WLL - Earnings call transcript Q2 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 Second Quarter 2018 Financial and Operating Results Conference Call. This 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 now will of call Hagen, President company's Vice

Eric K. Hagen

thank Whiting welcome XXXX morning, Keith. conference Corporation's earnings second quarter Well, to call. you, Good Petroleum and

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

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

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

Bradley J. Holly

consistent start by Thank timeline. with you, updating Redtail our you Eric. prior I on off want to

our the flow expectations thorough process. The reflect power We received cash asset. bids not a have achieve did completed of the or

couple to yield a after year will $XXX asset curve. XXXX to oil will forward company next of backward dollars of the date, continue investment production hundreds in years. It calendar stream hard With relinquish high dated out of is oil the million a millions deficiencies over and generate to turn the and

at run and continue to cash the the keep not asset we'll optimize have returns. invest We the do to We it time, and asset plan asset cash flow. Redtail free continue to to flow to elected this in but maximize maximize capital to for operate additional

thank for guidance I great Now, let's would to quarter. and quarter to continued Despite on another the Whiting weather free this second employees to challenging quarter. we like end production high at cash flow. in all the of wet move generate robust spring, the came

upward to have We strong reflect performance. guidance adjusted production our the

build organization the would days. industry-leading to through The paying celebrating company Our X.X a communication. the by efforts from XX X.X to record based I achievements off days like in to are XXXX of start days decreased times learning second have average off to including and our of TD in spud enhanced quarter a teamwork team. drilling

team performance XX% to average on quarter Not second side, our Our completions. as decrease right-sized the with represents be outdone drilling quarter-over-quarter downhole innovates our bits and have an pioneered motors. engineers completion mud

this approach enhance our DSU in level and press in completion morning, posted mentioned X.X our our to presentation As returns. continues detailed our generation release

by efficiency with which able with future fits This Hidden more cost acquisition corporate was reduce to keep helped achieve net of perfectly growth our closed industry-leading well. of results delivering Yesterday, we and cut also team by cost and that free per operating consistent approximately of while well acres and Eastern strong our cash Polar stimulations Break capital Bench strategy $XXX,XXX achieving Missouri the use per in Our volumes. to should XX,XXX the flow. areas. This is optimization profit production reducing the north effectively our appropriate well and water zone $XXX,XXX while through lowers

drilled with first net depicted the trend acres. prolific Forks announced the well net is Mallow XX,XXX and XX with quarter. during on acreage lies only we lightly Bakken in the corporate our As wells The presentation, Three the across acreage

We achieve we turn who of the superior purchased Bakken can a additional pricing take on conviction was is the play while can an core perfect to this new the a Whiting add consider halo this head opportunity. with an true because value the this now is transformative because what which type be substantial is and our of portfolio in the mind, In around acreage. it count. in similar unlocked prolific acreage results completion and and North no analysts a backyard is at opportunity amount is expect It our to we at attractive through the prime our then of to to any Stevens over bolt-on price. our opportunity cash best commitment drilling sheet. It Bakken. application this had believe strategy to strong add review This rate the the will oil-weighted rock. on the call America tested intended acquisition will style We that maintaining free high has fits it provides there price, investors questions. in not right-sized and This quarter flow balance bolt-on, the Mike return of attractive, It using being most inventory newer It I'll proprietary additional of completions our methods. acreage. significant where most and by its shows of inventory example our attractive the of your with is briefly is

Michael J. Stevens

earnings share exceeded Operating Thanks, $XXX flow Brad. by of during million. quarter. cash per We CapEx generated the $X.XX positive adjusted

of three the of generated million quarters, cash CapEx. flow have past Over excess $XXX in we operating

significantly end conference the below addition, G&A up Operator, Q&A. guidance. end was of open please for In the low call LOE low at of and guidance the was

Operator

Yes. you. Thank

the Neal also our recorded. we being roster. question session. hold begin this Please comes event will Please is note while assemble first question-and-answer Dingmann now this SunTrust. We morning's with And from

Neal D. Dingmann

could position you there, see you looking area moving positioned I slide will about that talk bolt-on, see including got at or about year? the rigs stay now the do throughout Good moving it generally X, those thoughts the entire morning. the you've same your they Brad, shows there rigs around. where in

