Chord Energy (WLLBW) 2 May 192019 Q1 Earnings call transcript

Company Profile

Participants

Eric Hagen	Senior Vice President of Investor Relations
Brad Holly	Chairman, President & Chief Executive Officer
Mike Stevens	Chief Financial Officer
Chip Rimer	Chief Operating Officer
Tim Sulser	Chief Strategy Officer
Drew Venker	Morgan Stanley
Neal Dingmann	SunTrust
Graham Price	Raymond James
Tim Rezvan	Oppenheimer
Mike Kelly	Seaport Global
Jeffrey Campbell	Tuohy Brothers Investment Research
Leo Mariani	KeyBanc
David Deckelbaum	Cowen
Noel Parks	Coker & Palmer Institutional
Paul Grigel	Macquarie Capital
Marshall Carver	Heikkinen
Biju Perincheril	Susquehanna

Call transcript

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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 First Quarter 2019 Financial and Operating Results Conference Call. The call will be limited to 45 minutes including the question-and-answer session. All lines have been placed on mute to prevent any background noise. there a remarks, period. speakers' the will question-and-answer be After call now Eric of [Operator will the Investor over President Instructions] I Vice turn to Senior Hagen, Relations. Whiting's go Please ahead.

Eric Hagen

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

me Rimer; with Chairman, our Officer, Sulser. and Brad Chief call Executive Stevens; Chief President Officer, Chief Strategy Financial the Mike Chief Operating Officer, is On and Holly; Officer, Chip Tim

being we'll call, www.whiting.com The our results and first available the be XXXX. is Relations under section. at review for conference quarter on call During recorded Investor website also will this our the

We that that to our our could to differ cause posted are those include website note answers updated and that Please questions actual the to results morning. also corporate from forward-looking statements. remarks forward-looking materially an risks earlier in to presentation statements this subject

set and risks I'll with slide Additional President, Chairman, call is X concerning the Holly. Brad And turn forth information release. our that, in Chief Officer on Executive our earnings to these number over

Brad Holly

start below extended during Dakota weather in I Whiting hard the their Thank you, was for team degrees XX in with like events work North the thanking off quarter. areas temperatures operating particularly would Colorado. severe by our a periods It winter cyclone in minus for the Eric. and to bomb

not flow maintaining production our large Whiting, quarter the through job heightens second well-positioned a free teams that in the prudent budget. online. This our Our capital year on strategy. Recent to pricing an efficiency to price only time broader growth second the same more This we efficient The I is a get could a the the chasing in strategy downturns In by believe cash is When volatility commodity using maintaining that the got of hedging to maximizes staying industry-leading. a field keeping of that highly deliver on production discipline hypothesis others great over believe returns-focused taking fields solid pursuing strategy in the a result technology are found Taking half level-loaded weather more, and did disciplined recovered. be and while positions as cycle proved a role I economically and view, I none had thing. accelerates they overall with that program. us was to strategy. also larger at commitment oil a Whiting, Whiting by to industry leader oil this side. and developing

on the been they rates Basin to more production are more positive Our a Whiting recent built workers, in we wells are respect uplifts parent the flush I are well Three and the of I've the production. Williston and proud is we that the a value parts resilience, than Way believe wells. business Forks uphold. effective fact returns never existing But from impressive is excellence. hypothesis on be effect a for prolific proved and correct expect and The this well just Whiting leading results results on did reservoirs. of communication, driving fellow way foundation have and in could some that different many What not is seeing we stunning. older team in values of on Bakken

off are for financial that, to With remain outlook. quarter people our and will our forward results Stevens highest and I Our embrace standards. review engaged, the to the to committed change, discuss Mike things hand

Mike Stevens

Thanks, Brad.

capture pace increase oil declines of volumes a on gas It activity seems our Williston continued the slowdown to rate. to and minimize light the in Our during to POP schedule a of despite grow took side quarter. Basin advantage the

the This is second some our wells. half wells are with growth in new though the put year. normalize original and mix on back-end even by Looking we consistent guidance on growth production as the in our should forward, bring of quarter new The loaded. oil we strong project improve second followed

quarter came First operated than expected. CapEx in lighter a little

strategy Looking quarterly in to as a and QX on in wells to hedges our is the flat and manage of half fluctuations. recent of benefit second and designed lower additional the in oil followed our DUC to rates of project in increase we on price XXXX Echoing drop forward, half what advantage XXXX favorable locking by the commodity QX pricing. to QX from relatively We we took count production. first Brad shift price said, put putting rig CapEx

prices at swaps mix for hedged collars. strong XX% the of are of balance and a We with XXXX,

this projected leading free the to in of meet We going mid-cap to can goal flow cash so cash path are doing space free our generation. provide forward, E&P a we clear

