WLL - Earnings call transcript Q2 2019 | 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 Second Quarter 2019 Financial and Operating Results Conference Call. The call will be limited to 45 minutes, including Q&A. All lines have been placed on mute to prevent any background noise. there a remarks, period. speakers' the will question-and-answer be After being this [Operator note, is recorded. Instructions] Please event

I will Affairs. to Whiting's now like Vice Eric over President Hagen, to of Corporate turn the conference

Eric Hagen

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

call the today with the me Whiting On team. management is

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

to presentation corporate website updated earlier an posted also morning. our this We

our note include to the Please cause risks answers forward-looking in statements remarks results that and that to that differ actual to those statements. questions materially from are subject forward-looking could

in set on risks information X our these Additional and Slide earnings forth concerning release. of is number presentation our corporate

to President, call I'll CEO, and that, Holly. the turn With our Chairman, over Brad

Brad Holly

Eric. you, Thank

we volatile of market industry to commodity gas navigate North prices, Dakota. As the infrastructure challenging constrained in a landscape continue and

on We and are of delivery results. measures our cash to better generating strategy improve taking and strong consistent This structure consistent cost stated with our a free to our goal more flow. is deliver margins

our to I’ll results. to off demonstrates Now, the then like and the by historical initiatives our oil presentation. year-over-year cover that been we in I with yesterday. referring have quarter strategic you our X consistent Slide announced slide number address corporate briefly start The rates production

a guidance Our a of performing oil of is ground function are constraints. wells as and anticipated above our reduction

updated We presentation. are on as depicted Slide XX getting well corporate of our Butte strong results, Foreman

and the net adds this to inventory. core. believe acreage expand delivering technology an top price. for Whiting’s locations understand apply illustrates risk success We Conservatively, to latest team’s are to Bakken results further our XXX from ability the the over high-quality purchase We tier the rock attractive

regulatory was to this was capture production mandate very tight oil a a North XX% month May impacted basin. Dakota gas standard. delayed a in for Whiting responsible to is Industry gas meet reported continuing committed across by and versus processing by remaining the of quarter XX%. this situation Second operator

producing To and capture of the processing through we oil constrained activity. our building rates, also systems, plant. gathering ray on operating are installation minimize at Constraints mobile flaring, gas pace of some while combustion out increasing completing focus we units, gas the wells planned impacted

summary, down infrastructure In for more cushion anticipated program These risk not associated factors have enough revised a than higher constraints lowered we operating time. delays. were To production. we and with severe oil this a for unplanned have trend, adopted factor adjust did

for a results. is rate we but Infrastructure will stable remainder are account forecast it result for modified XXXX, more persist the our of plan and more production and to constraints designed in to believe this, consistent

restructuring the initiatives we that to turning announced Now, yesterday.

to see opportunity improve focused oil of evolve, landscape cost and in our continues and become unconventional to industry the we the streamline As our leading operations developer value assets. to structure order gas a

safety, We committed are efficiency, returns. to capital execution, maximizing and disciplined cost

positions. workforce one a The XXX reduce restructuring our is impacts XX% this total, corporate were executive employees. talented friends. conducted and plan, as reorganization XX Of of decision by our always part reduced and As it or colleagues difficult in a we to headcount

with our will and operating long-term unit align However, the value. this better action drive environment business

reorganization enhance execution. organization delivery peer forward. to $XX of are And in to implementing restructuring. capital moment cash annual efficiency. company’s cost field to returns the million generate going improve The projected processes highlight the cost of expedite operations I is the corporate savings and operational flow. and technologies we new should redesigned improve initiatives to to want Streamline take a efficiency and our leading free enhance key of We to the and

million our highly are areas financial we XXXX in we $XXX in non-operated to debt. To maintained have This exploration. we paying million. sell spending and like participate By we is non-ops of reduced economic. properties of We properties other capital $XXX spending, discipline million our or prices. the down more The accommodate participating, to guidance on associated focused side, capital sale On create $XX evident a to elected in at the of non-operated properties. are attractive either value retain budget option

