WLL - Earnings call transcript Q3 2018 | Chord Energy Corporation

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Operator

Good morning. My name is Andrea, and I will be your conference facilitator today. Welcome, everyone, to the Whiting Petroleum Corporation Third Quarter 2018 Financial and Operating Results Conference Call. The call will be limited to 45 minutes including question-and-answers. 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 go Please ahead.

Eric K. Hagen

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

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

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

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

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

Bradley J. Holly

record E&Ps best equity and to a the start our reservoir Tim banking, He complements I at private by engineering the want team. in the with has Bakken. running backed strong has to a subsurface. on you, Thank focus background executive being understanding focus on track also Tim strong in Eric. off welcoming, Sulser, a our which

near-term are planning Chief and with our long-term strategic will Strategy Officer, integrated goals. our efforts Development ensure As Tim

your Tim He today questions. is excited to recently on on as answer of already had help and Some we him call the have met you the road.

capital sticking Before we off review our and discipline $XXX CapEx, our get would maintaining million we year-to-date. like to scorecard with started, I Starting our with are budget.

quarter grow will prepare As come to the fourth Production in Free our large XX%, to a quarter. guidance, the we the and continues expectations will exceeding XX%. increase improved quarter. drive is we have improved of significantly strong fourth range our realizations by have detail, forecast our on continue on we continue because cash Mike pre-spent flow. within should in proposition deliver summary, CapEx XXXX, pads production to and cost we In that flow by strong fourth of because cash while growing realizations. to and cash down reduced value cash generating Since price costs we free decrease

quarter Production of and low-end came production the hedge crude how incident Bakken contracts our on the basis margins per forecast quarter. DD&A of team Mike teams grew more will second BOE our by hedges. place part quarter Moving underpinned below levels, exceptional maintained the we forward. The a with at accelerated these on that in X% risk we a results, to quarter on adding XXXX fourth guidance. give X% contracts has and deferred despite came also to reduced BOE in and risk terms focus improved per this tank G&A new and attractive pricing realizations in a LOE control third strong going and over and detail that results guidance, put our over on production. cost quarter. battery delivered quarter-over-quarter increase in third laser the

cash discretionary $XXX trend cash CapEx. CapEx. flow quarter Whiting flow XXXX, Since team's quarter. delivered flow cumulative the This resulted operating in cash Our a third our free exceeded fourth cash discretionary continues strong has Once again, flow generation. efforts of in after of the significantly million in of

ahead, we forecast the quarter project volumes strong lower X% grow Also, value than we fourth building CapEx are Looking significantly Production have been quarter. to see sequentially. in in and creation. third the

So, attractive building of terms the cash growth Whiting a sizing free generation. is and for also to development. fourth in flow up production be strong quarter future very is foundation

As you Sanish can completions. fields reinvigorating Whiting leader see the executing highlighted Generation X.X presentation, large accretive to multiple is release press from and our a Bakken the to projects on in from fronts scale on established in acquisitions like

Generation is delivering. with acquisition delivering production Hidden July, wells results looking southern The wells The of announced equivalent well XXX,XXX and first completed Whiting XX completions strong two Foreman completed in In with the are days. of like We winner. Butte we that oil Butte. were a in Bench, quarter cumulative per Foreman X.X last additional of barrels east average

part to the Butte strategy the a the importantly, acreage as at more consolidator acquired call in the barrels rate interest of and, a oil the we expanding XX% the well third-party Foreman of in our well. addition, acquisition, be In operator's an XX-hour validates which X,XXX halo. per core day. of we This potential tested a of impressive The Bakken, of

this are drilling quarter XXXX. first rig and get of after a the excited property have in We to start scheduled to

rate last also price. full the and paid of return XXX% Sanish, quarter at ahead schedule. has is estimated pilot a the capturing $XX properties our pad McNamara are field. a we generate value of NYMEX We like of from out outperformed to Sanish established In The highlighted expectations oil

better include field. The results the that Bakken dual the test on on These spacing Three brought new has original pad line plans from Bakken/Three on or rate XXX-foot laterals, Western heel well The a completions team Three at of exciting wells, validate new existing additional wells, Forks the section over Generation X-mile line Bakken. the concepts. toe the X.X and the wells, Forks infill also section is of tested in located wells was upside Forks to We wells, completions at new several located Sanish Bartelson Bakken side well. Sanish. The in XX% than that wells