On basis, ad are have up production the net reflect a due quarter and the quarter to tweaked some volatile DD&A down differentials slightly primarily to pricing. assumptions. first is experienced remains reflect year full cost cost are had and assumptions our from first year side, to we our taxes lower summarize, up last of some original in similar gas and NGL differentials first on to To results our Bakken forecasts. On we pricing. guidance end additionally, reserve hangover guidance SEC valorem quarter results. the and

projections. on discuss I'll Rimer highlights are normalized has with back off some our to and hand operations. from to Chip environment the original However, track we

Chip Rimer

morning. This in efficiency. in leading Northern the the the we going presentation focus wells. as early-time projects recently address results. just similar morning we have a that Ray I'm on our is area, Polar sets Three Cassandra. XXXX we This corporate days wide projects apart our was wells area, and and to effectiveness Plant. will support Gas we provided don't our In was give this At the the Mike. now competitor Cassandra in increased of production earlier days on good Whiting The Foreman expanding of We have completed that you, wells. that peers continue projects. moving this we model ahead data the driving long-dated over and in highlighted delineation completion Butte, wells future outperform over continue the area on Bakken Two activity In are proppants multidisciplinary illustrates our are we The Thank Hidden Also One that our XX parent were wells Southern updated with XXX%. thing now hard capital our Stenehjem Bakken Bench, outperform to margin. by plan. key wells leadership of – the in core. update XXX over Forks Whiting's to on production in examples completed of this are development by an aggressively in the

drilled program. have we have provide wells enough XXXX our We third XX commenced all in the to have and quarter. data Completions in expect results to

at corporate results in effectively completions any ability this operation acquired this cases, Generation per parent Also last Sanish an under I year. attractive price we The by Eastern reflects a we the exceptional. completions in XX acre putting As team Pronghorn of of pages want and to Infill able re-stimulate I on has well. other are wells sustained our projects $X,XXX well, productions. lot to XX our or provide what Once contrast the a reminder, the customize and outperforming presentations. highlighting four to accomplished unique are again, new each We on In end acreage to areas. parent the capture multiple for uplift on between parents XXX% new believe in unit. basins wells our across are new a were five experiencing Sanish. reserves, in our XXX% to while by detail

field and I Finally, to thanking end want both corporate in the headquarters. echoing Brad in by our the team

us open for XXXX move You the cash conference you. call for as Q&A. set have growth very please a free up successful and forward Operator, Thank mode. flow we with

Operator

now Instructions] And from [Operator first begin Drew Stanley. the Venker go will We Morgan question question-and-answer our comes Please ahead. of session.

Drew Venker

talk can I the thinking morning, thinking was how higher a in longer bit bit about you're Good term. program about everyone. environment a little hoping price a little you

You higher that obviously be to at cash prices debt use of reduce would stated priorities your here before achieving sooner. for

and how flow? more activity tighter you thinking about free and like XXXX So, cash levels are beyond

Brad Holly

is Yeah. Drew, Brad. this

We are on course the staying that.

We And really actively in to and And free then every of in down stated. dollar, mentioned, we taken enjoyed our can the still that look we and would our pay debt here and flow to that levels program as high- adamant continue have have Mike where about we inventory, compete in take to our recently. portfolio. then cash recently uptick for Late X price. get the to debt certainly hedging inventory our we're today we've quarter advantage Tier high-quality

Drew Venker

color, for Thanks the Brad.

you think processing about years? that you of in runway the facilities program as have development you gas need areas do you other So plant years, the gathering the expand just think that gas think And obviously of that or area? couple do couple next next over to gives you expansion. much How finished you where you over

Brad Holly

Drew. Thanks XX% the Yes, and the We volumes on Williston side. question. even the really in XX% growth oil this the year for like overall

us Chip the And also that if cash out he plan so and actual I'll have let those free else while gathering term our comment to there's throwing opportunity on is there anything our little portfolio forward gives growth would the substantial bit the we in of near that keep rates running. to a believe flow. kind systems future off And do.