margins Between on XXXX, and a G&A Redtail by from April approximately per and an adds another barrel restructuring improves rolling off $X.XX of annualized in share save million of our savings basis. and million flow. deficiencies in in deficiencies Redtail $XX This we $XX our cash $X.XX

strong her and ahead. Before to to introducing and months in him long we and Mike team corporate service in a a as capital Correne will Loeffler Whiting open best to experience experience. CFO. We to has I Correne and Stevens markets be skills the finance strong welcome we extensive in look for to wish the background addition want forward Q&A, at you future. the his thank our Her

conference the up Q&A. for Operator, call please open

Operator

Neal question [Operator from with today’s Dingmann certainly. Instructions] comes And Yes, first SunTrust.

Neal Dingmann

to. again and Good morning definitely that Brad welcome specific said and you Brad my constraints is, question referred the Correne. on you all,

know, the anything pipes. about You Other doing will don’t you of there cushion like you these are bigger contracts, maybe should are put, where well? to bigger changes you things try in other will lock or you you need plan the a out your else Can you said sort make on opinion so maybe as items, the the year your coming view of talk now infrastructure you part you for in build of latter year some enough than own putting there. to remainder how buffer just of in a sort

Brad Holly

Neal. and big me our been our Rimer, Midstream of even and take VP then your COO a out Yes, Marketing thanks Kevin Chip stab That this. our help have Kelly, concern has I’ll that the But maybe and for is North today. meet you pressure worked on question, in putting gas that to are Have significant meeting hard us. increasing big very up seen We with Dakota. XX% we capture? on constraint there, industry that our to and

with budget Ray putting all and initiatives out some lines key in year, putting this helping Looping these had downtime had new we But us. mobile our is the try we’ve so third seen Plant started up significant and we’ve When we with units as help equipment, Gas is that is downtime and very combustion to significant, of you a startup have to can on that. new in what Sanish came parties through. our equipment, Chip walk

not instantaneous go things back on production those it’s the side. When an down, up

for down it day, and the aligned go time it takes get little us at bit can again. get and they times, So, back out on to of a a wells

are to gets downtime forward moving we’ve as for account And anticipated so, infrastructure increasing and the seen those that out. we Chip? lined our bubbles

Chip Rimer

to Thanks. XX takes as This them Brad. quarter, downtimes, Neal, [indiscernible], us. and a us. had working on, in impact Yes, prolific I little will down times go barrels swapped, had those we back to We’ve so to Yes very Lot on back be the lift to when that’s that’s is which when and X,XXX Chip while have we second get up it downtimes, available the we been to a think happens downtimes get that have those artificial brought wells in on, those big are we of to correct. seeing Rimer. back, we close

Kevin Kelly

Kevin, is Neal. This

will are by spread Highland, key across [indiscernible]. Pipeline. another of us that processors, Oneok’s rest additions several as be BCF key processing there Oneok, big a the far of think We help coming component Elk year, about the As Creek year-end, some on

we So, year-end, would about by better into XXXX, basin. infrastructure much the going feel across the

Neal Dingmann

there problems, have is follow-up, just of East different I the I that, sooner mean potentially expected? such would areas Sanish And with or just maybe board, the for you seen than even that are on sort areas the that improvement to, stay accelerate in maybe have you my couldn’t the across

Eric Hagen

it’s Neal, Eric Hagen. Hi

of You had constraints Flatland have side are in processing the and right which of basin, first where have plant the the lot part a constrained. to gas the less East, the in we We reduce is activity there, the correct, County, so central our the into move of last in the been does as of year, places we have it unit. the the end gas western actually year large And put McKenzie that’s to basin, a risk. general like

of of changes improve So, execution. year that our the is second that the will think heading we half the into one

Neal Dingmann

good. you. Thank Very

Eric Hagen

Thanks, Neal.

Operator

the next from Leo you. question And comes with Thank Mariani KeyBanc.