It in the we could wells a rate XX-well This Basin delineating Williston XX-hour Mike well tested briefly guidance Southern We Our area. on average The will day. Generation but across They efforts have area. the two Stevens net a completion constraints. your XXX X over example Tier to team maximizes prospective from difficult multiple areas has to the Cassandra the Williston two equivalent zones. review Whiting's property that X.X take fourth large-scale during call geological The questions. is oil in a the of regulatory focusing to X,XXX is at add has textbook a Northern of who barrels and team Tarpon completed of quarter to Basin areas. potential project access complete XX-well, in locations the pad per its highly tremendous and area before two is turn I'll quarter. Wildrose now wells These inventory. wells and two the plan these drilled value

Michael J. Stevens

positive cash quarter completed million will third between $XXX share few a This drop-off rate be and because past is several and in quarter free exceeded fracing production discretionary the the we $X.XX operations in diluted quarter, in terms of in quarter. million $XXX million run $XX pads $XXX quarters. on cash Brad's of large by comments, CapEx the generated earnings where fourth commence per flow million, around is quarter the to a fourth versus fourth of $XXX We to in forecast flow generation. which spending strong of should adjusted million. Per Capital

have crude that note now reduced will XX% and of to our by XXXX have You XXXX hedged. risk hedges adding we approximately our volumes

protects barrel. our refining from Given This to table the our that balance collars fourth the sheet, a of downside, a increase the In lot for X in turnarounds. investors. differentials range the improvement $XX quarter, $XX upside our anticipate we're pad temporary to per we leaves wider but using in due on

off reduced day XXXX, per into of average of by risk XX,XXX conference marketing $X differential price call our Q&A. up we rail that the per have lock NYMEX. Operator, entering weighted open in for into please Looking contracts barrel an barrel

Operator

We the will now session. question-and-answer begin

Our first go question come Dingmann Please of will Neal ahead. from SunTrust.

Neal D. Dingmann

congrats first what on a great an a Brad, Morning, But, good, gentlemen, quarter. amazing year. and

you in outstanding about when the really through digging and an everything you way you processes, the question, process done all when lot of My You've talked between. things, any that to come or marketing job. any and lease there changes everything be maybe we're a talk to did made those look how improvements things to you Brad, at all first from still and just all now in going are still on, back wondering I'm see? now about color go the you could

Bradley J. Holly

everything in proud and cost bottom-line. excited from out be year really appreciate about comments, the of They have very, to and organization on this have the gotten the have embraced driven our work (XX:XX:XX). the thanks of I'm really system. best for Neal, They the very to to Bakken Sure, the change. top-line question. potential the the They

will about significant I'm really that change. to do, And more the see, can think that but there's after improvement I'm you of really to into process that forward I progress getting we lot XXXX. step taking So, in business looking and our made we've had There's driving more in go. next a that XXXX that. and excited

Neal D. Dingmann

locations or just And the the like those a I'm even you lastly, for look or I talk when you Tier what to curious those potential, you only – not answer. one about at Great additional on additional well – by look the at When you more then, guys. the of just of could if others, – downspacing? that and for are these at and potential on of looking locations, slide potential know go spacing some for you little X,XXX, WildHorse Brad, Peter right, mentioned bit Xs type X, potential you just

Eric K. Hagen

It's in center appropriate And somewhere X spacing the higher, multiple I the the Neal. generally on Forks. around the there. per think, Eric. the of and you DSU; basin Most higher to where to lower-end, Hey, on the have X think around – Three We're Yeah. spacing generally XX the in benches wells XX. is – we of is