Chip Rimer

up If basin. else forward of at to we don't Ray it. Cassandra, looking the the out set of going Plant Yes. think there capacity for much we'll have development there's and I do with Cassandra Brad Gas we're look to

in we're So good shape.

Drew Venker

of have follow-up strengthen those priority in the me been we to kind as you plan recently would then one I from Just on of have Bakken bolt-ons outside of that that's the and cash be of talked Does bolt-ons? or you very results secondary? interesting appears. all appeal being to core flow guys and you are will the sticking at bolt-ons, the M&A strong guys about the change to it you definitely Or The the generate guess free of, doing all. and doing number appeal one

Tim Sulser

Yes.

-- paying Sulser. It's compete portfolio. this in what Brad would that I said. our down and debt around And Tim I is acquisitions echo think I would prioritize

Drew Venker

Thanks.

Brad Holly

the you our also having as highlights acreage of success have as around pointed well. upgraded good Drew out us

a today than we And year so ago. we our have own more inventory in had acreage

Drew Venker

you. Understood, thank

Operator

Dingmann comes Our go Neal SunTrust. of next Please from question ahead.

Neal Dingmann

just again year. unfolding concern your of of how you just see know number CapEx trend all. sort the through Could like wondering entire making runs just more could for overall bit different sure or if but how guided you sort on year? within or range might things, thoughts of the you the that Good stay talk seems you've non-op the there you I if if of things little a there's just year? a the about that for And remainder CapEx. investor Brad, remainder got for walk morning out I'm of on some it sort like

Brad Holly

Yes, spend be. thought our and more $XXX had on committed the our to question. where we the right long-term. Internally, Neal. and right in getting the we budget. quarters, Appreciate money thought production. We both expected This we would infrastructure to We're capital million we're for And in we are on forecasts first where is place. be it would right second $XXX so the million is

non-op we spend did inside portfolio. manage to more we So us of anticipated, had for than our but that's

highest So have. we in our that to non-op eye we of And -- will to a taking put investment is our the commitment we're critical money proposal. every work options

non-op the come in our CapEx and we production operated And our accordingly to will so budget. manage on program competes with

Neal Dingmann

of to continue acreage Makes And you sense. lastly, have I ton think acres. just over just a XXX,XXX then

Or if if your some maybe not if thoughts that of you market's thoughts stock? you wondering you being in think deem the for bring the about, the just about not given going economies forward so the there's you're value that I'm Your down what to reflected of any to economic. way stuff just selling least reward the some

Brad Holly

as Gen response effects and surprised Neal -- initial been And results we've that areas. pumped a pleasantly core-like to the Kelly Eastern think Williston the Eisele had me that does areas we a results in X the fringe telling or at my have parents that impact in I we've positive we're that the seeing X I mean yet not non-core. is she area Gen that were our around completion not organization, in her that. that positive Basin is have runs on

hands like we And it. holds still our the basin. a I about And so right acreage think the in opportunities feel learning we're develop tremendous to lot

how And today looking so that's there. there's it at is we're value more

Neal Dingmann

Brad. Thanks activity. the all to forward Look Okay.

Brad Holly

Neal. Thanks,

Operator

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

Graham Price

guys. This is good Hey, for Price John Graham actually morning, on Freeman.

on this quick quarter. on real earlier CapEx, Just CapEx slightly lower like was up following it the question looked non-D&C

that of see the the you how year. progressing wondering just remainder So through

Mike Stevens

like, heading million $XXX at budget is Brad CapEx said our The is That's towards. not we're Yeah. be That overspent. number. going where to

we little we bit spent much capitalized right thought. on now, than We a on little little spent less workovers. spend we non-D&C land. bit And on facilities a So a didn't

watch just million we're stone itself. thing Nothing going flows. the $XXX set again, that's So here, to but in set the where is kind in of only everything stone

So on We'll in But a forward. on opportunities we'll that land other probably be watch depends out. up all end could it come sure the on arena. plays we these facilities. We'll where better it little under-spend and that categories under end where get now get. we'll Not see right we opportunities non-op we the up

Graham Price

saw my days Perfect. for below this for Okay. Thanks that excellent quarter. spud-to-TD really quickly nine follow-up, past just It’s I your fell then times that. And work.

driving over see those. see you improvements wondering time you and many Just maybe what more how there

Brad Holly

of that. I'll Graham kind let noticing drilling through thanks done They've this amazing you our proud quarter. And for of Chip organization. some of very that. some things very, we're walk And

Chip Rimer

Graham, very Yeah. you thank much.

group records. this Our set a several set lateral. to records last drilling They on quarter per drilling foot continues XXX hour on third

it record could basin be think for I potentially. the a

job. a drilling. on on find continue keep and great ways So the to They keep they bit to bottom do

they love us ideas. day. every with come I challenge They way up think. they So new the

And where to be It zero, right? sure direction. to we the is continue I'm end can't but not going continue that it's head to so --

Graham Price

you, All right, perfect. Thank guys.