Leo Mariani

question Hi guys. I sort of a of levels just activity on in wanted Bakken. the bit little to ask

XQ you and trying brought where on wells XQ. kind think a of the planning I wells in you to impact you guys just just the wells sense and that some pretty going that levels, the really a previously second activity quarter, midstream guys on on the in think get tie-ins? bringing I’m quarter? about a trying on third I tied group of being we sense get well to see XX of large is of were mentioned impact of in to

Brad Holly

question program appreciate that. east, in to have interest, second not I ways and think where core like wells CapEx I guidance. pretty more we of the activity going our described to we bringing thanks quarter Yes, on Leo. you planned We But because and originally operational were additional and accurately. these had the nine on constraints of able the do it we mentioned, us Eric as Sanish, into feel working moving to are hence takeaway moving lower it's we a the capacity, the meet we're help and more that's

is and in net about third bit North. in wells South fourth complete, we're But the the quarter, than the in still the the to the And We're Sanish. will quarter. that we activity stuff a going east have to the half on third we bringing of to the in some little moving quarter

Leo Mariani

And kind with on think third helpful. CapEx, guys that's I to the also XQ. wanted CapEx are guiding flattish quarter roughly I you Okay, guess just of ask

the rig, there last keeping help kind kind the guess of a drop high what's, of still me Can I did kind just the out guys quarter? of with CapEx you run in rate of, months. third You in couple

Chip Rimer

XQ crews a we're This is Chip lot working has of interest. crews Leo. end two from said, moving the we're to Yes, Rimer. frac area, a which our Brad going frac in quarter. of three taking lower activity Sanish quarter this the towards into the as over Yes,

see those Slides how you are in wells through those see on You can area. prolific XX XX, can that

normal about upon that going we're a to going to ducks our We're some is above running excited be over have additional which – pretty So, going there. inventory. also

be will reduction in a think moving we a but the overall, So, we're be in I will working Sanish … line,

Leo Mariani

you to dramatically kind trying of little sense bit quarter, Okay, in expect the CapEx move around numbers those to a that how get fall pretty just four so of basically here?

Eric Hagen

Yes, recap it. just to

and we at from the went we're a end then a rig, the dropping quarter. of – recently So, dropped frac we crew

at we're released to the you has It's and some we're look the into beginning if was interest, the bit to working fourth second the – our going We’re interest original little But isn't of do, plan, that a look an all bit we you year also working timing activity lower dropped looking already it of at forecast half And at what we're into if the little that's accumulating different. significantly quarter. really area ducks. of really year, in the just POP's. at

give see So, all think we we significant things us a will confidence drop. that those

Leo Mariani

thank Okay, very you much.

Eric Hagen

Leo. Thanks,

Operator

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

Drew Venker

morning, Good everyone.

Brad Holly

Drew. morning, Good

Drew Venker

could would if wondering, exit-exit an be on just give you update that can for XXXX? like you on look think what CapEx just give maintenance I'm you us If great? would us an

Eric Hagen

and to not downtime the capital comment basin, now situation, with in Yes. just it's because XXXX we're the Hi, going constrained efficiency. really to hard so Drew, predict on

until the to we have on, these plants, see mentioned processing we'll some that. gas to So, come a I wait Kevin quarter, basis forecast think to that of third that how prefer better

Drew Venker

of plan complete? And the timing rate Okay. be when is expected us the remind to

Eric Hagen

just was was so… – actually plan rate completed, The

Drew Venker

Okay.

the benefits couple see of of in next you So, the quarters? coming that

Eric Hagen

see should We of the that. benefits

Drew Venker

thanks. Okay,

Eric Hagen

Thank you.

Operator

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

Brad Holly

David. Hi,

Operator

phone mute? Deckelbaum, Mr. is on your

David Deckelbaum

guys. Sorry guys. my for about questions Thanks that taking

Brad Holly

Hi, David.

David Deckelbaum

Good morning.