Bradley J. Holly

Thanks, great Neal, and question.

have doing a can putting excited get capacity of can as the we our there that move areas as this we lot rigs rigs over reason see takeaway to Hidden very over our the the by test and acreage. in and position We're you to our Breaks East acreage maximize Tier spread and into that returns we're and really test stuff gas volumes. As is our fully our out area are both Bench X well new

in plan drilling our to out be well. we are acquisition and we so, moving first plan of the new that first acreage quarter to priority And XXXX, our up the – in list be on

Neal D. Dingmann

just other of the are operators notable lastly, just your wells then, last very months. number like And several offset in here

type thoughts here I wells you that curve, thoughts Your which those, you've recently about or would to if type was guess, outperform curves? of any set continue these just curves the of boosting set the versus, performance talk – seen about could type as well sort

Bradley J. Holly

Yeah.

XX I on just think curves that's looking continue at well see in. early Neal. process of area, you these to the Mallow see also slide we certainly update performance. Hidden to that. new in Bench a question, looking almost the We're our days at continue on great wells. in The we and are great as X, It's But we

early. – first point cum XX but in still a production months production three we're the We're more in, got at days. significant we've XX% this almost So, XX%,

the through seeing situation. off. wells pressure And performance, at not program updated our so, fall are we we're We're curve and behind of lens wells' certainly seeing an nice looking the XXXX the type

Neal D. Dingmann

operations, Very Brad. good. Nice

Bradley J. Holly

Neal. Thanks,

Operator

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

Drew Venker

Morning, everyone.

Bradley J. Holly

Morning, Drew.

Drew Venker

the Brad, bids advantage I follow on in to asset in the weak for on maybe like your end coming you're and taking just that market with taking of assets. The that. it wanted below bids seems up the expectations, of opposite Redtail sale,

additional halo interest curious have bolt-on much to acquire core properties be other similar and as parts, area to it's it, to described or to at or appetite you? you'd particular of So, you've other hear maybe this in the how bolt-on looking is Bakken, what's what you

Bradley J. Holly

our potential operations apply to the a acquisition feel we'll fits our understand great today, being packages better announced strategy Bakken. in at transacting our package acquisitions. if basin We One, position, consider it that in Yes, question. acreage the best But and we and to the it we drilling our has of competition. we Bakken current think looking the be compete helps stock out consistent We program there. can with think to fits looking Drew. that. be should that We all in at That's completion well us we the and other current believe should the with our inventory the Whiting

we our really out the prosecuted we there performance so, Gen an like place large do be to be better much Bakken that to out. get more of think Based X.X it's upon incumbent we're able mapping, getting way. to on area that that a there's And the technique oil acreage substantial with geologic completions the in apply and we see us to detailed and feel right completion across

Drew Venker

Thanks Gen seeing pound Do for frac XX mentioned. bigger you you're have there the confirm you the And shorter data Brad. with the a than color, completions with the million follow-up completion? on just actually to X.X lengths completions

Bradley J. Holly

that. Rick let comment I'll on Ross Yeah,

Rick A. Ross

Good as of got each We've certainly completions. development question models of areas. our Yeah. calibrated We well. for all our model

and each So, really feel and length on based for we well frac appropriately. situation, have try we design spacing good that a and that do design well specific

if know answer your answering that but I'm that. the is question don't directly we think on So, yes understand I length frac I

Drew Venker

a And bit shorter? they're

Rick A. Ross

correct. That's

Drew Venker

Rick. Thanks, Okay.

Operator

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

Jeffrey Campbell

Polar effect specifically recently. Good wells I've The diverters are positive meaningful most that morning. encountered showing from

there. solution a in of chemistry Three be one will completion questions to ask this couple does One, to Bakken? have appropriate diverter the the size to for this wanted So, Forks? be all fits be do imagine portions going different of the a altered you second, or And is

Bradley J. Holly

three chemistry, obviously trying approaches We to or that two in the different zone evaluating to there second Three the think similar and applies we apply think better terms material get using complexity of the first to diverter buck. our are the and but we for the one of Forks. continue gives more evaluate the zone from bang either I be Forks. each create believe are vendors' the to I'll Three us They're types we're think and take that maximum we'll different and it beneficial across the in Bakken distributed We the the completing. question stimulation them. will differences actually regarding both And