Sanish in We and but talked in we infill some the reflected the already number. largely have locations, that's spacing potential to think about add

Neal D. Dingmann

of going in into I about to you're guess processing situation there, just to broader XXXX. in situation XXXX? after these WildHorse be my is processing the the guess some going talked on well I or on going Eric, And, to that these, going where drive Is does some question – about into you this a more and you're question leading – – depend what that of talking

Eric K. Hagen

part Yeah, are second Wildrose I'll XXX over collectively let me answer inventory. and hand our as to added Currently, potentially or haven't X. Pete. Rick classified first locations part But the Tier off and Cassandra the to we

as that And also, XXX over we upside. Butte, be we So locations. obviously, could big as see noted, Foreman

locations resources, the how to could that of But terms at that looking allocating around So be over we're we're in hand potentially XXX year. next upgraded I'll Rick.

Rick A. Ross

Neal. Rick Ross Yeah, here.

are working certainly factoring gas that, we and capture plan As have plans. XXXX put on we gas we we know development together takeaway our and in where are our into

gas a talked example, Sanish we high do field For Brad good, have capture. about where very

We well. our Red plant gas as are (XX:XX:XX) expanding

So, looking see overprint you'll on our that yeah, at criteria. investment plans, first as some we're but the return the highest certainly, of development in

Neal D. Dingmann

Thanks, Very guys. good.

Bradley J. Holly

A Brad. acreage to focused is as development that like hopefully stuff see this earlier charged We're our teams final looking the we bolt-on give our we've existing us as can did got year. additional acquisition Neal, this up comment. inventory as you well internal at on and on inventory

the focus new for prices. all at So, company generating attractive very inventory is

Neal D. Dingmann

way. certainly So, Thanks, sounds that guys. it

Operator

Our Freeman of Raymond James. Please go from ahead. next comes John question

John A. Freeman

guys. morning, Good

Bradley J. Holly

John. morning, Good

John A. Freeman

on cash think when we of it's the obviously, kind how flow, leverage kind all set of last sort and you generated like add-on pretty balance kind peer-leading go-forward about us you process When basis to of preferences to going a trying stuff I forward. the at, sheet all versus as reach as of that thought for dividends Foreman flow or buybacks, you you're cash going the look just deals guess all XX the and balance behind the whether you're target the kind share just of I transaction of months, soon out, free have Butte sort get

Michael J. Stevens

year, and place to bolt-on growing to to use, Foreman price well. did Yeah. certainly free are We cash cash between looks what It's flow When some it in. we moderate free This going a flow. the and we've Butte balanced look or paying lot a like be there's more into approach good kind nice a rates. of as used John, forward as but much be still at XXXX and debt generating of down points. we

of So, little I think it will same. We'd billion be that still We down debt. the like bit. $X.X more to get a got

take So, definitely those. some go if buybacks price, we'll softness share will got to I some can picture. consider. way. attractive And it's we find think towards our steering share And of you something in that we that see never be then the out bolt-ons, We more of

approach of kind So, there. a three-pronged

John A. Freeman

versus Great. And that compliant some on indicating moment there's question, kind of to comments – there's takeaway then And some the rail bit at you show slide XX, due of just industry been my exports are capacity pretty all on tight good rail rail just logistics rail follow-up kind in the of there. a rail cars. the side of there's lack

make Just any comments at the on you rail can the moment. situation

Peter Hagist

Hi, This Hagist. is Yeah. Pete John.

and You past, result almost capacity barrels need a one lot of the to remember point the in was been that the reached of And that at X.X repositioned in starting pipeline rail the a takeaway as per up. primary has million Bakken day.

back into come think we So, to is that play. going

the is can to other which particular, will accruing that East NGL up bit a pipeline capacity. on should I'll make significant of that is there rail take little note start-up are the Coast, But time. new areas capacity issue Permian the compliant in Marcellus a the intelligence free And there trains of latest the bear. portion has for the and rail been with of and country, brought in that be out some which those out Our also a