– you downtime Just talked before. situation just the wanted to about ask on

should the where guidance now constrained think unplanned a what we system. but So, risking you're into downtime, about environment tighter forward turning also for wells in

like sort a there? it contribution of is XX-XX So,

Brad Holly

from when X,XXX about look the volumes. that's of constrained, example of will a get have gave barrels the if in area you're an place large area you a system, Flatland to lose good number X,XXX, the in X,XXX so day where the that that lines that in gathering was plan in of Chip and a of large they like at can I that day was barrels and be similar pad a going you on about be or it until think risk we a in waiting you a compression out constrained you And put POPs debottleneck can and the terms delays for forward, period call, rates if a to is it Yes, that flow – of third that. was wells, it you risk the X,XXX installed wells, and the pointed

David Deckelbaum

plans you, Is the you're Okay. Has moving restructuring guess, lines? you I like at how all, planning about caused I think reporting going the forward. we in kind do plan this – know into that Ray and East kind online. changing year? I Sanish you then out know now is of, what geographically of, coming right to, up were are Cassandra much the with of now in the beginning ramp the How had set versus

Brad Holly

changing it's We're all said plan. our when original very close not very much done. They're maybe to and

Eric Hagen

and risked to original plan away that we of hadn't when solid areas. led just to predicted in it enough downtime some frankly. It's we wasn't terms trying from our move constrained a Yes, think was it plan that

Brad Holly

was into after Sanish plan area move Our these. original to

David Deckelbaum

lastly about there? year year. situation changes Midstream spend was field on of Ray after Has And sort had we next this and look infrastructure we expect spends any just you declining, think I thought of around, included required I at should particularly for all sort guess, made me, this

Brad Holly

a David, as whole help think looping year, XXXX, call, and quite earlier up that still see getting see had going coming don't like we a we're spend this lot, think line whole to lot don't short-term and see at our is message good, some we and gas is in I Brad, stuff mentioned but on so spending infrastructure of end the to bit, just running, we of Kevin bear still we lot us a but the that's and Ray side. anticipated increased of I on a there's NGLs, this don't both

David Deckelbaum

Thanks guys.

Operator

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

Joe Allman

morning, Good you. Thank everybody.

Brad Holly

Joe. Good morning,

Joe Allman

full the to infrastructure just a more constraints. get understanding So, trying of

processing, also overwhelmingly it some but actually maybe is combination in pipe? of is a of some So, larger gathering or it processing kind

Kevin Kelly

Yes, this is Kevin, Joe.

of is it's part it and takeaway. So, the NGL processing the

its with line first year, us fourth in help quarter flow waiting come year, downs. had of the fourth little on the this sort the and especially bit of at new second a and It as of end area, Tarpon in online we’re we then reiteration as waiting yesterday a online second-tier own work So, Demicks half. And part in year plan well the become it become bottleneck will line Oneok’s on the quarter bunch to bringing this of the up big processing through sight late, as But we that compression NGL as there. year, of year. the that came online more in see into the of will positive getting of this

Joe Allman

think year constraints resolution, – years visibility full do you see of it. couple you year, any do And do or kind you pretty late of, as the Got see next much early next like further some well? there this on is over

Kevin Kelly

next growth basin, looks basin gas. couple wet it room good at the for of has think I for and years. the the the like of what Well, look we with additions for The

Joe Allman

then Okay, West, could just is constraints? of And some it but just of the locations, kind terms East, that's alright, of in location-wise in kind issues you describe helpful. or also the the overwhelmingly

Kevin Kelly

was It – predominantly and the system particular South in core Tarpon for us of in the County our still area, in area. the McKenzie this

Joe Allman

great. that's Okay,

all much. very very helpful, thank Okay, that's you

Kevin Kelly

Thank Joe. you,

Operator

of Grigel Macquarie Paul from comes question next the And you. Thank Capital.

Paul Grigel

a increased and fourth then, XXXX Hi, quarter into activities loading was into is on to Should kind versus any And really wondering, you at more that be there XQ about not XQ, guys slowdown back good potential being point is we cadence thinking is if XXXX winter so? think resumption morning. I guidance. the the summer higher in there in with seasonality of the costs to thoughts of this normalized level time. formal

Eric Hagen

schedule the it's There's of ducks our always mentioned, we'll some always, in additional to bit. Eric, have POP little a we there's extended Paul. and we Chip are sort going Well, seasonality be and building – as Bakken also

we'll that and fewer us will the wells some quarters, in seasonality. into be that So, give hopefully later a popping momentum more

Paul Grigel

about plans Okay, on guys those towards either thoughts stand the as then current guess XXXX, And addressing of closer where I converts you your talk today on that's maturities just you and could start the them? we kind the maybe helpful. events or on