Operator

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

Tim Rezvan

were you what Because real surprise by what end print to Good was quarter? by in Can which and the the date XX. talk question. caught between the the you reported thanks like NGL think appears the morning, that I about folks. pricing, the changed side. people surprise my on on, biggest for earnings weakness on lot February that was And taking of the I'd start it of a NGL

Mike Stevens

with Yeah. This that you. is Mike. I'll work through

the itself, by start pricing as supply Pipeline definitely top you That's And been driven in percentage decreased our as basin. percentage doing. generally of -- dropping. Probably that higher-cost demand. all kind the so the of a And good in large WTI the of what In full, getting NGLs issues as is far capacity from we're outpacing stop propane there's there has just know that, netbacks. has that's then, our a part out Let's is rail price relying Bakken on pretty truck. U.S. the and level NGL NGLs. our a been propane's of

since to So part The our for reasons, quarter, pricing. did we is some pricing first these fourth And first down. that expect quarter that our pullback our have it in did NGL the price. when unexpected or did in February adjust what we brought quarter happened we

impact probably QX number. $XX in course a gallon, a price true our was So But pricing reported the to closer of BOE. our lowered $X.XX

of pricing way realized Looking new going realized QX the be end should probably Pipeline $X.XX forward, of that is which towards lighter BOE. year the $XX And to to around work than coming I XX% think historic, XX% we'll back about oil beyond somewhere the gallon. Creek oil similar It's our a and little have That's I price. but a think XX% on. its price, in a of Elk to to about we're

Tim Rezvan

Okay, okay.

$X.XX, Elk see where -- that gallon price said of that's things when about sort So Creek? like a a of you is sort into you normalized number

Mike Stevens

year. the of quarters three first That's

Tim Rezvan

POP appreciate the my of schedule XQ. heaviest the And POPs I at then, is XX% okay. for Okay, It's for follow-up quarter details year, year. about that. the looking on your your the

Dakota, a that winter when we you in spring I North you get all snow floods. know have think

a have, number pretty what in talk you could confidence Dakota? you you spring looking you've soggy North risked how up be of So as that kind can at about

Chip Rimer

what in back half quarter always of at looking back are that. a little the is at half lot those a But We put Yeah. risk there. of of we're you look when POPs or the year

So when that, to going you at look better conditions. probably you're have

point, some but huge risk a at we of risk do it. So think I have this don't we

Tim Rezvan

Thanks Okay. there. I leave folks. it will

Operator

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

Mike Kelly

uplift of I just well from this that at that And the parent we what Thank look was maybe could if of you're potentially kind morning, benefit frame you. kind of could Good do phenomenon a maybe guys. could you hoping as this incremental from production well? a you'd the the returns perspective, maybe see parent benefit combined well EURs here XX% potentially from from the to XX%. child plus a take to added Or up just XX% or IRR seeing.

XX uplift it's look like? the for amazing Slide But ultimate Just pretty so these Thanks. mean benefit slides, you example. on if what at frame see could looking could I just just the to

Brad Holly

XX well. thanks typical Chip's for production this original XX-day the And pointing is the days. in XX than and a on better seeing Again that's basing for Yes. the And barrels are others formed Slide years the Slide of offsets I in out. on couple that's points shows complete we're on and and XXX,XXX take after IPs. the that not packet. five substantial over go just opening and made off. on one Mike, parent it's this the for we thanks of examples we of and is where to mean XXX% definite This a question it's there's and show the we're oil. XXX well, three really Bakken trend the offsets better

and rock the not poorly But it I So same. space we're parent It's done Gen original think completions the X in very seeing different the the It's of is the that performance. X were it. it's what variable contacting enough Mike around hitting highlights were all not how wells. Gen and

touched never before. the touching Gen are that efficient completions very Gen X, so X newer was rock And actually or

on And the of And dollars investment mean that But if infinite. a think all we parent But is so I but we're significant. that the uplift XX% XX% incremental spending, that. we're now. do in the it's seeing. And -- times early we're and economics we're return is IRR believe you on we're of right tuck wells about still probably we to watching to rate it's what production. the it excited it's -- the extremely