So, rail rail think we there and crude that to point, at capacity repositioning, I lot sufficient away. this is be do capacity will future of the in take think a

John A. Freeman

I Nice the quarter, comments. guys. Thanks. appreciate

Bradley J. Holly

John. Thanks,

Operator

Please question comes America Asit Lynch. next Sen of ahead. Our of from Bank Merrill go

Asit Sen

morning. and Thanks good

macro the guidance appreciate near-term and on up diffs. So, I the just on oil commentary on your following

Bakken quarters. wondering share to for you over three with the diffs next could Just your outlook us two if

Peter Hagist

Yeah, again, Pete Hagist.

First, additional we some additional (XX:XX:XX) did in – make contracts. earn or long-term longer-term

fixed XX,XXX added day, barrels per then DAPL about we differential about XX,XXX oil on day NYMEX at in barrels we've average got that, recently, a And an differential. to a of addition minus of Just $X.XX.

average So, but we all see December year. expect in put around moderate when to together, an you of those differentials $X, increasing do next do that up to we

Asit Sen

well. Great. drilling per Thank you. my is on follow-up cost And completion and

across update like should Gen per well With on going X.X you the the completion attraction what look position, acreage D&C us could forward?

Rick A. Ross

is This would. again. Rick I Ross Yeah.

are our costs between page on and where slide Our million XX, well million. $X.X $X.X

that. hold we'll think I

the not are pressure on or pressure cost. any actually the commodity We We're upward the reductions the which is side, sand. largest pumping seeing some on seeing

time. our move reduce to continue our or We drilling drilling

next numbers maybe So, I or think we can what is hold I those expect. them slightly reduce year

Asit Sen

Great. Thank you.

Operator

from Scialla ahead. Mike Stifel. of go next comes Our question Please

Michael Stephen Scialla

Yeah. Good everybody. morning,

maybe on know Just want to level get higher in your sense talked past mid-year, you've some thoughts I about on there? any a rig the adding update XXXX.

Bradley J. Holly

thanks Yeah, Mike, for the question.

I continued a and for it's game us. talk we've about an game to efficiency it's think margin

of margin. we're driving so, out cost equation on focused And the truly improving our and

generating. we to add that look margins in only we can or below do at we activity the think we're at the that currently So, point which

program. in And large direction so, we with movements pretty five-rig look happy a either any wouldn't us. at that expect from Today, we're closely. I

and efficiency focus to into drive really that and to by program. cost allowing we're getting think savings team I our

maybe program will scenario, at up And perform, But the on how anything teams at more that and not one depending now, forecasting how and guiding capacity. right rig look than or just takeaway looks, at we're we point. our this so, inventory we are five-rig

Michael Stephen Scialla

for Okay. And any of the potential Redtail then, there plan? part to XXXX is be

Bradley J. Holly

great a that's Mike, question. Yeah,

out drilled very there, there at compete seeing will We're We something that by Redtail. it's portfolio. nicely. what encouraged we're wells in are drill last have we our to economic that The wells performing and

portfolio forward. And that how looking is have moving some North opportunities investment our we'll work attractive in with that opportunities dollars and the Redtail, our do commitment Our to we at Dakota have. mixes at put be we at to highest

Michael Stephen Scialla

Very good. Brad. Thanks,

Operator

Campbell comes Brothers next Tuohy Our go Investment from Research. of ahead. Please question Jeffrey

Jeffrey L. Campbell

on continued congratulations and great morning Good results. the

behind to ask First is question very enhance I produce tests wanted in Tier if optimized to the areas to and X it wells Cassandra? prove was Cassandra science better or successful, just the Wildrose completions and Whiting's the specific will ability Wildrose other these

Tim Sulser

The wells is context area, for continues Butte about And great offsets we're Foreman in area yes, seeing six have completions area, year. what answer we're and XX No, particularly the a drilling completion we question. of the That's Yeah. evolve. to in the is and next And excited short Jeffrey, this evolution really right-sizing the right? Sulser. in another we're how that Tim

area again, very right-size elsewhere. those right So, applied for of be much the and it's, that encouraged some learnings can

Jeffrey L. Campbell

to-date? What's Okay, great. you just was well X-mile Thank completed wondering. completions that you. the mentioned you've And, Brad, I I upcoming. think longest

Rick A. Ross

This range so is ability it. the the we miles and we've got to Rick we've real feel confident about longest miles of far, In technology is X X.X Ross. the that but do the done

Jeffrey L. Campbell

Thank Fine. Okay. Appreciate you. it.