Brad Holly

Thanks feel maturities. Paul. on debt sure, upcoming our question. we like have that for Yes, options We multiple

Our one first is we're try pay debt to down cash trying be to the do that. with to flow, build free to to able organization

a go to the us to quarter transactions continue those sell seen second, this do designed are as of you've that that's for. The us we assets helps and couple what non-core

drawn with we The finally, pay absolute at could have end, well the as revolver option. only reduce We down. refinance an lower million so $X.XX to we And debt-to-EBITDAX, third are billion net but get $XX thing we a want the our that, it as quarter to that's looking debt.

Paul Grigel

you. Thank Alright.

Operator

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

Jeoffrey Lambujon

for Good taking my morning, thanks questions.

some one First get set of Just the on think budgeting think how as you opportunity there. just you about that forward? the Can trying sense guidelines just that business? a on give going is us non-op, the about you to of out part forecast for

Tim Sulser

we're to in transactions did Tim this an quarter, have said, an Yes, properties. to activity Jeoffrey, that both pleased results. very sure. the we and did assets this of had We've monetize two the Okay. opportunity with of were uptick some operator we is Sulser. those in well That obviously non-op separate those

in about a And the came the than expected. well [AP we little so, really excited higher we performance, capital] were

our accordingly. amongst and we'll did. see at but to, results manage good So, look – assets as really our that kind in we forward, go we were pleased to we operated of, again we assets transact and those continue opportunities where are And non-operated

Jeoffrey Lambujon

provide terms baked of just And on there? all kind into early coming relief. in projects then next well? as solutions, the you mentioned of QX, of to what's XXXX midstream that in going now a for terms year, in expected online timing know that. the in relief up kind What's or point assumed of couple any of there the appreciate you side in to I you is following are I

Kevin Kelly

Yes, constraints, So, those year-end. bringing really, schedule the looking optimistic We in to be this realistic a the we brought is people earlier want of quarter, get saw on the fourth some what in downtime up being we're year. we're We at the conservative. as things given but as is know also that Kevin. things

its really what at. looking year-end, we're is So, by

Jeoffrey Lambujon

in to us, Anything as of, early of XXXX QX timeframe the year-end, kind it? well for bulk watch as timing the the

Kevin Kelly

is the which and Year-end of QX. another it, bulk the plant, will is plant Demicks be II

Jeoffrey Lambujon

Thank you very much.

Operator

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

Asit Sen

Thanks, talk context just good Can you talked infrastructure the the in teams, morning. Hi, three process about thought you from be of a could your constrained departure about bit if in wondering about and evolving Brad. restructuring? of landscape, little so a fairly asset industry such you plan the the the but announced operating a original transitory, talk little could bit big restructuring,

Brad Holly

looking the different teams in efficiency four asset be our system, to very things; day; with model out to the broke to reorganized then looking leadership. company us we cost to the really it internal, the a on be asset-based and focused the cut asset super-focused Appreciate now develop production; and on allowed capital to capabilities really understand leadership. allowed we've forward, to say safe individual everyone trying on try an look every on us it of corporate cost really, areas, going some good And would business three got model. focused we're question and really It leadership Asit. isolated in from safe in area philosophical And landscape the as be a things. Yes, we're out I and We ramifications as there. competitive in get our micro-focused to we

really that areas. together to it's going asset improvements and us – highest using for opportunities So, that opportunities team had organization, and maximize we we're us first. major you're sure field. haven't have everybody to and going some better the technology transfer to our on we is one can the everybody allow about to make provided and technology reductions that both we technology the business our coming and across is any in into creating value bringing We've under now allow see significant feel best innovation our our headcount D&C like really more had and We

that around and areas, drilling so four to completion and those everyone generated amount think we're kind same will be we of of but pillars try value. that there, using rallying Our to focus really drive is

Asit Sen

Appreciate then non-operated Brad. a color. And thanks, nice the divestiture. Okay,

have go, to is you if more you that there wondering, elaborate? a Just can target

Tim Sulser

Yes.

in with our So, I then of will look as this our is are that favor further continue we transactions Tim on at and did two being we earlier, Sulser. operated focus pleased attention those and absolutely divesting mentioned And capital assets. had we able to to those

Eric Hagen

there, and it's Sen, Yes, Asit barrels Hagen. We sold Eric XX,XXX just day; we've a in day. chip a barrels about got about XXX

very potential have we a So, value. lot in non-op has It solid position it. of

Asit Sen

guys. you, Thank

Eric Hagen

Thank you.