Mike Kelly

that color. That’s Appreciate Thanks Okay. me. it guys. for

Operator

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

Jeffrey Campbell

morning. Good

XX I the to one Forks derisk goal Field. First Sanish Pod that X Slide ask Three in to noted wanted was

strong in you the could wondering derisking been color Just on X what Pod meant results? and a how very affected context add it's little by this

Chip Rimer

not is Forks Three the the So across areas. of consistent all

we're area. of was trying do that what derisk to some So

process. that's And so our

and Forks. We Three have Bakkens

-- so see -- that to can XXX% the Forks and at Brad's you parent going And had up. over on but look literally is uplift the point we Three and the

derisking as additional this go it's we through this we positive. but year, looking very have going So process on really

Jeffrey Campbell

Redtail? Okay, thank wondering was because large if during I of press what freeze-offs could the winter. mentioned a us you current the is decline you. in release of the situation And just Redtail production update on

Chip Rimer

most going be Redtail. is at We Yes. down production to online. bit but in everything have of this -- forecast We what very budget little back up we the and back well is we is should point our a just is

Jeffrey Campbell

great. you. Thank Okay,

Operator

Leo next Mariani KeyBanc. from Our of comes question Please go ahead.

Leo Mariani

the Just this you Would Butte report on the earnings quarter expect you to Foreman spoke have wanted report? with second results clarity to or year. later comment, about earlier having a guys little more get quarter third earnings those an some

Chip Rimer

wells. question. all This we've is for drilled Yes. XX Thanks Yes Chip. the

here. going completely actually right completion now. we're mode very wells in poping all drilled be We're the they're soon some to So and

quarter be anticipate the you'll where to wells. the on So those results see the third early -- we

be right for delineation we're what the zone? spacing entire doing typical looking per That's should we're some there what doing now. the are acreage and We across

Leo Mariani

Okay.

quarter be call during third I to call earnings would conjunction with clarify say? third November So in takes the quarter that just earnings second to that or going to the in be the guess which place quarter is

Chip Rimer

November.

Brad Holly

Yes.

it think in would Leo. I earnings call more be the third

Leo Mariani

there were Wildhorse Okay, just that. guess you doing of on I to the And clarify the want area? to update guys in see if any just wanted some activity was

Chip Rimer

Wildrose?

Leo Mariani

earnings. Wildrose Yes,

Chip Rimer

but didn't early-time we Yes. It's than better performance. to I original results. evaluate those wells, mean, continue we're the

Leo Mariani

Do capture production talk the a And the Ray of Plant a in half also know be first which bit. quarter the production. -- better based that? you in Okay. dynamics about about coming kind the you've of the here gas that benefit you those expect on Can throughout to Gas little talk your will guys some around second got Bakken, year? sustainable you some I the on, bit

of trying your up not trend sense whether percentage gas year. get to a or of throughout the capture should the Just rest

Chip Rimer

Yes.

year flat now. what Let's just right say we're for pretty the of the seeing rest

Eric Hagen

Yes.

We to I'd some the we it's now of you those capture more had that If gas reverse way at say to managed and And the about in recall and capture first gas it. simple normalized basically into issues fourth with a quarter. Leo, Eric. levels. quarter we're think

Leo Mariani

think you issue oil just here. there you Okay. the That's guess of dips, XQ sort dips But lingering rest the mentioned, guys of little year? helpful. And expect I into how oil on was from kind I do January out of a play to

Mike Stevens

of guidance $X.XX Redtail we $X The $X.XX that well quarter, think was first in it's the includes somewhere what mostly updated to for QX. happened -- Remember that the around should in. deficiency Yes. be because all payments. in Really

about As forward, increased those we $X. go to

and better a those going So range. it's to been fallen back dip in $X.XX a to little it's the $X April, that looks May, in but little March Bakken and hold ranges. strong than the in It's like in

seeing So that's what far. so we're

should it think though. I hold

Leo Mariani

Thank color. Great Okay. you.