Bradley J. Holly

Jeffrey. (XX:XX),

Operator

next of Baird. Please Allman Joe question from comes go Our ahead.

Joseph Allman

Thank everybody. Hi, you.

Bradley J. Holly

Joe. Good morning,

Joseph Allman

Good color past couple you question quarters give you could on on had what we some the about morning. and Mike, forward? should the us rate situation, think tax the X% tax going

Michael J. Stevens

problem. Right No what reserve decided asset, that a not is did Sure. sheet. the to a don't that put have on deferred we we so position. even tax net it. now, we're we balance in recognize And against We asset

generate reserve. we eat we income into taxable kind of that going As forward,

what should recognizing probably quarter, about again. for start you second XXXX deferred we'll in think So, is the taxes somewhere

taxpayer I effective don't under Just start any deferred the for foreseeable recognizing we rate time will to a XX%. anticipate would clear, future. little would taxes, around be and be say, the being But probably we in just very cash QX a

Joseph Allman

Mike. Great. Very Thanks, helpful.

Michael J. Stevens

Sure.

Operator

of next Our Please from Kelly Mike Seaport Global. comes question go ahead.

Michael Dugan Kelly

guys. now kind real that in quarters. few go wanted quick. Slide favor I been moving back things to Good your differentials XX a the Thanks. of for shows morning, to Hi. have

that to for think in you come but see back expect said just to you diffs down. then December I $X

kind you the the to excess has your about, sense to an for differentials looking about Given be capacity, a hub people us been proxy, see as if for could potential applicable rail a pipeline if to give eyes, maybe you And step are back diffs in us gauging Thanks. having really driver really of guys. everything Clearbrook that's hub where just capacity, talk said the at could up be some of capacity, $X? maybe up kind you what

Peter Hagist

this time Yeah, X.X per driven peak, expansion differential was versus we pad X Pete barrels barrels high year. is primarily in at maintenance. by the refinery day the unusually same Hagist. Sure. that day about Yeah, million the a At last is believe XXX,XXX about again,

barrels been day has So still period, high it XXX,XXX a offline. unusual there's a and very usually maintenance

do contract will capacity differentials So think the that once we comes online.

that's have think you moderates, driver we here. tends become a like So periods more the that, Clearbrook when be primary price. then points other In abrupt an But as to change relevant. pricing clearing that

So, the differential is not – pricing always point. Clearbrook main

Michael Dugan Kelly

should what Forks, enough. really wells, on? then about? the you? whether your these for laterals you that off Fair Thanks. on kind opinion, concepts or What you most Bakken X-mile we you is Okay. of rattled spacing, question kind having are you dual of excited a just think most be eyes Appreciate in newer What the And Three it's our that. some of for XXX-foot do so impactful

Bradley J. Holly

question. Great Mike. Yeah,

better to ground. the in getting can we think out than the I'll answer there's I'll think maybe the let do we is Sanish and his can about, place think that in were approach XX% little realized I what from like only standpoint. place that. think we in in we than And We I of more at realized anywhere we're XX% oil Tim We McNamara, place else a oil not getting in – think we basin. perspective give much XX%. of the But we Mike,

the in place frankly, how and and going the was And surprises the heart And done oil that is basin a in some seeing ago optimized. originally Generation not we're And into completions nice really there. X X were of so there we're decade Generation developed. were back because the looking it

that after Sanish. we're with not Forks to lot we're finding area that that's and – a very and the and we're in that eyes and new so, opportunities we're able just technology that has Bakken contacting before new both we in And the being Three to stimulated opening our about get rock believe excited been

Tim Sulser

This Yeah. is...

