very good. you. Thank

Operator

with the Stanley. Morgan And comes Venker question you. next from Drew Thank

Drew Venker

guys. morning, Good Hi.

Bradley J. Holly

morning, Good Drew.

Drew Venker

want Brad, of response I flow. free on just follow-up the on cash to uses

if for using potentially whatever how speak and acreage reinvesting – or reinvest that includes you you extent helpful? for bit determine Can bolt-on you not is the be you just growth would – can level if right a what I'm and said You little to then elaborate that on sure some to growth. of

Bradley J. Holly

got we're What Drew, business and is I've margin. that's compete on question. great margins-based we've said internally Sure. a a to the

levels. or our activity current when that below increase can do kind we I'm And that to at so, show willing of we

with We So, able and were have added fifth rigs. rig rig fifth and field our the that at comfortable we cost structure. we a to in add below current why or got standing that's four the

that so, teams in reinvestment And we'll continue acreage. going our our inventory look We'll efficiencies. to with mantra drive drive to as to continue and improve our continue forward potentially to try

we that As think be over well we looking fence. should as the

our we operations LOE in potentially and a LOE the per We're we we for (XX:XX:XX) BOE position, could economic and BOE, we area. field that talked strong could And have wells we per about and shallow the past. opportunities we complete could looking take where decline with so, lower think opportunity to drill in

Bakken Whiting's And we we that fit our into said the have it portfolio. out are to job totally for so, any on there focused potential that and is look opportunities

Drew Venker

that And, is much out be bolt interested you'd opportunities fit, on? there Brad, there to would what

Bradley J. Holly

we there's like Today, do more so, we basin, We out the think think Drew. really to there.

Hidden with think the the of river capabilities east river. our Bench and you of south the southern it of the what are, well, shows I north river, both

Bakken. in opportunities substantial potentially of our have the geographic of we to areas economic increase think we all footprint so, And

Drew Venker

Brad. That's Okay. color, helpful

Just process? hire but And one the have give the affects COO? some of heard I've – overall, what's I name a few, been some development on made. follow-up on done potential all us how it if changes you a a whether can color you or about, there's more think, to recent organizational

Bradley J. Holly

we to went – standpoint, a asset-based from I model. through discipline-based an discipline a big and from had reported a organization, you think, where just think I their everybody Drew,

our P&L engineers, cetera, Put we've geologists, people, what on collocated we team, responsibility. all together. them give our done et so And land is them a our

areas. we review quarterly P&L so to are our moving And economic of of each a

third to doing to our down so to the taking it really the a quarter operate. just look quarter, we as the results as road, fourth to what areas the that are And holistic need in second we what helps highlight be and well ensure the do key at real

good and teams so And in that. doing around energy excitement the some seeing we're

Drew Venker

a does focus not a then, been been COO And is hiring it or discussion recently? Brad, have something potentially that a of manner – that's really

Bradley J. Holly

top. at at looking structure looking we we're compete. our the We're mean, I Drew. how at the most organization and favorably Yes,

needs And things and so to we've about discussion. talking where table that, all the at who leadership been under all that's report, sit

So....

Drew Venker

the color. for Thanks Okay. all

Operator

Tudor, Thank you. Jeoffrey And with the Lambujon next Holt. Pickering, from comes question

Jeoffrey Restituto Lambujon

Thanks morning. my Good for taking questions.

In on the count optimal of can activity in keep an standpoint rig to resource? mind comment there's or long-term well from the if Bakken, just terms developing you just of the in optimally

Michael J. Stevens

said had XX said think Yeah. it's the range. to in somewhere We Hey, XX Rick Jeoff. had near-term, I

think it it's long-term can to speculation kind a I where as of get.

Some service parties they the to without any of the pressures you. said we can rig probably they who've inflationary that upward best can give of that's think terms view XX in count, get

Jeoffrey Restituto Lambujon

on led any new just on the then And from Redtail. it. data Just a Got completions fronts. those quick on Anything wondering one design changes highlight recent had to spacing any if laterally? or in completions to

Michael J. Stevens

Yeah. Go ahead, Pete.