Operator

question next of David comes Our from go Cowen. ahead. Please Deckelbaum

David Deckelbaum

that you guys. you Thanks up. now morning for curious my questions. taking have Good teams across Brad, look the as divided just

to Given Gen that you with some which infill some capital in area think sort XXXX? some going the do an in the activity relative of into you've with of or what the would of experience others increased of -- allocation completions outperformance Sanish seen X

Brad Holly

in very game. a something capital asset that's the South, raised better the all performance we're competitive process. like the And North, David. teams, we in have question, Yes. a And about we really they've That's in allocation seeing great their East. the as And

to going doing we're opportunities to our they're company, investment it dollars for we're roll as and the and our we their invest very best going best very out work, organization. so have an point in And is,

areas. that fun of And come seeing our investor in as the so XXXX can go some phenomenal actually And year this But to production and through process watch be flush multiple we'll increases. value-based we'll it's we're best that this in make where see you we'll that sustained pack, results and opportunities make an continue those that'll sure a not And and budget. we'll third decision on our at lie. it's economic quarter from

Chip Rimer

love share would the say I learned also lessons ways our I board. teams and growing across the

competitive, but sharing ideas. it's So they're

David Deckelbaum

Appreciate that.

I curious, do I capital is about also year? also and fixed? you should you're the right about POPs Just now? stay Or budget, to well calendar this as of talked guess, inflexed that being with -- how going that think your and guess, we

Brad Holly

David, Mike's But close. to point, I think it. to it again going pretty would about being we're manage Really,

we've we more got participate. excellent wells of they're spending and those heart and And frankly to non-op so want the most Sanish, are and economics, in of

our budget. we activity that our make adjust our deliver capital production and to sure on will on we accordingly budget so And

David Deckelbaum

I And -- one and then appreciate that. one I might. little small if just

run You talked of about wells rate which normal more intuitive of put is sort online. mix, back as you getting oil your to

back and to Just your but the POPs year? half of up some back kind to guided of in given, of back-end sequential the be it of Should weighted. looks we second kind you kind similar that just this to quarter, trends that higher thinking guess, mix growth, quarter then XXs are I

Mike Stevens

but the up be. in a be the can fair first bit want a it it hoping it year, half the conservative, you by put quarter. we to where we But is little statement. of second to probably should to That's expected be you We're here rolling back where improves

David Deckelbaum

guys. Thank you,

Operator

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

Noel Parks

Good morning.

Brad Holly

Noel. morning Good

Noel Parks

wondering guess still that Gen particular mentioned maneuver most and geo-steering improvement example you from about you completions? wondering the something were terms that footprint, completion. or parent you into before region And to was even Lower whether updated in wells just in Eastern more I an X grow I'm Forks as of your X in that might in I do the improvements Southern you were where have consistent room the seeing Three applying room on bring in Following-up play. to saying region, of

Brad Holly

Noel. Yes Good question.

I infill think Kelly's looking the is at the work. we're in what region as it East doing way

everybody was she's thought we fully Cassandra, work So, an and How with Kelly places infill places understand -- it's like Sanish success to fully like to Cassandra. in when going it's is in in back was our development learning causing have at process. it's time developed changing Sanish what and in Charles do and one changing initial we're

And an development redesigning section per most what we have we're well have only where one opportunity across from what we're our so we that asset. and oldest acreage program learning our based on mature

Noel Parks

Great.

and opportunity the needle And some out ownership Lower as enough going move just Forks. turn I I'm said that basin. that's continue if the have of that activity the of Anything there or wondering to would in any just on smaller sorry seen going was the does interest non-op interest? we've And consolidation and buying my wanted in But I to weigh? And on it South any -- also wondering Three sale returns? there's for follow-up out I to will check significant be do packages, those you of sort in terms non-op just

Brad Holly

Noel Yes. on Forks let comment I sorry that. first Tim that and missed then address question. Three Chip I'll will your

Chip Rimer

-- we've latest we up have before -- these five as I we go picked Yes. said the using completions. gen. We're the Noel as

and excitement real there's there. do there a lot out over can we what onto So,

over potential there. huge So,

we we completion there. down X.X that wells gen kind of that a Stenehjem our on Also have were We put those things.

So, area. you're opportunity seeing Southern the in

other a of lot the excitement over a of I'll think question. to Tim there's on hand lot runway. I So, there's it

Noel Parks

Great.

Tim Sulser

We'll continues additional continue quality Yes. Noel as go we're acreage seeing after inventory our it to to that portfolio. to it acquiring as certainly relates add results. acreage good to

appreciate perspective what's such That's that those think right, industry returns exciting is basin. is and at to really original cutting-edge really continue great that about and was it wells really really these makes to big a everybody And our picture innovate I what's in our think I exciting over from technology Sanish ability grow in a long-term environments. time. needs so time price completion as especially it to the about lower

Noel Parks

Great. Thanks a lot.