Jeffrey Campbell

want target plan of year a decline or I you That's you characterization rate free two kind Great. have Okay. cash. mean that to that throws Brad, understood. off I It is sounds I do in as make next just a and mind? the like to Redtail decline operate sure helpful. over an accurate managed

Bradley J. Holly

I think that's fair.

think I Bakken currently, We return projects of consistently highest we last in are said were results, with they're our the we going and that have to wells competing inventory. round today still better on Redtail encouraging portfolio we've invest our and that got our not while

are that we'll Redtail we as investment flatten we'll ourselves that see as decline be rates continue Redtail and current hard and we oil exit very said about performance of can. to work so, at the can go to barrels that as is if to focus keep and wells than to our our existing optimize to rate CapEx do in are before possible with XX,XXX those channel much our fourth to – high. Bakken. well to oil going And better per the on we that day as We've equivalent quarter team challenging to decline much working And,

Jeffrey Campbell

Great. it. Great. Thank you. Appreciate

Operator

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

Brian Corales

preclude Good impressive. get adding drilling so you're a what the – in, guys. road your there? thoughts sixth Does that down that from drill fast, pretty of look you the wanted does kind because to I morning or are just rigs times

Bradley J. Holly

question, That's a great Brian.

the As identified, up you've the speeds up time – cycle can certainly certainly the as CapEx. you and speeds accurately process

these same so we're same very the looking the that wells with have. cost look forecast amount more the and can as times year originally getting cycle activity down was we're at this forward, But under we budget. current wells more that hard do so, that to get we we believe and And program certainly we into our working of than keep

need we And our so, forward going our go activity that's to many rigs will XXXX. be calculation what into into on and moving how

Brian Corales

can I maybe on early kind you what Okay. on it's but add? acquisition. the all that And could inventory a of us one just ballpark give know

Peter W. Hagist

is Sure. Brian, this Hagist. Peter

currently on carrying think And It's the lightly we It's mentioned, Mallow we're proxy acreage. area, the Brad wells our drilled, DSU. As really for acreage. XX well. about like per in that Breaks on the acres, Missouri is trend XX,XXX and with six East good a relatively we wells

Brian Corales

Thanks.

Okay.

Okay. Thanks guys.

Operator

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

Asit Sen

thoughts micro. you have what I it provide or morning ones, does quick oil into Thanks. Redtail Good doesn't? at guys. any price play Can first come two on on

Bradley J. Holly

last would plenty just I and higher within is getting our tell of of economics. And our generates economics Asit, positive So B you wells A And like NIO there, post our a we inventory portfolio. positive on that have there, right competition now, returns. in relative we our we're Bakken appraisal feel very

highest our and to And so work so back to to particular stick I is Redtail. optimize possible. to our grade high work returns there to a put it assets CapEx at our this the we're us that commodity going that portfolio on makes that inside invest on and price to We'll program go in wouldn't and to time, continue say continue Bakken

Asit Sen

wondering Great, in how for caps November could the provide if Brad. indicative the set just think updated and on macro, falling do you expansions planned and industry up constraints? us processing And your plants flaring on is you thoughts

Rick A. Ross

in rates ahead our Yeah. to will one. needs providers This to capture we the Basin. the we're exceeding capture work continued real I'll are requirement that those rates midstream It or closely We've to planned meet XX% is rates. capture in and rate with XX%. up of Williston enjoys all we I go communicate to but going and would meeting to that to on sure comment November. I'm Whiting currently current make not of going Rick. our the the industry the say, is capture highest one answer

Asit Sen

you. Great. Thank

Operator

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

Michael Dugan Kelly

Hey, guys. Good morning.