Peter Hagist

that we well And do out is a number has so had docks better we Sure. Yeah. production could reason This that there. Pete announce on. are Redtail That's expected. that that part Hagist. done We to completions enhance those the performing of the did than we quarter. wells were We of trying this

of have we that all the very were replicate test operators to offset our promising. to the able was stuff using some weren't able we of advancements been but So, that

Jeoffrey Restituto Lambujon

the Appreciate color.

Operator

question next Philip the And comes you. Scotia Howard from Thank Weil. with Stuart

Philip Stuart

guys. morning, Good

of have a you on Bakken as done XXXX But You great the in half all well know levers XXXX many the second self-procurement out pull. job the ended you to sand? of look exploring and White and all costs to there I Northern aren't are

Rick A. Ross

that. We advantage the Yeah. I year wasn't price explore that this explore to and would is say us. Ross. Rick for really there This we'll continue did

now. chosen the so with And we've providers sand stay to provided right by service the

Philip Stuart

Okay.

look could come the these all sand a White yourself. of local that So go time when mines you might on Permian self-procuring once maybe at more Northern back be and

Rick A. Ross

we're what this exactly That's later thinking, year.

Bradley J. Holly

rigorously everything and a didn't it our quarter open We is that, down. hard we'll look pursue make Philip, as driving to structure sense said, took but continuously Rick first at cost just

Philip Stuart

guys. Thanks, I right. All appreciate color. the

Operator

And you. Thank with from the Jeanine last Wai question comes Citi.

Jeanine Wai

Hi.

Bradley J. Holly

Janine. Hi,

Jeanine Wai

question different dovetailing it Hi. I on coming perspective. from a but at maybe Drew's guess slightly prior

the over of that amount cash optionality. few will a of the flow generate next certainly we have Given free Whiting years, lot you anticipate

pretty In provide your what flow the is and growth multi-year view that gassy what competitive what We including of relatively in in some goal can delivering flow, peers us group order goalposts shareholder-friendly. cash and reconfigured you narrow on you your see and free profile names. versus on terms more plan are free of was and peer and down cash color growth noticed Permian of some more to the help kind production proxy, the names it's your as you multi-year diverse

Michael J. Stevens

double-digit internally, $XX Well first say of the NYMEX cash plan. and flow. for is within plan production start That's the growth all, I'll long-term at

So, we we'll get XXXX, perspective, there place. we're a on get what in out when more do. an closer overall we to put But to going definitive plan and that's

Jeanine Wai

very Okay. Thank much. you

Bradley J. Holly

Janine. Thanks,

Operator

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

Kashy Harrison

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

to And would some effort Indian pretty assets assets your in reservation for those if was last the I acre per in valuation. Tier improve the consider year so assets or portfolio in decent X? were X just a an Tier sheet, dollar today, balance you you wondering monetized those

Michael J. Stevens

definitely Tier there. we didn't lot That but A have it lot whole assets. of of would X be Tier a X was assets, non-operated, development left

Kashy Harrison

the well X a could million magnitude type I'm relative line? what potential strong the really looked barrel of of of on sense just and quick just a performance trying to sense you. curve? to Got well, you Mallow then months get or was on that IP think translate a And question trying just versus I performance one it six after to you XX-hour get relative

Rick A. Ross

term, if we've Certainly, IP, type barrel on. falling we I million curves to be you generally, enhanced as we're and say to the probably a little think This as been conducted way that I A type for completions, it's short be X an you. showing difficult by term above tough than long a say really was much conservative little the conservative, our for stronger would look strong I at curve. would we but those as the it. give could appears a early IP what see average

Kashy Harrison

you. Got

type better at looks are curve? it in than million the outperforming near wells term least X So, the the barrel that

Rick A. Ross

Yes.

Kashy Harrison

me. for right. Thanks, it. All Okay. it That's Got guys.

Operator

the from with John And question comes next Sachs. Goldman you. Nelson Thank

John Nelson

versus their accelerate your Kelly, free sentence release Good was also I morning. increasing and to guys Congrats that a if profile on the Bakken to operations about at where trying cash adding already to talk And you talked guys year. of question plans had that's mainly lead Charles of you the that's operated back kind a do point and taking rate something about and on in fifth reconcile half change that to of just you could that with ultimately the the if My to showing guess growth up pace to XX% laid some I rig? just of flow and out appointments. the in us Mike growth some kind

Michael J. Stevens

signaling and $XXX clarification. with capital in plan were question growth that not We for of million our a Thanks our John. production Hello, anything. stay to We rates.