Operator

question Our Grigel Macquarie Please of Capital. Paul ahead. from go comes next

Paul Grigel

good Hi, morning guys.

others On basis? about look Could and detail the the you've down Bakken halo additional the testing Pronghorn either improvement you what's Pronghorn you seen. an testing for within that inventory as on organic XXXX you Bakken on XXXX talked some in halo the or XXXX provide increase to program over of

Brad Holly

Paul. Sure Yes.

We've the out we Bros some. have been the in it big wells then working the a we acquired. Iverson there We that acres drilled couple testing that. part call Montana out XX across a of And XX,XXX is of wells

so designed the those Southern were to acreage. really part our of And XX specifically test

up in XXXX for And up to of so program. kind both those we're to XXXX try prove in stepping of areas

Paul Grigel

Okay, one clear. make it's then clarification point Mike, I to kind of crystal want I great. guess just maybe. And sure, of,

non-op/operated $XXX For spending there's CapEx number areas infrastructure of the obviously of elements. a that million underneath key

could of to and You guys of non-op, cash are Just even Should the generative potential where at the if is and that terms continuing the trending in holistically there. the the we million? lower $XXX Or specific on that managing budget. versus your trying view free within managed make operated to of kind flow allocation, go flow non-op within ultimately operated end? cash the to balance savings does trend understand progress

Mike Stevens

wisely -- I basin we're opportunities exist authority feel the like $XXX question, opportunities of A today the to got great we've invest invest to we seeing kinds -- look approval, the Paul. to all that. million. in the Yes. And if mean, we

deploying do going weekly it's returns. we of where really high-grading exercise we on this week a this and the at And inside we improve that our organization. And so, to capital meet look we how are

be fun mean in. going to through. a a so great to basin process And be what working I

can free to And dollars internal. of that amount the are continue cash to debate generate trying those and so, we invested maximum flow we healthy we from have

and And so, real process. our be would active on And there. be nimble willing we'll out opportunities continue direction I that very We'll change investment. we see as to be

That's hopefully, way internally. so, at And kind look of that question. it your the answers we

Paul Grigel

Yes.

Just maybe quick real there. follow-on just one

does has How quarters overall on changes that -- of program changed active. of more kind internal not meeting is just last been there. the and certainly, op little but the a direction? non-op capital non-operating any mentioned maybe that You bit? weekly And process there managing in over becoming two Has

Brad Holly

We've Paul. uptick. seen Yes, big the

was -- lot caused inside looked off the offset us non-op to XXXX, talked think projected they budget more we'll looking. of you work quarters Those XXXX first things a we've and So quarter were allotted of gotten to other and really really quarter. last manage their what and our the the about at it program. fourth for quarter. great of meet a team can it's But, almost they understanding We've the spending They're It to if kicked doing results and really that's yes, think of a lot we operators. look that great our quarter, of how year we operators half in the in our proactive. invest non-op of wells got deliver are spent entire three which in at continue almost this nonexistent. first And the

with we're non-op so, more could focus $XXX of it time a when million. XX-plus-million-dollars be And our spending lot a

Eric Hagen

in -- Hagen. on Eric to It's Paul. permit just And so that I'd like jump

this Just meet of to I -- Planning, Finch, And they those of do meetings. this. Jason most in good example. a VP on our sit quarter new is weekly

and we really the that's throughout balance it which to came made we Non-op we where But objective in is on Our The workovers came it discretionary, committed and all target. a -- And bit light. heavier. came are we doing of $XXX around investments somewhat expected what good CapEx in the year. in came and and our is million. little in infrastructure capitalized think land, the we're

So --

Paul Grigel

trying addressing No. there. months the looking terms organization in so, the how or the I the XX Brad understand changed has That's to over last couple for, of that, as just of color Thanks. mentioned quarters, was over especially, last

all It's So Thanks. appreciate great. the color.