Going could look Redtail, flow was you hoping quantify, mentioned to for would free back I to you Brad, cash you optimize here. that

asset somebody free will look years. If could Thanks. us couple you flow come appropriate really like held could the along for if pay and of perpetually curious what an it? kind next price for this also give if of that's a cash sense And the that is sale

Bradley J. Holly

Sure, Mike. Thanks for the question.

this this we'll As cash $XXX the last comments. asset year Redtail. it's is mentioned, $XXX free And another we'll true in quarters you've the generate generate accurately the million million from from over in almost After deficiencies, my flow $XXX two of year million. –

And cash deficiencies And here oil that years. if of in a decline high moving stream so, stay and couple off next can – fall it's flow we price nice quickly prices forward. hold up, our fairly the

our think so, it's can we trying we as And asset continuing cash we've to significantly an flow, generate – free that to debt try to stated. paydown

intent move future, reducing we certainly asset sometime on it the we're get be you as Mike, say, price if very so, We'll asset a the right if for and portfolio. and And the paying non-core it out available down use of – willing in But leverage. is it's us we'd for that. certainly still to the debt for that

Michael Dugan Kelly

acreage across really be and expect position kind acreage of on And back Mallow Great. wells get Okay. wanted acquisition, the we circling would if which lookalike entire sense this of the outstanding. consistency Thanks. a to to the just could

Peter W. Hagist

Hagist. Yeah. Pete all extensive This database geologic Again, of covering the an got is Williston. we've

our think of course we So, we customized be the the benefit geology with there. we well of could good think on a And up it the with Mallow acreage. have It understanding will we trend is majority and quality high the acreage think of we completions.

Michael Dugan Kelly

Appreciate Got it, it. guys.

Bradley J. Holly

just I'll Mike. add Sorry, there.

Bench what giving think just here the If with that's up is we at wells what type in completions I not there the page of and a X the amount we're line really million show on you Gen well. one say had that and red I curve, rock. We're look historical X, trying performance barrel Hidden X so would I area, were. same our mean the is XX that's to

one I that across in acreage as is other but Hidden position some And what's the just seeing that our better over wells of so the in so, Bench, think impressive seeing well. seen and rock's places And We're not we've from we're only same. we've DSU those substantially performance.

we're on And ask, past acreage extend localized and to out. question, does as that results accurately carry over And real as larger of date, that's as and this well, that we is can and going continue more X.X uplift But than the completions far that encouraged think by applies XXXX. Bakken. year the trying far our existing And out how we're by forward seeing in more that the a seen we well part looking to how as into areas area. the we're we that performance. the be apply significant to We own we've you encouraged so, to a very across Gen think

Michael Dugan Kelly

Thank you. Very good.

Operator

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

Michael Stephen Scialla

Good morning, Brad. Hey.

quarter, led Just significant looking than looked quarter for for rate to the at year. for the was the little higher it that? the the that run Anything CapEx like expected a that

Michael J. Stevens

nothing well, That's really really our to expected ordinary. drop quarter. CapEx to little in at and probably the then as actually quarter closer There's in Yeah. that third million fourth $XXX come out a and off the of the towards the where in we

Bradley J. Holly

Yeah.

I call on of had on online bit XX is, think wells half the XX we the wells the We've little in in year. back talked over last a the got the first of half we coming year. about coming

getting getting lot turned that quarter second And so, of a of was in wells lot here. and on August spend those a that, July are

big And the you're XX quarter. in primary so we that our pads, we all did reflected second well work the completion And pads of had CapEx. that some in seeing

Michael Stephen Scialla

Got you.

quarter. benefit that for way about of So, quarter it? think to third that right CapEx really to going production the is some for the Is second

Michael J. Stevens

Correct.

Michael Stephen Scialla

next want the months, over at thoughts Looking there to Williston I the for get your the outlook well. to XX your Basin as differentials – XX

Bradley J. Holly

from actually quarter the because in effects were differentials fourth some of year. last in of first the hurricanes quarter The lingering low Yeah.

So, the And we expect capacity crude takeaway before, East, there's between should pipeline total guidance forward. is million North, discussed South, rail. normalized well-positioned But almost barrels takeaway. X.X for can a We a the going we of right more production and think day and current take we've day. Bakken now and what is X really million is barrels West

of capacity. lots there's So, excess

positive differentials future. the foreseeable So, expect to we stay for

Michael Stephen Scialla

is last follow My understanding wells. those – fair Apologize West. this that acquisition. one Okay. mentioned the but an you of hitting West. just going one it trend detail up the issue to more for It concern with on is bit in Wanted on than you the water intended, an in a to maybe be area the Is going not water to was was formation issue was the to acquisition? a Mallow

Bradley J. Holly

characteristics when we We're Again, really similar from would see on that that's properties play, look core Mallow, the No. reservoir this Southern along not you boundary at water. of similar as area about really the reservoir the extrapolate the area. Mallow geology, out in so trend we concerned as the expect we with very

Michael Stephen Scialla

you. Thank Okay.