So, drilling we'd to a shift from to docks in year moving Bakken. more time It's planned do the always Redtail the the that. activity to this of

quarter the we and flow we or still expect fairly to remain out. plan we're cash so, our for on we initial rolled CapEx And expect consistent

John Nelson

very was And production what the That's quarter? operated Bakken helpful. in then

Bradley J. Holly

XX,XXX, Mike?

Michael J. Stevens

Yeah. XX,XXX.

John Nelson

me, just remaining the the expectations for one on last for then timing Redtail pops? And Perfect.

Bradley J. Holly

The the There'll remaining quarter. Redtail pops be in them. XX second of will be

John Nelson

Congrats on free and Perfect. flow turnaround. cash the the again

Bradley J. Holly

John. Thanks,

Operator

Redtail to or line transaction? clear how there. we operations curious times need an before those next be times. occur? terms of the up Good Inc. in sub-X A you. a do Grigel in a And there's - see down sale, Capital. around the need Capital path Bakken Paul order comes of commentary to Bakken Is Obviously below involved, Grigel Macquarie maybe strategic just Macquarie getting Redtail thoughts Thank Paul order question potentially there of your the with I'm from that morning. And assets other interest Thanks. at (USA), lot X

Bradley J. Holly

a that's always in question. Paul, Yeah. – perfectly Yeah. great Timing the real world. work doesn't out work

how shareholders. so, And looking the to maximize to we're value at

to and And so at everything those with funds to do. color, Mike? same we're when try available, to got Any what at become the decision the to best that evaluate going we've time time, make

Michael J. Stevens

look to Take $X.X you get at We're $XX Yeah. NYMEX, billion, times it. that's X we're I $X.X trying Internally, $XX, in we to at times, billion our it's close $X.X today. EBITDAX get X, it said to a at billion.

Inc. get (USA), at we level is probably to point, - have if some So, step Macquarie to Paul that Capital chance. Grigel the one

at tangential then that P&L asset follow-up a on rate good with a as calc they then the the along No. of possible waiting their asset-based And Okay. to to the drilling specific referenced, would are well? that, That's the that incentivized new on alignment second, and the of with calculation level as that? to return the the And teams and know. get in of goes XXXX it be you P&L plan kind

Michael J. Stevens

I'll take the first part.

call I'm on calc try going here. the the So, explain to not to that

look the whether cash And pretty the the very it's That's all look the it's think costs future calculate during completed I how return. of and at wells look the And rate at this prior and year all year. reserves, flow, or at straightforward. we general year, costs done.

part.... As as the far second

Rick A. Ross

aligned. if parameters, the to we're they'll into I'll and incentivized take executives second certain the going down that Paul, are part. drive the get Obviously, by organization

certainly is we're what And leadership our Yes. our Macquarie targeting hear. you. to Inc. - optimization Great Thank and (USA), Grigel so that's our both return, well with portfolio of Capital as employees. as directly Paul

Operator

the Thank comes Parks Palmer you. Coker And Institutional. next from with question Noel

Noel Parks

morning. Good

Michael J. Stevens

morning. Good

Bradley J. Holly

Good Noel. morning,

Noel Parks

thinking or you've Not first as as in, in more talked productivity using side, packages side other some in that an running about more you the these opportunity their at everyone the and operations? see properties these Pete, ideal doing you've is been far experiments on and or on have efficiency been the there be other interested diverters about what's you the typically how be available what guys my of you I'm might out operator question available as Bakken. look do was might

Bradley J. Holly

and that's I I here striving company Whiting, we're Noel, question Yeah. great think enduring – both. to and be build is something great do an we're that at to at mean, good

so what And We're look in to market, taken potentially the a not at at on our really entire portfolio. the trying have what sense makes basin. we but just is look holistic

win very do both. to And best strategically. the we way to it so, think But at we're looking is have the opportunity