Eric Hagen

Paul. Thanks,

Operator

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

Marshall Carver

Yes. Good morning.

about the talked whole a the just growth or in of talk the the growth the about you seeing factor half company could you some trajectory? in You quarter Williston? year. when that for growth the and second And stronger second Was Redtail, quarterly in

Brad Holly

for growth Yes, in I the mean, the in see overall Thanks the Williston. Absolutely, Marshall. we volumes question. double-digit

quarter quarter-over-quarter. a out, had year-over-year this and growth pointed As XX% quarter X% we -- we a

see Basin increase. continue volumes we so Williston to And the

the volumes. As Redtail it's less moves declined, total of becomes less down and it

as And that less was that in at, steep saw it you Redtail less the and an But currently first and decline. of that volumes becomes It so, has drag. negative less fairly impact performs at quarter. on the a of less

just so lot on; of overall coming Williston and second accelerate our the half the we two, frankly, and as And move should because becomes more one, because company POPs the a into volume more have more increase, that you we total. see

Marshall Carver

year? would expect quarter the So company this quarterly you for whole each growth

Brad Holly

shows. our That's Yes. budget what

Marshall Carver

Okay. Thank you.

Operator

from of Our next Susquehanna. ahead. Biju question go Please Perincheril comes

Biju Perincheril

Good Thanks. morning. Hi.

quite uplift seeing parent the it’s -- from impressive. you that this So wells that showed here the you're

understimulated loading that there variables? wells I loading wells the So parents any is of way at of proppant looking parent wondering or a -- of just quantify of those probably to inventory vintage or was fluid

Brad Holly

entire a -- to Yes. the at great us question. at go and look caused look of the completions. it's for X,XXX Biju, original the back That's We thanks our and question. timing existing wells

offsetting And so if are against are we we've that a XX great X, actually to ago. of four more we wells completions not years are was three think so years done We've recent where Gen done We that. stimulating completion it wells to years Gen X as possibly that that X have maybe old some chance a old.

expect. which an seen would haven't uplift uplift we've what still We you much as seen as is but some

our to like dynamic going tried other so think stuff operators I economic And have Bakken there's of in And some be there. an the refracs.

the place more refracs after think that in economic than and oil in are to there is you telling I get these stimulations basin. both there's offset

to and I out we're we increases to superior the large expected continue pleasantly reserves. lasting. continue figure said get So see think how this surprised we'll are and alternatives comments and opening I way long what as is how -- really But -- economic how at to they're the the something what's are we these not my to in

highlighted those wells XX before I flowing. also are we that think slide

And so this is not the new wells and the parent well frankly.

ESP-assisted. the in cases. is So This this is all the from natural those flow reservoir not

Chip Rimer

they're those so I would Gen cheaper. Xs also say they're some of wells

production So efficiency capital wells. see cheaper we're seeing more and

Biju Perincheril

Got it.

capital quite the go after some guess way plans getting as inventory there and benefit efficiency a So drilling those to boost parent your then near-term would of just to Is that the direct I uplift of well way, overall is substantial. imagine parent I that your wells well?

Brad Holly

I like how you're thinking.

-- program I and steady our program. drive program stable that think we're a efficiency with is all how internally wrestling pretty one keys and real into of our that

lot that caused CapEx the of lot. capital And a around program unnecessary program. moving so We we in a started

the our And really an long-dated having the we a we're recover basin are these to be that things that decade acreage this for next so plans talking view how all being optimally of reserves under the operator in about. and

greater trying us take are it's I the causing us. So the are it for maximum about how -- wells economics mean think is where offset about in We're parents running equation. in free are to the where in advantage. all all we detail to XX% XX% increase economic and gives economic uplift to to well we're cash factor parent the certainly to that point flow XX% IRR models. And a that our us in then

Biju Perincheril

Great. you. Thank

Operator

closing for session. I over Hagen any This the turn conference will now to concludes our remarks. question-and-answer Eric

Eric Hagen

the Andrea. and Tudor call turn Thanks, Whiting Conference on on in May for Holly XX remarks. XX. closing over participating 'N Rockies Conference I'll be Hotter DUG May Hell Pickering, Brad to the the And will now Okay.

Brad Holly

and my Well, thank you, Whiting the Eric. I want employees, our again to Whiting Board fellow shareholders. thank

corporate do. from the which to industry-leading the fruits beginning are we business at focus innovation results the More office corporate the our on wellhead communication, see core We to of is are results. effective strong a culture, of everything strong driving and

more free second the half flow. poised and our achievement gain the even remain momentum XXXX peer-leading to repeating are cash of We to year in we committed of delivering

with our to for flow growth drive to progress. and steps on creation. again free look right in the soon Thank taking our we on our your you pleased forward progress, cash interest value are building success you continued and Whiting shareholder and We updating

Operator

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

disconnect. You may now

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