Operator

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

John A. Freeman

Hi guys.

Bradley J. Holly

Morning, John.

John A. Freeman

– strong the Polar wells. on the First,

You the I'm zone. wells? all pump and try keep fluids to was those Polar with considering your if on experimenting more in proppant just that rate of curious frac talked and previously about done actually

Rick A. Ross

This is Rick.

are that. We doing

continue experimenting we'll and We to. that are with

So, the answer is yes.

John A. Freeman

Redtail, materially fold? the how the in think the Okay. about how any my it you way try I question. your last that then flow kind to decision of And sell it's just does in completely of it the kind you as to generating. all decline with – XXXX just change given guess manage asset, growth cash And not the understand given on On

Bradley J. Holly

the John. for come us question, early to guidance. It's a out little with XXXX Good

better seen have longer. our went of flatter in decline yet. them some on Redtail Actually, They've performance haven't stayed wells. we So,

road. maybe We're over third the XXXX for we in watch to as barrels quarter, little a here try we'll equivalent them that wells so to the oil – those continue averaged XX,XXX quarter. going and we to the saw further bit continue and optimize And you down quarter be the providing guidance through

John A. Freeman

it. Thanks, guys. Appreciate

Operator

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

Gail Nicholson

percent on project and bit morning. even talked wanted and just wondering you on the there could cost was what to from further to regards returns in frac that reduced more improvements results Sanish, learned high Good and CapEx. at you clarity when infill really if about I incremental about provide I project? quality the talk little a you of

Rick A. Ross

the for Gail, Thanks, Rick. question. is This Sure.

we I that really development from development had more the So, cautious say the in frac future around understand our first in better. of we're protect. away how we go probably and that data comments center being efficient around capture would fairly would far to

we up we been wells And other water we And I it in grounded try fairly that parent them was and we're to a the to charge can had learned we protect we into can like that unit, bit the that ahead saying think graph the piece spacing So I that. of improve them little time. successful think think in those see a strategy feel by you there. from pumping I the we've think

some of optimize are we the in Sanish. those So to things activity learned that can that we future use

Gail Nicholson

able at reduction that then, to And looking Gen you Great. is that the that achieve to across the the utilization the X.X Polar and applicable of or Polar the area base were X.X? unique savings, design with is the asset LOE Gen completion and water

Bradley J. Holly

applicable I our position. would say acreage it's across

than a know water you higher have As areas others. cut some

very are Some low.

applicable, able think impact effect positive different it's would for it I to positive. we've area, I but that the it's each very in that have and a So, think been

Gail Nicholson

Great. Thank you.

Operator

you. Deacon Energy comes Raymond And HS question the Advisors]. Thank [HS with from next Advisor Energy (sic)

Raymond J. Deacon

guess, ensure I beyond any terms Yeah. don't to relationships morning. gathering and Do had the there potential for Thanks any of a detail question that you midstream a you the bottlenecks see question. XXXX, what Hey. of taking Good bit like plans in develop? to make, and little would about on I transportation. and

Bradley J. Holly

takeaway. the just I over went Sure. crude

So, see any... don't we really

Raymond J. Deacon

Right.

Bradley J. Holly

tightening is towards will out. be early year. gas next the with going the tight. this takeaway crude year. of end ...issues tight Future It gas, It's

aware well are constraints We where of the are.

a of some units expanding thing one manage But think other being that. bringing up manage So, in to total I right foot of capacity We're our we've now, portable is mind is in million we're plans the about keep and strategies added. midstream plants put there's some there to lot cubic and that. going of expansion on to gas XXX

So, year-end should day, and that X the capacity over think we takeaway address... by XXXX, be Bcf will a

Raymond J. Deacon

Right.