Operator

next the with And you. Advisors. Carver Thank Heikkinen from Energy comes Marshall question

Marshall Carver

personnel the something other G&A LOE kick-in, of does When the cost fully be XX% items the will on headcount that? versus how reduction. like hitting and know, Yes, like, that that or you items line line much savings,

Brad Holly

XX% immediately the X, that G&A is We actually think of half on exploration roll and $XX exploration through LOE to I it going goes would one-time that moving year. of and of to this million], executed LOE an basis new half That so Yes, like the about was is of that this our of of forward. the cost feel million On of about of be G&A back August I savings net to [$XX size. an it thanks, of about we the going that's and $XX half XX% annualized for payment of million, kind yesterday and appreciate estimate of question. year, Marshall. about at are severance

Marshall Carver

year, all this being to to beginning is back Knowing to don't year. this is year, coming year. give you. in half but XXXX on in and part of color a lot thank the want going And half Okay, think with then infrastructure of then the the the And next follow-up, lot you're next flattish on at of the a end the you growth that first a Bakken year. of say yet, of the of have it de-growth first in safe of we of typically

waiting back So, the for will the growth XXXX? half different of that for in year be

Eric Hagen

Marshall, it's Eric Hagen again.

to processing to how just – the coming commentary at and line fourth schedule not that, we you is reiterate our the of quarter, POP momentum place. We'll year-end going Just give in of third all we're until XXXX know, have sight look out the know, into our at, develops and year. you

kind addition logically for to do we're up I more question, want ducks. more In we're we setting how for setting mean, yes, with overall maybe deploy than having a our momentum up that do. I agree tough we heading – into the you, the that, to usually But of prior season

Marshall Carver

Thank you.

Operator

the Credit Suisse. And with Victor comes question from you. Prado Thank next

Betty Jiang

Suisse. Credit from Jiang Betty is This Sorry.

plan POP XXX to So, power on Mr. lines the cadence in of XX in about that which following on the completed half. first up ask Eric turning again is the XXXX,

but to wanted count much count largely staying or lower POP POP I half than the generally weighted the So, the is is back-end coming down prior second just the program? clarify more same,

Chip Rimer

back Rimer, is going to forward. we're We're the stay on just to same, it's going Yes, this weighted Chip count the POP going – half Betty.

Betty Jiang

forward. you that then, production a stable And program the won that it. going consistent of and in Got the more Brad mentioned call you start

but we I So, second crew think about terms not commenting the is a know forward? count the good as XXXX, baseline XXXX as on going – you're come baseline half as and level in rig activity of we

Brad Holly

Yes, question. the Betty appreciate

oil few the more seen wells we wells there quarters, are and been to on the those that that of in the well. program been these performing know are we've our the hasn't And accurate curves wells and that you've of seen that just to potential forecasting backed-off you're make that. easy infrastructure, taking that think we I has as and last with to downtime so, adding struggled and that there, wells, the the we're type do added we're we've and production and

forward. And actively all internally equipment move try working up that open to facilities out. with working our our we then we're sure wells gathering more to stability and that make on going third-party flow-through as our to the we're can with And own obviously well companies, also line as processors we constraints can that, and

So, we've moving that improve currently operating and out we'll come achievable we do that It's the can to that, forward. the something why moving and looking we're in upon forward. with that, guidance new in, we that that's think be environment that's

Betty Jiang

Great, – thanks there on absolute an follow-up. number year-end be can that numbers. Is guess drawn actual can the terms working And get of then quick I that. one update just for on of we ducks the in down – backlog the what's at year-end?

Chip Rimer

is the will it Betty of year. Yes, end Chip be Rimer. closer to the at XX This

Betty Jiang

thank you. Great, Okay.