Michael Dugan Kelly

Appreciate that. Great.

Tim Sulser

...Tim, way originally, some as laterals I think we're leading these that wellbores that and that, is there basin And the development. the with just reservoir just just X-mile and to manage the original area to get I'd in place (XX:XX) add are unswept of Brad most given of the the that capitalize obviously, were to anywhere oriented lot of the reservoir the seeing Sanish out it. a better logistics really and mentioned, trying oil and effectively than of in

Michael Dugan Kelly

quarter. guys. Great, Great

Eric K. Hagen

to your I question. idea, you on clarity little one a Mike, an give just had follow-up quick more

So, we Clearbrook volumes, at forward our in total the of out day November, our we barrels and about in Bakken. volumes sold X,XXX most sold of a

volumes Clearbrook we're small see, can you we're into – any given as them of a So, not period. selling at selling portion our

Michael Dugan Kelly

Eric. Thanks,

Eric K. Hagen

Yes.

Operator

of Our next & Parks go ahead. comes question Noel Please Palmer. from Coker

Noel Parks

morning. Good

Bradley J. Holly

Good Noel. morning,

Noel Parks

I testing Foreman a in early just was about talk start completions terms if improved little to interested what's at what about go first the bit of expectations to wonder plan completion. in outlook Butte, priority you plan you those could in, and it, little you bit your as the changing about are. how just for more I a the XXXX

Tim Sulser

is excited drilling of and the getting and we're acreage we've all in spacing mind effectively to thing So, learnings those wells in this about were original getting several we all Noel, hold completions, of and the see a can X Generation great just think there the question, that do. It's there that optimizing those units keep Tim had I Yeah. and right? that really, over the in and Sulser. years that what first and taking really last

some wells X year. have operators area like we're next in some completed about. had this feel got results again, Like XX to that I that an a So, we're really we additional And excited really that design good get good and going is, year drilled wells. and said, we've offset

Noel Parks

to changes X.X different areas? to in area what just all in And application and the you Foreman Gen other follow-up, essentially in so Butte the opposed do the as pretty of similar

Rick A. Ross

we're what to Ross. to Rick with about, geology. is rock properties talking certainly going considering frac the application We're jobs we've been that that design going each and for stick custom is This

So, Gen design. in X.X general, yes, with the

of We in general, going our X on million very not million jobs we're the X to of been using be we think that our will some diverter We'll using huge positive. pump to thoughts think be range, In strategies be to rate. shown probably with seeing. we that applicable Sanish pound that which Hidden We've we're the we're in the is shown what excited and area that about some doing we're it you numbers and in We've results Bench. new completion. have

positive So, we're very about it.

Noel Parks

Great. at wondering the And that new is the and higher was to price trying or do oil how you're then, the, curious in all we've those the question, talking into of of southern Three of other just agenda like something you new memory of about the to West this prices with serves about lower play – Forks I things concepts. my near-term? couple completions had a and environment, back out further in out me, was you're and tackling on years. Sanish about is than if kind certainly could even the coming Any I position. the extent that western – for

Eric K. Hagen

Eric. do you Forks, Noel, clarification. just third When bench, lower are bench, fourth or you say like talking... you This Three one mean is

Noel Parks

Right.

Eric K. Hagen

... about second? the

Noel Parks

also. Well, second

Eric K. Hagen

going I'll off Rick, or hand new a been built Or on third Tim. in fourth Any and to never third With this, so Rick's that, big fourth? much to really second take the and of always I the into our proponent we've that one. think thoughts inventory. Okay,

Rick A. Ross

certainly we on go. bench. But is Yeah, the west second field far as it at and I the really quite side, Eric first the the have as would bench and of are looking that's second would side We as Sanish mentioned, we Forks strong. see Three about say And – southwest targets.