Bradley J. Holly

kind see we any ... that right of now. tightness

Raymond J. Deacon

Great. sub-X how you debt to cash times Okay. to in EBITDA, your to terms will And growth look flow? of you balance achieve once relative free

Michael J. Stevens

Well, in we see ourselves of times getting X somewhere target under XXXX. our

So that's one. step

Raymond J. Deacon

Okay.

Michael J. Stevens

After to to really that, it Bakken cash initially, have debt bolt-on. to flow. that depend able going idea But if what's We come times. continue at isn't see continue going to to just to in that. on hurt paydown many worry about point get opportunities free how It the have as we be is we X the Then our way time. within to under we'll

Raymond J. Deacon

Okay. Great. Got very it. Thanks much.

Operator

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

John Nelson

my morning Good questions. for and you taking thank

potentially as Redtail, interested some a you to the all before Regarding JV in way just potentially have decline using would partially Pronghorn still third-party guys farming DrillCo but capital? or that entertain used you be structure structures, maybe mitigate the (XX:XX)

Bradley J. Holly

John, we're not or currently this at that contemplating looking at like that time. anything

John Nelson

framework about your bolt-on guess into kind used us it on between appreciate enough. capital potentially then was Fair cash can an allocation you free just walk contiguous. back you decision buying I allocation through the that you flow? your stock? thinking I that And of in own Can move of as versus bolting the

buy there. your completion you there portfolio opportunities had for optimization You but the of mispricing own the also kind think all that back was potential to market

internally allocation through walk you all of just process? So, capital you how evaluate kind can that

Bradley J. Holly

some think Stevens And that Mike I color great I'll that's provide a John, maybe on both and and I'll question. start.

about I in at date generated here. we detail to cash free million we've think flow portfolio the is it looked we of way $XXX our as

that's of half special really best add saw acres opportunity fits saw to And we based real paydown. about going that to debt the on us current opportunities about perfectly we an opportunity XX,XXX that lightly been felt the like a really some – we of something for here, recent saw as quality is half high so, that area, And And we you've with to heard provided our drilled. results inventory. in we that, that's is

of We to a our and we a the on really heavily debt a have organization still reduce obviously that. debated going forward. special kind paydown so, that And bolt-on desire really that nicely and this was to felt commitment as fit the strong leverage we

those to time And do the intentions. at both we're strong trying so, we're holding same and

Michael J. Stevens

add I'll on.

it's that that the now, has the as right focus at back. had, really where buying stock right that's think With about quite reduced. is at attractive not getting to where run There now, debts that our is – our

John Nelson

Thank questions. for my you Great. taking

Operator

from Okay. And you. the Joe question comes Allman next Baird. Thank with

Joseph Allman

morning, you Good competitive data bolt-on you. was there Was negotiated that Could Thank deal? was the a a everybody. about talk Williston Basin and or process? how room it

Bradley J. Holly

on room was competed that. Joe. process. put No, It there data a It was out room process publicly and we in data a

Joseph Allman

think you bidders then Got making what precluded the is adequate Redtail, from that bids? it. on Thanks. it And

Bradley J. Holly

a mean, that's in don't know to think I was I hard answer, I other – a peoples' Joe. that's minds. question what

middle substantial I The in of at I really rising dated do runtime. nice that it a think the into is plant at Production invested. the a market. plant capital there's oil upgraded, has rising runs position been asset XX% and think that in been was the gas backward had curve. a

I what strip. think a your future view maybe oil price on lock-in people on could affects really forward

like free lot interest. thought to what we could receive us but make move we more We had We really of make we had that we forward flow compelling moving felt enough it some so activity. a We cash did ourselves was of versus forward. operating And a nothing bids, lot received.

Joseph Allman

Great. That's very Thank helpful. Brad. you,

Operator

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

Noel Parks

morning. Good

Bradley J. Holly

Good morning, Noel.