Brad Holly

like and it's few XX more ducks inventory of or just year. probably normal the end at of – ducks So, carried XX a a working we've the

probably out with normally than more XX have. what go So, we

Betty Jiang

thanks. Great,

Operator

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

Mike Scialla

you in comments the put you that appreciate made Brad strategic everybody. morning, changes on place. Good the

was a acquisitions do convert part Foreman the maybe to Just you like did Butte acquisition. non-core some looks areas [into the plan prior core] of and with wondering,

Just now are you position wondering, you in or to your still long-term? that do have plans changed there

Brad Holly

opportunity and down focused value-based reduce what cash could I improve that on better on prior think We At is we're building are this we Yes, was to that and the our we upon that the paying Butte great, is important. free debt. significant want felt And we And time. absolute work, certainly are really that improvement a Foreman organization XXX% on, wells we Mike, a working we price, saw commodity thing generate it. there this like at appreciate debt flow that can comment.

our focus so point. this And is that at primary

we think today, X well some and the we'll but we X. continued have Tier own to got, basin, try drive we've as you the to acreage Tier in continue turn think to of our continue it on pretty can we rock, our about We've learn we We'll about to we'll understand acreage. know, learn own value that

existing open, we down our So, will clearly on but right is have right always we're our acreage debt. working but And, our eyes pay to priority now. yellow now

Mike Scialla

in and remarks added least on that all Butte inventory? more Okay, give to you with in detail those any at you contributed locations your Foreman you what new can XXX completion that increase or prepared in mentioned design, your were

Brad Holly

that was just Foreman Mike, a Butte comment. Yes,

the those on on based XXX that just that see that's So, acreage net we last acreage. year, purchased XX,XXX locations we

Eric Hagen

and you'll on there run spacing on Mike very you if reasonable assumption. a that, Again, those net a are risk – also see the math are it's

Mike Scialla

Great. Thank you.

Brad Holly

Thanks, Mike.

Operator

is And Thank with follow-up the next a you. Allman Joe question Baird. from

Joe Allman

thanks Great, again.

operating on costs. Just

first rose operating infrastructure or the the something cost overwhelmingly was there else the constraints there? or exclusively that second So, quarter, was in quarter in versus

Chip Rimer

This Joe. impacts flooding North had occurred that Yellowstone the County, Rimer. Chip to over flooded. in Yes, Yes, we us some is

costs thing challenge in the operations And driven thank would and on activity but our over they got workover so combustion drove numerous was by wells lot was workover for impacted there and that other I our folks gas capture jumped that that first the and out, mobile that are of rose the addressed units part, a knocked that.

Joe Allman

in due the And convert are April next back question, helpful. Okay, the then to converts year. that's

out? or really year, this those current, might the get next knock So, now those knock they year actually to do are plan into you is out

Brad Holly

Yes, Joe. This is Brad again.

are working. We

are on now. focused We that right

We revolver undrawn that pay on that sell cash that flow help forward, as to to down to $X.XX of the that. We do down, we of continue to quarter, cash non-core to then half that we'll that of as non-core with using and try have billion free sold year, can well two generate going the in free back assets flow down, this the forward help well. working debt. the some and pay as design use to to are moving more pay Again, that's that we'll so generate assets we

Joe Allman

Got it.

Okay, helpful. very again. Thanks

Operator

Thank for there to are you. to And more floor the questions, Eric like return as any I comments? no closing would Hagen

Eric Hagen

York on will closing you Brad the call for Conference, Holly I X, Whiting thank to remarks. much New over presenting be very Keith. turn September at the Barclays will Alright, City. now in

Brad Holly

cash free on returns remain Eric. you, cycle strategy our margins, full flow. Thank focusing We to generating dedicated and of

in on strengthening sheet. a our balance remain management we decisions further team, As our investment and disciplined focused

recently in productivity. Our structure delivering and is capital shareholder to cost evident made commitment decisions to the improve tough our value maximize we

Operator

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

now may disconnect your You lines.

Chord Energy (WLLBW) 1 Aug 192019 Q2 Earnings call transcript