Tim Sulser

And have in Bench reservoir that. we continue greater that second as there. but get well Hidden bench past produced the area better Hidden Bench you we've to contribution dynamics the producers contributions get in and And absolutely understand the in to

Noel Parks

sorry. Oh, Thanks. Great.

Bradley J. Holly

have every that huge mapped entire log had bit a last as completely there. over that the and years we've a out data core just we of staff Noel, basin geologic incorporated and that's eight advantage has the

we've just never of We've so the And so acreage entire basin, entire basin. and always we've understanding at across the of in-house the good what looked postage owned. Whiting stamp mapped opportunities really our the here at are

Noel Parks

Great. lot. Thanks a

Operator

Our comes Oppenheimer. next ahead. Please go question of Rezvan from Tim

Timothy Rezvan

call. there Whiting free folks. there oily based think Is this out Brad, flow initiative a the perpetual model peers value sheet? making possible cash are should about that Hi. to a few generation cash a Good my longer-term think generation morning, on free for flow and taking we Thanks proposition balance or you leverage. for right-size designed low medium-term is as the

Bradley J. Holly

Tim, no, here the that's don't running business case. always think talked think we've I great question. about And great that's and of we mean, a I a part it.

cash and production So, make with the have volume Tier to continue free generation. X to position, flow we opportunity (XX:XX) have the growth

free would to cash a here Whiting. I generation run the at business. short-term It's we how think objective that (XX:XX) ought say flow is So, you

Timothy Rezvan

Okay. Thank you.

Operator

Please Energy next of Deacon Advisors. Ray Our from go HS question comes ahead.

Raymond J. Deacon

pipelines wondering you on that pricing. a was to when if are and gas see kind there built little some new Yeah. Hey. Good morning. could I any bit expect dedication your relief being about in of you talk

Peter Hagist

Bcf by end all of early next midstream of going to is This about it's certainly come and production, Hagist. starting Probably of be that expansion so that's year, the Yeah. fruition. of with got of Pete end will X.X close that the day very Bcf we're Currently, year providers. X.X and about a announced But about capacity the fairly of to next lot in tight. communication by capacity, there's year confidence a a lot We've in X.X service.

there's gas general, providers. we those think going we are – of gas we our out, midstream is look So, takeaway as capacity. in be of dedicated to But selling most to plenty

lot. So, we gas can't a move around that

work have closely really providers. So, we to those with

Raymond J. Deacon

some I I some the where potentially players at acreage I get assume Got they could flaring, aren't are add able at at you some guess to it. in guess, basin it. the M&A permits. Got or...? where could point cost good maybe that to drive a look need

Peter Hagist

every certainly a could. And It in situation. different operator's

aware situation various the We planning we've And of been time now gas some and got have tightening it. in takeaway place. strategies have for been for

So We've very, had. well-positioned it. had very capture Whiting operations is rate a think excellent for I with we've high the gas

So, really I can't I others. for think we're speak well-positioned.

see we'll out. So that how plays

Raymond J. Deacon

it. Got

Eric K. Hagen

Rick, last quarter over – XX%, last right, were month? we

Rick A. Ross

have compliance in the been We with we've capture. and always

Eric K. Hagen

Yeah.

So...

Rick A. Ross

We're XX%. well over

Eric K. Hagen

Ray. too, Yeah. We're well over XX%

So just competitive point, that in to speak a to we definitely have advantage regard. your

Raymond J. Deacon

you. it. Got Great. Thank

Operator

& Lambujon Our comes question Please ahead. Pickering Holt. from next go Jeoffrey Tudor, of

Jeoffrey Restituto Lambujon

for taking my Thanks Good morning. questions.

standpoint. there for First the one volumes a What's is to potential in an is built? anything newbuilds? view on getting house the crude terms And outlook but appetite dedicate pipeline from towards of there marketing,