Tier cost and enhanced So, operations our multiple build good it we places can Tier pick both and some in up sides be opportunities would where inventory could in LOE gives we our able styles to we lower with where of If from that ways X it drill teams PDP can structure. find X us to we We're complete that. think shallow (XX:XX:XX) to wouldn't our shy and And on with inventory win. those looking and away at completion production, together, I like certainly decline. go

Noel Parks

focused had think But of And some becoming I thoughts and as EUR basin. secondary pilots wonder all-Bakken curious just in I been I have that if heard a anything I the have Great. your continue any you if process that company, status. in you on know an had was Great. confidential on thoughts on that? you just production been any there

Peter Hagist

Williston that. do. there. out been pilots in pilots There's Eagle we're some some There's studying some been the successful successful There's and in down We been testing the Ford Basin. all

We some area. have that expertise in

So and big some that out we yeah, But, if a bit there's a advantage. of make target gives upside. there us, little breakthroughs can a think, big I obviously, there, there's

Bradley J. Holly

recovery. factor. Bakken's We a a we're out more and know there's We than tremendous recovery not the get know at getting think oil resource the to that they that

Noel Parks

And to Sure. understand. just

might plate at plenty primary on the maybe yourselves or production. just five could I So, that sort three, looking your thing you not, be like years from year? is like four, that there a be two of more one, in mean,

Peter Hagist

our going Right. evaluate development we program have our those to techniques. understand we're on through trying but and now We're effort DSUs trying right primary optimize where an to

say I'd it's going in So, on parallel.

Mark Sonnenfeld

Noel. Thanks,

Noel Parks

Thanks a lot.

Operator

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

to would I for closing So, Eric to like Hagen the call return remarks.

Eric K. Hagen

XX will JPMorgan & and XX, the Pickering now XX to closing Fargo XX, Holt Wells call Whiting Energy over Conference West and XX I'll June Global participating Citi the Energy on Keith. the Coast June be Energy Holly Tudor, Conference remarks. in the May XX. Thanks, Conference Brad to for Conference turn May

Bradley J. Holly

the on In closing, and our I'd this strategy as gain their growth employees for building shareholders for quarter. balanced performance remain I delivering cash thank free would disciplined like support. our and like Energy teams to We hit our to thank flow. committed new their Also momentum to Whiting's is of field.

Operator

today. Thank you conclude question-and-answer session. does This the your participation for you. Thank

You may now your lines. disconnect

Eric K. Hagen	Whiting Petroleum Corp.
Bradley J. Holly	Whiting Petroleum Corp.
Michael J. Stevens	Whiting Petroleum Corp.
Rick A. Ross	Whiting Petroleum Corp.
Mark Sonnenfeld	Whiting Petroleum Corp.
Peter Hagist	Whiting Petroleum Corp.
Steven A. Kranker	Whiting Petroleum Corp.
Neal D. Dingmann	SunTrust Robinson Humphrey, Inc.
David A. Deckelbaum	KeyBanc Capital Markets, Inc.
Brian Corales	Johnson Rice & Co. LLC
Michael Dugan Kelly	Seaport Global Securities LLC
Jeff L. Campbell	Tuohy Brothers Investment Research, Inc.
Will O. Green	Stephens, Inc.
John A. Freeman	Raymond James & Associates, Inc.
Asit Sen	Bank of America Merrill Lynch
Gail Nicholson	KLR Group LLC
Subash Chandra	Guggenheim Securities LLC
Michael Stephen Scialla	Stifel, Nicolaus & Co., Inc.
Drew Venker	Morgan Stanley & Co. LLC
Jeoffrey Restituto Lambujon	Tudor, Pickering, Holt & Co. Securities, Inc.
Philip Stuart	Scotia Howard Weil
Jeanine Wai	Citigroup Global Markets, Inc.
Kashy Harrison	Simmons / Piper Jaffray
John Nelson	Goldman Sachs & Co. LLC
Paul Grigel	Macquarie Capital (NYSE:USA), Inc.
Noel Parks	Coker Palmer Institutional

Chord Energy (WLLBW) 1 May 182018 Q1 Earnings call transcript