Noel Parks

wondering, was the Yeah. stuff I about other have interest acquired? any non-operated I of any the did bolt-on. a questions couple you did have you in

Peter W. Hagist

the small is operated. Yeah. interest There's of amount of it non-operated a majority but

Noel Parks

is lightly fairly of sense guess I or drilled, a trying what used. completions had curious of sort Okay. was they of And just was sort of acreage of what get area sort I since to era I the was over what

work lease everything on this by you already do production any if sorry anything, to but And held already commented still? or

Peter W. Hagist

There Right. is of in Noel, new the are there in acreage. some older held Most the production. not other There that test actually some of area. are completion completions by acreage holding in any been four that XX% to old. years them zones are has three

Noel Parks

whole of to for you. anything about sense the eye or a aware have one. get advantage region, people whether have how could are into consolidation be of wondering than an last that much position little justify as that premium sale? fits my if footprint, with a other Got And And category? up area? over guys of your to the think might you trying just just that's I'm complementary likely bit And a particularly able there's so, you on be an of Bakken Great. stuff other just you you more to in in current that your Talking a things

Bradley J. Holly

to being just I performance. think, do put in trying is in – that you've Noel, hopefully seen as drive trying we're we're our what position to efficiencies, ourselves and a drilling

You see that in our completion performance.

You dropped $X that what that proud driving Rick's doing below has BOE. our per mark. that see on down very We're the LOE group's

our run with it consider could things might us put But the in trying we And look opportunity see we're position. or to be efficiently existing and that and lie. a around efficient to us, as what see be as own opportunities a most continuing fence our an think so, to to in – we're those puts the to And able us and do to our portfolio. look great over position try to be going where possible business we position and on possible in

Noel Parks

Thanks. Great.

Operator

Thank comes Capital, you. next with Wangler Jason the And Imperial LLC. from question

Jason Wangler

Hey. Good morning.

as your quarter the bit than and forward on we on maybe wanted the expected look outlook get little Just maybe to NGL, opinion a that? in your was weaker pricing

Michael J. Stevens

had pricing back NGLs, probably bit quarter weaker knocked the It pricing quarter. second third Most that Yeah. a about for March my so come is the a quarter. I'm second in our and XX% of little reduced now the The and was little price has that of significantly we model from NGL bit on. I've fairly using, XX% February the and in propane, from April and internal where into

Jason Wangler

turn I'll you. Okay. back. Thank it

Operator

Jeffrey from Brothers. follow-up next the And Tuohy Campbell a you. of Thank question is

Jeffrey Campbell

for project I'm to bit show define Sanish infills return production parent back you a Thanks just lest to the the it. and me to Thanks. I an how increase protecting in. wells the infiill parent appears or came Page expand on line. wanted letting concept on in after ask misreading the little just since to XX you

Rick A. Ross

Rick. is This

and apparently to I the when So, area offset wells, wells, be it's during seen of talk performance of the completed ultimate from better parent of in wells that the are parent new as the to we What wells about the you've also when wells wells. drainage suggests protecting the stimulated really terms we the the parent appears production that new well. the reserves parent increasing that stimulation

pumping them the improving we we're well. as and the and water protect the then wells parent we in stimulation by believe during So area drainage stimulating

of So, us it's a bit landing little there. for (XX:XX) up

Jeffrey Campbell

this Does fracs able said that at you little And to thought really that – little from when Gail's were to fracs to be bit more you you that those referred forward you question, about a think when going the time. well did way maybe were you room parent uplift answering frac? or you you aggressive encourage conservative could you have you more with the the bit a

Rick A. Ross

conservative to We and had wells a did being away was we went I far frac more conservative we protect referring to. and from What than in new maybe further the we were how work. was little

was costs. So, future or is like this, would have saying what wells pilots fewer protect to do frac which save in I we development in would

Jeffrey Campbell

it. appreciate I color. the for Thanks Okay.

Operator

question. the one please. Hagen, And to that return call last Thank We'll you. was Eric the

Eric K. Hagen

EnerCom closing thank Yeah, XX, XX that, and August participating I'll the XX. in to turn the Brad will call Summit, the be over Mountain Holly you. XX and also Rocky and August COGA in With Gas remarks. and Conference, Oil for Energy Whiting

Bradley J. Holly

In closing, like to employees I their would Whiting support. continued outstanding like thank efforts to shareholders thank our the their for would also quarter. I this for

flow. on our We and strategy will continue cash balanced to disciplined growth of deliver free

Operator

Thank you. attending today's conference That you presentation. today's concludes call. for Thank

You may your now disconnect lines.

Chord Energy (WLLBW) 1 Aug 182018 Q2 Earnings call transcript