Peter Hagist

we that quite talk expansions. know a about lot said aware there be concluded via see discussions a do of those, expansions of of boards. then that We refinery be capacity we those. in been repositioned. drawing bit historically some we takeaway to there's rail how capacity as rail, Bakken see want think those of so pipeline the cognizant there earlier, And some been will all that We're number We've the also has pipeline future turnarounds. certainly Well, these planned that on and involved of of so. out a want first and to the we'll is I about of But

Eric K. Hagen

be to have CAs of just Jeoff, things. those Yeah. signed frank, we some on

And that in much call. so, them can't we the discuss really

Jeoffrey Restituto Lambujon

Appreciate Understood. that.

mix? the be to on you'd just from priority us expand capital flow Thinking cash balance like follow-up a as potentially the earlier. one Second is to remind where sheet before or free allocation capital enter you starts still, about return of and just can to the questions that a

Michael J. Stevens

down billion Well, billion that We've of like to $X.X to at intention $X to our time. want I over debt. get stated said, already we're

I think return you that, and to as billion $X.X we to get capital get $X.X at really heat I closer think starts billion, up point. down as to on talk that

Jeoffrey Restituto Lambujon

Thank you.

Operator

Our next go comes Marshall ahead. Energy Heikkinen question Carver Advisors. from of Please

Marshall Hampton Carver

you. on the Thank Yes. rate Redtail, there? exit At updates any expected

Rick A. Ross

Yeah. This is Ross. Rick

guiding BOEs day. were I've we talked or earlier think about I per XX,XXX maybe

are closely. well. good focus new and And brought performing that wells really on to made last really year our we continue We would we've base the over on I there, progress say the decline

about exit to going we're So, XX,XXX.

Marshall Hampton Carver

on are have based into or percent price? hedging opportunistically it you hedging do on next question a Okay. That's And a year, hedged good. goal, more – is you

Michael J. Stevens

Yeah.

goal. a We have

see We have to and see kind we hedges we up want year, and where say a of to market's we where XX%. is up XX% to This hedged. hedges maybe our it take the to XX%, get a we'll XX% all we XX%, what the to where the good took But take it. goal. put where as we goal. we'll above like the market's them, wait value think once at XX% on. bottom as be way if prices proposition are to the We'll just is want We but and – have high at attractive I XX% see the into we

Marshall Hampton Carver

I if more one And could.

oil In terms wells cut be you're currently your the in primarily the production? what core, of of – drilling versus the would drilling now that you're legacy

Michael J. Stevens

oil XX% where general, and got staying we rate, Depends and area. are what year. consistent that we're areas pretty come to certainly a basin average out going part and in drilling liquids, with have that's well, on new XX% GOR as But right as total we've a all the we're around of got higher drilling such Tarpon XX% there

Eric K. Hagen

Yeah. bit where put rate big we the on oil has Marshall, example, shift depending bit in Sanish any oil a cut, higher Tarpon the I lower. see for rigs, don't a

a lower the Tarpon area. we they're areas, probably bit than go As in expanding little into the

a oil may So, you get in uptick little the bit of actually there. rate an

Marshall Hampton Carver

much. All right. Thank you very

Eric K. Hagen

Marshall. Thanks,

Operator

Mr. Hagen. will There call questions and are turn Eric no further now to the I over

Eric K. Hagen

of in be closing be X. Holly over remarks. for and X the Bank to in XX; December call Capital XX turn Conference, will participating Energy we'll through November Energy the Whiting Brad Andrea. also America And I'll now, One Thanks, through the participating Conference,

Bradley J. Holly

one In Eric. to thank I closing, making like employees for this Whiting years the you, Whiting's would remarkable history. of Thank most in

We to capital business are a and I in fresh thank at leader to thrive rowing in to commodity can together into model all Whiting pioneer points an industry the our rebuild efficiency want also shareholders. cycle. that

interaction and our are listeners and value know, you suggestions. thoughts with we active truly to you As your

free continue strategy to on cash value flow balanced with will growth. disciplined create by We of our delivering

Operator

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

You may now disconnect.

Chord Energy (WLLBW) 31 Oct 182018 Q3 Earnings call transcript